Finding Text
Information on the Federal Program: Assistance Listing No. 14.195 Project-Based Rental Assistance United States Department of Housing and Urban Development (HUD) (PBRA), 061-EH025 - 2025 Criteria: Special Tests and Provisions – Vacant Units (24 CFR sections 880.611, 881.601, 882.411, 882.808(f), 883.701, 884.106, 886.109, and 886.309) Condition: The Department of Housing and Urban Development provided requirements associated with the Housing Assistance Payments. Those requirements outlined that the PHA or owner must reduce claims for assistance on vacant units under certain circumstances. However, there are instances where special claims are allowed for vacancy losses, unpaid rent, and tenant damages on eligible units. Management should have effectively designed controls in place to prevent, or detect and correct, material noncompliance with federal programs. Cause: A control was not in place to prevent, or detect and correct, missing reduced claims for assistance on vacant units from being identified. Effect: MM of M did not ensure that the vacant units claims for assistance were reduced. Questioned costs: $533 Context: MM of M did not properly recoup the housing assistance payment of their vacant units. Forvis Mazars sampled 4 of the 24 units that were vacant at MM of M and received documentation showing that the housing assistance payment was not properly recouped for 1 of the 4 units. The sample was not intended to be and was not a statistically valid sample. Identification of a Repeat Finding: Not a repeat finding. Recommendation: Effective controls over compliance should be implemented to ensure claims for assistance are reduced upon a unit becoming vacant in accordance with the HUD requirements. Views of responsible officials and planned corrective actions: Management agrees with the findings and has put in place a process to reduce requests for vacancies. See Management’s Corrective Action Plan attached.