How does FHA monitor Governmental Entities and HUD-approved Nonprofits?

FHA monitors Governmental Entities and HUD-approved Nonprofits that participate in FHA’s nonprofit programs as part of its ongoing Quality Control (QC) activities to ensure compliance with FHA requirements. The Homeownership Center (HOC) conducts remote and on-site reviews for monitoring purposes.
 
FHA will notify Governmental Entities and HUD-approved Nonprofits of its intent to conduct a review of their Affordable Housing Program Plan (AHPP) 30 Days prior to any review.
 
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.
 
Nonprofits must have the files requested by FHA available for review. The HOC may request documentation regarding the nonprofit’s progress in implementing its AHPP(s).
 
The HOC will make review requests in writing, providing the nonprofit with 30 Days to respond and accommodate such requests.
 
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.
 
For additional information see Handbook 4000.1 V.D.3. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 
The  FHA-Approved Nonprofits web page is available at https://www.hud.gov/program_offices/housing/sfh/np

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04554