Finding Text
1. Housing Assistance payments
Finding Number: 2023-001
Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/COVID-19: Section 8 Housing Choice Vouchers and AL #14.879 Mainstream Voucher Program
Federal Award Identification Number / Year: 2023
Federal Agency: U.S. Department of Housing and Urban Development
Compliance Requirement: Section L -Reporting, and Section N – Housing Assistance Payments
Pass-Through Entity: No
Repeat Finding from Prior Audit? Yes
Prior Audit Finding Number: 2022-001
Noncompliance and Material Weakness
24 CFR section 982.516(a) states the Public Housing Authority (PHA) must conduct a re-examaination of family income and composition at least annually. Section 2 states the PHA must obtain and document in the tenant file third-party verification of the following factors or must document why third-party verification was not available: (i) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income- based rent.
24 CFR section 908 states the Public Housing Authority (PHA) is required to submit HUD-50058 form electronically to HUD each time the Public Housing Authority (PHA) completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family.
24 CFR section 982.505(b) states the Public Housing Authority (PHA) shall pay a monthly housing assistance payment on behalf of the family that is equal to the lower of: (1) The payment standard for the family minus the total tenant payment; or (2) The gross rent minus the total tenant payment.
The Authority incorrectly calculated the amount on the HUD-50058 for 5.3% of the tenant files tested for the Housing Choice Voucher program. This resulted in an incorrect amount paid from the Section 8 funding.
The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation to meet the requirements of housing assistance payments reporting.