EIN: 310961533
UEI: ZN34KNFH9MN8
Audited by: Dauby O'Connor & Zaleski, LLC
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2025. 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 March 29, 2026 (153 days ago).
What is a management decision? →Finding reference number: #2024-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: N – Special Tests and Provisions Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $30,975 Statement of condition of #2024-001 (CFDA No. 14.134): The Corporation did not make all required reserve for replacements deposits during the year ended December 31, 2024. Criteria: The Regulatory Agreement requires the Corporation to make monthly deposits/payments to a reserve for replacements fund under the control of HUD. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not made all required reserve for replacements payments. Recommendation: The Corporation should make a deposit of $30,975 to the reserve for replacements fund. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will make the deposit to fully fund the reserve for replacements fund.
Show full finding ▾Hide full finding ▴Finding reference number: #2024-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: N – Special Tests and Provisions Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $30,975 Statement of condition of #2024-001 (CFDA No. 14.134): The Corporation did not make all required reserve for replacements deposits during the year ended December 31, 2024. Criteria: The Regulatory Agreement requires the Corporation to make monthly deposits/payments to a reserve for replacements fund under the control of HUD. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not made all required reserve for replacements payments. Recommendation: The Corporation should make a deposit of $30,975 to the reserve for replacements fund. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will make the deposit to fully fund the reserve for replacements fund.
Finding 2024-001: The Corporation did not make all required reserve for replacements deposits during the year ended December 31, 2024. Comments on the Finding and Each Recommendation: The Corporation should make a deposit of $30,975 to the reserve for replacements fund. Action(s) Taken or Planned on the Finding: The Corporation concurs with the recommendation and will make the deposit to fully fund the reserve for replacements fund.
FAC accepted this audit on September 30, 2024 — management decision was due March 30, 2025.
Finding reference number: #2023-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $10,483 Statement of condition of #2023-001 (CFDA No. 14.134): The Corporation did not obtain a HUD approved management certification (HUD Form 9839-B) for the new management agent effective beginning September 1, 2023. Criteria: The Regulatory Agreement requires the Property to have a HUD approved management certification (HUD Form 9839-B) in order to manage the Property. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not received HUD's approval of the management certification. Recommendation: The management certification should be submitted to HUD for retroactive approval for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will submit the management certification to HUD for approval retroactively.
Show full finding ▾Hide full finding ▴Finding reference number: #2023-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: J – Unauthorized management fees Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $10,483 Statement of condition of #2023-001 (CFDA No. 14.134): The Corporation did not obtain a HUD approved management certification (HUD Form 9839-B) for the new management agent effective beginning September 1, 2023. Criteria: The Regulatory Agreement requires the Property to have a HUD approved management certification (HUD Form 9839-B) in order to manage the Property. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not received HUD's approval of the management certification. Recommendation: The management certification should be submitted to HUD for retroactive approval for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will submit the management certification to HUD for approval retroactively.
Finding 2023-001: The Corporation did not obtain a HUD approved management certification (HUD Form 9839-B) for the new management agent effective beginning September 1, 2023. Comments on the Finding and Each Recommendation: The management certification should be submitted to HUD for retroactive approval for the period beginning September 1, 2023. Action(s) Taken or Planned on the Finding: The Corporation concurs with the recommendation and will submit the management certification to HUD for approval retroactively.
Finding reference number: #2023-002 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) 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 is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-002 (CFDA No. 14.134): The Agent did not complete a management entity profile (HUD Form 9832) upon the change in management agents effective beginning September 1, 2023. Criteria: HUD Handbook 4381.5 requires the Agent to have a management entity profile (HUD Form 9832). Effect or potential effect: The Agent is not in compliance with HUD Handbook 4381.5. Cause: The Agent has not completed a management entity profile. Recommendation: The management entity profile should be completed for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Agent concurs with the recommendation and will complete the management entity profile.
Show full finding ▾Hide full finding ▴Finding reference number: #2023-002 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) 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 is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-002 (CFDA No. 14.134): The Agent did not complete a management entity profile (HUD Form 9832) upon the change in management agents effective beginning September 1, 2023. Criteria: HUD Handbook 4381.5 requires the Agent to have a management entity profile (HUD Form 9832). Effect or potential effect: The Agent is not in compliance with HUD Handbook 4381.5. Cause: The Agent has not completed a management entity profile. Recommendation: The management entity profile should be completed for the period beginning September 1, 2023. Completion date: Outstanding Reporting response: The Agent concurs with the recommendation and will complete the management entity profile.
Finding 2023-002: The Agent did not complete a management entity profile (HUD Form 9832) upon the change in management agents effective beginning September 1, 2023. Comments on the Finding and Each Recommendation: The management entity profile should be completed for the period beginning September 1, 2023. Action(s) Taken or Planned on the Finding: The Agent concurs with the recommendation and will complete the management entity profile.
