Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2025-001: Major Programs: Flexible Subsidy Assistance Loan and Section 8 Project-Based Cluster - Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION One tenant file, out of thirteen files reviewed, had given the tenant a less than 30-day notice of tenant rent increase. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to give tenants a 30-day written notice of a rent increase. EFFECT OF CONDITION The tenant was given a 28-day written notice of rent increase. CONTEXT During audit fieldwork, thirteen tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the thirteen tenant files examined, the file for one tenant did not contain the written notice of rent increase within the 30-day requirement. CAUSE OF CONDITION Management was unable to provide a 30-day written notice of rent increase due to waiting for tenant paperwork to complete the recertification process. RECOMMENDATION The auditor recommends ensuring recertification paperwork is received timely to ensure a 30-day written notice of rent increase is provided to tenants. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be monitoring the recertification process to ensure a 30-day written notice of rent increase is provided to tenants.