Finding Text
– Supportive Housing for Disabled Persons ALN #14.181
Statement of Condition: The Project did not remit residual receipts balances in excess of $250 per unit to HUD by the Project Rental Assistance Contract renewal date.
Criteria: Pursuant to statutory language from the Consolidated and Further Continuing Appropriations Act, HUD is required to recapture residual receipt balances that are in excess of $250 per unit. The fund must be remitted to HUD upon “termination” of the Project Rental Assistance Contract. Termination is defined as expiration of the contract term, which for most PRACs falls on contract renewal date.
Effect of Condition: This is a violation of the HUD Regulations.
Cause of Condition: The procedures in place to ensure the excess residual receipts remittance was made timely were not consistently followed.
Recommendation: No action is needed, as the required return of excess residual receipts has already been remitted to HUD.
Response: See Corrective Action Plan.