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a. Monitoring of Governmental Entities and HUD-Approved Nonprofits (03/14/2016)
FHA monitors Governmental Entities and HUD-approved Nonprofits that participate in FHA’s nonprofit programs as part of its ongoing QC activities to ensure compliance with FHA requirements. FHA conducts remote and on-site reviews for monitoring purposes.
i. Notice
FHA will notify Governmental Entities and HUD-approved Nonprofits of its intent to conduct a review of their Affordable Housing Program (AHP) 30 Days prior to any review.
ii. Scope
FHA will, at its sole discretion, determine the scope of any monitoring review. These reviews may include, without limitation, a review of projects under development, the agency’s internal control procedures, and adherence to the goals of the approved program.
iii. Production of Files and Records
Nonprofits must have the files requested by FHA available for review. FHA may request documentation regarding the nonprofit’s progress in implementing its AHP(s).
FHA will make review requests in writing, providing the nonprofit with 30 Days to respond and accommodate such requests.
iv. Findings
Following the monitoring review, FHA will discuss Findings with the Governmental Entity or HUD-approved Nonprofit. FHA will provide notification of identified Findings, if any, and specify the remedies and response that is required.
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V. QUALITY CONTROL, OVERSIGHT, AND COMPLIANCE D. Monitoring of Other Participants
3. Nonprofits and Governmental Entities