Finding Text
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency
Grant Award No.
ND014-Housing Choice Voucher
Federal Award Year
2024
Criteria
The Commission 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) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition
We tested compliance with the Commission’s rent reasonableness forms in 40 tenant files and found that four files did not contain rent reasonableness forms for an increase in rent. Although lacking adequate support, it was determined charged rent was reasonable in amount.
Questioned Costs
None
Context
We reviewed a sample of 40 tenant files out of a total of 2,155 for rent reasonableness requirements.
Effect
HAP payments could have been paid to a tenant where rent was not considered reasonable.
Cause
Upon change in rent during the term of the HAP contract, the tenant file did not contain forms comparing the rent of like-kind units.
Repeat Finding
2023-003.
Recommendation
We recommend there be a second party review of the file to ensure all appropriate documents are included.
Views of Responsible Officials
The Commission will have a checklist on annual certifications to ensure all appropriate documents are included in the file.