Finding Text
Federal agency: Housing and Urban Development
Federal program titles: Housing Voucher Cluster
Assistance Listing Number: 14.Vouch
Federal Award Identification Number and Year: AL001, 2021
Award Period: 7/1/2020 – 6/30/2021
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Condition: During the testing we noted three instances where the Authority did not properly abate an
assistance payment after the second failed inspection. In addition, the tenants passed inspection
reports and dates were missing and, therefore, could not verify if the payments were properly abated
for those units.
Questioned costs: $8,410
Criteria or specific requirement: For units under 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.
The PHA must inspect the unit leased to a family at least 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 sections 982.158(d) and 982.405(b)).
Context: There were 40 tenants tested in a statically valid sample. Of the 40 tenants, three inspections
contained exceptions from the prescribed controls resulting in noncompliance.
Effect: If the owner does not correct the cited HQS deficiencies within the specified correction period,
the PHA must abate HAP payments 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 within the specified correction period, the PHA must take prompt and vigorous action to
enforce the family obligations (24 CFR sections 982.158(d) and 982.404).
Cause: The Authority had staffing issues during the year and failed to provide adequate monitoring and
oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Repeat Finding: No
Recommendation: The Authority should implement additional controls related to monitoring timelines
and review and retention of tenant’s inspection. The support of abatement, inspection results should be
kept in the tenant file or centralized location. We recommend management should designate one
person to oversee the inspection process to ensure that all inspections are being performed in a timely
manner. Furthermore, management should ensure no HAP payments are issued for units that have not
passed HQS housing inspections.
Views of responsible officials: There is no disagreement.