HomeMy WebLinkAboutMINUTES - 02122008 - SD.5 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Joseph Villarreal, Executive Director
DATE: February 12, 2008
SUBJECT: REPORT ON THE STATUS OF HUD OIG'S AUDIT REPORT 2007-LA-1004 RENT
REASONABLENESS
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
ACCEPT report providing information on the status of HUD OIG's audit report 2007-LA-1004 Rent
Reasonableness issued on December 15, 2006.
ll. FINANCIAL IMPACT:
The Authority reimbursed the U. S. Department of Housing and Urban Development (HUD)
$186,286.74 as a result of this audit.
III. BACKGROUND
HUD's OIG conducted an audit of the Housing Authority's system for determining rent
reasonableness in the Section 8 Housing Choice Voucher program. The audit report was issued on
December 15, 2006. The IG recommended that HUD's San Francisco Office of Public Housing should
require the Housing Authority to:
A) Either provide support for, or reimburse HUD, $82,659 in housing assistance payments
(HAP) where rent reasonableness was not determined properly;
B) Develop and implement adequate, HUD-approved policies and procedures for
performing and documenting rent reasonableness determinations, including adequate
quality control procedures;
C) Reimburse HUD $77,997 in administrative fees as a penalty for improperly administering
the rent reasonableness function;
D) Repay HUD $5,236 for subsidy overpayments resulting from processing delays;
E) Repay HUD $20,394.74 that was used to absorb Section 8 clients' portions of rent
increases due to late processing of rent change requests; and
CONTINUED ON ATTACHMENT: X YES SIGNATURE
oseph Villarreal,Executive Director
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON leo&24 �VO X'APPROVED AS RECOMMENDED OTHER
i
VOTE OF COMMISSIONERS
.[ I HEREBY CERTIFY THAT THIS IS A
l�L1NANIMOUS (ABSENT IY Ory ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTED �C`kOd1 ! )7 0
JOSEPH VICLARREAL,CLERK OF
THE BOARD OF COMMISSIONERS
AND EXECUTIVE DIRECTOR
BY O ' `�DEPUTY
H:\JudyHayes\MSOFFICE\WINWORD\BOARD\BBO-HUD OIG Audit 2007-LA-1004 Rent Comps Update 2-08.doc
OIG Status Report— Rent Comps
February 12, 2008
Page 2
F) Develop and implement written procedures that ensure the timely processing of rent
increase requests and address the reimbursement to HUD for payments using housing
assistance payment grant funds resulting from any of the Authority's errors or omissions
discovered after the fact. Additionally, the Authority must establish procedures to use
nonfederal funds to pay for its errors and omissions when the Authority is aware of the
reason for such payments.
IV. STATUS
The Authority has repaid all monies owed to HUD. The Board approved new rent reasonableness
policies at its December 18, 2007 meeting. These have been forwarded to HUD. Staff provided HUD with
all other procedures required. HUD is currently reviewing the Authority's submitted policies and procedures.
Once this is complete, HUD will either close the audit or require the Authority to make further revisions.