METROPOLITAN DEVELOPMENT
AND HOUSING AGENCY
NASHVILLE, TENNESSEE
ANNUAL FINANCIAL REPORT
AND OTHER FINANCIAL INFORMATION
SEPTEMBER 30, 2023
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
Table of Contents
INTRODUCTION ............................................................................................................................. 1
ORGANIZATIONAL CHART ........................................................................................................ 2
BOARD OF COMMISSIONERS .................................................................................................... 3
REPORT OF INDEPENDENT AUDITOR ..................................................................................... 4 - 6
MANAGEMENT'S DISCUSSION AND ANALYSIS ................................................................... 7 - 13
FINANCIAL STATEMENTS
Statement of Net Position .................................................................................................................. 14 - 15
Statement of Revenues, Expenses, and Changes in Net Position .................................................... 16
Statement of Cash Flows ................................................................................................................... 17 - 18
Notes to Financial Statements ........................................................................................................... 19 - 52
SUPPLEMENTARY INFORMATION
Schedule of Expenditures of Federal Awards ................................................................................... 53 - 56
Schedule of Changes in Long-term Debt by Individual Issue .......................................................... 57
OTHER REPORTS
Report of Independent Auditor on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ................................................. 58 - 59
Report of Independent Auditor on Compliance for Each Major Federal Program and
Report on Internal Control over Compliance in Accordance with the Uniform Guidance .......... 60 - 61
Schedule of Findings and Questioned Costs ..................................................................................... 62
Summary Schedule of Prior Audit Findings ..................................................................................... 63
Financial Data Schedules .................................................................................................................. 64 - 69
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METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
INTRODUCTION
The Metropolitan Housing and Development Agency ("MDHA" or the "Agency") is pleased to present its
Annual Financial Report and Other Financial Information for the year ended September 30, 2023.
Responsibility and Controls
MDHA's system of internal accounting control is evaluated on an ongoing basis by internal financial staff.
Cherry Bekaert LLP, external auditors, also consider certain elements of the internal control system in
order to determine auditing procedures for the purpose of expressing an opinion on the financial statements.
Management believes that its policies and procedures provide guidance and reasonable assurance that
MDHA's operations are conducted according to management's intentions and to a high standard of business
ethics. In management's opinion, the financial statements present fairly, in all material respects,
the financial position of MDHA as of September 30, 2023, and the changes in financial position and
cash flows for the year then ended in conformity with accounting principles generally accepted in the
United States of America.
Audit Assurance
The unmodified opinion of the independent external auditors, Cherry Bekaert LLP, on the September 30,
2023, financial statements is included in this report.
Metropolitan Development and Housing Agency
REV.030624A
Candace Jamison
Chief Operating Ocer
Norman Deep
Director of
Rental Assistance
Timothy Harris
Director of
Information Technology
Julia Moss
Director of
Affordable Housing
Eugene Spencer
Director of
Resident Services
Pat Thicklin
Director of
Human Resources
Emel Alexander
Director of
Community Development
Joe Cain
Director of
Urban Development
Will Choppin
General Counsel
Melinda Hatfield
Director of Finance
Curtis Thomas
Director of
Planning and Development
Jamie Berry
Chief of Staff
Vanessa Melius
Senior Grant
Development Specialist
Charlotte Weatherington
Assistant Director
of Communications
Position To Be Filled
Director of Intergovernmental
Affairs/Public Policy
LaTonya Ellis
Executive Oce Manager
Mike Wegerson
Director of
Construction
Board of Commissioners
Dr. Troy D. White
Executive Director
2
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METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
BOARD OF COMMISSIONERS
September 30, 2023
Bill Purcell, Chair
Emily Thaden, Vice Chair & Chair of Finance and Development
Kay Bowers, Chair of Housing and Community & Human Resources
Mr. Johnny Moore, Commissioner
Shedenia M. Fletcher, Commissioner
Lita Salinas, Commissioner
Paulette Coleman, Commissioner
cbh.com
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Report of Independent Auditor
To the Board of Commissioners
Metropolitan Development and Housing Agency
Nashville, Tennessee
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the business-type activities and the aggregate
discretely presented component units of Metropolitan Development and Housing Agency (the “Agency”), a
component unit of Metropolitan Government of Nashville and Davidson County, as of and for the year ended
September 30, 2023, and the related notes to the financial statements, which collectively comprise the Agency’s
basic financial statements as listed in the table of contents.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the business-type activities, and the
aggregate discretely presented component units of the Agency as of September 30, 2023, and the respective
changes in financial position, and, where applicable, cash flows thereof
for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
We did not audit the financial statements of Levy Place, LP; Ryman Lofts at Rolling Mill Hill, LP; Boscobel I, LP;
CP II, LP; Victory Hall, LP; Boscobel III, LP; and Randee Rogers, LP, which represent 90%, 98%, and 95%,
respectively, of the assets, net position, and revenues of the total discretely presented component units. Those
financial statements were audited by other auditors whose report hereon has been furnished to us, and our
opinion, insofar as it relates to the amounts included for Levy Place, LP; Ryman Lofts at Rolling Mill Hill, LP;
Boscobel I, LP; CP II, LP; Victory Hall, LP; Boscobel III, LP; and Randee Rogers, LP, is based solely on the report
of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern
for twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not
a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the Agency’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the financial
statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Agency’s ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related matters that
we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis, as listed in the table on contents, be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Agency’s basic financial statements. The accompanying schedule of expenditures of federal awards, as
required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards, the schedule of changes in long-term debt by individual
issue, and the Financial Data Schedules are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was derived from
and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial
statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the financial statements. The other information
comprises the introduction, organizational chart, and Board of Commissioners but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover
the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are required
to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 19, 2024, on
our consideration of the Agency’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is solely to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing and not to provide an opinion on the effectiveness of the Agency’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Agency’s internal control over financial reporting and
compliance.
Lexington, Kentucky
March 19, 2024
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MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the Metropolitan Development and Housing Agency's ("MDHA" or the "Agency") annual financial
report presents management's discussion and analysis of the Agency's financial performance during the fiscal years
ended September 30, 2023 and 2022. Please read this analysis in conjunction with the Agency's financial statements
and accompanying notes.
OVERVIEW OF THE AGENCY
As the housing and development agency of Nashville and Davidson County, MDHA's mission is to create
affordable housing opportunities, support neighborhoods, strengthen communities, and help build a greater
Nashville. The Agency owns and/or manages more than 6,500 apartments at nearly 40 properties/developments
and administers nearly 8,000 vouchers, providing stable housing to approximately 30,000 people. The Agency
also facilitates several programs that ensure affordable apartments are created and preserved.
Established in 1938, MDHA is a government agency predominately funded by the federal government and
chartered by the state to serve Davidson County. It is governed by a seven-member Board of Commissioners
appointed by the Mayor and confirmed by Metro Council.
As the largest owner and operator of affordable housing in Nashville, MDHA seeks every opportunity to be a
leading voice in developing solutions to Nashville's housing affordability crisis.
Cayce Transformation
MDHA is committed to transforming its aging family properties into mixed-income communities. The process
ensures a one-for-one replacement of the existing federally subsidized units at each site while adding new affordable,
workforce and market-rate housing. The Agency's first transformation at Cayce Place has been demonstrating
promising returns through community engagement, safety outcomes, and new modern apartment buildings. As of
December 31, 2023, 507 new apartments have been completed as part of the Cayce Transformation, and more than
400 units are currently under construction.
Other notable achievements in 2023 include:
- 11 homes purchased by MDHA residents and Section 8 voucher participants
- 22 Family Self-Sufficiency graduates
- $1,903,808 in grant awards
- 8,908 individuals served through HOME, CDBG, ESG and HOPWA programs
- 1,012 individuals and families experiencing homelessness permanently housed through MDHA’s Section 8
programs; 4,874 are Veterans
- 50 new vouchers from HUD
The Agency employs approximately 350 people who work in 13 departments:
- The Executive Department is composed of top-level executives including the executive director, chief
operating officer and chief of staff, and support staff. The executive director, who serves as secretary of the
Board of Commissioners, is responsible to the Board for implementation of policy and the development and
operation of all programs and projects of the Agency.
- The Affordable Housing Department is responsible for the administration and normal routine maintenance
of the Agency’s portfolio of more than 6,500 apartments. The overall portfolio consists of HUD subsidized,
workforce and market-rate apartments, with many of the newer developments offering mixed-income
housing. Additionally, the Department oversees a third-party vendor management service for 403 units.
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
OVERVIEW OF THE AGENCY (CONTINUED)
- The Communications Department oversees all internal and external outreach and messaging on behalf of
the Agency, including branding, social media, newsletters, video and other creative deliverables. It is the
Agency’s hub for media relations. The Communications Department is also the keeper of the Agency’s
history through the MDHA archives.
- The Community Development Department administers four U.S. Department of Housing and Urban
Development (HUD) programs to benefit low- and moderate-income persons and areas: Community
Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency
Solutions Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA). These funds are
awarded annually and the priorities for the use of the funds are listed in the Consolidated Plan. Activities
include assisting persons experiencing homelessness, rehabilitation of owner/occupied and rental units,
affordable housing construction, infrastructure improvements, summer youth programs, fair housing
outreach, microenterprise assistance and healthy food initiatives. The Department also serves as the lead
agency for the Nashville Promise Zone (NPZ).
- The Construction Department is responsible for the procurement, monitoring and compliance of the
Agency’s service and construction contract activities, including new construction, modernization,
development and approved Metro capital improvement projects. The Department is also responsible for
implementing, monitoring and enforcing the Agency’s Comprehensive Plan for Modernization, Diversity
Business Enterprise (DBE) and Section 3 programs.
- The Finance Department is responsible for sound management of the Agency’s resources, including the
development of adequate budget practices, treasury management, accounting and internal controls to
safeguard the assets of the Agency. The Department also develops and executes an investments program for
the Agency, maintains adequate accounting and payroll records, employee benefit programs and insurance
coverage on the assets and operations of the Agency.
- General Counsel is the Agency’s representative in court and monitors pending and active legislation at local
and state levels. General Counsel facilitates Memorandums of Understanding (MOU) with Metro, nonprofits
and other partners and responds to open records requests. General Counsel also works with board counsel on
matters relating to board and committee meetings.
- The Human Resources Department facilitates staffing, performance management and training for the
Agency. The department administers opportunities for total rewards compensation and benefits to employees.
- The Information Technology Department oversees network, server, wireless communications (Wi-Fi),
phone and PC hardware infrastructures. It maintains licensing, access management and software applications
for core business functions. The department facilitates cybersecurity awareness training and monthly
phishing simulation testing and provides Help Desk, PC and mobile phone support for all staff.
-
The Plannin
g & Development Department facilitates financing and funding, oversees the implementation
of projects and cultivates relationships with developer pa
rtners. Key to the Department’s efforts are resident
engagement and community planning activities.
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
OVERVIEW OF THE AGENCY (CONTINUED)
- The Rental Assistance Department administers the Section 8 Housing Choice Voucher Program,
Project-Based Vouchers, Veterans Affairs Supportive Housing (VASH) program, Single Room Occupancy
Program, Shelter Plus Care Program and Emergency Housing Vouchers. Through these programs, the
Department assists nearly 8,000 families in Davidson County. In addition, the Department also employs
Family Self-Sufficiency (FSS) coordinators, which provides incentives and support to participants in the
program to help them reach their goals.
- The Resident Services Department is dedicated to connecting residents with resources, information,
activities and services that can help them reach their full potential. Through the Department, residents have
access to education, job training, homeownership and other tools to help them achieve self-sufficiency and
economic stability.
- The Urban Development Department oversees 11 redevelopment districts, manages Metro’s Tax
Increment Financing (TIF) program and serves as a developer for the city. One of its current projects is the
rebuild of historic Second Avenue in downtown Nashville. The department also manages the Payment in
Lieu of Taxes (PILOT) program, which provides financial incentives for Low-Income Housing Tax Credit
(LIHTC) developments that encourage new construction and substantial rehabilitation of affordable
multi-family housing. Since its inception in 2016, the program has assisted in the creation or preservation of
nearly 9,000 affordable apartments.
In late 2023, the Agency updated its Strategic Plan, which was created in 2022.
The Plan includes the following four goals:
Goal 1 – Preserve and expand affordable housing in Metropolitan Nashville and Davidson County.
- MDHA had more than 400 apartments under construction and assisted in the creation or preservation of 1,012
apartments through the PILOT program.
Goal 2 – Provide sustainable and healthy communities.
- For the first time in its 85-year history, the Agency created a Resident Services Department dedicated to
helping residents achieve their full potential.
Goal 3 – Cultivate, enhance and evaluate strategic partnerships to better serve residents.
- MDHA expanded formal partnerships with multiple nonprofits/service providers to expand services and
upward mobility programming to residents.
Goal 4 – Continuously improve MDHA’s operations.
- The Agency created a new more user-friendly Agency website in 2023.
MDHA’s annual budget exceeds $160 million with capital spending budgets approaching $50 million on a recurring
basis. The operating and capital budgets are self-funded through operations, development fees, grant programs and
philanthropy.
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual financial report consists of two parts: management's discussion and analysis and the basic financial
statements. The Agency follows enterprise fund reporting; accordingly, the financial statements are presented using
the economic resources measurement focus and the accrual basis of accounting. Enterprise fund statements offer
short-term and long-term financial information about the activities and operations of the Agency. While detailed
sub-fund information is not presented, separate accounts are maintained for each program of the Agency.
The financial statements include a statement of net position; statement of revenues, expenses, and changes in net
position; statement of cash flows; and notes to the financial statements. The statement of net position provides a
record or snapshot of the assets and liabilities at the close of the fiscal year. It presents the financial position of the
Agency on a full accrual historical cost basis. The statement of revenues, expenses, and changes in net position
presents the results of the business activities over the course of the fiscal year. The statement of cash flows is related
to the other financial statements by the way it links changes in assets and liabilities to the effects on cash and cash
equivalents over the course of the fiscal year. The notes to the financial statements provide useful information
regarding the Agency's significant accounting policies, significant account balances and activities, certain material
risks, obligations, commitments, contingencies and subsequent events.
FINANCIAL ANALYSIS OF THE AGENCY
Net Position
Fiscal year 2023 as compared to fiscal year 2022:
The Agency's total net position decreased $1.5 million or -0.4%, in part as a result of the following:
2023
2022
142,366,971$ 155,932,711$ (8.7) %
Noncurrent assets
Capital assets 342,394,060 336,791,408 1.7 %
Other assets 132,920,844 123,817,475 7.4 %
Total assets 617,681,875 616,541,594 0.2 %
36,131,184 26,568,974 36.0 %
143,718,408 149,694,413 (4.0) %
Total liabilities 179,849,592 176,263,387 2.0 %
Deferred inflows of resources 10,796,433 11,716,609 (7.9) %
236,443,688 236,065,680 0.2 %
62,823,115 58,050,856 8.2 %
127,769,047 134,445,062 (5.0) %
Total net position 427,035,850$ 428,561,598$ (0.4) %
% Increase
(Decrease)
Unrestricted net position
Current liabilities
Long-term liabilities
Net investment in capital assets
Restricted net position
Current assets
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
FINANCIAL ANALYSIS OF THE AGENCY (CONTINUED)
Total assets increased $1.1 million during the fiscal year. Current assets decreased $13.6 million due to capital
projects for Cayce utility and site work along with Agency equity funds utilized for Cherry Oak Apartments,
5
th
& Summer and Park Point East construction projects. Other assets increased $9.1 million due issuance of
notes receivable for Randee Rogers, Boscobel IV, and Room in the Inn projects. Capital assets increased
$5.6 million primarily due to construction project activities offset by depreciation expense during the fiscal
year.
Total liabilities increased $3.6 million during the fiscal year. Current liabilities increased $9.6 million primarily
due to an increase in the current portion of long-term debt used for Boscobel IV. Long-term liabilities decreased
$6.0 million primarily due to debt used for Boscobel IV.
Deferred inflows of resources decreased $.9 million during the fiscal year, due to the recognition of lease
revenue during the fiscal year.
Revenues, Expenses and Changes in Net Position
Fiscal year 2023 as compared to fiscal year 2022:
2023
2022
Operating revenues
Rentals 19,952,141$ 20,937,352$ (4.7) %
Other tenant revenue 810,513 709,142 14.3 %
Governmental operating revenue 130,764,819 121,411,542 7.7 %
Local government development activities 11,722,066 5,756,874 >100 %
Other 15,426,268 30,625,125 (49.6) %
Total operating revenues 178,675,807 179,440,035 (0.4) %
Operating expenses
Administrative expenses 28,999,259 25,171,734 15.2 %
Other 149,908,722 128,230,501 16.9 %
Total operating expenses 178,907,981 153,402,235 16.6 %
Operating (loss) income (232,174) 26,037,800 (<100) %
Nonoperating revenues (expenses) (496,844) 9,049,801 (<100) %
Other special items (796,730) -
Change in net position (1,525,748)$ 35,087,601$ (<100) %
% Increase
(Decrease)
The Agency's operating revenue decreased $.8 million and operating expenses increased $25.5 million, in part as a
result of the following:
Rental revenue decreased $1.0 million during the fiscal year. This decrease is due to vacancies and tenant bad debts
across the portfolio.
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
FINANCIAL ANALYSIS OF THE AGENCY (CONTINUED)
Governmental operating revenue increased $9.3 million during the fiscal year. This is due to an increase in Rental
Assistance HAP and administrative and new CAREs funds allocated to Community Development passed through to
subrecipients.
Local government development activities revenue increased $6.0 million due to utilized funding from the
Metropolitan Government of Nashville and Davidson County for the mixed income housing development Randee
Rogers and the 2
nd
Avenue Recovery project.
Other revenue decreased $15.2 million during the fiscal year. The decrease is primarily due to the sale of the Trolley
Barns Parking Garage and transfer fees earned for River and Terra House in fiscal year 2022.
Administrative expense increased $3.8 million during the fiscal year. $2.4 million is due to increased administrative
salary and benefits cost, $1.0 million due to IT infrastructure upgrades to improve the performance of the Agency's
networks, and $.4 million is due to increased legal and staffing training cost.
Other operating expense increased $21.7 million during the fiscal year. $6.0 million is due to increased spending for
grant programs and 2
nd
Avenue Recovery project, $5.3 million is due to an increase in housing assistance payments
to landlords due to increased unit payment standards, a full year administering the emergency voucher program and
89 additional vouchers received during 2023, $5.1 million is due to increased maintenance contracts and materials
cost, $2.4 million is due to increased maintenance salary and benefit cost, $2.2 million is due to insurance claim cost,
and $.6 million is due to increased on-site security and new/replacement camera cost.
Nonoperating revenues (expenses) decreased $9.5 during the fiscal year. The decrease is primarily due to the gain
from the sale of Land on Rolling Mill Hill in 2022.
CAPITAL ASSETS
Fiscal year 2023 as compared to fiscal year 2022:
2023 2022
Land 103,698,001$ 103,052,006$
Infrastructure 26,768,925 26,768,925
Buildings 439,151,329 442,119,726
Equipment 7,352,143 7,685,503
Construction in progress 30,192,056 13,693,929
Total 607,162,454 593,320,089
Less accumulated depreciation (264,768,394) (256,528,681)
Net capital assets 342,394,060$ 336,791,408$
Net capital assets increased $5.6 million, or 1.7% during fiscal year 2023. During fiscal year 2023, the Agency
expended $16.6 million on construction in progress activities for Cayce Linear Park, Park Point East, 5
th
& Summer,
Boscobel Site Utility work, and Boscobel IV. The Agency expended an additional $2.2 million on roofs, HVACs,
security upgrades, fire pump, and settlement remediation during the fiscal year. Current year depreciation expense
on capital assets totaled $13.2 million.
