Finding 1155519 (2024-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-26

AI Summary

  • Core Issue: The Project refunded a tenant's security deposit 81 days after move-out, violating the 30-day requirement set by HUD and state law.
  • Impacted Requirements: Noncompliance with HUD regulations and state laws regarding timely security deposit refunds.
  • Recommended Follow-Up: Ensure ongoing staff training and adherence to refund procedures to maintain compliance.

Finding Text

FINDING No. 2024-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Eight tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under state and local laws within 30 days from moveout. Statement of Condition: The Project refunded the security deposit 81 days after the tenant moved out, which is beyond the 30 day state and HUD requirement. Cause: The Project did not follow the state and HUD requirement for refunding security deposits within 30 days from tenant moveout. Effect or Potential Effect: The tenant was given their security deposit refund late, causing the Project to be noncompliant with state and HUD requirements. Auditor Non-Compliance Code: M – Security Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor's recommendations have been adopted. Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits timely. Response Indicator: Agree. Completion Date: 09/19/2024 Response: Staff training has been provided and included in monthly reporting procedures.

Corrective Action Plan

FINDING No. 2024-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should comply with state law and HUD regulations for refunding security deposits timely. Action Taken: Staff training has been provided and included in monthly reporting procedures. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1155518 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $3.08M
14.157 Supportive Housing for the Elderly - Prac $141,231