FAC Explorer

Audit 308702

FY End
2023-06-30
Total Expended
$4.82M
Findings
2
Programs
2
Organization: Casa De Primavera Apts, LLC - Dba Casa De Primavera 123-11222 (AZ)
Year: 2023 Accepted: 2024-06-12
Auditor: Dauby O'Connor & Zaleski LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
400647 2023-001 Significant Deficiency - N
977089 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.00M Yes 1
14.195 Section 8 Housing Assistance Payments Program $11,033 - 0

Contacts

Name Title Type
JDZNNJ34QMC4 Qing Chen Auditee
6022576788 Jeremy Wilson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - The balance of the mortgage loan under Section 207/223(f) of the National Housing Act as of June 30, 2023 is $3,891,583.

Finding Details

Finding 2023-001
Statement of condition 2023-001: As of June 30, 2023, deposits to the reserve for replacements totaling $768 had not been made. Criteria: Pursuant to Section 10 of the Regulatory Agreement, the Company shall deposit a monthly amount into the reserve for replacements account. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD. Effective April 1, 2023, HUD increased the monthly deposit from $8,012 to $8,396. Effect: The Company was not in compliance with the terms of the Regulatory Agreement. The reserve for replacements was underfunded by $768 as of June 30, 2023. Cause: Effective April 1, 2023, HUD increased the monthly deposit from $8,012 to $8,396. Management inadvertently did not increase the monthly deposit until June 2023. In addition, the initial notice to cover the $768 shortfall sent to management from the lender was not received by management until July 17, 2023. Recommendation: Management should transfer $768 from the operating checking account to the reserve for replacements. Management's response: Management concurs with the finding and recommendation and transferred $768 to the reserve for replacements on August 11, 2023.
Finding 2023-001
Statement of condition 2023-001: As of June 30, 2023, deposits to the reserve for replacements totaling $768 had not been made. Criteria: Pursuant to Section 10 of the Regulatory Agreement, the Company shall deposit a monthly amount into the reserve for replacements account. The amount of the monthly deposit may be increased or decreased from time to time at the written direction of HUD. Effective April 1, 2023, HUD increased the monthly deposit from $8,012 to $8,396. Effect: The Company was not in compliance with the terms of the Regulatory Agreement. The reserve for replacements was underfunded by $768 as of June 30, 2023. Cause: Effective April 1, 2023, HUD increased the monthly deposit from $8,012 to $8,396. Management inadvertently did not increase the monthly deposit until June 2023. In addition, the initial notice to cover the $768 shortfall sent to management from the lender was not received by management until July 17, 2023. Recommendation: Management should transfer $768 from the operating checking account to the reserve for replacements. Management's response: Management concurs with the finding and recommendation and transferred $768 to the reserve for replacements on August 11, 2023.