Correspondence Logs - Cruz, U.S. Department of Housing and Urban Development Correspondence (2013-2017)

Work in Progress ents mera Expo Home Ceiiter Retall Price Model: Sweetwater ‘27 SA GM2-Y 68,062.00 Factory DirectDiscount Sold “by TA adveA (8,188.00) SUB-TOTAL1 $58,874.00 Addendum “A” Upgrades 1,264.00 Unpgrades/Options/Features Miscellaneous G4) - DecemberSales Promotion Discount _ - Ct (t4)|- (12,356.00) Manager's Discount " G4 (793.00) Misc #3: 5-0 7 0 ~ 7, = ey Misc’ #4: Te ae 2 “- (percent)| ~~ 0.00 Misc #5: ~ . - : soe (percent) 0.00 OutofState Tax Credit [] : VIP Muit. Discount 4 0.00 SUB-TOTAL 2 $46,989.00 ViT 0.1783% 84.00 DocumentPreparation ‘ 395.00 Freight (+) 2,500.00 | {Setup {Block, Level, Tie-Down}, Trim-Out, 1.Set of Steps-- 0. 5-2 AAs ae. 3,600.00 6 Year Extended Service Contract $1995 Not Purchased 0.00 | [4-Ton 43 Seer CoolingSplitSystem wi.t0-Yr Parts &Labor Warranty _(#/)| | _2,530.00 | TOTAL $55,998.00 Down Payment ft Oye we Additlonal Payment as Agreed ey a Unpaid Balance , $55,998.00 No other roprasentallons, inducements, or verbal promises have baen made which are not contained in this contract. x LaddPel/ David Buck Faclory Expo Representative Date x Factory Expo General Manager Buyer Date Page 3 Addendum "A" Factory Expo Home Center (03/2008) ™4212712014 DEC 2014 REV.

aybI9 acto po customer: Model: Sweetwater.- Storm Windows Hardie PanelSidin OTAL FOR ADDENDUM"A" xX x DATE: (#°#7-7/ Page 2 Factory Expo HomeCenter (03/2008) 12/27/2011 $1,264.00 Addendum "A* DEC 2011 REV.

Please attach a copy of ail written notifications, any certified mail receipts, and your contract or purchase agreement, Section D Manufacturer: [CAVGBO ach%ryExpe| Width: 4% 7 [Length 3% 7 Year Model: | CAVLe [Purchise Date: [/A-27-/7 [Newey Used) HUDLabel or Texas Seal ts: ASTA/S6 326 3 Complete Serial #s) WTQs oG Fee GZ NTASEE Zab Date Installed: la fer7fe a [ County where homeistocated: [| Bee -ave7z Physical Pre) Address of home: Siaen Sy oe) Fre OO el Was homepurchasedbyitself (as personal property) or with land (as real property)? Personal () Real?9 Do youhavea title or a Statement of Ownership and Location in your name? Yes ([#1 No (fF} Ifno, please attach a copy of any ofthe following documents that you mayhave: Bill of sale, purchase agreement, any title docu: ry Kb){6) Name Address City State Zip Section E Howto locate thé HUDlabel number on the manufactured home. Back End TowBar End of Home Ts Front End The aluminum HUDlabelis 2" x 4” and has a threeletter prefix, such as TEX0000000. it is generally located on the back end outside ofthe homein the lowerteft comer. Section F Ufrequesting an inspection, a map and detailed directions to the home must be provided. Map: North West East South Written directions; ATLRAS Complainant’s Signature Under penalty ofperjury, I hereby swear that the matters setforth in this complaintare, to the best ofmy knowledge, true and correct. KG) 3-3/- fa (Signature ofOWNER) (Date) MHD FORM 1010 / CONS COMPL FORM DOC Pove of? Rev O2/1d/.

: * ok Mew Ssgaleal . DieLed Ho #8 toa Ba warffSg: [Mandatory DocumentFaciory Direct Disclosure Addendum “E” | ADDENDUM "E" FACTORY DIRECT DISCLOSURE Homeis being sold F.0.B. Factory Buyeris responsible for the following items: + Basicinstallation is included as detailed and quoted on your purchase agreementorvia signed change order. Buyer understands that unless otherwise stated, the installation price whichis quoted and includedin this agreementis for bastc installation only and my not cover specific site restrictions or needs. Basicinstallation is defined as basic standard heightblock & jevel and wind zone 1 tiedown. Buyer may contract other services. Factory Expo HomeCenteris not responsible for workmanship of contracters hired by homeowner. Improperrepairsoralterations made to your home mayvaid portions of you factory warranty. In the event the manufactured homesis equipped with interior drywall Tape and Texture treatment then buyer understands that during transportation and placement on property minor“hairline” cracks may appear, particularly around window and door areas. responsible these areas and completing the “marriage line close-up” at buyer's expense.in the event drywail cracks exceed ¥%" wide, then these are covered underthe manufactured home warranty at no expense to homeowner. However, exceptions ta the warranty of 4” cracks include cracks caused by extreme maneuvering of homeinto position on buyer's property. Sharp turns, rough bumpy terrains, homes craned oruseof helicopters to place, maneuvering Into excavated hole, may cause exceptions to the warranty of %4" drywall cracks. Buyer understandsthat the purchased manufactured Home comeswith a “Floating Interior Door’ system on all doors. The purposefor this system is to allow the adjustment of doors and door frames uponinstallation of the home. This allows theiristaller to make sure the interior doors are in a square and even position during the leveling andinstallation of the manufactured home. Buyer understandsthat this is not a warranty item and doors must be adjusted and fixed into place at buyer's expense the homeinstallation contractor or other designated individual. « Buyeris financially responsible for all aspects of any home-site/land improvements needed including but notlimited to septic tanks, welt preparation, utility connections, clearing, etc. Buyeris responsible for obtaining any permits neededtoinstall home. + Buyeris responsible for the final cleaning ofinterior of home andinstallation/purchase ofall fight bulbs. + [Weunderstandthatfinal funding of home must occurprior to shipment from factory. eye) x x SEPA HL David Burck Factory Expo Representative 4 ate x x Factory Expo Home Center Date Rev 11/17/05- Page 5

SITE PREPARATION;The installer is responsible for proper preparation ofthe site where a new manufectured home is to be installed. A consumer is responsible for proper preparation ofthe site where 2 used manufactured home is to be installed, If you do not think you can prepare your site property, consider hising someone else with the right experience and equipment to do it for you. Proper site preparation includes a site for placement of the home that has good drainage so that water will not collect or mn under or around the heme; and firm compacted soil with no stumps, debris, or other matter. The site that is selected and prepared also needs to mcet any setback or other placentent requirements and have access to any required water, septic system, and utilities. PROPER SITE PREPARATIONIS ESSENTIAL! om x a INSTALLATION: If you are porchasing a NEW manufactured home. Installation met be incloded, If you are purchasing a USED manufactured hame, installation may or may not be included. If installation is not included and you arrange for it yonrself, remember, ONLY A LICENSED INSTALLER may install a manufsctured home. The installer who actually installs the home mnst also provide a warranty,” PROPER INSTALLATION BY A LICENSED INSTALLER IS REQUIRED BY LAW IN ORDER FORAHOME TO BE OCCUPIED. Ifyou ace buying a home that has already been installed, you should ask the selling retailer if they will cheek the leveling, check for the presence (if required) and condition of any vapor retarder, check anything else regarding the foundation/stabilization system, or provide amy other installation services. Ifyou acquire a used mannfactnred home that is already installed in a Wind Zoue Df county but the homeis a Wind Zone J hame, which means that home was not designed or constracted to withstand 8 horricene fores wind occarring in a Wind Zone 1 or Ul area, the home cannot be mstalled in a Wind Zone II area untess if was constructed before September 1, 1997, Kb){6) anttials UPKEEPAND MAINTENANCE; ANY home requires regular upkeep and maintenance — things like periodic checking of and repairs to the roof, keeping vents and filters clear, maintaining septic systems and wells in safc and sanitery working order, caulking to prevent leaks, and periodic painting. Also. depending on the foundation system you choose, a manufretured home may require periodic checking to be sure that it is still level and that the anchors and straps are secure. Kb){6) initials MEDFOR 1003sORRTEL Page 3086. EG OASFOE TX FORMS Pgs 1-6

FOUNDATION MAINTENANCE: You must accept all responsibility far maintenance ofthe site upon closing, These responsibilities include: maintaining. good drainage around the home, preventing soil erosion. pefiodic inspections offoundation supports and anchorage, and any leveling or adjustment that may be required unless contractually agreed otherwise. Homes locafed in areas that have soils with high clay content that expands and contracts must maintain consistent nioishure levels, This may iclide watering around the foundation dung dry summer months and managing the size and proxunnty ofthe vegetation near the foundation. Kb){6) initials LOT RENT:Ifyan reat the lot your home is on, in addition to the possibility ofreat increases, it is possible that the property owner could decide fo change the use of the land and not renew your lease. Although you would be given advance notice, this would mean that you would have to move your home andhave it installed somewhere else. Ko){6) . tuitin’s WATER AXD UTILITIES: Be sure that your lot has access to water. If you must driil a well, consider contacting several drillers for bids, If water is available throngh a municipality, utility district, water district, os cooperative, you should inquire about the rates you will have to pay and the costs necessaryto join the water system. Be sure that any utilities you will need are available at your site and, if they are not, find out what will be involved in getting them delivered and canhected. Kb){6) anitials SEWER CONNECTIONS OR SEPTIC SYSTEMS: Ifyour iot is not serviced by a municipal sewer system or utility district, you will have to install an on-site sewer facility (commonly Imown as 4 septic system), There are a number ofconcems or restrictions that will determineifyour lot is adequate to sitppart a septic system. Check with the local county or a licensed private installer to determine the requinensents that apply to your lot and the cost to install such a system. * oye) intttals HOMEOWNEBS ASSOCIATIONS AND FEES: Many subdivisions have mandatory assessments and fees that lot owners must pay. Check with the manager ofthe subdivision in which your lot is located to determine ifany fees apply to your lot. Ko){6) fottials 14RDROEMLE(O00 DESCLDOC PomSof EBSPORMS - Pps 1-6

$ Ler Limited Indoor Air Quality 4017 County Road 112 Burnet, Texas 78611 ay Fa PE? f Wee y It Coed 4 ¥ ly Sy GAVe Dod ws - Cp: es SV rag “ . we Das%or Ape PON AAYI sed Geloatf | Bs by plex — * AEHS, Ine. 4402 Center Gate San Antonio, Texas 78217 (210) 656-9300 www.achs-sa.com

2017, County Road 112 Burnet, Texas - . pene TAQ Inyestigation ~' 4.7. Formaldebyde. 4.7.1. There are various standards for formaldchyde standards/levels and are depicted in the Table 2, below. Table 2 Formatdebyde Standards/Levels Parts Per Billion Standard Setting Organization Limit/Level Occupational Safety and Health Administration* (OSHA) 750 National Institute of Occupational Safety and Health* (NIOSH) 16 Federal Emergency Management Agency (FEMA) 16 Housing and Urban Development (HUD) 200 - 300. Leadership in Energy and Environmental Design (LEED) 27 Note: *8 hourtime weighted average for workers. A rule of thumbfor Indoor Air Quality is 1/10 of the worker standard as established by OSHA. 4.7.2. The measured level for formaldehydeis depicted in ‘Table 3, below. Table 3 Measured Formaldehyde Levels Parts PerBillion Master Bedroom Back Bedroom Rug Bag 6.5 13 2.3 4,7.3. There is evidence that some people may havea sensitivity to formaldehyde. It has also been shown to cause cancer in animals and may cause cancer in humans. Health effects include eye, nose, and throatirritation; wheezing and coughing;fatigue; skin rash; severe allergic reactions. 4.7.4. As indicated in paragraph 4.0., above, the open windows would have undoubtedly reduced the formaldehyde levels by a small margin. 5.0, Conclusions. 5.1. There does not appear to be a mold issue within the homeatthis time. 5.2. There are someindicationsthat the heatintrusion is occurring through lack ofinsulationat specific roof and wailinterfaces and wall to wall interfaces,

AEHS,Ine. ACOODI2i 4.7, Formaldehyde. 4.7.1. There are various standards for formaldehyde standards/levels and ate depicted in the Table 2, below, Table 2 Formaldehyde Standards/Levels Parts PerBillion Standard Setting Organization Limit/Level Occupational Safety and Health Adininistration* (OSHA) _ 750 National Institute ofOccupational Safety and Health* (NIOSH) 16 Federal Emergency Management Agency (FEMA) 16 Housing and Urban Development (HUD) 200 - 300 Leadership in Energy and Enviionmenstal Design (LEED) __27 Note: *8 hourtime weighted average for workers, A rule of thumbfor Indoor Air Quality is 1/10 of the worker standard as established by OSHA. 4.7.2, The measured level for formaldehyde is depicted in Table 3, below. Table 3 Measured Formaldehyde Levels Parts PerBillion Master Bedroom Back Bedroom . Rug Bag 65 _ 3 23 4.7.3. There is evidence that some people may have a sensitivity to formaldehyde. it has also been shownto cause cancerin animals and maycause cancerin humans, Health effects include eye, nose, and throatirritation; wheezing and coughing; fatigue; skin rash; severe allergic reactions. 4.7.4, As indicated in paragraph 4.0., above, the open windows would have undoubtedly reduced the formaldehyde levels by a small margin. 5.0. Conclusions. §.L. There docs not appear to be a mold issue within the homeatthis time. 3.2. There are someindicationsthat the heatintrusion is occurring through tack of insulationat specific toof and wall interfaces and wall to wall interfaces.

a ‘AEHS, Ine, Limited IAQ Investigation . County Re 2 ’ . ACOOI21 2017 CountyRoad 112 Burnet, Texas Limited IndoorAir Quality Investigation 2017 County Road 112 Burnet, Texas 78611 for (b)(6) Preface IndoorAir Quality (IAQ) has received considerable attentionin thepast hventy lo thirtyyears, however, the majority ofthe attention was directed at comfort ofthe oecupants, This was particularly true in the late 1970's when energyefficient buildings were constructedorolderbuilding remodeled to save heating and cooling costs. Terms such as “Sick Building Syndrome”, “Tight Building Syndrome”, “MoldySchool”, and “Sick House" have become vogue. Currently, more attentionis beingpaid to the health aspects that have resulted in manyphysicalandpsychological symptoms, This coupled with the realizationthat hypersensitive persons may have multiple cheniical seusitivities are in fact sufferingfrom an dlness that has led to both research and applied studies. Additionally, there appears to be mare allergic reactions to various microorganisms, such asfungi, thanin the past, Most Indoor Air Qualityissues must be handled onanindividual basis andspecialconsiderationgiven(o the concerns of the occupants orfuture oceupanis, Indoorair quality and microbial growth in buildings (hospitals, businesses, schaols, and homes) is not newso the industrial hygiene profession. However, because ofthe media blitz, high court awards, andan increase in chemicalsensitivityamong individuals, the issue has become highprofile andfear abounds. The mere presence ofmolddoes not meanthatit is toxic to building occupants The science is not exact and sampling strategies, assessments, andremediationefforts ave not institutionatized. Often, moldand other IAQ issues are emotionalandrationalthinking is sometimes avoided because ofthefear. Jn the more recent past, we have seen an increase in complaints within residences (individual houses, apartments, hotels, etc) to include mold growth, This increase can be attributed to many changes in our living enviromnent, The increase in energy costs as well as environmentally conscience individuals have led to the use ofdouble insulated windows, caulking ofminute openings, and more insulation — all in anattempt to use less energy. Conversely, the changes in climatic conditions have caused soil to move, houses to developfoundation cracks, roofs to leak, lack ofproper diainage awayfrom foundations, andflooding. These latter occurrences may contribute to the infiltration and growth offugi. Once again, the aforementionedchanges coupled with the increasedindividual sensitivities have seen arise in [AQ concerns in indwidual residences. LO, Background, 1.1. On 15 October, 2012, Ronald M.Bishop, of AEHS,Inc. swascontacted by Ray Medrano of TLI, concerning a manufactured home purchased by (b)(8) 1.1.1.) (b)(6) [was contacted and her concerndiscussed as was the previousinvestigation by TL 1.1.2, It was decided that further investigation was warranted. i

1.2, On 18 Octoberthe first phase of the investigation was initiated by Matthew E. Bishop, CHSP,underthe overall direction of Ronald M. Bishop, MPH, CTH. 1.2.1. Matt Bishop is a Texas Departmentof State Health Services (TDSHS) licensed Mold Assessment Consultant, Asbestos Inspector/Management Planner, Lead Risk Assessor and Lead Project Designer. Additionally, he is a Certified Healthcare Safety Professional and Certified Environmental and Safety Compliance Officer. 1.2.2, Ron Bishopis a Certified Industrial Hygienist (American Board ofIndustrial Hygiene), a Registered EnvironmentalProfessional, Registered Environmental Manager, a Diplomate in Environmental Health, a Certified Safety Executive, a Certified Environmental and Safety Compliance Officer, and a Green Consultant. Additionally, he is licensed by the TDSHSas an Asbestos Consultant, a Lead Risk Assessor, a Lead Project Designer, and a Mold Asscssment Consultant. He has overthirty years ofIndoorAir Qualify experience and has conducted over 500 mold/IAQ investigations in the past five years. Also, he has a Master ofPublic Health degree as well as a Master ofMilitary Arts and Science and a MasterofPublic Administration. 1.3, On 19 October the second phase ofthe investigation was performed by Ronald M. Bishop and included collection of the dosimeters, ulttafine measurements, and mold sampling. 2.0. General, 2.1. In general, indoorair quality problems can occurin all types and agesofbuildings; in newly constructed buildings; in renovated or remodeledbuildings; and in old buildings. The buildings may be private residences, multi-storied office buildings, healthcare facilities, schools or industrial complexes. Problems in new, clean buildings are rarely related to microbial growth, since the physical structures are new; however, this may not hold true if the building materials were allowedto be exposed to weather and then not adequately dried priorto installation or the drainage around a new constructionis not sufficient. Older buildings that have not beenproperly maintained and operated may have problemswith bioaerosols ifparts ofthe building have been allowed to bécome reservoirs for microbial growth. Also,if inadequate outside air is present, regardlessofthe age ofthe building, chemical and biological contaminantswill build up to levets that can cause health effects in some occupants, Often, designs do not considerprevailing winds, sun directions, or slope ofthe land for proper draining. This lack ofconsideration mayleadto air contamination ‘or water intrusion. 2,2. Fungi, Moldis a term that applies to the visible form of fungi growth while mildew is a layperson’s term that refers to fungi growing on fabrics, windowsills, bathroom tile, and thelike. Yeasts are actually fungi that are culturally unicellular. Fungi reproduce both sexually and asexually, simplistically, spores are produced during the reproduction. The spores become airborne and can be trapped. All molds are fungi, They are commonthroughoutthe United States and occur in abundancein the outdoors. 2.2.1, Mold spores can be dormantfor years and once moisture is encountered,the spores can start renewed growth,

. AEHS, Inc. * ACO0I21 2.2.2. Once porous material, such as interior or exterior sheetrock,particle board, wood,etc., becomeswet,il is very difficult to dry completely. 2.3. Mold Sampling. The goal of biological (microbial) sampling is to assist in the overall assessment of the IAQin particular environment. It may provide information concerning the potential for causingirritation; to locate the sources ofindoor mictobes;to assist in determining the overal] effectiveness ofthe Heating, Ventilating, and Air Conditioning (HVAC) system; and to assist in determining appropriate remedial actions. 2.3.1. Culturable samples are those from which microorganism are “grown”. The types of culturable samples include: air, swabs, surface directplating, and settling. All have pro’s and con’s. The greatest drawbackwithcultutable samples is that microorganismsgrow atdifferent ates and are competing for the growth media; therefore, an aggressive organism may oveishadow onethat grows slower. Another concernassociated with culturable samplesis the interpretation ofthe results. There is a tendency to makedirect comparisons andtry to assess the environment based on the numbers of organisms, Because there are not standardized protocols, no cut off levels, and a variation in the sensitivity of individuals, number comparisons should be used with extreme caution. 2.3.2, Non-culturable methods of sampling include spore trapping and sticky tape surface lifting. These samples are viewed directly under a microscope and characterized based on morphology. Thegreatest drawbacks of using this method of sampling are that some fungi spores ate very smail and cannot be seen while others have similar morphologies that do not allow for discernible identification. Once again, comparison ofnumbers should be used with exireme caution, 2.4 Particulates, 2.4.1, Particles, Particles greater than 1 micron are often the causeofirritation and can exacerbate other problemsparticularly when associated with low humidities. 2.4.2. Ultrafines. Ultafines are defined as particles less than 0.1 micron in diameter. The sources of ultrafine particles include building and vehicular exhausts associated with combustion, environmental tobacco smoke, and manufacturing operations. Also, but often overlooked, sources include: cleaning solvents, heater gasket leaks, entrainment of duct linings, and malfunctioning office equipment. The technologyofusingultrafines is emerging and consists of detection via a condensationparticle counter. 2.4.3, Particle Discrimination/Discernment. Condensation particle counters are also available that differentiate in particle size -- 0.3 micron, 0.5 micron, 1.0 micron, 2.5 microns, 5 microns, and10.0 microns. Of importance in mold evaluationare the sizes at 1 through 10 microns becausethis is the majority of the size ofmold spores. Therefore, a high number of particles in the 2 and 5 micronsizes will normally indicatemoldgrowth. This is especially true when comparing theinside results with the outside measurements.

