Title: Organization
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Commission and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards presents the activity of all federal award programs of Missouri Housing Development Commission (the Commission) for the year ended June 30, 2024. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies, are included on the schedule.
Title: Additional Audits
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Commission and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Grantor agencies reserve the right to conduct additional audits of the Commission’s grant programs for economy and efficiency and program results which may result in disallowed costs to the Commission. However, management does not believe such audits would result in any disallowed costs that would be material to the Commission’s financial position at June 30, 2024.
Title: Loan Programs
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Commission and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Commission participates in the Section 538 Rural Rental Housing Guaranteed Loans program (7 C.F.R. pt.3565 (2008)) (ALN 10.438), under which the Rural Housing Service (RHS), Department of Agriculture (USDA) provides credit enhancements to encourage lending for affordable rental properties that meet program standards. The USDA has assumed 90% of the risk in one loan closed
and funded by the Commission in previous years. The Commission services this loan which had an outstanding balance at June 30, 2024 of $89,000. USDA’s assumed risk approximated $80,000 at June 30, 2024.
Certain mortgage loans of the Commission are insured by the U.S. Department of Housing and Urban Development (HUD) under Section 221(d)(3) and (4) Multifamily-Market Rate Housing program (12 U.S.C. 17151(d)(3),(4) (2006)) (ALN 14.135) which insures lenders against loss on mortgage defaults for market rate rental developments. The Commission services these loans and the outstanding balance at June 30, 2024 was $1,348,000.
The Commission participates in the Section 542(c) Risk Sharing Program (24 C.F.R. pt.226 (2008)) (ALN 14.188), under which HUD provides credit enhancements for multifamily housing development loans. HUD and the Commission share in the risk of loss on the mortgages. The Commission services these loans and the outstanding balance at June 30, 2024 was $36,300,000. HUD has assumed 50% of the risk in these loans. HUD’s assumed risk approximated $18,150,000 at June 30, 2024.
The Commission is the Administrator of the HOME Investment Partnerships Program (HOME) (ALN 14.239) for the State of Missouri. The HOME program provides financing for several eligible activities that increase the supply of affordable housing for low and very low income persons. The Commission uses a portion of its HOME allocation to finance multifamily mortgages at very low
interest rates, which results in rents that are affordable for low income families. HOME mortgages outstanding total $273,142,000 at June 30, 2024. The Commission services these loans, which have continuing compliance requirements during the period of affordability, as defined by the HOME program requirements, which vary depending on the number of HOME units at each property. The Commission is the Administrator of the Housing Trust Fund (ALN 14.275) for the State of Missouri. The Housing Trust Fund provides financing for eligible activities that increase the supply of affordable housing for low and very low income persons. The Commission uses the Housing Trust Fund allocation to finance multifamily mortgages at very low interest rates, which results in rents
that are affordable for low income families. Housing Trust Fund mortgages outstanding total $27,256,000 at June 30, 2024. The Commission services these loans, which have continuing compliance requirements during the period of affordability, as defined by the Housing Trust Fund requirements, which vary depending on the number of Housing Trust Fund units at each property.
Title: Undisbursed Funds
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Commission and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Analysis of undisbursed funds at June 30, 2024, was as follows (in thousands): See the Notes to the SEFA for chart/table