We audited the North Hempstead Housing Authority's (Authority) administration of its Housing Choice Voucher and Family Self-Sufficiency to determine whether the Authority administered these programs in compliance with HUD regulations. The Authority properly determined Section 8 tenant eligibility and accurately calculated rental subsidies. However, the Authority improperly selected both units and tenants for project-based voucher assistance, incorrectly accounted for portable administrative fees, did not adequately administer its housing quality standards quality control inspection process, and improperly calculated and funded Family Self-Sufficiency program participants' escrow accounts.

We recommended that the Director, Office of Public Housing, New York, instruct Authority officials to (1) develop an allocation plan to ensure that project-based vouchers are issued in accordance with regulations and that tenants for project-based voucher assistance are properly selected, (2) pay portable administrative fees due to receiving authorities and provide documentation to support fees paid, (3) strengthen controls over its housing quality standards quality control inspection process, and (4) fund underfunded Family Self Sufficiency program participant escrow accounts, reimburse graduated participants for escrow owed, and recoup funds from overfunded accounts.