Finding Text
2024-002 - Replacement Reserve Federal Program - U.S. Department of Housing and Urban Development Assistance Listing Number 14.157 - Supportive Housing for the Elderly (Section 202) Material Weakness & Noncompliance Category of Finding - Special Tests and Provisions Criteria - The Regulatory Agreement requires that 12 monthly deposits be made to the replacement reserve. Condition - The Corporation did not make the monthly required deposits from September through December 2024. Context - The Corporation made 8 out of 12 monthly deposits. Cause - The change in management agent in September 2024 caused the delinquent deposits. Effect - The replacement reserve account was not adequately funded at year end, and the Corporation was not in compliance with the Regulatory Agreement. Identification of repeat finding - No Recommendation - The Corporation should make a deposit in the amount of $11,680 to adequately fund the replacement reserve. View of responsible officials and planned corrective actions - The Corporation agrees with the finding. The Corporation changed the management agent to Tapestry and a deposit of $11,680 was made on January 9, 2025 to properly fund the replacement reserve.