Audit 339186

Title: Note 1—Basis of presentation Accounting Policies: Expenditures reported on the accompanying 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: New Directions Housing Corporation has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal grant activity of New Directions Housing Corporation and Subsidiaries for the year ended June 30, 2024, and is prepared on the accrual basis of accounting. The information in the 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”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the presentation of, the accompanying consolidated financial statements. As discussed in Note 1 to the consolidated financial statements, the accompanying consolidated financial statements include the accounts of New Directions Housing Corporation and its subsidiaries. The accompanying Schedule does not include the federal grant activity of the subsidiaries that are otherwise subject to the Uniform Guidance on an individual basis.

Title: Note 3—Loan programs Accounting Policies: Expenditures reported on the accompanying 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: New Directions Housing Corporation has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance Balances of related mortgages and loans outstanding as of June 30, 2024 are as follows: See notes to SEFA for chart/table.