Finding Text
HQS Enforcement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: FL080; 2025 Award Period: October 1, 2024 to September 30, 2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Noncompliance (Other Matters) Criteria or Specific Requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During testing of 60 tenant files, HQS enforcement-related exceptions were identified in 1 file. • The Authority did not terminate the contract of 1 unit that failed to correct HQS deficiencies within the required timeframe. Questioned Costs: None. HAP was properly abated for this unit. Context: Out of 60 tenant files tested, 1 tenant file contained errors as noted above. Cause: The Authority had inadequate monitoring and enforcement controls over HQS follow-up procedures, including ensuring timely contract termination when required corrective actions are not completed timely. Effect: Failure to enforce HQS requirements increases the risk that: • Program participants occupy units that do not meet HUD housing quality standards, and • Improper HAP payments are made for noncompliant units, potentially resulting in questioned costs and noncompliance with HUD requirements. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Authority strengthen internal controls over HQS enforcement by implementing procedures to track and monitor HQS deficiencies and required correction timelines. Views of Responsible Officials: There is no disagreement with the audit finding.