Finding Text
S3800-010 Finding reference number 2022-001 S3800-011 Title and CFDA number of federal program Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, CFDA # 14.155 S3800-015 Type of finding Federal Award Finding S3800-016 Finding resolution status In process S3800-017 Information on universe population size 12 payments on the mortgage loan payable S3800-018 Sample size information 12 payments on the mortgage loan payable S3800-019 Identification of repeat finding and finding reference number Repeat finding - 2021-001 S3800-020 Criteria In accordance with item 1 of the Regulatory Agreement, the Organization agrees to make promptly all payments due under the note and mortgage. S3800-030 Statement of condition The Organization is in default on the mortgage note held by HUD. S3800-032 Cause The EIFS synthetic stucco failed and allowed water to infiltrate the building. This water intrusion resulted in the residential units of the rental property being uninhabitable and as a result the Organization does not have cash flow available to make the required mortgage loan payments. S3800-033 Effect or potential effect The Organization is not in compliance with the Regulatory Agreement and is in default on the mortgage loan agreement. S3800-035 Auditor non-compliance code Q - Failure to make mortgage payments S3800-037 FHA/Contract number 062-11095 S3800-038 Questioned costs $ 1 ,807,928 S3800-040 Questioned costs $ 1 ,807,928 S3800-045 Reporting views of responsible officials Management agrees and is finalizing financing options and completing a purchase and rehabilitation of the rental property through the Section 8(bb) process and RAD for PRAC application. S3800-080 Recommendation Management should seek new financing in order to complete the necessary repairs and bring the mortgage loan payable current. S3800-090 Auditor's summary of the auditee's comments on the findings and recommendations. Management agrees and is finalizing financing options and completing a purchase and rehabilitation of the rental property through the Section 8(bb) process and RAD for PRAC application. S3800-130 Response Indicator Agree S3800-140 Anticipated Completion Date June 30, 2023 S3800-150 Response Management concurs