Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received from the federal agencies, including amounts passed through from other governmental entities and disbursed by the Authority, is included in the Schedule in accordance with the requirements of OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
De Minimis Rate Used: Y
Rate Explanation: The Authority has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for loans awarded after November 12, 2020.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received from the federal agencies, including amounts passed through from other governmental entities and disbursed by the Authority, is included in the Schedule in accordance with the requirements of OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: NOTE 2 RELATIONSHIP TO THE AUTHORITY’S FINANCIAL STATEMENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received from the federal agencies, including amounts passed through from other governmental entities and disbursed by the Authority, is included in the Schedule in accordance with the requirements of OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
De Minimis Rate Used: Y
Rate Explanation: The Authority has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for loans awarded after November 12, 2020.
Federal financial assistance program expenditures as presented in the accompanying Schedule primarily represent federal financial assistance payments disbursed by the Authority during the year ended September 30, 2024 or federally insured loans as described in Note 3.
Title: NOTE 3 MORTGAGE INSURANCE AND GUARANTEES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received from the federal agencies, including amounts passed through from other governmental entities and disbursed by the Authority, is included in the Schedule in accordance with the requirements of OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
De Minimis Rate Used: Y
Rate Explanation: The Authority has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for loans awarded after November 12, 2020.
Certain mortgage loans of the Authority are insured by the Federal Housing Administration (FHA) and partially guaranteed by the Veterans Administration (VA). At September 30, 2024, the Authority recorded approximately $17,160,000 of FHA insured loans. These serviced loans are included on the accompanying Schedule. The Authority participates in the Risk Sharing loan program, under which the Department of Housing and Urban Development (HUD) provides credit enhancements for multifamily housing project loans. HUD and the Authority share in the risk of loss on the mortgage. HUD has assumed 90% of the risk in 34 loans. HUD’s assumed risk approximated $38,689,000 at September 30, 2024. Of the 34 loans closed, the Authority funded 30 loans with outstanding principal of $39,670,000 at September 30, 2024. HUD’s assumed risk of loss of approximately $35,703,000 related to these 30 loans is recorded in the accompanying Schedule. The Authority participates in the Section 538 Rural Rental Housing Guaranteed Loan Program, under which the Rural Housing Service (RHS), Department of Agriculture (USDA), provides credit enhancements to encourage private and public lenders to make new loans for affordable rental properties that meet program standards. The USDA has assumed 90% of the risk in the one loan closed and funded by the Authority. At September 30, 2024, the loan had an outstanding principal of $981,000, of which the USDA assumed risk of loss of approximately $883,000 is recorded in the accompanying Schedule.
Title: NOTE 4 LOANS AND LOAN GUARANTEES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received from the federal agencies, including amounts passed through from other governmental entities and disbursed by the Authority, is included in the Schedule in accordance with the requirements of OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
De Minimis Rate Used: Y
Rate Explanation: The Authority has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for loans awarded after November 12, 2020.
Loans and loan guarantees in the accompanying Schedule consist of outstanding principal
loans in programs that have ongoing compliance requirements.
The following is a summary of changes in federal loan balances for the year ended
September 30, 2024:
Assistance
Listing September 30, Current Year September 30,
Program Title Number 2023 Balance Activity 2024 Balance
HOME Investment Partnerships Program 14.239 $ 39,556,591 $ (4,457,518) $ 35,099,073
ARRA-Tax Credit Assistance Program 14.258 12,222,697 (163,844) 12,058,853
Neighborhood Stabilization Program 14.228 2,216,902 (18,363) 2,198,539
Mortgage Insurance - Homes (FHA) 14.117 17,526,134 (365,768) 17,160,366
Veterans Housing-Guaranteed and Insured Loans 64.114 - 503,157 503,157
Very Low to Moderate Income Housing Loans 10.410 2,082 (2,082) (0)
Section 538 Rural Rental Housing Guaranteed Loans 10.438 907,185 (24,504) 882,681
GNMA Mortgage Backed Security Program 14.000 1,795,269,415 296,083,950 2,091,353,365
Housing Finance Agencies Risk Sharing Programs 14.188 37,135,646 (2,315,351) 34,820,295
Capital Magnet Fund 21.011 4,297,240 1,032,126 5,329,366
Housing Trust Fund - National 14.275 14,864,775 (3,764,438) 11,100,337
Total $ 1,923,998,667 $ 286,507,364 $ 2,210,506,031
Title: NOTE 5 INDIRECT COSTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Authority’s reporting entity is defined in Note 1 to the Authority’s financial statements. All federal financial assistance received from the federal agencies, including amounts passed through from other governmental entities and disbursed by the Authority, is included in the Schedule in accordance with the requirements of OMB Circular 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as applicable. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
De Minimis Rate Used: Y
Rate Explanation: The Authority has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for loans awarded after November 12, 2020.
The Authority has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance for loans awarded after November 12, 2020.