Finding Text
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Supportive Housing for the Elderly (Section 202), CFDA 14.157 2022-001 Compliance Requirement: Special Tests and Provisions ? Reserve for Replacements Fund Condition: The reserve for replacements fund account is less than $200,000 as of June 30, 2022. Criteria: The U.S. Department of Housing and Urban Development Form HUD-9250 dated February 26, 2021 for the reserve for replacements fund states that a suspension of deposits to the reserve is allowed as long as a balance of $200,000 is maintained. Cause/Effect: The Project?s management did not maintain the required $200,000 balance in the reserve for replacement fund account during fiscal year end June 30, 2022. Questioned Cost: Undetermined Recommendation: Every effort should be made to comply with the reserve for replacements fund minimum balance requirement. Management should obtain from HUD an updated Form HUD-9250 waiving the $200,000 required minimum deposit. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and the recommended procedures. Every effort will be made to have the reserve for replacements fund minimum balance requirement modified and to comply with the modified balance.