Finding Text
2025-001 Special Tests and Provisions - Reasonable Rent Federal Program U.S. Department of Housing and Urban Development AL #14.871 and #14,879 Grant Award No. ND031-Housing Choice Vouchers & ND031-Mainstream Vouchers Grant Award Year 2025 Questioned Costs None. Criteria The Authority is required to compare and calculate reasonable rent for tenants. Considering the location, quality, and utilities offered by the owner, rent should not exceed 110% of the next most comparable units. (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition In our sample of 40 tenant files tested, we noted that 1 file did not include a rent reasonableness calculation. Context We selected 40 tenants to sample out of 370 total for the year. Effect HAP payments could have been paid to a tenant where the rent was not considered reasonable. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend that the Authority implement and use a standardized checklist to ensure that all tenant files contain the required documentation. Views of Responsible Officials The Authority recognizes the deficiency and plans to implement the auditor’s recommendations.