Finding 1174615 (2024-003)

Finding reference number: 2024-003 Assistance Listing (Federal award identification number and year): Section 8 Project-Based Cluster, Assistance Listing No. 14.195, CA16L000004, and 1996 Auditor non-compliance code: M - Security Deposits Finding resolution status: Resolved Universe population size: 5 move out tenant files Sample size information: 3 move out tenant files Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $529 Statement of condition 2024-003: Management did not timely disburse calculated security deposit refunds to three tenants that moved out during the year ended December 31, 2024 timely. Criteria: Pursuant to the HUD Handbook 4350.3 Chapter 6, management must refund the security deposit no later than 30 days after the tenant moves out. Effect: The Corporation is not in compliance with the HAP Contract. Cause: Management did not process security deposit refunds timely after tenants moved out. Recommendation: Management should calculate and disburse a tenant's security deposit refund within 30 days of the tenant moving out. Management's response: Management concurs with the finding and recommendation. Management disbursed the tenants' security deposit refunds on October 22, 2025 and will disburse security deposit refunds within 30 days of the tenant moving out moving forward.