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MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
DEBT ADMINISTRATION
Fiscal year 2023 as compared to fiscal year 2022:
2023 2022
Total notes payable - other 156,866,033$ 154,776,013$ 1.35%
(Decrease)
% Increase
As of September 30, 2023, the Agency's note principal and interest outstanding totaled $156.8 million - a increase of
1.4% from the prior year. The Agency incurred $7.2 million in new debt for the construction of Boscobel IV Market
units plus $1.3 million of accrued interest on notes, which was offset by $6.5 million in principal payments for
existing debt.
AFFILIATE AGREEMENTS
The Agency has included, as discretely presented component units, the activity for Levy Place, LP; Ryman Lofts at
Rolling Mill Hill, L.P; Boscobel I, L.P.; CP II, L.P.; Boscobel III, L.P.; Victory Hall, L.P.; Randee Rogers, L.P.; and
Boscobel IV, L.P. Boscobel IV, L.P. entered into an Amended and Restated Agreement of Limited Partnership with
Red Stone Equity – Fund 95 L.P., the Investor Limited Partner and Red Stone Equity Manager, LLC, the Special
Limited Partner to facilitate their equity investment for the project in December 2022. These entities are shown as
discretely presented component units because the Agency is financially accountable for them; however, it does not
have full ownership over the entities. The MDHA Housing Trust Corporation, which is included in the Primary
Government, has a 0.01% general partner interest in each of these entities.
Requests for the full financial information of the Levy Place, L.P.; the Ryman Lofts at Rolling Mill Hill, L.P.; the
Boscobel I, L.P.; the CP II, L.P.; Boscobel III, L.P.; Victory Hall, L.P.; and Randee Rogers, L.P. (the Discretely
Presented Component Units) should be addressed to The Metropolitan Development and Housing Agency, 701 South
Sixth Street, Nashville, Tennessee, 37206.
CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT
This financial report is designed to provide residents, customers, investors and creditors with a general overview of
the Agency's finances and to demonstrate the Agency's accountability for the monies it receives. If you have questions
about this report or need additional financial information, contact the Director of Finance at MDHA, P.O. Box 846,
Nashville, TN 37202.
The accompanying notes to the financial statements are an integral part of these statements.
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Discretely
Presented
Primary Component
Government Units
CURRENT ASSETS
Cash and cash equivalents 54,540,228$ 3,525,494$
Restricted cash and cash equivalents 67,110,165 5,157,929
Investments, at fair value 4,590,491 -
Receivables:
Tenant, net of allowances 653,713 141,282
Amounts due from other governmental agencies 7,985,487 14,864
Current portion of notes receivable, net of allowances 108,835 -
Notes receivable between the primary government and its
discretely presented component units, net of allowances 233,000 -
Lease receivable 669,454 -
Lease interest receivable 37,076 -
Other 2,601,793 -
Inventory 1,525,310 -
Prepaid expenses 2,311,419 885,165
TOTAL CURRENT ASSETS 142,366,971 9,724,734
CAPITAL ASSETS, NET 342,394,060 152,032,057
NONCURRENT ASSETS
Other assets 32,066,851 742,954
Notes receivable, net of allowances 26,660,272 -
Lease receivable 10,635,205 -
Notes receivable between the primary government and its
discretely presented component units, net of allowances 63,558,516 -
TOTAL NONCURRENT ASSETS 132,920,844 742,954
DEFERRED OUTFLOWS OF RESOURCES - -
TOTAL ASSETS 617,681,875$ 162,499,745$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
ASSETS
The accompanying notes to the financial statements are an integral part of these statements.
-15-
Discretely
Presented
Primary Component
Government Units
CURRENT LIABILITIES
Funds held for others 1,637,653$ -$
Accounts payable 11,780,343 388,719
Contract retention payable 310,985 -
Compensated absences payable 961,325 8,367
Accrued liabilities 2,728,109 1,049,891
Due to tenants 1,903,021 315,610
Unearned revenue 998,365 105,392
Current portion of long-term debt 15,811,383 21,477,215
Current debt between the primary government and its
discretely presented component units - 239,626
TOTAL CURRENT LIABILITIES 36,131,184 23,584,820
NONCURRENT LIABILITIES
Deposits 690,642 87,570
Long-term debt, less current maturities 141,054,650 18,772,462
Long-term debt between the primary government and its
discretely presented component units - 61,979,112
Long-term compensated absences payable 1,973,116 16,697
TOTAL NONCURRENT LIABILITIES 143,718,408 80,855,841
TOTAL LIABILITIES 179,849,592 104,440,661
DEFERRED INFLOWS OF RESOURCES 10,796,433 -
NET POSITION
Net investment in capital assets 236,443,688 49,563,642
Restricted for:
Replacement reserves 57,507,331 2,565,234
HAP reserves 440,434 -
Other escrows 4,875,350 13,954
Partnership operating reserves - 1,953,833
Construction - 226,811
Unrestricted net position 127,769,047 3,735,610
TOTAL NET POSITION 427,035,850 58,059,084
TOTAL LIABILITIES AND NET POSITION 617,681,875$ 162,499,745$
LIABILITIES
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
STATEMENT OF NET POSITION
(
CONTINUED
)
SEPTEMBER 30, 2023
The accompanying notes to the financial statements are an integral part of these statements.
-16-
Discretely
Presented
Primary Component
Government Units
OPERATING REVENUES
Rentals 19,952,141$ 4,741,499$
Other tenant revenue 810,513 306,700
Governmental operating revenue 130,764,819 2,104,880
Program income 393,124 -
Local government development activities 11,722,066 -
Other income 15,033,144 213,798
TOTAL OPERATING REVENUES
178,675,807 7,366,877
OPERATING EXPENSES
Cost of Services:
Tenant services
1,076,728 170,386
Utilities
11,132,134 600,512
Ordinary maintenance and operations
28,030,389 1,120,522
Protective services
2,652,162 173,076
Other direct program costs
25,926,613 1,138,697
Housing assistance payments
67,834,123 -
Administration
28,999,259 1,877,161
Depreciation and amortization
13,256,573 4,472,210
TOTAL OPERATING EXPENSES
178,907,981 9,552,564
OPERATING LOSS
(232,174) (2,185,687)
NONOPERATING REVENUES (EXPENSES)
Interest income 3,561,821 14,690
Gain on disposition of assets 790,007 -
Interest expense (4,848,672) (1,514,326)
TOTAL NONOPERATING EXPENSES - NET (496,844) (1,499,636)
DECREASE IN NET POSITION BEFORE
CONTRIBUTIONS AND OTHER LOSSES (729,018) (3,685,323)
Members capital contributions - 15,189,157
Other special items (796,730) 106,252
CHANGE IN NET POSITION (1,525,748) 11,610,086
NET POSITION - BEGINNING OF YEAR
428,561,598 46,448,998
NET POSITION - END OF YEAR 427,035,850$
58,059
,084$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEAR ENDED SEPTEMBER 30, 2023
The accompanying notes to the financial statements are an integral part of these statements.
-17-
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from rental operations 20,541,027$
Receipts from program income 205,043
Receipts from government subsidy for operations 132,492,627
Receipts from local governmental development activities 9,671,062
Receipts from other sources 12,287,774
Receipts from inventory sales -
Payments for inventory purchases -
Payments to and on behalf of employees (31,566,935)
Payments for other administrative expenses (6,713,817)
Payments for other direct program costs, including housing assistance payments (124,887,455)
Program loan activities:
Cash expended for program loans (7,303,187)
Principal collections on notes receivable 793,509
Interest income collections 114,097
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,633,745
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Receipts from governmental capital grants -
Purchases of capital assets (18,828,612)
Proceeds from capital debt 2,931,697
Principal paid on capital debt (4,577,147)
Proceeds from sales of capital assets 800,000
Payments for special items (796,730)
Interest paid on capital debt (4,725,102)
NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (25,195,894)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments, including reinvested interest (76,184)
Proceeds from the sales and maturities of investments -
Interest received 3,561,819
NET CASH PROVIDED BY INVESTING ACTIVITIES 3,485,635
CASH FLOW FROM SPECIAL ITEMS
Payments for special items -
NET CASH USED BY SPECIAL ITEMS -
NET DECREASE IN CASH AND CASH EQUIVALENTS (16,076,514)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 137,726,907
CASH AND CASH EQUIVALENTS - END OF YEAR 121,650,393$
Supplemental di scl osure of noncash i nvesti ng and financi ng activities:
Additions to debt composed of accrued interest 5,642,922$
Retirements of debt composed of accrued interest (1,907,452)$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
The accompanying notes are an integral part of these financial statements.
-18-
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income (232,174)$
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation and amortization expense 13,256,573
Bad debt expense 2,014,785
Changes in assets and liabilities
Accounts receivable (3,583,898)
Prepaid expenses and other assets 112,127
Due to tenants 20,903
Accounts payable, funds held for others, contract retention
and amounts due to other governments 1,669,555
Deferred revenue and other deposits (1,815,967)
Accrued liabilities and compensated absences 701,519
Program loan activities:
Cash expended for program loans (7,303,187)
Principal collections on notes receivable 793,509
TOTAL ADJUSTMENTS 5,865,919
NET CASH PROVIDED BY OPERATING ACTIVITIES 5,633,745$
RECONCILIATION OF CASH TO THE STATEMENT OF NET P OSITION
Cash and cash equivalents 54,540,228$
Restricted cash and cash equivalents 67,110,165
CASH AND CASH EQUIVALENTS - END OF YEAR
121,650,393$
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2023
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS
-19-
NOTE 1 - NATURE OF THE AGENCY
The Metropolitan Development and Housing Agency of Nashville, Tennessee ("MDHA" or the "Agency"), a public
corporate body, was organized in 1938 under the laws of the State of Tennessee and is a discretely presented
component unit of the Metropolitan Government of Nashville and Davidson County (the "Metropolitan
Government"). The Agency was created for the purpose of providing affordable housing opportunities in a safe
environment. MDHA has administrative responsibility for various other community development programs whose
primary purpose is the development of viable urban communities.
The governing body of the Agency is its Board of Commissioners, composed of seven members appointed by the
Mayor and confirmed by the Metropolitan Council of Nashville and Davidson County, Tennessee.
See additional information in NOTE 2 for reporting entity regarding both the primary government and discretely
presented component units.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Measurement Focus, Basis of Accounting and Basis of Presentation
The financial statements are presented using the accrual basis of accounting with an economic resource
measurement focus. Under this method, revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred. As permitted by accounting principles generally accepted in the United States of America
("GAAP"), the Agency has elected to apply all relevant Government Accounting Standards Board ("GASB")
pronouncements.
The Agency distinguishes operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from grant agreements, providing services, and producing and delivering goods in
connection with the ongoing principal operations. The principal operating revenues of the Agency include program
specific grants, rental income from tenants of the various single and multi-family housing projects, and development
fees for the administration of various community development programs and capital projects of the Metropolitan
Government. Operating expenses include the cost of services, administrative expenses, and depreciation on capital
assets. Revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Reporting Entity
As described in GAAP the Agency is considered a primary government and meets the definition of a special purpose
government ("SPG"). MDHA is a legally separate entity that is engaged in only business-type activities.
Business-type activities are defined as activities that are financed in whole or in part by fees charged to external
parties for goods or services. SPGs engaged only in business-type activities are required to present only the financial
statements required for proprietary programs, which includes Management's Discussion and Analysis ("MD&A"),
basic financial statements, and Required Supplemental Information ("RSI"). All inter-program activities have been
eliminated in these financial statements.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-20-
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reporting Entity (Continued)
The Agency has included, as discretely presented component units, the activity for Levy Place, L.P.; Ryman Lofts
at Rolling Mill Hill, L.P.; Boscobel I, L.P.; CP II, L.P.; Victory Hall, L.P.; Boscobel III, L.P.; and Randee
Rogers, L.P. as of and for the year ended December 31, 2022. These entities are shown as discretely presented
component units because the Agency is financially accountable for them; however, it does not have full ownership
over the entities. The Agency has included the activity for Boscobel IV, L.P. as of September 30, 2023. This entity
also meets the criteria to be included as a discretely presented component unit; however, construction on the
property was not complete and the property was not yet subject to a separate audit requirement for the year ending
December 31, 2022. The MDHA Housing Trust Corporation, which is included in the Primary Government as a
blended component unit, has a 0.01% general partner interest in Ryman Lofts, Levy Place, Boscobel I, CP II, and
Victory Hall, and is considered a blended component unit. Total assets and net position of MDHA Housing Trust
Corporation were $177,260 and $152,480, respectively, as of September 30, 2023. Net operating income for the
year ended September 30, 2023 totaled $12,835. The accounting for these component units are such that they have
elected to apply all relevant Accounting Standard Codification ("ASC") pronouncements as issued by the Financial
Accounting Standards Board.
Requests for the full financial information of Levy Place, L.P.; Ryman Lofts at Rolling Mill Hill, L.P.;
Boscobel I, L.P.; CP II, L.P.; Victory Hall, L.P.; Boscobel III, L.P.; and Randee Rogers, L.P. (the Discretely Presented
Component Units) as of December 31, 2022 should be addressed to The Metropolitan Development and Housing
Agency, 701 South Sixth Street, Nashville, Tennessee, 37206.
The financial activity of MDHA J. Henry Hale, LLC; MDHA 10
th
& Jefferson, LLC; MDHA Madison Towers, LLC;
and MDHA Kirkpatrick Park LLC has been included in the Primary Government column of Statement of Net Position
and the Statement of Activities as blended component units in accordance with the requirements of GAAP. The
accounting for these component units are such that they have elected to apply all relevant Accounting Standard
Codification ("ASC") pronouncements as issued by the Financial Accounting Standards Board.
Proprietary Program Types - The Programs are Consolidated into a Single column for Reporting Purposes
PROJECT BASED RENTAL ASSISTANCE PROGRAM
This program is used to account for all Agency owned RAD converted properties and any mixed finance public
housing properties (which are not owned by the Agency.) It is the largest and most active of the programs and is
controlled through annual HAP contracts renewed by HUD.
CENTRAL OFFICE COST CENTER
This program contains all the income and expenses associated with the Agency's centralized functions
(e.g. executive, finance, human resources, information technology, purchasing, central maintenance, etc.). The
establishment of the program was required by HUD regulations relating to asset management.
SECTION 8 VOUCHER PROGRAM
This program is used to account for the administration of the Agency's Section 8 voucher program. It is funded by
HUD and seeks to provide prospective residents with greater choice in selection of assisted housing.
CONSOLIDATED ANNUAL ACTION PLAN PROGRAMS
This program has been created to account for the administration of programs funded by HUD. The goals of these
programs are to address the problems of affordable housing, homelessness, community development needs, and
economic opportunities for all citizens, particularly for very low-income and low-income persons.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-21-
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Proprietary Program Types - The Funds are Consolidated into a Single column for Reporting Purposes (Continued)
LOCAL PROGRAMS
This program accounts for the state funded programs and grants and programs administered on behalf of the local
government by the Agency.
BUSINESS ACTIVITIES
This program accounts for all programs that are neither federal, state, nor local that are administered by the Agency.
Cash and Cash Equivalents
The Agency's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition. Cash equivalents are stated
at fair value.
Allowance for Doubtful Accounts
The Agency uses the allowance for bad debts method of valuing doubtful receivables which is based on historical
experience, coupled with a review of the status of existing receivables. As of September 30, 2023, an allowance for
doubtful tenant receivables in the amount of $8,796,504 has been provided by management.
Investments
Investments consist primarily of certificates of deposit and are stated at cost, which approximates fair value given
the nature of the investments.
Lease Receivable and Deferred Inflow of Leases
The Agency recognizes a lease receivable and a deferred inflow of resources at commencement of the lease term,
with certain exceptions for regulated leases and short-term leases. The lease receivable is measured at the present
value of the lease payments expected to be received during the lease period. The deferred inflow of resources is
measured as the value of the lease receivable in addition to any payments received at or before the commencement
of the lease term that relate to future periods. Revenue from the included leases is recognized by amortizing the
deferred inflow on a straight-line basis.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-22-
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Capital Assets
Capital assets include property, plant, equipment, and infrastructure assets with an initial, individual cost of more
than $5,000 and an estimated useful life of one year or more. Capital assets are stated at cost. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
The costs of U.S. Department of Housing and Urban Development ("HUD") "Capital Fund" projects are reported
as construction-in-progress until audited cost certification reports are approved by HUD, at which time such costs
are transferred to appropriate fixed assets categories. Depreciation is provided by the straight-line method over the
following estimated useful lives of the assets:
Building and improvements 10 to 40 years
Infrastructure 10 to 40 years
Furniture and Equipmen
t
3 to 15 years
Additionally, the Agency holds certain capital assets under agreements with the Metropolitan Government. Under
the agreements, the proceeds from the sale of such assets revert to the Metropolitan Government. As of
September 30, 2023, the value of these assets totaled $21,500,000. The assets are recorded in capital assets at fair
value at the date of transfer.
Inventory
MDHA's inventory consists of vacant properties that have been purchased or received as contributions from the
Metropolitan Government. Inventory also includes single-family homes that were constructed with federal or state
funds and are available for sale to qualified agencies or individuals. Properties purchased or constructed are reported
at historical cost. Properties contributed by the Metropolitan Government are recorded at fair value at the date of
gift. These costs are reported as inventory until such time as the property is sold or used.
Provision for Uncollectible Notes
A note receivable is considered impaired when, based on current information, it is probable that all amounts of
principal and interest due will not be collected according to the terms of the note agreement. Uncollectible notes
are charged to the allowance account in the period such determination is made. The provision for uncollectible notes
receivable was $19,326,497 at September 30, 2023.
Compensated Absences
Most employees earn annual leave at a rate ranging from 12 days per year for the first five years of service, up to a
maximum of 25½ days per year after 20 years. There is no requirement that annual leave be taken; however, the
maximum permissible accumulation is 76½ days. Sick leave is accumulated at the rate of one work day per month.
Unused sick leave may accumulate to an unlimited amount. At termination, employees are paid for any accumulated
annual leave, and employees who have completed 15 years or more of service will be paid 20% of unused sick
leave. All annual leave and vested sick leave are accrued in the period incurred.
Restricted Assets
Restricted assets consist of cash which is legally restricted. The restricted assets primarily are to be used for purposes
specified under the Housing Choice Voucher, Family Self Sufficiency or Project Based Rental Assistance programs.
When restricted and unrestricted resources are available for use, it is the Agency's policy to use restricted resources
first, then unrestricted resources as they are needed.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-23-
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Tenant Accounts Receivable Net of Bad Debt Expense
In accordance with GAAP, revenues in proprietary funds should be reported as net of all related allowances, which
include amounts pertaining to uncollectible accounts. Therefore, the increase and decrease in the estimate of
uncollectible accounts should be reported net of revenue instead of bad debt expense. The Agency's bad debt
expense charged against revenue was $2,014,785 for the year ended September 30, 2023.
NOTE 3 - CASH, CASH EQUIVALENTS, AND INVESTMENTS
In accordance with GAAP, information related to cash, cash equivalents and investments is as follows:
A. Custodial Credit Risk
Custodial credit risk for deposits and investments is the risk that, in the event of failure by a financial
institution, the Agency may not be able to recover the value of its deposits and investments or collateral
securities that are in the possession of the financial institution. The policy of the Agency is to invest, on a
daily basis, all idle funds in financial institutions that are secured by collateral of identifiable United States
government securities. All cash and investments are insured up to $250,000 by the Federal Deposit Insurance
Corporation ("FDIC") or other equivalent insurance company of depository financial institutions. The
deposits exceeding the insured or registered limits are collateralized with securities held by the Agency's
financial institution. (See Deposit and Investment Policy on page 24.)
B. Interest Rate Risk
Interest rate risk is the risk that changes in interest rates of investments will adversely affect the fair value of
an investment. The Agency's investment policy limits investments to provide the optimum return on the
investment consistent with the cash management program of the Agency.
Investments are made based upon prevailing market conditions at the time of the transaction. The Agency
reviews its cash and investment needs in order to maintain adequate liquidity to meet its cash flow needs.
Investments will typically be limited to securities maturing in periods of up to one year, or such lesser period
that coincides with expected disbursements by the Agency.
C. Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
Investments are made under the 'prudent investor' standard to ensure that (a) due diligence is exercised in
accordance with State law, (b) any negative deviations are reported timely and (c) reasonable action is taken
to control any adverse developments. The Agency's investment policy requires investments to be made in
accordance with the laws of the State of Tennessee and HUD guidelines.
D. Concentration of Credit Risk
The Agency's investment policy does not limit the amount it may invest with one financial institution as long
as all funds are secured by the FDIC or identifiable United States government securities.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-24-
NOTE 3 - CASH, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)
E. Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect fair value of an
investment or a deposit. All of the Agency's deposits and investments are denominated in United States
currency.
Schedule of restricted cash as of September 30, 2023:
Funds held for others 1,637,653$
Deposits 1,271,306
MDHA 10th & Jefferson LLC Escrow 614,269
MDHA Kirkpatrick Park LLC Escrow 141,009
MDHA J Henry Hale LLC Escrow 606,736
MDHA Madison Towers LLC Escrow 861,645
Custodial Account for TIF financing 245,383
Due to resident councils 631,715
HAP reserves 496,168
FSS Escrow accounts 690,642
Post RAD Rehab escrows 1,286,048
Replacement reserve accounts 57,507,331
Property management company accounts 1,120,260
67,110,165$
Funds held for others in the amount of $1,637,653 are cash and cash equivalents held in MDHA's name and managed
by the Agency under a 'Memorandum of Understanding' ("MOU") for the benefit of certain affiliate entities and
escrow funds held for certain tax increment financing loans.
Tenant security deposits of $1,271,306 for rental properties managed by MDHA.
Deposits of $614,269 held by HUD for the MDHA 10
th
& Jefferson LLC replacement reserve and construction hold
out escrow.
MDHA deposits of $141,009 required by HUD for MDHA Kirkpatrick Park replacement reserve.
Deposits of $606,736 required by HUD for the MDHA J Henry Hale LLC replacement reserve.
Deposits of $861,645 required by HUD for the MDHA Madison Towers LLC replacement reserve.
MDHA funds of $245,383 are held for Tax Increment Financing note for the debt service covenant.
Amounts due to resident councils of $631,715 are tenant participation funds from HUD which are held for use by
the duly elected resident councils.
Housing Assistance Payment ("HAP") restricted equity totaling $496,168 are excess Section 8 housing assistance
funds under the Housing Choice Voucher program.
Deposits of $690,642 are held for participants in the HUD Family Self-Sufficiency program.
Escrow deposits of $1,286,048 required by HUD to cover non-critical repairs identified in Capital Needs
Assessment for the RAD converted project based rental assistance properties.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-25-
NOTE 3 - CASH, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)
Replacement reserves of $57,507,331 required by HUD for the RAD converted project based rental assistance
properties.
Property management company accounts, tenant deposits and replacement reserves of $1,120,260 for market rate
units managed by a separate management company.
Discretely Presented Component Unit Deposits
The carrying amount of cash and cash equivalents was $3,525,494. The bank balances held with financial
institutions are entirely insured and are classified as cash and cash equivalents on the statement of net position.
Restricted Deposits - HUD regulations require that security deposits be segregated from cash. Accordingly, the
discretely presented component units hold all security deposits in a separate account. At December 31, 2022,
amounts held for tenant security deposits totaled $329,564. Pursuant to various agreements, the discretely presented
component units must hold amounts in reserves and escrow in separate cash accounts. The following is a summary
of the restricted cash of the Discretely Presented Component Units:
Replacement reserves 2,565,234$
Operating reserves 1,953,833
Construction escrow reserves 226,811
Tenant security deposits 329,564
FSS escrow accounts 82,487
5,157,929$
Deposit and Investment Policy
MDHA's deposit and investment policy is governed by the laws of the State of Tennessee and HUD guidelines.
Permissible investments include direct obligations of the U.S. Government and Agency securities, certificates of
deposit, savings accounts, repurchase agreements and the State of Tennessee Local Government Investment Pool.
Deposits in financial institutions are required by State statute to be secured and collateralized by the institutions.
The collateral must meet certain requirements and must have a total minimum market value of 105% of the value
of the deposits placed in the institutions, less the amount protected by federal depository insurance. Obligations that
may be pledged as collateral are obligations of the United States and its agencies and obligations of the State and
its subdivisions. Collateral requirements are not applicable for financial institutions that participate in the State of
Tennessee's bank collateral pool.
The amount of collateral required to secure these public deposits must be at least 105% of the average daily balance
of public deposits held. Collateral securities required to be pledged by the participating banks to protect public fund
accounts are pledged to the State Treasurer on behalf of the bank collateral pool. The securities pledged to protect
these accounts are pledged in the aggregate rather than against each individual account. The members of the pool
may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment
agreement, public fund accounts covered by the pool are considered to be insured for purposes of credit risk
disclosure in accordance with GAAP.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-26-
NOTE 3 - CASH, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED)
Investments
Certificates of deposit were covered by the Certificate of Deposit Account Registry Service ("CDARS") to stay
below the Federal Deposit Insurance ("FDIC") limits at any given bank.
The Agency has not established a limit on the amount it may invest in any one issuer. Citizens Bank has 100% of
the Agency's investments through the CDARS program as of September 30, 2023 consisting solely of certificates
of deposit.
At September 30, 2023, the future maturities of MDHA's investments are as follows:
Carrying Maturity Maturity
Type of investment amount fiscal 2024 fiscal 2025
Certificates of deposit 4,590,491$ 3,564,829$ 1,025,662$
Total 4,590,491$ 3,564,829$ 1,025,662$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-27-
NOTE 4 - CAPITAL ASSETS
September 30, 2022 Additions Retirements Transfers & Adjustments September 30, 2023
Capital assets, not being depreciated:
Land 103,052,006$ 260,890$
-$
385,105$ 103,698,001$
Construction in progress 13,693,929 17,754,587 - (1,256,460) 30,192,056
Total capital assets, not being depreciated 116,745,935 18,015,477 - (871,355) 133,890,057
Capital assets, being depreciated:
Buildings 442,119,726 794,496 (4,634,248) 871,355 439,151,329
Infrastructure 26,768,925 - - - 26,768,925
Furniture, equipment, & machinery - dwellings 6,767,333 18,642 (299,908) - 6,486,067
Furniture, equipment, & machinery - administrative 918,170 - (52,094) - 866,076
Total capital assets, being depreciated 476,574,154 813,138 (4,986,250) 871,355 473,272,397
Less accumulated depreciation for:
Buildings (228,868,253) (12,112,375) 4,624,255 - (236,356,373)
Infrastructure (20,858,604) (719,943) - - (21,578,547)
Furniture, equipment, & machinery - dwellings (5,900,140) (356,181) 299,908 - (5,956,413)
Furniture, equipment, & machinery - administrative (901,684) (27,471) 52,094 - (877,061)
Total accumulated depreciation (256,528,681) (13,215,970) 4,976,257 - (264,768,394)
Total capital assets, being depreciated, net 220,045,473 (12,402,832) (9,993) 871,355 208,504,003
Total capital assets, net 336,791,408$ 5,612,645$ (9,993)$ -$ 342,394,060$
Total depreciation expense for the year ended September 30, 2023 was $13,215,970.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-28-
NOTE 4 - CAPITAL ASSETS (CONTINUED)
Discretely Presented Component Units
Prior Year Balance Additions Retirements Transfers & Adjustments Current Year Balance
Capital assets, not being depreciated:
Land 19,328,403$ -$ -$ 1,902,383$ 21,230,786$
Construction in progress 27,254,755 15,488,557 - (27,254,755) 15,488,557
Total capital assets, not being depreciated 46,583,158 15,488,557 - (25,352,372) 36,719,343
Capital assets, being depreciated:
Buildings 101,457,017 249,587 (524,827) 24,856,633 126,038,410
Infrastructure - - - - -
Furniture, equipment, & machinery 4,122,800 24,625 - 488,081 4,635,506
Total capital assets, being depreciated 105,579,817 274,212 (524,827) 25,344,714 130,673,916
Less accumulated depreciation for:
Buildings (5,743,196) (2,928,722) 12,026 - (8,659,892)
Infrastructure (2,159,010) (996,773) - - (3,155,783)
Furniture, equipment, & machinery (3,099,654) (445,873) - - (3,545,527)
Total accumulated depreciation (11,001,860) (4,371,368) 12,026 - (15,361,202)
Total capital assets, being depreciated, net 94,577,957 (4,097,156) (512,801) 25,344,714 115,312,714
Total capital assets, net 141,161,115$ 11,391,401$ -$ (7,658)$ 152,032,057$
Total depreciation expense for the discretely presented component units was $4,371,368.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-29-
NOTE 5 - NOTES RECEIVABLE
Notes receivable, including related accrued interest, consisted of the following as of September 30, 2023:
Notes receivable from discretely presented component units
Boscobel I LP 13,872,136$
Levy Place LP 6,388,768
Victory Hall LP 1,104,166
CP II LP 8,792,439
Boscobel III LP 11,026,549
Boscobel IV LP
5,679,370
Randee Rogers LP 16,928,088
Total notes receivable from discretely presented component units 63,791,516$
Notes receivable from third parties
Boscobel Heights Development Co 19,725,800$
Martha O'Bryan Explore School 1,635,037
Rehabilitation loans 10,106,712
Business district loans 53,704
Façade loans 116,704
Neighborhood Stabilization promissory notes 14,457,647
Allowance for doubtful accounts (19,326,497)
Total notes receivable from third parties 26,769,107
Total notes receivable 90,560,623
Less current portion (341,835)
Net notes receivable and accrued interest receivable, less current portion 90,218,788$
Boscobel Heights Development Co Loans were made to MOB Nashville Investment Fund, LLC for the construction
of the K-8 charter school facility. Financing was provided by Community Development Entities ("CDE"). The loans
are secured by the CDE interest and security interest in the charter school. Interest accrues at an annual rate of
4.604% commencing September 24, 2018. Interest only shall be due and payable quarterly on Leverage Loan A for
$14,880,000 with outstanding principal due on the maturity date of September 24, 2025. Interest only shall be due
and payable quarterly on Leverage Loan B for $4,845,800 through September 2025, with quarterly principal and
interest payable through maturity date of October 10, 2048.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-30-
NOTE 5 - NOTES RECEIVABLE (CONTINUED)
Rehabilitation Loans are made from the Community Development Block Grant and Home Investment Trust
programs to aid homeowners in rehabilitating substandard housing or historic homes. The loans are secured by the
property deeds of trust. Loan repayments on rental properties are made monthly, for a maximum of 10 years,
together with interest at 3% per annum, with a maximum loan amount set at $35,000 for projects rehabbing one to
two units, $50,000 for three to four units, and $75,000 for five or more units. Effective March 2003, the Board of
Commissioners approved 3% loans for new construction of rental properties; forgivable loans for rehabilitation of
rental projects with five or more units; and forgivable loans for rehabilitation of rental projects with one-half or
more of the total number of units containing four or more bedrooms. The four-bedroom units must be rented for a
low rental rate over the 10-year loan period. The loans are forgiven at the rate of 10% on each anniversary date.
Management has provided an allowance for doubtful accounts totaling $4,698,441 related to these loans.
Business District Loans are made from the Community Development Block Grant program to promote small
business and provide incentive for reinvestment in areas of general commercial deterioration. The loans are for a
maximum of $20,000 at the prime interest rate for a term of five to ten years. Management has provided an
allowance for doubtful accounts totaling $23,704 related to these loans.
Façade Loans are made from the Community Development Block Grant program to aid businesses in repairing and
renovating the exterior of buildings in the commercial neighborhood strategy areas. The non-interest bearing loans
are for a maximum of $35,000 per building with a five-year repayment term. Management has provided an
allowance for doubtful accounts totaling $146,705 related to these loans.
Neighborhood Stabilization Promissory Notes were executed between MDHA and non-profit entities that received
NSP funds for the acquisition, rehabilitation and redevelopment of foreclosed or vacant properties. The properties
have an affordability period per the grant agreements of 25 years. If the borrower complies with all of the terms and
requirements of the restrictions, the entire balance of the Note will be forgiven at the end of the affordability period.
No interest shall be due or payable on this Note. The provision for uncollectible notes includes 100% of the NSP
notes which totaled $14,457,647 as of September 30, 2023.
Explore School Loans were made to the Martha O'Bryan Center, Inc., September 24, 2018, for the construction and
operations of the K-8 charter school facility. The Martha O'Bryan Center, Inc. entered into an Accrued Rent Note
with MDHA, not to exceed $3.5 million with interest accruing at an annual rate of 3%. Sublease payments calculated
using the number of pupils at the beginning of the school year by Martha O'Bryan, Rental Gross Revenues, are paid
monthly to MDHA to be applied to the Base Rent payments owed by MDHA. MDHA monthly note proceeds are
equal to the excess of the Base Rent over the Rental Gross Revenues. The outstanding principal and accrued interest
shall be due and payable on the maturity date of March 22, 2026. The balance with accrued interest as of
September 30, 2023, was $1,635,037.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-31-
NOTE 5 - NOTES RECEIVABLE (CONTINUED)
The Agency has made various loans to the discretely presented component units, Levy Place, L.P.; Boscobel I, L.P.;
CP II, L.P.; Boscobel III, L.P.; Victory Hall, L.P.; Randee Rogers, L.P.; and Boscobel IV, L.P. See Note 7 for the
detailed information regarding the terms and conditions of each loan made by the Agency to the discretely presented
component units.
NOTE 6 - OTHER ASSETS
The following is a summary of other assets of the Primary Government for the year ended September 30, 2023:
Tax increment revenues due for The Sports Authority Debt repayment
(See Note 7) 26,825,537$
Downtown Parking Garage prepaid consulting and capitalized interest 5,208,000
Nance Place Apartments unamortized costs 33,314
32,066,851$
NOTE 7 - LONG-TERM DEBT
A summary of changes in MDHA's long-term debt for the year ended September 30, 2023 is presented below:
Balance 9/30/2022 Additions Retirements
Balance
9/30/2023
Due within
one yea
r
Notes Payable 154,776,013$ 8,574,619$ (6,484,599)$ 156,866,033$ 15,811,383$
Primary Governmen
t
$7,872,100 HUD 221(d)4 Refinance note with First American Capital Group Corporation,
dated November 1, 2021, for the 54-unit apartment building. Beginning December 1, 2021,
monthly principal and interest payments totaling $26,397 are due. The loan bears an interest
rate of 2.6%. The loan is collateralized by the 10th & Jefferson apartment complex and
assignment of rents and will mature December 1, 2061. 7,562,444$
$28,000,000 promissory loan with The Sports Authority of the Metropolitan Government of
Nashville and Davidson County for TIF eligible expenses related to the property acquisition
and construction of the new ballpark facility on the "Sulphur Dell" site. The loan bears an
interest rate of 4.55% per annum and interest payments will begin on July 1, 2014 and
principal payments on July 1, 2017 or after previously accrued interest has been fully paid.
The loan is securitized by revenues from tax increment revenue generated by certain
properties in the P hillips Jackson Redevelopment District. The loan will mature on July 1,
2043. As of September 30, 2023 interest accrued on the loan totaled $659,228. (Included in
other noncurrent assets is a corresponding amount totaling $26,825,537 - see Note 6). 26,825,537
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-32-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
$2,300,000 promissory note with the Bank of Tennessee, for the construction of a 109-unit
apartment building. This loan was previously a construction loan that converted to permanent
financing on December 1, 2011. Monthly principal payments total $6,390 and interest accrues
at a variable rate of the Prime Rate each month minus 4%; however, the interest rate shall not
fall below 0% (Prime Rate at September 30, 2023 was 8.5%). The note is collateralized by the
Nance Place apartment complex and assignment of rents and will mature in December of 2026.
1,392,628
$9,076,327 loan commitment with the Tennessee Housing & Development Agency ("THDA")
through the TCR Program, pursuant to Section 1602 of the American Recovery and
Reinvestment Act of 2009, for the construction of a 109-unit apartment building. The note is
noninterest bearing and forgivable over the term of the loan provided all covenants and
agreements set forth in the loan agreement are met. The note is collateralized by the Nance
Place apartment complex and assignment of rents and will mature in November of 2024.
3,251,661
$3,508,629 Flexible Subsidy Operating Assistance loan with the Secretary of Housing and
Urban Development assumed by MDHA at the purchase of CWA apartments December 19,
2014. The note has an interest rate of 1% with monthly principal and interest payments
totaling $19,029 for a twenty-year term maturing September 30, 2034. The loan is
collateralized by CWA I Apartments, a 178-unit apartment complex and assignment of rents.
2,451,580
$1,659,585 Flexible Subsidy Operating Assistance loan with the Secretary of Housing and
Urban Development assumed by MDHA at the purchase of CWA apartments December 19,
2014. The note has an interest rate of 1% with monthly principal and interest payments
totaling $9,059 for a twenty-year term, maturing September 30, 2034. The loan is
collateralized by CWA II Apartments, a 76-unit apartment complex and assignment of rents.
1,168,901
$42,900,000 Lease Financing Contract with Gates/Parking Real Estate II dated November 14,
2014, for the purchase of 505 Church Street and construction of a parking garage. Monthly
payments are required beginning December 2016 through November 2044 and interest accrues
at a rate equal to 4.839%. The financing contract is collateralized by the 5th Avenue of the
Arts Garage and assignment of revenues.
37,806,717
$20,478,300 HUD with Walker & Dunlop, LLC, to establish a Board controlled Strategic
Reserve to be utilized for MDHA Recapitalization. Monthly principal and interest payments
totaling $83,571 are due. The loan bears an interest rate of 3.41%. The loan is collateralized
by the MDHA J Henry Hale apartment complex and assignment of rents and will mature in
August of 2052.
18,141,757
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-33-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
$2,945,072 promissory note with the Bank of Tennessee dated April 19, 2014, for the
construction of a 72 unit apartment building. This loan was previously an interest only loan
that converted to permanent financing on April 19, 2014. Monthly principal and interest
payments total $24,202 and interest accrues at a rate equal to 5.51%. The note is
collateralized by the Uptown Flats apartment complex and assignment of rents and will
mature in January of 2024. 987,179
$13,776,500 HUD 221(d)4 Construction Note with Walker & Dunlop, LLC, for the
construction of a 94 unit apartment building. Interest only payments shall be due monthly
beginning December 1, 2017 up to June 1, 2019, thereafter monthly principal and interest
payments total $56,723 are due. The loan bears an interest rate of 3.90%. The loan is
collateralized by the Kirkpatrick P ark apartment complex and assignment of rents and will
mature in June of 2059. 12,851,026
$5,400,000 loan with United Community Bank dated May 30, 2018, advances under this
loan shall be used for the construction of 40 townhomes in Bordeaux. Monthly interest
payments were due until May 30, 2020, thereafter monthly principal and interest payments
total $25,327 and interest accrues at a fixed rate equal to the US Treasury note rate, plus
2.5%, not to exceed 3.75%. The loan is collateralized by the Harper Cove Flats complex and
assignment of rents and will mature May 2030. 4,932,538
$4,960,000 note with the Low Income Investment Fund dated September 24, 2018.
Quarterly interest payments are accrued at a 6% fixed rate through August 30, 2021,
thereafter quarterly principal and interest payments total $106,880. The note is collateralized
b
y a K-8 charter school facility and assignment of rents and will mature September 24, 2025.
4,686,104
$4,960,000 note with the Nonprofit Finance Fund dated September 24, 2018. Quarterly
interest payments are accrued at a 6% fixed rate through August 30, 2021, thereafter
quarterly principal and interest payments total $106,880. The note is collateralized by a K-8
charter school facility and assignment of rents and will mature September 24, 2025.
4,601,948
$4,960,000 note with the Reinvestment Fund, Inc. dated September 24, 2018. Quarterly
interest payments are accrued at a 6% fixed rate through August 30, 2021, thereafter
quarterly principal and interest payments total $106,880. The note is collateralized by a K-8
charter school facility and assignment of rents and will mature September 24, 2025.