2.5, Volatile Organic Compounds (VOCs). Many homebuilding products and furnishings contain materials that emit VOCs, The VOCsare a result of the use or manufacturing of building materials and furnishings containing chemicals whichoff- gas after installed, 2.6. Formaldehyde. Formaldehydeis a colorless, strong smelling gas thatis often in an aquecus solution containing between 35 and 40 percent formaldehyde. It is commonly found in manyproducts such asparticle board,rugs, glues, permanentpress fabrics, paper product coatings, fiberboard, and plywood. 3.0, Methodology. The following depicts the methodology usedin this residence. 3.4. A visual evaluation was made of the residence while using a thermal imaging camera to detect difference in temperature which in turn depict moisture and/or microbial action. See photographs at Appendix A. . 3.2. Temperature, relative humidity and particle measurements were obtained outside, in the living room, kitchen, master bedroom, kids room, and in the back room bedroom, The measurements were taken using the Lighthouse Handheld Laser Particle Counter (Model 3016, SN 040302023) which was last calibrated May 2012 in accordance with the manufactures requirement and traceable to the National Institute of Standards and Technology’s primary standard, See Appendix B. Additionally, ultrafine measurements were made outside and throughoutthe home. 3.3. Non-culturable air samples were collected from the outside and in the back bedroom. The analysis was performed by the Environmental Microbiology Laboratory, Inc. an AIHA Environmental Microbiology Accredited Laboratory (EMLAP) and licensed in Texas. Additionally, supplemental analysiswere performedto depict pollen, otherplant and otheranimal particles, See Appendix C, 3.8. Moisture measurements were made with surface and penetratingTRAMEX moisture meters. 3.6. voc were measured using passive dosimeters that wereleft in place for approximately 24 hours. The passive dosimeters wereselected to'detect twenty-five analytes(1,1,1-trichloroethane, 1-butanol, 4-pheny! cyclohexene, acetone, benzene, butyl acetate, chloroform, cyclohexanone, ethylacetate, ethyl] alcohol, cthyibenzéne, heptanes, hexane, isopropyl alcohol, methyl alcchol, methyl ethyl ketone, methyl isobutyl ketone, methyl methacrylate, methylene chloride, perchloroethylene, styrene, tetrahydrofuran, toluene,trichloroethylene, and xylenes). The analytes are specific for chemivals commonly foundin-building materials and furnishings. One dosimeter wasplaced in the Master Bedroom,one in the Back Bedroomand one in a bag containing a sampleof the Rug and Padding. See Appendix D. 3.7, Formaldehyde measurements were made using passive dosimeters as well and wereleft in place for approximately 24 hours. Onc dosimeter was placed in the Master Bedroom,one in the 4

es ° ABS,Inc, poe . ACOOI2 2017. County.Road 12 Buinet; Texas ~ 2 fos Back Bedroom and onein a bag containing a sample ofthe Rug and Padding. See the first three results of Appendix D. 4,0. Finding and Discussions. The residence ofconcern was a manufactured home. Uponarrivalonthefirst day,all the windows were found to be open. 4.1. Visual. Visible mold was notpresent. 4.2. Thermal Imaging. The thermal imaging was unremarkable with respect to moisture intrusion and mold growth; however, their did appear to be heat intrusion in someruof areas and particularly at the corners of the walls and wall to roof interfaces. 4.3. Temperature and Humidity Levels, The temperature and humidity levels were consistent with the normallevels found in homes. 4.4, Moisture Levels. Normal surface moisture levels were throughout the home. 4.5. Microbial Sampling. Thetotal numberof organisms found within the inside air was not greaterthan the out doors and those species found inside and not outside were extremely limited. See Appendix C forthe actual laboratory results. A statistical analysis indicates that the outside and inside mold spores are similar which adds credence that no mold is growing indoors. 4.6. Particulates. The actual measurementresults are at Appendix B. The particulate levels in the Back Room (Bedroom)was elevated whichled to the sampling for mold; however, this can be attributed to the high level of epithelial (skin) cells and cotton fibers as indicated in the other Biological Particles Report. See Appendix C. Ultrafine measurements were unremarkable. 4.7. Volatile Organic Compounds. The VOCs were well below OSHAstandards and LEED requirements for new buildings. The LEED® greenbuilding certification program through the U.S. Green Building Council (USGBC)is reducing the energy requirements of buildings and homesas well as reducing VOCs, See Appendix for the laboratory results and the table below for the chemicals that had any detectable level. As indicated in paragraph 4.0., above, the open windows would have undoubtedly reduced the VOC levels by a smali margin. Table 1 Passive Dosimetry VOCs Results (ug/m*y . Master Back Counstituent/Location Bedroom Bedroom Rug Acetone 0.029 0.022 : Ethyl] Alcohol - 0.12 0.014 isopropyl Alcohol 6.0085 0.011 . Total 0.0375 0.153 0.014 LEED Limit 500 500 300 5

i 121: 4,7, Formaldehyde. 4.7.1. There are various standardsfor formaldehyde standards/levels and are depicted in the Table 2, below. Table 2 Formaldehyde Standards/Levels Parts PerBillion Standard SettingOrganization Limit/Level Occupational Safety and Health Administration* (OSHA) 750 NationalInstitute of Occupational Safety and Health* (NIOSH) 16 Federal Emergency Management Agency(FEMA) 16 Housing and Urban Development (HUD) 200 - 300 Leadership in Energy and Environmental Design (LEED) 27 Note: *8 hour time weighted average for workers. A rule of thumbforIndoor Ait Quality is 1/10 ofthe worker standard as established by OSHA. 4.7.2, The measuredlevel for formaldehyde is depicted in Table 3, below. Table 3 Measured Formaldehyde Levels Parts PerBillion Master Bedroom Back Bedroom Rug Bag 6.5 13 2.3 4.7.3. There is evidence that some people may have a sensitivity to formaldehyde. It has also been shown to cause cancer in animals and may cause cancer in humans, Health effects include eye, nose, and throatirritation, wheezing and coughing; fatigue; skin rash; severe allergic reactions, 4.7.4, As indicated in paragraph 4.0., above, the open windows would have undoubtedly reduced the formaldehydelevels by a small margin. 5.0, Conclusions. 5.1, There does not appear to be a mold issue within the homeatthis time. 5.2. There are some indicationsthat the heat intrusion is occurring throughlack ofinsulationat specific roof and wall interfaces and wall to wall interfaces.

5.3. Without the open windowshaving occurred just prior to measurements, the levels would have been higher. This is not an issue with the VOCs; however, with the formaldehyde,the measured levels may have exceeded the FEMA recommended levels for emergencyhousing. 5.4, The current occupants may besensitive to formaldehyde and should be tested for such, 5,5. The particulate levels and the level of skin cells indicated more fiequent vacuuming with a HEPAfilter equipped vacuum is required. 5.6. Powered exhaust ventilation, as indicated in the CDC study on the FEMAtailers, may be required to keep levels below the FEMA recommended levels for emergency housing. Their recommendation is 300 cubic feet per minute (cfm); however, difficulty will be encountered during the heating season in maintaining adequate heat in the home. 6.0. Recommendations. 6.1, Vacuum morefrequently with a HEPAfilter equipped vaccum. 6.2. Consider ventilating the home at 300 cfm. 6.3. Provide a copyofthis report to the aceupants’ physicians to determine whethercontinued occupancy is recommended. 7.0. Disclaimer. This :eportis given for the sole benefit ofthe aforementioned client(s). The client expressly confirmstheir understanding that the conclusions/recommendationsstated in this eport are limited to and based solely upon the scopeofthe assignment, and samplesand field measurements taken. In addition, the client understands that any field observations contained herein reflect the conditions present on the date andtime ofinspection. No tepresentations or warranties are made or may beimplied as to the validity oftheir applicability to any other days or times. Theinvestigation was limited to the area as described herein and no other comments may be implied as to the applicability for correction. , QnRute Ronald M, Bishop, MPH, CIH ABIH Certification No. 814 MACOI106 3 November 2012

“Lina ee SHS, Ine. Limited IAQ Investigation Lh . . AEHS, 2017 County Road 112 . ot . ACO0121 Burnet, Texas | ‘a t Limited Indoor Air Quality Investigation 2017 County Road 112 Burnet, Texas 78611 for Kb){6) Preface IndoorAir Quality (IAQ) hasreceivedconsiderable attention in thepast hventy to thirtyyears; however, the majority of the attention was directed at comfort of the occupants. This was particularly tue in the late 1970's when energy efficient buildings were constructed or older building remodeled to save heating and cooling costs, Terms such as “SickBuilding Syndrome”, “Tight Building Syndrome”, “MoldySchool”, and “Sick House” have become vogue, Currently, more attention is beingpaid to the health aspects that have resulted in manyphysical andpsychological symptoms. This coupledwith the realization that hypersensitive persons may have multiple chemicalsensitivities are infact sufferingfrom an illness that has led to both research and applied studies. Additionally, there appears to be more allergic reactions to various wicroorganisms, such asfungi, than in the past. Most IndoorAir Quality issues must be handled on an individual basis andspecialconsideration given to the concerns of the occupants or fiture occupants. Indoor air quality and microbial growth in buildings (hospitals, businesses, schools, and homes) is not new ta the industrial hygiene profession. However, becauseofthe media blitz, high court awards, and anincreasein chemicalsensitivity among individuals, the issue has becomehigh profile andfear abounds, The merepresence ofmolddoes not meanthatit is toxic to building occupants, The scienceis not exact andsampling strategies, assessments, andremediationefforts are not institutionalized, Often, moldand other IAQ issues are emotionaland rationalthinking is sometimes avoided becauseofthefear. In the more recent past, we have seen an increase in complaints within residences (individual houses, apartments, hotels, etc) to include mold growth. This increase canbe attributed to many changesin our living environment. The increase in energy costs as well as environmentally conscienceindividuals have led to the use ofdouble insulatedwindows, caulking ofminute openings, andmore insulation — all in an attempt to use less energy. Conversely, the changes in chimatic conditions have caused soil to move, houses to developfoundation cracks, roofs to leak, lack ofproper drainage awayfrom foundations, andflooding. These latter occurrences may contribute to the infiltration and growth offimgi. Once again, the aforementionedchanges coupledwith the increased individual sensitrvities have seen arise in IAQconcerns in individual residences 1.0. Background. 1.4. On 15 October, 2012, Ronald M,Bishop, ofAEHS,Inc. wascontacted by Ray Medrano of TLI, concerning a manufactured home purchased by Ms.[®°) Lid. Ms. }was contacted and her concern discussed as was the previous investigation by TLL . 1.1.2. It was decided that further investigation was warranted. 1

Limited IAQ Investigation 2017,County Rosd117. * Burnet, Texas ve 1.2. On 18 Octoberthe first phase ofthe investigation wasinitiated by Matthew E. Bishop, CHSP,under the overall direction of Ronald M. Bishop, MPH, CIH. 1.2.1. Matt Bishop is a Texas DepartmentofState Health Services (TDSHS)ficensed Mold Assessment Consultant, Asbestos Inspector/Management Planner, Lead Risk Assessor and Lead Project Designer. Additionally, he is a Certified Healthcare Safety Professional and Certified Environmental and Safety Compliance Officer. 1.2.2. Ron Bishopis a Certified Industrial Hygienist(American BoardofIndustrial Hygiene), aRegistered Environmental Professional, Registered Environmental Manager, a Diplomate in Environmental Health, a Certified Safety Executive, a Certified Environmental and Safety Compliance Officer, and a Green Consultant. Additionally,heis licensed by the TDSHSas an Asbestos Consultant, a Lead Risk Assessor, a Lead Project Designer, and a Mold Assessment Consultant. He has over thirty years ofIndoor Air Quality experience and has conducted over $00 mold/IAQ investigations in the past five years. Also, he has a Master of Public Health degree as well as a MasterofMilitary Arts and Science and aMaster ofPublic Administration. 1.3. On {9 October the second phaseofthe investigation was performed by Ronald M. Bishop and included collection of the dosimeters, ultrafine measurements, and mold sampling. 2.0, General, -2.4, In general, indooraix quality problems can occur in all types and ages ofbuildings;in newly constructed buildings; in renovated or remodeled buildings; and in old buildings. The buildings may be private residences, multi-storied office buildings, healthcare facilities, schools or industrial complexes. Problems in new, clean buildings are rarely related to microbial growth, since the physical structures are new; however, this may not holdtrue if the building materials wereallowed to be exposed to weather and then not adequately dried prior to instaliation or the drainage around a new constructionis not sufficient. Older buildings that have not beenproperly maintained and operated may have problems with bioaerosolsifparts ofthe building have been allowed to become reservoirs for microbial growth. Also,if inadequate outsideair is present, regardlessofthe age ofthe building, chemicalandbiological contaminants will build upto levels that can cause health effects in some accupants. Often, designs do not consider prevailing winds, sun directions, or slope ofthe land for proper draining. This lack ofconsideration mayleadto air contamination or water intrusion. 2.2, Fungi. Mold is a tern that applies to the visible form of fungi growth while mildew is a tayperson’s term that refers to fungi growing onfabrics, windowsills, bathroomtile, and thelike. Yeasts are actually fungi that are culturally unicellular. Fungi reproduce both sexually and asexually, simplistically, spores are produced during the reproduction. The spores become airbome and can be trapped. All molds are fungi. They are common throughout the United States and occur in abundancein the outdoors. 2.2.1. Mold spores can be dormant for years and once moisture is encountered,the spores can start renewed growth. AEHS,Inc. ACOQ121

AEHS,Inc. Limited IAQ Investigation : . "ACOOI21 2017 County Road 112, Burfet, Texas 2.2.2, Once porous material, suchasinterior or exterior sheetrock,particle board, wood,etc., becomeswet, it is very difficult to dry completely. 2.3. Mold Sampling. Thegoalof biological (microbial) samplingis to assist in the overall assessmentof the IAQ ina particular environment. It may provide information concerning the potential for causingirritation;to locate the sources ofindoor microbes;to assist in determining the overalleffectiveness ofthe Heating, Ventilating, and Air Conditioning CAVAC) system; and to assist in determining appropriate remedial actions. 2.3.1, Culturable samples are those from which microorganism are “grown”. The types of culturable samples include: air, swabs, surface direct plating, andsettling. All have pro’s and con’s, The greatest drawback with culturable samplesis that microorganisms growatdifferent rates and aré competing for the growth media; therefore, an aggressive organism may overshadow onethat grows slower. Another concer associated with culturable samplesis the interpretation ofthe results. There is a tendency to makedirect comparisonsandtry to assess the environment based on the numbers of organisms. Because there are not standardized protocols, no cut off levels, and a variation in the sensitivity of individuals, number comparisons should be used with extreme caution. 2.3.2, Non-culturable methods of sampling include spore trapping andsticky tape surface lifting. These samples are viewed directly under a microscope and characterized based on morphology. The greatest drawbacks ofusing this method of sampling are that some fungi spores ate very small and cannotbe seen while others have similar morphologies that do not allow for discernible identification. Once again, comparison ofnumbers should be used with extreme caution. 2.4 Particulates. : 2.4.1, Particles. Particles greater than 1 micron are often the causeofirritation and can exacerbate other problems particularly when associated with low humidities. 2.4.2, Ultrafines, Ultvafines ate defined as particles less than 0.1 micron in diameter. The sources of ultrafine particles include building and vehicular exhausts associated with combustion, environmental tobacco smoke, and manufacturing operations, Also, but often overlooked, sources include: cleaning solvents, heater gasket leaks, entrainment of duct linings, and maffunctioningoffice equipment. The technologyofusing ultrafines is emerging and consists ofdetection via a condensation particle counter. 2.4.3. Particle Discrimination/Discernment. Condensation particle counters are also available that differentiate in particle size -- 0.3 micron, 0,5 micron, 1.0 micron, 2.5 microns, 5 microns, and10.0 microns. Of importance in mold evaluation are the sizes at } through 10 microns because this is the majority ofthe size ofmold spores. Therefore, a high numberof particles in the 2 and 5 micron sizes will normally indicate mold growth. This is especially true when comparing the inside results with the outside measurements.

ar Limited AQ Investigation; 30174Counly Road:312 Burnet, Texas _* ‘ 5.3, Without the open windows having occurred just prior to measurements,the levels v. have been higher. This is not an issue with the VOCs; however, with the formaldehyde, the measured levels may have exceeded the FEMA recommendedlevels for emergency housing. 5.4. The current occupants may be sensitive to formaldehyde and should be tested for such. 5.5, Theparticulate levels and the level of skin cells indicated more frequent vacuuming with a HEPAfilter equipped vacuum is required, 5.6. Powered exhaust ventilation, as indicated in the CDC study on the FEMA trailers, may be required to keep levels below the FEMA recommended levels for emergency housing. Their recommendation is 300 cubic feet per minute (cfm); however, difficulty wili be encountered during the heating season in maintaining adequate heat in the home. 6.0. Recommendations. 6.1, Vacuum more frequently with a HEPAfilter equipped vaccum. 6.2, Consider ventilating the homeat 300 cfm. 6.3. Provide a copy ofthis report to the occupants’ physicians to determine whether continued occupancy is recommended. 7.0. Disclaimer. This report is given for the sole benefit ofthe aforementionedclient (s). The client expressly confirmstheir understandingthat the conclusions/recommendationsstated in this report are limited to and based solely upon the scope ofthe assignment, and samples andfield measurements taken, In addition, the client understandsthat any field observations contained herein reflect the conditions presenton the date andtime ofinspection. No representations or warranties are madeor may beimplied asto the validity oftheir applicability to any other days or times, The investigation was Simited to the area as described herein and no other comments may be implied as to the applicability for correction. Ronald M. Bishop, MPH, CIH ABIH Certification No. 814 MACO106 3 November 2012 SD

Factor oO “Factory Directie mol 2075 State Highway 46, North Seguin, TX 78155 ' PH;830-379-8700 FX: 830-379-8708 February 6, 2012 RECEI PT DAT! ~ RECEIVED From [OO Hina22 NO, oye) Avpness[OO NEY For CE A AMT. OF HOW Pain ACCOUNT cA ou On PAID Chery BALANCE Due ‘MONEY ORDER Bonnie Thompson Project Supervisor Factory Expo Home Center 40181 ST RECEIPT om 247/10 RECEIVED FROM Ss Ve) ae ADDRESTT “J 35600 a Susetwottethms FoR COUNT, PAID. ‘AMY. OF ACCOUNT cast AMT cntca $600 [2% BALANCE: ‘QUE ORDER.

z LS. DEPARTMENT OF HOLSING 4ND LRBAN DEVELOPMENT ‘it ": WASHINGION DC 2410 1000 ASSISTANT SECRETARY FOR CONGRE §SION AL AND INTERGOVERAMENTAL RELATIONS, The Honorable Ted Cruz UL 10 ante United States Senator 300 East 8"Street. Sutte 961 Austin, TX 78701-3226 Dear Senator Crus: Thank youfor yourletter of June 27, 2014, on behalt of your consutuent. soneerning her family’s health problems since moving into her trailer home in Burnet, Texas. The Department ws cunently conducting a review of this matter. Upon completion ot the review, a final response wall be provided Thank you for your interest in the Department's programs. Sincerely, cong Dominique M McCoy General Deputy Assistant Secretary for Congressional and Intergovernmental Relations www hud.gov espanolhud.gov

LS. DEPARTMENT OF HOL SING AND URBAN DEVELOPMENT WASHINGTON De 210: Lonn ASSISTANT SECRT TARY FOR CONGRESSION VL SNDINTEROOSERNMINT AL REL STLONS JUL 2.4 2014 The Honorable fed Cruz United States Senator 3008" Street. Suite 961 Austin. [X 78701-3226 Dear Senator Cruz: Thank sou for your letter on behalf of your consutuent. Mrs conceming the alleged possible health problems she and her family are experiencing that she clamsto have been caused by formaldehyde emissions and mold in her manufactured home [hefollowing information ts from the Department of Housing and Urban Development's (FIUD) Office of) Housing. The Manufactured Flousmg Disiston im the Department of Housing and Community Aftairs serves as a State Administrative Agency (SAA), which administers the Federal Manufactured Housing Program in the State of Texas Mr Joe Garcia, the Paecutive Director ofthe Manufactured Housing Division, contacted Mr, Craig Caulkims, the General Manager ofthe CAVCOHomes of [Texas regarding the issues with Mrs: home CAVCO’s compliancerepresentatives flew to [exas to inspect the home with a specitic focus on mold and lormaldehyde levels Although Mrs claimsthat het home was making her family sich. the C.AVCOrepresentatives found no non-comphancesto support Mrs complaint. Additionally. Mr Caulkins intormed Mr. Garcta that the CAVCOrepresentatis es did not experience anyhealth issues during the course oftheir investigation. HU D*s Office of Manufactured Housing Programs has contacted the Texas SAAto discuss the issues raised by Mrs. After reviewing Mrs letter and speaking with the Tesas SAAstatt, the Department's Manufactured Tousing Office has determined that no further assistance can be offered under the Manufactured Home Procedural and f nforcement Regulations, 24 CER Part 3282 T hope the information providedis helptul in responding to your constituent [tf | can be of further assistance. please let me know Sincerely. Dominique Mio MeCox General Deputy Assistant Secretary for wwwhud.gor espanolhud.gov

‘p7ve1/2014 13:45 gagaeadesa RH LENDING INC PaGe 21/83 US. Ckwele United States Senator + Texas The Information and Privacy Act Form The Privacy Act requires yourwritten consent betore a government agencywill release information lo ouroffice reganting yourrecords. ‘I'o better serve you, please complete this Jorm andrewmit as indicated helow, Please be aware that the person requesting assistance mustsign this form, Thereby authorize the office ofSENATOR TED CRUZ to request on my behulf, pertinent to the Freedomof Information and Privacy Act of 1974, access to inlormation egqneerping me, and to forge copies ofpy co Yeopennonence involving (NameofAgency) AYCfJ? Wifeke. . Inaddilion,thg office ofSENATOR aaaiis also.authorizedto see any materials thal may be disclosed pertinentlo that request. name: AoWal'e. ©. {Hitadhey Bre EMAIL ADDRESS: KoddleCR Lehoe Le eo) HOMEPHONE #: WORKPHONE? (E/2_)7 S6- foe _ cetenonea, [° MAILINGADDRESS: Z lifters 12, Loot HOME OFRECORD Gervice members only); eye) DATE OF BOUTH: (nmydd/yyyy) SOC SEC #: VA CLAIM # (ifapplicable): a PASSPORT# Gfapplicable): Np. ALJEN REGISTRATION# (if applicable): ~~ —_ OTHER ID #: Qlapplicable, please indicate tax year(s} and form ff tid f O698/S9)

‘o7ve1/2014 13:45 peaaaeanes RH LENDING INC PAGE 02/89 *Have you requested assistance from any other Cor you receive final response? ional office? If yes, which ong and did Gal ax Ae ~~ DIY (Sighature) (Date) SE, PAGE’1O EXPLAIN YOUR FP E YD SENATO! “Nate: Because of security measures, mail is now irradiated, which can damage sensitive items such as cassette tapes, victeos, CD’s and DVD's, Fax, e-mail and web (orm are the quickest ways to forward yourinformation.” INSTRUCTIONS: Please trite # brief letter outlining the nature ofyour problem andbe as specific as possible. In particular, inchide the names ofany publi¢ ollicials you have communicated with in. the past and the dates thass communications occurred, Also, please aliach any relevant correspondence (hat you have initialed or reecived concerning your problem, You may submit your completed form and any other pertinent atachments by: U.S. Senator Ted Cruz 961 JJ. Pickle Federal Building 300 E.8* Street Austin, Texas 78701 Fax: 512-916-5839 ework: SCN

