Finding 1166833 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-29

AI Summary

  • Core Issue: HAP payments were made after a unit failed inspection, leading to overpayment.
  • Impacted Requirements: Payments should be abated within 24 hours for life-threatening issues and 30 days for others.
  • Recommended Follow-Up: Strengthen procedures to ensure timely abatement of HAP payments and conduct regular management reviews for accuracy.

Finding Text

2025-005 Failed Inspections – Housing Assistance Payment (HAP) Made After Failed Inspection Condition: Payment was not abated upon failed inspection for non-life threatening condition. Additionally, one file out of a sample of six could not be located (see related finding 2025-003). Criteria: Unit inspections failing to meet Housing Quality Standards (HQS) not corrected with 24 hours for life threatening deficiencies or within 30 calendar days for all other deficiencies require abatement of HAP or termination of HAP contract. Context: One tenant’s payment was processed subsequent to the failed inspection. Effect: HAP payment processed in subsequent month resulting in overpayment. Recommendation: We recommend the Authority strengthen procedures to ensure HAP payments are properly abated upon failed inspection. Response: BPHA will implement procedures to ensure Housing Assistance Payments (HAP) are properly abated for units failing inspection. Failed inspection results will be documented and communicated to the appropriate staff prior to HAP processing. Periodic management reviews will be conducted to reconcile failed inspections to ensure abatements are timely, accurate, and properly documented.

Corrective Action Plan

BPHA will implement procedures to ensure Housing Assistance Payments (HAP) are properly abated for units failing inspection. Failed inspection results will be documented and communicated to the appropriate staff prior to HAP processing. Periodic management reviews will be conducted to reconcile failed inspections to ensure abatements are timely, accurate, and properly documented.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1166831 2025-003
    Material Weakness Repeat
  • 1166832 2025-004
    Material Weakness Repeat
  • 1166834 2025-006
    Material Weakness Repeat
  • 1166835 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $4.07M
14.879 MAINSTREAM VOUCHERS $511,638
14.850 PUBLIC HOUSING OPERATING FUND $247,510
14.872 PUBLIC HOUSING CAPITAL FUND $219,965