Housing Commission

Housing Commission Meeting City Hall - Pre-Session Conference Room April 6, 2026 6:30 PM Agenda PUBLIC NOTICE In accordance with the Statutes of the State of Illinois and the Ordinances of the City of Highland Park, the next regular meeting of the City of Highland Park Housing Commission, the Peers Housing Association, Ravinia Housing Association, and Sunset Woods Association is scheduled to be held at the hour of 6:30 PM on Monday, April 6, 2026 and will take place at City Hall, Pres-Session Conference Room, 1707 St Johns Avenue, Highland Park, Illinois. Individuals with questions or feedback about an agenda item can address the Commission in the following ways: 1. Emails for the Record. Email Planner Zubin Coleman, the Housing Commission staff liaison. If you wish to have your comments read into the record, limit your communication to 200 words or less. Public comments received by 4:30 PM the day of the meeting will be read under Business from the Public. All emails received will be acknowledged at the meeting. Public comments should contain the following information: o In the subject line, identify, “Housing Commission Meeting – Read into the Record” o Name o City o Address (optional) o Phone (optional) o Organization, agency representing, if applicable. o Topic or agenda item number of interest 2. Emails with Unlimited Information. Individuals who do not wish to have their comments read into the record can email Senior Planner Zubin Coleman an unlimited number of words. Emails will be forwarded to the Housing Commission if requested. 3. Telephone. Individuals with no access to email may leave a message with Planner Zubin Coleman at 847.926.1853. 4. Live Comments. Individuals are able to address the Commission during the meeting. Questions/comments are limited to written testimony into the record or spoken comments, not both. Business from the Public is only listed on the Housing Commission Meeting Agenda. Comments should be limited to three minutes or less. The City encourages individuals to sign-up for its enews for important information from the City and its government partners. The City updates its website and social media daily. To sign-up for the enews, visit www.cityhpil.com. Page 1 of 276 The City, in compliance with the Americans with Disabilities Act, requests that persons with disabilities who require certain accommodations to allow them to observe and/or participate in this hearing, or who have questions about the accessibility of the meeting facilities, email the City’s ADA coordinator Emily Taub or call at 847.926.1005 I. Call to Order II. Roll Call III. Business from the Public (Individuals wishing to be heard regarding items not listed on this agenda) IV. Approval of Minutes A. March 4, 2026 Housing Commission Regular Meeting Draft Minutes V. Scheduled Business A. Items for Omnibus Vote Consideration • Payment of Invoices • Ratification of Payments B. Peers, Ravinia, Sunset Woods Associations, and HTF • Consideration of ERES Management Report and Financials • Sunset Woods Financials • Housing Trust Fund (HTF) Financials • Other Association Business 2025 Audits for Sunset Woods, Peers, and Ravinia Housing Associations Approval of Management Contract Renewals for ERES and HODC VI. Old Business A. Sunset Woods Mortgage Loan Options (continued) VII. New Business A. Request to Release Laurel Park Phase I Affordable Unit Declarations B. Examining Affordable Housing Eviction Policies VIII. Other Business A. Next Housing Commission Meeting, Wednesday, May 6, 2026 IX. Adjournment Page 2 of 276  MINUTES OF A REGULAR MEETING OF HOUSING COMMISSION OF THE CITY OF HIGHLAND PARK, ILLINOIS MEETING DATE: Wednesday, March 4, 2026 MEETING LOCATION: Council Chambers, City Hall, 1707 St. Johns Avenue, Highland Park, IL CALL TO ORDER At 6:32 p.m., Chairperson Fernandez Sykes called an on-site meeting of the Highland Park Housing Commission, Peers Housing Association, Ravinia Housing Association, and the Sunset Woods Association to order. Each of the Commissioners also serves as Directors of each of the Housing Associations. Public comments may be emailed to city@hpil.com or phoned into at 847.432.0867. The City web site is www.cityhpil.com. Staff was asked to call the roll. ROLL CALL Commissioners Present: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Commissioners Absent: Commissioners Rachman, Rosen, & Shapiro Kopin Councilmember Absent: Tapia Student Council Present: Rylee Sullivan Student Council Absent: Mitchell Posner Staff declared that a quorum was present. Staff Present: Coleman Guests Present: Irina Leykin, Regional Property Manager/ERES Amy Kaufman, Vice President/CPAH Richard Koenig, Executive Director/HODC Others Present: Gale Cerabona, Recorder BUSINESS FROM THE PUBLIC There was no Business from the Public. APPROVAL OF MINUTES Regular Meeting of the Housing Commission – January 7, 2026 Commissioner Farris moved to approve the January 7, 2026, regular meeting minutes. Commissioner Adland seconded the motion. On a voice vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Page 1 Housing Commission March 4, 2026 Page 3 of 276  MINUTES OF A REGULAR MEETING OF HOUSING COMMISSION OF THE CITY OF HIGHLAND PARK, ILLINOIS Chairperson Fernandez Sykes declared that the motion passed unanimously. SCHEDULED BUSINESS 1. Items for Omnibus Vote Consideration • Payment of Invoices Senior Planner Coleman advised there is nothing outstanding. • Ratification of Payments Senior Planner Coleman advised Peers’ annual State filing was due at the beginning of February. He distributed copies of checks. 2. Peers, Ravinia, Sunset Woods Associations, & Housing Trust Fund • Consideration of ERES Management Report and Financials Peers Ms. Leykin said the project for the sewer pipeline is on hold, as permanent repairs need to occur. She noted the contractor has reported same to the insurance company. Ms. Leykin advised all light fixtures were replaced to LED lights. Some HC comments are….. • Commissioner Adland asked if everyone has electricity. Ms. Leykin said yes, but it’s a temporary fix. She noted it would be fully repaired. The insurance company was brought in and acknowledged the issue. • Chairperson Fernandez Sykes asked how long this would take. Ms. Leykin advised it may be awhile. The concrete floor has to be repaired. Options are being considered. • Commissioner Adland asked if anyone would be displaced. Ms. Leykin said it depends on how the floor is opened. She noted those costs would possibly be absorbed. Ravinia Ms. Leykin shared Ravinia received a REAC (Real Estate Assessment Center) score of 98. • Sunset Woods Financials Ms. Leykin advised everything looks good. • Housing Trust Fund (HTF) Financials Senior Planner Coleman advised there is nothing outstanding. • Other Association Business Page 2 Housing Commission March 4, 2026 Page 4 of 276  MINUTES OF A REGULAR MEETING OF HOUSING COMMISSION OF THE CITY OF HIGHLAND PARK, ILLINOIS Senior Planner Coleman advised there is nothing outstanding. He stated Mr. Koenig is present tonight if there are any questions. There were none. OLD BUSINESS 1. Peers – House Rule Change to Consider No-Smoking Policy Change (tabled from December HC Meeting) Senior Planner Coleman reminded everyone of the issue from November, 2025 and explained same. The change would involve no smoking permitted inside the property. The motion previously failed to change the house rules, and the topic was tabled. He advised the properties Evergreen manages have a no- smoking policy with no real issues. Some HC comments are….. • Commissioner Beasley said she doesn’t see a point in having the rule, as it can’t be enforced; unnecessary. There is an issue with having residents going outside away from the front door. There is no plan on where snow would be placed, etc. • Commissioner Adland asked, and Senior Planner Coleman said it would eventually weed out those people who would be unhappy with the change, as new residents move in. • Commissioner Farris asked, and Senior Planner Coleman shared issues at other properties. • Commissioner Adland offered an example of an item smelling of smoke; could be degradation of the property. He is in favor of the rule change. • Commissioner Beasley said, regarding affordable housing, some may not move in due to these limitations. • Chairperson Fernandez Sykes asked, and Senior Planner Coleman said he would check about Sunset Woods’ policy. He indicated Walnut Place has a no-smoking policy. • Commissioner Beasley shared this was posed at an HC meeting years ago, and the HC voted against it. Senior Planner Coleman confirmed that was in 2019. • Commissioner Farris understands both sides. • Commissioner Beasley said residents can move out if they don’t like the rules. She expressed this is one’s home. She understands other residents’ discomfort. • Commissioner Farris said there is an onus on the HC to see what the best choice is for residents. A brief discussion took place about pets. Senior Planner Coleman reminded there is a 90-day period before a rule changes. Residents can come to an HC meeting and express their opinions. He advised the HC can also reverse a rule change. More HC comments are….. • Commissioner Beasley would be in favor if it occurs at the end of the year – with a one-year notice – or grandfather people in. She also understands both points of view. Senior Planner Coleman doesn’t believe residents would be evicted for smoking in a non-smoking building. This proposal would eliminate smoking in one’s dwelling. It is already in place to not smoke in common areas. He explained an area 15’ away would be designated. • Chairperson Fernandez Sykes said more questions need to be answered. • Commissioner Farris said the notice period of 90 days is not the issue. It’s when it’s implemented. • Commissioner Adland said federal housing is smoke-free. Page 3 Housing Commission March 4, 2026 Page 5 of 276  MINUTES OF A REGULAR MEETING OF HOUSING COMMISSION OF THE CITY OF HIGHLAND PARK, ILLINOIS • Chairperson Fernandez Sykes would like to have more information presented. • Commissioner Adland would like to discuss this next month. He noted this isn’t urgent. Commissioner Beasley moved to table this until the May HC meeting. Commissioner Adland seconded the motion. On a roll call vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Senior Planner Coleman declared that the motion passed unanimously. NEW BUSINESS 1. Resolution Approving 2026 CPAH Scattered-Site Grant Agreement 2. Resolution Approving 2026 CPAH Operating Grant Agreement Senior Planner Coleman explained the annual operating and scattered-site grants and process. He noted these are typically approved in February. The scattered site grant will now be $100,000 for 3 homes. Senior Planner Coleman introduced Amy Kaufman, Vice President of CPAH, who expounded on same. Commissioner Farris moved to approve the CPAH Scattered Site Agreement. Commissioner Beasley seconded the motion. On a roll call vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Chairperson Fernandez Sykes declared that the motion passed unanimously. Commissioner Beasley moved to approve the CPAH Operating Grant Agreement. Commissioner Farris seconded the motion. On a roll call vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Chairperson Fernandez Sykes declared that the motion passed unanimously. 3. Resolution Approving CCHI Grant Agreement Draw Request 1 for Affordable Housing 4. Resolution Approving CCHI Grant Agreement Draw Request 2 for Affordable Housing 5. Resolution Approving CCHI Grant Agreement Draw Request 3 for Affordable Housing 6. Resolution Approving CCHI Grant Agreement Draw Request 4 for Affordable Housing Senior Planner Coleman reminded that CCHI partnered with HODC for a 47-unit disabled affordable- housing development at 1651 Richfield Road. He expounded. Restrictive covenants have been signed. They will be recorded with the County. Page 4 Housing Commission March 4, 2026 Page 6 of 276  MINUTES OF A REGULAR MEETING OF HOUSING COMMISSION OF THE CITY OF HIGHLAND PARK, ILLINOIS Commissioner Farris asked and Richard Koenig said all 47 units have been sold. The end target is August. Commissioner Beasley moved to approve the CCHI Grant Agreement Draw Requests 1-4 for Affordable Housing. Commissioner Farris seconded the motion. On a roll call vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Chairperson Fernandez Sykes declared that the motion passed unanimously. 7. Ravinia Housing Association Fund Account Management Senior Planner Coleman reminded about Ravinia and Peers’ accounts to attain higher interest (on CD, money market accounts, etc.). He explained the process that includes improvement plans, capital expenditures, etc. After discussion with bankers, Staff recommends a 23-month CD account that takes advantage of a fixed interest rate of 3.25%. Some HC comments are….. • Commissioner Adland: o asked about the emergency clause; more concrete language. Senior Planner Coleman discussed early withdrawals, etc. o said, based on the bank’s reputation, he believes this would be okay. • Commissioner Farris said this is a better option to get more for the money. Commissioner Adland moved to approve the Ravinia account into a CD. Commissioner Farris seconded the motion. On a roll call vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Chairperson Fernandez Sykes declared that the motion passed unanimously. 8. Sunset Woods Mortgage Loan Options Senior Planner Coleman explained the current mortgage with the First Bank of Highland Park. He noted the loan matures in April, 2027. Options are to renew, discuss different terms, or go out to bid with a new bank. This has been renewed twice. Some HC comments are….. • Commissioner Farris asked, and Senior Planner Coleman said the bid process takes awhile. A renewal is simple. The same terms would apply. • Commissioner Adland: o said it sounds reasonable. He asked if it is principal and interest. Senior Planner Coleman will check. o asked, and Senior Planner Coleman stated he would review the loan to value, etc. Page 5 Housing Commission March 4, 2026 Page 7 of 276  MINUTES OF A REGULAR MEETING OF HOUSING COMMISSION OF THE CITY OF HIGHLAND PARK, ILLINOIS • Commissioner Adland asked about informal discounts with other banks. Senior Planner Coleman said the process needs to be fair and transparent. • Chairperson Fernandez Sykes asked what the harm is in going out to bid. Discussion took place. Senior Planner Coleman asked that further questions be emailed to him so he can discuss same with the bank representative. Commissioner Beasley moved to table the loan renewal until the April HC meeting. Commissioner Farris seconded the motion. On a roll call vote: Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Chairperson Fernandez Sykes declared that the motion passed unanimously. OTHER BUSINESS 1. Next Housing Commission Meeting, Monday, April 6, 2026 The next HC Meeting is scheduled for Monday, April 6, 2026. 2. Introduction – New Student Representative, Rylee Sullivan Senior Planner Coleman introduced new Student Representative, Rylee Sullivan, who offered a brief background. She is a Junior at Highland Park High School and shared, this opportunity made her very excited, as she wants to know more about government and affordable housing. Everyone welcomed her. Senior Planner Coleman reminded the other Student Representative, Mitchell Posner, will be with the HC until May, 2026. ADJOURNMENT Commissioner Beasley moved to adjourn at 7:29 p.m. Commissioner Farris seconded the motion. On a roll call vote Voting Yea: Chairperson Fernandez Sykes; Commissioners Adland, Beasley, & Farris Voting Nay: None Chairperson Fernandez Sykes declared that the motion passed unanimously. Respectfully Submitted, Gale Cerabona Recorder MINUTES OF A REGULAR MEETING ON JANUARY 7, 2026, WERE APPROVED WITHOUT CORRECTIONS. Page 6 Housing Commission March 4, 2026 Page 8 of 276  MEMORANDUM TO: Highland Park Housing Commission FROM: Irina Leykin and Harold Eich RE: March 2026 Management Report and February 2026 Financials DATE: April 2, 2026 FRANK B. PEERS Operations • Sewer lateral replacement project has been paused pending permanent repairs. One unit is known to be affected, but has temporary power supply. GPRS will be responsible for permanent repairs and is currently reviewing quotes from electricians and plumbers. There may be more units affected once they uncover the conduit pipes by removing the concrete around them. When they determine the amount of damage to the conduit pipes those pipes will be replaced. • Unit inspections were completed for the entire building and onsite team addressed all work identified during inspection. • Annual fire alarm, wet sprinkler, and backflow testing passed inspections. Occupancy • At present, there are no vacancies. Financial • Net Operating Income (NOI) in February was positive to budget by $17,140 MTD and YTD NOI was positive to budget by $26,220. Cash carry over was at $1,440,222. Debt Service Coverage Ratio for February was 2.77. Income • Income was positive to budget MTD by $232 and negative ($163) YTD. Expense • Expense line items which were significantly over budget (more than $1,000 YTD) include: o Union benefits – December 2025 invoice was processed in January. o Utilities - Negative variance is due to accruals. The accounts will balance out closer to the end of the year. o Capital expenditures – Deposit for pipe replacement. The expense was not budgeted but approved by the Housing Commission. Social Programming • Yoga class on Thursdays. 566 Lake Street, Suite 400 Phone: 312-234-9400 Chicago, IL 60661 Fax: 312-382-3220 Page 9 of 276  Page 2 • Social Services Coordinator works 2 days a week to assist residents of Frank B Peers Senior Housing. RAVINIA HOUSING Operations • Pump pits were pumped and cleaned. • Annual fire extinguisher inspections were completed at both locations. Occupancy • At present, there are no vacancies. Financial • Net Operating Income (NOI) in February was positive to budget by $4,08 MTD and YTD NOI was positive to budget by $9,661. Cash carry over was at $13,314. • Debt Service Coverage Ratio for February was 4.84. Income • Income was positive to budget MTD by $74 and positive to budget by $1,962 YTD. Expense • Expense line items which were significantly over budget (more than $1,000 YTD) include: None Evergreen Real Estate Group Page 10 of 276  Accounts Receivable Update February 2026 Frank B. Peers (68 units) Tenant A/R decreased from $35.90 at the end of January to $22.99 at the end of February. Subsidy A/R Increased from $4,184 at the end of January to $5,901 at the end of February. Tenant delinquency includes: Current delinquency: $0 Ravinia Housing (17 units) Tenant A/R decreased from $712.47 at the end of January to $633.47 at the end of February. Subsidy A/R Increased from $493 at the end of January to $994 at the end of February. Tenant delinquency includes: Current delinquency: $1,701 (5 tenants) 30-day delinquency: $112 (1 tenant) Three tenants signed payment plans and one tenant is in legal. **Note** These charges fluctuate from month to month. If a resident pays rent late or not at all, it causes the Tenant A/R to increase the following month. With regard to the subsidy A/R, we request the rent from HUD, 1 month in advance. For Example: On July 1st, we send our HAP/Voucher subsidy request to HUD, for the month of June. Because of this, activities like move-ins, move-outs or certifications, will affect the subsidy A/R balance; causing it to increase or decrease. Tenants that have entered into repayment agreements would create A/R balances for either the tenant or subsidy ledgers as well, as the property is required to pay back the incorrect amount received by HUD due to the error, and then collect that amount directly from the resident as part of their repayment agreement. Page 11 of 276  FRANK B. PEERS HOUSING Balance Sheet Month Ending Month Ending Month Ending 12/31/25 01/31/26 02/28/26 Actual Actual ASSETS Current Assets 1110-0000 - Petty Cash 200.00 200.00 200.00 1121-0000 - Cash - Operating 1,364,482.03 1,376,179.50 1,440,221.58 1130-0000 - Tenant/member accounts receivable 0.00 35.90 22.99 1131-0000 - Accounts receivable - subsidy 488.00 4,184.00 5,901.00 1240-0000 - Prepaid property and liability insurance 67,559.17 57,957.43 48,355.69 Total Current Assets 1,432,729.20 1,438,556.83 1,494,701.26 Other Assets 1290-0000 - Misc Prepaid Expenses 887.37 591.54 295.71 1192-0000 - Tenant Sec Dep 34,542.32 24,382.37 24,931.32 1310-0000 - Real estate tax escrow 21,710.56 21,927.78 21,927.78 1311-0000 - Insurance escrow 28,562.07 39,095.90 49,104.83 1330-0000 - Debt Service Escrow 167,429.88 169,105.09 169,105.09 1140-0000 - Accounts Receivable - Other 14,974.14 14,974.14 0.00 1320 - Replacement Reserve 230,402.84 234,436.75 236,210.30 1340 - Residual Receipt 15,686.61 15,843.57 15,843.57 Total Other Assets 514,195.79 520,357.14 517,418.60 Fixed Assets 1420-0000 - Building 1,796,875.15 1,796,875.15 1,796,875.15 1420-0001 - Building Improvements 2,354,041.52 2,354,041.52 2,354,041.52 1430-0000 - Land Improvements 1,535,414.79 1,535,414.79 1,535,414.79 1440-0000 - Building Equipment Portable 189,686.00 189,686.00 189,686.00 1450-0000 - Furniture for project/tenant use 768,491.60 768,491.60 768,491.60 1497-0000 - Site improvements 363,370.04 363,370.04 363,370.04 4120-0000 - Accum depr - buildings (4,915,281.03) (4,915,281.03) (4,915,281.03) 1498-0000 - Current F/A 0.00 17,750.87 17,750.87 Total Fixed Assets 2,092,598.07 2,110,348.94 2,110,348.94 Financing Costs 1900-0001 - Deferred Financing Costs 192,398.85 192,398.85 192,398.85 1999-0000 - Accum Amort - Bond Costs (153,575.22) (153,575.22) (153,575.22) Total Financing Costs 38,823.63 38,823.63 38,823.63 Partnership Assets 1701-0000 - Cash - Partnership 14,829.86 14,829.86 14,829.86 1703-0000 - Partnership Receivable 45,681.19 45,681.19 45,681.19 Total Partnership Assets 60,511.05 60,511.05 60,511.05 Page 12 of 276  FRANK B. PEERS HOUSING Balance Sheet Month Ending Month Ending Month Ending 12/31/25 01/31/26 02/28/26 Actual Actual 1702 Partnership MM 1702-0000 - Partnership MM 721.65 70.80 53.97 Total 1702 Partnership MM 1,078,320.70 1,078,391.50 1,078,445.47 Total Assets 5,217,178.44 5,246,989.09 5,300,248.95 Page 13 of 276  FRANK B. PEERS HOUSING Balance Sheet Month Ending Month Ending Month Ending 12/31/25 01/31/26 02/28/26 Actual Actual Liabilities & Equity Current Liabilities 2110-0000 - Accounts payable 814.29 1,844.12 771.86 2114-0000 - 401K Payable 280.67 280.67 280.67 2120-0000 - Accrued wages and p/r taxes payable 15,341.77 6,818.56 6,818.56 2130-0000 - Accrued interest - mortgage 11,303.60 11,231.35 11,158.75 2180-0000 - Misc current liabilities 25,684.54 19,546.16 22,821.30 Total Current Liabilities 53,424.87 39,720.86 41,851.14 Non-Current Liabilities 2320-0000 - Mortgage Payable (long term) 59,104.24 44,436.98 29,697.47 2191-0000 - Security deposits-residential 21,882.00 21,732.00 21,880.00 2191-0001 - Pet Deposit 900.00 950.00 950.00 2210-0000 - Prepaid Rent 1,740.21 1,544.55 1,176.34 2211-0000 - Prepaid HUD 13,256.00 15,397.00 16,307.00 2320-1000 - Mortgage payable - 2nd note 2,290,000.00 2,290,000.00 2,290,000.00 Total Non-Current Liabilities 2,386,882.45 2,374,060.53 2,360,010.81 Owner's Equity 3100-0000 - Limited Partners Equity 2,370,665.90 2,370,665.90 2,370,665.90 3209-0000 - Prior Year Retained Earnings (183,281.23) (183,281.23) (183,281.23) 3210-0000 - Retained earnings 543,890.34 589,486.45 645,823.03 Current Month Earnings 45,596.11 56,336.58 65,179.30 Total Owner's Equity 2,776,871.12 2,833,207.70 2,898,387.00 Total Liability & Owner Equity 5,217,178.44 5,246,989.09 5,300,248.95 Page 14 of 276  FRANK B. PEERS HOUSING Actual vs Budget Accrual Operating Statement Month Ending Year To Date Year Ending 02/28/26 02/28/26 12/31/26 Actual Budget Variance Actual Budget Variance Annual Budget GROSS OPERATING INCOME RESIDENTIAL RENTAL INCOME 5120-0000 - Apartment rent 22,336.00 125,549.00 (103,213.00) 46,627.00 251,098.00 (204,471.00) 1,506,588.00 5121-0000 - Tenant assistant payments 103,213.00 (0.00) 103,213.00 204,471.00 (0.00) 204,471.00 (0.00) 5140-0000 - Commercial base rent 60.00 60.00 0.00 120.00 120.00 0.00 720.00 TOTAL RESIDENTIAL RENTAL INCOME 125,609.00 125,609.00 0.00 251,218.00 251,218.00 0.00 1,507,308.00 VACANCIES & ADJUSTMENTS 5220-0000 - Vacancy loss - apartments (201.00) (751.00) 550.00 (2,683.00) (1,502.00) (1,181.00) (9,012.00) TOTAL VACANCIES & ADJUSTMENTS (201.00) (751.00) 550.00 (2,683.00) (1,502.00) (1,181.00) (9,012.00) OTHER INCOME 5910-0000 - Laundry income 0.00 166.67 (166.67) 520.20 333.34 186.86 2,000.04 5920-0000 - Nsf check fee 25.00 25.00 0.00 25.00 25.00 0.00 75.00 5990-0000 - Misc other income 37.00 186.67 (149.67) 74.00 373.34 (299.34) 2,240.04 5410-0000 - Interest Income Project Operations 0.95 3.00 (2.05) 2.00 6.00 (4.00) 36.00 5413-0000 - Interest income - escrow 0.00 (0.00) 0.00 4,834.65 3,700.00 1,134.65 18,100.00 TOTAL OTHER INCOME 62.95 381.34 (318.39) 5,455.85 4,437.68 1,018.17 22,451.08 GROSS OPERATING INCOME 125,470.95 125,239.34 231.61 253,990.85 254,153.68 (162.83) 1,520,747.08 ADVERTISING & RENTING EXPENSE 6211-0000 - Marketing/Promotions/Advertising 0.00 453.00 453.00 0.00 453.00 453.00 453.00 6253-0000 - Credit Report Fees 51.00 34.00 (17.00) 51.00 68.00 17.00 408.00 TOTAL ADVERTISING & RENTING EXPENSE 51.00 487.00 436.00 51.00 521.00 470.00 861.00 ADMINISTRATIVE EXPENSE 6311-0000 - Office supplies 0.00 334.17 334.17 428.12 668.34 240.22 4,010.04 6316-0000 - Office Equipment 67.85 410.00 342.15 786.87 820.00 33.13 4,920.00 6320-0000 - Management fee 6,414.00 6,553.42 139.42 12,752.68 13,106.84 354.16 78,641.04 6340-0000 - Legal Expense - Project 0.00 500.00 500.00 0.00 500.00 500.00 1,000.00 6350-0000 - Audit Expense 0.00 0.00 0.00 0.00 0.00 0.00 12,070.00 6360-0000 - Telephone/Internet/Cable/Cellphones 774.49 733.00 (41.49) 1,869.73 1,466.00 (403.73) 8,796.00 6360-0001 - Answering Service/ Pagers 141.35 76.00 (65.35) 141.35 152.00 10.65 912.00 6365-0000 - Training & Education Expense 0.00 0.00 0.00 0.00 0.00 0.00 2,488.00 6370-0000 - Bad debts 33.00 0.00 (33.00) 33.00 250.00 217.00 1,000.00 6371-0000 - Fees Dues & Contributions 0.00 400.00 400.00 1,152.00 1,100.00 (52.00) 1,800.00 6380-0000 - Consulting/study costs 0.00 0.00 0.00 0.00 0.00 0.00 3,360.00 6390-0000 - Misc administrative expenses 365.93 313.00 (52.93) 901.16 726.00 (175.16) 4,256.00 6391-0000 - Property Management Software Fees 488.81 353.00 (135.81) 741.40 706.00 (35.40) 4,416.00 6392-0000 - Computer Supplies/Data Processing 66.84 56.08 (10.76) 134.40 112.16 (22.24) 672.96 6395-0000 - Tenant Retention 0.00 400.00 400.00 (1,204.43) 800.00 2,004.43 4,800.00 6431-0000 - Travel & Expense Reimbursement 0.00 50.00 50.00 0.00 100.00 100.00 600.00 6851-0000 - Bank Service Fees 0.00 17.00 17.00 5.35 34.00 28.65 204.00 6860-0000 - Security Deposit Interest 0.06 6.00 5.94 0.13 12.00 11.87 68.00 TOTAL ADMINISTRATIVE EXPENSE 8,352.33 10,201.67 1,849.34 17,741.76 20,553.34 2,811.58 134,014.04 PAYROLL & RELATED COSTS 6310-0000 - Office salaries 7,207.02 7,227.00 19.98 14,409.08 14,454.00 44.92 96,726.00 Page 15 of 276  FRANK B. PEERS HOUSING Actual vs Budget Accrual Operating Statement Month Ending Year To Date Year Ending 02/28/26 02/28/26 12/31/26 Actual Budget Variance Actual Budget Variance Annual Budget 6510-0000 - Janitor and cleaning payroll 3,092.25 2,831.00 (261.25) 6,150.80 5,662.00 (488.80) 36,802.00 6540-0000 - Repairs payroll 4,542.28 3,738.00 (804.28) 8,741.74 7,476.00 (1,265.74) 48,592.00 6900-0000 - Social Service Coordinator 1,273.33 2,846.61 1,573.28 3,289.16 5,693.22 2,404.06 34,159.32 6715-0000 - Payroll Taxes 1,767.50 1,651.00 (116.50) 3,606.32 3,331.00 (275.32) 16,348.00 6722-0000 - Workers compensation 295.83 296.00 0.17 591.66 592.00 0.34 3,714.00 6723-0000 - Employee Health Ins/Other Benefits (955.61) 1,561.00 2,516.61 (348.06) 3,122.00 3,470.06 20,156.00 6724-0000 - Union Benefits 180.08 2,458.67 2,278.59 5,653.36 4,917.34 (736.02) 29,504.04 6726-0001 - Contingency 0.00 0.00 0.00 0.00 0.00 0.00 5,688.00 TOTAL PAYROLL & RELATED COSTS 17,402.68 22,609.28 5,206.60 42,094.06 45,247.56 3,153.50 291,689.36 OPERATING EXPENSES 6515-0000 - Janitors and cleaning supplies 209.16 250.00 40.84 227.62 500.00 272.38 3,000.00 6518-0000 - Uniforms 0.00 0.00 0.00 0.00 0.00 0.00 500.00 6519-0000 - Exterminating Contract 112.00 146.00 34.00 194.00 292.00 98.00 1,752.00 6520-0000 - Miscellaneous Repair Contractors 764.03 1,350.00 585.97 764.03 2,700.00 1,935.97 16,200.00 6525-0000 - Rubbish removal 0.00 700.00 700.00 668.91 1,400.00 731.09 8,400.00 TOTAL OPERATING EXPENSES 1,085.19 2,446.00 1,360.81 1,854.56 4,892.00 3,037.44 29,852.00 UTILITIES 6450-0000 - Electricity 1,496.34 1,296.00 (200.34) 3,692.75 2,556.00 (1,136.75) 17,575.00 6451-0000 - Water & Sewer 2,085.72 2,510.00 424.28 3,963.98 7,525.00 3,561.02 35,956.00 6452-0000 - Gas 5,625.01 4,104.00 (1,521.01) 9,550.14 7,181.00 (2,369.14) 24,859.00 TOTAL UTILITIES 9,207.07 7,910.00 (1,297.07) 17,206.87 17,262.00 55.13 78,390.00 MAINTENANCE EXPENSES 6536-0000 - Ground supplies & Equipment Repairs 0.00 0.00 0.00 0.00 0.00 0.00 1,000.00 6537-0000 - Grounds Contractor (Landscaper) 0.00 0.00 0.00 0.00 0.00 0.00 11,000.00 6541-0000 - Repair & Maintenance Supplies 301.54 1,483.33 1,181.79 1,225.98 2,966.66 1,740.68 17,799.96 6545-0000 - Elevator Contractor (Annual Maintenance Con- 0.00 450.00 450.00 465.21 900.00 434.79 7,400.00 tract) 6546-0000 - Heating/Cooling/Boiler Contract Repair & Sup- 1,533.97 2,375.00 841.03 3,620.72 4,750.00 1,129.28 28,500.00 plies 6548-0000 - Snow removal 0.00 2,967.00 2,967.00 2,966.25 5,934.00 2,967.75 12,368.00 6560-0000 - Decorating (Tenant Pntg-Cycle/Turnover by 0.00 700.00 700.00 1,400.00 1,400.00 0.00 8,400.00 Contractor) 6560-0001 - Decorating (Common areas - by Contractor) 0.00 0.00 0.00 0.00 1,500.00 1,500.00 6,000.00 6563-0000 - Window Covering 0.00 0.00 0.00 0.00 0.00 0.00 600.00 6581-0000 - Window Washing 0.00 0.00 0.00 0.00 0.00 0.00 2,200.00 6582-0000 - Fire Protection & Fire Equipment 716.00 250.00 (466.00) 716.00 2,230.00 1,514.00 18,490.00 6595-0000 - Plumbing Repairs 449.00 2,225.00 1,776.00 688.00 4,450.00 3,762.00 26,700.00 6596-0000 - Floor Repairs/Cleaning 0.00 0.00 0.00 0.00 0.00 0.00 1,800.00 6598-0000 - Roof Repairs 0.00 0.00 0.00 0.00 0.00 0.00 250.00 TOTAL MAINTENANCE EXPENSES 3,000.51 10,450.33 7,449.82 11,082.16 24,130.66 13,048.50 142,507.96 TAXES AND INSURANCE 6720-0000 - Property and liability insurance 9,601.74 11,505.42 1,903.68 19,203.48 23,010.84 3,807.36 143,592.20 TOTAL TAXES AND INSURANCE 9,601.74 11,505.42 1,903.68 19,203.48 23,010.84 3,807.36 143,592.20 TOTAL OPERATING EXPENSES 48,700.52 65,609.70 16,909.18 109,233.89 135,617.40 26,383.51 820,906.56 NET OPERATING INCOME (LOSS) 76,770.43 59,629.64 17,140.79 144,756.96 118,536.28 26,220.68 699,840.52 Page 16 of 276  FRANK B. PEERS HOUSING Actual vs Budget Accrual Operating Statement Month Ending Year To Date Year Ending 02/28/26 02/28/26 12/31/26 Actual Budget Variance Actual Budget Variance Annual Budget FINANCIAL EXPENSES 6820-0000 - Mortgage interest 11,158.76 11,158.75 (0.01) 22,390.12 22,390.11 (0.01) 129,969.63 6850-0000 - Mortgage Service Fee 486.34 486.00 (0.34) 975.73 975.00 (0.73) 5,667.00 TOTAL FINANCIAL EXPENSES 11,645.10 11,644.75 (0.35) 23,365.85 23,365.11 (0.74) 135,636.63 NET OPER INC/(LOSS) BEFORE CAP. EXP. 65,125.33 47,984.89 17,140.44 121,391.11 95,171.17 26,219.94 564,203.89 Partnership Income 8005-0000 - Mortgagor Entity Income 63.97 0.00 63.97 134.77 0.00 134.77 0.00 8010-0000 - Other Entity Expense (10.00) (0.00) (10.00) (10.00) (0.00) (10.00) (0.00) Total Partnership Activity 53.97 (0.00) 53.97 124.77 (0.00) 124.77 (0.00) NET INCOME (LOSS) 65,179.30 47,984.89 17,194.41 121,515.88 95,171.17 26,344.71 564,203.89 Cash Flow - Financing Activities 7104-0000 - Replacement Reserve 1,773.55 2,000.00 226.45 3,547.10 4,000.00 452.90 24,000.00 7108-0000 - Mortgage Payable (long term) 14,739.51 14,740.00 0.49 29,406.77 29,407.00 0.23 180,804.00 Total Cash Flow - Financing Activities 16,513.06 16,740.00 226.94 32,953.87 33,407.00 453.13 204,804.00 CAPITAL EXPENDITURES & ESCROWS 6991-0000 - Capital expenditures 0.00 0.00 0.00 13,250.00 0.00 (13,250.00) 0.00 6991-0005 - Bath - Rehab 0.00 0.00 0.00 0.00 6,000.00 6,000.00 12,000.00 6991-0006 - Kitchen - Rehab 0.00 0.00 0.00 0.00 0.00 0.00 10,000.00 6993-0001 - Appliances 0.00 0.00 0.00 1,730.00 1,700.00 (30.00) 6,400.00 6993-0003 - A/C Replacements 0.00 0.00 0.00 0.00 0.00 0.00 1,500.00 6994-0000 - Carpet & tile 0.00 0.00 0.00 2,770.87 2,000.00 (770.87) 12,000.00 TOTAL CAPITAL EXPENDITURES & ESCROWS 0.00 0.00 0.00 17,750.87 9,700.00 (8,050.87) 41,900.00 GAIN/(LOSS) AFTER CAPITAL EXP. & ESCROWS 48,666.24 31,244.89 17,421.35 70,811.14 52,064.17 18,746.97 317,499.89 Debt Service Coverage Ratio 2.77 2.14 0.63 2.62 2.12 0.50 2.09 Page 17 of 276  RAVINIA HOUSING Balance Sheet Month Ending Month Ending Month Ending 12/31/25 01/31/26 02/28/26 Actual Actual ASSETS Current Assets 1110-0000 - Petty Cash 628.40 200.00 200.00 1121-0000 - Cash - Operating 16,248.54 14,823.82 13,313.57 1130-0000 - Tenant/member accounts receivable 900.69 712.47 633.47 1131-0000 - Accounts receivable - subsidy 87.00 493.00 994.00 1240-0000 - Prepaid property and liability insurance 24,109.49 20,684.59 17,259.69 1250-0000 - Prepaid Mortgage Insurance 330.81 220.55 110.29 Total Current Assets 42,304.93 37,134.43 32,511.02 Other Assets 1290-0000 - Misc Prepaid Expenses 217.36 146.11 74.86 1192-0000 - Tenant Sec Dep 9,300.15 9,290.54 9,280.89 1311-0000 - Insurance escrow 20,500.74 24,268.20 28,035.66 1312-0000 - Mortgage Insurance Escrow 1,284.78 1,395.05 1,505.32 1320 - Replacement Reserve 30,037.82 31,813.77 33,657.82 Total Other Assets 61,340.85 66,913.67 72,554.55 Fixed Assets 1420-0000 - Building 1,048,224.20 1,048,224.20 1,048,224.20 1420-0001 - Building Improvements 358,188.56 358,188.56 358,188.56 1430-0000 - Land Improvements 327,439.75 327,439.75 327,439.75 1450-0000 - Furniture for project/tenant use 483,247.58 483,247.58 483,247.58 1497-0000 - Site improvements 278,198.79 278,198.79 278,198.79 1499-0000 - Accumulated Depreciation 13,201.56 13,201.56 13,201.56 4120-0000 - Accum depr - buildings (2,234,964.46) (2,234,964.46) (2,234,964.46) 1498-0000 - Current F/A 0.90 0.90 658.30 Total Fixed Assets 273,536.88 273,536.88 274,194.28 Financing Costs 1900-0001 - Deferred Financing Costs 62,658.71 62,658.71 62,658.71 1999-0000 - Accum Amort - Bond Costs (26,983.30) (26,983.30) (26,983.30) Total Financing Costs 35,675.41 35,675.41 35,675.41 Partnership Assets 1701-0000 - Cash - Partnership 176,125.52 176,140.00 176,153.51 Total Partnership Assets 176,125.52 176,140.00 176,153.51 Total Assets 588,983.59 589,400.39 591,088.77 Page 18 of 276  RAVINIA HOUSING Balance Sheet Month Ending Month Ending Month Ending 12/31/25 01/31/26 02/28/26 Actual Actual Liabilities & Equity Current Liabilities 2110-0000 - Accounts payable 82.13 281.41 291.92 2120-0000 - Accrued wages and p/r taxes payable 3,603.91 1,601.74 1,601.74 2130-0000 - Accrued interest - mortgage 1,089.42 1,085.59 1,085.59 2131-0000 - Accrued Interest Bank Loans 1,165.11 1,165.11 1,165.11 2131-0001 - Accrued Interest - 2nd Note 10,498.21 10,498.21 10,498.21 2180-0000 - Misc current liabilities 1,334.05 1,061.30 1,165.31 Total Current Liabilities 17,772.83 15,693.36 15,807.88 Non-Current Liabilities 2320-0000 - Mortgage Payable (long term) 290,511.99 289,491.07 288,466.32 2191-0000 - Security deposits-residential 8,400.00 8,400.00 8,400.00 2191-0001 - Pet Deposit 300.00 300.00 300.00 2210-0000 - Prepaid Rent 3,589.06 2,766.81 2,149.82 2211-0000 - Prepaid HUD 3,537.00 2,302.00 2,627.00 2320-1000 - Mortgage payable - 2nd note 459,322.72 459,322.72 459,322.72 2390-0000 - Miscellaneous Liability 14,974.14 14,974.14 0.00 Total Non-Current Liabilities 780,634.91 777,556.74 761,265.86 Partnership Liabilities 2901-0000 - Partnership Payable 37,428.48 37,428.48 37,428.48 Total Partnership Liabilities 37,428.48 37,428.48 37,428.48 Owner's Equity 3100-0000 - Limited Partners Equity 25,462.78 25,462.78 25,462.78 3209-0000 - Prior Year Retained Earnings (330,966.71) (330,966.71) (330,966.71) 3210-0000 - Retained earnings 52,862.07 58,651.30 64,225.74 Current Month Earnings 5,789.23 5,574.44 17,864.74 Total Owner's Equity (246,852.63) (241,278.19) (223,413.45) Total Liability & Owner Equity 588,983.59 589,400.39 591,088.77 Page 19 of 276  RAVINIA HOUSING Actual vs Budget Accrual Operating Statement Month Ending Year To Date Year Ending 02/28/26 02/28/26 12/31/26 Actual Budget Variance Actual Budget Variance Annual Budget GROSS OPERATING INCOME RESIDENTIAL RENTAL INCOME 5120-0000 - Apartment rent 8,381.00 31,296.00 (22,915.00) 17,315.00 61,415.00 (44,100.00) 374,375.00 5121-0000 - Tenant assistant payments 22,915.00 (0.00) 22,915.00 44,100.00 (0.00) 44,100.00 (0.00) TOTAL RESIDENTIAL RENTAL INCOME 31,296.00 31,296.00 0.00 61,415.00 61,415.00 0.00 374,375.00 VACANCIES & ADJUSTMENTS 5220-0000 - Vacancy loss - apartments 0.00 (0.00) 0.00 0.00 (1,814.00) 1,814.00 (9,070.00) TOTAL VACANCIES & ADJUSTMENTS 0.00 (0.00) 0.00 0.00 (1,814.00) 1,814.00 (9,070.00) OTHER INCOME 5922-0000 - Late fees 0.00 5.00 (5.00) 18.00 10.00 8.00 60.00 5990-0000 - Misc other income 84.00 (0.00) 84.00 151.00 (0.00) 151.00 (0.00) 5410-0000 - Interest Income Project Operations 0.35 1.00 (0.65) 0.74 2.00 (1.26) 12.00 5413-0000 - Interest income - escrow 15.26 20.00 (4.74) 29.86 40.00 (10.14) 240.00 TOTAL OTHER INCOME 99.61 26.00 73.61 199.60 52.00 147.60 312.00 GROSS OPERATING INCOME 31,395.61 31,322.00 73.61 61,614.60 59,653.00 1,961.60 365,617.00 ADVERTISING & RENTING EXPENSE 6211-0000 - Marketing/Promotions/Advertising 0.00 213.00 213.00 0.00 213.00 213.00 263.00 6253-0000 - Credit Report Fees 24.00 20.83 (3.17) 36.00 41.66 5.66 249.96 TOTAL ADVERTISING & RENTING EXPENSE 24.00 233.83 209.83 36.00 254.66 218.66 512.96 ADMINISTRATIVE EXPENSE 6311-0000 - Office supplies 60.00 150.00 90.00 217.72 300.00 82.28 1,800.00 6316-0000 - Office Equipment 16.96 80.00 63.04 196.72 160.00 (36.72) 960.00 6320-0000 - Management fee 1,165.31 1,147.92 (17.39) 2,226.61 2,295.84 69.23 13,775.04 6340-0000 - Legal Expense - Project 0.00 0.00 0.00 0.00 0.00 0.00 1,700.00 6350-0000 - Audit Expense 0.00 0.00 0.00 0.00 0.00 0.00 15,600.00 6360-0000 - Telephone/Internet/Cable/Cellphones 642.92 512.00 (130.92) 1,366.04 1,024.00 (342.04) 6,144.00 6360-0001 - Answering Service/ Pagers 35.34 19.00 (16.34) 35.34 38.00 2.66 228.00 6365-0000 - Training & Education Expense 0.00 0.00 0.00 0.00 0.00 0.00 577.00 6370-0000 - Bad debts 0.00 0.00 0.00 0.00 0.00 0.00 5,000.00 6371-0000 - Fees Dues & Contributions 0.00 0.00 0.00 0.00 0.00 0.00 510.00 6380-0000 - Consulting/study costs 87.00 0.00 (87.00) 87.00 1,500.00 1,413.00 3,000.00 6390-0000 - Misc administrative expenses 209.22 275.00 65.78 847.52 550.00 (297.52) 3,300.00 6391-0000 - Property Management Software Fees 174.45 159.00 (15.45) 287.55 318.00 30.45 1,988.00 6392-0000 - Computer Supplies/Data Processing 35.43 35.00 (0.43) 272.20 70.00 (202.20) 420.00 6431-0000 - Travel & Expense Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 400.00 6851-0000 - Bank Service Fees 85.00 85.00 0.00 175.35 170.00 (5.35) 1,020.00 6860-0000 - Security Deposit Interest 0.01 2.00 1.99 0.01 4.00 3.99 24.00 TOTAL ADMINISTRATIVE EXPENSE 2,511.64 2,464.92 (46.72) 5,712.06 6,429.84 717.78 56,446.04 PAYROLL & RELATED COSTS 6310-0000 - Office salaries 1,801.76 1,807.00 5.24 3,602.27 3,614.00 11.73 24,184.00 6510-0000 - Janitor and cleaning payroll 773.06 707.00 (66.06) 1,537.71 1,414.00 (123.71) 9,192.00 6540-0000 - Repairs payroll 1,135.58 934.00 (201.58) 2,185.47 1,868.00 (317.47) 12,144.00 6715-0000 - Payroll Taxes 422.47 414.00 (8.47) 842.55 835.00 (7.55) 4,086.00 Page 20 of 276  RAVINIA HOUSING Actual vs Budget Accrual Operating Statement Month Ending Year To Date Year Ending 02/28/26 02/28/26 12/31/26 Actual Budget Variance Actual Budget Variance Annual Budget 6722-0000 - Workers compensation 71.25 71.00 (0.25) 142.50 142.00 (0.50) 897.00 6723-0000 - Employee Health Ins/Other Benefits (179.86) 389.00 568.86 31.05 778.00 746.95 5,035.00 6724-0000 - Union Benefits 45.02 602.50 557.48 1,413.34 1,205.00 (208.34) 7,230.00 6726-0001 - Contingency 0.00 0.00 0.00 0.00 0.00 0.00 1,422.00 TOTAL PAYROLL & RELATED COSTS 4,069.28 4,924.50 855.22 9,754.89 9,856.00 101.11 64,190.00 OPERATING EXPENSES 6515-0000 - Janitors and cleaning supplies 0.00 16.67 16.67 0.00 33.34 33.34 200.04 6518-0000 - Uniforms 0.00 0.00 0.00 0.00 0.00 0.00 500.00 6519-0000 - Exterminating Contract 0.00 0.00 0.00 0.00 100.00 100.00 500.00 6520-0000 - Miscellaneous Repair Contractors 0.00 883.33 883.33 0.00 1,766.66 1,766.66 10,599.96 6525-0000 - Rubbish removal 0.00 700.00 700.00 598.70 1,400.00 801.30 8,400.00 TOTAL OPERATING EXPENSES 0.00 1,600.00 1,600.00 598.70 3,300.00 2,701.30 20,200.00 UTILITIES 6450-0000 - Electricity 242.96 293.00 50.04 548.30 636.00 87.70 2,881.00 6451-0000 - Water & Sewer 35.30 250.00 214.70 84.85 285.15 200.30 2,062.79 6452-0000 - Gas 0.00 33.33 33.33 0.00 66.66 66.66 399.96 TOTAL UTILITIES 278.26 576.33 298.07 633.15 987.81 354.66 5,343.75 MAINTENANCE EXPENSES 6530-0200 - Security Services 0.00 0.00 0.00 1,037.50 200.00 (837.50) 1,400.00 6536-0000 - Ground supplies & Equipment Repairs 0.00 0.00 0.00 0.00 0.00 0.00 200.00 6537-0000 - Grounds Contractor (Landscaper) 0.00 0.00 0.00 0.00 0.00 0.00 15,560.00 6541-0000 - Repair & Maintenance Supplies 457.45 825.00 367.55 994.28 1,650.00 655.72 10,000.00 6546-0000 - Heating/Cooling/Boiler Contract Repair & Sup- 419.00 666.67 247.67 528.98 1,333.34 804.36 8,000.04 plies 6548-0000 - Snow removal 0.00 0.00 0.00 6,987.30 6,988.00 0.70 27,952.00 6560-0000 - Decorating (Tenant Pntg-Cycle/Turnover by 0.00 0.00 0.00 0.00 0.00 0.00 4,500.00 Contractor) 6563-0000 - Window Covering 0.00 0.00 0.00 139.91 0.00 (139.91) 0.00 6582-0000 - Fire Protection & Fire Equipment 314.00 0.00 (314.00) 1,689.14 2,380.00 690.86 8,200.00 6595-0000 - Plumbing Repairs 850.00 856.00 6.00 850.00 1,712.00 862.00 10,272.00 6598-0000 - Roof Repairs 0.00 0.00 0.00 0.00 0.00 0.00 4,000.00 TOTAL MAINTENANCE EXPENSES 2,040.45 2,347.67 307.22 12,227.11 14,263.34 2,036.23 90,084.04 TAXES AND INSURANCE 6720-0000 - Property and liability insurance 3,424.90 4,206.59 781.69 6,849.80 8,413.18 1,563.38 52,299.83 TOTAL TAXES AND INSURANCE 3,424.90 4,206.59 781.69 6,849.80 8,413.18 1,563.38 52,299.83 TOTAL OPERATING EXPENSES 12,348.53 16,353.84 4,005.31 35,811.71 43,504.83 7,693.12 289,076.62 NET OPERATING INCOME (LOSS) 19,047.08 14,968.16 4,078.92 25,802.89 16,148.17 9,654.72 76,540.38 FINANCIAL EXPENSES 6820-0000 - Mortgage interest 1,085.59 1,082.00 (3.59) 2,171.18 2,168.00 (3.18) 12,770.00 6850-0000 - Mortgage Service Fee 110.26 115.00 4.74 220.52 230.00 9.48 1,380.00 TOTAL FINANCIAL EXPENSES 1,195.85 1,197.00 1.15 2,391.70 2,398.00 6.30 14,150.00 NET OPER INC/(LOSS) BEFORE CAP. EXP. 17,851.23 13,771.16 4,080.07 23,411.19 13,750.17 9,661.02 62,390.38 Partnership Income Page 21 of 276  RAVINIA HOUSING Actual vs Budget Accrual Operating Statement Month Ending Year To Date Year Ending 02/28/26 02/28/26 12/31/26 Actual Budget Variance Actual Budget Variance Annual Budget 8005-0000 - Mortgagor Entity Income 13.51 0.00 13.51 27.99 0.00 27.99 0.00 Total Partnership Activity 13.51 (0.00) 13.51 27.99 (0.00) 27.99 (0.00) NET INCOME (LOSS) 17,864.74 13,771.16 4,093.58 23,439.18 13,750.17 9,689.01 62,390.38 Cash Flow - Financing Activities 7104-0000 - Replacement Reserve 1,828.79 1,761.00 (67.79) 3,590.14 3,522.00 (68.14) 21,132.00 7108-0000 - Mortgage Payable (long term) 1,024.75 1,025.00 0.25 2,045.67 2,046.00 0.33 12,507.00 Total Cash Flow - Financing Activities 2,853.54 2,786.00 (67.54) 5,635.81 5,568.00 (67.81) 33,639.00 CAPITAL EXPENDITURES & ESCROWS 7105-0000 - Replacement Reserve Reimbursement 0.00 0.00 0.00 0.00 0.00 0.00 (10,000.00) 6991-0005 - Bath - Rehab 0.00 0.00 0.00 0.00 0.00 0.00 6,000.00 6991-0016 - Concrete Repairs 0.00 0.00 0.00 0.00 0.00 0.00 6,000.00 6993-0001 - Appliances 657.40 0.00 (657.40) 657.40 0.00 (657.40) 2,000.00 6993-0002 - Water Heaters 0.00 0.00 0.00 0.00 0.00 0.00 2,600.00 6994-0000 - Carpet & tile 0.00 0.00 0.00 0.00 0.00 0.00 10,000.00 TOTAL CAPITAL EXPENDITURES & ESCROWS 657.40 0.00 (657.40) 657.40 0.00 (657.40) 16,600.00 GAIN/(LOSS) AFTER CAPITAL EXP. & ESCROWS 14,353.80 10,985.16 3,368.64 17,145.97 8,182.17 8,963.80 12,151.38 Debt Service Coverage Ratio 4.84 3.87 0.97 3.31 2.09 1.22 1.65 Page 22 of 276  Highland Park Housing Commission - Cash Fund Balance as of 2/2026 Ravinia Frank B. Peers Housing Sunset Woods Association 2 Rental Management Funds: 12 Rental Units Units Total Funds Entity Totals Checking $1,440,221.58 13,313.57 - $1,453,535.15 Security Deposit 24,931.32 9,280.89 - $34,212.21 Replacement Reserve 236,210.30 33,657.82 - $269,868.12 Residual Receipts 15,843.57 - - $15,843.57 Operating Reserve - - - $0.00 Tax Reserve Construction Escrow Total Management Funds 1,717,206.77 56,252.28 - - - $1,773,459.05 Sunset Woods 2/2026 Association Funds: Assn Money Mkt Ckg 1305 176,153.51 112,244.92 288,398.43 Assn MaxSafe Money Market 4382 555,913.29 555,913.29 Assn Small Business Ckg 1321 1,489.86 10,211.98 11,701.84 Association CDs CD #1 522,542.18 522,542.18 - Total Association Funds 1,079,945.33 176,153.51 122,456.90 - 1,378,555.74 Total Mgmt & Assn Funds 2,797,152.10 232,405.79 122,456.90 - - 3,152,014.79 Association Receivables (Liability) 1) Due from Hsg. Trst. Fd 277 GB 7,491.85 7,491.85 2) Due from Hsg. Trst Fd. Emerg. 689.44 689.44 3) Due from Sunset Woods / (Due to Peers) (0.10) - (0.10) 4) Due from Ravinia 37,500.00 Total 45,681.19 - 45,681.19 Page 23 of 276  Peers Capital Improvements Update February 2026 Date for Planned Planned Comments Date $ Actual Task Work $ Use of $ Use of $ Use of Complet Complete R&R Construction Operating e Operations Pipe replacement 1st installment Jan-26 $ 13,250 Appliances Jan-26 1,730 Floor replaced 311 & 315 Jan-26 2,771 $ - $ - $ 17,751.00 $ - $ - $ - Reserves Cash Flow Feb-26 $ 236,210.30 2026 Annual Escrow Deposit $ 20,000.00 Expected Use of Reserves $ in 2026 Balance expected at end of 2026 $ 256,210.30 IHDA Minimum @$1500/unit $ 102,000.00 Page 24 of 276  Ravinia Capital Improvements Update February 2026 Date for Planned Planned Comments Date $ Actual Task Work $ Use of $ Use of $ Use of Complet Complete R&R Construction Operating e Operations Appliances replacement $ 657 Totals $ - $ - $ 657.40 $ - $ - $ - Reserves Cash Flow Feb-26 $ 33,657.82 2026 Annual Escrow Deposit $ 18,287.90 Expected Use of Reserves $ in 2026 Reserve request in 2026 Balance expected at end of 2026 $ 51,945.72 HUD Minimum @$1000/unit $ 17,000.00 Page 25 of 276  Sunset Woods Housing 12 Balance Sheet January 31, 2026 Notes ASSETS Current Assets Assn FBHP Checking $ 10,377.00 FBHP General Checking X3522 22,747.90 FBHP Sec Dep. Savings x5723 10,961.33 Assn FBHP Savings 109,626.00 FBHP Savings x5731 9,512.23 Tax Reserve (11.72) Accounts Receivable 539.00 Balance from former tenant Joyce Tiesky. Per Rose John K is in charge of any write-offs. Subsidy Accounts Receivable 8.00 Balance from former tenant Norman Davis HAPP. Per Rose John K is in charge of any write-offs. Total Current Assets 163,759.74 Property and Equipment Building 1,552,988.40 Building Improvements 20,532.96 Appliances 422.64 Accum Dep Furn & Fixtures (399.37) Accum Dep Equipment (403.85) Accum Dep Building (869,413.47) Debt issuance costs - accum am (2,582.00) Total Property and Equipment 701,145.31 Other Assets Total Other Assets 0.00 Total Assets $ 864,905.05 LIABILITIES AND CAPITAL Current Liabilities Accounts Payable $ 5,640.08 Accrued Management Fee 665.80 Security Deposits 10,051.00 Accrued Expenses (5,730.74) Accrued for monthly Assessment fees paid in Feb 26. Reversed in Feb 26 Total Current Liabilities 10,626.14 Long-Term Liabilities Notes Payable, Lake Co 116,760.18 Notes Payable, FBHP (41,195.47) Current Portion of FBHP Mortga 359,388.00 Current Portion of IHDA Mortga 1,200.00 Debt issuance costs (4,842.00) Notes Payable, IHDA 205,462.60 Total Long-Term Liabilities 636,773.31 Total Liabilities 647,399.45 Capital Beginning Balance Equity (85,000.00) Equity-Retained Earnings 299,979.81 Net Income 2,525.79 Total Capital 217,505.60 Total Liabilities & Capital $ 864,905.05 4/2/2026 at 3:26 PM Unaudited - For Management Purposes Only Page: 1 Page 26 of 276  Sunset Woods Housing 12 Income Statement Compared with Budget For the One Month Ending January 31, 2026 Current Month Current Month Current Month Year to Date Year to Date Actual Budget Variance Actual Budget Revenues Rents $ 8,656.00 $ 8,414.00 242.00 $ 8,656.00 $ 8,414.00 Subsidy Income 1,554.00 1,796.00 (242.00) 1,554.00 1,796.00 Interest Income 2.79 0.00 2.79 2.79 0.00 Vacancy 0.00 (511.00) 511.00 0.00 (511.00) Total Revenues 10,212.79 9,699.00 513.79 10,212.79 9,699.00 Cost of Sales Total Cost of Sales 0.00 0.00 0.00 0.00 0.00 Gross Profit 10,212.79 9,699.00 513.79 10,212.79 9,699.00 Expenses Office Supplies 0.00 25.00 (25.00) 0.00 25.00 Management Fee 665.80 630.00 35.80 665.80 630.00 Audit Expense 0.00 667.00 (667.00) 0.00 667.00 Exterminating 0.00 75.00 (75.00) 0.00 75.00 Credit Ck Fees 0.00 4.00 (4.00) 0.00 4.00 Government Fees 0.00 96.00 (96.00) 0.00 96.00 Software/Data Processing 42.34 32.00 10.34 42.34 32.00 Carpet Cleaning 0.00 83.00 (83.00) 0.00 83.00 Heating & Air 0.00 42.00 (42.00) 0.00 42.00 Electrical & Plumbing Maint 0.00 42.00 (42.00) 0.00 42.00 Painting & Decorating 0.00 108.00 (108.00) 0.00 108.00 Appliance Repairs/Replace 0.00 83.00 (83.00) 0.00 83.00 Supplies 0.00 125.00 (125.00) 0.00 125.00 Maintenance 0.00 167.00 (167.00) 0.00 167.00 Condo Assessment Rental Units 5,244.36 3,356.00 1,888.36 5,244.36 3,356.00 Cable TV 0.00 800.00 (800.00) 0.00 800.00 4/2/2026 at 3:26 PM For Management Purposes Only Page: 2 Page 27 of 276  Sunset Woods Housing 12 Income Statement Compared with Budget For the One Month Ending January 31, 2026 Current Month Current Month Current Month Year to Date Year to Date Actual Budget Variance Actual Budget Real Estate tax expense 0.00 3.00 (3.00) 0.00 3.00 Loan Interest 0.00 2,349.00 (2,349.00) 0.00 2,349.00 Bldg Insurance 0.00 250.00 (250.00) 0.00 250.00 Total Expenses 5,952.50 8,937.00 (2,984.50) 5,952.50 8,937.00 Net Income $ 4,260.29 $ 762.00 3,498.29 $ 4,260.29 $ 762.00 4/2/2026 at 3:26 PM For Management Purposes Only Page: 3 Page 28 of 276  Sunset Woods Housing 12 Income Statement Compared with Budget For the One Month Ending January 31, 2026 Year to Date Yearly Budget Variance 242.00 100,968.00 (242.00) 21,552.00 2.79 0.00 511.00 (6,126.00) 513.79 116,394.00 0.00 0.00 513.79 116,394.00 (25.00) 300.00 35.80 7,566.00 (667.00) 8,000.00 (75.00) 900.00 (4.00) 48.00 (96.00) 1,150.00 10.34 380.00 (83.00) 970.00 (42.00) 500.00 (42.00) 500.00 (108.00) 1,300.00 (83.00) 1,000.00 (125.00) 1,500.00 (167.00) 2,000.00 1,888.36 40,268.00 (800.00) 9,600.00 4/2/2026 at 3:26 PM For Management Purposes Only Page: 4 Page 29 of 276  Sunset Woods Housing 12 Income Statement Compared with Budget For the One Month Ending January 31, 2026 Year to Date Yearly Budget Variance (3.00) 36.00 (2,349.00) 28,188.00 (250.00) 3,000.00 (2,984.50) 107,206.00 3,498.29 9,188.00 4/2/2026 at 3:26 PM For Management Purposes Only Page: 5 Page 30 of 276  Sunset Woods Housing 12 Account Register For the Period From Jan 1, 2026 to Jan 31, 2026 1103M13 - FBHP General Checking X3522 Filter Criteria includes: Report order Date Trans No Type Trans Desc Deposit Amt Withdrawal Amt Balance Beginning Balance 30,562.99 1/1/26 Autopay 2601 Withdrawal Illinois Housing Development A 100.00 30,462.99 1/2/26 HACC_LHCA_1.2.26 Other Lake County Housing _ 1.2.26 1,554.00 32,016.99 1/2/26 Rent_RP_01022026 Other Rent_RP_1.5.2026 908.50 32,925.49 1/5/26 Rent_RP_1.5.26 Other Rent_RP_M.Wax_173535564-47 680.00 33,605.49 1/5/26 Rent_RP_1.5.26 Other Rent_RP_S.Shaffer_173447084-47 950.00 34,555.49 1/6/26 Rent_DEP_1.6.26 Other Rent_DEP_1.6.26 2,618.00 37,173.49 1/9/26 2264 Withdrawal Sunset Woods Condominium Assoc 5,244.36 31,929.13 1/16/26 2265 Withdrawal Housing Opportunity Dev. Corp. 887.15 31,041.98 1/17/26 Autopay 2601 Withdrawal Real Page, Inc. 42.34 30,999.64 1/26/26 Autopay 2601 Withdrawal First Bank Chicago 2,454.00 28,545.64 1/30/26 2266 Withdrawal Westwaard360 5,681.79 22,863.85 1/30/26 2266V Withdrawal Westwaard360 -5,681.79 28,545.64 1/30/26 2267 Withdrawal Westwaard360 5,797.74 22,747.90 Total 6,710.50 14,525.59 4/2/2026 at 3:26 PM Page: 6 Page 31 of 276 Page 32 of 276 Page 33 of 276 Page 34 of 276 nit; Report Type: Balance Lease Rent RENT SUBRENT Total Billing 0 950 950 0 950 -122 421 0 421 421 0 700 700 0 700 8 252 0 252 252 0 700 700 0 700 -135 298 0 298 298 0 443 443 0 443 0 457 0 457 457 -438 438 438 0 438 0 462 0 462 462 -750 750 750 0 750 0 910 910 0 910 0 950 950 0 950 0 285 285 0 285 -11 615 0 615 615 0 680 680 0 680 -48 20 0 20 20 -750 750 750 0 750 -1100 1100 1100 0 1100 -3643 10210 8656 1554 10210 RESIDENT 8656 SUBSIDY 0 Page 35 of 276  SWA 2 Rental Balance Sheet January 31, 2026 Notes ASSETS Current Assets FBHP Checking x3530 $ 110,373.30 FBHP Sec Dep Savings x0207 2,280.90 Prepaid Insurance 1,080.00 Accounts Receivable 100.00 Total Current Assets 113,834.20 Property and Equipment Furniture and Fixtures 3,041.60 Building Unit 231 135,000.32 Building Unit 319 134,999.62 Accum Dep Building (83,685.86) Total Property and Equipment 189,355.68 Other Assets Total Other Assets 0.00 Total Assets $ 303,189.88 LIABILITIES AND CAPITAL Current Liabilities Accounts Payable $ 1,259.76 Security Deposits 1,358.94 Accrued Expenses (428.64) Assessment fees will clear in subsequent period Total Current Liabilities 2,190.06 Long-Term Liabilities Total Long-Term Liabilities 0.00 Total Liabilities 2,190.06 Capital Beginning Balance Equity 246,832.40 Equity-Retained Earnings 52,968.88 Net Income 1,198.54 Total Capital 300,999.82 Total Liabilities & Capital $ 303,189.88 4/2/2026 at 3:20 PM Unaudited - For Management Purposes Only Page: 1 Page 36 of 276  SWA 2 Rental Income Statement Compared with Budget For the One Month Ending January 31, 2026 Current Month Current Month Current Month Year to Date Year to Date Actual Budget Variance Actual Budget Revenues Rents $ 2,300.00 $ 2,300.00 0.00 $ 2,300.00 $ 2,300.00 Interest Income 0.66 0.00 0.66 0.66 0.00 Vacancy 0.00 (115.00) 115.00 0.00 (115.00) Total Revenues 2,300.66 2,185.00 115.66 2,300.66 2,185.00 Cost of Sales Total Cost of Sales 0.00 0.00 0.00 0.00 0.00 Gross Profit 2,300.66 2,185.00 115.66 2,300.66 2,185.00 Expenses Office Supplies 0.00 25.00 (25.00) 0.00 25.00 Management Fee 221.00 142.00 79.00 221.00 142.00 Audit Expense 0.00 125.00 (125.00) 0.00 125.00 Software/Data Processing 7.06 5.00 2.06 7.06 5.00 Painting & Decorating 0.00 125.00 (125.00) 0.00 125.00 Appliance Repairs/replace 0.00 25.00 (25.00) 0.00 25.00 Supplies 0.00 8.00 (8.00) 0.00 8.00 Maintenance 0.00 42.00 (42.00) 0.00 42.00 Condo Asst Rental Units 874.06 819.00 55.06 874.06 819.00 Cable TV 0.00 133.00 (133.00) 0.00 133.00 Bldg Insurance 0.00 42.00 (42.00) 0.00 42.00 Total Expenses 1,102.12 1,491.00 (388.88) 1,102.12 1,491.00 Net Income $ 1,198.54 $ 694.00 504.54 $ 1,198.54 $ 694.00 4/2/2026 at 3:20 PM For Management Purposes Only Page: 2 Page 37 of 276  SWA 2 Rental Income Statement Compared with Budget For the One Month Ending January 31, 2026 Year to Date Annual Budget Variance 0.00 27,600.00 0.66 0.00 115.00 (1,380.00) 115.66 26,220.00 0.00 0.00 115.66 26,220.00 (25.00) 300.00 79.00 1,704.00 (125.00) 1,500.00 2.06 65.00 (125.00) 1,500.00 (25.00) 300.00 (8.00) 100.00 (42.00) 500.00 55.06 9,828.00 (133.00) 1,600.00 (42.00) 500.00 (388.88) 17,897.00 504.54 8,323.00 4/2/2026 at 3:20 PM For Management Purposes Only Page: 3 Page 38 of 276  SWA 2 Rental Account Register For the Period From Jan 1, 2026 to Jan 31, 2026 1103M14 - FBHP Checking x3530 Filter Criteria includes: Report order is by Date. Date Trans No Type Trans Desc Deposit Amt Withdrawal Amt Balance Beginning Balance 111,678.12 1/8/26 Tsfr_1.8.26 Other Tsfr Rents_01.08.2026 1,100.00 112,778.12 1/9/26 1485 Withdrawal Sunset Woods Condominium Assoc 874.06 111,904.06 1/17/26 Autopay 2601 Withdrawal Real Page, Inc. 7.06 111,897.00 1/29/26 1486 Withdrawal Housing Opportunity Developmen 221.00 111,676.00 1/30/26 1487 Withdrawal Sunset Woods c/o Westward360 1,302.70 110,373.30 Total 1,100.00 2,404.82 4/2/2026 at 3:20 PM Page: 4 Page 39 of 276 Housing Opportunity Development Corporation - Sunset Woods Rental RENT ROLL DETAIL 02/20/2026 11:43 AM As of Date: 01/31/2026 Parameters: Properties: ALL; Show All Unit Designations or Filter by: ALL; Subjournals: ALL; Sort by: Unit; Report Type: Details + Summ Lease Total Resh ID Bldg/Unit Name Balance RENT Rent Billing 8 1-231 -1100 1100 1100 1100 10 1-319 1200 1200 1200 1200 Totals: 100 2300 2300 2300 Page 40 of 276 HOUSING TRUST FUND Schedule of Changes in Fund Balance Actual Through Total3 December 2026 2025 Budget Beginning Fund Balance (Audited) 1,968,422 1,933,509 Demolition Tax 148,856 80,000 Demolition Permits 11,350 12,000 Reimbursements and Grants - Interest Revenue 82,925 83,700 4 Contributions/Donations/Transfers - - 1 Payment in lieu of Affordable Housing 222,480 407,880 Proceeds of Ceding Volume Cap - Total Revenue 465,611 583,580 2 Contractual Services (Obligations) 459,885 1,093,850 Employment Expenses 11,429 12,595 Salaries 29,209 36,358 Personnel Expenditures 40,638 48,953 Total Expenditures 500,523 1,142,803 Ending Fund Balance 1,933,509 1,374,286 Fund Balance at 150% target 1,714,205 Fund Balance less Obligations and Target (339,918) Notes: 1. Anticipated Revenue: 2025 Payment in lieu 664,080 2025 Demolition Tax 130,000 2025 Demolition Permits 15,000 Total 809,080 2. Obligations: Scattered Site Grant Budgeted for 2025 463,550 Operating Grant Budgeted for 2025 94,185 Temporary Housing Assistance 10,000 Total 567,735 3. Adopted Budget Page 41 of 276  Housing Trust Fund Balance Sheet and Schedule of Revenues, Expenditures, and Changes in Fund Balance Per City General Ledger Adopted Estimated Actual Annual 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Balance Sheet Cash & Investments 1,259,390 1,818,613 1,968,422 1,908,458 1,634,854 2,386,240 1,522,923 1,329,104 709,596 555,762 634,659 808,800 866,008 834,576 1,001,264 1,091,569 1,254,767 1,282,048 1,517,934 1,873,748 245,714 1,148,435 704,498 229,405 Accounts Receivable 250,000 (10,500) Due from Other Funds 1,700,000 Other Assets (169) 378 539 Total Assets 1,259,390 1,818,613 1,968,422 1,908,458 1,634,854 2,386,240 1,522,923 1,329,104 709,596 555,762 884,659 808,800 866,008 834,576 1,001,264 1,091,569 1,254,767 1,281,879 1,517,934 1,863,625 1,946,254 1,148,435 704,498 229,405 Accounts Payable 67,500 1,000 Accrued Salaries Payable 1,011 1,009 627 789 720 175 308 233 395 596 218 Refundable Deposits 61,000 Total Liabilities - - - - - 67,500 1,011 - 1,009 61,627 789 720 175 308 233 - 1,395 596 218 - - - Fund Balance Actual 1,259,390 1,818,613 1,968,422 1,908,458 1,634,854 2,386,240 1,522,923 1,261,604 708,584 555,762 883,651 747,173 865,220 833,856 1,001,088 1,091,261 1,254,534 1,281,879 1,516,540 1,863,029 1,946,036 1,148,435 704,498 229,405 Fund Balance Reported1 N/A 1,818,613 TRUE 1,908,458 1,634,854 2,445,490 1,522,923 1,262,614 709,595 556,762 884,658 808,800 866,008 833,856 1,001,088 1,091,261 1,254,535 1,281,879 1,516,539 1,863,030 1,946,036 1,148,435 704,498 229,405 Actual Over/(Under) Rptd3 N/A - - (59,250) - (1,010) (1,011) (1,000) (1,007) (61,627) (788) 0 0 (0) (1) (0) 1 (1) (0) 0 0 - Changes in Fund Balance Revenues4 583,580 465,611 324,094 471,340 644,681 1,179,417 485,162 749,266 260,096 240,152 458,750 453,650 365,518 170,586 129,890 60,828 107,181 265,857 584,267 1,557,629 942,598 798,678 645,094 229,405 Expenditures5 1,142,803 500,523 307,256 197,735 1,396,067 316,100 223,842 196,246 107,273 568,041 322,273 571,697 334,155 337,818 220,063 224,101 134,526 500,518 930,757 1,640,635 144,997 354,742 170,000 Change in Fund Balance (559,223) (34,912) 16,838 273,605 (751,386) 863,317 261,319 553,019 152,822 (327,889) 136,478 (118,047) 31,363 (167,232) (90,172) (163,273) (27,344) (234,661) (346,489) (83,007) 797,600 443,937 475,094 229,405 Beginning Fund Balance (Audited) 1,818,613 1,968,422 1,951,583 1,634,854 2,386,240 1,522,923 1,261,604 708,584 555,762 883,651 747,173 865,220 833,856 1,001,088 1,091,261 1,254,534 1,281,879 1,516,540 1,863,029 1,946,036 1,148,435 704,498 229,405 - Ending Fund Balance 1,259,390 1,933,509 1,968,422 1,908,458 1,634,854 2,386,240 1,522,923 1,261,604 708,584 555,762 883,651 747,173 865,220 833,856 1,001,088 1,091,261 1,254,534 1,281,879 1,516,540 1,863,029 1,946,036 1,148,435 704,498 229,405 Due to Others2 per City Accounts - - - - - 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 229,405 Fund Balance per City Accounts 1,259,390 1,933,509 1,968,422 1,908,458 1,634,854 2,386,240 1,522,923 1,032,199 479,180 326,357 654,246 517,768 635,815 604,452 771,684 861,856 1,025,130 1,052,474 1,287,135 1,633,624 1,716,631 919,031 475,094 - Fund Balance Actual 1,259,390 1,933,509 1,968,422 1,908,458 1,634,854 2,386,240 1,522,923 1,261,604 708,584 555,762 883,651 747,173 865,220 833,856 1,001,088 1,091,261 1,254,534 1,281,879 1,516,540 1,863,029 1,946,036 1,148,435 704,498 229,405 Notes: 1. Reported to the Housing Commission. 2. Equals the 2003 Fund Balance which was incorrectly recorded in 2003 to the account Due to Others. Since there were no expenditures in 2003, it is equal to 100% of 2003 Demolition Tax Revenue recorded to HTF in 2003. 3. Reporting errors. 