Finding 606936 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-13
Audit: 25963
Organization: Jackson Housing Authority (TN)

AI Summary

  • Core Issue: The PHA failed to properly abate Housing Assistance Payments (HAPs) for 2 out of 40 inspections that did not meet Housing Quality Standards (HQS).
  • Impacted Requirements: The PHA is non-compliant with federal regulations requiring timely correction of HQS deficiencies and proper monitoring of inspection outcomes.
  • Recommended Follow-Up: Implement a robust monitoring system to ensure compliance with HQS requirements and prevent potential financial penalties.

Finding Text

The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR ?982.405, 983.103).Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies. During our audit, the Authority was found to not have properly abated 2 out of 40 failed inspections. If we extrapolate the failure rate of 5% to the total population 434, there would be 22 similar errors. JHA did not properly monitor outcomes of inspections and take appropriate action for corrections. The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in significant operating and financial penalties.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 30494 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.95M
14.850 Public and Indian Housing $3.43M
14.872 Public Housing Capital Fund $1.64M
14.896 Family Self-Sufficiency Program $217,226
14.870 Resident Opportunity and Supportive Services - Service Coordinators $63,231