Finding Text
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
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 (24 CFR sections 982.158(d) and
982.404).
Condition
We tested compliance with the Authority’s HQS Enforcement on 12 failed inspections and noted
one failed inspection was not followed-up on and HAP was not abated. During our testing of 40
tenant files, we also noted two instances of failed inspections that were not followed-up on and
HAP was not abated.
Questioned Costs
None.
Context
We reviewed a sample of 12 of the Authority’s 120 failed inspections during 2023 for HQS
Enforcement requirements.
Effect
HAP payments could be paid to a tenant where they should not be due to insufficient clearing of
HQS inspection deficiencies.
Cause
Lack of oversight and control procedures.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for tracking failed inspections to ensure
that all failed inspections are being followed-up and cleared within the required timeframe.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.