FAC Explorer

Finding 1160208 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2025
Accepted
2025-10-09
Audit: 370591
Organization: Mt. Auburn Housing, Inc. (OH)
Auditor: Tidwell Group LLC

AI Summary

  • Core Issue: The Corporation failed to pay off a Flexible Subsidy Loan of $1,298,319 due in August 2014.
  • Impacted Requirements: This non-compliance with the Regulatory Agreement could lead to foreclosure of the Project.
  • Recommended Follow-Up: The Corporation should collaborate with HUD to either extend the loan maturity date or explore refinancing options.

Finding Text

S3800-010 Finding Reference Number 2025-2 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires debt to be paid in full at maturity. S3800-030 Statement of Condition The Corporation's Flexible Subsidy Loan should have been paid in full in August 2014. Principal Balance $1,298,319 S3800-035 Auditor Non-Compliance Code Q - Failure to make mortgage payments S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not have enough liquid funds to pay the loan in full. S3800-060 Effect The Project could be foreclosed and sold to pay off the debt. S3800-070 Cause The Corporation does not have enough liquid funds to pay the loan in full. S3800-080 Recommendation The Corporation should work with HUD to extend the maturity date or refinance the mortgage.

Corrective Action Plan

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations The Corporation concurs that they did not pay the debt in full at maturity. S3800-130 Response Indicator Agree S3800-140 Completion Date April 30, 2026 S3800-150 Response On June 17, 2025, the Corporation entered into a purchase and sale agreement with The Christ Hospital to acquire the property for $1,485,528. Pending HUD approval. S3800-160 Contact Person First Name Amin S3800-180 Contact Person Last Name Akbar

Categories

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1160207 2025-001
    Material Weakness Repeat
  • 1160209 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.164 Operating Assistance for Troubled Multifamily Housing Projects $1.02M
14.195 Project-Based Rental Assistance (pbra) $480,430
14.197 Multifamily Assisted Housing Reform and Affordability Act $49,859