4. Anticipated Revenue: 2025 Payment in lieu 664,080 2025 Demolition Tax 130,000 2025 Demolition Permits 15,000 Total 809,080 5. Obligations: Scattered Site Grant Budgeted for 2025 463,550 Operating Grant Budgeted for 2025 94,185 Temporary Housing Assistance 10,000 Total 567,735 \\sweepea\Dept_FAS\_Finance Director\HTF, Peers, Sunset Woods, Ravinia, 1974 Green Bay\Housing Trust Fund\Housing Trust Fund - Fund Balance 2003 - 2025 Page 42 of 276  PEERS HOUSING ASSOCIATION IHDA PROJECT NO. ML-93 December 31, 2025 and 2025 PEERS HOUSING ASSOCIATION IHDA Project No.: ML-93 Financial Statements and Supplementary Information with Report of Independent Auditors December 31, 2025 and 2024 Page 43 of 276  TABLE OF CONTENTS Page Report of Independent Auditors 1-3 Financial Statements: Statements of Financial Position 4-5 Statements of Activities and Changes in Net Assets 6-7 Statements of Functional Expenses 8 Statements of Cash Flows 9 Notes to Financial Statements 10-17 Supplementary Information Supplemental Data Statement of Cash Flows – IHDA 19-20 Receivables 21 Payables 22 Changes in Fixed Assets 23 Funds in Financial Institutions 24 Schedule of Surplus Cash and Allowable Distributions 25 Schedule of Debt Service Coverage Ratio 26 Exhibit A 27-31 Schedule of Expenditures of Federal Awards and Notes 32 Independent Auditors Report on Internal Control over Financial Reporting and on 33-34 Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors Report on Compliance for each Major Program and on Internal 35-37 Control over Compliance Required by the Uniform Guidance Schedule of Findings and Questioned Costs 38-39 Schedule of the Status of Prior Audit Findings, Questioned Costs, and Recommendations 40 Certificate of Mortgagor (Owner) 41 Certificate of Managing Agent 42 Information Regarding Auditors 43 Page 44 of 276  Report of Independent Auditors To the Board of Directors of Peers Housing Association: Opinion We have audited the accompanying financial statements of Peers Housing Association–IHDA Project No. ML-93, which comprise the statements of financial position as of December 31, 2025 and 2024, and the related statements of activities and changes in net assets, functional expenses and cash flows for the years then ended, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Peers Housing Association as of December 31, 2025 and 2024, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Peers Housing Association and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Peers Housing Association’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 2 Page 45 of 276 In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Peers Housing Association’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Peers Housing Association’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Other Information Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information on pages 19-31, which is presented for purposes of additional analysis as required by the Illinois Housing Development Authority reporting requirements and the accompanying schedule of expenditures of federal awards, which is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the financial statements as a whole. The schedule of the status of prior audit findings, questioned costs, and recommendations, the certificate of mortgagor (owner), and the certificate of managing agent have not been subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 2 Page 46 of 276 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated March 11, 2026 on our consideration of Peers Housing Association’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Peers Housing Association’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Peers Housing Association’s internal control over financial reporting and compliance. Dover, Ohio March 11, 2026 Lead Auditor: Dirk A. Wallace Employer’s Identification Number: 94-3108253 3 Page 47 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 STATEMENTS OF FINANCIAL POSITION December 31, 2025 and 2024 2025 2024 ASSETS: Fixed assets: 1420 Building $ 5,737,615 $ 5,716,627 1430 Equipment 553,056 553,056 1450 Furniture and fixtures 717,209 702,000 4250 Less: accumulated depreciation (5,090,033) (4,915,281) Net book value 1,917,847 2,056,402 Total fixed assets 1,917,847 2,056,402 Current assets: 1120 Cash - project accounts 1,364,682 1,042,892 1125 Cash - entity accounts 1,093,151 1,090,174 1130 Accounts receivable - tenant - 3,649 1131 Accounts receivable - IHDA 488 3,521 1151 Due from related parties 60,655 45,681 1240 Prepaid expenses: insurance 68,446 77,619 Total current assets 2,587,422 2,263,536 1191 Cash (restricted) 34,542 31,012 2191 Less: tenant security deposits (22,782) (22,031) 11,760 8,981 Restricted deposits and reserves: 1310 Real estate tax and insurance 50,273 37,483 1320 Replacement reserve 230,403 197,484 1330 Working capital reserve 167,430 160,336 1340 Residual receipts reserve 15,687 15,022 Total restricted deposits and reserves 463,793 410,325 TOTAL ASSETS: $ 4,980,822 $ 4,739,244 4 see accompanying notes to financial statements Page 48 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 STATEMENTS OF FINANCIAL POSITION (CONTINUED) December 31, 2025 and 2024 2025 2024 LIABILITIES AND NET ASSETS: Current liabilities: 2320 Mortgage loan payable $ 180,817 $ 170,491 2130 Accrued interest payable 11,304 12,144 2140 Accrued expenses 42,122 43,796 2210 Rents received in advance 14,996 15,111 Total current liabilities 249,239 241,542 Long-term liabilities: 2320 Mortgage loans payable, less current portion, net of unamortized debt issuance costs 2,137,480 2,310,288 TOTAL LIABILITIES: 2,386,719 2,551,830 Net assets 3130 Net assets without donor restrictions 2,594,103 2,187,414 Total net assets 2,594,103 2,187,414 TOTAL LIABILITIES AND NET ASSETS: $ 4,980,822 $ 4,739,244 5 see accompanying notes to financial statements Page 49 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS For the years ended December 31, 2025 and 2024 WITHOUT DONOR RESTRICTIONS REVENUE AND OTHER SUPPORT: 2025 2024 Rental revenue 5120 Apartment rentals $ 264,846 $ 271,029 5121 Housing assistance payments 1,195,674 1,129,911 5140 Commercial and other rentals 720 660 5220 Less: Vacancy loss (14,477) (9,971) Net rental revenue 1,446,763 1,391,629 5320 Interest on mortgage escrows 9,920 9,184 5440 Replacement reserve interest 8,913 9,909 5390 Other interest 3,680 8,892 5910 Laundry 1,995 2,818 5990 Sundry 4,879 10,354 Total other support 29,387 41,157 Total revenue and other support 1,476,150 1,432,786 Administrative: 6311 Office expenses 37,197 28,054 6320 Management fee 75,676 72,425 6340 Legal Expense - Project 3,614 1,910 6350 Audit expenses 11,310 16,180 6360 Telephone 9,709 26,122 6370 Bad debts 3,699 1,082 6210 Advertising and marketing 428 585 141,633 146,358 Operating: 6461 Exterminating 1,779 738 6471 Rubbish removal 7,812 7,355 9,591 8,093 Maintenance: 6510 Security 4,678 187 6521 Grounds 6,737 23,568 6541 Structural repairs 1,842 250 6545 Elevator 7,596 11,960 6546 Heating and air conditioning 23,892 26,958 6552 Plumbing 10,173 27,389 6561 Painting and decorating 11,099 7,957 6585 Window washing 1,200 2,145 6590 Sundry 31,660 35,646 6595 Snow removal 11,865 11,894 110,742 147,954 6 see accompanying notes to financial statements Page 50 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2025 and 2024 2025 2024 Materials and supplies: 6311 Office 9,695 10,691 6411 Janitors 3,521 3,312 6511 Maintenance 18,141 14,127 31,357 28,130 Salaries and wages: 6310 Office and administrative 95,069 78,384 6410 Janitors 39,069 38,670 6510 Maintenance 53,811 33,736 187,949 150,790 Utilities: 6420 Gas 24,987 19,657 6450 Electricity 18,918 14,377 6451 Water and sewer 26,344 30,493 70,249 64,527 Taxes and insurance: 6720 Property and liability insurance 123,626 111,715 6790 Other taxes 15,932 12,103 6729 Other insurance 49,195 47,463 188,753 171,281 Total operating expenses before financing, entity expenses, and depreciation 740,274 717,133 Changes in net assets before financing, entity expenses, and depreciation 735,876 715,653 Financing: 6810 Mortgage interest 148,329 158,140 6845 Service charge - IHDA 6,106 6,519 154,435 164,659 Changes in net assets before depreciation 581,441 550,994 6900 Depreciation 174,752 158,836 Change in net assets 406,689 392,158 Net assets - beginning of year 2,187,414 1,795,256 Net assets - end of year $ 2,594,103 $ 2,187,414 7 see accompanying notes to financial statements Page 51 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 STATEMENTS OF FUNCTIONAL EXPENSES For the years ended December 31, 2025 and 2024 2025 Program Administrative EXPENDITURES Services and Support Total Administrative $ - $ 141,633 $ 141,633 Operating 9,591 - 9,591 Maintenance 110,742 - 110,742 Materials and supplies 31,357 - 31,357 Salaries and wages 187,949 - 187,949 Utilities 70,249 - 70,249 Taxes and insurance 188,753 - 188,753 Financing - 154,435 154,435 Depreciation 174,752 - 174,752 Total expenditures $ 773,393 $ 296,068 $ 1,069,461 2024 Program Administrative EXPENDITURES Services and Support Total Administrative $ - $ 146,358 $ 146,358 Operating 8,093 - 8,093 Maintenance 147,954 - 147,954 Materials and supplies 28,130 - 28,130 Salaries and wages 150,790 - 150,790 Utilities 64,527 - 64,527 Taxes and insurance 171,281 - 171,281 Financing - 164,659 164,659 Depreciation 158,836 - 158,836 Total expenditures $ 729,611 $ 311,017 $ 1,040,628 8 see accompanying notes to financial statements Page 52 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 STATEMENTS OF CASH FLOWS For the years ended December 31, 2025 and 2024 CASH FLOWS FROM OPERATING ACTIVITIES 2025 2024 Change in net assets $ 406,689 $ 392,158 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 174,752 158,836 Interest expense - debt issuance costs 8,017 8,017 Bad debt expense 3,699 1,082 Changes in operating assets and liabilities: Change in accounts receivable, net (50) 1,027 Change in accounts receivable - IHDA 3,033 (489) Change in prepaid expenses 9,173 (13,698) Change in accrued interest (840) - Change in accrued expenses (1,674) 5,519 Change in tenant security deposits payable 751 (748) Change in rents received in advance (115) (4,579) Net adjustments 196,746 154,967 Net cash provided by operating activities 603,435 547,125 CASH FLOWS FROM INVESTING ACTIVITIES Payments of related party expenses (14,974) - Purchase of fixed assets (36,197) (38,986) Net cash used in investing activities (51,171) (38,986) CASH FLOWS FROM FINANCING ACTIVITIES Payments on mortgage payable (170,499) (160,735) Net cash used in financing activities (170,499) (160,735) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 381,765 347,404 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR 2,574,403 2,226,999 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR $ 2,956,168 $ 2,574,403 Cash - project accounts $ 1,364,682 $ 1,042,892 Cash - entity accounts 1,093,151 1,090,174 Cash - restricted - tenant security deposits 34,542 31,012 Restricted cash 463,793 410,325 Total cash, cash equivalents and restricted cash $ 2,956,168 $ 2,574,403 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest $ 141,152 $ 150,123 9 see accompanying notes to financial statements Page 53 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 1. Organization Frank B. Peers Senior Housing (the "Project") is a 68-unit rental housing project located in Highland Park, Illinois, owned by Peers Housing Association (the "Corporation"). The Project was financed in part with the proceeds of a mortgage loan obtained from the Illinois Housing Development Authority ("IHDA"). Agreements with IHDA provide for regulation of rental charges, restrictions on disposition of the property, and the limitation of annual cash distributions to the Corporation based upon a 10.42% cumulative return on equity as determined by the regulatory agreement with IHDA. The Corporation is a not-for-profit corporation, under Internal Revenue Code Section 501(c)(3), organized under the laws of the State of Illinois, effective July 17, 1943. The Corporation is governed by the Housing Commission of the City of Highland Park (the “Commission”). 2. Summary of significant accounting policies Basis of accounting The Corporation prepares its financial statements on the accrual basis of accounting consistent with accounting principles generally accepted in the United States of America. Basis of presentation The Corporation is required to report information regarding its financial position and activities according to the following net asset classifications: Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of the Corporation. These net assets may be used at the discretion of the Corporation’s management and the board of directors. Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature, which will be met by actions of the Corporation or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statements of activities. The Corporation has no donor restricted contributions. Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include all cash balances on deposit with financial institutions and highly liquid investments with a maturity of three months or fewer at the date of acquisition. 10 Page 54 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 2. Summary of significant accounting policies (continued) Cash and cash equivalents (continued) Restricted cash is not considered cash and cash equivalents, and includes cash held with financial institutions for refunds of tenant security deposits, repairs or improvements to the buildings which extend their useful lives, annual insurance and property tax payments, residual receipts reserve and working capital reserve. Restricted cash does not fall under the criteria for net assets with donor restrictions as these funds are held for operational purposes rather than donor imposed restrictions. Concentration of credit risk The Corporation maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Corporation has not experienced any losses in such accounts. The Corporation believes it is not exposed to any significant credit risk on cash and cash equivalents. Accounts receivable Accounts receivable is stated at the amount management expects to collect from outstanding balances. Management closely monitors outstanding balances and provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that remain outstanding after management has used reasonable collection efforts are generally written off through a charge to the valuation allowance and a credit to trade accounts receivable. As of December 31, 2025 and 2024, the balance of the allowance for doubtful accounts was $0 for both years. Fixed assets and depreciation Purchases of property, equipment or improvements are recorded at cost. Major improvements are charged to the fixed asset account, while maintenance and repairs, which do not extend the life of the respective assets, are expensed. When fixed assets are retired or otherwise disposed, the cost of the fixed asset and the related accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in income. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Depreciation expense during 2025 and 2024 was $174,752 and $158,836, respectively. The useful lives of the assets are estimated as follows: Property 7 - 30 years Equipment 5 – 10 years Improvements 5 – 10 years Income taxes The Corporation is exempt from federal income taxes under Internal Revenue Code Section 501(c)(3) and from Illinois income taxes. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Corporation to report information regarding its exposure to various tax positions taken by the Corporation. The Corporation has determined whether any tax positions have met the recognition threshold and has measured the Corporation’s exposure to those tax positions. 11 Page 55 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 2. Summary of significant accounting policies (continued) Income taxes (continued) Management believes that the Corporation has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Federal and state tax authorities generally have the right to examine and audit the previous three years of tax returns filed. Any interest or penalties assessed to the Corporation are recorded in operating expenses. No interest or penalties from federal or state tax authorities were recorded in the accompanying financial statements. Impairment of long-lived assets The Corporation reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flow expected to be generated and any estimated proceeds from the eventual disposition. If the long- lived assets are considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of the asset exceeds the fair value as determined from an appraisal, discounted cash flows analysis, or other valuation technique. There were no impairment losses recognized during 2025 and 2024. Revenue recognition for tenant leases and tenant charges The Corporation is the lessor of the Project and accounts for tenant leases as operating leases. The Corporation determines if a contract is a lease or contains a lease at inception. At the commencement of an operating lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Rental revenue attributable to residential leases is recorded when due from residents, generally upon the first day of each month. Leases are for periods of up to one year, with rental payments due monthly. Other income includes fees for late payments, cleaning, damages, laundry facilities and other charges and is recorded when earned. Advance receipts of revenue are deferred and classified as liabilities until earned. Economic concentrations The Corporation operates one property in Highland Park, Illinois. Future operations could be affected by changes in the economic or other conditions in that geographical area or by changes in federal affordable housing subsidies or the demand for such housing. Functional expenses The costs of providing program services and other activities have been summarized in the statements of functional expenses. Management believes all costs of providing program services and other activities are allocable to providing residential rental services. Accordingly, certain costs have been allocated among program services and administrative and support. Such allocations are determined by management on an equitable basis. Management allocates all costs associated with financing, administrative, and entity expenses to administrative and support services. All other costs are allocated to program services. The Corporation does not engage in fundraising and therefore does not allocate any expenses to fundraising services benefited. 12 Page 56 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 2. Summary of significant accounting policies (continued) Advertising and marketing Advertising and marketing costs are expensed as incurred. For the years ended December 31, 2025 and 2024, the Corporation incurred $428 and $585, respectively, in advertising and marketing costs. Reclassifications Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation. Subsequent events Subsequent events have been evaluated through March 11, 2026, which is the date the financial statements were available to be issued, and there are no subsequent events requiring disclosure. 3. Liquidity and availability of financial assets The following represents the Corporation’s financial assets at December 31, 2025 2024 Cash - project accounts $ 1,364,682 $ 1,042,892 Cash - entity accounts 1,093,151 1,090,174 Security deposits held in trust 34,542 31,012 Restricted deposits and reserves 463,793 410,325 Accounts receivable - tenant - 3,649 Accounts receivable - IHDA 488 3,521 Due from related parties 60,655 45,681 Total financial assets $ 3,017,311 $ 2,627,254 Less amounts not available to be used within one year: Security deposits held in trust (22,782) (22,031) Restricted deposits and reserves (463,793) (410,325) Financial assets available to meet general expenditures over the next twelve months $ 2,530,736 $ 2,194,898 The Corporation’s goal is generally to maintain financial assets to meet 90 days of operating expenses (approximately $225,000). As part of its liquidity management plan, excess cash is invested in savings accounts. 4. Restricted cash Real estate tax and insurance escrows In accordance with the terms of the Regulatory Agreement, the Corporation is required to make monthly deposits to the tax and insurance escrows. As of December 31, 2025 and 2024, the balance of the escrows was $50,273 and $37,483, respectively. For the years ended December 31, 2025 and 2024, the Corporation received a non-homestead property tax exemption for 100% of the assessment amounts. 13 Page 57 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 4. Restricted cash (continued) Replacement reserve In accordance with the terms of the Regulatory Agreement, the Corporation is required to make an annual deposit of $318 per unit to the replacement reserve account. These deposits are held by the mortgagee until IHDA approval is obtained for use of the funds to repair or replace certain assets of the Corporation. As of December 31, 2025 and 2024, the replacement reserve account balance was $230,403 and $197,484, respectively. Tenant security deposits Tenant security deposits are held in a separate bank account in the name of the Corporation. As of December 31, 2025 and 2024, the tenant security deposits cash account balance exceeded the tenant security deposits liability. As of December 31, 2025 and 2024, the balance was $34,542 and $31,012, respectively. Working capital reserve In accordance with the terms of the Regulatory Agreement, the Corporation is required to establish and maintain a working capital reserve. As of December 31, 2025 and 2024, the balance of the reserve was $167,430 and $160,336, respectively. Residual receipts reserve In accordance with the terms of the Regulatory Agreement, the Corporation is required to establish and maintain a residual receipts reserve. As of December 31, 2025 and 2024, the balance of the reserve was $15,687 and $15,022, respectively. 5. Mortgage loans payable The costs to develop the Project were originally financed by a 7.62% first mortgage loan issued by IHDA and payable in monthly installments of $11,600 commencing July 1, 1979, over a period of 40 years. In addition, the Corporation was required to pay a monthly service fee to IHDA of $1,075 until such time as the mortgage loan was fully satisfied. In May 1995, the Corporation refinanced the mortgage loan. The proceeds of the new mortgage were received under two notes. The proceeds of the first note were received in May 1995, in the principal amount of $2,291,475, which were used to pay off the original mortgage note. This note bore interest at 6.78% per annum and was payable in monthly installments of interest only in the amount of $12,949 through December 1, 2006. Commencing January 1, 2007, the Corporation was required to make equal monthly installments of principal and interest in the amount of $24,554, which would fully amortize the principal balance by the maturity date of January 1, 2018. 14 Page 58 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 5. Mortgage loans payable (continued) The proceeds of the second note were received in May 1995, in the principal amount of $1,090,399. This note bore interest at the annual rate of 8.14% and was payable in equal monthly installments of principal and interest in the amount of $11,605, which would fully amortize the principal balance by the maturity date of December 1, 2006. At the time of the 1995 refinance, the Corporation was required to deposit $130,223 into a working capital escrow controlled by IHDA. The Corporation was also required to deposit $16,750 annually with IHDA as a reserve fund for replacements. In November 2005, the Corporation refinanced the mortgage notes with the proceeds of two new mortgage notes. The first note, in the amount of $2,290,000, bears interest at 5.77% per annum and is payable in monthly installments of interest only in the amount of $11,012 through April 2026. Commencing May 1, 2026, the Corporation is required to make equal monthly installments of principal and interest in the amount of $25,971, which will fully amortize the principal balance by the maturity date of November 1, 2035. The mortgage note payable is secured by a Deed of Trust and Security Agreement with Assignment of Rents and Fixture Filing. For the years ended December 31, 2025 and 2024, interest expense was $131,310 and $131,355, respectively. The first note balance as of December 31, 2025 and 2024 was $2,168,287. The second note is in the amount of $2,595,000, bears interest at 5.91% per annum and is payable in monthly installments of principal and interest in the amount of $19,475 through January 1, 2018. The payments will be followed by monthly installments of principal and interest in the amount of $14,958 through April 1, 2026, the maturity date. The mortgage note payable is secured by a Deed of Trust and Security Agreement with Assignment of Rents and Fixture Filing. For the years ended December 31, 2025 and 2024, interest expense was $9,002 and $18,768, respectively. The second note balance as of December 31, 2025 and 2024 was $180,817 and $229,603, respectively. Debt issuance costs are being amortized to interest expense over the term of the second note. For 2025 and 2024, the effective interest rate was 6.56% and 6.57%, respectively. For the years ended December 31, 2025 and 2024, amortization expense for debt issuance costs was $8,017. 15 Page 59 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 5. Mortgage loans payable (continued) Mortgage loans payable consists of the following as of December 31, 2025 2024 Principal balance – First note $ 2,168,287 $ 2,290,000 Principal balance – Second note 180,817 229,603 Less: unamortized debt issuance costs – Second note (30,807) (38,824) 150,010 190,779 Mortgage loans payable, net of unamortized debt issuance costs $ 2,318,297 $ 2,480,779 Annual principal payments are as follows: Year ending December 31, 2026 $ 180,817 2027 191,555 2028 202,905 2029 214,927 2030 227,662 Thereafter 1,331,238 Total $ 2,349,104 6. Assistance from IHDA and HUD The Corporation executed a Housing Assistance Payments contract with IHDA and HUD providing for payments to the Corporation for units leased to eligible lower-income families pursuant to Section 8 of the U.S. Housing Act of 1937. The initial term of the contract was five years ending December 31, 1982, and the contract was renewable for subsequent periods. The contract was extended from December 31, 2017 to December 31, 2037. During 2025 and 2024, housing assistance revenues aggregated $1,195,674 and $1,129,911, respectively. 7. Management agreement Management of the Project is provided by Evergreen Real Estate Services, LLC under an agreement expiring June 30, 2026, which provides for a management fee of 5.2% of gross collections. Management fees of $75,676 and $72,425, respectively, were incurred by the Corporation for the years ended December 31, 2025 and 2024. 16 Page 60 of 276  PEERS HOUSING ASSOCATION IHDA PROJECT NO. ML-93 NOTES TO FINANCIAL STATEMENTS December 31, 2025 and 2024 8. Allocations and allowable distributions There were no distributions during 2025 and 2024. The Corporation must deposit all surplus cash in excess of amounts distributable into a residual receipts reserve under the control of IHDA. No deposits into or withdrawals from the residual receipts reserve were made during 2025 and 2024. As of December 31, 2025 and 2024, the Corporation has total cumulative allowable and unpaid distributions of $2,041,937 and $2,011,387, respectively. 9. Related party transactions Due from Housing Trust Fund As of December 31, 2025 and 2024, $8,181, was due to the Corporation from the Housing Trust Fund, which is controlled by the Commission. The receivable is due on demand. Due from Ravinia Housing Association During 2025 and 2022, the Corporation provided advances to Ravinia Housing Association, which is controlled by the Commission, to fund certain financing costs of the property owned by Ravinia Housing Association. These advances are unsecured and do not bear interest and are due on demand. As of December 31, 2025 and 2024, $52,474 and $37,500, respectively, remained receivable from Ravinia Housing Association. 10. Land The land on which the building is located is leased by the Corporation from the City of Highland Park for a term of 45 years commencing August 25, 1976. The lease is considered an operating lease. The lease term was subsequently extended to August 24, 2071. The lease provides for an annual rental charge of $1 plus payment by the Corporation of all costs associated with the property, including real estate taxes, assessments and insurance. The land and all improvements will revert back to the lessor at the end of the lease term. 17 Page 61 of 276 SUPPLEMENTARY INFORMATION SUPPORTING DATA REQUIRED BY IHDA Page 62 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTAL STATEMENTS OF CASH FLOWS - IHDA For the years ended December 31, 2025 and 2024 CASH FLOWS FROM OPERATING ACTIVITIES 2025 2024 Rental receipts $ 1,453,330 $ 1,387,588 Interest receipts 22,513 27,985 Other operating receipts 6,874 13,172 Total receipts 1,482,717 1,428,745 Cash payments for: Administrative expenses paid (65,957) (72,851) Management fees paid (75,676) (72,425) Operating expenses paid (11,265) (8,093) Maintenance expenses paid (110,742) (142,435) Materials and supplies paid (31,357) (28,130) Salaries and wages paid (187,949) (150,790) Utilities paid (70,249) (64,527) Property insurance paid (114,453) (125,413) Miscellaneous taxes and insurance paid (65,127) (59,566) Net tenant security deposits (2,779) (1,837) Mortgage interest paid (141,152) (150,123) Service charge - IHDA (6,106) (6,519) Net withdrawals from (deposits to) real estate tax and insurance (12,790) 46,566 Net deposits to replacement reserve (32,919) (33,023) Net deposits to working capital reserve (7,094) (8,130) Net deposits to from residual receipts reserve (665) (762) Net cash provided by operating activities 546,437 550,687 CASH FLOWS FROM INVESTING ACTIVITIES Payments of related party expenses (14,974) - Purchase of fixed assets (36,197) (38,986) Net cash used in investing activities (51,171) (38,986) CASH FLOWS FROM FINANCING ACTIVITIES Payments on mortgage payable (170,499) (160,735) Net cash used in financing activities (170,499) (160,735) NET INCREASE IN CASH AND CASH EQUIVALENTS 324,767 350,966 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,133,066 1,782,100 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 2,457,833 $ 2,133,066 19 see independent auditors' report Page 63 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTAL STATEMENTS OF CASH FLOWS - IHDA (CONTINUED) For the years ended December 31, 2025 and 2024 RECONCILIATION OF CHANGE IN NET ASSETS TO 2025 2024 NET CASH PROVIDED BY OPERATING ACTIVITIES Change in net assets $ 406,689 $ 392,158 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 174,752 158,836 Interest expense - debt issuance costs 8,017 8,017 Bad debt expense 3,699 1,082 Changes in operating assets and liabilities: Change in accounts receivable, net (50) 1,027 Change in accounts receivable - HUD 3,033 (489) Change in prepaid expenses 9,173 (13,698) Change in tenant security deposits (3,530) (1,089) Change in accrued interest (840) - Change in accrued expenses (1,674) 5,519 Change in tenant security deposits payable 751 (748) Change in rents received in advance (115) (4,579) Change in restricted deposits and reserves (53,468) 4,651 Net adjustments 139,748 158,529 Net cash provided by operating activities $ 546,437 $ 550,687 20 see independent auditors' report Page 64 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTARY INFORMATION December 31, 2025 Accounts and Notes Receivable (Other than from Tenants): Original Original Balance Balance Name of Borrower Date Terms Amount Due Due from Housing Trust Fund 12/31/2017 Note 9 $ 8,181 $ 8,181 Due from Ravinia Housing Association 9/1/2022 Note 9 $ 37,500 $ 37,500 Due from Ravinia Housing Association 2/28/2025 Note 9 $ 14,974 $ 14,974 Total $ 60,655 $ 60,655 Escrow Deposits and Funded Reserve Activities: 12/31/24 Additions Earned Withdrawals 12/31/25 Real estate tax and insurance $ 37,483 $ 60,629 $ 2,161 $ (50,000) $ 50,273 Replacement reserve 197,484 24,006 8,913 - 230,403 Working capital reserve 160,336 - 7,094 - 167,430 Residual receipts reserve 15,022 - 665 - 15,687 Totals $ 410,325 $ 84,635 $ 18,833 $ (50,000) $ 463,793 Other Receivable: 2025 2024 None - - 21 see independent auditors' report Page 65 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTARY INFORMATION December 31, 2025 Accounts Payable (Other than Trade Creditors): Date Original Amount Creditor Purpose Incurred Terms Amount Due None Other Accrued Expenses: 12/31/2025 12/31/2024 Accrued wages and payroll taxes payable $ 15,342 $ 14,022 Miscellaneous current liabilities 26,780 29,758 Total accrued expenses $ 42,122 $ 43,780 Compensation of Partners: 12/31/2025 None $ - Total $ - 22 see independent auditors' report Page 66 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTARY INFORMATION December 31, 2025 Changes in Fixed Assets Year Ended December 31, 2025 ASSETS Balance Balance 1/1/2025 Additions Deductions 12/31/2025 Building $ 5,716,627 $ 20,988 $ - $ 5,737,615 Equipment 553,056 - - 553,056 Furniture and fixtures 702,000 15,209 - 717,209 $ 6,971,683 $ 36,197 $ - $ 7,007,880 ACCUMULATED DEPRECIATION Balance Balance 1/1/2025 Additions Deductions 12/31/2025 Building $ 3,807,902 $ 133,610 $ - $ 3,941,512 Equipment 440,862 26,119 - 466,981 Furniture and Fixtures 666,517 15,023 - 681,540 $ 4,915,281 $ 174,752 $ - $ 5,090,033 Total net book value $ 1,917,847 23 see independent auditors' report Page 67 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTARY INFORMATION December 31, 2025 Schedule of Funds in Financial Institutions December 31, 2025 A. Funds Held by Mortgagor, regular operating account: 1. Highland Park Bank and Trust - Checking 3 $ 1,368,564 2. Highland Park Bank and Trust - Partnership cash account 1 14,830 3. Highland Park Bank and Trust - Partnership Money Market account 1 522,542 4. Highland Park Bank and Trust - Partnership CD 1 555,779 B. Funds Held by Mortgagor, in Trust, tenant security deposits: 1. Highland Park Bank and Trust - Savings 3 34,181 Total Funds Held by Mortgagor 2,495,896 C. Funds Held by Mortgagee, (In Trust at IHDA) 1. Real estate tax and insurance escrow 2 51,015 2. Replacement reserve 2 232,663 3. Working capital escrow 2 169,105 4. Residual receipts reserve 2 15,844 Funds Held by Mortgagee, (total) 468,627 Total funds in financial institutions $ 2,964,523 1 Balances confirmed by Highland Park Bank and Trust (January 16, 2026) 2 Balances confirmed by Illinois Housing Development Authority (January 23,2026) 3 Balances confirmed by Highland Park Bank and Trust (January 29, 2026) 24 see independent auditors' report Page 68 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTARY INFORMATION December 31, 2025 A - Surplus cash computation Gross operating income Rental revenue $ 1,461,240 Other revenue 29,387 Vacancy loss (14,477) Total Gross Operating Income: 1,476,150 Less: Expenses Operating & Maintenance 120,333 Utilities 70,249 Insurance 172,821 Administrative 141,633 Total 505,036 All Other Operational Expenses 235,238 All losses on any investment of funds deposited in any reserve account - All sums required to be deposited in any reserve account 21,600 All sums due under the terms of the loan documents 132,150 All sums due under secondary financing Subordinate financing 68,106 Other financing expenses - Any payments made for deferred developer’s fee - Total deductions 962,130 Total surplus cash $ 514,020 B - Computation of Allowable Return on Equity: Project equity per final closing