The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Minnesota Housing Finance Agency (the Agency) under programs of the federal government for the year ended June 30, 2025. The information 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 the Agency, it is not intended to and does not present the financial position, changes in net position, or cash flows Minnesota Housing Finance Agency.
Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Agency’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
The Agency has not elected to use the 10% de minimis cost rate.
The Agency provides rental rehabilitation and new construction loans to approved properties via funding provided through ALN 14.239 HOME Investment Partnerships Program (the HOME Program). These loans have continuing compliance requirements during the period of affordability, as defined by the HOME Program requirements, which vary depending on the number of HOME Program units at each property. The balance of rental rehabilitation loans outstanding totaled $72,639,547 at June 30, 2025. The Agency provided loans to approved properties via funding provided through ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA). These capital loans have continuing compliance requirements during the period of affordability, as defined by the HOPWA program requirements. The balance of the capital loans outstanding totaled $209,631 at June 30, 2025. The Agency provided loans to approved properties via funding provided through ALN 14.275 Housing Trust Fund. These capital loans have continuing compliance requirements during the period of affordability, as defined by the program requirements. The balance of the capital loans outstanding totaled $35,451,152 at June 30, 2025.
The Coronavirus Relief Fund (CARES Act) expenditures are listed on the Schedule on separate lines. These funds were used in several different programs, including the Emergency Rental Assistance, and Housing Assistance Fund (FFAL 21.023, and 21.026).
The reconciliation of the schedule of expenditures of federal awards to the Agency’s basic financial statements for the year ended June 30, 2025, is as follows: Total federal awards per the schedule of expenditures of federal awards $ 4 95,499,665 Beginning balance of loans included in total federal awards (108,300,330) Administration fees received, included in fees earned and other income in the general reserve fund (15,185,537) Reclassifying expense, prepayment for SBITA 5-year term GASB96 complaint Total federal appropriations disbursed per federal appropriated fund of the Agency (630,000) $ 371,383,798