Audit 364938

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Dwelling Place has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Dwelling Place has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Dwelling Place of Grand Rapids Nonprofit Housing Corporation and Related Entities (Dwelling Place) under programs of the federal government for the year ended December 31, 2024. The information in the 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Dwelling Place, it is not intended to and does not present the financial position, changes in net position, functional expenses, or cash flows of Dwelling Place.

Title: Related Entities Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Dwelling Place has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Dwelling Place has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. The accompanying Schedule of Expenditures of Federal Awards reports activity for Dwelling Place of Grand Rapids Nonprofit Housing Corporation, Heartside Nonprofit Housing Corporation, Dwelling Place Foundation, Dwelling Place Regional Community Land Trust, Sawkaw, Inc. and Elmdale Nonprofit Housing Corporation. Dwelling Place of Grand Rapids Nonprofit Housing Corporation and Related Entities includes general programs providing certain programmatic, management and administrative services. Dwelling Place of Grand Rapids Nonprofit Housing Corporation is related to the following entities either through ownership or common control:  Dwelling Place Foundation  Heartside Nonprofit Housing Corporation  Sheldon-Weston, Inc.  Dwelling Place Regional Community Land Trust  Bridge Street Nonprofit Housing Corporation and Bridge Street Limited Dividend Housing Association Limited Partnership  Elmdale Apartments Nonprofit Housing Corporation  Ferguson Apartments Limited Dividend Housing Association LLC and New Ferguson LLC  Goodrich Nonprofit Housing Corporation and Goodrich Limited Dividend Housing Association Limited Partnership  Grandville-Heartside Nonprofit Housing Corporation and Grandville-Heartside Limited Dividend Housing Association Limited Partnership  HPFH Nonprofit Housing Corporation and HPFH Limited Dividend Housing Association Limited Partnership  Dwelling Place Rural Nonprofit Housing Corporation  Harvest Hill Limited Dividend Housing Association Limited Partnership  Herkimer Apartments Nonprofit Housing Corporation and Herkimer Apartments Limited Dividend Housing Association Limited Partnership  Herkimer Commerce Limited Dividend Housing Association Limited Partnership  Kelsey Nonprofit Housing Corporation and Kelsey Limited Dividend Housing Association Limited Partnership  LCH36 Nonprofit Housing Corporation and LCH36 Limited Dividend Housing Association  Martineau Holdings Limited Dividend Housing Association LLC  Midtown Village (Liberty Nonprofit Housing Corporation) and Liberty Limited Dividend Housing Association Limited Partnership  New Hope Homes Nonprofit Housing Corporation and New Hope Homes Limited Dividend Housing Association Limited Partnership  Pine Avenue Nonprofit Housing Corporation and Pine Avenue Limited Dividend Housing Association Limited Partnership  Plaza Franklin Limited Dividend Housing Association Limited Partnership and DP Franklin LLC  Plaza Grandville Limited Dividend Housing Association Limited Partnership and DP Grandville LLC  Hall Street Apartments (Hall Street Nonprofit Housing Corporation) and Hall Street Limited Dividend Housing Association Limited Partnership  Roosevelt Nonprofit Housing Corporation and Roosevelt Limited Dividend Housing Association Limited Partnership  Verne Barry Apartments (KBC Nonprofit Housing Corporation) and KBC Limited Dividend Housing Association Limited Partnership  Villa Esperanza (Sawkaw, Inc.)  West Shore Apartments (Whitehall DP Limited Partnership)  Weston Apartments (44 Ionia Limited Dividend Housing Association Limited Partnership)  White River Estates (Dwelling Place Rural Limited Dividend Housing Association Limited Partnership)

