Audit 344072

Assistance Listing (Federal award identification number and year): Mortgage insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 103-11100 and 2021) Auditor non-compliance code: I – Failure to maintain property/open physical inspection Finding resolution status: In process Universe population size: N/A Sample size information: N/A Statistically valid sample: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2024-001: The Property received a score of 58c* on a physical inspection of the Property performed on June 7, 2023 by a representative of HUD. By reference, the REAC inspection is included as a statement of condition. Criteria: Pursuant to the HUD Regulatory Agreement, the Property is to be maintained in good repair and condition and considered decent, safe, and sanitary. Management is to conduct routine unit and general property inspections and deficiencies should be corrected. Effect: The Corporation is not in compliance with the Regulatory Agreement. If deficiencies are of a life threatening nature and not corrected in a timely manner, the units could be considered not to be in a decent, safe, and sanitary condition. Cause: The Property manager was not using the Uniform Physical Condition Standards Comprehensive Listing Checklist to ensure the Corporation was in compliance with HUD requirements when completing self-inspections. Recommendation: Management should ensure all necessary repairs have been made. Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Management's response: Agree. Management has responded to HUD in regards to this inspection report and has addressed all health and safety issues. Management will continue to correct all remaining deficiencies noted and will implement a process of self-inspection of units and common areas. Management will request a new physical inspection of the property.

Assistance Listing (Federal award identification number and year): Mortgage insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 103-11100 and 2021) Auditor non-compliance code: I – Failure to maintain property/open physical inspection Finding resolution status: In process Universe population size: N/A Sample size information: N/A Statistically valid sample: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2024-001: The Property received a score of 58c* on a physical inspection of the Property performed on June 7, 2023 by a representative of HUD. By reference, the REAC inspection is included as a statement of condition. Criteria: Pursuant to the HUD Regulatory Agreement, the Property is to be maintained in good repair and condition and considered decent, safe, and sanitary. Management is to conduct routine unit and general property inspections and deficiencies should be corrected. Effect: The Corporation is not in compliance with the Regulatory Agreement. If deficiencies are of a life threatening nature and not corrected in a timely manner, the units could be considered not to be in a decent, safe, and sanitary condition. Cause: The Property manager was not using the Uniform Physical Condition Standards Comprehensive Listing Checklist to ensure the Corporation was in compliance with HUD requirements when completing self-inspections. Recommendation: Management should ensure all necessary repairs have been made. Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Management's response: Agree. Management has responded to HUD in regards to this inspection report and has addressed all health and safety issues. Management will continue to correct all remaining deficiencies noted and will implement a process of self-inspection of units and common areas. Management will request a new physical inspection of the property.