Finding 51969 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-09-21

AI Summary

  • Core Issue: The Commission failed to properly abate Housing Assistance Payments (HAP) for units that did not meet Housing Quality Standards (HQS) after inspections.
  • Impacted Requirements: The Commission did not follow HUD guidelines requiring timely correction of deficiencies, leading to non-compliance.
  • Recommended Follow-Up: Review and update abatement procedures to ensure compliance with HQS standards and enforce tenant obligations effectively.

Finding Text

2022-004 ? HQS Failed Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2022 Award Period: 1/1/2022-12/31/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters 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 stop (abate) HAPs beginning no later than the first of the month following the specified incorrect period or must terminate the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition: We noted that the Commission did not properly abate HAP for landlords in which units failed inspections. Questioned costs: $69,944 Context: During our testing of 40 files for HQS enforcement, we noted the following: 10 of 40 units tested failed inspection due to owner responsibilities and the Commission never abated HAP. 5 of 40 units tested failed due to tenant responsibilities and the Commission did not take proper steps to enforce family obligations. Cause: The Commission did not follow established procedures in their Housing Choice Voucher Administrative Plan or as required by HUD. Effect: The Commission is not in compliance with HUD requirements. Repeat finding: No Recommendation: We recommend the Commission review their abatement procedures to ensure any unit that has not met the HQS standards is properly abated as well as review their procedures for enforcing correction of deficiencies to tenants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Corrective Action Plan

2022-004 Housing Choice Voucher Program ? FALN No. 14.871 Recommendation: We recommend the Commission review their abatement procedures to ensure any unit that has not met the HQS standards is properly abated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The following actions are currently taking place to ensure abatement procedures are met when required due to failed inspections: ? The HCHC will ensure that its third-party HQS inspectors provide data on all fails that require abatement. To achieve this, the third-party inspection company has created a working document that will be updated twice a week with units that have failed twice and are recommended for abatement. The document will be shared with the Commission after each update. ? The assigned HCV Specialist will notify the landlord and tenant of the failed inspection and specific deficiencies that must be corrected. ? The assigned HCV Specialist will ensure that the third-party inspection company re-inspects to verify that the repairs have been completed and meet HQS standards. ? If the landlord fails to make the repairs by the established deadline, the HCHC will initiate abatement procedures by withholding or reducing housing assistance payments (HAP) once the unit passes inspection. The Director and Program Manager will review the inspection reports and initiate abatement. ? The assigned HCVP Specialist will provide the tenant with information and assistance to find alternative housing, such as issuing a new voucher, extending the search time, or offering relocation expenses. ? The HCHC will terminate the HAP contract with the landlord if the unit remains abated for more than 180 days or if the landlord fails to comply with other contractual obligations. The Director of Rental Assistance and the Program manager will review all recommended abatements monthly to determine who will be terminated from the HCV program. We will review all Yardi reports and the recommended abatement spreadsheet from the third-party inspector. Name(s) of the contact person(s) responsible for corrective action: Paul Diggs, Director of HCVP Planned completion date for corrective action plan: December 31, 2023

Categories

Questioned Costs HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51966 2022-001
    Significant Deficiency
  • 51967 2022-002
    Material Weakness
  • 51968 2022-003
    Material Weakness
  • 51970 2022-001
    Significant Deficiency
  • 51971 2022-002
    Material Weakness
  • 51972 2022-003
    Material Weakness
  • 51973 2022-004
    Significant Deficiency
  • 628408 2022-001
    Significant Deficiency
  • 628409 2022-002
    Material Weakness
  • 628410 2022-003
    Material Weakness
  • 628411 2022-004
    Significant Deficiency
  • 628412 2022-001
    Significant Deficiency
  • 628413 2022-002
    Material Weakness
  • 628414 2022-003
    Material Weakness
  • 628415 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $22.73M
14.879 Mainstream Vouchers $1.19M
21.023 Covid-19 - Emergency Rental Assistance Program $450,587
14.218 Community Development Block Grants/entitlement Grants $326,222
14.241 Housing Opportunities for Persons with Aids $250,315
14.896 Family Self-Sufficiency Program $67,165