DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Hudson Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2023. Name and address of independent public accounting firm: Hinrichs & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: March 31, 2023. The findings from the March 31, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT-NONE, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: For one of the tenant files tested, there was a mathematical error in computing the tenant's medical expense deduction in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing, if necessary. Project managers should be aware of the importance of computing the tenant's medical expense deduction accurately. Action Taken: The Project agrees with the finding. Tenant rent was recomputed and management adjusted a future monthly HUD billing in July 2023. If the Department of Housing and Urban Development has questions regarding this plan, please call Chuck Reuter at 651-645-7271.