Finding Text
Management Functions – U.S. Department of Housing and Urban Development, Operating
Assistance for Troubled Multifamily Housing Projects, Assistance Listing # 14.164
Criteria: Subsequent to October 31, 2023 the Organization was notified that it did not pass its
physical Real Estate Assessment Center (“REAC”) inspection.
Condition: The Organization did not pass its physical REAC inspection.
Questioned Costs: None. The finding is related to the overall management of the property in compliance with
the regulatory agreement, and not a specific expense.
Context: The Organization’s control structure failed to monitor, detect, and correct deficiencies in the
physical maintenance of the property.
Effect: The Organization failed to adequately monitor its physical maintenance and detect and
correct failures in its physical maintenance.
Cause: The Organization did not adequately review and inspect its physical maintenance to ensure
that the physical operation and maintenance of the property was operating effectively.
Recommendation: The Organization should adopt a policy which requires periodic (more than annual) review of
its operating and maintenance policies and procedures, as well as review by the individuals
monitoring the operating and maintenance of the property, to ensure that physical
maintenance of the property is within good standing.
Identification as a Repeat Finding: This is not a repeat finding.
Views of Responsible Officials and Corrective Actions: See Corrective Action Plan.