Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Blossom Village Housing Development Fund Corporation, HUD Project No. 014-HD011, SHARS #20146030 (the Corporation), under programs of the federal government for the year ended March 31, 2022, and has been prepared in accordance with accounting principles generally accepted in the United States of America. 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 financial position, change in net assets, or cash flows of the Corporation.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1554200. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 1932574.
Title: Capital Advances
Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Blossom Village Housing Development Fund Corporation, HUD Project No. 014-HD011, SHARS #20146030 (the Corporation), under programs of the federal government for the year ended March 31, 2022, and has been prepared in accordance with accounting principles generally accepted in the United States of America. 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 financial position, change in net assets, or cash flows of the Corporation.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation has received Section 811 capital advances from the U.S. Department of Housing and Urban Developments (HUD) Supportive Housing for Persons with Disabilities program (Assistance Listing No. 14.181). Under the terms of the capital advance agreements, the Corporation must continue to operate the project for the specified purpose for a period of forty years. Failure to operate the project in accordance with the capital advance agreement would result in the Corporation being required to repay HUD the entire capital advance, plus interest, since the date of the first advance.The Corporation has a note payable to the Housing Trust Fund Corporation in the amount of $1,932,574. The note does not bear interest and does not require any principal payments until March 2067, when the entire amount is due. The Corporation must keep the related housing available for a period of fifty years for low-income elderly individuals. Failure to keep the related housing available for these individuals would result in the Corporation being required to repay the entire loan balance at the time of default. The note is secured by the related property and building.