We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of lead in the water of multifamily housing units based on our goal of strengthening the soundness of multifamily housing. The audit was part of the activities in our fiscal year 2019 audit plan. Our objective was to determine whether HUD’s Office of Multifamily Housing Programs had sufficient policies, procedures, and controls to ensure that households living in multifamily housing units had a sufficient supply of safe drinking water.
HUD’s Office of Multifamily Housing Programs did not have sufficient policies, procedures, and controls to ensure that households living in multifamily housing units had a sufficient supply of safe drinking water. Multifamily housing properties were served by public water systems that reported levels of lead above the Environmental Protection Agency’s lead action level. However, HUD had limited requirements concerning lead in the drinking water of multifamily housing units and did not require multifamily property owners or management agents to take action regarding the potential for lead in the drinking water. These weaknesses occurred because HUD relied on the Agency to ensure that public water systems provided water that was safe to drink. As a result, HUD lacked assurance that households lived in multifamily housing units that had a sufficient supply of safe drinking water.
We recommend that the Director of Multifamily Asset Management and Portfolio Oversight develop and implement an action plan that includes sufficient policies, procedures, and controls that address households living in multifamily housing units having a sufficient supply of safe drinking water.
Recommendations
Housing
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Status2020-CH-0005-001-AOpenClosedPriorityPriority
We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Develop and implement an action plan that includes sufficient policies, procedures, and controls that address households living in multifamily housing units having a sufficient supply of safe drinking water […]
Status
In April 2022, HUD created draft standard operating procedures to address lead in the water of its multifamily housing units. On May 11, 2023, HUD published its NSPIRE regulations that addressed lead in the water. Further, on June 30, 2023, HUD published its Implementation of National Standards for the Physical Inspection of Real Estate Administrative Procedures, which requires property owners and agents to provide information about water supply provider and water safety alerts, if applicable, prior to the commencement of a REAC inspection. As a result, the Office of Multifamily Housing is revising its procedures and consulting with the Office of Lead Hazard Control and Healthy Homes (OLHCHH). As of November 2024, OIG was waiting for additional information from the Office of Multifamily Housing demonstrating whether it has addressed the recommendation.
Analysis
To fully address this recommendation, the Office of Multifamily Housing must provide evidence of an action plan that includes its procedures that address households living in multifamily housing units to ensure that they have a sufficient supply of safe drinking water.
Implementation of this recommendation will enable HUD to have sufficient oversight and control activities in place to ensure households living in multifamily housing units have a sufficient supply of safe drinking water.