Finding Text
Tenant Files – Reasonable Rent Calculations Criteria: Housing Commissions are required to determine that the rent paid to the owner is reasonable in comparison to rent for other comparable unassisted units. The determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. Condition: Of the 12 tenant files that were examined, 2 of the tenant files contained a reasonable rent calculation that concluded the rent being charged was deemed to not be reasonable. Of the 12 tenant files that were examined, 4 of the tenant files did not contain documentation of a reasonable rent calculation. Of the 12 tenant files that were examined, 6 of the tenant files did contain documentation of a reasonable rent calculation however, the calculation did not occur until July 2025 (after the end of the Housing Commission’s fiscal year). Cause: The Housing Commission experienced turnover in key positions responsible for performing essential duties, including maintaining tenant files near the beginning of the fiscal year. This turnover resulted in the Housing Commission not having adequate controls in place to ensure that all required information was included in the tenants’ file, along with ensuring that accurate information was used in calculating the tenants’ monthly rent. Effect: As a result of this condition, the Housing Commission lacks internal controls over the process for ensuring that tenant rent reasonableness is properly calculated. This situation could result in landlords being paid rent that exceeds guidelines established by HUD.