FAC Explorer

Finding 21347 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 17972
Organization: City and County of Honolulu (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: Verification of housing quality corrections was done late, leading to improper disbursement of $12,222 in housing assistance payments.
  • Impacted Requirements: Compliance with 24 CFR 92.252(a) and 982.404(a) regarding timely correction of Housing Quality Standards (HQS) deficiencies.
  • Recommended Follow-Up: Improve diligence in tracking and documenting HQS inspections and ensure timely actions are taken when deficiencies are not corrected.

Finding Text

Condition During our audit, we examined 25 haphazardly selected failed Housing Quality Standards (?HQS?) inspections to test if corrections and verifications of corrections were performed within the correction period and proper action taken by the Public Housing Agency (?PHA?). We identified for one owner, verification of correction was performed after the correction period, but no housing assistance payments (?HAP?) were abated. Criteria 24 CFR 92.252(a) provides certain rental assistance limitations that apply to the rent plus the tenant?s utility allowance. The maximum rent is the lesser of 1) the fair market rent for existing housing for comparable units in the area as established by the Department of Housing and Urban Development (?HUD?) under 24 CFR 888.111; or 2) a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD include average occupancy per unit and adjusted income assumptions. 24 CFR sections 982.404(a) requires owners to maintain units in accordance with HQS. If an owner fails to maintain a dwelling in accordance with HQS and fails to correct the HQS deficiencies within the correction period, the PHA should abate HAP or terminate the contract. Effect As the City verified correction of HQS deficiencies after the correction period, HAP in the amount of $12,222 was improperly disbursed in the year ended June 30, 2022 resulting in questioned costs. Cause Although the City has policies and procedures in place to ensure proper HQS enforcement, there was a lack of diligence in complying with the policies and procedures due to staffing shortages. Recommendation We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing HQS inspections and taking appropriate action timely when an owner fails to correct HQS deficiencies identified.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 21344 2022-002
    Significant Deficiency Repeat
  • 21345 2022-003
    Significant Deficiency
  • 21346 2022-003
    Significant Deficiency
  • 21348 2022-003
    Significant Deficiency
  • 597786 2022-002
    Significant Deficiency Repeat
  • 597787 2022-003
    Significant Deficiency
  • 597788 2022-003
    Significant Deficiency
  • 597789 2022-003
    Significant Deficiency
  • 597790 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $87.12M
20.500 Federal Transit_capital Investment Grants $70.00M
14.871 Section 8 Housing Choice Vouchers $63.37M
20.507 Federal Transit_formula Grants $41.16M
21.027 Coronavirus State and Local Fiscal Recovery Funds $19.47M
66.458 Capitalization Grants for Clean Water State Revolving Funds $12.33M
14.218 Community Development Block Grants/entitlement Grants $9.00M
59.075 Shuttered Venue Operators Grant Program $4.58M
14.239 Home Investment Partnerships Program $3.48M
20.205 Highway Planning and Construction $2.18M
16.575 Crime Victim Assistance $1.66M
14.879 Mainstream Vouchers $1.64M
95.001 High Intensity Drug Trafficking Areas Program $1.36M
17.259 Wia Youth Activities $1.18M
97.067 Homeland Security Grant Program $1.07M
17.258 Wia Adult Program $941,993
17.278 Wia Dislocated Worker Formula Grants $875,578
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $844,739
16.922 Equitable Sharing Program $789,337
14.241 Housing Opportunities for Persons with Aids $690,150
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $646,357
14.231 Emergency Solutions Grant Program $633,714
97.042 Emergency Management Performance Grants $573,693
17.274 Youthbuild $473,337
16.741 Dna Backlog Reduction Program $420,203
21.019 Coronavirus Relief Fund $395,119
93.052 National Family Caregiver Support, Title Iii, Part E $355,570
20.616 National Priority Safety Programs $337,682
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $312,506
10.559 Summer Food Service Program for Children $296,863
14.896 Family Self-Sufficiency Program $199,142
14.275 Housing Trust Fund $172,903
20.600 State and Community Highway Safety $166,761
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $163,522
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $148,748
16.588 Violence Against Women Formula Grants $122,019
16.320 Services for Trafficking Victims $120,047
17.207 Employment Service/wagner-Peyser Funded Activities $113,627
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $96,990
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $96,120
94.002 Retired and Senior Volunteer Program $93,388
93.136 Injury Prevention and Control Research and State and Community Based Programs $89,034
93.788 Opioid Str $82,467
97.045 Cooperating Technical Partners $80,072
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $69,440
16.034 Coronavirus Emergency Supplemental Funding Program $56,016
16.609 Project Safe Neighborhoods $45,255
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $44,305
17.268 H-1b Job Training Grants $36,194
97.039 Hazard Mitigation Grant $32,497
16.738 Edward Byrne Memorial Justice Assistance Grant Program $21,033
84.287 Twenty-First Century Community Learning Centers $10,386
93.053 Nutrition Services Incentive Program $9,367
21.016 Equitable Sharing $8,161
10.675 Urban and Community Forestry Program $432
16.833 National Sexual Assault Kit Initiative $2