Finding Text
HUD insured mortgage program - Section 223(f), Assistance Listing Number 14.155 Criteria: The Project’s occupancy rate should be adequate to maintain Project operations. Statement of Condition: The Project’s vacancy expense was 26% of rental revenue for the year ended September 30, 2023. Cause: Of the Project’s seventy-two units, seven were vacant the entire year, and three others were vacant several months during the year. Effect: Decreased revenue may result in excessive future usage of replacement 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.