Finding Text
Rent Reasonableness
Finding Number: 2022-008
Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster
Federal Award Identification Number / Year: 2022
Federal Agency: U.S. Department of Housing and Urban Development
Compliance Requirement: Special Tests and Provisions, Reasonable Rent
Pass-Through Entity: N/A
Repeat Finding from Prior Audit? No
24 CFR § 982.158(f)(7) provides that the Public Housing Authority (PHA) must keep records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract) for at least three years.
24 CFR § 982.54(d)(15) provides the Public Housing Authority (PHA) administrative plan must cover policies on the method of determining that rent to owner is a reasonable rent (initially and during the term of a Housing Assistance Payment contract).
The Authority’s Housing Choice Voucher Administrative Plan Section 8 provides the Authority will make a rent reasonableness determination at initial occupancy and whenever the owner requests a rent adjustment.
The Authority could not provide the reasonable rent certification for 18 percent of the initial occupancy tenant files tested for the Housing Choice Voucher program. The failure to document rent reasonableness could lead to future questioned costs, reduced future federal funding, and the requirement to repay the U.S. Department of Housing and Urban Development.
The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation and meet the requirements for rent reasonableness.