Finding Text
Tenant Files Condition: Housing Choice Vouchers Move-ins: 1. In two (2) instances out of forty (40) tenant files tested, the "Authorization for the Release of Information" (Form HUD-9886), was not maintained in the tenant file. 2. In one (1) instance out of forty (40) tenant files tested, the lease agreement was not signed by the tenant. 3. In one (1) instance out of forty (40) tenant files tested, the lease agreement was not signed by the tenant or the landlord. 4. In four (4) instances out of forty (40) tenant files tested, the rent reasonableness form, was not maintained in the tenant's file. 5. In one (1) instance out of forty (40) tenant files tested, the "Lease Addendum" - Violence Against Women and Justice Department Reauthorization Act of 2005, was not maintained in the tenant file. Mainstream Vouchers 1. In two (2) instances out of fifteen (15) tenant files tested, the rent reasonableness form was not maintained in the tenant's file. Criteria: 1. Authorization for the release of information form, must be signed by the tenant, prior to the PHA requesting income information from the sources listed on the form. 2. Lease agreement must be signed by the tenant and landlord, prior to the PHA making a subsidy payment to the landlord. 3. Rent reasonableness must be determined and documented on a case-by-case basis that the approved rent is reasonable in comparison to rent for other comparable unassisted units in the market. The PHA will not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent. 4. The Lease Addendum ? Violence Against Women and Justice Department Reauthorization Act of 2005 form, must be signed by the landlord and tenant, prior to the PHA making a subsidy payment to the landlord. Effect: Potential questioned cost of $13,943.00. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 655 tenant files Dollar Amount: $3,297,816. Sample Number: 55 tenant files tested Dollar Amount: $584,106. Items Not in Compliance Number: 11 non-compliance findings Dollar Amount: $13,943. Questioned Costs There were potential questioned costs of $13,943.00. Cause: Oversight by Management. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Marion Metropolitan Housing Authority 1) determines the rent reasonableness, prior to making a subsidy payment to the landlord; 2) obtain the tenant?s signature on the authorization for release of information, prior to requesting household income information; 3) obtain the tenant and landlord signature, prior to making a subsidy payment to the landlord and 4) obtain the lease-addendum ? violence against women form, prior to making a subsidy payment to the landlord. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: The oversights mentioned are due largely to the fact that Marion MHA has had several staff changes due to the untimely loss of a key management employee. It is our intent to provide more training opportunities on a regular basis to ensure all employees, especially newer personnel, are aware of HUD required documents and the importance of reviewing all incoming documents for proper signatures from tenants and landlords prior to making and HAP payments on behalf of program participants. We are also in the process of reviewing our procedure to ensure rent reasonableness documentation is in every new file and is also completed for every rent increase for participants who have been on the program for more than 1 year. Our goal is to conduct rent reasonableness at the time we receive a Request for Tenancy Approval and before the inspection is scheduled. We will also conduct rent reasonableness at the time we receive notices from landlords requesting increases in the contract rent.