Finding 402797 (2023-001)

The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS). Additionally, 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). Type of Finding: Effect: The Authority is non-compliant with the federal regulations over this federal program. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to the HQS inspections as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with finding and recommendation above. Condition: During our audit, the Authority was unable to provide us with reliable support that the failed HQS inspections had been properly handled according the guidelines. Context: We selected a sample of 24 out of 240 failed inspections that occurred during the fiscal year. Out of the 24 samples selected, 6 (25%) of those lacked the proper documentation of a follow up for the failed inspection. Cause: Controls over compliance associated with the Authority's HQS inspections are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to the HQS inspections as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with finding and recommendation above.