Audit 362267

Title: Note A - Basis of Presentation Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Forest Hills Senior Apartments, Inc. HUD Project No. 033-EE122, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The property has elected to not use the 10% de minimis indirect cost rate. The schedule of expenditures of federal awards includes the federal grant activity of Forest Hills Senior Apartments, Inc. HUD Project No. 033-EE122, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Title: Note B - De Minimis Indirect Cost Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Forest Hills Senior Apartments, Inc. HUD Project No. 033-EE122, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The property has elected to not use the 10% de minimis indirect cost rate. The property has elected to not use the 10% de minimis indirect cost rate.

Title: Note C - Loan/Loan Guarantee Outstanding Balances Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Forest Hills Senior Apartments, Inc. HUD Project No. 033-EE122, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The property has elected to not use the 10% de minimis indirect cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were $3,475,200.