2025-002 Record Keeping of Tenant Files Condition: Tenant files are not being completed based on compliance requirements of HUD. Criteria: Tenant files should be maintained to ensure all compliance requirements of HUD are completed timely and appropriately. Cause: Tenant files are not being maintained with complete and accurate information. Effect: Noncompliance with requirements impose a risk of penalties and fines assessed by HUD. Recommendation: Controls over record keeping and maintaining tenant files should be strengthened with an increased emphasis on timely and appropriately documenting all compliance requirements of HUD.
2025-003 Timeliness of Required Deposits Condition: The Project was delinquent funding the Reserve for Replacement account. Criteria: HUD regulations require monthly deposits into the Reserve for Replacement account in accordance with the Capital Advance Program (CAP) Regulatory Agreement. Cause: The Project did not consistently transfer monthly deposits into Reserve for Replacement account. Effect: The Project’s Reserve for Replacement account was underfunded as of June 30, 2025 by $900. Recommendation: The Project should deposit, on a monthly basis, the required amount per the CAP regulatory Agreement.