We audited the Detroit Housing Commission’s Moderate Rehabilitation program based on concerns regarding the conditions of the housing units and the results of our prior audit of the Commission’s former projects. The audit was part of the activities in our fiscal year 2018 annual audit plan. Our audit objective was to determine whether the Commission administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements.
The Commission did not always administer its program in accordance with HUD’s and its own requirements. Specifically, it did not (1) correctly calculate and pay housing assistance for its program households, (2) obtain and maintain required eligibility documentation, (3) appropriately update contract rents, and (4) always enforce HUD’s housing quality standards. As a result, the Commission overpaid more than $47,000 and underpaid nearly $25,000 in housing assistance and utility allowance reimbursements. In addition, it paid more than $85,000 in unsupported housing assistance.
We recommend that the Director of HUD’s Detroit Office of Public Housing require the Commission to (1) reimburse its program more than $23,000 from non-Federal funds; (2) reimburse the households or projects nearly $25,000 from non-Federal funds for the underpayment of housing assistance and utility allowances; (3) support or reimburse its program, households, or projects more than $85,000 for unsupported housing assistance payments; (4) pursue collection or reimburse its program nearly $24,000 from non-Federal funds for the overpayment of housing assistance; and (5) implement adequate quality control procedures to correct the findings cited in this audit report.
Recommendations
Public and Indian Housing
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Status2019-CH-1002-001-AOpenClosed$7,099.00Questioned 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.
Closed on May 03, 2021Pursue collection from the applicable projects or reimburse its program $7,099 ($240 $20 $6,839) from non-Federal funds for the overpayment of housing assistance due to incorrect calculations, inappropriate contract rents, and failure to correct housing quality standards deficiencies.
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Status2019-CH-1002-001-BOpenClosed$24,457.00Funds 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.
Closed on March 02, 2021Reimburse the appropriate projects $24,457 ($552 $958 $849 $22,098) from program funds for the underpayment of housing assistance due to incorrect calculations, underpaid housing assistance, and inappropriate contract rents and recovery of program funds.
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Status2019-CH-1002-001-COpenClosed$246.00Funds 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.
Closed on March 15, 2021Reimburse the appropriate households $246 from non-Federal funds for the overpayment of tenant rent due to inappropriate calculations.
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Status2019-CH-1002-001-DOpenClosed$23,350.00Questioned 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.
Closed on March 15, 2021Reimburse its program $23,350 ($2,089 $3,951 $208 $17,102) from non-Federal funds for the underpayment of tenant rent due to incorrect calculations, overpaid housing assistance and utility reimbursements, and its failure to perform housing quality standards inspections.
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Status2019-CH-1002-001-EOpenClosed$648.00Questioned 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.
Closed on September 22, 2020Support or reimburse the appropriate projects $648 from non-Federal funds for the unsupported payments of housing assistance cited in this finding.
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Status2019-CH-1002-001-FOpenClosed$6,137.00Questioned 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.
Closed on March 15, 2021Support or reimburse the appropriate households $6,137 from non-Federal funds for the unsupported payments of tenant rent cited in this finding.
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Status2019-CH-1002-001-GOpenClosed$78,704.00Questioned 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.
Closed on March 15, 2021Support or reimburse its program $78,704 ($1,956 $76,748) from non-Federal funds for the unsupported payments of tenant rent and the missing certification and eligibility documentation.
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Status2019-CH-1002-001-HOpenClosed$16,793.00Questioned 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.
Closed on March 16, 2021Pursue collection from the applicable households or reimburse its program $16,793 from non-Federal funds for the overpayment of housing assistance due to unreported income.
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Status2019-CH-1002-001-IOpenClosed$9,892.00Funds 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.
Closed on July 21, 2021Update its administrative plan to ensure that its policies are in accordance with HUD’s requirements and implement adequate quality control procedures to ensure that it correctly calculates housing assistance payments to ensure that $9,892 in program funds is appropriately used for future payments.
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Status2019-CH-1002-001-JOpenClosedClosed on September 28, 2020
Implement adequate quality control procedures to ensure that it (1) obtains and maintains required eligibility documentation in accordance with HUD’s requirements, (2) appropriately calculates and pays housing assistance and utility allowance reimbursements, and (3) completes household certifications in a timely manner.
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Status2019-CH-1002-001-KOpenClosedClosed on July 16, 2021
Ensure that the abatement procedures implemented by the Commission are sufficient to ensure that housing quality standards are enforced.