Finding 1097183 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-30

AI Summary

  • Core Issue: The PHA failed to conduct timely inspections and enforce rent abatements for units not meeting Housing Quality Standards (HQS).
  • Impacted Requirements: Non-compliance with federal regulations regarding unit inspections and correction timelines could lead to penalties.
  • Recommended Follow-Up: Ensure proper oversight of compliance and enforce rent abatements as needed to meet federal requirements.

Finding Text

The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, 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 correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family‐caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). During our audit, we identified four (4) failed HQS that did not receive a pass for several months and no rent abatement process was started or enforced during that time period. The HQS population was 135 failed inspection. We selected a sample of 25 inspection and identified of those 25 reviewed 4 did not obtain a re-inspection pass within the Criteria noted above and no rent abatement process was enforce on landlord. The Authority contracted out inspection services at the beginning of the year. The contractor did not fulfill contract and stop services mid year. The Authority hired a new staff toward the end of the year. The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees with the finding, see Management's Corrective Action Plan.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 520741 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.37M
14.267 Continuum of Care Program $1.04M
14.231 Emergency Solutions Grant Program $647,782
14.241 Housing Opportunities for Persons with Aids $378,774
14.872 Public Housing Capital Fund $178,829
14.896 Family Self-Sufficiency Program $143,066