FAC Explorer

Finding 32251 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-04
Audit: 32287
Organization: Metropolitan Boston Housing Partnership, Inc. (MA)
Auditor: Daniel Dennis & Company LLP

AI Summary

  • Core Issue: Timely unit inspections for the Moving to Work and Housing Choice Voucher programs were not completed, and owner self-certifications were not obtained.
  • Impacted Requirements: Inspections are required to meet housing quality standards as per federal regulations, which were not adhered to due to pandemic-related delays.
  • Recommended Follow-Up: Enhance monitoring of quality control procedures and implement additional internal controls to ensure compliance with inspection requirements.

Finding Text

2022-001 Unit Inspections Federal Agency: U.S. Department of Housing and Urban Development (Passed through MA DHCD) Federal Programs: 14.881 Moving to Work Demonstration Program 14.871 Housing Choice Voucher Program (Housing Voucher Cluster) Condition: Four unit inspections for the Moving to Work Demonstration Program (MTW) and seven unit inspections for the Section 8 Housing Choice Vouchers (HCV) were not completed in a timely manner and owner self-certifications were not obtained. Criteria: The MTW and HCV programs require periodic unit inspections in order to determine the unit meets certain housing quality standards per 24 CFR sections 982.401 through 982.405. The unit inspections ensure that housing quality standards are met and require that the owner is notified of defects shown by the inspection, if any, and they are corrected in a timely manner. Due to the ongoing pandemic, HUD and DHCD issued a waiver allowing an organization to obtain a self-certification from the owner in lieu of conducting an in person inspection. This was effective from April 2020 through December 2021. Cause: Unit inspections were not able to be completed during the global pandemic, which resulted in a backlog of inspections that needed to be completed once restrictions and federal waivers were lifted and the Organization did not obtain self-certifications from the owners. Effect: Unit inspections were not completed in accordance with housing quality standards. Context: A sample of twenty-five tenants were selected for each program to determine if unit inspections were completed timely out of a population of approximately 6,700 and 250 tenants for MTW and HCV, respectively. Our tests found that four unit inspections for MTW and seven unit inspections for HCV were not completed in a timely manner and owner certifications were not obtained. Our sample was not a statistically valid sample. Questioned Costs: None Recommendation: We recommend that monitoring of established quality control procedures be enhanced and additional internal control procedures be implemented to ensure inspections are completed in accordance with program requirements. Management Response: Management agrees with the finding. See management?s attached corrective action plan.

Corrective Action Plan

2022-001 Unit Inspections 14.881 Moving to Work Demonstration Program ? Award No. OCD26401344019MTW 14.871 Housing Choice Voucher Program (Housing Voucher Cluster) ? Award No. OCD26401344019HCV Responsible Official John Hillis Director of Inspections & Property Owner Services, Systems, and Compliance Plan Detail Metro Housing is converting all eligible inspections from an annual to a biennial cycle as allowed by the program. Due to the constraints of the pandemic waivers, Metro Housing was required to perform an inspection of every unit on its portfolio over a 12-month period instead of a 24-month period, which resulted in numerous delays. This shift should allow for all our inspections to be completed timely. Metro Housing also faced problems in implementing the COVID-waiver issued by HUD to allow for self-certifications of units?namely, if the owner did not provide said waiver, our only recourse would have been to terminate the HAP Contract and force the tenant to move, which was not a course of action deemed appropriate by Metro Housing leadership given the circumstances. We do not anticipate that self-certifications will be implemented again, and so this process should not be a factor moving forward with our ability to meet program requirements. Anticipated Completion Date July 1, 2023 ? All inspections will be in compliance and on a biennial schedule.

Categories

HUD Housing Programs Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32252 2022-002
    Material Weakness
  • 32253 2022-001
    Material Weakness
  • 32254 2022-002
    Material Weakness
  • 32255 2022-001
    Material Weakness
  • 32256 2022-002
    Material Weakness
  • 608693 2022-001
    Material Weakness
  • 608694 2022-002
    Material Weakness
  • 608695 2022-001
    Material Weakness
  • 608696 2022-002
    Material Weakness
  • 608697 2022-001
    Material Weakness
  • 608698 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 Emergency Rental Assistance Program $219.29M
14.881 Moving to Work Demonstration Program $135.44M
14.871 Section 8 Housing Choice Vouchers $4.20M
21.019 Covid-19 Coronavirus Relief Fund $2.14M
14.241 Housing Opportunities for Persons with Aids $1.81M
14.228 Covid-19 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $595,788
14.181 Supportive Housing for Persons with Disabilities $563,073
14.267 Continuum of Care Program $167,245
14.881 Covid-19 Moving to Work Demonstration Program $14,913