Finding Text
Finding SA2019-001: Rent Reasonableness Determination
AL number: 14.871
AL Title: Housing Voucher Cluster - Section 8 Housing Choice Vouchers
Name of Federal Agency: Department of Housing and Urban Development
Federal Award Identification number and year: CA010 (2019)
Criteria: 24 CFR Section 982.507 requires Public Housing Authorities (PHA) that receive Section 8 housing choice vouchers to determine whether the rent paid to the owner is a reasonable rent in comparison to rent for other comparable unassisted units by considering the location, quality, size, unit type and age of the contract unit. The PHA is required to maintain records to document the basis for the determination that rent to owner is a reasonable rent.
Condition: We reviewed sixty Section 8 tenant files for new and existing tenants, and noted six instances in which there were no rent reasonableness certificates to support the respective rent increases in fiscal year 2019 or certificates to support rent over the last three years. Furthermore, we noted one instance in which the tenant’s rental assistance was above the amount determined reasonable through the rent reasonableness determination, however, the Housing Authority did not modify the tenant’s payment accordingly.
Effect: The Housing Authority is not in compliance with the requirements as stated in 24 CFR Section 982.507.
Cause: We understand the missing certificates and unreasonable rent was due to staff turnover and lack of oversight in the Housing Authority during fiscal year 2019.
Identification as a repeat finding: Yes. Since fiscal year 2017.
Recommendation: The Housing Authority must develop procedures to ensure required documentation is properly maintained for all tenant files. In addition, any unreasonable rent should be adjusted accordingly.
Since the Housing Authority transferred the Housing Choice Vouchers (HCV Section 8) program to the Housing Authority of the County of Contra Costa (HACCC) on July 1, 2019, the Housing Authority should work with the HACCC to determine how to address the recommendation.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the Housing Authority.