Finding 555496 (2023-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-04-19

AI Summary

  • Core Issue: The Agency lacks proper internal controls for ensuring timely inspections and compliance with Housing Quality Standards (HQS).
  • Impacted Requirements: Failure to meet HQS leads to unauthorized HAP payments and non-compliance with federal regulations.
  • Recommended Follow-Up: Assign a dedicated person to oversee inspections and ensure no HAP payments are made for non-compliant units.

Finding Text

Criteria or Specific Requirement: Special Tests and Provisions-Housing Quality Standards Enforcement 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 abate HAP payments 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: The Agency did not have adequate internal controls designed to ensure that inspections were completed in accordance with HQS compliance requirements. Questioned Costs: None Context: During the testing of the HCV tenant files, certain special provision compliance deficiencies were noted in 4 of 40 files: -3 instances where the re-inspection was not completed and/or documented within 30 calendar days of the first failed inspection. -1 instance where the file did not contain documentation of the repairs have been made. -2 instances where the Agency failed to properly abate HAP payments after the second failed inspection. -1 instance where the Agency did not enforce its Administrative Plan-family obligations for tenant noncompliance. -1 instance where the file did not contain documentation showing the Agency provided landlord and tenant a notice of fail inspection. Cause: The Authority failed to follow their HQS Enforcement procedures. Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards. Repeat Finding: Yes, 2022-005 Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 555491 2023-002
    Material Weakness Repeat
  • 555492 2023-002
    Material Weakness Repeat
  • 555493 2023-002
    Material Weakness Repeat
  • 555494 2023-003
    Significant Deficiency Repeat
  • 555495 2023-003
    Significant Deficiency Repeat
  • 555497 2023-004
    Significant Deficiency
  • 555498 2023-004
    Significant Deficiency
  • 555499 2023-005
    Significant Deficiency Repeat
  • 555500 2023-006
    Significant Deficiency
  • 555501 2023-007
    Material Weakness
  • 555502 2023-007
    Material Weakness
  • 555503 2023-008
    Significant Deficiency Repeat
  • 555504 2023-008
    Significant Deficiency Repeat
  • 555505 2023-008
    Significant Deficiency Repeat
  • 555506 2023-008
    Significant Deficiency Repeat
  • 555507 2023-008
    Significant Deficiency Repeat
  • 555508 2023-008
    Significant Deficiency Repeat
  • 555509 2023-008
    Significant Deficiency Repeat
  • 555510 2023-008
    Significant Deficiency Repeat
  • 555511 2023-008
    Significant Deficiency Repeat
  • 555512 2023-009
    Significant Deficiency
  • 555513 2023-009
    Significant Deficiency
  • 555514 2023-010
    Significant Deficiency
  • 555515 2023-010
    Significant Deficiency
  • 555516 2023-010
    Significant Deficiency
  • 1131933 2023-002
    Material Weakness Repeat
  • 1131934 2023-002
    Material Weakness Repeat
  • 1131935 2023-002
    Material Weakness Repeat
  • 1131936 2023-003
    Significant Deficiency Repeat
  • 1131937 2023-003
    Significant Deficiency Repeat
  • 1131938 2023-003
    Significant Deficiency Repeat
  • 1131939 2023-004
    Significant Deficiency
  • 1131940 2023-004
    Significant Deficiency
  • 1131941 2023-005
    Significant Deficiency Repeat
  • 1131942 2023-006
    Significant Deficiency
  • 1131943 2023-007
    Material Weakness
  • 1131944 2023-007
    Material Weakness
  • 1131945 2023-008
    Significant Deficiency Repeat
  • 1131946 2023-008
    Significant Deficiency Repeat
  • 1131947 2023-008
    Significant Deficiency Repeat
  • 1131948 2023-008
    Significant Deficiency Repeat
  • 1131949 2023-008
    Significant Deficiency Repeat
  • 1131950 2023-008
    Significant Deficiency Repeat
  • 1131951 2023-008
    Significant Deficiency Repeat
  • 1131952 2023-008
    Significant Deficiency Repeat
  • 1131953 2023-008
    Significant Deficiency Repeat
  • 1131954 2023-009
    Significant Deficiency
  • 1131955 2023-009
    Significant Deficiency
  • 1131956 2023-010
    Significant Deficiency
  • 1131957 2023-010
    Significant Deficiency
  • 1131958 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $181.61M
14.239 Home Investment Partnerships Program (beginning Loan Balance) $127.26M
21.023 Covid-19 Emergency Rental Assistance $27.09M
14.218 Community Development Block Grants/entitlement Grants (beginning Loan Balance) $20.19M
14.239 Home Investment Partnerships Program (entitlements) $11.59M
14.850 Public and Indian Housing $10.07M
14.218 Community Development Block Grants/entitlement Grants (entitlements) $8.96M
14.218 Neighborhood Stabilization Program 1 (beginning Loan Balance) $8.10M
14.239 Home Investment Partnerships Program (program Income) $7.80M
14.872 Public Housing Capital Fund $7.68M
14.871 Emergency Housing Vouchers $6.91M
14.267 Continuum of Care Program $5.57M
14.218 Community Development Block Grants - Section 108 Loans (beginning Loan Balance) $5.50M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $4.50M
14.231 Covid-19 Emergency Solutions Grant Program Cares Act $4.41M
14.218 Covid-19 Community Development Block Cares Act -Cv1 and Cv3 $4.27M
14.879 Mainstream Vouchers $2.82M
14.889 Choice Neighborhoods Implementation Grants $2.45M
14.241 Housing Opportunities for Persons with Aids (entitlements) $2.10M
14.218 Community Development Block Grants - Section 108 Loans $1.39M
14.231 Emergency Solutions Grant Program $911,431
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $353,153
14.218 Community Development Block Grants/entitlement Grants (program Income) $221,961
14.870 Resident Opportunity and Supportive Services - Service Coordinators $211,042
14.218 Neighborhood Stabilization Program 3 (program Income) $163,955
66.814 Epa Brownfield $155,454
14.896 Ph/hcv Family Self-Sufficiency Program $150,129
14.900 Lead Based Paint $133,507
14.896 Ph Family Self-Sufficiency Program $96,064
14.241 Covid-19 Housing Opportunities for Persons with Aids Cares Act $7,612
14.218 Neighborhood Stabilization Program 3 (entitlements) $1,086
14.241 Housing Opportunities for Persons with Aids (program Income) $167