Audit 405385

Federal Program U.S. Department of Housing and Urban Development AL #14.871 & 14.879 – Significant Deficiency Grant Award No. MN192-Housing Choice Voucher & MN192-Mainstream Voucher Federal Award Year 2025 Criteria The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). For units under HAP contract that fail to meet HQS, the 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. Condition Through a series of samples, it was noted that a bi-annual inspection was not performed on one tested file. We also noted 2 separate instances in which life-threatening deficiencies did not contain documentation noting they were corrected within the 24-hour requirement period, and an additional instance in which other deficiencies did not contain documentation as to the timing of corrective action. Questioned Costs None Context We tested HQS Enforcement compliance requirements on 23 of the Authority’s 229 tenant files and noted that a bi-annual inspection did not occur in one of the files. In a separate sample over failed inspections, in which 4 of 40 failed inspections were reviewed, we noted 2 contained life-threatening failures that did not contain documentation to support appropriate follow up and correction within 24 hours. Across both samples, there were also instances in which supporting documentation lacked notations of timing to indicate when re-inspections and corrective action took place. Effect Tenants may be living in units that do not meet Housing Quality Standards. Cause Lack of controls and oversight during the year. Repeat Finding Repeat finding of 2024-006. Recommendation We recommend the Authority review their procedures for performing and documenting HQS inspections and follow-up on fails to ensure Housing Quality Standards are met. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.