Finding Text
2024-01: Replacement Reserve Withdrawal Federal Agency: Department of Housing and Urban Development Program Name: Supportive Housing for the Elderly (Section 202) CFDA No.: 14.157 Compliance Requirements: Special Tests and Provisions Condition: No approval was obtained for two (2) withdrawals from the reserve account. Criteria: Pursuant to the Capital Advance Regulatory Agreement, disbursements from such funds may be made only after the consent in writing of HUD. Cause: The Project needed to make immediate repairs prior to REAC assessment Effect: Noncompliance with HUD guidelines. Questioned Costs: Undetermined Recommendation: Management should adhere to HUD’s guidelines and seek to obtain written approval for all withdrawals from the reserve account. Views of Responsible Officials and Planned Corrective Action: The funds withdrawn from the Reserve Regulatory account was done based on a verbal agreement between Jose L Castillo, SAE and Mona Barnes, to perform needed repairs in preparation for REAC inspection. The funds were subsequently returned to the account.