Finding Text
Finding 2022-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: Per the regulatory agreement, Lucille Manor Apartments is required to make monthly deposits of $955 into a reserve fund for replacements. Condition: The reserve for replacements account was underfunded by $1,910 (two month?s payment) as of June 30, 2022. Context: We reviewed the deposits into the reserve for replacements during the year. Cause: Lucille Manor Apartments lacked adequate cash flow in 2022 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract. Effect: Lucille Manor Apartments was not in compliance with the regulatory agreement. Recommendation: We recommend that Lucille Manor Apartments make the remaining $1,910 deposit into the reserve for replacements when cash flow is sufficient. Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in July 2022.