Corrective Action Plans

Finding 1208784 (2025-001)

Material Weakness 2025

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agent's procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399612

Finding 1208783 (2025-002)

Material Weakness 2025

Metro Apartments, Inc. 092-Hh011-Cmi

MN

HUD Housing Programs

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399609

Finding 1208782 (2025-001)

Material Weakness 2025

Metro Apartments, Inc. 092-Hh011-Cmi

MN

HUD Housing Programs Special Tests & Provisions

Corrective Action: Management agrees with the finding. Management acknowledges that the withdrawal exceeded the amount approved by HUD and is reviewing internal procedures to ensure replacement reserve withdrawals comply with HUD approval requirements. Mangement will coordinate with HUD to resolve t...

Corrective Action: Management agrees with the finding. Management acknowledges that the withdrawal exceeded the amount approved by HUD and is reviewing internal procedures to ensure replacement reserve withdrawals comply with HUD approval requirements. Mangement will coordinate with HUD to resolve the unapproved portion of the withdrawal and take corrective action as necessary. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399609

Finding 1208781 (2025-001)

Material Weakness 2025

Garden Terrace Commons Senior Housing 092-Ee078

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson , Chief Financial and Operating Officer.

View Audit 399608

Finding 1208780 (2025-002)

Material Weakness 2025

Community for Affordable Senior Housing, Inc.

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certifications in acco...

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certifications in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they document and maintain tenant files in accordance with HUD and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399606

Finding 1208779 (2025-001)

Material Weakness 2025

Community for Affordable Senior Housing, Inc.

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson , Chief Financial and Operating Officer.

View Audit 399606

Finding 1208778 (2025-002)

Material Weakness 2025

Bassett Creek Senior Housing 092-Ee037

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certification...

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certifications in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they document and maintain tenant files in accordance with HUD and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399604

Finding 1208777 (2025-001)

Material Weakness 2025

Bassett Creek Senior Housing 092-Ee037

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agent's procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399604

Finding 1208776 (2025-001)

Material Weakness 2025

Arbor Lakes Senior Housing 092-Ee059

MN

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

Corrective Action: Management agress with the finding. Due to the federal government shutdown and the temporary suspension of HUD operations, approval for one replacement reserve withdrawal could not be obtained prior to disbursement. The withdrawal was necessary to maintain essential project operat...

Corrective Action: Management agress with the finding. Due to the federal government shutdown and the temporary suspension of HUD operations, approval for one replacement reserve withdrawal could not be obtained prior to disbursement. The withdrawal was necessary to maintain essential project operations during the lapse in rental assistance payments. Management has since resumed compliance with all HUD approval requirements and will enhance documentation and contingency planning to address similar circumstances in the future. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399603

Finding 1208775 (2025-001)

Material Weakness 2025

Housing and Redevelopment Authority of Brainerd

MN

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Special Provisions: Rent Reasonableness Federal Agency: Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement Section: Special Provisions Type of ...

Special Provisions: Rent Reasonableness Federal Agency: Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement Section: Special Provisions Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Recommendation: The agency should update its rent reasonableness procedures to ensure: • Rental comparison data is current and regularly refreshed; • Comparable non-assisted units are consistently used; and • Staff are trained on proper rent reasonableness documentation and review standards. The agency should also review a sample of recent rent reasonableness determinations to ensure corrective actions are fully implemented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has taken the following steps to correct the finding: • Updated and refreshed rent reasonableness software data to reflect current market rents. • Configured and are using the software to require selection of comparable non assisted units. • Revisee procedures to document software generated rent reasonableness results in tenant files. • Train staff on correct use of the rent reasonableness software and regulatory requirements. • Conduct supervisory reviews of software based determinations for compliance. Name of the contact person responsible for corrective action: Karen Young, Finance Director Planned completion date for correct action plan: The corrective action plan has already been implemented and will be corrected before December 31, 2026.

View Audit 399601

Finding 1208639 (2025-001)

Material Weakness 2025

Nutley Senior Citizens Housing Corporation

NJ

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Recommendation: Management should implement stronger internal controls to ensure surplus cash deposits are made in accordance with the required deadlines. This may include setting up automated reminders, improving oversight, or assigning clear responsibilities to ensure compliance. Views of Responsi...

Recommendation: Management should implement stronger internal controls to ensure surplus cash deposits are made in accordance with the required deadlines. This may include setting up automated reminders, improving oversight, or assigning clear responsibilities to ensure compliance. Views of Responsible Officials and Planned Corrective Actions: Management has reviewed the audit finding and acknowledges the delay in depositing surplus cash. Management has submitted a request to HUD to retain the surplus cash for future capital improvements to the property.

View Audit 399591

Finding 1208578 (2025-001)

Material Weakness 2025

Housing Authority of Newberry

SC

HUD Housing Programs

2025-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Management acknowledges the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Jessica Holcomb, Executive Director Projected Comple...

2025-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Management acknowledges the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Jessica Holcomb, Executive Director Projected Completion Date: December 31, 2026

View Audit 399541

Finding 1208509 (2025-074)

Material Weakness 2025

State of Alaska

AK

HUD Housing Programs

Finding: 2025-074 - In our testing of the Federal Funding Accountability and Transparency Act, the required report was not filed during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (sta...

