Finding Text
2023-003: Housing Voucher Cluster – Eligibility – Document Retention
Federal Program: Housing Voucher Cluster
Assistance Listing No.: 14.871/14.879
Federal Agency: U.S. Department of Housing and Urban Development
Pass-Through Entity: None
Federal Award Identification Number: ME901/COVID-19 ME901/ME901MS5
Repeat Finding: This is not a repeat finding Criteria – As a condition of admission or continued occupancy, HUD requires the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Housing Assistance Payment (HAP) contracts are maintained between MaineHousing and property owners to define the number of units eligible for subsidy. Lease agreements are maintained between property owners and tenants.
Condition – MaineHousing maintains both HAP contracts and lease agreements for property owners and beneficiaries under the Housing Choice Voucher program. For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts.
Questioned costs – None.
Cause – During 2023, MaineHousing removed certain records from its system for contracts and agreements that were no longer in effect. Certain records that were still currently in effect were removed inadvertently.
Effect or potential effect – There is a risk that HAP contracts and lease agreements that are maintained by MaineHousing may not be current, resulting in errors in subsidy payments.
Context – For 2 of 25 tenants selected for eligibility testing, MaineHousing could not provide the original HAP and lease contracts. The sample was a statistically valid sample.
Recommendation – MaineHousing should review any documentation that was inadvertently disposed and work with property owners to restore and retain the most recent HAP contracts and lease agreements with tenants.
Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.