4,690,206
$6,986,400 HUD with Walker & Dunlop, LLC, to establish a Board controlled Strategic
Reserve to be utilized for MDHA Recapitalization. Monthly principal and interest payments
totaling $28,632 are due. The loan bears an interest rate of 3.44%. The loan is collateralized
by the MDHA Madison Towers apartment complex and assignment of rents and will mature
in September of 2054. 6,366,799
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-34-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
$7,000,000 note with Pinnacle Bank dated August 15, 2018. Monthly interest payments are
p
ayable at a variable rate of the Prime Rate minus 4%; however, the interest rate shall not fall
below 0% (Prime Rate at September 30, 2023 was 8.5%). Beginning, February 15, 2021,
monthly principal payments will be due with the monthly interest payments. T he note is
collateralized by Boscobel I, a 96-unit mixed income property and assignment of rents and
will mature Au
g
ust 15, 2033. 6,420,750
$6,000,000 construction note with First Bank dated July 31, 2020 which converted to
permanent financing October 31, 2022. Beginning October 31, 2022, monthly principal
payments of $16,667 plus accrued interest payments are payable. Interest accrues at a
variable rate equal to the Prime Rate less 4% (September 30, 2023 was 8.5%). Unpaid
principal and accrued interest is due and payable in full at maturity, October 31, 2040. The
note is collateralized by Red Oak Townhomes, a 44-unit mixed income property and
assignment of rents. 5,217,598
$500,000 note with Tennessee Housing Development dated August 2, 2019. The note bears
a 0% interest rate and shall be forgiven annually over five years beginning in November 2021.
The note is collaterized by Victory Hall and assignment of rents. 300,000
$10,000,000 construction note with Bank of Tennessee dated May 23, 2022. During the
construction term, monthly interest payments are payable at a rate equal to Prime Rate
(September 30, 2023 was 8.5%) on outstanding principal shall be due and payable monthly.
The note is collateralized by Cherry Oak Apartments market rate condo, 45.45% of a 96-unit
mixed income property and assignment of rents. Unpaid principal and accrued interest is due
and payable in full at maturity, May 23, 2024. The amount drawn as of September 30, 2023
was $7,210,660. 7,210,660
156,866,033$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-35-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
A schedule of principal maturities of the Agency's long-term debt at September 30, 2023 is as follows:
Principal Interest Total
2024 15,811,383$ 6,456,738$ 22,268,121$
2025 18,118,217 5,794,581 23,912,798
2026 4,704,127 4,841,162 9,545,289
2027 5,829,677 4,692,322 10,521,999
2028 4,000,005 4,537,627 8,537,632
2029 - 2033 28,419,681 19,763,829 48,183,510
2034 - 2038 23,327,073 14,071,740 37,398,813
2039 - 2043 30,143,121 8,424,392 38,567,513
2044 - 2048 11,482,780 3,749,780 15,232,560
2049 - 2053 8,860,691 1,610,628 10,471,319
2054 - 2058 4,680,811 745,740 5,426,551
2059 - 2062 1,488,467 492,609 1,981,076
Total
156,866,033$ 75,181,148$ 232,047,181$
Year ending September 30
A summary of changes in long-term debt, after loan cost adjustment of ($1,176,174) of the Discretely Presented
Component Units for the year ended December 31, 2022 is presented below:
Prior year balance Additions Retirements
Current year
balance
Due within
one year
Notes Payable 101,429,712$ 19,301,508$ (17,086,631)$ 103,644,589$ 21,716,841$
Ryman Lofts at Rolling Mill Hill, L.P.
700,986$
2,899
Construction and permanent financing is being provided by Metropolitan Development
Housing Agency ("MDHA") under a loan commitment of $400,000. The nonrecourse loan is
secured by a second leasehold deed of trust and bears interest at a rate of 5% of the
outstanding principal balance per annum. No principal payments are due until the maturity
date in September 2041. As of December 31, 2022, interest of $138, remained payable.
During 2022, interest expense of $138 was incurred.
Construction and permanent financing is being provided by Bank of Tennessee under loan
commitments of $3,900,000 (the construction loan) and $1,000,000 (the permanent loan),
respectively. The loans bear interest at a variable interest rate of the prime rate minus 2% and
may not fall below 0%. The prime rate at December 31, 2022 was 7.27%. The loans are
secured by a leasehold deed of trust and an assignment of rents and leases. Interest only
p
ayments are due monthly through March 1, 2014, the maturity date of the construction loan.
Beginning August 1, 2014, monthly principal and interest payments of $3,332 began on the
permanent loan, and increased to $5,561 in September 2014. In February 2015, monthly
p
a
y
ments of $4,304 be
g
an on the permanent loan and are due until maturit
y
in June 2029.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-36-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
Lev
y
Place, L.P.
Construction and permanent financing is being provided by Pinnacle Bank under a loan
commitment of $5,850,000. The nonrecourse loan is secured by a leasehold deed of trust
and an assignment of rents and leases. Interest shall accrue at an annual rate of the Wall
Street Journal prime rate (7.5% as of December 31, 2022) minus 4% with a floor of 0% and
a cap of 5%. Commencing on August 28, 2016, monthly payments of interest only shall be
due and payable until, and including, June 8, 2017, the Conversion Date. After conversion,
monthly payments of principal and interest shall be due and payable. There was no accrued
interest at December 31, 2022. The entire principal balance, as well as all accrued and unpaid
interest, is due and
p
a
y
able on Jul
y
28, 2035. 4,987,304$
Permanent financing is being provided by MDHA under a loan commitment of $7,898,296.
The nonrecourse loan is secured by an agency leasehold deed of trust and an assignment of
rents and leases. Interest shall accrue at an annual rate of 2.24% commencing July 28, 2016.
Principal and accrued interest shall be due and payable within 90 days after the end of each
calendar year to the extent of Available Cash Flow, as defined in the Amended and Restated
Partnership Agreement. During 2022, interest expense of $147,786 was incurred and remains
payable as of December 31, 2022. The entire principal balance, as well as accrued and
unpaid interest, is due and pa
y
able in Jul
y
2056. 6,745,393
Boscobel I, L.P.
Permanent
fi
nanc
i
ng
i
s
b
e
i
ng prov
id
e
d
b
y MDH
A
un
d
er a
l
oan comm
i
tment o
f
$
6,581,900.
The nonrecourse loan is secured by an agency leasehold deed of trust and an assignment of
rents and leases. Interest shall accrue at an annual rate of 3.05% commencing August 15,
2018. Principal and accrued interest shall be due and payable within 90 days after the end of
each calendar year to the extent of Available Cash Flow, as defined in the Partnership
Agreement. During 2022, interest expense of $200,748 was incurred and $715,925 remains
payable as of December 31, 2022. The entire principal balance, as well as accrued and
unpaid interest, is due and pa
y
able in Au
g
ust 2048. 7,300,825
$7,000,000 note with MDHA dated August 15, 2018. Monthly interest payments are payable
at a variable rate of the P rime Rate minus 4%, however the interest rate shall not fall below
0% (Prime Rate at December 31, 2022 was 7.27%). Beginning, February 15, 2021, monthly
principal payments will be due with the monthly interest payments. The note is collateralized
by Boscobel I, a 96-unit mixed income property and assignment of rents and will mature
Au
g
ust 15, 2033. 6,583,776
CP II, L.P.
$7,400,000 note with Pinnacle Bank dated December 12, 2018. Monthly interest payments
are payable at a variable rate of the Prime Rate minus 4%; however, the interest rate shall not
fall below 0% (Prime Rate at December 31, 2022 was 7.50%). Beginning, June 15, 2021,
monthly principal payments will be due with the monthly interest payments. The note is
collateralized by CP II, a 102-unit mixed income property and assignment of rents and will
mature November 15, 2033. 7,068,979
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-37-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
CP II, L.P
(
Continued
)
$9,000,000 note with MDHA dated December 11, 2018. Note shall bear interest at a fixed
rate equal to 1%. Principal and interest shall be based upon a 40-year amortization and paid
annually from the Cash Flow as described in the Partnership Agreement. During 2022,
interest expense of $89,506 was incurred and $82,520 remains payable as of December 31,
2022. The note is collateralized by CP II, a 102-unit mixed income property and assignment
of rents and will mature December 11, 2048. 8,238,452
$500,000 note with MDHA dated December 11, 2018. Proceeds from the note shall be used
in accordance with the rules and regulations of the HOME Investment Partnership Programs.
No interest is payable, provided the principal is paid by the due date set forth in the note,
twenty years from the Project Completion date. T he note is collateralized by CP II, a 101-
unit mixed income property and assignment of rents. The entire principal balance is due and
p
a
y
able at maturit
y
in December 2040. 500,000
Boscobel III, L.P.
$15,594,609 note with MDHA dated August 9, 2019. Note shall bear interest at a fixed rate
equal to 0.75%. Principal and interest shall be based upon a 30-year amortization and paid
annually from the Cash Flow as described in the Partnership Agreement. During 2022,
interest expense of $97,577 was incurred and $39,097 remains payable as of December 31,
2022. The note is collateralized by Boscobel III, a 102-unit mixed income property and
assi
g
nment of rents and will mature Au
g
ust 9, 2048. 10,465,089
$7,400,000 note with Pinnacle Bank dated August 9, 2019. Monthly interest payments are
payable at a variable rate of the Prime Rate minus 4%, however the interest rate shall not fall
below 0% (Prime Rate at December 31, 2022 was 7.50%). Beginning, March 15, 2022,
monthly principal payments will be due with the monthly interest payments. During 2022,
interest expense of $77,974 was incurred with $11,216 payable as of December 31,2023.
The note is collateralized by Boscobel III, a 102-unit mixed income property and assignment
of rents and will mature August 8, 2034.
7,221,216
$500,000 note with MDHA dated August 9, 2019. Proceeds from the note shall be used in
accordance with the rules and regulations of the HOME Investment Partnership Programs.
No interest is payable, provided the principal is paid by the due date set forth in the note,
twenty years from the Project Completion date. During 2022, interest expense of $12,750
was incurred and remains payable as of December 31, 2022. The note is collateralized by
Boscobel III, a 102-unit mixed income propert
y
and assi
g
nment of rents. 512,750
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-38-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
Victor
y
Hall L.P.
$500,000 note with MDHA dated August 2, 2019 funded by a private donation. Note shall
bear interest at a fixed rate equal to 2.5%. No payment of principal or interest shall be due
during the construction period, following the construction period, principal and interest shall
be based upon a 30-year amortization and paid annually from the Cash Flow as described in
the Partnership Agreement. During 2022, interest expense of $12,500 was incurred and
$42,708 remains payable as of December 31, 2022. The note is collateralized by Curb
Victory Hall, 39 units set aside for homeless veterans and assignment of rents and will mature
Au
g
ust 2, 2049. 542,708
Victor
y
Hall L.P.
(
Continued
)
$500,000 note with MDHA dated August 2, 2019 funded by the Tennessee Housing Trust
Fund grant program. Note shall bear interest at a fixed rate equal to 2.5%. No payment of
principal or interest shall be due during the construction period, following the construction
period, principal and interest shall be based upon a 30-year amortization and paid annually
from the Cash Flow as described in the Partnership Agreement. During 2022, interest
expense of $12,500 was incurred and $42,708 remains payable as of December 31, 2022.
The note is collateralized by Curb Victory Hall , 39 units set aside for homeless veterans and
assi
g
nment of rents and will mature Au
g
ust 2, 2049. 542,708
$1,231,400 note with Pinnacle Bank dated August 2, 2019. Monthly interest payments are
payable at a Prime Rate minus 4%; however, the interest rate shall not fall below 0% (Prime
Rate at December 31, 2022 was 7.50%). Beginning, August 15, 2021, monthly principal
payments will be due with the monthly interest payments. The note is collateralized by Curb
Victory Hall , a 39 units set aside for homeless veterans and assignment of rents and will
mature Au
g
ust 1, 2034. 509,699
Randee Rogers L.P.
$16,000,000 bond with JP Morgan Chase Bank dated December 1, 2019. The loan bears
interest at a floating rate equal to the Daily LIBOR Rate, plus 1.65% (5.62% at December
31, 2022). Monthly interest-only payments are due until conversion. As of December 31,
2022, the principal balance of the construction loan totaled $12,283,288. The bond note is
collaterized b
y
Randee Ro
g
ers, a 100-unit mixed income propert
y
and assi
g
nments of rents. 12,283,288
$840,275 note with MDHA dated December 19, 2019. The nonrecourse loan is secured by
an agency leasehold deed of trust and an assignment of rents and leases. The interest rate is
0% with annual principal due and payable to the extent of Available Cash Flow, as defined in
the Limited Partnership Agreement. The entire principal balance is due and payable
December 2049. The amount drawn as of December 31, 2022 was $840,275. 840,275
$16,087,813 note with MDHA dated March 19, 2020. The nonrecourse loan is secured by
an agency leasehold deed of trust and an assignment of rents and leases. The interest rate is
0% with annual principal due and payable to the extent of Available Cash Flow, as defined in
the Limited Partnership Agreement. The entire principal balance is due and payable
December 2049 or when declared due and payable. The amount drawn as of December 31,
2022 was $14,190,111 with accrued interest of $74,381. 14,264,492
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-39-
NOTE 7 - LONG-TERM DEBT (CONTINUED)
Boscobel IV L.P.
$7,250,036 note with MDHA dated May 23, 2022, then amended to $8,398,668 on
December 12, 2022 . The nonrecourse loan is secured by an agency leasehold deed of trust
and an assignment of rents and leases. The interest rate is 0% with annual principal due and
payable to the extent of Available Cash Flow, as defined in the Limited Partnership
Agreement. The entire principal balance is due and payable December 2049 or when
declared due and payable. The amount drawn as of September 30, 2023 was $5,392,370
with accrued interest of $49,501. 5,441,871
Boscobel IV L.P. (Continued)
$500,000 note with MDHA dated December 1, 2022. Proceeds from the note shall be used
in accordance with the rules and regulations of the HOME Investment Partnership Programs.
The effective rate of interest is fixed at .75%. The outstanding principal plus any accrued
and unpaid interest is due thirty years from the Project Completion date. The note is
collateralized by Boscobel IV L.P. Cherry Oak Appartments affordable condo, 54.55% of a
96-unit mixed income property and assignment of rents. The amount drawn as of September
30, 2023 was $237,500. 237,500
$12,000,000 construction note with Bank of Tennessee dated May 23, 2022. During the
construction term, monthly interest payments are payable at a rate equal to Prime Rate minus
4%; however, the interest rate will not fall below 0% (September 30, 2023 was 8.5%) on
outstanding principal shall be due and payable monthly. The note is collateralized by
Boscobel IV L.P. Cherry Oak Apartments affordable condo, 54.55% of a 96-unit mixed
income property and assignment of rents. Unpaid principal and accrued interest is due and
payable in full at maturity, May 23, 2024. The amount drawn as of September 30, 2023 was
$8,654,379. 8,654,379
103,644,589$
A schedule of principal maturities of the Discretely Presented Component Unit's long-term debt after the loan cost
adjustment of ($1,176,174) is as follows:
Year ending December 31, Principal
2022 21,716,841$
2023 950,770
2024 963,814
2025 976,165
2026 992,253
Thereafter 76,868,572
Total
102,468,415$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-40-
NOTE 8 - CONDUIT DEBT OBLIGATIONS
Tax increment financing ("TIF") is a method of funding certain public investments for redevelopment by
recapturing, for a time, all or a portion of the increased tax revenue that may result if private investment can be
stimulated to occur. Tax increment can only be generated by the increased taxes resulting from private development
on land in a redevelopment district that have been acquired and re-sold or leased by MDHA. The tax increment due
to the difference in the tax basis is then diverted to the redevelopment agency which may use those funds to finance
public purpose expenditures or to repay bonds or notes that were issued to finance those expenditures. These loans
are special limited obligations of MDHA, payable solely from and secured by a pledge of the tax increment revenues
designated for the payment of the loan. The loans do not constitute debt or a pledge of credit of MDHA or the
Metropolitan Government and, accordingly, are not reported in the accompanying financial statements.
The Tax Increment Financing Loans, including related accrued interest payable, aggregated approximately
$115.1 million at September 30, 2023.
A summary of changes in MDHA's conduit debt for the year ended September 30, 2023 is presented below:
Balance Balance Accrued
Project Description 9/30/2022 Additions Retirements 9/30/2023 Interest
Castner Knott 1,850,000$ -$ -$ 1,850,000$ 840,691$
Cohen Bldg 300,000 - - 300,000 288,134
ACME Feed Building - - - - -
Regions Capital Mall Refinance 38,343,442 - (4,476,146) 33,867,296 270,790
21C Hotel Project 4,416,485 - (282,506) 4,133,979 348,909
4Pant Dream Hotel 5,468,553 - (246,613) 5,221,940 97,414
5th & Broad 7,662,694 - - 7,662,694 139,818
5th & Broad 13,421,251 - (3,139,839) 10,281,412 213,656
Regions Rutledge Hill Refinance 1,259,599 - (147,043) 1,112,556 8,895
Eakin The Peabody Plaza 7,146,652 - (491,857) 6,654,795 141,665
PRII/Peabody Union 13,802,466 3,697,534 - 17,500,000 719,181
Regions Phillips Jackson Refinance 4,147,683 - (484,193) 3,663,490 29,292
1821 Jeffers on Street 542,800 - (18,590) 524,210 10,628
1101 Dickerson Pike 73,159 - (22,525) 50,634 1,129
5th & MAIN 5,807,570 - - 5,807,570 452,091
Regions Arts District Refinance 18,606,288 - (2,172,066) 16,434,222 131,402
Total 122,848,642$ 3,697,534$ (11,481,378)$
115,
064,798$ 3,693,695$
NOTE 9 - OTHER LONG-TERM LIABILITIES OTHER THAN DEBT
The activities of compensated absences and other noncurrent liabilities for MDHA consisted of the following at
September 30, 2023:
Balance at Adjustment/ Balance at Current
October 1, 2022 Additions Payments September 30, 2023 portion
Compensated absences 2,539,055$ 2,170,325$ (1,774,939)$ 2,934,441$ 961,325$
FSS escrow deposit 1,028,352$ 417,637$ (755,347)$ 690,642$ -$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-41-
NOTE 10 - RISK MANAGEMENT
MDHA is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. MDHA maintains commercial insurance covering each of
those risks of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses to
MDHA. During the year ended September 30, 2023, settled claims have not exceeded this commercial insurance
coverage.
NOTE 11 - EMPLOYEE BENEFIT PLANS
The MDHA retirement plan is a 401A Plan administered by the Vanguard Group. The Plan, is a defined contribution
plan for employees who were participants in the MDHA Retirement Plan as of September 30, 2000. Employees are
eligible to participate beginning the first day of the month following the date of hire. There are no required
contributions by the participants; however, participants may make voluntary contributions from 0.5% to 10% of
basic compensation and MDHA contributes 13% of participants' basic compensation. Contributions are invested in
any of twenty-two funds as elected by the participant. Investment options and voluntary contributions may be
changed daily.
Participants' voluntary contributions plus actual earnings are immediately vested. Participants are also immediately
vested in 5.5% of the 13% of MDHA's contributions. Each year of participation in the Plan, participants vest at the
rate of 20% of the remaining balance and become fully vested after 5 years.
Benefits are paid in the form of a cash distribution or various other annuity options at normal retirement date, age
65, death or disability. Participants may also elect to roll the vested portion of retirement savings into another
qualifying plan or an IRA or leave the amount in the Plan. Early retirement may be elected by employees at age 55
who have at least ten years of service.
MDHA contributions to the Plan for the year ended September 30, 2023, amounted to $3,025,930, which equaled
the amount of required employer contributions. Employee voluntary contributions were $316,681 in 2023. MDHA's
payroll for employees covered by the Plan for the fiscal year ended September 30, 2023, was $23,276,385. Total
payroll for MDHA during the fiscal year ended September 30, 2023, amounted to $24,040,261.
