Title: NOTE 2 - MORTGAGES PAYABLE - FEDERAL FUNDS:
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION:
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Better Homes of Seaford, Inc. and Affiliates, under programs of the federal government for the year 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 (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Corporation has entered into the following loan agreements:
USDA - RD: Long-term debt instruments were provided by RD pursuant to its Rural Housing Program under Section 515 of the National Housing Act of 1949 for Charleston Place Apartments and Yorktowne Woods Apartments. The long-term debt instruments are secured by an interest in real and personal property and an assignment of income to be derived from the Projects. The mortgages each have a term of 50 years.
As noted, the mortgage balances presented above reflect the outstanding principal balances as of December 31, 2024. For purposes of the Schedule of Expenditures of Federal Awards (SEFA), the loans under the Section 515 Rural Rental Housing Program are reported at their balances at the beginning of the year, which totaled $1,437,102.
This treatment aligns with the Uniform Guidance, which requires federal loan programs with continuing compliance requirements to be reported at their balances as of the beginning of the year. Although the loan proceeds were originally expended in prior years in connection with the construction or rehabilitation of these properties, the loans remain subject to these compliance requirements throughout their full terms.
In addition, USDA - RD provided interest credit subsidies during the year that reduced required debt service payments by $60,066. These subsidies effectively lower the interest rate charged on the loans, in some cases to as low as 1%, and are also reported on the SEFA as federal expenditures.
DSHA - HOME: Long-term debt instruments were provided by DSHA pursuant to the HOME program for Charleston Place Apartments, Chandler Heights, Williamsburg Manor Apartments, and Yorktowne Woods Apartments. The long-term debt instruments are secured by an interest in real and personal property and an assignment of income to be derived from the Projects. No repayments on the long-term debt instruments are required unless there is available cash flow, as defined in the DSHA Regulatory Agreements. The mortgages each have a term of 30 years. Information on the debt instruments as of December 31, 2024, is as follows. The Balance Due amounts presented agree with the balances due at the beginning of the year, as the loans are deferred and no surplus cash payments were required during the year.
HUD: The long-term debt instrument was provided by HUD per Section 202 for Virginia Crest Apartments. The debt is secured by an interest in real and personal property and an assignment of income to be derived from the Project. No repayments on the debt are required unless there is noncompliance with the provisions of the loan agreement. The mortgage has a term of 40 years. Information on the debt instrument as of December 31, 2024, is as follows. The Balance Due amount presented agrees with the balance due at the beginning of the year, as the loan is deferred and no payments are required as long as the property remains in compliance.
Title: NOTE 3 - RENTAL ASSISTANCE - FEDERAL FUNDS:
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION:
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Better Homes of Seaford, Inc. and Affiliates, under programs of the federal government for the year 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 (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
Rental assistance is provided to eligible tenants under housing assistance payment contracts administered by RD and HUD. These contracts require tenants to contribute a portion of the rent based on their income, and the difference between the tenant payment and the full contract rent is subsidized by RD or HUD. In 2024, the Projects earned a total of $219,719 under RD’s Rural Rental Assistance Program, $304,086 under HUD’s Section 8 Project-Based Rental Assistance Program, and $99,698 under HUD’s Section 202 Rental Assistance Program.
Title: NOTE 3 - OTHER AWARDS - FEDERAL FUNDS:
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION:
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of Better Homes of Seaford, Inc. and Affiliates, under programs of the federal government for the year 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 (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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.
De Minimis Rate Used: N
Rate Explanation: Management did not elect to use the 15% de minimis indirect cost rate as allowed under the Uniform Guidance.
Better Homes of Seaford, Inc. and Affiliates also expended $37,500 from HUD under the Community Housing Development Organization (CHDO) program. This program, administered as part of the HOME Investment Partnerships Program, supports qualified nonprofit developers in producing affordable housing. The funds were used to assist with pre-development and construction costs related to affordable housing projects for low-income individuals and families.