Finding Text
2023-005. Tenant Accounts Receivable
Criteria:
Under the terms of the annual contributions contract, each project shall be developed and administered to promote efficiency, economy and stability.
Condition:
I noted tenant accounts receivable at year end were $36,933 (excluding vacated and tenants who have signed a repayment agreement) which represents 54% of the total charges for the month of September 2023.
Questioned Costs:
None noted.
Effect:
The continuing growth in tenant accounts receivable is a threat to maintaining a financially solvent operation. Without proper rent collection, current operating expenses cannot be paid.
Cause:
The Authority did not effectively enforce its rent collection policy resulting in a significant amount being owed to the Authority.
Recommendation:
I recommend that the Authority place greater emphasis on the collection of all outstanding balances.
Management’s Response:
We are trying to find a new hire to assist our Public Housing - Operations Manager with collections. Our clientele base has gotten tougher to keep ahead of over the past several years. With all of the other concerns we deal with (tenant problems, tenant apathy, tenants not abiding by our rules, etc.) the job has become too large for one person. We attempt to work with our residents rather than simply evicting them for non-payment of rent, however, it seems that so many these days do not hold up their end of the bargain in the end. An extra person to deal with those in arrears will help tremendously.