Audit 414822

S3800-010: Finding Reference Number 2026-001 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2025-001, 2024-001, 2023-001, 2022-001, and 2021-001 S3800-020: Criteria In accordance with the regulatory agreement subsection 9(d) Organization’s books and records are maintained in accordance with generally accepted accounting principles (GAAP). S3800-030: Statement of Condition Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are accurate and complete. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context On the general ledger, various accounts such as escrow balances, tenant security deposits and vacancies did not tie to supporting documentation. Certain assets, liabilities, and net assets beginning balance did not roll forward from the previous year ending net assets balance. S3800-080: Recommendation We recommend the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2026 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2026-002 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2025-002 S3800-020: Criteria In accordance with the Committee of Sponsoring Organizations of the Treadway Commission’s “COSO” Internal Control Framework, Principle 2 – Exercise Oversight Responsibility, the Organization is required to have an oversight body that should oversee the entity’s internal control system. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended February 28, 2026 financial statement and federal award program, we noted that the Organization’s Board of Directors did not meet. S3800-032: Cause The Organization does not have / follow a policy regarding board meetings. S3800-033: Effect or Potential Effect Due to the absence of board oversight, accurate and reliable financial reporting, safeguarding of assets, and fraud prevention are not being monitored. S3800-035: Auditor Non-Compliance Code: Z - Other S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Board of Directors did not meet during the fiscal year. S3800-080: Recommendation The Board of Directors should conduct board meetings as frequently as needed to allow them to fulfill their responsibilities and/or obtain counsel if meetings cannot be scheduled/held. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agrees with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2026 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2026-003 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size Unknown S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the Regulatory Agreement subsection 7, owners shall maintain the mortgaged premises, accommodations and the grounds… in good repair and condition. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended February 26, 2026 federal award program, we noted that the Organization did not maintain a complete and accurate work order summary report. There were several work orders not entered into the system and only identified after bringing awareness to the Organization regarding missing work orders in certain timeframes. The period of September through December 2025 and any time after February 17, 2026, work orders were not included in the population. S3800-032: Cause Management failed to enter work orders into the FHA system. S3800-033: Effect or Potential Effect The property may not have been maintained in good repair and condition. S3800-035: Auditor Non-Compliance Code: I – Failure to maintain property/open physical inspections S3800-040: Questioned Costs N/A S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to maintain the premises in reasonable condition for proper audit and subject to examination and inspection. S3800-080: Recommendation The Organization shall maintain the premises in reasonable condition for proper audit and subject to examination and inspection. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2026 S3800-150: Response See Corrective Action Plan

S3800-010: Finding Reference Number 2026-004 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 36 S3800-018: Sample Size Information 6 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the Regulatory Agreement subsection 4b, owners may charge to and receive from any tenant such amounts as from time to time may be mutually agreed upon between the tenant and the Owners for any facilities and / or services which may be furnished by the Owners or others to such tenant upon his request, in addition to the facilities and services included in the approved rental schedule. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended February 26, 2026 federal award program, we noted that the Organization did not provide to us tenant files for two of the six samples selected. Therefore, we were not able to evaluate tenant charges with approved rental schedules. S3800-032: Cause Management failed to provide tenant files for evaluation. S3800-033: Effect or Potential Effect The Organization is not complying with the Regulatory Agreement for mutually agreed upon amounts in an approved rental schedule between tenants and owners. S3800-035: Auditor Non-Compliance Code: S – Internal control deficiencies S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to comply with the Regulatory Agreement. S3800-080: Recommendation The Organization should maintain lease agreements in tenant files and establish processes and procedures to ensure compliance with the provisions in the Regulatory Agreement. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2026 S3800-150: Response See Corrective Action Plan