California RD Property with outstanding mortgage financed by tax exempt bonds

ID Status Date Public/Private Industry AHACPA Contact
#11151 Closed public Rural Development Les Sparks
Customer Reply

Our client received a deficiency notice regarding the filing of the 2017 Audited Financial Statement.  The notice indicated there was a finding as the auditor did not test and report on compliance and fair housing and discrimination per HB Chapter 7, Attachment 7-B.  The notice indicated borrowers with a loan balance exceeding $750,000 must follow these guidelines. Per review of the guidelines, in attachment 7-B, it references loan balance between $500k and $2M as non-major programs but require the compliance testing.  These guidelines appear to follow the old HUD Audit Guide before it was updated several years ago.  Are the requirements of HB Chapter 7, Attachment 7-B still current for us to follow?

Les Sparks

Jim, the requirements of the RD guaranteed loan program 3565 do follow different audit guidelines.  As far as I am aware, the recent changes for the 3560 program do no affect the 3565 guidelines,  Accordingly, fair housing is a requirement.  However, since RD never reviews these, I have never heard of any one being reviewed and commented on.

 

Les Sparks

AHACPA

(801) 547-0809

 

From: AHACPA Support <[email protected]>
Sent: Wednesday, April 3, 2019 9:18 AM
To: [email protected]
Subject: California RD Property with outstanding mortgage financed by tax exempt bonds [NEW]

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