Finding 24827 (2022-001)

2022-001 ? SPECIAL TESTS AND PROVISIONS ? RENT REASONABLENESS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Section 8 Housing Choice Vouchers Program CRITERIA The PHA may not approve a lease until the PHA determines that the initial rent to an owner is a reasonable rent. (2) The PHA must redetermine the reasonable rent: (i) Before any increase in the rent to an owner; (ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary. (iii) If directed by HUD. The PHA may also redetermine the reasonable rent at any other time. At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA. (24 CFR 982.507) CONDITION We identified 5 instances in which the Authority was required to perform an assessment to determine if the rent requested by the landlord is reasonable for which the rent reasonableness determination was not maintained in the tenant file. CAUSE Due to oversights in documenting rent reasonableness determinations, required documentation was not retained within the tenant file. EFFECT The Authority cannot ensure that the HAP payments to landlords were reasonable.QUESTIONED COSTS None Identified. CONTEXT We selected a sample of 17 participants in the Housing Choice Voucher Program from a population of 169 participants. REPEAT FINDING Not a repeat finding.