Provide support showing the source and use of funds paid to the Terrace Lane, LP, and Southside Village, LP, after the RAD conversion or repay the project-based voucher program from non-Federal funds.
Publication Report
2017-AT-1011 | August 21, 2017
The Lexington Housing Authority, Lexington, NC, Did Not Administer Its RAD Conversion in Accordance With HUD Requirements
We audited the Lexington Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion. We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of… moreRelated Recommendations
Public and Indian Housing
Provide adequate supporting documentation for the amount of Public Housing Capital Fund loan to verify the loan source. If another source of Federal funds is determined, repay the amount to the appropriate program from non-Federal funds.
Provide support showing the amount of predevelopment fees paid. If it is over the allowable amount, that portion should be repaid to the project-based voucher program from non-Federal funds.
Develop and implement procedures to ensure that it maintains books and records that provide the source and uses of all Federal funds.
Ensure that the Authority completes all outstanding annual audits.
- Status2017-AT-1011-001-FOpenClosedClosed on December 15, 2022$5,912.00Questioned 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.
Enter into a repayment agreement with Community Management Corporation for the improper housing assistance payments of $5,912 to be repaid to the project-based voucher program or repay the project-based voucher program from non-Federal funds.
Establish, maintain, and follow a waiting list for each project individually.
- Status2017-AT-1011-001-HOpenClosedClosed on January 17, 2023$2,075,314.00Questioned 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.
Provide adequate supporting documentation for the $2,075,314 paid for housing assistance payments for tenant rents for 2015 and 2016 and the associated administrative fees earned or repay the project-based voucher program from non-Federal funds.
Properly certify all tenants and reimburse any overages paid and associated administrative fees for tenants housed after January 1, 2017, to the project-based voucher program from non-Federal funds.
- Status2017-AT-1011-001-JOpenClosedClosed on January 17, 2023$669,938.00Questioned 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.
Provide adequate supporting documentation for $669,938 in monthly RAD rehabilitation assistance it received for vacant units during the period of construction or repay the project-based voucher program from non-Federal funds.
Develop and implement procedures for following project-based voucher requirements for tenant recertifications as project-based voucher tenants at Terrace Lane and Southside Village, and ensure they comply with the Housing Choice Voucher regulations.
Determine whether the households residing in the Authority’s project-based voucher units, that bypassed others on the wait lists, 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.