Finding 1191133 (2025-002)

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

AI Summary

  • Core Issue: Nine family eligibility files lacked documentation of passed Housing Quality Standards (HQS) inspections, violating HUD requirements.
  • Impacted Requirements: The Authority must conduct annual inspections and random quality control checks on 20% of units in each building as per project-based housing assistance contracts.
  • Recommended Follow-Up: Ensure random inspections are completed and documented, and review tenant files to address deficiencies by June 30, 2026.

Finding Text

2025-002 Special Tests and Provisions Condition and Criteria: The Authority’s purpose for existence is to provide decent safe and affordable housing to low-income persons. As such, HUD requires the Authority to comply with special tests and provisions relating to its Housing Choice Voucher program. The Authority must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The Authority must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Population and Items Tested: Testing of sixty family eligibility files revealed nine files that lacked documentation of a passed HQS inspection. It was determined these families were occupants of Rental Assistance Demonstration (RAD) units. As such, the Authority entered into a project-based housing assistance payment contract which outlines the Authority’s responsibility to randomly inspect 20% of the contract units in each building in accordance with HQS standards. These random inspections were not performed in the current audit period. Auditor’s Recommendation: The Authority should perform a random inspection of 20% of the units in each building as per the housing payments contracts and ensure documentation of a “passed” housing quality inspection is maintained. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Grantee Response: HQS inspections were performed upon move-in of a new tenant. We will continue the move-in inspections and perform the required random sample of inspections for 20% of the units under contract in each building. Anticipated Completion Date: June 30, 2026

Corrective Action Plan

Auditor’s Recommendation: The Authority should perform a random inspection of 20% of the units in each building as per the housing payments contracts and ensure documentation of a “passed” housing quality inspection is maintained. A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Grantee Response: HQS inspections were performed upon move-in of a new tenant. We will continue the move-in inspections and perform the required random sample of inspections for 20% of the units under contract in each building. Anticipated Completion Date: June 30, 2026

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1191132 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $7.09M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $44,940