Finding 502119 (2023-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-10-09
Audit: 324342
Organization: Jacksonville Housing Authority (TX)

AI Summary

  • Core Issue: Multiple discrepancies were found in tenant files for the Housing Choice Voucher Program, indicating ongoing compliance failures.
  • Impacted Requirements: Key forms and documentation, such as the 9886 form and income verification, were missing or incorrect, violating HUD regulations.
  • Recommended Follow-Up: The Housing Authority should create a compliance policy, review all tenant files, and ensure staff training on required documentation.

Finding Text

CFDA 14.871 Section 8 Housing Choice Vouchers Finding 2023-001 Housing Assistance Program Discrepancies (repeated from 12/31/2022 and 12/31/2021) Criteria- Several PIH notices and CFR's address compliance requirements within the Housing Choice Voucher Program; many discrepancies were noted during the review of tenant files. Condition- 8 tenant files were reviewed and the following discrepancies were noted: -4 of the 8 files did not have a 9886 form; Authorization for the Release of Information -3 of the 8 files did not have a Declaration of Section 214 status -2 of the 8 files did not have a lease -4 of the 8 files did not include rent reasonableness -5 of the 8 files did not include verification of assets -4 of the 8 files calculated income and wages incorrectly or lacked supporting documentation -some files had missing required forms like rent choice and Request for Tenancy Approval - 3 of the 8 files had incorrect Total Tenant Payment Questioned Cost- None Context- 24 CFR 982.451 addresses Signed HAP Contracts; 24 CFR 982.517 addresses utility allowances; other PIH notices, HUD handbooks, and CFR's address all other required forms. Effect- Tenant rents may be miscalculated, other notifications and documentations may be missing. Cause- Unknown Recommendation- The Housing Authority should implement a policy to ensure compliance with HUD regulations concerning the Administrative Plan for the Housing Assistance Program; the above discrepancies need to be addressed, and all tenant files should be reviewed for compliance. Additionally, all staff members should attend training to understand the compliance requirements of tenant files.

Corrective Action Plan

Corrective Action Plan Audit FYE 2023 Housing Assistance Program Discrepancies Finding: Discrepancies in tenant files, including missing forms (HUD-9886, Section 214 Status), Housing Assistance Payment (HAP) contracts, utility allowances, rent reasonableness, and asset verifications. Actions Taken: - Reviewed and corrected tenant files, ensuring all required documentation (HUD-9886, Section 214 forms) is present. - Rent reasonableness assessments have been updated for all relevant tenant files. - The utility allowance schedule was reviewed for 2023 in accordance with 24 CFR § 982.517. The review showed a change of less than 10% in utility costs. The utility allowance schedule was reviewed for 2024 and adjustments were made to maintain compliance. Future Actions: - File Review and Documentation: Conduct a full audit of tenant files to address missing forms and ensure compliance with all HUD regulations. Missing forms (e.g., HUD-9886) will be collected from tenants, and any discrepancies corrected. - Staff Training: Implement a comprehensive staff training program on file documentation and HUD compliance requirements. This will include sessions on rent calculations, utility allowances, and income verification. - Monthly Audits: Establish monthly internal audits to ensure ongoing compliance and rectify any future discrepancies promptly. Utility Allowances and Rent Reasonableness Finding: Utility allowances had not been reviewed in over three years, and discrepancies in rent reasonableness and utility allowances led to miscalculations in tenant payment obligations. Actions Taken: - The utility allowance schedule was reviewed for 2023 in accordance with 24 CFR § 982.517. The review showed a change of less than 10% in utility costs. The utility allowance schedule was reviewed for 2024 and adjustments were made to maintain compliance. - Rent reasonableness procedures were reviewed and updated to ensure that all tenants' rents are fair and consistent with current market rates. Future Actions: - Annual Utility Allowance Reviews: Continue to review utility allowances annually, ensuring compliance with HUD regulations and adjusting allowances when necessary. - Documentation: Maintain thorough records of rent reasonableness and utility allowance calculations to ensure compliance with HUD guidelines. SEMAP (Section Eight Management Assessment Program) Performance Finding: Previous audits revealed a low SEMAP score, indicating areas of non-compliance in key performance indicators. Actions Taken: - A corrective strategy for SEMAP indicators has been implemented, focusing on timely re- examinations, accurate rent calculations, and Housing Quality Standards (HQS) inspections. - Ongoing training has been provided to staff on SEMAP indicators to ensure improvement in future assessments. - 2022 SEMAP scores are "Standard." Future Actions: - SEMAP Re-assessments: Conduct quarterly internal SEMAP reviews to monitor compliance with key indicators. - Staff Training: Continue training staff on SEMAP performance metrics, particularly regarding timely re-certifications and inspections. - Quality Control: Implement a quality control process that includes random checks of tenant files and HQS inspection records. Finding: Inconsistent file documentation and procedural errors indicate a need for further staff training and improvements in administrative procedures. Actions Taken: - Staff training has been initiated to ensure all team members understand HUD regulations and file documentation requirements. - The Jacksonville Housing Authority website has been launched, including portals for tenants, landlords, and applicants, improving communication and service delivery. Future Actions: - Staff Education: Provide ongoing refresher courses to ensure staff remain compliant with HUD regulations and procedural updates. - Improved Administrative Procedures: Develop and implement a Standard Operating Procedures (SOP) manual that outlines key administrative tasks, including tenant file maintenance and compliance checks. - Resident Advisory Board: Actively recruit volunteers for the Resident Advisory Board to increase community engagement. Finding: Low utilization of vouchers due to limited available housing and participant eligibility issues. Actions Taken: - The Jacksonville Housing Authority has exceeded the goal of issuing 5 vouchers per month, issuing: - October: 5 vouchers - November: 6 vouchers - December: 9 vouchers - We added 5 new landlords in 2023 and opened our waiting list. Future Actions: - Landlord Recruitment: Continue to engage with landlords to increase housing availability and create a Landlord/Property Manager Advisory Board. - Voucher Utilization: Issue more vouchers as per HUD's recommendation and increase payment standards to 120% to make vouchers more competitive in the market when allowed. We have made significant strides in addressing the findings from the audit and will continue our efforts to ensure full compliance with HUD regulations. Our focus will remain on improving file documentation, tenant services, and program utilization while ensuring that Jacksonville Housing Authority operates efficiently and transparently. This Corrective Action Plan serves as our roadmap to address current audit findings, continue progress, and implement necessary changes to ensure sustainable program success.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1078561 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $833,390