Finding Text
Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))).
Condition: Home Forward is not in compliance with requirements related to eligibility.
Questioned costs: Unable to determine.
Context: For 1 of 40 files tested for public housing eligibility, family income and composition were not examined on a biennial basis and tenant income was not supported by 3rd party documentation.
Cause: Home Forward did not sufficiently monitor controls to ensure compliance with eligibility requirements
Effect: Home Forward is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using stale/inaccurate information in the rent calculation.
Repeat Finding: No.
Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and income is supported.
Views of responsible officials: There is no disagreement with the audit finding.