Finding 971442 (2023-003)

Finding 2023-003 U.S. Department of Housing and Urban Development (HUD) Housing Voucher Cluster/Section 8 Housing Choice Voucher – ALN 14.871 Special Tests and Provisions Condition: During our review of failed housing quality inspections completed by the Authority, we noted two instances in which rent was not abated for units whose deficiencies were not corrected in the required timeframe. The Authority does not have proper controls in place to ensure that Housing Quality Standards (HQS) and enforcement were met. Criteria: For all units that fail to meet HQS, the Authority must require the owner to correct any life-threatening HQS within 24 hours after inspection and all other HQS deficiencies within 30 calendar days. If the owner does not correct the deficiencies, the Authority must abate rent payments to the owner by no later than the first of the month following the specified correction period or terminate the contract. Cause: The Authority’s internal controls in place were not sufficient to ensure that HQS standards were followed. Effect: Rent was not abated for two units whose deficiencies were not corrected in the required timeframe, which could result in unsafe housing for tenants. Failure to comply with grant requirements could jeopardize future funding. Questioned Costs: Unknown Recommendation: We recommend that the Authority implement procedures to ensure that the appropriate procedures are followed when housing quality inspection deficiencies are not resolved in the required timeframe, as required by HUD (24 CFR 882.516) and the Uniform Guidance. View of Responsible Officials and Planned Corrective Action: Management agrees with the finding; see separate corrective action plan.