Title: NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of New Hope Village Apartments under programs of the federal government for the year ended September 30, 2024.
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 Project, it is not intended to and does not present the Project’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.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of New Hope Village Apartments under programs of the federal government for the year ended September 30, 2024.
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 Project, it is not intended to and does not present the Project’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.
Management did not elect to use the 10% de minimis indirect cost rate.
Title: NOTE 2 - U.S. DEPARTMENT OF AGRICULTURE - RURAL DEVELOPMENT LOANS:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of New Hope Village Apartments under programs of the federal government for the year ended September 30, 2024.
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 Project, it is not intended to and does not present the Project’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.
On July 1, 2015, the Project entered into a first mortgage through Rural Development in the amount of $771,910; 50-year term, 30-year balloon, with interest at 3.625%, subsidized to 1%, payable in monthly installments of $1,635. Secured by a lien on the real estate and security interest in all other property. Principal amount at September 30, 2024 and 2023 was $768,220, with accrued interest of $119,975 and $108,040, respectively. Payments are deferred and payable after a 20-year period.
On July 1, 2015, the Project entered into a second mortgage through Rural Development in the amount of $85,119; 50-year term, 30-year balloon, with interest at 3.625%, subsidized to 1%, payable in monthly installments of $180. Secured by a lien on the real estate and security interest in all other property. Principal amount at September 30, 2024 and 2023 was $84,712, with accrued interest of $13,229 and $11,913, respectively. Payments are deferred and payable after a 20-year period.
On October 24, 2016, the Project entered into a third mortgage through Rural Development in the amount of $276,989, for the purpose of rehabilitating the Project; 50-year term, 30-year balloon, with interest at 3.625%, subsidized to 1%, payable in monthly installments of $602. Secured by a lien on the real estate and security interest in all other property. Principal amount at September 30, 2024 and 2023 was $255,976 and $259,040, respectively.
On February 27, 2017, the Project entered into a construction loan through Rural Development in the amount of $289,891, for the purpose of rehabilitating the Project; interest at 1%. Secured by a lien on the real estate and security interest in all other property. Principal amount at September 30, 2024 and 2023 was $289,891, with accrued interest of $18,948 and $16,637, respectively. Payments are deferred and payable after a 20-year period.
Title: NOTE 3 - OTHER AWARDS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of New Hope Village Apartments under programs of the federal government for the year ended September 30, 2024.
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 Project, it is not intended to and does not present the Project’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.
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 2024, New Hope Village Apartments received RD rental assistance of $50,220.
During the year ended September 30, 2024, the Project received interest credit subsidies totaling $19,246 in accordance with its agreements with Rural Development. These subsidies represent the difference between the interest payments calculated at the contractual note rates of these mortgages (ranging from 3.125% to 3.625%) and the subsidized interest rate of 1%, effectively reducing the Project's required monthly payments. The loans receiving interest credit subsidies include Loan 008 with a note rate payment of $2,788 and a subsidized payment of $1,635, Loan 009 with a note rate payment of $307 and a subsidized payment of $180, and Loan 003 with a note rate payment of $926 and a subsidized payment of $602. The total annual interest credit subsidy is calculated as the difference between the contractual monthly payments and the subsidized monthly payments.