Finding Text
Finding No. 2023-003; Supportive Housing for the Elderly - Section 202, Listing 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, within 30 days after the move-out date (or shorter time if required by state and/or local laws), management must either: refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; 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 and local laws. Condition In connection with the procedures applied to a sample of 1 tenant that moved out of the project during the year, we noted one instance where management failed to refund the tenant security deposit within thirty days after the move-out date. Cause Management followed the local laws regarding timely refunding of tenant security deposits which require refunds or notice to occur within 45 days after the move-out date rather than the 30 day requirement established by HUD. Effect or Potential Effect Management failed to comply with the HUD occupancy requirement to timely refund the tenant security deposits or to provide the tenant with a list of charges. Questioned Costs None. Identification as a Repeat Finding No Recommendation Management should change its policies and procedures related to refunding of tenant security deposits to comply with the thirty-day timeline required by HUD regulations. Auditor Noncompliance Code: Security deposits Finding Resolution Status: In process. Views of Responsible Officials Management will implement a plan to ensure that tenant security deposit refunds are issued within 90 days.