FAC Explorer

Finding 577407 (2023-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2023-10-31
Audit: 1800
Organization: Mt. Auburn Housing, Inc. (OH)
Auditor: Tidwell Group LLC

AI Summary

  • Core Issue: The Corporation failed to pay off a Flexible Subsidy Loan of $1,277,840 by the due date in August 2014.
  • Impacted Requirements: This non-compliance with the Regulatory Agreement could lead to foreclosure of the Project.
  • Recommended Follow-Up: The Corporation should collaborate with HUD to either extend the loan's maturity date or explore refinancing options.

Finding Text

S3800-010 Finding Reference Number 2023-2 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires debt to be paid in full at maturity. S3800-030 Statement of Condition The Corporation's Flexible Subsidy Loan should have been paid in full in August 2014. Principal Balance $1,277,840 S3800-035 Auditor Non-Compliance Code Q - Failure to make mortgage payments S3800-037 FHA/Contract Number 046-44083 S3800-038 Questioned Costs $-0- S3800-050 Context The Corporation did not have enough liquid funds to pay the loan in full. S3800-060 Effect The Project could be foreclosed and sold to pay off the debt. S3800-070 Cause The Corporation does not have enough liquid funds to pay the loan in full. S3800-080 Recommendation The Corporation should work with HUD to extend the maturity date or refinance the mortgage.

Categories

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 964 2023-001
    Significant Deficiency Repeat
  • 965 2023-002
    Significant Deficiency Repeat
  • 966 2023-003
    Significant Deficiency
  • 577406 2023-001
    Significant Deficiency Repeat
  • 577408 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.164 Operating Assistance for Troubled Multifamily Housing Projects $1.02M
14.195 Section 8 Housing Assistance Payments Program $416,636
14.197 Multifamily Assisted Housing Reform and Affordability Act $58,089