Finding Text
2023-007 Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Special Tests – Rent Reasonableness
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Mater
Criteria or specific requirement: Per 24 CFR 982.308, tenant file must include letter or written statement from the landlord when rent is increased or a copy of new lease agreement signed by tenant and landlord with increased rent amount.
Condition: During our testing, we noted one file where the most current lease was dated in 2014 with a rental amount that did not match the Form 50058 while the address did match.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, one tenant file did not have an updated lease or letter from the landlord with the increased rent amount listed.
Cause: The Housing Specialist did not obtain/retain proper written documentation for tenant rent increase.
Effect: File did not contain required information per 24 CFR 982.308. The program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.