Finding Text
2023-003 Ineligible fees for lawn care and pest control charged and paid by residents of Authority units (Activities Allowed or Unallowed)
Criteria: Under HUD rules and regulations, the Authority is required to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. As such, the Authority is required to maintain the property as part of its operations. The cost of maintaining services for lawn care and pest control is a requirement of the Authority and should be paid for by the Authority’s program.
Condition: It was determined that the Authority was charging $3 per unit per month for pest control and $5 per unit per month for pest control to each tenant. The amount due back to tenants for the years 2019-2023 totaled $41,659.
Questioned
Costs: $41,659
Effect: The Authority was recognizing revenues charged to tenants inappropriately and using these funds for operating expenses.
Cause: The Authority did not realize that it could not charge its residents for both lawn care services and pest control.
Recommendation: The Authority should reimburse all fees charged to tenants that were charged inappropriately.
Management
Response: A response cannot be directed to this finding until the amounts are reconciled to determine the amounts owed as not all of the residents were charged for lawn care (elderly residents were not charged). It should also be noted that this was first brought to light during a HUD Review that was not completed until early December 2023.