Audit 382485

FY End

2025-06-30

Total Expended

$1.52M

Findings

1

Programs

1

Organization: Three West Housing, Inc. (OR)

Year: 2025 Accepted: 2026-01-16

Auditor: LOVERIDGE HUNT & CO PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1169539	2025-001	Material Weakness	Yes	E

ALN	Program	Spent	Major	Findings
14.181	SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES	$105,914	Yes	1

Contacts

Name	Title	Type
NQ4QSPPYGJE4	Barry Gault	Auditee
5039637797	Hani Morcos	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Three West Housing, Inc. (the Organization) under programs of federal government for the year ended June 30, 2025. 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 operation of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

The Organization has received a loan funded by programs of U.S. Department of Housing and Urban Development. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Such balance has been included as net assets in the financial statements of the Organization as of June 30, 2025 since the likelihood of repayment is remote. The Organization received no additional loans during the year ended June 30, 2025. The balance of the loan outstanding at June 30, 2025 consists of: Program or Cluster Title/Federal ALN/Amount Outstanding: Supportive Housing for Persons with Disabilities (Section 811)/14.181/$1,416,200.

Finding Details

Finding 2025-001

Title and Assistance Listing Number of Federal Program: 14.181 Supportive Housing for Persons with Disabilities (Section 811). Type of Finding: Federal Award Finding Finding Resolution Status: In progress Information on Universe and Population Size: Population is 24 tenant files. Sample Size Information: 4 Identification of Repeat Finding and Finding Reference Number: Not a repeat finding. Criteria: Supportive Housing for Persons with Disabilities (Section 811) requires the Owner and management must include verification documentation in the tenant file and ensure timely annual reexamination. Statement of Condition: During our tests of compliance over the program, we noted one tenant file that did not have appropriate documentation at the time of our review of tenant files and another tenant file that did not have the annual tenant recertification completed timely. Cause: Owner and management had change in staffing that caused delay in annual reexamination and obtaining the appropriate documentation. Effect or Possible Effect and Perspective: HAP could be overpaid if the tenant becomes ineligible or does not have adequate documentation to support its asset or income. Auditor Non-Compliance Code: R - Section 8 program administration Questioned Costs: N/A. Reporting Views of Responsible Officials: Management agrees with the finding and has implemented a corrective action plan. Please identify the property(s) and associated questioned costs this finding applies to: Fanno Creek Apartments FHA/Contract Number: 126-HD007-CMI Context: During our tests of compliance over the program, the documentation to support assets were not timely available and appear to have been obtained subsequent to the auditor's inquiry. Recommendation: We recommend that the Organization to have an internal review of the tenant files. Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management agrees with the auditor. Response Indicator: Agree Completion Date: 09/15/2025 Response: Management agrees with the finding and has implemented a corrective action plan.