Finding Text
Federal program: AL #14.241 Housing Opportunities for Person With Aids. FY/Federal Award ID#: FY2023/See Schedule of Federal Expenditures. Federal agency: Department of Urban Development. Pass thru entity: Aids Foundation of Chicago. Criteria: If grant funds are used to provide rental assistance, the amount of the grant funds used to pay monthly assistance for an eligible person may not exceed the difference between the lower of the rent standard or reasonable rent. Per 24 CFR 574.320(a)(2) the rent standard shall be established by the grantee and shall be no more than the published section 8 fair market rent (FMR) or the HUD approved community-wide exception rent for the unit size. Per 24CFR section 574.320(a)(3), the rent charged for a unit must be reasonable in relation to rents currently being charged for comparable united in the private unassisted market and must not be in excess of rents currently being charged by the owner for the comparable unassisted unites. Allowable assistance can be determined by telephone surveys, site visits after telephoning, or more extensive market surveys of available rental unites to assess the reasonableness of rents being charged. Condition/Prevalence: One out of sixty selections did not include the Foundations rent reasonableness checklist and certification or other supplemental documentation to satisfy the criteria above. The sample was not statistically valid. Questioned Costs: None noted. Cause: Lack of maintaining required eligibility compliance documentation as a result of personnel turnover. Effect: If supporting documentation for eligibility is not maintained there is a reasonable possibility that rental assistance allowed may exceed the difference between the lower of that rent standard pr reasonable rent. Recommendation: Rent reasonableness checklist and certification or other supplemental documentation to satisfy the criteria above should be maintained in the program participant’s file. View of Responsible Officials: Management will ensure the Foundation policies and procedures are communicated and all program participants files maintain the required documentation.