Loading...
HomeMy WebLinkAboutMINUTES - 05132008 - SD.4H (2) t r_ HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA _ I TO: BOARD OF COMMISSIONERS 4 sp:ooe FROM: Joseph Villarreal, Executive Director DATE: May 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 I. 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 $289,206 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 $123,314 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 oscph illarrcal,Executive Director RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON DSI 151 O APPROVED AS RECOMMENDED. OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT"PHIS IS A UNANIMOUS (ABSENT_ .iVti CS�—� ) 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 © O JAI-Ph VILLARREAL,CLERK OF THE BOARD OF COMMISSIONERS AND EXECUTIVE DIRECTOR BY TY H:\JudyHayes\MSOFFICE\WINWORD\BOARD\BO-HUD OIG Audit 2007-tA-1004 Rent Comps Updat 5-08.doc OIG Status Report— Rent Comps May 13, 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 HUD has closed this audit. The Authority has complied with all requirements. The close out letter from HUD is attached. 0Q*Q,t M��ENT OpNO q O`Ij!1��C U.S.Department of Housing and Urban Development *�IILIJII�I ?� San Francisco Regional Office-Region IX 'a W 450 Golden Gate Avenue 9BN DEVF.'O San Francisco,California 94102-3448 www.hud.gov espanol.hud.gov 3 20GJ Mr. Joseph Villarreal A. ' Executive Director The Housing Authority of the County of Contra Costa 3133 Estudillo Street, P.O. Box 2759 . Martinez, CA 94553 Dear Mr. Villarreal: Subject: OIG Audit Report 2007-LA-1004 We are pleased to advise you that with the implementation of corrective action for Recommendation 2B,Determine additional HAP funds that the Authority used to absorb the tenants'portion of rent increases due to late processing of rent. . . and repay HUD that amount from the Authority's administrative fee reserve, the audit is closed. We appreciate your support and cooperation in addressing and resolving the deficiencies identified in the audit.. Sincerely, .ASte en Sc hnellerr ;Director Office of Public Housing