| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #13835 | Closed | public | Multifamily | Les Sparks |
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Hello Les – I have an owner/operator of a nursing home client, upon initiation they issued a security deposit to themselves(from the operation to the building) upon establishment of an operating agreement however soon after they withdrew this money. When requesting the substantiation of these security deposit funds, the response was “they are not required to hold the money” and I do not see much guidance on this in the Guide. Please let me know if this is correct? |
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Obaid, there is no guidance given in the 232 Handbook or the 232 Reg Agreement on Security deposits. That is due to the fact that HUD’s focus is on tenant/patient security deposits which are generally not collected. Further, if they were collected, they would be collected by the operator and not the borrower. Now, in your situation, the deposit came from the Operator and not a resident/patient. I can see no guidance on how these should be handled, per se. However, Handbook 4370.2 does mention it and I am reluctant to indicate that it does not apply. However, it may not now that HUD issued a 232-specific handbook.
Les Sparks AHACPA (801) 547-0809
From: AHACPA Support <support@ahacpa.org> |
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My thoughts exactly. Thank you Les. |