Finding 1238724 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-09-30

AI Summary

  • Core Issue: The Authority failed to inspect and notify owners and tenants of life-threatening deficiencies within the required 24-hour timeframe.
  • Impacted Requirements: This finding indicates non-compliance with federal regulations regarding Housing Quality Standards (HQS) and oversight responsibilities.
  • Recommended Follow-Up: Strengthen inspection procedures for life-threatening deficiencies and provide training for staff to ensure adherence to HUD regulations.

Finding Text

HQS Enforcement and Annual HQS Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: GA007; 2025 Award Period: January 1, 2025 to December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA 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 PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Number of Instances Finding 10 Authority did not both inspect the unit and notify the owner and tenant of the confirmed life-threatening deficiency within 24 hours as required. Questioned costs: None Context: Of the 60 files tested, 10 files contained errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations. Effect: The Authority is not in compliance with federal regulations regarding Housing Quality Standards and Quality Control requirements. Repeat Finding: Yes, see prior year finding 2024-001. Recommendation: We recommend that the Authority strengthen its 24 hour LT deficiency inspection procedures to ensure compliance with HUD requirements. Additionally, the Authority should provide training to personnel involved in the inspection process to reinforce their understanding of and adherence to applicable HUD regulations. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

HQS Enforcement and Annual HQS Inspections Housing Choice Voucher Cluster - Assistance Listing No. 14.874 Recommendation: We recommend that the Authority continue to strengthen its 24-hour LT deficiency inspection procedures to ensure compliance with HUD requirements. Additionally, the Authority should provide training to personnel involved in the inspection process to reinforce their understanding of and adherence to applicable HUD regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: MHA has made progress in the timely enforcement of all aspects of HQS enforcement. Regarding 24-hour Life Threating (LT) items, MHA has now informed all landlords that they are expected to provide MHA with photos or completed workorders confirming that said LT repairs were completed. This conforms with all HUD related inspection protocol in the affordable housing industry making it easier for all parties to quickly comply. Further, MHA has designated staff to immediately send an email to the landlord once a LT item is identified. Additionally, a supervisor level employee checks behind staff to ensure timely compliance. Name(s) of the contact person(s) responsible for corrective action: Charletta Speights and Tunka Shinholster.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $37.15M
14.850 PUBLIC HOUSING OPERATING FUND $836,428
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $424,334
14.872 PUBLIC HOUSING CAPITAL FUND $327,622
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $1,463