Virginia Street Baptist Church d/b/a Woodland Heights Apartments

Out of 20 work orders, 4 work orders had taken over 30 days to complete and were not completed within a reasonable amount of time.

Management’s internal control structure and application of internal controls was insufficient during the year ended June 30, 2024. Specifically, activity related to collecting tenant rent throughout the year.

S3800-010 Finding Reference Number ? 2021-001 S3800-011 Title and CFDA Number of Federal Program ? 14.135 Section 221(d)(3) Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? Between 50 and 99 move-outs S3800-018 Sample Size Information ? 10 move-outs S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with HUD guidelines, security deposits are to be refunded within 30 days after the move-out date (or shorter time if required by state and/or local laws). S3800-030 Statement of Condition ? Out of 10 move-outs, 6 move-outs had refunds due to the tenant. 5 out of the 6 refundable security deposits were not refunded within the required 30 days. S3800-032 Cause ? Unknown S3800-033 Effect or Potential Effect ? The Corporation is in violation of its Regulatory Agreement with HUD. S3800-035 Auditor Non-Compliance Code ? M S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? A new system is in place to make sure security deposits are refunded within 30 days of the move-out date. S3800-050 Context ? Security deposits were not refunded in accordance with HUD. S3800-080 Recommendation ? Management should follow the newly implemented move-out and security deposit refund plan. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will follow the newly implemented move-out and security deposit refund plan.S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 202

S3800-010 Finding Reference Number ? 2020-001 S3800-011 Title and CFDA Number of Federal Program ? 14.135 Section 221(d)(3) Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with HUD guidelines, management is required to maintain the Project at an acceptable physical condition for renting to tenants. S3800-030 Statement of Condition ? The Project had a failing REAC physical inspection score on July 24, 2019 of 43c followed by another failing score on January 8, 2020 of 41c. Both had multiple health and safety violations. S3800-032 Cause ? Unknown S3800-033 Effect or Potential Effect ? The Project is in violation of HUD guidelines. Additionally, vacancy could increase if units are not at an acceptable condition to rent. S3800-035 Auditor Non-Compliance Code ? I S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? As of September 24, 2020, management has indicated all findings from the most recent REAC physical inspection have been corrected with the exception of the erosion on the basketball court for which repair bids have been obtained. Management has implemented a maintenance plan and property action inspection plan. S3800-050 Context ? The Project was not maintained at an acceptable level. S3800-080 Recommendation ? Management should follow the newly implemented maintenance plan and property action inspection plan. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will follow the newly implemented maintenance plan and property action inspection plan. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2020 S3800-150 Response ? Management will follow the newly implemented maintenance plan and property action inspection plan.

S3800-010 Finding Reference Number ? 2020-002 S3800-011 Title and CFDA Number of Federal Program ? 14.135 Section 221(d)(3) Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? 234 work orders during the audit period S3800-018 Sample Size Information ? 19 work orders received for testing S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with HUD guidelines, management is required to maintain the Project at an acceptable physical condition for renting to tenants. This includes timely completion of tenant submitted work orders. S3800-030 Statement of Condition ? Of the 19 work orders submitted for testing, 8 took a week or longer to complete without a reasonable explanation. Of these, four took between 28 and 59 days to complete. S3800-032 Cause ? Unknown S3800-033 Effect or Potential Effect ? The Project is in violation of HUD guidelines. Additionally, vacancy could increase if units are not at an acceptable condition to rent. S3800-035 Auditor Non-Compliance Code ? I S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? As of September 24, 2020, management has implemented a maintenance plan and property action inspection plan. S3800-050 Context ? The Project was not maintained at an acceptable level. S3800-080 Recommendation ? Management should follow the newly implemented maintenance plan and property action inspection plan. Work orders should be completed in a timely manner. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will follow the newly implemented maintenance plan and property action inspection plan. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? September 30, 2020 S3800-150 Response ? Management will follow the newly implemented maintenance plan and property action inspection plan.