Notes to SEFA
Title: USDA Rural Rental Housing Loan
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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Lavender Hollow LLC entered into a Rural Rental Housing Loan in May 2011 for the preservation of a 22-unit apartment complex which was assumed by OPAL Community Land Trust. The note bears interest at 4.625%, is payable in monthly subsidized installments of $1,796 and matures June 2041. As of December 31, 2023 the loan balance is $775,161.
Title: Self-Help Homeownership Opportunity Program Loans
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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
OPAL Community Land Trust entered into two SHOP loans ($30,000) in 2019, one in 2020 ($15,000), and one in 2021 ($15,000) with Community Frameworks. The notes bear no interest and are forgivable after ten years if compliance requirements are met.