Finding Text
Finding 2022-003, Requirement N (Special Tests -Housing Quality Standards) U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnership Program ? ALN 14.239 Federal Award Year 2022 Finding: The City did not have sufficient controls to properly track and perform timely inspections on housing as inspections came due as required under the program. Criteria: During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units. Condition: The City had not performed an inspection on 2 of the 6 houses tested in the last three years. Cause: The City?s controls were not operating effectively to ensure that the inspections were done on schedule. Effect: Potential for improper reporting can result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: 2 of the 6 rental properties tested did not have an inspection performed in the last 3 years per the compliance requirements. Recommendation: We recommend the City implement controls to ensure that the inspections are properly identified, tracked and performed. City management?s response: Management agrees with this finding.