Finding 1074407 (2023-002)

2023-002 – SPECIAL TESTS AND PROVISIONS – HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (3)) CONDITION Reinspection, follow up and/or abatement documentation was missing for 5 out of 25 initial failed inspections. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards. QUESTIONED COSTS None identified. CONTEXT There were 180 failed HQS inspections for the Housing Choice Voucher Program during 2023. We selected a sample of 25 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from Finding 2022-002. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.