Finding Text
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Rockford Supportive Housing Facility - FINDING 2023-005: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project took a HUD subsidy loan from replacement reserves of $15,000 and failed to repay the loan based upon the terms of the agreement with HUD. Criteria: The Project should have repaid the required amount to replacement reserves. Effect: The replacement reserve balance was underfunded by $15,000 at December 31, 2023. Context: All elements of the replacement reserve account were tested at December 31, 2023. No sample was selected. Questioned costs - $15,000; Cause: The Project neglected to repay the HUD subsidy loan based upon the terms of the agreement. Recommendation: The Project should repay the HUD subsidy loan as soon as funds are available. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. A $15,000 transfer will be made once funds are available. Management will be reminded to carefully review HUD correspondence to make sure HUD subsidy loan terms are being followed. Questioned Costs - Department of Housing and Urban Development - $15,000; Non-compliance code - N