FAC Explorer

Audit 413765

FY End
2025-12-31
Total Expended
$3.09M
Findings
1
Programs
1
Organization: New Community Urban Renewal Corporation (NJ)
Year: 2025 Accepted: 2026-09-30
Auditor: WITHUMSMITH+BROWN PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1238817 2025-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.129 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $3.09M Yes 1

Contacts

Name Title Type
XQGLGKXJL8X8 Elizabeth Mbakaya Auditee
9736232800 Michael Pintabone Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of New Community Urban Renewal Corporation under programs of the federal government for the year ended December 31, 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 New Community Urban Renewal Corporation, it is not intended to and does not present the financial position, changes in net position, or cash flows of New Community Urban Renewal Corporation.
The New Community Urban Renewal Corporation is financed by a mortgage loan guaranteed by the U.S. Department of Housing and Urban Development with balances and transactions relating to this program included within the New Community Urban Renewal Corporation base financial statements. The loan outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule with the remaining balance in the amount of $2,569,110 as of December 31, 2025.
The New Community Urban Renewal Corporation provided no federal awards to subrecipients for the year ended December 31, 2025.

Finding Details

Finding 2025-001
Criteria In accordance with the HUD regulatory agreement, New Community Urban Renewal Corporation may not, without prior written approval, assign, transfer, dispose of, or encumber any personal property of the project, including rent, and shall not disburse or pay out any funds except for usual operating expenses and necessary repairs. Condition New Community Urban Renewal Corporation has unauthorized loans of $1,410,918 to New Community Healthcare, Inc. as of December 31, 2025. Cause The amount due from New Community Healthcare, Inc. predominately dates back prior to 2003 and is believed to be the result of unpaid rents and potentially loans from the New Community Urban Renewal Corporation’s reserve for repairs and replacement. Effect New Community Urban Renewal Corporation is in violation of the HUD regulatory agreement. Identification as Repeat Finding Yes, refer to finding No. 2024-001 Recommendation We recommend New Community Urban Renewal Corporation continues to regularly monitor its strict compliance with each aspect of the plan of compliance. Management’s Response New Community Urban Renewal Corporation and HUD have agreed to a plan of compliance requiring, among other things, restitution payments of not less than $150,000 per year through 2025. The required restitution payment for 2025 was made. New Community Urban Renewal Corporation has been in communication with HUD regarding the new repayment proposal. Until such time as the parties agree to new terms, New Community Urban Renewal Corporation’s intention is to continue making payments of not less than $150,000.