Finding Text
FINDING No. 2023-002: Section 236 Mortgage Restructuring Note, ALN 14.103
Finding Resolution Status: Resolved.
Information on Universe Population Size: Eight former tenants.
Sample Size Information: Three former tenants.
Identification of Repeat Finding and Finding Reference Number: No.
Criteria: As required by HUD regulations, 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 HUD regulations and state and local laws within 30 days from move-out.
Statement of Condition: The Project did not refund the security deposit plus accrued interest to one tenant within the required 30 days from tenant move-out.
Cause: The Project did not follow the state law and HUD regulations for refunding security deposits resulting in untimely refunds of security deposits.
Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws requiring tenant security deposits to be refunded within 30 days of a tenant move out if no assessments are made against that tenant.
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 comply with state law and HUD regulations for refunding security deposits and ensure all refunds are made to the move-out tenants within the required period.
Response Indicator: Agree.
Completion Date: 10/31/2023
Response: Training has been provided to staff on state and HUD laws and the processes and procedures of refunding move-out tenants within the required period.