Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity ofSeddlemeyer, Inc. (d.b.a. Seddlemeyer Apartments), HUD Project No. 073-HD047, and is presented onthe accrual basis of accounting. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Therefore, some amounts presented in this schedule may differ from amounts presented in, or used inthe preparation of the basic financial statements.Recognition of Rental RevenueResidents in this facility are billed a monthly rental charge. These charges are recognized as incomewhen earned. Revenue is recorded for each month a housing unit is available for occupancy. Amountsattributable to employee housing units and vacancies are charged to the appropriate accounts inaccordance with HUD provisions.The Corporation also receives housing assistance payments from HUD which are also recognized asincome when earned. Rental income from the PRAC Agreement totaled $52,043 (54% of net rentalrevenue) for the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the 10% de minimis cost rate because the guidance under Part 200.414Indirect Costs does not apply.
The Corporation has entered into a Capital Advance Program Mortgage Note (the Note) for a capitaladvance not to exceed $1,140,200. The Note bears no interest, and repayment is not required as long asthe housing project remains available for very low-income persons with disabilities, in accordance withSection 811 of the National Affordable Housing Act of 1990 and the Project Rental Assistance Contractand is operated in accordance with the regulatory agreement and HUD regulations. The Note is securedby the mortgage upon the land, building and equipment and other amounts held by the Corporation. AtJune 30, 2022, the balance of the Note was $1,140,200.