Finding Text
Statement of Condition – For the Low Rent Public Housing program, we reviewed 40 tenant files (recertification files and new tenant files) for the fiscal year ended June 30, 2025. We reviewed 5 files for tenants who moved out during the fiscal year ended June 30, 2025. The selected files represent a sample of all tenant files in the two AMPS. We noted 1 instance in which tenant rent was calculated incorrectly. For this file, EIV was not used as part of the income calculation for the Move To Work (MTW) Year 1 calculation. This resulted in missed wages for the head of household. Due to this error, income was underreported in year 1 and was carried forward to year 2 when the error was discovered. The tenant should have been charged flat rent in the first year, creating an underpayment of $96/month. Since the error was carried over into the second year of the MTW program, it is reasonable for the error to be doubled due to the nature of the MTW program. Criteria – Per the Public Housing Occupancy Guidebook: 1. Section 8.2.2, “PHAs must use HUD’s verification hierarchy when verifying the family’s income, assets, deductions, and expenses…Enterprise Income Verification (EIV) is mandatory (i.e. must review EIV Income Report for all families when verifying income)”. Effect – For the files referenced above: 1. Tenant rent was incorrectly calculated, resulting in an underpayment of $96 per month for two years ($2,304 overall). Cause – Incorrect procedures were followed in regards to calculating tenant income. Recommendation – Procedures surrounding tenant rent calculation processes should be strengthened. EIVs need to be pulled and reviewed when verifying family income. Identification of a repeat finding – This is a repeat finding in the current year. Views of responsible officials and corrective action plans – The Authority agrees with this finding. Please refer to the corrective action plan on page 60.