Audit 22453

1. Annual Income Verification Finding Number: 2022-001 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers and AL #14.879 Mainstream Voucher Program Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirements: Section E - Eligibility, Section L -Reporting, and Section N ? Housing Assistance Payments Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 24 CFR section 982.516(a) states the Public Housing Authority (PHA) must conduct a reexamination 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 used a check amount instead of third-party verification of account balances for 5.9 percent of the tenant files tested for the Housing Choice Voucher program. This resulted in the data reported on HUD-50058 to be inaccurate. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation to meet the requirements of income verification and housing assistance payments reporting.

2. Inspections Finding Number: 2022-002 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers / AL #14.879 Mainstream Voucher Program Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirements: Section N ? Housing Quality Standards Enforcement Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 24 CFR section 982.158(d) provides that the Public Housing Authority (PHA) must prepare a unit inspection report. Further, 24 CFR section 982.405(a) provides that the PHA must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS. Further, 24 CFR Section 982.404(a)(3) provides that the PHA must not make any housing assistance payments for a dwelling unit that fails to meet the housing quality standards, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). The Authority failed to take the appropriate response to a failure under the owner's responsibility with either a letter of abatement or cancelled contract, or to a failure under the tenant's responsibility by enforcing the tenant's obligations for 37.5% of failed inspections tested when documentation showed that correction for the failed housing quality standards inspection was not made within 30 days. The Executive Director and Housing Choice Occupancy Specialist should ensure all tenant files maintain the appropriate documentation and meet the requirements for inspections. Further, any failures of inspections should result in Authority reactions in line with federal requirements.

1. Annual Income Verification Finding Number: 2022-001 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers and AL #14.879 Mainstream Voucher Program Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirements: Section E - Eligibility, Section L -Reporting, and Section N ? Housing Assistance Payments Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 24 CFR section 982.516(a) states the Public Housing Authority (PHA) must conduct a reexamination 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 used a check amount instead of third-party verification of account balances for 5.9 percent of the tenant files tested for the Housing Choice Voucher program. This resulted in the data reported on HUD-50058 to be inaccurate. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation to meet the requirements of income verification and housing assistance payments reporting.

2. Inspections Finding Number: 2022-002 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers / AL #14.879 Mainstream Voucher Program Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirements: Section N ? Housing Quality Standards Enforcement Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 24 CFR section 982.158(d) provides that the Public Housing Authority (PHA) must prepare a unit inspection report. Further, 24 CFR section 982.405(a) provides that the PHA must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS. Further, 24 CFR Section 982.404(a)(3) provides that the PHA must not make any housing assistance payments for a dwelling unit that fails to meet the housing quality standards, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). The Authority failed to take the appropriate response to a failure under the owner's responsibility with either a letter of abatement or cancelled contract, or to a failure under the tenant's responsibility by enforcing the tenant's obligations for 37.5% of failed inspections tested when documentation showed that correction for the failed housing quality standards inspection was not made within 30 days. The Executive Director and Housing Choice Occupancy Specialist should ensure all tenant files maintain the appropriate documentation and meet the requirements for inspections. Further, any failures of inspections should result in Authority reactions in line with federal requirements.