Finding Text
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.