HomeMy WebLinkAboutMINUTES - 03182008 - SD.4 y �
spy
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Joseph Villarreal, Executive Director
DATE: March 18, 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
1. RECOMMENDED ACTION:
ACCEPT report providing information on the status of the U. S. Department of Housing and Urban
Development's (HUD) Office of Inspector General's (OIG) audit report 2007-LA-1004 Rent
Reasonableness issued on December 15, 2006.
II. FINANCIAL IMPACT:
The Authority reimbursed HUD $186,286.74 as a result of this audit.
111. 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)
o: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;
CONTINUED ON ATTACHMENT: _X—YES SIGNATURE
Joseph Villarreal,Executive Director
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT ) 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
JOSEPH VILLARREAL, CLERK OF
THE BOARD OF COMMISSIONERS
AND EXECUTIVE DIRECTOR
BY DEPUTY
C:\Documents and Setting s\jhayes.000HA\Local Settings\Temporary Internet Files\OLK2130\60-HUD OIG Audit 2007-LA-1004 Rent Comps
Update 3-08.doc
OIG Status Report — Rent Comps
March 18, 2008
Page 2
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
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
Upon review by OIG staff, HUD required a further analysis of item E. The Authority is currently
involved in this process and it is likely that further monies will be owed to HUD. At this time it is believed that
all other items have been cleared.