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Closed Date:
January 29, 2021

Implement adequate controls to ensure that project funds are used only for eligible and supported operating expenses.

Publication Report

2019-BO-1004 | September 09, 2019

Tuscan Homes I and II in Hartford, CT, Was Not Always Managed in Accordance With Its Regulatory Agreement and HUD Requirements

We audited Tuscan Homes I and II, a multifamily project located in Hartford, CT, because our risk assessment ranked the project as the highest risk multifamily project in New England.  Our audit objective was to determine whether the owner managed… more

Related Recommendations

Housing

  •   2019-BO-1004-001-A
    $17,761.00

    Closed on September 30, 2020

    Reimburse the project $17,761 from nonproject funds for the project operating funds disbursed for ineligible expenses.

  •   2019-BO-1004-001-B
    $17,653.00

    Closed on September 30, 2020

    Support or reimburse the project $17,653 from nonproject funds for the project operating funds disbursed without sufficient supporting documentation.

  •   2019-BO-1004-001-C
    $45,000.00

    Closed on January 29, 2021

    Reclassify and properly record $45,000 in owner advances misclassified as loans.

  • Closed on January 29, 2021

    Strengthen controls to ensure that project advances are reimbursed only when the project is in a surplus-cash position.

  • Closed on February 08, 2021

    Implement adequate controls to ensure the review of the management agent fee to ensure that it is properly calculated in accordance with the HUD management agent certification and approved prior to payment from project operating funds.

  • Closed on February 12, 2021

    Obtain a formal agreement and approval from HUD to specify who is authorized to use the project’s community and recreation rooms and what activities are authorized or prohibited. In addition, this agreement must ensure that sufficient legal and liability protections are in place, establish consequences for noncompliance, and determine who is to pay for the utilities and maintenance of the rooms.

  • Closed on January 29, 2021

    Amend the management agent agreement compensation schedule to remove bookkeeping fees as a fee separate from the 8.9 percent management agent fee.