Audit 361711

Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $3,490 CO99T841007 REDI III 2017 $7,350 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,840 Repeat Finding: Yes Statement of condition #2023-001 (Assistance Listing No. 14.195): At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, the reserve for replacements accounts are underfunded $10,840. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: October 19, 2023 (REDI IV), January 11, 2024 (REDI III) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $51,630 CO99T841007 REDI III 2017 $19,654 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $71,284 Repeat Finding: No Statement of condition #2023-002 (Assistance Listing No. 14.195): During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Finding reference number: #2023-002 (continued) Criteria: The HAP Contracts require that surplus cash, as defined, to be deposited into either a residual receipts account or reserve for replacement account within 90 days after the end of the fiscal year. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, REDI III had surplus cash of $51,630. During the year ended March 31, 2023, the Corporation did not deposit surplus cash into the residual receipts account for REDI III. At March 31, 2023, the residual receipts account for REDI III is underfunded by $51,630. At March 31, 2022, REDI IV had surplus cash of $19,654. During the year ended, March 31, 2023, the Corporation did not deposit surplus cash to the residual receipts account for REDI IV. At March 31, 2023, the residual receipts account for REDI IV is underfunded by $19,654. Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI III and REDI IV within 90 days after the end of the fiscal year. Recommendation: The Agent should transfer $51,630 from the REDI III operating account to the residual receipts account and $19,654 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year. Completion date: October 19, 2023 (REDI III), December 13, 2023 (REDI IV) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipts account are made within 90 days after the end of the fiscal year.

Finding reference number: #2023-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T851006 REDI IV 2017 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Finding reference number: #2023-003 (continued) Pass-through entity: N/A Questioned costs: $28,300 Repeat Finding: Yes Statement of condition #2023-003 (Assistance Listing No. 14.195): For the year ended March 31, 2023, the Corporation paid $28,300 on behalf of a related entity without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2023 has been reduced by $28,300. Cause: The Corporation did not obtain HUD approval prior to making payments on behalf of the related entity. Recommendation: The related entity should repay $28,300 to the Corporation. The Agent should consider obtaining written approval from HUD prior to making any future distributions or payments to related entities. Completion date: December 13, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $28,300 to the Corporation.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $3,490 CO99T841007 REDI III 2017 $7,350 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,840 Repeat Finding: Yes Statement of condition #2023-001 (Assistance Listing No. 14.195): At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, the reserve for replacements accounts are underfunded $10,840. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: October 19, 2023 (REDI IV), January 11, 2024 (REDI III) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $51,630 CO99T841007 REDI III 2017 $19,654 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $71,284 Repeat Finding: No Statement of condition #2023-002 (Assistance Listing No. 14.195): During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Finding reference number: #2023-002 (continued) Criteria: The HAP Contracts require that surplus cash, as defined, to be deposited into either a residual receipts account or reserve for replacement account within 90 days after the end of the fiscal year. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, REDI III had surplus cash of $51,630. During the year ended March 31, 2023, the Corporation did not deposit surplus cash into the residual receipts account for REDI III. At March 31, 2023, the residual receipts account for REDI III is underfunded by $51,630. At March 31, 2022, REDI IV had surplus cash of $19,654. During the year ended, March 31, 2023, the Corporation did not deposit surplus cash to the residual receipts account for REDI IV. At March 31, 2023, the residual receipts account for REDI IV is underfunded by $19,654. Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI III and REDI IV within 90 days after the end of the fiscal year. Recommendation: The Agent should transfer $51,630 from the REDI III operating account to the residual receipts account and $19,654 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year. Completion date: October 19, 2023 (REDI III), December 13, 2023 (REDI IV) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipts account are made within 90 days after the end of the fiscal year.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-004 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 Auditor non-compliance code: A – Activities Allowed or Unallowed Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-004 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $28,619 Repeat Finding: No Statement of Condition #2023-004: During the year ended March 31, 2023, the Partnership made distributions of $28,619 in excess of surplus cash. Criteria: Pursuant to the Regulatory Agreement, the Partnership shall not make, or receive and retain, any distribution of assets or any income of any kind of the project except surplus cash. Effect: The payment of the distribution without surplus cash could result in the Partnership not having enough funds to cover operations. Cause: Management distributed an amount greater than the total of the surplus cash amount. Recommendation: Management should limit the payment of distributions to surplus cash. Completion Date: March 31, 2023 Management Response: Agreed. Management will limit future distributions to surplus cash. Surplus cash is positive at March 31, 2023, no further action is needed.

