FAC Explorer

Audit 368472

FY End
2024-12-31
Total Expended
$9.60M
Findings
1
Programs
2
Organization: Dona Petra Santiago Apartments Housing Development Fund Corporation (NY)
Year: 2024 Accepted: 2025-09-29
Auditor: Vargas & Rivera LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1155999 2024-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $9.10M Yes 1
14.195 Project-Based Rental Assistance (pbra) $500,615 Yes 0

Contacts

Name Title Type
H3AGPPENZN11 Georgina Acevedo Auditee
2126774772 Luis Rivera Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Dona Petra Santiago Apartments Housing Development Fund Corporation (the "HDFC") and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
On September 25, 2009, the Project entered into a Capital Advance/Building Loan Agreement under Section 202 of the National Housing Act of 1959 for the development of housing serving the elderly households. The HDFC was advanced $9,101,000. The advance need not be repaid so long as the housing remains available to elderly persons through March 1, 2051.

Finding Details

Finding 2024-001
Criteria - Replacement Reserves: Compliance Requirement – Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). All disbursements from the reserve must be approved by HUD (24 CFR sections 891.405 and 891.605). Condition: The Project did not make one of the required deposits to the replacement reserve account. Effect: The Project is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly cash disbursements from the operating account. Cause: Due to limited cash flow, management was unable to remit the required deposits. Repeat Finding: Item 2023-001, 2022-001, 2021-001 and 2020-001 Recommendation: We recommend management make the required deposits as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges that the required replacement deposits had not been made due to cash flow constraints. The entity is taking steps to ensure that delinquent replacement reserve deposits are made as soon as is practicable.