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the 66 housing units inspected, 54 did not meet HUD鈥檚 housing quality standards,
and 28 had 98 violations that existed at the time of the Authority鈥檚 previous
inspection. This resulted in $110,850 in housing assistance payments and
administrative fees paid by HUD for units that were not decent, safe, and sanitary.
We also estimated that over the next year, HUD will pay more than $4 million in
housing assistance payments on units with material housing quality standards
violations. Additionally, 48 of the 74 tenant files reviewed did not contain the
documentation required by HUD and the Authority鈥檚 program administrative
plan, resulting in $262,287 in unsupported housing assistance payments and
administrative fees. The Authority also incorrectly calculated housing assistance
payments, resulting in $7,523 in overpayments and $7,197 in underpayments
from January 2004 through March 2006.
What We Recommend
We recommend that the director of HUD鈥檚 Baltimore Public Housing Program
Hub require the Authority to ensure that housing units inspected during the audit
are repaired to meet HUD鈥檚 housing quality standards, implement adequate
procedures and controls to ensure that program units meet housing quality
standards to prevent an estimated $4 million from being spent on units with
material housing quality standards violations, reimburse its program from
nonfederal funds for the improper use of $110,850 in program funds, and provide
documentation or reimburse its program $262,287 from nonfederal funds for
unsupported housing assistance payments and administrative fees. Lastly, we
recommend that HUD require the Authority to repay $7,523 in housing assistance
overpayments and reimburse tenants $7,197 in housing assistance underpayments.
For each recommendation without a management decision, please respond and
provide status reports in accordance with HUD Handbook 2000.06, REV-3.
Please furnish us copies of any correspondence or directives issued because of the
audit.
Auditee鈥檚 Response
We provided our discussion draft audit report to the Authority鈥檚 executive director
and HUD officials on June 1, 2007. We held an exit conference with the Authority鈥檚
executive director on June 21, 2007. The Authority provided written comments to
our draft report on June 26, 2007. The Authority acknowledged its program could
be improved but disagreed with the severity of the findings. We included the
Authority鈥檚 response, without the attachments, as appendix B of this report. We did
not include the attachments because of the size of the attachments. The Authority鈥檚
complete response, including attachments, is available upon request.
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