EIN: 562277204
UEI: W7SMWQ5J2HA1
Data as of August 21, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 27, 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 December 27, 2025 (237 days ago).
What is a management decision? →The Project’s vacancy expense was 39% of rental revenue for the year ended September 30, 2024. Cause: Three of the Project’s eight units were vacant the entire year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project’s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.
Show full finding ▾Hide full finding ▴Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing Number 14.181 Criteria: The Project’s occupancy rate should be adequate to maintain Project operations. Statement of Condition: The Project’s vacancy expense was 39% of rental revenue for the year ended September 30, 2024. Cause: Three of the Project’s eight units were vacant the entire year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project’s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.
Corrective Action Plan: The Project is doing all that is within its control to get the vacant units rented. Auditee Contact: Lisa Poteat (The Arc of North Carolina, Inc.), Management Agent
2023-001
FAC accepted this audit on June 26, 2024 — management decision was due December 26, 2024.
The Project’s vacancy expense was 39% of rental revenue for the year ended September 30, 2023. Cause: Three of the Project’s eight units were vacant the entire year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project’s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.
Show full finding ▾Hide full finding ▴Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing Number 14.181 Criteria: The Project’s occupancy rate should be adequate to maintain Project operations. Statement of Condition: The Project’s vacancy expense was 39% of rental revenue for the year ended September 30, 2023. Cause: Three of the Project’s eight units were vacant the entire year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project’s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.
Corrective Action Plan: The Project is doing all that is within its control to get the vacant units rented. Auditee Contact: John Nash (The Arc of North Carolina, Inc.), Management Agent
2022-002
FAC accepted this audit on May 7, 2023 — management decision was due November 7, 2023.
On December 8, 2021, the Project received a score of 50c on its HUD physical inspection. This score resulted from numerous health and safety and other deficiencies. Cause: Most of the items listed as deficiencies are under the covenants of the HOA (Homeowners Association) and therefore the responsibility of the HOA to correct. Effect: A physical inspection score below 60 indicates that the owner may not be fulfilling its contractual obligations to HUD and that the residents may not be receiving the quality of housing to which they are entitled. Recommendation: The owner should correct all deficiencies inside the unit as soon as possible and make all necessary repairs to be in compliance with HUD. They should also contact the HOA to make the necessary repairs to the exterior. Views of Responsible Officials: All deficiencies and necessary repairs of the owners unit will be made as soon as possible. The HOA has been notified of the requested repairs to the outside of the unit. The HOA is responsible for these exterior repairs.
Show full finding ▾Hide full finding ▴Supportive Housing for Persons with Disabilities (Section 811), CFDA 14.181 Criteria: The Code of Federal Regulations (24 CFR 5.703) states that HUD housing must be decent, safe, sanitary and in good repair. Also, the Project?s HUD Regulatory Agreement states that the property must be maintained in good and substantial repair and condition. Statement of Condition: On December 8, 2021, the Project received a score of 50c on its HUD physical inspection. This score resulted from numerous health and safety and other deficiencies. Cause: Most of the items listed as deficiencies are under the covenants of the HOA (Homeowners Association) and therefore the responsibility of the HOA to correct. Effect: A physical inspection score below 60 indicates that the owner may not be fulfilling its contractual obligations to HUD and that the residents may not be receiving the quality of housing to which they are entitled. Recommendation: The owner should correct all deficiencies inside the unit as soon as possible and make all necessary repairs to be in compliance with HUD. They should also contact the HOA to make the necessary repairs to the exterior. Views of Responsible Officials: All deficiencies and necessary repairs of the owners unit will be made as soon as possible. The HOA has been notified of the requested repairs to the outside of the unit. The HOA is responsible for these exterior repairs.
Corrective Action Plan: Items outside the owners units have been forwarded to the HOA for repair. Auditee Contact: John Nash (The Arc of North Carolina, Inc.), Management Agent
2021-001
The Project?s vacancy expense was 29% of rental revenue for the year ended September 30, 2022. Cause: Of the Project?s eight total units, one was vacant the entire year, and two others were vacant several months during the year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project?s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.
Show full finding ▾Hide full finding ▴Supportive Housing for Persons with Disabilities (Section 811), CFDA 14.181 Criteria: The Project?s occupancy rate should be adequate to maintain Project operations. Statement of Condition: The Project?s vacancy expense was 29% of rental revenue for the year ended September 30, 2022. Cause: Of the Project?s eight total units, one was vacant the entire year, and two others were vacant several months during the year. Effect: Decreased revenue may result in excessive future usage of replacement reserve funds. Decreased revenue may also negatively impact the Project?s ability to fund future Project operations. Recommendation: The Project should continue its efforts to obtain tenants and decrease vacancies. Views of Responsible Officials: We agree with the finding. The Project will continue its attempts to decrease vacancies.
