Corrective Action Plans

Finding 1228499 (2025-006)

Material Weakness 2025

KY

HUD Housing Programs § 200.303

Finding 2025-006 – Tenant Files – Eligibility – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documen...

Finding 2025-006 – Tenant Files – Eligibility – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documentation; • Verify income calculations and deductions; • Confirm citizenship and identity documentation; • Confirm HAP contracts and EIV reports; • Confirm inspections and annual recertifications; • Review lead-based paint disclosures; and document corrective actions. Following the adoption of updated formal policies and procedures – implement long term corrective actions. Long Term: • Establish a formalized, organization-wide QA/QC and Monitoring Framework that includes: o File Reviews o Wait List QC Checklists & Wait List Archive Requirements o IMS/PIC Reporting Controls o Procurement Reviews o Financial Reviews o Internal Audit Checklists o Internal Monitoring Schedule o Corrective Action Tracking • Create a structured monitoring schedule to verify that internal controls continue to operate exactly as designed. • Develop a standardized reporting template to log control exceptions, track communication protocols, and document the successful remediation of identified deficiencies. • Develop standardized onboarding program that incorporates training on core organizational policies, ethical expectations and foundational internal control responsibilities. • Develop Agency-Wide Training Calendar and CE Requirements and Annual Policy Certifications and employ a system to track and archive all. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: February 26, 2027

View Audit 410146

Finding 1228497 (2025-003)

Material Weakness 2025

Housing Authority of Frankfort

KY

HUD Housing Programs

Finding 2025-003 – Public Housing Advance to Creative Housing Limited Partnership – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: • Determine the status and appropriate repayment plan for the questioned public housing advance; • Obtain and r...

Finding 2025-003 – Public Housing Advance to Creative Housing Limited Partnership – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: • Determine the status and appropriate repayment plan for the questioned public housing advance; • Obtain and reconcile mortgage-note statements; • Determine the correct accounting and financial-statement presentation; • Obtain missing prior-year financial and tax records; • review inter-entity transactions; and • Establish written approval requirements for future advances, loans, or transfers. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: November 30, 2026

View Audit 410146

Finding 1228467 (2025-001)

Material Weakness 2025

Kpc Apartments, Phase II

MS

HUD Housing Programs Cash Management Significant Deficiency

CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colon...

CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended November 30, 2025 Audit Finding Reference: 2025-001 Planned Corrective Action Management will submit a request to HUD for authorization of the distribution of the residual receipt funds. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Rick Greene at 601-714-8349. Sincerely, K.P.C. Apartments, Phase II By Inventive Property Management Company

View Audit 410130

Finding 1228387 (2025-003)

Material Weakness 2025

Housing Authority of Floyd County

KY

HUD Housing Programs Special Tests & Provisions § 200.516

The Authority will strengthen its annual payment standard review procedures to ensure payment standards are supported by current FMRs and any required HUD approval or notification is obtained and retained before implementation. HUD approval of 120% payment standards has been obtained for the 2026 pr...

The Authority will strengthen its annual payment standard review procedures to ensure payment standards are supported by current FMRs and any required HUD approval or notification is obtained and retained before implementation. HUD approval of 120% payment standards has been obtained for the 2026 program year. Anticipated completion date: December 31, 2026. Responsible contact person: Ola Stepp, Executive Director.

View Audit 410057

Finding 1228386 (2025-002)

Material Weakness 2025

Housing Authority of Floyd County

KY

HUD Housing Programs Special Tests & Provisions § 200.516

The Authority will strengthen its Housing Choice Voucher file review procedures to ensure executed leases, rent reasonableness determinations, gross income calculations, and utility allowances are properly documented and reviewed. Anticipated completion date: December 31, 2026. Responsible contact p...

The Authority will strengthen its Housing Choice Voucher file review procedures to ensure executed leases, rent reasonableness determinations, gross income calculations, and utility allowances are properly documented and reviewed. Anticipated completion date: December 31, 2026. Responsible contact person: Ola Stepp, Executive Director.

