North Dade Senior Citizens Housing Development Corporation, Inc. operating as Robert Sharp Towers I

FINDING No. 2025-001: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2025. Sample Size Information: All replacement reserve deposits for the year ended June 30, 2025. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-001. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $1,073 in the current year and did not correct the prior year deficiencies of $611, for 2023 and 2024. Cause: The Project did not fund the reserve account with the new amount at the beginning of the year or correct the prior year deficiency. Effect or Potential Effect: Deficiently funded reserve for replacements. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the replacement reserve is properly funded on a monthly basis. Response Indicator: Agree. Completion Date: 06/30/2026 Response: New procedures have been implemented to review the deposits each month to ensure the amounts are proper.

FINDING No. 2025-002: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: Five moved-in tenants. Sample Size Information: Two moved-in tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the maintenance of a waitlist and the selection of applicants in chronological order of application date or adequate documentation of the reasoning for an applicant being passed over for an applicant with a later application date. Statement of Condition: The Project’s waiting list did not reflect the actual tenant application dates for all applicants. Cause: The Project did not update the waiting list using the date stamped on the tenant applications. Effect or Potential Effect: Unable to determine the date for the receipt of applications for proper waiting list placement and subsequent selection to occupancy. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should rebuild the waiting list based on the date stamps on the original tenant applications and implement procedures to ensure that all future applications are recorded accurately and maintained in chronological order. Response Indicator: Agree. Completion Date: 06/30/2026 Response:Staff training has been provided to ensure that there are date stamps on the wait list tenants.

FINDING No. 2025-003: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: Six tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under state laws within 15 days from move-out. Statement of Condition: The Project refunded the security deposit 28 days after the tenant moved out, which is beyond the 15 day state requirement. Cause: The Project did not follow the state requirement for refunding security deposits within 15 days from tenant move-out. Effect or Potential Effect: The tenant was given their security deposit refund late, causing the Project to be noncompliant with state requirements. Auditor Non-Compliance Code: M – Security Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should refund security deposits timely. Response Indicator: Agree. Completion Date: 05/08/2025 Response: Staff training has been provided and included in monthly reporting procedures.

FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2024. Sample Size Information: All replacement reserve deposits for the year ended June 30, 2024. Identification of Repeat Finding and Finding Reference Number: Yes, 2023-002. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $436 in the current year and did not correct the prior year deficiency of $175. Cause: The Project did not fund the reserve account with the new amount at the beginning of the year. Effect or Potential Effect: Deficiently funded reserve for replacements. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the replacement reserve is properly funded on a monthly basis. Response Indicator: Agree. Completion Date: 06/30/2025 Response: We are researching the underfunding and will ensure the RR account is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper.

FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred eighteen tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires the following be performed in a timely manner and corresponding documentation maintained: • Annual unit inspections. • Apartment applications stamped with date and time received. • Verification of initial income through the use of Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) • Verification of initial income through third-party verification documentation. Statement of Condition: The Project did not: • Perform an annual unit inspection for one tenant. • Mark the application for housing with the date and time received for one tenant. • Review the initial EIV within 90 days after transmission of move-in certification to TRACS for two tenants. • Obtain and/or maintain third party verification of initial income for one tenant. Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance residency may be disallowed. Unable to determine and assess whether the property has sustained any damages. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure initial tenant income through EIV system and third-party documentation are verified in a timely manner, annual unit inspections are performed, and all required tenant documentation is complete and accurate. Response Indicator: Agree. Completion Date: 06/30/2024 Response: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled, unit inspections performed, and required documentation is complete and accurate.

FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2023. Sample Size Information: Required replacement reserve deposits for the year ended June 30, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $175. Cause: The Project did not implement the required monthly deposit into the replacement reserve account increase in a timely manner effective May 1, 2023. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 06/30/2024 Response: Management nor the lender received the approved 9250 dated 06.06.2023 until 10.26.2023. Management will submit the retro amount of $174.84 in December 2023.

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Escrow accounts. Sample Size Information: Escrow accounts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments and other charges. Statement of Condition: The Project is deficient in funding escrow deposits, as required by HUD and as a result, overdrew the account. Cause: The Project did not properly fund the escrow accounts based on current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations and the escrow deposits account was overdrawn. Auditor Non-Compliance Code: Z – Other Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should make sufficient monthly deposits to the escrow accounts in a timely manner. Response Indicator: Agree. Completion Date: 06/30/2024 Response: The shortfall was due to the property insurance premium unexpectedly increasing by more than $170,000. The account was subsequently analyzed, and the monthly escrow deposit is now sufficient to cover the new rates. Questioned Costs – Department of Housing and Urban Development $208,565

FINDING No. 2023-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: Payroll disbursements. Sample Size Information: Property manager payroll disbursements. Identification of Repeat Finding and Finding Reference Number: No. Criteria: Per HUD compliance requirements, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation and should only be used to pay for activities of the Project. Project funds cannot be loaned or used on nonproject purposes without HUD approval. Statement of Condition: The Project paid the full biweekly wage amount of the property manager, who is also employed at a second sister property, for approximately three months. That property is responsible for the other half of the property manager’s wages totaling $6,840. Cause: The Project did not adjust the wage amount prior to submitting payroll for payment. Effect or Potential Effect: Unauthorized use of project assets. Auditor Non-Compliance Code: H – Unauthorized distribution of project assets Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should improve monitoring of the payroll disbursement process to ensure the appropriate approved wages are paid. Response Indicator: Agree. Completion Date: 06/30/2023 Response: Additional payroll controls are being evaluated and implemented in 2024. This will include establishing procedures to ensure the completeness and accuracy of payroll and related oversight. Questioned Costs – Department of Housing and Urban Development $6,840 Total Questioned Costs – Department of Housing and Urban Development $215,405

FINDING No. 2022-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: One hundred twenty-one tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD requires that Project maintain the signed form HUD-50059 for all tenants. Statement of Condition: The form HUD-50059 was missing for one tenant. Cause: The form HUD-50059 was not maintained in the tenant file. Effect or Potential Effect: Tenant files were not maintained in adherence to HUD requirements. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should implement procedures to ensure all tenant documentation is properly completed and maintained. Response Indicator: Agree. Completion Date: 07/21/2022 Response: Training will be conducted with on-site staff on file requirements and procedures. Going forward Compliance will be reviewing random files for accuracy to prevent future file findings.

