Finding Text
Financial Reporting
None
Compliance
2023-01 – Housing Choice Voucher – Reasonable Rents Calculation and Documentation
Condition -In our sample of 30 Housing Choice Voucher tenant files, the files that had been merged into the Authority from Emery County did not have documentation to support rent reasonableness for existing tenants with rental increases during the year. All of the tenants that had not been part of the merger had the required documentation.
Effect – The Housing Authority is not in compliance with the HUD requirements for determining reasonableness rents for rent increases.
Cause –Rental increases across all units is due to inflation and lack of supply has increased the number of tenant’s
that need reasonable rent calculations performed. At the same time the staff available to perform the additional work has not changed. The current system used by the PHA to calculate and document the rent reasonableness is time not automated and so is time intensive for the Section-8 employee.
Criteria According to the HUD HCV Program guidebook paragraph 2.1.2: (emphasis added)
Before the PHA may approve any rent increase to the owner, the PHA must determine and document whether the proposed rent is reasonable compared to similar units in the marketplace and not higher than those paid by unassisted tenants on the premises.
Recommendation: The PHA should look at their process and system to see if they can make changes so they can quickly determine and document rent reasonableness for all rent increases to the owner in accordance with HUD guidelines.