Finding 22733 (2022-002)

Criteria - Housing assisted under the Shelter Plus Care Program must meet applicable housing quality standards (HQS) under 24 CFR Section 582.305. Before any assistance is provided on behalf of a participant, the nonfederal entity, or another entity acting on behalf of the nonfederal entity (other than the owner of the housing), must physically inspect each unit to ensure that the unit meets housing quality standards. Nonfederal entities must also inspect all units annually during the grant period to ensure that units continue to meet housing quality standards (24 CFR Section 582.305(a)). Condition - The Authority did not perform an annual HQS inspection for 11 out of 21 units sampled for testwork. Cause - The Authority?s procedures called for biennial inspections of properties. Effect - The Authority was not in compliance with HQS inspection requirements of the program. Questioned Costs - None identified. Recommendation - We recommend the Authority update processes to ensure all properties are being inspected on at least an annual basis. Management?s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action taken. (b) Action taken - HQS inspections of Shelter Plus Care properties will be performed on an annual basis. (c) Planned implementation date of corrective action - Completed by September 30, 2023.