U.S. Department of Housing and Urban Development Wanamaker Building, Suite 1005 100 Penn Square East Philadelphia, PA 19107-3380 District Inspector General for Audit Audit Related Memorandum No. 96-PH-214-1802 October 24, 1995 MEMORANDUM FOR: Edward J. Palombizio, Director, Multifamily Division, Pittsburgh Area Office, 3EHM FROM: Edward F. Momorella, District Inspector General for Audit, Mid-Atlantic, 3AGA SUBJECT: NDC Asset Management, Inc. Survey of Management Agent Operations Pittsburgh, Pennsylvania We have completed the subject survey. The purpose of the survey was to review selected NDC operations and determine whether further audit work was necessary. Specific areas reviewed during the survey were: - tenant eligibility for the Section 8 program; - financial management activities; and - general physical condition and maintenance of the managed projects. We interviewed Multifamily Asset Management Branch staff and reviewed HUD management, inspection, and financial files. We also reviewed the latest IPA audit reports. We visited NDC's office and interviewed staff. We visited three project sites, performed physical inspections of Section 8 units, reviewed tenant files, waiting lists, and maintenance systems. We interviewed project staff and tenants. 2 Our survey disclosed the following: - There were 21 overhoused and four underhoused tenants at Shenango Park Apartments. The overhoused tenants reside in two bedroom units but require transfers to one bedroom units. The underhoused tenants reside in two bedroom units but require three bedroom units. The Resident Manager stated that some of the overhoused tenants had lived in the same units for the past 15 to 20 years and refused to move. The Resident Manager stated transfers for the overhoused tenants will be done as soon as one bedroom units become available. The Resident Manager plans to transfer the underhoused tenants between September and October 1995. - The laundry and boiler rooms of one of the buildings at Belvedere Acres was still suffering the effects of building subsidence. Your office has been aware of the situation since it originally occurred in 1986. According to your staff, the subsidence has been adequately monitored by HUD and does not pose a threat to the safety of the building's occupants. Since HUD was aware of the subsidence and has been monitoring the situation, it was not pursued as an issue. - One of seven Section 8 units at Shenango Park Apartments failed HQS. The unit failed due to violations including peeling and chipping paint, a deteriorating window sill, and an unattached baseboard. Several other items noted during inspection of the same unit also failed but were repaired the same day and thus were not listed as failed items. The Maintenance Supervisor stated the remaining HQS deficiencies would be repaired immediately. - No reportable deficiencies were noted regarding tenant eligibility and management activities. The review results were discussed with NDC personnel. Although no controlled findings resulted from our review, we recommend your staff address the deficiencies cited with NDC and confirm corrective actions are implemented. Based on the survey work performed, we have concluded no additional audit work is necessary. If you have any questions, please contact Irving I. Guss, Assistant District Inspector General for Audit, at (215) 656-3401. Distribution cc: OSWALD CIANCI 3AGA:GUSS:AMP:10/23/95 Correspondence Code 3AGA Concurrence GUSS Date REPORT NAME: NDC Asset Management, Inc. Survey of Management Agent Operations Pittsburgh, Pennsylvania REPORT NO: 96-PH-214-1802 ISSUE DATE: October 24, 1995 REGIONAL OFFICE (NON-OIG) Edward J. Palombizio, Director, Multifamily Division, 1 Pittsburgh Area Office, 3EHM Regional Comptroller, 3AF 1 HEADQUARTERS (OIG) Director, Planning and Administration, GAP (Room 8180) 1 Director, Quality Assurance and Audit Follow-Up Staff, GAD 1 (Room 8174) Central Files, GFA (Room 8266) 2 Semi-Annual Report Coordinator, GFA (Room 8254) 1 DISTRIBUTION OUTSIDE HUD Assistant Director in Charge, US GAO, 820 1st St. NE Union 1 Plaza, Bldg. 2, Suite 150, Washington, DC 20002 Attn: Mr. Cliff Fowler 8 From: Edward F. Momorella, DIGA, Mid-Atlantic Wanamaker Building, Suite 1005 100 Penn Square East Philadelphia, PA 19107-3380 3 _________________________________________________________________ DISTRIBUTION Director, Multifamily Division, Pittsburgh Area Office, 3EHM Regional Comptroller, 3AF Assistant Director in charge, US GAO, 820 1st St. NE Union Plaza, Bldg 2, Suite 150, Washington, DC 20002, Attn: Mr. Cliff Fowler
NDC Asset Management, Inc., Pittsburgh, PA
Published by the Department of Housing and Urban Development, Office of Inspector General on 1995-10-24.
Below is a raw (and likely hideous) rendition of the original report. (PDF)