Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity ofInterfaith Housing Corporation, HUD Project No. 073-11380, Project B, and is presented on the accrualbasis of accounting. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amountspresented in this schedule may differ from amounts presented in, or used in the preparation of, the basicfinancial 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 $346,140 (46% 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, originally for $3,082,600, provides for monthly payments of $17,329, includinginterest at 5.88% per annum through May 2044. In addition, monthly deposits for insurance and debtservice reserves are required. This note is collateralized by real estate and a security interest in allassets and income of the Corporation. The balance of the mortgage at June 30, 2022 was $2,553,890.