U.S. Department of Housing and Urban Development Section 8 Compliance Review Copyrighted
September 5, 2023
City of Dubuque Action Items # 011.
City Council Meeting
ITEM TITLE: U.S. Department of Housing and Urban Development Section 8
Compliance Review
SUM MARY: City Manager recommending City Council receive and file the U.S.
Department of Housing and Urban Development Compliance Monitoring
Review and approve the city's response to the findings in the review.
SUGGESTED Suggested Disposition: Receive and File;Approve
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
HUD Compliance Review Findings Supporting Documentation
Response to Compliance Review Findings Supporting Documentation
Dubuque
THE CITY QF �
All-Meriea Ciry
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: US Department of Housing and Urban Development Compliance Review
DATE: August 31, 2023
Housing and Community Development Director Alexis Steger is recommending City
Council receive and file the US Department of Housing and Urban Development
Compliance Monitoring Review and approve the city's response to the findings in the
review.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing and Community Development Director
�u� Housing and Community Development
THE CITY OF
AII�AmeeicaCiq� � Assisted Housing Program
�T T8 .�., +�����r � 350 W. 6th Street, Suite 312
�J Dubuque, IA 52001
�0°7.2°72 E4Ua`"°�s�"� Office (563) 589-4230
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
DATE: August 31, 2023
RE: US Department of Housing and Urban Development Compliance Review
BACKGROUND
The City of Dubuque serves as a Public Housing Authority (PHA) to provide housing
assistance to low-income residents. The program is funded by the U.S. Department of
Housing and Urban Development (HUD), which occasionally reviews process and
procedures utilized by the City of Dubuque PHA to ensure compliance with Federal
Regulations.
HUD completed an on-site Compliance Monitoring Review (CMR) June 6-8, 2023 and
completed the off-site review on June 29, 2023.
A letter of findings and observations was provided to the City of Dubuque on August 2,
2023, and required corrective actions within 30 days.
DISCUSSION
The CMR from HUD states "The review team agrees that the Housing Authority,
including the ED, Board, and staff, are committed to improving the operations of
the Housing Authority". The letter also states that the City of Dubuque is a High
PerFormer as scored by the Section Eight Management Assessment Program
(SEMAP) for FYE June 30, 2022, which was the year under review.
During the review, there were 2 findings noted and 7 observations. Findings need
to be corrected for the City to remain in compliance with all Federal Regulations
of the program. The 2 findings with required corrective actions were:
Finding #1: It was noted that a member of the Dubuque City Housing
Commission (Commission), which advises the Housing Authority Board
on housing related matters, is a landlord with HCV Tenants. If the PHA
Board appointed the Housing Commission to advise it on the program,
the Housing Commission can be deemed an employee or agent of the
PHA.
Corrective action: The commission member must either resign from the
commission, or seek a good cause waiver in accordance with 24 CFR
982.161 and the ACC. The city may choose to disband the Commission.
The family being assisted in the unit may be required to re-locate if
neither of these options are feasible.
Finding #2: Included in the briefing packet is a notice regarding
reasonable accommodations, however the notice does not contain
required regulatory language.
Corrective action: Please revise the briefing packet information to
include the notice as stated in the regulatory citation.
Finding #1 allows for several options for the City of Dubuque for corrective
actions. The Housing and Community Development Department is currently
reviewing the city ordinances that govern the commissions affected by this
finding. The purpose of each commission will be reviewed and a
recommendation for changes to the ordinance will be brought to the City Council
in October to ensure compliance with Federal Regulations.
Finding #2 was a simple fix, and the language was updated the same day HUD
asked for the change in June 2023.
In addition to the findings there were 7 observations, which are suggestions from
HUD staff to help the program run smoothly and prevent any errors from
occurring when processing over 2,000 individual files a year.
The City of Dubuque has chosen to adopt each recommendation from HUD
regarding these observations. Each change has already been implemented.
Overall, the CMR showed that the Section 8 programs are run very well in
Dubuque. Housing staff are highly committed to running a great program for
those with housing needs and the closing comment from the HUD staff that
completed the on-site monitoring demonstrates that HUD sees this commitment;
"This office would like to thank the Dubuque Housing Authority Board and staff for
the courtesy and cooperation shown to the HUD review team during our visit. As
evident from the visit, the Housing Authority is helping to serve important housing
needs in the Dubuque area. As outlined in this report, the Housing Authority has a
few opportunities for improving compliance in various areas. We appreciate the
Housing Authority's responsiveness to HUD's recommendations in areas where
compliance is lacking, or performance can be improved."
