Department of Housing and Urban Development 2024-001 Public Housing Tenant Files Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850 Criteria: The PHA is required to conduct re-examinations of tenant eligibility on an annual basis. The PHA can elect to conduct complete re-examinations every three years using the streamline method. When using the streamline method, the tenant must be on a fixed income and certify that there have been no additional sources of income. The tenant income is adjusted by a cost of living adjustment (COLA) factor. Condition: During our review of twenty-two public housing tenant files, we noted the following: • Seven files were participating in the streamline re-examination process. On these seven files, the income was not adjusted for the COLA. Questioned Costs: None Context: Under 24 CFR 982.16, the PHA is required to adjust the income used in the rental computation by a COLA. The PHA thought that the rent did not have to be adjusted annually under the streamline method. They were adjusting the rent at the end of the three-year period. Effect: Rent amounts charged to the tenants that were participating in the streamline process were incorrect. Cause: The PHA thought that the rent did not have to be adjusted annually under the streamline method. They were adjusting the rent at the end of the three-year period. Recommendation: The PHA should adjust the amounts used in the rental computation on an annual basis. A complete re-examination is not required but the COLA should be reviewed and the rent amount adjusted if required. View of responsible officials and planned actions: We will modify our procedures to adjust the rent as required on an annual basis. Expected correction date is December 31, 2025.