Corrective Action Plans

Recommendation: The Organization should follow established controls to ensure timely submission of the Data Collection Form. This should include assignment of responsibility to a designated official and be monitored by management. Corrective Actions: Our accounting department is now fully in-house and all partnerships with the outside accounting firm, Wipfli, have been terminated. This year and moving into the future, we do not anticipate having any issues with completing our audit on time. This audit for 2024 will be completed in a timely manner.

Corrective Action: Management made a deposit for a total of $8,582 to cover the underfunded residual receipts. Management will maintain tracking record every year to ensure that the residual receipts account is appropriately funded. The bookkeeper will maintain the record and ensure that deposits are made as required.

Finding 2024-005: PERIOD OF PERFORMANCE Description of Finding: Capital Funds identified in the PHA's CFP 5-Year Action Plan to be transferred to operations are obligated by the PHA once the funds have been budgeted and drawn down by the PHA. Capital Funds transferred to operations (BLI 1406) are not considered obligated until the PHA has budgeted and drawn down the funds. To meet this requirement, the funds must be budgeted in line BLI 1406 (Operations) and the PHA must submit the voucher request in LOCCS. (24 CFR Section 905.314(I)). Statement of Concurrence or NonConcurrence: The Authority had obligated capital funds related to operations (BLI 1406) for Capital Fund years 2020 and 2022 prior to the voucher request date for these draws. The Authority had six open capital fund grants during fiscal year 2024 (Capital Fund years 2019-2024). The Authority obligated the BLI 1406 funding for Capital Fund 2020 in March 2024 and Capital Fund 2022 in May 2024. The Authority submitted the voucher requests in February 2025. Corrective Action: Funds in 1406 will be drawn down directly after obligation. Name of Contact Person: Cheryl Thibeault Projected Completion Date: 09/30/2025

Finding 2024-003: Cash Management Description of Finding: For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. (2 CFR 200.305 (b)) Once funds are disbursed, i.e. transferred from LOCCS to the PHA’s bank account, the PHA must pay the applicable bill(s) within 3 business days after the deposit of the funds into the PHA’s bank account. (HUD Capital Fund Guidebook; Section 7.9) Statement of Concurrence or NonConcurrence: A sample of 4 drawdowns of capital funds from ELOCCs during the year identified 1 instance in which the Authority did not process payment to the vendor within 3 business days of receiving the funds. Corrective Action: The Authority processes a weekly check run for all payables. The timing of the receipts from ELOCCs missed the run and the invoice was added to the following weekly run. The authority will better monitor the receipt of funds and if necessary perform an additional check run to disburse the funds to the recipient. Name of Contact Person: Cheryl Thibeault Projected Completion Date: 09/30/2025

Finding 2024-002: HOUSING ASSISTANCE PAYMENT Description of Finding: During the term of each assisted lease, and for at least three years thereafter, the PHA must keep: (1) A copy of the executed lease; (2) The HAP contract; and (3) The application from the family. (24 CFR 982.158 (e) The PHA may not pay any housing assistance payment to the owner until the HAP contract has been executed. (24 CFR 982.305 (c)(2)) Statement of Concurrence or NonConcurrence: A sample of 25 participants in the Housing Choice Voucher Program. There were 5 identified instances in which the HAP contract was not properly executed by either the landlord or the PHA. Corrective Action: It was found that the 5 identified instances were completed by staff no longer with the authority. The five have been corrected. Staff have now been trained to perform and review of the contract during any annual or interim certification. All new moves and changes to contracts are given to the manager to ensure utility responsibilities are correctly reflected in the lease, contract, and in the software and that families are correctly credited. The HCV Director will due random review of files to ensure compliance. Name of Contact Person: Maribel Aguliar Projected Completion Date: 09/30/2025

