Title: NOTE 1: ORGANIZATION
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Accessible Housing Austin (AHA!) was incorporated in the State of Texas on 20 December 2005.
AHA! is dedicated to developing and advancing affordable, accessible, and integrated housing options
in the city of Austin for low-income people with disabilities and their families. One of the core values
is empowering low-income people with disabilities by making them controlling stakeholders in their
housing options.
Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. Donor-imposed restrictions that are released in the same year as they are received are reported as “without donor restrictions” on the Statement of Activities.
BASIS OF ACCOUNTING
AHA! uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred.
REVENUE
Unconditional grants and contributions received are recorded at fair value on the date of the award as with donor restrictions or without donor restrictions depending on the existence and/or nature of any donor-imposed restrictions.
BRIARCLIFF LEGAL SETTLEMENT
As detailed in Note 13 to the financial statements, AHA! reached legal settlements with several counterparties during the year. These settlement amounts were recorded as revenue when earned, when the settlement agreements were countersigned.
SUBSEQUENT EVENTS
Management of AHA! has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued.
ESTIMATES
The preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
FUNCTIONAL EXPENSE ALLOCATION
The financial statements report certain categories of expenses that are attributed to more than one program or supporting function. Therefore, some expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated include payroll and related, insurance, and other which are allocated based on estimates of time and effort by personnel.
FIXED ASSETS
Acquisitions of property and equipment valued at $1,000 or more and a useful life greater than one year are capitalized at cost if purchased, or estimated fair market value on the date of donation, if contributed. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, which is 5-10 years for equipment.
RENTAL OPERATIONS
AHA! leases its real estate properties as single family residences and apartment units under non-cancellable operating leases. There were 9 housing units and Briarcliff apartment complex available for lease in fiscal 2024. Generally, these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Leases can be canceled with a penalty of one month’s rent. One month’s rent under these contracts is $16,929.
RENTAL REAL ESTATE
Real estate consists of land, housing units, building improvements, and construction in progress. Real estate is capitalized at cost, which includes the cost of preacquisition, acquisition, development, and construction. Housing units leased and the appliances within are depreciated using the straight-line method based on an estimated useful life of 27.5 and 10 years, respectively. Housing units leased are restricted for low-income housing and people with disabilities.
INCOME TAXES
In accordance with Section 501(c)(3) of the Internal Revenue Code, AHA! is exempt from federal income taxes. Consequently, no provision for Federal income taxes is included in the accompanying financial statements.
Title: NOTE 3: CONTINGENCY
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
AHA! receives forgivable loans from the government entities to assist with the implementation of its program. Should AHA! not comply with the terms of the loans or should any costs be determined to be ineligible, AHA! will be responsible for reimbursing the grantor for these amounts. Management believes there will be no such disallowance.
Title: NOTE 4: COMMITMENTS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Under the terms of various agreements with funding agencies, AHA! is required to provide certain services including, but not limited to, using certain properties for low-income housing.
Title: NOTE 5: CONCENTRATIONS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
$4,994,219 (85%) of notes payable are due to two lenders as of 30 September 2024. See Note 10. AHA! had deposits at financial institutions in excess of FDIC coverage totaling $169,698 at 30 September 2024.
Title: NOTE 6: LIQUIDITY AND AVAILABILITY
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Financial assets available for general expenditure, within one year of the Statement of Financial Position date, comprise the following:
Cash $729,425
Accounts receivable 23,552
$752,977
As part of AHA!’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. The policy is that monthly revenues are to cover monthly expenses. Monthly revenues and expenditures are deposited in and deducted from AHA!’s operating accounts. Several of AHA!’s notes payable are forgivable upon maturity if AHA! is in compliance with the note agreements; see Note 10 for the terms of each note.
Title: NOTE 7: BINGO UNIT
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
In accordance with the Texas Charitable Bingo Enabling Act and the Texas Administrative Code, AHA! participates in the Big Star Bingo Unit (Bingo Unit) with five other nonprofit organizations. The six organizations formed a trust that collects all revenue and pays all bills including income tax on pull-tab net income. Distributions from the bingo operations are reported as bingo revenue on the Statement of Activities. In the event of dissolution, the Bingo Unit will distribute in equal shares the remaining undistributed net assets held by the Bingo Unit. As of 30 September 2024, AHA!’s interest in undistributed net assets held by the Bingo Unit is $7,448 (see Note 9).
The Bingo Unit files quarterly reports with the Texas State Comptroller. The Bingo Unit is a high volume cash operation run entirely by the Bingo Unit. AHA! puts forth little or no effort into the operation and received quarterly distributions totaling $63,500 during the year.
Title: NOTE 8: RENTAL REAL ESTATE
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Nine housing units $690,816Briarcliff apartment complex 5,668,550
Building improvements 236,578
Land 300,500
Construction in process 79,699
Accumulated depreciation (990,635)
$5,985,508
Included in Briarcliff apartment complex is $16,138 in capitalized interest.
