Finding Text
Finding 2025-003 Significant Deficiency: Special Tests And Provisions - Compliance and Control Finding ALN 14.871 and 14.879 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires PHAs to place tenant-occupied units into abatement when cited HQS deficiencies are not corrected within the required timeframe and the unit does not receive a passing score upon reinspection. Condition: The Authority failed to place applicable units into abatement, and existing controls did not ensure that units requiring abatement were identified and processed in a timely manner. Cause: The control in place did not ensure timely abatement of rent as a result of failed inspection corrections. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: Known questioned costs of $8,805 were identified. Due to the nature of the compliance deficiency, likely questioned costs could not be reasonably projected or estimated, however are likely to exceed $25,000. Context: Of the 40 units tested, 7 met the criteria for abatement but were not placed into abatement. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate its existing controls over the identification and processing of units subject to HQS abatement requirements and consider implementing additional controls, such as a monthly review of failed HQS reinspections and outstanding deficiencies, to ensure units meeting HUD's abatement criteria are identified and placed into abatement in a timely manner. Views Of Responsible Officials: Section 8 Housing Choice Voucher Program staff will conduct a monthly review of failed HQS re-inspections and outstanding deficiencies as a standing agenda item during regular operational meetings to ensure units meeting HUD’s abatement requirements are identified and placed into abatement timely. Any required abatements identified through the review will be addressed promptly and documented by responsible program staff.