Sandusky Metropolitan Housing Authority

Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Finding Number: 2024-002 Assistance Listing Number and Title: AL # 14.871/14.879 Housing Choice Voucher Cluster Federal Award Identification Number / Year: OH054AF0148 / 2023 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: HQS Enforcement Pass-Through Entity: None Repeat Finding from Prior Audit? No Noncompliance and Material Weakness 2 CFR § 2400.101 gives regulatory effect to the Department of Housing & Urban Development for 2 CFR § 200.303 which requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 24 CFR § 982.404(d)(2) provides that the Public Housing Authority (PHA) must abate the Housing Assistance Payment (HAP), including amounts that had been withheld, if the owner fails to make the repairs within the applicable cure period (within 24 hours of notification for life-threatening deficiencies and within 30 days of notification (or other reasonable period established by the PHA) for non-life-threatening deficiencies). Due to deficiencies in the Authority's internal controls over compliance requirements, seven percent of inspections tested for Housing Quality Standards compliance did not abate HAP payments after the owner failed to make the repairs noted in the inspection report within the 30 period. Failing to properly abate HAP payments could result in the Authority making payments to owners who do not meet Housing Quality Standards. The Authority should adopt policies and procedures for HAP payments to ensure compliance with 24 CFR § 982.404(d)(2)