Finding Text
2024 -001 – SPECIAL TESTS AND PROVISIONS – HQS ENFORCEMENT Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871 – Housing Voucher Cluster CRITERIA The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). (24 CFR 982.404 (a) (3)) A PHA may withhold assistance payments for units that have HQS deficiencies once the PHA has notified the owner in writing of the deficiencies. The PHA must identify in its Administrative Plan the conditions under which it will withhold HAP. If the unit is brought into compliance during the applicable cure period (within 24 hours of notification for life- threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies), …The PHA must abate the HAP, including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life- threatening deficiencies).(24 CFR 982.404 (d)) CONDITION We selected a sample of 40 failed HQS inspections during the year. In 31 out of the 40 failed HQS inspections, the PHA re-inspection did not occur within 30 days. In 2 of the 40, we were not provided with documentation showing the unit passed HQS. CAUSE Procedures were not in place to properly document the corrections of deficiencies and abate the housing assistance payments when necessary. EFFECT The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards or failed to properly abate HAP in cases where HQS deficiencies were not corrected in a timely manner. QUESTIONED COSTS None Identified. CONTEXT There were 416 failed HQS inspections for the Housing Choice Voucher Program during 2024. We selected a sample of 40 failed HQS inspections. This was not a statistically valid sample. REPEAT FINDING Repeated from finding 2023-002. RECOMMENDATION We recommend that procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.