Finding 1228252 (2025-011)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-28

AI Summary

  • Core Issue: The Authority failed to comply with HQS enforcement requirements, leading to material noncompliance and weaknesses in internal controls.
  • Impacted Requirements: Timely reinspections and proper abatement of Housing Assistance Payments (HAP) for units with unresolved deficiencies were not followed.
  • Recommended Follow-up: Implement controls to ensure timely correction of HQS deficiencies and proper abatement processes are in place.

Finding Text

Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition: • For 30 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 11 of 60 files tested, the unit failed reinspection and there was no documentation that the deficiencies were corrected within the allowable correction period. • For 7 of 60 files tested, there was no evidence that the PHA took proper steps to properly enforce family obligations when the Unit failed inspection due to tenant responsibilities. • For 2 of 60 files tested, there was no evidence that the Landlord and tenant were notified about their scheduled inspection. • For 2 out of 60 files tested, there was no inspector signature on the original failed inspection Questioned costs: $333,801 Cause The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: Yes; 2024-023 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.

Corrective Action Plan

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions --HQS Enforcement Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: The manager of inspections position will be backfilled by a person who is qualified to direct and assist the inspection supervisors ensure that all HQS initial, annual, biennial, and special inspections are scheduled, completed, and documented within HUD-required timeframes. Supervisors will monitor inspection due dates through weekly compliance reports, assign overdue inspections for immediate completion, and conduct quality assurance reviews to verify timely processing. For units that fail HQS, staff will issue the required owner and participant notifications, accurately document all failed deficiencies and correction deadlines, and place the unit under Housing Assistance Payment (HAP) abatement, when required, in accordance with HUD regulations and DCHA policy. Supervisors will verify that abatement actions are timely, properly documented in Yardi and supported by complete case file documentation before the case is closed. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Inspections Manager (Person TBD); and Khaliah Payne. Planned completion date for corrective action plan: March 31, 2027 – End of 2nd Quarter, FY2027.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 1228246 2025-009
    Material Weakness Repeat
  • 1228247 2025-010
    Material Weakness Repeat
  • 1228248 2025-010
    Material Weakness Repeat
  • 1228249 2025-010
    Material Weakness Repeat
  • 1228250 2025-011
    Material Weakness Repeat
  • 1228251 2025-011
    Material Weakness Repeat
  • 1228253 2025-012
    Material Weakness Repeat
  • 1228254 2025-012
    Material Weakness Repeat
  • 1228255 2025-012
    Material Weakness Repeat
  • 1228256 2025-013
    Material Weakness Repeat
  • 1228257 2025-013
    Material Weakness Repeat
  • 1228258 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $474.49M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $16.03M
14.879 MAINSTREAM VOUCHERS $2.01M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $1.49M
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $1.17M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $315,226