Finding 1103484 (2024-001)

Program Name Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-001 Housing Quality Standards Inspection/HQS Enforcement Criteria "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)." Condition During the audit, we noted multiple life threatening HQS deficiencies not reinspected withing 24 hours after the failed inspection. Context We selected a sample of 14 failed inspections that occurred during the fiscal year. Out of the 14 samples selected, 3 failed inspections were considered life threatening based on the PHA's admin plan. Of those 3, none were followed up within the 24 hour inspection period. Cause The PHA staff did not understand the compliance requirements relating to life threatening items. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties. Recommendations We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to these grants as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views Management agrees, see Corrective Action Plan.