Audit 414237

Federal Agency: US. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year. HCVP 2025 Award Period: January 2025 through December 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: HUD regulations require housing units assisted under the Housing Choice Voucher Program to receive an HQS inspection at least once every two years unless an alternative inspection standard specifically authorized by HUD is utilized. Housing authorities are responsible for ensuring timely inspections are performed and maintaining documentation to support compliance. Condition: During testing of 40 participant files, we noted 4 instances in which the required HQS inspection was not completed within the required two-year inspection cycle. The delays ranged beyond the biennial inspection deadline. In each instance, the Authority continued to rely on landlord self-inspection certifications that had previously been permitted under temporary HUD inspection flexibilities rather than obtaining and documenting a timely Authority-performed or otherwise allowable inspection. Context: Four of 40 files tested (10%) contained HQS inspections that exceeded the required two-year inspection frequency. Cause: Management did not establish adequate monitoring controls to ensure units subject to the Housing Choice Voucher Program received timely biennial HQS inspections following the expiration or limitation of temporary alternative inspection procedures. As a result, landlord self-certifications were relied upon after a physical inspection should have been completed. Effect: The Authority did not comply with HUD inspection requirements. Failure to perform timely HQS inspections increases the risk that assisted units may not meet minimum housing quality standards and that housing assistance payments may be made for units with unidentified deficiencies. Repeat Finding: No Recommendation: We recommend the Authority strengthen its monitoring procedures over inspection scheduling and completion to ensure all units receive required HQS inspections within the applicable two-year cycle. Management should implement periodic supervisory reviews of inspection tracking reports and discontinue reliance on landlord self-certifications except where explicitly permitted by current HUD guidance. Views of Responsible Officials: Management concurs with the finding. The Authority has begun reviewing all units approaching inspection due dates and will implement enhanced tracking and supervisory review procedures to ensure compliance with HUD biennial inspection requirements. Landlord self-certifications will no longer be used except where specifically authorized by HUD guidance.