DICKSON HOUSING AUTHORITY

2019-001 Rent Reasonable Documentation Federal Program: Housing Choice Voucher, CFDA No. 14.871 Criteria: The PHA?s administrative plan must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner. 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: During our review of Housing Choice Voucher (HCV) tenant files, we noted that rent reasonable documentation was not documented. Questioned costs: None Effect: Rent reasonableness was not documented which could lead to the payment of rent for properties that are in excess of market value. Cause: The PHA was relying on its staff?s knowledge of the rental market in the area to determine rent reasonable but documentation was not retained to support their conclusions. Recommendation: The PHA should begin following the documentation requirements from HUD regarding rent reasonableness. Views of responsible officials and planned corrective actions: We have obtained copies of the documentation guidelines and will begin documenting rent reasonableness.

2019-002 Housing Quality Standards Inspections Federal Program: Housing Choice Voucher, CFDA No. 14.871 Criteria: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During our review of Housing Choice Voucher (HCV) tenant files, we noted that quality control re-inspections were not being performed. Questioned costs: None Effect: While the units are inspected under the UPCS-V demonstration program. The PHA is required to conduct re-inspections of the units as part of their Quality Control Program. Cause: The PHA did not conduct the re-inspections but did not realize the requirement was applicable when participating in the UPCS-V demonstration program. Recommendation: The PHA should begin conducting the quality control re-inspections in accordance with HUD guidelines. Views of responsible officials and planned corrective actions: We will conduct the re-inspections and document our results in accordance with HUD guidelines.