Provide documentation to show that it purchased products and services totaling $728,516 at fair and reasonable prices or reimburse either its Operating or Capital Fund from non-Federal funds for any amounts that it cannot support.

We recommend that the Director of HUD’s New York Office of Public and Indian Housing require HPD to improve controls over its abatement process to ensure that it consistently (1) starts abatement when required, (2) verifies and documents the correction of violations, (3) resumes housing assistance payments after the end of the abatement period, and (4) maintains sufficient documentation to support the abatement and reinstatement for each unit.

We recommend that the Director of HUD’s New York Office of Public and Indian Housing require HPD to improve controls over the housing quality standards quality control inspections to ensure that quality control inspections meet HUD’s minimum sample size and that the sample is drawn from recently completed housing quality standards inspections.

We recommend that the Director of HUD’s New York Office of Public and Indian Housing require HPD to improve controls over its inspection process to ensure that program units meet housing quality standards and that the results of inspections are used to enhance the effectiveness of its housing quality standards inspections, thereby ensuring that an estimated $760,363 in future program funds is spent for units that meet HUD’s housing quality standards.

We recommend that the Director of HUD’s New York Office of Public and Indian Housing require HPD to reimburse its program $28,303 from non-Federal funds ($26,044 for housing assistance payments and $2,259 in associated administrative fees) for the six units that materially failed to meet HUD’s housing quality standards.

We recommend that the Director of HUD’s New York Office of Public and Indian Housing require HPD to certify, along with the owners of the 52 units cited in the finding, that the applicable housing quality standards violations have been corrected.

Provide technical assistance to the Authority to ensure that it properly manages its waiting list, properly uses its preference point system, and selects applicants in accordance with applicable requirements.

Provide documentation to show that the family that received the benefit of the $2,463 overpayment in housing assistance reimbursed the program or repay its program from non-Federal funds for any amount not reimbursed by the family.

Develop and implement controls to ensure that it follows the procedures it develops and implements to resolve recommendation 1E.

Develop and implement procedures for performing quarterly interim recertifications for families reporting zero income.