FAC Explorer

Finding 1223173 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-07-08
Audit: 406687
Organization: City of Lafayette (IN)
Auditor: FORVIS MAZARS LLP

AI Summary

  • Core Issue: The City is not conducting required ongoing inspections of HOME-assisted properties after occupancy, risking noncompliance with Housing Quality Standards (HQS).
  • Impacted Requirements: Compliance with 24 CFR § 92.209(i), § 92.251(f), and § 92.504(d) is at risk due to the lack of a formal inspection schedule.
  • Recommended Follow-Up: Finalize and implement a comprehensive inspection schedule and establish monitoring controls to ensure timely inspections and documentation.

Finding Text

Federal Program Name: HOME Investment Partnerships Program Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.239 Criteria Per 24 CFR § 92.209(i), § 92.251(f) & § 92.504(d), participating jurisdictions are required to ensure that HOME-assisted rental units meet Housing Quality Standards (HQS) and to perform ongoing inspections during the period of affordability to confirm continued compliance. Condition The City has established procedures to ensure initial compliance with HQS, including reliance on certificates of occupancy for newly constructed and rehabilitated properties and inspections performed by the Lafayette Housing Authority for tenant-based rental assistance prior to lease-up. However, the City has fallen behind in conducting required ongoing inspections of HOME-assisted properties after occupancy and does not currently have a fully implemented inspection schedule covering the affordability period. Cause The delay in completing ongoing inspections appears to be due to the absence of a formalized and consistently implemented inspection schedule to track and monitor properties throughout the affordability period. Effect Without timely ongoing inspections, the City cannot ensure that HOME-assisted units continue to meet HQS requirements. This increases the risk that assisted properties may fall out of compliance with federal standards, potentially impacting the health and safety of occupants and resulting in noncompliance with HOME program regulations. Recommendation We recommend that the City finalize and implement a comprehensive inspection schedule to ensure all HOME-assisted properties are inspected at required intervals throughout the affordability period. Additionally, the City should establish monitoring controls (e.g., tracking logs or software) to ensure inspections are performed timely and documented appropriately to demonstrate compliance with HQS requirements. Views of Responsible Officials and Planned Corrective Actions: For the views of responsible officials, refer to the Corrective Action Plan

Corrective Action Plan

FINDING 2025-002 Contact Person Responsible for Corrective Action: Jeremy Diehl Contact Phone Number: 765-807-1011 Views of Responsible Official: Concurred Description of Corrective Action Plan: The Lafayette Housing Authority concurs with this finding. During 2026, the Lafayette Housing Authority initiated the development of formal inspection and long-term compliance procedures for HOME-assisted properties. These procedures will establish inspection frequency requirements, inspection scheduling protocols, documentation standards, and follow-up procedures for identified deficiencies throughout the affordability period. Inspection tracking logs, compliance monitoring forms, and reporting tools are being developed to ensure required inspections are scheduled, completed, and documented timely. A review of all HOME-assisted properties will be conducted to establish and maintain an inspection schedule for the remaining affordability periods. The Executive Director and HOME Program Administrator will oversee implementation of the procedures, staff training, inspection tracking, and periodic compliance reviews to ensure ongoing compliance with 24 CFR § 92.209(i), § 92.251(f) & § 92.504(d). Anticipated Completion Date: December 31, 2026

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1223164 2025-001
    Material Weakness Repeat
  • 1223165 2025-002
    Material Weakness Repeat
  • 1223166 2025-001
    Material Weakness Repeat
  • 1223167 2025-002
    Material Weakness Repeat
  • 1223168 2025-001
    Material Weakness Repeat
  • 1223169 2025-002
    Material Weakness Repeat
  • 1223170 2025-001
    Material Weakness Repeat
  • 1223171 2025-002
    Material Weakness Repeat
  • 1223172 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $2.26M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $200,000
97.067 HOMELAND SECURITY GRANT PROGRAM $150,000
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $135,046
14.267 CONTINUUM OF CARE PROGRAM $79,326
20.205 HIGHWAY PLANNING AND CONSTRUCTION $75,938
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $38,176
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $19,950
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $19,831
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $11,743