Finding Text
Finding 2023-001 At September 30, 2023, the reserve for replacements was underfunded by $7,152.
Criteria. The HUD Regulatory Agreement, or amendments to that agreement, requires the borrower to make monthly reserve for replacement deposits.
Cause. The complex did not have the funds available to make the required deposits.
Effect. The borrower is not in compliance with the terms of the HUD Regulatory Agreement.
Recommendation. We recommend the appropriate transfer be made as soon as funds are available.