Finding Text
Federal agency: U.S. Department of Housing and Urban Development
Federal program title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871/14.879
Federal Award Identification Number and Year: CA005/CA007 2022
Award Period: January 1, 2022 – December 31, 2022
Type of Finding:
• Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or specific requirement: Special Tests and Provisions-HQS Enforcement
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).
Condition: During the testing of the HCV tenant files, certain special provision compliance deficiencies were noted:
-1 instances where the re-inspections were not completed within 30 calendar days of the first failed inspection.
-2 instances where the housing authority failed to propery abate HAP payments after the second failed inspection.
Questioned costs: None
Context: Out of the 40 files tested, 3 contains errors as noted above.
Cause: The Authority failed to follow their HQS Enforcement procedures.
Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards.
Repeat Finding: This is a Repeat finding. (2021-004)
Recommendation: WE recommends 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 with the audit finding.