Finding Text
Statement of Condition: Transfer was made out of the security deposit account. At June 30, 2023 the resident security deposit account did not equal or exceed the deposits collected from residents by $17,725.; Criteria: Chapter 2 of the HUD Handbook 4370.2 indicates that, when the Regulatory Agreement allows the receipt of security deposits, a separate bank account should be established to maintain these funds. The balance of the account must not at any time be less than the aggregate of all outstanding obligations under the account for security deposits.; Effect or Potential Effect: The Company is not in compliance with the terms of the Regulatory Agreement; Cause: The Company did not transfer sufficient funds to the security deposit account in order to equal or exceed the liability listing; Recommendation: The Company should transfer $17725 to the security deposit account and closely monitor the liability listing to ensure that the asset account is adequately funded.; Actions Taken or Planned on the Finding: Funds were deposited, and the Company will monitor and make sure the account is always funded.