EIN: 205490961
UEI: GSA_MIGRATION
Audited by: LANDMARK PLC, CERTIFIED PUBLIC ACCOUNTANTS
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 13, 2020. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by November 13, 2020 (2129 days ago).
What is a management decision? →We noted that no mortgage and reserve payments were made after June 2018, resulting in a default of the loan and reserves to be underfunded. Questioned Costs: Mortgage principal: $301,246; Reserve Deposits: $9,996 Context: During the year ended December 31, 2019, the Project was required to pay monthly mortgage payments totaling $301,246 and reserve deposits of $9,996. The Project did not pay any mortgage payments or reserve deposits during the year, resulting in underpayments of $301,246 and $9,996 for mortgage and reserves, respectively for the year ending December 31, 2019. Underpayments since the Project defaulted in June 2018 total $451,894 and $14,994 for mortgage and reserves, respectively. Effect or Potential Effect: As a result, the Project has defaulted on the loan. The lender has exited as the loan servicer and the loan reverted to HUD. The replacement reserve account is underfunded. Cause: The Project is experiencing a difficult financial period, which has resulted in limited cash to pay operating expenses. Recommendation: The Project?s management should attempt to increase private pay tenants and minimize costs while also seeking alternative solutions to refinance their long-term liabilities to better suit their financial situation.
Show full finding ▾Hide full finding ▴Finding 2019-001: Failure to Make Required Mortgage Payments and Reserve Deposits Criteria: Program requirements state that the Project assumes and agrees to make promptly all payments due under the note and mortgage, as well as establish and maintain a reserve fund for replacements by the allocation to such reserve fund in a separate account with the Mortgagee, concurrently with the beginning payments toward amortization of the principal of the mortgage insured or held by the Secretary of an amount equal to $833 per month and as required by the Secretary. Condition: We noted that no mortgage and reserve payments were made after June 2018, resulting in a default of the loan and reserves to be underfunded. Questioned Costs: Mortgage principal: $301,246; Reserve Deposits: $9,996 Context: During the year ended December 31, 2019, the Project was required to pay monthly mortgage payments totaling $301,246 and reserve deposits of $9,996. The Project did not pay any mortgage payments or reserve deposits during the year, resulting in underpayments of $301,246 and $9,996 for mortgage and reserves, respectively for the year ending December 31, 2019. Underpayments since the Project defaulted in June 2018 total $451,894 and $14,994 for mortgage and reserves, respectively. Effect or Potential Effect: As a result, the Project has defaulted on the loan. The lender has exited as the loan servicer and the loan reverted to HUD. The replacement reserve account is underfunded. Cause: The Project is experiencing a difficult financial period, which has resulted in limited cash to pay operating expenses. Recommendation: The Project?s management should attempt to increase private pay tenants and minimize costs while also seeking alternative solutions to refinance their long-term liabilities to better suit their financial situation.
Responsible Official?s Response and Corrective Action Plan: We continue to operate the property without making any mortgage payments. All staff and 3rd party vendors are being paid. Corrective action will likely be the disposition of the defaulted mortgage by HUD. In June 2019, Greystone exited as the loan servicer and the loan reverted to HUD. We have created a Dynaxis account and are complying with HUD reporting requirements. The two disposition options open to HUD include a sole-source sale (short sale of the note) or a note auction. HUD has ordered an appraisal in preparation of receiving offers. We have yet to be told disposition date. Day-to-day, the lack of a mortgage payment enables the property to operate in spite of low occupancy and decreasing waiver services payments. CDC plans to continue operating the property until either a sole source sale or note auction is complete. After disposition, the new owner would define our role. At that point, it is unclear if the property would continue to operate as an assisted living and unclear how the Greenhouse Limited Partnership (shared services entity) would be affected. Planned Implementation Date of Corrective Action: To be determined. Person Responsible for Corrective Action: Casey Kleinhenz, Executive Director of Community Development Corporation of Bentonville/Bella Vista, Inc.
2018-001
FAC accepted this audit on July 25, 2019 — management decision was due January 25, 2020.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on May 24, 2018 — management decision was due November 24, 2018.
FAC accepted this audit on May 9, 2017 — management decision was due November 9, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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