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Closed Date:
Marzo 26, 2020

Review and update the project’s waiting lists to include the missing dates and required notations.

Publication Report

2019-CH-1003 | Septiembre 03, 2019

The Management Agent for Lake View Towers Apartments, Chicago, IL, Did Not Always Comply With HUD’s Section 8 HAP Program Requirements

We audited the Lake View Towers Apartments’ Section 8 housing assistance payments program based on our analysis of risk factors related to multifamily projects in Region 5’s jurisdiction and the activities included in our fiscal year 2019 annual audit... más

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-A
    $30,037.00
    Questioned Costs

    Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

    Summary

    Reimburse HUD $30,037 from nonproject funds for the overpayment of housing assistance and utility allowances due to incorrect calculations.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-B
    Closed on Febrero 21, 2020
    $144.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Summary

    Reimburse the appropriate households $144 from nonproject funds for the underpayment of housing assistance due to incorrect calculations.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-C
    $159,938.00
    Questioned Costs

    Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

    Summary

    Support or reimburse HUD $159,938 from nonproject funds for the unsupported payments of housing assistance cited in the finding.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-D
    $26,915.00
    Questioned Costs

    Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

    Summary

    Pursue collection from the applicable household or reimburse HUD $26,915 from nonproject funds for the overpayment of housing assistance due to unreported income.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-E
    $54,257.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Summary

    Implement adequate quality control procedures to ensure that housing assistance payments are appropriately calculated and supported. These procedures and controls should ensure that $54,257 in program funds is appropriately used for future payments.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-F
    Summary

    Ensure that third-party verifications, such as tax returns provided by the applicant, are from the source by obtaining certified tax returns from the Internal Revenue Service.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-G
    Closed on Marzo 26, 2020
    Summary

    Revise its occupancy standards to include policies and procedures to prevent underutilization of the project’s units.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-H
    Summary

    Ensure that the management agent’s staff is properly trained and familiar with HUD’s and the project’s requirements regarding housing assistance payments calculations.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-I
    $239,500.00
    Questioned Costs

    Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

    Summary

    Conduct criminal record background checks in accordance with the project’s policies and procedures to ensure that adult members of all households, including the 11 households for which HUD made housing assistance payments totaling $239,500, were eligible to participate in the program. If the participants are deemed ineligible, the owner should follow applicable regulations to terminate or modify assistance and reimburse HUD from nonproject funds for those housing assistance payments deemed ineligible.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-K
    Closed on Abril 24, 2024
    Summary

    Develop and implement adequate procedures and controls to ensure that the project complies with HUD’s requirements and its own policies regarding the management of its waiting lists.

  •  
    Status
      Open
      Closed
    2019-CH-1003-001-L
    Closed on Abril 24, 2024
    Summary

    Determine whether the households residing in the project’s assisted units received housing in accordance with the program’s requirements and if not, consider a referral to HUD’s Office of Fair Housing and Equal Opportunity.