SILVER LAKE HOUSING INC

Findings reference number: 2025-001 - Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 - Type of finding: Federal Award (Compliance) - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: Yes. - Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. - Condition: Review of the security deposit account showed that the balance as of December 31, 2025 was insufficient to cover the tenant security deposit liability. - Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account in a prior year and has not had the funds to replenish the account. - Effect: The Project may not be able to refund the security deposit for tenants moving out. - Noncompliance code: M. Security deposits. - Questioned costs: N/A. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114-11228 - Context: The funds were withdrawn in the prior year due to a shortfall of operating cash and the need for necessary repairs to the property. The Project has not had enough operating cash in the current year to replenish the withdrawal. - Recommendation: Management should transfer enough funds to the security deposit account to cover the tenant security deposit liability. - Auditee's Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures and Management plans to make a sizable request for funds in April 2026. If approved, management can fund the deficiency in the security deposits. Management is also going to request a Budget Based Rent increase in May 2026 for the property due to the extraordinary escalation of operating costs of the last three years. Management believes that with these steps it will be able to return to its previous cash flow position. - Completion date: 12.31.2026

Findings reference number: 2024-001 - Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 - Type of finding: Federal Award (Compliance) - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: Yes. - Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. - Condition: Review of the security deposit account showed that the balance as of December 31, 2024 was insufficient to cover the tenant security deposit liability. - Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. - Effect: The Project may not be able to refund the security deposit for tenants moving out. - Noncompliance code: M. Security deposits. - Questioned costs: N/A. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114-11228 - Context: The funds were withdrawn in the prior year due to a shortfall of operating cash and the need for necessary repairs to the property. The Project has not had enough operating cash in the current year to replenish the withdrawal. - Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability. - Auditee's Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures for the last two years to catch up on outstanding payables and fund the deficiency in the security deposits. Management is going to request a Budget Based Rent increase for the property since the OCAF increases for the last few years do not keep up with the extraordinary escalation of operating costs of the last three years. Management believes that with these steps it will be able to return to its previous cash flow position. - Completion date: 12.31.25

Findings reference number: 2023-001 Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes. Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. Condition: Review of the security deposit account showed that the balance as of December 31, 2023 was insufficient to cover the tenant security deposit liability. Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. Effect: The Project may not be able to refund the security deposit for tenants moving out. Noncompliance code: M. Security deposits. Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-11228 Context: The funds were withdrawn because of a shortfall of operating cash and need for necessary repairs to the property. Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability. Auditee's Response: Management has contacted the Property and Liability Broker about the high costs to insure the property. The Broker has agreed not to escalate the prices for the upcoming year. The reserve for replacement has ample funds to request reimbursements of qualified expenditures for the last two years to catch up on outstanding payables and fund the deficiency in the security deposits. Management is going to request a Budget Based Rent increase for the property since the OCAF increases for the last few years do not keep up with the extraordinary escalation of operating costs of the last three years. Management believes that with these steps it will be able to return to its previous cash flow position. Completion date: 12.31.24