24 C.F.R. § 93.406
§ 93.406 Audits. (24 CFR Part 93)
Operative Text
(a) Audits of the grantee and subgrantees must be conducted in accordance with 2 CFR part 200, subpart F. The use of HTF grant funds by the grantee must be audited not less than annually to ensure compliance with this part. Any financial statement submitted by the grantee to HUD must be reviewed by an independent certified public accountant, in accordance with Statements on Standards for Accounting and Review Services, which is issued by the American Institute of Certified Public Accountants. (b) The written agreement providing HTF assistance to the recipient must specify that the recipient will submit to the grantee a cost certification performed by a certified public accountant for each project assisted with HTF funds. The agreement must specify that the recipient will submit to the grantee an annual audit performed on each project assisted with HTF funds, beginning the first year following the cost certification and with the final annual audit occurring the last year of the affordability period.
Under 24 CFR Part 93 § 93.406, Housing Trust Fund (HTF) grantees and their subgrantees are subject to audit requirements governed by federal uniform guidance. HTF grant expenditures must be audited at least once per year, and any financial statements submitted to HUD must be reviewed by an independent CPA following established accounting and review standards. Additionally, each project receiving HTF assistance must undergo a cost certification by a CPA at project completion, followed by annual audits for every year of the affordability period.
Plain English — not legal advice.
Property owners and managers receiving HTF assistance under 24 CFR Part 93 § 93.406 are generally expected to ensure their written agreements with grantees explicitly address audit and cost-certification obligations. Compliant operators typically arrange for a certified public accountant to perform a cost certification upon project completion and then maintain annual project-level audits throughout the entire affordability period. Keeping organized financial records and engaging qualified accounting professionals from the outset helps operators meet these recurring documentation requirements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While 24 CFR Part 93 § 93.406 primarily governs the financial oversight obligations of HTF grantees and project recipients rather than individual tenant rights, the audit requirements it establishes are designed to ensure that HTF-assisted housing remains affordable and compliant throughout the affordability period. Tenants living in HTF-assisted properties may find it useful to know that annual audits are required for their project, which can serve as a basis for inquiring about compliance with affordability commitments. Tenants who have concerns about whether a property is meeting its HTF obligations can reach out to their state or local housing agency, a local tenant-rights organization, or HUD directly for guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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