Title: Reconciliation to the Financial Statements
Accounting Policies: Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Colorado Housing and Finance Authority (the Authority) under programs of the federal government for the Twelve Months Ended December 31, 2024. 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). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the net position, changes in net position, or cash flows of the Authority.
Summary of Significant Accounting Policies
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. The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The reconciliation of the schedule of expenditures of federal awards to the Authority’s basic financial statements for
the Twelve Months Ended December 31, 2024, is as follows:
Total federal awards per the schedule of expenditures of federal awards $ 409,143,567
Beginning balance of loans included in total federal awards (164,422,098)
Loan disbursements (43,781,298)
Administration and audit fees received, included in other revenues (7,673,136)
Grant expenses not federally funded 306,890
Total grant revenues $ 193,573,924
Title: Loans Outstanding
Accounting Policies: Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Colorado Housing and Finance Authority (the Authority) under programs of the federal government for the Twelve Months Ended December 31, 2024. 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). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the net position, changes in net position, or cash flows of the Authority.
Summary of Significant Accounting Policies
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. The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Authority has entered into a Risk Sharing Agreement and other mortgage insurance programs with the U.S.
Department of Housing and Urban Development (HUD). The HUD Risk Sharing Program provides for HUD’s
assumption of 50% of the Authority’s tax-exempt and taxable mortgages for new construction or acquisition
on/rehabilitation of rental housing. Both construction and permanent financing are available for developments where
at least either 25% or 45% of the housing units are occupancy and rent-restricted to be affordable for households with
incomes below 50% or 60% of the area median income. The other programs provide insurance to the Authority against
the loss on mortgage loan defaults from 10% to 99% of the loan value.
The Intermediary Relending Program was created through a partnership with the United States Department of
Agriculture to provide financing for community and economic development projects based in rural areas of Colorado.
Under the program, the Authority originates direct loans for small businesses to finance real estate, machinery and
equipment providing the borrower with a long-term, fixed interest rate throughout the term of the loan.
The Capital Magnet Fund (CMF) is used for the Authority’s Affordable Housing Fund (AHF). The AHF will be dedicated
to funding 4% LIHTC transactions with “construction to permanent” debt funded through the sale of tax-exempt private
activity bonds and permanent “soft” debt for gap financing funded through the CMF award.
The Authority received funds under the State Small Business Credit Initiative (SSBCI) program of the US Treasury.
These funds are used in the Authority’s Cash Collateral Support (CCS) program. The CCS program is designed to help
small and medium sized business access capital that would otherwise be unavailable due to collateral shortfalls.
Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures
presented in the Schedule. The Authority had the following loan balances outstanding as of December 31, 2024,
pursuant to the programs described above.
Assistance
Listing Balance
Program Title Number Outstanding
Intermediary Relending Program 10.767 $ 536,246 *
HFA Risk Sharing - Section 542(c) 14.188 198,447,397 **
Capital Magnet Fund 21.011 17,729,529 *
Total $ 216,713,172
* Loan amount
** Risk Sharing/Insured amount