Finding 1218170 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-06-23

AI Summary

  • Core Issue: The Authority failed to conduct timely re-inspections for 10% of housing units that did not meet Housing Quality Standards (HQS), risking non-compliance.
  • Impacted Requirements: Compliance with 2 CFR § 982.404 mandates re-inspections within 30 days or approved extensions for HQS violations.
  • Recommended Follow-Up: Ensure timely re-inspections are completed or extensions are formally approved to maintain compliance with HQS.

Finding Text

Finding Number: 2024-003 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster Federal Award Identification Number / Year: 2024 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Special Tests and Provisions, HQS Enforcement/Housing Quality Standards Inspections Pass-Through Entity: N/A Repeat Finding from Prior Audit? Yes Prior Audit Finding Number: 2023-003 Noncompliance and Material Weakness 2 CFR § 982.404 provides that the owner must maintain the unit in accordance with HQS. If the owner fails to maintain the dwelling unit in accordance with Housing Quality Standards (HQS), the PHA must take enforcement actions in accordance with 2 CFR § 982.404. PHA remedies for such breach of the HQS include termination, suspension or reduction of housing assistance payments and termination of the HAP contract. The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA verifies the correction. If a defect is life threatening, the owner must cure the defect within no more than 24 hours. For other defects, the owner must cure the defect within no more than 30 calendar days (or any PHA-approved extension). The owner is not responsible for a breach of the HQS that is not caused by the owner, and for which the family is responsible (as provided in § 982.404(b) and § 982.551(c)). However, the PHA may terminate assistance to a family because of HQS breach caused by the family. The Authority did not have a HQS reinspection completed within 30 calendar days for HQS inspection failures for 10 percent of inspection failures tested. Further, the Authority did not formally approve any related extensions for these inspections. Failure to complete timely reinspection or approve extensions could result in dwellings not maintained in accordance with HQS. The Authority should complete reinspection within the required time frame or approve extensions.

Corrective Action Plan

Finding Number: 2024-003 Planned Corrective Action: Housing Quality Standards are now done internally by the Executive Director and the authority has one dedicated staff member monitoring and they assure a re-inspection is automatically scheduled and notice sent to landlord and tenant. Anticipated Completion Date: 6/11/2026 Responsible Contact Person: Zackary Dye, Executive Director

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1218169 2024-003
    Material Weakness Repeat
  • 1218171 2024-004
    Material Weakness Repeat
  • 1218172 2024-004
    Material Weakness Repeat
  • 1218173 2024-005
    Material Weakness Repeat
  • 1218174 2024-005
    Material Weakness Repeat
  • 1218175 2024-006
    Material Weakness Repeat
  • 1218176 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $459,134
14.872 PUBLIC HOUSING CAPITAL FUND $413,660
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $121,339
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $59,732