Finding Text
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: Q – Failure to make mortgage payments
Finding resolution status: Unresolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: Not applicable
Statement of condition #2024-001: The Corporation's Flexible Subsidy Loan was due in full upon
maturity of the Corporation's Section 202 mortgage loan, which occurred March 1, 2017. As of June
30, 2024, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default
on the Flexible Subsidy Loan.
Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible
Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan.
Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement.
Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a
request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the
deferment request.
Recommendation: Management should continue communicating with HUD in order to obtain
approval for the deferment request for the Section 201 Flexible Subsidy Loan.
Management's response: Agree. Management has submitted a request for deferment of the Flexible
Subsidy Loan. Management is awaiting HUD approval of the deferment request.