CANYON VILLAGE SENIOR CITIZENS HOUSING, INC.

Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q – Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: Not applicable Statement of condition #2025-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred March 1, 2017. As of June 30, 2025, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Comments on the Finding and Each Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2025, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Action(s) taken or planned on the finding Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2024-001

Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: 12 monthly deposits to the reserve for replacements account. Sample size information: 12 monthly deposits to the reserve for replacements account. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $1,205 Statement of condition #2025-002: The Corporation did not make the total required reserve for replacement deposits during the year ended June 30, 2025, which resulted in the reserve for replacements account being underfunded by $1,205 as of June 30, 2025. Criteria: Pursuant to the Section 202 Regulatory Agreement and communications from HUD, the Corporation is required to make monthly deposits into a separate reserve for replacements account in the amounts specified by HUD. Effect: The Corporation is not in compliance with the Section 202 Regulatory Agreement and communications from HUD. The reserve for replacements account is underfunded by $1,205. Cause: The Corporation was required to make monthly reserve for replacement deposits of $1,360. The Corporation did not make the full monthly deposit of $1,360 for one month during the year. Recommendation: The management agent should transfer $1,205 from the operating account in order to bring the reserve for replacements account current. Completion date: August 26, 2025 Management response: Management agrees with the recommendation. Management transferred $1,205 from the operating account in order to bring the reserve for replacements account current on August 26, 2025. No further action is required.

Comments on the Finding and Each Recommendation: The Corporation did not make the total required reserve for replacement deposits during the year ended June 30, 2025, which resulted in the reserve for replacements account being underfunded by $1,205 as of June 30, 2025. The management agent should transfer funds of $1,205 from the operating account in order to bring the reserve for replacements account current. Action(s) taken or planned on the finding Management agrees with the recommendation. Management transferred $1,205 from the operating account to the reserve for replacements account on August 26, 2025. No further action is required.

Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q – Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: Not applicable Statement of condition #2024-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred March 1, 2017. As of June 30, 2024, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Comments on the Finding and Each Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2024, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Action(s) taken or planned on the finding Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2023-001

Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: B – Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $41,019 Statement of condition #2024-002: The Corporation's required deposit into the residual receipts account of $41,019, per the June 30, 2023 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal period end. Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement or communications that the Corporation has received from HUD. Cause: The Corporation did not make the required deposit within 90 days of the fiscal year end. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: October 30, 2023 Management response: Management agrees with the recommendation. Management deposited $41,019 into the residual receipts fund on October 30, 2023. No further action is required.

Comments on the Finding and Each Recommendation: The Corporation's required deposit into the residual receipts account of $41,019 per the June 30, 2023 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding Management agrees with the recommendation. Management deposited $41,019 into the residual receipts fund on October 30, 2023. No further action is required.

Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: N – Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: 12 monthly deposits to the reserve for replacements account. Sample size information: 12 monthly deposits to the reserve for replacements account. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $623 Statement of condition #2024-003: The Corporation did not make the total required reserve for replacement deposits during the year ended June 30, 2024. Additionally, the required monthly deposits for the period from August 1, 2022 through June 30, 2023 were not made in the amounts specified by HUD which resulted in the reserve for replacements account being underfunded by $623 as of June 30, 2024. Criteria: Pursuant to the Section 202 Regulatory Agreement and communications from HUD, the Corporation is required to make monthly deposits into a separate reserve for replacements account in the amounts specified by HUD. Effect: The Corporation is not in compliance with the Section 202 Regulatory Agreement and communications from HUD. The reserve for replacements account is underfunded by $623. Cause: The Corporation was not notified by HUD in a timely manner of the change in required monthly reserve for replacement deposits. Recommendation: The management agent should transfer $623 from the operating account in order to bring the reserve for replacements account current, and confirm with HUD monthly reserve for replacement deposits requirements at least annually. Completion date: September 25, 2024 Management response: Management agrees with the recommendation. Management transferred $623 from the operating account in order to bring the reserve for replacements account current on September 25, 2024. No further action is required.

Comments on the Finding and Each Recommendation: The Corporation did not make the total required reserve for replacement deposits during the year ended June 30, 2024. Additionally, the required monthly deposits for the period from August 1, 2022 through June 30, 2023 were not made in the amounts specified by HUD which resulted in the reserve for replacements account being underfunded by $623 as of June 30, 2024. The management agent should transfer funds of $623 from the operating account in order to bring the reserve for replacements account to current, and confirm with HUD monthly reserve for replacements deposits requirements at least annually. Action(s) taken or planned on the finding Management agrees with the recommendation. Management transferred $623 from the operating account to the reserve for replacements account on September 25, 2024. No further action is required.

Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q – Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: Not applicable Statement of condition #2023-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred March 1, 2017. As of June 30, 2023, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Comments on the Finding and Each Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2023, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Action(s) taken or planned on the finding Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2022-001

Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q - Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2022-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: Not applicable Repeat Finding: Yes. See Finding #2021-001. Statement of condition #2022-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2022, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Completion date: June 30, 2023 Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Finding #2022-001 Comments on Finding and Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2022, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Action(s) taken or planned on the finding: Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2021-001

Finding reference number: #2022-002 Assistance Listing title and number (federal award identification and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: B - Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $27,293 Statement of condition #2022-002 (Assistance Listing 14.164): The Corporation's required deposit into the residual receipts account of $27,293 per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal period end. Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement or communications that the Corporation has received from HUD. Cause: The Corporation did not make the required deposit within 90 days of the fiscal year end. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: February 16, 2022 Management response: Agree. Management deposited $27,293 into the residual receipts fund on February 16, 2022. No further action is required.

