Audit 321909

Title: BASIS OF PRESENTATION 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 OMB Circular A-122 and Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Northwest Housing Alternatives, Inc. (the Organization) under programs of 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 operation of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Title: LOAN PROGRMS 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 OMB Circular A-122 and Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The U.S. Department of Housing and Urban Development (HUD) has issued notes and mortgages to the Organization in connection with certain capital advances. These notes and mortgages have 40 to 55- year terms. The Organization is not required to repay principal or interest and the notes are forgiven at maturity, as long as the Organization provides housing for the designated class of people in accordance with applicable HUD requirements. As reported in the Schedule, capital advances made to the Organization by HUD and passed through to subrecipients in prior years total $17,574,200. The balance of loans outstanding at December 31, 2023 consists of the following: Program or Cluster Title, Supportive Housing for the Elderly, Federal ALN 14.157, amount outstanding $ 15,869,700. Program or Cluster Title, Supportive Housing for Persons with Disabilities, Federal ALN 14.181, amount outstanding 1,704,500. Total amount outstanding $ 17,574,200.