Finding Text
Program Name: Housing Choice Vouchers
AL Number: 14.871
2023-003 Rent Reasonableness - RF (2022-005) Special Test & Provisions(N)
Criteria: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA 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 five 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 a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: The above requirements were not met for the 2023 audit.
Context: During the audit year a reasonableness analysis was not completed for participants.
Cause: The Housing Authority did have a payment standard in place, however, they did not complete rent reasonableness analysis.
Effect: The Authority was in violation of the Federal Regulation which could have resulted in overpayment of Housing Assistance Payments (HAP).
Recommendations: We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Housing Choice Voucher Program.
Management Views: Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report.