View Audit 410057

Finding 1228333 (2025-003)

Material Weakness 2025

Housing Authority of the City of Williston

ND

HUD Housing Programs

Contact Person Heidi Johnson, Board President Corrective Action Plan The Authority will be more diligent in completing rent reasonableness forms for each tenant, as required. Completion Date Effective immediately.

View Audit 410027

Finding 1228331 (2025-002)

Material Weakness 2025

Housing Authority of the City of Williston

ND

HUD Housing Programs

Contact Person Heidi Johnson, Board President Corrective Action Plan The Authority will be more diligent in completing HQS quality control re-inspections on a sample of tenant units each year, as required. Completion Date Effective immediately.

View Audit 410027

Finding 1228272 (2025-002)

Material Weakness 2025

Senior Residence at Kapolei 2, Inc.

HI

HUD Housing Programs

This issue occurred during Bob Tanaka, Inc.’s period of managing the project. Bob Tanaka, Inc. was replaced by Hawaii Affordable Properties, Inc. on January 1, 2025, and instructions have been given to the new property management company to maintain the tenant waiting list in accordance with 24 CFR ...

This issue occurred during Bob Tanaka, Inc.’s period of managing the project. Bob Tanaka, Inc. was replaced by Hawaii Affordable Properties, Inc. on January 1, 2025, and instructions have been given to the new property management company to maintain the tenant waiting list in accordance with 24 CFR Section 891.410(a). The wait list will be reviewed at quarterly site inspections.

View Audit 410007

Finding 1228271 (2025-001)

Material Weakness 2025

Senior Residence at Kapolei 2, Inc.

HI

HUD Housing Programs

The noncompleted replacement reserve contributions were due to the Project not receiving PRAC subsidies during 2025. This left the Project with not enough revenue to fund normal operations, and a replacement reserve withdraw was allowed by HUD to cover operating cash shortfalls. The issue with recei...

The noncompleted replacement reserve contributions were due to the Project not receiving PRAC subsidies during 2025. This left the Project with not enough revenue to fund normal operations, and a replacement reserve withdraw was allowed by HUD to cover operating cash shortfalls. The issue with receiving the PRAC subsidies was resolved by the property managers in April 2026 and the Project is now paying back the replacement reserve withdraw for the shortfall and catch up with replacement reserve contributions. Continuing monitoring of the Project's financial statements and replacement reserve contributions will be performed on a monthly basis.

View Audit 410007

Finding 1228258 (2025-013)

Material Weakness 2025

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions –Waiting List Recommendation: We recommend the Authority implements controls over the waiting list process to ensure all documentation is maint...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions –Waiting List Recommendation: We recommend the Authority implements controls over the waiting list process to ensure all documentation is maintained at the time of each applicant is selected from the waiting list. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: DCHA will re-establish the nonoperational Eligibility and Continued Occupancy Division (ECOD). ECOD will be responsible for waitlist management for the agency along with screening applicants for eligibility. Having these functions under one distinct division will allow DCHA to have standard operating procedures and workflows that are consistent with HUD’s regulations and requirements regarding waitlist management. Periodic quality assurance reviews by the Quality Assurance team will be conducted to identify deficiencies, provide corrective training, and ensure documentation is readily available to support HUD monitoring and audit requirements. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; and Khaliah Payne. Planned completion date for corrective action plan: June 30, 2027 – End of 3rd Quarter, FY2027.

View Audit 409993

Finding 1228255 (2025-012)

Material Weakness 2025

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions –Annual HQS Inspections Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordan...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions –Annual HQS Inspections Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: The manager of inspections position will be backfilled by a person who is qualified to manage and assist the inspections supervisors with ensuring that all HQS initial, annual, biennial, and special inspections are scheduled, completed, and documented within HUDrequired timeframes. Supervisors will monitor inspection due dates through weekly compliance reports, assign overdue inspections for immediate completion. HCVP’s Quality Assurance division will conduct quality assurance reviews to verify timely processing of inspections. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Inspections Manager (Person TBD); and Khaliah Payne. Planned completion date for corrective action plan: March 31, 2027 – End of 2nd Quarter, FY2027.

