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
Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion)
Criteria or specific requirement:
HQS Enforcement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control reinspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the Housing Choice Voucher Program Guidebook and the Authority's administrative plan, QC inspections must be performed on a HQS inspection that is no older than 3 months at the time of reinspection. 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 stop (abate) HAPs 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).
Condition/Context: During our testing of 25 files for HQS enforcement requirements, we noted the following in 6 files:
- 5 of 25 files tested had a failed inspection that was not followed up on within the required time frame (either 24 hours or 30 days depending on the severity of the failures).
- 6 out of 25 files tested where the Authority failed to process abatements for units that failed on the second inspection.
- 5 out of 25 files tested where the Authority failed to enforce the family obligations for units that failed on the second inspection.
The samples were statistically valid samples.
Questioned costs: $13,701
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-19VHDA S. 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 their Administrative Plan or HUD’s requirements over HQS enforcement.
Repeat Finding: No
Recommendation: We recommend the Authority review their process over HQS failed inspections to ensure they are following up timely on correction or properly abating HAP for the unit until correction.
Views of responsible officials: There is no disagreement with the audit finding.