Finding Text
Finding 2022-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: Per the regulatory agreement, Malta House Apartments is required to make monthly deposits of $2,525 into a reserve fund for replacements. Condition: The reserve for replacements account was underfunded by $2,525 as of December 31, 2022. Context: We reviewed the deposits into the reserve for replacements during the year. Cause: Malta House Apartments lacked adequate cash flow in 2022 to make all required deposits. Effect: Malta House Apartments was not in compliance with the regulatory agreement. Recommendation: We recommend that Malta House Apartments make the remaining $2,525 deposit into the reserve for replacements. Views of management and planned corrective action: Malta House Apartments agrees with the finding and the required payment was made in March 2023.