Finding Text
Finding 2022-004 - HUD Compliance Monitoring Review (Material Noncompliance applicable to Major Program Cluster, Material Weakness applicable to Major Program Cluster, Noncompliance/Other Matter applicable to Non-Major Program) Public Housing Program ? Assistance Listing No. 14.850a; Housing Choice Voucher Cluster ? Assistance Listing Nos. 14.871, 14.879 and 14.EHV; Grant period ? Year-End December 31, 2022 Criteria The Code of Federal Regulations (CFR?s) and HUD PIH Notices and Handbooks provide requirements and guidance for which the Public Housing and Section 8 Housing Choice Voucher Programs are to be administered and operated under. Condition and Perspective In May of 2023, HUD conducted a Compliance Monitoring Review of the Housing Authority?s Public Housing and Section 8 Housing Choice Vouchers Programs. The remaining results of the Review included the following Findings: Finding #1 (Governance): The Housing Authority?s Annual PHA Plan was received after the due date. Finding #2 (HCV): The Housing Authority incorrectly calculated tenant rent and HAP amounts. Income was miscalculated for four out of 10 participant files reviewed, resulting in an incorrect payment of either the tenant's portion or HAP to owner. Finding #3 (HCV): The Housing Authority Specialist used incorrect utility allowance amounts, when compared to the Request for tenancy approval booklet (RAFTA) and HAP contract, resulting in incorrect tenant and HAP payments. Finding #4 (HCV): The Housing Authority does not have a process or policy for promptly responding to children with elevated blood lead levels (EBLL). Finding #5 (HCV): The Housing Authority does not educate landlords of target housing on the requirements for Lead Safe Housing Rule compliance, including responding to children with EBLLs and obtaining clearance before occupancy and after performing hazard control. Target housing means any housing constructed prior to 1978, except housing for the elderly or persons with disabilities (unless any child who is less than six years of age resides or is expected to reside in such housing) or any zero-bedroom dwelling. The following documents were not found in the file reviewed: lead based paint disclosure, lead hazards pamphlet, EBLL Guidance to landlord, Visual Assessment, or documentation of exemptions from the Lead Safe Housing Rule. Finding #6 (HCV): The Housing Authority does not require evidence of citizenship or eligible immigration status of all participants prior to determining eligibility for financial assistance. While conducting tenant file reviews, we identified three out of ten participants that were missing supportive documentation of citizenship. Finding #7 (HCV): The Housing Authority did not conduct Housing Quality Standard (HQS) inspections timely. Supporting documentation for the Housing Authority?s Section Eight Management Assessment Program (SEMAP) certification showed that HQS quality control inspections (Indicator 12) had not been conducted since 2021, however, the Housing Authority rated their 2022 SEMAP current on all HQS Inspections. Finding #8 (HCV): The Housing Authority does not have any Violence Against Women Act (VAWA) certification forms in participant files. An interview with the Housing Director confirmed that the HCV program does not include VAWA information in their application packet. Finding #9 (PH): The Housing Authority did not always properly verify family income. Two of the 15 sampled files were missing supporting documentation to confirm the family income listed on the rent calculation sheet. Finding #10 (PH): Tenant rent is not calculated correctly in six of 15 sampled files. Several rent calculation discrepancies were identified, including miscalculation of income, incorrect medical deductions, and missing income verification documentation. Two participants were overcharged and require repayment. Finding #11 (PH): The Housing Authority does not have a written policy for Individual Relief of utility allowance, however an interview with the Executive Director identified they are carrying out the activities. Finding #12 (PH): The Housing Authority is not in compliance with Lead Based Paint (LBP) requirements for target housing. The Authority was unable to provide any lead-based paint inspection reports for any target housing built before 1978. An abatement report was provided for Pine Ridge Manor, but no clearance inspection record was provided. Approximately half of tenant files included lead paint disclosures. Finding #13 (PH): The Housing Authority is not fully implementing its procurement policy. The energy conservation measures installation contract with Murray and Sons was awarded non-competitively based on a single bid but was not done in accordance with the Housing Authority procurement policy Section III E 2 nor did it receive HUD approval as outlined in the HUD Handbook 7460.8 Rev 2 Chapter 12 dated February 2007. The Housing Authority did not provide documentation demonstrating that they met any criteria for exemption. Additionally, the Housing Authority is funding activities (pest control) without written contracts and procuring appliances in excess of the micro-purchase threshold without competition. Finding #14 (PH): The Housing Authority did not provide documentation supporting a functioning inventory control system. The Housing Authority?s policy for inventory control calls for removal of item records at disposition. Loss of disposition records is not fully compliant with federal regulations. The Housing Authority was unable