Finding 1182799 (2025-002)

Finding 2025-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: O’Brien Road Senior Apartments 2 is required to make monthly deposits into the reserve for replacements account in accordance with the project’s regulatory agreement with HUD. Condition: During our review of the reserve for replacements activity in 2025, we noted that the property did not make the December payment until January 9, 2026. Questioned Costs: There are no questioned costs, this finding relates to timing of payments. Context: There are 12 required payments during the year with all payments being tested. Cause: Management indicated that the deposit was not made as there was insufficient operating cash available during the month the deposit was due. Effect: O’Brien Road Senior Apartments 2 is out of compliance with their regulatory agreement with HUD. Recommendation: We recommend that management ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management and planned corrective action: Management concurs. The December payment was made on January 9, 2026.