Finding Text
Finding Reference: 2024-004
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 8 Housing Choice Vouchers
Federal Catalog Number: 14.871
Federal Grant Number: Not Applicable
Category of Finding: Special Tests and Provisions - HQS Enforcement
Classification of Finding: Significant Deficiency in Internal Control over Compliance
Instance of Noncompliance
Criteria
Pursuant to 24 CFR 982.404(a)(3), the Authority must not make any housing assistance payments (HAP) for a dwelling unit that fails to meet the housing quality standard (HQS), unless the owner corrects the defect within the period specified by the Authority and the Authority verifies the correction. If a defect is life threatening, the owner must correct the defect within no more than 24 hours. For other defects, the owner must correct the defect within no more than 30 calendar days (or any PHA-approved extension). Furthermore, 24 CFR 982.404(b)(2) states that if an HQS breach caused by the family is life threatening, the family must correct the defect within no more than 24 hours. For other family-caused defects, the family must correct the defect within no more than 30 calendar days (or any PHA-approved extension).
Condition
Of the total of 5,989 tenants with failed inspections during the fiscal year, we identified eight cases in a statistically valid sample of 60 failed inspections in which the Authority did not perform follow-up inspections within the required timeframe and was not able to provide evidence showing that a PHA approved extension was granted.
Cause of Condition
The Authority did not have adequate controls in place to ensure that the HQS are being enforced or completed in a timely manner.
Effect
The Authority is not in compliance with the HQS enforcement requirements, which may result in tenants living in unsafe housing units. In addition, the Authority may be paying HAPs to property owners whose units have inadequate housing quality or may be incorrectly withholding HAPs to landlords who have properly corrected deficiencies within the required timeframes.
Questioned Costs
The Authority was able to provide documentation showing that the units were inspected after the required time frames and ultimately passed inspection. Therefore, questioned costs were not identified in connection with the units examined.
Identification of Repeat Finding
This is a repeat of finding 2023-003 reported for the year ended September 30, 2024.
Recommendation
The Authority should continue to develop procedures and strengthen its internal controls related to HQS enforcement to ensure that follow ups on failed inspections are performed timely.
View of Responsible Officials and Planned Corrective Action
See separately prepared Corrective Action Plan.