27/81/2814 13:45 gonsn9e8ae RH LENDING INC PAGE 63/89 July 1, 2014 Senator Ted Gruz Re: Urgent Issues with HUD PLEASE HELPHIIE URGENTHIH Dear Senator Cruz; My frlend and business associate, Gary Lacefleld, has suggested | contact youroffice to sesk assistance with Issues my company has been having with the HUDoffice in Washington, DC. Accompanying this letter is my signed General Privacy Release Form obtained from your website. The following is my attemptto articulate the issues presented and the mannerin which U hope you may be able to help. I have beeninvolvedin the residentlal mortgege business for more than 20 years. In November, 2008, | became the CEO and Director of Operations for Alacrity Lending Company(“Alaorlly"), a Texas corporation owned by my bast friend, Steve Holmes. Steve and! started Alacrity from scratch, Alacrity recelvedits ilcanse from HUDin early 2007to participate in the FHA loan program. When Alacrity recelvedits llcanse fram HUD, we were informed by the HUD underwater responsible for processing our application that our application had been completed more smoothly and quickly than any other applicant considered by this underwriter. Weknew when weestablished Alacrity we wanted to focus on FHA loans so we could assist first-ima homebuyers In achtaving their dream of owning a home, Alacrity enjoyed almost Immediate success; within a year, Alacrity went from approximately 4 employees to more than 50, Wedid our bast to originate loans in accordance wilh HUD’s guidelines. We never received any indications from HUDthat the loans we were originating were problematic. [In January, 2009, HUD commenced a routine audit of Alacrity We welcamed the opportunity to meet with HUD's representailves to fearn ways in which we could potentially Improve our business practices, Whenthefield auditor for HUD conducted nis exit Interview with me,the field examiner stated there were some minor errors he had seen but that we had nosignificant concerns thal would “cause anyone to be shot” (the auditor's words). When we obtained the audit report from HUD, enumerating the varlous issues HUD had with our files, we diligently responded to every comment with an explanation as well as an offer to change whatever procedures HUD thaught was necessary to allow us to properly close loans, Unfortunately for us, we made the decision to start a residential mortgage company at perhaps the worst possible limeIn the history of the morgage Industry Everyoneis familiar with the almosttotal collapse of the mortgage Industry commencing in 2008 and continuing for years. Although we neverorlginated any “subprime”loans that were subsequently packaged and sold to Fannie Mae or Freddie Mac, the borrowers on the loans weoriginated begin to default on their loansin significant numbers, Because of these defaults and the publle’s outery concerning HUD’sapparentlack of supervision during the perlod ieading up to the mortgage Implosion, HUD took a much more aggressive stance toward lenders and espacially small jenders with limited resources, HUD blindsided us with a notice from the Office of Inspector Generalthat Alacrity, along with 14 other companies, was being Investigated for improper lending practices. We have been told we were the only oneof the 15 companies who contested HUD's allegations, We fought the allegations made by HUD but since the numberof our borrawers who

‘e7/er}2eid 13:45 agenaen088 RH LENDING INC PAGE 84/03 had defaulted on thelr loans had gottenprohibitively large, we recognized HUD’sability to terminate Alacrity's license without any additlonal legal reasons, reached a settlement with HUD and agreed to the suspension of Alacrity’s license for three years. In early 2009,} began negotiations to acquire another FHAlicensed lender, R. H. Lending,Inc, (RHL") so that| could continuein the mortgage Industry. | completed the acquisition of RHt in September, 2009 and becamethe sole owner, officer and director of RHL. After Alacrity’s licanse was suspended, mostof Alacrity'’s employees came to work for RHL and RHL commencedto originate and close FHAloans. in 2014, HUD commenced a routine examination of RHL’s operations, When HUD's fietd auditor left RHL's office, | was told RHL would have the opportunity to address any issues discovered by the audit. | did not hear from HUD until 43 months later when| received letter from Nancy Murray, the Secretary to the Mortgagee Review Board, alleging various operatlonal deficiencies RHL responded to HUD'sallegations in detail and submitted hundreds of pages of supporting documentation refuting HUD’s claims. | met with HUD's attorneys In Washington, DC,In late 2042 and ultimately reached an agreement with HUD in June, 2013, whereby RHL agreed to pay e $295,500 fine and agreed to a six-month period of probation during which RHL agreed to hire an Independentthird-party consultant to review RHL's operationsfor the period from July through September, 2013 and from October through December, 2013. RHL. hired Risk Mitigation Group, a company owned by Gary Lacefleld, formerly a Senior Civil Rights Analyst, Investigator, and Conciliator at HUD,to conduct the audit for the period from July to September, 2013. The reports prepared by Risk Mitigation revealed no lasues with RHI.'s operations. When the report was received by HUD, the report was summarily dismissed as inadequate and HUD requested that we provide HUD with the samefiles examined by Risk Mitigation so HUD could conducttheir own audit. We have since been informed by HUD that they found 186 errors with the samefiles In which Risk Mitigation found no errors although HUD. has not specifically totd us what theseerrors are. In September, 2013, RHL received another letter from Nancy Murray, the secratary to the Morigagee Review Board, announcing yet anotherinvestigation, this time concerning an entity called Sky Contractors, Ine. (“SCI”), Steve Holmes owns 100% of SCI and has since the tlme | acquired RHL. SCI performs consulting services to builders of homes financed by loans given by RHL. SCI's sole purpose js to ensure the loans Involving construction and originated by RHLsatisfy all of HUD requirements concerning construction lending. SCIIs pald a fee from each buikder. HUD has alleged that RHL Is improperly directly paying fees to SCI and that RHL and| are affillated with SCI, To the best of my knowledge, HUD's allegations are based upon documents trom 2007 that appearto list me as an officer and shareholderin SCI. By affidavit submitted to HUD, t denied ever owning aninterest in SCI and offered to take such steps as are necessary to correct any documents of the contrary. Wefinally heard from HUD during the past two weeke concerning the potential resolution of the matters pending before the Mortgagee Review Board. HUD'sinitial proposal was to imposeclyi money penaities against RHL in the amount of approximately $1.5 mitlion and terminate RHL’s license to participate in the FHA program. We made a counter proposalto HUDthatincluded agreeing to pay a $400,000fine, a suspension of RHL's license and a period during which | would not serve as an officar, director, shareholder or control person of an FHA lender. Just last week we learned from HUD that HUD proposes to suspend RHL’s license for at leastfive years, debar mefrom any participation with FHA lenders for a minimum of five years and imposeat least a $300,000fine.

‘a7/01/2014 13:45 eeaaagaasD RH LENDING ING PAGE 95/89 HUD’slatest proposalwill amount to a death sentence for RHL and my professional careerin the mortgage Industry. | am 52 years old with a 10-year-old daughter and twin four- year-old boys. To expect a person to change industries at age 52 Is ludicrous,In additlon, the effect of HUD’s proposal on the employees at RHI will be devastating. RHL currently has 69 , employees in Texas, most of whom are within the Dailas-Fort Worth Metroplex. Many of RHL's employeesare the prime wage earnersfor their families. Missing even one paycheckwill create tremendous hardship for these employees. From a purely economic perspective, RHL and its employees pays hundreds of thousands of dollars each yearIn federal income tax. Shutting down RHLwill obviously not make a dent in the US government's massive budget but | am confident many tax dollars will be fost. There are several things concerning RHL you should note.In particular, RHL currently llcensed in 10 slates. During the past two years, RHL has undergoneroutine audits by each of these 10 states, All of these states conducted the same types of audits that HUD did yet not oneof these states has taken issue with any single operating mathod of RHL. To the contrary, at least three of the 10 states congratulated us on our cleanfiles. We are not aware of any issues with any single regulator (including the CFP8) other than the Washington DCoffice of HUD.In addition, to the best of our knowledge, there are ne unresclved complaints fied with any ragulatory agency concerning RHL. Based upon HUD'sfallure to negotiate In good faith and their stated goal {hat “Lonnie Just needsto be out of the program”,| think HUDis unfairly judging RHLin an arbitrary and capricious manner, Unlike virtually every other aspact of Amerleanlife, | am unable to determine any accountability for the staff of the Mortgages Review Board. Membersofthis staff specifically stated to RHL'’s counselthat if RHL thought it was so "Innocent", RHL should Just fight HUD, RHULis a small company with ne chance to compete with HUD's unilmlted resources. firmly belleve RHLIs the victim of the opposite of the toa big to fail syndrome: RHL is too smallto protectitself against HUD and survive and the membersof the Mortgagee Review Board's staff know it and don't care. | don’t know what response you will get from HUD if you ask them about RHL. Trying to be as honest as ! can,| think HUD will tell you RHL and SCI have defrauded borrowers by charging borrowers excessive fees. RHL's clearest responseIs that we have not defrauded anyone and that many,if not most, of the borrowers HUO thinks have been taken advantage of would be unable to obtain a loan from any other mortgage company becauseaf the borrower's credit score and the humble nature of the borrower's home (most of these propartles Involved manufactured housing). Certainly RHL and SCI have made a profit. However, the loans RHL have made our more difficult and expensive than mostlenders are willing to make, especially to first-time homebuyers with limited to less than perfect credit. RHL has been directly responsible for enabling thousandsof borrowersto buy a homein our country. Surely, HUD's arbitrary decision based upon a handfutof lawyers’ opinions in DC should not be suffictent to put a companylike RHL outof business. Wewould appreciate any help you can give. Obviously, we stand ready to meet with you or any other person you deem necessary to better Inform you aboutour situation and to help ourselves, Regardless of the outcome, we are comforted by the fact we have an advocate like you working for us in Washington. Respectfully submitted,

87/01/2614 13:45 eapageaaes RH LENDING INC PAGE 46/99 R. H. Lending, Inc.

87/01/2814 13:48 aaaaogsaaa RH LENDING ING PAGE 97/09 All- Two quick points. 1. HUD Call. I just got off the phone with Co We have lots of people involved, so here is 2 general recap just to Keep everyone in the loop. The conversation was cordial. She agreed that the settlement wrapped up both MRB matters in her mind. She thought that Oane Narode either: (1) forgot to include reference to the probationary matter because the board was pushing him so hard to get the draft agreement ovt that very day (which she said never happens in her experience}, or (1i} intentionally left out the reference to the probation matter because Nancy hes continually told them during the whole process that the matters are separate (even though her staff and counsel keep talking about them as if they were one). In her mind, she said, the probation matter is dead anyway once RH's approval is withdrawn, She said she does not know who erred, RH or RMG, in the probation review, She said it is possible she could go after RMG if she wanted to, but she did not view that approach as likely. She said she just wants the check and wants to wrap this up, and that the MRB was adamant that everyone be prepared to do an ad hoe meeting to act on RH before people left for the holidays if the settlement is not executed and the check on the way today. I told that ye) is trying to make sure borrowers do not get hurt in the process. ie replies at RH could transfer loans elsewhere so she was unmoved. She also said RH could still do TPO (i.e. breker) business anyway 1f it found 4 sponsor, I told her, even if that were true and I was not sure that it was, it was not a simple solution because loans would have to be entirely redone as TPO loans assuming there was even a sponsor, and that pricing, disclosures, everything would be wrong. (without disclosing the fact, I also knew Lonnie has rejected this idea already, and did so again this morning when he and T spoke, He said he continued to keep the idea in his back pocket if he thought it mada Sense later.) I emphasized several times there could be lots of people left hanging, but she remained unsympathetic. I also told her Lonnie was trying to avoid having lots of employees put out on the streets. She was again unmoved. She said she had heard Lonnie was going to become a "net-branch" of AmCap. I asked her who that was, and where she heard it. She did not know the company, and would only say she heard it through the grapevine. She said Lonnie was "already taking care of his people" and therafore people still had concerns he would continue to find a backdoor to do this “all over again.” I read that as further indication of @ vigorous pursuit in the debarment matter. She said she needs the agreement and check sent out today. I did not play the “poverty” card, at least not yet, because I know we are still trying to buy a little time in negotiations. We can discuss this issue if desired. 2. Pipeline Definition.

“arren/2aid 13:45 enoagaeaes RH LENDING INC PAGE 98/89 In my call with and an email from both this morning, thera was discussion of the nition of pipeline 1 d “approved” loans. I told Lonnie we would send over some draft language for him to consider whether to try to get clarification on what loans RM could close and which would havea to be transferred, brokered or otherwise treated, We drafted the following language to consider: “It is our understanding that a “pipeline loan” is a loan that has been approved for HUO/FHA insurance by 8 Direct Endorsement underwriter, as indicated on a form HUD-92988-A far each such loan.” There is an argument for (a) omitting any attempt at clarification, as Steve recommends, or (6) for trying to obtain such clarification either by a note ina transmittal email, the actual agreement or otherwise, As we see it, this is a business risk call. If we raise the issue, HUD may very likely try to interpret the language as narrowly as possible to say only unconditional final approvals qualify, which means mora loans could not close with RH as the mortgagee. On the other hand, if we do not raise the issue, HUD could later try to second guess RH's interpretation and argue that the loans are not insurable. This is a lot for an email, there are a lot of muances, and it may be helpful to have input from Lonnie's underwriter if that is possible. Sut I wanted to get this summary at least to everyone quickly in light of the timing. We are happy to discuss by phone if desired, and I know Steve and Lonnie are planning to call us us, We called Lonnie a little earlier, put he was tied up. If you propose a time, I will clear my schedule. We do need to get a document to Nancy pretty soon whatever approach RH takes. Talk to you soon. Troy W. Garris Weiner Bradsky Kider PC Dallas Metropolitan Area Office 2964 Corporate Cir. Flower Mound, Texas 75@28 direct; 4 3 cell; garris@t www. thewbkfinm, con This electronic message contains information from the law firm of Weiner Brodsky Kider PC, which may be confidential or privileged. The information is intendad to be for the use of the individual or entity named above, If you are not the

: a @7/81/2814 13:45 enangsueIe RH LENDING ING PAGE 99/69 intended recipient, be aware that any disclosura, copying, distribution or use of the contents of this information is prohibited. If you have received this transmission in error, please notify us by telephone (469-635-7539) or by electronic mail ¢ ) immediately. For more information about GARRIS@THEWBKETAY, Weiner Brodsky Kider PC, please visit us at maw.thewbkfirm, com. TAX ADVICE DISCLAIMER: Any federa] tax advice contained in this communication (Ancluding attachments) was not intended or written to be used, and it cannot be used, by you for the purpose of (1) avoiding any penalty that may be imposed by the Internal Revenue Service or (2) promoting, marketing or recommending to another party any transaction or matter addressed herein.

7 a TED CRUZ COMHILILES, TEXAS AGING ARMED SERVICES COMMERCE Wnited States Senate Jubiciny RULCS AND ADMINISTRATION July 2, 2014 RESPECTFULLY REFERRED: U.S Department ofHousing and Urban Development 45} Seventh Strect SW Room 10148 Washington, DC 20410-1000 Dear Sir/Madam: The attached communication was forwarded to my Seuate office by Mr Lonnie Brantley, Jr. concerned about a matter thatfalls within your agency's jurisdiction We would appreciateit if appropriate inquiries could beinitiated on their behalf, and if'a full response could be prepared for meto report to the constituent. It would be very helpful if the attached weie to accompany your response. In the event you require more information, please do not hesitate to contact my office at 512.916.5834 or by fax at 512.916.5839. Thank youfor yourattentionto this request. PLEASE REPLY TO: Office of Senator Ted Cruz Attention. Susanna Sovran 300 E 8th St Ste 961 Austin, Texas 78701-3226 512.916.5834 512.916.5839 Enclosute(s) ume 961 Sum aww Suite 1420 Suite 1603 sun 950 Suits $01 SUL SD. 186 3008 BinStarer «3826. NOTH Hau Sise, BUBTeavis Sines 200 SourTony Sawer, 9901 Ht 10 Wess 295 Sonm Broaw ear, vinksen BUILT ‘Ausiss TX 78701 Oatas 3X 75719 Houston 177002 McAUuin 1X 70501 Sau Avsto_ 0 TX 78290 Tur TX 29702 WaxwiiGTorr, DC 20810 [b12) 316 5834 (214) 029 8749 (243) 718 3057 (990) 686-7239 (710) 340-7886 t903 593 4130 (702) 274 $977

* at U.S, DEPARTMENTOF HOL SING AND URBAN DEY ELOPMEN I 5 whit . WASHINGTON DC 20510 1000 ASSISEANT SECRETARY FOR CONGRESSIONAL AND INTPROOSLERSMEN TAB RELATIONS The Honorable Led Cruz United States Senator UE UD 9myy 300 E 8"Street, Suite 961 Austin, TX 78701-3226 Dear Senator Crus Thank youfor yourletter of July 1, 2014. on behalfof your constituent. Mr Lonnie Brantley. Jr. of RH T ending. Inc. (RH | ending). Mr. Brantley’s letter states his concems regarding the operations of the Mortgagee Review Board (Board) m relation to an enforcement matter. The following information 1s from the Department of Housing and Urban Development’s (HUD) Otfice ot Housing. The dunes and funcuons ofthe Board are set forth in 12 US C $1708 (c). [he Board ts comprised of the following HUDrepresentatives: the Assistant Secretary for Housing (chairs the meeting), the Genetal Counsel. the President of Ginnie Mav.the Assistant Secretary for Administration (presently the Chiet HumanCapital Officer), the Chief Financial Otficer: and the Assistant Secretary for Pair Housing and qual Opportumty In addition, HUD’s Inspector General and the Departments Director ofthe Office ot I ender Activities and Program Compliance advise the Board {he Board Secretary provides program support. including the investigation ofreferrals made to the Board, and preparation ofcases presented to the Board for determination ofappropriate enforcement actions [he Board 1s charged with the responsibility of determining what administrative action. if any. is appropriate relative to Federal Housing Administration (FHA )- approvedlenders that are referred to the Board for serious or willful violations of FHA rutes and regulations. RII] ending hay beenreferred to the Boardfor violations on multiple occasions. In January 2013, RH | ending settled an administrative action brought by the Board for multiple undervriting violations of manufactured home loans. RE] ending agreed to pay a civil money penalty m the amountof $295,500andbe placed on probation for 6 months {n the course ofinvestigating and resoly ing this prior matter. HUD discovered other more serious Violations onthe part of RI Lending. This led to a new (second) action by the Board It is this second action to which Mr Brantley reters to in his letter to you. The Board approved a negotiated settlement agreement with RH Lending with regard to this matter, which was executed on July 8.20140 Mr Brantley. as the signatory tor this agreement on behalf of RH Lending, has chosento resolve the matter before the Board in accordance with the dictates ofthis agreement www hud.gor espanol.hud.gov

J hope this information 1s helptul in responding to your constituent. HT can be offurther assistance, please let me know &- Sincet De wee Dominique Mo MicCoy General Deputy Assistant Secretary for Congressional and Intergovernmental Relatio

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|.) Falr-Housing-Abuses-in-Galveston pdf(2.7 MB) Dtex (1 ke) 1 page summary + supporting docs. David Stanowski <mailto:dstanowski@ait net> dstanowski@ait net Office 409-621-2099 Fax 877-727-0823 <hltp-fiwww.TheFinanciatHalpCenter.com> htlp ‘Awww.TheFinanciatHelpCenter.com <hltp:wwwGalveslonEconomicReport com> http /Awww.GalveslonEconomicReport.com <hitp:Awww TheRealGalveston com> hiipvww.TheReaiGalveston com

Fair Housing Act Abuses in Galveston Based on implementing regulations like CFR 944 202, and the d . ‘istons producedby string of tt 1966, Public Housing must now bebuilt jn census tracts nel bor i asic crite ds order to end racial, ethnic and ecanomic segregation: (nelanborhoods) that meet three basic critertay in 1. Low levels of poverty (less than 10% of the Population living below the overt 5 2. Low concentrations of minorities (less than 45%), 8 Poverty level) 3. Environmental Conditions comparable to those in a typical White middle class neighborhood, However,in July 2012, HUD demandedthat the City of Galveston rebuild Publi with thefollowing demographics: ‘ublic Housing in twa locations Project City Census % % Cost per Tract_; Minorities Poverty Unit Magnolia Galveston 7243 50.1% 21.7% $250,0002 Homes Cedar Galveston 7246 90.2% 66.1% $275,840 ‘Terrace Netther location {s even clase ta beng acceptable! Dr. Kirk McClure analyzed these sites and told the City that building on them wili definitely NOT Afflrmatively Further Fair Housing (AFFH). These sites also have many environmental problems: Extreme wind and flood risk from hurricanes, heavy metal contamination, and they are located in blighted commercial/industrial areas on or near truck and freight rail rautes; hardly locations where most White middle-class people would wantto tive. However, despite the evidence to the contrary, HUD claimedthat these sites do AFFH, and HUD and the GLO threatened to withhold the City's disaster recovery fundingff it did not build In these locations, so the City Councit quickly capitulated. In complete opposition to what they demanded fn Galveston... in July of 2013, HUD and the GLO rejected a pian to rebuild a Public Housing project in Beaument, because the censustract it is in has a very high concentration of minorities and poverty. These government agencies said that building in this location would fail to Affirmatively Further Fair Housing which would violate the Fair Housing Act (FHA). HUD and the GLO are enforcing the FHA properly in Beaumont, and in Orange and Port Arthur, but they clearly have a completely different agenda in Galveston, as shown by the comparison of the Cedar Terrace and Concord Hamescensus tracts below. They rejected Cancord Homes, but demanded that Cedar Terrace be rebuilt! Project City Census % % Cost per Tract Minorities Poverty Unit Cedar Gaiveston 7246 90.2% 66.1% $275,840 Terrace Concord Beaumont 9 95.4% 56.9% $125,000 Homes J It fs HUD's and the GLO's responsibility to enforce the FHAstrictly and uniformly In BOTH locations. The demand to maintain racial, ethnic and economic segregation in Galveston has been very harmfut to the City,

ortitay 7, G00 US. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT A : WASHINGTON,DC 20410-5000 erste OFFICE OF PUALIC AND. (DIANHOUSING Octoter 29, 2013 Mr, Tim Irvine Executive Director Texas Department ofCommunity Affairs P.O, Box 13941 Austin, TX 78711-3941 Dear Mr.Irvine: In July 2013, the Galveston Housing Authority (GHA)andits development partner, McCormack Baron Salazar, Inc. (MBS)applied for tax credits to support the rebuilding of public housing at the Cedar Terrace Apartments, which was devastated by Hurricane Ike in 2008. We understand that your agency is currently reviewing an application for 4% noncompetitive Low Income Housing Tax Credits, which will also allow for the issuance ofprivate activity bonds by the Galveston Public Facility Corporation. The sale of both tax credits and bonds will support the reconstruction of Cedar Terrace, which will contain 122total units. Ofthese units, a total of 50 units will be public housing, 13 will be project based Section 8 units, and 59 will be market rate units. Other sources offundingto be invested in this project include Community Development Block Grant disaster funds, which are now being administered by the Texas General Land Office (GLO), insurance proceeds paid to GHA, Replacement Housing Factor (RHF)funds granted to the GHA by HUD,and private mortgage, GHA has presented HUD with its overall pian for the rebuilding ofmixed-income public housing on both the Cedar Terrace and Magnolia Homessites, and these projects will be the first twostepsin rebuilding the public housing destroyed by Hurricane Ike, GHA and MBSare seeking all approvals to close and begin construction on the Cedar Terracesite by December 31, 2013. It is GHA’s plan fo commence the construction ofthe 160 mixed-income units at the Magnolia Homessite in mid-2014, HUD concurs that the mixed-income redevelopmentof both the Cedar Terrace and Magnolia Homes sites will affirmatively further fair housing andthatit also complies with the Conciliation Agreement between GLO and housing advocates, dated May 25, 2010, Additianally, the mixed-income redevelopment ofboth sites will reduce the concentration of public housing units in operation on these twosites and will also lower the concentration ofpoverty in these neighborhoods. The redevelopmentof Cedar Terrace is not feasible without the 4% Low Income Housing Tax Credits and accompanyingprivate activity bonds, There are not sufficient CDBG disaster recovery fundsor public housing funds available to GHA to reconstructthis mixed-income development without TDHCA’s approval ofthese funding sources. In addition, GLO has made it clear that units developed with CDBGdisaster funds need to be completed as quickly as possible. Therefore, there is no time to seek other funding to replace this important source of funds. HUD’s Office of Public Housing Investments (OPHI) has reviewed and approved a HUD Rental Term Sheet and other submissions for the Cedar Terrace project. OPHIexpects to review wowihud.goy espanclhud.gey

f i i 12 1 1 this project’s legal documents over the next two months andto provideits final approvalto GHA to close onthis transaction and begin construction prior to December 31, 2013. HUDfooksforward to the developmentand operation ofquality mixed-income public \ housing on Galveston Island. HUD will be happy to providea similar letter to TDHCA,if requested, as we understand an application for tax credits for the Magnolia Homes mixed-income public housing project was submitted October 9, 2013. 1 Please contact Sara Pratt, Deputy Assistant Secretary for Enforcement, Office of Fair i Housing and Equal Opportunity at 202-402-6322 or Susan Wilson, Director, Office of Public Housing Investments at 202-402-4500 ifyou have any questions concerning this letter, Sincerely, 1 _ Lh ahr . Bi Greene fark ston Sandra Hehriquez Actinig Assistant Secretary Acting Xssistant Secretary — Assistant Secretary | Office ofFair Housing and Office of Community Planning Office ofPublic and Equal Opportunity and Development Indian Housing |

