Finding Text
HQS Failed Inspections - N Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Voucher Cluster FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2025 Award Period: 1/1/2025-12/31/2025 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authorityapproved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Commission did not properly enforce consequences to landlords or tenants of units that did not pass inspections in a timely manner. Questioned costs: $58,800; this was determined by calculating the HAP that should have been abated during the months the unit did not pass inspection. Context: During testing of 60 tenant files, exceptions were noted in the following: - 5 units sampled had failed inspections due to owner responsibilities for which the Commission never abated HAP - 3 results letters to the landlord and tenant did not include required correction period for any deficiencies (e.g. 24 hours for life threatening deficiencies, 30 days for all others) - 4 out of 60 files did not contain a unit inspection report documenting that repairs had been completed - 2 out of 60 files contained a failed inspection due to tenant responsibilities and family obligations were not enforced Cause: The Commission’s controls over inspections were not operating effectively. The Commission did not abate or enforce family obligations when inspections failed and landlords or tenants failed to fix the issues within the specified period. Effect: The Commission is not in compliance with HUD requirements. This could have an impact on HAP calculations. Repeat finding: Yes, 2024-003 Recommendation: We recommend that the Commission review their abatement procedures to ensure any unit that has not met the HQS standards is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants. Views of responsible officials: There is no disagreement with the audit finding.