Finding Text
Finding 2025-001 - Section 8 HQS Inspection Deficiencies, Significant Deficiency Moving To Work Demonstration Program - ALN No. 14.881; Grant period - year ended March 31, 2025 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for annual inspections to determine if the units leased to families meet the Housing Quality Standards. Specifically, HUD regulations CFR Parts 982.158 and 982.404 require inspections of 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. Condition: HQS inspections were tested for compliance in the current year. Of the 6 failed HQS inspections selected for review, 2 units were not re-inspected with the 30-day requirement and HAP payments were not properly abated. HQS inspections were not performed at an additional 2 units. Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: Not identified. Recommendation: We recommend that the Housing Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required timeframe to meet the HUD compliance requirements. Management's Response: The Housing Authority is working on improved procedures for annual inspections and failed inspections to ensure that annual inspections are performed and re-inspections are performed within the 30-day requirement. The Housing Authority has hired new staff for its Housing Choice Voucher Program and is planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements. Dannie Walker, Executive Director, has assumed the responsibility of ensuring that the inspections will be performed within the timeframe to meet the HUD compliance requirements and expects the deficiencies which led to this finding to be resolved by March 31, 2026.