MDHA sponsors a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The
Plan permits all employees to defer a portion of salary until future years. Such amounts are not available to them
until termination, retirement, death or unforeseeable emergency. No contributions are made to this Plan by MDHA.
NOTE 12 - LEASES
MDHA is the lessor of dwelling units mainly to low-income residents. These leases are generally considered to be
short-term and do not derive from exchange or exchange-like transactions and are not within the scope of GASB
Statement No. 87: Leases. The rents under the leases are determined generally by the resident's income as adjusted
for eligible deductions regulated by HUD, although the resident may opt for a flat rent. Leases may be cancelled by
the lessee at any time. MDHA may cancel the lease only for cause.
Revenues associated with these leases are recorded in the financial statements and schedules as "Rental Revenue".
Rental Revenue per dwelling unit generally remains consistent from year to year but is affected by general economic
conditions which impact personal income and local job availability.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-42-
NOTE 12 - LEASES (CONTINUED)
In 2011, MDHA began leasing certain property to a third party, TB Partners, LLC. The initial lease term is for
forty-five (45) years with payments due monthly to MDHA is in the amount of $3,563; the assumed interest rate is
5%. TB Partners is entitled to extend the term of this lease for one (1) period of forty (40) years. This additional
period has been included in the measurement of the lease. During the year ended September 30, 2023, MDHA
recognized $11,442 in lease revenue and $42,093 in interest revenue related to this lease. As of September 30, 2023,
MDHA's lease receivable and related deferred inflow balance were $836,226 and $826,841, respectfully.
In 2012, MDHA began leasing certain property to a third party, Corporate Investors Partnership X, LLC. The initial
lease term is for twenty (20) years with payments due monthly to MDHA is in the amount of $7,216; the assumed
interest rate is 5%. Corporate Investors Partnership X, LLC is entitled to extend the term of this lease for four (4)
periods of five (5) years each. These additional periods have been included in the measurement of the lease. During
the year ended September 30, 2023, MDHA recognized $44,640 in lease revenue and $66,089 in interest revenue
related to this lease. As of September 30, 2023, MDHA's lease receivable and related deferred inflow balance were
$1,319,553 and $1,268,531, respectfully.
In 2013, MDHA began leasing certain property to a third party, SWHR Hermitage, LLC. The initial lease term is
for thirty (30) years with payments due monthly to MDHA is in the amount of $22,881; the assumed interest rate is
5%. There is no option to extend the lease. During the year ended September 30, 2023, MDHA recognized $167,026
in lease revenue and $175,631 in interest revenue related to this lease. As of September 30, 2023, MDHA's lease
receivable and related deferred inflow balance were $3,489,932 and $3,340,512, respectfully.
In 2013, MDHA began leasing certain property to a third party, SWHR Middleton, LLC. The initial lease term is
for thirty (30) years with payments due monthly to MDHA is in the amount of $24,857; the assumed interest rate is
5%. There is no option to extend the lease. During the year ended September 30, 2023, MDHA recognized $181,141
in lease revenue and $191,244 in interest revenue related to this lease. As of September 30, 2023, MDHA's lease
receivable and related deferred inflow balance were $3,800,447 and $3,637,910, respectfully.
In 2017, MDHA began leasing certain property to a third party, Rise Biscuit. The initial lease term is for ten (10)
years with payments due monthly to MDHA is in the amount of $6,835; the assumed interest rate is 5%. Rise Biscuit
is entitled to extend the term of this lease for two (2) periods of five (5) years each. These additional periods have
not been included in the measurement of the lease as management is not reasonably certain that the extensions will
be executed. During the year ended September 30, 2023, MDHA recognized $75,730 in lease revenue and $21,523
in interest revenue related to this lease. As of September 30, 2023, MDHA's lease receivable and related deferred
inflow balance were $402,942 and $372,342, respectfully.
In 2017, MDHA began leasing certain property to a third party, Corner Pub. The initial lease term is for ten (10)
years with payments due monthly to MDHA is in the amount of $21,780; the assumed interest rate is 5%. Corner
Pub is entitled to extend the term of this lease for two (2) periods of five (5) years each. These additional periods
have not been included in the measurement of the lease as management is not reasonably certain that the extensions
will be executed. During the year ended September 30, 2023, MDHA recognized $249,604 in lease revenue and
$59,933 in interest revenue related to this lease. As of September 30, 2023, MDHA's lease receivable and related
deferred inflow balance were $1,103,014 and $1,019,215, respectfully.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-43-
NOTE 12 - LEASES (CONTINUED)
In 2022, MDHA began leasing certain property to a third party, Dollar General. The initial lease term is for one (1)
year with payments due monthly to MDHA is in the amount of $9,333; the assumed interest rate is 5%. Dollar
General is entitled to extend the term of this lease for four (4) periods of one (1) year each. These additional periods
have been included in the measurement of the lease. During the year ended September 30, 2023, MDHA recognized
$99,325 in lease revenue and $19,295 in interest revenue related to this lease. As of September 30, 2023, MDHA's
lease receivable and related deferred inflow balance were $352,545 and $331,082, respectfully.
During the year ended September 30, 2023, MDHA recognized $828,908 of lease revenue and $575,808 of lease
interest revenue which are recorded in Other Revenue on the Statement of Revenues, Expenses, and Changes in Net
Position.
Future minimum lease payments are as follows:
Year Principal Interest Total
2024 669,454$ 544,363$ 1,213,817$
2025 686,579 511,198 1,197,777
2026 733,528 475,757 1,209,285
2027 707,157 439,316 1,146,473
2028 406,040 411,980 818,020
2029-2033 1,700,383 1,810,668 3,511,051
2034-2038 2,182,202 1,328,847 3,511,049
2039-2043 2,800,548 710,502 3,511,050
2044-2048 366,006 305,621 671,627
2049-2053 294,856 214,812 509,668
2054-2058 28,592 185,220 213,812
2059-2063 36,694 177,118 213,812
2064-2068 47,092 166,720 213,812
2069-2073 60,435 153,377 213,812
2074-2078 77,560 136,252 213,812
2079-2083 99,538 114,274 213,812
2084-2088 127,742 86,069 213,811
2089-2093 163,939 49,873 213,812
2094-2096 116,314 8,409 124,723
11,304,659$ 7,830,376$ 19,135,035$
NOTE 13 - COMMITMENTS AND CONTINGENCIES
MDHA receives significant financial assistance from numerous federal, state and local governmental agencies in
the form of grants and operating subsidies. The disbursement of funds received under these programs generally
requires compliance with terms and conditions specified in the agreements and are subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of MDHA. In the opinion of
management, any such disallowed claims would not have a material effect on the financial position of MDHA at
September 30, 2023.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-44-
NOTE 13 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
As of September 30, 2023, the Agency had outstanding construction commitments of approximately $36.4 million.
These outstanding commitments will be paid by equity generated by low-income housing tax credits, bank loans
and other Agency reserves.
MDHA is a defendant in various lawsuits arising in the ordinary course of operations. Although the outcome of
these lawsuits is not presently determinable, in the opinion of management and MDHA's attorney, the resolution of
these matters will not have a material, adverse effect on the financial condition of MDHA. Accordingly, no
provision for loss, if any, related to these matters has been made in the financial statements.
NOTE 14 - AFFILIATE AGREEMENTS
The Levy Place partnership has entered into a regulatory agreement with MDHA, which regulates, among other
things, the rents which may be charged for apartment units in the Project, prohibits the sale of the Project without
HUD and MDHA consent, and otherwise regulates the relationship between the Partnership, HUD and MDHA. The
Partnership has executed a ground lease agreement (the "Agreement") with MDHA. The lease is subject to various
use restrictions and operating requirements, as defined in the Agreement. The term of the Agreement is for 75 years.
Boscobel I, LP
has entered into a regulatory agreement with MDHA, which regulates, among other things, the rents
which may be charged for apartment units in the Project, prohibits the sale of the Project without HUD and MDHA
consent, and otherwise regulates the relationship between the Partnership, HUD and MDHA. The Partnership has
executed a ground lease agreement with MDHA. The lease is subject to various use restrictions and operating
requirements, as defined in the Agreement. The term of the Agreement is for 75 years.
CP II I, LP has entered into a regulatory agreement with MDHA, which regulates, among other things, the rents
which may be charged for apartment units in the Project, prohibits the sale of the Project without HUD and MDHA
consent, and otherwise regulates the relationship between the Partnership, HUD and MDHA. The Partnership has
executed a ground lease agreement with MDHA. The lease is subject to various use restrictions and operating
requirements, as defined in the Agreement. The term of the Agreement is for 75 years.
Boscobel III, LP has entered into a regulatory agreement with MDHA, which regulates, among other things, the
rents which may be charged for apartment units in the Project, prohibits the sale of the Project without HUD and
MDHA consent, and otherwise regulates the relationship between the Partnership, HUD and MDHA. The
Partnership has executed a ground lease agreement with MDHA. The lease is subject to various use restrictions and
operating requirements, as defined in the Agreement. The term of the Agreement is for 75 years.
Victory Hall, LP has entered into a regulatory agreement with MDHA, which regulates, among other things, the
rents which may be charged for apartment units in the Project, prohibits the sale of the Project without HUD and
MDHA consent, and otherwise regulates the relationship between the Partnership, HUD and MDHA. The
Partnership has executed a ground lease agreement with MDHA. The lease is subject to various use restrictions and
operating requirements, as defined in the Agreement. The term of the Agreement is for 75 years.
Randee Rogers, L.P. has entered into a Developer Agreement with MDHA to acquire, construct, and develop mixed
income affordable and market rate residential housing. This agreement entitled MDHA as the developer to a total
development fee of $1,100,000. As of December 31, 2022, $133,126 of the development fee has been earned and
paid. Randee Rogers, LP consists of new construction of 100 units of rental housing. Of the 100 units, 50 are units
eligible to receive the benefits of HUD Operating subsidies provided to the partnership by HUD. The remaining 50
units are workforce and market units.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-45-
NOTE 14 - AFFILIATE AGREEMENTS (CONTINUED)
Boscobel IV, LP has entered into a Developer Agreement with MDHA to acquire, construct, and develop mixed
income affordable and market rate residential housing. Boscobel IV, LP consists of new construction of 96 units of
rental housing. Of the 96 units, 62.3% are public housing units eligible to receive the benefits of PBRA HAP
subsidies provided to the partnership by HUD for the “Affordable Condo”. The remaining 37.7% units are
workforce and market units owned by MDHA.
MDHA guarantees certain financial obligations of all affiliate entities that include advances of funds, capital
contributions,
loans, and any and all other payments and options per the Operating Agreements. Tax credit
availability and compliance guarantees are also provided by MDHA.
NOTE 15 - NET POSITION
The Agency's net position is categorized as follows:
Net investment in capital assets - This component of net position consists of capital assets, net of accumulated
depreciation, cash reserves held for future building repairs and improvements reduced by the outstanding
balances of any bonds, mortgages, notes, lease obligations or other borrowings and related interest that are
attributable to the acquisition, construction, or improvement of those assets.
Restricted net position - This component of net position consists of restricted assets, whereby constraints are
placed on assets by creditors (such as debt covenants), grantors, laws and regulations.
Unrestricted net position - This component of net position consists of net position that does not meet the
definition of "restricted" or "net investment in capital assets".
The changes in the Agency's net position for the year ended September 30, 2023 are as follows:
Net investment in
capital assets Restricted Unrestricted Totals
Net position - September 30, 2022
September 30, 2022 236,065,680$ 58,050,856$ 134,445,062$ 428,561,598$
Changes in net position - 2023 378,008 4,772,259 (6,676,015) (1,525,748)
Net position - September 30, 2023 236,443,688$ 62,823,115$ 127,769,047$ 427,035,850$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-46-
NOTE 15 - NET POSITION (CONTINUED)
A breakdown of the Agency's restricted net position as of September 30, 2023 is as follows:
Replacement reserve accounts 57,507,331$
Section 8 HAP reserves 440,434
Post RAD Rehab escrows 1,286,048
MDHA Kirkpatrick Park LLC Escrow 141,009
MDHA J Henry Hale LLC escrow accounts 606,736
MDHA 10th & Jefferson escrow accounts 614,269
MDHA Madison Towers LLC escrow accounts 861,645
Other reserves & property mgmt deposits 1,365,643
62,823,115$
The changes in net position for the Discretely Presented Component Units for the year ended December 31, 2022
are as follows:
Net investment in
capital assets Restricted Unrestricted Totals
Net position (deficit) -
Januar
y
1, 2022
40,462,520$ 4,451,377$ 1,535,101$ 46,448,998$
Changes in net position - 2022 9,101,122 308,455 2,200,509 11,610,086
Net position (deficit) -
December 31, 2022
49,563,642$ 4,759,832$ 3,735,610$ 58,059,084$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-47-
NOTE 16 - MEMBERS CAPITAL CONTRIBUTIONS
Contingent upon various requirements as outlined in the Amended and Restated Partnership Agreement for Victory
Hall, L.P., the Limited Partner has agreed to contribute $6,510,037 for a 99.99% interest in the Partnership. As of
September 30, 2023, all capital contributions were received less a credit adjuster of $174,141.
Contingent upon various requirements as outlined in the Amended and Restated Partnership Agreement for
Boscobel III, L.P., the Limited Partner has agreed to contribute $11,278,872 for a 99.99% interest in the Partnership.
As of September 30, 2023, all capital contributions were received less a credit adjuster of $20,771.
Contingent upon various requirements as outlined in the First Amended and Restated Partnership Agreement for
Randee Rogers, L.P., the Limited Partner has agreed to contribute $4,799,688 for a 99.99% interest in the
Partnership. As of September 30, 2023, $719,953 capital contributions were received.
The General Partner of Randee Rogers L.P., has agreed to contribute $100 in return for 0.01% interest in the
partnership. As of September 30, 2023 this capital contribution had not been funded.
NOTE 17 - INCOME TAXES
The Agency is exempt from income taxes as it is a governmental entity and, therefore, is not subject to taxation.
The Agency's blended component units, due to their nature, are not subject to federal and state income taxes at the
company level. All income, gains and losses are based through to the members and taxed at their respective level.
As such, no provision for current or deferred income taxes has been provided in the accompanying financial
statements.
No provision for federal or state income taxes has been made in the Discretely Presented Component Unit's financial
statements as the federal and state income tax effect on the Discretely Presented Component Unit's activities accrues
to its partners.
NOTE 18 - CONCENTRATIONS
MDHA has entered into a Memorandum of Understanding with the Service Employees International Union,
Local 205 for the term September 30, 2023 through September 30, 2027. Approximately 30% of MDHA's
non-exempt, non-supervisory employees are members of the union.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-48-
NOTE 19 - FUTURE ACCOUNTING PRONOUNCEMENTS
GASB Statement No. 101 - Compensated Absences, was issued in June 2022. The objective of this Statement is to
better meet the information needs of financial statement users by updating the recognition and measurement
guidance for compensated absences. This Statement requires that liabilities for compensated absences be recognized
for leave that has not been used and leave that has been used but not yet paid in cash or settled through noncash
means. The requirements of this Statement are effective for fiscal years beginning after December 31, 2023.
GASB Statement No. 102 – Certain Risk Disclosures, was issued in December 2023. The objective of this
Statement is to provide the users of government financial statements with information about risks related to a
government’s vulnerabilities due to certain concentrations or constraints that is essential to their analyses for making
decisions and assessing accountability. The Statement establishes financial reporting requirements for such risks
and applies to financial statements of all state and local governments. The requirements of this Statement are
effective for fiscal years beginning after June 15, 2024.
Management of MDHA is currently evaluating these standards and at this time cannot quantify the impact on net
position at implementation.
NOTE 20 – SUBSEQUENT EVENTS
In December 2023, the Agency approved the issuance of General Obligation Bonds, Series 2023, in the amount of
$43,000,000, for the purpose of providing funds necessary to finance the construction of Park Point East
Apartments. The bonds mature February 2048 and carry an effective interest rate of 3.50%. The bonds are expected
to convert to permanent financing upon completion of the construction phase.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-49-
NOTE 21 - CONDENSED FINANCIAL STATEMENTS
Boscobel I L.P. CP II I L.P. Boscobel III L.P.
Victory Hall
L.P.
Randee Rogers
L.P. Levy Place L.P.
Ryman Lofts at
Rolling Mill Hill L.P . Bos cobel IV L.P . Total
ASSETS
Current Assets
1,484,755$ 1,451,338$ 1,792,026$ 1,390,824$ 732,346$ 2,138,253$ 735,192$ -$ 9,724,734$
Capital Assets, Net 23,607,369 30,314,146 26,191,267 6,241,546 26,701,478 18,465,572 5,022,122 15,488,557 152,032,057
Noncurrent Assets 82,435 76,500 93,217 56,454 318,987 115,361 - - 742,954
TOTAL ASSETS 25,174,559 31,841,984 28,076,510 7,688,824 27,752,811 20,719,186 5,757,314 15,488,557 162,499,745
DEFERRED OUTFLOWS OF RESOURCES
- - - - - - - - -
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 25,174,559 31,841,984 28,076,510 7,688,824 27,752,811 20,719,186 5,757,314 15,488,557 162,499,745
LIABILITIES
Current Liabilities 321,668 329,702 338,201 165,685 13,517,906 191,402 65,877 8,654,379 23,584,820
Noncurrent Liabilities
13,475,537 15,404,721 17,764,447 1,500,702 14,595,353 11,776,170 659,540 5,679,371 80,855,841
TOTAL LIABILITIES 13,797,205 15,734,423 18,102,648 1,666,387 28,113,259 11,967,572 725,417 14,333,750 104,440,661
DEF
ERRED INFLOWS OF RESOURCES
- - - - - - - - -
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES 13,797,205 15,734,423 18,102,648 1,666,387 28,113,259 11,967,572 725,417 14,333,750 104,440,661
NET POSITION
Net investment (deficit) in capital assets 9,892,739 14,680,535 8,179,235 4,718,744 (177,163) 6,764,447 4,350,298 1,154,807 49,563,642
Unrestricted net position (deficit) 616,469 590,728 967,869 1,006,247 (411,839) 609,582 356,554 - 3,735,610
Restricted net position 868,146 836,298 826,758 297,446 228,554 1,377,585 325,045 - 4,759,832
TOTAL NET POSITION (DEFICIT) 11,377,354$ 16,107,561$ 9,973,862$ 6,022,437$ (360,448)$ 8,751,614$ 5,031,897$ 1,154,807$ 58,059,084$
Discretely Presented Component Units
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
STATEMENT OF NET POSITION
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-50-
NOTE 21 - CONDENSED FINANCIAL STATEMENTS (CONTINUED)
Boscobel I L.P. CP II I L.P. Boscobel III L.P.
Victory Hall
L.P.
Randee Rogers
L.P. Levy Place L.P.
