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We audited the Housing Authority of the City of Easton, PA’s Housing Choice Voucher Program because (1) we received a complaint alleging that the Authority made improper payments to program participants and a consultant to the Authority inappropriately placed herself on the program waiting list and (2) we had never audited the Authority.  Our audit objective was to determine whether the Authority administered its program in accordance with U.S. Department of Housing and Urban Development (HUD) requirements.  We focused the audit on evaluating the allegations in the complaint and reviewing (1) participant eligibility and selection from the waiting list and (2) the accuracy of and support for housing assistance payments.  The two allegations in the complaint did not have merit.  However, the Authority did not (1) properly administer its waiting list and select tenants from it and (2) perform quarterly interim recertifications for families reporting zero income.  These conditions occurred because the Authority was unaware of some waiting list requirements, lacked procedures to collect and maintain documentation to show that it properly selected applicants from the waiting list, and lacked procedures for performing quarterly interim recertifications for families reporting zero income.  As a result, HUD lacked assurance that applicants were (1) properly placed on the waiting list, (2) fairly awarded preference points, and (3) properly selected from the waiting list.  The Authority also made ineligible housing assistance payments totaling $2,463.  We recommend that HUD direct the Authority to (1) update its administrative plan to clearly define the weights and rankings in its preference system and ensure compliance with residency preference regulations; (2) develop and implement policies and procedures to ensure that it administers its waiting list according to the requirements in its administrative plan, including maintaining documentation to show that it properly selected applicants from the waiting list; (3) develop and implement procedures for recertifying families reporting zero income; and (4) provide documentation to show that the family that received the benefit of the $2,463 overpayment in housing assistance reimbursed the program or repay its program from non-Federal funds for any amount not reimbursed by the family.