17TH AVENUE REDI, A NONPROFIT CORPORATION 101-11198Non-Profit

Assistance Listing (Federal award identification number and year): Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 101-11198, 2013) Auditor non-compliance code: H - Unauthorized distribution of project assets. Finding resolution status: Cleared Universe population size: 380 cash disbursements Sample size information: 25 cash disbursements. Statistically valid sample: N/A Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $819 Statement of condition 2025-001: During the year ended March 31, 2025, the Corporation paid two invoices totaling $819 on behalf of related entities. Criteria: The Regulatory Agreement does not permit the Corporation to make any distributions or payments on behalf of other entities. Effect: The Corporation is not in compliance with the terms of the PRAC. At March 31, 2025, the Property's cash position is understated by $819. The computation of surplus cash, distributions, and residual receipts has been updated to include this amount so as not to understate the deposit due to residual receipts. Cause: The Corporation paid two invoices on behalf of related entities. Recommendation: The Corporation should request reimbursement from the related entities. Management's response: Agreed. Management concurs with the finding and the auditor's recommendation. The Corporation has received repayments from the related entities as of July 21, 2025.

Finding reference number: 2023-001 Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 101-11198 and 2013) Auditor non-compliance code: P-Investment of residual receipts Finding resolution status: Completed 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: N/A Statement of condition 2023-001: At March 31, 2023, the Corporation's residual receipts account was not invested in an interest bearing account. Criteria: The Regulatory Agreement requires that surplus cash, as defined, be deposited into an interest bearing residual receipts account or reserve for replacement account. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. Cause: The Corporation did not make deposits of surplus cash into an interest bearing account. Recommendation: The Agent should transfer the residual receipts account to an interest bearing account. Management's response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation transferred the residual receipts account to an interest bearing account on October 31, 2023.

Finding reference number: 2022-001 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 101-11198 and 2013) Auditor non-compliance code: B ? Failure to make required residual receipts deposit 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: No Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $12,264 Statement of Condition 2022-001 (Assistance Listing No. 14.155): The Corporation did not make the required surplus cash deposit computed at March 31, 2021, in the amount of $12,264 within 90 days of fiscal year end. Criteria: Pursuant to paragraph 5 of the Regulatory Agreement, the residual receipts deposit due to the reserve for replacements must be deposited within 90 days of fiscal year end. Effect or potential effect: The Corporation was not in compliance with the Regulatory Agreement. Cause: The Corporation did not make the required deposit within 90 days of fiscal year end. Recommendation: Management should implement a system to ensure the required deposit to the residual receipts is made within 90 days of fiscal year end. Completion date: August 3, 2022 Management response: Agreed. Management concurs with the finding and the auditor's recommendation. The Corporation made the required surplus cash deposit on August 3, 2022.

Finding reference number: #2021-001 CFDA title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 (Project identification number 101-11198 and 2013) Auditor non-compliance code: J - Unauthorized management fees Finding resolution status: In process 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: $868 Statement of Condition #2021-001: For the year ended March 31, 2021, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $868 at March 31, 2021. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect: The Corporation is not in compliance with the HUD approved management certification and the Corporation's cash position at March 31, 2021 has been reduced by $868. This amount has been included in the computation of surplus cash, distributions, and residual receipts so to not understate the deposit due to residual receipts Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion Date: March 31, 2022 Management Response: The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent will repay the prepaid management fees.

Finding reference number: #2021-002 CFDA title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 (Project identification number 101-11198 and 2013) Auditor non-compliance code: H - Unauthorized distribution of project assets Finding resolution status: In process 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: $2,948 Statement of Condition #2021-002: For the year ended March 31, 2021, the Corporation paid $2,948 to a related entity without HUD approval. Criteria: The Regulatory Agreement does not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and the Corporation's cash position at March 31, 2021 has been reduced by $2,948. This amount has been included in the computation of surplus cash, distributions, and residual receipts so to not understate the deposit due to residual receipts Cause: The Corporation did not obtain HUD approval prior to payment to the related entity. Recommendation: The related entity should repay $2,948 to the Corporation. Management should consider obtain written approval from HUD approval prior to making any future distributions or payments to related entities. Completion Date: March 31, 2022 Management Response: The Corporation concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $2,948 to the Corporation.

Finding reference number: #2020-001 CFDA title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 (Project identification number 101-11198 and 2013) Auditor non-compliance code: Z - Other Finding resolution status: In process 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: N/A Statement of Condition #2020-001: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result, management was required to provide audit adjustments to present the March 31, 2020 financial statements in accordance with GAAP. Criteria: Pursuant to HUD regulations, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD, which includes adequate design and monitoring of controls to safeguard the Corporation's assets. Chapter 2 of the Financial Operations and Accounting Procedures of Insured Multi-Family Projects Handbook (Handbook 4370.2 Rev.1) provides the accounting and financial operations requirements of a HUD-insured multi-family property including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail. Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2020 financial statements in accordance with GAAP. Cause: The Agent had significant turnover of key personnel in the accounting department during the year ended March 31, 2020. As a result, the Agent hired a reputable third party accounting firm to maintain the accounting books and records. The internal control system designed by management to produce accounting books and records in accordance with GAAP was not able to be implemented by the third party accounting firm prior to submission of the accounting books and records for audit. Recommendation: The Agent should ensure the third party accounting firm is following the internal control system designed by management in order to maintain a comprehensive set of accounting books and records in accordance with GAAP. Completion Date: March 31, 2021 Management Response: The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure the third party accounting firm is following the internal control system designed by management in order to maintain a comprehensive set of accounting books and records in accordance with GAAP.

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