Finding Text
Finding 2024-001: Supportive Elderly Housing Section 202
Condition: Three of the twelve required monthly deposits of $876 to the replacement reserve were not made
during the year ended June 30, 2024.
Criteria: Replacement reserve payments are an ongoing obligation, unless waived by HUD.
Effect: The Corporation is not in compliance with the provisions of the Regulatory agreement.
Cause: Poor cash flow from the Corporation does not always allow all bills to be paid in a timely manner. Recommendation: In periods of high repair expenditures, prompt submission of replacement reserve
reimbursement claims will help replenish operating funds. This will enhance the Corporation’s ability to
meet its monthly replacement reserve and other obligations.
Views of Responsible Officials and Planned Corrective Actions: Corrective action will be implemented
immediately with more thorough oversight over monthly replacement reserve disbursements.