Notes to SEFA
Title: Basis of Presentation
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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Massachusetts Housing Investment Corporation and its wholly owned subsidiaries (MHIC) under programs of the Federal government for the year ended December 31, 2022. 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 MHIC, it is not intended to and does not present the financial position, changes in net assets or cash flows of MHIC.
Title: Capital Magnet Fund
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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MHIC has been awarded $1,800,000 by the Community Development Financial Institutions Fund to capitalize an Affordable Housing Fund and deploy loans under the Capital Magnet Fund program. The revolving loan fund has ongoing compliance requirements through the end of the Investment Period in January 2023. During 2022, MHIC was awarded an additional $5,000,000 under the program to finance homeownership, affordable housing, and economic development activities, which has ongoing compliance requirements through the end of the Investment Period in September 2027. In accordance with award requirements, the Schedule includes outstanding loans and committed lines of credit as of December 31, 2022 and program income received but not deployed or committed as of December 31, 2022. At December 31, 2022, outstanding loans and committed lines of credit totaled $1,712,333.