frE CONNECTICUT

HOUSINC FINANCE
AU THO R ITY

\rIA CERTIFIED MAIL _ RETURN RECEIPT REQUESTED

Janrrary 11,?011

Mr. Joseph Romano, Chairman

Derby Housing Authority
101 West Fourth Street
Derby, CT 06410

Re: Cicia Manor - Developrnent #8503lD

Lakev iew Apts. - Developmenl #90037D
Stygar Terrace - Development # 85030D
Notice of Default * Nort-Monetary

Dear Mr. Rornarro:

The Counecticut Housing Finance Autliority (the "Authorify") hereby provides formal ttotice that you are in
default of certain obligations under the terms of your Department of Florising Assistant Agreement documents
("Assistarce Agreement'') in that you failed to respond to the findings of the March 3l,2016, Audited Finaltcial
Staternent, Please see below, a Iisting of the findings:

"Finding I - Page 27 of AFS line#l44: Interprogram Due From - Please clarify $220,250 asset
balance. Please advise r,vhere this balance originated.

Finding 2 - Page 27 of AFS line 333: Accountsfayable Other Govetnmetrt - Please clarifu this
liability from the State proglarn to "Other Govemment." - $l 18,047 CItrA is not aware that the State
Properties have any liabilities of this magnitude. Please clarifo.

Finding 3 - 1 1 13 - Reserve Cash-Savings and Investments - Tlre balance in this account is

$18,046.38. The nriuimum SSHP required balance is $106,000. Balmce in ploperfy reselves tnttst be
irnmediately replenished to SSHP requirecl tninitntur.

Findir:g4- 1155-AdvancestoRevolvingFuucl-BALANCE$191.,632.0i -iter:rnotrequit'edfor

elderly only programming. The Delby Housing Autirority is reqr"rirecl to irntnediately repay funds to
State program arrd eliminale item, revolvi*g fund ttnauthorized."

Please be advised that failure to comply with the conditions set folth in your Assistance Agreement cotrstitute an
Event of Default thereunder.

999 West Street ltocky Hill, CT 06067-4A05 I 860.721.9501 | chfa.org

An Affh^rnattue Actian & Equal Opportuniljt Etnployer
Ifsatisfactory alrangements to resolve the outstanding above noted ntattets above are not made within thirty
(30) days, the Authority may direct its legal couttsel to pursue all available legal remedies to protect the
Depadment of Housiug's itrterests.

Sincerel

//r
Agaa'
yryfl l(oroser-Ctane
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Multi fami ly Honsing Asset Managet* ent

D i f ector,

CEIFA Staff
Michael Santoro, Department of Housitg
Steve Nakaro, Executive Director, Derby Housing Authority