Finding Text
Finding No. 2023-004; Federal Assistance Listing Number 14.239
Criteria
The owner did not ensure passing HQS unit inspections were performed during 2023.
Condition
During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenant-based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)).
Cause
Management did not perform HQS unit inspections during 2023.
Effect or Potential Effect
Housing units may be out of compliance with HUD Housing Quality Standards..
Questioned Costs
N/A
Context
In connection with the procedures applied to tenant file testing there were 3 instances of the 3 files tested where the passing HQS inspections were not performed during the year ended December 31, 2023.
Identification as a Repeat Finding
No
Recommendation
Management should make sure all units meet the HUD Housing Quality Standards.
Auditor Noncompliance Code: N- Special tests and provisions for Uniform Guidance
Z - Other
Finding Resolution Status: Unresolved
Views of Responsible Officials and Planned Corrective Actions:
REACH has policies in place to ensure that HQS inspections are done in a timely manner. Staffing shortages at the property had an impact on the completion of HQS inspections in 2023. As new staff are brought onboard training is provided and additional training will be provided to on-site staff to ensure that the inspections are being completed and properties are in compliance.