Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Program
Assistance Listing Number: 14.871/14.879
Federal Award Identification Number and Year: FL017 and 2022/2023
Award Period: 7/1/22-6/30/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or Specific Requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA 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: Of the tenant files provided, auditor noted the following item: One instance where the housing authority could not provide copy of reasonable rent report for a rent increase.
Questioned costs: N/A
Context: Out of 40 files, 1 file contained errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure that rent reasonableness is performed for rent increases
Repeat finding: No
Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed.
View of responsible officials: There is no disagreement with this audit finding.