documents $ 293,187 Allowable rate of return 10.420% Current year allowable distribution 30,550 Add: unpaid cumulative return at December 31, 2024 2,011,387 Less: distributions paid during 2025 - Total cumulative unpaid distribution at December 31, 2025 $ 2,041,937 25 see independent auditors' report Page 69 of 276  PEERS HOUSING ASSOCIATION IHDA DEVELOPMENT NO. ML-93 SUPPLEMENTARY INFORMATION December 31, 2025 From Statement of Activities A. Net operating income (“NOI”) before financing, entity expenses, and depreciation $ 735,876 B. Less: replacement reserve payments required by IHDA 22,200 C. NOI adjusted (A minus B) 713,676 D. Debt service Mortgage principal payments 170,499 Mortgage interest 140,312 Total debt service $ 310,811 E. Debt Service Coverage Ratio (DCR) (C divided by D) 2.30 26 see independent auditors' report Page 70 of 276  ILLINOIS HOUSING DEVELOPMENT AUTHORITY EXHIBIT A SINGLE YEAR SCHEDULE OF FINANCIAL PERFORMANCE Exhibit A - IHDA Schedule of Financial Performance Borrower Name: Peers Housing Association Property Name: Frank B. Peers Senior Housing IHDA Project ID #: ML-93 Year End (MM/DD/YY): 12/31/2025 Balance Sheet Assets Accounts 12/31/2025 Total Fixed Assets $ 1,917,847.00 Current Assets Cash - project accounts $ 1,364,682.00 Cash - partnership accounts $ 1,093,151.00 Receivables: Tenant $ - Allowance for doubtful accounts $ - HUD $ 488.00 Medicaid $ - Others $ 60,655.00 Total Receivables $ 61,143.00 Prepaid Expenses: Insurance $ 68,446.00 Other $ - Total Prepaid Expenses $ 68,446.00 Other Current Assets $ - Total Current Assets $ 2,587,422.00 Deposits Held In Trust Cash (Restricted) $ 34,542.00 Less: Tenant Security Deposits $ (22,782.00) Total security deposits held in trust $ 11,760.00 Restricted Deposits and Funded Reserve Real estate tax and insurance escrow $ 50,273.00 Replacement Reserve $ 230,403.00 Other Reserves $ 183,117.00 Total restricted deposits and funded reserves $ 463,793.00 Other Assets Other Assets $ - Total Assets $ 4,980,822.00 Liabilities Current Liabilities Payables: Accounts payable trade $ - Other payables $ 180,817.00 Total Payables $ 180,817.00 Other Current Liabilities $ 68,422.00 Total Current Liabilities $ 249,239.00 27 see independent auditors' report Page 71 of 276  ILLINOIS HOUSING DEVELOPMENT AUTHORITY EXHIBIT A SINGLE YEAR SCHEDULE OF FINANCIAL PERFORMANCE Balance Sheet Accounts 12/31/2025 Long-Term Liabilities Total Long-Term Liabilities $ 2,137,480.00 Total Liabilities $ 2,386,719.00 Partners' Equity Partners' Equity $ 2,594,103.00 Total Liabilities and Partners' Equity (Deficit) $ 4,980,822.00 Statement of Operations Accounts 12/31/2025 Revenue Rental: Apartment rentals $ 264,846.00 Rent subsidy $ 1,195,674.00 Less: Vacancy loss $ (14,477.00) Less: Rental concessions $ - Commercial rent $ 720.00 Total Rental Revenue $ 1,446,763.00 Assisted Living: Assisted living services - tenant $ - Assisted living services - Medicaid $ - Meal program revenue $ - Service revenue $ - Total Assisted Living Revenue $ - Other: Other interest $ 3,680.00 Reserve interest $ 18,833.00 Sundry $ 4,879.00 Other revenue $ 1,995.00 Total Other Revenue $ 29,387.00 Total Revenue $ 1,476,150.00 Operational Expenses Administrative: Office expenses $ 37,197.00 Property management fees $ 75,676.00 Administration - contracted services $ - Social programming $ - Legal expenses $ 3,614.00 Audit expenses $ 11,310.00 Telephone $ 9,709.00 Bad debts $ 3,699.00 Marketing $ 428.00 Sundry $ - Other administrative $ - Total Administrative Expenses $ 141,633.00 Operating: Exterminating $ 1,779.00 Rubbish removal $ 7,812.00 Vehicle and equipment operating $ - Sundry $ - Other operating $ - Total Operating Expenses $ 9,591.00 28 see independent auditors' report Page 72 of 276  ILLINOIS HOUSING DEVELOPMENT AUTHORITY EXHIBIT A SINGLE YEAR SCHEDULE OF FINANCIAL PERFORMANCE Statement of Operations Accounts 12/31/2025 Maintenance: Security $ 4,678.00 Structural Repairs $ 1,842.00 Grounds $ 6,737.00 Carpeting $ - Elevator $ 7,596.00 Heating and air conditioning $ 23,892.00 Plumbing $ 10,173.00 Electrical $ - Painting and decorating $ 11,099.00 Appliance repairs $ - Maintenance - contracted services $ - Sundry $ 31,660.00 Other maintenance $ 13,065.00 Total Maintenance Expenses $ 110,742.00 Salaries: Office/Administrative staff $ 9,695.00 Maintenance $ 3,521.00 Other salaries $ 18,141.00 Total Salaries $ 31,357.00 Materials & Supplies: Office $ 95,069.00 Janitors $ 39,069.00 Maintenance $ 53,811.00 Other materials and supplies $ - Total Materials and Supplies $ 187,949.00 Utilities: Gas $ 24,987.00 Electricity $ 18,918.00 Water and sewer $ 26,344.00 Other utilities $ - Total Utilities $ 70,249.00 Taxes & Insurance: Real estate taxes $ - Property and liability insurance $ 123,626.00 Other taxes $ 15,932.00 Other insurance $ 49,195.00 Total Taxes and Insurance $ 188,753.00 Assisted Living: Nursing - contracted services $ - Activity - contracted services $ - Other service expenses $ - Total Assisted Living Expenses $ - Miscellaneous: Detail: $ - Detail: $ - Total Miscellaneous Expenses $ - Total Operational Expenses $ 740,274.00 NOI before financing and entity expenses, depreciation and amoritization $ 735,876.00 Financing Expenses Mortgage interest $ 148,329.00 Mortgage service fees $ 6,106.00 Mortgage insurance premium $ - Other expenses $ - Total Financing Expenses $ 154,435.00 29 see independent auditors' report Page 73 of 276  ILLINOIS HOUSING DEVELOPMENT AUTHORITY EXHIBIT A SINGLE YEAR SCHEDULE OF FINANCIAL PERFORMANCE Accounts 12/31/2025 Entity Expenses Partnership management fee $ - Incentive management fee $ - Asset management fee $ - Investor services fee $ - Other (income) expenses $ - Total Entity Expenses $ - Total Financing and Entity Expenses $ 154,435.00 Net income before depreciation and amortization $ 581,441.00 Depreciation $ 174,752.00 Amortization $ - Net Operating Income $ 406,689.00 Cash Flow Statement Accounts 12/31/2025 Cash Flows from Operating Activities Rental receipts $ 1,453,330.00 Interest receipts $ 22,513.00 Other operating receipts $ 6,874.00 Assisted living service receipts $ - Total Receipts $ 1,482,717.00 Administrative expenses paid $ 65,957.00 Management fees paid $ 75,676.00 Utilities paid $ 70,249.00 Operating and maintenance paid $ 122,007.00 Real estate taxes paid $ - Property insurance paid $ 114,453.00 Other taxes and insurance paid $ 65,127.00 Assisted living expenses paid $ - Net tenant security deposits paid (received) $ 2,779.00 Other operating expenses paid $ 225,412.00 Interest paid on first mortgage $ 141,152.00 Interest paid on second mortgage $ - Interest paid on all other mortgage(s) $ - Mortgage insurance premium paid $ - Miscellaneous financial expenses paid $ - Net deposits to (withdrawals from) real estate tax and insurance escrow $ 12,790.00 Net deposits to (withdrawals from) mortgage insurance $ - Net deposits to (withdrawals from) replacement reserve $ 32,919.00 Net deposits to (withdrawals from) residual receipts reserve $ - Net deposits to (withdrawals from) other reserves $ - Net deposits to (withdrawals from) operating reserve $ 7,759.00 Entity/Construction Expenses Paid (include detail) Partnership management fee paid $ - Incentive management fee paid $ - Investor services fee paid $ - Other fees paid $ - Total Disbursements $ 936,280.00 Net cash provided by (used in) operating activities $ 546,437.00 30 see independent auditors' report Page 74 of 276  ILLINOIS HOUSING DEVELOPMENT AUTHORITY EXHIBIT A SINGLE YEAR SCHEDULE OF FINANCIAL PERFORMANCE Cash Flow Statement Accounts 12/31/2025 Cash flows from investing activities Purchases of fixed assets $ (36,197.00) Other investing activities $ (14,974.00) Net cash provided by (used in) investing activities $ (51,171.00) Cash flows from financing activities Mortgage principal payments - first mortgage $ (170,499.00) Mortgage principal payments - second mortgage $ - Mortgage principal payments - all other mortgage(s) $ - Contributions from (distributions to) partners $ - Developer fee paid $ - Net (reimbursements to) proceeds from affiliates $ - Other financing activities $ - Net cash provided by (used in) financing activities $ (170,499.00) Net increase (decrease) in cash $ 324,767.00 Cash, Beginning $ 2,133,066.00 Cash, End $ 2,457,833.00 Long-Term Debt Detail (Inclusive of All Lenders) Lien Lender Balance Int. Rate Annual D/S Maturity 1 Illinois Housing Development Authority $2,290,000 5.77% $ 191,699.00 11/1/2035 2 Illinois Housing Development Authority $59,104 5.91% $ 60,856.00 4/1/2026 3 4 5 6 7 8 Required Replacement Reserve Deposits: $ 22,200.00 Debt Service Coverage Ratio Calculation Net operating income (NOI) before financing expenses, entity expenses and depreciation $ 735,876.00 Less: Required replacement reserve deposits $ 22,200.00 NOI adjusted $ 713,676.00 Debt Service Mortgage principal payments $ 170,499.00 Mortgage interest $ 140,312.00 Mortgage service fees $ - Mortgage insurance premium $ - Total $ 310,811.00 Debt Service Coverage Ratio (DCR) 2.296173559 31 see independent auditors' report Page 75 of 276  PEERS HOUSING ASSOCIATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND NOTES For the year ended December 31, 2025 ASSISTANCE FEDERAL GRANTOR/PASS- LISTING FEDERAL THROUGH AGENT/PROGRAM TITLE NUMBER EXPENDITURES U.S. Department of Housing and Urban Development: Section 8 Project-Based Cluster Section 8 Housing Assistance Payments 14.195 $1,195,674 Notes to Schedule of Expenditures of Federal Awards 1. Basis of presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the expenditures of Peers Housing Association under programs of the federal government for the year ended December 31, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 2. Summary of significant accounting policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122 Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available. Peers Housing Association did not elect to use the 15% de minimis indirect cost rate. 32 Page 76 of 276  INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of Peers Housing Association: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Peers Housing Association, which comprise the statement of financial position as of December 31, 2025, and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated March 11, 2026. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered Peers Housing Association’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Peers Housing Association’s internal control. Accordingly, we do not express an opinion on the effectiveness of Peers Housing Association’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2025-1, that we consider to be a significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Peers Housing Association’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying Schedule of Findings and Questioned Costs as item 2025-1. 33 Page 77 of 276 Peers Housing Association’s Response to Finding Government Auditing Standards requires the auditor to perform limited procedures on Peers Housing Association’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. Peers Housing Association’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Peers Housing Association’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Peers Housing Association’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Dover, Ohio March 11, 2026 34 Page 78 of 276  INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors of Peers Housing Association: Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited Peers Housing Association’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on Peers Housing Association’s major federal program for the year ended December 31, 2025. Peers Housing Association’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, Peers Housing Association complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2025. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Peers Housing Association and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Peers Housing Association’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Peers Housing Association’s federal program. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Peers Housing Association’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that 35 Page 79 of 276 resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Peers Housing Association’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Peers Housing Association’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of Peers Housing Association’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Peers Housing Association’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance, and which are described in the accompanying schedule of findings and questioned costs as item 2025-1. Our opinion on each major federal program is not modified with respect to these matters. Government Auditing Standards requires the auditor to perform limited procedures on Peers Housing Association’s response to the noncompliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. Peers Housing Association’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be significant deficiencies. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in 36 Page 80 of 276 internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of finding and questioned costs as item 2025-1 to be a significant deficiency. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on Peers Housing Association’s response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. Peers Housing Association’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Dover, Ohio March 11, 2026 37 Page 81 of 276  PEERS HOUSING ASSOCIATION IHDA PROJECT NO. ML-93 SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2025 Section I - Summary of Auditor’s Results Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting: Material weakness identified? Yes x No Significant deficiency identified not considered to be material weaknesses? x Yes None reported Noncompliance material to financial statements noted? Yes x No Federal Awards Internal Control over major programs: Material weakness identified? Yes x No Significant deficiency identified not considered to be material weaknesses? x Yes None reported Type of auditor’s report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes x No Identification of major programs: AL No. Name of Federal Program or Cluster 14.195 Section 8 Project-Based Cluster Dollar threshold used to distinguish between Type A and Type B programs: $1,000,000 Auditee qualified as low-risk auditee? x Yes No 38 Page 82 of 276  PEERS HOUSING ASSOCIATION IHDA PROJECT NO. ML-93 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) For the year ended December 31, 2025 Section II - Financial Statement Findings and Section III - Federal Award Findings and Questioned Costs Finding 2025‑1 Criteria HUD program requirements and project regulatory agreements require each property to maintain separate books and records and ensure that only expenses benefiting the property are charged to that property. Statement of condition During our testing for the year ended December 31, 2025, we noted that the Corporation paid two invoices totaling $14,974 on behalf of a related party, even though the expenses related exclusively to the related party Questioned costs $14,974 Effect or potential effect The Corporation’s financial activity was misstated, and project funds were used for costs that did not benefit the Corporation, resulting in non-compliance with HUD requirements and increasing the risk of improper use of project resources. Cause The error occurred because controls over invoice review and property level cost allocation were insufficient to prevent or detect misallocated expenses. Recommendation: We recommend management implement stronger controls over invoice coding and approval, including property specific reviews, to ensure expenses are charged only to the benefiting property and misallocations are prevented. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and is committed to strengthening our internal controls. We will review and enhance our invoice coding and approval procedures to ensure expenses are properly allocated to the correct property and to prevent similar issues from occurring in the future. The error was identified through our existing review procedures; however, reimbursement of the funds did not occur until February 2026. We believe the improvements underway will further support accurate financial reporting and continued compliance with HUD requirements. 39 Page 83 of 276  PEERS HOUSING ASSOCIATION IHDA PROJECT NO. ML-93 SCHEDULE OF THE STATUS OF PRIOR AUDIT FINDINGS, QUESTIONED COSTS, AND RECOMMENDATIONS December 31, 2025 Finding 2024‑1 Prior Year Finding: The Corporation did not have adequate internal controls in place to ensure proper initiation, authorization, recording, processing, and reporting of financial data in accordance with generally accepted accounting principles. A prior‑year audit adjustment related to accumulated depreciation and net assets had not been posted, resulting in misstated account balances. Status: Corrected 40 Page 84 of 276 Page 85 of 276 Page 86 of 276  INFORMATION REGARDING AUDITORS To: Illinois Housing Development Authority RE: Peers Housing Association IHDA PROJECT NO.: ML-93 Year ended December 31, 2025 AUDITOR INFORMATION Name: Novogradac & Company LLP Address: 3025 North Wooster Ave., Dover, Ohio, 44622 Phone: (330) 365-5400 Lead Auditor Dirk A. Wallace Federal ID# 94-3108253 Audit Partner: Dirk A. Wallace Firm: Novogradac & Company LLP Telephone Number: (330) 365-5400 Federal Employer ID# 94-3108253 43 Page 87 of 276 RAVINIA HOUSING ASSOCIATION HUD Project No.: 071-35843 Financial Statements and Supplementary Information with Report of Independent Auditors December 31, 2025 Page 88 of 276  TABLE OF CONTENTS Page Report of Independent Auditors 1-3 Financial Statements: Statement of Financial Position 4 Statement of Activities and Changes in Net Deficit 5 Statement of Functional Expenses 6 Statement of Cash Flows 7 Notes to the Financial Statements 8-14 Supplementary Information: Supporting Data Required by HUD 15-25 Schedule of Expenditures of Federal Awards 26 Independent Auditors Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 27-28 Independent Auditors Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 29-31 Schedule of Findings and Questioned Costs 32-33 Schedule of the Status of Prior Audit Findings, Questioned Costs, and Recommendations (Unaudited) 34 Mortgagor’s (Owner’s) Certification (Unaudited) 35 Managing Agent’s Certification (Unaudited) 36 Page 89 of 276  Report of Independent Auditors To the Board of Directors of Ravinia Housing Association: Opinion We have audited the accompanying financial statements of Ravinia Housing Association (HUD Project No. 071- 35843), which comprise the statement of financial position as of December 31, 2025, and the related statements of activities and changes in net deficit, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ravinia Housing Association as of December 31, 2025, and the changes in its net deficit and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Ravinia Housing Association and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Ravinia Housing Association’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Page 90 of 276 In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Ravinia Housing Association’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Ravinia Housing Association’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Report on Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information, which includes HUD-required financial data templates as required by the Uniform Financial Reporting Standards issued by the U.S. Department of Housing and Urban Development, Office of the Inspector General, and the accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information and schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the financial statements as a whole. The schedule of the status of prior audit findings, questioned costs, and recommendations, mortgagor’s (owner’s) certification, and the managing agent’s certification, have not been subjected to the auditing procedures applied in the audit of the financial statements and accordingly, we do not express an opinion or provide any assurance on them. 2 Page 91 of 276 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2026 on our consideration of Ravinia Housing Association’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Ravinia Housing Association’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Ravinia Housing Association’s internal control over financial reporting and compliance. Dover, Ohio March 11, 2026 Lead Auditor: Dirk A. Wallace Employer’s Identification Number: 94-3108253 3 Page 92 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF FINANCIAL POSITION December 31, 2025 ASSETS Cash and cash equivalents $ 16,877 Cash - entity 176,126 Restricted cash 61,123 Accounts receivable - tenant, net 901 Accounts receivable - subsidy 87 Prepaid expenses 24,657 Fixed assets, net of accumulated depreciation 213,311 Total assets $ 493,082 LIABILITIES AND NET DEFICIT Liabilities Accounts payable $ 82 Tenant security deposits payable 8,700 Prepaid rent 7,126 Accrued interest mortgage notes payable 24,234 Accrued expenses 4,938 Due to related party 52,402 Mortgage note payable - first mortgage, net of debt issuance costs 256,925 Mortgage note payable - second mortgage 459,323 Total liabilities 813,730 Net deficit without donor restrictions (320,648) Total Liabilities and net deficit without donor restrictions $ 493,082 See accompanying notes 4 Page 93 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF ACTIVITIES AND CHANGES IN NET DEFICIT For the year ended December 31, 2025 WITHOUT DONOR RESTRICTIONS REVENUE AND OTHER SUPPORT Rental revenue - gross potential $ 82,889 Tenant assistance payments 277,050 Less: rent concession (141) Less: vacancy loss (8,044) Other revenue 1,345 Interest income 532 Total revenue and other support 353,631 EXPENDITURES General and administrative 23,507 Payroll 62,777 Utilities 11,950 Insurance 48,329 Property management fees 13,556 Repairs and maintenance 95,479 Marketing and advertising 617 Legal and other professional fees 24,081 Interest 26,893 Miscellaneous financial 25 Mortgage insurance premium 1,336 Total expenditures 308,550 CHANGE IN NET ASSETS BEFORE DEPRECIATION 45,081 Depreciation 60,227 CHANGE IN NET DEFICIT (15,146) NET DEFICIT AT BEGINNING OF YEAR (305,502) NET DEFICIT AT END OF YEAR $ (320,648) See accompanying notes 5 Page 94 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF FUNCTIONAL EXPENSES For the year ended December 31, 2025 Program Administrative EXPENDITURES Services and Support Total General and administrative $ - $ 23,507 $ 23,507 Payroll 62,777 - 62,777 Utilities 11,950 - 11,950 Insurance 48,329 - 48,329 Property management fees - 13,556 13,556 Repairs and maintenance 95,479 - 95,479 Marketing and advertising 617 - 617 Legal and other professional fees 24,081 - 24,081 Interest - 26,893 26,893 Mortgage insurance premium 1,336 - 1,336 Miscellaneous financial 25 - 25 Depreciation 60,227 - 60,227 Total expenditures $ 304,821 $ 63,956 $ 368,777 See accompanying notes 6 Page 95 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF CASH FLOWS For the year ended December 31, 2025 Cash Flows from Operating Activities: Change in net deficit $ (15,146) Adjustments to reconcile change in net deficit to net cash provided by operating activities Interest expense - debt issuance costs 2,089 Depreciation 60,227 Change in: Accounts receivable - tenant 6,215 Accounts receivable - subsidy 1,227 Prepaid expenses 7,455 Accounts payable (47,895) Tenant security deposit payable 744 Prepaid rent 4,233 Accrued interest 11,437 Accrued expenses (1,163) Net cash provided by operating activities 29,423 Cash Flows from Investing Activities: Payments for fixed assets (51,324) Net cash used in investing activities (51,324) Cash Flows from Financing Activities: Principal payments on mortgage payable (11,958) Proceeds from related party loan 14,974 Net cash provided by financing activities 3,016 Net Change in Cash, Cash Equivalents, and Restricted Cash (18,885) Cash, Cash Equivalents, and Restricted Cash Beginning of Year 273,011 Cash, Cash Equivalents, and Restricted Cash End of Year $ 254,126 Cash and each equivalents $ 16,877 Cash - entity 176,126 Restricted cash 61,123 Total cash, cash equivalents, and restricted cash $ 254,126 Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 13,367 See accompanying notes 7 Page 96 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 1. Organization Ravinia Housing Association (the “Corporation”) (HUD Project No. 071-35843) operates a 17-unit rental development in Highland Park, Illinois known as Ravinia Housing (the “Project”). The Project is operated under Sections 223(a)(7) and 8 of the National Housing Act of 1937. The Project is regulated by the provisions of a regulatory agreement (the “Regulatory Agreement”) executed between the Corporation and the U.S. Department of Housing and Urban Development (“HUD”). The Corporation is a not-for-profit corporation, under Internal Revenue Code Section 501(c)(3), organized under the laws of the State of Illinois, effective July 17, 1943. 2. Summary of significant accounting policies and nature of operations Basis of accounting The Corporation prepares its financial statements on the accrual basis of accounting consistent with accounting principles generally accepted in the United States of America. Basis of presentation The Corporation is required to report information regarding its financial position and activities according to the following net asset classifications: Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of the Corporation. These net assets may be used at the discretion of the Corporation’s management and the board of directors. Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature, which will be met by actions of the Corporation or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statement of activities. The Corporation has no net assets with donor restrictions. Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include all cash balances on deposit with financial institutions and highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is not considered cash and cash equivalents, and includes cash held with financial institutions for refunds of tenant security deposits, repairs or improvements to the buildings which extend their useful lives, annual insurance payments, and a special escrow to be used for repairs. 8 Page 97 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 2. Summary of significant accounting policies and nature of operations (continued) Accounts receivable and bad debts Accounts receivable is stated at the amount management expects to collect from outstanding balances. Management closely monitors outstanding balances and provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances that remain outstanding after management has used reasonable collection efforts are generally written off through a charge to the valuation allowance and a credit to trade accounts receivable. As of December 31, 2025, the balance of the allowance for doubtful accounts was $0. Economic concentrations The Corporation operates one property located in Highland Park, Illinois. Future operations could be affected by economic changes or other conditions in that geographical area or by changes in federal low-income subsidies or the demand for such housing. In addition, the Corporation operates in a heavily regulated environment. The operations of the Corporation are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to, HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related cost, including the additional administrative burden, to comply with a change. Functional expenses The costs of providing program services and other activities have been reported in the statement of functional expense. Management believes all costs of providing program services and other activities are allocable to providing residential rental services. Accordingly, certain costs have been allocated among program services and administrative and support services benefited. Such allocations are determined by management on an equitable basis. Management allocates all costs associated with financing, administrative, and property management fees to administrative and support services. All other costs are allocated to program services. The Corporation does not engage in fundraising and therefore does not allocate any expenses to fundraising services benefited. Revenue recognition for tenant leases and tenant charges The Corporation is the lessor of the Project and accounts for tenant leases as operating leases. The Corporation determines if a contract is a lease or contains a lease at inception. At the commencement of an operating lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Rental income attributable to residential leases is recorded when due from residents, generally upon the first day of each month. Leases are for periods of up to one year, with rental payments due monthly. Other income includes fees for late payments, cleaning, damages, laundry facilities and other charges and is recorded when earned. Advance receipts of revenue are deferred and classified as liabilities until earned. Federally-subsidized rent income The Project is subject to a Section 8 Housing Assistance Payments (“HAP”) agreement with HUD. The effective date of this agreement was January 23, 2012, and the agreement expires January 31, 2032. HUD agreed to pay the owner the difference between the contract rent, as defined in the HAP agreement, and that portion of such rent payable by qualified tenants. All 17 units were covered under the Section 8 contract. For the year ended December 31, 2025, rental subsidy totaled $277,050. 9 Page 98 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 2. Summary of significant accounting policies and nature of operations (continued) Concentration of credit risk The Corporation places its temporary cash investments in bank deposit accounts which, at times, may exceed federally insured limits. The Corporation has not experienced any losses in such accounts. The Corporation believes it is not exposed to any significant credit risk on cash and cash equivalents. Income taxes The Corporation is exempt from federal income taxes under Internal Revenue Code Section 501(c)(3) and from Illinois income and franchise taxes. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Corporation to report information regarding its exposure to various tax positions taken by the Corporation. The Corporation has determined whether any tax positions have met the recognition threshold and has measured the Corporation’s exposure to those tax positions. Management believes that the Corporation has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Federal and state tax authorities generally have the right to examine and audit the previous three years of tax returns filed. Any interest or penalties assessed to the Corporation are recorded in operating expenses. No interest or penalties from federal or state tax authorities were recorded in the accompanying financial statements. Fixed assets and depreciation All fixed assets are recorded at cost. Depreciation on the main building structures and improvements is computed using the straight-line method over 5 to 40 years. Furniture for project/tenant use is depreciated over a 5 to 10 year period using the straight-line method. Depreciation expense for the year ended December 31, 2025 was $60,227. Fixed assets consist of the following as of December 31, 2025: Buildings and improvements $ 2,012,052 Furniture for project/tenant use 483,248 Less: accumulated depreciation (2,281,989) Fixed assets, net $ 213,311 Impairment of long-lived assets The Corporation reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the future net undiscounted cash flows expected to be generated and any estimated proceeds from the eventual disposition. If the long-lived asset is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount exceeds the fair value as determined from an appraisal, discounted cash flow analysis or other valuation technique. There was no impairment loss recognized for the year ended December 31, 2025. 