FAC Explorer

Audit 364592

FY End
2024-12-31
Total Expended
$1.89M
Findings
12
Programs
2
Organization: Community Housing Ii, Inc. the Maples II Apartments (OR)
Year: 2024 Accepted: 2025-08-20
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574004 2024-001 Significant Deficiency Yes E
574005 2024-002 Significant Deficiency - N
574006 2024-003 Significant Deficiency - N
574007 2024-001 Significant Deficiency Yes E
574008 2024-002 Significant Deficiency - N
574009 2024-003 Significant Deficiency - N
1150446 2024-001 Significant Deficiency Yes E
1150447 2024-002 Significant Deficiency - N
1150448 2024-003 Significant Deficiency - N
1150449 2024-001 Significant Deficiency Yes E
1150450 2024-002 Significant Deficiency - N
1150451 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $265,000 - 0
14.157 Supportive Housing for the Elderly $90,639 Yes 3

Contacts

Name Title Type
LYUAQV62SK51 Margaret Salazar Auditee
5032310682 Brian Martin Auditor
No contacts on file

Notes to SEFA

Title: Notes 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Community Housing II, Inc. (the "Company") under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
Title: Notes 2 - Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3 - U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" and the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Community Housing II, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Community Housing II, Inc. has received U.S. Department of Housing and Urban Development direct loans under Section 202 of the National Housing Act. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. Community Housing II, Inc. received no additional loans during the year ended December 31, 2024. The balance of the loans outstanding at December 31, 2024, consists of: Federal Assistance Listing Number Program Name Outstanding Balance 14.157 Section 202 Capital Advance Mortgage Program $ 1 ,533,800 14.239 HOME Investment Partnership Program 265,000 $ 1 ,798,800