Ryman Lofts at
Rolling Mill Hill L.P . Bosc obe l IV L.P . Tota l
OPERATING REVENUES
Rentals
620,991$ 773,154$ 975,009$ 124,254$ 376,467$ 1,218,153$ 653,471$ -$ 4,741,499$
Other tenant revenue
75,390 101,983 59,285 6,463 14,527 39,102 9,950 - 306,700
Governmental operating revenue
387,364 359,175 281,980 277,768 76,659 721,934 - - 2,104,880
Other income 53,763 - 60,552 17,574 16,610 52,509 12,790 - 213,798
TOTAL OPERATING REVENUES 1,137,508 1,234,312 1,376,826 426,059 484,263 2,031,698 676,211 - 7,366,877
OPERATING EXPENSES
Cost of Services:
Tenant services
32,046 32,226 24,837 - 1,339 75,573 4,365 - 170,386
Utilitie s
104,362 118,769 94,847 59,059 104,052 83,066 36,357 - 600,512
Ordinary maintenance and operations
265,333 193,574 123,124 9,205 70,077 365,069 94,140 - 1,120,522
Protective services
3,628 3,816 7,819 70,209 18,687 58,347 10,570 - 173,076
Other direct program costs
163,136 194,622 221,270 57,685 197,241 251,249 53,494 - 1,138,697
Administration
280,763 392,686 473,680 43,515 138,233 430,729 112,055 5,500 1,877,161
Depreciation and Amortization
918,894 1,123,109 927,762 205,229 561,682 515,977 219,557 - 4,472,210
TOTAL OPERATING EXPENSES
1,768,162 2,058,802 1,873,339 444,902 1,091,311 1,780,010 530,538 5,500 9,552,564
OPERATING INCOME (LOSS)
(630,654) (824,490) (496,513) (18,843) (607,048) 251,688 145,673 (5,500) (2,185,687)
NONOPERATING REVENUES (EXPENSES)
Interest income 2,512
2,892 3,270 760 967 4,289 - - 14,690
Interest expense (288,559) (186,248) (281,150) (36,657) (449,320) (201,999) (20,892) (49,501) (1,514,326)
TOTAL NONOPERATING EXPENSES - NET (286,047) (183,356) (277,880) (35,897) (448,353) (197,710) (20,892) (49,501) (1,499,636)
Other s pe cial ite ms - - - - (690,444) - - 796,696 106,252
Members capital contributions 959,904 970,644 10,919,735 1,205,809 719,953 - - 413,112 15,189,157
CHANGES IN NET POSITION 43,203 (37,202) 10,145,342 1,151,069 (1,025,892) 53,978 124,781 1,154,807 11,610,086
NET POSITION (DEFICIT) - BEGINNING OF YEAR 11,334,151 16,144,763 (171,480) 4,871,368 665,444 8,697,636 4,907,116 - 46,448,998
NET POSITION (DEFICIT) - END OF YEAR 11,377,354$ 16,107,561$ 9,973,862$ 6,022,437$ (360,448)$ 8,751,614$ 5,031,897$ 1,154,807$ 58,059,084$
Discretely Presented Component Units
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-51-
NOTE 21 - CONDENSED FINANCIAL STATEMENTS (CONTINUED)
MDHA
MDHA Housing
Trust Corp
J Henry Hale
LLC
10th &
Jefferson LLC
Madison Towers
LLC
Kirkpatrick
Park LLC Total
ASSETS
Current Assets
138,139,402 177,260$ 1,519,298$ 1,242,118$ 980,734$ 308,159$ 142,366,971$
Capital Assets, Net 279,880,132 - 24,386,956 8,335,855 8,810,312 20,980,805 342,394,060
Noncurrent Assets 132,920,844 - - - - - 132,920,844
TOTAL ASSETS 550,940,378 177,260 25,906,254 9,577,973 9,791,046 21,288,964 617,681,875
DEFERRED OUTFLOWS OF RESOURCES
- - - - - - -
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 550,940,378 177,260 25,906,254 9,577,973 9,791,046 21,288,964 617,681,875
LIABILITIES
Current Liabilities 33,984,483 16,210 690,397 742,260 350,923 346,911 36,131,184
Noncurrent Liabilities
99,650,713 8,570 17,747,515 7,424,499 6,249,371 12,637,740 143,718,408
TOTAL LIABILITIES 133,635,196 24,780 18,437,912 8,166,759 6,600,294 12,984,651 179,849,592
DEFERRED INFLOWS OF RESOURCES
10,796,433 - - - - - 10,796,433
TOTAL LIABILITIES AND DEFERRED
INFLOWS OF RESOURCES 144,431,629 24,780 18,437,912
8,16
6,759 6,600,294 12,984,651 190,646,025
NET POSITION
Net investment (deficit) in capital assets 218,851,786 - 6,245,199 773,411 2,443,513 8,129,779 236,443,688
Unrestricted net position (deficit) 127,443,087 152,480 230,542 23,819 (114,406) 33,525 127,769,047
Restricted net position 60,213,876 - 992,601 613,984 861,645 141,009 62,823,115
TOTAL NET POSITION (DEFICIT) 406,508,749$ 152,480$ 7,468,342$ 1,411,214$ 3,190,752$ 8,304,313$ 427,035,850$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-52-
NOTE 21 - CONDENSED FINANCIAL STATEMENTS (CONTINUED)
MDHA
MDHA Housing
Trust Corp
J Henry Hale
LLC
10th & Jefferson
LLC
Madison Towers
LLC
Kirkpatrick
Park LLC
Total
OPERATING REVENUES
Rentals
16,671,489$ -$ 1,189,645$ 547,457$ 626,033$ 917,517$ 19,952,141$
Other tenant revenue
642,326 - 50,501 17,113 7,294 93,279 810,513
Governmental o
p
eratin
g
revenue
128,355,931 - 1,141,480 - 1,048,213 219,195 130,764,819
Program income
- - - - - - -
Local government development activities - - - - - - -
Other income 25,544,023 219,115 2,831 1,365,456 15,452 1,457 27,148,334
TOTAL OPERATING REVENUES 171,213,769 219,115 2,384,457 1,930,026 1,696,992 1,231,448 178,675,807
OPERATING EXPENSES
Cost of Services:
Tenant services
1,009,547 9,409 5,318 3,552 42,673 6,229 1,076,728
Utilities
10,522,063 - 62,709 51,466 412,508 83,388 11,132,134
Ordinar
y
maintenance and o
p
erations
25,034,070 - 605,514 1,449,225 687,207 254,373 28,030,389
Protective services
2,319,302 - 84,951 14,869 190,589 42,451 2,652,162
Other direct
p
ro
g
ram costs and s
p
ecial item
25,522,411 56,959 142,741 33,667 83,457 87,378 25,926,613
Housin
g
assistance
p
a
y
ments
67,834,123 - - - - - 67,834,123
Administration
27,607,847 116,398 513,147 139,976 411,079 210,812 28,999,259
De
p
reciation
10,287,934 - 1,153,086 282,893 810,350 722,310 13,256,573
TOTAL OPERATING EXPENSES
170,137,297 182,766 2,567,466 1,975,648 2,637,863 1,406,941 178,907,981
OPERATING INCOME (LOSS)
1,076,472 36,349 (183,009) (45,622) (940,871) (175,493) (232,174)
NONOPERATING REVENUES (EXPENSES)
Interest income 3,486,999 4,017 57,014 1,689 7,405 4,697 3,561,821
Impairment allowance on notes receivable - - - - - - -
Loss on disposition of assets - - - - - - -
Gain (loss) on disposition of assets 790,007 - - - - - 790,007
Interest expense (3,272,394) - (634,001) (200,848) (226,969) (514,460) (4,848,672)
TOTAL NONOPERATING EXPENSES - NET 1,004,612 4,017 (576,987) (199,159) (219,564) (509,763) (496,844)
DECREASE IN NET POSITION BEFORE
CONTRIBUTIONS AND CASUALTY LOSS 2,081,084 40,366 (759,996) (244,781) (1,160,435) (685,256) (729,018)
Other Special Items (796,730) - - - - - (796,730)
Captial Fund Grant - - -
- - - -
Operating/Equity Transfers (901,026) (27,531) (56,490) - 450,000 535,047 -
Transfer of equity from Discreetly Presented
Components Unit to the Primary Governmen
t
- - - - - - -
C
ap
i
ta
l
contr
ib
ut
i
ons - - - - - - -
CHANGES IN NET POSITION 383,328 12,835 (816,486) (244,781) (710,435) (150,209) (1,525,748)
NET POSITION (DEFICIT) - BEGINNING OF YEAR
406,125,421 139,645 8,284,828 1,655,995 3,901,187 8,454,522 428,561,598
PRIOR PERIOD ADJUSTMENT - - - - - - -
NET POSITION - BEGINNING OF YEAR AS RESTATED
406,125,421 139,645 8,284,828 1,655,995 3,901,187 8,454,522 428,561,598
NET POSITION (DEFICIT) - END OF YEAR 406,508,749$ 152,480$ 7,468,342$ 1,411,214$ 3,190,752$ 8,304,313$ 427,035,850$
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2023
SUPPLEMENTARY INFORMATION
See accompanying independent auditor's report.
-53-
FEDERAL
ALN GRANTOR’S GRANT
GRA NT
NUMBER NUMBER PERIOD EXPENDITURES SUB-RECIPIENTS
U.S. DEPARTMENT OF HEALTH A ND HUMA N SERVICES
Passed through State Department of Human Services:
Low In come Home Energy As sistance Program 93.568 LW x-20 09-01-23 to 8-31-24 205,664$
Passed through State Department Center of Disease Control:
Community Health Worker Program 93.268 34349-30723 07-01-22 to 6-30-24 294,907$
TOTA L U.S. DEPARTMENT OF HEALTH A ND HUMA N SERVICES
500,571$
CORPORA TION FOR NA TIONAL AND COMMUNITY SERVCE
Passed through Volunteer Tennessee
Americo rps Program Services 94.006 31701-112222 09-01-21 to 12-31-22 1,495$
TOTA L CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
1,495
U.S. DEPARTMENT OF ENERGY
Weath erization A s sis tance for Low-In come Pers ons 81.042 W AP-23-07 07-01-23 to 6-30-24 368,327
TOTA L U.S. DEPARTMENT OF ENERGY
368,327
U.S. DEPARTMENT OF JUSTICE
BAJ Innovations in Community-Bas ed Crime Reduction Program 16.817 2020-BJ-BX 10/01/20 to 09/30/24
62,033
TOTA L U.S. DEPARTMENT OF JUSTICE
62,033
FEDERAL COM MUNICATIONS COMMISSION
YHYI Pilot Grant 32.011 ACOGP2340121-00 06-01-23 to 05-31-24
315
ACP Outreach 32.011 ACOGP2340177-00 06-15-23 to 06-14-25
54
TOTAL FEDERAL COM MUNICA TIONS COMMISSION 369
U.S. DEPARTMENT OF HOUSING AND
URBA N DEVELOPM ENT
Direct Programs:
Low-Income Hous ing As sistance Program - Rental Hous ing 14.850 A-3777 1/1/2023-12/31/2023 117,277
117,277
Housing Voucher Cluster:
Section 8 Housing Choice Vouchers 14.871 A-3152V 10-1-22 to 9-30-23 68,028,754
Section 8 Emerg ency Hous ing Vouchers 14.871 TN005EH0001 10-1-22 to 9-30-23 1,271,828
Section 8 Community Choice Demons tration Grant 14.871 M21-097 10-1-22 to 9-30-23 512,324
Section 8 5yr Mains tream Vouchers 14.879 TN005DV0001 10-1-22 to 9-30-23 2,223,956
72,036,862
Section 8 Project Based Cluster:
Lower-Income Housing Ass istance Program:
Section 8 Moderate Rehab ilitation - Sin g le Room Occupan cy 14.249 TN005SR0007 10-1-22 to 9-30-23 267,236
Section 8 Moderate Rehab ilitation - Sin g le Room Occupan cy 14.249 TN005SC0001 10-1-22 to 9-30-23
139,803
407,039
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
FOR THE YEAR ENDED SEPTEMBER 30, 2023
SCHEDULE OF EXPENDITURES OF FEDERA L AW ARDS
See accompanying independent auditor's report.
-54-
FEDERAL
ALN GRANTOR’S GRANT
GRANT
NUMBER NUMBER PERIOD EXPENDITURES SUB-RECIPIENTS
Housing Assistance Payments Program:
CWA Apartments I 14.195 TN43L000015 10-1-22 to 9-30-23 2,089,284
CWA Apartments II 14.195 TN43L000016 10-1-22 to 9-30-23 838,152
MDHA J Henry Hale LLC 14.195 TN43RD00004 10-1-22 to 9-30-23 1,141,480
Cumberland View 14.195 TN43RD00003 10-1-22 to 9-30-23 2,299,996
Andrew Jackson 14.195 TN43RD00002 10-1-22 to 9-30-23 2,277,128
MDHA Madison Towers LLC 14.195 TN43RD00007 10-1-22 to 9-30-23 1,048,213
Edgefield Manor 14.195 TN43RD00006 10-1-22 to 9-30-23 1,193,259
Parkway Terrace 14.195 TN43RD00008 10-1-22 to 9-30-23 694,779
Napier Place 14.195 TN43RD00011 10-1-22 to 9-30-23 2,607,383
Sudekum Apartments 14.195 TN43RD00012 10-1-22 to 9-30-23 3,405,161
Edgehill Apartments 14.195 TN43RD00013 10-1-22 to 9-30-23 3,027,200
Gernert Studio Apartments 14.195 TN43RD00010 10-1-22 to 9-30-23 654,683
Hadley Towers 14.195 TN43RD00015 10-1-22 to 9-30-23 621,787
Parthenon Towers 14.195 TN43RD00014 10-1-22 to 9-30-23 1,177,715
Carleen Batson Waller Manor 14.195 TN43RD00016 10-1-22 to 9-30-23 191,055
Vine Hill Towers 14.195 TN43RD00005 10-1-22 to 9-30-23 843,366
Vine Hill Apartments 14.195 TN43RD00017 10-1-22 to 9-30-23 565,973
Preston Taylor Neighborhood Housing 14.195 TN43RD00019 10-1-22 to 9-30-23 179,563
Boscobel Heights 14.195 TN43RD00021 10-1-22 to 9-30-23 2,717,663
Cheatham Place 14.195 TN43RD00018 10-1-22 to 9-30-23 1,698,946
Neighborhood Housing 14.195 TN43RD00024 10-1-22 to 9-30-23 1,885,944
Historic Preston Taylor 14.195 TN43RD00020 10-1-22 to 9-30-23 835,369
MDHA Kirkpatrick Park LLC 14.195 TN43RD00025 10-1-22 to 9-30-23 219,195
32,213,294
Section 8 Project Based Cluster Total 32,620,333
U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT (CONTINUED)
Direct Programs (Continued):
Continuum of Care Program
Continuum of Care - CoC Rental Assistance 14.267
TN0068L4J042114
07-01-22 TO 06-30-23 1,724,396
Continuum of Care - CoC Rental Assistance 14.267
TN0068L4J042115
07-01-23 TO 06-30-24 397,670
Continuum of Care - CoC Planning Grant 14.267
TN0373L4J042100
07-01-22 TO 06-30-23 158,216
Continuum of Care - CoC Planning Grant 14.267
TN0373L4J042200
07-01-23 TO 06-30-24 37,257
2,317,539
Resident Opportunity and Supportive Services Program:
Family Self-Sufficiency Program 14.896
FSS22TN4740
01-01-22 to 12-31-22 75,845
Family Self-Sufficiency Program 14.896
FSS23TN5418-01
01-01-23 to 12-31-23
265,973
341,818
Passed Through Metropolitan Government of
Nashville and Davidson County, Tennessee:
Cluster:
Community Development Block Grants Program:
Community Development Block Grants/Entitlement Grants 14.218 B-XX-MC-47-0007 N/A 9,303,150 932,501
Community Development Block Grants/Entitlement Grants CAREs 14.218 B-20-MW-47-0007 07-21-20 to 07-21-2026 4,981,575 1,456,750
Community Development Block Grants/Entitlement Grants DDRF 14.218 B-20-MC-47-2007 9/22/20 to 9/30/25 148,068
Community Development Block Grants/Entitlement Grants DRGR 14.218 B-XX-MC-47-0007 N/A 151,557
Community Development Block Grants/Entitlement Grants-Disaster 14.218 B-10-MF-47-0002 04-30-2010 to
92,520
92,520
14,676,870
HOME Investment Partnerships Program 14.239 M-XX-MC-47-0203 N/A 3,181,597
HOME Investment Partnerships Program American Recovery Plan 14.239 M21-MP470203 2021-2030 55,894
3,237,491
Housing Opportunities for Persons with AIDS (HOPWA) 14.241 TN-HXX-F002 N/A 1,048,291 984,445
Housing Opportunities for Persons with AIDS (HOPWA) CAREs 14.241 TN-HXX-F002 07-24-20 to 07-24-23
2,720
2,720
1,051,011
Coronavirus State & Local Fiscal Recovery Funds 21.027 RS2022-1310 1-5-2022 to 12-31-2024 822,480
822,480
Emergency Shelter Grants Program 14.231 E-XX-MC-47-0004 N/A 449,042 437,393
Emergency Shelter Grants Program CAREs 14.231 E-20-MW-47-0007 07-24-20 to 12-31-23
1,145,965
948,848
1,595,007
Passed Through Tennessee Housing & Development Agency:
Emergency Shelter Grants Program CAREs 14.231 ESG-CV2-52 01-01-21 to 09-30-23 1,015,336
1,015,336 1,015,336
2,610,343 2,401,577
TOTAL U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT
129,832,024
TOTAL FEDERAL FINANCIAL ASSISTANCE
130,764,819$
5,870,513$
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
FOR THE YEAR ENDED SEPTEMBER 30, 2023
See accompanying independent auditor's report.
-55-
ALN
NUMBER
DESCRIPTION EXPENDITURES
14.871 * Section 8 Housing Choice Vouchers (HCV cluster) 69,812,906$
14.879 * Section 8 Five Year Mainstream Vouchers (HCV cluster) 2,223,956
14.195 Housing Assistance Payments Program 32,213,294
14.267 Continuum of Care 2,317,539
14.218 Community Development Block Grants/Entitlement Grants (CDBG cluster) 14,676,870
14.239 * HOME Investment Partnerships Program 3,237,491
14.241 Housing Opportunities for Persons With AIDS 1,051,011
81.042 Weatherization Assistance for Low-Income Persons 368,327
14.249 Section 8 Moderate Rehabilitation - Single Room Occupancy 407,039
14.896 Family Self-Sufficiency Program 341,818
16.817 Community-Based Crime Reduction 62,033
14.850 Low Income Housing Assistance Program 117,277
14.231 Emergency Shelter Grants Program 2,610,343
32.011 Federal Communications Commission Programs 369
21.027 Coronavirus State & Local Fiscal Recovery Program 822,480
94.006 Americorps Program 1,495
93.268 Community Health Worker Program 294,907
93.568 Low Income Home Energy Assistance Program 205,664
TOTAL FEDERAL FINANCIAL ASSISTANCE 130,764,819$
*Tested as major programs in the current year.
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2023
See accompanying independent auditor's report.
-56-
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
FOR THE YEAR ENDED SEPTEMBER 30, 2023
NOTE A - BASIS OF PRESENTATION
This schedule of expenditures of federal awards includes the federal grant activity of the Metropolitan Development and
Housing Agency and is presented in accordance with accounting principles generally accepted in the United States of
America, which is the same basis of accounting as the 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, Audit Requirements, for Federal Awards ("Uniform Guidance").
NOTE B - INDIRECT COSTS
Pursuant to a cost allocation plan, the indirect expenses are allocated based on salary and fringe benefits. The Agency has
not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
See accompanying independent auditor's report.
