Another Completed Affordable Housing File Audit

Undergoing a file audit on your Section 8 property is a major undertaking.  I think some folks are a bit nervous about somebody coming to “check their work.”  Nobody likes to have their work criticized.  But honestly the focus or the thoughts should be…”I’m finally having somebody check my files to make sure I didn’t miss anything.”  When I do a file audit I want people to know that I am not there to belittle them or their company and I am not there to throw anyone under the bus.  I am there to help them make sure that they have all of the documentation, verifications and everything signed and dated.

On the most recent file audit, the property manager was attempting to take on a distressed property and in doing so was being pulled in all directions.  When this happens there is always some aspect of the property that suffers.  In this case it was the compliance.  Tenant files were missing recertifications; important forms were not signed or dated; EIV reports were few and far between and the verifications were incomplete and or not sent out to be verified by the employer.  The tenant compliance issues were indicative of the compliance issues in the office.  Tenants had people living in the units that were not on the lease.  They also had tenants who were just not motivated to help themselves.  I believe that the compliance issues in the office would help the compliance issues with the tenants on the property.  The most important aspect of a HUD property is to have all of your paperwork in order and that is where the file audit comes in.  The tenant compliance issues will work themselves out once you have your house in order.

Now that the paper work is in order, READ THE LEASE and learn the city/town ordinances!  You also need to make sure that your Tenant Selection Plan and your House Rules spell everything out.  This is how you will remedy the tenant compliance issues.  Work with the local police department to establish a good rapport and understand what constitutes “trespassing” so you can clean up the property of those who are just “visiting”.  The property we were auditing demonstrated that knowing the laws helps in clearing out the property of persons who have no business on your property.

A file audit for your property, which  prevents your property from losing your contract,  should cost between $50-$75 per folder plus travel expenses.  Depending on your situation and in what shape your files are in, a file audit will pay off in spades.  This process will give you the peace of mind to know that your files are in order and assure you that you are following correct procedure or learning how to follow correct procedure.

Give us a call or send us an email.  We also offer classes on MOR Preparation and Tenant File Management.  Click on this link:  http://www.ahtcsonline.com