Finding Text
Statement of Condition
The property management did not complete the required annual inspections for tenant units and common areas during the fiscal year as stipulated under HUD regulations.
Criteria
HUD Handbook 4350.3, Chapter 6, and 24 CFR Part 5, Section 5.703, property owners are required to conduct annual physical inspections of all units and common areas to ensure compliance with HUD's Uniform Physical Condition Standards (UPCS).
Effect or Potential Effect
Without timely inspections, there is a risk that units and common areas may not meet HUD's physical condition standards, which can result in health and safety hazards for tenants.
Cause
The failure to complete the required inspection was due to personnel turnover.
Recommendation
Management should implement a formal process to ensure annual inspections were conducted and documented in a timely manner. This should include assigning a dedicated staff member to oversee the scheduling, execution, and follow-up of inspections, along with maintaining an organized record of inspection results.
Management’s Action
Management has resumed inspections.
Status
Finding closed – management resumed inspections effective January 2024.