Audit 387769

FY End

2025-06-30

Total Expended

$9.63M

Findings

2

Programs

1

Organization: The Harry and Heanette Weinberg Village Iii, Inc. (MD)

Year: 2025 Accepted: 2026-02-18

Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1174126	2025-001	Material Weakness	Yes	E
1174127	2025-001	Material Weakness	Yes	E

ALN	Program	Spent	Major	Findings
14.157	SUPPORTIVE HOUSING FOR THE ELDERLY	$382,674	Yes	1

Contacts

Name	Title	Type
JRMMAJQLFM55	Tiffany Nicolette	Auditee
4105915585	Shari Grabush	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of The Harry and Jeanette Weinberg Village III, Inc. , HUD Project No.052- EE054, under programs of the 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 operations of The Harry and Jeanette Weinberg Village III, Inc. , it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Harry and Jeanette Weinberg Village III, Inc. For the year ended June 30, 2025, no awards were passed through to subrecipients.

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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

The Harry and Jeanette Weinberg Village III, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

The Organization entered into a capital advance agreement with HUD to assist in financing the Organization under Section 202 of the National Housing Act in the amount of $9,249,000. The capital advance is secured by a mortgage on the property and was recorded as grant revenue in prior years. The entire amount of the capital advance is included in federal expenditures presented in the Schedule. The Organization received no additional advances during the year. The capital advance does not bear interest and is not required to be repaid as long as the housing remains available to eligible low-income elderly persons for at least 40 years. Failure to keep the housing available for low-income elderly persons or other instances of default under the terms of the mortgage, capital advance agreement or regulatory agreement could cause the entire amount of the capital advance to be immediately payable, including interest from the date of the first advance. The capital advance restrictions expire in 2047. The capital advance is secured by a first deed of trust on the Project. The restrictions on this grant are being released as a net asset without donor restrictions on a straight-line basis over its term. See below for a reconciliation between the original capital advance and the amount shown as net assets with donor restrictions as of June 30, 2025 on the statement of financial position:

Finding Details

Finding 2025-001

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 the following deficiencies: - 2 out of 2 new tenants tested did not follow EIV guidelines; - 6 out of 14 existing tenants tested did not follow EIV guidelines; - 1 out of 14 existing tenants had issues where the files were not maintained in accordance with guidelines. Cause Management's policies with respect to 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 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. Identification as a Repeat Finding This is a repeat finding. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant security deposits are correctly recorded, 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. Finding Resolution Status: Resolved Views of Responsible Officials FG Companies has a procedure in place that requires all tenant files to be reviewed by the compliance team that is in line with the community’s tenant selection plan that outlines the tenant eligibility requirements. All annual certifications are submitted and reviewed by compliance in accordance with the requirements of the HUD Handbook4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. FG Companies has also implemented a bi-weekly file audit system that will continue to be completed by the Regional Manager. This system is to ensure all files are current with certifications and all required state and local forms are completed and filed accordingly.