Finding Text
FINDING No. 2025-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Management fees. Sample Size Information: All management fee expenses Identification of Repeat Finding and Finding Reference Number: No. Criteria: The Project shall only owe the management company fees at the rate specified in the Project Owner’s/Management Agent’s Certification (form HUD-9839-B). Statement of Condition: As a result of an expired form HUD-9839-B, the Project has been overcharged management fees, resulting in an unauthorized loan to the management company. Cause: The Project’s form HUD-9839-B expired. Effect or Potential Effect: The Project has made an unauthorized loan to the management company as a result of overpaying management fees of $4,146. Auditor Non-Compliance Code: J – Unauthorized Management Fees. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to monitor the expiration of HUD required documents to ensure timely preparation and approval. Response Indicator: Agree. Completion Date: 9/30/2026 Response: Management is in the process of renewing all management certifications and will provide accountants with extra training to monitor.