NBA/GPVA ACCESSIBLE HOUSING, INC.Non-Profit

Assistance Listing (Federal award identification number and year): Mortgage insurance for the purchase or refinancing of existing multifamily housing projects, Assistance Listing Number 14.155, 2013 (Project identification number 085-11150) 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. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $14,248 Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Criteria: Pursuant to the regulatory agreement and HUD Handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD- 9839-B). Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2025 Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

Assistance Listing (Federal award identification number and year): Mortgage insurance for the purchase or refinancing of existing multifamily housing projects, Assistance Listing Number 14.155, 2013 (Project identification number 085-11150) Auditor non-compliance code: B – Failure to make required residual receipt deposit Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The universe population size 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: $12,062 Statement of condition 2023-001: The Corporation did not make the required deposit to the residual receipts reserve for the year ended June 30, 2023. The residual receipts reserve is underfunded by $12,062 as of June 30, 2023. Criteria: Pursuant to the regulatory agreement, the Corporation is required to deposit surplus cash to the residual receipts reserve within 90 days of year end. Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The residual receipts reserve is underfunded by $12,062. Cause: Due to anticipated cash needs, management did not make the required deposit to the residual receipts reserve in order to meet cash flow needs anticipated for the year ended June 30, 2023. Recommendation: Management should deposit $12,062 into the residual receipts reserve. Completion date: June 30, 2024 Management's response: Management agrees with the finding. Management is in the process of seeking approval from HUD to retain surplus cash in the Property's operating account.

Assistance Listing (Federal award identification number and year): Mortgage insurance for the purchase or refinancing of existing multifamily housing projects, Assistance Listing Number 14.155, 2013 (Project identification number 085-11150) 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. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,136 Statement of condition 2023-002: For the year ended June 30, 2023, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Criteria: Pursuant to the regulatory agreement and HUD Handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B). Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2024 Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

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 Number 14.155, 2013 (Project identification number 085-11150) 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. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $14,911 Statement of condition #2022-001: From the period October 1, 2021 through June 30, 2022, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Criteria: Pursuant to the Regulatory Agreement and HUD Handbook, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Effects or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received. Completion date: June 30, 2023 Management Response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

Finding reference number: #2021-001 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 14.155 (Project identification number 085-11086) Auditor non-compliance code: B ? Failure to make required residual receipt deposit Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The universe population size is not applicable to the finding. Noncompliance information: See statement of condition #2021-001 for noncompliance information Statistically valid sample: N/A Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: 26,228 Statement of condition #2021-001: The Corporation did not make the required deposits to the residual receipts reserve for the year ended June 30, 2021. The residual receipts fund is underfunded by $26,228 as of June 30, 2021. Criteria: Pursuant to the Regulatory Agreement, the Corporation is required to deposit surplus cash to the residual receipts fund within 90 days of year end. Effects or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The residual receipts fund is underfunded by $26,228. Cause: Due to anticipated cash needs, management did not make the required deposit to the residual receipts fund in order to meet cash flow needs anticipated for the year ended June 30, 2021. Recommendation: Management should deposit $26,228 into the residual receipts fund. Completion date: June 30, 2022 Reporting views of responsible officials: Management agrees with the finding and auditor's recommendation. Management will transfer funds to the residual receipts fund as cash flow permits.

Finding reference number: #2021-002 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 14.155 (Project identification number 085-11150) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Outstanding Universe population size: 12 deposits to the reserve for replacements. Sample size information: 12 deposits Noncompliance information: See statement of condition #2021-002 for noncompliance information Statistically valid sample: Yes Name of Federal Agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: $1,447 Statement of condition #2021-002: The Corporation did not make the required monthly deposits into a separate reserve for replacements. The reserve for replacements is underfunded by $1,447 as of June 30, 2021. Criteria: Pursuant to the Regulatory Agreement, the corporation is required to make monthly deposits into a separate reserve for replacements. Effects or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements is underfunded by $1,447 as of June 30, 2021. Cause: Management received a deposit increase to the reserve for replacements during the year, which was effective August 1, 2020. Management inadvertently omitted depositing additional funds related to the increase totaling $1,447. Recommendation: Management should transfer $1,447 from the operating account to the reserve for replacements. Completion date: June 30, 2022 Reporting views of responsible officials: Management agrees with the finding and auditor's recommendation. Management will transfer funds to the reserve for replacements.