Finding 1170224 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-21
Audit: 383207

AI Summary

  • Core Issue: Seven units failed Housing Quality Standards (HQS) inspections but did not receive timely re-inspections, leading to no necessary actions like HAP abatement or voucher cancellation.
  • Impacted Requirements: Compliance with HUD's HQS is essential; failure to enforce these standards risks tenant safety and proper use of federal funds.
  • Recommended Follow-Up: Strengthen monitoring procedures, enhance staff training on compliance, and implement regular audits to ensure adherence to HQS protocols.

Finding Text

Criteria HUD requires that all units under the Housing Choice Vouchers 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 seven (7) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection or no inspection was documented. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Context This finding represents a issue within the Housing Voucher Cluster program, as it was identified in seven (7) files tested out of a sample of twenty-five (25) 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 Housing Voucher Cluster 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 Housing Choice Vouchers 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. Questioned Costs Not able to be determined Management Views Management agrees with the finding, see Management's corrective action plan.

Corrective Action Plan

Condition and Context: HUD requires that all units under the Housing Choice Vouchers 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. During the audit, it was noted that in seven (7) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection or no inspection was documented. Consequently, the required abatement of HAP or cancellation of the housing voucher was not executed. Recommendation: The Auditors recommended to 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. Plan for Corrective Action: Management is establishing an internal procedure to conduct monthly reviews of HQS inspection requirements to ensure all mandated inspections are completed promptly and in compliance with program standards. Actions Taken: KHA has scheduled all pending re-inspections and is actively working to complete any remaining ones.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1170223 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $9.51M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $803,647
14.850 PUBLIC HOUSING OPERATING FUND $722,754
14.872 PUBLIC HOUSING CAPITAL FUND $565,476
14.879 MAINSTREAM VOUCHERS $438,969
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $400,000
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $80,505