Title: NOTE 9: FAIR VALUE DISCLOSURES
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Quoted Prices in Active Markets for Identical Assets
(Level 1) Significant Other Observable Inputs (Level 2)
Significant Unobservable Inputs
(Level 3)Interest in bingo unit N/A $7,448 N/A
The carrying value of the interest in Bingo Unit represents AHA!’s proportionate share of the undistributed net assets of the Bingo Unit, as reported in their unaudited financial statements (see Note 7).
Title: NOTE 10: NOTES PAYABLE
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Note payable to the Texas State Affordable Housing Corporation, bears an interest rate of 5.75%. Beginning 1 February 2021 AHA! started making the required principal and interest payments of $5,807 until the loan matures on 29 February 2036. Collateralized by rental real estate.
$857,271
Note payable to Texas Department of Housing and Community Affairs, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 1 August 2051, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 2.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
210,528
Note payable to Texas Department of Housing and Community Affairs, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 1 August 2051, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 2.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
1,281,671
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 1 June 2107, AHA! is in compliance with all terms and conditions of the Loan Agreement.
140,810
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 1 June 2113, AHA! is in compliance with all terms and conditions of the Loan Agreement.
220,880
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 31 March 2026, AHA! is in compliance with all terms and conditions of the Loan Agreement.
30,000
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
137,900
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
56,922
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
98,151
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
171,857
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 31 July 2115, AHA! is in compliance with all terms and conditions of the Loan Agreement. The note has been discounted using a rate of 4.5%; the discount is being amortized to interest expense on a straight-line basis over the life of the note.
153,500
Note payable to Austin Housing Finance, collateralized by rental real estate. The note bears a 0% interest rate until maturity and the principal shall be forgiven in its entirety if on 30 September 2115, AHA! is in compliance with all terms and conditions of the Loan Agreement.
2,492,000
5,851,490
Discount on notes payable (1,040,997)
$4,810,493
Maturities at 30 September 2024:
2025 $15,796
2026 16,729
2027 17,719
2028 18,763
2029 19,873
Thereafter 5,762,610
$5,851,490
Included in interest expense is $72,092 in forgivable interest, $26,376 related to the note payable discount and $49,293 in paid interest expense.
Title: NOTE 11: NONFINANCIAL CONTRIBUTIONS
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
For the year ended 30 September 2024, nonfinancial contributions recognized within the statement of activities include:
Interest $72,092
Unless otherwise noted, contributed nonfinancial assets did not have donor-imposed restrictions. Interest for forgivable loans is forgiven annually as AHA! is in compliance with loans. Forgivable interest is used for program activities and is recorded at the estimated fair value in the financial statements based on current rates for similar loans.
Title: NOTE 12: FUNCTIONAL EXPENSES
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
Program
Administration
Fundraising
TotalDepreciation $249,382 $0 $0 $249,382
Consultant services 16,238 200,210 0 216,448
Payroll and related 124,328 28,293 7,420 160,041
Interest 149,222 0 0 149,222
Maintenance and improvements 118,422 0 0 118,422
Property taxes 72,967 0 0 72,967
Insurance 48,921 11,133 2,920 62,974
Housing program 41,764 0 0 41,764
Fundraising 0 0 6,363 6,363
Other 8,629 1,964 515 11,108
$829,873 $241,600 $17,218 $1,088,691
During the year, AHA! was involved in a lawsuit this expense is 100% administration had this expense not been incurred program percentage would be more consistent with prior years 80% program allocation.
Title: NOTE 13: LITIGATION
Accounting Policies: FINANCIAL STATEMENT PRESENTATION
Net assets are classified based on the existence or absence of donor-imposed restrictions.
Accordingly, net assets and changes therein are classified and reported as follows:
Net Assets Without Donor Restrictions
Net assets available for use in general operations and not subject to donor restrictions.
Net Assets With Donor Restrictions
Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature,
such as those that will be met by the passage of time or other events specified by the donor. Other
donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be
maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is
when the stipulated time has elapsed, when the stipulated purpose for which the resource was
restricted has been fulfilled, or both.
De Minimis Rate Used: N
Rate Explanation: AHA did not use the de miminus cost rate
AHA! was actively involved in mediation/arbitration during the year. The original lawsuit was against Braun and Butler, Efficient Air Conditioning, Inc., Nichols Engineering, LLC, and Austin Community Design and Development Center a/k/a ACDDC ("ACDDC").
AHA! reached a settlement agreement with Braun and Butler on 15 June 2023. AHA! reached a settlement agreement with Efficient Air Conditioning on 11 April 2024. AHA! reached a settlement agreement with ACDDC and Nichols Engineering on 11 April 2024. All settlement amounts were recorded as Briarcliff legal settlement revenue in the Statement of Activities.