Notes to SEFA
Title: Loan/Loan guarantee oustanding balance
Accounting Policies: 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of CAAP Housing, Inc. (d.b.a. Emma O. Johnson Homes), HUD Project No. 073-11685, 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 this contract totaled $258,214, or 64%, of net rental revenue for the year ended December 31, 2023. Cost Principles Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited to reimbursement.
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.
2. MORTGAGE PAYABLE The mortgage note is in the amount of $2,182,600. The term of the loan is 35 years. The mortgage loan is evidenced by a mortgage loan agreement. The monthly installments for principal and interest are $8,584 with a maturity date of May 2048. Interest is being charged at 3.15%. The loan is subject to certain terms and conditions. The balance of the mortgage at December 31, 2023 was $1,753,046.