HOUSING AUTHORITY OF THE CITY OF MISSION, TX

2023-001 - Public and Indian Housing - ALN No. 14.850 Criteria or Specific Requirement: HUD requies PHA's to timely follow its eviction and workout agreement policies. Condition: The PHA didn't timely follow its eviction and workout agreement policies. Cause: Unknown. Effect: The majority of the PHA's tenants failed to timely pay their monthly rental amounts. As a result, the year-end tenant accounts receivable balance increased to $528,266 (67% of tenant rental revenue). Bad debt expense caused mainly from increasing the allowance for doubtful accounts was $445,641 (56% of tenant rental revenue). Questioned Costs: $445,641 in bad debt expense. Repeat Finding: Not a repeat finding. Recommendation: The PHA should timely enforce its eviction and workout agreement policies. Response: The PHA is currently addressing outstanding Account Tenant Receivables in the following manner: We are contacting the families in sequence of the largest outstanding debt to lesser, these families are provided with an option to settle the debt via a Payment Agreement. The Agreement details total amount owed, a requirement of an initial down payment of 5% of the outstanding amount, the remainder is scheduled at a value of 10% of the families monthly adjusted income until full payment. Many families have abandoned their units upon completing these initial interviews, for these we will place their outstanding debt on HUD EIV module, and will be soliciting a collection agency contract for efforts to collect outstanding debt.