Finding Text
Criteria or specific requirement: (1) 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).
(2) According to the HCV Administrative Plan, "The owner and the family will be notified in writing of the results of failed inspections. When an inspection identifies HQS failures, the PHA will determine (1) whether or not the failure is a life-threatening condition and (2) whether the family or owner is responsible. The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, urgent conditions are not corrected within 72 hours and non-life-threatening conditions are not corrected within the specified time frame, the owner’s HAP will be abated in accordance with PHA policy. Likewise, in the case of family caused deficiencies the notice will inform the family that if corrections are not made within the specified time frame, the family’s assistance will be terminated in accordance with PHA policy."
Condition: The Authority did not have adequate internal controls designed to ensure that failed inspections were completed in accordance with compliance requirements.
Questioned costs: $57,215
Context: During the testing of the HCV tenant files, certain special provision compliance deficiencies were noted in 14 of 40 files:
(1)(a) 9 out of 40 sampled inspections were not properly abated.
(b) 10 out of 40 files did not show evidence of timely repairs after inspection/reinspection.
(2) 10 out of 40 files did not show evidence of any communication to the tenant or landlord regarding failed inspection results.
Cause: The Authority faced high turnover rates in the case management department, causing a lot of issues to go unaddressed.
Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards.
Recommendation: We recommend management designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections.
Views of responsible officials: There is no disagreement with the audit finding.