Finding 1144448 (2024-001)

- Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-27

AI Summary

  • Core Issue: The Project's occupancy rate is low, with a 28% vacancy expense affecting operations.
  • Impacted Requirements: High vacancy rates can lead to reduced revenue and strain on replacement reserve funds.
  • Recommended Follow-Up: The Project should enhance efforts to attract tenants and reduce vacancies.

Finding Text

Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing Number 14.181 Criteria: The Project’s occupancy rate should be adequate to maintain Project operations. Statement of Condition: The Project’s vacancy expense was 28% of rental revenue for the year ended September 30, 2024. Cause: Of the Project’s ten units, two were vacant for the entire year, and one was vacant for most of the year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project’s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $761,500
14.195 Project-Based Rental Assistance (pbra) $25,655