RECOMMENDATION
I respectfully request City Council receive and file the Compliance Monitoring Review
and approve the city's response to the findings in the review.
Cc: Crenna Brumwell, City Attorney
P�.�MENTpFy U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
�� n�����n °�,� KANSAS/MISSOURI STATE OFFICE
� * * �, Gateway Tower II, Room 200
�2° �� ����� � 400 State Avenue
� � Kansas Cit KS 66101-2406
Y�
G9eqN DE�E�'�e HUD Home Page: www.hud.gov
August 2, 2023
Alexis Steger
Executive Director
Dubuque Housing Authority
350 West 6th St. Suite 312
Dubuque, IA 52001
Dear Ms. Steger,
This letter is to transmit the results of the Public and Indian Housing (PIH) Compliance
Monitoring Review (CMR) that the HUD Kansas City Regional Field Office staff recently
conducted. The onsite visit to the Dubuque Housing Authority (Housing Authority), IA087, was
conducted on June 6-8, 2023, and was completed on June 29, 2023. PIH staff reviewed the
performance of the Housing Authority's programs and compliance with HUD program
requirements and regulations.
The objective of the monitoring review team was to perform a limited review focused on
compliance with program requirements and regulations. While performance issues may be noted
in this report, the primary focus is compliance. Rather than examining any one area
e�austively, this review touches on multiple areas of compliance to provide the Housing
Authority with meaningful feedback for sustained compliance. The review team reviewed
materials from all the Housing Authority's primary program areas and interviewed staff
members to understand better the efforts to comply with HUD regulatory and statutory
requirements.
The results of the review are enclosed in the attached report. It includes discussion of
areas where the Housing Authority's performance and compliance are strong, as well as
recommendations for ongoing improvement. Please review the report in detail and respond to
this office within 30 calendar days with your corrective action plan.
Should you have any questions concerning this matter, please contact Stacey Anderson,
Portfolio Manager, at (913) 551-5483, or stacey.a.anderson@hud.gov.
Sincerely,
TANYA b yTANYA ned
PRICEPRICEBURGIN
Date:
B U RG I N 2ozs.os.oz
12:01:18-05'00'
Tanya Burgin
Director
Office of Field Operations
Depart of Housing and Urban Development
cc:
Board of Directors
2
Compliance Monitoring Review Report
Dubuque Housing Authority - IA087
July 27, 2023
Executive Summary
The Dubuque Housing Authority (Housing Authority) participated in the 2023
Compliance Monitoring Review (CMR) conducted by HUD's Office of Public Housing. Four
members of the Field Office staff reviewed the Housing Authority's programs and compliance
with HUD program requirements and regulations. The review team agrees that the Housing
Authority, including the ED, Board, and staff, are committed to improving the operations of the
Housing Authority.
Background
The Housing Authority is in Dubuque, IA. It administers 1125 vouchers on the Housing
Choice Voucher(HCV) Program. The Housing Authority staff consists of the Executive
Director and other staff inembers. The Housing Authority is governed by the City of Dubuque
and the Dubuque City Council acts as the Board of Directors with the Mayor as Board
Chairperson. The City of Dubuque Housing Commission advises the Board.
The HCV program is designated as a Section Eight Management Assessment Program
(SEMAP) High performer for FYE June 30, 2022. SEMAP measures the performance of Public
Housing Agencies that administer the HCV program.
Results
Detailed results of the PIH CMR are presented below, by area and program. The review team,
cited the Housing Authority for the following:
• 2 Findings
• 7 Observations
As further detailed in this report, the Housing Authority also has areas in which it can improve,
including:
• Compliance with HUD rules and regulations
• Compliance with Housing Authority policies and procedures
Governance
The HUD review team reviewed the Housing Authority's bylaws,board minutes,policies, and
supporting materials. Based on this review, the review team reports the following findings and
results.
Finding#1: It was noted that a member of the Dubuque City Housing Commission
(Commission), which advises the Housing Authority Board on housing related matters, is a
landlord with HCV Tenants. If the PHA Board appointed the Housing Commission to advise it
on the program, the Housing Commission can be deemed an employee or agent of the PHA.
