Finding 1181322 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-18

AI Summary

  • Core Issue: Two out of six tenant files lacked documentation proving that Housing Quality Standards (HQS) deficiencies were addressed on time.
  • Impacted Requirements: PHAs must correct HQS deficiencies within specific timeframes to comply with federal regulations, or face potential sanctions.
  • Recommended Follow-Up: Strengthen internal controls by implementing a checklist for HQS follow-ups, training staff on HUD requirements, and regularly reviewing tenant files for compliance.

Finding Text

2025-005: Housing Quality Standards (HQS) Enforcement Condition: 2 of 6 of tenants tested that had failed inspections did not have documentation in their tenant file to support that HQS deficiencies identified in units under a Housing Assistance Payments (HAP) contract were addressed within the required. Criteria: Under 24 CFR § 982.405(d), PHAs must ensure HQS deficiencies in HAP-assisted units are corrected within required timeframes. For life-threatening deficiencies, the PHA must inspect and notify the owner within 24 hours, and the owner must make repairs within 24 hours of notification. For non-life-threatening deficiencies, the PHA must inspect and notify the owner within 15 days, and the owner must correct the deficiency within 30 days or within an approved extension. If an owner fails to correct deficiencies within the required period, the PHA must abate HAP no later than the first of the month following the correction deadline or terminate the HAP contract. Owners are not responsible for deficiencies caused by the family, including failure to pay required utilities or tenant-caused damage. Under 24 CFR §§ 982.158(d) and 982.404, for family-caused deficiencies that are not corrected, the PHA must take prompt enforcement action against the family. Cause: Housing Voucher Cluster tenant files are not being maintained with complete and accurate information. Information such as documentation to support that HQS deficiencies identified in units under a HAP contract were addressed within the required timeframes were missing from the Housing Voucher Cluster tenant files. Effect: Failure to maintain documentation demonstrating that HQS deficiencies were corrected within required timeframes increases the risk that assisted units may continue to operate with unresolved health and safety issues. Without adequate records, the PHA cannot demonstrate compliance with federal requirements governing the Housing Choice Voucher program. This may result in participants residing in units that do not meet HUD’s minimum housing quality standards, potential exposure to HUD monitoring findings, and the risk of repayment or other administrative sanctions. Recommendation: We recommend that the PHA strengthen its internal controls and file management procedures to ensure that all documentation related to HQS deficiencies—including inspection reports, owner notifications, repair verification, and any HAP abatement actions—is consistently maintained in tenant files. The PHA should: 1. Implement a standardized checklist or documentation protocol for HQS deficiency follow-up. 2. Provide staff training on required HUD timelines and documentation standards. 3. Periodically review tenant files to ensure completeness and compliance.

Corrective Action Plan

The Housing Authority will implement procedures to enhanced enforcement and documentation procedures to ensure timely correction of HQS deficiencies. Corrective actions include: • A tracking log will be implemented to monitor failed inspections and required correction deadlines. • Continuous Review of files will be conducted for inspections with identified deficiencies to ensure proper enforcement actions are taken. • Documentation of all inspection results, notifications, abatements, and enforcement actions will be maintained in tenant files. • Continuous Staff training will be conducted on HQS enforcement requirements and documentation standards.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1181308 2025-001
    Material Weakness Repeat
  • 1181309 2025-001
    Material Weakness Repeat
  • 1181310 2025-001
    Material Weakness Repeat
  • 1181311 2025-002
    Material Weakness Repeat
  • 1181312 2025-002
    Material Weakness Repeat
  • 1181313 2025-002
    Material Weakness Repeat
  • 1181314 2025-003
    Material Weakness Repeat
  • 1181315 2025-003
    Material Weakness Repeat
  • 1181316 2025-003
    Material Weakness Repeat
  • 1181317 2025-004
    Material Weakness Repeat
  • 1181318 2025-004
    Material Weakness Repeat
  • 1181319 2025-004
    Material Weakness Repeat
  • 1181320 2025-005
    Material Weakness Repeat
  • 1181321 2025-005
    Material Weakness Repeat
  • 1181323 2025-006
    Material Weakness Repeat
  • 1181324 2025-006
    Material Weakness Repeat
  • 1181325 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $1.94M
14.850 PUBLIC HOUSING OPERATING FUND $1.84M
14.879 MAINSTREAM VOUCHERS $832,808
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $95,462
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $86,739
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $85,006