Finding Text
Federal program - Section 223(f) Insured Mortgage: Criteria - HUD regulations specify that only eligible costs relating to the property are allowed to be paid by the property; Condition - the property was overcharged management fees totaling $10,956 for the current year and a cumulative total of $19,870; Cause - the fee charged included replacement reserve withdrawals and cash transfers in the cash receipts base in error; Recommendation - management should reimburse the property for the amount overcharged or reduce the outstanding balance due the management company by the overcharge and calculate the fee correctly in the future. Response: Management will offset unpaid invoices due the management company and will calculate the fee correctly in the future.