Finding Text
2023-003 - HQS Failed Inspections
Federal Program: Housing Choice Voucher Program
FALN: 14.871/14.879
Federal Award Identification Nuber and Year: MD023,2023
Award Period: 1/1/2023 - 12/31/2023
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion)
Criteria or specific requirement: 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. 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 incorrect period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404).
Condition: The Commission did not properly enforce consequences to landlords or tenants of units that did not pass inspections in a timely manner.
Questioned costs: Unknown
Context: During our testing of 40 files for HQS enforcement, we noted the following:
- 27 of 40 units tested failed inspection due to owner responsibilities and the Commission never abated HAP.
- 2 of 40 units tested failed due to tenant responsibilities and the Commission did not take proper steps to enforce family obligations.
Cause: HCHC employs a third-party inspection company. Many of the issues caused by the previous inspection company did not surface until early in 2023.
Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP paid.
Repeat finding: Yes, 2022-004
Recommendation: We recommend the Commission review their abatement procedures to ensure that for any unit that has not met the HQS standards that HAP is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants.
Views of responsible officials: There is no disagreement with the audit finding.