-57-
METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
SCHEDULE OF CHANGES IN LONG-TERM DEBT BY INDIVIDUAL ISSUE
SEPTEMBER 30, 2023
Original Date Final Issued Paid and/or
Amount Interest of Maturity Outstanding During Matured Outstanding
Description of Indebtedness of Issue Rate Issue Date 10/1/2022 Period During Period 9/30/2023
Affordable Housing Activities
Lenore Garden Apartments 1,400,000$ Variable 5/24/2012 6/25/2024 174,738$ -$ (174,738)$ -$
Uptown Flats 2,945,072 5.51 % 4/19/2014 1/1/2024 1,215,538 - (228,359) 987,179
Nance Place Apartments 2,300,000 Variable 12/1/2011 12/1/2026 1,469,308 - (76,680) 1,392,628
Nance Place Apartments 9,076,327 0.0 % 12/1/2009 11/1/2024 4,064,576 - (812,915) 3,251,661
CWA Apartments 3,508,629 1.0 % 12/19/2014 9/30/2034 2,654,144 - (202,564) 2,451,580
CWA II Apartments 1,659,585 1.0 % 12/19/2014 9/30/2034 1,265,079 - (96,178) 1,168,901
10th & Jefferson Apartments 7,872,100 2.6 % 11/1/2021 12/1/2061 7,675,376 16,622 (129,554) 7,562,444
J Henry Hale Apartments 20,478,300 3.41 % 7/1/2017 8/1/2052 18,499,075 52,351 (409,669) 18,141,757
Kirkpatrick Park Apartments 13,776,500 3.9 % 11/1/2017 6/1/2059 13,008,829 42,623 (200,426) 12,851,026
Madison Towers 6,986,400 3.44 % 8/1/2019 9/1/2054 6,477,100 18,760 (129,061) 6,366,799
Harper Cove Townhomes 5,400,000 Variable 5/30/2018 5/30/2030 5,069,122 - (136,584) 4,932,538
Red Oak Townhomes 6,000,000 Variable 10/31/2022 10/31/2040 5,430,709 - (213,111) 5,217,598
Victory Hall Apartments 500,000 0.0 % 8/2/2019 8/2/2025 400,000 - (100,000) 300,000
Mosley on 6th 7,000,000 Variable 8/15/2018 8/15/2033 6,629,800 - (209,050) 6,420,750
Cherry Oak Apartments Market Units 10,000,000 Variable 5/23/2022 5/23/2024 - 7,210,660 7,210,660
MDHA -Boscobel IV 5,795,847 (4,278,963) 1,516,884
MDHA -Boscobel IV Eliminated (5,795,847)
4,278
,963 (1,516,884)
Total Affordable Housing Activity Loans 74,033,394$ 7,341,016$ (3,118,889)$ 78,255,521$
Development Activities
Metro Government of Nashville Sports Authority 28,000,000$ 4.55 % 7/1/2014 7/1/2043 27,521,841$ 1,233,603$ (1,929,907)$ 26,825,537$
5th Ave of the Arts Garage 42,900,000 4.839 % 11/14/2014 11/14/2044 38,778,135 - (971,418) 37,806,717
K-8 Charter School 4,960,000 6.0 % 9/24/2018 9/24/2025 4,827,129 - (141,025) 4,686,104
K-8 Charter School 4,960,000 6.0 % 9/24/2018 9/24/2025 4,786,303 - (184,355) 4,601,948
K-8 Charter School 4,960,000 6.0 % 9/24/2018 9/24/2025 4,829,211 - (139,005) 4,690,206
Total Development Activity Loans 80,742,619 1,233,603 (3,365,710)$ 78,610,512
Total Primary Government Debt 154,776,013$ 8,574,619$ (6,484,599)$ 156,866,033$
OTHER REPORTS
cbh.com
-58-
Report of Independent Auditor on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
To the Board of Commissioners
Metropolitan Development and Housing Agency
Nashville, Tennessee
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the business-type activities and the
aggregate discretely presented component units of Metropolitan Development and Housing Agency (the
“Agency”), as of and for the year ended September 30, 2023, and the related notes to the financial statements,
which collectively comprise the Agency’s basic financial statements, and have issued our report thereon dated
March 19, 2024. Our report includes a reference to other auditors who audited the financial statements of certain
discretely presented component units as described in our report on the Agency’s financial statements. This report
does not include the results of the other auditors’ testing of internal control over financial reporting or compliance
and other matters that are reported on separately by those auditors.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency’s internal control over
financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the Agency’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that
we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that
were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit and,
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards.
-59-
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the Agency’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Agency’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Lexington, Kentucky
March 19, 2024
cbh.com
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Independent Auditor’s Report on Compliance for Each Major Federal Program and
Report on Internal Control over Compliance in Accordance with the Uniform Guidance
To the Board of Commissioners
Metropolitan Development and Housing Agency
Nashville, Tennessee
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Metropolitan Development and Housing Agency's (the “Agency's”) compliance with the types
of compliance requirements described in the OMB Compliance Supplement that could have a direct and material
effect on each of the Agency’s major federal programs for the year ended September 30, 2023. The Agency’s
major federal programs are identified in the summary of auditor’s results section of the accompanying schedule
of findings and questioned costs.
In our opinion, the Agency complied, in all material respects, with the types of compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs for the year ended
September 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (“Uniform Guidance”). Our responsibilities under those standards and the Uniform Guidance are further
described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our
audit does not provide a legal determination of the Agency's compliance with the compliance requirements
referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Agency's federal
programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on
the Agency’s
compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance
and, therefore, is not a guarantee that an audit conducted in accordance with auditing standards generally
accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance will always
detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred
to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the Agency’s compliance
with the requirements of each major federal program as a whole.
-61-
In performing an audit in accordance with auditing standards generally accepted in the United States of America,
Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the Agency’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
Obtain an understanding of the Agency’s internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal control
over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of the Agency’s internal control over compliance. Accordingly, no such
opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control
over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely
basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material noncompliance with a
type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely
basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is less severe
than a material weakness in internal control over compliance, yet important enough to merit attention by those
charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit, we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses
or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Lexington, Kentucky
March 19, 2024
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METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
SECTION I - SUMMARY OF INDEPENDENT AUDITORS' RESULTS
Financial Statements
Type of auditors' report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified not considered to
be material weaknesses? yes x none reported
Noncompliance material to financial statements noted? yes x no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? yes x no
Significant deficiency(ies) identified not considered to
be material weaknesses? yes x none reported
Type of auditors' report issued on compliance for
major programs Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516(a)? yes x no
Identification of major programs:
Housing Voucher Cluster:
14.871 Housing Choice Vouchers
14.879 Mainstream Vouchers
14.EHV Emergency Housing Vouchers
14.239 Home Investment Partnerships Program
Dollar threshold used to distinguish between Type A and Type B programs: $ 3,000,000
Auditee qualified as low-risk auditee? X yes _ no
SECTION II - FINANCIAL STATEMENT FINDINGS
None.
SECTION III - FEDERAL AWARDS
None.
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METROPOLITAN DEVELOPMENT AND HOUSING AGENCY
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED SEPTEMBER 30, 2023
None.
Metropolitan Development & Housing Agency (TN005)
NASHVILLE, TN
Entity Wide Balance Sheet Summary
Submission Type: Audited/Single Audit Fiscal Year End: 09/30/2023
-64-
16.817 Byrne
Criminal Justice
Innovation Program
14.EFA FSS
Escrow Forfeiture
Account
81.042
Weatherization
Assistance for Low-
Income Persons
14.256
Neighborhood
Stabilization
Program (Recovery
Act Funded)
6.1 Component Unit
- Discretely
Presented
6.2 Component Unit
- Blended
14.896 PIH Family
Self-Sufficiency
Program
14.895 Jobs-Plus
Pilot Initiative
1 Business
Activities
2 State/Local
14.267 Continuum
of Care Program
8 Other Federal
Program 1
21.027 Coronavirus
State and Local
Fiscal Recovery
Funds
14.195 Section 8
Housing Assistance
Payments
Program_Special
Allocations
93.568 Low-Income
Home Energy
Assistance
14.879 Mainstream
Vouchers
14.239 HOME
Investment
Partnerships
Program
14.871 Housing
Choice Vouchers
14.231 Emergency
Shelter Grants
Program
$826,306 $3,525,494 $1,108,038 $33,127,178 $7,013,590 $5,469,003 $1,807 $168,482 $3,331,350
$2,609,245 $1,403,941 $58,159,207
$225,048 $4,828,365 $245,383 $153,384 $717,549
$329,564 $249,356 $282,754 $1,368,111
$0 $225,048 $0 $826,306 $8,683,423 $3,966,639 $0 $0 $34,813,873 $7,258,973 $0 $0 $0 $64,996,321 $0 $155,191 $168,482 $4,048,899 $0
$14,864 $24,754 $51,750 $369 $742,111 $96,367 $178,516
$131,113 $96,070 $18,486 $2,796,506 $79,774 $86,180 $45,306
$147,408 $3,110,469 $4,485 $102 $753 $16,606
$666,086 $418,715 $264,249 $2,276,071
-$524,804 -$325,045 -$180,788 -$1,800,319
$0 $0 $0 $0 $0 $0 -$12,275 $0 $0 $0 $0 $0 $0 -$9,191 $0 $0
$233,000 $12,275 $117,779
$129,743 $10,682 $6,295,728
-$129,743 -$10,682 -$6,295,728
$131,113 $0 $96,070 $0 $156,146 $93,670 $24,754 $0 $482,355 $5,906,975 $56,235 $369 $79,774 $562,034 $45,306 $753 $850,699 $112,973 $178,516
$560 $926 $885,165 $167,260 $1,741 $1,303,832 $5,956 $561 $305 $208,887 $1,459 $24,438 $798
$0
$53,123 $147,194
$131,673 $225,048 $96,996 $826,306 $9,724,734 $4,227,569 $26,495 $0 $36,600,060 $13,225,027 $56,796 $369 $80,079 $65,767,242 $45,306 $155,944 $1,167,834 $4,186,310 $179,314
$1,256,636 $21,230,786 $9,692,611 $6,752,810 $58,980,116 $23,502,174 $90,000
$6,969,637 $126,038,410 $74,034,819 $25,114,005 $42,789,845 $273,053,066 $625,649 $525,433
$4,635,506 $1,490,090 $123,356 $3,828,225
$6,338 $124,684 $5,916 $15,446
-$6,338 -$1,887,803 -$15,361,202 -$32,079,126 -$6,627,018 -$8,964,652 -$208,065,706 -$210,507 -$42,813
$15,
488,557 $29,
990,939 $201,117
$9,250,850 $907,572 $16,346,125
$0 $0 $0 $6,338,470 $152,032,057 $62,513,928 $0 $0 $56,261,664 $92,805,309 $0 $0 $201,117 $108,669,800 $0 $0 $505,142 $498,066 $0
$69,244,258 $17,191,979 $5,234,683
$742,954 $280,513 $42,421,543
$0 $0 $0 $6,338,470 $152,775,011 $62,513,928 $0 $0 $125,786,435 $152,418,831 $0 $0 $201,117 $108,669,800 $0 $0 $5,739,825 $498,066 $0
$131,673 $225,048 $96,996 $7,164,776 $162,499,745 $66,741,497 $26,495 $0 $162,386,495 $165,643,858 $56,796 $369 $281,196 $174,437,042 $45,306 $155,944 $6,907,659 $4,684,376 $179,314
$55 $388,719 $712,115 $5,078,014 $921,828 $212 $13,073 $1,420,461 $723,295 $19,103 $115,495
$741 $5,982 $22,330 $49,329 $15,545 $7,960 $34,025 $3,697 $1,974 $447,868 $9,455 $151,410 $5,060
$778 $5,881 $8,367 $33,068 $3,017 $5,265 $23,059 $6,153 $71 $721 $311,280 $5,521 $152,771 $2,413
$315,610 $249,356 $282,754 $1,368,111
$105,392 $116,979 $69,652 $35,954 $476,341 $158,665
$987,179 $21,716,841 $922,210 $9,006,788 $4,471,562 $301,644
$866,874
$160,687 $63,644 $4,781 $1,388,673 $29,366
$128,557 $73,006 $1,741 $3,982 $395 $34,106 $153 $62,832 $45,306 $1,832 $51,393
$130,076 $0 $84,924 $987,179 $23,584,820 $2,146,701 $20,303 $0 $14,459,196 $5,486,823 $44,168 $224 $78,600 $5,714,378 $45,306 $0 $898,768 $352,650 $174,361
$0 $80,751,574 $43,999,816 $31,724,930 $60,460,692 $3,318,837
$87,570 $6 $35,089 $655,547
$1,597 $12,072 $16,697 $67,873 $6,192 $10,805 $47,328 $12,628 $145 $1,479 $638,906 $11,333 $313,565 $4,953
$1,597 $0 $12,072 $0 $80,855,841 $44,067,695 $6,192 $0 $31,735,735 $60,508,020 $12,628 $145 $1,479 $3,992,832 $0 $0 $11,333 $969,112 $4,953
$131,673 $0 $96,996 $987,179 $104,440,661 $46,214,396 $26,495 $0 $46,194,931 $65,994,843 $56,796 $369 $80,079 $9,707,210 $45,306 $0 $910,101 $1,321,762 $179,314
$331,082 $10,465,351
$5,351,291 $49,563,642 $17,591,902 $35,928,954 $59,906,592 $201,117 $105,049,319 $505,142 $498,066
$225,048 $4,759,832 $2,609,239 $0 $1,403,941 $245,383 $0 $0 $58,124,118 $153,384 $62,002 $0
$0 $0 $0 $826,306 $3,735,610 $325,960 $0 $0 $78,527,587 $29,031,689 $0 $0 $0 $1,556,395 $0 $2,560 $5,492,416 $2,802,546 $0
$0 $225,048 $0 $6,177,597 $58,059,084 $20,527,101 $0 $0 $115,860,482 $89,183,664 $0 $0 $201,117 $164,729,832 $0 $155,944 $5,997,558 $3,362,614 $0
$131,673 $225,048 $96,996 $7,164,776 $162,499,745 $66,741,497 $26,495 $0 $162,386,495 $165,643,858 $56,796 $369 $281,196 $174,437,042 $45,306 $155,944 $6,907,659 $4,684,376 $179,314
600 Total Liabilities, Deferred Inflows of Resources and Equity - Net $8,910,111 $111,530 $6,026,247
512.4 Unrestricted Net Position $187,368 $0 $1,677,157
513 Total Equity - Net Assets / Position $5,703,749 $0 $3,052,179
511.4 Restricted Net Position $0 $0
512.3 Unassigned Fund Balance
510.3 Committed Fund Balance
511.3 Assigned Fund Balance
508.4 Net Investment in Capital Assets $5,516,381 $1,375,022
509.3 Restricted Fund Balance
508.3 Nonspendable Fund Balance
400 Deferred Inflow of Resources
300 Total Liabilities $3,206,362 $111,530 $2,974,068
357 Accrued Pension and OPEB Liabilities
350 Total Non-Current Liabilities $3,068,707 $1,984 $83,830
355 Loan Liability - Non Current
356 FASB 5 Liabilities
353 Non-current Liabilities - Other
354 Accrued Compensated Absences - Non Current $1,448 $1,984 $83,830
351 Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue $3,067,259
352 Long-term Debt, Net of Current - Operating Borrowings
310 Total Current Liabilities $137,655 $109,546 $2,890,238
347 Inter Program - Due To $90,914 $1,138,294
348 Loan Liability - Current
345 Other Current Liabilities
346 Accrued Liabilities - Other $9,525
343 Current Portion of Long-term Debt - Capital Projects/Mortgage Revenue $122,000
344 Current Portion of Long-term Debt - Operating Borrowings
341 Tenant Security Deposits $2,800
342 Unearned Revenue $830
332 Account Payable - PHA Projects
333 Accounts Payable - Other Government
325 Accrued Interest Payable
331 Accounts Payable - HUD PHA Programs
322 Accrued Compensated Absences - Current Portion $706 $967 $40,844
324 Accrued Contingency Liability
313 Accounts Payable >90 Days Past Due
321 Accrued Wage/Payroll Taxes Payable $13,305 $54,621
311 Bank Overdraft
312 Accounts Payable <= 90 Days $1,794 $4,360 $1,656,479
290 Total Assets and Deferred Outflow of Resources $8,910,111 $111,530 $6,026,247
200
Deferr
ed Outflow of Resources
180 Total Non-Current Assets $8,705,640 $0 $1,439,774
174 Other Assets
176 Investments in Joint Ventures
172 Notes, Loans, & Mortgages Receivable - Non Current - Past Due
173 Grants Receivable - Non Current
171 Notes, Loans and Mortgages Receivable - Non-Current $64,752
168 Infrastructure
160 Total Capital Assets, Net of Accumulated Depreciation $8,705,640 $0 $1,375,022
166 Accumulated Depreciation -$461,602 -$984,116
167 Construction in Progress
164 Furniture, Equipment & Machinery - Administration $20,789
165 Leasehold Improvements
162 Buildings $7,532,185 $1,402,415
163 Furniture, Equipment & Machinery - Dwellings $55,301 $90,223
161 Land $1,579,756 $845,711
145 Assets Held for Sale $1,144,993
150 Total Current Assets $204,471 $111,530 $4,586,473
143.1 Allowance for Obsolete Inventories
144 Inter Program Due From
142 Prepaid Expenses and Other Assets $709 $2,051 $7,726
143 Inventories
132 Investments - Restricted
135 Investments - Restricted for Payment of Current Liability
131 Investments - Unrestricted
129 Accrued Interest Receivable
120 Total Receivables, Net of Allowances for Doubtful Accounts $830 $109,479 $3,036,066
128 Fraud Recovery
128.1 Allowance for Doubtful Accounts - Fraud
126.2 Allowance for Doubtful Accounts - Other $0 -$1,350
127 Notes, Loans, & Mortgages Receivable - Current $1,597
126 Accounts Receivable - Tenants $11,168
126.1 Allowance for Doubtful Accounts -Tenants -$10,338
124 Accounts Receivable - Other Government $109,479
125 Accounts Receivable - Miscellaneous
121 Accounts Receivable - PHA Projects
122 Accounts Receivable - HUD Other Projects $3,035,819
100 Total Cash $202,932 $0 $397,688
114 Cash - Tenant Security Deposits $2,800
115 Cash - Restricted for Payment of Current Liabilities
112 Cash - Restricted - Modernization and Development
113 Cash - Other Restricted
Project Total
93.268
Immunization
Grants
14.218 Community
Development Block
Grants/Entitlement
Grants
111 Cash - Unrestricted $200,132 $397,688
Metropolitan Development & Housing Agency (TN005)
NASHVILLE, TN
Entity Wide Revenue and Expense Summary
Submission Type: Audited/Single Audit Fiscal Year End: 09/30/2023
-65-
16.817 Byrne
Criminal Justice
Innovation Program
14.EFA FSS
Escrow Forfeiture
Account
81.042
Weatherization
Assistance for Low-
Income Persons
14.256
Neighborhood
Stabilization
Program (Recovery
Act Funded)
6.1 Component Unit
- Discretely
Presented
6.2 Component Unit
- Blended
14.896 PIH Family
Self-Sufficiency
Program
14.895 Jobs-Plus
Pilot Initiative
1 Business
Activities
