Finding 579822 (2023-001)

Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: Per the regulatory agreement, O’Brien Road Senior Apartments is required to make monthly deposits of $1,400 into a reserve fund for replacements. Condition: The reserve for replacements account was underfunded by $1,400 (one month’s payment) as of March 31, 2023. Context: We reviewed the deposits into the reserve for replacements during the year. Cause: O’Brien Road Senior Apartments lacked adequate cash flow in 2023 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract. Effect: O’Brien Road Senior Apartments was not in compliance with the regulatory agreement. Recommendation: We recommend that O’Brien Road Senior Apartments make the remaining $1,400 deposit into the reserve for replacements when cash flow is sufficient. Views of management and planned corrective action: O’Brien Road Senior Apartments agrees with the finding and the required payment was made in April 2023.