Finding 375814 (2023-001)

Finding 2023-001 Special Test and Provisions – HQS Enforcement CFDA 14.871/14.879 Housing Voucher Cluster Criteria: Pursuant to 24 CFR Section 982.404, the owner must maintain the unit in accordance with Housing Quality Standards (“HQS”). As a condition of continued assistance, any non-life-threatening defects must be corrected within no more than 30 calendar days or any PHA-approved extension. Condition: For 1 of the 40 clients selected for testing, non-life-threatening defects were not corrected within 30 calendar days or within the PHA-approved extension. In addition, the HAP contract was not terminated timely. Cause: The Authority’s internal control procedures to ensure compliance with Federal Special Tests and Provisions – HQS Enforcement requirements were not operating as designed. Effect: The Authority was not in compliance with program’s Special Tests and Provisions – HQS Enforcement requirements and controls were not operating effectively. Questioned Costs: The amount of questioned costs is equal to two months of HAP payments at $272 per month. Recommendation: The Authority should ensure that any non-life-threatening defects are corrected within no more than 30 calendar days or any PHA-approved extension. The Authority should ensure controls operate effectively. Management’s Response: Management agrees with the finding and is implementing procedures to correct it. The Housing Authority agrees with the finding and is implementing procedures to correct it. Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all units are maintained in accordance with HQS Enforcement requirements.