We audited Huntington Apartments’ management of its multifamily property as part of our annual work plan. The owner of Huntington Apartments manages 204 units in accordance with HUD requirements and its regulatory agreement which includes restrictions on the use of property funds and assets. We selected Huntington Apartments for an audit based on risk indicators, such as surplus cash deficiencies, missed or late mortgage payments, failure to maintain the property, and HUD’s risk rating. Our audit objective was to determine whether the owner managed Huntington Apartments in accordance with HUD requirements and its regulatory agreement
The owner and prior management agents of Huntington Apartments did not manage the property in compliance with HUD requirements or its regulatory agreement during the audit period of January 1, 2023, through December 31, 2024. Specifically, the owner and management agents did not ensure that, (1) vacant units were filled with available applicants; (2) tenant annual recertifications were completed; (3) work orders were tracked and completed; (4) mortgage payments were made on or before its due date; (5) the tenant security deposit account was fully funded; and (6) housing assistance payments were stopped for prior tenants. These conditions occurred due to the poor performance of two prior management agents and a lack of internal controls over financial and tenant management. As a result, these deficiencies increased the risk of potential enforcement actions and, if left unresolved, could undermine the long-term financial viability of the property. With a change to a new management agent in July 2025, four of the six issues identified during the audit were resolved or mitigated as detailed in this report, including unit vacancies, the tracking and completion of work orders, fully funding the security deposit account, and stopping housing assistance payments upon a tenant moving out.
We recommend that the Northeast Region Director of Multifamily Housing require the Huntington Apartments’ owner to, (1) provide documentation to show that all past due tenant recertifications were completed; (2) develop controls to ensure that all required annual tenant recertifications are completed as required; (3) repay the property $43,557 from non-property funds for the unnecessary mortgage late fees; and (4) develop controls to ensure that the monthly mortgage payments are made on or before its due date.