View Audit 409993

Finding 1228252 (2025-011)

Material Weakness 2025

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions --HQS Enforcement Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be c...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance for Special Tests and Provisions --HQS Enforcement Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframes. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: The manager of inspections position will be backfilled by a person who is qualified to direct and assist the inspection supervisors ensure that all HQS initial, annual, biennial, and special inspections are scheduled, completed, and documented within HUD-required timeframes. Supervisors will monitor inspection due dates through weekly compliance reports, assign overdue inspections for immediate completion, and conduct quality assurance reviews to verify timely processing. For units that fail HQS, staff will issue the required owner and participant notifications, accurately document all failed deficiencies and correction deadlines, and place the unit under Housing Assistance Payment (HAP) abatement, when required, in accordance with HUD regulations and DCHA policy. Supervisors will verify that abatement actions are timely, properly documented in Yardi and supported by complete case file documentation before the case is closed. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Inspections Manager (Person TBD); and Khaliah Payne. Planned completion date for corrective action plan: March 31, 2027 – End of 2nd Quarter, FY2027.

View Audit 409993

Finding 1228249 (2025-010)

Material Weakness 2025

District of Columbia Housing Authority

MD

HUD Housing Programs

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance -Eligibility Recommendation: We recommend the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879 Material Weakness in Internal Control over Compliance -Eligibility Recommendation: We recommend the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: The Housing Choice Voucher Program will implement corrective measures to ensure all biennial recertifications are completed within HUD-required timeframes. The program will identify and prioritize all overdue recertifications, redistribute caseloads as necessary, conduct targeted outreach to participants to obtain required documentation, ensure third party verification of reported income is obtained and monitor progress through weekly supervisory reviews. Staff will receive refresher training on recertification requirements and processing procedures, and management will implement routine quality control reviews and performance tracking to prevent future delays. These actions are intended to eliminate the current backlog, improve compliance, ensure accurate Housing Assistance Payments and tenant rent calculations, and establish sustainable processes for timely completion of all future biennial recertifications. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Anton Shaw; and Khaliah Payne. Planned completion date for corrective action plan: December 31, 2026 – End of 1st Quarter, FY2027.

View Audit 409993

Finding 1228246 (2025-009)

Material Weakness 2025

District of Columbia Housing Authority

MD

HUD Housing Programs

Moving To Work Demonstration Program – Assistance Listing No. 14.881 Material Weakness in Internal Control over Compliance -Eligibility Recommendation: We recommend the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate,...

Moving To Work Demonstration Program – Assistance Listing No. 14.881 Material Weakness in Internal Control over Compliance -Eligibility Recommendation: We recommend the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken or planned in response to finding: Standardized quality control procedures will be implemented to ensure biennial recertifications are completed within HUD-required timeframes, annual family income is accurately calculated and verified using all required third-party documentation, and form HUD-50058 is completed, reviewed, and transmitted to HUD promptly. Management will establish automated tracking and milestone alerts, conduct supervisory reviews before certification, provide staff training on HUD eligibility/continued occupancy requirements, perform routine quality assurance reviews, and monitor performance through monthly compliance reports to ensure sustained adherence to HUD regulations. Periodic quality assurance reviews will be conducted to identify deficiencies, provide corrective training, and ensure documentation is readily available to support HUD monitoring and audit requirements. Name(s) of the contact person(s) responsible for corrective action: Carolyn Kornegay Punter; Aisha Thompson; Anton Shaw; and Khaliah Payne. Planned completion date for corrective action plan: December 31, 2026 – End of 1st Quarter, FY2027.

View Audit 409993

Finding 1228062 (2025-004)

Material Weakness 2025

Housing Authority of the City of Omaha

NJ

HUD Housing Programs Allowable Costs / Cost Principles Significant Deficiency

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – Annual HQS Inspections Recommendation: We recommend the Authority implement controls to ensure that all units are inspected annually or to update it’s Administrative Plan to inspect units on a biennial basis. We recommend the Autho...

