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Based upon the sample size of 66, from a total population of 1,882, an estimate of 42.42 percent
(798) of the population materially failed housing quality standards inspections. The sampling
error is plus or minus 9.88 percent. There is a 90 percent confidence that the frequency of
occurrence of program units materially failing housing quality standards inspections lies between
32.59 and 52.25 percent of the population. This equates to an occurrence of between 613 and
983 units of the 1,882 units in the population. We are using the most conservative numbers
which is the lower limit or 613 units.
The Authority鈥檚 January through December 2006 housing assistance payment registers showed
that the average annual housing assistance payment was $6,655. Using the lower limit of the
estimate of the number of units and the average housing assistance payment, we estimated that
the Authority will annually spend $4,079,515 (613 units times $6,655 average payment) for units
that are in material noncompliance with HUD鈥檚 housing quality standards. This estimate is
presented solely to demonstrate the annual amount of program funds that could be put to better
use on decent, safe, and sanitary housing if the Authority implements our recommendations.
While these benefits would recur indefinitely, we were conservative in our approach and only
included the initial year in our estimate.
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