Title: Loan Balances Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Dwelling Place has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Dwelling Place has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available. Certain of the Organization's related entities were the recipients of federal loan proceeds under the Continuum of Care Program funded by the Department of Housing and Urban Development (Federal Assistance Listing #14.267) as follows: Award received by Heartside Nonprofit Housing Corporation for the benefit of KBC Limited Dividend Housing Association Limited Partnership ($150,000 was received in 2006 and $250,000 in 2007, and is subject to continuing compliance requirements over a 20-year period). Award received by Heartside Nonprofit Housing Corporation for the benefit of Herkimer Commerce Limited Dividend Housing Association Limited Partnership ($50,771 was received in 2012, and is subject to continuing compliance requirements over a 20-year period). These funds have a combined outstanding balance of $450,771 as of December 31, 2024. Certain of the Organization's related entities were the recipients of federal loan proceeds under the HOME Investment Partnerships Program funded by the Department of Housing and Urban Development (Federal Assistance Listing #14.239). The federal funds under the HOME Investment Partnerships Program are payable to the Department of Housing and Urban Development. These funds have a combined outstanding balance of $7,562,039 as of December 31, 2024 and were received as follows: Awards received by Heartside Nonprofit Housing Corporation for the benefit of the Martineau Project (award passed through MSHDA, $620,000 received in 2004 but subject to continuing compliance requirements over a 20-year period). Award sponsored by Heartside Nonprofit Housing Corporation for the benefit of KBC Limited Dividend Housing Association Limited Partnership (award passed through MSHDA, $2,000,000 was received in 2006 but is subject to continuing compliance requirements over a 20-year period). Award sponsored by Heartside Nonprofit Housing Corporation for the benefit of Bridge Street Limited Dividend Housing Association Limited Partnership (award passed through City of Grand Rapids, $415,000, was received in 2009 but is subject to continuing compliance requirements over a 15-year period). Award sponsored by Heartside Nonprofit Housing Corporation for the benefit of Goodrich Limited Dividend Housing Association Limited Partnership (award passed through City of Grand Rapids, $700,000, was received in 2010 but is subject to continuing compliance requirements over a 15-year period). Award sponsored by Heartside Nonprofit Housing Corporation for the benefit of Herkimer Commerce Limited Dividend Housing Association Limited Partnership (award passed through City of Grand Rapids, $527,089, was received in 2013 and 2014 but is subject to continuing compliance requirements over a 20-year period). Award sponsored by Heartside Nonprofit Housing Corporation for the benefit of Herkimer Apartments Limited Dividend Housing Association Limited Partnership (award passed through MSHDA, $2,699,950, was received in 2013 and 2014 but is subject to continuing compliance requirements over a 15-year period). Award received by LCH36 Limited Dividend Housing Association Limited Partnership (award passed through City of Grand Rapids, $300,000, was received in 2017 but is subject to continuing compliance requirements over a 15-year period). Award received by Pine Avenue Limited Dividend Housing Association Limited Partnership (award passed through City of Grand Rapids, $300,000, was received in 2019 but is subject to continuing compliance requirements over a 15-year period). Two of the Organization's related entities were the recipients of federal loan proceeds under the Tax Credit Assistance Program funded by the Department of Housing and Urban Development (Federal Assistance Listing #14.258). These funds have a combined outstanding balance of $2,817,296 as of December 31, 2024 and were received as follows: Award received by Liberty Limited Dividend Housing Association Limited Partnership (award passed through MSHDA, $2,150,599 was received in 2010 and 2011 but is subject to continuing compliance requirements over a 50-year period). Award received by Goodrich Limited Dividend Housing Association Limited Partnership (award passed through MSHDA, $666,697 was received in 2010 but is subject to continuing compliance requirements for up to a 50-year period). One of the Organization's related entities was the recipient of federal loan proceeds under the Community Development Block Grants/Entitlement Grants Program funded by the Department of Housing and Urban Development (Federal Assistance Listing #14.218). These funds have an outstanding balance of $4,127,849 as of December 31, 2024, and were received as follows: Award received by Hall Street Limited Dividend Housing Association Limited Partnership (award passed through MSHDA, $4,127,849 was received in 2011 and 2012, and is subject to continuing compliance requirements over a 40-year period). One of the Organization's related entities was the recipient of federal loan proceeds under the Neighborhood Stabilization Program funded by the Department of Housing and Urban Development (Federal Assistance Listing #14.256). These funds have an outstanding balance of $750,000 as of December 31, 2024, and were received as follows: Award received by Hall Street Limited Dividend Housing Association Limited Partnership (award passed through City of Grand Rapids, $750,000 was received in 2011 and 2012, and is subject to continuing compliance requirements over a 15-year period). Included in the amounts shown on the accompanying Schedule of Expenditures of Federal Awards, are two Section 223(f) loans - Federal Assistance Listing #14.155 insured by the Department of Housing and Urban Development for the benefit of Elmdale Apartments Nonprofit Housing Corporation and Sawkaw, Inc. The mortgages have a combined outstanding balance of $1,498,645 as of December 31, 2024.