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The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Section 8 Performance Based Contract Administration (PBCA) program of the Alaska Housing Finance Corporation (Corporation). We wanted to determine whether the Corporation fulfilled its contractual responsibilities as a performance-based contract administrator (contract administrator) of project-based Section 8 housing assistance payments contracts.

The Corporation generally fulfilled its responsibilities as a contract administrator. However, its management and occupancy reviews were not always as comprehensive as required by its annual contributions contract. We noted deficiencies that existed at the time of the Corporation’s reviews but were either unidentified or unreported. In addition, the Corporation did not always properly rate projects when deficiencies were identified. We recommend that the Corporation improve its management occupancy reviews to make them more comprehensive and review the annual contributions contract to gain a greater understanding of its responsibilities in monitoring the project owners’ compliance with their obligation to provide decent, safe, and sanitary housing to assisted residents.