Finding Text
Finding 2025-002 Special Tests and Provisions – Reasonable Rent ALN 14.871/14.879 Housing Voucher Cluster Criteria: Pursuant to 24 CFR 982.158(f)(7) the Authority is required to keep records to document the basis for PHA’s determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract). Condition: For 2 of 40 clients selected for testing, the rent reasonableness documentation was not provided, and the contracted rent amount could not be supported by rent reasonableness documentation. Cause: The Authority’s internal control procedures to ensure compliance with Special Tests and Provisions – Rent Reasonableness requirements were not operating as designed. Effect: The Authority was not in compliance with program’s Special Tests and Provisions – Rent Reasonableness requirements and controls were not operating effectively. Questioned Costs: The amount of questioned costs is $5,520, as noted in Finding 2025-001. Recommendation: The Authority should implement controls to ensure required documentation is retained and available for review and that annual reexaminations are properly completed and documented. Management’s Response: Management agrees with the finding and is implementing procedures to correct it. The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all client files contain documentation ensuring compliance with Rent Reasonableness requirements.