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REPORTAR FRAUDE, DESPERDICIO O ABUSO
Febrero 18, 2009
  • Public and Indian Housing
2009-CH-1005
ig0951005.pdf

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Chicago Housing Authority's (Authority) Section 8 Housing Choice Voucher program (program) under its Moving to Work Demonstration program. The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region V's jurisdiction. Our objective was to determine whether the Authority administered its program in accordance with HUD's requirements and its program administrative plan regarding the enforcement of housing quality standards. This is the second of multiple audit reports that may be issued regarding the Authority's program.

The Authority's program administration regarding housing unit conditions and timeliness of annual housing unit inspections was inadequate. Of the 65 housing units statistically selected for inspection that did not receive a quality control inspection by CVR Associates, Incorporated (CVR), the Authority's inspections contractor, 52 did not meet HUD's housing quality standards, and 23 had exigent health and safety violations that existed at the time of CVR's previous inspections. Based on our statistical sample, we estimate that over the next year, HUD will pay more than $3 million in housing assistance for units with housing quality standards violations that had not received a quality control inspection.

Further, of the 39 housing units statistically selected for inspection that received a quality control inspection by CVR, 33 did not meet HUD's housing quality standards, and 12 had exigent health and safety violations that existed at the time of CVR's previous inspections. Based on our statistical sample, we estimate that over the next year, HUD will pay more than $167,000 in housing assistance for units with housing quality standards violations that received a quality control inspection.

The Authority also failed to ensure that its housing unit inspections were conducted in a timely manner. Of the 300 household files selected for review, 62 (21 percent) had inspections that were not conducted within the required one year of the previous inspections. The number of days late ranged from 4 to 1,001.

We recommend that the Director of HUD's Chicago Office of Public Housing require the Authority to reimburse its program from nonfederal funds for the improper use of nearly $102,000 in program funds and implement adequate procedures and controls to address the finding cited in this audit report. These procedures and controls should help ensure that more than $3.1 million in program funds is spent on housing units that meet HUD's requirements.