Notes to SEFA
Title: MORTGAGE PAYABLE HUD LOAN PROGRAM
Accounting Policies: NOTE 1 GENERALThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) presentsthe activity of all federal financial assistance programs of Fowler Christian Apartments, Inc.(the Organization). The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(the Uniform Guidance). Since the schedule presents only a select portion of the activities ofthe Organization, it is not intended to and does not present the financial position, changes innet assets or cash flows of the Organization.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The ending Mortgage Payable loan balance is $6,143,446 at December 31, 2022.
Title: ASSISTED LIVING CONVERSION PROGRAM GRANT
Accounting Policies: NOTE 1 GENERALThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) presentsthe activity of all federal financial assistance programs of Fowler Christian Apartments, Inc.(the Organization). The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(the Uniform Guidance). Since the schedule presents only a select portion of the activities ofthe Organization, it is not intended to and does not present the financial position, changes innet assets or cash flows of the Organization.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
On March 27, 2013, the Organization entered into an assisted living conversion programgrant agreement with HUD with the maximum funds awarded to the Organization in theamount of $2,434,287 to convert 24 existing units into units for assisted living pursuant torequirements of the Section 202(b). As a condition of receiving assistance under the grantagreement, the Organization will continue to operate the Project, including the serviceenriched housing, as a facility for the elderly for at least 20 years beyond the final maturitydate stated in the Mortgage covering the Organization (Note 7). Subject to the availability ofappropriations, HUD shall provide and be accepted by the Organization the renewal of itsSection 8 Housing Assistance Payment Contract for the extended operation period.