Answer: Management must make monthly deposits into the reserve for replacement account as per the agreement with HUD.
Trend: Consistent compliance with this requirement is crucial to avoid potential penalties.
List: Ensure timely deposits, monitor amounts set by HUD, and review compliance regularly.
Finding Text
In accordance with the Regulatory Agreement between the Corporation and HUD, management is required to make monthly deposits into the reserve for replacement account in an amount set by HUD.
Corrective Action Plan
Management will deposit the $15,800 shortfall and ensure future deposits are made in a timely manner.