Finding Text
Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 ? Significant Deficiency Grant Award No. ND014-Housing Choice Voucher & ND014 Mainstream Voucher Federal Award Year 2022 Criteria The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition We tested compliance with the Authority?s rent reasonableness forms in 53 tenant files and found that two tenants did not have a rent reasonableness form for an increase in rent. The rent was deemed reasonable by the Authority once noted by the auditors. Questioned Costs None Context We reviewed a sample of 53 of the Authority?s 1,713 tenant files for rent reasonableness requirements. Effect HAP payments could have been paid to a tenant where rent was not considered reasonable. Cause Upon change in rent during the term of the HAP contracts, the tenant files did not contain forms comparing the rent of like-kind units. Repeat Finding See 2021-005. Recommendation We recommend there be a second party review of the file to ensure all appropriate documents are included. Views of Responsible Officials The Authority will have a checklist on annual certifications to ensure all appropriate documents are included in the file.