LASALLE PARK HOMES II, INC. 073-EE100-NP-WAH

Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (073-EE100-NP-WAH and 2005) Auditor non-compliance code: Z-Other Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $6,012 Statement of condition 2025-001: Management fees of $6,012 were prepaid at December 31, 2025. Criteria: In accordance with the HUD approved Management Agent Certification (HUD-9839-B), the management agent earns a fee based on an established rate of 10.98% of residential and miscellaneous income collected capped at $59 per unit per month, plus special fees of $8 per unit per month. Effect: The Corporation is not in compliance with the HUD approved management agent certification. Cause: The Agent inadvertently paid fees in excess of fees earned as limited by the $59 per unit per month cap. Recommendation: The Agent should reimburse $6,012 to the Community. Management's response: Agree. During the year ended December 31, 2026, the Agent will reimburse $6,012 to the Community.

Finding reference number: 2024-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (073-EE100-NP-WAH and 2005) Auditor non-compliance code: Z-Other Finding resolution status: Resolved Universe population size: 12 months of rejection letters Sample size information: 2 months of rejection letter Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2024-001: During the year ended December 31, 2024, one rejection letter selected for testing under the compliance supplement was missing necessary documents required by the PRAC and HUD Handbook 4350.3. Criteria: In accordance with the PRAC and HUD Handbook 4350.3, the Property must retain the rejection letter documentation to support applicants were rejected in accordance with the PRAC and HUD Handbook. Effect: The Community is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Cause: The prior property manager discarded the selected rejection letter and it was not available for review. Recommendation: Management should ensure that all rejection letters are maintained at the site of the Property in accordance with the HUD Handbook 4350.3. Management's response: Agree. Management agrees with the recommendation and will ensure that rejection letters are retained in accordance with the HUD Handbook 4350.3.

Finding reference number: #2021-001 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (073-EE100-NP-WAH) Auditor non-compliance code: G - Unauthorized loans from project funds Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $13,223 Statement of condition #2021-001: During the year ended December 31, 2021, the Corporation paid social coordinator expenses on behalf of another community totaling $13,223. Criteria: Pursuant to Section 11 (c) of the Regulatory Agreement, neither the Community nor its agents shall make any payments for services, supplies or materials unless such services are actually rendered for the Community or such supplies or materials are delivered to the Community and are reasonably necessary for its operation. Effect: The Corporation is not in compliance with the Regulatory Agreement. The Community?s operating cash has been reduced by $13,223. Cause: The Community paid social service coordinator expenses on behalf of another community managed by the Agent due to an error in allocating the expenses. Recommendation: The other community managed by the Agent should reimburse the Community in the amount of $13,223. Completion date: February 2, 2022 Management's response: Agree. On February 2, 2022, the other community managed by the Agent reimbursed the Community in the amount of $13,223.