Finding 586084 (2023-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-01-24
Audit: 13310
Organization: Detroit Housing Commission (MI)

AI Summary

  • Core Issue: Incomplete participant files were found, lacking necessary income documentation to determine accurate rental assistance levels.
  • Impacted Requirements: The Commission is not fully complying with federal regulations requiring annual verification of income eligibility for housing assistance.
  • Recommended Follow-Up: Implement procedures for accurate annual eligibility reviews and conduct regular internal audits of tenant files to catch errors early.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal

Categories

HUD Housing Programs Eligibility Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 9634 2023-001
    Material Weakness Repeat
  • 9635 2023-002
    Material Weakness Repeat
  • 9636 2023-003
    Significant Deficiency
  • 9637 2023-001
    Material Weakness Repeat
  • 9638 2023-002
    Material Weakness Repeat
  • 9639 2023-003
    Significant Deficiency
  • 9640 2023-001
    Material Weakness Repeat
  • 9641 2023-002
    Material Weakness Repeat
  • 9642 2023-003
    Significant Deficiency
  • 586076 2023-001
    Material Weakness Repeat
  • 586077 2023-002
    Material Weakness Repeat
  • 586078 2023-003
    Significant Deficiency
  • 586079 2023-001
    Material Weakness Repeat
  • 586080 2023-002
    Material Weakness Repeat
  • 586081 2023-003
    Significant Deficiency
  • 586082 2023-001
    Material Weakness Repeat
  • 586083 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $49.71M
14.850 Public and Indian Housing $17.87M
14.872 Public Housing Capital Fund $11.20M
14.879 Mainstream Vouchers $654,926
14.870 Resident Opportunity and Supportive Services - Service Coordinators $352,408
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $298,013
14.895 Jobs-Plus Pilot Initiative $281,008
17.274 Youthbuild $196,777
14.871 Covid-19 - Section 8 Housing Choice Vouchers $96,017