Audit 289314

Title: Note 3 – Loans Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activities of Lake Winds Apartments, Inc. (“Organization”). The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis cost rate allowed by the Uniform Guidance. The Organization has the following loan balances: Assistance Listing Original Loan Balance at Additional Loan Funding/ (Payments Balance at Number Description Amount June 30, 2022 Made) June 30, 2023 14.181 Supportive Housing for Persons with Disabilities - Section 811 Capital Advance $ 865,100 $ 865,100 $ - $ 8 65,100

Title: Note 4 – Contingency Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activities of Lake Winds Apartments, Inc. (“Organization”). The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis cost rate allowed by the Uniform Guidance. Expenditures incurred by the Organization are subject to audit and possible disallowance by federal agencies. Management believes that, if audited, an adjustment for disallowed expenses would be immaterial.