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Home » Charleston-Kanawha Housing Authority Didn’t Correctly Calculate Housing Assistance Payments

Charleston-Kanawha Housing Authority Didn’t Correctly Calculate Housing Assistance Payments

Sep 12, 2013

HUD audited the Charleston-Kanawha Housing Authority’s Housing Choice Voucher (HCV) program because: (1) it received more than $13.7 million in program funding in fiscal year 2012; (2) it’s the largest assisted housing agency in West Virginia; and (3) HUD had never audited its HCV program. The audit objectives were to determine whether the authority ensured that its HCV program units met HUD housing quality standards (HQS) and whether it applied the appropriate payment standard when calculating housing assistance.

The auditors found that the authority didn’t conduct adequate inspections to ensure that its program units met HQS. Of 66 program units statistically selected for inspection, 47 didn’t meet HQS. Further, 20 of the 47 units were in material noncompliance with HQS. The authority disbursed $22,025 in housing assistance payments and received $857 in administrative fees for these 20 units.

Also, the auditors found that the authority didn’t always apply the correct payment standard when calculating housing assistance payments. It made ineligible housing assistance payments totaling $14,505 for 34 tenants that it recertified using its new software program from September 2012 to January 2013.

The auditors recommended that HUD require the authority to: (1) reimburse its program $22,882 from nonfederal funds for the 20 units that materially failed to meet HQS; (2) implement procedures and controls to ensure that program units meet HQS, thereby ensuring that an estimated $3.2 million in program funds is expended for units that are decent, safe, and sanitary; (3) reimburse its program $14,505 from nonfederal funds for the ineligible overpayment of housing assistance; and (4) ensure that the flaw in its new software program is corrected so that the software program determines the payment standard properly and thereby avoid making overpayments of $228,473 in future housing assistance.

  • HUD Audit Report 2013-PH-1005: Charleston-Kanawha Housing Authority, Charleston, WV (7/17/13)
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