Notes to SEFA
The project was financed by capital advances from the U.S. Department of Housing and Urban Development (“HUD”) and the State of New Jersey Department of Consumer Affairs totaling $10,358,900. The advances are secured by enforcement mortgages on the property of the Organization. The mortgages, which mature in April 2043, bear no interest and repayment is not required so long as the housing remains available for very low-income elderly persons or very low-income persons with disabilities. As of April 30, 2025 and 2024, the enforcement mortgages amounted to $10,358,900. Since the mortgages are not repayable and are forgiven at the end of the enforcement period so long as the Organization complies with HUD regulations, the proceeds from the mortgage have been recorded as net assets with donor restrictions.
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.