Finding 498127 (2023-003)

Finding 2023-003 – Tenant File Certification Federal Program – Section 8 Housing Assistance Payments Program Assistance Listing Number – 14.195 Significant Deficiency Category of Finding – E – Eligibility Criteria - For eligibility of Section 8 rental assistance, HUD regulations require that Owners conduct a recertification of family income and composition at least annually. Owners must then recompute the tenants’ rent and assistance payments, if applicable, based on the information gathered. Condition - Family income and composition gross rent adjustments were not documented by management. There were 22 tenants selected for testing at the Project and 1 tenant gross rent adjustment was not documented. Effect - The Project is out of compliance with HUD Regulations. In addition, rental assistance may be delayed and changes in rental assistance will be effective from tenants’ annual recertification dates and any gross rent adjustments made. Any changes in the tenant portion of rent may not take effect until the annual recertifications are complete and may result in a loss of rent. Cause - Multiple tenant gross rent adjustments during the year resulted in the oversight of management to document a tenant gross rent change. Recommendation - Management is working diligently to review and document annual recertifications and gross rent adjustments accordingly. Management should ensure procedures are in place to properly review and document annual recertifications and gross rent adjustments. Auditee’s comments and response - LEUTHC and management agree with the finding, and will implement strategies to address the finding, including developing a monitoring program to set expectations and hold employees accountable to those expectations. The tenant out of compliance in 2023 performed the annual recertification and the rental assistance and contract rent agreed to the HUD form 50059 and housing assistance payments schedule. Status - Resolved