Finding 1062591 (2023-002)

Finding 2023-002 – Housing Choice Voucher Program – Internal Control over Waiting List – Noncompliance and Significant Deficiency Housing Choice Voucher Program - ALN #14.871 Condition & Cause: We reviewed the waitlists and selection documentation for a sample of newly leased tenants from the Housing Choice Voucher program. This review included tenant-based and project-based assistance. One (1) of the five (5) new admissions reviewed from the Project-Based Assistance waiting list was a targeted selection for elderly applicants aged 62 or older. We noted that the Agency did not conduct this selection according to their Admin Plan, which states “the first qualified applicant in sequence on the HCVP Project-Based Assistance Program waiting list will be made an offer of project-based assistance.” We sampled one hundred forty-nine (149) applicants who were in a higher rank on the waiting list than the new admission we selected for review. Of these, we noted twenty-nine (29) applicants, or 19%, who met the target criteria and were not selected for assistance. We reviewed the current procedures for selecting targeted applicants and found this process to be manual, burdensome, and prone to human error. However, at the time of the audit, the Agency was already working on a solution with their housing management software to automate this process. Criteria: The Code of Federal Regulations and the Housing Authority’s Admin Plan Effect: Failure to properly select and document the treatment of applicants from the waiting list can result in housing the wrong family as vouchers become available. This could result in a violation of the Fair Housing Act and other federal requirements. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We recommend that the Agency more closely adhere to the Admin Plan and Code of Federal Regulations regarding selections from the waitlist. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.