The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Tacoma Housing Authority’s participation in the Rental Assistance Demonstration Program (RAD) because it had the highest number of completed RAD units and the second highest number of total RAD units in HUD’s Region 10. Our objective was to determine whether the Authority executed the appropriate written agreements for RAD, ensured that project financing sources were secured, obtained physical condition assessments, appropriately used replacement housing factor funding for converting public housing units to RAD, and followed its Moving to Work policy by conducting annual tenant reexaminations for its RAD converted units.
We found that the Authority generally executed the appropriate written agreements for RAD, ensured that project financing sources were secured, obtained physical condition assessments, and appropriately used replacement housing factor funding for converting public housing units to RAD. However, the Authority did not always conduct annual tenant reexaminations for its RAD converted units. As a result, the Authority paid $2,975 in unsupported and ineligible housing assistance for 5 of the 20 sampled tenants.
We recommend that the Director of the Seattle Office of Public Housing (1) require the Authority to provide support for the $1,071 in unsupported assistance payments made in 2017 and reimburse its RAD-converted project-based voucher program using non-Federal funds for any amount that remains unsupported, (2) require the Authority to reimburse its RAD-converted project-based voucher program $1,904 using non-Federal funds for the ineligible assistance payments made in 2017, (3) require the Authority to complete overdue annual reexaminations and reconcile corrections by reimbursing tenants and its RAD-converted project-based voucher program using non-Federal funds, and (4) conduct a review to determine whether the Authority is complying with the reexamination schedule in its Moving to Work policy and incorporate timely reexaminations in the risk management assessment.
Recommendations
Public and Indian Housing
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Status2019-SE-1001-001-AOpenClosed$1,071.00Questioned 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 April 29, 2019Require the Authority to provide support for the $1,071 in unsupported assistance payments made in 2017 and reimburse its RAD-converted project-based voucher program using non-Federal funds for any amount that remains unsupported.
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Status2019-SE-1001-001-BOpenClosed$1,904.00Questioned 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 April 19, 2019Require the Authority to reimburse its RAD-converted project-based voucher program $1,904 using non-Federal funds for the ineligible assistance payments made in 2017.
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Status2019-SE-1001-001-COpenClosedClosed on August 13, 2019
Require the Authority to complete overdue annual reexaminations and reconcile corrections by reimbursing tenants and its RAD-converted project-based voucher program using non-Federal funds.
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Status2019-SE-1001-001-DOpenClosedClosed on November 14, 2019
Conduct a review to determine whether the Authority is complying with the reexamination schedule in its Moving to Work policy and incorporate timely reexaminations in the risk management assessment.