U.S. Department of Housing and Urban Development AuSable Valley Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2026. Name and address of the independent public accounting firm: Maner Costerisan P.C., 2425 E. Grand River Ave, Suite 1, Lansing, MI 48912 Audit period: July 1, 2025 - June 30, 2026 The finding from June 30, 2026, schedule of findings and questioned costs is discussed below. The finding is consistent with the number assigned in the schedule. Finding 2026-001 - Significant Deficiency in Internal Control over Major Federal Program Compliance: Special Tests and Provisions - Residual Receipt Requirements Recommendation: The Project should deposit $9,910 into the residual receipts account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Management Comments: We agree with the facts and circumstances described above. Subsequent to year end, the Project deposited $9,910 into the residual receipts account and is now compliant with HUD requirements. No outstanding residual receipt deposit requirements exists as of the report date. Management will further review annual audits to identify the required residual receipt funding to ensure ongoing compliance with HUD requirements.