Finding 969779 (2023-002)

SIGNIFICANT DEFICIENCY U.S. Department of Health and Human Services 2023-002: Section 8 Housing Choice Voucher Program – CFDA 14.871 Grant period – year ended September 30, 2023 Condition: The Organization did not maintain documentation on file that a redetermination of reasonable rent was completed prior to the contract anniversary. We noted the rent was reasonable, however, there was no documentation of the Organization testing rent reasonableness in seven different tenant files. Criteria: The Organization 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 housing assistance payment contract). 24 CFR 982.507. Cause: The Organization failed to maintain documentation in the tenant file. Effect: There is potential of renewing rent to owner agreements in excess of Fair Market Rent. Recommendation: Management should document the redetermination of rent reasonableness in accordance with 24 CFR 982.507. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will properly document reasonable rent going forward.