Name of auditee: Habibi Terrace, Inc.
HUD auditee identification number: 143-EE054-WAH-NP
Name of audit firm: Dauby O'Connor & Zaleski, LLC
Period covered by the audit: Year ended December 31, 2023
CAP prepared by
Name: Ana Ponce
Position: President
Telephone number: 323-231-1104
Current Findings on the Schedule of Findings, Questioned Costs, and RecommendationsFinding 2023-002: During the year ended December 31, 2023, the Corporation did not make the
required deposits to the reserve for replacements.
Comments on the Finding and Each Recommendation: Management should make a deposit to
the reserve for replacements for $657 for the delinquent deposit. 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 will make a deposit of $657 during the
year ended December 31, 2024 for the delinquent deposit.