Finding 528656 (2024-001)

Program Name Housing Choice Voucher Internal Control Significant Deficiency N Special Test and Provisions AL Number 14.871 2024-001 Housing Quality Standards Inspection/HQS Enforcement Questioned Costs None Criteria The PHA must inspect the unit leased to a family at least bi-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 §§982.405, 983.103)). Additionally, 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 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). Condition During our audit, we identified three (3) failed HQS that did not receive a pass within the appropriate timeframe and no rent abetment process was started or enforced during that time period. Context The HQS population was 316 failed inspection. We selected a sample of 25 inspection and identified of those 25 reviewed 3 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The Authority relies on an outside vendor to perform timely HQS inspections and follow their admin plan. The outsourced vendor performing the HQS inspections were not aware of the Authority's policies regarding a life threatening fail, therefore causing the Authority to be out of compliance. Effect The Authority is non‐compliant with their approved Administrative Plan, this could potentially result in operating and financial penalties. Recommendations We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Management Views Management agrees with the finding, see Management's Corrective Action Plan.