Finding Text
2023 – 002 Housing Choice Voucher Program Reasonable Rent Testing – New Tenants
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per the Authority’s HCVP administrative plan, application require the completion of rent determination through use of automated database, showing 3 comparable rents for units located in the same area, with similar amenities, size, and condition for rent reasonableness. The rent determination form must be properly entered into the HDS system prior the HUD 50058 effective date.
Condition: During our testing of 24 files for Reasonable Rent – New Tenants requirements. criteria, we noted the following: 2 of 24 files had rent determination forms that were not approved in the HDS system until after the HUD 50058 effective date.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 24 files for Reasonable Rent – New Tenants criteria, we noted the following: 2 of 24 files had rent determinations processed after their effective date.
Cause: The Authority does not have controls in place to ensure it is meeting Reasonable Rent – New Tenants requirements set by HUD.
Effect: The Authority is not in compliance with their administrative plan regarding Reasonable Rent – New Tenants requirements.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing. Reasonable Rent – New Tenants requirements.
Views of responsible officials: There is no disagreement with the audit finding.