Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: Q – Failure to make mortgage payments
Finding resolution status: Unresolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: Not applicable
Statement of condition #2024-001: The Corporation's Flexible Subsidy Loan was due in full upon
maturity of the Corporation's Section 202 mortgage loan, which occurred March 1, 2017. As of June
30, 2024, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default
on the Flexible Subsidy Loan.
Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible
Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan.
Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement.
Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a
request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the
deferment request.
Recommendation: Management should continue communicating with HUD in order to obtain
approval for the deferment request for the Section 201 Flexible Subsidy Loan.
Management's response: Agree. Management has submitted a request for deferment of the Flexible
Subsidy Loan. Management is awaiting HUD approval of the deferment request.
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: $41,019
Statement of condition #2024-002: The Corporation's required deposit into the residual receipts
account of $41,019, per the June 30, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period end.
Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory
Agreement or communications that the Corporation has received from HUD.
Cause: The Corporation did not make the required deposit within 90 days of the fiscal year end.
Recommendation: Management should make all required residual receipts deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year
end.
Completion date: October 30, 2023
Management response: Management agrees with the recommendation. Management deposited
$41,019 into the residual receipts fund on October 30, 2023. No further action is required.
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 monthly deposits to the reserve for replacements account.
Sample size information: 12 monthly deposits to the reserve for replacements account.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: $623
Statement of condition #2024-003: The Corporation did not make the total required reserve for
replacement deposits during the year ended June 30, 2024. Additionally, the required monthly deposits
for the period from August 1, 2022 through June 30, 2023 were not made in the amounts specified
by HUD which resulted in the reserve for replacements account being underfunded by $623 as of June
30, 2024.
Criteria: Pursuant to the Section 202 Regulatory Agreement and communications from HUD, the
Corporation is required to make monthly deposits into a separate reserve for replacements account in
the amounts specified by HUD.
Effect: The Corporation is not in compliance with the Section 202 Regulatory Agreement and
communications from HUD. The reserve for replacements account is underfunded by $623.
Cause: The Corporation was not notified by HUD in a timely manner of the change in required monthly
reserve for replacement deposits.
Recommendation: The management agent should transfer $623 from the operating account in order
to bring the reserve for replacements account current, and confirm with HUD monthly reserve for
replacement deposits requirements at least annually.
Completion date: September 25, 2024
Management response: Management agrees with the recommendation. Management transferred
$623 from the operating account in order to bring the reserve for replacements account current on
September 25, 2024. No further action is required.
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: Q – Failure to make mortgage payments
Finding resolution status: Unresolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: Not applicable
Statement of condition #2024-001: The Corporation's Flexible Subsidy Loan was due in full upon
maturity of the Corporation's Section 202 mortgage loan, which occurred March 1, 2017. As of June
30, 2024, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default
on the Flexible Subsidy Loan.
Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible
Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan.
Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement.
Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a
request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the
deferment request.
Recommendation: Management should continue communicating with HUD in order to obtain
approval for the deferment request for the Section 201 Flexible Subsidy Loan.
Management's response: Agree. Management has submitted a request for deferment of the Flexible
Subsidy Loan. Management is awaiting HUD approval of the deferment request.
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: $41,019
Statement of condition #2024-002: The Corporation's required deposit into the residual receipts
account of $41,019, per the June 30, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period end.
Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory
Agreement or communications that the Corporation has received from HUD.
Cause: The Corporation did not make the required deposit within 90 days of the fiscal year end.
Recommendation: Management should make all required residual receipts deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year
end.
Completion date: October 30, 2023
Management response: Management agrees with the recommendation. Management deposited
$41,019 into the residual receipts fund on October 30, 2023. No further action is required.
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 monthly deposits to the reserve for replacements account.
Sample size information: 12 monthly deposits to the reserve for replacements account.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: $623
Statement of condition #2024-003: The Corporation did not make the total required reserve for
replacement deposits during the year ended June 30, 2024. Additionally, the required monthly deposits
for the period from August 1, 2022 through June 30, 2023 were not made in the amounts specified
by HUD which resulted in the reserve for replacements account being underfunded by $623 as of June
30, 2024.
Criteria: Pursuant to the Section 202 Regulatory Agreement and communications from HUD, the
Corporation is required to make monthly deposits into a separate reserve for replacements account in
the amounts specified by HUD.
Effect: The Corporation is not in compliance with the Section 202 Regulatory Agreement and
communications from HUD. The reserve for replacements account is underfunded by $623.
Cause: The Corporation was not notified by HUD in a timely manner of the change in required monthly
reserve for replacement deposits.
Recommendation: The management agent should transfer $623 from the operating account in order
to bring the reserve for replacements account current, and confirm with HUD monthly reserve for
replacement deposits requirements at least annually.
Completion date: September 25, 2024
Management response: Management agrees with the recommendation. Management transferred
$623 from the operating account in order to bring the reserve for replacements account current on
September 25, 2024. No further action is required.