10 Page 99 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 2. Summary of significant accounting policies and nature of operations (continued) Subsequent events Subsequent events have been evaluated through March 11, 2026, which is the date the financial statements were available to be issued, and there are no subsequent events requiring disclosure. 3. Liquidity and availability of financial assets The following represents the Corporation’s financial assets at December 31, 2025: Cash and cash equivalents $ 16,877 Cash - entity 176,126 Restricted cash 61,123 Accounts receivable - subsidy 87 Accounts receivable – tenant, net 901 Total financial assets 255,114 Less amounts not available to be used within one year (61,123) Financial assets available to meet general expenditures over the next twelve months $ 193,991 The Corporation’s goal is generally to maintain financial assets to meet 90 days of operating expenses (approximately $75,000). As part of its liquidity management plan, excess cash is invested in savings accounts. 4. Restricted cash Tenant security deposits Tenant security deposits are held in trust in a separate bank account in the name of the Corporation. Until termination of the lease, tenant security deposits are owed to the tenants and are recorded as a liability. As of December 31, 2025, the tenant security deposits account balance was $9,300. Reserve for replacements In accordance with the terms of the Regulatory Agreement, the Corporation is required to make monthly deposits of $1,367 to the replacement reserve. Replacement reserve withdrawals are subject to approval by HUD. As of December 31, 2025, the balance was $30,037. Escrow deposits The Regulatory Agreement requires that monthly payments to the mortgagee include amounts for deposit to mortgage escrow funds. These are held by the mortgagee for future payment of real estate taxes and property and mortgage insurance. This fund is restricted in accordance with the provisions of the Regulatory Agreement. As of December 31, 2025, the escrow deposits balance was $21,786. 11 Page 100 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 4. Restricted cash (continued) Cash-Entity The following is the activity in the cash – entity account for the year ended December 31, 2025: Balance January 1, 2025 $ 175,907 Withdrawals: Secretary of State Filing (10) Illinois Charity Bureau Fund (15) Interest earned 244 Balance December 31, 2025 $ 176,126 5. Property management fee Pursuant to a property management agreement approved by HUD, Evergreen Real Estate Services, LLC (the “Agent”) receives a property management fee in the amount of 3.8% of gross collections. Management fees incurred by the Project are calculated as the lesser of fees allowed by HUD and the fees allowed under the management agreement with the Agent. For the year ended December 31, 2025, property management fees of $13,556 were incurred. As of December 31, 2025, property management fees of $1,334 were payable. 6. Mortgages payable First mortgage On January 31, 2012, the Corporation refinanced its original HUD insured mortgage with a new mortgage (the “First Mortgage”) provided by the Federal Housing Administration pursuant to the market-to-market program (M2M) under Section 223(a)7 of the National Housing Act. The First Mortgage had an original amount of $416,500 and bears interest at 4.5%. The First Mortgage is payable in monthly installments of principal and interest of $2,111 with any remaining unpaid principal due in full at maturity on February 1, 2042. The First Mortgage is collateralized by the Project. During 2025, interest expense incurred was $13,322. As of December 31, 2025, the outstanding mortgage balance and accrued interest were $290,512 and $1,089, respectively. Future minimum principal payment requirements over each of the next five years and thereafter are as follows: Year ending December 31, 2026 $ 12,507 2027 13,081 2028 13,682 2029 14,311 2030 14,968 Thereafter 221,963 Total $ 290,512 12 Page 101 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 6. Mortgages payable (continued) First mortgage (continued) Debt issuance costs are being amortized to interest expense over the term of the loan. For 2025, the effective interest rate was 5.81%. During 2025, amortization expense for debt issuance costs was $2,089. Mortgage restructuring note On January 23, 2012, the Corporation obtained a mortgage with HUD in the amount of $713,396 (the “Mortgage Restructuring Note”). The Mortgage Restructuring Note is payable in annual installments, including simple interest at the rate of 2.5% until paid, plus a service charge. The payment is due within ten days after the date that the annual financial statements are due (April 10) and is only payable as determined by the Computation of Surplus Cash and Residual Receipts (“Surplus Cash”), or 75% of Surplus Cash as defined in the Regulatory Agreement. For the year ended December 31, 2025, $4,683 was required to be remitted as determined by the available Surplus Cash at December 31, 2024. For the year ended December 31, 2024, $4,496 was required to be remitted as determined by the available Surplus Cash at December 31, 2023. For the year ended December 31, 2025, interest expense was $11,482 and interest paid totaled $0. As of December 31, 2025, the principal balance remaining was $459,323, and accrued interest was $23,145. The Mortgage Restructuring Note, subordinated to the First Mortgage, is secured by all real and personal property of the Corporation, in addition to funds on deposit with the servicer. Mortgages payable consist of the following as of December 31, 2025: Principal balance – First Mortgage $ 290,512 Less: unamortized debt issuance costs – First Mortgage (33,587) $ 256,925 Principal balance – Mortgage Restructuring Note $ 459,323 Less: unamortized debt issuance costs – Mortgage Restructuring Note - $ 459,323 7. Capital recovery payments In accordance with the Mortgage Restructuring Note, capital recovery payments (the “CRP”) are payable in monthly installments in the amount of $558 for 180 months, to reimburse the Corporation for advances required when the original mortgage was restructured. The CRP bears a 7% interest rate. The Corporation transfers the CRP payments to the cash-entity account annually. As of December 31, 2025, $59,130 has been transferred to the cash – entity account. The CRP for the years ended December 31, 2025, 2024, 2023, and 2022 of $6,696 for each year was not transferred to the cash – entity account as of December 31, 2025. The annual transfers due to the cash – entity account for the CRP for the year ending December 31, 2026 is $41,310. 13 Page 102 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 8. Incentive performance fee The Regulatory Agreement provides for an incentive performance fee, which is an annual fee to the Corporation in the amount of 1.4% of the effective gross income derived from the Project. Effective gross income equals all rentals and other income generated annually through the operations of the Project. The incentive performance fee is payable to the owner, if at all, after HUD concludes that: 1. All Project expenses have been paid, including any accrued expenses for which payment is due from the previous years audited financial statements. 2. There is no outstanding sum due under the first mortgage. 3. The Project receives a passing physical inspection score (greater than 60), from the Real Estate Assessment Center. 4. HUD resolves all management findings. 5. There are no violations of any agreement entered into with HUD. For the year ended December 31, 2025, a fee of $0 was incurred. The Corporation transfers the incentive performance fee incurred from the cash and cash equivalents account to the cash – entity account. The incentive performance fees for the years ended December 31, 2025, 2024, 2023, 2022 and 2021 of $5,039, $4,683, $4,496, $4,380 and $4,380, respectively, have not been transferred to the cash – entity account as of December 31, 2025. 9. Property tax exemption The State of Illinois Department of Revenue determined that the Corporation met the exemption qualifications necessary to receive a non-homestead property tax exemption. 10. Related party transactions Due to Peers Housing Association During 2022, Peers Housing Association, which is an entity managed by the Housing Commission of the City of Highland Park that also manages the Corporation, provided advances to the Corporation to fund a refinance application fee for the property. During 2025, Peers Housing Association provided advances to the Corporation to fund certain fixed asset additions. These advances are unsecured and do not bear interest. As of December 31, 2025, $52,402 remained payable to Peers Housing Association. 14 Page 103 of 276 SUPPLEMENTARY INFORMATION Page 104 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF FINANCIAL POSITION - HUD BASIS December 31, 2025 ASSETS CURRENT ASSETS 1120 Cash - operations $ 16,877 1125 Cash - entity 176,126 1130 Tenant accounts receivable 901 1130N Net tenant accounts receivable 901 1135 Accounts receivable - HUD 87 1200 Prepaid expenses 24,657 1100T Total current assets 218,648 DEPOSITS HELD IN TRUST 1191 Tenant deposits held in trust 9,300 RESTRICTED DEPOSITS AND FUNDED RESERVES 1310 Escrow deposits 21,786 1320 Replacement reserve 30,037 1300T Total deposits 51,823 FIXED ASSETS 1420 Buildings 2,012,052 1450 Furniture for project/tenant use 483,248 1400T Total fixed assets 2,495,300 1495 Accumulated depreciation 2,281,989 1400N Net fixed assets 213,311 1000T TOTAL ASSETS $ 493,082 See report of independent auditors 16 Page 105 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF FINANCIAL POSITION - HUD BASIS (CONTINUED) December 31, 2025 LIABILITIES AND EQUITY CURRENT LIABILITIES 2110 Accounts payable - operations $ 82 2120 Accrued wages payable 3,604 2123 Accrued management fee payable 1,334 2131 Accrued interest payable - first mortgage (or bonds) 1,089 2132 Accrued interest payable - other mortgages 23,145 2170 Mortgage payable - first mortgage (short-term) 12,507 2190 Miscellaneous current liabilities 52,402 2210 Prepaid revenue 7,126 2122T Total current liabilities 101,289 DEPOSIT LIABILITIES 2191 Tenant deposits held in trust 8,700 LONG-TERM LIABILITIES 2320 Mortgage payable - first mortgage 278,005 2323 Other loans and notes payable - surplus cash 459,323 2340 Debt issuance costs (33,587) 2300T Total long-term liabilities 703,741 2000T Total liabilities 813,730 3130 Net assets without donor restrictions (320,648) 2033T TOTAL LIABILITIES AND EQUITY $ 493,082 See report of independent auditors 17 Page 106 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF ACTIVITIES - HUD BASIS For the year ended December 31, 2025 RENTAL INCOME 5120 Rent revenue - gross potential $ 82,889 5121 Tenant assistance payments 277,050 5100T Total rental revenue 359,939 VACANCIES 5220 Apartments 8,185 5200T Total vacancies 8,185 5152N Net rental revenue (rent revenue less vacancies) 351,754 FINANCIAL REVENUE 5410 Financial revenue - project operations 251 5440 Revenue from investments - replacement reserve 281 5400T Total financial revenue 532 OTHER REVENUE 5920 Tenant charges 315 5990 Miscellaneous revenue 1,030 5900T Total other revenue 1,345 5000T Total revenue 353,631 ADMINISTRATIVE EXPENSES 6204 Management consultants 5,865 6210 Advertising and marketing 107 6310 Office salaries 23,808 6311 Office expenses 13,952 6320 Management fee 13,556 6340 Legal expenses 3,566 6350 Auditing expenses 14,650 6370 Bad debts 7,842 6390 Miscellaneous administrative expenses (specify) 4,830 6263T Total administrative expenses 88,176 UTILITY EXPENSES 6450 Electricity (light and miscellaneous power) 1,728 6451 Water 7,355 6452 Gas 260 6400T Total utility expenses 9,343 See report of independent auditors 18 Page 107 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF PROFIT AND LOSS - HUD BASIS (CONTINUED) For the year ended December 31, 2025 OPERATING AND MAINTENANCE EXPENSES 6510 Payroll 19,712 6515 Supplies 5,644 6520 Contracts 8,296 6525 Garbage and trash removal 9,085 6530 Security payroll/contract 2,424 6546 Heating/cooling repairs and maintenance 5,729 6548 Snow removal 27,950 6590 Miscellaneous operating and maintenance expenses Landscaping 10,616 Decorating 11,125 Fire protection 4,919 Plumbing repairs 11,404 Temp maintenance contractor 2,464 Ground supplies and equipment repairs 67 Roof repairs 644 Social service coordinator 65 6500T Total operating and maintenance expenses 120,144 TAXES AND INSURANCE 6711 Payroll taxes (project’s share) 3,733 6720 Property and liability insurance (hazard) 48,329 6722 Workmen's compensation 375 6723 Health insurance and other employee benefits 10,196 6700T Total taxes and insurance 62,633 FINANCIAL EXPENSES 6820 Interest on first mortgage (or bonds) payable 15,411 6830 Interest on notes payable (long-term) 11,482 6850 Mortgage insurance premium/service charge 1,336 Other entity expense 25 6800T Total financial expenses 28,254 OPERATING RESULTS 6000T Total costs of operation before depreciation 308,550 5060T Profit (loss) before depreciation 45,081 6600 Depreciation expenses 60,227 5060N Operating profit or (loss) (15,146) 3250 Change in total net assets from operations $ (15,146) See report of independent auditors 19 Page 108 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF PROFIT AND LOSS - HUD BASIS (CONTINUED) For the year ended December 31, 2025 Part II S1000-010 Total first mortgage principal payments required during the audit period (12 monthly payments). This applies to all direct loans, HUD-held and HUD-insured first mortgages. $ 11,958 S1000-020 The total of all monthly reserve for replacement deposits (usually 12 months) required during the audit period even if deposits have been temporarily waived or suspended. $ 21,038 S1000-030 Replacement Reserves, or Residual receipts and Releases which are included as expense items on this Profit and Loss statement. $ 4,862 See report of independent auditors 20 Page 109 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF CHANGES IN NET DEFICIT - HUD BASIS For the year ended December 31, 2025 S1100-010 Previous year net assets without donor restrictions $ (305,502) 3247 Change in net assets without donor restrictions (15,146) 3131 Net assets without donor restrictions $ (320,648) S1100-050 Previous year total net assets $ (305,502) 3250 Change in total net assets from operations (15,146) 3130 Total net assets $ (320,648) See report of independent auditors 21 Page 110 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 STATEMENT OF CASH FLOWS - HUD BASIS For the year ended December 31, 2025 CASH FLOWS FROM OPERATING ACTIVITIES S1200-010 Rental receipts $ 363,429 S1200-020 Interest receipts 532 S1200-030 Other operating receipts 1,345 S1200-040 Total receipts 365,306 CASH PAID FOR: S1200-050 Administrative expenses (74,216) S1200-070 Management fee expense (15,103) S1200-090 Utilities expenses (9,343) S1200-100 Salaries and wages expense (19,712) S1200-110 Operating and maintenance expenses (140,892) S1200-140 Property insurance expense (62,633) S1200-160 Tenant security deposits (209) S1200-180 Interest on first mortgage (13,367) S1200-210 Mortgage insurance premium (1,336) S1200-220 Miscellaneous financial (25) S1200-230 Total disbursements (336,836) S1200-240 Net cash provided by operating activities 28,470 CASH FLOWS FROM INVESTING ACTIVITIES S1200-245 Net deposits to the mortgage escrow account (4,926) S1200-250 Net withdrawals from the reserve for replacement account 34,868 S1200-330 Purchase of fixed assets (51,324) S1200-350 Net cash used in investing activities (21,382) CASH FLOWS FROM FINANCING ACTIVITIES S1200-360 Principal payments - first mortgage (or bonds) (11,958) S1200-450 Other financing activities 14,974 S1200-460 Net cash provided by financing activities 3,016 S1200-470 NET CHANGE IN CASH & EQUIVALENTS 10,104 S1200-480 BEGINNING OF YEAR CASH 182,899 S1200T END OF YEAR CASH $ 193,003 See report of independent auditors 22 Page 111 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 SUPPORTING DATA REQUIRED BY HUD For the year ended December 31, 2025 SCHEDULE OF CHANGES IN REPLACEMENT RESERVE 1320P Balance at beginning of year $ 64,905 1320DT Total monthly deposits 21,038 1320INT Interest on replacement reserve accounts 281 1320WT Approved withdrawals (56,187) 1320 Balance at the end of year, confirmed by mortgagee $ 30,037 1320R Deposits Suspended or Waived indicator NO See report of independent auditors 23 Page 112 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 COMPUTATION OF SURPLUS CASH - HUD BASIS December 31, 2025 COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS, AND RESIDUAL RECEIPTS S1300-010 Cash (Accounts 1110, 1121, 1192) $ 26,177 1135 Accounts receivable - HUD 87 S1300-040 Total cash 26,264 S1300-050 Accrued mortgage (or bond) interest payable 1,086 S1300-075 Accounts payable (due within 30 days) 82 S1300-100 Accrued expenses (not escrowed) 57,340 2210 Prepaid revenue 7,126 2191 Tenant deposits held in trust 8,700 S1300-110 Other current obligations S1300-120 First mortgage principal due in the following month S1300-130 $ 1,025 S1300-120 Replacement reserve deposit due in the following month S1300-130 $ 1,829 2,854 S1300-140 Less total current obligations 77,188 S1300-150 Surplus cash (deficiency) $ (50,924) S1300-203 Incentive performance fee 5,039 S1300-204 Percentage surplus cash split 75% S1300-205 Required payments on restructuring note $ - S1300-206 Surplus cash available for distribution $ - See report of independent auditors 24 Page 113 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 SCHEDULE OF CHANGES IN FIXED ASSET ACCOUNTS For the year ended December 31, 2025 Beginning Ending Balance Additions Deductions Balance 1420 Buildings $ 1,979,705 $ 32,347 $ - $ 2,012,052 1460 Furniture for project/tenant use 464,271 18,977 - 483,248 TOTAL $ 2,443,976 $ 51,324 $ - $ 2,495,300 Accumulated depreciation (2,221,762) $ (60,227) $ - $ (2,281,989) Net book value $ 222,214 $ 213,311 Additions consist of: 1420 Building 1420AT Water heater $ 13,300 1420AT Fire supression system 4,073 1420AT Ejector pumps 9,032 1420AT Furnace 5,942 $ 32,347 1450 Furniture for project/tenant use 1450AT Appliances (range, tub, water heater) $ 12,101 1450AT Flooring 6,876 $ 18,977 See independent auditors report 25 Page 114 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND NOTES For the year ended December 31, 2025 ASSISTANCE LISTING FEDERAL FEDERAL GRANTOR NUMBER EXPENDITURES U.S. Department of Housing and Urban Development: Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate 14.135 $ 761,793 Section 8 Project-Based Cluster Section 8 Housing Assistance Payments 14.195 277,050 Total Expenditures of Federal Awards $ 1,038,843 Notes to Schedule of Expenditures of Federal Awards 1. Basis of presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the expenditures of Ravinia Housing Association under programs of the federal government for the year ended December 31, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 2. Summary of significant accounting policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and OMB Circular A-122 Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowed. Assistance listing numbers (“AL No.”) are provided when available. Ravinia Housing Association did not elect to use the 15% de minimis indirect cost rate. 3. Outstanding federal loans The following represents the amount of outstanding loans identified by AL No. All loans are provided by HUD and are included in the Schedule. Prior year loans Loans with continuing Total AL received compliance outstanding No. Program title in 2025 requirements loans 14.135 Mortgage Insurance Rental & Cooperative Housing for Moderate Income Families & Elderly, Market Interest Rate $ - $ 761,793 $ 749,835 26 Page 115 of 276  INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of Ravinia Housing Association: We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Ravinia Housing Association (a nonprofit organization), which comprise the statement of financial position as of December 31, 2025, and the related statements of activities and changes in net deficit, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated March 11, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Ravinia Housing Association’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Ravinia Housing Association’s internal control. Accordingly, we do not express an opinion on the effectiveness of the organization's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Ravinia Housing Association’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. 27 Page 116 of 276 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Ravinia Housing Association’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Ravinia Housing Association’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Dover, Ohio March 11, 2026 28 Page 117 of 276  INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Board of Directors of Ravinia Housing Association: Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited Ravinia Housing Association’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on Ravinia Housing Association’s major federal program for the year ended December 31, 2025. Ravinia Housing Association’s major federal program is identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, Ravinia Housing Association complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended December 31, 2025. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of Ravinia Housing Association and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of Ravinia Housing Association’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to Ravinia Housing Association’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on Ravinia Housing Association’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance 29 Page 118 of 276 when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about Ravinia Housing Association’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Ravinia Housing Association’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of Ravinia Housing Association’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of Ravinia Housing Association’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 30 Page 119 of 276 The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Dover, Ohio March 11, 2026 31 Page 120 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2025 Section I - Summary of Auditor’s Results Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting: Material weakness identified? Yes x No Significant deficiency identified not considered to be material weaknesses? Yes x None reported Noncompliance material to financial statements noted? Yes x No Federal Awards Internal Control over major programs: Material weakness identified? Yes x No Significant deficiency identified not considered to be material weaknesses? Yes x None reported Type of auditor’s report issued on compliance for major programs: Unmodified Audit findings required to be reported in accordance with 2 CFR section 200.516(a)? Yes x No Identification of major programs: AL Number(s) Name of Federal Program or Cluster 14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate Dollar threshold used to distinguish between Type A and Type B programs: $1,000,000 Auditee qualified as low-risk auditee? Yes X No 32 Page 121 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the year ended December 31, 2025 Section II - Financial Statement Findings There were no findings noted. Section III - Federal Award Findings and Questioned Costs There were no findings noted. 33 Page 122 of 276  RAVINIA HOUSING ASSOCIATION HUD PROJECT NO. 071-35843 SCHEDULE OF THE STATUS OF PRIOR AUDIT FINDINGS, QUESTIONED COSTS, AND RECOMMENDATIONS For the year ended December 31, 2025 Finding 2024-1 Prior Year Finding: The Corporation did not have adequate internal controls in place to ensure proper initiation, authorization, recording, processing, and reporting of financial data in accordance with generally accepted accounting principles. A prior‑year audit adjustment related to accumulated depreciation and net assets had not been posted, resulting in misstated account balances. Status: Corrected 34 Page 123 of 276 Page 124 of 276 Page 125 of 276 SUNSET WOODS ASSOCIATION IHDA PROJECT NO.: HTF-1213 Financial Statements and Supplementary Information with Report of Independent Auditors December 31, 2025 Page 126 of 276  Report of Independent Auditors To the Board of Directors of Sunset Woods Association: Opinion We have audited the accompanying financial statements of Sunset Woods Association (IHDA Project No.: HTF- 1213), which comprise the statement of financial position as of December 31, 2025 and the related statements of activities and changes in net assets, functional expenses and cash flows for the year then ended, and the related notes to the financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sunset Woods Association as of December 31, 2025, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Sunset Woods Association and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Sunset Woods Association’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Page 127 of 276 In performing an audit in accordance with generally accepted auditing standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Sunset Woods Association’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Sunset Woods Association’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Report on Supplementary and Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The combining statement of financial position as of December 31, 2025; the combining statement of activities and changes in net assets and the supplementary statement of cash flows for the year then ended; the schedule of funds in financial institutions; and the debt service coverage ratio analysis are presented for purposes of additional analysis and are not required parts of the financial statements. This information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The certificates of managing agent and owner are included as supplementary information as required by the Illinois Housing Development Authority. The certificates of managing agent and owner have not been subjected to the auditing procedures applied in the audit of the financial statements and accordingly, we do not express an opinion or provide any assurance on them. Dover, Ohio March 12, 2026 Page 128 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) STATEMENT OF FINANCIAL POSITION December 31, 2025 ASSETS Current assets 1120 Cash and cash equivalents $ 149,298 1125 Cash - entity 120,003 1191 Segregated security deposits 13,238 1240 Prepaid insurance 1,080 1310 Real estate tax escrow 5 Total current assets 283,624 Fixed assets 1420 Condominium apartment units for rent 1,846,986 4250 Less: accumulated depreciation (1,003,536) Total fixed assets 843,450 Total assets $ 1,127,074 LIABILITIES AND NET ASSETS Current liabilities 2110 Accounts payable $ 1,970 2320 Current portion of mortgage loans payable 14,161 2191 Tenants' security deposits 11,410 2210 Prepaid rent 2,326 Total current liabilities 29,867 Long-term liabilities 2320 First mortgage payable, net of unamortized debt issuance costs 305,523 2320 Mortgage loans payable, net of discount 335,570 Total long-term liabilities 641,093 Total liabilities 670,960 Contingent liabilities (Note 7) - Net assets 3130 Without donor restrictions 456,114 Total liabilities and net assets $ 1,127,074 see accompanying notes to financial statements Page 129 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the year ended December 31, 2025 WITHOUT DONOR RESTRICTIONS REVENUE AND OTHER SUPPORT 5120 Apartment rentals $ 128,236 5121 Housing assistance payments 20,775 5220 Less: Vacancy loss (1,137) Net rental revenue 147,874 5320 Interest income 64 5990 Other revenue 36 Total other support 100 Total revenue and other support 147,974 EXPENDITURES 6390 Condominium association assessments and dues 54,923 6810 Interest 33,367 6390 Cable television 10,639 6320 Management fee 8,846 6590 Repairs and maintenance 6,992 6350 Audit expenses 13,490 6710 Real estate taxes 61 6450 Electricity 63 6485 Other operating expenses 6,081 Total expenditures 134,462 Change in net assets before depreciation 13,512 6900 Depreciation 49,634 CHANGE IN NET ASSETS (36,122) NET ASSETS AT BEGINNING OF YEAR 492,236 NET ASSETS AT END OF YEAR $ 456,114 see accompanying notes to financial statements Page 130 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) STATEMENT OF FUNCTIONAL EXPENSES For the year ended December 31, 2025 Program Administrative EXPENDITURES Services and Support Total Condominium association assessments and dues $ - $ 54,923 $ 54,923 Interest - 33,367 33,367 Cable television 10,639 - 10,639 Management fee - 8,846 8,846 Repairs and maintenance 6,992 - 6,992 Audit expenses - 13,490 13,490 Real estate taxes 61 - 61 Electricity 63 - 63 Depreciation 49,634 - 49,634 Other 6,081 - 6,081 Total expenditures $ 73,470 $ 110,626 $ 184,096 see accompanying notes to financial statements Page 131 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) STATEMENT OF CASH FLOWS For the year ended December 31, 2025 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (36,122) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 49,634 Debt issuance costs amortization 968 Loan interest - discount 13,247 (Decrease) increase in liabilities: Accounts payable 1,970 Prepaid rent 1,130 Security deposits payable 306 Net cash provided by operating activities 31,133 CASH FLOWS FROM FINANCING ACTIVITIES Payments on mortgage loans payable (14,143) Net cash used in financing activities (14,143) Net increase in cash, cash equivalents and restricted cash 16,990 Cash, cash equivalents and restricted cash at beginning of year 265,554 Cash, cash equivalents and restricted cash at end of year $ 282,544 Cash and cash equivalents $ 149,298 Cash - entity 120,003 Segregated security deposits 13,238 Real estate tax escrow 5 Total cash, cash equivalents and restricted cash $ 282,544 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest during year $ 19,152 see accompanying notes to financial statements Page 132 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 1. Organization Sunset Woods Association (the “Association”) is an Illinois nonprofit public benefit corporation classified by the Internal Revenue Service as tax-exempt under Section 501(c)(3) of the Internal Revenue Code of 1986. It was formed in 1999 by the Housing Commission of the City of Highland Park (the “Commission”) to provide residential rental facilities, known as IHDA Project NO.: HTF- 1213, within the city limits of Highland Park, Illinois for senior citizens of low and moderate income. Tenants must meet certain income and asset qualification limitations. The Association acquired twelve federally subsidized units in a sixty-unit condominium-style senior citizen apartment building, as well as two non -subsidized units from individual owners. The remaining forty-six units in the development not owned by the Association are still reserved by the Commission, which serves as the governing board of the Association, for purchase by persons meeting similar income and asset limitations as approved by the Commissioners. The initial and subsequent purchasers of these units had agreed to upward limitations on the sales prices they may receive upon disposition; further, unit owners must sell to other income and asset qualifying individuals. Agreements between each of the unit owners and the Association give it the right of first refusal, at no more than the calculated prices, to purchase any units offered for sale. The Association must resell to similar income and asset qualifying purchasers at no more than the calculated prices. Purchases of the two additional units were made in accordance with the arrangement then in place, as described above for the Association to act as buyer and reseller of units on behalf of owners. However, and as the result of the decline in property values since acquisition, these units were not able to be resold. Accordingly, the Board of Directors of the Association announced in 2010 that it would no longer act as purchaser for any Owners who wished to sell their units. The two purchased units were converted to rentals and not actively marketed for resale and in 2014 the Association began recording depreciation on them. The Association is a member of the Condominium Association of all unit owners. 