Notes to SEFA
Title: Basis of Presentation
Accounting Policies: (a) Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein some types of expenditures are not allowable or are limited as to reimbursement.
(b) Pass-through entity identifying numbers are presented where available.
(c) The Organization does not use the 10% de minimis indirect rate allowed in the Uniform Guidance.
(d) Included within the $1,432,814 federal expenditures of the Capital Magnet Fund (CMF) Is $672,449 invested in 1405 West Broadway Senior Apartments, LLLP.
On October 19, 2022, and on January 25 2023, the Executive Committee of the Board of Directors of the Organization, in accordance with the Articles of Incorporation and Bylaws of the Organization and to satisfy the evidence of a Commitment pursuant to 12 C.F.R. 1807.501(b) of the Capital Magnet Fund Regulations, approved Resolution No. 12, Series 2023. This authorized the Organization to allocate and invest $521,958 and $150,491, totaling $672,449 from the proceeds of the Capital Magnet Fund (CMF) Award to the Organization. This investment was to pay for predevelopment expenses associated with the Gateway on Broadway Senior Apartments development located at 1401, 1403 and 1405 W. Broadway and 1400 – 1404 W. Magazine Street in Louisville Kentucky.
On May 8, 2023, the board approved Resolution No. 22, Series 2023 to lend up to $1 million of the proceeds of the CMF award to the 1405 West Broadway Senior Apartments, LLLP, which is evidenced by a Note.
On June 16, 2023, 1405 West Broadway Senior Apartments, LLLP closed on all of its funding sources, and the $672,449 predevelopment investment by the Organization was refunded. Additionally, on June 16, 2023, HPI funded the $1 million CMF loan to 1405 West Broadway Senior Apartments, LLLP.
During the year ended June 30, 2024, 1405 West Broadway Senior Apartments, LLLP reimbursed $672,449 back to the
Organization. This money was then paid back to 1405 West Broadway Senior Apartments, LLLP during the year ended
June 30, 2024 as originally intended by the aforementioned Note.
De Minimis Rate Used: N
Rate Explanation: (c) The Organization does not use the 10% de minimis indirect rate allowed in the Uniform Guidance.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of The Housing Partnership, Inc. and Subsidiaries (collectively the "Organization") under programs of the federal government for the year ended June 30, 2024.
The information in this schedule is presented in accordance with the requirements of Title 2 United States 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 operations 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.