Finding Text
2024-002 Special Tests and Provisions – Selection from the Waiting List
Section 8 Housing Choice Vouchers Program – CFDA Number 14.871
Mainstream Vouchers – CFDA Number 14.879
Material Weakness in Internal Control and Material Noncompliance
This is a repeat finding of 2023-003 from March 31, 2023 (initially occurred as Finding 2022-004 from March 31, 2022)
Condition: 25 out of 250 new admissions were selected for testing. Exceptions were noted as follows:
• 15 new admissions where the selection from the waiting list was not in compliance with the Authority’s administrative plan. The administrative plan states that that the waiting list should be organized by preference point and then by date and time of application (first come first serve basis). However, the applicants tested were ranked randomly through a lottery. Due to this issue, there were many applicants that were not ranked properly on the waiting list and were thus not admitted in proper sequence into the Section 8 program.
• 4 new admissions where the Authority was unable to provide support that the applicants were properly selected from the waiting list (as the waiting list for the new admissions that were selected from was not retained).
• 1 new admission where the Authority did not sign the lease agreement and the unit address and rent amount on the lease agreement did not agree to the Form 50058.
• 1 new admission where the Authority could not provide the tenant’s voucher.
Criteria: The Authority must have written policies in its HCVP administrative plan for selecting applicants from the waiting list, and the Authority must show that the Authority has followed these policies when selecting applicants for admission from the waiting list. Also, according to 24 CFR 982.204(f), the Authority must use a single waiting list for admission to its Section 8 tenant-based assistance program.
Questioned Costs: None.
Effect: The Authority is not properly selecting applicants from the waiting list, and as a result, many applicants were not admitted to the Section 8 program on a first come first serve basis.
Cause: Established procedures to ensure compliance with HUD requirements were not being followed. Procedures were not being followed due to employee turnover and other barriers caused by the COVID-19 pandemic.
Recommendation: The Authority should correct the deficiencies and ensure staff is aware of acceptable procedures as outlined in the Authority’s Administrative plan. In addition, the Authority should review staffing levels, skill sets and case load. Furthermore, the Authority should utilize an ongoing quality control review process to ensure proper procedures are being followed.
Views of Responsible Officials of the Auditee: The Authority concurs with this finding and will implement review procedures and provide ongoing training to staff.