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HUD OIG performed an audit of the East Point Housing Authority (Authority) Housing Choice Voucher program. We selected the Authority due to the lack of onsite monitoring performed by the Office of Public Housing, Georgia State Office, over the past 10 years and the fact that the number of program tenants had more than doubled over the past few years. The purpose of the audit was to determine (1) whether the Authority established procedures to ensure that tenants were eligible for rental subsidies and that the amount of their subsidy calculation was properly supported and (2) whether its units met the U.S. Department of Housing and Urban Development’s (HUD) housing quality standards.

The Authority generally computed accurate housing assistance payments. However, it made excessive housing assistance payments of $38,447 on behalf of a zero-income tenant who underreported her income and did not provide proof of financial assistance. Also, the Authority’s physical inspection process was not effective. The inspections did not accurately identify the deficiencies. Also, the quality control inspections were not performed on a timely basis, and the results were not communicated to the inspector.

OIG recommended that the Director of HUD’s Atlanta Office of Public Housing require the Authority to reimburse the Housing Choice Voucher program the $38,447 that was paid in ineligible housing assistance, implement its policies and procedures to ensure that its program operates in compliance with HUD’s requirements, reinspect the units and ensure that all deficiencies identified have been corrected, evaluate the inspector’s workload and make the necessary adjustments to ensure that housing quality standards deficiencies are properly identified and corrected, implement its policy and ensure that all quality control reviews are performed within the 3-month timeframe, and establish and implement procedures to ensure that its quality control review deficiencies are communicated to the inspector.