Finding Text
Federal program - Section 202: Criteria - HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account.; Condition - no deposits were made for 8 months and the total deposits were underfunded by $13,585 (including the prior year duplicate withdrawal totaling $6,309 not yet transferred); Cause - the late deposits and funding shortfall were due to the property experiencing a cash flow problem and therefore unable to make the required deposits; Recommendation - the management agent should make all future deposits on a timely basis and arrange to fund the shortfall. Response: Management will make every effort to fund future deposits on a timely basis and will attempt to find resources to fund the shortfall.