3
• Regulatory citation: 24 CFR 982.161 and Section 18 of the Annual Contributions
Contract (ACC) states that any employee of the PHA, or any contractor, subcontractor or
agent of the PHA, who formulates policy or who influences decisions with respect to the
programs, may not enter any contract or arrangement in connection with the HCV
program. In addition, the PHA may not enter any contract ar arrangement in connection
with the HCV program with any public official, member of a governing body, or State or
local legislator, who exercises functions or responsibilities with respect to the programs.
982.161(a)(3) and ACC Section 18. There is no exception for non-voting commissioners
• Corrective action: The commission member must either resign from the commission, or
seek a good cause waiver in accordance with 24 CFR 982.161 and the ACC. The city
may choose to disband the Commission. The family being assisted in the unit may be
required to re-locate if neither of these options are feasible.
Observation #1: Ethics training for Board Members included exceptions per the IOWA Code
Section 385.2. These exceptions are not listed in 24 CFR 982.161 Conflict of Interest.
o Regulatory citation: 24 CFR 982.161 does not list specific exceptions but
does in part state that the conflict-of-interest prohibition under this section
may be waived by the HUD field office for good cause.
o Recommendation: The Housing Authority should ensure Board Members are
aware that the exceptions noted in Iowa Code Section 385.2 are not included
in 24 CFR 982.161 and that these exceptions would have to be waived by the
HUD Field Office if needed.
Housin� Choice Voucher (HCV)
The HUD team reviewed the Housing Authority's voucher utilization, reporting, Housing
Assistance Payments (HAP)register, financial statements, HCV policies,payment standards,
utility allowance schedule(s), tenant files, and (wherever possible) supporting materials. Based
on this review, the review team reports the following findings and results.
Finding#2: Included in the briefing packet is a notice regarding reasonable accommodations,
however the notice does not contain required regulatory language.
o Regulatory citation: 24 CFR 982.301 (b)(12� states a notice must be
provided stating if the family includes a disabled person, the family may
request a listing of available accessible units known to the PHA.
o Corrective action: Please revise the briefing packet information to include
the notice as stated in the regulatory citation.
Observation #2: Due to clerical error, an incorrect payment standard was used in one file
reviewed. There was no impact on the family share payment, as the gross rent was less than the
correct payment standard.
o Regulatory citation: 24 CFR 982.515-517 states in part how the tenant
payment should be calculated.
o Recommendation: Please ensure there are proper procedures in place so that
the correct payment standard is always used.
4
Observation #3: The Housing Authority is required to set their payment standards between 90
percent and 110 percent unless a HUD-approved waiver is place. An incorrect payment standard
was used for zip code 52003.
o Regulatory citation: 24 CFR 982.503 (b)(1)(i) states in part that the Housing
Authority may establish the payment standard amount for a unit size at any
level between 90 percent and 110 percent of the published FMR.
o Recommendation: Please ensure the correct payment standard range is used
for all zip codes. The Housing Authority has corrected the error during
SEMAP scoring; thus, this Finding was reduced to an observation.
Violence A�ainst Women's Act(VAWA)
The HUD team reviewed the Housing Authority's VAWA policies, procedures, and (wherever
possible) supporting materials. Based on this review, the team reports the following
observations and results.
Observation #4: Housing Authorities must provide HUD forms 5380 and 5382 to all families
upon admission to the program. The Housing Authority supplies both forms in their briefing
packet which satisfies the requirement, however, form 5382 lists 5380 as the form number.
o Regulatory citation: 34 U.S.C. 12491(d)(2)B) and 24 CFR 5.2005(a)(2)(ii))
states in part that a covered housing provider must provide to each of its
applicants and to each of its tenants the Notice of Occupancy Rights and the
certification form.
o Recommendation: Please revise HUD form 5382 to list the correct form
number.
Observation #5: The Housing Autharity's Administrative Plan discusses emergency transfers
for VAWA recipients as required. However, on page 17-51 the language states the Housing
Authority will move a victim to a Public Housing unit. No Public Housing units are available for
transfer as this Housing Authority does not run a Public Housing program.
o Regulatory citation: 24 CFR 5.2005 (e)(9) states the emergency transfer plan
must describe policies for a tenant who has tenant-based rental assistance and
who meets the requirements of paragraph (e)(2) of this section to relocate
quickly with assistance.
o Recommendation: Please update the Administrative Plan to remove
references to Public Housing units.
