Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871/14.879/14.EHV
Federal Award Identification Number and Year: VA901; 2022-2023
Award Period: July 1, 2022 through June 30, 2023, VA901
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: 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)). Per the Authority's Administrative Plan, all units must pass an HQS inspection prior to the approval of a lease and at least once every 12 months during the term of the contract, and at other times as needed, to determine that the unit meets HQS (Chapter 8 of the Admin Plan).
Condition/Context: During our testing of 40 files for annual HQS inspection requirements, we noted the following in 5 files:
- 5 of 40 files tested had inspections that were not performed annually.
During our testing of 25 quality-control inspections, we noted the following in 2 files:
- 2 of 25 files tested had a QC inspection that was performed more than 90 days after the initial inspection.
The samples were statistically valid samples.
Questioned costs: None
Cause: As a balance of state PHA, the Authority is responsible for ensuring the Housing Choice Voucher (HCV) program is administered in compliance with Federal regulations across Virginia. The Authority has partnered with 29 local housing agencies (LHAs) throughout the state to administer the program. Due to the number of LHAs there are inconsistencies among agencies on quality control practices. LHA’s differ in size, staffing patterns, geographic service area, and overall capacity to operate the program. In addition to these differences, the Authority and its partner agencies are still recovering from the lingering impacts of COVID-19. Staff turnover and retention have contributed to challenges in quality control practices. The Authority has actively worked to improve the HCV Program by taking a methodical approach, making intentional decisions about program improvements while balancing the need to make changes quickly to ensure compliance with federal regulations.
Effect: The Authority is not in compliance with the HQS requirements set forth in the administrative plan.
Repeat Finding: No
Recommendation: We recommend the Authority review their processes over annual and qualitycontrol inspections to ensure they are completed timely and in compliance with HUD’s requirements.
Views of responsible officials: There is no disagreement with the audit finding.