Finding 1172312 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-03

AI Summary

  • Core Issue: One out of ten properties failed to meet inspection deadlines, risking non-compliance with housing quality standards.
  • Impacted Requirements: On-site inspections must occur every three years for small projects, every two years for medium projects, and annually for larger projects.
  • Recommended Follow-Up: Implement a scheduling and tracking system to ensure timely inspection requests to the City and OHCS.

Finding Text

2025-001 : Assistance Listing No. 14.239 HOME Investment Partnerships Program Special Tests and Provisions - Housing Quality Standards Criteria: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than: (a) every three years for projects containing one to four units, (b) every two years for projects containing 5 to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR 92.209(i), 92.251(f), and 92.504(d)). Condition: Of the 10 properties tested, one was out of compliance as an inspection should have been completed by October 2024. Cause: The Organization is responsible for contacting the City of Salem (the City) and Oregon Housing and Community Services (OHCS) to schedule the inspections timely but there were delays caused by the COVID-19 pandemic. Effect: Units could be out of compliance with housing quality standards. Questioned Costs: None Recommendations: We recommend the Organization set up a schedule and tracking system in order to contact the City and OHCS in advance of the due date of inspections in order to allow the City and OHCS sufficient time to complete the inspections timely. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan included in report.

Corrective Action Plan

The Organization has created a tracking system that identifies when the last inspection was completed and when the next inspection should be due based on the number of units at each complex. NOTE: Inspections are not due until June through October of 2027 for complexes under the jurisdiction of the City of Salem.

Categories

Special Tests & Provisions Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1172301 2025-001
    Material Weakness Repeat
  • 1172302 2025-002
    Material Weakness Repeat
  • 1172303 2025-001
    Material Weakness Repeat
  • 1172304 2025-001
    Material Weakness Repeat
  • 1172305 2025-001
    Material Weakness Repeat
  • 1172306 2025-001
    Material Weakness Repeat
  • 1172307 2025-001
    Material Weakness Repeat
  • 1172308 2025-001
    Material Weakness Repeat
  • 1172309 2025-001
    Material Weakness Repeat
  • 1172310 2025-001
    Material Weakness Repeat
  • 1172311 2025-001
    Material Weakness Repeat
  • 1172313 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $500,000
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $390,399
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $169,160
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $13,957