FAC Explorer

Finding 398588 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-28
Audit: 307329
Organization: Scranton Housing Authority (PA)
Auditor: Jump Perry and Company LLP

AI Summary

  • Core Issue: The PHA failed to properly abate Housing Assistance Payments (HAP) after a unit inspection failure, resulting in duplicate payments to the landlord.
  • Impacted Requirements: Compliance with 24 CFR Sections 982.404 and 982.405 regarding timely correction of Housing Quality Standards (HQS) deficiencies.
  • Recommended Follow-Up: Strengthen controls over the review process for failed unit inspections, focusing on abatement and payment procedures.

Finding Text

III. Federal Award Findings and Questioned Costs Reference Number 2023-001 Finding Questioned Costs None Federal Program Information: Housing Choice Vouchers, FALN 14.871 Program year 2023, U.S. Department of Housing and Urban Development Criteria: In accordance with 24 CFR Sections 982.404 and 982.405, 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 HAPS beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Statement of Condition: In our sample of 5 failed unit inspections, we noted one instance in which the tenant moved out after the unit failed inspection and subsequently a new tenant moved in and the PHA did not properly abate the HAP resulting in the landlord being paid for both tenants. Statement of Cause/Possible Asserted Effect: The instance above was a result of the controls to abate the HAP were not operating effectively. Questioned Costs: The landlaord was paid two additional HAP payments. There were no questioned costs associated with this instance. Recommendation: The Authority should strenghten controls over its review process regarding HQS failed units, including abatement and payment procedures. Views of Responsible Officials: Management agrees with this finding. 34

Corrective Action Plan

V. Action Plan The contact person at the Authority is Karl Lynott, Executive Director Scranton Housing Authority 400 Adams Avenue Scranton, Pennsylvania 18510 Current year findings and questioned costs Finding 2023-001: The Authority reviewed and agrees with the finding related to the abatement of HAP payments. The Authority has implemented procedures to support the IPA’s recommendation. When a landlord fails to correct HQS deficiencies within thirty calendar days, the housing inspector will notify the Executive Director in writing by copying the Executive Director on the letter currently sent to the landlord and tenant notifying them of termination from the program. The Executive Director will then verify with the Section 8 Coordinator that no HAP check is being sent to the landlord for the failed property. Regarding the audit finding in question, the landlord has paid back the money owed to the Authority.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.850 Low Rent Public Housing $8.07M
14.871 Housing Choice Vouchers $5.73M
14.872 Public Housing Capital Fund Program $2.71M