Finding Text
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: FL013, 2023
Award Period: January 1, 2023 to December 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 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 abate HAP payments 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). In addition, all HCV units are required to be inspected annually.
The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below:
Number of Instances -- Finding
7 -- Repairs not completed within the required correction period of 30 days.
4 -- Unit was not properly abated.
Questioned Costs: $992
Context: Of the 18 tenant files tested, 8 tenant files contained the errors as noted above.
Cause: The Authority’s internal controls did not to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority is not in compliance with federal regulations regarding housing quality standards and quality control inspection requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and unit the compliance deficiencies have been corrected.
Views of responsible officials: There is no disagreement.