Finding: 2025-074 - In our testing of the Federal Funding Accountability and Transparency Act, the required report was not filed during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): AHFC agrees with the finding. Corrective Action (corrective action planned): The PHD is in the process of incorporating the reporting requirements and monetary thresholds for the FFATA Subaward Reporting System (FSRS) into our policies and procedures. Completion Date (list anticipated completion date): July 1,2026 Agency Contact (name of person responsible for corrective action): Bryan Butcher

View Audit 399484

Finding 1208508 (2025-073)

Material Weakness 2025

State of Alaska

AK

HUD Housing Programs

Finding: 2025-073 - In our testing of eligibility, there were seven instances where the required documentation for the tenant was not available from the project operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8...

Finding: 2025-073 - In our testing of eligibility, there were seven instances where the required documentation for the tenant was not available from the project operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): AHFC agrees with the finding. Corrective Action (corrective action planned): The PHD is in the process of amending its record retention schedule to include all client eligibility verification documents. Once completed, this will ensure that all client files contain all required eligibility documents as well as the most current reexamination documents. Completion Date (list anticipated completion date): July 1,2026 Agency Contact (name of person responsible for corrective action): Bryan Butcher

View Audit 399484

Finding 1208507 (2025-075)

Material Weakness 2025

State of Alaska

AK

HUD Housing Programs Special Tests & Provisions

Finding: 2025-075 - In our testing of special tests and provisions, annual housing quality inspections did not occur for seven units at one of the properties operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Pr...

Finding: 2025-075 - In our testing of special tests and provisions, annual housing quality inspections did not occur for seven units at one of the properties operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): AHFC agrees with the finding. Corrective Action (corrective action planned): The PHD has completed all annual unit inspections as identified in the finding and will continue to work with our landlords to ensure these inspections are completed as required. Additionally, we have updated our policies to comply with the Code of Federal Regulations and the Housing Assistance Payment (HAP) contract. Completion Date (list anticipated completion date): February 1, 2026 Agency Contact (name of person responsible for corrective action): Bryan Butcher

View Audit 399484

Finding 1208469 (2025-001)

Material Weakness 2025

Winslow Village INC

MA

HUD Housing Programs

Management concurs and will transfer the required deposit.

View Audit 399467

Finding 1208468 (2025-001)

Material Weakness 2025

S.d.s.i. Housing Corporation, Inc.

KS

HUD Housing Programs Cash Management Eligibility

Management will contact HUD and negotiate a payment plan to return the ineligible funds of $135,824 withdrawn from the reserve for replacements.

View Audit 399458

Finding 1208464 (2025-003)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Cash Management

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2024, management did not submit Form HUD-9250, "Fund Authorization" to HUD upon termination of the PRAC. As a result, management did not remit excess residual receipts of $418 as of April 30, 2025, to HUD. b. Actio...

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2024, management did not submit Form HUD-9250, "Fund Authorization" to HUD upon termination of the PRAC. As a result, management did not remit excess residual receipts of $418 as of April 30, 2025, to HUD. b. Action(s) Taken or Planned on the Finding The 2025 Manor renewal was submitted to HUD before the excess income was in the account. A 9250 for $584.59 has been submitted to HUD for approval of returning in excess residual receipts.

View Audit 399440

Finding 1208463 (2025-002)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Internal Control / Segregation of Duties

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, management withdrew $3,169 from the replacement reserve account without HUD approval. b. Action(s) Taken or Planned on the Finding On 03.04.2026, management corrected this issue by depositing $3,169 into the ...

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, management withdrew $3,169 from the replacement reserve account without HUD approval. b. Action(s) Taken or Planned on the Finding On 03.04.2026, management corrected this issue by depositing $3,169 into the replacement reserve account. Furthermore, management has implemented a strengthened internal control process requiring a three-level review and approval of all replacement reserve withdrawals. Specifically, the Vice President of Operations, Regional Manager, and Controller must each review and approve the request prior to any transfer of funds to ensure compliance with HUD approved withdrawals.

View Audit 399440

Finding 1208462 (2025-001)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for two selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 da...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for two selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399440

Finding 1208461 (2025-002)

Material Weakness 2025

Victory Oaks, Inc.

MD

Subrecipient Monitoring HUD Housing Programs Matching / Level of Effort / Earmarking

a.Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the project did not make required monthly deposits to the replacement reserve in the amount of $15,431. Victory Oaks is required to make monthly deposits to the reserve of $2,204.Action(s) Taken or Planned on ...

a.Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the project did not make required monthly deposits to the replacement reserve in the amount of $15,431. Victory Oaks is required to make monthly deposits to the reserve of $2,204.Action(s) Taken or Planned on the Finding b.Action(s) Taken or Planned on the Finding On January 13, 2026, management funded the replacement reserve in full.

View Audit 399437

Finding 1208460 (2025-001)

Material Weakness 2025

Victory Oaks, Inc.

MD

HUD Housing Programs Eligibility

a.Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120...

a.Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399437

Finding 1208458 (2025-001)

Material Weakness 2025

Victory Heights, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 12...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame and that an error was made on a rent calculation. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion. There has also been a change in site staff.

View Audit 399436

Finding 1208456 (2025-001)

Material Weakness 2025

Victory Crest, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation: Management agrees with the finding b. Action(s) Taken or Planned on the Finding Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance depart...

a. Comments on the Finding and Each Recommendation: Management agrees with the finding b. Action(s) Taken or Planned on the Finding Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance department to ensure compliance.

View Audit 399435

Finding 1208454 (2025-001)

Material Weakness 2025

Palmer Park Senior Housing, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Delays in recertification completion have improved; a majority of the certifica...

a. Comments on the Finding and Each Recommendation Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399433

Corrective Action Plans

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