EIN: 251419863
UEI: DW98QNQJQ395
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 12, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 12, 2026 (74 days ago).
What is a management decision? →During the year ended June 30, 2025, the Corporation made fifteen monthly mortgage and escrow payments, however, as of June 30, 2025 the Corporation was delinquent by one monthly mortgage and escrow payment. Additionally, the Corporation incurred late fees of $2,321 during the year ended June 30, 2025. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2025, the Corporation made fifteen mortgage payments and escrow deposits, however, as of June 30, 2025 the Corporation was delinquent by one monthly mortgage payment and escrow deposit. Questioned Costs: $2,321 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, in July 2025, the Corporation executed a reinstatement agreement with the lender to make additional monthly mortgage payments of $1,000 through May 2026 to bring the mortgage to current.
Show full finding ▾Hide full finding ▴Finding 2025-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ended June 30, 2025, the Corporation made fifteen monthly mortgage and escrow payments, however, as of June 30, 2025 the Corporation was delinquent by one monthly mortgage and escrow payment. Additionally, the Corporation incurred late fees of $2,321 during the year ended June 30, 2025. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2025, the Corporation made fifteen mortgage payments and escrow deposits, however, as of June 30, 2025 the Corporation was delinquent by one monthly mortgage payment and escrow deposit. Questioned Costs: $2,321 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, in July 2025, the Corporation executed a reinstatement agreement with the lender to make additional monthly mortgage payments of $1,000 through May 2026 to bring the mortgage to current.
Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN December 2, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2025 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2025-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2025-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, in July 2025, the Corporation executed a reinstatement agreement with the lender to make additional monthly mortgage payments of $1,000 through May 2026 to bring the mortgage to current. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
2024-001
FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
During the year ended June 30, 2024, the Corporation made twelve payments on the mortgage payable, however, as of June 30, 2024 the Corporation was delinquent by four months of principal and interest from a prior year. Additionally, the Corporation incurred late fees of $2,127 during the year ended June 30, 2024. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2024, the Corporation made twelve mortgage payments and escrow deposits, however, as of June 30, 2024 the Corporation was delinquent by four months of principal and interest. Questioned Costs: $2,127 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits.
Show full finding ▾Hide full finding ▴Finding 2024-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ended June 30, 2024, the Corporation made twelve payments on the mortgage payable, however, as of June 30, 2024 the Corporation was delinquent by four months of principal and interest from a prior year. Additionally, the Corporation incurred late fees of $2,127 during the year ended June 30, 2024. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2024, the Corporation made twelve mortgage payments and escrow deposits, however, as of June 30, 2024 the Corporation was delinquent by four months of principal and interest. Questioned Costs: $2,127 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits.
Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN March 25, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2024-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
2023-001
The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2023 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: The annual audit was not completed by the required HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the annual financial report to HUD for the year ended June 30, 2024 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
Show full finding ▾Hide full finding ▴Finding 2024-002 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2023 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: The annual audit was not completed by the required HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the annual financial report to HUD for the year ended June 30, 2024 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN March 25, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2024-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
2023-002
FAC accepted this audit on December 6, 2024 — management decision was due June 6, 2025.
During the year ended June 30, 2023, the Corporation made ten of the required monthly mortgage and escrow payments. Furthermore, the Corporation has two delinquent monthly mortgage payments from a prior year resulting in four total delinquent mortgage payments as of June 30, 2023. Additionally, the Corporation incurred late fees of $2,705 during the year ended June 30, 2023. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2023, the Corporation made ten mortgage payments and escrow deposits. Additionally, the Corporation has two delinquent monthly mortgage payments from a prior year resulting in four total delinquent mortgage payments as of June 30, 2023. Questioned Costs: $2,705 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits.
