Ensure that HUD-approved independent third parties complete the unit inspections and determine the rent reasonableness for units it owns or seek an appropriate exemption of program requirements from the HUD Secretary.
Publication Report
2018-AT-1008 | July 13, 2018
The Lexington-Fayette Urban County Housing Authority, Lexington, KY, Did Not Fully Comply With HUD’s Program Requirements After the Completion of Its Rental Assistance Demonstration Program Conversion
We audited the Lexington-Fayette Urban County Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion to the Section 8 Project-Based Voucher program and compliance with requirements after the conversion. We selected the… moreRelated Recommendations
Public and Indian Housing
- Status2018-AT-1008-001-AOpenClosedClosed on April 27, 2020$443,204.00Questioned Costs
Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.
Reimburse its Section 8 Project-Based Voucher program $443,204 ($394,190 in housing assistance payments and $49,014 in associated administrative fees) from nonproject funds for the payments related to the 206 Authority-owned units’ inspections not conducted by a HUD-approved independent entity and for compliance with housing quality standards for the period January 1, 2016, through August 5, 2016.
Ensure that in future RAD conversions, if any, unit inspections are conducted for compliance with HUD’s housing quality standards after rehabilitation and construction is completed and before tenants move in.
Provide adequate training to its staff to ensure compliance with Section 8 Project-Based Voucher program requirements for unit inspections and rent reasonableness determinations.