We audited the Shreveport Housing Authority's (Authority) Section 8 Housing Choice Voucher (Section 8) program as part of our strategic plan. Our objective was to determine whether the Authority's Section 8 units met housing quality standards and if not, determine the extent, cause, and impact of its noncompliance on its Section 8 program.

The Authority did not have adequate management controls to ensure that it complied with U. S. Department of Housing and Urban Development (HUD) requirements. Of the 66 statistically selected sample units we inspected, 62 (94 percent) did not meet minimum housing quality standards, and 47 (71 percent) were materially noncompliant with housing quality standards. As a result, tenants lived in units that were not decent, safe, and sanitary. If the Authority does not establish effective management controls, we estimate that it will pay more than $6.1 million in the next 12 months for units that are materially noncompliant with HUD's housing quality standards.

We recommend that the Director of the Office of Public Housing require the Authority to inspect the 62 units that did not meet minimum housing quality standards to verify that the owners took appropriate corrective action to make the units decent, safe, and sanitary. Further, the Director should require the Authority to reinspect all of its Section 8 units, including those units that it owns, and ensure that they meet housing quality standards. If any of the units cannot be made decent, safe, and sanitary, the Authority must either abate the housing assistance payments or terminate the tenant's voucher as appropriate. Further, we recommend that the Director require the Authority to implement procedures and controls to ensure that its Section 8 units and inspections meet HUD requirements to prevent $6.1 million in future assistance payments from being spent on units that do not meet standards.