NPH made the decision to utilize CDFI funds to ensure seamless operations after considerable thought and extensive discussions with experts in the use of CDFI funds. We would not take such action without input from industry experts that NPH could lend CDFI funds to itself to continue its mission of providing education, lending and development/construction services to its clients. NPH made the decision to utilize CDFI funds to ensure seamless operations after considerable thought and extensive discussions with experts in the use of CDFI funds. We would not take such action without input from industry experts that NPH could lend CDFI funds to itself to continue its mission of providing education, lending and development/construction services to its clients. The reason NPH was placed in this unfortunate situation was the unprecedented inflationary period our nation has faced over the past 2 ? years. One impact was a 40% increase in the average cost of home construction. An additional impact was the unparalleled rise in home mortgage rates caused delays in closing homes constructed. This generated extensive carrying costs which NPH had to endure while homebuyers struggled to qualify and close on the homes they were purchasing. NPH believed its course of action would be supported by the following opportunities it was pursuing. NPH had been informed by Oweesta that it would be receiving a low interest (1.9%) only loan of $1.35 million combined with a $150,000 grant. In addition, NPH had received notice of a $1.55 million-dollar NACA grant, of which 15% could be used for operations. Furthermore, NPH had pre-qualified for a $1.55 million-dollar CDFI ERP grant of which 20% could be used for operations. Unfortunately, the NACA Grant came in over 1.5 years late, the Oweesta funds and the ERP grant did not materialize at all. NPH has reason to believe these last two funding sources did not come to fruition due to the 2021 Audit by Walker and Armstrong. On the positive side NPH has finally received its NACA Grant of $1.3 million dollars of which $225,000 can be used for operations. NPH has applied for a $400,000 grant from Wells Fargo Bank. Unfortunately, NPH has been placed in the position of moving away from its historical commitment of being chiefly focused on its mission to serve and has been forced into being more heavily focused on building its balance sheet first, mission second. With that, NPH has ceased its home construction operations at Karigan Estates to reduce risk and conserve financial capital. NPH and CWCP are only pursing construction opportunities that have a very high probability of providing substantial positive cash flow required to build its balance sheet. Construction opportunities that may provide significant positive cash flow are, but not limited to, are restroom additions approved by the Navajo Nation, the remodeling of restrooms for Navajo Nation administration buildings to become ADA compliant and providing construction services for the Navajo Nation Presidential Home.