Finding 369789 (2022-003)

Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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 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). In addition, all HCV units are required to be inspected annually. 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)). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Failed HQS Inspections Number of Instances -- Finding 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.