Finding Text
Condition: The replacement reserve account remains underfunded by $12,948 from the prior
year.
Criteria: HUD regulations specify the amount required to be deposited on a monthly basis
to the replacement reserve account.
Cause: The funding shortfall was due to the property experiencing a cash flow problem
and therefore unable to make the required deposits.
Recommendation: The management agent should arrange to fund the shortfall.
Response: Management will make every effort to find resources to fund the shortfall.