Finding Text
Federal Program U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. ND044-Housing Choice Vouchers Grant Award Year 2024 Questioned Costs None. Criteria The Authority is required to compare and calculate reasonable rent for tenants. Considering the location, quality, and utilities offered by the owner. Rent should not exceed 110% of the next most comparable units. (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We noted 3 of the files tested were missing a rent reasonableness calculation and 3 had rent reasonableness calculations that were considered unreasonable. Context We reviewed 33 tenant files out of a total of 162 unique participants for 2024. Effect HAP payments could have been paid to a tenant where the rent charge was not considered reasonable. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend Authority review its control procedures to ensure all compliance procedures are performed timely and documented. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor's recommendations.