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – Annual HQS Inspections Recommendation: We recommend the Authority implement controls to ensure that all units are inspected annually or to update it’s Administrative Plan to inspect units on a biennial basis. We recommend the Authority hire an outside firm to perform inspections if there is not any internal capacity. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will implement monitoring controls to ensure units are inspected annually in accordance with HUD requirements and the Authority’s administrative policy. Management will evaluate internal inspection capacity and consider the use of an outside firm if additional resources are needed to complete required inspections timely. Name of the contact person responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

View Audit 409902

Finding 1228059 (2025-003)

Material Weakness 2025

Housing Authority of the City of Omaha

NJ

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – PIC Submissions Recommendation: We recommend that the Authority designate an individual to ensure accurate HUD-50058 information is input into the PIC system timely. Explanation of disagreement with audit finding: There is no disag...

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – PIC Submissions Recommendation: We recommend that the Authority designate an individual to ensure accurate HUD-50058 information is input into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will designate an individual responsible for monitoring HUD-50058 submissions and ensuring information is entered into the PIC system accurately and within required timeframes. Management will review the submission process and implement follow-up procedures to reduce the risk of untimely or unsupported PIC submissions. Name of the contact person responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

View Audit 409902

Finding 1228056 (2025-002)

Material Weakness 2025

Housing Authority of the City of Omaha

NJ

HUD Housing Programs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 - Eligibility Recommendation: We recommend the Authority: - Review and revise its eligibility determination procedures to ensure full compliance with HUD regulations; - Maintain a schedule of tenants and housing specialists to ensure...

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 - Eligibility Recommendation: We recommend the Authority: - Review and revise its eligibility determination procedures to ensure full compliance with HUD regulations; - Maintain a schedule of tenants and housing specialists to ensure that recertifications are performed annually - Train staff on proper documentation and verification protocols for items listed in the HUD-50058 form - Update its Administrative Plan to reflect accurate and timely eligibility screening procedures Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will review and revise eligibility determination procedures to ensure compliance with HUD requirements and will provide staff training on required documentation and verification protocols. The Authority will also perform a file review to identify and correct documentation deficiencies and update its Administrative Plan as needed to reflect current eligibility screening procedures. Name of the contact person responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

View Audit 409902

Finding 1228010 (2025-004)

Material Weakness 2025

Arirang Housing,inc.

CA

Cash Management HUD Housing Programs Subrecipient Monitoring

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-004: The Corporation made payments on entity expenses in the amount of $21,398 and did not obtain the required HUD approval. Comments on the Finding and Each Recommendation: The Corporation should request retroactive HUD approval to make the payments or request reimbursement from the Board of Directors. Action(s) taken or planned on the finding: Management has requested approval from HUD. As of the report date, no response has been received.

View Audit 409856

Finding 1228009 (2025-003)

Material Weakness 2025

Arirang Housing,inc.

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-003: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days or 9 months if owner certified following the year ended June 30, 2025. Comments on the Finding and Each Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Action(s) taken or planned on the finding: The audited financial statements have been submitted to HUD. No further action is required.

View Audit 409856

Finding 1228007 (2025-001)

Material Weakness 2025

Arirang Housing,inc.

CA

Procurement, Suspension & Debarment Subrecipient Monitoring HUD Housing Programs

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: During the year ended June 30, 2025, the Corporation did not make the require deposits to the reserve for replacements. Comments on the Finding and Each Recommendation: Management should make a deposit to the reserve for replacements for $2,423 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits Action(s) taken or planned on the finding: Management made a deposit of $2,423 in July 2025 for the delinquent deposits.

View Audit 409856

Finding 1228002 (2025-002)

Material Weakness 2025

Sunrise Residential, Inc.

