Articles

Beverly Place Apartments Subsidized Nonexistent Tenants, Unqualified Tenants, and Tenants With Questionable Qualifications

We audited the multifamily project-based Section 8 program at the Beverly Place Apartments.  We selected Beverly Place because we received a complaint of potential fraud, suggesting that the complex did not have appropriate controls to ensure tenant and unit eligibility.  Our objective was to determine whether the owner administered its project-based Section 8 program in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and guidance.

The owner did not administer the project-based Section 8 program at Beverly Place in accordance with HUD regulations.  It assisted at least 97 tenants who were either ineligible for assistance or whose eligibility could not be supported.  This condition occurred because the owner did not establish effective control systems, which allowed the onsite employees to commit fraud.  The employees falsified tenant eligibility and did not properly verify tenant income as required by HUD.  As a result, HUD paid the owner more than $574,000 in subsidies for ineligible tenants and incurred more than $227,000 in subsidies for which the owner could not support the tenants’ subsidy amounts.

We recommend that the Southwest Region Director of Multifamily Housing require the Beverly Place owner to (1) repay HUD more than $574,000 for housing subsidies received for ineligible tenants and units and (2) support or repay HUD more than $227,000 for units for which managers either did not have a tenant file or did not obtain required earned income verification reports to verify eligibility.  In addition, HUD should require its contract administrator for Beverly Place to ensure that the owner’s recently implemented quality control program is working as designed.

Uniform Power of Attorney Act HB 221

Legislation was passed during the General Assembly session regarding Powers of Attorney, House Bill 221

The legislation is named the “Uniform Power of Attorney Act”.  It updates Power of Attorney code section, provides a form for filing a Power of Attorney, and repeals provisions relating to the financial power of attorney.   This legislation came about mainly because of unscrupulous crooks looting the bank accounts of the elderly using POA.

Regarding the form, the legislation states on lines 891-893 “A document substantially in the following form may be used to create a statutory form power of attorney that has the meaning and effect prescribed by this chapter.

There is one section that includes a big change of which everyone needs to be aware, it is the bold print one below, concerning an original is not needed except when conveying real property.  

POA filed in Real Estate with the Real Estate recording fee. 

This link to a newspaper editorial discussed the bill.  http://savannahnow.com/opinion/editorial/2017-02-27/editorial-change-power-attorney-law-and-crack-down-elderly-abuse.

HB 221 updates and conforms provisions relating to powers of attorney to align with the

Uniform Law Commission. This act provides a simple way for people to deal with their property by providing a power of attorney in case of future incapacity. While chiefly a set of default rules, the act also contains safeguards for the protection of an incapacitated principal.

111 (d) Except as otherwise provided by law other than this chapter, a photocopy or

112 electronically transmitted copy of an original power of attorney shall have the same effect

113 as the original; provided, however, that when recording a power of attorney in connection

114 with a conveyance involving real property, an original power of attorney shall be used.

10-6B-10.

160 (a) A power of attorney shall terminate when:

161 (1) The principal dies;

162 (2) The principal becomes incapacitated, if the power of attorney specifically provides

163 that it is not durable;

164 (3) The principal revokes the power of attorney, provided that the principal provides the

165 agent with notice of such revocation by certified mail and provided that such notice is

166 filed with the clerk of superior court in the county of domicile of the principal;

167 (4) The agent resigns, becomes incapacitated, or dies;

168 (5) The power of attorney provides that it terminates;

169 (6) The purpose of the power of attorney is accomplished; or

170 (7) One of the events specified in paragraph (3) or (4) of this subsection occurs and the

171 power of attorney does not provide for another agent to act under the power of attorney.

(b) An agent's authority shall terminate when:

173 (1) The agent resigns, becomes incapacitated, or dies;

174 (2) The principal revokes the agent's authority, provided that the principal provides the

175 agent with notice of such revocation by certified mail and provided that such notice is

176 filed with the clerk of superior court in the county of domicile of the principal;

You should select someone you trust to serve as your agent. Unless you specify otherwise,

905 generally the agent's authority will continue until you die or revoke the power of attorney

906 or the agent resigns or is unable to act for you. If you revoke the power of attorney, you

907 must communicate your revocation by notice to the agent in writing by certified mail and

908 file such notice with the clerk of superior court in your county of domicile.

1072 Termination of Agent's Authority

1073 You must stop acting on behalf of the principal if you learn of any event that terminates

1074 this power of attorney or your authority under this power of attorney. Events that terminate

1075 a power of attorney or your authority to act under a power of attorney include:

1076 (1) Death of the principal;

1077 (2) The principal's revocation of your authority or the power of attorney so as long as the

1078 revocation of the power of attorney is communicated to you in writing by certified mail

1079 and provided that such notice is filed with the clerk of superior court in the county of

1080 domicile of the principal;