XAS GUINUORAILLAND OW RLCE — a Jeray Parrenson, Commissionnr Jty15, 2013 Mr, Shaun Davis Exceutive Direct: South Last Toxas Regional Planning Commission 2210 Enstex Freeway Beaumont, TX 77703 Re: Rownd 2 Multifamily Applicationfor the Beaumont Housing Authorlly (BHA) DearShaun: ‘The Land Office reviewedthe additional information submitted for the Beanmont Housing Authasity’s multifamily application. The reviewwasintendedlo determine if Saint Helena Square (Concod Homes) is in compliance with fiir housing laws, the Round2 housing programandthe Conciliation Agreement. The reviewincluded, but was aot finited tor ° Aapshoving the location ofthe redevelopment project, Saint Helena Square; © the Median Area Income Jevels andracial profiles of the census tact where (i) the proposed redevelopment will be located, and (ii) cachothe: BHA piojectis located; @ the Median Area incomelevels and yacial profiles of Beaumont as a whole; and @ alist of all enviconmentalorother negative uses within 4 mile ofthe proposed redevelopment. Basedonthe information provided, we cannot approve the BHA’s cutrent application because the proposed projectis located in an “impacted” high minoiily, low income area ancit does not appearto affirmatively futher fair housing, Alt excep! one of Beaumont Housing Authovities’ properties ave located in concentrated high minority, lowincome areas of the City. In addition, the census tract in which Saint Helen Square is located has one of the highest cancentialions of African American population and lowest income levels in the City, The Disaster Recovery prograit has a legal obligationto ensure thatall projects assisted with our funds affirmatively furtherfair housing. South East Texas Regional Planning Commission may appealthis decision to Scott Davi Director, Disaster: Recovery and Special Issues Division, Office ofCommunity Development and Planning, U. Department of Housing and Uiban Development, 451 7" Street S.W., Washington, DC 20410-7000. While the poposedproject appears {a be noncompliant with the Conciliation Agreement, we ave available to provide technical assistance and¢iscuss varions options an how BHA's proposal could be redesigned in a manner consistent with AFFHrequirements andotherfederal regulations. Please let ine know ifyou have any questions. Javier Pe (h Director, Prograin Oversight Disaster Recovery Program Stephen 6 Austin Building + 1700 North Cangress Avenue + Austin, Texas 7FBIO1-LI9S BO. Box (28736 Austin, Tevas 78711 2873 512.463.5001 © 800 998 AGO. ho.teras gov

TED CRUZ TEXAS cortices AGING ARMED SERVICES 19 045 COMMERCE United States Senate “vos RULES AND ADMINISTRATION June 19, 2014 RESPECTFULLY REFERRED: U.S. Department of Housing and Urban Development 451 Seventh Street SW Room 10148 Washington, DC 20410-1000 Dear Sir/Madam: The attached communication was forwarded to my Senate office by Ms. concemed about a matter thatfalls within your agency's jurisdiction, We would appreciate it ifappropriate inquiries could beinitiated ontheir betiaif, and ifa full response could be prepared for meto reportto the constituent, It would be very helpfulif the attached were to accompany your 1espanse, In the event you require more ; information, ptease do not hesitate to contact myoffice at $12.916,5834 ar by fax at 512.916.5839. Thank youfor your attentionto this request. PLEASE REPLY TO: Office of Senator Ted Cruz Attention: Susanna Sovran 300 E 8th St Ste 961 Austin, Texas 78701-3226 512.916.5834 i 512.916.5839 Enclosure(s) \ ' i sume 361 suive 410 sure 1420 Suite 1693 Sune9 Sure 501 Sinve S018 00E BinSrnces —-SGZSNOMN HAL SINE, —-BOBTeavia Stucer, 200 Sour(OTSmee, oor UL-s0 West 305 SounHs Bronuway, Oinksen BULOR ‘AUSTX 28701 Dawns, TX 76219 Houston1% 77002 Meauuett TA 78601 ‘Sars Ancora, TX 7230 “Tear, 1X 25302 Wasnmeron, DE 20810 (412) 916 5934 (214) bod-b749 (71a) 71a 1057 4986) 486 7339 (240) 300-2895 (903) 593-5130 £202:224 5922

“Hl : US, DEPARTMENT OF HOLSING AND L RBAN DEVELOPMENT lt . WASHING PON. DC 20410-1000 ASSISTANT SECRETARY FOR CONGRESSIONAL AND INTERGOVIRNMENT AD RELATIONS JAN G9 2015 {he Honorable Ted Cruz United States Senator 300 E. 8" Street, Suite 961 Austin, TX 78701-3226 Dear Senator Cruz’ Thank you for your emails on behalfo whois concerned about the placementofpublic housing in Galveston, Texas. Ms. also transmitted a document entitled, “Fair Housing Act Abuses in Galveston,” which was written by David Stanowski. The following information is from the Department of Housing and Development's (HUD)Office of Fair Housing and Equal Opportunity. Mr Stanowsh1is the president of an organization called the Galveston Open Government Project. This organization sued HUD,alleging that Galyeston Housing Authority had failed to attirmatively further fair housing in an agreement that HUD approved for the replacementof public housing. The case brought by the organization against I[UD has been dismissed in a series of orders. In one order, the organization was dismissed as aplaintiffin the case because oflack of standing. Ihe most recent decision ofthe court was entered on August 5, 2014, and dismissing the organization's complaint against HUD. Theissues outlined in the “Fair Housing Act Abuses in Galveston” documentwereraised in this litigation T hope this information1s helpful in responding to vour constituent. IfI can be offurther assistanceplease let me know. Sincerely, Enka L Moritsugu Assistant Secretary for Congressional and Intergo. ernmental Relations wenhud.gov espanolhud.gov

FAX 2817462625 Ar. Thurnjan ) Pore Werth FEO Center ‘ WOLGheriy 81 La 18 Bate 2460 £ Worth, TA 7102 tlos,rector Dear Me. Miles, ‘Thank yunfor speakute with me on yesterday and lstemng tums cunterns The purpose at this lowes 2s Yo expre IN WLDNg. IW Most recent cqareiis wih the conmued vicuuuzatien at ms » s family whue fying ty utilize the Howany Chace Voucher progam | would hike ta wake namerous farts known belore aiecision 14 made an thiy cas# as the frcty mas have a ducei ampact en the deter minacion uf whether o1 ot reasonable aceuinmadaiions weredenied Addiuonally,the facts wil] carvohorace the need for -mmedhate assistance with tha inatter to pres sat homelessne dhe case iy deeded 8 befe ' Alter speaking with my easmwouker, Mr. Carlock and youon yesterday afternoun [wane to add soive informatian te oy file: aad } want ws Fear Bousing discrimination complaint to vellact the infeumanon conlamed in this letter esse le dais leteerserve aa my inost recent respunse fo the Hains County Housing Authonte’s actuns towards cuy Jamily: and fer the racoed showUhat I weal ' Bhe to amend my (ompknae as previously stetad in aunmiaous omatls and calls, to reflert new information and names in addition jo what hus allendyheen dor umeated (aaaves lo be included are Ms Bevarty Burroughs and possibly Mar Kelvin Wilhamg). Let mg start by addiessing the obvious psue: The Haris County Howang Authority is blatamly dissogarthng vty davalthues and wy ehildien s drealities by deny aig reasonable accounnedanous thar have heen aieven cepratedl and rhe suvl agency removed ayers Losaunable accommodation in mp lilo after [ Aled 6 disev umuation campaine This 1s unrab and because Lam neal 36 weeks. Plegnant now | cannot continue to try 10 appeanetheirbehavion aa ime ts sauinime onl tu resolve (he complaint betere the following major eventa the bath of my obsld, che senudnanoes of oy voucher, the feummnarion of the HAP contace with my bandlord and (he 180 days before 9 decision must be piade on theecmmiaton wumplaint if 0 waren for additional inte an wi tated Lo futher taview Checase The ACHAhag unposerd unreasonable deadlines on ins familyto mase, and, as we dhge assed Yauimduv (ath Mr Caslool copoho acing the dneta), the Local PHEU has commoaneted with the said agency in on efiurt to resolve the matterro no avail Fo some iason Mi MeCastand HORA ' dwector, 14 under the mtpressien(and haa stated such to Mer. Cinch and ro mie) that the Aesistanr Seuredary of Public and Ladian Having and the Sucetary of Heaang ool Urben Development need1% ask for Ina permission to grant reusonably necommcdations wath vegarr to mycage after he wag proviongly made aware this was aot the protocol Mr MuCaztend has ateady agreed ty make the Waiver raquad but he keeve cuing back and foith abut net Anus iug uke protocol after Ic has. Veen explained to bin Ur MoeGuatand as ales staat co Mi. Carlock thea he as Sutcumlortable vequesting a walver on my behalf even thoughhe | news my cersonable accommodationrequests ae valid Lec iuso he hes veverdone awairer before, oven Uiough bas ievel of cumfort as ucelevoit with regard co fedoval sudelines and che proven needs of my faanly Puithermere. if os wot me posponsibiln ¥ (9 issue An cwuves to any appamnted cabiner member of Ue Unsted Staies governuent itus has responabiliry, 44 dirertoy of an organizanen recening federal finds, to ensue that eagunable acummogations aie made to disabled peniona Tr actdhess the dsslabties of everyone bt dhe luusehold. 0.04 ' i 1 i i i

FAX 2817402625 p.05 220/201 ¢ The HCHAlis bad documentauoniny years versfving desabsbtice and only bean au extensive Le verification of such after | fled a disermmmanion complamt against (ke saul agency, Whole the sad agency wax within then Highity to ask drat tho chsabittes be vorified agama wae not ight to remuve acuemmudations from anyfite allecring the paymenrs to myhendlod xnmy shilicy 1 unhze the Housing Choice Voucher progiain without vahd wornuig, 1e760u andtime lo subnat whatever wan neadad to resolve the issue Gvinch was minally thought co be a misunderstanding), * The MICHA issned deadtines by » inch thoy aveded coutamdocuments and demoed veceny of the documents even altey agencies af higher author ily were alls to verify the docuntents hed been recesved While the matter of the sea agency denying recempt of vequested jnfor mation weelava partially remerhed, by uitarveaties tom lagher authority fouwaidng the douwmentstionsail by the RCLHA ta have uot even heen in myfile, the issue of wi happteedto previous doctumntatuion was also taised and has stl act heenfarcually adfiessed mont of the dagumonts © Upon irosarching che state and federal gudehace relevant iy persons vathcisabilities the HCHA requested werea't even meet ssa ebet ause the disalnlites were ob ioas and/orotherwiey knownto the sud ageney Int Pprovided the requesced documentanian sayway even when rlemng wy vekited mv faauly's privacy Lights under che HIPAA Pravau Rule. Aan vesuls af further research and cooperation wth HOHA in an elfant ta vemadymyfannly’s housing stuation, tha sad agency hay bees caught in ever al hes aba(hei: actions wards my family: When the seul awney and they had no hnewledge | was veating Guns my mothya this was proven to by fuleified hy the aard agency because I was able to present the onginal tares and numer oua correspondences leadiay apto the prncharc of the home im queauon esphettly naviing my mother as my prosper tive Inadtad and diveetly ackius ledsing ony franihal relagouship as mother and dsamghtos «When the said agencysaid they woe coaware of copntaued disabilities. this was praven io be a he because the onginal starement rcgordiug wy enten's catbihtes was inentioned and then disabilities arentot a tentporayy nate (ADHD chrome athe stress duced asthma and «evere allergies) Also my disatalities det geuaratied anwiety dteordur, and spiel probleme) aien’? of a temporary nature (panic dive atelyed to musieadhigherauthorityinto : * As farthes related to my childen’s disahilines die HCH A delibe: Dahaving har the mycial pss chotogist statement e\pheatis ststed thit ans clildren anly needed separate bedionmesfoi a purind not ty excusd 6 munis This was antras because the only reterance to a Lime period wits the suggestedand/or exvecied Hine te aotiee ay unpravemen mthe childven's behavior with the wee of an additional bechoow, ‘These was ne reference nade bythr psyehulogest 10 nuply, mauruate v1 otherwise vlate 1 that at cho end ola 6 wooth period the daldhenshouldlin forced back aro the sue hediaom heeause the purpose of the request was obtain an additional bedvwom based un dissbiline 4 wari miting the continued need for such a3 a remedy ro keep tho elaldion fram emyaying violent behavior that could hasm eitherchild and/or bath chucien + As futher volated to my disalshues, the HOHA waa well aware chat | have panic drserder and the aald agency conrunued to divepaid thin an a disabslity in apie of the fact that my need for ecabihty has been contmnonsly addtesead, Rven with information ty substantiate my hagile cmovonal and mental atate, the sakl agency contiaucd a pattere ul bullying. retahaton. and diserminagon «AQ dwabrlittes velated (7 ol prisons in nw hovsehotd have bean in esastencefor years, There ie not oneangle eosability Coesdos my pregnancy) shat as vemporary ami, ven a5 at aclated to this matter’s effect on my EENAMLY As KregMary y ty 7 LempoI|rs cHAditigA the emonentl distesse caused by this matien as nat cempuacy. Thus. eccodingls he CHA never slovid have removed anyof the gceummorketiuas in che Geet plea henmves in dung se cho «asd agency disregarded ahoady aprarent chenbibues. The followute are farts related co mycase we

FAX 2817462625 p06 R200 14 + Famdisabled and my chuldcen ary dheabled ae chined bvthe Prue Beusmp Act, and the HOIhos poof of on dheahihttes as continuous andlong continue fn tact the HCHA has heen aware af our disabilities for years aa provenby veribable cw veypondance withtheswadl agency andLhe rcasonable acrommorations previously mnmy iste + Ta Augast 2013, my vouchersize was dericased ro 2 bedrooms without valid waning or sonsen whon Twent im to camplnls tie-cerhficatiun ineerview. At (bat Guat Twes iabhely huaneted and embatassed about bong caah)od and my chikhen's disabuhtiex were mocked as was mi pegnancy Subsequently, f led a dhacy marion complantt abou the mauer, «After filing the disumnanon couptaior Fvas quoted m wong that T must move ot my home becanse heme elluwad to reaude ia sc wae a seasonable accommodation thar had been rempved, ‘Pheia have veenseveral reucy rogardina this matter because intially the HCHA didivt sarognice ie exception to xent Bom x culaive awa reasonable accommodation oven though the accomimedauonhad been appraved ginco before my tanancyeven beran at mycutrent residence, macead, the saul aguncy wae dhatunost i commementing with higher author ty and statedthat the tenancy waa appravell in evar (thas myth wes debunked once ! pvovided documentation proving OKLA correspondence with the BCHA during the mehame applicable to obluimay the home) * Also after Hing che disernjuguon complamt, 1 was noufied ai wiitiay thd F was ag loneerallowed 120% fair marker rant as payment to my kindlord There have been «eveval ssues abut thos ae well hecause the LECHA immually tied to mrslead lnghea mutleaty into brhesing rhe 120% FMRfor a 3 bedroom unit wos instead. Aaudulent paymenttora 4 bedroom voucherbecause (ie home 1s a d-bedioomhone (this ny th witsalae debunked ancy UL pavided documentabon proving ongoing co raspondence with the MCHA bork befme and after Une lenanesy was approvedsoritving rhacT have only recened a9 bedrooms voucherthy entire ime L have vented thie heme aud the 120% PME waa approved bolas Daca unesed ate the home) «The HCHA red invalid inappropriate and mielevant arguments thi atvfiuily should leave oui present Jane borsuse other houaug would sutfics ued the wwnlitality of athor eacabte housing negates my family's nead to ramam om pre-ant vemdence Tie not feasible fry my family to have (uy eeareh fur housing when we alreadyItave yoitable longing Furthermore, iy fanuly4 rherapihas eoutsborated the need for salality and, aven withone the atl statement Fone Gur thorpsat the HOHA was alvendy well aw ave nl the slveiaeeffects forced moves have had on myfanny (we were displaced 2 yearg ina rowbefore sertling nite this home afterthe landlords for et lose an the proper tieg We Were renuNg, and T nearly had a nervuns breakduwad | Addinonal [nets are as lalinws © Trig che responsibility of the HCHA ay the regimentof fedaral funds to adhere to § 601 of che Rohabilitation Act of 1973" No otherwise quabfied mdaadual with hanchweeps im the United Statue as defined an 29 USCS §706 (3) ahall solely by reasonof horor ins handicap o> ex iuled Hom the partispation m, be damed tho henefits al, ox be subjeore rd ro Asrtimination under anv prugrant ov acuivas ipcenving Federal Gnaneial ayainta nea ov wndak any prosiamor acavuy condurted hy any Executive agency or by the LimitedStates Postal Sorvice 4 The CHA would notinca: undue admnniseanve av fnancal bardstip by allow rng ine re contaiue senting: mypresent residence Nor would mvcenRucy cause disadvantageous changes to the Housimy Choe Voucher program 16 CFR 85 63 ets forth che requnrementof reasonable accommodations with icepect to Sectinn 304 “A recanent (uf deial funded) shall make easonable accommodanonto the known phyaicel or mental imitations of an otherwise gnaied handiwapped applicant or omployce unless the recipient ean demonstrate char the accomadation 6 oul unpond nedue hardship oa the opcvauan of its progam. Whee reasonable accommodauon duce nut uvervone the efferts nf a person gs handican ov where raasonitble accqumnodabon causes imine hirdslap itis aut wo quned ” + Inonlyciting the tirat are of 24 CFR 982 306 (dQ), the HCHA is forthes demonstrating chacivunative and voraliatory behaviot heeanse the onlire stature shouldUe taken inte consiuter ation asit allows disabled

FAX 2817462625 i 2/20/2014 nersons to vent bom relanves ‘The PHA must not approve a unitthe owner is the parent, child, atundparent, gvandehih, soliton lavther of any memes ol the tanuly, unless the PHA determines that approving the unit woald provide veasmnable accanmnadntion fora family member who wn person with disabilities ‘The statute gnes on ta inctude language snecific to whenthe Leetuiclion applies am thar itis @aly at (he timeof intiat dcnamy and t oppheable to continuad ecuupancyuf tha sama wit, however, the HOHA has diregiadedthay federt gindihineallagethin. | ' Tw conclusion, | hope chat youwill take all mentioned ineta mto consideration, ag L have carcfully prepared chix lectorin hopes that my family’s house situation can be remedied an cunsistence with alate and faderal law Wea have aoc violated anylaws, and yee are beme exertedfrom out hone Peyeine 4 ta mave would cause an undue tonvden ond finannal hardsiip an ms fanny, 1 addution to aggiavating alieady appareut andoven 1 absabitiues J. 1s ilogical to take awayuy fomily’s equal opportunicyto use und enjoy our dwelling when the arian disshihues that wore eited ag tle .esaon toy groaning the previous act ommadatwne havbean pi avon 2% contimuens. Please help us Respectfully, Kb){6) po7

FAX 2817462626 HARRIS COUNTY arty September 23, 2013 KO}G) 38903 Cove Pointe Dr. , Cypress, TX 77433 Dear Ms. Tamwriting to inform youthat Hat1is County Housing Authority (HICHA)has denied your ! ieasonable accommodation request for one or more of the following waivers: « Ador4-bedroon subsidy; * Atl10% of the fair market ren! for Haris County's « Loased froin your mother, 1 HCHA has denied the request because we lack sufficient information to establish the following: ! © That yoursans are disabled as defined by applicable fedeval orstate law; « That yaur sons’ conditions require an additional bedroon: or other requested accammodations; and « That the accommuadations yourequested are reasonable Both Debra McCray and 1 wilt continue to assist you to identify information that would allow + HCHAto document a disabilily (as defined by federul er stare law) and provide a reasonable ayeommodation, As previously discussed, per your annual recertifieation (hat was completed on September 11, + 2013, your voucher subsidy ng of October 1, 2073 will be for a 2-bedroom: voucherut 100% of faire market rent, Assuming your mother wil) allow you to remain in place for the month of \ October, IICIIA is extending the deadline for moving to 4 hew unit not owned bya relative until November 1, 2013. This onc month extension only applies to the third waiverreferenced above,'! Ptense contact me or Ms, McCrayto schedule an appointment to camplete the necessary docuneniation for your move. Very truly yours, Beverly Burrongh Director of ICV Programs t 8933 Interchange Houston, Texas 77054 Tals (713) $79-2100 Fax: (713) 669-4594 www.hchatexas.org R10

FAX 2617462625 | att The Hunavaiste Barack Obama. Peeaittent of the United States Sho White gus. 400 Penpsshama ‘venus NOY : Washington, DC 2u36u Dear Mr, President. i Lam afung bee mee Paced cour telp Dr one savine st es wth @ mantas ro aby wy farm eta gen! howsing darts der asec teday TRE SUH not ccen ed a egseluuen of any abet Dean dbeabded euyale ov they wah tthe my ter Mdest elatdiun alse have cheahilithes and un yourges hid onty .2 ee cfd) vo ar all plein tone Ramg!ess bee ee noone aa~ helipad ae Lhave Leer hemeless twicehjt2 en (ie Hore me Choices Vousber proytane and both omes. im ware beeause the bundionda frecoms don the qumes Dwae vending aid tne Lorre County Jinnrag utboreds amnecd he se reusnces oP dhe ita vuens | da ner want We same thane propeie]naw di Rae amor wana ties the aAVP supsady toys che mortgage me (aabot pucks te Ue money Dave ent he ean exancr all nesegare doquaeatation [retine Uber omy damab aecanh necssremain ar otu bome bu. alors to Pappen a aise proving TL we bewe so uat wader fi ndotats has acwollas CTD ae galitions. torsohea Phnow the lausing aactharis ie aness cast fdas Cert wed cplavira? cher, ar decease “bh muimbe, o be digaae rime tia) bur Thad to ded hemy of my ¢ authonits aad eon mide Wrationis matedeer disdtia.s sicid rot betve be ebay the we) Méren Viv cbihien tec ay cupid taal teeta dveums md the hours RAGAG2 Uns at cache enc ctifictae sto, tho pisG vena. same bert Guinag my family - rectification. Howe set oefion dha the eanyplauin. Ube voutang .utbertty rc talrated againet my Times by vemodng “vcrvex omable cecmameditoen nan tle Gaehing che dhihiy te dense from any nether ane the exception te er market cary. Pne amd agent has poliesteves the arcanimedarione Aller rec eu consistentls a-ko tar newprea bates der sl regen sted douuntens en, and bas Fe OO gmLed tad is offense ' imsenstlts noiidanag and unialacee Go tee roan ot aes nmatiaéne Ge tcc fas 2 weehe are bare fhefa oie ae CCCUME TUE IGTelt My peer ak sats Uy ad Tht was a shesb about a tess polantal matter Wey auoe fel bas bs veda d Party ed bu MOS Wapact whether ct ren Twill avin be alte to have aay moe children twas an inendt 10 3 femme wad Dwell ney sudue ta he eto eG) unecessary metic inforine.ton tered . Trappease cu iastly) : Pdeavat ave apvwanete lege boa es Am ek dt pees poet d tere Gore ugk ua Vout Lemay Venu We VM a fo ta Paak es em he oe Abs males iarchessd cbr how soins b ldven dt be nest abot pe the Leising wulLorits aLproved me eaetrem nee beousc udm bonds ’s disghdities but alten | coureeied hihor authoriand teed a fai ben tg compha i bout the change in the putber of ude vomes on wiv venicher the agency 1 now eng dag tect bear ne longer rout Lom me mother even aller becoming documentation of bah my aude ¢ aeabitine cud the neod