FINDING No. 2021-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Escrow account. Sample Size Information: Escrow account. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by the Regulatory Agreement, the Project will pay when due, all taxes, assessments, and other charges. Statement of Condition: The Project is deficient in funding the Escrow account by $14,391, as required by HUD. Cause: The Project did not make adequate deposits to cover the upcoming payments. Effect or Potential Effect: Funds may not be available to pay taxes and insurance premiums when due. Auditor Non-Compliance Code: Z ? Other. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Deposit funds into the account to bring the balance to an adequate level to pay future insurance premiums and implement procedures to ensure the correct amount is deposited in the escrow account each month. Response Indicator: Agree. Completion Date: 6/30/2022 Response: There was a significant increase to both the property and liability insurance that neither the lender nor management was aware of until invoiced. The lender advised they will be doing an annual analysis and advise of the appropriate amount we need to remit in order for the account to be funded adequately.

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2020-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: Residual receipts account. Sample Size Information: Residual receipts account. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, residual receipts account balances in excess of $250 per unit must be applied on a monthly basis to offset Section 8 HAP payments up to the full amount of the monthly subsidy request, depending on the amount of residual receipts available for the offset. Monthly offsets must continue until the residual receipts account reaches the retained balance level of $250 per unit. Statement of Condition: The Project did not offset monthly Section 8 HAP with excess residual receipts. Cause: The Project did not abide by the HUD requirement for offsetting Section 8 HAP payments with excess residual receipts on a monthly basis. Effect or Potential Effect: The Project received excess Section 8 HAP payments and is liable for the residual receipts available for recapture at year end. Auditor Non-Compliance Code: R ? Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management shall keep track of the balance in the residual receipts account available for offsetting Section 8 HAP payments. Response Indicator: Agree. Completion Date: 11/1/2020 Response: Management has implemented new restricted account review processes. A 9250 in the amount of $40,349 is being requested to authorize the offset to the November 2020 HAP. Questioned Costs ? Department of Housing and Urban Development $ 40,349

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) FINDING No. 2020-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All fixed asset additions. Sample Size Information: All fixed asset additions. Identification of Repeat Finding and Finding Reference Number: No. Criteria: Per HUD compliance requirements, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation and should only be used to pay for activities of the Project. Project funds cannot be loaned or used on nonproject purposes. Statement of Condition: The Project erroneously issued a reimbursement check to another project in the amount of $2,850 for land improvements that had been previously paid by the Project. Cause: A disbursement did not go through the appropriate review and approval process before payment. Effect or Potential Effect: Unauthorized use of project assets. Auditor Non-Compliance Code: H ? Unauthorized distribution of project assets. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should enhance their procedures to ensure that all invoices are in the name of the Project and the associated costs are reasonable and necessary. Response Indicator: Agree. Completion Date: 6/30/2021 Response: Management has implemented new approval process to ensure the projects are only paying their invoices. Questioned Costs ? Department of Housing and Urban Development $ 2,850 Total Questioned Costs ? Department of Housing and Urban Development $ 43,199

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2019-001: U.S. Department of Housing & Urban Development Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits. Sample Size Information: All replacement reserve deposits. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the required monthly deposit must be made to the Project?s reserve for replacement account. Statement of Condition: The Project underfunded the account by $436. Cause: The Project did not implement the increase in funding that became effective 5/1/2019. Effect or Potential Effect: Deficiently funded reserve for replacements. Auditor Non-Compliance Code: N ? Reserve for Replacements Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the correct amount is deposited in the replacement reserve account each month. Response Indicator: Agree. Completion Date: 8/09/2019 Response: The lender did not receive an approved 9250 from HUD until July 2019 and they will not process increases without it coming directly from HUD. The retro deposit increase was brought current with the August escrow deposit. Questioned Costs ? Department of Housing and Urban Development $ -

FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2019-002: U.S. Department of Housing & Urban Development Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All management fee expenses. Sample Size Information: All management fee expenses. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD, the Project shall only use funds as specified in the Regulatory Agreement and owes the management company fees at the rate specified in the Project Owner?s/Management Agent?s Certification (Form HUD-9839-B). Statement of Condition: As a result of an expired Form HUD-9839-B, the Project has been overcharged management fees, resulting in an unauthorized loan to the Management Company. Cause: The Project?s Form HUD-9839-B expired and a new one was not prepared nor approved by HUD. Effect or Potential Effect: The Project has made an unauthorized loan to the management company as a result of overpaying management fees. Auditor Non-Compliance Code: J ? Unauthorized Management Fees Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should implement procedures to monitor the expiration of HUD required documents to ensure timely preparation and approval. Response Indicator: Agree. Completion Date: 6/30/2020 Response: Management has retained the services of a consultant who currently is in the process of renewing all expired HUD documents. They will also ensure all documents are renewed timely going forward. Questioned Costs ? Department of Housing and Urban Development $ 55,653 Total Questioned Costs ? Department of Housing and Urban Development $ 55,653

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