Notes to SEFA
The accompanying Consolidated Schedule of Expenditures of Federal Awards includes the federal award activity of Universal Housing Development Corporation and Southlawn Apartments, LLC, collectively referred to as the Corporation. 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 the Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flow of the Corporation.
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. The Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance for the year ended June 30, 2025.
Southlawn Apartments, LLC has received a U.S. Department of Housing and Urban Development (HUD) loan under Section 223(f) of the National Housing Act (ALN number 14.155), and Universal Housing Development Corporation has received a Rural Development loan under Section 515 (ALN number 10.447). The loan balances as of July 1, 2024 are included in the federal expenditures presented in the Schedule. The outstanding principal balance of the HUD loan as of June 30, 2025 was $1,549,640, and the outstanding balance of the Rural Development loan was $798,821. The Corporation received no additional loans during the year.