Finding Text
Criteria The Entity is a party to a section 8 rental subsidy contract which limits the rents to be charged on each unit in the property. This contract is periodically renewed, and maximum chargable rents are adjusted accordingly. Condition The Entity collected federal funds in excess of contracted amounts. Cause Management did not adjust its records for the decrease in the subsidy contracted amount and requisitioned subsidies in excess of the contract in place. Questioned Costs None noted. Context The total subsidy deposits were in excess of the contract in place. Effect The Entity received section 8 funding in excess of the current contract totaling approximately $500,000 during the year ended December 31, 2024. Recommendation We recommend that the Entity contact their HUD asset manager to discuss this error and how to resolve it as soon as possible.