Finding Text
Criteria: Federal regulations (24 CFR section 982.404) states a Public Housing Agency (PHA) must verify
that an owner has corrected any life threatening issue found during a Housing Quality Standard
(HQS) inspection within no more than 24 hours. For other defects, the PHA must verify the owner
corrected the defect within no more than 30 calendar days (or any PHA approved extension). The
PHA must not make any housing assistance payments for a dwelling unit that fails to meet the
HQS, unless the owner correct the defect with in the period specified by the PHA and the PHA
verifies the corrections.Condition: We noted that the PHA identified defects during annual HQS inspections which require corrective
action within 30 calendar days following the discovery of such conditions. However, the PHA was
unable to provide documentation that it reinspected the dwelling residences to confirm corrective
action had taken place within the correct corrective period.
Context: During our testing, we noted that 4 out of 18 failed inspections reviewed did not receive a
reinspection with 24 hours or 30 days. With 181 total failed inspections, the extrapolated error
amount would be 40 inspections.
Cause: The Authority failed to properly monitor the HQS process to ensure the PHA's reinspection
policies were being followed.Effect: The Authority is non-compliant with the federal regulations over this federal program, this could
potentially result in significant operating and financial penalties.
Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with
regulations relative to these grants as well as maintaining more accurate and complete
documentation of adherence to compliance.
Management Views: Management Agrees; See Management's Corrective Action Plan.