Audit 367657

2024-001 – Special Tests & Provisions – HQS Enforcement Housing Voucher Cluster – AL# 14.871, 14.879 Material Weakness and Material Noncompliance Statement of Condition and Criteria Audit procedures noted instances of ineffective enforcement procedures related to failed HQS Inspections. PHA’s must require owners to cure HQS deficiencies within the required correction period or otherwise abate HAPs beginning no later than the first of the month following the correction period and no retroactive payments are to be made for the abatement period. Cause The Authority’s procedures require withholding of housing assistance during HQS enforcement, however, no actual abatement occurs as landlords were given retroactive payments upon receipt of a passed inspection. Effect or Potential Effect Potential overpayment of housing assistance due to failure to implement abatement procedures. Questioned Costs Not determined. Context A sample of 41 files were selected to audit failed HQS inspections including 21 explicitly for failed HQS Inspections from a population of 550. The test found 10 files with some form of HQS inspection documentation issue. Our sample was not a statistically valid sample. Recommendation We recommend the Authority update and communicate to landlords its HQS enforcement policy for initiating abatements in accordance with the HCV administrative plan. In addition, the Authority should establish a formal process to document inspections extensions provided. Management’s Response Management agrees with finding, see Corrective Action Plan for plan of action.

2024-001 – Special Tests & Provisions – HQS Enforcement Housing Voucher Cluster – AL# 14.871, 14.879 Material Weakness and Material Noncompliance Statement of Condition and Criteria Audit procedures noted instances of ineffective enforcement procedures related to failed HQS Inspections. PHA’s must require owners to cure HQS deficiencies within the required correction period or otherwise abate HAPs beginning no later than the first of the month following the correction period and no retroactive payments are to be made for the abatement period. Cause The Authority’s procedures require withholding of housing assistance during HQS enforcement, however, no actual abatement occurs as landlords were given retroactive payments upon receipt of a passed inspection. Effect or Potential Effect Potential overpayment of housing assistance due to failure to implement abatement procedures. Questioned Costs Not determined. Context A sample of 41 files were selected to audit failed HQS inspections including 21 explicitly for failed HQS Inspections from a population of 550. The test found 10 files with some form of HQS inspection documentation issue. Our sample was not a statistically valid sample. Recommendation We recommend the Authority update and communicate to landlords its HQS enforcement policy for initiating abatements in accordance with the HCV administrative plan. In addition, the Authority should establish a formal process to document inspections extensions provided. Management’s Response Management agrees with finding, see Corrective Action Plan for plan of action.