Finding Text
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.