Finding Text
Housing Voucher Cluster – Housing Quality Standards (HQS) Inspections and Enforcement Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: VA003, 2025 Award Period: January 1, 2025 – December 31, 2025 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: The PHA must inspect each unit leased to a family at least biennially to determine compliance with Housing Quality Standards (HQS), conduct required quality-control reinspections and prepare and retain a unit inspection report (24 CFR §§ 982.158(d) and 982.405(b)). For units under HAP contract that fail to meet HQS, if the reported deficiency is life threatening, 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, 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. The owner is not responsible for a breach of HQS because 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During testing, multiple instances were identified in which the Authority does not meet HQS requirements. Questioned costs: $487 for the HQS enforcement test only. This was determined by calculating the HAP that should have been abated during the months the unit did not pass inspection. Questioned costs could not be determined for biennial inspections as the nature of the test is not for financial reasons. Context: During testing of 65 units for HQS requirements, the following was noted: • 27 units did not have inspections performed on a biennial basis, including 1 for which no inspection documentation could be located • 7 units did not have inspections performed within 2 years of the effective date tested • 1 unit where it failed inspection and HAP was not properly abated Cause: The staff performing the inspections did not properly use the Yardi software program available to conduct and document the inspection process. Effect: The Authority is not in compliance with HUD’s requirements regarding HQS Inspections. Repeat Finding: Yes, prior year findings were 2024-002 and 2024-004 Recommendation: We recommend the Authority review its HQS inspection process to ensure that inspections are performed timely and that all inspection-related documentation is maintained within Yardi or the tenant file. We recommend the Authority review its processes for tracking failed inspections to ensure that the proper actions are taken timely. Views of responsible officials: There is no disagreement with the audit finding.