Finding 618686 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-25

AI Summary

  • Core Issue: The Authority failed to provide reasonable rent certifications for 44% of current tenant files and 67% of new participant files in the Housing Choice Voucher program.
  • Impacted Requirements: This violates 24 CFR sections 982.158(f)(7) and 982.54(d)(15), which mandate documentation for rent reasonableness.
  • Recommended Follow-Up: The Executive Director and Housing Choice Voucher staff must ensure all tenant files are complete and compliant with documentation requirements to avoid potential financial repercussions.

Finding Text

24 CFR sections 982.158(f)(7) provides that the Public Housing Authority (PHA) must keep records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract). 24 CFR sections 982.54(d)(15) provides the Public Housing Authority (PHA) administrative plan must cover policies on the method of determining that rent to owner is a reasonable rent (initially and during the term of a Housing Assistance Payment contract). The Authority?s Housing Choice Voucher Administrative Plan Section 13(5)(c) provides the Authority will retain the following in the tenant file: 1. Request for Lease Approval 2. Lease 3. Inspection report(s) 4. Certification of Rent Reasonableness 5. Executed contract. The Authority could not provide the reasonable rent certifications for 44 percent of the current tenant files tested for the Housing Choice Voucher program. The tenants lacking this certification in their file had been in the program for several years or were new to the program in 2022. The Authority also could not provide the reasonable rent certification for 67 percent of the new participant tenant files tested for the Housing Choice Voucher Program. The tenants lacking this certification in their file had been admitted into the program during 2022. The failure to document rent reasonableness could lead to future questioned costs, reduced future federal funding, and the requirement to repay the U.S. Department of Housing and Urban Development. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation and meet the requirements for rent reasonableness.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 42243 2022-001
    Material Weakness
  • 42244 2022-002
    Material Weakness
  • 42245 2022-003
    Material Weakness Repeat
  • 618685 2022-001
    Material Weakness
  • 618687 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $770,021
14.871 Section 8 Housing Choice Vouchers $755,446
14.872 Public Housing Capital Fund $89,776