Finding Text
Excess Management Fees Charged to the Section 8 Housing Choice Voucher Program (Other Matter)
Section 8 Housing Choice Voucher Program – Assistance Listing No. 14.871, Grant Period: Fiscal Year-End March 31, 2024
Criteria
The Authority funds agency management, administrative and other indirect Section 8 Housing Choice Voucher Program (S8HCVP) costs by charging management and bookkeeping fees to the S8HCVP from its Central Office Cost Center (COCC). The Supplement to HUD Handbook 7475.1 specifies the management fee rate the Authority’s COCC may charge its S8HCVP at 20% of the administrative fee grant revenue recognized by the Program, or up to $12 per unit month per housing voucher leased, whichever is higher.
Condition and Perspective
During fiscal year 2024, the Authority’s COCC was permitted to charge management fees to its S8HCVP in the amount of $29,202 in accordance with the rate requirements stipulated in the Supplement to HUD Handbook 7475.1. However, the Authority’s COCC charged its S8HCVP $143,643, $114,441 above the allowable fee amount.
Questioned Costs – $114,441 excess charge to the Program.
Cause
Incorrect fee rate applied to Program.
Effect
Non-compliance with HUD fee requirements specified in the Supplement to HUD Handbook 7475.1.
Recommendation
We recommend that the Authority limit fees charged to its Section 8 Housing Choice Voucher Program to the fees specified in the Supplement to HUD Handbook 7475.1.
Management’s Response
The Authority will limit fees charged to its Section 8 Housing Choice Voucher Program to the fees specified in the Supplement to HUD Handbook 7475.1. The Authority’s Executive Director, Dr. Earl Hall, has assumed the responsibility of executing this corrective action as of July 1, 2025.