Finding Text
Finding No. 2023-002 Section 8 Housing Choice Vouchers (CFDA 14.871)
Type: Federal Award Compliance – Special Test and Provisions; Significant Deficiency
CONDITION: The Authority’s Housing Choice Voucher program staff failed to perform, and document rent reasonableness determinations in conjunction with Fair Market Rent (FMR) limit determination. The Authority failed to perform rent reasonableness determinations. The Authority did perform FMR determinations.
CRITERIA: Public Housing Authorities are required to perform FMR and rent reasonableness determinations (24 CFR §982.507; PIH Notice 2011-46) during new admissions to the HCV program and at other qualifying events as defined by HUD regulations.
QUESTIONED
COSTS: The amount of questioned costs could not be determined.
CONTEXT: Forty participant files were chosen using a statically valid sample. Of the forty participant files examined, no files contained rent reasonableness determinations.
EFFECT: The Authority could be overpaying landlords and failing to best utilize the Authority’s HAP funding.
CAUSE: The overall cause was a lack of management oversight. Authority staff were unaware of HUD Form 52675.
RECOMMENDATION: The Housing Authority should improve staff training procedures and monitoring procedures over the Housing Choice Voucher program. The Authority should consider having an HCV consulting firm review current policies, update as needed, and train staff. The Authority should also consider implementing a external program and participant file review for compliance and efficiency completed by a consulting firm or other local housing authority.
MANAGEMENT’S
RESPONSE
TO FINDINGS: See Corrective Action Plan 2023-002