Finding Text
2025-004 Timeliness of Required Deposits Condition: The Project was delinquent funding the Reserve for Replacement account. Criteria: HUD regulations require monthly deposits into the Reserve for Replacement account in accordance with the Capital Advance Program (CAP) Regulatory Agreement. Cause: The Project did not consistently transfer monthly deposits into Reserve for Replacement account. Effect: The Project’s Reserve for Replacement account was underfunded as of June 30, 2025 by $900. Recommendation: The Project should deposit, on a monthly basis, the required amount per the CAP regulatory Agreement.