Finding 30494 (2022-001)

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. During our audit, the Authority was found to not have properly abated 2 out of 40 failed inspections. If we extrapolate the failure rate of 5% to the total population 434, there would be 22 similar errors. JHA did not properly monitor outcomes of inspections and take appropriate action for corrections. The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties.