Public housing authorities operate in a highly regulated environment, balancing compliance with Housing and Urban Development (HUD) requirements, financial accountability, and tenant engagement.
Juggling all of these responsibilities, alongside the constantly evolving regulations, leaves room for small oversights that could have detrimental effects, putting your agency in the line of fire towards funding cuts, legal penalties, or reputational damage.
Compliance doesn’t need to be a burden, and housing authorities can avoid this slippery slope by building a culture of compliance in their agency and adopting strategic solutions.
Key Compliance Challenges Faced by Public Housing Authorities (PHAs)
Navigating the complex compliance landscape can be particularly challenging for Public Housing Authorities (PHAs). Understanding and addressing these key pitfalls is essential for ensuring effective governance and the well-being of the communities they serve.
Incomplete or Late Reporting
Housing authorities must continue to submit various reports to HUD in a timely manner. Missing a deadline or submitting incomplete information can result in penalties.
Example: The Houston Housing Authority (HHA) experienced this problem during the pandemic due to staff shortages and inadequate accounting software. HHA failed to meet this deadline, filing audits over two years late and preventing timely issue resolution, which featured them in an investigation in the Houston Chronicle.
Mismanagement of Federal Funds
Misallocating funds such as Section 8 grants for unauthorized expenses can result in audits, penalties, or repayment obligations.
Failure to Meet Fair Housing Requirements
Discrimination can occur in tenant selection, service delivery, or program administration, whether intentional or unintentional.
HUD offers a training program that reviews the most common violations that housing authorities experience, how this affects the individual, and how to take the correct actions going forward.
Neglecting Cybersecurity and Data Protection
Housing authorities handle sensitive tenant information, including personal details and financial reporting. Failing to secure this data can lead to breaches and legal repercussions.
Example: The Marin Housing Authority reported a $950K theft by hackers in 2024. This could have completely stopped a project they were working towards, navigating this new challenge to complete the project without this funding.
Inadequate Tenant Engagement
HUD requires housing authorities to demonstrate how they engage tenants in decision-making processes. Neglecting tenant feedback can lead to compliance issues and community distrust.
Building a Culture of Compliance
Compliance fosters a proactive and informed culture within your agency. Housing authorities can make compliance second nature by:
- Empowering staff to attend regular training sessions and ensuring they understand their role in compliance.
- Promote accountability for staff in their areas of responsibility and provide the necessary support.
- Celebrate success when your staff excels in maintaining compliance and meeting goals for the agency.
How to Invest in Software for Confident Compliance
Using the right tools can significantly simplify compliance processes and reduce human error.
Utilize Compliance Software
Compliance software, such as ReFrame Assist, can benefit agencies by providing streamlined reporting, effective fund management, and enhanced data security.
This software is specifically designed for HUD compliance and has been developed with input from former public housing authorities (PHAs) employees.
Implement Cybersecurity Protections
HUD-approved software often helps mitigate cybersecurity threats. Look for features like encryption, multi-factor authentication, and built-in security protocols to protect sensitive data proactively.
Engage with Tenants through Secure Digital Channels
All-in-one software solutions allow communication with tenants via a secure tenant portal. This includes survey tools to gather feedback, distribute updates, and maintain transparency.
Develop Clear Financial Policies
Choose software that ensures fund allocations comply with HUD guidelines and prevent unauthorized spending.
Conduct Regular Audits and Assign Ownership
Designate a staff member or team to be responsible for compiling and submitting reports. PHA management software like ReFrame Assist can facilitate data collection and automated distribution.
Invest in Ongoing Training Programs
Additionally, agencies can utilize training programs by HUD and industry associations for housing authority staff. Joining professional networks like NAHRO or PHADA can help connect with industry peers and access valuable compliance resources.
Though compliance can be complex, proactively addressing common issues enables housing authorities to avoid costly mistakes and maintain a strong relationship with their community and HUD.
Want to learn more about ReFrame Solutions? ReFrame Assist is the only solution custom built for PHAs and HUD management. Book a demo with our dedicated support team today.