Blackland Community Development Corporation (Blackland) was incorporated under the Texas Non-Profit Corporation Act in 1983 and was established for the purpose of preserving and improving the character of the Blackland neighborhood of the City of Austin, Texas and for engaging in community projects for the benefit and revitalization of the neighborhood. Blackland is supported primarily by grants, contributions, and rental income.
FINANCIAL STATEMENT PRESENTATION Net assets are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows: Net Assets Without Donor Restrictions Net assets available for use in general operations and not subject to donor restrictions. The governing board has designated, from net assets without donor restrictions, net assets for construction and development. Net Assets With Donor Restrictions Net assets subject to donor-imposed restrictions. Some donor restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that resources be maintained in perpetuity. Donor-imposed restrictions are released when a restriction expires, that is when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both. BASIS OF ACCOUNTING Blackland uses the accrual method of accounting which recognizes revenue when earned and expenses when incurred. REVENUE AND RECEIVABLES Contributions are recorded as revenue and receivable when the donor makes an unconditional promise to give to Blackland. Conditional promises to give are not recognized until the conditions on which they depend are substantially met, and the promises become unconditional. Blackland considers contributions receivable to be fully collectible; accordingly, no allowance for doubtful accounts has been recorded. Blackland leases its housing units (45 as of year end) for use as single family residences under noncancellable operating leases. Generally these leases have twelve month terms, automatically renewing on a month-to-month basis thereafter. Accounts receivables consist of amounts due from tenants for rent, fees and utilities provided. Uncollectible amounts receivable are provided for using the allowance method of accounting for bad debts, whereby a provision for uncollectible accounts is charged to expense. The allowance account is increased or decreased based on historical collections, analysis of aging of receivables, and management’s evaluation of individual balances. Receivables are considered past due based on the stated terms of the lease agreements, and on how recently payments have been received. SUBSEQUENT EVENTS Management of Blackland has evaluated subsequent events for disclosure through the date of the Independent Auditor’s Report, the date the financial statements were available to be issued. ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. FUNCTIONAL EXPENSE ALLOCATION Blackland incurs some expenses that are applicable to more than one program or supporting function. Therefore, expenses require allocation on a reasonable basis that is consistently applied. The expenses that are allocated include salaries and related, which are allocated based on estimates of time and effort; and depreciation, utilities, contractors, insurance, and other expenses, which are allocated based on management’s review and analysis of individual transactions and accounts. PROPERTY AND EQUIPMENT Acquisitions of property and equipment valued at $1,000 or more with a useful life greater than one year are capitalized at cost, or estimated fair market value on the date of donation, if donated. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method based on the estimated useful life of the asset, ranging from 3 to 27.5 years. INCOME TAXES Blackland is an organization classified as an other than private foundation exempt from Federal income taxes under IRS Code Section 501(c)(3). Therefore, no provision has been made for federal income taxes in the accompanying financial statements.
Blackland receives forgivable loans from the City of Austin (the City) to assist with implementation of its program. In the event that Blackland does not comply with the terms of these loans, or should any costs be determined to be ineligible, Blackland will be liable to the City for such amounts. Management believes there will be no such disallowance. Blackland receives grants for specific purposes that are subject to grantor review. Such reviews could result in a request for reimbursement by the grantor if unallowable costs are identified. Blackland’s management believes that any liability for reimbursement which could arise as the result of these audits would not be material to the financial position of Blackland.
All notes payable are due to one lender, Austin Housing Finance Corporation (AHFC). See Note 9. Contributions from one donor accounted for 12% of Blackland’s total revenue for the year. At year end, Blackland held bank deposits of approximately $133,000 in excess of FDIC coverage. No losses have been experienced due to this credit risk.
Subject to purpose restrictions at December 31, 2025: Art village $85,750 Repairs 35,000 Green fund 15,378 Case management 14,176 Other 702 $151,006 Release of restrictions during the year: Art village $114,250 Repairs $13,000 Case management 12,500 Supportive services 10,000 Other 9,563 $159,313
During 2025, Blackland received $62,921 in forgiven interest expense, which is recorded in the statement of activities. Nonfinancial contributions did not have donor imposed restrictions. Interest for forgivable loans is forgiven annually as Blackland is in compliance with loans. Forgivable interest is used for program activities and is valued at the estimated fair value in the financial statements based on rates for similar loans when the loans were executed.
Financial assets available for general expenditure, within one year of the statement of financial position date, comprise the following: Cash $378,285 Contributions receivable 16,666 Accounts receivable 19,218 Less: Board designated for construction and development (34,680) Less: net assets with donor purpose restrictions (151,006) $228,483 As part of Blackland’s liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities and other obligations come due. Any excess funds are invested in demand deposit accounts such as savings accounts. Although Blackland does not intend to spend from its board-designated funds (designated for construction and development), the $34,680 balance could be made available if necessary.
Buildings and improvements $4,610,970 Land 245,943 Construction in progress 93,985 Furniture and fixtures 82,394 Office equipment 8,812 Accumulated depreciation (2,961,373) $2,080,731
Note payable to AHFC, collateralized by rental real estate in Austin, TX (1803 E. 20 th St.). The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on May 1, 2026, Blackland is in compliance with all terms and conditions of the loan agreement. $491,790 Note payable to AHFC, collateralized by rental real estate in Austin, TX (2203A Salina). The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on December 31, 2032, Blackland is in compliance with all terms and conditions of the loan agreement. 150,095 Note payable to AHFC, collateralized by rental real estate in Austin, TX (1900 through 1904 22 nd St.). The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on January 31, 2032, Blackland is in compliance with all terms and conditions of the loan agreement. 40,000 Note payable to AHFC, collateralized by rental real estate in Austin, TX (2106 Chestnut). The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on March 12, 2033, Blackland is in compliance with all terms and conditions of the loan agreement. The note consists of $139,035 in federal funding and $62,500 in local government funding. 201,535 Note payable to AHFC, collateralized by rental real estate in Austin, TX (2106B Chicon, and 1910B and 2203B Salina). The note bears a 0% interest rate until maturity and the principal and interest shall be forgiven in its entirety if on January 31, 2119, Blackland is in compliance with all terms and conditions of the loan agreement. If property is sold prior to the maturity date, principal and interest on each property is due and payable upon the sale. 514,835 $1,398,255 Future maturities: 2026 $491,790 2027 0 2028 0 2029 0 2030 0 Thereafter 906,465 $1,398,255
Program Administrative Fundraising Total Salaries and related $165,868 $32,082 $19,361 $217,311 Depreciation 127,065 9,883 4,235 141,183 Rental property repairs and maintenance 95,141 0 0 95,141 Forgiven interest 62,921 0 0 62,921 Insurance 44,290 1,269 0 45,559 Utilities 34,686 300 175 35,161 Professional fees 0 20,591 0 20,591 Bad debt 18,393 0 0 18,393 Community outreach 7,478 0 0 7,478 Rental assistance 4,269 0 0 4,269 Taxes and licenses 2,991 0 0 2,991 Interest 2,454 0 0 2,454 Contractors 275 2,001 0 2,276 Other 21,207 4,083 2,055 27,345 $587,038 $70,209 $25,826 $683,073