Issue: The replacement reserve account is underfunded by $13,585 compared to last year.
Requirement: HUD regulations mandate specific monthly deposits to this account.
Action Needed: Management should secure resources to cover the funding shortfall.
Finding Text
Condition: The replacement reserve account remains underfunded by $13,585 from the prior
year.
Criteria: HUD regulations specify the amount required to be deposited on a monthly basis
to the replacement reserve account.
Cause: The funding shortfall was due to the property experiencing a cash flow problem
and therefore unable to make the required deposits.
Recommendation: The management agent should arrange to fund the shortfall.
Response: Management will make every effort to find resources to fund the shortfall.
Corrective Action Plan
Management will make every effort to find resources to fund the shortfall.
Cynthia Langlykke, the Executive Director, will work with the Organization to resolve this matter.
The anticipated completion date is December 31, 2025.