Family Self- Sufficiency (FSS)
The HUD team reviewed the Housing Authority's FSS policies,procedures, and(wherever
possible) supporting materials. Based on this review, the team reports the following
observations.
Observation #6: The FSS job description does not match the NOFO. The Housing Authority
stated that job descriptions are vetted through the Human Resources Department and must be
vague.
5
o Recommendation: Please notify the Human Resources Department about
NOFO requirements that states the FSS job description should correspond to
NOFO requirements, and the actual tasks performed. This information can be
found in the Eligible Activities section in the most recent NOFO.
Observation #7: The Housing Authority stated that there was a recent software conversion.
This software conversion may have impacted PHA reported records and PIC data.
o Recommendation: Compare all PHA records against PIC records to ensure
that PHA records successfully match PIC data.
Proiect Based Voucher (PBV)
The HUD team reviewed the Housing Authority's PBV policies, procedures, and (wherever
possible) supporting materials. Based on this review, the team reports zero findings and
observations.
Conclusion
This office would like to thank the Dubuque Housing Authority Board and staff for the
courtesy and cooperation shown to the HUD review team during our visit. As evident from the
visit, the Housing Authority is helping to serve important housing needs in the Dubuque, Kansas
area. As outlined in this report, the Housing Authority has a few opportunities for improving
compliance in various areas. We appreciate the Housing Authority's responsiveness to HUD's
recommendations in areas where compliance is lacking, or performance can be improved.
Within 30 days of the date of this report,please provide a Corrective Action Plan (CAP) that
includes the requested documentation as well as the following to address each of the findings.
• The PHA's analysis of the root causes that led to the finding.
• The actions that will be taken to prevent the recurrence of the finding.
• The methods by which the PHA will monitor their corrective action to ensure the finding
is remediated fully.
6
Internal HUD Distribution:
7APH Official File 7APH Read File
Identification Lines:
Correspondence Originator Concurrence Concurrence Concurrence Concurrence Concurrence Concurrence Concurrence
Code 7APHI
Name Anderson Baugh Johnson Abney Burgin
Date 7.10.23 7/10/23 7/10/23
Official Record Copy U.S.Department of Housing and Urban Development form HUD-713.1(02/03) Previous edition is obsolete.
7
Dubuque Housing&Community Develol�ment
THE CITY OF � Depai�tment
All•AmerisaCiry 350 West 6`h Street,Suite 312
U� � � 'P' '� Dubuque,[owa 52061
� � Office(563)589-4230
I � � Fax(563)690-6693
2007•2012�2013
Mc�sterpiece on tl�e Mississippi �ol�*zoi9
August 29, 2023
Tanya Burgin
U.S. Depar�ment ofi Housing & Urban De�elopment
Kansas Field Off�ce
Gateway Tower II, Room 200
400 State A�enue
Kansas City, Kansas fi�101-2406
Dear Ms. Burgin,
The City of Dubuque is committed to impro�ing �rocess and procedure on a regular basis,
so the findings and observations that were presented in the Compliance Re�iew Findings
fetter were a top priority �for the PHA. The corrective actions listed below will describe #he
state of the corrective actions as of August 28th, 2023.
Findi�ng #1 Conflict of Interest: A member of the Dubuque City Housing Commission
(Cammission), which advises the Housing Authority Board on housing related matters, is a
landlord with HCV Ter�ants.
Corrective Action: The City of Dubuque Housing Commission meetings were temporarily
suspended awaiting ti�e compliance review findings. Th�s suspension will continue to allow
the City of Dufi�uque to revisit the duties assigned to the Housing Commission and the City
wi[I tak� one of the following actions:
1 . Disband the Housing Cor�mission
2. Remo�e memfi�ers who are landlords, re-write the ordinance controlling the
members allowed to exclude ar�y HCV Landlorcfs.
3. Re-write the ordinance governing the duties of#he Cammission to exclude
ad�ising the Housing Authority Board on all Section 8 Program matters.
The City of Dubuque will continue the suspension of the Hausing Commission untif one
af the above actions is im�lemented and will update the HUD Field 4ffice as to which ofi
the above actions was taken at that time.