Corrective Action Plan: The Project is doing all that is within its control to get the vacant units rented. Auditee Contact: John Nash (The Arc of North Carolina, Inc.), Management Agent
FAC accepted this audit on April 27, 2022 — management decision was due October 27, 2022.
On July 21, 2021 the Project received a score of 59c on its HUD physical inspection. This score resulted from numerous health and safety and other deficiencies. Cause: Resident continued to not maintain the unit after issues were brought to their attention and solutions were identified for correction. Remaining items listed are under the covenants of the HOA (Homeowners Association) and therefore the responsibility of the HOA to correct. Effect: A physical inspection score below 60 indicates that the owner may not be fulfilling its contractual obligations to HUD and that the residents may not be receiving the quality of housing to which they are entitled. Recommendation: The owner should correct all deficiencies as soon as possible and make all necessary repairs to be in compliance with HUD. Views of Responsible Officials: All deficiencies and necessary repairs of the owners unit will be made as soon as possible. All other repairs should be made by the HOA since they are under the Association?s control.
Show full finding ▾Hide full finding ▴Section 811, CFDA 14.181 Criteria: The Code of Federal Regulations (24 CFR 5.703) states that HUD housing must be decent, safe, sanitary and in good repair. Also, the Project?s HUD Regulatory Agreement states that the property must be maintained in good and substantial repair and condition. Statement of Condition: On July 21, 2021 the Project received a score of 59c on its HUD physical inspection. This score resulted from numerous health and safety and other deficiencies. Cause: Resident continued to not maintain the unit after issues were brought to their attention and solutions were identified for correction. Remaining items listed are under the covenants of the HOA (Homeowners Association) and therefore the responsibility of the HOA to correct. Effect: A physical inspection score below 60 indicates that the owner may not be fulfilling its contractual obligations to HUD and that the residents may not be receiving the quality of housing to which they are entitled. Recommendation: The owner should correct all deficiencies as soon as possible and make all necessary repairs to be in compliance with HUD. Views of Responsible Officials: All deficiencies and necessary repairs of the owners unit will be made as soon as possible. All other repairs should be made by the HOA since they are under the Association?s control.
Corrective Action Plan: Resident will be moving into a higher supportive living arrangement. Items outside the owners units have been forwarded to the HOA for repair. Auditee Contact: John Nash (The Arc of North Carolina, Inc.), Management Agent
FAC accepted this audit on March 24, 2021 — management decision was due September 24, 2021.
Two-bedroom unit is underutilized with a one-person household. (This condition was noted by HUD for three tenants.) Cause: Failure to follow HUD Handbook requirements. Management erroneously considered a waiver provided to a similar project to be applicable to all two-bedroom apartments under management. Effect: If resident does not qualify for one of four exceptions listed in the HUD Handbook, an inefficient use of housing assistance results. Recommendation: HUD stated that if the three tenants were ineligible since move-in, the Project should reimburse HUD for all housing assistance payments from the move-in date through the current billing. Management should train supervisors and occupancy specialists to prevent underutilization of leased units. Views of Responsible Officials: We agree with the finding. The Project has reimbursed all housing assistance payments requested by HUD. Management has trained/will train supervisors and occupancy specialists to prevent underutilization of leased units.
Show full finding ▾Hide full finding ▴Section 811, CFDA 14.181 Criteria: Paragraph 3-23 G of HUD Handbook 4350.3 REV-1, CHG-4 prohibits owners from leasing units with two or more bedrooms to one-person households unless resident qualifies for one of four listed exceptions. (As part of a HUD Team Review, HUD issued the finding described below in October 2019.) Condition: Two-bedroom unit is underutilized with a one-person household. (This condition was noted by HUD for three tenants.) Cause: Failure to follow HUD Handbook requirements. Management erroneously considered a waiver provided to a similar project to be applicable to all two-bedroom apartments under management. Effect: If resident does not qualify for one of four exceptions listed in the HUD Handbook, an inefficient use of housing assistance results. Recommendation: HUD stated that if the three tenants were ineligible since move-in, the Project should reimburse HUD for all housing assistance payments from the move-in date through the current billing. Management should train supervisors and occupancy specialists to prevent underutilization of leased units. Views of Responsible Officials: We agree with the finding. The Project has reimbursed all housing assistance payments requested by HUD. Management has trained/will train supervisors and occupancy specialists to prevent underutilization of leased units.
Corrective Action Plan: In a July 2020 correspondence to the owner, HUD commented that the Project reimbursed HUD for housing assistance payments totaling $31,923 and discontinued vouchering for the tenants who were over-housed in units larger than their household supported. The $31,923 reimbursement occurred in January 2020. Management has trained/will train supervisors and occupancy specialists to prevent underutilization of leased units. Auditee Contact: John Nash (The Arc of North Carolina, Inc.), Management Agent
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