HARRY AND JEANETTE WEINBERG GARDENS, INC

Finding No. 2025-001 - E. Eligibility for Uniform Guidance - Significant Deficiency Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Assistance Listing Number: 14.157 Federal Award Identification Number and Year: 126EH124, program year is 2024. 126EH124-WAH-CA, program year is 1993. Name of Pass-through Entity (if applicable): Not applicable Criteria: Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition: In connection with our lease file review, we noted that: -one out of three tenants' income verification was not performed at all with the use of the HUD Enterprise Income Verification ("EIV"). -three out three tenants' recertifications were not performed timely. Cause: Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect: The procedures for determining tenant recertification eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs: N/A Context: One out of four tenants' tenants tested did not have the EIV run timely. Three out of three tenants tested did not have recertification performed timely. Auditor Noncompliance Code: Z-Other for REAC filing Identification as a Repeat Finding: Yes, 2024-001 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Views of Responsible Officials and Planned Corrective Actions: REACH has policies in place to complete EIVs and recertifications in a timely manner but due to staffing shortages and tenant noncompliance issues, the Property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to a third-party management company to address outstanding compliance issues.

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete EIVs and recertifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to third party management company to address outstanding compliance issues.

2024-001

Finding No. 2025-002 - N. Special Tests and Provisions for Uniform Guidance - Significant Deficiency Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Assistance Listing Number: 14.157 Federal Award Identification Number and Year: 126EH124, program year is 2024. 126EH124-WAH-CA, program year is 1993. Name of Pass-through Entity (if applicable): Not applicable Criteria: Management is required to maintain compliance with HUD guidelines including the Property’s physical condition, the quality of management and tenant services and annual financial reporting requirements. This includes managements obligation to address all deficiencies identified in the NSPIRE Physical Inspection within a defined period of time. Condition: The Company failed to respond to and address all deficiencies noted in the NSPIRE Physical Inspection within the time frame specified by HUD and could not provide evidence that the deficiencies had been resolved. Cause: The procedures to ensure compliance with HUD guidelines regarding physical condition were not followed. Effect or Potential Effect: The Property may not be in compliance with HUD guidelines relating to the Property’s physical condition. Questioned Costs: N/A Context: Findings from NSPIRE Physical Inspection were not responded to in a timely manner and management could not provide evidence that all deficiencies had been resolved. Auditor Noncompliance Code: Z-Other for REAC Code Identification as a Repeat Finding: No Recommendation: Management should address all deficiencies identified in the NSPIRE Physical Inspection in a timely manner to ensure compliance with HUD regulations. Views of Responsible Officials and Planned Corrective Actions: REACH has policies in place to address deficiencies identified in the NSPIRE Physical Inspections but due to staffing shortages was having issues addressing them in a timely manner. REACH has cleared all deficiencies and submitted all requested materials to HUD and is awaiting the close-out confirmation letter.

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should address all deficiencies identified in the NSPIRE Physical Inspection in a timely manner to ensure compliance with HUD regulations. Action Taken: REACH has policies in place to address deficiencies identified in the NSPIRE Physical Inspections but due to staffing shortages was having issues addressing them in a timely manner. REACH has cleared all deficiencies and submitted all requested materials to HUD and is awaiting the close-out confirmation letter.

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition During the audit, we identified that the Agency’s year-end financial reporting controls did not detect and correct a material misstatement related to client assistance pass-through funding prior to the commencement of audit procedures. The misstatement related, in part, to the year-end confirmation and reconciliation process with State pass-through agencies. As a result, a material audit adjustment was required to properly state the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Criteria or Specific Requirement Management is responsible for maintaining internal controls over financial reporting sufficient to prevent, or detect and correct, material misstatements on a timely basis. Lack of such review controls over year-end financial reporting and confirmation processes led to material audit adjustments. Effect A material misstatement was not identified and corrected through the Agency’s internal controls prior to the audit. The material audit adjustment impacted federal expenditures reported on the Schedule of Expenditures of Federal Awards. Cause Year-end financial reporting review controls were not performed timely or did not operate effectively. During the fiscal year, the Agency experienced a transition in its outsourced accounting service provider, which impacted continuity and consistency in the execution of established financial reporting and reconciliation procedures, including year-end confirmation processes with State pass-through agencies. Repeat Finding No Recommendation We recommend that management ensures that all year-end financial reporting and confirmation processes are performed in a timely manner and ensures that all transactions are properly recorded prior to commencement of the annual audit. Views of Responsible Officials There is no disagreement with the audit finding. III. Federal Award Findings and Questioned Costs None.

Material Weakness in Internal Control Over Financial Reporting The Agency’s year-end financial reporting controls did not detect and correct a material misstatement related to client assistance pass-through funding prior to the commencement of audit procedures. The misstatement related, in part, to the year-end confirmation and reconciliation process with State pass-through agencies. As a result, a material audit adjustment was required to properly state the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Management concurs with the finding. CAANH terminated its fiduciary services contract with NOI in 2025 and engaged CohnReznick with a start date of October 1, 2025, as its new fiduciary services provider. Management will continue to ensure that all year-end financial reporting, account reconciliations, and confirmation processes are completed in a timely manner. In addition, management will verify that all financial transactions are accurately recorded and reviewed prior to the commencement of the annual audit to support complete, accurate, and timely financial reporting. Amos Smith, President & CEO Will be in operation for all future audit periods.

Finding No. 2025-001; Supportive Housing for the Elderly, CFDA 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4571.3, Section 202 Supportive Housing for the Elderly. Condition In connection with our lease file testing, we noted the following deficiencies: One out of one new tenant did not have an EIV run within 90 days of the tenant moving into the property. One out of four existing tenants did not have the annual tenant recertification Form 50059 completed timely. Cause There was an administrative error involving personnel involved in the certification and annual recertification process resulting in the EIV reports and annual recertification not being run in accordance with the HUD program guidelines. Effect or Potential Effect The Corporation is not in compliance with HUD Program guidelines. Context A sample of five tenant files were selected from a population of 40 units. We identified exceptions in two out of the five files tested. Repeat Finding This finding is a repeat finding (see prior year finding #2024-001). Recommendation The Corporation should ensure that EIV reports are run timely and annual recertifications are performed timely accordance with the HUD Program guidelines, and it should monitor its compliance with those policies and procedures. Auditor Noncompliance Code: R - HUD Section 202 program administration Finding Resolution Status: Resolved Views of Responsible Officials Management concurs with the finding. Management has communicated with the staff the importance of timely annual tenant recertifications and EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with these requirements to ensure that annual tenant recertifications are completed and EIVs are run within an appropriate time frame.

a. Finding 2025-001; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure annual tenant recertification Form 50059’s are completed timely and EIVs are run timely. ii. Planned Corrective Action a. Management has communicated with the staff the importance of timely annual tenant recertifications and EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with these requirements to ensure that annual tenant recertifications are completed and EIVs are run within an appropriate time frame. iii. Anticipated Completion Date a. Corrective actions have been completed.

2024-001