Finding Text
Reasonable Rent Review Material Weakness U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ALN #: 14.267 - Continuum of Care Program Federal Award Identification #: IL0099L5T102215, IL0096L5T102215, IL0178L5T102215, IL0180L5T102215, IL0179L5T102215, IL0216L5T102215, IL0097L5T102215, IL0393L5T102214, IL0374L5T102212, IL0269L5T112215, IL0667L5T102206, IL0667L5T102206 Condition: HAH did not have evidence of performing reasonable rent review for the 22 tenants tested as required by the Department of Housing and Urban Development (HUD). Criteria: 24 CFR 578.49(b)(2), 24 CFR 578.51 (g) Questioned Costs: $0 Context: For all 22 tenants selected as part of the audit testing, HAH did not perform procedures to assess rent reasonableness compared to unassisted units in the same property. While the rents paid did not exceed HUD’s published fair market rents (FMR), this assessment is required to be performed in accordance with program guidelines. Cause: Turnover at HAH. HAH has since transferred their Continuum of Care programs to another HAH and was unable to locate tenant files. Effect: Noncompliance with program requirements. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that HAH make sure that the organization who took over the program maintains the program files for the required record retention period. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.