Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes and Section 241(a) Supplemental Loan Insurance Multifamily Rental Housing
Assistance Listing Number: 14.129 and 14.151
Award Period: January 1, 2024 through December 31, 2024
Type of Finding:
- Significant Deficiency in Internal Control over Compliance
- Other Matters
Criteria or specific requirement: HUD requires the Organization to make mortgage payments on a timely basis.
Condition: Mortgage payments for February, March, April and May 2024 were not received by the mortgage company promptly.
Questioned costs: None
Context: February, March, April and May 2024 mortgage payments were received by the mortgage company subsequent to the 15th of the following month, which is considered late per HUD guidelines.
Cause:. Mortgage payments were being funded with approved withdrawals from reserve accounts which delayed timing of payment.
Effect: Late charges were assessed to the Project.
Repeat Finding: No.
Recommendation: Mortgage payments should be made by the due date.
Views of responsible officials: Nevins was in touch with HUD monthly and developed a repayment plan but could not follow through. Nevins engaged with Alliance Health, Inc. for accounts receivable assistance in the fall of 2024 and then entered into a management agreement with Alliance Health, Inc. in June of 2025.