Finding 2024-001: SPECIAL TESTS AND PROVISIONS – HQS ENFORCEMENT Description of Finding: A sample of 40 failed HQS inspections during the year. In 31 out of the 40 failed HQS inspections, the PHA re-inspection did not occur within 30 days. In 2 of the 40, we were not provided with documentation showing the unit passed HQS. Statement of Concurrence or NonConcurrence: The Authority may have made housing assistance payments to landlords for units that failed to meet housing quality standards or failed to properly abate HAP in cases where HQS deficiencies were not corrected in a timely manner. Corrective Action: An internal inspector was hired in November 2024 which will allow for better follow through and communication as opposed to a contracted inspector. The internal inspector will have full access to the inspection module in Pha Web with timely data entry will ensure that abatements are placed on non-compliant properties. The HCV Director will monitor inspections completed for proper disposition and also run reports on units due in the upcoming month to make sure they are executed and updated in Pha Web. Procedures will be strengthened to ensure that documentation is maintained for all inspections and enforcements. Name of Contact Person: Maribel Aguliar Projected Completion Date: 09/30/2025

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2024 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2024-001 – Reporting: Federal Funding Accountability and Transparency Act (“FFATA”) Description of Finding: The FFATA subawards were not submitted timely to the Federal Funding Accountability and Transparency Act Subaward Reporting System (“FSRS”). The review and approval occurred after the FFATA subaward was submitted to the FSRS. Statement of Concurrence: We concur with the finding above. Corrective Action: BCHN has created a policy regarding the FFATA reporting process. In this process the Electronic Handbook (EHB) is reviewed weekly to ensure that if new awarded funding is released, BCHN is alerted to the need to complete the FFATA report. BCHN has created a spreadsheet to track all the awarded funding and due dates for FFATA reports. Every month, at the board meeting, the spreadsheet is presented to the board with any new awarded funding and when the FFATA report is completed. BCHN has begun a process where the FFATA report is put together by the Finance Manager and reviewed and signed off by the CFO before submitting the report. Completion Date: October 2024. Name of Contact Person: Alicia Tenny Chief Financial Officer Tel. No.: (917) 364-1156 E-mail: atenny@bchnhealth.org If HRSA has questions regarding this Corrective Action Plan, please call Alicia Tenny at (917) 364-1156. Sincerely yours, _________________________ Alicia Tenny Chief Financial Officer

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2024 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2024-004 – Period of Performance Description of Finding: There was no evidence, such as a signature, evidencing review and approval by a direct supervisor of the timesheets. Time and effort reports were not done. Statement of Concurrence: We concur with the finding above. Corrective Action: BCHN has put together a training program for employees to ensure that timecards are reviewed and approved by both the employee and the supervisor on a bi-weekly basis. Before payroll is processed, approvals by employees and supervisors will be checked. HR will provide a monthly time and effort report to the finance team. This report will provide total number of hours worked by each employee for each assigned cost center. Completion Date: October 2024. Name of Contact Person: Alicia Tenny Chief Financial Officer Tel. No.: (917) 364-1156 E-mail: atenny@bchnhealth.org If HRSA has questions regarding this Corrective Action Plan, please call Alicia Tenny at (917) 364-1156. Sincerely yours, _________________________ Alicia Tenny Chief Financial Officer

Corrective Action Taken:Although the Business Office has created a Federal Grants Compliance Manual, we are unable to follow the manual with fidelity due to the lack of adequate staffing. The District will continue to request additional staff during the next budget cycle.

Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Finding ref number: 2024-004 Finding Caption: Housing Voucher Cluster Eligibility Controls and Compliance Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024. Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA staff were not ensuring that the Utility Allowance schedules were being completed correctly and matching up to the 50058, which made the HAP incorrect. Of the forty (40) tenant files sampled by the auditors, seven (7) files did not have utility allowances calculated; two (2) files had 50058’s that did not agree with the HAP payments being paid to the landlords and four (4) files could not be located for testing. RHA had sent all of its paper files to a scanning company to have everything scanned and saved back onto our server for safekeeping. RHA has gone paperless and will not keep paper tenant files again. Some of the files that the auditors requested were either not scanned yet or we could not find. Staff continue to be trained and educated on the importance of ensuring all documents on in the digital tenant file with backup documentation for income / asset verification as well as ensure that the 50058 UA matches the 52667 form and scanned into their digital file of the voucher holder. These issues should begin to decrease as we cycle through and get all paperwork caught up. 2024 Annual Reexams were behind due to staffing issues in 2023 and into 2024.

