Housing Opportunities, Inc.

Statement of Condition: Each wholly owned project of the Organization has its own individual bank account at each financial institution. Because these projects are owned by the Organization, all the projects' bank accounts at this financial institution must be combined when assessing FDIC coverage over these accounts as of year end. At December 31, 2024, the Organization's projects' funds combined with the Organization’s corporate funds held at a financial institution exceeded FDIC insurance coverage limits, putting the wholly owned projects' accounts at risk of loss at this financial institution. Criteria: USDA Handbook 2-3560, Chapter 4 states that bank account funds maintained in an institution may not exceed the limits established for Federal Deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Organization must obtain a collateral pledge from the institution to cover all the funds or move funds to an institution that will insure the funds. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the wholly owned projects' funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0. Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and reviews the financial stability of the banking institutions which hold the Organizations' funds on an ongoing basis and will continue to do so. Management does not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management will transfer the funds at any point they believe the funds are truly at risk.

Statement of Condition: Each wholly owned project of the Organization has its own individual bank account at each financial institution. Because these projects are owned by the Organization, all the projects' bank accounts at this financial institution must be combined when assessing FDIC coverage over these accounts as of year end. At December 31, 2023, the Organization's projects' funds combined with the Organization’s corporate funds held at a financial institution exceeded FDIC insurance coverage limits, putting the wholly owned projects' accounts at risk of loss at this financial institution. Criteria: USDA Handbook 2-3560, Chapter 4 states that bank account funds maintained in an institution may not exceed the limits established for Federal Deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Organization must obtain a collateral pledge from the institution to cover all the funds or move funds to an institution that will insure the funds. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the wholly owned projects' funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0. Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and reviews the financial stability of the banking institutions which hold the Organizations' funds on an ongoing basis and will continue to do so. Management does not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management will transfer the funds at any point they believe the funds are truly at risk.

Statement of Condition: Each wholly owned project of the Organization has its own individual bank account at each financial institution. Because these projects are owned by the Organization, all the projects' bank accounts at this financial institution must be combined when assessing FDIC coverage over these accounts as of year end. At December 31, 2022, the Organization's projects' funds combined with the Organization?s corporate funds held at a financial institution exceeded FDIC insurance coverage limits, putting the wholly owned projects' accounts at risk of loss at this financial institution. Criteria: USDA Handbook 2-3560, Chapter 4 states that bank account funds maintained in an institution may not exceed the limits established for Federal Deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Organization must obtain a collateral pledge from the institution to cover all the funds or move funds to an institution that will insure the funds. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the wholly owned projects' funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0. Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.

Statement of Condition: Each wholly owned project of the Organization has its own individual bank account at each financial institution. Because these projects are owned by the Organization, all the projects' bank accounts at this financial institution must be combined when assessing FDIC coverage over these accounts as of year end. At December 31, 2021, the Organization's projects' funds combined with the Organization?s corporate funds held at a financial institution exceeded FDIC insurance coverage limits, putting the wholly owned projects' accounts at risk of loss at this financial institution. Criteria: USDA Handbook 2-3560, Chapter 4 states that bank account funds maintained in an institution may not exceed the limits established for Federal Deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Organization must obtain a collateral pledge from the institution to cover all the funds or move funds to an institution that will insure the funds. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the wholly owned projects' funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0. Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.

Statement of Condition: Each wholly owned project of the Organization has its own individual bank account at each financial institution. Because these projects are owned by the Organization, all the projects' bank accounts at this financial institution must be combined when assessing FDIC coverage over these accounts as of year end. At December 31, 2020, the Organization's projects' funds combined with the Organization?s corporate funds held at a financial institution exceeded FDIC insurance coverage limits, putting the wholly owned projects' accounts at risk of loss at this financial institution. Criteria: USDA Handbook 2-3560, Chapter 4 states that bank account funds maintained in an institution may not exceed the limits established for Federal Deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Organization must obtain a collateral pledge from the institution to cover all the funds or move funds to an institution that will insure the funds. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the wholly owned projects' funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0. Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.

Statement of Condition: Each wholly owned project of the Organization has its own individual bank account at each financial institution. Because these projects are owned by the Organization, all the projects' bank accounts at this financial institution must be combined when assessing FDIC coverage over these accounts as of year end. At December 31, 2019, the Organization's projects' funds combined with the Organization?s corporate funds held at a financial institution exceeded FDIC insurance coverage limits, putting the wholly owned projects' accounts at risk of loss at this financial institution. Criteria: USDA Handbook 2-3560, Chapter 4 states that bank account funds maintained in an institution may not exceed the limits established for Federal Deposit insurance. If funds exceed the amount covered by Federal Deposit insurance, the Organization must obtain a collateral pledge from the institution to cover all the funds or move funds to an institution that will insure the funds. Cause of Condition: Management did not transfer funds to separate financial institutions in a timely manner to provide for continuous FDIC insurance coverage. Effect of Condition: Noncompliance with USDA RD requirements and risk of loss of the wholly owned projects' funds. Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Questioned Costs: $0. Information based on Universe and Population Size: The finding noted above was not a result of sampling. Sample Size Information: The finding noted above was not a result of sampling. Noncompliance Information: The finding noted above was not a result of sampling. Reporting Views of Responsible Officials: Management agrees with the above finding and is in the process of transferring funds to provide adequate FDIC coverage for all funds. Management will re-evaluate its policies and procedures to determine any necessary changes.

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