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Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
Mayo 19, 2009
  • Public and Indian Housing
2009-CH-1009
ig0951009.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. This is the third of multiple audit reports that may be issued regarding the Authority's program.

The Authority's program administration regarding zero-income households and the recovery of overpayments of housing assistance and utility allowances for duplicate individuals was inadequate. The Authority failed to comply with its program administrative plan regarding zero-income household reviews. It did not effectively use HUD's Enterprise Income Verification system or other third-party verification methods to appropriately adjust the housing assistance payments or seek repayment of overpaid housing assistance when the Authority became aware of the unreported income. As a result, the Authority overpaid nearly $60,000 in housing assistance and utility allowances for the period January 1, 2007, through September 30, 2008.

The Authority also failed to ensure that its program participants did not receive multiple subsidies. Of the 59 households reviewed, 17 received multiple subsidies totaling more than $16,000 in housing assistance and utility allowances.

We informed the Authority's chief executive officer and the Director of HUD's Chicago Office of Public Housing of minor deficiencies through a memorandum, dated May 4, 2009.

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 $91,000 in program funds and implement adequate procedures and controls to address the findings cited in this audit report. These procedures and controls should help to ensure that over the next year, more than $578,000 in program funds will be spent on housing assistance that meets HUD's and Authority's requirements.