We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of portability in the Housing Choice Voucher Program based on a congressional inquiry from Senator Grassley’s office. Our audit objective was to determine whether HUD had adequate oversight of portability in the Housing Choice Voucher Program; specifically, to determine whether (1) HUD had adequate policies and procedures to identify and evaluate the impacts portability may have on public housing agencies’ Housing Choice Voucher Programs and (2) HUD’s financial information relating to portability set-aside and additional administrative fees was correctly calculated and distributed in accordance with its requirements.
HUD’s Office of Public and Indian Housing generally had adequate oversight of portability in the Housing Choice Voucher Program; however, improvements could be made. Although HUD reviews public housing agencies’ programs, it did not specifically identify and evaluate the effects of portability. As a result, HUD could miss the opportunity to assess the impact of portability on public housing agencies’ programs and use the information to make decisions that could (1) assist public housing agencies experiencing difficulties with managing the portability component of the program and (2) result in programmatic or process improvements. In addition, HUD generally calculated portability set-aside funding for increased costs and special administrative fees for portability correctly with a few exceptions. As a result, HUD overpaid $115,335 in set-aside funding and $133,179 in special administrative fees. It also underpaid $35,189 in special administrative fees.
We recommend that HUD (1) conduct an assessment of the impact of portability and determine whether technical assistance is necessary for certain public housing agencies, (2) pursue collection or recapture $248,514 for the overpayments and distribute $35,189 for the underpayments of set-aside funds and special administrative fees, and (3) review the calculations and distributions of funds for category 2b portability set-aside and special administrative fees for portability to ensure accuracy.
Recommendations
Public and Indian Housing
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Status2020-CH-0006-001-AOpenClosedClosed on January 07, 2021
Conduct a nationwide assessment of the impact of portability and determine whether technical assistance is necessary for certain public housing agencies. Consider seeking input from public housing agencies and industry groups to evaluate the potential impact of portability and (1) determine whether improvements to the portability aspect of the program are warranted, and (2) if deemed warranted, determine how the improvements will be implemented for public housing agencies portable vouchers (both port-in and port-out).
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Status2020-CH-0006-002-AOpenClosed$248,514.00Questioned 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 or recapture $248,514 ($115,335 $133,179) from the applicable public housing agencies for the overpayment of category 2b portability set-aside funds and special administrative fees cited in this finding.
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Status2020-CH-0006-002-BOpenClosed$35,189.00Funds 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 16, 2021Distribute $35,189 to the applicable public housing agencies for the underpayment of special administrative fees for portability cited in this finding.
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Status2020-CH-0006-002-COpenClosedClosed on October 01, 2020
Review the calculations and distributions of funds for the 2019 category 2b portability set-aside and special administrative fees for portability to ensure that the spreadsheet errors did not carry forward from the previous calculations.