Notes to SEFA
Title: Loan/Loan guarantee outstanding balances
Accounting Policies: Note A: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of High Street Homes, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of High StreetHomes, Inc., it is not intended to and does not present the financial position, changes in assets, or cash flows of High Street Homes, Inc. Note B: Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note C: Indirect Cost Rate: High Street Homes, Inc. has elected not to use the 10% de minimis cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Supportive Housing for Persons with Disabilities (14.181) - Balances outstanding at the end of the audit period were $1,366,100. Note D: Capital Advance - HUD The Project entered into a capital advance agreement with HUD to assist in financing the project under Section 811 of the National Affordable Housing Act and received a capital advance of $1,366,100. The capital advance is secured by a mortgage on the property. The capital advance does not bear interest and is not required to be repaid so long as the housing remains available to eligible very low-income households for 40 years beginning in September 2009. Under the terms of the capital advance agreement, any default would result in HUD billing the Project for the entire capital advance outstanding.