Finding Text
Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 6: Lease Requirements and Leasing Activities, within 30 days after the move-out date, the owner must either refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Questioned Costs: None. Condition: One out of ten selected tenants who moved out during the year did not receive their security deposit refund check within the 30-day requirement. This was not a statistically valid sample. Context: We identified one tenant (for one out of ten selected tenants) that moved out during the year that did not receive their refund of their security deposit within the 30-day requirement. Pennsauken Lutheran Housing, Inc. HUD Project No. 035-EE020 Schedule of Findings and Questioned Costs Year Ended December 31, 2022 30 Effect: There was one tenant whose security deposit refund check was not received within the 30-day requirement. Cause: There was turnover at the property manager position and the property manager position remained vacant for several months of the year. Additionally, there were environmental issues that caused mold and destruction of certain files. Recommendation: We recommend the Corporation implement procedures to ensure that all security deposit refund checks are returned to tenants within the 30-day requirement.