Finding Text
2022-1 Reserve for Replacement Account Underfunded Condition: The Project did not make the required deposit amounts into the bank account on a monthly basis. Criteria: On August 1, 2021, HUD increased the monthly reserve for replacement amount from $1,095 to $1,120, and increased the deposit amount again on August 1, 2022 from $1,120 to $1,146. As of December 31, 2022, all deposits were still being made at $1,095 each month. Cause: The cause is undeterminable. Effect: The Project is not in compliance with the Regulatory Agreement and the account is underfunded. Recommendation: I recommend the Property make required monthly deposits at the correct amount.