Finding Text
Federal Program: Assistance Listing #14.871 - Section 8 Housing Choice Vouchers.
Criteria: In accordance with 24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507, the public housing agency (PHA) must determine that the rent to the owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract)
Condition: The Authority was unable to provide records to document the basis for the determination that rent to owner is reasonable for fifteen out of forty participant households tested.
Questioned Costs: None.
Cause: The cause is the lack of file reviews for staff members.
Effect: The effect is inappropriate rent subsidy could be applied. Recommendation: We recommended the Authority have a reviewer perform a tenant file review once a staff member completes a tenant’s file.
Management’s Response: Management will begin to comply with the applicable CFR regulations and begin annual reasonable rent determinations.