Finding Text
Finding 2025-003: Missing Tenant Information (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Federal Assistance Listing Number: 14.871 Compliance Requirement: Eligibility, Special Tests and Provisions Criteria: Per 24 CFR sections 982.158, 982.4, 982.516, and 982.517, PHAs are required to obtain documentation declaring the tenant is eligible to receive federal housing benefits, perform annual recertifications of tenant income through HUD Form 50058, determine that rent is reasonable, and determine that the utility allowance is reasonable. Condition: The Authority was unable to provide declarations of eligible status and annual recertifications. Furthermore, the Authority did not calculate income correctly to determine tenant’s rent amount. Context: Out of the 25 tenant files reviewed, we found the following exceptions: 1 file did not have proper declaration of eligible status 2 Housing Assistance Payment (HAP) amounts from the tested 50058s did not match the HAP check register 2 files did not have the required 50058 and related income support documentation 22 files did not have proper rent reasonableness documentation 9 files did not have proper utility allowance documentation 1 file did not have income calculated correctly Effect: The Authority was not in compliance with the eligibility and special tests and provisions requirements for the program. Cause: The Authority did not have the proper controls in place to ensure the files were complete and accurate. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications are performed and the necessary documentation is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.