Finding reference number: #2023-003 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) 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 is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-003 (CFDA No. 14.134): The Corporation did not complete an affirmative fair housing marketing plan (HUD Form 935.2A) for the new management agent effective beginning September 1, 2023. Criteria: HUD Handbook 8025.1 requires the Corporation to have an affirmative fair housing marketing plan (HUD Form 935.2A). Effect or potential effect: The Corporation is not in compliance with HUD Handbook 8025.1. Cause: The Corporation has not completed an affirmative fair housing marketing plan. Recommendation: The affirmative fair housing marketing plan should be completed for the period beginning September 1, 2023 and submitted to HUD for approval. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will complete the affirmative fair housing marketing plan and submit to HUD for approval.
Show full finding ▾Hide full finding ▴Finding reference number: #2023-003 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) 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 is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $-0- Statement of condition of #2023-003 (CFDA No. 14.134): The Corporation did not complete an affirmative fair housing marketing plan (HUD Form 935.2A) for the new management agent effective beginning September 1, 2023. Criteria: HUD Handbook 8025.1 requires the Corporation to have an affirmative fair housing marketing plan (HUD Form 935.2A). Effect or potential effect: The Corporation is not in compliance with HUD Handbook 8025.1. Cause: The Corporation has not completed an affirmative fair housing marketing plan. Recommendation: The affirmative fair housing marketing plan should be completed for the period beginning September 1, 2023 and submitted to HUD for approval. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will complete the affirmative fair housing marketing plan and submit to HUD for approval.
Finding 2023-003: The Corporation did not complete an affirmative fair housing marketing plan (HUD Form 935.2A) for the new management agent effective beginning September 1, 2023. Comments on the Finding and Each Recommendation: The affirmative fair housing marketing plan should be completed for the period beginning September 1, 2023 and submitted to HUD for approval. Action(s) Taken or Planned on the Finding: The Corporation concurs with the recommendation and will complete the affirmative fair housing marketing plan and submit to HUD for approval.
FAC accepted this audit on September 28, 2023 — management decision was due March 28, 2024.
FAC accepted this audit on May 25, 2022 — management decision was due November 25, 2022.
FAC accepted this audit on June 27, 2021 — management decision was due December 27, 2021.
FAC accepted this audit on June 4, 2020 — management decision was due December 4, 2020.
The Project received a score of 54C on its REAC physical property inspection. Criteria: The Project is required to maintain a score of 60 on its REAC physical property inspection. Effect: The Owner is not allowed to receive an incentive performance fee or distribution if it receives a score below 60 on its REAC physical property inspection. Cause: The Project was not properly maintained. Recommendation: Management should make the necessary repairs and replacements recommended by REAC in the physical property inspection report.
Show full finding ▾Hide full finding ▴2019-001: Failure to maintain property/open physical inspection Condition: The Project received a score of 54C on its REAC physical property inspection. Criteria: The Project is required to maintain a score of 60 on its REAC physical property inspection. Effect: The Owner is not allowed to receive an incentive performance fee or distribution if it receives a score below 60 on its REAC physical property inspection. Cause: The Project was not properly maintained. Recommendation: Management should make the necessary repairs and replacements recommended by REAC in the physical property inspection report.
Financial Statement Findings and Questioned Costs - Findings Finding Control Number: 2019-001 Failure to maintain property/open physical inspection Condition: The Project received a score of 54C on its REAC physical property inspection. Criteria: The Project is required to maintain a score of 60 on its REAC physical property inspection. Cause: The Project was not properly maintained. Effect: The Owner is not allowed to receive an incentive performance fee or distribution if it receives a score below 60 on its REAC physical property inspection. Recommendation: Management should make the necessary repairs and replacements recommended by REAC in the physical property inspection report. Financial Statement Findings and Questioned Costs ? Auditee Responses Finding Control Number: 2019-001 REPORTING Corrective Action: The Board governing Liberty Terrace Apartments agrees with the finding and recommendation and have made the necessary repairs and replacements recommended by REAC in the physical property inspection report. Proposed Completion Date: Necessary repairs and replacements have already been made. Name of Contact Person: Anne Martin, Staff Accountant, The Martin Group, Inc. (Management Agent) Telephone: (812) 402-3500; E-mail: ANNE@TMGOC.NET
FAC accepted this audit on May 14, 2019 — management decision was due November 14, 2019.
FAC accepted this audit on May 7, 2018 — management decision was due November 7, 2018.
FAC accepted this audit on August 10, 2017 — management decision was due February 10, 2018.
GSA_MIGRATION
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