Notes to SEFA
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
HOME Program loan proceeds were distributed to Sunrise East, LLC in 2009, Sunrise Lane, LLC in 2011, Windhaven Estates, LLC in 2016, and Horizon Estates, LLC in 2020. The HOME Program funds were used by the entities to construct low-income housing units. Housing Authority of the City of Holdrege, Nebraska is the 100% owner Sunrise East, LLC. The Authority is the managing member of Sunrise Lane, LLC, Windhaven Estates, LLC, and Horizon Estates, LLC and owns .01% of each. The funds advanced are repayable to the U.S. Department of Housing & Urban Development (HUD) in the event that the Authority or its sub-recipients (Sunrise East, LLC, Sunrise Lane, LLC, Windhaven Estates, LLC, and Horizon Estates, LLC) do not maintain the constructed property for low-income housing for 20 years. If the terms of the agreement are met, the funds are not required to be paid back to HUD. The original balance of the HOME Program loans were $452,640 for Sunrise East, LLC, $578,639 for Sunrise Lane, LLC, $496,301 for Windhaven Estates, LLC, and $400,000 for Horizon Estates, LLC.