Finding Text
Criteria - Housing assisted under the Shelter Plus Care Program must meet applicable housing quality standards (HQS) under 24 CFR Section 582.305. Before any assistance is provided on behalf of a participant, the nonfederal entity, or another entity acting on behalf of the nonfederal entity (other than the owner of the housing), must physically inspect each unit to ensure that the unit meets housing quality standards. Nonfederal entities must also inspect all units annually during the grant period to ensure that units continue to meet housing quality standards (24 CFR Section 582.305(a)). It is also the responsibility of the nonfederal entity to determine whether the rent
charged for the unit receiving assistance is reasonable in relation to rents being charged for comparable unassisted units. For SRO units, rents are calculated in accordance with 24 CFR section 882.805(d) (24 CFR section 582.305(b)).
Condition - The Authority did not perform an annual HQS inspection or rent reasonableness determination for 12 out of 21 units sampled for testwork.
Cause - The Authority’s procedures called for biennial inspections of properties.
Effect - The Authority was not in compliance with HQS inspection or rent reasonableness requirements of the program.
Questioned Costs - None identified.
Repeat Finding - This is a repeat of finding 2022-002.
Recommendation - We recommend the Authority update processes to ensure all properties are being inspected and a rent determination is being performed on at least an annual basis.
Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action taken.
(b) Action taken - HQS inspections of Shelter Plus Care properties will be performed on an annual basis.
(c) Planned implementation date of corrective action - Completed by September 30, 2024.