Finding 1169013 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-14

AI Summary

  • Core Issue: Two units failed HQS inspections and did not receive timely re-inspections, leading to a lack of necessary HAP abatement or voucher cancellation.
  • Impacted Requirements: Compliance with HUD's Housing Quality Standards is essential; failure to enforce these standards risks tenant safety and misuse of federal funds.
  • Recommended Follow-Up: Strengthen monitoring procedures, enhance staff training on compliance, and implement regular audits to ensure adherence to HQS requirements.

Finding Text

Criteria HUD requires that all units under the MTW 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. Condition During the audit, it was noted that in two (2) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection within required time frame. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Context This finding represents a potentially systemic issue within the MTW program, as it was identified in two (2) files tested out of a sample of three (3) cases. It highlights a need for more rigorous enforcement and monitoring of HQS compliance. Cause The non-compliance appears to stem from oversight or procedural lapses in the enforcement of HQS within the MTW program. This may be due to inadequate training, monitoring, or failure to adhere to established protocols. Effect This non-compliance undermines the integrity of the MTW 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. Recommendations 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

Corrective Action Plan

HACP has implemented the following corrective actions: Continued oversight of two current inspectors to ensure compliance with HQS and federal regulations; Retention of a Compliance Coordinator to oversee inspection processes and documentation; implementation of improved documentation standards related to inspections, re-inspections, and abatements; Regular file audits conducted by the ED or Deputy Director to verify timely rescheduling and enforcement of rent abatements.

Categories

HUD Housing Programs Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $4.88M
14.879 MAINSTREAM VOUCHERS $180,720
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $106,239
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $88,983