Finding Text
FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157
Finding Resolution Status: Unresolved.
Information on Universe Population Size: Escrow account.
Sample Size Information: Escrow account.
Identification of Repeat Finding and Finding Reference Number: Yes, 2023-002.
Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments, and other charges.
Statement of Condition: The Project is deficient in funding escrow deposits in the
amount of $9,850 as required by HUD.
Cause: The Project did not properly fund the escrow account based on current period insurance premiums and tax rates.
Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations.
Auditor Non-Compliance Code: Z – Other
Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should make sufficient monthly deposits to the escrow account in a timely manner.
Response Indicator: Agree.
Completion Date:
12/31/2025
Response: Escrows were underfunded due primarily to a high increase in insurance rates. Escrow balances will be reviewed on a regular basis to ensure adequate funding.