Finding Text
Finding 2025-004 – Section 8 Waiting List – Eligibility – Internal Control over Waiting List – Noncompliance and Significant Deficiency – Section 8 Housing Assistance Cluster Program – ALNs 14.871, 14.879, and 14.EHV Condition & Cause: In our review of the Section 8 waiting lists, we found that the Agency did not administer Housing Choice Voucher waitlist preferences in accordance with HUD requirements and its own governing documents. Specifically, the local preferences programmed into their housing database are not included or detailed in the Agency’s Section 8 Administrative Plan. Furthermore, we found that the Agency was unable to provide documentation verifying that applicants met the eligibility criteria for the preferences claimed. The Agency experienced significant staff turnover, including executive and senior management, since the waitlist last accepted applications in 2021. During this period, the Agency did not ensure continuity of policies and internal controls related to waitlist administration. As a result, local preferences programmed into the housing software were not reconciled to the Administrative Plan, and procedures were not in place to ensure consistent verification and retention of documentation supporting applicants’ claimed preferences. Criteria: 24 CFR §982 details the requirements of administering the Housing Choice Voucher waitlist. Effect: The Agency cannot demonstrate that applicants were selected from the waitlist in accordance with HUD regulations and the Agency’s Administrative Plan. This condition increases the risk that applicants may have been improperly ranked or selected, undermining the integrity, transparency, and fairness of the waitlist process. Recommendation: We recommend that the Agency first review all local preferences currently programmed in the housing database and either remove those not formally adopted or update the Admin Plan to accurately reflect all preferences used. Second, implement procedures to ensure that staff obtain, verify, and retain documentation supporting applicants’ eligibility for any claimed waitlist preference. Furthermore, provide staff training on waitlist preference requirements and record retention to ensure consistent compliance with HUD regulations and the Admin Plan. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.