Finding reference number: #2023-005 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 Auditor non-compliance code: N – Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Finding reference number: #2023-005 (continued) Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of Condition #2023-005: At March 31, 2023 the Partnership's residual receipts accounts were not invested in interest bearing accounts. Criteria: The Regulatory Agreement requires that the residual receipts be invested in an interest bearing account. Effect: The Partnership is not in compliance with the terms of the Regulatory Agreement. Cause: The Partnership did not open an interest bearing account when it opened the residual receipts cash account. Recommendation: The Agent should transfer the residual receipts account to an interest bearing account. Completion Date: December 12, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Partnership will transfer the residual receipts account to an interest bearing account.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-008 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-008: The Partnership did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending March 31, 2023. Criteria: Pursuant to the Regulatory Agreement, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Partnership shall engage an independent, licensed Certified Public Accountant to audit the Partnership's annual financial report and to produce and furnish HUD an audit report in accordance with the requirements established by HUD. Effect: The Partnership was not in compliance with the Regulatory Agreement. Cause: Due to the refinancing transaction, the financial information took longer than expected to prepare. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD. No further action is required.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $3,490 CO99T841007 REDI III 2017 $7,350 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,840 Repeat Finding: Yes Statement of condition #2023-001 (Assistance Listing No. 14.195): At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, the reserve for replacements accounts are underfunded $10,840. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: October 19, 2023 (REDI IV), January 11, 2024 (REDI III) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $51,630 CO99T841007 REDI III 2017 $19,654 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $71,284 Repeat Finding: No Statement of condition #2023-002 (Assistance Listing No. 14.195): During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Finding reference number: #2023-002 (continued) Criteria: The HAP Contracts require that surplus cash, as defined, to be deposited into either a residual receipts account or reserve for replacement account within 90 days after the end of the fiscal year. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, REDI III had surplus cash of $51,630. During the year ended March 31, 2023, the Corporation did not deposit surplus cash into the residual receipts account for REDI III. At March 31, 2023, the residual receipts account for REDI III is underfunded by $51,630. At March 31, 2022, REDI IV had surplus cash of $19,654. During the year ended, March 31, 2023, the Corporation did not deposit surplus cash to the residual receipts account for REDI IV. At March 31, 2023, the residual receipts account for REDI IV is underfunded by $19,654. Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI III and REDI IV within 90 days after the end of the fiscal year. Recommendation: The Agent should transfer $51,630 from the REDI III operating account to the residual receipts account and $19,654 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year. Completion date: October 19, 2023 (REDI III), December 13, 2023 (REDI IV) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipts account are made within 90 days after the end of the fiscal year.

