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Report Fraud, Waste and Abuse
  • Recommendation Number: 2017-FW-1009-001-E
  • Status: Closed
  • Date Issued: June 29, 2017
Closed Date:
February 25, 2020

We further recommend that the Southwest Region Director of Multifamily Housing ensure that the project-based contract administrator’s review process includes steps to obtain reasonable assurance that tenants being reported as subsidized at Beverly Place live in the subsidized units.

Publication Report

2017-FW-1009 | June 29, 2017

Beverly Place Apartments Subsidized Nonexistent Tenants, Unqualified Tenants, and Tenants With Questionable Qualifications

We audited the multifamily project-based Section 8 program at the Beverly Place Apartments.  We selected Beverly Place because we received a complaint of potential fraud, suggesting that the complex did not have appropriate controls to ensure… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-FW-1009-001-A
    Closed on May 01, 2018
    $574,930.00
    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.

    We recommend that the Southwest Region Director of Multifamily Housing require Beverly Place’s owner to repay HUD $574,930 for subsidized units that were not occupied by qualified tenants. Repayment must be from non-Federal funds.

  •  
    Status
      Open
      Closed
    2017-FW-1009-001-B
    Closed on September 21, 2020
    $150,082.00
    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.

    We recommend that the Southwest Region Director of Multifamily Housing require Beverly Place’s owner to provide support to show that the subsidies for 11 tenants with falsified income were accurate or repay HUD $150,082 for those subsidies. Repayment must be from non-Federal funds.

  •  
    Status
      Open
      Closed
    2017-FW-1009-001-C
    Closed on April 07, 2020
    $77,621.00
    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.

    We recommend that the Southwest Region Director of Multifamily Housing require Beverly Place’s owner to provide support to show that the subsidies for 18 tenants without files or without adequate income documentation in their files were accurate or repay HUD $77,621 for those subsidies. Repayment must be from non-Federal funds.

  •  
    Status
      Open
      Closed
    2017-FW-1009-001-D
    Closed on February 25, 2020

    We further recommend that the Southwest Region Director of Multifamily Housing require its contract administrator for Beverly Place to verify that the owner’s recently implemented quality control program is working as designed.