Finding Details

Finding 2024-001
Finding No. 2024-001; Federal Assistance Listing Number 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted that three out of three tenants' income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV"). Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context Three out of three tenants tested did not have an EIV performed timely. Identification as a Repeat Finding Yes, 2023-001 Recommendation Management should establish procedures and monitor compliance with those procedures to insure that EIVs are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E - Eligibility for Uniform Guidance Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to complete certifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2024. As new staff are brought onboard training is provided and annual HUD training is completed by all staff. Management will continue to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance.
Finding 2024-002
Finding No. 2024-002; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, within 30 days after the move-out date (or shorter time if required by state and/or local laws), management must either: refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Condition In connection with the procedures applied to a sample of 1 tenant that moved out of the project during the year, we noted 1 instance where management failed to refund the tenant security deposit and/or provide the tenant with an itemized list of charges deducted from the deposit within thirty days after the move-out date. Cause Management's policies with respect to move outs and security deposit refunds were not consistently followed. Effect or Potential Effect Management failed to comply with the HUD occupancy requirement to timely refund the tenant security deposits or to provide the tenant with a list of charges. The Property owes the tenant security deposit back to the tenant. Questioned Costs N/A Context One tenant did not have their security deposit refund returned timely. Identification as a Repeat Finding No Recommendation Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Program. Auditor Noncompliance Code: M - Security Deposits for REAC Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure security deposits are returned in a timely manner. Staffing shortages at the property had an impact on the timely return of security deposits. As new staff are brought onboard training is provided and management will continue to coordinate and provide assistance to on-site staff to ensure that the security deposits are being returned or an itemized list of charges is provided and properties are in compliance.
Finding 2024-003
Finding No. 2024-003; Federal Assistance Listing Number 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended December 31, 2024, the property paid 2 of 25 cash disbursements tested in the amount of $2,204 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of December 31, 2024 is $2,204. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $2,204 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $2,204 Context The entity paid $2,204 of expenses on behalf of a related party entity. Identification as a Repeat Finding No Recommendation Management should immediately reimburse the amount due to the property and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure that costs are allocated to the appropriate property. In 2024, costs from an adjacent property, Community Housing I, were accidentally paid by Community Housing II. These funds were repaid to the Community Housing II in 2025.
Finding 2024-001
Finding No. 2024-001; Federal Assistance Listing Number 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted that three out of three tenants' income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV"). Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context Three out of three tenants tested did not have an EIV performed timely. Identification as a Repeat Finding Yes, 2023-001 Recommendation Management should establish procedures and monitor compliance with those procedures to insure that EIVs are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E - Eligibility for Uniform Guidance Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to complete certifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2024. As new staff are brought onboard training is provided and annual HUD training is completed by all staff. Management will continue to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance.
Finding 2024-002
Finding No. 2024-002; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, within 30 days after the move-out date (or shorter time if required by state and/or local laws), management must either: refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Condition In connection with the procedures applied to a sample of 1 tenant that moved out of the project during the year, we noted 1 instance where management failed to refund the tenant security deposit and/or provide the tenant with an itemized list of charges deducted from the deposit within thirty days after the move-out date. Cause Management's policies with respect to move outs and security deposit refunds were not consistently followed. Effect or Potential Effect Management failed to comply with the HUD occupancy requirement to timely refund the tenant security deposits or to provide the tenant with a list of charges. The Property owes the tenant security deposit back to the tenant. Questioned Costs N/A Context One tenant did not have their security deposit refund returned timely. Identification as a Repeat Finding No Recommendation Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Program. Auditor Noncompliance Code: M - Security Deposits for REAC Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure security deposits are returned in a timely manner. Staffing shortages at the property had an impact on the timely return of security deposits. As new staff are brought onboard training is provided and management will continue to coordinate and provide assistance to on-site staff to ensure that the security deposits are being returned or an itemized list of charges is provided and properties are in compliance.
Finding 2024-003
Finding No. 2024-003; Federal Assistance Listing Number 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended December 31, 2024, the property paid 2 of 25 cash disbursements tested in the amount of $2,204 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of December 31, 2024 is $2,204. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $2,204 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $2,204 Context The entity paid $2,204 of expenses on behalf of a related party entity. Identification as a Repeat Finding No Recommendation Management should immediately reimburse the amount due to the property and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure that costs are allocated to the appropriate property. In 2024, costs from an adjacent property, Community Housing I, were accidentally paid by Community Housing II. These funds were repaid to the Community Housing II in 2025.
Finding 2024-001
Finding No. 2024-001; Federal Assistance Listing Number 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted that three out of three tenants' income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV"). Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context Three out of three tenants tested did not have an EIV performed timely. Identification as a Repeat Finding Yes, 2023-001 Recommendation Management should establish procedures and monitor compliance with those procedures to insure that EIVs are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E - Eligibility for Uniform Guidance Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to complete certifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2024. As new staff are brought onboard training is provided and annual HUD training is completed by all staff. Management will continue to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance.
Finding 2024-002
Finding No. 2024-002; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, within 30 days after the move-out date (or shorter time if required by state and/or local laws), management must either: refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Condition In connection with the procedures applied to a sample of 1 tenant that moved out of the project during the year, we noted 1 instance where management failed to refund the tenant security deposit and/or provide the tenant with an itemized list of charges deducted from the deposit within thirty days after the move-out date. Cause Management's policies with respect to move outs and security deposit refunds were not consistently followed. Effect or Potential Effect Management failed to comply with the HUD occupancy requirement to timely refund the tenant security deposits or to provide the tenant with a list of charges. The Property owes the tenant security deposit back to the tenant. Questioned Costs N/A Context One tenant did not have their security deposit refund returned timely. Identification as a Repeat Finding No Recommendation Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Program. Auditor Noncompliance Code: M - Security Deposits for REAC Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure security deposits are returned in a timely manner. Staffing shortages at the property had an impact on the timely return of security deposits. As new staff are brought onboard training is provided and management will continue to coordinate and provide assistance to on-site staff to ensure that the security deposits are being returned or an itemized list of charges is provided and properties are in compliance.
Finding 2024-003
Finding No. 2024-003; Federal Assistance Listing Number 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended December 31, 2024, the property paid 2 of 25 cash disbursements tested in the amount of $2,204 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of December 31, 2024 is $2,204. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $2,204 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $2,204 Context The entity paid $2,204 of expenses on behalf of a related party entity. Identification as a Repeat Finding No Recommendation Management should immediately reimburse the amount due to the property and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure that costs are allocated to the appropriate property. In 2024, costs from an adjacent property, Community Housing I, were accidentally paid by Community Housing II. These funds were repaid to the Community Housing II in 2025.
Finding 2024-001
Finding No. 2024-001; Federal Assistance Listing Number 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review, we noted that three out of three tenants' income verification was not performed timely with the use of the HUD Enterprise Income Verification ("EIV"). Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Context Three out of three tenants tested did not have an EIV performed timely. Identification as a Repeat Finding Yes, 2023-001 Recommendation Management should establish procedures and monitor compliance with those procedures to insure that EIVs are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E - Eligibility for Uniform Guidance Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to complete certifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2024. As new staff are brought onboard training is provided and annual HUD training is completed by all staff. Management will continue to coordinate and provide assistance to on-site staff to ensure that the properties are in compliance.
Finding 2024-002
Finding No. 2024-002; Federal Assistance Listing Number 14.157 Criteria In accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs, within 30 days after the move-out date (or shorter time if required by state and/or local laws), management must either: refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant's rights under state and local laws. Condition In connection with the procedures applied to a sample of 1 tenant that moved out of the project during the year, we noted 1 instance where management failed to refund the tenant security deposit and/or provide the tenant with an itemized list of charges deducted from the deposit within thirty days after the move-out date. Cause Management's policies with respect to move outs and security deposit refunds were not consistently followed. Effect or Potential Effect Management failed to comply with the HUD occupancy requirement to timely refund the tenant security deposits or to provide the tenant with a list of charges. The Property owes the tenant security deposit back to the tenant. Questioned Costs N/A Context One tenant did not have their security deposit refund returned timely. Identification as a Repeat Finding No Recommendation Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Program. Auditor Noncompliance Code: M - Security Deposits for REAC Finding Resolution Status: Unresolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure security deposits are returned in a timely manner. Staffing shortages at the property had an impact on the timely return of security deposits. As new staff are brought onboard training is provided and management will continue to coordinate and provide assistance to on-site staff to ensure that the security deposits are being returned or an itemized list of charges is provided and properties are in compliance.
Finding 2024-003
Finding No. 2024-003; Federal Assistance Listing Number 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended December 31, 2024, the property paid 2 of 25 cash disbursements tested in the amount of $2,204 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of December 31, 2024 is $2,204. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $2,204 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $2,204 Context The entity paid $2,204 of expenses on behalf of a related party entity. Identification as a Repeat Finding No Recommendation Management should immediately reimburse the amount due to the property and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions REACH has policies in place to ensure that costs are allocated to the appropriate property. In 2024, costs from an adjacent property, Community Housing I, were accidentally paid by Community Housing II. These funds were repaid to the Community Housing II in 2025.