Finding Text
Housing Quality Standards Inspections for the HOME Program (Significant Deficiency ? Special Tests) Condition: During testing compliance with Housing Quality Standards requirements, it was noted that no inspections or reviews were performed during fiscal year 2022 for properties which received HOME funds and were within the period of affordability. Criteria: Per the HOME Program Compliance Supplement: 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, (b) every two years for projects containing five to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Cause: Required inspections were not completed during the fiscal year 2022 for properties within the period of affordability. Effect: ? Noncompliance with Housing Quality Standards requirements per Uniform Guidance and HUD. ? Providing funding to households or individuals that do not meet the continuing compliance requirements. ? Potential loss or reduction of federal funding in the future due to noncompliance. Isolated Instance or Systematic Problem: Systematic problem. Repeat of Finding in the Immediately Prior Audit (with Prior Year Audit Finding Number (where applicable)): No Recommendation: We recommend that the City implement a system to track required inspections on all properties that are within the period of affordability to ensure continuing compliance requirements are met.