FAX 2817462625 ' p.i2 KB} . GG Ff fowatahiney The hosing suthorts hay pa. ratny oni: vent arcoubnaly Gnee Outeber 3e and ule Tut bye Sor the Reto ae neds SESUO ' Av that whacte haprenmeie uae te lis Secadee tenn tend ards ompeedinid giite well ( baye Attached the marie mid awl vw citing Uh speaie we yetan and alaiiter preavine che sabes obs postion and pny famuys rieht ty vemcan creahere) but,Gree Dheve apparents upeos emplaycus at the Fevaing athe ty ces oetpatai ia dices row ad = my Forte ate my unde edits Mai the obstacle Sertuug the Gehan veeoheays Ute miterOe led eon we be bass , ‘The outa ot ebeca Cerietlus Che basa very te ui aie at gareguhe Sharp ane temyfamily 4 CPR 942 306, -peeifnalls mevecundino dese ta continu xl eur ies af rhe came unit ‘Che -tadut, protects dieibled people from \ sates ant hagrat easing LEON en rehiteen after the mtat! bern Taeks dett inte the skrekt this bat sertiny con ye latade efter che accommodation bas bear Howe : + i cut : ddowed and Dboheve the stitute wa he niton that cows Cunhes peach af annd mm Laos my dieabrlues wites topes e EC AM poem2a 8 Baris se rlepeg Phere bene other way for phe sureate to be ALON Gould pean orm rilerpr yeber adee ane other insert ewattd be ponalzed oased ua ihe: 1 Wiplovep ns oF Rerdeb addéy chyabuvies and Uae wed Uh aati 1 i . : ced Dy Che ard iu conen ai reetsh Cpectialls di the exact fie we Soper ms fen Aas ised iiles Byer + aeraaus te venaable meatal benht ve eues sos ‘Lom 2 precious frcca moves the eced for stability and the werry ot whedan ar rien as fan adil be ble to remain ia ear preaunt hame) Leet rhat we dew tokw helped we deseu da be able lo shay naa heme cam weak aaw toueh Tam tied oafsendine | an Une cous and Tyust wars a another LO nenthefe, We noed b “Us ana tases fam ied of ved idine veepvhl. By henlis hes deteriprateat Loon the treet ot deatinn with eho d det leefa. theaeh eiia ragten i vo compie aed at whould take VN, Uhave sont amereus regaests a amg “eames Wr tens Vegeta Bechet Greene Lain R , I Neevetary Hearque, and Secon Donev aa beead. OX mothe: faneed Oe up moncar ago; bul, } have als wo. been tald ta be parcat Chavon they aie teas busy se Tw euted Mt this pant cbauga, dim aking sad dasord.e that bra kept ies Angtnrs humclaarmy meto. Ghe tupragenist duc anys orders Eh ve a ta mesctato: fh while fwue uegoan? aid ney dine tu camplioaguns, drat may ace ath amiendes [avn ot sfbagd tu fly though Pam aftertobe Fenele.s sean mid ie Acaofthis teas thac bnew Trial come fo. Waabrayter Dt } Vigeuthe Ebave had y sages che mest rcccie wad Pursday of last week) and] have had 2 ta the par : Glued fainsfasune Als blood presetee es ecwosteble 1aies fotpu ahd now. dnd Und, x meine. eAUSEU Me ta pass out but Cam comme @) have ce ode) My mediod utopiatian 6 Hl be Torwed ded to tie VedStn Warshingso Hospital Cope oe ine Pagid anti. laepatet within 27-44 hewes atime depmtune, from Houston gee of areneccened aie tier dette cb aeeler cmd a peasant basting my bloc) (pe anid allawea Fae i i Fadlo not bes abe pretecol for coming te the Woute die ont ua. Mea saat bela: and, hun Past + Uhere thet r whee | ua eon to tO winds et mes te eer Pde sotant lo he arrested ay shut fon ontthere waite) aa predic aime dare peor nen of beaenya ere tim nut weleemed.. 0 plence cont think hayd of es Sacre Gonacity Padi aa gust md eirbouw! any p ablesys as soon as Lay told te | tallow eneectioas aude woom Tain not hate of undecstimling tu. have fo come thite lec suse t rae ehoacto ter uy burn and famate aid

FAX 2817482625 ‘ pia (6; 1 of202014 ee) 1 In addihontothefirst letter) sont you, { have attached theletter J received in response from the IcaHUD Field Office. | also attached the intimationprov.ag that} have pravided the requested documentation to Lentmie the secommodanone even thoughst wan't needed (the cops attached wae originallysent to Secretary Donovun’s office directly font my faunly'’s therapist, aad che racking number ts 207 FAH PD-. © 00672). Please note thatin the attached re<ponge trom the loca held office Thave nor beenallowedto are the letter veterenced slatang Ubai disabeitey would net Me Uo imd «sia menth window. J have keG ta see tbat letter in whiting, but Ihave been denied secess tu tt each Gnu My childien'a disabilities are nat issuea'that disanoea in 6 months and my disabitiucs won't other Fiethermuse the ascmmmodut-< swore gronted in 2010 bared on allow deabiitics not just Uiems Gind I still have che pagenvork to prleve ib) sp, faa uneure why the horang auihorny fle dy ned We eneeciain a statemen [ait not Ulowed to see ar get curented ut aun. Ropar) an chomal. lot ratemens is amid co have Leen a wre dale. staredthas a dy on written iy 2008; and T completed oaecertidienuans alrer thal without a prablemyerlsing dic same shaabilites. 80, quite fankiy, 1 mu offended by the lech of cumern ler my amily s valid do abiliics and the aentiening'af 0 sear-o'd paperaale Thavent heen allowed to ae otter cansieke ot and current papers ore wae laeused and dest uyed, Thinve duat x luton d coeuviadke Cem ao’ borden on our lemuly my chikdies's edoraron my cortnad educaay celatonship ms unents father our fends and our peers, Ting wick rhy aaatier chee Tam coembarracced tiynt Domus cally 0 tear ott ol hoe done weurvrbaay baa tu comply with the eal dune veeraied any fa Tm just Jisagug aetlorn evenachen dimen con ei ine thangs ot ye ght, ted, aad wenced you help Teeatrtvely plan ta bea Wasampien Dt the oecek of dah 7 YOLt trem che Forde rhe 89 dam well nrop at the Willard Tite rcontinental eneugh ta cueand stand wirhous support ts thea fy Tb moet bhkely 54 wohony daobo auae its cos: te AD Te udquaaten: and Lplan de go there fast Tamderatand if vou Ale, HAL YOu Same ie hea ongcancerans. Plawebh asteriat loonesnnet help pre fis Ube eo cannot ae arioast parat mew the div cron ol semeone why ota 1 ” moms fante remiia ui our houwte ml eaatioue te atdize the Nousing Larne seckeng a waren that will Chews Vo cher pegenm ‘ Tlewae: belp Us Resectfully Bye)

ee 4 \ FAX 2817462625 , pid rank ey, US.D \ ne epartment of Housing and Urban Development fy a Office of the Field Oltice Director u 2211 Norfolk Street, Suite 200 Houston, Texas 77098 4096 1 ‘ngth (713) 313 2274 4 www.hud,gev , November 18, 2013 ' Kb){6) Dear| SUBJECT: Wrongfut Eviction HarrisCounty Housing Authority ' The Office of HQ-Execurive Secretarial received your inquiry of Octobe: 29, 2013, 10 President Obama, and has forwaided it to the Houston Field Office for a response because the Harris I County Housing Authority (HCHA)falls within the jurisdichonofour agency. Please consider this a formal response to your correspondence, ! After an initial review of the information received, the HUD Houston Office of Public and Indian Housing contacted the HCHAto inquiic abouttheir requirement to 1elocate you from your |} currentresidence, and the destructionofdisability documentation concems expressed in your letter, i The HCHAprovided ouroffice with a copy of your entie file. After an extensive review,it ws determined that the current reasonable accommodation to rent from a relative (your Mother) was solely based on yourchildren’s disabilities. Those disabslities, as stated by your Physician, t would not exist beyond a 9ix nionth window, However, that time-frame has elapsed. Therefore, alt of the reasonable accommodations afforded to you no longer exist as weil. Based on ourreviewof the file and numerous conversations with you, the file reflects the ' documentation you subnikted, and does not appear to have been altered However,if there is any new and/or additional documentatian you wash to have us review, please forward that information/documentation to ouroffice, The Deparment is sympathetic to your concernsand the difficulties that you may be 4 experiencing. Mr. Tom McCasland, Executive Director of the HCHA has agreed to speak with |' you dhecily, and can be reached at (713) 669-4545,

FAX 2817462625 2 Thank you far your interest in the Department's program, and for bringing this matter to our attention Should you have any other questions or need further assistance, please contact Mr Kelvin Williams, Pubjic Housing Revitalization Specialist at (713) 718-3219. Sincerely, Edward L. Pringle, $1,/PhD. Director, Houston Fish! Office pls

FAX 2817462525 Lewis, Christina Thu May @ 112 PM to biyar, greene@had gas, entreCarlo cOb e Gat cc browWD yrail com : RE: PENDING FAIR HOUSING DECISION 2014- AHFD-EXEC-00672 - Documents Thanks Bryan. We will ensure that we have this information doctunented in the file, Christina Lewis Director Houston Field Office Fair Housing and Equal Opporninity US. Department of Housing and Urban Development 1301 Fannin, Suite 2200 ' Hotston, TX 77002 (Direct) 713 718-3189 (Pax) 713 718-3255 From: Greene, Bryan Sant: Thursday, May 08, 2014 2,54 PM Toi Lewis, Christina, Carlock, J Andre. cc: (exe) Subject; FW: [yey XE) PENDING FAIR HOUSING DECISION 2014-AHFD-EXEC-00672 - Documents |: wants you to have pertaining to her case. ' Please see the attached documents Ms. Thanks. From: William Smith [mailto Witllam.O [email protected]} Sent: Thursday, May 08, 2014 3:39 PM To: Greene, Bryan Cex [OXO) 1 Subject: LG) JI@)6)__] PENDING FAIR HOUSING DECISION 2014-AHFD-EXEC-00672 - Documents ' Mx. Grecn, The documents attacned are for a pending Fair Housing dazision. pig

U.S. Senator Ted Cruz Unuted States Senator * Texas The Information and Privacy Act Form Phe Pree \corequires vor winter Comsent belory 4 goverment ageney wil aiclease mlornyation, toaur office reading your records. Lo belle: serve von, please Complete this forms ancl petunia moukhoued below Please be aware dit the person ec quesung assistance List steno dus Lown ' Phesels anthonze the office of SENATOR TED CRUZ to request on my belie! poraaent te the | Breederof Information and Pasacy AcCof [07 1 access fonfoemation cone crmng me, and 10 fomard copics ab mt corespondencemvoluing (Name of (gene) HOriasCoun Housing AucthanetyAndtclerdotHuppoldiesti addhnon, theoffice of SENAVOR CRUZ is abd authonvzed to sce any materials thatim sy be disosed pertinent to dat request Kb){6) NAME: Kb){6) EMAIL ADDRESS: HOME PHONE#: & r = — WORK PHONE #: ) CELL PHONE #: ¢ ). fe) MAILING ADDRESS: Je . HOME OF RECORD (sernice membersonly): Ne) DATE OFBIRTH: (unmddlyny) FONT SOCSEC#: VA CLAIM # (if appheable): PASSPORT# (if applicable): ALIEN REGISTRATION# Gf applicable): OTHER ID #: (ib appheable, pleas meicate tax year) and lonv 4)

t } *Have you requested assistance from any other Congressional office? If yes, which one and did : you receive a final response? NO , oye) ‘ 7 Asia) Dole , fiosnacve Wate) UShYLUS PAGL TO UNPLAIN YOUR PROBLEACTO PILE SEN VLOR Note: Becaise of seconmeasines. mails tow niadiated. which Gan damage sensine items? saci as Case le tapes. videos. CD's and DVD's. Fax. c-nial and web torease Hie cttic hest was to} lonsand som mformanon * ; INSTRUCTIONS: Ploase site a Died bater oudiiang the nating af veut problomand be as spoeric as posible. In praticular wdude the nanes ol any puble olficails you have Communicated with ur the past and thedates those communications ocauited. iso, phase attadiany tcfeuant couespondence Ubit you have antited or recatved concenmag your problem. Yoru may submit f vein colapleted foun atid any ober poriuent alachmcuts be, i U.S. Senator Ted Cruz 961 JJ. Pickle Federal Building 300 E. 8° Street Austin, Texas 78701 ‘ Fax: 512-916-5839 casework@eruz,senstegov

+ a U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. . ill WASHINGTON DC 2410-4000, ASSIST ANE SECRETARY FOR CONC RE SSION AE ANDINTERGON ERNMENT AD RIT TIONS The Honorable Ted Crus United States Senator 300 Last 8”Street Austin, 1X 78701-3233 Dear Senator Cruz: Thank you for your email on behalfof [EJ about her housing hardship [he following informauon1s from the Department of Housing and Urban Development's (HU 1D) Ottice of Public and Indian Housing (PHL). The Departmentreceived similar letters addressed to President Barack Obama and HUD*s Secretary Julian Castro from Ms. about the aforementioned matter. The Department addressed her concernsin the enclosed letter dated November 4. 2014 In order to provide you with the most current information about Ms EO Thousing situation. PHT's staff contacted the Harris County Housing Autho HCA). Tom McCasland, Executive Director ot the HCHA. intormed PIEHs staff that Ms has requested an appeal hearing which has been granted to her Final adjudication will be determined by an objective third- party aritrator IfMs has additional questions or concerns, she may contact Kelvin Williams in HUD's Houston Field Otfice of Public Housing Mr. Williams canbe reached at 713-718-3219, I hope this intormation1s helpful in responding to your constituent. If T can be of further assistance, please let me know. Sincerely, Inka L. Mortsugu Assistant Secretary for Congressional and Intergovernmental Relations Fnetosure ww hud.goy espanol.hud.gov

i Me sees es U.S, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON DC 20410-5000 * etsy, ar on OFFICE OF PLBLIC AND INDIAN HOUSING eye) voy -4 cid Dear Ms. On behalf of Secretary Julian Castro, thank you for yourletter about your housing hardship. After an initial review ofthe information received, HUD’s Houston Office of Public and Indian Housing (PITH) contacted the Harris County Housing Authority (HCHA)to inquire about your concerns. The HCHAprovided PIH's staff with a copy of yourentire file. After an extensive review,it was determinedthatthe current reasonable accommodation to rent trom relative (your Mother) was solely based on your children’s disabilities. Those disabilities, as stated by your Physician, would not exist beyond a 6-month window, However,that time-trame has elapsed. Therefore,all of the reasonable accommodationsafforded to you no longerexist as well. Based on the Department's review ofthe file and numerous conversations with you, the file reflects the documentation you submitted, and does not appearto have beenaltered. However,if there is any new and/oradditional documentation you wish to have HUD review, please forward it to PIH’s Houston Field Office. The Department1s sympathetic to your concernsandthe difficulties that you may be experiencing. Tom McCasland, Executive Director of the HCHAhas agreed to speak with you directly, and can be reached at (713) 669-4549, Thank you for your interest in HUD’s programs, and for bringing this matter to the Department’s attention. Should you have any other questions or need further assistance, please contact Kelvin Williams, Public Housing Revitalization Specialist at 713-718-3219. Sincerely, ch husLaomee/ Lindsey Reames Acting Deputy Assistant Secretary Office of Field Operations www.bud.gov espanol.hud.gov

U.S. Senator Ted Cruz United States Senator * Texas ‘The Information and Privacy Act Form “Phe Privacy Act requires your writen consent before a government agency wi] release information to ouroffice regarching your records ‘To better serve you, please complete this formandreturn it asdicated below Please be aware that the person requesting assistance must sign this form. Lhereby authonze the office of SENATOR TED CRUZ to requcst on mybehall, pertmentto the Freedom ofInformation and Prvacy Act of 1974, acecss to mformation concerning me, and to Jorward copies of my correspondence involung (Nameof Agency) SAUD4 _ Tn addivon, the office. ofSENATOR CRUZ 1salso ahonzedto sce any materials that may be disclosed peruneatto that request. oye) NAME: oye) EMAIL ADDRESS: HOME PHONE #: ‘WORK PHONE #: CELLPHONE#: ( 1 KbM6) MAILING ADDRESS: | HOME OF RECORD (sernice members only}: oye) DATE OF BIRTH: ramVdd/yyyy) VA CLAIM iif applicable): an PASSPORT# Gf apphcable): ALIEN REGISTRATION# {if applicable): oye) OTHER ID #:! (fF appheable, please indicate tax year) and form#)

*Have you requested assistance from any other Congressional office? If yes, which one and did you recerve a final response? WS of Nien Ne) oF ekcesghadacl . Ulsl ty Tignalurey (Date) USE THIS PAGE TO EXPLAIN YOUR PROBLEM TO THE SENATOR *Note Because of security measures, mad is aow irradiated, wiachcan damage sensinve tems suchas cassette tapes, videos, CD’s and DVD's. Fax, e-mail and web formarc the quichest ways to forward your ufermaton.* INSTRUCTIONS: Please wnte a bnelletter outhning the nature of your problemandbe as specific as possible Tnparticular, include the names ofany pubhe officials you have commumeated wilh im the past and the dates those communications occurred. Also,pleascattach any relevant, correspondencethal you have imuated or recenedconcerning your problem, You may submit your completed formandany other perunent attachments by. U.S. Senator Ted Cruz 961 JJ. Pickle Federal Building 300 E. 8° Street Austin, Texas 7870] Fax: 519-916-5889 casework@cruzsenategov

04/15/2016 DearSenator Ted Cruz, | pray this email reaches someonewilling or able to help me I tried to get a modification done about a year ago and it took a long time so | fell even mare behind in my finances, and had to sell my home On closing day, the partial clawn finally went through, and my closing was halted In the meantime, my new file seems ta bein limbo, andthe affordable housing | painstakingly searched for and found 1s slipping away, as ( need the ttle bit of money | will get from the sell to use as a deposit, and first month’s rent (Affordable housing is so hard to find aroundhere } Independence Title Companyis needing 2 payoutconfirmationin orderto proceed, and complete the sell. | was wonderingif there was a way to do this manually? Or perhapsyou could work with Wells Fargo Home Mortgageto abtain the payout aver the phone? | have doneexactlythat and have spoken, to Angela Burt, HomePreservation Specialist 877-458-8417, and | have obtained 9 payout amountof $23,000 139 74 However, in orderfor the titfe company to proceedit must come directly from HUD The iast representatwe | spoke with, Jonathan at the HUD:LoanServicing department(877-622-8525) said that the toan informationis nat showing up in “neighborhood watch” You would be saving my children and (if you cauld help meget this resolved If you need more,or need/ wantto speak to the title companyplease contact Asten Mull 713-316-0226 or via email amull@independencetitle com, Via Fax 713-316-0800 Thank you so much for your help Regards, oye) FHA Case Number{i0)(0) Kb){6)

KONE) xtia Case INo, PARTTAL CLAIMS PROMISSORY NOTE FEBRUARY25, 2016 HOUSTON TEXAS [esfective Date} {City} (State] (e}6) {Property Address) 1. PARTIES. “Borrower” means each person signing at the end of this Note, and the person's successors and. assigns "Secretaryor “Lender” means the Secretary of Housing and Urban Development und its successors and assigns 2, BORROWER'S PROMISE TO PAY Tn retum for a loan recetved from Lender, Borrower promuses to pay the praicipal sunt of FWENTY- THREE THOUSAND ONE HUNDRED THIRTY-NINE DOLLARS AND 74 CENTS (U § $23,139.74), te the order of Lender Due and payable upon aneafthe following events below 4. MANNER OF PAYMENT (A) Time. On APRIL1,2046or, ifcathiet, whon the fizst of the following events occurs @) The Borrower has paid in full all amounts due under the primary Note and related mortgage, deed oftrust or similar Security Instruments insured by the Secretary or (it) The matunty date ofthe primary Note has been accelerated, or (y} The Note and related morigage deed of trust or similar Security Instrumen) sre no jonger insured by the Secretary, or (v) The property is not occupied by the purchaseras his o: her principal residence (By Place. Paymemt shall be made atthe following address U.S, Department ofHUD s/o Novad Management Consulting, Shepard's Mall 2401 NW 23"Se, Suite 1AL Oklahoma City, OK 73107 Toll-Free: (877)-622 8525 Fax Number~ (800} 489 1733 or any such otherplace as Lender may designate in writing by notice to Borrower 4. BORROWER'S RIGHT TO PREPAY Borrowerhas the right to pay the debt evidenced by this Note, m whole or m part, without charge or penalty If Borrower makes a partial prepayment, there wil be no changes m the due date ar in the amount of the monthly payment unless Lender agrees in wrsting to those changes 3. WAIVERS Borrower and any other petson who has obligations under ths Note watve the nghts of presentment and notice of dishonet "Presentment means the right to require J.ender to demand payment of amounts due “Nouce of dishonor” means the right to require } ender to give notice to other persons that amounts due have not been paid 6. OBLIGATIONS OFPERSONS UNDER THIS NOTE Li if Ef eq ETT agement roo wee!ENO Turst American Merigane Solutions Page 03/22/2016 9:21AM {GMT-05:00)

| I. L.S. DEPARTMEENT OF HOUSING AND URBAN DES ELOPMENT WASHINGION DC XM10 1000 ASSISTANT SECREFARY FOR CONGRESSIONAL AND INTERGON PE RNMENTAR REL STONS ss MR May 5 221s The Honorable Ted Cruz Laited States Senator 961 JS Pickle Federal Building 300 East 8" Street Austin, TX. 78701-3207 Dear Senator Cruz Thank youfor yourletter on behalf of your constituent, Ms. about her request for assistance with resolving a Federal Housing Administration (FHA) loan modification issue, Specifically. Ms skedfor help with obtaining a payott confirmation from the Departmentof Housing and Urban Development (HUD) sothat the tite company, Independence Title Company, can complete and close her FHA Home Atlordable Modification Program (FHA-HAMP)application Ms mortgage (s secured by the property located at 18003 Brooknoll Drive in Houston. Texas. The following intormation ts ftom the HUD's Office of Housing Areview conducted by HUD's statf has confirmed that Ms. [®6) FHA-HAMP appheationhas been completed. The FHA-HAMPclaim must be filed prior to NOVAD.the Department’s contractor, being able to issue the payoff confirmation. Wells Fargofiled ts HAMPclaim with FHA on Friday. April 30, 2016 Until that claim has been paid and HUD’s systemof record has verified the transaction, no payoff amount can be determined, On April 28, 2016, the Department’s statf spoke with My [© and provided her with diteet isiructions as to how fo instruct her ute company to proceed withher closing. It Vis. has further questions on this matter, she may contact Ms Kert Fulbright. a Housing Program Specialist at HUD’s National Servicing Center at 1-866-449-1661. extension 8507 Thope this intormation1s belptul in responding to your constituent. If Lean be of further assistance, please let me know Sincerely, b Moritsugu Assistant Secretary for Congresstonal and Intergovernmental Relations sownhud.zov espanol.hud gov

