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HUD OIG audited the Housing Authority of the City of Wilson’s (Authority) Section 8 Housing Choice Voucher program. We elected to perform the audit after finding indicators of Section 8 deficiencies during our review of the Authority’s capacity to administer capital funds awarded under the American Recovery and Reinvestment Act of 2009 (Audit Report 2010-AT-1007). Our objectives were to determine whether the Authority complied with U.S. Department of Housing and Urban Development (HUD) requirements for administering its Housing Choice Voucher program, including its special Section 8 programs comprised of a Family Self Sufficiency program and a Homeownership program.

The Authority failed to comply with many of HUD’s Section 8 program requirements because it had either failed to establish adequate controls or disregarded existing controls. It mismanaged its program funds, improperly selected tenants for assistance, improperly terminated tenants, made improper housing assistance payments, and had other areas of noncompliance. Our inspection of 23 units showed that none met minimum housing quality standards and 6 were in material noncompliance. The Authority also failed to ensure that quality control inspections were performed in accordance with HUD requirements. In addition, the Authority mismanaged its Family Self Sufficiency and homeownership programs. It did not fully comply with HUD’s administrative requirements for either program and did not maintain accurate accountability of participant funds for its Family Self-Sufficiency program.

OIG recommends that the Director of the Greensboro Office of Public Housing require the Authority to follow its existing controls as well as develop and implement additional controls where needed to ensure that it complies with all Section 8 program requirements. The Authority must repay $109,778 in ineligible expenses from non-Federal funds and provide documentation showing that $14,568 in unsupported expenses was eligible or repay that amount from non-Federal funds.