Finding Text
Section III Federal Awards Findings US Department of Housing and Urban Development Internal Direct Award Significant Program Name ALN(s) Number Moving to Work Demonstration Program 14.881 Control N Deficiency Special Test and Provisions 2024-002 Housing Quality Standards Inspection/HQS Enforcement Questioned Costs None Criteria Condition Context Cause Effect Recommendations Management Views The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103). Additionally, 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 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). During our audit, we identified three (3) failed HQS that did not obtain a re-inspection pass for several months and no rent abatement process was started or enforced during that time period. The HQS population was 1,100 failed inspections. We selected a sample of 40 inspections and identified of those 40 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abatement process was enforced on landlord. The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management agrees with the finding, see Management's Corrective Action Plan.