HCVP Housing Quality Standards and Enforcement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/24-6/30/25) Award Period: July 1, 2024 through June 30, 2025 Type of Finding: - Material Weakness in Internal Control over Compliance. - Material Noncompliance (Modified Opinion) Criteria: PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. (24 CFR sections 982.158(d) and 982.404). 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 testing, we noted the Commission did not have adequate internal controls designed to ensure that HQS requirements were being met. As a result, inspections were not completed timely or at all. Questioned Costs: $ 16,814 Context: Testing of 60 HCVP tenant files for failed inspection standards revealed the following in 4 files: - 2 files where abatement ought to have been implemented, but records could not be located. - 3 instances where the authority did not perform the second inspection within 30 days Testing of 60 HCVP tenant files for annual inspection standards revealed the following: - 25 instances where the annual inspection was not performed in a timely manner and the Commission failed to enforce the regulations. Cause: The Authority does not have controls in place to ensure it’s meeting HQS requirements set by HUD. Effect: The Commission is not in compliance with program requirements over HQS inspections. Repeat Finding: Yes. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences, that related inspections are performed on a timely basis, and ensure standards related to abatement of housing assistance payments are being followed. View of Responsible Officials: There is no disagreement with the audit finding.
PBRA/MOD Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195/14.856 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/24-6/30/25) Award Period: July 1, 2024 through June 30, 2025 Type of Finding: - Significant Deficiency in Internal Control over Compliance. - Other Matters Criteria: As a condition of admission or continue occupancy, PHA’s must determine eligibility of applicants by (a) obtaining signed applications that contain the information needed to determine eligibility (including designation as elderly, disabled, or homeless, if applicable), income, rent, and order of selection; (b) conducting verifications of family income and other pertinent information (such as assets, full time student and immigration status, and unusual medical expenses) through third parties; (c) documenting inspections and tenant certifications, as appropriate; and, (d) determining that tenant income did not exceed the maximum limit set by HUD for the PHA’s jurisdiction, as shown in HUD’s published notice transmitting the Limits for Low-Income and Very Low-Income Families Under the Housing Act of 1937. For the Mod Rehab SRO program, eligible individuals must be homeless upon entry into the program (24 CFR sections 880.603, 881.601, 882.514, 882.808, 833.701, 884.214, 886.119, and 886.318). Condition: During our testing, we noted the Commission did not consistently use internal controls to ensure that eligibility requirements were being met. Questioned Costs: $ 13,635 Context: Testing of 60 tenant files for eligibility revealed that 1 file had the following exception: - 1 file that was missing support needed to substantiate the asset total per HUD-50058/HUD-50059 Cause: The Commission does not have controls in place to ensure it is meeting eligibility requirements set by HUD. Effect: The Commission is not in compliance with program requirements over eligibility. Repeat Finding: Yes. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained during the recertification process for every client. View of Responsible Officials: There is no disagreement with the audit finding.
PBRA/MOD Housing Quality StandardsFederal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195/14.856 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/24 - 6/30/25) Award Period: July 1, 2024 through June 30, 2025 Type of Finding: - Material Weakness in Internal Control over Compliance. - Material Noncompliance (Modified Opinion) Criteria: PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).). Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure that inspection requirements were being met. As a result, inspections were not completed timely or at all. Questioned costs: $ 75,780 Context: Testing of 60 PBRA tenant files for annual inspection standards revealed the following exceptions: - 23 instances where tenant files were missing one or more inspections and when inspections were included, it was indeterminable whether they were within the regulatory period - 2 files were missing the Housing Specialist signoff on the inspection completed. Cause: The Commission does not have controls in place to ensure it is meeting HQS inspection requirements set by HUD. Effect: The Commission is not in compliance with program requirements over HQS inspections. Repeat Finding: Yes Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences and that related inspections are performed on a timely basis. View of Responsible Officials: There is no disagreement with the audit finding
PBRA/MOD – Vacant Units Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Project-Based Cluster Assistance Listing Number: 14.195/14.857 Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/24 - 6/30/25) Award Period: July 1, 2024 through June 30, 2025 Type of Finding: - Significant Deficiency in Internal Control over Compliance. - Other Matters Criteria: The PHA or owner must reduce claims for assistance on vacant units under certain circumstances. However, there are instances where special claims are allowed for vacancy losses, unpaid rent, and tenant damages on eligible units (24 CFR sections 880.611, 881.601, 882.411, 882.808(f), 883.701, 884.106, 886.109, and 886.309). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that vacancies were appropriately accounted for in HUD-52670 forms, and that HAP activity in the HAP registers correctly reflected the vacancies. Questioned Costs: $ 352 Context: Testing of 8 files resulted in exceptions in 1 file: - 1 case in which the HAP activity recorded to the HAP registers did not match with the timespan of the tenant vacancy observed in separate documentation. Cause: The Commission does not have internal controls in place to ensure it is meeting program requirements over vacant units. Effect: The Commission is not in compliance with program requirements over vacant units. Repeat Finding: Not a repeat finding. Recommendation: The Commission should implement processes to ensure that vacancies are appropriately accounted for in the HUD-52670's, within HAP registers, and other relevant records. View of Responsible Officials: There is no disagreement with the audit finding.