Finding 599148 (2022-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-13

AI Summary

  • Core Issue: The Public Housing Authority (PHA) did not properly respond to failed housing quality inspections, allowing issues to persist beyond the required correction timelines.
  • Impacted Requirements: Violations of 24 CFR sections 982.158(d), 982.405(a), and 982.404(a)(3) regarding inspection reports and timely corrections of defects.
  • Recommended Follow-Up: Ensure all tenant files are complete and compliant, and implement procedures for timely enforcement actions on failed inspections.

Finding Text

2. Inspections Finding Number: 2022-002 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers / AL #14.879 Mainstream Voucher Program Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirements: Section N ? Housing Quality Standards Enforcement Pass-Through Entity: N/A Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 24 CFR section 982.158(d) provides that the Public Housing Authority (PHA) must prepare a unit inspection report. Further, 24 CFR section 982.405(a) provides that the PHA must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS. Further, 24 CFR Section 982.404(a)(3) provides that the PHA must not make any housing assistance payments for a dwelling unit that fails to meet the housing quality standards, 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 Authority failed to take the appropriate response to a failure under the owner's responsibility with either a letter of abatement or cancelled contract, or to a failure under the tenant's responsibility by enforcing the tenant's obligations for 37.5% of failed inspections tested when documentation showed that correction for the failed housing quality standards inspection was not made within 30 days. The Executive Director and Housing Choice Occupancy Specialist should ensure all tenant files maintain the appropriate documentation and meet the requirements for inspections. Further, any failures of inspections should result in Authority reactions in line with federal requirements.

Categories

HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 22705 2022-001
    Material Weakness
  • 22706 2022-002
    Material Weakness
  • 599147 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $298,902
14.871 Section 8 Housing Choice Vouchers $69,474
14.872 Public Housing Capital Fund $69,064
14.896 Family Self-Sufficiency Program $50,650
14.879 Mainstream Vouchers $38,865