Title: NOTE 2 - MORTGAGE PAYABLE - FEDERAL FUNDS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Milford Housing Development Corporation and Affiliates, 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 (CFR) 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 the Corporation, it is not intended to and does not present the Corporation’s financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
USDA - RD: Long-term debt instruments were provided by RD pursuant to its Rural Housing Program under Section 515 of the National Housing Act of 1949 for Academy Apartments, Acorn Acres Apartments, Alicia Arms Apartments, Carlton Court Apartments, ECL Annex, Edenton Manor, Fairhaven Manor I, Fair Winds, Greenwood Acres Apartments, Harbour Towne, Maple Hill, Marshall Manor Apartments, Park Royal Apartments, Ridgely Meadows, 2nd Fairhaven Apartments, West Street Elderly Apartments, and West Street Manor Annex Apartments. The debt instruments are secured by mortgages on the real estate, interests in personal property, and assignments of income to be derived from the Projects.
DSHA - HOME: Long-term debt instruments were provided by DSHA pursuant to the HOME program for Acorn Acres Apartments, East Atlantic, ECL Annex, Harbour Towne, Lingo Creek, Long Neck, Luther Gardens Apartments, Marshall Manor Apartments, Milton Landing Apartments, and West Street Manor Annex Apartments. The debt instruments are secured by mortgages on the real estate, interests in personal property, and assignments of income to be derived from the Projects. No repayments on the debt instruments are required unless there is available cash flow, as defined in the DSHA Regulatory Agreements.
Title: NOTE 3 - OTHER AWARDS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Milford Housing Development Corporation and Affiliates, 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 (CFR) 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 the Corporation, it is not intended to and does not present the Corporation’s financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Subsidy revenues for low-income, elderly, or disabled tenants are provided under housing assistance payment contracts. These contracts require tenants to contribute a portion of the contract rent. The difference between the calculated tenant rent and the contract rent is paid by the awarding agency.
During 2023, MHDC and its divisions received RD rental assistance of $1,958,205 and HUD Section 8 assistance of $544,750. MHDC also received other awards from RD for Self Help in the amount of $316,700, from the Community Housing Development Organization in the amount of $50,000, and a Community Development Block Grant in the amount of $27,865.