Finding Text
Section 223(f) HUD Insured Mortgage – CFDA 14.155 (Special Tests and Provisions)Conditions and Criteria: Security deposits are required to be refunded within 30 days of tenant’s move-out date in the appropriate amount. For two items out of two tested, we noted that a tenant moved out and did not receive their security deposit refund timely. One tenant moved out December 19, 2023 and the refund was not issued until March 20, 2024. The second tenant moved out May 30, 2024, and their refund has not been issued as of the date of the audit report.Effect: The tenants did not receive their security deposit refund within 30 days of move-out.Cause: This occurred due to oversight at the property level.Auditors Recommendation: We recommend that security deposit refunds are given out timely and returned within 30 days of move-out.Management’s Response: Management has implemented steps to ensure that future security deposit refunds are made within the 30-day requirement.