ABBEY RHF HOUSING, INC. DBA ABBEY APARTMENTS 073-EE060

Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Supporting Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 073-EE060 and 1998) Auditor non-compliance code: I – Failure to maintain property/open physical inspection Finding resolution status: Resolved Universe population size: N/A Sample size information: N/A Statistically valid sample: No Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2025-001: The Property received a score of 49 on a physical inspection of the Property performed on June 17, 2024 by a representative of HUD. By reference, the NSPIRE inspection is included as a statement of condition. Criteria: Pursuant to the HUD Regulatory Agreement, the Property is to be maintained in good repair and condition and considered decent, safe, and sanitary. Management is to conduct routine unit and general property inspections and deficiencies should be corrected. Effect: The Corporation is not in compliance with the Regulatory Agreement. If deficiencies are of a life threatening nature and not corrected in a timely manner, the units could be considered not to be in a decent, safe, and sanitary condition. In addition, the Corporation has received notification on the default on the PRAC. Cause: The Property manager was not using the Uniform Physical Condition Standards Comprehensive Listing Checklist to ensure the Corporation was in compliance with HUD requirements when completing self-inspections. Recommendation: Management should ensure all necessary repairs have been made. Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Management's response: Agree. Management has responded to HUD regarding this inspection report and has addressed all health and safety issues. On May 16, 2025, a new physical inspection was completed at the Property and received a passing score of 87.

Statement of Condition 2025-001 (Assistance Listing 14.157): The Property received a score of 49 on a physical inspection of the Property performed on June 17, 2024 by a representative of HUD. By reference, the NSPIRE inspection is included as a statement of condition. Recommendation: Management should ensure all necessary repairs have been made. Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Management Response: Agree. Management has responded to HUD regarding this inspection report and has addressed all health and safety issues. On May 16, 2025, a new physical inspection was completed at the Property and received a passing score of 87.

Finding reference number: 2019-001 CFDA title and number (Federal award identification number and year): Supportive Housing for the Elderly, CFDA 14.157 (073-EE060 and 1998) Auditor non-compliance code: G - Unauthorized Loans from Project Funds Finding resolution status: Resolved 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: $3,845 Statement of Condition 2019-001 (CFDA 14.157): During the year ended March 31, 2019, the Property inadvertently reimbursed the Sponsor $3,845 in excess of actual disbursements from the central disbursing account. As of March 31, 2019, the Sponsor owes the Property $3,845. Criteria: Paragraph 7(d) of the Regulatory Agreement, states that owners shall not without the prior written approval of the Secretary, pay out any funds except from surplus cash, except for reasonable operating expenses and necessary repairs. Effect: The Corporation is not in compliance with the Regulatory Agreement. The Property's operating cash account has been reduced by $3,845. This amount has been considered in the surplus cash calculation for the year ended March 31, 2019. Cause: Management inadvertently reimbursed the central disbursing account more than was disbursed on behalf of the Property. Recommendation: The Sponsor should reimburse the Property's operating cash account in the amount of $3,845. Management should review its policies and procedures relating to its central disbursing account in order to prevent future occurrences. Completion Date: April 16, 2019. Management Response: Agree. On April 16, 2019, the Sponsor reimbursed the Property's operating cash account. Management will review and modify, if necessary, its policies and procedures relating to its central disbursing account.

Name of auditee: Abbey RHF Housing, Inc. HUD auditee identification number: 073-EE060 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended March 31, 2019 CAP prepared by Name: Christopher Purcell Position: Controller Telephone number: 562-257-5100 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of Condition 2019-001 (CFDA 14.157): During the year ended March 31, 2019, the Property inadvertently reimbursed the Sponsor $3,845 in excess of actual disbursements from the central disbursing account. As of March 31, 2019, the Sponsor owes the Property $3,845. Recommendation: The Sponsor should reimburse the Property's operating cash account in the amount of $3,845. Management should review its policies and procedures relating to its central disbursing account in order to prevent future occurrences. Action(s) taken or planned on the finding: Agree. On April 16, 2019, the Sponsor reimbursed the Property's operating cash account. Management will review and modify, if necessary, its policies and procedures relating to its central disbursing account.

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