Notes to SEFA
Title: Note D - Non-Cash Awards
Accounting Policies: Note A - Basis of Presentation:
The accompanying schedule of expenditures of federal awards includes the federal award activity of Housing Forward and Subsidiaries under programs of the federal government for the year ended December 31, 2023. 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 Housing Forward and Subsidiaries, it is not intended to and does not represent the financial position, changes in net assets, or cash flows of Housing Forward and Subsidiaries.
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: Housing Forward and Subsidiaries did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Housing Forward and Subsidiaries did not receive any federal non-cash awards during the year ended December 31, 2023.
Title: Note E - Loans or Loan Guarntees
Accounting Policies: Note A - Basis of Presentation:
The accompanying schedule of expenditures of federal awards includes the federal award activity of Housing Forward and Subsidiaries under programs of the federal government for the year ended December 31, 2023. 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 Housing Forward and Subsidiaries, it is not intended to and does not represent the financial position, changes in net assets, or cash flows of Housing Forward and Subsidiaries.
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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: Housing Forward and Subsidiaries did elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
In 2023, a loan of $6,464,535 was received from the U.S. Department of Treasury under Assistance Listing Number 21.027, passed through the Cook County, to purchase a fixed emergency shelter. The note requires no monthly principal or interest payments and the debt is fully forgiven in November, 2055 provided the Organization does not sell or transfer the property, change its use, as defined in the agreement, or fail to comply with the covenants, conditions and provisions contained in the mortgage, within the 30-year term.
In 2023, a zero-interest loan of $995,432 was received from the U.S. Department of Housing and Urban Development under Assistance Listing Number 14.239, passed through Cook County, to purchase a fixed emergency shelter. As of December 31, 2023, the Organization has drawn $472,205 of the available funds on the loan. No principal payments are due during the construction phase and then annual principal payments due in the amount of $9,500, only to the extent the Project has available cash flow after its payment of the required debt service payments to the IHDA loan. The maturity date of the loan is thirty years from the date of issuance of a certificate of occupancy of the residential building. The note is collateralized by a junior mortgage on the Project’s property and assignment of rents and leases.