Finding Text
2023 – 004 – Housing Voucher Cluster - HQS Inspections
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871/14.879/14.EHV
Federal Award Identification Number and Year: VA003, 2022-2023
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness, Material Noncompliance (Modified Opinion)
Criteria or specific requirement:
Housing Quality Standards Inspections
The PHA must inspect the unit leased to a family at least biennially 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 sections 982.158(d) and 982.405(b)).
HQS Enforcement
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) HAP's beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404).
Condition: The Authority did not have sufficient internal controls over Housing Quality Standards to ensure compliance with HUD requirements.
Context: During our testing of 40 tenants for Annual HQS requirements, we noted the following:
- 13 of 40 units tested did not have documentation of a completed HQS inspection within 24 months of the effective date.
- 30 of 40 units tested did not have inspections performed on a biennial basis.
- 10 of 40 tenants tested did not have an inspection report that was signed off as completed by the inspector.
During our testing of 9 failed inspections, we noted 4 instances where abatement was not properly started and 2 instances where the Authority failed to enforce the family obligation in a timely manner.
During our testing of 4 quality control (QC) re-inspections, we noted 2 instances where the QC inspection was not performed within 3 months of the original inspection. 1 file did not list the QC inspector’s name. 2 files had the same QC inspector for both the original inspection and the re-inspection.
Questioned costs: $6,800
Cause: The staff performing the inspections did not properly use the Yardi software program available to conduct and document the inspection process. Additional training will be provided to staff.
Effect: The Authority is not in compliance with HUD regulations regarding HQS inspections or HQS enforcement, which could have an impact on HAP calculations.
Repeat Finding: No
Recommendation: We recommend the Authority review their inspection process to ensure that they are performed timely and that all documentation is maintained within Yardi. We recommend the Authority review their process for abatement/enforcing family obligations to ensure timely correction and enforcement.
Views of responsible officials: There is no disagreement with the audit finding.