Finding ref number: 2024-003 Finding Caption: Housing Voucher Cluster HUD Required Reporting Name, address, and telephone of Authority contact person: Michael Bishop 2900 NE 10th St. Renton, WA 98056 425-226-1850 x 317 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Prior RHA Administration failed to complete the Single Audit and submitted it to the FASSPHA and SF-SAC websites. The deadline for RHA to submit its Single Audit is September 30th of each year. The last completed Single Audit prior to the new CEO coming on board was done in 2019. The State of Washington had been working on Anticipated date to complete the corrective action: Anticipate FY2024 to be submitted by September 30, 2025, and the CEO will ensure RHA’s Fee Accountant submits the PHA’s Unaudited FDS to FASSPHA by the deadline of March of each year and ensure the Single Audit is completed and submitted on time, per the required HUD deadline of September 30th of each year.

CORRECTIVE ACTION PLAN August28, 2025 Cognizant oversight agency: U.S. Department of Housing and Urban Development The Housing Authority of the City of Decatur, Georgia respectfully submits the following corrective action plan for the year ended December 31 , 2024. Audit Firm: CohnReznick LLP 3560 Lenox Road, Suite 2900 Atlanta, Georgia 30326 Audit period: for the year ended December 31, 2024 The finding from the December 31 , 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING-FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2024-001 Housing Voucher Cluster -AL Nos. 14.871 , 14.879 Recommendation: the Authority reviews its internal controls to reduce the risk of unauthorized access to and/or misuse of PII contained within the EIV reports in the future to ensure compliance with eligibility requirements. Action Taken: As part of the Authority's standard internal controls, all HCV employees with access to EIV are required to sign the Rules of Behavior and complete HUD's annual cybersecurity training. In addition, the Authority maintains physical security measures and general IT controls onsite to reduce risks associated with unauthorized access. Since the incident occurred, the Authority has implemented several additional measures to strengthen data protection practices. Specifically: •Issued a new Information Protection Policy and Confidentiality Agreement, which all employees are required to review and sign. ·Conducted an all-staff training session to review the new policy in detail and reinforce best practices for safeguarding participant information. •The Chief Executive Officer reiterated the Authority's commitment to data security and emphasized that any violation of information protection policies will result in disciplinary action, up to and including termination of employment, as well as potential legal prosecution. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Larry H. Padilla, CEO at 404-270-2101. Larry H. Padilla CEO/Executive Director

Oversight Agency for Audit, Rayne Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 33067 Audit period: January 1, 2024 through December 31, 2024 The finding from the December 31, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: Management should implement procedures to ensure the replacement reserve is properly funded on a monthly basis. Action Taken: Staff training has been provided to ensure the correct RR amounts are deposited and a timely increase from HUD is received. This has been included in the monthly reporting procedures. If the Oversight Agency for Audit has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO

Finding 2024-006 Comments on the Finding and Each Recommendation We agree two tenants were not reimbursed their security deposits timely. This is due in part to staffing issues onsite as well as not having an address to forward the security deposits to upon the former tenant’s demise. Action(s) Taken or Planned on the Finding Management will review the processes and procedures with site personnel to strengthen controls over the refund of tenant security deposits. If we are late due to missing appropriate forwarding addresses, we will add documentation in the tenant files of those efforts to support our compliance with HUD procedures.

Finding 2024-005 Comments on the Finding and Each Recommendation We agree tenant files were missing some required information. This is due in part to staffing issues onsite as well as HUD EIV site access issues that our HUD Account Executive has been made aware of and is working with us on resolving. Action(s) Taken or Planned on the Finding Management will review the processes and procedures with site personnel to strengthen controls over the maintenance of tenant lease files. We have communicated to and with our HUD Account Executive regarding the issues, and we have been told they will work to help us resolve these issues on their end.

Finding 2024-004 Comments on the Finding and Each Recommendation The auditee agrees that retained replacement reserve withdrawal forms did not include HUD signature, though HUD did approve the withdrawals. Action(s) Taken or Planned on the Finding Management will reach out to HUD to obtain evidence of approval of the specific withdrawal in question. Management will implement procedures to request from HUD and retain a copy of each signed 9250 going forward.

