Finding 1190941 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-27

AI Summary

  • Core Issue: The PHA failed to provide reinspection reports for 10 out of 25 units with life-threatening deficiencies and did not abate HAP as required.
  • Impacted Requirements: Non-compliance with 24 CFR § 982.405(d) puts tenants at risk of unresolved health and safety issues and jeopardizes federal program compliance.
  • Recommended Follow-Up: Strengthen internal controls by implementing a checklist for HQS follow-ups, training staff on HUD standards, and regularly reviewing tenant files for completeness.

Finding Text

Condition: During our testwork over HQS enforcement requirements under the Housing Choice Voucher Program (Section 8), we selected a sample of 25 failed HQS inspections. We noted that:  For 10 of the sampled units, the Authority did not provide reinspection reports for life-threatening deficiencies.  Additionally, Housing Assistance Payments (HAP) were not abated as required in accordance with the criteria established by the U.S. Department of Housing and Urban Development. 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. 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 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 Voucher Cluster 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. Auditor's 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:  Implement a standardized checklist or documentation protocol for HQS deficiency follow-up.  Provide staff training on required HUD timelines and documentation standards.  Periodically review tenant files to ensure completeness and compliance.

Corrective Action Plan

HACA will develop a standardized checklist protocol for HQS deficiency followup by 04/30/2026. Staff training on required HUD timelines and documentation standards is ongoing and will be emphasized. HACA is currently working with an outside housing programs consultant to review and update work processes related to HQS enforcement and ensure compliance. We anticipate completion by 09/30/2026.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1190940 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $171.29M
14.879 MAINSTREAM VOUCHERS $4.32M
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $552,374
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $25,348