The amount of $1,414,800 reported for Assistance Listing Number 14.157 in expenditures relate to U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly - Section 202 Capital Advance Program. The ending balance of the capital advance is $1,414,800 at December 31, 2025.
Condition - The surplus cash for the year ended December 31, 2024 in the amount of $21,250 was not deposited into the residual receipts account during the year ended December 31, 2025. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14,157 - Supportive Housing for the Elderly. Effect - The Company is not in compliance with the above HUD regulation. Cause - Surplus cash was not deposited into the residual receipts account. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat of finding 2024-002 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $21,250 be deposited in to the residual receipts account as soon as possible. Management’s Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: Management has deposited the underfunded amount of $21,250 into the residual account on February 19, 2026.