2. Summary of significant accounting policies Basis of accounting The Association prepares its financial statements on the accrual basis of accounting consistent with accounting principles generally accepted in the United States of America. Basis of presentation The Association is required to report information regarding its financial position and activities according to the following net asset classifications: Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of the Association. These net assets may be used at the discretion of the Association’s management and the board of directors. Net assets with donor restrictions: Net assets subject to stipulations imposed by donors and grantors. Some donor restrictions are temporary in nature, which will be met by actions of the Association or by the passage of time. Page 133 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 2. Summary of significant accounting policies (continued) Basis of presentation (continued) Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statement of activities. The Association has no donor restricted contributions. Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents include all cash balances on deposit with financial institutions and highly liquid investments with a maturity of three months or fewer at the date of acquisition. Restricted cash is not considered cash and cash equivalents, and includes cash held with financial institutions for funding of annual payments of tax and refunds of tenant security deposits. Restricted cash does not fall under the criteria for donor restricted net assets as these funds are held for operational purposes rather than donor imposed restrictions. Concentration of credit risk The Association maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Association has not experienced any losses in such accounts. The Association believes it is not exposed to any significant credit risk on cash and cash equivalents. Accounts receivable Management considers receivables to be fully collectible. If amounts become uncollectible, they are charged to operations in the period in which that determination is made. Accounting principles generally accepted in the United States of America require that the allowance method be used to recognize bad debts; however, the effect of using the direct write-off method is not materially different from the results that would have been obtained under the allowance method. Fixed assets and depreciation Purchases of property, equipment or improvements costing more than $1,500 are recorded at cost. Major improvements are charged to the fixed asset account, while maintenance and repairs, which do not extend the life of the respective assets, are expensed. When fixed assets are retired or otherwise disposed, the cost of the fixed asset and the related accumulated depreciation are removed from the accounts and any resulting gains or losses are reflected in income. Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Depreciation expense during 2025 was $49,634. Page 134 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 2. Summary of significant accounting policies (continued) Fixed assets and depreciation (continued) The useful lives of the assets are estimated as follows: Condominium Apartment Units for Rent 40 years Condominium Apartment Units Improvements 5 years Impairment of long-lived assets The Association reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to the future net undiscounted cash flow expected to be generated and any estimated proceeds from the eventual disposition. If the long- lived assets are considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of the asset exceeds the fair value as determined from an appraisal, discounted cash flows analysis, or other valuation technique. There were no impairment losses recognized during 2025. Income taxes The Association is exempt from federal income taxes under Internal Revenue Code Section 501(c)(3) and from Illinois income and franchise taxes. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the Association to report information regarding its exposure to various tax positions taken by the Association. The Association has determined whether any tax positions have met the recognition threshold and has measured the Association’s exposure to those tax positions. Management believes that the Association has adequately addressed all relevant tax positions and that there are no unrecorded tax liabilities. Federal and state tax authorities generally have the right to examine and audit the previous three years of tax returns filed. Any interest or penalties assessed to the Association are recorded in operating expenses. No interest or penalties from federal or state tax authorities were recorded in the accompanying financial statements. Revenue recognition for tenant leases and tenant charges The Association is the lessor of the property and accounts for tenant leases as operating leases. The Association determines if a contract is a lease or contains a lease at inception. At the commencement of an operating lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. The Association generates rental income from the leasing of the condominium apartment units. Rents are recognized during the periods to which they relate, and any prepaid rents are deferred until recognized. The Association recognizes unconditional grant revenue when pledged and is recorded as net assets without donor restrictions or net assets with donor restrictions depending on the existence and/or nature of any grantor imposed restrictions. Page 135 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 2. Summary of significant accounting policies (continued) Contributions Contributions received are recorded as net assets without donor restrictions or net assets with donor restrictions, depending on the existence and/or nature of any donor-imposed restrictions. Contributions that are restricted by the donor are reported as an increase in net assets without donor restrictions if the restriction expires in the reporting period in which the contribution is recognized. All other donor restricted contributions are reported as an increase in net assets with donor restrictions, depending on the nature of restriction. When a restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statement of activities as net assets released from restrictions. Economic concentrations The Association operates one property in Highland Park, Illinois. Future operations could be affected by changes in the economy or other conditions in that geographical area or by changes in federal low- income housing subsidies or the demand for such housing. Functional expenses The costs of providing program services and other activities have been summarized on a functional basis in the statement of functional expenses. Management believes all costs of providing program services and other activities are allocable to providing residential rental services. Management allocates all costs associated with financing, administrative, and entity expenses to administrative and support services. All other costs are allocated to program services. The Association does not engage in fundraising and therefore does not allocate any expenses to fundraising services benefited. Subsequent events Subsequent events have been evaluated through March 12, 2026, which is the date the financial statements were available to be issued, and there are no subsequent events requiring disclosure. Page 136 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 3. Liquidity and availability of financial assets The following represents the Association’s financial assets at December 31, 2025: Financial assets at year end: Cash and cash equivalents $ 149,298 Cash – entity 120,003 Segregated security deposits 13,238 Real estate tax escrow 5 Total financial assets 282,544 Less amounts not available to be used within one year: Segregated security deposits ( 13,238) Financial assets available to meet general expenditures over the next twelve months $ 269,306 The Association’s goal is generally to maintain financial assets to meet two years of operating expenses (approximately $267,000). As part of its liquidity plan, excess cash is invested in savings accounts. 4. Restricted cash As of December 31, 2025, the Association’s restricted cash consists entirely of segregated security deposits and real estate tax escrow: Segregated security deposits The tenant security deposits accounts are maintained in interest bearing market rate savings accounts. The carrying value of restricted cash approximates fair value because of the short-term maturity of those instruments. As of December 31, 2025, the balance in the tenant security deposits accounts is $13,238. Real estate tax escrow In accordance with the terms of the mortgage agreement, the Association is required to make monthly deposits to the real estate tax escrow. As of December 31, 2025, the balance of the escrow is $5. The Association has a non-homestead property tax exemption. Page 137 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 5. Mortgage loans payable First Mortgage On July 26, 2012, the Association obtained a loan (the “First Mortgage”) from First Bank of Highland Park. The First Mortgage is in the amount of $440,000 and has a fixed interest rate of 4.5%. The First Mortgage is payable in monthly payments including principal and interest in the amount of $2,247 through July 2017. On July 26, 2017, the maturity date, a balloon payment was required for any remaining principal and accrued interest. The loan was refinanced on April 26, 2017, to mature on April 26, 2022. On April 26, 2022, the loan was extended to mature on April 26, 2027. The terms of the extension raised the interest rate to 5.25% and the principal balance to $361,524. The loan is collateralized by the original twelve condominium rental units owned by the Association. As of December 31, 2025, the principal balance remaining was $319,776, and accrued interest was $0. For the year ended December 31, 2025, interest expense was $19,152. First mortgage loan payable consists of the following as of December 31, 2025 Principal balance $ 319,776 Less: unamortized debt issuance costs (1,292) First mortgage payable, net of unamortized debt issuance costs $ 318,484 Debt issuance costs are being amortized to interest expense over the term of the loan. For 2025 the effective interest rate was 6.44%. During 2025, amortization of debt issuance costs was $968. Second Mortgage On April 24, 2001, the Association obtained a loan (the “Second Mortgage”) from Lake County through the HOME and Investment Partnership Program. The Second Mortgage is in the amount of $240,000 and is noninterest bearing. The Second Mortgage is due in one payment on or before June 30, 2042. The loan is collateralized by certain twelve condominium rental units owned by the Association. The Association must comply with various conditions of the Second Mortgage as well as report periodically on the income and asset status of tenants and other limitations. Should the Association violate these conditions, the entire principal would become due and payable. As of December 31, 2025, the Second Mortgage balance was $240,000. The present value of the Second Mortgage as of April 24, 2001, discounted at 4%, was $48,402; interest compounds at the above rate throughout the life of the loan. The balance in the amount of $191,598 was treated as a grant from Lake County in that year and was included in net assets without donor restrictions. For the year ended December 31, 2025, interest expense was $4,769. The balance of the loan net of discount as of December 31, 2025 was $121,529. As of December 31, 2025, the discount in the amount of $118,471 is considered to be a contingent liability as discussed in Note 7 and is not reflected in the statement of financial position. Page 138 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 5. Mortgage loans payable (continued) Third Mortgage On January 1, 2004, the Association obtained a loan (the “Third Mortgage”) from the Illinois Housing Development Authority (IHDA) in the amount of $454,888. The Third Mortgage is noninterest bearing and payable in monthly payments of $100 beginning January 1, 2004. The Third Mortgage is due in one payment on or before September 1, 2043, the maturity date. The loan is collateralized by a Junior Mortgage and Assignment of Rents and Leases. The Association must comply with various conditions of the Third Mortgage as well as report periodically on the income and asset status of tenants and other limitations. Should the Association violate these conditions, the entire principal would become due and payable. As of December 31, 2025, the Third Mortgage balance was $428,388. The present value of the Third Mortgage as of January 1, 2004, discounted at 4%, was $107,059; the balance in the amount of $347,829 was treated as a grant from IHDA in the year ended December 31, 2004 and was included in net assets without donor restrictions. Interest compounds at the above rate throughout the life of the loan. For the year ended December 31, 2025, interest expense was $8,478. The balance of the loan net of discount as of December 31, 2025 was $215,241. As of December 31, 2025, the discount in the amount of $213,147, is considered to be a contingent liability as discussed in Note 7 and is not reflected in the statement of financial position. Annual principal payments are as follows: 2026 $ 14,161 2027 308,015 2028 1,200 2029 1,200 2030 1,200 Thereafter 662,388 Total $ 988,164 6. Declaration of condominium ownership The Association is a member of a condominium association to provide affordable housing as defined in the declaration dated June 17, 2002. The Association is required to pay a monthly assessment to the condominium association. The amount paid for condominium administrative assessments during 2025 was $54,923. 7. Contingent liabilities At December 31, 2025, the additional total amount related to the second and third mortgages that would be due on demand if the Association were not in compliance with the stipulated terms of the loan agreements (see Note 5) is $331,618. This amount has not been reflected as a liability in the accompanying statement of financial position due to its contingent nature. Page 139 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) NOTES TO THE FINANCIAL STATEMENTS December 31, 2025 8. Property tax exemption The State of Illinois Department of Revenue has determined the Association has met the exemption qualifications necessary to receive a non-homestead property tax exemption for all 14 units. Page 140 of 276 SUPPLEMENTARY INFORMATION Page 141 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) COMBINING STATEMENT OF FINANCIAL POSITION December 31, 2025 Federally subsidized Non-subsidized 12 units 2 units Total ASSETS Current assets 1120 Cash and cash equivalents $ 37,620 $ 111,678 $ 149,298 1125 Cash - entity 120,003 - 120,003 1191 Segregated security deposits 10,958 2,280 13,238 1310 Real estate tax escrow 5 - 5 1240 Prepaid insurance - 1,080 1,080 Total current assets 168,586 115,038 283,624 Fixed assets 1420 Condominium apartment units for rent 1,573,944 273,042 1,846,986 4250 Less: accumulated depreciation (912,744) (90,792) (1,003,536) Total fixed assets 661,200 182,250 843,450 Total assets $ 829,786 $ 297,288 $ 1,127,074 LIABILITIES AND NET ASSETS Current liabilities 2110 Accounts payable 1,089 881 1,970 2320 Current portion of mortgage loans payable 14,161 - 14,161 2191 Tenants' security deposits 10,051 1,359 11,410 2210 Prepaid rent 1,226 1,100 2,326 Total current liabilities 26,527 3,340 29,867 Long-term liabilities 2320 First mortgage payable, net of unamortized debt issuance costs 305,523 - 305,523 2320 Mortgage loans payable, net of discount 335,570 - 335,570 Total long-term liabilities 641,093 - 641,093 Total liabilities 667,620 3,340 670,960 Net assets 3130 Without donor restrictions 162,166 293,948 456,114 Total liabilities and net assets $ 829,786 $ 297,288 $ 1,127,074 see report of independent auditors Page 142 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) COMBINING STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS For the year ended December 31, 2025 Federally subsidized Non-subsidized 12 units 2 units Total WITHOUT DONOR RESTRICTIONS REVENUE AND OTHER SUPPORT 5120 Apartment rentals $ 100,636 $ 27,600 $ 128,236 5121 Housing assistance payments 20,775 - 20,775 5220 Less: Vacancy loss (1,137) - (1,137) Net rental revenue 120,274 27,600 147,874 5320 Interest income 56 8 64 5990 Other revenue 33 3 36 Total other support 89 11 100 Total revenue and other support 120,363 27,611 147,974 EXPENDITURES 6390 Condominium association assessments and dues 44,148 10,775 54,923 6810 Interest 33,367 - 33,367 6390 Cable television 9,119 1,520 10,639 6320 Management fee 7,271 1,575 8,846 6590 Repairs and maintenance 4,505 2,487 6,992 6350 Audit expenses 11,563 1,927 13,490 6710 Real estate taxes 55 6 61 6450 Electricity 63 - 63 6485 Other operating expenses 5,349 732 6,081 Total expenditures 115,440 19,022 134,462 Change in net assets before depreciation 4,923 8,589 13,512 6900 Depreciation 42,528 7,106 49,634 CHANGE IN NET ASSETS (37,605) 1,483 (36,122) NET ASSETS AT BEGINNING OF YEAR 199,771 292,465 492,236 NET ASSETS AT END OF YEAR $ 162,166 $ 293,948 $ 456,114 see report of independent auditors Page 143 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) SUPPLEMENTARY STATEMENT OF CASH FLOWS For the year ended December 31, 2025 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (36,122) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation 49,634 Debt issuance amortization 968 Loan interest - discount 13,247 (Decrease) increase in liabilities: Accounts payable 1,970 Prepaid rent 1,130 Security deposits payable 306 Net cash provided by operating activities 31,133 CASH FLOWS FROM INVESTING ACTIVITIES Net deposits to segregated security deposits (38) Net withdrawals from the real estate tax escrow 4 Net cash used in investing activities (34) CASH FLOWS FROM FINANCING ACTIVITIES Payments on mortgage loans payable (14,143) Net cash used in financing activities (14,143) Net increase in cash and cash equivalents 16,956 Cash and cash equivalents at beginning of year $ 252,345 Cash and cash equivalents at end of year $ 269,301 see report of independent auditors Page 144 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS December 31, 2025 A. Funds Held by Mortgagor, regular operating account: 1. First Bank of Highland Park - Checking $ 31,058 1 2. First Bank of Highland Park - Checking 111,678 1 3. First Bank of Highland Park - Checking 10,212 2 4. First Bank of Highland Park - Savings 112,055 2 5. First Bank of Highland Park - Savings 9,512 1 Total Funds Held by Mortgagor, regular operating account 274,515 B. Funds Held by Mortgagor, in Trust, tenant security deposits: 1. First Bank of Highland Park - Savings 10,959 3 2. First Bank of Highland Park - Savings 2,280 1 Total Funds Held by Mortgagor, in Trust, tenant security deposits 13,239 C. Funds Held by Mortgagee, (In Trust) 1. Real estate tax escrow, First Bank of Highland Park 5 3 Total funds in financial institutions $ 287,759 (1) Balances confirmed by First Bank of Highland Park, January 5, 2026 (2) Balances confirmed by First Bank of Highland Park, January 13, 2026 (3) Balances confirmed by First Bank of Highland Park, January 7, 2026 see report of independent auditors Page 145 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) DEBT SERVICE COVERAGE RATIO ANALYSIS December 31, 2025 From Statement of Activities and Changes in Net Assets: A. Excess of revenues over expenses before financing, entity expenses, depreciation and amortization $ 46,879 B. Less: replacement reserve payments - C. NOI adjusted (A minus B) 46,879 D. Debt service Mortgage principal payments 14,143 Mortgage interest 17,410 Total debt service $ 31,553 E. Debt Service Coverage Ratio ("DCR") (C divided by D) 1.49 * Debt service coverage ratio analysis was calculated on the 12 units financed by IHDA. see report of independent auditors Page 146 of 276 Page 147 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) December 31, 2025 CERTIFICATE OF MANAGING AGENT I hereby certify that I have examined the accompanying financial statements and supplementary data of Sunset Woods Association and, to the best of my knowledge and belief, the same is complete and accurate. Date: 3/16/2026 Richard Koenig, Executive Director Housing Opportunity Development Corporation 36-3237455 (Employer Identification Number) Page 148 of 276  SUNSET WOODS ASSOCIATION (IHDA PROJECT NO.: HTF-1213) December 31, 2025 INFORMATION REGARDING AUDITORS To: Illinois Housing Development Authority RE: Sunset Woods Association IHDA PROJECT NO.: HTF-1213 Year ended December 31, 2025 AUDITOR INFORMATION Name: Novogradac & Company LLP Address: 3025 North Wooster Avenue Dover, OH 44622 Phone: (330) 365-5400 Lead Auditor Dirk A. Wallace Federal ID# 94-3108253 Audit Partner: Dirk A. Wallace Firm: Novogradac & Company LLP Telephone Number: (330) 365-5400 Federal Employer ID# 94-3108253 Page 149 of 276  Memorandum Date: April 6, 2026 To: Chair Isis Fernandez-Sykes & Housing Commission From: Zubin Coleman, Senior Planner Subject: Property Management Contract Renewals: Housing Opportunity Development Corporation (HODC) and Evergreen Real Estate Services (ERES) Recommendation Staff requests the Housing Commission approve the renewal and extension of the property management contracts for a two year term with HODC for the 14 rental units at Sunset Woods Condominiums and with ERES for the Peers and Ravinia Housing Associations. Background The Housing Commission has three housing associations that own affordable housing units. These are: • Peers Housing Association (PHA) for the Frank B. Peers Senior Housing. • Ravinia Housing Association (RHA) for Ravinia Family Housing. • Sunset Woods Association (SWA) for the 14-rental units located in the Sunset Woods Condominiums building. Both HODC and ERES have provided adequate staffing and quality control processes. ERES has proved to be consistently responsive to requests made by the Housing Commission and City personnel. ERES has also shown their willingness to create a healthy and functional living environment within the Peers and Ravinia developments, given the amount of units under their jurisdiction. Also, HODC has not shown a lack of information or promptness that would deter Staff from recommending a renewal of their management agreement for the 14 Sunset Woods units. City Staff’s experience is that both ERES and HODC property management responds quickly to tenant service requests and concerns with professionalism and promptness. ERES In July 2019, the Housing Commission issued a Request for Proposals (RFP) for property management services for the Peers, Ravinia, and Walnut affordable housing developments. A review team was assembled to review the two proposals received and selected ERES for the management contract. At its November 6, 2019 meeting, the HC approved the selection of ERES for property management services. 1 These contracts have since been extended or renewed in 2022 and 2024 on two year cycles. 1 ERES had been the property management company for Peers, Walnut Place, and Ravinia housing since 2008. The RFP was let in order to obtain fresh proposals for the property management contract. ERES was one of two respondents, was selected by the HC, and approved by City Council for the new contract. 1 Page 150 of 276  Memorandum Due to Ravinia having a HUD loan, its management contract is auto renewed every two years, with the execution of the Management Certificate filed with the federal U.S. Department of Housing and Urban Development (HUD). On the other hand, Peers has a mortgage with the Illinois Housing Development Authority (IHDA) and its contract is extended on a biannual basis. The current contracts for both PHA and RHA expire on June 30, 2026. ERES confirmed that they are not requesting to change the terms of their management agreement and are opting for another two-year renewal (see Attachment 1 & 2) 2. HODC HODC currently has two contracts with the SWA. One Management Agreement is for the 12 units and requires the approval of IHDA. The second is for units #231 and #319, and this contract is between SWA and HODC and does not require any approval from IHDA. Both contract agreements expire on June 30, 2026. HODC confirmed that they are not requesting to change the terms of their management agreement and are opting for another two-year renewal. HODC was one of the original members of the Sunset Woods development team (2002) and has managed the 14 affordable rental units at Sunset Woods since then. The City staff and the Housing Commission representative to the Sunset Woods Condominium Association (SWCA) Board assess resident satisfaction through their interactions with the tenants. Resident feedback regarding HODC is favorable. Like ERES, HODC has a staff regional supervisor for the Sunset Woods rentals in order to enhance management oversight. This supervisor received the 2018 IHDA Property Manager of the Year award (see Attachment 3 & 4). Next Steps Staff requests the Housing Commission recommend: 1. Approval for two-year extensions of the property management service contracts with HODC for the 14 Sunset Woods rental units and with ERES for Peers and Ravinia Housing 3. 2. Authorize the President of the Sunset Woods, Peers, and Ravinia Housing Associations to execute the corresponding management contract documents with ERES and HODC. The Housing Commission recommendation will go to the City Council for its approval. After approval and execution, the documents will be filed with IHDA and HUD respectively. 2 ERES has yet to sign the Management Contract Extension forms for Ravinia & Peers. They informed Staff of their intention to sign. If ERES does not provide the forms by the start of the April 6th Housing Commission meeting, then the Commission cannot consider their management contract extension at the April 6th meeting and must continue to the May 6th Housing Commission meeting. 3 See footnote above regarding ERES’ management Contract extension forms. 2 Page 151 of 276  EXTENSION AND AMENDMENT OF MANAGEMENT AGREEMENT Development Name: Project ID (PID): THIS EXTENSION AND AMENDMENT OF MANAGEMENT AGREEMENT (this “Amendment”) is made as of the day of , by and between (the “Owner”) and (the “Property Manager.) RECITALS The Owner and the Property Manager have previously entered into that certain Management Agreement dated as of (the “Management Agreement”) and approved by the Illinois Housing Development Authority. The Management Agreement has expired and the parties wish to amend it and extend its term. NOW, THEREFORE, in consideration of the mutual agreements contained below and other good and valuable consideration, the receipt and adequacy of which is acknowledged, the parties agree as follows: 1. Definitions. All capitalized terms in this Amendment that are not defined herein shall have the meanings provided in the Management Agreement. 2. Extension of Term. The term of the Management Agreement is extended for a period of year(s), beginning on and ending on , unless terminated earlier as provided in the Management Agreement. 3. Fees. There is no change to the monthly fee of the Property Manager. There is a change to the monthly fee of the Property Manager. Paragraph of the Management Agreement is amended to provide that the monthly fee of the Property manager shall be percent ( %) of gross collections. 4. Warranties and Representations. Owner and Property Manager each warrants that it has not executed, and represents that it will not execute, any other agreement with provisions contradictory to or in opposition to the provisions of the Management Agreement, as amended by this Amendment (the “Amended Management Agreement”) and that, in any event, the requirements of the Amended Management Agreement are (i) paramount and controlling as to the rights and obligations set forth in any other agreement and (ii) supersede any other requirements in conflict with the Amended Management Agreement. IHDA Extension and Amendment of Management Agreement (Revised 1/20/2021) Page 152 of 276 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their authorized representatives. OWNER: By: Print Name: Title: Date: __________ FEIN # PROPERTY MANAGER: By: Print Name: Title: Date: __________ FEIN # This Amendment is approved this day of . ILLINOIS HOUSING DEVELOPMENT AUTHORITY: By: Print Name: Patricia Williams Title: Assistant Director – Rental Compliance IHDA Extension and Amendment of Management Agreement (Revised 1/20/2021) Page 153 of 276  MANAGEMENT AGREEMENT This Management Agreement (“Agreement”) is made this day of , 20____, between ___________________________ ("Owner") and Evergreen Real Estate Services, LLC ("Agent"). 1. Appointments and Acceptance. Owner appoints Agent as exclusive agent for the management of the property described in Section 2 of this Agreement, and Agent accepts the appointment, subject to the terms and conditions set forth in this Agreement. 2. Description of Project. The property (the "Project") to be managed by Agent under this Agreement is a housing development consisting of the land, buildings, and other improvements all further described as follows: Project Name: Address: City/State: County: No. Of Dwelling Units: 3. Definitions. As used in this Agreement: a. "HUD" means the United States Department of Housing and Urban Development. b. "Secretary" means the Secretary of the United States Department of Housing and Urban Development. c. "Principal Parties" means Owner and Agent. d. "Consenting Parties" means the Secretary and the Mortgagee. e. “Mortgagee” means the lender under the Mortgage, and its successors and assigns. 4. Low Income Housing Requirements. The Project is subject to a Housing Assistance Payments Contract (“HAP”) with the Secretary. Owner will furnish Agent with a copy of the HAP. In performing its duties under this Management Agreement, Agent will comply with all pertinent requirements of the HAP and directives of the Secretary. In the event any instruction from Owner is in conflict with such requirements, the latter will prevail. 5. Management Plan. Attached hereto as "Exhibit A" and incorporated herein, is a copy of the management plan for the Project (“Management Plan”), which provides a description of the policies and procedures to be followed in the management of the Project. In many of its provisions, this Agreement briefly defines the nature of Agent's obligations, with the intention that reference be made to the Management Plan for more detailed policies and procedures. Accordingly, Owner and Agent will comply with all applicable provisions of the Management Plan, regardless of whether specific reference is made thereto in any particular provision of this Agreement. 6. Basic Information. As soon as reasonably practical, Owner will furnish Agent with a complete set of plans and specifications and copies of all guarantees and warranties pertinent to the Project’s construction, fixtures and equipment. With the aid of this information and through inspections by competent personnel, Agent will thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Project and especially the electrical, heating, plumbing, air conditioning and ventilation systems, the elevators, and all other mechanical equipment. 