Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: WA001 - 2025 Award Period: January 1, 2025 through December 31, 2025 Compliance Requirement: Special Tests and Provisions - Housing Quality Standards Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: According to Part 4 of the Compliance Supplement 2025 for the Moving to Work Demonstration Program, “MTW Agencies must ensure that housing assisted under the demonstration program meets housing quality standards established or approved by the Secretary. The HCV program regulations at 24 CFR sections 982.401 through 982.405 set forth basic housing quality standards (HQS) which all units must meet, and the PHA must verify by inspection, before initial assistance can be paid on behalf of a family and at least annually throughout the term of the assisted tenancy. Current HQS regulations consist of 13 key aspects of housing quality, performance requirements, and acceptability criteria to meet each performance requirement. HQS include requirements for all housing types, including single and multi-family dwelling units, as well as specific requirements for special housing types, such as manufactured homes, congregate housing, single room occupancy, shared housing, and group residences (Section 204(c)(3)(E) of Pub. L. No. 104-134 (42 USC 1437f (note))).” According to the Authority’s Housing Choice Voucher Program Administrative Plan updated August 25th, 2025, “MTW Units: SHA conducts an inspection to determine continuing compliance with Housing Quality Standards within 26 months of the last inspection (MTW 3.A.01). SHA reserves the right to place units on an annual inspection or another alternative schedule if deemed appropriate. SHA will complete a full recertification on a triennial basis for families where all adults in the household are elderly or disabled (unless the entire household has no income).” Condition: During testing, we noted the Authority lacked adequate internal controls to ensure housing inspections were performed when due. Questioned costs: None Context: During testing, we identified the following HQS issue: one of the forty sampled tenant files did not contain evidence of a required triennial inspection. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as its administrative policy. Effect: The tenant may not be receiving housing that is safe, sanitary, or structurally sound. Repeat Finding: Yes. See prior year finding 2024-007. Recommendation: We recommend the Authority design and implement controls to ensure housing inspections are performed when due. Such controls should include assigning a responsible individual to manage the inspection schedule and to monitor and follow up on all inspection dates to prevent missed inspections. Views of responsible officials: There is no disagreement with the audit finding.