Notes to SEFA
Title: Loan/Loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Blackford-Grant Housing Authority, Inc. (d.b.a. Carey Court Apartments), HUD Project No. 073-11687,
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 (CFR) 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.
RECOGNITION OF RENTAL REVENUE
Residents in this facility are billed a monthly rental charge. These charges are recognized as income
when earned. Revenue is recorded for each month a housing unit is available for occupancy. Amounts
attributable to employee housing units and vacancies are charged to the appropriate accounts in
accordance with HUD provisions.
The Corporation also receives housing assistance payments from HUD which are also recognized as
income when earned. Rental income from the HAP Contract totaled $112,247 (72% of net rental
revenue) for the year ended June 30, 2024.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the 10% de minimis cost rate because the guidance under Part 200.414
Indirect Costs does not apply.
The mortgage note is in the amount of $972,000. The term of the loan is 35 years. The mortgage loan is
evidenced by a mortgage loan agreement. The monthly installments for principal and interest are $3,944
with a maturity date of July 2048. Interest is being charged at 3.37%. The loan is subject to certain terms
and conditions, including prepayment penalties during the first ten years of the mortgage. The balance of
the mortgage at June 30, 2024 was $779,993.