2022-1 ? Reserve for Replacement Deposit Not Made Timely Condition: The Project did not make the required deposit into the bank on a monthly basis. Response: The January 2022 Reserve for Replacement required deposit was not made in January. That deposit was made in February along with all required monthly deposits for the remaining of the year. The project has complied with the replacement Reserve requirement as mentioned in HUD Handbook 4350.1 REV-1, Chapter 4-2. Though, the project was late in depositing the January payment this is not a significant violation of the HUD Handbook 4350.1 REV-1, Chapter 4-2 and the Regulatory Agreement. The requirement to fund and maintain the Replacement Reserve account was accomplished. The project must not be penalized for a 30-day delay in making a monthly payment. The defect was cured in a timely manner. Also, this is not a material weakness to raise it to the level of a reportable condition. We do not agree that this is as an instance of material weakness to be elevated to a reportable condition.