Finding 537638 (2024-003)

Program Name Housing Choice Voucher "Internal Control" Significant Deficiency N Special Test and Provisions ALN 14.871 2024-003 Housing Quality Standards Inspection/HQS Enforcement (Repeat Finding Original 2023-003) 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 four (2) failed HQS with life-threating failes that did not receive a pass within the required 24 hour time frame. Context The HQS population was 135 failed inspection. We selected a sample of 15 inspection and identified of those 15 reviewed 2 did not obtain a re-inspection pass within the Criteria noted above and no rent abetment process was enforce on landlord. Cause The Authority staff did not want to jeopardize the tenants lease by enforcing the rent abatements and rather worked with the landlord over an extend period to resolve the failed inspection issues. Effect The Authority is non‐compliant with the federal regulations over this federal program, 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.