Finding Text
Criteria:
The Project is required to refund security deposits to tenants within 30 days after the move-out date, per HUD
handbook 4350.3, Chapter 6.
Condition:
During the course of our audit, we noted one tenant in our sampling with a move-out date of July 29, 2022.
However, the security deposit was not refunded to the tenant until November 4, 2022.
Cause:
The Project has a move out process employed, however, due to personnel turnover, the Project did not have a
housing manager in place during this time. This resulted in a delay in the Project’s move-out procedures. Once this
oversight was discovered, the security deposit was immediately refunded to the tenant.
Effect:
Compliance with the U.S. Department of Housing and Urban Development program is essential. Any
noncompliance could result in intermedial activity. Without timely monitoring, move-out procedures and required
refunds can be overlooked.
Perspective Information
The Project only had two tenants move out during the current fiscal year. This is consistent with prior years’ moveout
activity. Therefore, this appears to be an isolated incident. In addition, move-out procedures are not frequently
performed.
Recommendation:
The Project should ensure a procedure is in place to perform all aspects required of the housing unit procedures in
the event a housing manager is not available.
Response:
Management agent will be responsible for ensuring all aspects of the housing manager position are fulfilled in the
event that the housing manager is unavailable. Cross training has taken place with the Owner/Director of the
housing property so that should both parties be unavailable, the required duties for the housing unit will be acted
upon in a timely manner. See Corrective Action Plan.