Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Numbers: 14.871/14.879
Federal Award Identification Number and Year: SC911VO - 2023
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Special Tests and Provisions – HQS Enforcement
Type of Finding:
Material Weakness in Internal Control over Compliance
Material Noncompliance (Modified Opinion)
Criteria or specific requirement: For units under Housing Assistance Payment (HAP) contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority 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 within the specified correction period, the Authority 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 require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe.
Questioned costs: $7,698
Context: Exceptions were noted in 28 out of 40 failed inspections:
In 23 instances, the Authority did not reinspect the unit within the required timeframe.
In 8 instances, the Authority did not abate the unit for the required timeframe.
In 2 instances, the Authority did not take the proper steps to enforce family obligations.
In 13 instances, the Authority did not notify the tenant of the inspection results within the required timeframe.
In 2 instances, the Authority was unable to provide the inspection documentation.
Cause: The Authority did not reinspect or abate units timely.
Effect: The Authority is not in compliance with HQS enforcement requirements.
Repeat Finding: Yes, see finding 2022-002.
Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe.
Views of responsible officials: There is no disagreement with the audit finding.