IL

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking § 200.303

View of Responsible Officials and Corrective Actions: Management agrees with the findings. Management will establish procedures and monitor compliance with those procedures to ensure that monthly replacement reserve deposits are made in accordance with the HAP contract. Contact Persons Responsible:...

View of Responsible Officials and Corrective Actions: Management agrees with the findings. Management will establish procedures and monitor compliance with those procedures to ensure that monthly replacement reserve deposits are made in accordance with the HAP contract. Contact Persons Responsible: Dr. Sharrone Ward, President and Chief Executive Officer Kim Shelton-Mamon, Vice President of Finance Billie Williams, President of Active Real Estate Management Completion Date: Open

View Audit 409854

Finding 1227939 (2025-001)

Material Weakness 2025

St. Luke Hsg Dev Fund Company (st. Luke Apts) 014-11157

NY

HUD Housing Programs

U.S. Department of Housing and Urban Development St. Luke Housing Development Fund Company, Inc. (St. Luke Apartments), FHA Project No. 014-11157 respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: B...

U.S. Department of Housing and Urban Development St. Luke Housing Development Fund Company, Inc. (St. Luke Apartments), FHA Project No. 014-11157 respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP, 432 North Franklin Street #60, Syracuse, New York 13204 Audit period: October 1, 2024 – September 30, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Condition: The required deposit of $19,309 for the year ended September 30, 2024 was made after the 90 day deadline. Recommendation: St. Luke Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: The required deposit was made on January 8, 2025. Completion Date: January 8, 2025 Name of Contact Person Responsible for Corrective Action: John Lutz, Vice President of Finance, (315) 424-1821.

View Audit 409851

Finding 1227930 (2025-002)

Material Weakness 2025

Trinity Community Housing CORP

IL

HUD Housing Programs

On 5/27/2026, a check payable to Midland Loan Service for $3,084.66 was submitted for the unfunded replacement reserve. This finding has been resolved.

View Audit 409848

Finding 1227926 (2025-001)

Material Weakness 2025

Purdy R-II School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN November 18, 2025 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF HEALTH AND HUMAN SERVICES Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective a...

CORRECTIVE ACTION PLAN November 18, 2025 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF HEALTH AND HUMAN SERVICES Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Dr Travis Graham, Superintendent Purdy School District R-II 201 Gabby Gibbons Dr Purdy, MO 65734 (417) 442-3215 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2025-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr Travis Graham, Superintendent Purdy School District R-II

View Audit 409841

Finding 1227908 (2025-001)

Material Weakness 2025

Preservation of Affordable Housing, INC

MA

HUD Housing Programs Program Income

Temple Landing II was funded with PRI with a completion deadline of March 2024. The project applied several times for LIHTC from the Massachusetts EOHLC. With the project unfunded, Management notified CDFI of the delays in the project and the missed completion deadline in April 2025 and again in Mar...

Temple Landing II was funded with PRI with a completion deadline of March 2024. The project applied several times for LIHTC from the Massachusetts EOHLC. With the project unfunded, Management notified CDFI of the delays in the project and the missed completion deadline in April 2025 and again in March 2026. The project has since been awarded 9% LIHTC and is scheduled to close in August 2026. Columbia Crossing was funded with PRI with a completion deadline of April 2025. The project applied several times for LIHTC from the Massachusetts EOHLC. Management notified CDFI of the delays in the project and the missed completion deadline in March 2026. The project was awarded 9% LIHTC and gap financing from MA EOHLC and closed in April 2026. Terri Manor was funded with PRI with a completion deadline of April 2025. The project applied several times for gap financing from the Ohio state HFA. Management notified CDFI of the delays in the project and the missed completion deadline in March 2026. The project won a funding award from HUD’s GRRP program and after delays in program funding is scheduled to close in December 2026. On April 20, 2026, CDFI Fund provided a one-year cure period to March 31, 2027 for all three projects. While it is expected that all three projects will have closings in 2026, construction will not be completed on Temple Landing II and Columbia Crossing until 2027 and Terri Manor until 2028.

View Audit 409837

Corrective Action Plans

Filters