Finding 44065 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-05

AI Summary

  • Core Issue: HQS inspections were not completed on time, violating HUD standards for tenant enforcement and landlord abatement.
  • Impacted Requirements: Compliance with HUD's Housing Quality Standards for inspections every 24 months and timely enforcement actions for failed re-inspections.
  • Recommended Follow-Up: Implement controls to ensure timely HQS inspections and enforce actions for failed re-inspections; monitor progress with the new tracking system.

Finding Text

Program: Section 8 Choice Vouchers Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements. Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections. Questioned Cost: Not applicable. Context: HQS inspections are required every 24 months. HQS tenant enforcement and/or landlord abatement is required for tenants with failed HQS re-inspections. Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements. Cause: Sampling was statistically valid and a systemic problem. Prior Year Finding: This is a new finding in 2022. Recommendation: It is recommended that the Redevelopment Authority integrates the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections. Management?s Response: Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023.

Corrective Action Plan

Audit Finding Number: 2022-001 Housing Quality Standards Inspections & Enforcement Agency: Department of Housing and Urban Development Responsible Person, Title: Dave Dunn, Housing Director Completion date: 05/02/2023 Agency Response: Concur Corrective Action Plan: The PHA?s HQS enforcement sample of case files with failed HQS inspections shows that HQS deficiencies were not corrected within the required time frame, the PHA did not stop housing assistance payments beginning no later than the first of the month following the correction period, or take prompt and vigorous action to enforce the family obligations for: X Less than 98% of cases sampled Staff had not been identifying units that should be in abatement during the COVID temporary regulatory changes in 2020 and 2021. We continued the COVID regulatory system in 2022 due to being short staffed, thus not earning the points. Moving forward we are abating payments to owners when the units do not pass property inspections in a timely manner. In addition, we have created a tracking system to track daily work tasks to ensure that all failed HQS inspections are followed up on, and abatements occur when necessary. This has been in action since February 2023. The PHA?s annual HQS inspection sample of case files shows that more than 10% of all annual HQS inspections are more than two months past due. Staff had not recognized the current housing software system was not pulling inspections correctly in the system. Back in 2021, the PHA began performing biennial inspections versus annually. Staff advised our software company of this change but a glitch in the system did not allow for all inspections to be pulled correctly. Staff are currently performing these missed inspections. Additionally, we are transitioning to an upgraded software system where the ?biennial? option will be set up in the system manually by both PHA staff and software system staff and tested during the transition.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 44066 2022-001
    Material Weakness
  • 44067 2022-001
    Material Weakness
  • 620507 2022-001
    Material Weakness
  • 620508 2022-001
    Material Weakness
  • 620509 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $716,204
14.181 Supportive Housing for Persons with Disabilities $647,200
14.879 Mainstream Vouchers $628,982
14.231 Emergency Solutions Grant Program $353,333
14.850 Public and Indian Housing $339,222
14.267 Continuum of Care Program $326,482
14.872 Public Housing Capital Fund $121,344
10.427 Rural Rental Assistance Payments $35,155
14.149 Rent Supplements_rental Housing for Lower Income Families $22,082
10.415 Rural Rental Housing Loans $20,290