Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Fowler Christian Apartments, Inc. (the Organization). The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Since the schedule presents only a select portion of the activities of the Organization, it is not intended to and does not present the financial position, changes in net deficit or cash flows of the Organization.
The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10 percent de minims indirect cost rate as allowed under the Uniform Guidance.
The ending Mortgage Payable loan balance is $5,782,617 at December 31, 2025.
On March 27, 2013, the Organization entered into an assisted living conversion program grant agreement with HUD with the maximum funds awarded to the Organization in the amount of $2,434,287 to convert 24 existing units into units for assisted living pursuant to requirements of the Section 202(b). As a condition of receiving assistance under the grant agreement, the Organization will continue to operate the Project, including the service enriched housing, as a facility for the elderly for at least 20 years beyond the final maturity date stated in the Mortgage covering the Organization (Note 7). Subject to the availability of appropriations, HUD shall provide and be accepted by the Organization the renewal of its Section 8 Housing Assistance Payment Contract for the extended operation period.