oversight

                                     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