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Home » Texas Site Subsidized Unsupported Tenants and Uninspected Units

Texas Site Subsidized Unsupported Tenants and Uninspected Units

Sep 24, 2018

HUD’s Office of Inspector General (OIG) audited the multifamily Section 8 Project-Based Rental Assistance (PBRA) program at the Louis Manor Apartments in Port Arthur, Texas, because OIG’s analysis of Tenant Rental Assistance Certification System data showed red flag indicators at Louis Manor that appeared to be similar to the conditions it found during its previous multifamily audits. This is the fourth audit in a series of regional reviews of multifamily Section 8 PBRA programs. OIG sought to determine whether the owner administered its Section 8 PBRA program in accordance with applicable requirements.

Auditors found that the owner didn’t administer its Section 8 PBRA program in accordance with applicable requirements. Specifically, the owner: (1) billed HUD for at least 14 tenants whose eligibility it couldn’t support; (2) didn’t complete annual recertifications in a timely manner; (3) over-housed tenants; and (4) didn’t conduct the required annual inspections.

These conditions occurred because the owner and its identity-of-interest management agent didn’t implement appropriate controls and lacked proper oversight of staff to ensure that its Section 8 PBRA program was administered in accordance with HUD regulations. As a result, the owner received $268,452 in housing assistance payments for 14 tenants whose eligibility and unit physical condition standards it couldn’t support. Further, the owner couldn’t assure HUD that tenants received subsidies based on accurate income information, which could adversely affect the amount of funds available for other eligible families.

Auditors recommended that the Southwest Region Director of Multifamily Housing require the owner to: (1) support or repay HUD $268,452 for tenants whose eligibility the owner couldn’t support; (2) conduct annual recertifications in a timely manner; (3) properly house tenants in the correct unit size; (4) perform the required annual inspections; and (5) implement appropriate controls to ensure that tenants are eligible, housing assistance subsidies are accurate, units are inspected as required, and tenant files contain all required documentation.

  • HUD Audit 2018-FW-1006
HUD Audits
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