Finding #2022-002 Comments on Finding and Recommendation: The Corporation's required deposit into the residual receipts account of $27,293 per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding: Agree. Management deposited $27,293 into the residual receipts fund on February 16, 2022. No further action is required.

Finding reference number: #2021-001 Assistance Listing title and number (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q - Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2021-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: Not applicable Repeat Finding: Yes. See Finding #2020-001. Statement of condition #2021-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2021, the Flexible Subsidy Loan has not been repaid, and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Completion date: June 30, 2022 Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Finding #2021-001 Comments on Finding and Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2021, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Action(s) taken or planned on the finding: Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2020-001

Finding reference number: #2021-002 Assistance Listing title and number (federal award identification and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: B - Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $31,290 Statement of condition #2021-002 (Assistance Listing 14.164): The Corporation's required deposit into the residual receipts account of $31,290 per the June 30, 2020 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal period end. Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement or communications that the Corporation has received from HUD. Cause: The Corporation did not make the required deposit within 90 days of fiscal year end. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: December 2, 2020 Management response: Agree. Management deposited $31,290 into the residual receipts fund on December 2, 2020. No further action is required.

Finding #2021-002 Comments on Finding and Recommendation: The Corporation's required deposit into the residual receipts account of $31,290 per the June 30, 2020 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding: Agree. Management deposited $31,290 into the residual receipts fund on December 2, 2020. No further action is required.

Finding reference number: #2020-001 CFDA title and number (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, CFDA No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q - Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2020-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: Not applicable Repeat Finding: Yes. See Finding #2019-001. Statement of condition #2020-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2020, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Completion date: June 30, 2021 Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Finding # 2020-001 Comments on Finding and Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2020, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management has submitted a request for deferment of the Flexible Subsidy Loan. Action(s) taken or planned on the finding: Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2019-001

Finding reference number: #2019-001 CFDA title and number (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, CFDA No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: Q - Failure to make mortgage payments Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2019-001 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: Not applicable Statement of condition #2019-001: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2019, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Criteria: Pursuant to the terms of the Section 201 Flexible Subsidy Loan agreement, the Flexible Subsidy Loan is due in full upon maturity of the Section 202 mortgage loan. Effect: The Corporation is not in compliance with the Flexible Subsidy Loan agreement. Cause: The Flexible Subsidy Loan was not repaid in full upon maturity. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request. Recommendation: Management should continue communicating with HUD in order to obtain approval for the deferment request for the Section 201 Flexible Subsidy Loan. Completion date: June 30, 2020 Management's response: Agree. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

Name of auditee: Canyon Village Senior Citizens Housing, Inc. HUD auditee identification number: 109-SH-WY0-005 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2019 CAP prepared by Name: Evan McLaughlin Position: Director of Accounting Telephone number: (208) 947-8592 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Comments on the Finding and Each Recommendation Finding # 2019-001 Comments on Finding and Recommendation: The Corporation's Flexible Subsidy Loan was due in full upon maturity of the Corporation's Section 202 mortgage loan, which occurred in March 2017. As of June 30, 2019, the Flexible Subsidy Loan has not been repaid and the Corporation is in technical default on the Flexible Subsidy Loan. Management has submitted a request for deferment of the Flexible Subsidy Loan. Action(s) taken or planned on the finding: Management agrees with the recommendation. Management has submitted a request for deferment of the Flexible Subsidy Loan. Management is awaiting HUD approval of the deferment request.

2018-001

Finding reference number: #2019-002 CFDA title and number (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, CFDA No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: B - Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Noncompliance Information: See statement of condition #2019-002 for noncompliance information. Statistically valid sample: Not applicable Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,461 Statement of condition #2019-002: The Corporation's required deposit into the residual receipts account per the June 30, 2017 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal period ends. Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement or communications that the Corporation has received from HUD. Cause: Management is in the process of requesting deferment of the Flexible Subsidy Loan due to HUD. Management is waiting to make the required residual receipts deposit until they receive approval of the deferment request from HUD. Recommendation: In the future, management should make the required residual receipts deposit within 90 days of year end. The required deposit of $10,461 has been added to Line 13 of the Surplus Cash calculation. Completion Date: August 19, 2019 Management's response: Management made the residual receipts deposit on August 19, 2019.

Name of auditee: Canyon Village Senior Citizens Housing, Inc. HUD auditee identification number: 109-SH-WY0-005 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2019 CAP prepared by Name: Evan McLaughlin Position: Director of Accounting Telephone number: (208) 947-8592 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Comments on the Finding and Each Recommendation Finding # 2019-002 Comments on Finding and Recommendation: The Corporation's required deposit into the residual receipts account per the June 30, 2017 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Management should make the required residual receipts deposit within 90 days of year end. The required deposit of $10,461 has been added to Line 13 of the Surplus Cash calculation. Action(s) taken or planned on the finding: Management agrees with the recommendation and made the residual receipts deposit on August 19, 2019.

2018-003

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2017-001

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