Audit 42486

Condition During our audit, we examined a non-statistical sample of six individuals receiving rent assistance, noting that for two individuals, the required rent reasonableness checklist and certification form was not completed. Criteria Per 24 CFR sections 578.51(g), where grants are used to pay rent for individual housing units, the recipient or subrecipient must determine whether the rent charged is reasonable in relation to rents being charged for comparable assisted units, taking into account the location, size, type, quality, amenities, facilities, and management and maintenance of each unit. Under U.S. Department of Housing and Urban Development (?HUD?) guidelines, a rent reasonableness checklist and certification form is required for all individuals receiving rent assistance. Effect Failure to complete required documentation may result in noncompliance with HUD guidelines. Cause and View of Responsible Officials Due to miscommunication, one of the Organization?s subrecipients was performing rent reasonable assessments based on outdated HUD guidelines. Because the Organization performed its monitoring procedures over the subrecipient?s rent reasonableness assessments after the grant period ended, one of its subrecipients was not made aware of the updated HUD rent reasonableness procedures in a timely manner. However, the Organization does perform an independent assessment of rents compared to fair market value and reviews the rent calculation worksheet during each drawdown. Recommendation We recommend program management ensure subrecipients are familiar with rent reasonableness requirements and perform timely monitoring of their subrecipients during the grant period.

Condition During our audit, we examined a non-statistical sample of six individuals receiving rent assistance, noting that for two individuals, the required rent reasonableness checklist and certification form was not completed. Criteria Per 24 CFR sections 578.51(g), where grants are used to pay rent for individual housing units, the recipient or subrecipient must determine whether the rent charged is reasonable in relation to rents being charged for comparable assisted units, taking into account the location, size, type, quality, amenities, facilities, and management and maintenance of each unit. Under U.S. Department of Housing and Urban Development (?HUD?) guidelines, a rent reasonableness checklist and certification form is required for all individuals receiving rent assistance. Effect Failure to complete required documentation may result in noncompliance with HUD guidelines. Cause and View of Responsible Officials Due to miscommunication, one of the Organization?s subrecipients was performing rent reasonable assessments based on outdated HUD guidelines. Because the Organization performed its monitoring procedures over the subrecipient?s rent reasonableness assessments after the grant period ended, one of its subrecipients was not made aware of the updated HUD rent reasonableness procedures in a timely manner. However, the Organization does perform an independent assessment of rents compared to fair market value and reviews the rent calculation worksheet during each drawdown. Recommendation We recommend program management ensure subrecipients are familiar with rent reasonableness requirements and perform timely monitoring of their subrecipients during the grant period.