Title: NOTE 3 - Federal Loan Programs
Accounting Policies: NOTE 2 BASIS OF ACCOUNTING As described in Note 1 to the Authority's basic financial statements for the year ended June 30, 2022, the Authority follows the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Certain single family mortgage loans of the Authority are insured by the Federal Housing Administration (FHA) or guaranteed by either the Veterans Administration (VA) or the U.S. Department of Agriculture. As of June 30, 2022, the outstanding balance of single family mortgage loans with FHA-insurance approximated $5,247,895,000 including new loans issued during the year ended June 30, 2022 approximating $1,050,903,996. As of June 30, 2022, the outstanding balance of single family mortgage loans partially guaranteed by the VA approximated $1,054,465,000 including new loans issued during the year ended June 30, 2022 approximating $141,934,015. Additionally, certain multi-family mortgage loans of the Authority are insured through the FHA risk-sharing program. As of June 30, 2022, the outstanding balance of FHA-insured loans approximated $34,800,000, for which FHA has insured through the risk share program 10% of the outstanding balance or $3,480,000. During the year ended June 30, 2022 there were no new risk-share loans issued.
Title: NOTE 1 - General
Accounting Policies: NOTE 2 BASIS OF ACCOUNTING As described in Note 1 to the Authority's basic financial statements for the year ended June 30, 2022, the Authority follows the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE 1GENERALThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the Virginia Housing Development Authority (the Authority). The Authoritys reporting entity is defined in note 1 to the Authoritys basic financial statements for the year ended June 30, 2022. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included in the Schedule and accompanying notes.
Title: Government National Mortgage Association (GNMA) Mortgage-Backed Securities
Accounting Policies: NOTE 2 BASIS OF ACCOUNTING As described in Note 1 to the Authority's basic financial statements for the year ended June 30, 2022, the Authority follows the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE 4GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) MORTGAGE-BACKED SECURITIES PROGRAM (MBS PROGRAM)Certain mortgage loans of the Authority were pooled and packaged as mortgage loan pass-through certificates guaranteed by GNMA through its MBS Program. For the year ended June 30, 2022, the Authority issued mortgage-backed securities of approximately $1,069,861,104 through the MBS Program.
Title: NOTE 5 - Financial Adjustment Factor (FAF) #181
Accounting Policies: NOTE 2 BASIS OF ACCOUNTING As described in Note 1 to the Authority's basic financial statements for the year ended June 30, 2022, the Authority follows the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE 5FINANCIAL ADJUSTMENT FACTOR (FAF) #181As the Commonwealth of Virginias administrator for the U.S. Department of Housing and Urban Developments (HUD) Section 8 Fair Market Rents program, the Authority administers the Financial Adjustment Factor (FAF) #181 program. The FAF program does not receive any expenditures of federal awards directly, but uses funds included and reported under the Section 8 New Construction and Substantial Rehabilitation (CFDA No. 14.182) programs to make loan disbursements for qualifying low income housing projects.
Title: NOTE 6 - Relationship to Federal Financial Reports
Accounting Policies: NOTE 2 BASIS OF ACCOUNTING As described in Note 1 to the Authority's basic financial statements for the year ended June 30, 2022, the Authority follows the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
NOTE 6RELATIONSHIP TO FEDERAL FINANCIAL REPORTSAmounts reported in the accompanying Schedule agree with the amounts reported in the related federal financial reports for the year ended June 30, 2022 filed by the Authority.