Finding 41959 (2022-002)

FINDING No. 2022-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamiy Rental Housing Projects, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Escrow accounts. Sample Size Information: Escrow accounts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments and other charges. Statement of Condition: The Project is deficient in funding escrow deposits in the amount of $10,423, as required by HUD. Cause: The Project did not properly fund the escrow accounts based on current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations. Auditor Non-Compliance Code: Z - Other Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. FINDING No. 2022-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, CFDA 14.155 (Continued) Recommendation: The Project should make sufficient deposits to the escrow accounts in a timely manner. Response Indicator: Agree Completion Date:3/31/2023 Response: The Project will perform monthly escrow analysis to ensure the accounts are adequately funded at all times.