The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant award activity of Hope Network and Affiliates under programs of the federal government for the year ended September 30, 2025. 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 Hope Network and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hope Network and Affiliates.
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, Cost Principles for Nonprofit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Hope Network and Affiliates has not elected to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards reports activity for Hope Network and Affiliates and includes the federal funds of service affiliates and housing affiliates. Service affiliates include those affiliates that provide some level of human services to consumers in the conduct of their respective programs and affiliates that provide support or fundraising for those services. The service affiliates include the accounts of Hope Network West Michigan (“HN West Michigan”); Hope Network Behavioral Health (“HNBHS” or “HN Behavioral Health”); Hope Network Rehabilitation Services d/b/a Hope Network Neuro Rehabilitation (“HN Neuro Rehab”); Alternative Community Living, Inc. (“New Passages”); Hope Network Southeast (“HN Southeast”); Hope Network Services Corporation (“Services Corp”); Hope Network Foundation (“Foundation”); Hope Network (also referred to as “HN Leadership Center”); Homes of Opportunity (“HOO”); and Hope Network Professional Services (“HNPS”). Housing affiliates are those affiliates that own real estate and provide limited human services connected to the real estate operations. Typically, these affiliates have U.S. Department of Housing and Urban Development (“HUD”) or Michigan State Housing Development Authority (“MSHDA”) loans, grants or subsidies that aid in their operation. The housing affiliates include: Hillview Townhouses, Inc. (“Hillview Townhouses”); Courtland Housing Corporation (“Courtland”); Brentwood NPHC (“Brentwood”); Wellington NPHC (“Wellington Court”); MAHC III (“Leonard Pines”); MAHC IV (“Village Drive”); MAHC II (“Walker Village”); Birchgrove Non-Profit Housing Corporation (“Birchgrove”); Metropolitan Alternative Housing Corporation (“Metropolitan Apartments”); Three Rivers Alternative Housing Corporation (“River Country”); Kalamazoo NPHC (“Milham Parkside”); Big Rapids NPHC; (“Water Tower Place”); Twin Lakes NPHC (“Twin Lakes”); Masquignon NPHC (“Masquignon”); Hill House Apartments, Inc. (“Hill House”); Battle Creek NPHC (“The Meadows”); Synergy Non-Profit Housing Corporation (“Synergy”); Gaines NPHC (“Gaines”); Housing Plus; Carlton NPHC (“Carlton”); VOK Limited Dividend Housing Association LLC (“Village of Kalamazoo”); Hope Network Affordable Independent Living NPHC (“HNAIL”); Hope Network Housing Development Corporation (“HNHDC”); Brentwood Limited Dividend Housing Association Limited Partnership (“Brentwood LDHA”); Wellington Limited Dividend Housing Association Limited Partnership (“Wellington LDHA”); Hope Network Cadillac Limited Dividend Housing Association LLC (“Cadillac LDHA”); Eastpointe Commons I Limited Dividend Housing Association Limited Partnership (“Eastpointe Commons I LDHA”); Eastpointe Commons II Limited Dividend Housing Association Limited Partnership (“Eastpointe Commons II LDHA”); and Bingham Limited Dividend Housing Association Limited Partnership (“Bingham LDHA”).
In accordance with U.S. Department of Housing and Urban Development requirements, the following entity has been subject to a program-specific compliance audit as of December 31, 2025: VOK Limited Dividend Housing Association LLC In accordance with Michigan State Housing Development Authority requirements, the following entities have been subject to a program-specific compliance audit as of December 31, 2025: Brentwood Limited Dividend Housing Association Limited Partnership Wellington Limited Dividend Housing Association Limited Partnership Eastpointe Commons I Limited Dividend Housing Association Limited Partnership Eastpointe Commons II Limited Dividend Housing Association Limited Partnership Bingham Limited Dividend Housing Association Limited Partnership
In accordance with Uniform Guidance, loans, loan guarantees and capital advances are presented on the accompanying Schedule of Federal Awards at balances outstanding as of October 1, 2024. Following is the balance of the loan, loan guarantees, capital grants and capital advances as of September 30, 2025:MORTGAGE INSURANCE_RENTAL AND COOPERATIVE HOUSING FOR MODERATE INCOME FAMILIES AND ELDERLY, MARKET INTEREST RATE (14.135) - Balances outstanding at the end of the audit period were 2543204. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2703558. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 7565300. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 314996.