Finding 614556 (2022-002)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-03-29
Audit: 35349
Organization: The Havens, Inc. (NC)

AI Summary

  • Core Issue: The Project received a low HUD inspection score of 55c, indicating serious health and safety deficiencies.
  • Impacted Requirements: Compliance with HUD standards for decent, safe, and sanitary housing is at risk due to delayed repairs and management disputes over inspection findings.
  • Recommended Follow-Up: The owner must address all identified deficiencies promptly to meet HUD compliance and ensure residents receive quality housing.

Finding Text

Supportive Housing for Persons with Disabilities (Section 811), CFDA 14.181 Criteria: The Code of Federal Regulations (24 CFR 5.703) states that HUD housing must be decent, safe, sanitary and in good repair. Also, the Project?s HUD Regulatory Agreement states that the property must be maintained in good and substantial repair and condition. Statement of Condition: On July 9, 2021, the Project received a score of 55c on its HUD physical inspection. This score resulted from numerous health and safety and other deficiencies. Cause: Some Project repairs were delayed by COVID restrictions and resulting labor and supply shortages as well as by insufficient cash flows. Also, management contended that some defects were cited incorrectly. Effect: A physical inspection score below 60 indicates that the owner may not be fulfilling its contractual obligations to HUD and that the residents may not be receiving the quality of housing to which they are entitled. Recommendation: The owner should correct all deficiencies and make all necessary repairs as soon as possible to be in compliance with HUD. Views of Responsible Officials: The low score reflects issues with drainage and tripping hazards on the grounds plus paint on a sprinkler head ring. There were very few issues in the apartments themselves. Our appeal for this inspection was denied. Subsequently, the Project received a score of 55 on its September 15, 2022 HUD physical inspection, but management?s appeal for this inspection raised the score to 63.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 38113 2022-001
    Material Weakness Repeat
  • 38114 2022-002
    -
  • 614555 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.87M
14.195 Section 8 Housing Assistance Payments Program $169,393