Finding 1165777 (2023-003)

Housing Quality Standards– HOME Investment Partnerships Program ALN 14.239 U.S. Department of Housing and Urban Development Criteria: Per 24 CFR §92.504(d), participating jurisdictions must monitor HOME-assisted properties to ensure compliance with HUD property standards throughout the affordability period. Inspections of HOME-assisted rental units must occur initially within 12 months of project completion and at least every three years during the affordability period. Condition: The City did not perform required property inspections within the prescribed timeframe. Scheduled inspections during 2023 were not completed as required by 24 CFR §92.504(d). Context: Our review of the City’s Consolidated Annual Performance and Evaluation Report and inspection records indicated that inspections scheduled for 2023 were missed due to staffing shortages following personnel transitions. Cause: Inadequate internal controls over inspection scheduling and insufficient staffing resources. Effect: Failure to perform inspections increases the risk that properties may not meet HUD standards, potentially resulting in unsafe living conditions, noncompliance with federal requirements, and exposure to HUD findings or repayment of funds. Repeat Finding: No. Recommendation: We recommend the City implement a tracking system for inspection due dates, assign responsibility for monitoring compliance, conduct overdue inspections immediately, and update policies to address staff turnover contingencies. Management’s Response: See management’s response in City’s Corrective Action Plan.