Finding Text
Federal Program U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream 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 In our sample of 40 tenant files tested, BMA noted that 9 files did not include a rent reasonableness calculation. Context We selected 40 tenants to sample out of 342 total for the year. Effect HAP payments could have been paid to a tenant where the rent was not considered reasonable. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority review its control procedures to ensure that all compliance procedures are performed in a timely manner. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendations.