Finding 1127965 (2024-001)

Finding No. 2024-001 Housing Choice Voucher: Tenant Eligibility – Significant Deficiency CONDITION: The Authority's Housing Choice Voucher program was not pulling Earned Income Verifications (EIVs) within 90 days of move-in, as required by HUD regulations. Additionally, the Authority was missing one recertification for a tenant during the audit period, and was missing criminal background checks for tenants. These issues were all for tenants that at Whitemarsh Point Eagle Landing. CRITERIA: Tenants of the Housing Choice Voucher program are required to be recertified annually and on the interim basis in accordance with HUD regulations. Certification guidelines require use of the EIV System to verify tenants' reported incomes during annual recertifications within 90 days of move-in, and pull the required criminal background checks. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: Of 40 tenant files examined, two files did not contain documentation that tenant’s reported income was verified with an EIV within 90 days of move-in. Of the 40 tenant files examined, nine files did not contain a criminal background check for adults. One file was missing recertification. EFFECT: The Housing Authority could be renting to tenants who are not paying the appropriate amount of rent per program regulations or be housing someone who does not qualify based on criminal history. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Housing Authority should implement greater oversight over the Housing Choice Voucher tenant compliance and train employees on procedures mandated by HUD regarding tenant income verification, annual recertification and proper background checks during intake.