Finding 1094282 (2022-002)

Missing Rent Reasonableness Checklist and Certification Forms Criteria Federal regulations W1der the U.S. Department of Housing and Urban Development (HUD) require that rent paid under certain housing assistance programs (such as HCV or Section 8) must be reasonable in comparison to similar unassisted units in the area. This is outlined in 24 CFR 982.507 and requires the completion of a rent reasonableness checklist and certification forms to document compliance. Condition During the audit, current management was unable to locate completed rent reasonableness checklist and certification forms required under the program for several units. Although a blank form was provided to the auditor, no completed forms for the period under audit were found in the program's records. Without these forms, the organization cannot demonstrate compliance with the rent reasonableness requirements, resulting in a material non-compliance with federal program regulations. Cause The issue appears to be related to inadequate record retention and management practices. Specifically: There may have been a lack of sufficient controls to ensure that completed rent reasonableness forms were properly retained and easily accessible to current management. Effed The failure to provide completed rent reasonableness checklist and certification forms constitutes a material non-compliance with federal regulations. This non-compliance may put the organization at risk of federal program findings and potential financial penalties.