Finding No. 2025-001 – Program Income Name of Federal Agency: U.S. Department of the Treasury, Community Development Financial Institutions Fund Federal Program Name and Assistance Listing Number: Capital Magnet Fund, No. 21.011 Federal Award Identification Number and Year: 181CM050459, 2018 Criteria In accordance with 3.4(d) of the FY2018 Capital Magnet Fund Assistance Agreement, with respect to project(s) financed/supported by Program Income Reinvestment, the entity must achieve Project Completion within 36 months of commitment deadline or by the Investment Period End Date, whichever is later. Condition The entity did not achieve project completion for three projects financed by Program Income Reinvestment. Cause Receipt of leveraged funding and tax credits were delayed by regulatory agencies. Effect or Potential Effect The entity is not in compliance with the fiscal year 2018 Capital Magnet Fund Assistance Agreement. Questioned Costs: Not applicable. Context Temple Landing II, Columbia Crossing, and Terri Manor, three of five projects tested, did not achieve project completion. CDFI Fund provided a one-year cure period to March 31, 2027. Repeat Finding: No Recommendation Management should complete construction on the projects and submit required documentation to the Community Development Financial Institutions Fund within the cure period. Views of Responsible Officials Temple Landing II was funded with PRI with a completion deadline of March 2024. The project applied several times for LIHTC from the Massachusetts EOHLC. With the project unfunded, Management notified CDFI of the delays in the project and the missed completion deadline in April 2025 and again in March 2026. The project has since been awarded 9% LIHTC and is scheduled to close in August 2026. Columbia Crossing was funded with PRI with a completion deadline of April 2025. The project applied several times for LIHTC from the Massachusetts EOHLC. Management notified CDFI of the delays in the project and the missed completion deadline in March 2026. The project was awarded 9% LIHTC and gap financing from MA EOHLC and closed in April 2026. Terri Manor was funded with PRI with a completion deadline of April 2025. The project applied several times for gap financing from the Ohio state HFA. Management notified CDFI of the delays in the project and the missed completion deadline in March 2026. The project won a funding award from HUD’s GRRP program and after delays in program funding is scheduled to close in December 2026. On April 20, 2026, CDFI Fund provided a one-year cure period to March 31, 2027 for all three projects. While it is expected that each project will have closings in 2026, construction will not be completed on Temple Landing II and Columbia Crossing until 2027 and Terri Manor until 2028.