Show full finding ▾Hide full finding ▴Finding 2023-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ended June 30, 2023, the Corporation made ten of the required monthly mortgage and escrow payments. Furthermore, the Corporation has two delinquent monthly mortgage payments from a prior year resulting in four total delinquent mortgage payments as of June 30, 2023. Additionally, the Corporation incurred late fees of $2,705 during the year ended June 30, 2023. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required monthly mortgage and escrow payments by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments and escrow deposits to the actual mortgage payments and escrow deposits was performed. During the year ended June 30, 2023, the Corporation made ten mortgage payments and escrow deposits. Additionally, the Corporation has two delinquent monthly mortgage payments from a prior year resulting in four total delinquent mortgage payments as of June 30, 2023. Questioned Costs: $2,705 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage payments and escrow deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits.
Stoneboro Development Corporation Stoneboro, Pennsylvania November 18, 2024 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. Finding 2023-004: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Action Taken: We agree with Finding 2023-004 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Finding 2023-005: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Action Taken: We agree with Finding 2023-005 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all disbursements from project operations. Finding 2023-006: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Action Taken: We agree with Finding 2023-006 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all cash receipts of the project. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
2022-001
The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Prior management oversight and non-responsiveness. Context: The annual audit was not completed by the due date of the required reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.
Show full finding ▾Hide full finding ▴Finding 2023-002 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2023 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Prior management oversight and non-responsiveness. Context: The annual audit was not completed by the due date of the required reporting package to the FAC. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge that the data collection form for the year ended June 30, 2023 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.
Stoneboro Development Corporation Stoneboro, Pennsylvania November 18, 2024 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. Finding 2023-004: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Action Taken: We agree with Finding 2023-004 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Finding 2023-005: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Action Taken: We agree with Finding 2023-005 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all disbursements from project operations. Finding 2023-006: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Action Taken: We agree with Finding 2023-006 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all cash receipts of the project. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
2022-002
The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2023 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: The annual audit was not completed by the required HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the annual financial report to HUD for the year ended June 30, 2023 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
Show full finding ▾Hide full finding ▴Finding 2023-003 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2023 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: The annual audit was not completed by the required HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the annual financial report to HUD for the year ended June 30, 2023 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
Stoneboro Development Corporation Stoneboro, Pennsylvania November 18, 2024 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. Finding 2023-004: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Action Taken: We agree with Finding 2023-004 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Finding 2023-005: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Action Taken: We agree with Finding 2023-005 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all disbursements from project operations. Finding 2023-006: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Action Taken: We agree with Finding 2023-006 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all cash receipts of the project. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
2022-003
During the year ended June 30, 2023, the Corporation only made ten of the required monthly deposits to the replacement reserve account resulting in delinquent deposits for the current year of $1,482. Furthermore, the Corporation also has delinquent deposits of $1,482 from the prior year resulting in total delinquent reserve deposits of $2,964 as of June 30, 2023. Criteria: HUD Handbook 4370.2 REV-1 CHG-1, Chapter 2, Section 2-7 and the Regulatory Agreement specifies that the replacement reserve account must be maintained in a separate account, with monthly deposits made as required. Effect: Noncompliance with HUD regulations. Cause: Vacancy and cash flow shortages. Context: A test to compare actual deposits to the replacement reserve account to the required deposits to the replacement reserve account was performed. During the year ending June 30, 2023, only ten of the required deposits were made to the replacement reserve account. Questioned Costs: N/A Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required reserve deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow.
Show full finding ▾Hide full finding ▴Finding 2023-004 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ended June 30, 2023, the Corporation only made ten of the required monthly deposits to the replacement reserve account resulting in delinquent deposits for the current year of $1,482. Furthermore, the Corporation also has delinquent deposits of $1,482 from the prior year resulting in total delinquent reserve deposits of $2,964 as of June 30, 2023. Criteria: HUD Handbook 4370.2 REV-1 CHG-1, Chapter 2, Section 2-7 and the Regulatory Agreement specifies that the replacement reserve account must be maintained in a separate account, with monthly deposits made as required. Effect: Noncompliance with HUD regulations. Cause: Vacancy and cash flow shortages. Context: A test to compare actual deposits to the replacement reserve account to the required deposits to the replacement reserve account was performed. During the year ending June 30, 2023, only ten of the required deposits were made to the replacement reserve account. Questioned Costs: N/A Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required reserve deposits were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow.
