Statewide Audit of Rent Determination, Tenant Selection, and Vacant Units at Local Housing Authorities

This is a 2012 Massachusetts State Auditor report on whether selected local housing authorities followed state rules for public housing applications, tenant selection, rent calculations, vacancies, lease addenda, and overhousing.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor conducted an audit to determine whether selected LHAs are complying with state regulations regarding tenant eligibility and selection criteria and rent determinations and redeterminations for Family Low-Income Housing, Elderly and Handicapped Low-Income Housing, and the Massachusetts Rental Voucher and Alternative Housing Voucher programs.”

When public housing units sit empty too long, people waiting for affordable housing lose out, and housing authorities lose rent money that could support operations.

“By not refurbishing vacant units within 21 working days as recommended by DHCD, the LHAs have deprived eligible applicants on their waiting lists (see Appendix C) of affordable housing and lost the opportunity to earn much-needed rental income.”

If you are a taxpayer, applicant, tenant, or local resident, this report points to whether public housing is being run fairly, whether rents are calculated correctly, and whether empty units are being filled quickly.

“These efforts are made to ensure that eligible low-income persons receive housing to which they are entitled as timely as possible.”

The biggest finding was excessive vacancies: 22 of 26 reviewed housing authorities had 2,276 units vacant beyond the recommended timeline, with about $1.6 million in possible rent not earned during the audit period.

“Our audit noted that these 22 LHAs had 2,276 units that were vacant well beyond the 21-day timeline recommended by DHCD’s Property Maintenance Guide.”

The auditor recommended that housing authorities fix compliance problems, ask DHCD for help when needed, and that DHCD monitor progress; DHCD said it would follow up with each cited housing authority.

“In addition, the Department will follow up with each individual housing authority cited, to provide necessary assistance to correct the individual findings.”

The report is significant because the reviewed authorities managed a large public housing portfolio, and the problems affected access to affordable housing, fairness in tenant selection, correct rent charges, and rental income.

“According to DHCD, there are currently approximately 83,042 units of state- and federally assisted public housing in Massachusetts that are administered by 234 local housing authorities (LHAs) and four regional housing authorities.”

An LHA is a local housing authority; DHCD is the state housing agency overseeing state-aided public housing; a Master Ledger is the permanent record of housing applications; overhousing means a household is in a unit with more bedrooms than appropriate for its size.

“The Master Ledger is the permanent ongoing record of all applications for housing including Preliminary Applications, Standard Applications, Emergency Applications, and Transfer Applications.”