Finding 517986 (2024-002)

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Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-01-07

AI Summary

  • Core Issue: Three tenants did not receive their security deposits within the required 21 days after moving out.
  • Impacted Requirements: HUD rules mandate timely refunds or itemized statements for security deposits.
  • Recommended Follow-Up: Implement procedures and training to ensure compliance with security deposit refund timelines.

Finding Text

Finding No. 2024-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Seven move-out tenants. Sample Size Information: Three move-out tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD rules require the owner to return the full security deposit plus accrued interest or provide the tenant with an itemized statement with any applicable deductions and any remaining deposit within the lesser of 30 days or the state’s law of 21 days after the move-out date. Statement of Condition: Three tenants were not refunded their security deposits within the state’s law of 21 days after move-out. Cause: The manager did not adhere to requirements for returning security deposits resulting in the untimely refund of security deposits. Effect or Potential Effect: The Project is not in compliance regarding the returning of security deposits within the required timeframe. 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 implement procedures to ensure the manager complies with the requirements for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 11/28/2023 Response: Staff training has been provided and included in monthly reporting procedures.

Corrective Action Plan

FINDING No. 2024-002: Section 202 Supportive Housing for Elderly, ALN 14.157 Recommendation: The Project should implement procedures to ensure the manager complies with the requirements for timely refunding of security deposits. Action Taken: Staff training has been provided and included in monthly reporting procedures.

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $6.41M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract (prac) $315,981