Notes to SEFA
Title: Section 236 Interest Reduction Payment Program
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organizations basic financial statements. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Section 236 Interest Reduction Payment Program is provided through HUD. The program provides assistance payments on a monthly basis and effectively brings the interest rate paid by the Organization down. The difference between the payment calculated at the lower interest rate and the payment required by the terms of the mortgage represents the interest reduction payment.
Title: Loan Guarantee
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organizations basic financial statements. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organization has a 233(f)/207 HUD insured mortgage with an outstanding balance of $5,772,659 at September 30, 2022. The mortgage is payable in monthly installments of $48,790, which is reduced by an interest reduction payment of $23,250 per month, for seven years and nine months commencing July 1, 2015, resulting in monthly payments of $25,540 including interest. The note is set to mature 2050. ......................... 9/30/2021 Balance Principal Payments 9/30/2022 Balance HUD Insured Mortgage: $6,148,930 $376,271 $5,772,659