HUD conducts periodic on-site management reviews, and the owner must submit audited financial statements within 60 days of each fiscal year end

s202prac.monitoring.hud_management_review_and_annual_financials · v1.0.0

HUD conducts periodic on-site management reviews of the owner's compliance with 24 CFR part 891. The owner must submit to HUD, within 60 days after the end of each fiscal year of project operations, financial statements for the project audited by an independent public accountant in the form HUD requires, together with such other statements regarding project operation, financial conditions and occupancy as HUD may require to administer the PRAC and monitor project operations. The owner must also maintain a separate interest-bearing project fund account, deposit all tenant payments, charges, income and revenues arising from project operation to it, use project funds for the operation of the project and for required replacement reserve deposits in accordance with the HUD-approved budget, and deposit any funds remaining at fiscal year end into a federally insured residual receipts account within 60 days.

Confidence

high

Effective from

1996-03-22

Last reviewed

2026-08-29