Audit 18259

Finding No. 2022-001 Statement of Condition During the year ended June 30, 2022, a physical inspection of the property was conducted. Management failed to maintain the property in sufficient state of repair and received a failing score of 28c and 24c. Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Effect or Potential Effect The project was unable to obtain a passing score on its REAC inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Recommendation Management should implement a system that assess and conducts regular maintenance so that the project remains in satisfactory physical condition. Auditor Noncompliance Code: I - Failure to maintain property/open physical inspection Views of Responsible Officials and Planned Corrective Actions Barker Management (BMI) always took pride in the higher standards as it maintained and protocols it implements in the properties it manages. Regarding the findings in Schedule of Findings and Questioned Costs, about the REAC score of 24c, please note this, this was an inspection dated 01.25.2022 only 41 days after BMI took over the management. The inspection performed earlier was in 10.13.2021 with a score of 28c. It was again prior to BMI taken over management of the said property. Since BMI took over, it conducted surveys and meetings with tenant and hired consultants and vendors to address all the findings of items that resulted in management being transferred to BMI. As a result of BMI corrective actions, conditions improved substantially in the property. The REAC conducted on 01.10.2023 had a score of 63c which is a testimony of that progress. BMI will strive to improve the conditions to the highest standards that is accepted by BMI management confirm history of excellent property management.

Finding No. 2022-001 Statement of Condition During the year ended June 30, 2022, a physical inspection of the property was conducted. Management failed to maintain the property in sufficient state of repair and received a failing score of 28c and 24c. Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Effect or Potential Effect The project was unable to obtain a passing score on its REAC inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Recommendation Management should implement a system that assess and conducts regular maintenance so that the project remains in satisfactory physical condition. Auditor Noncompliance Code: I - Failure to maintain property/open physical inspection Views of Responsible Officials and Planned Corrective Actions Barker Management (BMI) always took pride in the higher standards as it maintained and protocols it implements in the properties it manages. Regarding the findings in Schedule of Findings and Questioned Costs, about the REAC score of 24c, please note this, this was an inspection dated 01.25.2022 only 41 days after BMI took over the management. The inspection performed earlier was in 10.13.2021 with a score of 28c. It was again prior to BMI taken over management of the said property. Since BMI took over, it conducted surveys and meetings with tenant and hired consultants and vendors to address all the findings of items that resulted in management being transferred to BMI. As a result of BMI corrective actions, conditions improved substantially in the property. The REAC conducted on 01.10.2023 had a score of 63c which is a testimony of that progress. BMI will strive to improve the conditions to the highest standards that is accepted by BMI management confirm history of excellent property management.