Finding Text
Section 223(f), CFDA 14.155 Criteria: The Project?s occupancy rate should be adequate to maintain Project operations. Statement of Condition: The Project?s vacancy expense was 55% of rental revenue for the year ended September 30, 2022. Cause: Twenty of the Project?s 48 units were vacant the entire year, and several units were vacant at various times during the year. Effect: Decreased revenue may result in excessive future usage of replacement reserve and debt service savings reserve funds. Decreased revenue may also negatively impact the Project?s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.