HUD OIG: 74 of 75 reinspected New Orleans voucher units had deficiencies

The HUD Office of Inspector General audited the Housing Choice Voucher (HCV) Program of the Housing Authority of New Orleans. The audit tested whether the physical condition of program units complied with HUD's requirements and the Authority's own. The report, number 2026-CH-1002, was issued Sept. 18, 2026.

The auditors found the Authority did not always ensure its units met HUD's housing quality standards (HQS). Of 75 units reinspected, 74 had a total of 591 deficiencies. Of those 74 units, 70 had a total of 339 deficiencies that existed at the time of the Authority's inspection. Another 66 units had a total of 303 life-threatening deficiencies requiring correction within 24 hours.

The Authority did not stop housing assistance payments to owners for uncorrected deficiencies in a timely manner. It also did not attempt to coordinate with local public health departments at least quarterly to identify cases of elevated blood levels in children under 6 years of age. It was unaware that tenants reported 11 potential cases to its contractor during inspections.

The report attributes the findings to several causes. The Authority's contractor did not thoroughly inspect units for HQS compliance, and the Authority relied on the contractor without adequately overseeing its performance. The Authority lacked adequate policies for managing potential cases of elevated blood levels. Its staff was not aware of HUD's data collection and recordkeeping requirements. It also did not require the contractor to notify it of tenant-reported issues.

The report states that families resided in units that were not always decent, safe, and sanitary. Based on its statistical sample, the OIG estimates that over the next year, without corrective actions and better inspections, the Authority could pay owners more than $171 million in housing assistance for units that do not meet HQS. The Authority paid $22,992 for units with uncorrected deficiencies.

The OIG recommends that HUD require the Authority to provide evidence that owners corrected deficiencies and to enforce stop payment abatement procedures, including terminating the HAP contract if deficiencies are not corrected. It also recommends collecting $22,992 from non-Federal funds, strengthening inspection controls, and training the contractor's inspectors. HUD should also consider referring owners to its Departmental Enforcement Center.