Finding 61445 (2022-002)

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Four move-out tenants. Sample Size Information: Four move-out tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repaid along with a statement of the tenant?s rights under state and local laws within 21 days after the move-out date. Statement of Condition: One tenant was not refunded their security deposits within 21 days after their move-out date. Cause: The manager did not adhere to state laws and HUD regulations for refunding security deposits resulting in the untimely refund of the security deposit. Effect or Potential Effect: The Project is not in compliance with HUD regulations and state laws regarding the refunding of security deposits with the required timeframe. Auditor Non-Compliance Code: M ? Security Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure the manager complies with state laws and HUD regulations for timely refunding of security deposits. Response Indicator: Agree. Completion Date: 07/19/2022 Response: All managers have been provided training on proper procedures inclusive of security deposit refund state laws.