Notes to SEFA
The accompanying schedule of expenditures of federal awards (the "Schedule") include the federal award activity of Housing on Merit and Subsidiaries (the "Organization") under programs of the federal government for the year ended December 31, 2025. 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"). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. For the year ended December 31, 2025, no awards were passed through subrecipients.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following as applicable, the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Organization has elected to use the de minimis indirect cost rate allowed under the Uniform Guidance
The Corporation received funding under the Housing for a Healthy California Program administered by the California Department of Housing and Community Development under Contract No. 21-HHCC-00001. The funding consisted of (1) a Capitalized Operating Subsidy Reserve grant of $4,102,240 and (2) a long-term loan with an approved amount of $6,896,006, of which approximately $6,206,405 had been disbursed as of year-end. The long-term loan is not recorded as debt in the Organization's consolidated financial statements and is not included in the accompanying Schedule of Expenditures of Federal Awards. The loan agreement is between HCD and the project entity, Crossroads Village, and is recorded as debt on the project entity's financial statements. The assistance listing number associated with the program is 14.275.