Finding 1169161 (2025-001)

Finding No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Three tenants. Sample Size Information: One tenant. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-002. Criteria: HUD regulations require 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 repairs along with a statement of the tenant’s rights under state and local laws within 21 days after the moveout date. Statement of Condition: One tenant was not refunded their security deposit within 21 days after their move-out date. Cause: The Project did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits within the required timeframe. 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 forrefunding security deposits timely. Response Indicator: Agree. Completion Date: 10/31/2025 Response: Staff training has been provided and included in monthly reporting procedures.