AUGUST 2, 2018 REGIONAL INSPECTORS GENERAL AUDIT OF THE EVANSVILLE HOUSING AUTHORITY
The Housing Authority of the City of Evansville, Evansville, IN, Did Not Follow HUD’s and Its Own Requirements for Units Converted Under the Rental Assistance Demonstration
WHAT THE FEDERAL AUDITORS FOUND
The Authority did not follow HUD’s and its own requirements for the units converted under RAD. Specifically, it (1) did not ensure that units complied with HUD’s housing quality standards before it entered into a housing assistance payments contract, (2) failed to obtain the services of a HUD-approved independent third party to perform housing quality standards inspections for units owned by entities it substantially controlled, and (3) did not apply the correct contract rents for the converted units. As a result, the Authority could not support the eligibility of more than $1 million in housing assistance payments to the entities and more than $10,000 in program funds paid to a contractor for housing quality standards inspection services. Further, the application of incorrect rents led to the underpayment of housing assistance payments to the entities, so these funds were not available for the administration of the Authority’s Project-Based Voucher program.
For a copy of the entire Federal Audit of the Evansville Housing Authority please check the link attached below.