Project Legal Name: Evangeline Booth Residence, Inc., A Florida Corporation HUD Project No.: 063-EE011-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2023 – 9/30/2024 Corrective Action Plan prepared by: Name: Lee Auvenshine Position: Territorial Legal Director-General Counsel (THQ legal) Telephone Number: 404-728-6700 Finding 2024-003 Comments on the Finding and Each Recommendation The auditee agrees that replacement reserve deposits were not made. This was a result of significant delays in PRAC funding that severely affected cash flows. Action(s) Taken or Planned on the Finding Once the PRAC issues were corrected our cash flows have improved to allow us to make past due deposits. We will also reach out to our HUD account executive to discuss possible waiving of past due deposits.

2024-002 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged 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: Samuel Crawford, Chief Executive Officer Projected Completion Date: Ongoing work in progress. No completion date can currently be determined.

Auditee’s Response and Planned Corrective Action The Adams Housing Authority has received approval for HUD to switch banks for the HCV program. The Authority will obtain a signed depository agreement from the new bank Planned Implementation Date of Corrective Action: September 1, 2025 Person Responsible for Corrective Action: William Schrade, Executive Director

Auditee’s Response and Planned Corrective Action The Adams Housing Authority will ensure timely submission of the unaudited FDS going forward. Planned Implementation Date of Corrective Action: June 1, 2025 Person Responsible for Corrective Action: William Schrade, Executive Director

Auditee’s Response and Planned Corrective Action The Adams Housing Authority has purchased software from a 3rd party that will allow staff to get a rent reasonableness on all initial and rent increases from landlords. Staff will be trained on what information is needed to ensure that a correct analysis is given. Planned Implementation Date of Corrective Action: June 1, 2025 Person Responsible for Corrective Action: William Schrade, Executive Director

Auditee’s Response and Planned Corrective Action The Adams Housing Authority will be providing training from a 3rd party for all employees on proper documentation and checklists needed for all voucher files. Planned Implementation Date of Corrective Action: September 8, 2025 Person Responsible for Corrective Action: William Schrade, Executive Director

View of Responsible Official The Housing Trust acknowledges the finding. Prior staffing and system limitations created gaps in tracking recycled funds and aligning general ledger data to SEFA. Since then: - A dedicated Finance Manager now oversees all financial activities. - A grant-specific chart of accounts structure has been created in QBO. - Each grant now has a dedicated class and project for transaction tracking. - Recycled funds are being tracked separately from new funds in both QBO and the reimbursement log. - SEFA schedules will be reconciled monthly and reviewed with each billing cycle. Corrective Action Plan Timeline - Finalize and adopt new Grant Management Policies: by September 2025 - Implement monthly SEFA reconciliations: by September 2025 - Complete staff training on program income and federal grant tracking: by September 2025 Designated Employee Responsible for Corrective Action - Finance Manager - Assets Specialist Assistant - Accounting Technician

We acknowledge the finding regarding the inadequate funding of the Reserve for Replacement account. The deficiency occurred due to lapses in internal controls over the timing and processing of required deposits, as managed by the independent accounting firm responsible for maintaining our books and preparing monthly financial statements. In accordance with HUD Handbook 350.1, Chapter 4, Paragraph 4-13, which requires owners to make monthly deposits into the Reserve for Replacement account as specified in the Regulatory Agreement, the Ownership Entity has taken the following corrective actions: 1. – The accounting firm has been formally instructed, in writing, to include verification of the monthly reserve deposit as a standing item in their month-end close process and to provide evidence of the completed transfer with each monthly financial package. 2. Management Oversight – Ownership will review and sign off on the monthly reserve funding documentation before approving the financial statements for submission to the Board of Commissioners. 3. Quarterly Compliance Review – In addition to monthly monitoring, management will conduct a quarterly compliance review to ensure full adherence to HUD Handbook4350.1 requirements and the property's Regulatory Agreement.

The property manager attended a couple of multifamily housing specialist training courses and received certification. The required update to the gross rents, annually based on the OCAF, will be corrected in tenants' files moving forward. The Housing Authority has put a quality control system in place to ensure the tenants' files are in compliance. We expect to be in compliance moving forward.