Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2023-001: The Corporation has not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2023, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis and all delinquent tax returns should be filed as soon as possible.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $54,750
Statement of condition 2023-002: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to return funds to the Corporation. The agreement required $3,000 to be returned to the Corporation during the year ended December 31, 2023. The Board of Directors returned $250 during the year ended December 31, 2023. At December 31, 2023, the Board of Directors owes $54,750 to the Corporation.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement or the repayment agreement entered into on June 10, 2022. As of December 31, 2023, the reserve for replacements account is underfunded by $54,750.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding the use of the reserve for replacements or the repayment agreement with HUD regarding the repayment of prior year unapproved disbursements from the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval in accordance with the repayment agreement entered into with HUD on June 10, 2022.
Completion Date: In Process
Management's response: Agree. The Board of Directors is working on making the delinquent deposits for 2023 and all future deposits as required in the repayment agreement entered into with HUD on June 10, 2022.
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2023-001: The Corporation has not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2023, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis and all delinquent tax returns should be filed as soon as possible.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $54,750
Statement of condition 2023-002: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to return funds to the Corporation. The agreement required $3,000 to be returned to the Corporation during the year ended December 31, 2023. The Board of Directors returned $250 during the year ended December 31, 2023. At December 31, 2023, the Board of Directors owes $54,750 to the Corporation.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement or the repayment agreement entered into on June 10, 2022. As of December 31, 2023, the reserve for replacements account is underfunded by $54,750.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding the use of the reserve for replacements or the repayment agreement with HUD regarding the repayment of prior year unapproved disbursements from the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval in accordance with the repayment agreement entered into with HUD on June 10, 2022.
Completion Date: In Process
Management's response: Agree. The Board of Directors is working on making the delinquent deposits for 2023 and all future deposits as required in the repayment agreement entered into with HUD on June 10, 2022.
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2023-001: The Corporation has not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2023, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis and all delinquent tax returns should be filed as soon as possible.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $54,750
Statement of condition 2023-002: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to return funds to the Corporation. The agreement required $3,000 to be returned to the Corporation during the year ended December 31, 2023. The Board of Directors returned $250 during the year ended December 31, 2023. At December 31, 2023, the Board of Directors owes $54,750 to the Corporation.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement or the repayment agreement entered into on June 10, 2022. As of December 31, 2023, the reserve for replacements account is underfunded by $54,750.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding the use of the reserve for replacements or the repayment agreement with HUD regarding the repayment of prior year unapproved disbursements from the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval in accordance with the repayment agreement entered into with HUD on June 10, 2022.
Completion Date: In Process
Management's response: Agree. The Board of Directors is working on making the delinquent deposits for 2023 and all future deposits as required in the repayment agreement entered into with HUD on June 10, 2022.
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2023-001: The Corporation has not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2023, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis and all delinquent tax returns should be filed as soon as possible.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $54,750
Statement of condition 2023-002: During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to return funds to the Corporation. The agreement required $3,000 to be returned to the Corporation during the year ended December 31, 2023. The Board of Directors returned $250 during the year ended December 31, 2023. At December 31, 2023, the Board of Directors owes $54,750 to the Corporation.
Criteria: Pursuant to the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Property.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement or the repayment agreement entered into on June 10, 2022. As of December 31, 2023, the reserve for replacements account is underfunded by $54,750.
Cause: The Board of Directors did not comply with the HUD Regulatory Agreement regarding the use of the reserve for replacements or the repayment agreement with HUD regarding the repayment of prior year unapproved disbursements from the reserve for replacements.
Recommendation: The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval in accordance with the repayment agreement entered into with HUD on June 10, 2022.
Completion Date: In Process
Management's response: Agree. The Board of Directors is working on making the delinquent deposits for 2023 and all future deposits as required in the repayment agreement entered into with HUD on June 10, 2022.