Finding Text
Public Housing Program – Assistance Listing No. 14.850a; Grant Period - Fiscal year ended March 31, 2025 Criteria The Code of Federal Regulations (CFR’s) and HUD PIH Notices and Handbooks provide requirements and guidance for which the Public Housing Program is to be administered and operated under. Condition and Perspective During April of 2024, HUD conducted a Comprehensive Compliance Monitoring Review of the Authority’s Public Housing Program. The Review Report dated June 24, 2024, included the following Review Findings: Finding 5: The Housing Authority should prepare independent cost estimates prior to all procurement actions. The Housing Authority did not provide independent cost estimates for any procurement. An independent cost estimate serves as an index for evaluating the reasonableness of the proposed costs or prices. Finding 6: The HUD Procurement Handbook states that contracts should not exceed five years, including options for renewal or extension. The legal service contract was awarded to Massey, Stotser, & Nichols, PC was signed and dated November 2011 for the duration of October 1, 2011, through September 30, 2013. In the contract there is an Extension Clause that states, “Fairfield Alabama Housing Authority may extend or modify a contract the body of the contract for ninety (90) days or longer.” In the procurement file, the contract has been extended every two years with the last extension dated February 13, 2024, extended to September 30, 2025. Finding 10: A PHA may expend up to $100,000 in public housing program funds on pre-development conversion costs per project without HUD approval. The Housing Authority has spent $203,937.34 for RAD pre-development expenses with BGC Advantage. No prior approval was received by HUD for the Housing Authority to exceed $100,000. Finding 11: A PHA must provide information and promptly advise tenants of required notifications in accordance with PHA actions for RAD. The Housing Authority has not provided the Field Office with Rental Assistance Demonstration (RAD) related information; updated RAD resources; or updated IMS/PIC with requested information from the Field Office letter dated February 20, 2024. Finding 14: The Housing Authority’s pet policy is not in accordance with updated federal policy. Finding 15: Each PHA must complete a comprehensive physical needs assessment every five years. The Housing Authority has not completed a Physical Needs Assessment. Finding 16: Fiscal closeout includes the submission of a cost certificate; an audit, if applicable; a final Performance and Evaluation Report; and HUD approval of the cost certificate. The Housing Authority is showing 99% obligated in LOCCs however there is no 2022 Five-Year Action Plan and 2022 Annual Statement in EPIC. Finding 17: To ensure that all residents live in safe, habitable dwellings, the items and components located inside the building, outside the building, and within the units of HUD housing must be functionally adequate, operable, and free of health and safety hazards. The Housing Authority did not address all health and safety deficiencies from the last inspection held in 2022. All health and safety deficiencies must be addressed within 24 hours of receipt of the inspection report. The Field Office went onsite on June 29, 2023, to provide technical assistance in reviewing work orders and compliance documentation. Finding 19: The Violence Against Women Act (VAWA) requires PHA’s to have policies and procedures for the implementation and processing. The Housing Authority does not have a VAWA policy. The Housing Authority’s ACOP states it will comply with VAWA laws. Finding 20: The Violence Against Women Act (VAWA) requires PHA’s to have policies and procedures for the implementation and processing. The Housing Authority’s Public Housing Dwelling Lease dated December 2017 does not include required VAWA bifurcation language or the VAWA housing protections, as amended for victims. Additionally, the Housing Authority tenant files did not contain form HUD-91067, Lease Addendum. Finding 21: The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent. The Housing Authority is not in compliance with the new Section 3 regulation of 24 §CFR 75. Cause Failure to maintain updated policies and execute various controls over federal requirements of the Public Housing Program. Effect Noncompliance with certain requirements of the Program. Questioned Costs – None noted Recommendation The Authority has responded to HUD’s Review Findings with specific corrective actions it has implemented and is in the process of implementing. We recommend that the Authority continue implementing the remainder of its corrective actions outlined in its response communicated to HUD. Reply Management has issued a formal response to HUD’s Findings dated August 12, 2024, outlining specific corrective actions and considers the corrective actions satisfactorily implemented as of the date of this Report. The Authority’s Executive Director has assumed the responsibility of continued execution of the corrective actions.