Finding Text
PHAs are required to reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third-party verification (24 CFR section 982.516).
The above requirements were not met for the 2020 audit.
During the audit we selected 24 tenants to test, we noted 17 out of the 24 tenants either had HUD Forms 50058 with over 1 year between previous re-examinations or did not have a valid 50058 included with the Tenant's information.
Personnel responsible for performing re-examinations were not informed of requirements and no internal controls were in place to ensure compliance.
The Authority was in violation of the Federal Regulation which resulted in errors in calculating housing assistance payments (HAP) and utility reimbursement payments.
We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program.
See Management's Corrective Action plan.