Finding 1206653 (2025-001)

2025-001 HQS Enforcement U.S Department of Housing and Urban Development Section 8 Housing Choice Voucher Program 14.871 Condition: The EDA failed to comply with Uniform Guidance requirements related to Housing Quality Standards (HQS) reinforcements. Specifically, nine housing units that failed initial inspections did not undergo the required reinspections, and thirteen housing unit was reinspected beyond the mandated 30-day timeframe. Criteria: According to the Uniform Guidance (2 CFR Part 200) and applicable sections on Housing Quality Standards, any housing unit that fails an initial inspection must be reinspected within a 30-day period to ensure compliance with HQS and address any deficiencies identified. Cause: The non-compliance appears to stem from a lack of robust tracking and scheduling mechanisms within the EDA's inspection department. Additionally, there may have been insufficient staffing or inadequate training regarding the importance of adhering to the reinspection timelines specified in the Uniform Guidance. Effect: Non-compliance with HQS reinspection requirements can result in potential safety and habitability risks for tenants residing in units that do not meet established standards. Moreover, the failure to adhere to federal guidelines may jeopardize the EDA's eligibility for federal funding or lead to financial penalties, impacting the agency's ability to support housing initiatives effectively. Management Response: Management acknowledges the non-compliance identified related to Housing Quality Standards (HQS) reinspection requirements. The EDA recognizes the importance of ensuring that all units participating in the Housing Choice Voucher Program meet federal housing quality and safety standards and that required reinspections occur within the timelines established by federal regulations. The instances cited in the audit occurred during a period of staffing transition within the inspection department, when the agency experienced reduced inspection capacity and relied on temporary processes that did not provide sufficient tracking of reinspection deadlines. As a result, nine units that failed initial inspections were identified as not having documented reinspections, and thirteen units were reinspected outside the required 30-day timeframe. Management also notes that some inspections referenced in the report may have been completed but were not properly logged in the inspection tracking system. Some of the failed inspections involved 24-hour deficiencies related to the implementation of the updated smoke detector requirements. Because these reinspections were not consistently scheduled or recorded within the inspection software, the agency did not have a reliable method for tracking or verifying their completion in the system at the time of the audit. The EDA recognizes the need for stronger documentation and tracking procedures