Finding 1170654 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-26
Audit: 383877
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: The Commission failed to notify families and owners of failed inspections within the required fifteen days.
  • Impacted Requirements: This noncompliance with 24 CFR 982.305(2)(i) and 982.404 affects the timely correction of life-threatening Housing Quality Standards deficiencies.
  • Recommended Follow-up: Implement new procedures and hire additional support to ensure timely mailing of inspection letters and updates.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879, U.S. Department of Housing and Urban Development, Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Finding Type - Material noncompliance with laws and regulations Repeat Finding - No Criteria - Under 24 CFR 982.305(2)(i) and 982.404, the Commission must notify the family and owner of the inspection determination within fifteen days after the inspection takes place. The Commission also must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commissionapproved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was unable to send failed HQS inspection notices within the fifteen day requirement to participants who needed to correct deficiencies. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - A total of 40 inspections were tested, and the results are as follows: A total of 22 files had failed inspection where the letter to the owner was not sent within the fifteen day requirement, therefore participants could not correct deficiencies found before the 30 day required from the time of inspection was performed. Cause and Effect - Printer malfunctioning created delays in sending out the HQS fail letters and as a result participants were unable to correct the identified deficiencies within the required 30-day window. Recommendation - The Commission should establish procedures to ensure inspection letters are sent timely. Views of Responsible Officials and Corrective Action Plan - HCV will hire additional internal support for HQS inspections to work alongside external vendors and ensure timely updates/mailings/, and closeouts are uploaded to the work management system, Yardi.

Corrective Action Plan

Condition: The Commission was unable to send failed HQS inspection notices promptly to participants who needed to correct deficiencies. Planned Corrective Action: HCV will hire additional internal support for HQS inspections to work alongside external vendors and ensure timely updates/mailings/, and closeouts are uploaded to the work management system, Yardi. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 6/30/2026

Categories

Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1170652 2025-001
    Material Weakness Repeat
  • 1170653 2025-001
    Material Weakness Repeat
  • 1170655 2025-002
    Material Weakness Repeat
  • 1170656 2025-002
    Material Weakness Repeat
  • 1170657 2025-002
    Material Weakness Repeat
  • 1170658 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $53.18M
14.850 PUBLIC HOUSING OPERATING FUND $18.07M
14.872 PUBLIC HOUSING CAPITAL FUND $14.03M
14.871 COVID-19 - SECTION 8 HOUSING CHOICE VOUCHERS $1.30M
14.879 MAINSTREAM VOUCHERS $933,818
17.274 YOUTHBUILD $884,222
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $500,000
14.895 JOBS-PLUS PILOT INITIATIVE $421,753
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $368,855
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $20,170