Congress of the United States Washington, BC 20515 December 21, 2015 The Honorable Julian Castro Secretary U.S. Department of Housing and Urban Development 451 Seventh Street, SW Washington, DC 20410 RE: Rulemaking Process for Amending 24 CFR Section 3280.8(g) Dear Secretary Castro, Weare writing regarding a Notice of Proposed Rulemaking that HUD hasapparently drafted addressing the Office of Manufactured Housing's (OMH)definition of a recreational vehicle (RV). Dueto our concerns with delays in your department, we urge you to immediately publish this regulation for public notice and comment, and promptly complete a final regulation. As you are aware, your own Manufactured Housing Consensus Committee (MHCC) voted in December 2014to clarify the RV definition in a new regulation. Since there appears to be agreement amongkey stakeholders on the major definition points recommendedbythe MHCC,weexpected the Notice of Proposed Rulemaking would have been issucd by now It came as welcomed newsin January 2015 that, pending the outcomeofthis formal rulemaking process, OMHclarified 1t would not take enforcementaction against park model tecreational vehicle (RV) manufacturers. The Program Memorandum from HUD's Office of Manufactured Housing Programs provided short-term clarity for some jurisdictions that were confusing larger RVs with manufactured housing when setting tax and zoning regulationsat campgrounds where RY products are used. However,the continued lack of clarity on OMH's final definition of a recreational vehicle is disrupting an Americanindustry that1s still rebounding from the economic downturn. An updateofthis policy, originally set in the early 1980s, will provide certainty and guidancefor RV manufacturers, consumers and campgrounds. Giventhe industry consensus, we see no reason for these stakeholders to wait any longer. Please inform us immediately when youintend to publish the Notice of Proposed Rulemaking that seeks to codify the MHCC recommendation. We understood this Proposed Rule was a high priority for HUD and OMH.II this is the case, the Notice of Proposed Regulation should be issued immediately. Thank youin advance for your cooperation. We look forward to hearing from you about HUD's plansfor publishing the Notice of Proposed Rulemaking and producinga final regulation. PRIN] 20 ON FICCYC.£9 PAPER

Sincerely, MarlinStutzman Memberof Congress ‘odd Rokita Memberof Congress Meare Luke Messer Memberof Congress Lynn Westmoreland Member of Congress Glenn Grothman Memberof Congress Tim Walberg Member of Co / «nekee LJatoesky Jackie Waldiksi Member of Congress Loa Kristi Noem Memberof Congress a Sam Graves Member of Congress Susan Brooks Memberof Congress

Todd Young Todd Young Member of Congress Larry Bucshon Larry Bucshon Member of Congress 5

“ti ASSISTANT SECRETARY LOR CONGRESSIONAL AND INTERGO¥ ERNMENT AL RELATIONS. et U.S. DEPARTMENT OF HOLSING AND URBAN DES ELOPMENT lt : WASHING LON DC 20410-1000 - FEB - § 2016 The Honorable Todd Rokita U.S House of Representatives Washington. DC 20515-0001 Dear Representative Rokita’ OnbehalfofSecretary Julian Castro, thank you for yourletter urging the Departmentof Housing and Urban Development (HUD)to expeditiously publish for public notice and comment. a proposed rulemakingto update the Office of Manufactured Housing Program's definition of a recreational vehicle (RV). The following informationis from HUD’s Office of Housing. Asstated in yourletter. HUD brought this matter before its Manufactured Housing Consensus Committee (MHCC) in December 2014. The MHCC recommended that HUDclarify the current RV regulatory exemption anddefinition in HUD’s Manufactured Home Procedural and Enforcement Regulations (Part 3282 of Title 24 of the Cade of Federal Regulations) Asalso stated in yourletter. HUD issued a memorandum in January 2015 that extended the date for compliance with an earlier October 1, 2014 memorandum.until a final rule concerning andclarify ing the current RV exemption could be published. HUD’s Fall 2015 Semiannual Agenda,posted at wis reginfo goy.lists its agenda of regulations that HUDis working on and expects to issue during the next several months. Proposed regulation to revise the exemption for recreational vehicles is included in HUD’s Agenda. Specifically, HUD's proposed rule would revise the current exemption by defining a recreational vehicle as a factory built vehicular structure. not certified as a manufactured home, designedonly for recreational use and not as a primary residence or for permanent occupancy, and built and certified in accordance with either the National Fire Protection Association 1192-2015 (Standard for Recreational Vehicles) or the American National Standards Institute 4119.5-15 (Recreational Park Trailer Standard). la addition, HUD’s proposed rule would require that units claiming the RV exemption displaya notice that identifies the standardsused to construct the unit andstates that the unit 1s designed only for recreational use. and notfor use as a primary residence or permanent dwelling. The target date for publication ofthe proposedrule is the week ofFebruary 8. 2016. HUD is working toward meetingthis xoal. 1 hope this informationis helpful If f can be offurther assistance. please let me know, Sincerely. a t.. Moritsugu Assistant Secretary for Congressional andIntergovernmental Relations www.hudgov espanol.hud.gos

Privacy Release Form Authorization in Accordance with the 1974 Privacy Act Congressman ToddRokita United States House of Representatives Date of Birth DYE) HON 7 Prefar Emaif Communication?: Yes / No receive Congressman Rokita’s email newsletter Daytime Phone Evening Phone: (so} 7 oye) Social Security Numbet: laim or Serial Number: Please briefly describe the exact nature of your problem, and what you would like Congress- man Rokita to do to help you. Please send copies of any relevant information. (DO NOTSEND ORIGINALS.} Please use the back of this form or attach additional pages if more space is ded. & a oof 3x02: OF takls Faklpr-sury a@l of (ea een 2 eal 21donstecept nhata Curt! LWA lls PegaBeakAlscpaplala dhFORT& BOK) Le ot on Are represented by an attorney?: Yes No Note: The Privacy Act of 1974 prohibits the government from revealing any information from personalfiles of individuals without the express permission of the person involved. Disclosure of personal records to a Memberof Congress whois acting on behalf of the constituentis pro- hibited, unless the individual to whom the record pertains has consented. |, the undersigned, hereby authorize the office of U.S. Representative Todd Rokita to receive information in myfile pertinent to his inquiry on my behalf with any federal agency. KoM6) Signatu| Date: 7 fJ 5 f Please return wr form to the DANVILLE DISTRICT OFFICE 355 South WashingtonStreet Danville, Indiana 46122 Phone:(317) 718.9404 www.rokita.house.gov

7-4-19 To whom It May concern: My son Craig Lynn Fuller and Maurice D. Fuller has had a home loan with Wells Fargo Bank, N.A. or Wells Fargo Home Mortgage since 2007. Then in 2017 Wells Fargo Home Mortgage started sending my mortgage payments back to me stating they don't accept partial payments. This is the first time they have performed such action. I've mailed to Wells Fargo $534.25 many times since 2007 and they accepted my payments. Relating to statement date 6-18-17 they want me to pay 594.19. Because of other obligations I can not pay the amount 594.19. So now they're saying I'm behind on my mortgage payments plus I'm behind in paying late fees. I sent my mortgage payments in at a proper time period. As you know the postal service isn't the best anymore. You never know when your letter is going to reach the destination. Wells Fargo has no concrete proof that I was late sending in my mortgage payments.

As you can see on statement date 6-16-17 I've paid Wells Fargo a lot of interest. My interest rate is 6.750%. I believe this above the going rate today. But still Wells Fargo is unhappy with. The 6.750% interest is a fixed rate. Knowing Wells Fargo they think they can charge me 10% interest. The 6.750% interest is a yearly rate charged against the unpaid principal balance. How they got the monthly charge of $71.22. I don't know. My unpaid principal balance is $48,822.68. The appraisal on the house is $80,000.00 plus. I truly believe Wells Fargo Bank, N.A. or Wells Fargo Home Mortgage is not interested in changing things or helping my son and I out. They're after blood, stealing my house. I don't know how Wells Fargo $594.19 Recently I sent Wells Fargo Home Mortgage $74.10, by check to pay for insurance for the months of June + July. If my check is not cashed or sent back & I'll know precisely Wells Fargo is up to no good. Sincerely truly - [illegible]

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yne wv > Lepartment of Housing and Urban Devefopment (HUD)recently published a new regulation which requires mortgage Service companies to change escrow collection procedures This regulation is an amendmentto the existing Real Estate Settlement Procedures Act (RESPA} Kt applies 1b all residential loans The regulation was effective May 24 1995, for all new loans Wells Fargo Bank 1s implementmy the new regulation for each existing Joan with the next scheduled annual escrow analysis performed after May 24 1995 This provides information to assist you In understanding the impactof this change You will receive mofe information in your escrow snalysis statement What Is “escrow analysis" and why1s it changing? Escrow analysis establishes the amountthat 1s collected with eachloan payment t0 pay taxes, insurance, and other escrow nems The new HUD regulation is changing the method of escrow analysis It requires all mortgage service companies to use the "aggregate" (or “cash") analysis method Previously many service companies(including Wells Farga Bank! used the ‘single tam" for “lne item") method Will my monthly escrow paymentincrease or decrease as a result of this changa? The new methad of calculation may result in any mcreased escrow payment tor same customers, a decrease for others The exact mmpact on each customer is difficult to determine until Wells Fargo Bank completes the actual escrow analysis Your annual escrow analysis statement will reflect any changes in your monthly payment amount How will Wells Fargo Bank determine the appropriate escrow balance for my loan? With each escrowanalysis statement you will receive a projection fer the next 12 months The projection will show how we expact your escrow balance to change each month It will reflect monthly escrow deposits, anticipated disbursements of taxes msurance and other escrow bills, and will show the projected montheric balance Atleast once a year, the projected month end balance shouldfall to an assigned minimum level This is calleta cushion” Your mortgage documents, applicable state law, and RESPA guidelines establish the amount of your cushyon We will show the cushionfor your loan on your escrow analysis statement What happensif, after analysis, the escrow account has too much,or not enough funds? If there 1s too much {an overage}, we will refund to you any amount of $50 or more tf your loan is current We will retain any amountof less than $50 andspread Hf over 12 months to reduce your monthly payment If there is not enough la shattagel, we will spread the payment of the shortage amount over 12 months and add It to your monthly payment When will Walls Fargo Bank pay my escrow bills? The new HUD regulation requires mortgage service companies to pay escrow bills early enough to take advantage of any “discount” for paying early If there is mo discount period, the servicer must pay bills before a delinuency fee or penalty would be assessed in the escrow analysis the "due date”of any escrow bill 1s considered to be the month Wells Fargo Bank anticipates making the disbursement from your escrow account Whenwill ttus change go ints effect? Wells Fargo Bank 1s making the change with each regularly scheduled annual escrow analysis Under the new regulation, Wells Fargo Bank will still determine the timing of the annual escrow analysis At least one escrow analysis must be performed within each 12-month penod How do we determine how much money should ba in your escrow account? First, we do a projection of the next 12 months of escrow payments deposited to your escrow account and escrow hills anticipated to be paid out of your escrow account This projection slafts with the escrew balance which should be on deposit just before the beginning of the 12 month period (assuming that you have madeail payments duel Next, we look at the 12-month projection, and find 4 rchmpnth yeoge is feached (This low paint may be a negative balance } eo congenl Next, we compare the “low point” to the maximum cushi® amoups allowed toy yourtoanRigiow pp9 less than the cushion thea funds must be added to your escrow ac@punts Hgthe ieve wes more thiglmsshi8n, tEpes he subtracted from yaur escrow account This difference ts also added or subtracted t ie, thé “requé ce" for you escrow account at the beainomgof the 12 month penod This 1s the beginning balance for the 12-month projection as shown on your analysis statement Finally, we compare the “required balance‘ (o the actual escrow balance expected to be on depasu at the begmoing of the 12-amonth peiod 1f the actual balance is more than the required balance, then your account has an “overage” (overages of $50 or moreare refunded to youtf your loanis current, overagesofless than $50 serve to reduce your future monthly payments and are spread over the next 12 months) {t the actual batanceIs less than the required balance, then your account has @ shortage (shortages are spread over a 12 month pertadand your monthly paymentis increased by that amount) You do have the option to pay a shortagein fulll if you would rather not pay it aver 12 months After the escrow accountbalance is determined, how is the Monthly Payment catculated? To determine your monthly payment, we always start with one-twelfth (1/12)of the total amount of all escrow nemsto be paid in a year (this includes property taxes, homeowners insurance,etc , if these are escrowedfor your loan) If you had a “shortage we add another monthly amountto your payment to collect the shortage over a 12-month period If you had an “overage” of less than $50 we reduce your monthly escraw payment by spreading that overage over a 12 month period Thetotal escrow paymentis part of your monthly Payment. Your escrow analysis statement wil! show you the date when the new monthly payment takes effect Whatis a Cushion? The “cushion” 1s a minimumescrow balance which Wells Fargo Bank ts allowed te keep in your escrow account It is intended to be protection to cover unanticipated disbursements made before the horrawer's paymem's available m the escrow account The amount af the cushion depends on the wording of your loan documents, state law and the RESPA guidelines We calculate the monthly payment amount so that, sometimein the next 12 months, your escrow balance1s projected to reach a low point’ which1s equal to this cushion You shoutd see this reflected on your escrow analysis statement Hf you have further questions about your escrow analysis, catl us at (800) 288 3212, Monday through Friday, 7am to? pm Central Time NMFL #4272 (INIT) Rev 05/09/2005 Pome Qty

Return Mail Operations Page iof2 dow PO Box 14417 Statement date 06/16 /x wet bey ASE Des Moines (4 50308-3491 Loan number (b){6) Property address 1278 N COUNTY RD 900 W LOGANSPORT,IN 46947 CustomerService Yourloan has beenreferredto foreclosure. The amountto bring the account current ma; yary daily: prior to sending funds,call us for a reinstatementor payoff quote. Amatured Onhne Telephone loan requires alll balances to bepaid in full. This docs not change a sale date thatmaybe wellsfargo com 1800-868 0043 scheduled. Correspondence Fay PO Box 10335 1 866 278-1179 DCSFISDTRY 027249DCSF1S00000038680708 Des Moines IA 50306 Hoursofoperation MEETTATtteeeeeel: @ pee Mon Fn7am -8pm oye) PO Box 14591 a Des Momes IA 50306 Weaccept telecommunicationsrelay servicecalls Payment summary Balance summary Year-to-date summary Principal $9778 Unpaid principalbalance $48,822.68 Total recetved* $2,187 24 Interest $27192 Escrow balance $-280 43 Principal $375 00 Escrow $224 49 (Contact Customer Scruie for your payoffbalance) Interest** $1,103 80 Current payment 07/01/17 $594.19 Inlerest rate 6 750% Fserow $708 44 Overdue payment 02/01/17-06/01/17 $2,970 95 Maturity date 1/37 Taxes disbursed $218 38 Unpatd late charge(s) $553 52 Insurance disbursed $1,026.30 Olher charge(s) $3000 e total mg) ascludethe Unappled fonds balance from the lence sumamian, section "Tlus wformation should not beused fartax purpasat, TESou Ihavetax related questions, please consultyour lax advisor Total payment due 07/01/17 $4,148.66 Activity since your last statement Date Description Tot: 06/13 Fee Watyed 06/13 Mtgmspayment 06/09 Payment reversal 96/08 Funds Received 05/30 Paymentreversal Principal Interest Escrow ‘Other - _ Return fee$89 00 $32.95 ‘TRIAD GUARANTY INS CORP Unapplied $537 25 _Unapphed $537 25 Unapplied -8537 25 -— $537 25. Important messages ATTENTION The foreclosure process may havestarted on your nly Ifyou wantlo retain your home,please paythefull reinstatement amountowed immediately Contactus right awayto discuss the statusof your moflgage For helpful mformation onalternative repaymentoptions, go to wellsfargo.com/homeassist El proceso de ejecucion potecarta puede haber comenzadoen su propiedad,favor de Namarnosal inmediatamente Avord anyone whoasks for a fee for sgunselingor a loan modification, or asks you to signoverthe deedto your home, or to make your mortgage payments to anyone ather than Wells Mggo Home Mortgage Please detach and return wath vour naument 200 LOO NN NNN NNNNNNNNNi 666270 AWLOStISOG NNINKENNINNNA, | 20cbSpoe §=BEBSEO

Loan Number: P, Kb){6) Part 3 Escrow account projections Escrow account projections from August, 2017 to July, 2018 What we Payments to expect to Projected escrow Balance reqmred Date escrow pay out Desenption balance inthe account Jul2017 Starting balance $1,029 46 $788 65 Avg 2017 $194.78. $37 05 PMIInsurance $1,187.19 $946 38 Sep 2017 $194.78 $97.05 PMIInsurance $1,344 92 $1,104.11 Oct 2017 $194 78 $3705 PMIInsurance $1,502 65, $1,261 84 Oct 2017 $0.00 $218 38 CASS COUNTY (4)(A) $1,284 27 $1,043 46 Nov 2017 $194.78 $3705 PMI Insurance $1,442 00 $1,201.19 Dee 2017 $194 78 $97.05 PMI Insurance $1,599 73 $1,358.92 Jan 2018 $194 78 $37.05 PMI Insurance $1,757 46 $1,516 65 Feb 2018 $194.78 $3705 PM{ Insurance $1915 19 $1,674 38 ‘Mar 2018 $194.78 $37.05 PMT insurance $2,072 92 $1,832 1 Mar 2018 $0.00 §1,45600 INFARM BUREAU INS $616 92 $376.11 Apr 2018 $194.78 $37.05 PMY Insurance $774 65 $533 84 Apr 2018 $0 00 S218 38 CASS COUNTY (4)(A) ord Bia May 2018 $194 78 $3705 PMT Insurance $714 00 $473.19 Jun 2018 $194.78 $3705 PMI Insurance $871 73 $630 92 Jul2018 $394.28, $3705 PMI Insurance = $1029 46 - $788 6, Totals $2,387 36 $2,337 36 Mme me UONOL ACCROLISOUM OTTOMs Escrow accountactivity from February, 2017to July, 2017 Depostts to escrow Paymentsfrom escrow Escrow balance Date Actual Projected Difference Actual Projected Difference Deseription Actual Projected Difference Feb 2017 Starting Balance $441.06 $1,525.06 $1,084 00 Feb 2017 $373 34 $196.38 $176 96 $0.00 $37 05, ~$37-05 PMIInsurance $814.40 $1,68439 -$869 99 Feb 2017 $000 $0.00 $0.00 $37 05 $000 33705 PMY Insurance $77735 $1,684.39 -$907 04 Feb 2017 $000 $000 $000 $1,026 30 $000 $1,026.30 INFARMBUREAUINS —-$248.95 $1,684.39 $1993 94 Mar 2017 8167 55 $196 38 -$28.83 $0.00 $37.05, -$37.05 PMLInsurance “$8140 $1,843.72 -$4,98542—~ —- Mar 2017 $000 $000 $0.00 $o.00 $1,456 80 -$1,456 80 IN FARM BUREAU INS -$81 40 $38692 $468 32 Mar 2017 $0.00 $0.00 $0.00 $37.05, $0.00 $3705 PMI insurance $118.45, $386.92 $505.37 Apr 2017 $167.55 $196 38 ~$28 83 $0.00, $3705 ~$37.05 PMI Insurance $49.10 $546.25 $497.15 Apr 2017 $000 $o00 $0 00 $218 38 $227 59 ~$9.21 CASS COUNTY{4)(A) -$169.28 $318.66 ~$487 94, Apr 2017 $0.00 $0.00 $0.00 $3705 $0.00 $3705 PMI Insurance -$206 33, $318.66 -$524.99 May 2017 $000 $196 38 $196.38 $000 $3705, ~$37.05 PMIInsurance -$206.33 $47799 ~$684 32 May 2017 $0.00 $0.00 $0 00 $37.05 $000 $3705 PMLInsurance -$243 38 $4799 ~$72137 Jun 2017 $1,122.45 $196 38 $926 07 $37.05 $37.08 $0.00 PMI Insurance $842 02 3637.92 $204.70 {eshmate) Jul 2017 $224 49 $196 38 $28.11 $3705 $37 05 $000 PMI Insurance st029 46 3796.65 $232.81 (estimate) °. nen ee - ee Totals $2,055.38 $1,178 28 $87710 $1,466.98 $1,906 69 $439.71 1647 9.00 0008929 OnN2 NOTIATA

