Corrective Action Plans

Finding 1223617 (2026-001)

Material Weakness 2026

MI

HUD Housing Programs Special Tests & Provisions Cash Management

Management agrees with the finding and will put processes and controls in place to verify timely deposits in the future. The required deposit of $4,477 was made in July 2025 to the residual receipts account. The corrective response has already been put into place for this fiscal year.

View Audit 407118

Finding 1223596 (2026-001)

Material Weakness 2026

Oldtimers Housing Development Corporation of Chino 122-Eh-122-Wah-L8

CA

HUD Housing Programs

Management has agreed to review program requirements for fidelity bond coverage and obtain appropriate coverage

View Audit 407044

Finding 1223552 (2026-001)

Material Weakness 2026

Magnolia Heights Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406934

Finding 1223551 (2026-001)

Material Weakness 2026

Poplar Place Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406933

Finding 1223550 (2026-001)

Material Weakness 2026

Cedar Hill Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406932

Finding 1223000 (2026-001)

Material Weakness 2026

Lincoln School Senior Apartments

WA

HUD Housing Programs Internal Control / Segregation of Duties § 200.303

S3800-045 ACTIONS TAKEN OR TO BE TAKEN: Management will endeavor to check files at the site level to ensure that the approval of each certification is retained on file. Management will work with the site managers and the compliance reviewing company to ensure accuracy of certifications, verification...

S3800-045 ACTIONS TAKEN OR TO BE TAKEN: Management will endeavor to check files at the site level to ensure that the approval of each certification is retained on file. Management will work with the site managers and the compliance reviewing company to ensure accuracy of certifications, verifications and rent calculations. The deficiencies found in the files audited will be corrected by Compliance and the site manager and reviewed by the Affordable Housing Director for completion and accuracy.

View Audit 406528

Finding 1222971 (2026-001)

Material Weakness 2026

Nba Hsg of St Louis/columbia/boone Dba Gateway/woodhaven Hsg

MO

HUD Housing Programs

MANAGEMENT AGREES WITH THE FINDING. THE FUNDS WERE DEPOSITED BACK INTO THE RESTRICTED ACCOUNT.

View Audit 406485

Finding 1222655 (2026-001)

Material Weakness 2026

Hickory Estates 084-Ee062-Wahnp

MO

HUD Housing Programs Cash Management

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. ...

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. Person(s) Responsible: Aaron Franklin Timing for Implementation: Immediate

View Audit 406221

Finding 1221712 (2026-002)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs Significant Deficiency

Finding 2026-002 CAPBM acknowledges the finding regarding inaccuracies identified in several tenant annual recertifications that required corrected HUD-50059-A forms to accurately reflect the Total Tenant Payment (TTP) and HUD subsidy amounts. The errors were the result of calculation and data entry...

Finding 2026-002 CAPBM acknowledges the finding regarding inaccuracies identified in several tenant annual recertifications that required corrected HUD-50059-A forms to accurately reflect the Total Tenant Payment (TTP) and HUD subsidy amounts. The errors were the result of calculation and data entry mistakes during the annual recertification process with past management. Current management is currently reviewing the affected tenant files and will complete any necessary corrections to ensure tenant rent and subsidy calculations are accurate and compliant with HUD requirements. To prevent similar errors in the future, CAPBM has implemented an additional review procedure for all annual recertifications. Once the Compliance Manager completes the annual recertification and prepares the HUD-50059, the Director of Affordable Housing will conduct a secondary review of the certification, including income calculations, asset determinations, applicable deductions, Total Tenant Payment (TTP), and subsidy calculations, prior to final approval and submission. Additionally, staff will continue to receive training on HUD occupancy requirements and annual recertification procedures to ensure compliance with HUD regulations. Management believes these corrective actions will strengthen internal controls and reduce the likelihood of future calculation errors. CAPBM is committed to maintaining accurate tenant certifications and ensuring ongoing compliance with HUD requirements. Completion Date: 12/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221710 (2026-004)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs Significant Deficiency

Finding 2026-004 Plan: Please see below the new process regarding hiring additional staff and turnover at Community Action Partnership Belknap-Merrimack Counties Inc. Due to lack of management, it is understood the importance of having staff training on a regular basis to ensure management and compl...