7. Marketing. Agent will carry out the marketing activities prescribed in the Management Plan, observing all requirements of the Affirmative Fair Housing Marketing Plan (“AFHMP”) and observing all requirements of fair housing laws and regulations, as may be amended from time to time. Advertising expenses will be paid out of the Project’s Operating Account as a Project expense. ERES/HUD_Rev. 11/1/2019 Page 154 of 276 8. Rentals. Agent will offer for rent and will rent the dwelling units, parking spaces, and other applicable amenities in the Project, subject to the following: a. Agent will follow the resident selection policy described in the Management Plan, including ensuring that residents meet the Project’s financing and regulatory requirements for eligibility. b. Agent will show the premises to prospective residents. c. Agent will take and process applications for rental. If an application is rejected, the applicant will be informed the reason for rejection, and the rejected application, with reason for rejection noted thereon, will be maintained on file for at least three (3) years. A current list of prospective residents will be maintained. d. Agent will prepare all dwelling leases and parking permits, and will execute the same in its name, identified thereon as Agent for Owner. The dwelling leases will be in a form approved by Owner and the Secretary. e. Owner will furnish Agent with rent schedules, as from time to time approved by the Secretary, showing approved rents for dwelling units, and other charges for facilities and services. In no event will the approved rents and other charges be exceeded, unless expressly approved by Owner and/or the Secretary. f. Agent will counsel all prospective residents regarding eligibility for dwelling rents and will prepare and verify eligibility certifications and recertifications in accordance with the applicable regulatory agreement(s) and any directives of the Secretary. g. Agent will negotiate concession agreements where applicable, and execute the same in its name, identified thereon as Agent for Owner, subject to Owner's prior approval of all terms and conditions. h. Agent will collect, deposit, and disburse security deposits if required, in accordance with the terms of each resident’s lease. Security deposits will be deposited by Agent in an interest-bearing account, separate from all other accounts and funds with a bank or other financial institution whose deposits are insured by an agency of the United States Government, and which has been approved by Owner, and a percentage of interest will be credited to each resident, annually, based on published rates. This account will be carried in the Project's name and designated on record as “_________________ Security Deposit Account." 9. Collection of Rents and Other Receipts. Agent will collect when due all rents, charges and other amounts receivable on Owner's account in connection with the management and operation of the Project. Such receipts (except for residents' security deposits, which will be handled as specified in Subsection 8h above) will be deposited in an account, separate from all other accounts and funds, with a bank whose deposits are insured by the Federal Deposit Insurance Corporation. This account will be carried in the Project's name and designated on record as "_________________________ Operating Account” (“Operating Account”) 10. Enforcement of Leases. Agent will secure full compliance by each resident with the terms of this lease. Voluntary compliance will be emphasized, and Agent, utilizing the services of a Social Services Director, if applicable, will counsel residents and make referrals to community agencies in cases of financial hardship or under other circumstances deemed appropriate by Agent, to the end that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Project. Nevertheless, and subject to the pertinent procedures prescribed in the Management Plan, Agent may lawfully terminate any tenancy when, in Agent's judgement, sufficient cause for such termination (including but not limited to nonpayment of rent) occurs under the terms of the resident's lease. For this purpose, Agent is authorized to consult with legal counsel to be designated by Owner, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions; provided, however, Agent keeps Owner informed of such actions and follows such instruction as Owner may prescribe for the conduct of any such action. ERES/HUD_Rev. 11/1/2019 Page 155 of 276  Subject to Owner's approval, attorney fees and other necessary costs incurred in connection with such actions will be paid out of the Operating Account as Project expenses. 11. Maintenance and Repair. Agent will maintain the Project in good repair in accordance with the Management Plan, state and local codes, rules and regulation, and in a condition at all times acceptable to Owner and the Secretary, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may be necessary, subject to any limitations imposed by Owner in addition to those contained herein. Incident thereto, the following provision will apply: a. Special attention will be given to preventive maintenance and, to the greatest extent feasible, the services of regular maintenance employees will be used. b. Subject to Owner's prior approval, Agent will contract with qualified independent contractors for the maintenance and repair of heating and air-conditioning systems and elevators, and for extraordinary repairs beyond the capability of regular maintenance employees. c. Agent will systematically and promptly receive and investigate all service requests from residents, take such action thereon as may be justified, and keep records of the same. Emergency requests will be received and serviced on a 24-hour basis. Complaints of a serious nature will be reported to Owner after investigation. d. Agent is authorized to purchase all materials, equipment, tools, appliances, supplies and services necessary to proper maintenance and repair, in accordance with the Project’s operating and capital accounts. e. Notwithstanding any of the foregoing, the prior approval of Owner will be required for any expenditure that exceeds five thousand dollars ($5,000.00) in any one instance for labor, materials, or otherwise in connection with the maintenance and repair of the Project, except for recurring expenses within the limits of the operating budget or emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the project. In the latter event, Agent will inform Owner of the facts as promptly as possible. 12. Utilities and Service. In accordance with the Management Plan and operation budget, Agent will make arrangement for water, electricity, gas, fuel oil, sewage and trash disposal, vermin extermination, decorating, laundry facilities and telephone services. Subject to Owner's prior approval, Agent will make such contracts as may be necessary to secure such utilities and services. 13. Employees. The Management Plan prescribes the number, qualifications and duties of the personnel to be regularly employed in the management of the Project. All such on-site personnel will be employees of Agent and hired, paid, supervised, and discharged by Agent, subject to the following conditions: a. Owner will reimburse Agent for compensation (including fringe benefits) payable to the on-site management and maintenance employees and for all local, state and federal taxes and assessments (including but not limited to social security taxes, unemployment insurance, and workman's compensation insurance) incident to the employment of such personnel. Such reimbursements will be paid out of the Operating Account and will be treated as Project expenses. b. Compensation (including fringe benefits) payable to the on-site staff, plus all local, state and federal taxes and assessments incident to the employment of such personnel will be borne solely by the Project and will not be paid out of Agent's fee. The rental value of any dwelling unit furnished rent-free (if any) will be treated as a cost to the Project. c. Agent shall comply with all equal employment and non-discrimination provisions of all applicable federal, state and local employment laws, rules and regulations. ERES/HUD_Rev. 11/1/2019 Page 156 of 276 14. Records and Reports. In addition to any requirements specified in the Management Plan or in other provisions of this Agreement, Agent will have the following responsibilities with respect to records and reports: a. Agent will establish and maintain a comprehensive system of records, books, and accounts in a manner conforming to the directives of the Secretary, and otherwise satisfactory to Owner and the Consenting Parties. All records, books and accounts will be subject to examination at reasonable hours by and authorized representative of Owner and the Consenting Parties. b. With respect to each fiscal year ending during the term of this Agreement, Agent will have an annual financial report prepared by a certified public accountant or other person acceptable to Owner and Secretary, based upon the preparer's examination of the books and records of Owner and Agent. The report will be prepared in accordance with the directives of the Secretary, will be certified by the preparer and Agent, and will be submitted to Owner within ninety (90) days after the end of the fiscal year for Owner's further certification and submission to the Consenting Parties. Compensation for the preparer's services will be paid out of the Operating Account as a Project expense. c. Agent will prepare a monthly report comparing actual and budgeted figures for receipts and disbursements, and will submit each report to Owner within thirty (30) days of the last day of the calendar month. d. Agent will furnish such information (including occupancy reports) as may be requested by Owner or the Secretary from time to time with respect to the financial, physical, or operational condition of the Project. e. By the fifteenth (15th) day of each month, Agent will furnish Owner with an itemized list of all delinquent accounts, including rental accounts, as of the tenth (10th) day of the same month. f. By the thirtieth (30th) day of each month, Agent will furnish Owner, and HUD, upon written request by HUD, a statement of receipts and disbursements during the previous month, a schedule of accounts receivable and payable, and reconciled bank statements for the Operating Account as of the end of the previous month. g. If the rental collections plus HUD subsidy fall below operating expenses for a sustained period of sixty (60) days, Agent will immediately send written notification of the same to HUD with a copy to Owner. h. Agent will prepare and submit a HAP request and accompanying documentation to HUD, as directed by the Secretary, on a monthly basis within the first ten (10) days of the month preceding that month for which the HAP payments are claimed. 15. Budgets. Annual operating budgets for the Project will be approved by Owner. Except as permitted under Subsection 11.e. above or notification by Agent to Owner, an annual disbursement for each type of operating expense itemized in the budget will not exceed the amount authorized by the approved budget. In addition to preparation and submission of a proposed operating budget for the initial fiscal year, Agent will prepare a proposed operating budget for each subsequent fiscal year beginning during the term of this Agreement, and will submit the same to Owner at least sixty (60) days before the beginning of the fiscal year. Owner will promptly inform Agent of any changes incorporated in the approved budget, and Agent will keep Owner informed of any anticipated deviation from the receipts or disbursements stated in the approved budget. 16. Disbursements from Rental Agency Accounts. a. From the funds collected and deposited by Agent in the Operating Account pursuant to Section 9 above, Agent will make the following disbursements promptly when payable: (1) Reimbursement to Agent for compensation payable to the employees as specified ERES/HUD_Rev. 11/1/2019 Page 157 of 276  in Section 13 above, and for the taxes and assessment payable to local, state and federal governments in connection with the employment of such personnel. (2) The single aggregate payment required to be made monthly by Owner to the Mortgagee, including the amounts due under the mortgage for principal amortization, interest, mortgage insurance premium, fire and other hazard insurance premiums and any amounts specified in the applicable regulatory agreement(s). (3) All sums otherwise due and payable by Owner as expenses of the Project authorized to be incurred by Agent under the terms of this Agreement, including compensation payable to Agent pursuant to Section 25 below. b. Except for the disbursements mentioned in Subsection 16.a. above, funds will be disbursed or transferred from the Operating Account only as Owner may from time to time direct in writing. c. In the event the balance in the Operating Account is at any time insufficient to pay disbursements due and payable under Subsection 16.a. above, Agent will inform Owner of that fact and Owner will then remit to Agent sufficient funds to cover the deficiency. In no event will Agent be required to use its own funds to pay such disbursements. d. Owner approves Agent’s software, with a separate set of books for the Project and its Operating Account. Payment of bills shall be by check or approved ACH transfer to be drawn on Owner’s Operating Account. Owner’s general policy is to pay accounts payable within thirty (30) days after the vendor or service provider is entitled to payment, subject to Owner’s or Agent’s reasonable discretion to delay or withhold payment(s). Agent will use its best efforts to comply with this general policy. 17. Fidelity Bond. Agent will furnish and maintain, at the expense of Owner, a fidelity bond or comparable insurance policy, of which the principal sum or coverage will not be less than the Project’s gross potential income for two months and is conditioned to protect Owner and the Consenting Parties against misappropriation of Project funds by Agent and its employees. The other terms and conditions of the bond, and the surety thereon, or comparable insurance policy, will be subject to the approval of Owner and the Consenting Parties. 18. Bids and Purchase Discounts, Rebates or Commissions. Owner and Agent agree to obtain contract materials, supplies, and services at the lowest possible cost and on the terms most advantageous to the Project and to secure and credit to the Project all discounts, rebates or commission obtainable with respect to purchases, service contracts and other transactions on behalf of the Project. Owner and Agent agree that all goods and services purchased from individuals or companies have an identity-of-interest with Owner or Agent shall be purchased at costs not in excess of those that would be incurred in making arms-length purchase on the open market. Agent shall solicit written cost estimates (i.e., bids from at least three contractors or suppliers) for any work item, which Owner or the Secretary estimates will cost $5,000 or more, and for any contract or ongoing supply or service arrangement, which is estimated to exceed $5,000 per year. Agent agrees to accept the bid which represents the lowest price, taking into consideration the bidder's reputation for quality of workmanship or materials and timely performance and the time frame within which the service or goods are needed. For any contract or ongoing supply or service arrangement obtainable for more than one source and estimated to cost less than $5,000, Agent shall solicit verbal or written cost estimates, as necessary, to assure that the Project is obtaining services, supplies and purchases at the lowest possible cost. Agent must make a written record of any verbal estimate obtained. Copies of all required bids and documentation of all other written or verbal comparisons made by Agent shall be made part of the Project's records and shall be retained for three years from the date the work was completed. This documentation shall be subject to inspection by the Secretary or his/her designee and Agent agrees to submit such documentation upon request. Agent further agrees to include the following clause in any contract entered into with and identity-of-interest firm for provision of goods or services to the project, the cost of which ERES/HUD_Rev. 11/1/2019 Page 158 of 276  services are to be paid from Project funds: "Upon request by the (Owner or Agent) or the Secretary, (name of contractor or supplier) will make available to the Secretary at a reasonable time and place; (name or contractor or suppliers) records which relate to goods or services provided to the Project." Agent agrees to request such records from the contractor or supplier within seven days of receipt of a written request from the Secretary of his/her designee. Agent agrees to make available to the Secretary all records of Agent’s management company and its identity-of-interest company(s), if any, which relate to the provision of goods or services to the Project whenever Project funds have been used to pay for such goods and/or services (other than management services). In the event charges levied by an identity-of-interest firm exceed charges which were or would have been levied by non-identity-of-interest firms for similar services or materials, Owner, at the request of the Secretary, shall refund any excessive amounts which were paid from Project funds. If Owner and HUD cannot agree as to the amount of refund due, HUD’s Loan Management Branch Chief shall request the identity-of-interest firm's records related to the transactions under review. The Inspector General shall provide the Loan Management Branch Chief with an estimate of the amount of refund due. The Deputy Director for Housing Management and the Chief shall review the Inspector General's report and shall notify Owner of the amount of refund due. Within twenty (20) days of receipt of the Field Office's letter, Owner shall refund any amounts found to be excessive. 19. Social Services Program. Agent will carry out the social services program as described in the Management Plan, if any. 20. Resident-Management Relations. Agent will encourage and assist residents of the Project in forming and maintaining representative organizations to promote their common interests, and will maintain good-faith communication with such organizations to the end that problems affecting the Project and its residents may be avoided or solved on the basis of mutual self-interest. 21. On-Site Management Facilities. Subject to the further agreement of Owner and Agent as to more specific terms, Agent will maintain a management office within the Project. 22. Insurance. Owner will inform Agent of insurance to be carried with respect to the Project and its operations and Agent will cause such insurance to be placed and kept in effect at all times. Agent will pay premiums out of the Operating Account, and premiums will be treated as operating expenses. All insurance will be placed with such companies, on such conditions, in such amounts, and with such beneficial interests appearing thereon as shall be acceptable to Owner and the Consenting Parties, and shall be otherwise in conformity with the mortgage, provided that the same will include comprehensive general liability, fire and extended coverage, loss of rents, Officers and Directors’ Liability Insurance, Fidelity Bond and Boiler and Equipment Liability insurance. Agent shall be designated as one of the insureds, in amounts acceptable to Agent as well as to Owner and the Consenting Parties. Agent will investigate and furnish Owner with full reports as to all accidents, claims and potential claims for damage relating to the facility and will cooperate with Owner’s insurers in connection therewith. 23. Compliance with Governmental Orders. Agent will take such actions as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Project, whether imposed by federal, state, county or municipal authority, subject, however, to the limitation stated in Subsection 11.e. with respect to repairs. Nevertheless, Agent shall take no such action as long as Owner is contesting, or has affirmed its intention to contest, any such order or requirement. Agent will notify Owner in writing of all notices of such orders or other requirements, within seventy-two (72) hours from the time of their receipt. 24. Nondiscrimination. In the performance of its obligations under this Agreement, Agent will comply with the provisions of any federal, state or local law prohibiting discrimination in housing on the grounds of race, color, sex, creed, handicap or national origin, including Title ERES/HUD_Rev. 11/1/2019 Page 159 of 276  VI or the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241), all requirements imposed by or pursuant to the Regulations of the Secretary (24 CFR, Subtitle A, Part 1) issued pursuant to that Title; regulations issued pursuant to Executive Order 11063, and Title VIII of the 1968 Civil Rights Act. 25. Agent's Compensation. Agent will be compensated for its services under this Agreement by monthly fees, to be paid out of the Operating Account and treated as Project expenses. Management fees will be computed and paid according to HUD requirements. Such fees will be payable on the 1st day of each month beginning with the first day of the first month of the term of this Agreement. a. Each such monthly fee will be in an amount equal to 5.0 % of gross collections received during the preceding month. Gross collections are all amounts actually collected by Agent, as rents or other payments, including but not limited to laundry and vending income, damages, and license fees, if any, but excluding (i) income derived from interest or investments, (ii) discounts and dividends on insurance, and (iii) security or other resident deposits. b. The following categories of expenses shall be covered by the fee, and shall not be reimbursable by Owner: All clerical and other management overhead expenses of Agent (including, but not limited to, cost of office supplies and equipment, data processing services, postage, transportation, managerial and non-managerial personnel and telephone service), other than the fee for services of the Certified Public Accountant retained to prepare the annual financial report. 26. Term of Agreement. This Agreement shall be in effect from day of____________, 20_____ until Agent, Owner or HUD terminates in accordance with the terms of herein. This Agreement will be self-renewing for 2-year terms, subject, however, to the following conditions: a. This Agreement may be terminated by either party with or without cause, as of the end of any calendar month, provided at least sixty (60) days advance written notice thereof is given to each of the Principal Parties. b. In the event a petition in bankruptcy is filed by or against either of the Principal Parties, or in the event either makes an assignment for the benefits of creditors or takes advantage of any insolvency act, the other party may terminate this Agreement without notice to the other; provided prompt written notice of such termination is given to each of the Principal Parties; and provided further that this Agreement shall not be assigned without the prior written approval of HUD. c. It is expressly understood and agreed by and between the Principal Parties that the Secretary or the Mortgagee shall have the right to terminate this Agreement at the end of any calendar month, with or without cause, on thirty (30) days advance written notice to each of the Principal Parties. In addition, the Secretary may require Owner to terminate this Agreement immediately without penalty in the event of a default under the mortgage, note, regulatory agreement or subsidy contract attributable to Agent, or upon thirty (30) days written notice for failure to comply with the provisions of the HUD management certification, or for other good cause, or if HUD takes over as Mortgagee in Possession. If the Secretary terminates this Agreement, Owner will promptly make arrangements for obtaining an alternative management agent satisfactory to HUD. HUD’s rights and requirements will prevail in the event of any conflicts with the terms of this Agreement. d. Upon termination, Agent will submit to Owner any financial statements required by the Secretary and, after the Principal Parties have accounted to each other with respect to all matters outstanding as of the date of termination, Owner will furnish Agent security, in form and principal amount satisfactory to Agent, against all obligations or liabilities Agent may properly have incurred on behalf of Owner hereunder. Agent will turn over to Owner all of the Project’s cash, accounts, deposits, investments and records, as soon as possible, but in no event more than 30 days after the date the Agreement is terminated. ERES/HUD_Rev. 11/1/2019 Page 160 of 276 27. Interpretative Provisions. a. At all times, this Agreement will be subject and subordinate to all rights of the Secretary, and will inure to the benefit of and constitute a binding obligation upon the Principal Parties and their respective successors and assigns. The extent that this Agreement confers rights upon the Consenting Parties, it will be deemed to inure to their benefit, but without liability to either, in the same name and with the same effect as though the Consenting Parties were primary parties to the Agreement. b. This Agreement constitutes the entire agreement between Owner and Agent with respect to the management and operation of the Project, and no change will be valid, unless made by supplemental written agreement, executed and approved by the Principal Parties. 28. Indemnification. To the extent permitted by law, Owner agrees (a) to hold and save Agent free and harmless from damages as a result of injuries to person or property by reason of any cause whatsoever either in and about the Project or elsewhere when Agent is carrying out the provisions of the Agreement; (b) to reimburse Agent upon demand for any monies which the latter is required to pay out for any reason whatsoever, whether the payment is for operating expenses under this Agreement or expenses in defense of any claim, civil or criminal action, proceeding, charge or prosecution made, instituted or maintained against Agent or Owner, jointly or severally, by third parties affecting or due to the condition or use of the Project (as used herein, the term “third parties” does not include agents or non-site based employees of Agent), or due to acts or omissions of Owner, or agents and employees of Owner, arising out of or based upon any law, regulation, requirement or contract pertaining to the Project; and (c) to defend promptly and diligently, at Owner’s sole expense, any claim, action or proceeding brought against Agent or Owner, jointly or severally, arising out of or in connection with any of the foregoing, and to hold harmless and fully indemnify Agent from any judgement, loss or settlement on account thereof. It is expressly understood and agreed that the foregoing provisions shall survive the termination of this Agreement. Notwithstanding the foregoing, Owner shall not be required to indemnify Agent against damages suffered as a result of gross negligence or willful misconduct on the part of Agent, its agent, or employees. To the extent permitted by law, Agent agrees to defend, indemnify, and save harmless Owner and its partners from all claims, causes of action, liabilities, losses or damages that may be asserted against Owner as a result of Agent’s failure to act in accordance with the terms of this Agreement, provided that Agent shall not be liable for any act or omission performed or omitted by it in good faith on behalf of Owner and in a manner reasonably believed by it to be within the scope of the authority granted to it hereunder, but provided further that the protection afforded Agent pursuant to this paragraph shall not apply in the case of gross negligence, willful misconduct, or fraud with respect to such acts or omissions. 29. Notices. Any notice, demand, request or other communication which any party may desire or may be required to give to any other party thereunder shall be given in writing, at the addresses set forth below, by any of the following means: (a) personal service; (b) overnight courier; or (c) registered or certified United States mail, postage prepaid, return receipt requested. If to Owner: Attn: If to Agent: Evergreen Real Estate Services, LLC 566 West Lake Street, Suite 400 Chicago, IL 60661-1414 Attn: John Kennedy Such addresses may be changed by notice to the other party given in the Agreement. Any notice, demand, request or other communication sent pursuant to subsection (a) shall be ERES/HUD_Rev. 11/1/2019 Page 161 of 276  served and effective upon such personal service. Any notice, demand, request or other communication sent pursuant to subsection (b) shall be served and effective one (1) business day after deposit with the overnight courier. Any notice, demand, request or other communication sent pursuant to subsection (c) shall be effective three (3) business days after proper deposit with the United States Postal Service. 30. Emergency Situations. Notwithstanding anything contained herein to the contrary, in the event that an Emergency Situation (as defined below) exists or arises, Agent shall be entitled to immediately take any action, which, in Agent’s reasonable determination, Agent deems necessary and prudent to preserve, protect or repair to the Project or any property related to or used in connection with the Project; provided, however, that Agent shall as soon as practical, but in any event within forty-eight (48) hours, notify Owner describing in reasonable detail the reasons for such Emergency Situation and the actions taken by Agent in response thereto. For purposes of this Agreement the term “Emergency Situation” shall mean any situation or condition which exists or arises which without immediate action (i) will or is likely to cause damage or destruction to the Project or any property related to or used in connection with the Project; (ii) will or is likely to cause the Project to be dangerous or unsafe to residents; or (iii) will or is likely to cause the Project to violate any applicable building code, rule or regulation. 31. Controlling Provisions. a. In the event of a conflict between the applicable HUD laws, regulations, contract and mortgage (“HUD Provisions”) and this Agreement, the HUD provisions will govern and control. b. In the event of a conflict between this Agreement and the Management Plan, the provisions of this Agreement will govern and control. [SIGNATURE PAGE TO FOLLOW] ERES/HUD_Rev. 11/1/2019 Page 162 of 276 IN WITNESS WHEREOF, the Principal Parties have executed this Agreement to be effective as of the date first above written. OWNER: By: /Date Its: AGENT: EVERGREEN REAL ESTATE SERVICES, LLC By: /Date Its: ERES/HUD_Rev. 11/1/2019 Page 163 of 276  EXTENSION AND AMENDMENT OF MANAGEMENT AGREEMENT Development Name: Sunset Woods Project ID (PID): HTF 1213 THIS EXTENSION AND AMENDMENT OF MANAGEMENT AGREEMENT (this “Amendment”) is made as of the 27th day of February , 2026 by and between Sunset Woods Association(the (the “Owner”) and Housing Opportunity Dev. Corp. “Property Manager.) This agreement covers 12 units (103, 112, 203, 212, 214, 216, 303, 312, 314, 316, 237, and 337). RECITALS The Owner and the Property Manager have previously entered into that certain Management Agreement dated as of September 1, 2014__________(the “Management Agreement”) and approved by the Illinois Housing Development Authority. The Management Agreement has expired and the parties wish to amend it and extend its term. NOW, THEREFORE, in consideration of the mutual agreements contained below and other good and valuable consideration, the receipt and adequacy of which is acknowledged, the parties agree as follows: 1. Definitions. All capitalized terms in this Amendment that are not defined herein shall have the meanings provided in the Management Agreement. 2. Extension of Term. The term of the Management Agreement is extended for a period of 2 years, beginning on July 1, 2026 and ending on June 30, 2028 unless , terminated earlier as provided in the Management Agreement. 3. Fees. There is no change to the monthly fee of the Property Manager. There is a change to the monthly fee of the Property Manager. Paragraph of the Management Agreement is amended to provide that the monthly fee of the Property manager shall be percent ( %) of gross collections. 