Stoneboro Development Corporation Stoneboro, Pennsylvania November 18, 2024 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. Finding 2023-004: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Action Taken: We agree with Finding 2023-004 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Finding 2023-005: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Action Taken: We agree with Finding 2023-005 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all disbursements from project operations. Finding 2023-006: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Action Taken: We agree with Finding 2023-006 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all cash receipts of the project. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
During the year ending June 30, 2023, supporting documentation was not available for some requested disbursements. Criteria: The HUD Handbook 4370.2 REV-1, Chapter 2 Section 12 states a request for a check must have supporting documentation (i.e., invoice itemizing amount requested with an authorized signature) in order for approval to be obtained to make the disbursement. Checks must be approved by an individual authorized to approve checks. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: A sample of cash disbursements totaling $58,527 were tested to determine if the cash disbursements were in accordance with HUD Handbook 4370.2. A total of $25,781 of cash disbursements tested did not have supporting documentation and therefore unable to be tested for compliance with HUD Handbook 4370.2 and deemed noncompliant. By extrapolating our identified error rate on cash disbursements tested that were noncompliant (44%) over the total population of cash disbursements for the year ending June 30, 2023 of $455,836, $200,796 of cash disbursements could be noncompliant based on the above error rate. Questioned Costs: $200,796 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge the requested disbursements did not have supporting documentation available. During the change in management effective June 1, 2023, the prior management company did not provide new management company with all invoices or other supporting documents for some disbursements and did not provide the requested invoices to the auditor for testing. The new management will ensure supporting documentation is maintained for all disbursements from project operations during their management.
Show full finding ▾Hide full finding ▴Finding 2023-005 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ending June 30, 2023, supporting documentation was not available for some requested disbursements. Criteria: The HUD Handbook 4370.2 REV-1, Chapter 2 Section 12 states a request for a check must have supporting documentation (i.e., invoice itemizing amount requested with an authorized signature) in order for approval to be obtained to make the disbursement. Checks must be approved by an individual authorized to approve checks. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: A sample of cash disbursements totaling $58,527 were tested to determine if the cash disbursements were in accordance with HUD Handbook 4370.2. A total of $25,781 of cash disbursements tested did not have supporting documentation and therefore unable to be tested for compliance with HUD Handbook 4370.2 and deemed noncompliant. By extrapolating our identified error rate on cash disbursements tested that were noncompliant (44%) over the total population of cash disbursements for the year ending June 30, 2023 of $455,836, $200,796 of cash disbursements could be noncompliant based on the above error rate. Questioned Costs: $200,796 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge the requested disbursements did not have supporting documentation available. During the change in management effective June 1, 2023, the prior management company did not provide new management company with all invoices or other supporting documents for some disbursements and did not provide the requested invoices to the auditor for testing. The new management will ensure supporting documentation is maintained for all disbursements from project operations during their management.
Stoneboro Development Corporation Stoneboro, Pennsylvania November 18, 2024 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. Finding 2023-004: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Action Taken: We agree with Finding 2023-004 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Finding 2023-005: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Action Taken: We agree with Finding 2023-005 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all disbursements from project operations. Finding 2023-006: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Action Taken: We agree with Finding 2023-006 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all cash receipts of the project. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
During the year ending June 30, 2023, supporting documentation was not available for some of the requested deposits. Criteria: The HUD Handbook 4370.2 REV-1, Chapter 2 Section 12 states that all cash receipts must deposited in the name of the project, numbered rent receipts shall be used and reconciled to actual collections, an adequate recording system shall be employed to note all checks received and deposited and all collections shall be promptly deposited on the day received. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: A sample of cash receipts totaling $48,454 were tested to determine if the cash receipts were in accordance with HUD Handbook 4370.2. A total of $10,397 of cash receipts tested did not have supporting documentation and therefore unable to be tested for compliance with HUD Handbook 4370.2 and deemed noncompliant. By extrapolating our identified error rate on cash receipts tested that were noncompliant (21%) over the total population of cash receipts for the year ending June 30, 2023 of $462,780, $99,296 of cash receipts could be noncompliant based on the above error rate. Questioned Costs: N/A Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge the requested cash receipts noted did not have supporting documentation available. During the change in management effective June 1, 2023, the prior management company did not provide new management company with supporting documentation for cash all cash receipts and did not provide the requested cash receipts supporting documents to the auditor for testing. The new management will ensure supporting documentation is maintained for all cash receipts from project operations during their management.