(co) preemuns tor any and all mourance required by Lender under Section 5 and (d) Mortgage Insurance premuums, if any, or any sums payable by Borrower to Lender in heu of the payment of Mortgage Insurance premiums i accordance with the provisions of Section 10 These items are called "Escrow Trems “ At origination or at any time durmg the term of the Loan, Lender may require that Commumty Association Dues, Fees, and Assessments, if any, be escrowed by Borrower, and such dues, fees and assessments shal] be an Escrow Item Borrowershall promptly furmsh to Lender all notices of amounts to be paid under this Section Borrowershall pay Lender the Funds for Escrow Items unless Lender waives Borrower’s obligation to pay the Funds tor any or all Escrow Items. Lender may waive Borrower's obligation tpay_to Lender Punds for any or all Escrow Hemsat any ume” Any sult waiver inay onlybe inwolag “In the event of Sictr waiver, Borrower shall pay directly, when arid whet payable, the amounts due tor any Escrow Items tor which payment of Funds has been watved by Lender and, it Lender requires, shail furmsh tv Lender receipts evidencing such payment within such time period as Lender may require Bonower's obligation to make such payments and tc provide receipts shall tor ail purposes be deemed to be « covenant and agreement contamed in this Security Instrument, 4s the phrase "covenant and agreement” ss used in Section 9 If Borrower 1s obligaizd to pay Escrow Items directly, pursuant (0 a waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and pay such amount and Borrowershall then he obligated under Section 9 to repay to Lender any such amount Lender may revoke the waiver as to any orall Escrow Items at any time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all Funds, and m such amounts, that are then required under this Section 3 Lender may, at any ume, collect and hold Funds m an amount(a) sufftcient to permut Lenderto apply the Funds"ath® time specitied unde RESPA Sand (b) not to exceed the maximum amounta lendet can ma. require under RESPATLender shall estimate the amount of Funds due on the basis of current data and ‘Teasonable estimates of &xpenditures of Riture Escrow Items or otherwise im accordance with Applicable Law . Soa The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity Gncluding Lender, tf Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank Lender shall apply the Fundsto pay the Escrow ltemsno later than the ume specified under RESPA Lender shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or veritying the Escrow Items, unless Lender pays Borrower mterest onthe Funds and Applicable Law permits Lender to make such 4 chitge™Unless atAgreementig madein writing or Apphcable Law requires interesttobe paid ‘éntheFunds, LenderBEpay Borrower anyinterest earningson te’Funds” BorrowéTandLender canagree in writing, however, that snterest shall be paid on the Funds Lendershall give to Borrower, without charge, an annual accounnng of the Funds as requyed by RESPA ee “IPthefeis a“Surplus of Funds held m escrow, as defined under RESPA, Lender shall account to Borrower for the excess funds in accordance with RESPA If there 1s a shortage of Funds held in escrow, as detmed under RESPA, Lender shall notify Borrower as required by RESPA, and Borrowershall pay to Lender the amount necessary to make up the shortage maccordance with RESPA, but m no morethan 12 monthly payments If there 1s a deficiency ot Funds held mescrow, as defined under RESPA, Lendershall notity Borrower as required by RESPA, and Borrowershall pay to Lender the amount necessaryta make up the deficiency in accordance with RESPA,but inno more than 12 monthly payments. Uponpayment in full of all sums secured by this Security Instrument, Lender shail promptly refund to Borrower any Funds held by Lender 4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and imposttions attributable to the Property which canattain priority over this Security Instrument, leasehold payments or inva BD stn) 2808 Page 5 of 15 Form 3015 1101

Heratha Of ataen & PU Bo 14415 Deg Moms (A L006 Mit TeperLepr tert Peres fen pa 0416/0531 Pay ges lh 16/002237 0268 2 AGRSLM 708 Suevessent date TN boat ube me) » oper v aarrese 12S 88G0 PLS LOGaate AOPT We 6360 Cuscomer S$ ive f£4 Oalne 1 Sellefetge coat i Tay 1 le ap Y Felephane 1 ro Bre Cor expendence Lowes of voGS Rosas of operat on Des Ife nes TA ROSIE Hon 1aGar 10pm WBar dpncl “17 Ps, nents PO tv 5298 Cio she 11 O0lgy We reeete «lecommaunirauont 1 lay service «as. >to dete suxy 5 Ba Balance summery re Prmerpal $7769 Unpaid nrine.. zl balance $9192042 Total recered” 35377! - Unapphed funds balarce $40/42 Puccipal 788 Interest $292 ol $2286 interest $292 & Escrow $239.79 (Contact Cmtorme Seimiee ovo pe ot valence) Escrow 5167 5 uu.ent monthly payment 02/01/14 $09 49 Interest S4oR eee a Curent monthly payment 02/01/1 $608 & Tntereatsate oe 1 etoral ay megetUssopled runds balance rotn he ~ ~ 7 ~ 7 re - . “ee bala, ec semenary secler Overdue pay inent(s) O1/01/14 $537 25 Othe: charges $30 00 Total payment cve 02/01/14 $1,176 74 After 02/16/14 ¢ late charge may apply $18 49 Acuvity since yourlast statement Deport at rs ¢ @ Dare Description *Ratal Puneipal Interest Escrow Other Ifye h equ tsor: ade cooat Lio 682 $29286 SIGTSs — __ __ cia uate: youl \ sanerror} sheer mt: suraceant 1 acon condi wots bn itted hol ay adi D> M Srey o 1 SOK

OVERVIEW: Mr. It has manygrievances with Wells Fargo high interest rates, mysteriouslate fees, refusing to set up a face-to-face meeting to discusshis foreclosure, paymentsize, etc I'm not an accountant, but when| look at the details of Mr. [ paymentsit does not seem like any of what Wells Fargo is doing 1s anything outside the bounds of a normallender-borrowerrelationship Mr.| wants usto call RESPAto talk about manyofthese issues, but RESPA isn’t an agency,it’s a law that sets out guidelines for real estate lenders.| feel bad for Mr. but | don’t think there’s anything we can do to help prevent a potential foreclosure Wecould try to explain the details of his loan better to him, but | don’t see how wecould do anything to change those details in Mr. { SUMMARYOF MR.[®X©) ISSUES: Letter 1: Wells Fargo refuses to accept a “partial payment” even though Mr. iL] claims that they have doneso since 2007. He is unable to pay for the new balance of $594.19. As a result, he is now behind on his payments. is also receiving late fees, but he claims that he sends in his payments on time. He says Wells Fargo has no proofthatheis late on his payments. Next, Mr. [¢ takesissue with theinterest rate he 1s being charged. He saysthatit is “above the going rate today” and that he does not understand how the interest rate leads to a monthly interest charge of $271.92.(I’m no accountant,but given a 6.75% interest rate and the principal he has, $270 makes several commentsthat suggest Wells Fargo wantsto raise his rate, butit’s unclear if they’ve actually said that orif he just thinks the rate is too high to begin with. seemsvery close to an appropriate number). Mr. has $48822.68 ofprincipal left to pay, and his house is appraised at $80,000 or so. He claims that Wells Fargo is “after blood” and wantsto take possessionof his house. does not know how his monthly payment was configured. Finally, Mr. says that he sent Wells Fargo a $74 check for mortgageinsurancefor June and July. He believes that if that checkis not accepted,it will show Wells Fargois acting in bad faith. Letter 2: Wells Fargo told Mr. [©] thattheir figures are determined by RESPA. Unfortunately, Mr. seemsto have mistaken RESPA to be a federal agency when itis in fact legislation that provides the frameworkforreal estate settlements. admits he does not know how the bankfigures his monthly paymentandinterest rate, only that they appear to be “quite high.” He asksusto call RESPA and askfor a “step by step” explanation of how banks “do their figuring.” Once again, he is confused on the nature of RESPA.

Healso asks us to ask RESPA whatis the best courseof actionif the bank “figures the interest rate too high” and the customer cannot pay Letter 3: This letter is about Mr. concernsabouthis foreclosure and the motives of Wells Fargo. He complains that Wells Fargo refuses to meet him in personto discuss the foreclosure, and claims that their intentionis to take over his house andsellit. He also seemsto imply that his house has been undervalued by appraisal. Finally, Mr. foreclosure process, and this is evidence that Wells Fargo has ulterior motives. claims that mortgage insurance should have beenusedinsteadof the TEXT OF LETTERS (underlined words in bold, content inside of brackets added by me): Letter 1 (7/4/2017) To Whom It May Concern: Myson Craig Lynn [¢ and [b6) D. [ET has[have] had a homeloan with Wells Fargo Bank, N.A. or Wells Fargo Home Mortgage since 2007. Then in 2017 Wells Fargo Home Mortgage started sending my mortgage paymentsback to me stating they didn’t accept partial payments. Thisis the first time they have performed such action.I’ve mailed to Wells Fargo $537.25 manytimessince 2007 and they accepted my payments: Relating to statementdate 6-16 -17 they want meto pay $594.19. Because of otherobligations I cannot pay the amount $594.19. So now they’re saying 'm behind on my mortgage paymentsplus I’m behind in paying late fees. | sent my mortgage paymentsin at a proper time period. As you know,the postalservice isn’t the best anymore. You never know whenyour letteris going to reach the destination. Wells Fargo has no concrete proof that I waslate sending in my mortgage payments. As you can see on statement date 6-16-17,I’ve paid Wells Fargo a lot of interest. Myinterestrate Is 6.75%. | believe this [is] above the going rate today. Butstill Wells Fargo is unhappywith [the rate]. The 6.75% interestis a fixed rate. Knowing Wells Fargo they probably think they can charge me 10% interest. The 6.75% interest is a yearly rate charged against the unpaidprincipal balance. How they got the monthly charge of $271.92 | don’t know. My unpaid principal balance1s $48,822.68. The appraisal on the house is $80,000+.| truly believe Wells Fargo Bank, N.A. or Wells Fargo Home Mortgageis not interested in changingthings or helping my son and | out They’re after blood, stealing my house. | don’t know how Wells Fargo figured my current payment of $594,19,

Recently, | sent Wells Fargo Home Mortgage $74 00, by check to pay for mortgage insurance for the monthsof june and July. If my check is not cashed or sent backI’tl know precisely Wells Fargo is up to no good. Letter 2 (7/15/17): Wells Fargo Banktells me they relate all their figures, escrow accounts, monthly mortgage payments,interest charged etc. to a federal governmentagencycalled (RESPA) Real Estate Settlement ProceduresAct. I don’t know how Wells Fargo Bankfigures my mortgage payments (monthly) or the interest charged (monthly).| look at the interest charged and it appearsto be quite high. Request you contact the Federal government agency and ask them what regulations are placed on banks giving out residential loans. Again the agencyis called (RESPA). Ask the agency step by step how a bankis to do theirfiguring. Ask the agency (RESPA)if the bank figures the monthly mortgage paymenttoohigh or more than the customer can handle because of other obligations what does the agency recommend. How criticalis it to obey the bank’s wishes. Letter 3 (undated): [Headerof letter]: Personal opinion[:] | have a strong belief Wells Fargo bank Is trying to force meto file bankruptcy — gamesare played — #1. 'm a veteran with a honorable discharge from the Navy. August 7" 2017I'll be 75 years old. A sad note a bankis foreclosing on my house after making mortgage payments going on ten years. #2 — Request you ask Wells Fargo bank the reason for not having a meeting in person to try to resolve the monetary problemsoutprior or before the foreclosure procedure. It appears their major goalis to take possession of the house, put the housein a sheriff's sale, and [then] they've made money.| have equity in my house. The house wasappraised for $80,000 The average houseis $100,000 today My unpaid principal balance 1s $48,822.68. What a steal — somethingis not right here. #3 If Wells Fargo Bank ts so worried about money whydidn’t they use mortgage insurance rather than foreclosure procedure. The mortgage insurance is paid by escrow account. Somethingis not right here. Other documents: There is a copy of his statement from mid-June It shows that his payment wasnot accepted and also that his loan “has beenreferred to foreclosure.” There is a copyof his escrow balance. There is a printed out page from the Wells Fargo website about RESPA.

2 L.S. DEPARTMENT OF HOLSING 4ND URBAN DEVELOPMENT iz WASHINGTON BE 20440 1979 OFFICE OF CONGRFSSION A \ND INILRGON FRNMENTAL REL 4 FIONS The Honorable Todd Rokita Member. UnitedStates House of Representatives 355 South Washington Street Danville. IN 46122-1779 Dear Representative Rokita: Thank youfor your letter on behalfof your constituent, about mortgage issues relative to his homelocated at 1278 North County Road, 900 West, Logansport, Indiana. The tollowing information 1s from the Department of Housing and Urban Development's (HUD)Office ot Housing. While HUDis sympatheticto the difficulties thar Mr. is experiencing, a search of HUDrecords revealed that he does not have a mortgage unsured by the Federal Housing Administration (FHA), whichare the only mortgages over which HUD hasdirect jurisdiction Therefoie. the Department cannot inter ene directly with the mortgage company onhis behalf. Because your constituent is apparently having difficulties paying his mortgage on time, his lender(also referred to as a mortgage servicer) should be his first call for assistance ~The telephone number and mailing address of the mortgage lender should be listed on hus monthly statement To understand the options available for getting help with his mortgageit is important to know who ownshis loan. Using a secure look-up tool, he can quicklyfind out 1f Fannie Mae or Freddie Mac, for example, is the ownerofhis foan. has access to a computer. he may check to see if Fanme Mae ownshis loanat the following link: fitps-/Avn nw Anowyouroptions com/oanlookup# To chech for Freddie Mac ownership, Mr [& ‘ant access this link: Aitps:/Avn3 freddiemac.comfoantookup/. Mr. maybe eligible for programs designed to make his mortgage moreaffordable or for other programs available exclusively to Fannie Maeor Freddie Mac bonowers. Mr may also contact a HUD-approved counseling agency. These agencies usually provide services to homeownersatlittle or no cost. and maybe ableto assist the homeownerby contacting the parties involved in the fimancial transaction, A counselor may also be able to tecommend other organizations that can be of assistance. This option may be pursued online at: hitp:/Avin hud.gov/officesMisg/th/he chhecprofl4 cfm. or bytelephone at 1-800-569-4287 (weekdays from 9:00 a.m. to 5:00 p.m.). www hod.gor espanol.hud.gos

Thope this information 1s helpful in responding to your constituent. If I can be offurther assistance, please fet me know. Sincerely. Seth D Appleton - Acting Assistant Secretary for Congressional and Intergovernmental Relations WV

e ¢ 83/29/2011 @9:34 13178388964 $03/28/2011 09:45 FAX 13178388964 TODD ROKITA 4TH DISTRICT, INDIANA 236 CANNON HOB WASHINGTON,DC 20515 (202) 225-8037 1202) 226-0544 (FAX} sora surese Cungress of the United States PLAINFIELD,IN 46168 (217) 838-0408 House of Representatives (317) 838-8984 {FAX} Washington, DG 20515 VIA FACSIMILE TRANSMITTAL (202) 768-1350 March 29, 2011 Mr. Bernard Fulton Deputy Assistant Secretary for Congressional Relations U.S. Department of Housing and Urban Development 451 Seventh Street, SW, Room 10148 Washington, DC 20410-1000 RE: Constituent, Joe Clausman,Jr. Dear Mr,Fulton: oo2 COMMITTEE ON THE BUDGET COMMITTEE ON HOUSE ADMINISTRATION COMMLTTEE ON EDUCATION AND THE WORKFORCE www toddrakita housa gav Our canstituent, Jae Clausman,Jr. has asked for aur assistance. The following narrativewill give you the relevant information with regard to his pressing and personal matter BACKGROUND: Constituent, Joe Clausman, Jr. owas and operates nursing hamesin the State of Indiana and has done so for the past thirty-five (35) years.

™ee a am " 83/2972011 @9:31 13178388964 +03/28/2011 09:46 FAX 13178388964 @oo3 In duly, 2000 Martin County Healthcare & Rehabilitation Center (MCHC), located in Loogootee, Indiana wasfinanced with a thirty (30) year HUD loan withan interest rate of 7.85%, which was an excellent rate at that time. ~ In September, 2010, Mr. Clausman decided to apply for a HUD rate adjustment underthe Lien Section 232 Program,since there would be no pre-paymentpenalty related to theinitial HUD financing. He was in contact with Bob Smaliwood, CPA VP-originations, Love Funding, tnc., who stated that the impact of obtaining a tesserinterest rate would make the Loogooteefacilities morefinancially viable as well as beneficial to HUD. However, in March, 2010, upon the recommendation of ISDH, MCHC was designated as a Special Focus Facility (SFF) due to surveys over the prior three (3) years that cited deficiencies within the scope identified as a G tag which constituted a substandard level of care. MCHC had beenrated an excellent facility the past ten (10) years under Mr. Clausman’s managementandas recently as September 20, 2007 MCHCreceiveda deficiency free survey. Subsequently Mr. Clausman has been communicating with SFF administrator, Regina Casabal, wha Operates autof the Detraitoffice. ISSUES/COMPLAINTS: 1. Mr, Clausman states that Ms. Casabal made the comment“The Facility is a not-for- profit facility isn’t it?” She made this statementafter receipt of monthly compiled financial Statements dating back to March, 2010, whichincluded the standard GAAPopinion for proprietary entities. Ms. Casabal also scheduled a conference call for December2, 2010 of which she was a no show. Mr. Clausmanfeels that Ms. Casabal lacks knowledgeof his industry and knows very little about MCHC, even after being provided with volumes of documentation and information. He also believes that Ms. Casabal is using him to educate her, not only about MCHC,but the industry in general; 2. The most concerning issue that Mr. Clausmanhas deals with a conference cail with Ms. Casabal that took place on December9, 2010. Ms. Casabal inquired about therapy provided to Medicare patients and askedif in-house therapy was provided to the residents daily. Mr. Clausman responded that all residents are assessed and therapyis provided according to each individual!’s needs. Ms. Casabal then advised Mr. Clausmanthatif he provided additional minutes of therapy it would increase the amount of payment received from Medicare and that she cauld put Mr. Clausmanin contact with a companythat could assist MCHCin doing that andall the company would charge would be a percentage of the increase in payments MCHCreceived from Medicare. Mr. Clausman was astoundedto say the least by Ms. Casabal’s comments because the actions she suggested constitued Medicare fraud and Mr. Clausman wantednopart of it. Mr. Clausman contacted Mr. Smallwood and Love Funding, Inc., the underwriters, and made them aware of Ms. Casabal’s comments during the December 9, 2010 conference call. Subsequently Love Funding,Inc. disengaged from both of Mr. Clausman’s nursing homeprojects in Loogootee, Indiana. Mr.

* 3729/2011 @9:32 13178388964 ~» 03/29/2011 09:46 FAX 13178388964 Moos Smatlwoodstated that the underwriters did not wish to proceed with the projects because Ms. Casabalindicated to them that she would not allow eitherfacility to obtain HUD approval; and, 3. Ms. Casabal continues to deny MCHCrequests for reimbursement of escrow funds related to replacementreserves. Notonlyis this action arbitrary and capricious, it has placed undue financial hardship on Mr, Clausman and hinders MCHC from making further expenditures necessary to advance the quality of care. CONSEQUENCES OF MS. CASABAL’S ACTIONS/INACTIONS: In the twelve (12} months that Ms. Casabal! has been assigned to thefacility, she has made only one recommendation, which in Mr. Clausman’s opinionconstitutes fraud. Ms. Casabalcontinues to cause Mr. Clausmantime and moneyrelated to information requests. Her most recent request is to be provided monthlyfinancial statements by the 10"of the following month which is unreasonable and contrary to prior e-mails from her asking that the monthly financial statements be provided by the 25"of the following month. Mr, Clausmanstatesthat it only makes sensethat thefacility proceed through the Lien 232 process and obtain favorable financing in order to provide additional available funds of approximately $5,000.00 per monthbackinto the facility and, in turn, enhance the viability of the existing HUD project. The delay in Ms. Casabal’sactions are costing Mr. Clausman about $10,000.00 per month, and may we addthat since Mr. Clausman’soriginal request the rate has risen 1%. Weaskfor yourhelp in bringing about a satisfactory resolution to Mr. Clausman’s situation as soon as possible. Please see attached relevant correspondence,e-mails, end rating charts having to do with MCHC. Sincerely, Lucite Constituent Case Managerfor US Congressman Todd Rokita (IN-04) 2680 E. Main St, Sulte 332 Plainflold, In 461.68 {317} 838-0404 - phone (317) 838-8964 fax [email protected]

93/29/2011 69:32 13178388964 ~ 03/29/2011 09:46 FAX’ 13178388964 @ioos Congressman Todd Rokita U.S. House of Representatives Representing Indiana’s Fourth Congressional District }cordance with the 1974 Privacy Act (b)(6) NAME:_| DATE OFBIRTH __| (b)(6) ADDRESS; Ne To, a crry: FabsehAfoesS _ STATE: IN ziP:_ YC %/0 EMAIL ADDRESS: ER EMAIL COMMUNICATIONS? Yes No Gi) Oo) DAYTIME PHONE: 944-3340 EVENING PHON! SOCIAL SECURITY NUMBER: CLAIM ORSERIAL NUMBER: PLEASE BRIEFLY DESCRIBE THE EXACT NATURE OF YOUR PROBLEM, AND WHAT YOU WANT CONGRESSMAN ROKITA TO DO TO HELP YOU. {PLEASE SEND COPIES OF ANY RELEVANT INFORMATION — DO NOT SEND ORIGINALS (Please use back of form orattach additfonal pagesIf more space needed] __Séé Arracit.n KE Hobuas vet Hap Are you represented by an Attorney: YES if yes, please jist your attorney’s name and address: ‘THE PRIVACY ACT OF 1974 PROHIBITS THE GOVERNMENT FROM REVEALING ANY INFORMATION FROM PERSONAL FILES OF INDIVIDUALS WITHOUT THE EXPRESS PERNUSSION OF THE PERSON INVOLVED. DISCLOSURE OF PERSONAL RECORDS TO A MEMBER OF CONGRESS WHO IS ACTING ON BEHALF OF THE CONSTITUENT IS PROHIBITED, UNLESS THE INDIVIDUAL TO WHOM THERECORD PERTAINS HAS CONSENTED. I, THE UNDERSIGNED, HEREDYAAUTHORIZE THE OFFICE OF US REPRESENTATIVETODD ROKITA TO RECEIVE INFORMATION IN MYFILE PERTINENT TO Date;, 3 2 PLEASE RETURN TO THE PLAINFIELD DISTRICTT OFFICE 2680 E. Main St. Suite 332 Plainfield, in 46163 (317) 238-0404

3/29/2011 89:35. 13178388964 ~03/29/2011 09:50 FAX 13178388964 Mori - * [ Wa CLAUSNSTEHT March 15, 2011 CorsifiedPrat, Aecavnnets & Coneutcats Certified Mail 7009 2250 0001 5790 9413 Mr. Joseph Tuczak US Department ofHousing and Urban Development Office ofHealthcare Programs 77 W. Jackson Blvd. Chicago, IL 60604 RE: Martin County Realty, LLC Loan . Borrower Name: Hoosier Realty, I, LLC Dear Mr. Tuczak: Tam writing to inform youof issues surrounding a HUD financed skilled nursing facility of which I am the sole member ofthe LLC referred to above. I also have a CPA firm, Clausman & Associates CPA's and Consultants. Clausman & Associates clients are 95% healthcare. Martin County Healthcare & Rehabilitation Center (MCHC)wasfinanced with a HUD Joan on July 21, 2000 with terms of30 years and an interest rate of7.85%, That was a good rate at that time, In September, 2010, I decided to apply for a HUD rate adjustment (Lien Section 232 Program), since there would be no prepayment penalty related to the initial HUD financing effective September 1, 2010. Tn March of2010 I wasinformed that Martin County Healthcare & Rehabilitation Center was designated by CMS upon the recommendation ofthe Indiana State Department ofHealth GSDB) as a Special Focus Facility (SFF). A facility is designated as such due to surveys over the previousthree years that cited deficiencies with scope and severity that were identified as a G tag which constitutes a substandard level ofcare. From my involvement with healthcare facilities through consulting and managing facilities in Indiana the past 35 years, I understand that facilities often times receive State surveys better than the facilities deserve and other times worse than they deserve. History shows that MCHC has been an excellent facility the past ten years under the current ownership and management. In the early years under my management, MCHChadthe best CMS report card among al! skilled nursing facilities in the State ofIndiana. As recent as September 20, 2007 MCHCreceived @ deficiencyfree survey. 180 Easy 1th Street Siu B08 Carmel, NAGI BET#RAd+3110 Faxee ad aad

