Finding 1214571 (2025-001)

US Department of Housing and Urban Development Direct Award Program Name Section 8 Housing Choice Vouchers "Internal Control" Significant Deficiency N Special Tests ALN(s) 14.871 2025-001 Housing Quality Standards Inspection Criteria "The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re‐inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). " Condition During the audit, it was noted that in fifteen (15) instances, a unit that did not undergo an HQS inspection within the prior bi-annual period. Context We selected a sample of 40 HAP payments to test HQS inspections. Out of the 40 HAP payments test, 15 did not have a bi-annual inspection. Cause The non-compliance appears to stem from oversight or procedural lapses in the inpection of units 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 We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. 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 Management agrees with the finding, see Management's corrective action plan.