Finding Text
Federal Program U.S. Department of Housing and Urban Development AL #14.871 and 14.879 – 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 9 failed inspections and noted two failed inspections with life-threatening deficiencies that were identified and reported to respective landlords and tenants were not corrected within the required 24 hours and HAP was not abated. Questioned Costs None. Context We reviewed a sample of 9 of the Authority’s 82 failed inspections during 2024 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 Yes 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.