@3/29/2811 9:34 13178388964 _ 03/29/2011 09:50 FAX 13178388964 o12 Mr. Joseph Tuczak . March 15, 2011 Page Two In conversations prior to committing to moving forward with obtaining refinancing / HUD Tate adjustment through the Lien 232 Program, I asked Bob Smallwood, CPA VP-Originations, Love Funding,Inc. if the fact MCHC currently had been designated an SFF would create a problem asfar as obtaining HUD approval. Mr. Smallwood after discussions with his underwriters assured me that it would not be a problem for MCHCortheir sister facility, rents Norsing Center, providing the facilities met the debt service coveragerequirements. Vf ould mak: fia Seay abla be hereto tip eaalt Tntura, we decided to proceed and wrate checks to Love Funding, Inc, in the amounts of$10,370 forMCHC and $10,350 forLoogootee Nursing Centerfor the cost ofthe PCNA, legat fees and casts plus a processing fee on August 13, 2010, After numerous hours ofwork and various correspondence with representatives ofLove Funding, Inc. and attomeys and engaging Meridian Title Corporation onNovember 18, 2010 ta perform a Title search at the request ofLove Funding, Inc., during the Lien 232 process, representatives ofLove Funding, Inc. engaged in correspondence and conversations with Regina Casabal, Financial Analyst, US Department ofHousing and Urban Development. Ms. Casabal ‘was assigned to MCHCsince the facility was designated an SFF. On December 9, 2010 Mr. Smaltwood, Love Funding, Inc. arranged 2 conference call with Ms. Casahal and meat 3:45 pm. that day. Thad previously provided a voluminous amount ofcorrespondence to Ms. Casaba! and participated in conference calls with her and found her to be most abrasive and she talked down to me and the Facility, ofwhich I take offense. I felt tike she very much lacked knowledge ofour industry and knew very little about MCHC after I had provided her with volumes ofinfommation. Mr, Smallwood, Love Funding, Inc.indicated that he also felt like she was not prepared when he had scheduled calls with her. She also scheduled a conference call on December 2, 2010 ofwhich she was a no show. felt like she was using me to educate her not about MCHCbut the industry in general. During the conference call I farther educated Ms. Casabal about the industry and MCHCin particular and addressed any concerns she brought up. But during the call she made two comments which were very disturbing and further demonstrates ber lack of knowledge about MCHCafter being assigned the MCHCcase. They are as follows: First Issue #1, Ms. Casabal made the commentthat "The Facility is a not for profit facility isn't it?" This comment comes after receiving monthly compiled financial statements dating back to March, 2010 that included the standard GAAP opinionfor proprietary entities. Scopady Janne#2, and most concerning sheinquired about therapy. providedto Medicare

@3/29/2011 89:36. 13178388964 .03/28720)1 O9:51 FAX 13178388964 WMo13 Mr. Joseph Tuezak March 15, 2011 Page Three Twas astounded by her coments and contacted Mr. Smallwood Soewng «our conference On the morning ofDecember 15, 2010 I had a conference cail with Mr. Smallwood and Love Funding, Inc. underwriters and made the underwriters aware ofMs. Casabel's comments madein the conference calf held December 9, 2010. Subsequently, Love Funding disengaged from both facilities projects and sent us a check made out to each facility in an amount sent to them to start the projects less the cost ofthe PCNA. Mr. Smallwood, Love Funding, Inc. stated that the underwriters did not want to proceed. with the project because Ms, Casabal indicated that she would notallow either facility to obtain HUD approvat. I purchased my first skilled nursing facility in 1984 in Michigan City, Indiana and took overa facility that had a probationary license and turned it around almost immediately. Since then Ihave owned and operated several facilities in the State ofIndiana and consulted with in excess of 100 healthcare facilities i n the state. J take pride inwhat these facilities|have accomplished. L constitute and I willnenever er succumb to take such measures. Iam appalled by her comments. On February 15, 2011, I along with the MCHCfacility administrator and director of nursing met with Ms. Kimberly Rhoades, Director ofthe Long Term Care Program, Indiana Department ofHealth and other upper management representatives within her department. At that meeting Ms. Rhoades informed us that the SFF designation is a new program with HUD. She further stated that she was required at the time to designate three sidiled nursing facilities in the State as SFF's and that as ofFebruary 15 she has been instructed by HUD ta expand that mumber to four facilities. She recognizes that MCHC is a good facility and that she hadjust five skilled nursing facilities in the MCHCarea to choose from. She said "There were several skilled nursing facilities ia Lake County, Indiana she could have chosen, but that would have put an excessive workload on the ISDE. survey team in that area. Intum, she choseMCHC in southern Indiana since that ISDH survey team could manage the additional survey required by being designated an SFF. Ms. Rhoades was very understanding and has offered assistance towards advancing MCHCto an improved status from the SEF designation.

@3/29/2011 89:37. 13178388964 +03/29/2011 09:51 FAX 13178388964 Mora Mr. Joseph Tuczak March 15, 2011 Page Four ‘Thisbringsmetoto Issue #3, Mg. Casabal continuesto deny theMCHC requests for In the almost twelve months that MCHChas been designated as a SEF and Ms. Casabal has been assigned to the Facility, she has made only one recommendation to the Facility and that recomendation in opinion constitutes fraudulent However, she has and continues to cause us time and money related to her requests ofinformation that bas not constituted anything toward the advancement ofservices or care provided at MCHC. Her most recent request is that ‘we provide her monthly financial statements by the 10th ofthe following month which is most unreasonable and contrary to previous emails from her asking that they are provided by the 25th ofthe following month. Yau don't need to be a CPA for the past 30 years to realize that providing fairly stated financial statements within 10 days from the end ofa report period is not achievable due to the fact it is virtually impossible to obtain an accurate recording ofaccounts payable on an accrual basis since many ofthe invoices for expenses incurred in the report period are not available by the 10th ofthe month following the report period. In closing it only makes since that this facility proceed through the Lien 232 process and obtain more favorable financing which will provide additional available funds ofapproximately $5,000 per month to put back into the facility and inturn, enhance the viability ofa HUD project that already exists. Thefollowing are details ofthis existing HUD project: Martin County Realty, LLC 313 Poplar Street Loogootee, IN 47553 Martin County, Indiana Loan (YJ Borrower Name: Hoosier Realty D1, LLC Original Loan Amt.: $2,371,500 Current Loan Apnt.: $2,059,417 Current Interest Rate: 7.85% Note: The anticipated Lien 232 Project amortization is 20 to 21 years. Inturn, we are 0 requesting to increase the existing amortization period.

@3723/201 1 @9:37 13178388964 +03/29/2011 09:52 FAK 13178388964 Bois Mr. Joseph Tuczak March 15, 2011 Page Five T have enclosed for your information a copy ofa letter sent to Bill Lammers, Acting Director ofthe HUD Section 232 Program, ofwhich I have not yet received a response. Ifyou would like me to provide you ary further information, please contact me. I anxiously awaittyour response and appreciate any recommendations or guidance you can provide. Joseph R. Clausman, Jr. IRC/jka Enclosure badlir

03/29/2011 99:37 13178388964 » 03/28/2011 09:52 FAX 13178388964 hy Mois Martin County Realty, LILC (d/b/a Martin County Healthcare & Rehabilitation Center) 1980 E. 116th Street, Suite 105 Carmel, IN 46032 (317) 844-3110, Fax (317) 844-3294 March 10, 2011 Certified Mail 7009 2250 0001 5790 9376 Ms Regina Casabal Financial Analyst US Department of Housing and Urban Development Office ofInsured Health Care Facilities 477 Michigan Avenue Detroit, MI. 48226 RE: Martin County Realty, LLC Loan Number’)©) Dear Ms Casabal. Wehave enclosed the following information per your latest request: 1. Copyofthe internal financial statements for the one and twelve months ended December 31, 2010. 2. Copyof the internal financial statements for the month ended January 31, 2011. 3. Copy ofthe census detail for December 2010 4. Copyofthe censusdetail for January 2011. 5. Copy ofthe December 14, 2010 survey and plan of correction. 6 Copy ofthe follow up survey and plan of correction. 7. Copy ofpaper complianceletter dated February 23, 2011 related to December 14, 2011 survey.

2329/2011 99:38 03/29/2011 09:52 FAX 13178388964 - tye 13178388964 @o17 Ms. Regina Casabal March 10, 2011 Page Two TheState received erroneousinformation from the surveyorsrelated to staffing hours which caused the dropin star rating from 4 stars to 1 star in the area ofstaffing and caused the drapfrom 2 stars to 1 star overall, accordingly. Actually, our nursing hours workedperpatient day have increased rather than decreased. We have provided the correct staffing information to the State directly which should correct the error. Your continued refusal to process our request for reimbursement of escrow fundsis putting an undue financial hardship on the Provider. Inturn, please expeditiously process our previous request. Sincerely, Josepi{ R. Clausman, Jr. IRC/ika Enclosures ce: Grover Davis, Esq.

G3v29/2011 9:34 13178388364 903/29/2011 09:52 FAX 13178388964 Px 018 Yanuary 6, 2011 CLASASSOC CortiftedPubleedevoraanny e& Cansydenurts, eftified Mail 7009 2250 0001 $790 9284 Mr. William J. Lammers, CPA, FACHE Health Systems Advisor/Acting Director Section 232 Program HUD Office ofInsured Health Care Facilities 45) 7th Street SW, RM 9224 Washington, DC 20410 Dear Bill: It's been awhile since we met at HFMA in Indiana and since you worked at Crowe Chizek and later at Sisters of St. Francis in Mishawaka. For that matter is was some time agothat I worked for Ernst & Emst and Kimmerling Myers & Co. before going out on my own and starting Clausman & Associates CPA's and Consultants. As you may or may not be aware Clausman & Associates clientele is 95% healthcare related and we now spend the majority ofour time managing my investments in the healthcare field, which brings me to the point ofcontacting you. Lown twoskilled nursing facilities in Loogootee Indiana that were financed with HUD Joans on July 21, 2000 with terms of30 years and an interest rate of7.85%. That was a goad rate at that time, In July 2010after being contacted on numerous occasions by various lenders, including Love Funding, Inc. in Cleveland, I decided to move forward and obtaim a HUD rate adjustment (Lien Section 232 Program), since there would be no prepaymentpenalty related to the initial HUD financing effective September 1, 2010, © In March of 2010 1 was informed that one ofthe facilities, Martin County Healthcare & Rehabilitation Center (MCHC) was designated by CMS uponthe recommendationofthe Indiana State Department ofHealth (ISDH) as a Special FocusFacility (SFF). A facility is designated as such due to surveys over the previous three years that cited deficiencies with scope and severity that were identified as a G tag which constitutes a substandard level ofcare. As weboth know from ourinvolvement with healthcare facilities through consulting and managingfacilities in Indiana, thatfacilities often times receive State surveys better than the facilities deserve and other times worse than they deserve. History shows that MCHChas been an excellent facility the past ten years under the current ownership and management. In the early years under my management, MCHC had the Best CMSreport card amongall skilled nursing facilities in the State ofIndiana, As recent as September 20, 2007 MCHCreceived a deficiency free survey. S980 Bont (16th Steect Sutte 4103) Carmel, (N 46032 3171644-3110 fnxihaan-32g4g

03/29/2011 @9:38 13178388364 , 7 *03/29/2011 09°53 FAX 13178388964 ois Mr. William J. Lammers, CPA, FACHE January 6, 2011 Page Two That being said, in March 2008 MCHChada change in Director ofNursing (DON). MCEChired an individual who was a SOOH surveyorin the area that MCHICis located in anticipation ofcontiquing to provide the quality ofcare that had been provided for many years ‘with the continued care that residents in the area had learned to expect and desire from MCHC. Thisindividual, according to her previous peers, whom with she worked for 16 years failed miserablyifone isjudged based on the subsequent survey. The survey conducted in October 2008 included many cited deficiencies that had to be addressed. Obviously, I expected much better results. Intum, six monthsafter hiring the DON whopreviously was a SDOHsurveyor, management made another change in that position andthe cited deficiencies were addressed through the Facility's plan ofcorrection and corrective actions were taken and the Facility was placed back into compliance. In September 2009 MCHChad their annual survey after the Facility reported ta the SDOH reportable incident, where the pharmacy, which a particular resident chose to fulfill her pharmacy needs, continued tofill and deliver a prescription (antibiotic) well beyond the ten day time period prescribed by the resident's physician. This was discovered by the Facility nursing staffand promptly reported to the SDOH. However, this incident was cited by the SDOH surveyors during their survey and resulted in a partially extended survey. Although the pharmacy acknowledged fauit for the incident through their reimbursement ofthe expense ofthe prescription to MCHC,the Facility has paid many times over for the mistake through civil money penalty assessed by CMSrelated thereto, decreases in Medicaid rates associated thereto and the incident's contribution towards placingMCHC in SFF status as a result an undesirable CMS report card score associated therewith. Fast forward to April 2010, MCHC hired a new DON and subsequently in June 2010 the Facility received their next SDOH survey. The Facility was commended by the surveyors regarding the perceived improvementand cited only two deficiencies. One ofthe deficiencies was the Facility staffing schedule posted in the facility did not include the Facility name. Obviously that was quickly remedied at the time the SDOH surveyor brought it to managements attention. However, the other cited deficiency related to an incident the Facility reported to SDOH in which a certified nursing assistant (CNA)transferred a resident fram her wheelchair to the chair in her room withoutthe assistance ofanother CNA or nurse. The CNA admittedly knew the resident ‘was a two person assist resident yet ignored that she required a two person assist in performing the task and inturn, the resident experienced actual harm and therefore the Facility was cited for such and received a G tag associated with the cited deficiency. The Facility had provided training and inservices to the CNA regarding proper protocol and procedures required to transfer the resident but the CNA knowingly ignored the required procedures and did not comply with such. The Facility dismissed the CNA from their employment and reported the CNAtothe State licensing authorities.

‘ye EES SS EF2 G3/2972011 99:39 13178388964 03/28/2011 09:53 FAX 13178388964 io20 Mr. William J. Lammers, CPA, FACHE Jaruary 6, 2011 Page Three Now,with the aforementioned being said, MCHChas and continues to makestrides to improve the Facility's report card score as evidenced by the Facility's improved "Overall" CMS star rating from 1 to 2 stars and "Nursing HomeStaffing” from 3 to 4 stars while maintaining a 4 out of 5 star rating in the area of "Quality Measures". In conversationsprior to committing to moving forward with obtaining refinancing /HUD rate adjustment through the Lien 232 Program, I asked Bob Smallwood, CPA VP-Originations, Love Funding, Inc. ifthe fact MCHCcurrently had been designated an SFF would create a problem as far as obtaining HUD approval. Mr. Smallwood after discussions with his underwriters assured me that it would not be a problem for MCHCortheir sister facility, Loogootee Nursing Center providing the facilities met the debt service coverage requirements. He stated that the impact would make the Facility more financially viable and be beneficial to HUD as well. Inturn, we decided to proceed and wrote a check to Love Funding, Inc. in the amount of$10,370 forMCNC and $10,350 for Loogootee Nursing Center for the cost ofthe PCNA, legal fees and costs plus a processing fee on August 13, 2010. After numerous hours of work and various correspondence with representatives ofLove Funding, Inc. and attorneys and engaging Meridian Title Corporation on November 18, 2010 to perform Title search at the request ofLove Funding, Inc., during the Lien 232 process, representatives ofLove Funding, Inc. engaged in correspondence and conversations with Regina Casabal, Financial Analyst, US Department ofHousing and Urban Development. Mr. Smalhwood informed me that Ms. Casabal in private conversations on more than one occasion made comments that she was considering recommending placing another management agent inMCHC. Obviously I vehemently oppose that; however she had not made such a comment to me. On December 9, 2010 Bob Smallwood, Love Funding, Inc. arcanged a conference call with Ms. Casabal and myselfat 3:45 pm. that day. Thad previously provided a voluminous amountof correspondence to Ms, Casabal and participated in conference calls with her and found her to be most abrasive and she talked down to me and the Facility ofwhich I take offense. I felt like she very much lacked knowledge of our industry and knew very little aboutMCHC after I had provided her with volumes ofinfonnatioa. Bob Smallwood, Love Funding, Inc. indicated that he also felt like she was not prepared when he had scheduled calls with her. She also scheduled a conference call on December 2, 2010 ofwhich she was a no show. felt like she was using meto educate her not about MCHCbut the industry in general. During the conference call I firther educated Ms. Casabal about the industry and MCHCin particular and addressed any concerns she brought up. But during the call she made two comments which were very disturbing and further demonstrates her lack ofknowledge about MCHCafter being assigned the MCHC case. They are as follows: First, Ms. Casabal made the commentthat "The Facility is a not for profit facility isn't it?" This comment comes after receiving monthly compiled financial statements dating back to March 2010 that included the standard GAAP opinion for proprictary entities.

83/29/2011 89:40 ' 13178388964 » 03/29/2011 09:54 FAX 13178388964 Moz Mr.William J. Lammers, CPA, FACHE January 6, 2011 Page Four Secondly, and most concerning she inquired about therapy pravided to Medicare Tesidents. She asked ifwe provided therapy in house andifthe residents received therapy everyday. I indicated that the residents are assessed and based on the assessment, therapyis provided accordingly, Ms, Casabal then further stated “Ifyou provide more minutes oftherapy it will increase the amount of payment you would receive from Medicare and that she could put us in contact with a company that could assist MCHCin doing that andall they would charge is a percentage ofthe increase in payments MCHC would receive from Medicare." T was astounded by her comments and contacted Mr. Smaliwoodfollowing our conference call and stated to him that the actions she recommended constitute Medicare fraud and I nor MCHC would have any part ofsuch. Onthe moming ofDecember 15, 2010 I had a conference call with Mr. Smallwood and Love Funding, Inc, underwriters and made the underwriters aware ofMs. Casabal's comments made in the conference call held December 9, 2010. Subsequently, Love Funding disengaged from both facilities projects and sent us a check made out to each facility in an amount sent to them to start the projects less the cost ofthe PCNA. Bob Smalhwood, Love Funding, Inc. stated that the underwuiters did not want to proceed with the project because they didn't believe Ms. Casabal would allow either facility ta obtain HUD approval because MCHCis designated as SFF and both facilities are under the same management. Bill, I write to you for your input and suggestions as to where we go from here. I have spent a significant amount offunds with Love Funding, Inc. and thetitle company plus numerous hours oftime and other cost to obtain aHUD rate adjustment for these twofacilities. The followingis a list ofinformation previously provided to Love Funding, Inc. for each Provider: 1. Compiled Financial Statements for 2007, 2008, 2009 and January 1, 2010 through September 30, 2010. 2. Audited financial statements for the twelve months ended Jume 30, 2008, June 30, 2009 and June 30, 2010. 3. SDOH Surveys for 2007, 2008 and 2009. 4. Operating Agreement 5. Management Agreement

Q3-2972811 49:40 13178388964 ' *03/29/2011 09:54 FAX 13178388964 (qo22 Mr. William J, Lammers, CPA, FACHE January 6, 2011 Page Five 6. Facility License 7. Original Title policies dated July 21, 2000 8. Certificate ofsurvey dated July 6, 2000 andrelated copies ofthe ALTA/ACSM Land Title Survey dated July 6, 2000. 9. Insurance Policies andsix year Loss History 10. Original Mortgage Note 11. Consent ofMemers/Resolution from Martin County Realty, LLC and Loogootee Realty, LLCto obtain a loan from Love Funding Corporation, the FHA Mortgagee. 12. Correspondence regardingcritical reapairs, non-critical reparis and owner-elective repairs as the result ofthe PCNA inspection performed by Steve Kaskey, Dominion Due Diligiency Group on September 21, 2010, 13. Verification ofMortgages from Midland Loan Services, Inc. 14. Copy ofTBO commitmentfor both projects. 15. Traiting 12 month trial balance ofrevenue and expenses for the period October 1, 2009 through September 30, 2010, 16. Data Certification with attached census breakdown by month for the years 2007, 2008, 2009 and January 1, 2010 through September 30, 2010. 17. Certified answers to Section 232/223 Questions with attachments. 18. Signed Mortgagor Consolidated Certifications. 19. Signed certifications ofno pending orthreatened claims against the professional liability insurance. 20. Various correspondence sent to Regina Casabal, HUD. I purchased my first skilled nursing facility in 1984 in Michigan City, Indiana and took over a facility that had a probationary license and tured it around almost immediately. Since then T have owned and operated several facilities in the State ofIndiana and consulted with in excess of 100 healthcare facilities in the state. I take pride in what these facilities have accomplished, I

83/29/2011 a9: 48 13178388964 03/29/2011 09:55 FAX 13178388964 @o23 Mr. William J. Lammers, CPA, FACHE January 6, 2011 Page Six would have never expected a representative ofHUD to recommendactions that in my opinion constitute fraud, and J will never succumb to take such measures. I am appalled by her comments. In closing it only makes since that these facilities proceed through the Lien 232 process and obtain more favorable financing which will provide additional available funds of approximately $5,000 per month to put back into the facilities and inturn, enhance theviability of a HUD project that already exists. The followingare details ofthe existing HUD projects: Loogootee Realty, LLC Martin County Realty, LLC 12802 EB, US Hwy 50 313 Poplar Street Laogoatee, IN 47553 Loogootes, IN 47553 Daviess County, Indiana Martin County, Indiana KG) DO. Loan Loan 4 e) BorrowerName: Hoosier Realty 0, LLC Borrower Name: Hoosier Realty 01, LLC Original Loan Amt. $2,320,000 Original Loan Amt: $2,371,500 Current Loan Amt.: $2,015,128 Current Loan Amt.: $2,059,417 Current Interest Rate: 7.85% Current Interest Rate: 7.85% Note: Theanticipated Lien 232 Project amortization is 20 to 21 years. Inturn, we are not requesting to increase the existing amortization periad. Thavealso enclosed copies ofvarious correspondence and documents mentioned herein for yourreview and convenience. Bill, ifyou would like me to provide to you any further information referred to herein, please don't hesitate to ask. I anxiously await your response and appreciate any recommendations or guidance you can provide. . Sincerely, Joseph R. Clausman, Jr. TRCijka Enclosures oad32

——— ok, *Bavesvedii Bo:4i 1317e3e8964 ™03/29/2011 09°55 FAX 13178388964 . @io24 Medicare.gov - Nursing Home Compare - Select Nursing Homes Page 1 of 1 Step 2: Choose Nursing Home to Compare Icon Legend Special Facus Facilities (SFF)} are nursing homesthat have a history of persistent poor quality of care. These nursing homes have been selected for more frequent Inspections and monitoring. To learn more, visit the CMS Certification & Comptiance website. a — ess $ Chooseup to 3 nursing homes to [Compare Nursing Home Name and Overall Health Nursing Quality Program Number af Type of General Information > Rating Inspections Home Measures /Participation Certified Ownership Staffing Beds {WhatIs this?]| [What Is this?] [What fs this?] [What is this?) [Whatis this?] [ MARTIN COUNTY HEALTHCARE : i *% { ww e { eee Medicare 62 Far profit - SREHABILITATION CENTER 4s ourof LoutofS ioutofs 4autofS and Corporation ore stars stars | stars | stars Medicaid 313 POPLAR STREET 1 | LOOGOOTEE, IN 47553 : (812) 295-4433 { Resident Council | | | Mapping & Directions i i | i H | © Choose up to 3 nursing homes to http://www.medicare.gov/NHCompare/Include/DataSection/Questions/HomeSelect.asp 3/2/2011