91% of units passed by MSHA fail HUD inspection

WASHINGTON, D.C. — "MaineHousing Authority has regularly inspected, and passed, housing units that don't meet HUD’s quality standards."

So reads a letter to Senator Susan Collins from HUD Inspector General David Montoya.

Montoya's letter is an interim update of the Office of Inspector General (OIG) audit of Maine State Housing Authority (MSHA). The OIG audit was requested by Collins last December after problems with housing in the Norway area were brought to light during an investigation by the Advertiser Democrat – Slumlords, shoddy oversight, taxpayer dollars ... living on Section 8.

MSHA had placed the blame for shoddy oversight solely on Avesta which, in turn, blamed a "rogue inspector" – Kay Hawkins.

"During the initial phase of the audit, we identified two concerns relating to inspections and are working closely with HUD officials to address them," reads the letter. "Our concerns involve the results of our physical inspections and whether the Authority [MSHA] has the capacity to implement its plan of action."

After inspecting the Norway units on October 28, MSHA cancelled its relationship with Avesta, brought all inspections in house and launched an internal audit.

However, the OIG questions whether MSHA has the capacity to manage the entire program in house. "Specifically, since 10 of the 11 units previously inspected directly by the Authority failed to meet HUD's housing quality standards, we are concerned that the Authority may not have the capacity and expertise to accomplish both a reorganization while effectively managing the inspection program."

Montoya indicated that the OIG inspected units that had passed the Authority's and Avesta's inspections. Of 32 units inspected, 30 did not comply.

Specifically, the letter states, 20 units inspected by Avesta and 10 units inspected by the Authority did not comply with HUD's housing quality standards, and several contained health and safety violations.

Inspectors from both MSHA and Avesta were responsible for inspecting these units and some units should not have been approved for initial occupancy. In addition, both agencies performed quality control inspections of each other's units. These inspections did not indicate problems with the inspection process, Montoya's letter reads.

In a statement, Senator Collins told the Bangor Daily News that the failed inspection rates were "shocking." 

"They indicate systematic failures by both Maine State Housing Authority and ... Avesta, rather than problems caused by one 'rouge investigator' as MSHA and Avesta previously had asserted," said Collins.

"The bottom line is people who live in federally subsidized housing should expect decent, safe and sanitary conditions," said the Senator. "Unfortunately, this report shows that federal funds are instead going to property owners who fail to properly maintain their units. This is absolutely unacceptable."

Photo:

This is one of a number of photos accompanying the OIG interim report to Senator Susan Collins.