Finding 524717 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-27
Audit: 344146
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: The Commission failed to ensure timely correction of life-threatening Housing Quality Standards (HQS) deficiencies and did not abate housing assistance payments (HAP) as required.
  • Impacted Requirements: Compliance with 24 CFR 982.158 and 982.404, which mandate correction of deficiencies within 30 days and abatement of HAP if not corrected.
  • Recommended Follow-up: Establish clear procedures for enforcing and documenting timely corrections of HQS deficiencies, and conduct regular quality control reviews to ensure compliance.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 14.871 and 14.879 - Housing Vouchers Cluster Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Finding Type - Significant deficiency Repeat Finding - No Criteria - Under 24 CFR 982.158 and 982.404, the Commission must require the owner to correct any life threatening Housing Quality Standards (HQS) deficiencies within 30 calendar days or within a specified commission approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Commission must stop (abate) the HAP. Condition - The Commission was not able to provide support the units that had HQS deficiencies were corrected timely, and the Commission did not abate the housing assistance payments (HAP) for units that failed HQS inspections. Questioned Costs - Not applicable Context - A total of 10 inspections were tested, and the results are as follows: A total of four files did not include documentation that the HQS deficiencies were corrected within 30 days, and the housing assistance payment was not abated. Cause and Effect - The Commission did not have the proper controls in place to ensure that the HQS deficiencies were properly enforced. Due to the lack of adequate controls, the support that the HQS deficiencies were corrected was not maintained. Recommendation - The Commission should establish procedures to ensure inspection deficiency corrections are enforced and documented timely. Views of Responsible Officials and Planned Corrective Actions - Contractor has been selected and trained in Yardi Systems. The landlord liaison supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with program regulatory requirements. The landlord liaison supervisor along with Yardi monitoring will conduct 10 percent quality control reviews to ensure contractor is following HUD compliance guidelines, as they pertain to abatement activity.

Corrective Action Plan

Condition: The Commission was not able to provide support the the units that had HQS deficiencies were corrected timely and the Commission did not abate the Housing Assistance Payments (HAP) for units that failed HQS Inspections. Planned Corrective Action: Contractor has been selected, and trained in Yardi Systems. The Landlord liaison Supervisor will work closely with the new contractor to ensure abatements are conducted timely and in compliance with Program regulatory requirements. The Landlord liaison Supervisor along with Yardi monitoring will conduct 10% Quality Control reviews to ensure contractor is following HUD compliance guidelines as it pertains to abatement activity. Contact person responsible for corrective action: Felicia Burris, HCV Program Director Anticipated Completion Date: 6/30/2025

Categories

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 524718 2024-002
    Significant Deficiency
  • 524719 2024-002
    Significant Deficiency
  • 524720 2024-003
    Significant Deficiency Repeat
  • 524721 2024-003
    Significant Deficiency Repeat
  • 524722 2024-003
    Significant Deficiency Repeat
  • 524723 2024-004
    Material Weakness
  • 524724 2024-004
    Material Weakness
  • 524725 2024-004
    Material Weakness
  • 524726 2024-001
    Material Weakness
  • 1101159 2024-002
    Significant Deficiency
  • 1101160 2024-002
    Significant Deficiency
  • 1101161 2024-002
    Significant Deficiency
  • 1101162 2024-003
    Significant Deficiency Repeat
  • 1101163 2024-003
    Significant Deficiency Repeat
  • 1101164 2024-003
    Significant Deficiency Repeat
  • 1101165 2024-004
    Material Weakness
  • 1101166 2024-004
    Material Weakness
  • 1101167 2024-004
    Material Weakness
  • 1101168 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $50.19M
14.850 Public Housing Operating Fund $19.09M
14.872 Public Housing Capital Fund $13.57M
14.871 Covid-19 - Section 8 Housing Choice Vouchers $1.39M
14.879 Mainstream Vouchers $688,076
14.870 Resident Opportunity and Supportive Services - Service Coordinators $435,416
17.274 Youthbuild $415,982
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $328,290
14.895 Jobs-Plus Pilot Initiative $211,508