Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2026-001: During the year ended June 30, 2026, the Corporation was delinquent by one monthly mortgage and escrow payment. Additionally, the Corporation incurred late fees as a result of the delinquent mortgage and escrow payment. Comments on the Finding and Each Recommendation Management and the board of directors acknowledge the required mortgage payments and escrow deposits were not paid timely in accordance with the Loan Agreement and Regulatory Agreement as required by HUD. Management has been able to fill vacancies and submit special claims to improve cash flow. In July 2025, the Corporation executed a reinstatement agreement with the mortgage lender to make additional monthly mortgage payments of $1,000 through May 2026. The Corporation made an additional principal and interest payment in February 2026 that accelerated the payoff, and the mortgage was brought to current in March 2026. The mortgage lender agreed to waive half of the late fees in April 2026, resulting in a balance due of $1,622 that was paid in May 2026. Actions Taken on the Finding In July 2025, the Corporation executed a reinstatement agreement with the mortgage lender to make additional monthly mortgage payments of $1,000 through May 2026. The Corporation made an additional principal and interest payment in February 2026 that accelerated the payoff, and the mortgage was brought to current in March 2026. The mortgage lender agreed to waive half of the late fees in April 2026, resulting in a balance due of $1,622 that was paid in May 2026. CAP prepared by: Trisha Jester Director of Multifamily Housing Arbors Management, Inc. 412-246-9213 Anticipated completion date: Completed May 31, 2026