Finding 2026-004 Plan: Please see below the new process regarding hiring additional staff and turnover at Community Action Partnership Belknap-Merrimack Counties Inc. Due to lack of management, it is understood the importance of having staff training on a regular basis to ensure management and compliance duties can be performed adequately. Community Action Program Belknap-Merrimack Counties Inc. plans to improve the standards of employee training and will be hosting quarterly trainings on employee responsibilities, performance, and areas for improvement. This includes HUD trainings and keeping up to date on any new HUD policies and procedures. We understand the importance of a well-trained staff. We are committed to our performance and adhering to HUD standards while implementing policies to follow for continuous improvement. Please see below the new process regarding filling vacancies and completing management duties in a timely manner: 1. Immediate Focus on Vacancies: We are prioritizing the filling of vacant units by having two staff members complete move ins at the same time. 2. Streamlined Recertification Process: We have updated our process to ensure all tenants are recertified in a timely manner. There has been a new system in place to monitor deadlines and improve efficiency. 3. Staffing and Training: We are actively recruiting and training additional staff to ensure these tasks are handled promptly, preventing future delays. These steps will address the backlog of management duties and ensure that all tasks, such as filling vacancies, submitting budgets, and completing tenant recertifications, are handled in a timely and efficient manner. Completion Date: 11/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221708 (2026-003)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs

Finding 2026-003 Action Plan: Management has submitted all corrections to HUD, but the MOR report has not been closed out or finalized as of yearend. See 2026-003. Completion Date: 9/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1220319 (2026-001)

Material Weakness 2026

Asi Freeport, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verificati...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verification and place it in the tenant file. Action Taken: The Project agrees with the finding. They obtained a copy of the tenant's disability verification during June, 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

View Audit 405403

Finding 1218355 (2026-001)

Material Weakness 2026

Asi-Alexandria, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at March 31, 2026. Recommendation: The Project should deposit $30 into the replacement reserve account. Action Taken: ...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at March 31, 2026. Recommendation: The Project should deposit $30 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $30 into the replacement reserve account in April 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Jeanne Overocker at 651-645-7271.

View Audit 404632

Finding 1218249 (2026-001)

Material Weakness 2026

Shawme Heights II ,inc

MA

Cash Management HUD Housing Programs Subrecipient Monitoring

Remaining balance was deposited on April 16, 2026. In the future management will ensure deposits are made timely or obtain HUD appproval permitting delay if there were cash flows issues.

View Audit 404495

Finding 1214435 (2026-001)

Material Weakness 2026

Malone Community Center Housing Corporation Dba Malone Manor 10311083

IN

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Statement of Condition 2026-001 (Assistance Listing 14.155): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended January 31, 2026. Recommendation: Management should notify the lender of the new reserve for replacement deposit amount and make an ad...

Statement of Condition 2026-001 (Assistance Listing 14.155): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended January 31, 2026. Recommendation: Management should notify the lender of the new reserve for replacement deposit amount and make an additional $565 deposit to the reserve for replacements fund on the next billing. Management Response: Agree. Management has notified the lender of the new required deposit and will make an additional $565 deposit to the reserve for replacements fund on the next billing.

View Audit 401127

Finding 1241761 (2025-003)

Material Weakness 2025

Mha Housing of the Piedmont, Inc.

NC

HUD Housing Programs

In response to the finding regarding failure to make a full and timely surplus cash deposit, management contends that we understand the audits need to be completed timely to know the correct surplus cash amount to be deposited in a timely manner. Until we can get to that point, we will make provisio...

In response to the finding regarding failure to make a full and timely surplus cash deposit, management contends that we understand the audits need to be completed timely to know the correct surplus cash amount to be deposited in a timely manner. Until we can get to that point, we will make provisional calculations to estimate this amount, if any, so it can be deposited in a timely manner.

