Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity ofBlackford-Grant Housing Authority, Inc. (d.b.a. Carey Court Apartments), HUD Project No. 073-11687,and is presented on the accrual basis of accounting. The information in this schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Therefore, some amounts presented in this schedule may differ from amounts presented in,or used in the preparation of, the basic financial statements.RECOGNITION OF RENTAL REVENUEResidents in this facility are billed a monthly rental charge. These charges are recognized as incomewhen earned. Revenue is recorded for each month a housing unit is available for occupancy. Amountsattributable to employee housing units and vacancies are charged to the appropriate accounts inaccordance with HUD provisions.The Corporation also receives housing assistance payments from HUD which are also recognized asincome when earned. Rental income from the HAP Contract totaled $96,147 (67% of net rental revenue)for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the 10% de minimis cost rate because the guidance under Part 200.414Indirect Costs does not apply.
The mortgage note is in the amount of $972,000. The term of the loan is 35 years. The mortgage loan isevidenced by a mortgage loan agreement. The monthly installments for principal and interest are $3,944with a maturity date of July 2048. Interest is being charged at 3.37%. The loan is subject to certain termsand conditions, including prepayment penalties during the first ten years of the mortgage. The balance ofthe mortgage at June 30, 2022 was $820,643.