FAC Explorer

Finding 1227930 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-26
Audit: 409848
Organization: Trinity Community Housing CORP (IL)
Auditor: ALEXANDER MANNIE COMPANY PC

AI Summary

  • Core Issue: The Project failed to implement the required increase in the monthly deposit to the Reserve for Replacement account.
  • Impacted Requirements: Monthly deposits were not adjusted from $5,809.16 to $6,151.92 as mandated, leading to a significant funding shortfall.
  • Recommended Follow-Up: Ensure the deposit adjustment is made immediately and address the $3,084.66 funding gap to comply with NHC directives.

Finding Text

Per letter from the National Housing Compliance (NHC), Subject: Auto OCAF Rent Adjustment dated March 24, 2025, paragraph 5 stated: “In addition to the rent increase, we have prepared a Funds Authorization (Form HUD-9250), recommending an increase in the monthly deposit to the Reserve for Replacement account from $5,809.16 to $6,151.92 effective April 1, 2025.” However, the Project did not increase the monthly deposit effective April 1, 2025, and for nine (9) months, the Reserve for Replacement was unfunded by $342.36 each month, for a total year-to-date unfunded amount of $3,084.66.

Corrective Action Plan

On 5/27/2026, a check payable to Midland Loan Service for $3,084.66 was submitted for the unfunded replacement reserve. This finding has been resolved.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1227929 2025-002
    Material Weakness Repeat
  • 1227931 2025-003
    Material Weakness Repeat
  • 1227932 2025-003
    Material Weakness Repeat
  • 1227933 2025-004
    Material Weakness Repeat
  • 1227934 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $3.42M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.16M