| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7250 | Closed | public | Multifamily | Les Sparks |
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It’s been a while since I’ve dealt with Section 8 so forgive me for a basic question. But I just wanted to confirm with you. I was approached by a client that has 2 Section 8 properties. One had total HAP income of 127k and the other had 692k. They had had regular tenants as well which paid out over a million in rent but that was not from Section 8. Am I correct that neither project needs an audit since they do not exceed the 750k threshold for an audit? And do they need to do a review or any other sort of reporting? |
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From Les Sparks: The limit for a for-profit audit is $500k – and then only if the HAP contract requires an audit. All transferred HAP contracts generally require audits. So, the second one has an HUD Audit for sure (unless it is an Rural Development loan). for a non-profit, ti would be $750K. So, just be sure. This is based on total awards so any HUD mortgage or other assistance would need to be included. If an audit is not required, the client will be required to submit owner-certified statements. These statements include footnotes and supplemental data. Les |