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: WA001EH014, WA001EH0013, 15-16 - 2025 WA001VO0535, 549, 552, 554-7, WA001546-8 - 2025 Award Period: January 1, 2025 through December 31, 2025 Compliance Requirement: Special Tests and Provisions - NSPIRE / Housing Quality Standards 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, “The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). However, NSPIRE for HCV and Project Based Vouchers (PBV) programs, referred to as NSPIRE-V during HUD’s demonstration, was effective October 1, 2023, and replaced HQS, as previously defined in 24 CFR 982.401, as the inspection standards for these programs. As announced in the Federal Register, “Economic Growth Regulatory Relief and Consumer Protection Act: Implementation of National Standards for the Physical Inspection of Real Estate (NSPIRE); Extension of NSPIRE Compliance Date for HCV Programs,” HUD extended the compliance date for HCV and PBV programs until October 1, 2024. This applies to all Public Housing Agencies (PHAs), including MTW PHAs, administering Section 8 Housing Choice Voucher programs.” According to the Authority’s Housing Choice Voucher Program Administrative Plan updated August 25th, 2025, “All units must pass an NSPIRE inspection prior to the approval of a lease (with some exceptions) and at least once every 26 months during the term of the HAP contract, and at other times as needed, to determine that the unit meets NSPIRE.” Condition: During testing, we noted the Authority lacked adequate internal controls to ensure NSPIRE inspections were completed in accordance with compliance requirements. Questioned costs: None Context: During testing, we identified an NSIPE inspections issue: three of the forty sampled inspections were not conducted on a biennial or triennial basis. 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 2024-005. Recommendation: We recommend the Authority design and implement controls to ensure NSPIRE inspections are conducted on schedule. These controls should include assigning a responsible individual to manage the inspection schedule, as well as monitoring and following up on all inspection dates to prevent delayed or missed inspections. Views of responsible officials: There is no disagreement with the audit finding.