We audited the Housing Authority of the City and County of San Francisco’s (Authority) Section 8 housing quality standards inspections of Housing Choice Voucher program (voucher)-funded housing units. Our objective was to determine whether the Authority conducted its housing quality standards inspections in accordance with HUD rules and regulations. We found that the Authority did not conduct its housing quality standards inspections of voucher-funded housing units in accordance with HUD rules and regulations. Of the 65 housing units statistically selected for inspection, 58 did not meet housing quality standards, and 46 of those units had material deficiencies. Based on our sample, we estimate that over the next year, HUD will pay more than $11.4 million in housing assistance for housing units with material housing quality standards deficiencies.

We recommend that HUD require the Authority to: (1) Repay HUD $279,136 in expended housing assistance payments for housing units that were deemed materially deficient; (2) Establish and implement policies, procedures, and controls regarding its inspection process to prevent more than $11.4 million in HUD funds from being spent on housing units with material housing quality standards deficiencies; and (3) Verify that the applicable owners have taken appropriate corrective action regarding the housing quality standards deficiencies identified during our inspections or take enforcement action.