We audited the Chester Housing Authority’s Housing Choice Voucher program because (1) it recently regained control of its operations after 20 years in receivership, (2) it had 1,566 vouchers and received more than $14.9 million in fiscal year 2016, and (3) we had not audited its program. Our audit objective was to determine whether the Authority ensured that its Housing Choice Voucher program units met the U.S. Department of Housing and Urban Development’s (HUD) housing quality standards.
The Authority did not always conduct adequate inspections to ensure that its program units met housing quality standards. Of 65 program units inspected, 61 did not meet HUD’s housing quality standards. Further, 22 of the 61 were in material noncompliance with housing quality standards. The Authority disbursed $44,214 in housing assistance payments and received $2,391 in administrative fees for these 22 units. We estimate that over the next year, if the Authority does not implement adequate procedures to ensure that its program units meet housing quality standards, HUD will pay more than $2.6 million in housing assistance for units that materially fail to meet those standards.
We recommend that HUD require the Authority to (1) certify, along with the owners of the 61 units cited in this finding, that the applicable housing quality standards violations have been corrected; (2) reimburse its program $46,605 from non-Federal funds for the 22 units that materially failed to meet HUD’s housing quality standards; and (3) develop and implement procedures and controls to monitor the inspection process to ensure that program units meet housing quality standards.
Recommendations
Public and Indian Housing
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Status2017-PH-1007-001-AOpenClosedClosed on July 19, 2018
Certify, along with the owners of the 61 units cited in the finding, that the applicable housing quality standards violations have been corrected.
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Status2017-PH-1007-001-BOpenClosed$46,605.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on July 19, 2018Reimburse its program $46,605 from non-Federal funds ($44,214 for housing assistance payments and $2,391 in associated administrative fees) for the 22 units that materially failed to meet HUD’s housing quality standards.
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Status2017-PH-1007-001-COpenClosed$2,668,680.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on July 19, 2018Develop and implement procedures and controls to monitor the inspection process to ensure that program units meet housing quality standards, thereby ensuring that an estimated $2,668,680 in program funds is spent for units that are decent, safe, and sanitary.