Audit 4446

Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects No. 14.155 (Section 207 pursuant to Section 223(f) loan identification number 053-11199, year 2006) Auditor non-compliance code: G – Unauthorized loans from project funds Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $3,098 Statement of condition #2023-001: The Corporation paid for refinancing legal fees totaling $3,098 from operational cash during the year ended June 30, 2023. Criteria: Pursuant to Section 6 of the Section 207 pursuant to 223(f) Regulatory Agreement, the Corporation's operational cash should not be used to pay for expenses outside reasonable operating expenses and necessary repairs of the Property. The payments of corporate/mortgagor entity expenses or obligations must be limited to Board contributions or approval from HUD. Effect: The Corporation is not in compliance with the Section 207 pursuant to 223(f) Regulatory Agreement. Cause: The refinancing legal fees were inadvertently paid from operating cash. Recommendation: Management should seek reimbursement for the reserve for replacements or the Board of Directors. Management's response: Agree. Management is seeking reimbursement for the legal fees paid from operational cash.

Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects No. 14.155 (Section 207 pursuant to Section 223(f) loan identification number 053-11199, year 2006) Auditor non-compliance code: G – Unauthorized loans from project funds Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $3,098 Statement of condition #2023-001: The Corporation paid for refinancing legal fees totaling $3,098 from operational cash during the year ended June 30, 2023. Criteria: Pursuant to Section 6 of the Section 207 pursuant to 223(f) Regulatory Agreement, the Corporation's operational cash should not be used to pay for expenses outside reasonable operating expenses and necessary repairs of the Property. The payments of corporate/mortgagor entity expenses or obligations must be limited to Board contributions or approval from HUD. Effect: The Corporation is not in compliance with the Section 207 pursuant to 223(f) Regulatory Agreement. Cause: The refinancing legal fees were inadvertently paid from operating cash. Recommendation: Management should seek reimbursement for the reserve for replacements or the Board of Directors. Management's response: Agree. Management is seeking reimbursement for the legal fees paid from operational cash.