Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: WA001DV0079-83 - 2025 Award Period: January 1, 2025 through December 31, 2025 Compliance Requirement: Special Tests and Provisions - HQS Enforcement (Failed Inspections) 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 Housing Voucher Cluster, “For units under HAP contract that fail to meet HQS, if the reported deficiency is life-threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the life-threatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non-life-threatening, the PHA must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from the PHA or within any PHA-approved extension. (24 CFR section 982.405(d)). If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404).” According to the Authority’s Housing Choice Voucher Program Administrative Plan updated August 25th, 2025, “The owner and the family will be notified in writing of the results of failed inspections. When an inspection identifies HQS failures, the PHA will determine (1) whether or not the failure is a life-threatening condition and (2) whether the family or owner is responsible. The notice of inspection results will inform the owner that if life-threatening conditions are not corrected within 24 hours, urgent conditions are not corrected within 72 hours and non-life-threatening conditions are not corrected within the specified time frame the owner’s HAP will be abated in accordance with PHA policy. Likewise, in the case of family caused deficiencies the notice will inform the family that if corrections are not made within the specified time frame the family’s assistance will be terminated in accordance with PHA policy.” Condition: During testing, we noted the Authority lacked adequate internal controls to ensure failed inspections were completed in accordance with compliance requirements. Questioned costs: $4,652 Context: During testing, we identified the following inspection issues in two separate files: • One of the sixty sampled tenant files included two inspection entries dated the same day—one indicating a pass and the other indicating a fail with referral to abatement. Consequently, the final inspection status for this unit cannot be determined. • One of the sixty sampled tenant files lacked evidence of a completed reinspection. 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 2024-002. Recommendation: We recommend the Authority design and implement controls to ensure enforcement of HQS. These controls should include assigning a responsible individual to manage the reinspection schedule and to monitor and follow up on all reinspection dates, preventing inconsistent and missed reinspection. Views of responsible officials: There is no disagreement with the audit finding.