Finding 1104614 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-14

AI Summary

  • Core Issue: The PHA failed to conduct proper re-inspections for 10 out of 40 sampled units, leading to noncompliance with Housing Quality Standards (HQS).
  • Impacted Requirements: The PHA did not enforce voucher abatement steps for units that did not meet HQS, risking federal compliance and financial penalties.
  • Recommended Follow-Up: The Authority should enhance oversight of HQS inspections and enforce rent abatements to ensure compliance with federal regulations.

Finding Text

2024-002 Description 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, a sample of 40 HQS failed inspections were reviewed for MTW, and 11 HQS failed inspections were reviewed for the Housing Choice Voucher/Mainstream program. Of these reviewed inspections, 5 of the MTW and 5 of the HCV/Mainstream were not properly re-inspected, and no voucher abatement steps were taken to enforce compliance. Context situation the condition or situation that exists that gives rise to the audit finding. describes the work performed that resulted in the finding and provides sufficient information for judging the prevalence and consequences of the finding, such as the relation to the population or universe of costs or the number of cases examined as well as quantification of audit findings in dollars. Cause Controls over compliance associated with HQS inspections are inadequate. Effect The absence of voucher abatement steps and the failure to enforce compliance through potential voucher loss may result in noncompliance with federal program requirements and potential financial implications Recommendations We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management Views Management Agrees

Categories

HUD Housing Programs

Other Findings in this Audit

  • 528171 2024-002
    Significant Deficiency Repeat
  • 528172 2024-002
    Significant Deficiency Repeat
  • 528173 2024-002
    Significant Deficiency Repeat
  • 1104613 2024-002
    Significant Deficiency Repeat
  • 1104615 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $38.56M
14.267 Continuum of Care Program $5.08M
14.871 Section 8 Housing Choice Vouchers $2.83M
10.415 Rural Rental Housing Loans $2.42M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.05M
14.879 Mainstream Vouchers $520,776
10.427 Rural Rental Assistance Payments $509,779
14.241 Housing Opportunities for Persons with Aids $354,090
14.896 Family Self-Sufficiency Program $298,304
93.917 Hiv Care Formula Grants $183,181
14.870 Resident Opportunity and Supportive Services - Service Coordinators $102,083