Finding 1215122 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-05-20
Audit: 401810
Organization: St. Louis Housing Authority (MO)

AI Summary

  • Core Issue: The Housing Authority did not conduct timely inspections for 24 out of 40 voucher recipients, violating HUD requirements.
  • Impacted Requirements: HUD mandates biennial property inspections to ensure housing quality standards are met.
  • Recommended Follow-Up: Review tenant files for inspection status and implement controls for timely follow-ups; a corrective action plan is already in progress.

Finding Text

Condition – As part of our audit procedures, we evaluated the procedures related to the property inspections of participants of the Housing Voucher Cluster required by the U.S. Department of Housing and Urban Development (HUD). During the audit we noted the Housing Authority failed to conduct timely inspections on 24 of the 40 voucher recipients reviewed. Criteria – HUD requires the Housing Authority perform biennial property inspections of voucher participants to ensure the property unit meets housing quality standards. Cause – Due to limited inspectors available, the Housing Authority was not able to perform regular biennial inspections for all current leased units. Effect – An increased risk that the Housing Authority will not take proper actions to abate assistance to ineligible housing. Questioned Costs – None. Recommendation – We recommend the Housing Authority review current tenant files to ensure property inspection status is up to date and implement controls to ensure the necessary follow-up to inspections is performed. Management’s Response - The Housing Authority accepts the recommendation and acknowledges the excess of failed inspections discovered during the Single Audit. SLHA has initiated a comprehensive corrective action plan designed to (1) eliminate the current backlog and (2) implement sustainable controls to ensure ongoing compliance. SLHA will engage an external provider to conduct Housing Quality Standards (HQS) inspections for a temporary period of approximately three months to accelerate backlog reduction.

Corrective Action Plan

Management's Response: The St. Louis Housing Authority (SLHA) accepts the recommendation and acknowledges the excess of failed inspections discovered during the Single Audit. The 24-month inspection cycle is a strict requirement under Federal Regulation 24 CFR § 982.405(a), which mandates that Public Housing Authorities must inspect assisted units at least biennially. Furthermore, SLHA's Administrative Plan incorporates these HUD standards as mandatory operating procedures. Identified Causes of Deficiency: Supervisory Oversight, Operational Monitoring, and Compliance Enforcement The audit identified insufficient oversight in operational monitoring and compliance monitoring, which resulted in missed biennial inspection deadlines for inspections overdue by more than 48 months. This noncompliance with HUD inspection frequency requirements, combined with inadequate staff monitoring, compromised both program integrity and data accuracy. Ensuring that all assisted units meet Housing Quality Standards (HQS) is central to SLHA's mission to provide safe, decent, and sanitary housing. orrective Actions: Contract Assistance, Staffing Adjustments, and Enhanced Database Reviews SLHA has initiated a comprehensive corrective action plan designed to (1) eliminate the current backlog and (2) implement sustainable controls to ensure ongoing compliance. SLHA will engage an external provider to conduct Housing Quality Standards (HQS) inspections for a temporary period of approximately three months to accelerate backlog reduction. Current inspectors may be authorized to work overtime to increase daily inspection capacity during the remediation period. SLHA will also hire two additional inspectors to ensure adequate long-term staffing levels. SLHA will reduce the inspection backlog to zero overdue inspections exceeding 24 months and bring 100% of units into compliance with the biennial inspection requirement within 90 days of implementation. HCV Department leadership will implement mandatory retraining on HUD inspection requirements and perform biweekly inspection schedule reviews and monthly compliance monitoring to track timely inspection completion.

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 1215120 2025-001
    Material Weakness Repeat
  • 1215121 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $64.60M
14.850 PUBLIC HOUSING OPERATING FUND $14.36M
14.871 Emergency Housing Vouchers $1.48M
14.879 MAINSTREAM VOUCHERS $252,259
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $42,835
14.872 PUBLIC HOUSING CAPITAL FUND $10,654