Finding reference number: #2023-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T851006 REDI IV 2017 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Finding reference number: #2023-003 (continued) Pass-through entity: N/A Questioned costs: $28,300 Repeat Finding: Yes Statement of condition #2023-003 (Assistance Listing No. 14.195): For the year ended March 31, 2023, the Corporation paid $28,300 on behalf of a related entity without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2023 has been reduced by $28,300. Cause: The Corporation did not obtain HUD approval prior to making payments on behalf of the related entity. Recommendation: The related entity should repay $28,300 to the Corporation. The Agent should consider obtaining written approval from HUD prior to making any future distributions or payments to related entities. Completion date: December 13, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $28,300 to the Corporation.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $3,490 CO99T841007 REDI III 2017 $7,350 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,840 Repeat Finding: Yes Statement of condition #2023-001 (Assistance Listing No. 14.195): At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, the reserve for replacements accounts are underfunded $10,840. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: October 19, 2023 (REDI IV), January 11, 2024 (REDI III) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $51,630 CO99T841007 REDI III 2017 $19,654 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $71,284 Repeat Finding: No Statement of condition #2023-002 (Assistance Listing No. 14.195): During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Finding reference number: #2023-002 (continued) Criteria: The HAP Contracts require that surplus cash, as defined, to be deposited into either a residual receipts account or reserve for replacement account within 90 days after the end of the fiscal year. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, REDI III had surplus cash of $51,630. During the year ended March 31, 2023, the Corporation did not deposit surplus cash into the residual receipts account for REDI III. At March 31, 2023, the residual receipts account for REDI III is underfunded by $51,630. At March 31, 2022, REDI IV had surplus cash of $19,654. During the year ended, March 31, 2023, the Corporation did not deposit surplus cash to the residual receipts account for REDI IV. At March 31, 2023, the residual receipts account for REDI IV is underfunded by $19,654. Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI III and REDI IV within 90 days after the end of the fiscal year. Recommendation: The Agent should transfer $51,630 from the REDI III operating account to the residual receipts account and $19,654 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year. Completion date: October 19, 2023 (REDI III), December 13, 2023 (REDI IV) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipts account are made within 90 days after the end of the fiscal year.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-004 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 Auditor non-compliance code: A – Activities Allowed or Unallowed Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-004 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $28,619 Repeat Finding: No Statement of Condition #2023-004: During the year ended March 31, 2023, the Partnership made distributions of $28,619 in excess of surplus cash. Criteria: Pursuant to the Regulatory Agreement, the Partnership shall not make, or receive and retain, any distribution of assets or any income of any kind of the project except surplus cash. Effect: The payment of the distribution without surplus cash could result in the Partnership not having enough funds to cover operations. Cause: Management distributed an amount greater than the total of the surplus cash amount. Recommendation: Management should limit the payment of distributions to surplus cash. Completion Date: March 31, 2023 Management Response: Agreed. Management will limit future distributions to surplus cash. Surplus cash is positive at March 31, 2023, no further action is needed.

Finding reference number: #2023-005 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 Auditor non-compliance code: N – Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Finding reference number: #2023-005 (continued) Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of Condition #2023-005: At March 31, 2023 the Partnership's residual receipts accounts were not invested in interest bearing accounts. Criteria: The Regulatory Agreement requires that the residual receipts be invested in an interest bearing account. Effect: The Partnership is not in compliance with the terms of the Regulatory Agreement. Cause: The Partnership did not open an interest bearing account when it opened the residual receipts cash account. Recommendation: The Agent should transfer the residual receipts account to an interest bearing account. Completion Date: December 12, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Partnership will transfer the residual receipts account to an interest bearing account.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-008 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-008: The Partnership did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending March 31, 2023. Criteria: Pursuant to the Regulatory Agreement, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Partnership shall engage an independent, licensed Certified Public Accountant to audit the Partnership's annual financial report and to produce and furnish HUD an audit report in accordance with the requirements established by HUD. Effect: The Partnership was not in compliance with the Regulatory Agreement. Cause: Due to the refinancing transaction, the financial information took longer than expected to prepare. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD. No further action is required.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.

Finding reference number: #2023-006 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued) Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP. Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

Finding reference number: #2023-007 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195 Identification numbers See SEFA Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2023-007: The Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 were not submitted to the federal audit clearinghouse in the required timeframe. Criteria: Pursuant to the Uniform Guidance, the Corporation is required to submit Form SF-SAC Single Audit Data Collection Form within the earlier of 30 days after the receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation was not in compliance with Uniform Guidance. Cause: Due to the refinancing and development activity, year-end accounting was delayed. Recommendation: The Corporation should submit the Form SF-SAC Single Audit Data Collection Form for the years ended March 31, 2023 and 2022 as soon as practical. Completion Date: April 30, 2024 Management Response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to the federal clearinghouse. No further action is required.