Show full finding ▾Hide full finding ▴Finding 2023-006 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ending June 30, 2023, supporting documentation was not available for some of the requested deposits. Criteria: The HUD Handbook 4370.2 REV-1, Chapter 2 Section 12 states that all cash receipts must deposited in the name of the project, numbered rent receipts shall be used and reconciled to actual collections, an adequate recording system shall be employed to note all checks received and deposited and all collections shall be promptly deposited on the day received. Effect: Noncompliance with HUD regulations. Cause: Prior management oversight and non-responsiveness. Context: A sample of cash receipts totaling $48,454 were tested to determine if the cash receipts were in accordance with HUD Handbook 4370.2. A total of $10,397 of cash receipts tested did not have supporting documentation and therefore unable to be tested for compliance with HUD Handbook 4370.2 and deemed noncompliant. By extrapolating our identified error rate on cash receipts tested that were noncompliant (21%) over the total population of cash receipts for the year ending June 30, 2023 of $462,780, $99,296 of cash receipts could be noncompliant based on the above error rate. Questioned Costs: N/A Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge the requested cash receipts noted did not have supporting documentation available. During the change in management effective June 1, 2023, the prior management company did not provide new management company with supporting documentation for cash all cash receipts and did not provide the requested cash receipts supporting documents to the auditor for testing. The new management will ensure supporting documentation is maintained for all cash receipts from project operations during their management.
Stoneboro Development Corporation Stoneboro, Pennsylvania November 18, 2024 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2023-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. Finding 2023-004: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely monthly deposits to the replacement reserve account are made as required. Action Taken: We agree with Finding 2023-004 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Finding 2023-005: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all disbursements from project operations. Action Taken: We agree with Finding 2023-005 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all disbursements from project operations. Finding 2023-006: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management ensure supporting documentation is maintained for all cash receipts of the project. Action Taken: We agree with Finding 2023-006 and the recommendation described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure supporting documentation is maintained for all cash receipts of the project. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent
FAC accepted this audit on January 26, 2024 — management decision was due July 26, 2024.
During the year ended June 30, 2022, the Corporation made thirteen payments on the mortgage payable, however, as of June 30, 2022 the Corporation was delinquent by two months of principal and interest. Additionally, the Corporation incurred late fees of $911 during the year ended June 30, 2022. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required payments of mortgage principal and interest by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments to the actual mortgage payments was performed. The Corporation made thirteen payments on the mortgage payable, however, as of June 30, 2022 the Corporation was delinquent by two months of principal and interest. Questioned Costs: $911 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage principal and interest payments. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments as cash flow permits.
Show full finding ▾Hide full finding ▴Finding 2022-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: During the year ended June 30, 2022, the Corporation made thirteen payments on the mortgage payable, however, as of June 30, 2022 the Corporation was delinquent by two months of principal and interest. Additionally, the Corporation incurred late fees of $911 during the year ended June 30, 2022. Criteria: The Loan Agreement and the Regulatory Agreement with HUD requires the Corporation to make all required payments of mortgage principal and interest by its due date. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Vacancy and cash flow shortages. Context: A test to compare the required mortgage payments to the actual mortgage payments was performed. The Corporation made thirteen payments on the mortgage payable, however, as of June 30, 2022 the Corporation was delinquent by two months of principal and interest. Questioned Costs: $911 Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage principal and interest payments. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the required mortgage were not made. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments as cash flow permits.
