Finding Text
HQS Enforcement
Finding Number: 2023-003
Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster
Federal Award Identification Number / Year: 2023
Federal Agency: U.S. Department of Housing and Urban Development
Compliance Requirement: Special Tests and Provisions, HQS Enforcement/Housing Quality Standards Inspections
Pass-Through Entity: N/A
Repeat Finding from Prior Audit? Yes
Prior Audit Finding Number: 2022-004
Noncompliance and Material Weakness
2 CFR § 982.404 provides that the owner must maintain the unit in accordance with HQS. If the owner fails to maintain the dwelling unit in accordance with Housing Quality Standards (HQS), the PHA must take prompt and vigorous action to enforce the owner obligations. PHA remedies for such breach of the HQS include termination, suspension or reduction of housing assistance payments and termination of the HAP contract. The PHA must not make any housing assistance payments for a dwelling unit that fails to meet the HQS, unless the owner corrects the defect within the period specified by the PHA and the PHA 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). The owner is not responsible for a breach of the HQS that is not caused by the owner, and for which the family is responsible (as provided in § 982.404(b) and § 982.551(c)). However, the PHA may terminate assistance to a family because of HQS breach caused by the family.
The Authority did not have HQS re-inspections completed within 30 calendar days for HQS inspection failures for 43 percent of inspection failures tested. Further, the Authority did not formally approve any related extensions. Failure to complete timely reinspections or approve extensions could result in dwellings not maintained in accordance with HQS.
The Authority should complete re-inspections within the required time frame or approve extensions.