Audit 363432

FY End

2024-12-31

Total Expended

$36.69M

Findings

2

Programs

1

Organization: Preservation of Affordable Housing, INC (MA)

Year: 2024 Accepted: 2025-07-31

Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
572357	2024-001	-	-	H
1148799	2024-001	-	-	H

ALN	Program	Spent	Major	Findings
21.011	Capital Magnet Fund	$36.69M	Yes	1

Contacts

Name	Title	Type
RESKNQ3RBA54	Allison Adduci	Auditee
6174490870	Ken Slater	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes federal award activity of Preservation of Affordable Housing, Inc. and Subsidiaries under various programs of the federal government for the year ended December 31, 2024. The information in this Scheudle is presented in accordance with the requirement 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 Preservation of Affordable Housing, Inc. and Subsidiaries, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Preservation of Affordable Housing, Inc. and Subsidiaries. Expenditures reported on the Schedule are reported on teh accrual basis of accounting. Such expenditures are recognized following the cost principles contained in teh Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Preservation of Affordable Housing, Inc. and Subsidiaries has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

Finding No. 2024-001 – Period of Performance Name of Federal Agency: U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Program Name and Assistance Listing Number: Capital Magnet Fund, No. 21.011 Federal Award Identification Number and Year: 181CM050459, 2018 Criteria In accordance with the fiscal year 2018 Capital Magnet Fund (“CMF”) Assistance Agreement, Section 3.2 (j), the entity shall achieve project completion with respect to projects financed/supported by its entire CMF Award by no later than March 27, 2024. Condition The entity did not achieve project completion for all projects financed by the entity’s CMF Award by the due date. Cause Construction was delayed due to COVID 19 and local permitting challenges. Effect or Potential Effect The entity is not in compliance with the fiscal year 2018 Capital Magnet Fund Assistance Agreement. Questioned Costs: Not applicable. Context One of four projects did not achieve project completion. The production targets of the fiscal year 2018 Capital Magnet Fund Assistance Agreement were met without the incomplete project. Repeat Finding: No Recommendation Management should complete construction on the project and submit required documentation to the Community Development Financial Institutions Fund. Views of Responsible Officials One of the four CMF funded projects, Barry Farm, is a two-phase project. The construction start was delayed due to local permitting challenges and COVID-related issues which resulted in the project not being completed by the original Project Completion date of March 27, 2024. Management informed CDFI Fund of the delays in the project and on May 16, 2024, CDFI Fund provided a one-year cure period to March 31, 2025. At that time, Management informed CDFI Fund that the second phase of the Barry Farm project would require a longer cure period due to a 30-month delivery schedule, driven by the incorporation of a large geothermal system, with delivery set for late 2026. CDFI Fund directed Management to report on the second phase’s progress with a new cure period request annually until project completion. During the cure period, Barry Farm’s first phase was completed, and is now leased up and operating. In March 2025, Management informed CDFI of the project status for phase two which is now 24% complete and remains on schedule for completion in November 2026. CDFI Fund provided a one-year cure period until March 31, 2026. Management has otherwise significantly exceeded the grant’s performance targets and will request cure period extensions until project completion.

Finding 2024-001

Finding No. 2024-001 – Period of Performance Name of Federal Agency: U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Program Name and Assistance Listing Number: Capital Magnet Fund, No. 21.011 Federal Award Identification Number and Year: 181CM050459, 2018 Criteria In accordance with the fiscal year 2018 Capital Magnet Fund (“CMF”) Assistance Agreement, Section 3.2 (j), the entity shall achieve project completion with respect to projects financed/supported by its entire CMF Award by no later than March 27, 2024. Condition The entity did not achieve project completion for all projects financed by the entity’s CMF Award by the due date. Cause Construction was delayed due to COVID 19 and local permitting challenges. Effect or Potential Effect The entity is not in compliance with the fiscal year 2018 Capital Magnet Fund Assistance Agreement. Questioned Costs: Not applicable. Context One of four projects did not achieve project completion. The production targets of the fiscal year 2018 Capital Magnet Fund Assistance Agreement were met without the incomplete project. Repeat Finding: No Recommendation Management should complete construction on the project and submit required documentation to the Community Development Financial Institutions Fund. Views of Responsible Officials One of the four CMF funded projects, Barry Farm, is a two-phase project. The construction start was delayed due to local permitting challenges and COVID-related issues which resulted in the project not being completed by the original Project Completion date of March 27, 2024. Management informed CDFI Fund of the delays in the project and on May 16, 2024, CDFI Fund provided a one-year cure period to March 31, 2025. At that time, Management informed CDFI Fund that the second phase of the Barry Farm project would require a longer cure period due to a 30-month delivery schedule, driven by the incorporation of a large geothermal system, with delivery set for late 2026. CDFI Fund directed Management to report on the second phase’s progress with a new cure period request annually until project completion. During the cure period, Barry Farm’s first phase was completed, and is now leased up and operating. In March 2025, Management informed CDFI of the project status for phase two which is now 24% complete and remains on schedule for completion in November 2026. CDFI Fund provided a one-year cure period until March 31, 2026. Management has otherwise significantly exceeded the grant’s performance targets and will request cure period extensions until project completion.