Finding Text
Criteria The HUD occupancy handbook requires security deposits to be returned within 30 days of move-out. Condition During the audit, we noted two instances where security deposits refunds for former tenants has not been processed. Cause The noncompliance was the result of administrative oversight, in which, project management personnel did not consistently follow the Organization’s policies and procedures. Effect The Organization is not in compliance with HUD’s requirements. Recommendation We recommend that the Organization comply with established policies and procedures to ensure that security deposit refunds are processed. Views of Responsible Officials and Planned Corrective Action The tenant was not able to provide a forwarding address when she moved out because she was unsure of the address and promised to call the project. After repeated attempts to obtain the information, the tenant finally reached out to provide the information and a check was cut and mailed right away. Project staff were reminded of the importance of obtaining the required information no later than the day of move-out so a refund can be given to the tenant.