Finding Text
Assistance listing number: 14.181
Assistance listing title: Supportive Housing for Persons with Disabilities (Section 811)
Federal award identification number and year:
HUD Section 811 Capital Grant and Project Rental Assistance Contract - issued
October 2002
Name of federal agency: U.S. Department of Housing and Urban Development
Name of pass-through entity: N/A
Repeat finding: No
Criteria: Owners shall establish and maintain a replacement reserve to aid in funding
extraordinary maintenance and repair and replacement of capital items. An
amount as required by HUD ($3,000) shall be deposited monthly in the reserve
fund.
Condition: The Organization did not make all 12 monthly deposits into the reserve fund
prior to June 30, 2023.
Cause: A combination of higher than usual vacancies and delayed HUD Section 811
Project Assistance Contract receipts resulted in monthly deposits delayed.
Possible effect: The replacement reserve is not maintained in accordance with HUD
requirements.
Questioned cost: None
Recommendation: The Organization should establish monthly closing procedures to ensure timely
monthly deposits to the replacement reserve account.
Views of responsible
officials:
Management agrees and will establish such a monthly closing procedure. The
additional monthly deposits will be deposited in the reserve fund subsequent to
June 30, 2023.