Finding 599337 (2022-001)

-
Requirement
F
Questioned Costs
-
Year
2022
Accepted
2023-04-09

AI Summary

  • Core Issue: The Corporation failed a REAC physical inspection with a rating of 34c, indicating poor property maintenance.
  • Impacted Requirements: This violation breaches the HUD Regulatory Agreement, which mandates properties be kept in good repair.
  • Recommended Follow-Up: Ensure all necessary repairs are completed by December 31, 2022, and implement procedures to maintain compliance for future inspections.

Finding Text

Finding Resolution Status ? Resolved Information on Universe and Population Size The Corporation was subject to one Real Estate Assessment Center (REAC) physical inspection on April 26, 2026. Sample Size Information N/A Not determined via a sampling method Identification of Repeat Finding and Finding Reference Number N/A Not a repeat finding. Criteria The HUD Regulatory Agreement requires the property to be maintained in good repair condition. Statement of Condition On April 26, 2022, the Corporation had a Real Estate Assessment Center (REAC) physical inspection at the property and received a rating of 34c. Cause There are several repairs that need to be completed through the building in order for the Corporation to be in compliance with the requirements of the regulatory agreement. Effect or Potential Effect As a result of the inspection, the Corporation was in violation of its regulatory agreement with HUD. Auditor Noncompliance Code I Failure to maintain the property/open physical inspection(s) Reporting Views of Responsible Officials The Corporation agrees with the finding as reported. Context During testing for compliance with the HUD Regulatory Agreement, one instance of a failing REAC physical inspection rating was noted. Recommendation All required repairs should be made in accordance with the REAC inspection and the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations The Corporation should implement procedures to ensure the property is in good repair and condition to remain in compliance with the regulatory agreement with HUD. All repairs identified in the REAC inspection report should be made prior to the next scheduled inspection. Response Indicator Agree Completion Date December 31, 2022 Response Management acknowledges noncompliance in the current fiscal year and has addressed all of the health and safety issues and all other findings as of December 31, 2022

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.44M