Finding Text
Statement of Condition: The US Department of Housing and Urban Development conducted a Management and Occupancy Review (MOR) on November 28, 2022. Their report, dated November 28, 2022, reflected a below average rating related to Leasing and Occupancy and General Management Practices. However, the report did give an above average rating related to physical building inspection. Criteria: The Housing Assistance Payments (HAP) Contract requires compliance regarding the physical building and tenant files to be in accordance with the contract requirements. Effect: Failure to comply with the Regulatory Agreement and the HAP contract is a violation of HUD regulations. Cause: The property was in the process of transitioning the management over to a new management agent, making it more difficult to maintain effective policies and procedures related to the tenant files and recertifications. Recommendation: Management must perform the corrective actions as required by the MOR by the target completion date. Management/Owner Response: The Board and Management agree with the findings and the new management agent has taken action to correct the findings and implement the recommendations. As of the date of these financial statements, these steps had been taken and the property received a notice from HUD stating that they had satisfactorily completed all corrective action and that the MOR was considered closed.