View Audit 415764

Finding 1241760 (2025-002)

Material Weakness 2025

Mha Housing of the Piedmont, Inc.

NC

HUD Housing Programs Reporting

: To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts ...

: To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts corrected as we continue to run operations daily. Even though it’s been a slow process we are seeing great progress. It is our goal to have the audits completed timely as we always did in the past.

View Audit 415764

Finding 1241759 (2025-001)

Material Weakness 2025

Mha Housing of the Piedmont, Inc.

NC

Subrecipient Monitoring Eligibility HUD Housing Programs

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and...

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and managing files. All forms are now saved in tenant files, and not on individual laptops as they were in the past. The supervisor has also implemented schedules and tracking systems for monthly voucher submissions, annual recertifications, quarterly income checks and other processes in the occupancy workflow. In addition, the supervisor and the lead staff for housing compliance perform regular checks on tenant application paperwork and random checks on tenant files to ensure accuracy and completeness and correct any mistakes. Ongoing staff training, support and mentoring continues.

View Audit 415764

Finding 1241758 (2025-003)

Material Weakness 2025

Mha Housing of Eastern North Carolina, Inc.

NC

HUD Housing Programs

In response to the finding regarding low occupancy rate, management contends that the Project is doing all that is within its control to get the vacant units rented.

View Audit 415763

Finding 1241757 (2025-002)

Material Weakness 2025

Mha Housing of Eastern North Carolina, Inc.

NC

HUD Housing Programs Reporting

To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts co...

To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts corrected as we continue to run operations daily. Even though it’s been a slow process we are seeing great progress. It is our goal to have the audits completed timely as we always did in the past.

View Audit 415763

Finding 1241756 (2025-001)

Material Weakness 2025

Mha Housing of Eastern North Carolina, Inc.

NC

Subrecipient Monitoring Eligibility HUD Housing Programs

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and...

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and managing files. All forms are now saved in tenant files, and not on individual laptops as they were in the past. The supervisor has also implemented schedules and tracking systems for monthly voucher submissions, annual recertifications, quarterly income checks and other processes in the occupancy workflow. In addition, the supervisor and the lead staff for housing compliance perform regular checks on tenant application paperwork and random checks on tenant files to ensure accuracy and completeness and correct any mistakes. Ongoing staff training, support and mentoring continues.

View Audit 415763

Finding 1241755 (2025-005)

Material Weakness 2025

Hollywood West Tenant Action Committee

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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...

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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 2025-005: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result, audit adjustments provided by management were required to present the June 30, 2025 financial statements in accordance with GAAP. Recommendation: Management should review the internal controls to ensure that the accounting software allows for timely recording of information and that a timely review of the reconciliations is completed by another accountant not responsible for the month end close. Action(s) taken or planned on the finding: The accounting software provider is being changed and a new system to indicate review and approval of the month end closing process will be implemented.

View Audit 415762

Finding 1241754 (2025-004)

Material Weakness 2025

Hollywood West Tenant Action Committee

CA

HUD Housing Programs Subrecipient Monitoring

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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...

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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 did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended June 30, 2025. 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 415762

Finding 1241753 (2025-003)

Material Weakness 2025

Hollywood West Tenant Action Committee

CA

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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...

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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 submit audited financial statements to the Federal Audit Clearinghouse after the receipt of the auditor's reports timely for the year ended June 30, 2024. Recommendation: The Corporation should submit audited financial statement to the Federal Audit Clearinghouse within the time frames required. Action(s) taken or planned on the finding: The audited financial statements were submitted on April 10, 2026.

View Audit 415762

Finding 1241752 (2025-002)

Material Weakness 2025

Hollywood West Tenant Action Committee

CA

HUD Housing Programs

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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...

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 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 2025-002: Management fees of $7,988 were prepaid at June 30, 2025. Recommendation: The management agent should charge management fees as approved by HUD and should reimburse management fees of $7,988 to the Property. Action(s) taken or planned on the finding: See management response on schedule of findings and questioned costs.

View Audit 415762

Corrective Action Plans

Filters