Finding Text
December 30, 2025 – S3800-010 Finding reference number 2025-001 S3800-011 Title and AL number of federal program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects #14.155 S3800-015 Type of finding Federal Award Finding S3800-016 Finding resolution status Resolved S3800-017 Information on universe population size not applicable S3800-18 Sample size information not applicable S3800-19 Identification of repeat finding and finding number not applicable S3800-020 Criteria HUD requirements for projects subject to a Regulatory Agreement require that residual receipts be maintained under HUD control and used only as permitted. HUD guidance describes residual receipts as an asset of the mortgagor held under HUD control during the life of the mortgage. S3800-030 Statement of condition Failure to Deposit Required Surplus Cash / Residual Receipts S3800-032 Cause Management did not complete the required deposit following the surplus cash calculation as of December 31, 2024. S3800-033 Effect or potential effect Project funds were not deposited into the required restricted account as required by HUD. This represents noncompliance with HUD requirements applicable to the Project. The known amount associated with the condition is $43,473. S3800-035 Auditor non-compliance code B - Failure to make required residual receipts deposits S3800-037 FHA/Contract number 023-11354 S3800-040 Questioned costs $0