Finding Text
Criteria or specific requirement: (1) The PHA must inspect the unit leased to a family at least biennially 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 sections 982.158(d) and 982.405(b)). However, NSPIRE for HCV and PBV programs, referred to as NSPIRE-V during HUD’s demonstration, was effective October 1, 2023, and replaced Housing Quality Standards (HQS), as previously defined in 24 CFR 982.401, as the inspection standards for these programs. As announced in the Federal Register, “Economic Growth Regulatory Relief and Consumer Protection Act: Implementation of National Standards for the Physical Inspection of Real Estate (NSPIRE); Extension of NSPIRE Compliance Date for HCV Programs,” HUD extended the compliance date for HCV and PBV programs until October 1, 2024. This applies to all Public Housing Agencies (PHAs), including Moving-to-Work (MTW) PHAs, administering Section 8 Housing Choice Voucher programs.
(2) According to the Authority’s inspection procedures, inspection team initials and dates the comment box within the Yardi system when inspection is completed.
Condition: The Authority did not have adequate internal controls designed to ensure that NSPIRE inspections were completed in accordance with compliance requirements.
Questioned costs: None
Context: During the testing of the HCV inspections, certain special provision compliance and internal control deficiencies were noted in 5 of 40 files:
(1) 3 out of 40 sampled inspections were not completed within the allotted time frame (bi- and tri-ennially, per HCV Administrative plan). These three did not overlap with the one issue noted below.
(2) 1 of 40 sampled inspections did not show evidence of inspector signoff -- one was missing entirely. This did not overlap with the three issues noted above.
Cause: Lots of turnover in the inspections department during the fiscal year. The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as its internal inspection procedures.
Effect: The Authority is not in compliance with federal regulations regarding housing quality standards and completing reinspections in a timely manner that aligns with its administrative plan. The Authority is not following its internal inspection procedures.
Recommendation: We recommend that the Authority review the controls in place to ensure that the inspections team can complete the reinspections in a timely manner and are knowledgeable of all internal procedures in place over inspections.
Views of responsible officials: There is no disagreement with the audit finding.