FAC Explorer

Audit 406797

FY End
2025-12-31
Total Expended
$3.31M
Findings
1
Programs
2
Organization: Schoolhouse Apartments, Inc. (CT)
Year: 2025 Accepted: 2026-07-09
Auditor: SEWARD AND MONDE

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1223291 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.70M Yes 1
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $612,539 Yes 0

Contacts

Name Title Type
V1TCJNUUJPD7 Sabine Cox Auditee
2032044809 Michele Loso Auditor
No contacts on file

Notes to SEFA

Schoolhouse Apartments, Inc. has received a U.S. Department of Housing and Urban Development loan guarantee under Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Schoolhouse Apartments, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2025 consists of: Outstanding Balance CFDA Number Program Name at December 31, 2025 14.155 Mortgage Insurance for the Purchase or $2,611,705 Refinancing of Existing Multifamily Housing Projects

Finding Details

Finding 2025-001
Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects Federal Assistance Listing No.: 14.155 Federal Grantor: Department of Housing and Urban Development Statement of Condition: January 1, 2025 increase in replacement reserve deposits was not implemented. Criteria: HUD regulations require that a replacement reserve deposit increase be implemented timely. Effect: Noncompliance with required replacement reserve deposits. Replacement reserve deposits were underfunded by $3,027. Cause: Mortgage servicer failed to increase monthly invoice which went unnoticed by management company. Context: During testing, it was noted that the replacement reserve deposit increase effective for January 1, 2025 had not been implemented. It was noted that the increase was communicated by HUD to the mortgage servicer via email. Recommendation: Management should establish procedures to ensure that replacement reserve increases are implemented by the mortgage servicer to ensure accurate monthly billing and payment. Management’s Response and Corrective Action Plan: Management will establish additional procedures to ensure that future replacement reserve deposit changes are implemented by the mortgage servicer. Management is making the 2025 shortage deposit to the replacement reserve.