Recommendation: We recommend that management and the board of directors work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage principal and interest payments. Action Taken: We agree with Finding 2022-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments as cash flow permits.
The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2022 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Prior management oversight. Context: The engagement letter for the audit was executed after the required due date for the required reporting package to the Federal Audit Clearinghouse (FAC). Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge that the data collection form for the year ended June 30, 2022 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.
Show full finding ▾Hide full finding ▴Finding 2022-002 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended June 30, 2022 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Prior management oversight. Context: The engagement letter for the audit was executed after the required due date for the required reporting package to the Federal Audit Clearinghouse (FAC). Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledge that the data collection form for the year ended June 30, 2022 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.
Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2022-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.
The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2022 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Prior management oversight. Context: The engagement letter for the audit was executed after the required due date for the HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the annual financial report to HUD for the year ended June 30, 2022 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
Show full finding ▾Hide full finding ▴Finding 2022-003 - U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2022 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and mortgage default. Cause: Prior management oversight. Context: The engagement letter for the audit was executed after the required due date for the HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: The board of directors acknowledges the annual financial report to HUD for the year ended June 30, 2022 is past the required due date. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2022-003 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates.
FAC accepted this audit on October 4, 2021 — management decision was due April 4, 2022.
The Project did not make the required number of deposits to the RFR account during the year ended June 30, 2021 resulting in the account being short $1,482 for the year ended June 30, 2021. Criteria: HUD regulations and the HUD regulatory agreement require the Project to make monthly deposits to the RFR account unless a waiver of deposits is approved by HUD. Cause: The Project did not make the April or May deposits in the amount of $1,482 due to poor cash flow. Effect or Potential Effect: The RFR account is short $1,482 in deposits as of June 30, 2021. Recommendation: The Project should make the required deposits when cash flow permits Reporting Views of Responsible Officials: Management agrees with the finding and will make the required deposits.
Show full finding ▾Hide full finding ▴Finding 2021-001 Questioned Costs: $1,482 Information on Universe and Population Size: N/A Sample Size Information: N/A Noncompliance Information: The Project did not make all the required deposits to the reserve for replacements (?RFR?) account during the year ended June 30, 2021. Condition: The Project did not make the required number of deposits to the RFR account during the year ended June 30, 2021 resulting in the account being short $1,482 for the year ended June 30, 2021. Criteria: HUD regulations and the HUD regulatory agreement require the Project to make monthly deposits to the RFR account unless a waiver of deposits is approved by HUD. Cause: The Project did not make the April or May deposits in the amount of $1,482 due to poor cash flow. Effect or Potential Effect: The RFR account is short $1,482 in deposits as of June 30, 2021. Recommendation: The Project should make the required deposits when cash flow permits Reporting Views of Responsible Officials: Management agrees with the finding and will make the required deposits.
STONEBORO (LAKEVIEW) 25 Lake Street Stoneboro, PA 16153 Corrective Action Plan Name of auditee: Stoneboro Development Corporation Auditee identification number: 033-11048 Name of audit firm: Affordable Housing Accountants Ltd. Period covered by the audit: July 1, 2020 ?June 1, 2021 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2021-001 a. Comments on the Finding and Each Recommendation Those charged with governance agree with the finding and the recommendation. b. Action Taken or Planned on the Finding Responsible individuals of the Project will make the required deposits when cash flow permits. CAP prepared by: Name: Julie Widel Signature: Position: President Telephone Number: 724-376-4048
FAC accepted this audit on November 14, 2018 — management decision was due May 14, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
FAC accepted this audit on October 24, 2017 — management decision was due April 24, 2018.
GSA_MIGRATION
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GSA_MIGRATION
2016-001
FAC accepted this audit on April 2, 2017 — management decision was due October 2, 2017.
GSA_MIGRATION
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GSA_MIGRATION
2015-001
GSA_MIGRATION
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GSA_MIGRATION
2015-003
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