Finding 369809 (2023-001)

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Three move-out tenants. Sample Size Information: Three move-out tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-002. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/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 within 21 days after the move-out date. Statement of Condition: One tenant was not refunded their security deposits within 21 days after their move-out date. Cause: The manager did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits with the required timeframe. Auditor Non-Compliance Code: M – Security Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure the manager complies with state laws and HUD regulations for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 11/3/2022 Response: Manager will be retrained on the regulations and procedures for refunding of security deposits within the specified time frame. Periodic follow ups will be done to ensure process is being followed.