Finding 1160346 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-13

AI Summary

  • Core Issue: Seven units failed HQS inspections without timely re-inspections, leading to unaddressed compliance failures.
  • Impacted Requirements: HUD mandates timely re-inspections and necessary abatement of HAP or voucher cancellation for non-compliant units.
  • Recommended Follow-Up: Strengthen monitoring procedures, enhance staff training on compliance, and conduct regular audits to ensure adherence to HQS standards.

Finding Text

HQS Enforcement The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. HUD requires that all units under the Housing Choice Vouchers Program meet specific Housing Quality Standards (HQS). In cases of failed inspections, timely re-inspections are mandatory, and if compliance is not achieved, abatement of Housing Assistance Payments (HAP) or voucher cancellation is required. During the audit, it was noted that in seven (7) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection or no inspection was documented. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in seven (7) files tested out of a sample of eight (8) cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the Housing Voucher Cluster program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. This non-compliance undermines the integrity of the Housing Choice Vouchers Program and may lead to tenants living in substandard conditions. It also represents a risk of improper use of federal funds and can impact the credibility and effectiveness of the program. Implement more stringent procedures for monitoring HQS compliance, including timely reinspection and enforcement of HAP abatement or voucher cancellation. Enhance training for staff involved in the HQS process to ensure a thorough understanding of compliance requirements. Establish a system of regular audits to identify and rectify lapses in HQS enforcement promptly. The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive Corrective Action Plan.

Corrective Action Plan

The Housing Authority has corrected the procedural issues and does not anticipate this being a repeated finding in the future audits. The authority has employeed a full time inspector and is in the process of hiring an additional employee to serve as back up for this position

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1160347 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $11.04M
14.231 Emergency Solutions Grant Program $907,593
14.267 Continuum of Care Program $704,364
14.241 Housing Opportunities for Persons with Aids $440,087
14.896 Family Self-Sufficiency Program $128,893
14.872 Public Housing Capital Fund $99,581