Core Issue: The Cooperative must get HUD's approval before taking money from the replacement reserve.
Impacted Requirement: This requirement is outlined in the Use Agreement with HUD.
Recommended Follow-up: Ensure all future withdrawals from the reserve are approved by HUD to stay compliant.
Finding Text
In accordance with the Use Agreement between the Cooperative and HUD, the Cooperative is required to obtain HUD’s approval for withdrawals from the replacement reserve.