Finding Text
Criteria: The owner’s certification of compliance with HUD’s tenant eligibility and rent procedures per Form HUD-50059 is completed correctly. Per HUD Operating Budget FY201-2022 for the New Rents letter dated June 2, 2021, the effective date of new rents will be May 25, 2021 from 1Br Current Rent-$1,381 to New Rents-$1,495.
Condition: During our testing of Eligibility, we noted that Jordan, Levi who move-in date 8/15/2021, was charged $1,381 per Form HUD-50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, but on the HUD lease contract rent was $1,495.
Cause: Due to the turnover of the Management Agent and Property Management Staff, there was a lack of internal control over new contract rents on the HUD Lease and Form HUD- 50059.
Effect: The initial certification Form HUD-50059 was not completed correctly.
Context: A sample of four tenant files was for Testing of Eligibility, in which one instance in which, the Form HUD -5059 was not completed correctly.
Recommendation: We recommend that the Project correct Form HUD 50059 for Jordan, Levi.
Views of Responsible Officials and Corrective Action Plan: No disagreements with the audit finding.