Finding Text
Continuum of Care Program - Assistance Listing No. 14.267; Grant No. CO0083L8T042012, Grant Period September 1, 2021 - August 31, 2022; Grant No. CO0083L8T042113, Grant Period September 1, 2022 - August 31, 2023; Grant No. CO0061L8T042114, Grant Period July 1, 2022 - June 30, 2023 Criteria: Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Condition: Significant Deficiency - A rental rate comparison to HUD published fair market rents was not performed for one tenant out of the 37 cases selected for testing, and there was no manager approval on the rental rate comparison to HUD published fair market rents for two other tenants out of the 37 cases selected for Cause: The Organization was unable to provide a rental rate comparison and provide proof that a manager approved the rental rates due to turnover within the Organization. Effect: Tenants and/or the Department of Housing and Urban Development could be charged unreasonable rental rates. Recommendation: The Organization should compare rental rates to HUD published fair market rents for all tenants and document the comparison. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.