4. Warranties and Representations. Owner and Property Manager each warrants that it has not executed, and represents that it will not execute, any other agreement with provisions contradictory to or in opposition to the provisions of the Management Agreement, as amended by this Amendment (the “Amended Management Agreement”) and that, in any event, the requirements of the Amended Management Agreement are (i) paramount and controlling as to the rights and obligations set forth in any other agreement and (ii) supersede any other requirements in conflict with the Amended Management Agreement. IHDA Extension and Amendment of Management Agreement (Revised 6/5/2023) Page 164 of 276 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their authorized representatives. OWNER: By: Print Name: ____________ Title: Date: 02/26/2026 FEIN # PROPERTY MANAGER: By: Print Name: Richard Koenig Title: Executive Director Date: 02/26/2026 FEIN # 36-3237455 This Amendment is approved this day of . ILLINOIS HOUSING DEVELOPMENT AUTHORITY: By: Print Name: Title: IHDA Extension and Amendment of Management Agreement (Revised 6/5/2023) Page 165 of 276  EXTENSION AND AMENDMENT OF MANAGEMENT AGREEMENT THIS EXTENSION AND AMENDMENT OF MANAGEMENT AGREEMENT (this “Amendment”) is made as of the 26th day of February , 2026, by and between Sunset Woods Association___ (the “Owner”) and Housing Opportunity Development Corp_ (the “Property Manager”). This agreement covers 2 units (#231 and #319). RECITALS A. The Owner and the Property Manager have previously entered into that certain Management Agreement originally dated as of February 3 , 2010 (the “Management Agreement”) for the two additional units defined in Exhibit A. The Management Agreement has expired and the parties wish to amend it and extend its term. NOW, THEREFORE, in consideration of the mutual agreements contained below and other good and valuable consideration, the receipt and adequacy of which is acknowledged, the parties agree as follows: 1. Definitions. All capitalized terms in this Amendment that are not defined herein shall have the meanings provided in the Management Agreement. 2. Extension of Term. The term of the Management Agreement is extended for a period of 2 year(s), beginning on July 1, 2026 and ending on June 30, 2028, unless terminated earlier as provided in the Management Agreement. 3. Warranties and Representations. Owner and Property Manager each warrants that it has not executed, and represents that it will not execute, any other agreement with provisions contradictory to or in opposition to the provisions of the Management Agreement, as amended by this Amendment (the “Amended Management Agreement”) and that, in any event, the requirements of the Amended Management Agreement are (i) paramount and controlling as to the rights and obligations set forth in any other agreement and (ii) supersede any other requirements in conflict with the Amended Management Agreement. Page 1 of 3 Page 166 of 276  IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their authorized representatives. OWNER: By: Print Name: Title: President FEIN# 01-0628727 PROPERTY MANAGER: Housing Opportunity Development Corporation By: ffe r /2;,c _,, Print Name: RichardK� Title: Executive Director FEIN# 36-3237455 Page 2 of 3 Page 167 of 276  Exhibit A Rental Units Units Bedroom Count Income Threshold #231 two-bedroom up to 80% Chicago Area Median Income #319 two–bedroom up to 115% Chicago Area Median Income Page 3 of 3 Page 168 of 276  Memorandum Date: April 6, 2026 To: Chair Fernandez-Sykes and Housing Commissioners From: Zubin Coleman, Senior Planner Subject: Sunset Woods Housing Association – Mortgage Refinance Sunset Woods Association (SWA) Mortgage Background The Sunset Woods Association (SWA) currently has a loan with the First Bank of Highland Park (also known as First Bank Chicago) for 12 of the 14 rental units owned by the City within the Sunset Woods Condominiums at 891 Central Avenue. The remaining two units are not covered by this mortgage loan, as they were purchased separately by the City in 2008 & 2009 with proceeds from a loan for the Peers building. The loan, created in 2012, matures in five-year cycles. Each time the loan has neared its five-year maturation date, the Commission’s approved a five-year refinance extension for the loan to remain with First Bank Highland Park (FBHP). FBHP also benefits from holding this loan by qualifying for and receiving Community Investment Tax Credits 1. The loan, which received Housing Commission-approved extensions in 2017 and 2022, is up for another five-year extension in April 2027. The current loan terms are as follows: Note Number 3180 Note Issue Date 7/26/2012 Maturity Date 4/26/2027 Interest Rate 5.25% Balance $321,556.60 Marc Zisook, Senior Vice President at FBHP, informed Staff that the renewal process for the loan cannot begin until the loan maturity date is less than one year out (4/27/2027). Any of the below three options for the mortgage loan must be exercised by the Commission. Prior Commission Consideration At the March 4th Housing Commission meeting, Staff bought this item to the Commission for Consideration. As outlined in the materials, Staff outlined the Mortgage and the two prior refinance extensions. At the March meeting, the Commission requested that Staff 1 The Community Investment Tax Credit (CITC) program is a State of Illinois tax credit program designed to enable local residents and stakeholders to invest in local community development corporations (CDCs) to improve economic opportunities for low and moderate-income households. SWA is considered a CDC. 1 Page 169 of 276  Memorandum provide additional information in order to make an informed decision. Please refer to the Attachments 1, 2 & 3 listed below. Further, Staff shared questions, which were asked by the Commission during and after the last meeting, with Marc Zisook of FBHP. See the commissioner’s questions with Mr. Zisook’s responses below: • Is there a Loan-To-Value ratio that you’re able to share? o When we renewed in 2022 the loan of $365,000 was based upon a market value of $550,000 so a 66% LTV. With a current balance of $318,502 the LTV would be 56%. • Can you confirm that the interest accrued is based on the principal amount and interest or is it just accumulating solely on the interest amount over time? o The current payment is based upon a 20-year amortization so both principal and interest are being paid monthly. o When the loan matures in 2027 there is an extension option, the payment will be principal, and interest based upon the balance at that time and a 15-year amortization. • What is Next Realty Fund IX LP referenced in the renewal proposal from 2022? o That’s an error. Another loan proposal was used as a template and that should have been deleted. • The proposal references a Guarantor - is that the city? o That was listed in error. There is no guarantor. If the Commission has any further questions, please reach out to Staff ahead of time. Mr. Zisook will not be present at the April meeting but is more than happy to answer any other questions or concerns that the commission may want to ask. Commission Direction for Loan Refinance Options 1. The Commission can request another five-year extension with FBHP and direct Staff to meet with FBHP any time after April 26, 2026 to lock in an extension with the current loan terms, if possible. 2. The Commission can request that Staff discuss another five-year extension with FBHP but obtaining an extension with different loan terms, any time after April 26, 2027. 3. The Commission can direct Staff to go out and issue a Request for Bids (RFB) to find a new banker for the remainder of the loan, with the goal of obtaining better loan terms. It will take Staff time to curate the RFB and obtain bids, so this process would need to start immediately. Recommendation Staff recommends that the Commission consider the three loan options listed and direct Staff to act on one of the three options. 2 Page 170 of 276  Memorandum Attachments 1. 2012 Sunset Woods Mortgage 2. 2022 Sunset Woods Mortgage Refinance 3. 2022 Sunset Woods Mortgage Refinance Amortization Schedule 3 Page 171 of 276 Page 172 of 276 Page 173 of 276 Page 174 of 276 Page 175 of 276 Page 176 of 276 Page 177 of 276 Page 178 of 276 Page 179 of 276 Page 180 of 276 Page 181 of 276 Page 182 of 276 Page 183 of 276 Page 184 of 276 Page 185 of 276 Page 186 of 276 Page 187 of 276 Page 188 of 276 Page 189 of 276 Page 190 of 276 Page 191 of 276 Page 192 of 276 Page 193 of 276 Page 194 of 276 Page 195 of 276 Page 196 of 276 Page 197 of 276 Page 198 of 276 Page 199 of 276  Planning Division Department of Community Development 1150 Half Day Rd. Highland Park, Illinois 60035 847.432.0808 cityhpil.com Date: April 6, 2026 To: Isis Fernandez Sykes & Housing Commission From: Senior Planner, Zubin Coleman Subject: Request to Release Laurel Park Phase I Affordable Unit Declarations Background Originally approved in 2006, Laurel Park, a Planned Unit Development (PUD) at 790-844 Laurel Avenue, proposed the development of 30 townhome units and a 12-unit condominium building for 42 total units. The condominium building was never built and only 12 of the 30 townhome units were built before the project’s financing fell through during the 2008 Recession. Building pads for all 30 townhome units were installed on-site and the development was approved for two inclusionary townhome units and five inclusionary condo units for a total of 7 inclusionary units. However, none of the inclusionary units were included among the constructed 12 townhome units. The 12 constructed townhomes were placed at the corner of Laurel Avenue and McGovern Street in the northeast corner of the development lot. The completed twelve townhome units are now referred to as Laurel Park Phase I. In 2025, a new PUD application was submitted for Laurel Park Phase II (also referred to as ‘Laurel Lofts’) which proposed 18 townhome units and a 12-unit condominium building on-site. Differing from the 2006 approval, four inclusionary condo units were proposed and there were no proposed inclusionary townhome units. The reduction from 7 inclusionary units to 4 inclusionary units was captured at this development’s pre-application meeting at the February 5th, 2025 HC meeting, its preliminary inclusionary review at the March 5th, 2025 HC meeting and the final inclusionary review approval at the June 4th, 2025 HC meeting. The Applicant worked with the Commission to accommodate a design, unit layout and unit distribution that the Commission ultimately felt comfortable with. This development received final adoption and approval by City Council for its PUD Amendment at the September 25th, 2025 City Council meeting. Affordable Unit Declaration Issue Laurel Park Phase I was approved for 7 inclusionary units, yet no inclusionary units were among Page 200 of 276 the 12 townhomes constructed before the development fell under due to financing and the 2008 Recession. However, the Applicant team discovered that there were 2 Affordable Unit Declarations (AUD’s) recorded for this development in 2008. An AUD was recorded against Lot 16 (see Attachment 1) and against Lot 19 (see Attachment 2), both of which are currently vacant lots that were originally approved for townhome units. The 2006-approved Plat of Re- Subdivision showing Lot 16 (794 Laurel Avenue) & Lot 19 (806 Laurel Avenue) highlighted is provided as Attachment 3. The Applicant team, Simon Berger Investment Group, represented by attorney Anthony Ochs (the “Applicant”), requested that Corporation Counsel draft approval documents releasing the two recorded AUD’s. Since no inclusionary townhome units were proposed in their 2025 approval, the four new inclusionary condominium units’ AUDs should not be recorded until both existing townhome AUDs are released. Nevertheless, it is up to the Applicant to formally request the Commission to take action and consider the release of the 2008-recorded AUDs. The Applicant submitted their formal request letter to Staff on March 31, 2025 (see Attachment 4) to appear before the Commission at their April 6th Housing Commission meeting for consideration of this item. The Lot 16 Release (see Attachment 5) and the Lot 19 Release (see Attachment 6) were also submitted by the Applicant. Affordable Unit Declaration Provision – Section 14 When originally notified of the Applicant’s intention to release the 2008-recorded AUDs, Corporation Counsel alerted Staff of provision Section 14 of the recorded 2008 AUDs. Section 14 (page 10) of Attachment 1 & 2 reads as below: Page 201 of 276 In short, the provision states that the Housing Commission is owed an amount of money that is the difference between the fair market value of the property in 2006 and the fair market value of the property in 2025, in the event of termination of the declaration. Lot 16 (794 Laurel Avenue) & Lot 19 (806 Laurel Ave) are both vacant lots recently approved for new market-rate townhomes – both lots will require an official release of their recorded AUDs. A formal appraisal would be required to determine the fair market value of Lots 16 & 19 in 2006 and 2025. Section 14 is a standard provision in every AUD. As a reminder, AUDs are required for every approved inclusionary unit in Highland Park and must be recorded by the Lake County Recorder of Deeds Office prior to the unit receiving Certificate of Occupancy (COO) permits. These declarations play a pivotal in the due diligence process of researching property titles among prospective property owners and homebuyers. Since all AUDs are recorded against the land, these declarations keep the land affordable in perpetuity. AUDs should be flagged against the property title during the due diligence process of researching and acquiring lots for residential use. Next Steps The Housing Commission is the sole entity that can approve the Applicant’s request to release the two AUDs recorded in 2008 for Lot 16 and Lot 19. Should the Commission choose to approve the Applicant’s request to release the AUDs, then Chair Fernandez-Sykes, representing the Housing Commission, will need to sign both releases and have it notarized. Staff would coordinate the signing and then have the Releases recorded with Lake County’s Recorder of Deeds office to resolve this issue. Should the Commission opt to know the amount of money that is the difference between the fair market value of the property in 2006 and the fair market value of the property in 2025, as stated in Section 14 of the AUD, then Staff would need to obtain a formal appraisal. The Applicant team would also have the opportunity to obtain an appraisal. This item would need to be continued to the May meeting to obtain those value amounts. There may also be further ramifications toward the viability of the development, dependent on the appraised amount difference. Should the Commission choose not to approve the Applicant’s request to release, then both Lot 16 and Lot 19 will maintain the AUDs, thus clouding each lot’s property title. There may also be further ramifications toward the viability of the development if townhome Lots 16 & 19 must adhere by the affordability requirement as stipulated by the recorded AUDs. This is not the Applicant’s preferred path forward. Recommendation Staff recommends that the Commission consider and approve the Applicant’s request to release the 2008-recorded Affordable Unit Declarations for Lot 16 and Lot 19. 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Ochs Suite 2500 312-704-3726 Chicago, IL 60606 aochs@hinshawlaw.com 312-704-3726 312-704-3001 (fax) www.hinshawlaw.com March 31, 2026 City of Highland Park Department of Community Development - Planning Division 1150 Half Day Road Highland Park, Illinois 60035 Re: LETTER REQUEST Planned Development – Laurel Park Subdivision – Release of Declaration of Covenants, Conditions, and Restrictions – Townhome Lots 16 & 19 790 – 844 Laurel Avenue, Highland Park, Illinois 60035 (the “Property”) (PIN(s): 16-23-318-028; 16-23-318-029; 16-23-318-030 (partial); 16-23-318-031; 16-23 318- 032; 16-23-318-033; 16-23-318-034; 16-23-318-035; 16-23-318-036; 16-23-318-037; 16-23-318-040; 16-23-318-041; 16-23-318-042; 16-23-318-043; 16-23-318-044; 16-23- 318-045 & 16-23-318-046) To Whom It May Concern: Request HP Laurel Park LLC, an Illinois limited liability company (the “Requestor”), holds fee title to the Property. Requestor previously received approval to complete Phase II of the Laurel Park Subdivision pursuant to the following ordinances and resolutions (collectively, the “2025 Approvals”): 1. Ordinance No. O52-2025, Ordinance Amending a Special Use Permit for a Planned Development and Amending an Inclusionary Housing Plan (Corner of Laurel Ave. and McGovern St., Including 788 to 844 Laurel Ave. and 1652-1670 McGovern St.); 2. Resolution No. R115-2025, Resolution Approving a First Amendment to the Development Agreement Between the City of Highland Park and the HP Laurel Park LLC; and 3. Resolution No. R114-2025, Resolution Approving a Plat of Subdivision (Corner of Laurel Ave. and McGovern St., Including 788 to 844 Laurel Ave. and 1652-1670 McGovern St.)). Pursuant to the 2025 Approvals, Requestor hereby requests the Highland Park Housing Commission (the “Housing Commission”) approve and execute the enclosed Releases of Declaration of Declaration of Covenants, Conditions, and Restrictions (the “Releases”), which would remove the Inclusionary Housing Declarations (defined herein) currently encumbering Lots 16 and 19 within the Subdivision. The form Releases have been submitted to Highland Park staff and counsel for review and comment. PERSONAL\328839358.v1 Page 264 of 276 March 31, 2026 Page 2 Background The Property is part of the Laurel Park Resubdivsion. On June 2, 2006, the City of Highland Park passed Ordinance No. 23-06 (the “Original Ordinance”), approving a Planned Unit Development to permit the construction of thirty (30) townhomes and one condominium building containing twelve (12) units. In connection therewith, the City and the prior developer executed that certain Development Agreement dated May 26, 2006 (the “Original Development Agreement”) governing said planned development. Pursuant to the Original Ordinance and Original Development Agreement, Declarations of Covenants, Conditions, and Restrictions for the dedication of inclusionary housing (an “Inclusionary Housing Declaration”) were recorded against each of the following lots within the Laurel Park Subdivision (the following lots are referred to herein as, the “Declaration Lots”): o Lot 16, 794 Laurel Avenue, Highland Park, IL (PIN: 16-23-318-045); and o Lot 19, 806 Laurel Avenue, Highland Park, IL (PIN: 16-23-318-042). Despite passing the Original Ordinance, Phase II of the Subdivision remained undeveloped since the date of the original approvals. As a result, eighteen (18) of the townhome lots, including the Declaration Lots, and the lot reserved for the condominium building remained vacant land, and no inclusionary housing units were ever constructed within the Laurel Park Subdivision. In 2025, Requestor applied to the City to amend the prior PUD and the Original Development Agreement to construct the remaining eighteen (18) townhomes and the condominium building pursuant to Requestor’s updated plans (the “Development”). On September 25, 2025, the City approved the updated Development and passed the 2025 Approvals. Among other items, the 2025 Approvals included (i) reducing the number of inclusionary housing units within the Subdivision from seven (7) to four (4) units, and (ii) locating the four (4) units within the condominium building, as set forth in the First Amendment to the Development Agreement included as an exhibit to the 2025 Approvals. Please note that, in connection with seeking the 2025 Approvals, Requestor presented its plans before the Housing Commission and the Highland Park Plan and Design Commission (the “P&D Commission”) at the following public hearings: - Housing Commission meeting on February 5, 2025; - Housing Commission meeting on March 5, 2025; - Housing Commission meeting on June 4, 2025 (whereby findings of fact in favor of Applicant completing the Development were determined); - P&D Commission meeting on March 18, 2025; - P&D Commission meeting on June 17, 2025; and - P&D Commission meeting on July 15, 2025 (whereby findings of fact in favor of Applicant completing the Development were determined). PERSONAL\328839358.v1 Page 265 of 276 March 31, 2026 Page 3 Throughout the approval process, Applicant updated and modified its plans for the Development to address comments received from Highland Park staff, the Housing Commission, the P&D Commission, along with comments from the existing townhome owners and other neighbors. Conclusion and Supporting Documentation Pursuant to the 2025 Approvals, the Declaration Lots are no longer dedicated for inclusionary housing, and therefore the Inclusionary Housing Declarations should be released from each of the Declaration Lots. Therefore, Requestor requests the Housing Commission approve the Releases and cause for the same to be executed. In support for the request, enclosed please find: 1. The Inclusionary Housing Declarations currently recorded against Lots 16 and 19 in the Laurel park Subdivision. 2. Draft Releases for each of Lots 16 and 19. 3. Copies of the 2025 Approvals (including the draft First Amendment to the Development Agreement). Very truly yours, HINSHAW & CULBERTSON LLP Anthony M. Ochs AMO:gr PERSONAL\328839358.v1 Page 266 of 276 ____________________________________________________________________________ This document was drafted by: Hinshaw & Culbertson LLP Anthony M. Ochs 151 North Franklin Street, Suite 2500 Chicago, IL 60606 RELEASE OF DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS Effective Date: ________________, 2026 RECITALS A. That certain Declaration of Covenants, Conditions, and Restrictions (“Declaration”) was previously made and entered into as of November 8, 2006, by Laurel Park , LLC, an Illinois limited liability company (“Original Declarant”), in favor of the City of Highland Park (the “City”) and the City of Highland Park Housing Commission (“Housing Commission”), and was recorded with the Lake County Recorder’s Office on December 14, 2006 as File Number 6106195, against the land legally described on Exhibit A attached hereto and incorporated herein (the “Property”), pursuant to the planned development of the Laurel Park Subdivision (the “Project”) as contemplated by that certain Development Agreement dated May 26, 2006 (the “Original Development Agreement”) between the Original Declarant and the City. B. HP Laurel Park LLC, an Illinois limited liability company (the “Successor Declarant”) acquired fee title to the Property and succeeded in all rights and obligations with respect to the Property. C. The City approved Highland Park Ordinance No. O52-2025 An Ordinance Amending a Special Use Permit For A Planned Development And Amending An Inclusionary Housing Plan (Corner of Laurel Ave. and McGovern St., Including 788 to 844 Laurel Ave. and 1652 to 1670 McGovern St.) (the “Ordinance”) on September 25, 2025, which, among other things, approved the Successor Declarant to complete the Project and approved amending the Original Development Agreement to relocate properties and units within the Project that would be dedicated for affordable housing units pursuant to the City’s Inclusionary zoning regulations (Article XXI of Chapter 150 of the “Highland Park Code of 1968”, as amended). Page 267 of 276  D. Pursuant to the terms of the Ordinance and the First Amendment to the Development Agreement, a copy of which is attached as Exhibit B of the Ordinance, the City and the Housing Commission approved the Property to no longer be dedicated for affordable housing, on the consideration that other homes within the Project would be subject to affordable housing as further set forth in the Ordinance and the First Amendment to the Development Agreement. E. Pursuant to Section 2 of the Declaration, the covenants, conditions, and restrictions of the Declaration continue in full force and effect until such time the Housing Commission records an instrument terminating the covenants, conditions, and restrictions of the Declaration. WHEREAS THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS, made and entered into as of November 8, 2006, executed by Laurel Park , LLC, an Illinois limited liability company, in favor of the City of Highland Park and the City of Highland Park Housing Commission, and recorded in the Lake County Recorder’s Office on December 14, 2006, as File Number 6106195, IS HEREBY FULLY RELEASED. [Signature Pages to Follow] Page 268 of 276 IN WITNESS WHEREOF, this Release is hereby approved as of the Effective Date first written above by the Housing Commission, and is authorized to be recorded with the public records of Lake County. CITY OF HIGHLAND PARK HOUSING COMMISSION, By: ________________________________ Name: _____________________________ Its: ________________________________ STATE OF ILLINOIS ) ) COUNTY OF LAKE ) This instrument was acknowledged before me this ______ day of ______________, 2026, by ___________________, the _________________ of the CITY OF HIGHLAND PARK HOUSING COMMISSION, on behalf of the Housing Commission. Notary Public [Notary Seal] Page 269 of 276  EXHIBIT A LEGAL DESCRIPTION Lot 16 in Laurel Park Resubdivision Falling in the Southwest Quarter of Section 23, Township 43 North, Range 12 East of the Third Meridian. Address: 794 Laurel Avenue, Highland Park, IL 60035 PIN: 16-23-318-045 6198\328804883.v2 Page 270 of 276 ____________________________________________________________________________ This document was drafted by: Hinshaw & Culbertson LLP Anthony M. Ochs 151 North Franklin Street, Suite 2500 Chicago, IL 60606 RELEASE OF DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS Effective Date: ________________, 2026 RECITALS A. That certain Declaration of Covenants, Conditions, and Restrictions (“Declaration”) was previously made and entered into as of November 8, 2006, by Laurel Park , LLC, an Illinois limited liability company (“Original Declarant”), in favor of the City of Highland Park (the “City”) and the City of Highland Park Housing Commission (“Housing Commission”), and was recorded with the Lake County Recorder’s Office on December 14, 2006 as File Number 6106196, against the land legally described on Exhibit A attached hereto and incorporated herein (the “Property”), pursuant to the planned development of the Laurel Park Subdivision (the “Project”) as contemplated by that certain Development Agreement dated May 26, 2006 (the “Original Development Agreement”) between the Original Declarant and the City. B. HP Laurel Park LLC, an Illinois limited liability company (the “Successor Declarant”) acquired fee title to the Property and succeeded in all rights and obligations with respect to the Property. C. The City approved Highland Park Ordinance No. O52-2025 An Ordinance Amending a Special Use Permit For A Planned Development And Amending An Inclusionary Housing Plan (Corner of Laurel Ave. and McGovern St., Including 788 to 844 Laurel Ave. and 1652 to 1670 McGovern St.) (the “Ordinance”) on September 25, 2025, which, among other things, approved the Successor Declarant to complete the Project and approved amending the Original Development Agreement to relocate properties and units within the Project that would be dedicated for affordable housing units pursuant to the City’s Inclusionary zoning regulations (Article XXI of Chapter 150 of the “Highland Park Code of 1968”, as amended). Page 271 of 276  D. Pursuant to the terms of the Ordinance and the First Amendment to the Development Agreement, a copy of which is attached as Exhibit B of the Ordinance, the City and the Housing Commission approved the Property to no longer be dedicated for affordable housing, on the consideration that other homes within the Project would be subject to affordable housing as further set forth in the Ordinance and the First Amendment to the Development Agreement. E. Pursuant to Section 2 of the Declaration, the covenants, conditions, and restrictions of the Declaration continue in full force and effect until such time the Housing Commission records an instrument terminating the covenants, conditions, and restrictions of the Declaration. WHEREAS THAT CERTAIN DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS, made and entered into as of November 8, 2006, executed by Laurel Park , LLC, an Illinois limited liability company, in favor of the City of Highland Park and the City of Highland Park Housing Commission, and recorded in the Lake County Recorder’s Office on December 14, 2006, as File Number 6106196, IS HEREBY FULLY RELEASED. [Signature Pages to Follow] Page 272 of 276 IN WITNESS WHEREOF, this Release is hereby approved as of the Effective Date first written above by the Housing Commission, and is authorized to be recorded with the public records of Lake County. CITY OF HIGHLAND PARK HOUSING COMMISSION, By: ________________________________ Name: _____________________________ Its: ________________________________ STATE OF ILLINOIS ) ) COUNTY OF LAKE ) This instrument was acknowledged before me this ______ day of ______________, 2026, by ___________________, the _________________ of the CITY OF HIGHLAND PARK HOUSING COMMISSION, on behalf of the Housing Commission. Notary Public [Notary Seal] Page 273 of 276  EXHIBIT A LEGAL DESCRIPTION Lot 19 in Laurel Park Resubdivision Falling in the Southwest Quarter of Section 23, Township 43 North, Range 12 East of the Third Meridian. Address: 806 Laurel Avenue, Highland Park, IL 60035 PIN: 16-23-318-042 6198\328796657.v2 Page 274 of 276  Memorandum Date: April 6, 2026 To: Housing Commission From: Maddy Markle, Planner I Subject: Standard Affordable Housing Eviction Policy Background The Commission has requested information about the City’s eviction policies for the City owned affordable units. Understandably, the Commission does not wish any resident to be evicted without reasonable notice during the winter season. No resident has been evicted from a City property during the 2025-2026 winter season, nor have any eviction proceedings been initiated this winter. This memo is for informational purposes and is not related to any current or past eviction case. The following is an explanation of current policy and HUD standards. Current Policies ERES The City’s affordable housing managed by Evergreen Real Estate Services (“ERES”) follow ERES’s eviction policy. The current policy is to give delinquent tenants a full 30 days’ notice on the 6th of each month. During the 30 day notice tenants are given the option to sign a payment plan (if no payment plan is currently in effect) or to pay in full. Eviction proceedings are not initiated until 30 days after written notice is given. ERES notes that eviction is always a last resort. Mutually beneficial agreement is the goal of eviction proceedings. Tenants are informed about payment plans and rental assistance programs. Complete eviction proceedings take a minimum of 5 months from the time of a missed payment. HODC Units at Sunset Woods follow Housing Opportunity Development Corporation’s (“HODC”) eviction policy. Like ERES, HODC give delinquent tenants 30 days’ notice prior to initiating eviction proceedings. HODC works with tenants to create payment plans in the event of non-payment. Payment plans are based on a residents ability to pay and can be extended as necessary. After a payment plan is established HODC only begins the eviction process if payments are missed 3 consecutive months in a row. Additionally, HODC will work with tenants to obtain rent adjustments in the case of lost employment or benefits. HODC states eviction cases take 4-5 months to process in the court system once initiated. HUD Rules The Department of Housing and Urban Development (“HUD”) adopted a rule in Dec. of 2024 requiring public housing agencies and properties receiving project based rental 1 Page 275 of 276  Memorandum assistance to give 30 days’ written notice of nonpayment to tenants before the initiation of formal judicial eviction proceedings. On February 26, 2026 HUD revoked the 2024 final rule. The revocation went into effect March 30, 2026. 1 Figure 1. Current HUD Notice Requirements (March 2026). Summary ERES’s and HODC’s eviction policies exceed HUD’s current standards. Both will give 30 days’ written notice and offer payment plans prior to initiating formal proceedings. Eviction proceedings take on average 5-7 months from the time of missed payments. Both ERES and HODC emphasize that eviction is always treated as a last resort, both by them and the court system. Recommendation Staff finds ERES’ and HODC’s current policies ensure that tenants have at least five months to plan for a change in housing prior to an eviction being granted by the courts. Staff finds no risk of a tenant being evicted unexpectedly during the winter without adequate notice. Staff recommends that the Commission continue to allow HODC and ERES to enforce their current policies on behalf of the Commission. 1 See 2026 Interim Final Rule here: https://www.govinfo.gov/content/pkg/FR-2026-02-26/pdf/2026- 03921.pdf 2 Page 276 of 276