Finding Text
Supportive Housing for Persons with Disabilities (Section 811) - Assistance Listing 14.181; Grant period - Year ended June 30, 2024 Material Noncompliance with Program Requirements Significant Deficiency Over Compliance: Special Tests and Provisions Statement of Condition: Security deposits assets collected from eligible families and the corresponding liability recorded, did not equal. Criteria: The HUD Handbook 4350.3 Occupancy Requirements of Subsidized Multifamily Housing Programs requires that the owner must place bearing-account security deposits in a segregated, interest bearing-account, the balance of which must at all times be equal to the total amount collected from the eligible family plus any accrued interest. Cause of Condition: The Project experienced a fire in June 2024 that caused a lapse in assigned responsibility for the reconciliation and transfer of security deposits. Effect of Condition: The Project is not in compliance with the HUD Handbook. Questioned Costs: None Identification of Repeat Finding: 2023-001 Recommendation: We recommend that the Project’s sponsor verify, on a monthly basis, the required security deposit asset and liability account equal. Management’s Response: The Project’s sponsor agrees with the recommendations. See Corrective Action Plan.