Finding Text
2024-004 Eligibility and Housing Assistance Payments – Significant Deficiency
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 & 14.879
Grant Award No.
ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers
Grant Award Year
2024
Criteria
In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have
proper supporting documentation to determine income eligibility and tenant’s rent payment. In
accordance with 24 CFR section 982.516, the Authority must reexamine family income and
composition at least once every 12 months and adjust the tenant rent and housing assistance
payment as necessary using the documentation from third party verification.
Condition
During our testing of 40 tenant files, we found two files that did not contain third-party
verification for income. In both scenarios, the income from the prior year annual recertification
was used for the annual or interim recertification, in relation to the check sampled, without
obtaining the third-party verification. We also found two files that contained incorrect HAP
payments. One instance was due to the tenant moving addresses halfway through the month
and the full HAP payment was not paid back to HUD. The second instance was due to an
incorrect income calculation resulting in incorrect HAP payments.
Context
We reviewed 40 tenant files out of an average of 679 vouchers a month.
Effect
Authority may be charging incorrect rental rate per approved policies
Questioned Costs
None.
Cause
Proper eligibility documentation is not being prepared and maintained in all tenant files.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend tenant files should be maintained in an orderly fashion and all required
documentation should be kept in the appropriate file. We also recommend that the Authority get
third party verification when approaching an annual recertification at the minimum.
Views of Responsible Officials
Management will continue to emphasize to staff that applicable regulations and policies be
followed to ensure compliance.