Finding 1136232 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-05-07

AI Summary

  • Core Issue: The PHA failed to conduct required bi-annual inspections and did not enforce compliance for units that failed Housing Quality Standards (HQS).
  • Impacted Requirements: Lack of documentation for inspections and failure to initiate rent abatement for 17 units with unresolved HQS deficiencies.
  • Recommended Follow-Up: Ensure proper oversight of inspection compliance and enforce rent abatements to meet federal requirements, as outlined in the Corrective Action Plan.

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 two (2) individuals who did not have support for a the bi-annual inspection. Additionally, we identified Seventeen (17) failed HQS that did not receive a passing inspection within the alloted time frame and no rent abatement process was started or enforced during that time period. During the audit, a sample of 40 tenant files were reviewed for the Housing Choice Voucher/Mainstream program. Of these reviewed inspections, 2 of the HCV/Mainstream tenants did not have documentation for a bi-annual inspection. During the audit, a sample of 40 HQS failed inspections were reviewed for the Housing Choice Voucher/Mainstream program. Of these reviewed inspections, 17 of the HCV/Mainstream were not properly re-inspected, and no voucher abatement steps were taken to enforce compliance. Controls over compliance associated with HQS inspections are inadequate. 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. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees, see Corrective Action Plan.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 559789 2024-001
    Significant Deficiency Repeat
  • 559790 2024-001
    Significant Deficiency Repeat
  • 1136231 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $26.87M
14.872 Public Housing Capital Fund $3.53M
14.850 Public Housing Operating Fund $1.78M
14.879 Mainstream Vouchers $79,622
14.896 Family Self-Sufficiency Program $54,400
14.238 Shelter Plus Care $43,983