Observation #1 Eth9cs Training Updates Needed for Board Members: lowa code
Section 385.2 does not list 24 CFR 982.'[fi1 Conflict of Irtterest provisions specifically and
Board fVlembers were oniy trained on lowa Code Sectior� 385.2.
Corrective Action: The City of Dubuque will provide 24 CFR 982.1�1 in all new board
member orientat9on packets and will train specifically on Canflict o# Interest as s�ated in
Service People IniegriYy ResponsihiliEy Innovation Teamwork
that section once each year in conjunction with annual budget hearing meetings for the
Housing and Commur�ity De�elopment Department.
Finding #2 Briefing Packet M�ssEng Reasonable Accommodation Notice: Included in
the briefing packet is a notice regar�ing reasonable accommodations, however the notice
does not contain required regulatory language.
Corr�ctive Ac#ion: Regulatory language was added on the Reasonable Accommodatian
page of the Briefing Packet and in the Unit Search of the Briefing Packet. The u�dated Unit
List will be posted to the website as well.
Observation #2 Incorrect Payment Standard Usage (Participant): Due to clerical error,
an incorrect payment standard was used in one file reviewed. There was no impac� on fhe
family share payment, as the gross rent was less than the correct payment standard.
Corrective Action: Files are monitored during SEMAP review, and all re�orts are run
thraugh PIC and discrepancies are researchedlfixed. Compliance and process vuill be a
monthly tapic at the bi-weekly Assisted Housing Staff me�tings to help with und�rstanding
haw these er�ors can be missed and how to prevent them.
Obserrrat�on #3 Incorrect Payment Standard (Program): An incorrect payment
sfiandard was used for zip code 52003,
Corrective Action: This errar was due to an incorrect formula in an excel spreadsheet.
T�is was corrected and the pracess for updated payment standards now requires two
employees approve any changes to ensure com�l�ance with the 9d% to 110% of �MR.
Observation #4 Form # Listed lncorrectly; Housing Authorities must pro�ide HUD
forms 5380 and 5352 �o all families upan admission to the program. The Housing Authority
supplies both forms in their briefing packet which satisfies the requirement, hawever, form
5382 lists 5380 as the form n�mber.
Corrective Action: The updated version witha�t tf�is error was pulled from the HUD
website and pfaced in the briefing packet and into the ne#work drives. All of� versions were
deleted, so they could not be unintentionalEq used.
�bservation #5 VAWA reference to Public Housing Units: The Housing Authority's
Administrati�e Plan discusses emerger�cy transfers for VAWA recipients as required.
However, on page 17-51 the language states the Housing Authority wili move a �ictim to a
PublEc Housing unit. No Public Housing units are available for transfer as this Housing
Authority does not run a Public Housing program.
Corrective Action: These sections were removed from the Admi�istrative Plan and the
re�ised pian wiil be adopted with H�TMA changes.
Observation #6 �SS Job Description: The FSS job description does r�ot match the
NOFO. The Housing Authority stated that job descriptions are �etted through the Hurnan
Resources Depar�ment and must be vague.
Sarvice People Entegriry Responsihiliry Innovation Teaarswark
Correcti�e Action: The Job Description will be updated when the positian becomes
vacant and requires a pu�lic posting,
Observation #7 PHA Data Ma#ching PIC Data: The Housing Authority stated that �here
was a recent software conversion. This software conversion may have impacted PHA
reported records an� PIC data.
Correctirre Actian: After re�iew, the PHA has na concerns that errors are from the
software but afe errors in the PIC reporting system. The PIC coach has been contacted to
cor�tinue this conversation to ensure proper data matching.
The City of Dubuque is continuously warking to ensure all federal laws and guideiines are
followed in the pursuit fo serve our residents well. Thank you for the fallow-up from the
Compliance Monitoring Review to help ensure we continue to adhere to all laws and
regulations that are reguired and that all materiais can be well understood by par�icipants.
If you ha�e acfditional questions or concerns, please do not hesitate fo contact me at: 563-
G9Q-6072 or asteqer(�cityofdubuque.org.
Sincerely,
-,�
�"�"
/
Alexis Steger, CPA
Hous�ng & Community Development Director
Service Peopla lntegriry Res�onsibiliry ]nnovation Teamwurk