Finding Text
2024-003. Special Tests and Provisions United States Department of Housing and Urban Development Continuum of Care Program ALN: 14.267 Criteria: Grants used to pay rent for individual housing units, should document rent paid is reasonable in relation to rents being charged for comparable units, taking into account relevant features. In addition, rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: There were instances in which comparable rents for the area were not documented and maintained in tenant files. Cause: The Organization did not have an adequate control in place for the review by a supervisor of every tenant file to ensure that permanent documentation to conclude that reasonable rent being charged was maintained because of staffing constraints, a review of a selection of tenant files was performed for compliance with this criteria.Effect: The Organization may be paying rent that is not reasonable in relation to comparable rent in the area. Identification of a Repeat Finding: This is a repeat finding from the prior year, 2023-004. Questioned Costs: Dollar amount undetermined. Recommendation: The Organization should implement procedures for supervisory review of documentation within all tenant files to ensure reasonable rent criteria is demonstrated. Views of Responsible Officials of Auditee: The Organization agrees with the finding and will ensure written documentation is maintained in tenant files, to support that the grant funds to pay rent were used for reasonable rent in relation to comparable rents in the area.