Finding Text
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (061-EE125 and 2008)
Auditor non-compliance code: Z - Other
Finding resolution status: In Process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-001: The owners have not filed the 2017, 2018, 2019, 2020, 2021 or 2022 federal income tax returns.
Criteria: HUD Section 202 Capital Advances are available to not-for-profit owners.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2022, the Corporation's status as a not-for-profit entity has been revoked.
Cause: The Board of Directions failed to provide the information required to complete the tax returns on a timely basis.
Recommendation: Tax returns should be filed on a timely basis.
Completion Date: In Process
Management's response: Agree. Management and the Board of Directors are taking steps to file the previous tax returns and have the Corporation's not-for-profit designation reinstated.