Notes to SEFA
Title: Loan/Loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Interfaith Housing Corporation, HUD Project No. 073-11380, Project B, and is presented on the accrual
basis of accounting. The information in this schedule is presented in accordance with the requirements of
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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 REVENUE
Residents in this facility are billed a monthly rental charge. These charges are recognized as income
when earned. Revenue is recorded for each month a housing unit is available for occupancy. Amounts
attributable to employee housing units and vacancies are charged to the appropriate accounts in
accordance with HUD provisions.
The Corporation also receives housing assistance payments from HUD which are also recognized as
income when earned. Rental income from the HAP Contract totaled $339,555 (45% of net rental revenue)
for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the 10% de minimis cost rate because the guidance under Part 200.414 Indirect Costs does not apply.
The mortgage note, originally for $3,082,600, provides for monthly payments of $17,329, including interest at 5.88% per annum through May 2044. In addition, monthly deposits for insurance and debt service reserves are required. This note is collateralized by real estate and a security interest in all assets and income of the Corporation. The balance of the mortgage at June 30, 2023 was $2,494,528.