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Date Issued

Housing

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-E

    For the two units for which the Cooperative acquired the memberships associated with the units from members and which had been vacant for more than 6 months, rent the units to households that meet the tenant income profile.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-F

    Provide sufficient documentation to support that HUD had received 50 percent of the proceeds from initial membership sales as of May 2017. If the Cooperative cannot do this, it should pay HUD half of the principal on the promissory notes payable to the Cooperative for all of the membership sales less the amount the Cooperative can support that it paid HUD for initial membership sales.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-G

    Implement adequate procedures and controls to ensure that HUD receives its full share of the proceeds from future initial membership sales.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-H

    Provide sufficient documentation to support that the Cooperative used its share of the proceeds from initial membership sales in accordance with the grant agreement. If the Cooperative cannot do this, it should transfer funds from its operating account, in an amount equal to half of the principal on the mortgages to the Cooperative for all membership sales less the amount the Cooperative can support that it used for eligible purposes, to a reserve account to be used in accordance with the grant agreement.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-I

    Implement adequate procedures and controls to ensure that its share of the proceeds from initial membership sales is used in accordance with the grant agreement.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-J

    Implement adequate procedures and controls to ensure that the Cooperative receives HUD approval before using the $148,872 in proceeds from initial membership sales offset by undisbursed funds which was in the Cooperative’s reserve for replacements account for the project.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-K

    Sign the amendment to the use agreement which would require the Cooperative to ensure that monthly housing expenses did not exceed 35 percent of the members’ monthly adjusted gross income only at the time of sale. If the Cooperative does not sign the amendment, it should verify the current household income for all members to determine whether the members are paying more than 35 percent of their households’ monthly adjusted gross income for monthly housing expenses. For any members that are paying more than 35 percent of their households’ monthly adjusted gross income for monthly housing expenses, it should determine the amount the household overpaid and reimburse the household that amount. It should also implement adequate procedures and controls to ensure that members do not pay more than 35 percent of their households’ monthly adjusted gross income for monthly housing expenses.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-L

    Implement adequate procedures and controls to ensure that it sells memberships to the same proportion of very low-, low-, and moderate-income households as stated in the resident income profile in paragraph 4.a. and required by paragraph 10.b. of the use agreement.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-M

    Require the member for whom it tried to transfer the membership associated with a unit in which the remaining member passed away, to move into the unit or continue to pursue the release of the member’s membership rights to the Cooperative.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-N

    Require the members who did not maintain their unit at the project as their principal residence to move into the unit or continue to pursue the sale of their membership in the Cooperative.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-O

    Provide sufficient documentation to support that the single occupant of a unit was a member of the Cooperative. If the Cooperative cannot do this, it should determine who has the right to membership associated with the unit, transfer the membership to that person if appropriate, and require him or her to move into or sell the unit.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-P

    Implement adequate procedures and controls to ensure that members maintain their units at the project as their principal residence or sell their memberships.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-Q

    Rent the unit that was used to provide rent-free housing to former employees of the management agent to a very low-, low-, or moderate-income household selected from a waiting list for rental units that meets the requirements of the resident home-ownership plan and considers the tenant profile.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-R

    Implement adequate procedures and controls to ensure that the project’s units are used for rental or cooperative housing unless otherwise approved by HUD.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-S

    Implement adequate procedures and controls to ensure that it submits the required reports to HUD to show continued compliance with the program.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-T

    Ensure that the Cooperative’s board members and responsible staff of the Cooperative’s management agent are provided training on HUD’s requirements and the grant agreement.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-U

    Consider removing from the Cooperative’s board the member who did not maintain their unit as their principal residence.

  •  
    Status
      Open
      Closed
    2017-CH-1006-001-V
    $18,149,023
    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.

    Make a preliminary determination as to whether the Cooperative is in default of the grant agreement. If it is preliminarily determined that the Cooperative is in default, HUD should provide the Cooperative notice of the determination and propose corrective or remedial actions to address the default and prevent the Cooperative from repaying the remaining $18,149,023, which HUD disbursed for the project ($18,607,467 in funds disbursed for the project – $458,444 in proceeds from initial membership sales the Cooperative remitted to HUD).

Housing

  •  
    Status
      Open
      Closed
    2017-FW-1011-001-A

    We recommend that the Associate Deputy Assistant Secretary for Single Family Housing require BLM to certify and provide supporting documentation that the identified deficiencies have been corrected for the 57 properties cited in this audit report.

  •  
    Status
      Open
      Closed
    2017-FW-1011-001-B
    $8,034
    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.

    We recommend that the Associate Deputy Assistant Secretary for Single Family Housing require BLM to repay $8,034 in ineligible monthly management and inspection fees for 57 sample properties with health and safety hazards or significant not-ready-to-show conditions.