We audited Vineville Christian Towers’ (project) Rental Assistance Demonstration Program (RAD) conversion in accordance with our annual audit plan. Our audit objective was to determine whether the project’s RAD conversion to the Section 8 Project-Based Voucher Program was completed in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements; specifically, whether the Macon-Bibb County Housing Authority properly executed the housing assistance payments contract for the project’s RAD conversion.
The Authority improperly executed a Section 8 Project-Based Voucher Program housing assistance payments (HAP) contract for 90 units. Specifically, the Authority did not ensure that (1) the tenant protection assistance was in place for all 90 tenants, and (2) only the units occupied at the time of contract execution were included on the contract. In addition, the Authority did not obtain information from HUD for properly issuing tenant protection assistance. This condition occurred because the Authority (1) lacked an understanding of retroactive RAD conversion type and was not familiar with the requirements for tenant protection assistance and (2) did not establish written procedures related to the RAD conversion and tenant protection assistance. As a result, the Authority improperly received more than $138,000 in administrative fees. Unless the Authority cancels the contract, we estimate that it will improperly provide nearly $257,000 over the next year for units improperly converted under RAD.
We recommend that the Acting Director of HUD’s Atlanta, GA, Office of Public and Indian Housing require the Authority to (1) cancel the contract resulting from the RAD conversion, thereby putting nearly $257,000 to better use; (2) reimburse its Section 8 program more than $138,000 in associated administrative fees from non-Federal funds; (3) develop and implement procedures; and (4) provide training to its staff to help ensure compliance with program requirements.
Recommendations
Public and Indian Housing
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Status2020-AT-1003-001-AOpenClosed$256,824.00Funds 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 October 15, 2020Put $256,824 to better use by cancelling the project-based voucher housing assistance payments contract resulting from the RAD conversion. The Authority should work with HUD and the owner to protect the tenancy of the affected tenants at the time of contract cancellation.
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Status2020-AT-1003-001-BOpenClosed$138,925.00Questioned 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 July 26, 2021Reimburse its Section 8 program $138,925 in associated administrative fees from non-Federal funds for the improper issuance of tenant protection assistance and an improper conversion to the project-based voucher program.
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Status2020-AT-1003-001-COpenClosedClosed on November 02, 2020
Develop and implement procedures to ensure that forms HUD-50059 and or tenant profiles is received from HUD before providing tenant protection assistance resulting from a completed housing conversion action.
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Status2020-AT-1003-001-DOpenClosedClosed on November 02, 2020
Provide adequate training to staff associated with administering tenant protection and project-based vouchers to help address its lack of familiarity with requirements and ensure compliance with program requirements.
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Status2020-AT-1003-001-EOpenClosedClosed on November 12, 2020
Develop and implement procedures for executing Section 8 Project-Based Voucher Program housing assistance payments contracts related to RAD conversions.