Finding 1115985 (2024-003)

-
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-28

AI Summary

  • Core Issue: Tenant files for the Housing Choice Voucher program are missing required documentation and do not comply with HUD regulations.
  • Impacted Requirements: Key forms like HUD Form 9886 and HUD Form 52517 were absent, and some units failed to meet Housing Quality Standards (HQS).
  • Recommended Follow-Up: Implement a checklist-based filing system and conduct monthly reviews of tenant files to ensure compliance with federal guidelines.

Finding Text

Finding 2024 - 003 - Housing Choice Vouchers Tenant Files Housing Choice Vouchers - CFDA No. 14.871; Grant period - year ended June 30, 2024 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for maintaining the tenant files for the Public Housing and Housing Choice programs. Specifically, HUD regulations CFR Parts 982.305 and 982.405 require Authorities to inspect units leased under the HCV program at the time of initial leasing and at least annually thereafter to ensure the units meet HQS. In addition, 24 CFR Part 960.253 gives the requirements for choice of rent and use of utility allowances. Also, the Authority’s policy and procedure dictate full compliance with these regulations, as well as guidelines to be followed in maintaining these files. Condition & Perspective: A current year review of 40 tenant files revealed a situation of continued errors and omissions in most of the files that leads to incomplete tenant documentation. The results of the review are as follows: 1. Of the 40 tenant files reviewed, 2 did not contain a signed HUD Form 9886. 2. Of the 40 tenant files reviewed, 3 did not have a HUD Form 52517. 3. Of the 40 tenant files reviewed, 4 did had not complied with HQS guidelines. Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified Repeat Finding: No Recommendation: We recommend that the Authority utilize a standard filing system based upon a checklist and issue this to all required personnel. We recommend that supervisors and managers review on a monthly basis a random sample of all files to determine compliance with federal guidelines and the Authority’s policy. Management’s Response to Finding: The Authority will work on strengthening its internal controls to correct this situation and ensure that they will be in compliance with the federal guidelines and the Authority’s policies. Responsible Party: Matthew McClammey, Executive Director, (334)745-4171. Anticipated Completion Date: June 30, 2025.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $4.58M
14.871 Section 8 Housing Choice Vouchers $3.57M
17.274 Youthbuild $345,676