Finding Text
Statement of Condition – For the Section 8 New Construction Program, we reviewed 5 tenant
files (recertification files and new tenant files) for fiscal year ended September 30, 2024. We
reviewed 1 file for tenants who moved out during the fiscal year ended September 30, 2024. The
selected files represented a sample of all files in the program in current year. We noted 1 instance
in which income from wages was incorrectly calculated in determining total tenant income.
Criteria – Per the HUD Handbook (Section 5.5), “The owner must use current circumstances to
anticipate income…”.
Effect – For the file referenced above, wages were annualized assuming the tenant was paid
weekly, when the tenant was in fact paid bi-weekly. The net effect of this error was an
overstatement of tenant rent of $250 per month.
Cause – Incorrect procedures were followed in regards to calculating total tenant income.
Recommendation – Procedures surrounding tenant rent calculation processes should be
strengthened.
Views of responsible officials and planned corrective actions – The Authority agrees with this
finding. Please refer to the corrective action plan on page 56.