Finding 1172680 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-02-06

AI Summary

  • Core Issue: The Project refunded a tenant's security deposit 28 days after move-out, violating the 15-day requirement set by state law.
  • Impacted Requirements: Noncompliance with HUD regulations regarding timely refunds of security deposits and tenant rights.
  • Recommended Follow-Up: Ensure ongoing staff training and adherence to timely refund procedures to prevent future delays.

Finding Text

FINDING No. 2025-003: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: Six 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 laws within 15 days from move-out. Statement of Condition: The Project refunded the security deposit 28 days after the tenant moved out, which is beyond the 15 day state requirement. Cause: The Project did not follow the state requirement for refunding security deposits within 15 days from tenant move-out. Effect or Potential Effect: The tenant was given their security deposit refund late, causing the Project to be noncompliant with state 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 refund security deposits timely. Response Indicator: Agree. Completion Date: 05/08/2025 Response: Staff training has been provided and included in monthly reporting procedures.

Corrective Action Plan

FINDING No. 2025-003: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Recommendation: The Project should refund 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 these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1172678 2025-001
    Material Weakness Repeat
  • 1172679 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.60M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.08M