Finding Text
2023-003 - Annual Income Verification For Tenant Eligibility
Criteria:
Regulations require that HOME-assisted units in a rental housing project must be occupied only be households that are eligible as low-income families and must meet certain limits on rents that can be charged.
Condition:
The Organization was unable to provide evidence of income verification, to be completed upon signing an annual rental agreement, for seven of the tenants selected for testing.
Effect:
The Organization did not comply with 24 CFR § 92.252 (h). Per 24 CFR § 92.252 (h), this results in material noncompliance with the provisions of Federal statues, regulations, and terms and conditions of Federal awards related to major programs.
Questioned Costs:
The Organization’s lack of compliance resulted in $77,295 of questioned costs. Questioned costs were calculated by comparing the subsidies received for the exceptions noted and applying the prorated percentages to the remaining affected population.
Cause:
The Organization did not maintain evidence of annual income verification for seven of the tenants selected for testing.
Recommendations:
We recommend management review the tenant roles annually to ensure required income verifications are documented in compliance with program requirements.
Views of Responsible Officials:
The Organization agrees with the finding and will work to implement the recommendations.