HUD conducted an onsite confirmatory review of HACCC’s SEMAP submission for fiscal year ending 2013. HUD’s examination showed that HACCC’s rating had improved to 78% and thus HACCC is now considered a standard performer under SEMAP. In a letter that confirms HACCC's standard rating, HUD also identified two findings and one concern that must be addressed by HACCC in a CAP format to HUD. Specifically, HUD did not award HACCC any points on the SEMAP Indicators for Selection from the Waiting List and Determination of Adjusted Income. While HACCC received full points for the Lease-up Indicator, HUD noted a significant gap between the agency’s budget utilization (the percent of allocated subsidy dollars spent on voucher subsidies), which is quite high at 98%, and unit utilization (the percent of allocated units under contract), which is relatively low at 94% in November 2013.  
  
Attached is the confirmatory review follow-up letter provided by HUD and staff’s proposed CAP. Staff will review these with the Board at the meeting.

None. Information item only.

Should the Board of Commissioners elect not to approve the proposed Corrective Action Plan, or a modified version, HACCC would be in jeopardy of HUD sanctions.