Finding Text
During the year ended July 31, 2023, the Corporation paid appraisal and other costs totaling $9,750 from the Community's operating cash account in connection with a potential sale of the Community. These expenditures are not considered Reasonable Operating Expenses in accordance with the Regulatory Agreement and Program Obligations. Pursuant to Section 12 of the Regulatory Agreement, Community funds shall be withdrawn only in accordance with the provisions of the Regulatory Agreement for Reasonable Operating Expenses of the Community. Reasonable Operating Expenses means expenses that arise from the operation, maintenance and routine repair of the Community and that primarily benefit the Community (as opposed to Borrower) or as otherwise permitted by Program Obligations. These costs were inadvertently not reimbursed to the Community. As a result, the Corporation was not in compliance with the Regulatory Agreement.