Finding Text
Review of Rent Reasonableness
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Continuum of Care Program
Assistance Listing Number: 14.267
Award Period: July 1, 2023 – June 30, 2024
Type of Finding: Significant Deficiency of Internal Control over Major Federal Program
Condition and Criteria: Rent reasonableness is completed by a member of the leasing and housing team. The Chief of Housing Operations performs a review of the rent reasonableness documentation. However, there is no documentation of the review and approval.
Cause: Supportive Housing Communities, Inc. requires a review of the rent reasonableness by the Chief of Housing Operations, but there is no policy requiring documentation of the review and approval.
Effect: It is possible review is not completed and errors are not caught and corrected timely.
Recommendation: We recommend that management implement a policy that the Chief of HousingOperations documents their approval to ensure the review and approval have occurred.
View of Responsible Officials and Planned Corrective Actions: The Organization agrees with thefinding. Supportive Housing Communities, Inc. has updated their process for preparing and inspectionof rent costs to ensure that the Chief of Housing Operations reviews all rent reasonablenessdocumentation by signing each form and noting the date of review.
Name of the Contact Person Responsible for the Corrective Action: Laura Caldwell, President andChief Executive Officer
Planned Completion Date for the Corrective Action Plan: July 15, 2025