Finding 584360 (2023-001)

Finding No. 2023-001; Mortgage Insurance - Rental Housing, Assistance Listing 14.134 Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Condition Management failed to maintain the property in good repair and received a score of 46c* in its 2023 REAC Physical Inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Effect or Potential Effect The Project was unable to obtain a passing score on its REAC inspection. Questioned Costs None Recommendation Management should correct all findings noted in the REAC Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code: I – Failure to maintain property/open physical inspection Finding Resolution Status: In process Views of Responsible Officials All findings in the REAC physical inspection Report have been corrected and evidence was submitted to HUD for their review. Additional property inspections by on-site employees and management will be completed throughout the year to ensure compliance.