Finding Text
2022-002 ? Reasonable Rent Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2022 Award Period: 1/1/2022-12/31/2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The PHA must determine reasonable rent during the term of the contract before any increase in the rent to owner (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Per the Commission's administrative plan, before approving a rent increase, the HCHC must determine and document whether the proposed rent is reasonable compared to similar units in the marketplace and not higher than those paid by unassisted tenants. Condition: We noted that the Commission did not maintain consistent documentation regarding reasonable rent determination. Questioned costs: Unable to determine. Context: During our testing of 25 files for rent reasonableness, we noted the following: 7 out of 25 rent changes tested were missing a rent reasonableness form. Cause: The Commission did not follow established procedures in their Housing Choice Voucher Administrative Plan. Effect: The Commission is not in compliance with HUD requirements. Repeat finding: No Recommendation: We recommend that the Commission review their policies and ensure that rent reasonableness is determined and documented for all rent changes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.