Finding 1141042 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-12
Audit: 358730
Organization: West Valley Housing Authority (OR)

AI Summary

  • Core Issue: The PHA failed to conduct timely inspections for units with life-threatening HQS deficiencies, violating federal regulations.
  • Impacted Requirements: The PHA must inspect units bi-annually and enforce corrections within 24 hours for life-threatening issues, or face penalties.
  • Recommended Follow-Up: Implement a robust compliance oversight system and improve documentation practices to ensure adherence to federal standards.

Finding Text

Program Name Housing Choice Vouhcer; Mainstream Voucher Internal Control Significant Deficiency N Special Test and Provisions ALN(S) Number 14.871;14.879 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 our audit, we identified three (3) failed HQS with Life Threatening issues based on the Agency's admin plan that did not receive a pass inspection within the required 24 hour time frame. Context The HQS population was 76 failed inspection. We selected a sample of 8 inspection and identified of those 8 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect The Authority is non‐compliant with the federal regulations over this federal program, this could potentially result in 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

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 564600 2024-001
    Significant Deficiency
  • 564601 2024-001
    Significant Deficiency
  • 1141043 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.53M
14.872 Public Housing Capital Fund $1.24M
14.850 Public Housing Operating Fund $1.02M
14.879 Mainstream Vouchers $178,882
14.896 Family Self-Sufficiency Program $56,944