Audit 369605

Information on the Universe Population Size All regulatory reporting. Sample Size Information All regulatory reporting. Criteria The Uniform Guidance requires auditees to submit a completed Standard Form Single Audit Collection (“SF-SAC”) along with other specified reports, to the Federal Audit Clearinghouse (“FAC”) within the earlier of 30 days after receipt of the auditor’s report(s), or nine months after the end of the audit period, unless a longer period is agreed to in advance by the oversight agency for audit. Statement of Condition Due to the SF-SAC, the submission was completed before the due date, but not signed off in the FAC until October 22, 2024. Cause Due to administrative errors. Effect or Potential Effect The failure to complete signoff caused the Entity to submit the SF-SAC late. Auditor Non-Compliance Code Z- Other Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations The filing has been completed and administrative issues have been corrected. Views of Responsible officials See management corrective action plan.

Information on the Universe Population Size All regulatory reporting. Sample Size Information All regulatory reporting. Criteria The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally-insured interest-bearing financial institution bank account. Statement of Condition Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity. Cause The cause of the underfunded account was due to management oversight. Effect or Potential Effect The security deposit fund is underfunded by a total of $1,271. Auditor Non-Compliance Code M- Security Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding No Recommendations Auditor recommends that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences. Auditor notes the bank account has been funded to cure the shortfall prior to audit issuance. No further action required. Views of Responsible Officials Auditee agrees with this finding. The bank account has been funded to cure the shortfall prior to audit issuance.

Information on the Universe Population Size Replacement reserve activity for the year ended December 31, 2024. Sample Size Information N/A Criteria In accordance with the Entity’s regulatory agreement with HUD, only upon approval from HUD can the Entity withdraw funds from the replacement reserve account. Statement of Condition The Entity withdrew $6,720.61 from the replacement reserve without the approval from HUD. Cause Due to shortage of funding and management oversight, the Entity withdrew replacement reserve funds. The transfer occurred prior to receiving HUD approval. Effect or Potential Effect The Entity is in violation of the requirements of its regulatory agreement. Auditor Non-Compliance Code A- Unauthorized withdrawal from replacement reserve account Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding Yes, prior year finding 2023-002 Recommendations Auditor recommends that the Entity works with HUD in the future to insure approval prior to withdrawal. Views of Responsible officials Auditee agrees with this finding and reimbursed the replacement reserve account for this amount prior to audit issuance.

Information on the Universe Population Size Replacement reserve activity for the year ended December 31, 2024. Sample Size Information N/A Criteria The regulator agreement requires monthly payments to find the replacement reserve. Statement of Condition The Replacement Reserve account was underfunded by twelve monthly payments of $1,268, totaling $15,216. Cause The cause of the insufficient required deposits was due to a limited amount of funds caused by delinquent tenant rental subsidy payments by HUD under the PRAC. Effect or Potential Effect The Replacement Reserve account was underfunded by $15,216, which is a violation of the regulatory agreement. Auditor Non-Compliance Code N- Reserve for Replacements Deposits Questioned Costs There were no known questioned costs. Perspective The finding represents the property’s lack of funds to cover the required deposits. Repeat finding Yes, prior year finding 2023-001 Recommendations Auditor recommends that the Entity fund the reserve immediately and fund the account for delinquent replacement reserve deposits as soon as the property has sufficient funds. Views of Responsible officials For the year ended December 31, 2025, management submitted a suspension of replacement reserve deposits to the replacement reserve waiver and will communicate with their HUD representative on options to ensure that the property is properly funded.