Implement adequate procedures and controls to ensure that all units meet HUD’s housing quality standards and its own requirements to prevent $1,236,000 in program funds from being spent on units that do not comply with HUD’s requirements over the next year. The procedures should include but not be limited to ensuring that inspectors are properly trained and familiar with HUD’s and the Authority’s requirements and that they consistently conduct accurate and complete inspections and reinspections.
Publication Report
2019-CH-1001 | December 20, 2018
The Housing Authority of the City of North Chicago, North Chicago, IL, Did Not Always Comply With HUD’s Requirements and Its Own Policies Regarding the Administration of Its Housing Choice Voucher Program
We audited the Housing Authority of the City of North Chicago’s Housing Choice Voucher Program based on our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction and the activities included in our 2018 annual audit… moreRelated Recommendations
Public and Indian Housing
Certify, along with the owners, that the applicable housing quality standards violations have been corrected for the 78 units cited in this finding.
- Status2019-CH-1001-001-BOpenClosedClosed on February 06, 2023$153,222.00Questioned 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 program $153,222 from non-Federal funds for the housing assistance paid for the 50 units that materially failed to meet HUD’s housing quality standards and its own requirements.
- Status2019-CH-1001-001-COpenClosedClosed on February 06, 2023$15,796.00Questioned 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 program $15,796 from non-Federal funds for administrative fees earned for the 50 units that materially failed to meet HUD’s housing quality standards and its own requirements.
Ensure that its staff is properly trained and familiar with HUD’s and its own requirements regarding housing quality standards inspections.
- Status2019-CH-1001-002-AOpenClosedClosed on January 04, 2021$93,651.00Questioned 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.
Support or reimburse its program $93,651 from non-Federal funds for the missing required eligibility documentation.
- Status2019-CH-1001-002-BOpenClosedClosed on September 27, 2019$76.00Questioned 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 program $76 from non-Federal funds for the overpayment of housing assistance due to inappropriate calculations of housing assistance.
- Status2019-CH-1001-002-COpenClosedClosed on July 09, 2019$2,193.00Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Reimburse the appropriate households $2,193 from program funds for the underpayment of housing assistance due to inappropriate calculations.
- Status2019-CH-1001-002-DOpenClosedClosed on February 06, 2023$9,870.00Questioned 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 program $9,870 ($7,663 $2,207) from non-Federal funds for the administrative fees it inappropriately earned for the missing required eligibility documentation and inappropriate calculations of housing assistance.
Implement adequate procedures and controls to ensure that the required documentation to support household eligibility is obtained and maintained and housing assistance payments are appropriately calculated.
Review the utility allowance schedules to ensure that all applicable utilities are provided to the households and that the utility allowances are based on the lower of the voucher size or unit size in accordance with HUD’s requirements.