Finding 1227308 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-19

AI Summary

  • Core Issue: Seven housing units under HAP contract failed to meet HQS standards and did not receive timely re-inspections or rent abatement actions.
  • Impacted Requirements: PHA must inspect and notify owners of life-threatening deficiencies within 24 hours and non-life-threatening deficiencies within 15 days, with specified repair timelines.
  • Recommended Follow-Up: Ensure compliance with inspection timelines and initiate rent abatement for units not meeting HQS to avoid contract termination.

Finding Text

For units under HAP contract that fail to meet HQS, if the reported deficiency is life-threatening (LT), 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 (NLT), 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. During our audit, we identified seven (7) failed HQS (either LT or NLT) that did not receive a pass inspection during the required period. Additionally, they did not have the rent abetment process started or enforced during that time period. The HQS population was 206 failed inspection. We selected a sample of 20 inspection and identified of those 20 reviewed, 7 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord.

Corrective Action Plan

1. Tracking Deficiencies The Housing Authority will use its ERP system, Yardi, for tracking all failed inspections. The system will have record of all relevant inspection-related information, and inspection staff will update the log on the same day that deficiencies are identified and as corrections and follow-up inspections are completed. Management will review the log regularly to monitor outstanding deficiencies, ensure timely corrective action, and verify compliance with required deadlines. 2. Notification Procedures For a 24-hour correctable deficiency resulting in a failed inspection, the tenant and landlord (if present) will be notified at the time of inspection, and both will receive follow up notice via email or phone immediately thereafter. Where notification is made via phone, a note will be made on the inspection booklet recording the time and details of the conversation. A letter summarizing the conversation will be sent to tenant and/or landlord as applicable. For deficiencies with longer correction times (e.g. 30 days), notification will be sent to the tenant and landlord within 5 business days of the inspection. Notification will include relevant information, including the deficiency identified, the required timeframe for correction, the party responsible for correcting the violation, and potential consequences for failure to complete the required repairs or corrections. Management will periodically review documentation to ensure notifications are completed timely and in accordance with Housing Authority policy and HUD requirements. 3. Management Oversight Management will monitor all open deficiencies to ensure that required notices are issued within required timeframes, corrections are completed and verified timely, and appropriate follow-up actions are taken when repairs or corrections are not completed as required. If deficiencies are not corrected within the required timeframe, the Housing Authority will take appropriate enforcement action in accordance with program requirements and applicable regulations, including HAP abatement and termination of tenant assistance, if required. In addition, failure by staff to complete required inspection and follow-up responsibilities will be reported to executive management for corrective action to ensure continued compliance and accountability. 4. Verification of Corrections All remediation of deficiencies must be verified before the deficiency is considered corrected and closed. Verification may include: Reinspection conducted by Housing Authority staff, with dates of correction documented; Remote video inspection, if it is feasible to discern whether the deficiency was adequately cured; or Photographs clearly documenting completed repairs or corrections 5. Staff Training Inspection and program staff will receive training on: HUD inspection requirements; Identification of life-threatening and 24-hour deficiencies; Required correction and verification timelines; and Documentation and recordkeeping procedures.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $11.94M
14.879 MAINSTREAM VOUCHERS $703,962