Finding Text
Finding: 2024‐004
U.S. Department of Housing & Urban Development
Program Name: Housing Voucher Cluster
AL Number: 14.871
Material Non‐Compliance
Material Weakness, Special Tests and Provisions
Criteria: In accordance with 24 CFR sections 982.158(d) and 982.404, units under housing assistance payment (HAP) contract that fail to meet Housing Quality Standards (HQS), the Public Housing Agencies (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 HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract.
Condition: The City did not follow procedures to ensure that the HQS were corrected or subsequent procedures to stop HAP were not enforced.
Context: Of the 16 failed inspections valued at $35,151 during the current year, we examined 4 valued at $8,104 and determined that 1 (25% valued at $5,649) failed inspections was not corrected and the HAP were not stopped timely.
Effect: Owner could receive benefits for which they are not eligible.
Cause: Lack of proper internal control over HQS enforcement.
Questioned Cost: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Likely questioned costs do not exceed $25,000.
Recommendation: Management should implement controls to ensure that HQS enforcement procedures are followed timely.
Views of Responsible Officials and Planned Corrective Actions: The City agrees with this finding. Please refer to the Corrective Action Plan section of this report.