Finding 1123541 (2024-004)

2024-004 – HCV Administrative Plan / Waiting List Procedures / Utility Allowance Schedule – Significant Deficiency and Compliance Finding U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Vouchers N1. Selection from Waiting List / N3. Utility Allowance Schedule Condition: During review of the Housing Choice Voucher program, RBT noted that the Authority does not have a Housing Choice Voucher program Administrative Plan in place to outline policies and procedures for waiting list selection and updating utility category rates annually. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, including 24 CFR Section 982.54, which requires PHAs to adopt a written Administrative Plan, and 24 CFR Section 982.517, which requires PHAs to maintain a Utility Allowance Schedule. Cause: The Authority does not have a policy in place to select HCV participants from the waitlist in accordance with its Wait List and Admissions and Special Admissions policies outlined in the Administrative Plan. Staff is unfamiliar with waitlist preferences and policies. The Authority also does not have a policy in place to conduct an annual review to confirm that individual (category) utility rates have not changed 10% or more since the last utility allowance update or to revise the allowance if a change of 10% or more has occurred. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: One of one tenants admitted to the HCV program selected for testing was not in compliance based on a lack of Administrative Plan in place to ensure waiting list selection procedures were followed. Forty of the forty tenant files selected for testing were not in compliance based on the lack of a policy in place to conduct an annual review to confirm utility rates have not changed 10% or more. Repeat finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a Housing Choice Voucher program Administrative Plan to outline the policies and procedures of the program requirements including, but not limited to, waiting list selection procedures and utility allowance annual reviews. Auditee’s Response: See corrective action plan.