Core Issue: Three tenants did not receive their security deposit refunds or itemized charges on time due to a clerical error.
Impacted Requirements: The project must issue refunds or itemized lists within 30 days as per HUD guidelines and state/local laws.
Recommended Follow-Up: Implement procedures to ensure timely processing of tenant refunds and provide ongoing staff training for compliance.
Finding Text
S3800-010 Finding Reference Number 2026-002 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Development 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 6 tenant move-outs S3800-018 Sample Size Information 5 tenants S3800-019 Identification of Repeat Finding and Reference Number No S3800-020 Criteria Project must refund tenant’s security deposits or provide an itemized list of charges within 30 days of moveout or as required by state or local law. S3800-030 Statement of Condition We selected a sample of 5 tenant move-outs for our testing of tenant security deposits. For each tenant selected we tested up to 7 attributes, resulting in 20 attributes being tested. The selections contained a total of 3 exceptions to attributes being tested. S3800-032 Cause Clerical error. S3800-033 Effect or Potential Effect Three tenants did not receive their deposit refunds or itemized list of charges timely. S3800-035 Auditor Non-Compliance Code S – Internal control deficiencies S3800-040 Questioned Costs $--- S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and has provided staff training to ensure compliance with HUD guidelines. S3800-037 FHA/Contract Number 12711240 S3800-038 Questioned Costs $--- S3800-080 Recommendation Management should have procedures in place to ensure that tenant refunds and itemized list of charges are being issued within 30 days or as required by state or local law in accordance with HUD guidelines. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Management has provided staff training to ensure compliance with HUD guidelines. S3800-130 Response Indicator Agree S3800-140 Completion Date 03/31/2026 S3800-150 Response Management agrees with the finding and has provided staff training to ensure compliance with HUD guidelines.
Corrective Action Plan
Management agrees with the finding and has provided staff training to ensure compliance with HUD guidelines.