Finding 1179642 (2025-008)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-16

AI Summary

  • Core Issue: Three units failed HQS inspections but did not receive required re-inspections within 30 days.
  • Impacted Requirements: Timely re-inspections and enforcement of Housing Assistance Payments (HAP) abatement or voucher cancellation are not being followed.
  • Recommended Follow-Up: Strengthen monitoring procedures, enhance staff training on HQS compliance, and conduct regular audits to address enforcement lapses.

Finding Text

Program Name Section 8 Housing Choice Vouchers ALN(s) 14.871 2025-008 HQS Enforcement 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 three (3) instances, a unit that failed its HQS inspection did not undergo a subsequent re-inspection within the 30 day required window. Context This finding represents a potentially systemic issue within the Housing Voucher Cluster program, as it was identified in three (3) files tested out of a sample of six (6) 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 The exact monetary impact needs further investigation to determine the amount of HAP that should have been abated for the period of non-compliance. Management Views The auditee acknowledges the deficiency in enforcing Housing Quality Standards (HQS) as highlighted in the finding. In response to this issue, the management commits to implementing a comprehensive Corrective Action Plan.

Corrective Action Plan

Finding 2025-008: HQS Enforcement / Inspections Federal Program Finding Management acknowledges the finding and will strengthen oversight and enforcement of Housing Quality Standards (HQS) within the Housing Choice Voucher program. The Authority will discontinue the use of a contracted inspection service for the Tenant-Based Voucher program and will transition to conducting HQS inspections in-house. This change will allow for improved oversight, scheduling, and monitoring of inspection and reinspection timelines. NRMHA will implement procedures to ensure that failed inspections are tracked and reinspections are completed within HUD’s required 30-day timeframe. In cases where deficiencies are not corrected within the required period, Housing Assistance Payments (HAP) abatements or other enforcement actions will be implemented in accordance with HUD regulations. Additionally, staff responsible for HQS inspections will receive training on HQS compliance requirements, and management will conduct periodic internal reviews of inspection files to ensure adherence to program requirements. Expected Completion Date August 31, 2026

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1179641 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $8.85M
14.850 PUBLIC HOUSING OPERATING FUND $622,728
14.872 PUBLIC HOUSING CAPITAL FUND $76,053