Finding Text
Finding 2024-003: Noncompliance with Period of Performance Requirement
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Continuum of Care Program (PRC RR, Northern PSH Combo, and Piedmont)
Assistance Listing Number: 14.267
Award Period: Northern PSH Combo (Grant no. NC 0045) April 1, 2023 to March 31, 2024 Piedmont (Grant no. NC 0221) June 1, 2023 to May 31, 2024 PRC RR (Grant no. NC 0125) June 1, 2023 to May 31, 2024
Type of Finding: Significant Deficiency and Noncompliance
Condition and Criteria: Rent reasonableness should be assessed on an annual basis.
Cause: Community Link has a policy to perform a rent reasonableness assessment when the client enters the program, but there is no policy to update that assessment on an annual basis.
Effect: Community Link is not comparing the current rent to the market rent rates.
Recommendation: We recommend that management implements a policy to review rent reasonableness on an annual basis at a minimum. We also recommend performing a rent reasonableness assessment if rental rates charged for the same unit are increased.
View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Community Link will update the policy and procedure manual to add that rent reasonable will be completed annually for customers in CoC programs and when rental increases are assessed by the Property provider. Currently, staff are in communication with property providers when an increase is assessed, so the increased rents stay within the FMR for the area.
Name of the Contact Person Responsible for the Corrective Action: Tameka Gunn, President and Chief Executive Officer
Planned Completion Date for the Corrective Action Plan: March 2025