Finding 1166150 (2025-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2025-12-22

AI Summary

  • Core Issue: A tenant received an overpayment in housing assistance due to the Agency not processing a rent change correctly.
  • Impacted Requirements: The Agency must follow HUD regulations for calculating and adjusting housing assistance payments when rent changes occur.
  • Recommended Follow-Up: Review and update procedures for HAP contract amendments, and ensure staff are trained to prevent future errors.

Finding Text

2025-001 - Section 8 Housing Choice Voucher - Assistance Listing No. 14.871; Grant Period - For the year ended September 30, 2025. Condition: During our review of tenant rent calculations under the Section 8 Housing Choice Voucher Program, we identified an instance where a tenant received an overpayment of housing assistance payments because the Agency did not process a change in the tenant’s rent amount. Criteria: The Agency is required to calculate housing assistance payments in accordance with HUD regulations and adjust accordingly when changes in rent occur. Cause: The Agency did not properly include the correct housing assistance payment on the HAP contract amendment notice when a change in rent occurred. Effect of Condition: The tenant received housing assistance exceeding the amount for which they were eligible. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Agency should review the procedures in place in regards to the HAP contract amendment notices and the steps for the reflection of changes in rent amounts. These procedures should be updated as necessary and all individuals involved should be trained accordingly. Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the above finding and has since made the appropriate rental adjustment to the tenant’s record. The overpayment to the landlord has been recouped. This error occurred in a tenant file at a blended-occupancy project with 30+ Section 8 participants and a tiered rent structure. The landlord’s rent increase request was complex, which contributed to the error. To prevent similar issues in the future, staff will conduct a detailed review of each tenant file at the time an increase request is submitted. Any outliers will be identified, and clear notes will be entered in the file to help avoid recurrence.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Agency agrees with the above finding and has since made the appropriate rental adjustment to the tenant’s record. The overpayment to the landlord has been recouped. This error occurred in a tenant file at a blended-occupancy project with 30+ Section 8 participants and a tiered rent structure. The landlord’s rent increase request was complex, which contributed to the error. To prevent similar issues in the future, staff will conduct a detailed review of each tenant file at the time an increase request is submitted. Any outliers will be identified, and clear notes will be entered in the file to help avoid recurrence.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $4.01M