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We audited the Grand Rapids Housing Commission’s Rental Assistance Demonstration program (RAD) based on the activities included in our 2017 annual audit plan and our analysis of the housing agencies participating in RAD in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin).  Our audit objective was to determine whether the Commission correctly calculated housing assistance payments for the units converted under the program.

The Commission did not always correctly calculate and pay housing assistance for the units converted under the program.  It also did not always maintain documentation to support its calculations of households’ housing assistance payments and program eligibility.  As a result, the Commission overpaid nearly $16,000 and underpaid more than $3,000 in housing assistance and utility allowance reimbursements.  In addition, it had unsupported housing assistance payments.

We recommend that the Director of the U.S. Department of Housing and Urban Development’s Detroit Office of Public Housing require the Commission to (1) reimburse its program nearly $9,000 from non-Federal funds due to inappropriate calculations, (2) reimburse the appropriate households or projects more than $3,000 for underpayment of housing assistance and utility allowances, (3) support or reimburse the appropriate households for unsupported housing assistance payments, (4) pursue collection from applicable households or projects or reimburse its program nearly $7,000 from non-Federal funds for the overpayment of housing assistance, and (5) implement adequate quality control procedures to ensure that it correctly pays housing assistance.

Recommendations

Public and Indian Housing

  •   2018-CH-1001-001-A
    $13,605.00

    Closed on Septiembre 06, 2018

    Reimburse its program $13,605 from non-Federal funds ($8,735 in overpayments of housing assistance and utility allowances $4,870 in administrative fees) due to inappropriate calculations.

  •   2018-CH-1001-001-B
    $2,663.00

    Closed on Abril 01, 2019

    Reimburse the appropriate households $2,663 from non-Federal funds for the underpayment of housing assistance and utility allowances due to inappropriate calculations.

  •   2018-CH-1001-001-C
    $44.00

    Closed on Marzo 18, 2019

    Support or reimburse the appropriate households $44 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.

  •   2018-CH-1001-001-D
    $1,877.00

    Closed on Mayo 15, 2019

    Pursue collection from the applicable households or reimburse its program $1,877 from non-Federal funds for the overpayment of housing assistance due to unreported income.

  •   2018-CH-1001-001-E
    $5,065.00

    Closed on Septiembre 06, 2018

    Pursue collection from the applicable projects or reimburse its program $5,065 from non-Federal funds for the overpayment of housing assistance.

  •   2018-CH-1001-001-F
    $177.00

    Closed on Marzo 11, 2019

    Reimburse the appropriate projects $177 from program funds for the underpayment of housing assistance.

  •   2018-CH-1001-001-G
    $263.00

    Closed on Marzo 11, 2019

    Reimburse the appropriate households $263 from program funds for the underpayment of utility allowance reimbursements.

  •   2018-CH-1001-001-H

    Closed on Septiembre 30, 2020

    Review the payments for all certifications completed between December 2016 and February 2017 for the remaining Housing Choice Voucher and Project-Based Voucher program participants to ensure that adjustments were appropriately paid.

  •   2018-CH-1001-001-I

    Closed on Marzo 18, 2019

    Implement adequate quality control procedures to ensure that it correctly pays housing assistance.

  •   2018-CH-1001-001-J

    Closed on Marzo 18, 2019

    Ensure that the quality controls over the calculation of housing assistance payments implemented by the Commission are sufficient.