Finding Text
Special Tests and Provisions: Housing Quality Standards – Significant
Deficiency
Federal Program
Project Based Rental Assistance 14.195
Grant Award No.
MN460010054
Federal Award Year
2024
Criteria
The PHA or owner must provide housing that is decent, safe, and sanitary. To achieve this end,
the PHA or owner must perform housing quality inspections at the time of initial occupancy and
at least annually thereafter to ensure that the units are decent, safe, and sanitary (24 CFR
sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323).
Condition
During our review of six tenant files, we noted the Corporation did not follow up on one failed
inspection in a timely manner. It was noted as of the date of the auditor’s testing, no follow up or
corrective action had occurred on the failed inspection.
Context
We reviewed a sample of 6 of the Corporation's 52 outstanding tenant files for Housing Quality
Standards requirements.
Questioned Costs
N/A
Effect
Inspected units may not have met Housing Quality Standards, which could result in housing
assistance payments being made for units that were not up to the Housing Quality Standards.
Cause
The Corporation noted a change in software caused confusion as to whether the failed
inspection had been corrected or not.
Repeat Finding
This is a repeat finding of 2023-001.
Recommendation
We recommend the Corporation review its quality control process over inspections.
Views of Responsible Officials
The Corporation is aware of the issue and has taken subsequent steps to ensure compliance
with the requirement.