Finding Text
Finding 2024-001: Tenant Files
Identification of the federal program: Assistance Listing Number 14.157—Supportive Housing for the Elderly, United Statements Department of Housing and Urban Development. Compliance Requirements: Eligibility. Type of Finding: Significant Deficiency.
Criteria: According to the U.S. Department of Housing and Urban Development (HUD) regulations and contractual agreements, it is required that housing inspections be conducted on an annual basis to ensure that units meet the necessary health, safety, and quality standards. Per the relevant regulation 24 CFR 982.405, housing authorities are required to conduct an annual inspection of each unit to assess its compliance with HUD's Housing Quality Standards (HQS). HUD Notice PIH 2019-19 also outlines the expectations and responsibilities for housing authorities regarding the frequency of inspections to ensure that units are maintained in a manner that complies with federal standards. Failure to comply with these regulations could lead to health and safety risks for residents and potential non-compliance with federal funding requirements..
Condition: During the 2024 audit of the tenant files, the auditors discovered that property management had not conducted the annual inspection of tenant units.
Cause: The Project did not successfully schedule or complete the annual tenant inspection within the designated timeframe due to limited staffing resources.
Effect or Potential: If the annual inspection is omitted, there is an increase risk that the units may not meet required minimum HUD standards regarding unit adequacy, safety, and sanitation.
Recommendation: We recommend the Project stay up to date with their annual tenant inspections to ensure compliance with HUD-required living standards.
Perspective: A sample of 16 tenant files was reviewed from the total population of 160. The review revealed a lack of evidence supporting the completion of the required annual inspections for the 2024 year. This finding was subsequently confirmed through communication with property management, indicating that the annual inspections for 2024 were not conducted for all units.
Questioned costs: N/A
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. The Managing Agent has, at its own expense, contracted with US Inspection Group to complete a full inspection of every unit before April 15, 2025. The Managing Agent has prepared a new internal tasking schedule for enhance tracking of unit inspections by the maintenance, management and executive teams. The Managing Agent will reinforce the critical importance of annual unit inspection during its annual Maintenance Conference and its annual Management Conference.
Auditor’s evaluation of the views of responsible officials: The Managing Agent’s response is appropriate to address the noncompliance that occurred.