to provide a list of equipment, did not provide records of inventories of equipment and failed to provide any records of equipment disposition. Finding #15 (PH): The Housing Authority is not uniformly resolving Exigent Health and Safety (EHS) deficiencies within 24 hours. Only two out of seven sampled EHS work orders were completed within 24 hours. Finding #16 (PH): The Housing Authority did not provide records of the required annual inspection of all units and properties. The COVID waiver for self-inspections expired in 2021 and all PHAs were required to conduct annual inspections in 2022. The Housing Authority is conducting health and safety inspections, but provided no evidence that these inspections use the full set of HUD inspection standards. The Housing Authority provided documentation that exterior property inspections are being conducted however did not document that all units and properties were inspected in 2022. Finding #17 (PH): The Housing Authority does not complete repairs of all inspection defects found during inspection. In a sample of 22 units selected across four properties there was no record of work orders for the deficiencies noted in the REAC inspection reports. A follow up site visit to 10 units verified that defects were unrepaired. Finding #18 (FSS): The Housing Authority did not provide an FSS termination letter in a timely manner or evidence that grievance procedures were made available. The review of one sample termination file revealed the Contract of Participation (CoP) expired on June 30, 2022. However, the FSS participant did not receive a letter notifying the expiration date until six months later. The delay prohibited the participant from requesting a grievance and hearing, and the possibility of extending or modifying their contract overall, eliminating the opportunity for the FSS participant to successfully complete the contract and collect the FSS escrow disbursement versus forfeiting escrow funds. Finding #19 (FSS): The FSS Program Coordinator was required to perform standard housing functions for non-FSS participants. An interview identified that the Housing Authority?s HCV program was short staffed in October 2022 and required the FSS Coordinator to perform HCV related duties for non-FSS participants. Finding #20 (FSS): During the review, it was identified that the FSS coordinator was performing regular HCV functions without prior HUD approval. The Housing Authority?s FSS Program Coordinator is required to perform standard housing functions such as, performing outreach, recruitment, and retention of FSS participants; goal setting and case management/coaching of FSS participants; working with the community and service partners; and tracking program performance for FSS participants and must receive prior HUD approval before performing any other functions. Finding #21 (FSS): The Housing Authority is paying the FSS Program Coordinator bi-weekly from other funds and then ?paying themselves back? monthly or quarterly after they have drawn FSS funds. Finding #22 (FSS): The Housing Authority?s fund drawdowns are not disbursed within three calendar days of request as required by the grant. A review of ELOCCS showed that voucher number 090-00190813 was paid on December 10, 2022, and verified by staff that the amount was not disbursed within three calendar days. Finding #23 (Section 3): The Housing Authority does not maintain the required documentation demonstrating the qualitative nature of its Section 3 compliance activities or those of its contractors and subcontractors. Findings #24 and 28 (Section 3): The Housing Authority does not actively target or recruit Section 3 businesses for contracting opportunities. Findings #25 and 29 (Section 3): The Housing Authority does not have and/or maintain a list of Sections 3 workers and businesses. Finding #26 (Section 3): The Housing Authority does not include a ?Section 3 clause? or language applying Section 3 requirements in any agreement or contract with its contractors and subcontractors for a Section 3 project for contracts awarded after November 30, 2020. The review of EPC contract with Murray and Sons; and Deer Creek contract with Gardner confirmed lack of language. Finding #27 (Section 3): The Housing Authority does not award contracts in the order of priority per Section 3 requirement. Finding #30 (Section 3): The Housing Authority does not retain on-site records to demonstrate compliance with Section 3 regulations. Finding #31 (VAWA): The Housing Authority does not communicate VAWA rights to HCV participants as required by HUD regulations. Finding #32 (VAWA): The Housing Authority does not include the required tenancy addendum for HCV participants that describes the VAWA housing protections, as amended, for victims. Questioned Costs ? None noted Cause Lack of executed internal controls over federal requirements of the Public Housing and Section 8 Housing Choice Voucher Programs. Effect Noncompliance with federal requirements of the Public Housing and Section 8 Housing Choice Voucher Programs. Recommendation HUD has specified corrective actions to address each of its Review Findings in its Review Report dated June 7, 2023. We recommend that the Authority execute each of HUD?s corrective actions as specified in its Review Report. Management?s Response The Authority will execute each of HUD?s corrective actions as specified in its Review Report. The Authority?s Executive Director, Trey George, has assumed the responsibility of executing this corrective action as of December 31, 2023.