Finding 2024-002
Federal Agency Name: Department of Housing and Urban Development
Assistance Listing Number: 14.871
Program Name: Section 8 Housing Choice Vouchers Program
Initial Fiscal Year Finding Occurred: 2024
Finding Summary: Metro West Housing Solutions did not determine rent reasonableness for 2 tenants
during 2024. In addition, Metro West Housing Solutions did not follow their internal controls in place to
determine rent reasonableness for 3 tenants, and internal controls in place did not prevent the missing
determinations on the tenants noted.
Corrective Action Plan:
In response to the recent audit finding related to missing rent reasonableness determinations, Metro
West Housing Solutions has implemented the following corrective actions and is strengthening internal
controls to ensure compliance with HUD regulations at 24 CFR § 982.507.
Actions implemented:
• Discontinued using Nelrod rent reasonableness system, which we found to have inconsistent and
outdated comparable rent data. MWHS has also discontinued using the “point system” as a
control measure.
• The recently implemented rent reasonableness control measure requires that the proposed rent
for the assisted unit must be within 10% of the rents for comparable, unassisted units in the
private market. A unit is considered rent reasonable if none of the selected comparable units are
more than 10% below or above the proposed rent.
• Yardi Rent Reasonableness module is now being used to determine reasonable rent in
accordance with 24 CFR § 982.507(b). This system enables automated, consistent comparisons
based on key HUD criteria.
• Staff will conduct periodic Yardi Rent Reasonableness system reviews to confirm comparable
market data is current and geographically appropriate
• Enhanced compliance protocols have been implemented to ensure all staff are receiving
frequent, standard training. In addition, individual file audits will be conducted more frequently.
Responsible Individual(s): Director, Housing Choice Vouchers
Anticipated Completion Date: September 2025