Finding 1145819 (2024-001)

Criteria or specific requirement: The Housing Authority of Skagit County (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets HQS and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not perform HQS inspections in accordance with program compliance requirements. Questioned costs: $9,935. Context: A sample of 40 units found 3 units that were not inspected timely. The Authority did not perform the HQS inspections during the fiscal year. The samples were statistically valid. Cause: HQS inspections were not completed within the required timeframe for 3 units. Effect: The Authority is not in compliance with HQS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.