2 State/Local
14.267 Continuum
of Care Program
8 Other Federal
Program 1
21.027 Coronavirus
State and Local
Fiscal Recovery
Funds
14.195 Section 8
Housing Assistance
Payments
Program_Special
Allocations
93.568 Low-Income
Home Energy
Assistance
14.879 Mainstream
Vouchers
14.239 HOME
Investment
Partnerships
Program
14.871 Housing
Choice Vouchers
14.231 Emergency
Shelter Grants
Program
$4,741,499 $3,578,604 $4,869,795 $13,445,100
$306,700 $168,186 $124,918 $515,966
$0 $0 $0 $0 $5,048,199 $3,746,790 $0 $0 $4,994,713 $0 $0 $0 $0 $13,961,066 $0 $0 $0 $0 $0
$2,104,880 $2,408,888 $341,818 $2,317,539 $29,804,406 $2,223,956 $3,237,491 $68,541,078 $1,595,007
$201,117
$62,033 $368,327 $1,015,336 $369 $621,363 $205,664
$11,856 $14,690 $62,580 $683,089 $129,621 $363,028 $141,156
$51,501
$153,680 $57,217 $15,402,955 $1,604,309 $426 $3,601,056 $19,412,045 $250 $1,005,012 $4,175 $219,565 $88,007
$790,007
$12,239 $15,040 $44 $1,703,224
$62,033 $153,680 $368,327 $69,073 $22,570,724 $7,834,806 $342,244 $0 $9,293,898 $20,557,046 $2,317,789 $369 $822,480 $47,626,743 $205,664 $2,228,131 $3,457,056 $68,821,742 $1,595,007
$40,948 $107,105 $1,006,084 $389,810 $60,541 $269,884 $576,423 $120,121 $16,533 $2,894,182 $10,998 $204,650 $2,834,151 $117,711
$45,850 $1,200 $7,150
$410,507 $73,354 $217,883 $32,576 $3,292,559 $74,193 $951,160 $53,395
$30,935 $5,665 $267,565 $564,142
$4,397 $13,966 $25,480 $37,000 $153 $4,342 $339 $1,756
$12,142 $35,377 $158,178 $20,173 $95,379 $180,733 $24,297 $5,096 $987,179 $1,901 $63,049 $1,084,767 $33,850
$34,717 $400,360 $266,755 $83,414 $1,195 $40,464 $1,355,551 $10,000 $682,113 $617
$16,875 $69,526 $67,586 $60,676 $44,763
$1,523 $1,397 $1,771 $772 $7,762 $6,331 $34,042 $344
$139,503 $63,848 $25,129 $84,274
$53,090 $0 $178,722 $0 $1,410,841 $1,334,273 $80,714 $0 $765,176 $1,152,590 $225,220 $153 $25,971 $8,864,382 $22,899 $0 $367,021 $6,279,412 $207,673
$412,499 $31,938 $205,697
$166,386 $28,342 $180,324 $143,349 $2,477
$40,500
$9,
324 $74,389 $49,
741
$4,000 $29,516 $13,637 $2,500 $120,361 $70,605
$0 $0 $0 $0 $170,386 $67,182 $254,713 $0 $13,637 $2,500 $0 $0 $0 $353,951 $0 $0 $0 $73,082 $0
$316,242 $214,496 $304,569 $7,289 $4,188,968 $150
$273,307 $388,937 $112,145 $49,867 $4,990,437 $8,500
$10,963 $6,637 $424 $676,126 $266
$0 $0 $0 $0 $600,512 $610,070 $0 $0 $417,138 $57,156 $0 $0 $0 $9,855,531 $0 $0 $0 $8,916 $0
$458,381 $232,987 $5,716,310
$243,678 $179,439 $90 $3,763,870 $4,176
$184,469 $1,080,272 $2,128,349 $1,800,169 $29,388 $12,500 $9,332,661 $182,765 $23,923
$165,913 $15,449 $2,065,081
$0 $0 $184,469 $0 $1,080,272 $2,996,321 $0 $0 $2,228,044 $29,478 $12,500 $0 $0 $20,877,922 $182,765 $0 $0 $28,099 $0
$173,076 $332,860 $63,875 $20,905 $2,070,913
$16,464 $2,410
$0 $0 $0 $0 $173,076 $332,860 $0 $0 $80,339 $20,905 $0 $0 $0 $2,070,913 $0 $0 $0 $2,410 $0
$18,947 $579,511 $120,479 $56,543 $102,048 $795,322 $236
$3,784 $40,008 $22,747 $21,641 $220,859 $19,290
$764 $1,223 $10,024 $2,551 $6,096 $7,402 $732 $102 $96,495 $2,141 $28,716 $1,411
$146,687 $1,479 $30,575
$764 $0 $1,223 $22,731 $726,198 $171,990 $2,551 $0 $85,386 $131,091 $732 $0 $102 $1,143,251 $0 $0 $2,141 $48,242 $1,411
$8,000 $34 $198,017 $1,489,902 $7,461,170 $6,000 $345,359 $38 $3,101,538 $64,380 $1,386,241
$179 $3,913 -$21,251 $25,201 $4,266 $8,251 $16,119 -$369 $216 $2,200 $117,627 -$4,828 $101,970 -$318
$40,250 $34,194 $22,238 $108 $259,146
$487,571 $297,951 $228,401 $1,484,059
$8,179 $0 $3,913 $34 $506,570 $555,363 $4,266 $0 $1,748,792 $7,477,397 $5,631 $216 $347,559 $1,860,870 $0 $0 $3,096,710 $166,350 $1,385,923
$62,070 $1,514,326 $1,576,277 $1,110,447 $1,944,055 $38,073
$0 $0 $0 $62,070 $1,514,326 $1,576,277 $0 $0 $1,110,447 $1,944,055 $0 $0 $0 $38,073 $0 $0 $0 $0 $0
$62,033 $0 $368,327 $84,835 $6,594,680 $7,676,274 $342,244 $0 $6,654,656 $10,815,172 $244,083 $369 $373,632 $45,064,893 $205,664 $0 $3,465,872 $6,606,511 $1,595,007
$0 $153,680 $0 -$15,762 $15,976,044 $158,532 $0 $0 $2,639,242 $9,741,874 $2,073,706 $0 $448,848 $2,561,850 $0 $2,228,131 -$8,816 $62,215,231 $0
97000 Excess of Operating Revenue over Operating Expenses -$97,967 $0 $3,621,937
96900 Total Operating Expenses $291,027 $295,157 $11,234,262
96730 Amortization of Bond Issue Costs
96700 Total Interest Expense and Amortization Cost $117,750 $0 $0
96710 Interest of Mortgage (or Bonds) Payable
96720 Interest on Notes Payable (Short and Long Term) $117,750
96000 Total Other General Expenses $8,256 $13,859 $8,514,688
96600 Bad debt - Other
96800 Severance Expense
96400 Bad debt - Tenant Rents $4,374
96500 Bad debt - Mortgages
96210 Compensated Absences $2,154 $2,951 $14,356
96300 Payments in Lieu of Taxes $1,728
96200 Other General Expenses $10,908 $8,500,332
96140 All Other Insurance $11,680
96100 Total insurance Premiums $10,810 $684 $12,965
96120 Liability Insurance $1,490 $74
96130 Workmen's Compensation $81 $684 $751
96110 Property Insurance $9,239 $460
95500 Employee Benefit Contributions - Protective Services
95000 Total Protective Services $7,265 $0 $0
95200 Protective Services - Other Contract Costs $7,265
95300 Protective Services - Other
95100 Protective Services - Labor
94500 Employee Benefit Contributions - Ordinary Maintenance
94000 Total Maintenance $24,550 $0 $702,906
94200 Ordinary Maintenance and Operations - Materials and Other $2,595 $5,859
94300 Ordinary Maintenance and Operations Contracts $21,955 $697,047
94100 Ordinary Maintenance and Operations - Labor
93800 Other Utilities Expense
93000 Total Utilities
$98,022 $0 $1,502
936
00 Sewer
937
00 Employee Benefit Contributions - Utilities
93400 Fuel
93500 Labor
93200 Electricity $64,825
93300 Gas
93100 Water $33,197 $1,502
92400 Tenant Services - Other $1,800
92500 Total Tenant Services $0 $1,800 $0
92200 Relocation Costs
92300 Employee Benefit Contributions - Tenant Services
92000 Asset Management Fee
92100 Tenant Services - Salaries
91000 Total Operating - Administrative $24,374 $278,814 $2,002,201
91810 Allocated Overhead $0
91900 Other $0 $21,439 $231,234
91700 Legal Expense $367
91800 Travel $0 $1,417 $360
91500 Employee Benefit contributions - Administrative $3,986 $66,166 $332,310
91600 Office Expenses $2,401 $1,505
91310 Book-keeping Fee $1,500
91400 Advertising and Marketing $30,006
91200 Auditing Fees
91300 Management Fee $4,745 $430,849
91100 Administrative Salaries $11,375 $188,287 $977,442
72000 Investment Income - Restricted
70000 Total Revenue $193,060 $295,157 $14,856,199
71500 Other Revenue $250 $173,559
71600 Gain or Loss on Sale of Capital Assets
71310 Cost of Sale of Assets
71400 Fraud Recovery
71200 Mortgage Interest Income
71300 Proceeds from Disposition of Assets Held for Sale
70800 Other Government Grants $294,907
71100 Investment Income - Unrestricted $913 $5,770
70700 Total Fee Revenue
70740 Front Line Service Fee
70750 Other Fees
70720 Asset Management Fee
70730 Book Keeping Fee
70610 Capital Grants
70710 Management Fee
70600 HUD PHA Operating Grants $117,277 $14,676,870
70400 Tenant Revenue - Other $1,443
70500 Total Tenant Revenue $74,870 $0 $0
Project Total
93.268
Immunization
Grants
14.218 Community
Development Block
Grants/Entitlement
Grants
70300 Net Tenant Rental Revenue $73,427
Metropolitan Development & Housing Agency (TN005)
NASHVILLE, TN
Entity Wide Revenue and Expense Summary (continued)
Submission Type: Audited/Single Audit Fiscal Year End: 09/30/2023
-66-
16.817 Byrne
Criminal Justice
Innovation Program
14.EFA FSS
Escrow Forfeiture
Account
81.042
Weatherization
Assistance for Low-
Income Persons
14.256
Neighborhood
Stabilization
Program (Recovery
Act Funded)
6.1 Component Unit
- Discretely
Presented
6.2 Component Unit
- Blended
14.896 PIH Family
Self-Sufficiency
Program
14.895 Jobs-Plus
Pilot Initiative
1 Business
Activities
2 State/Local
14.267 Continuum
of Care Program
8 Other Federal
Program 1
21.027 Coronavirus
State and Local
Fiscal Recovery
Funds
14.195 Section 8
Housing Assistance
Payments
Program_Special
Allocations
93.568 Low-Income
Home Energy
Assistance
14.879 Mainstream
Vouchers
14.239 HOME
Investment
Partnerships
Program
14.871 Housing
Choice Vouchers
14.231 Emergency
Shelter Grants
Program
Project Total
93.268
Immunization
Grants
14.218 Community
Development Block
Grants/Entitlement
Grants
$796,730
$1,976,941 $1,887,420 $62,281,745
$187,998 $4,472,210 $2,968,632 $741,649 $1,317,510 $7,354,788 $15,641 $26,272
$62,033 $0 $368,327 $272,833 $11,066,890 $10,644,906 $342,244 $0 $8,193,035 $12,132,682 $2,221,024 $369 $373,632 $52,419,681 $205,664 $1,887,420 $3,481,513 $68,914,528 $1,595,007
$106,252
$369,996 $901,026 $3,882,890 $247,845 $356,110
-$8,245,424 -$285,702 -$97,984 -$300,127 -$245,037 -$211,315
$0 $0 $0 $369,996 $106,252 $901,026 $0 $0 -$4,362,534 -$285,702 -$97,984 $0 -$300,127 $2,808 $0 -$211,315 $0 $356,110 $0
$0 $153,680 $0 $166,236 $11,610,086 -$1,909,074 $0 $0 -$3,261,671 $8,138,662 -$1,219 $0 $148,721 -$4,790,130 $0 $129,396 -$24,457 $263,324 $0
$0 $0 $0 $228,359 $827,850 $897,950 $0 $0 $1,961,344 $1,071,418 $0 $0 $0 $298,743 $0 $0 $0 $0 $0
$0 $71,368 $0 $6,011,361 $46,448,998 $22,436,175 $0 $0 $119,122,153 $81,045,002 $1,219 $0 $52,396 $169,519,962 $0 $26,548 $6,022,015 $3,099,290 $0
$0 $0 $0 $0
$3,300,612
$62,002
8476 7044 4656 2544 61692 2964 86218
7918 6661 4258 2392 53513 2374 75219
13510 CFFP Debt Service Payments $0
13901 Replacement Housing Factor Funds $0
11650 Leasehold Improvements Purchases $0
11660 Infrastructure Purchases $0
11630 Furniture & Equipment - Dwelling Purchases $0
11640 Furniture & Equipment - Administrative Purchases $0
11610 Land Purchases $0
11620 Building Purchases $0
11210 Number of Unit Months Leased 300
11270 Excess Cash $41,855
11180 Housing Assistance Payments Equity
11190 Unit Months Available 300
11100 Changes in Allowance for Doubtful Accounts - Other
11170 Administrative Fee Equity
11080 Changes in Special Term/Severance Benefits Liability
11090 Changes in Allowance for Doubtful Accounts - Dwelling Rents
11060 Changes in Contingent Liability Balance
11070 Changes in Unrecognized Pension Transition Liability
11040 Prior Period Adjustments, Equity Transfers and Correction of Errors
11050 Changes in Compensated Absence Balance
11020 Required Annual Debt Principal Payments $119,333 $0 $0
11030 Beginning Equity $5,691,354 $0 $3,078,924
10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses $12,395 $0 -$26,745
10100 Total Other financing Sources (Uses) $368,000 $0 -$3,577,603
10093 Transfers between Program and Project - In $368,000 $48,000
10094 Transfers between Project and Program - Out -$3,625,603
10091 Inter Project Excess Cash Transfer In
10092 Inter Project Excess Cash Transfer Out
10070 Extraordinary Items, Net Gain/Loss
10080 Special Items (Net Gain/Loss)
10050 Proceeds from Notes, Loans and Bonds
10060 Proceeds from Property Sales
10030 Operating Transfers from/to Primary Government
10040 Operating Transfers from/to Component Unit
10010 Operating Transfer In
10020 Operating transfer Out
90000 Total Expenses $548,665 $295,157 $11,305,341
97700 Debt Principal Payment - Governmental Funds
97800 Dwelling Units Rent Expense
97500 Fraud Losses
97600 Capital Outlays - Governmental Funds
97350 HAP Portability-In
97400 Depreciation Expense $257,638 $71,079
97200 Casualty Losses - Non-capitalized
97300 Housing Assistance Payments
97100 Extraordinary Maintenance
Metropolitan Development & Housing Agency (TN005)
NASHVILLE, TN
Project Balance Sheet Summary
Submission Type: Audited/Single Audit Fiscal Year End: 09/30/2023
-67-
TN005000002 TN005000004 TN005000007 TN005000008 TN005000009 TN005000010 TN005000011 TN005000012 TN005000013 TN005000014 TN005000016 TN005000017 TN005000018 OTHER PROJ Total
$200,132 $200,132
$2,800 $2,800
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $202,932 $0 $202,932
$11,168 $11,168
-$10,338 -$10,338
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $830 $0 $830
$709 $709
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $204,471 $0 $204,471
$1,579,756 $1,579,756
$7,532,185 $7,532,185
$55,301 $55,301
-$461,602 -$461,602
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,705,640 $0 $8,705,640
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,705,640 $0 $8,705,640
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,910,111 $0 $8,910,111
$1,794 $1,794
$706 $706
$2,800 $2,800
$830 $830
$122,000 $122,000
$9,525 $9,525
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $137,655 $0 $137,655
$3,067,259 $3,067,259
$1,448 $1,448
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,068,707 $0 $3,068,707
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,206,362 $0 $3,206,362
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,516,381 $5,516,381
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $187,368 $0 $187,368
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,703,749 $0 $5,703,749
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,910,111 $0 $8,910,111
600 Total Liabilities, Deferred Inflows of Resources and Equity -
$0 $0 $0 $0
513 Total Equity - Net Assets / Position
$0 $0 $0 $0
511.4 Restricted Net Position
$0 $0 $0 $0
512.4 Unrestricted Net Position
$0 $0 $0 $0
508.4 Net Investment in Capital Assets
$0 $0 $0
400 Deferred Inflow of Resources
300 Total Liabilities
$0 $0 $0 $0
357 Accrued Pension and OPEB Liabilities
350 Total Non-Current Liabilities
$0 $0 $0 $0
355 Loan Liability - Non Current
356 FASB 5 Liabilities
353 Non-current Liabilities - Other
354 Accrued Compensated Absences - Non Current
351 Long-term Debt, Net of Current - Capital Projects/Mortgage
352 Long-term Debt, Net of Current - Operating Borrowings
310 Total Current Liabilities
$0 $0 $0 $0
347 Inter Program - Due To
348 Loan Liability - Current
345 Other Current Liabilities
346 Accrued Liabilities - Other
343 Current Portion of Long-term Debt - Capital
344 Current Portion of Long-term Debt - Operating Borrowings
341 Tenant Security Deposits
342 Unearned Revenue
332 Account Payable - PHA Projects
333 Accounts Payable - Other Government
325 Accrued Interest Payable
331 Accounts Payable - HUD PHA Programs
322 Accrued Compensated Absences - Current Portion
324 Accrued Contingency Liability
313 Accounts Payable >90 Days Past Due
321 Accrued Wage/Payroll Taxes Payable
311 Bank Overdraft
312 Accounts Payable <= 90 Days
290 Total Assets and Deferred Outflow of Resources
$0 $0 $0 $0
200 Deferred Outflow of Resources
180 Total Non-Current Assets
$0 $0 $0 $0
174 Other Assets
176 Investments in Joint Ventures
172 Notes, Loans, & Mortgages Receivable - Non Current - Past
173 Grants Receivable - Non Current
171 Notes, Loans and Mortgages Receivable - Non-Current
168 Infrastructure
160 Total Capital Assets, Net of Accumulated Depreciation
$0 $0 $0 $0
166 Accumulated Depreciation
167 Construction in Progress
164 Furniture, Equipment & Machinery - Administration
165 Leasehold Improvements
162 Buildings
163 Furniture, Equipment & Machinery - Dwellings
161 Land
145 Assets Held for Sale
150 Total Current Assets
$0 $0 $0 $0
143.1 Allowance for Obsolete Inventories
144 Inter Program Due From
142 Prepaid Expenses and Other Assets
143 Inventories
132 Investments - Restricted
135 Investments - Restricted for Payment of Current Liability
131 Investments - Unrestricted
129 Accrued Interest Receivable
120 Total Receivables, Net of Allowances for Doubtful Accounts
$0 $0 $0 $0
128 Fraud Recovery
128.1 Allowance for Doubtful Accounts - Fraud
126.2 Allowance for Doubtful Accounts - Other
127 Notes, Loans, & Mortgages Receivable - Current
126 Accounts Receivable - Tenants
126.1 Allowance for Doubtful Accounts -Tenants
124 Accounts Receivable - Other Government
125 Accounts Receivable - Miscellaneous
121 Accounts Receivable - PHA Projects
122 Accounts Receivable - HUD Other Projects
100 Total Cash
$0 $0 $0 $0
114 Cash - Tenant Security Deposits
115 Cash - Restricted for Payment of Current Liabilities
112 Cash - Restricted - Modernization and Development
113 Cash - Other Restricted
TN005000001 TN005000003 TN005000005 TN005000006
111 Cash - Unrestricted
Metropolitan Development & Housing Agency (TN005)
NASHVILLE, TN
Project Revenue and Expense Summary
Submission Type: Audited/Single Audit Fiscal Year End: 09/30/2023
-68-
TN005000002 TN005000004 TN005000007 TN005000008 TN005000009 TN005000010 TN005000011 TN005000012 TN005000013 TN005000014 TN005000016 TN005000017 TN005000018 OTHER PROJ Total
$73,427 $73,427
$1,443 $1,443
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $74,870 $0 $74,870
$117,277 $117,277
$913 $913
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $193,060 $0 $193,060
$11,375 $11,375
$4,745 $4,745
$1,500 $1,500
$3,986 $3,986
$2,401 $2,401
$367 $367
$0 $0
$0 $0
$0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,374 $0 $24,374
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$33,197 $33,197
$64,825 $64,825
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $98,022 $0 $98,022
93800 Other Utilities Expense
93000 Total Utilities
$0 $0 $0 $0
93600 Sewer
93700 Employee Benefit Contributions - Utilities
93400 Fuel
93500 Labor
93200 Electricity
93300 Gas
93100 Water
92400 Tenant Services - Other
92500 Total Tenant Services
$0 $0 $0 $0
92200 Relocation Costs
92300 Employee Benefit Contributions - Tenant Services
92000 Asset Management Fee
92100 Tenant Services - Salaries
91000 Total Operating - Administrative
$0 $0 $0 $0
91810 Allocated Overhead
91900 Other
91700 Legal Expense
91800 Travel
91500 Employee Benefit contributions - Administrative
91600 Office Expenses
91310 Book-keeping Fee
91400 Advertising and Marketing
91200 Auditing Fees
91300 Management Fee
91100 Administrative Salaries
72000 Investment Income - Restricted
70000 Total Revenue
$0 $0 $0 $0
71500 Other Revenue
71600 Gain or Loss on Sale of Capital Assets
71310 Cost of Sale of Assets
71400 Fraud Recovery
71200 Mortgage Interest Income
71300 Proceeds from Disposition of Assets Held for Sale
70800 Other Government Grants
71100 Investment Income - Unrestricted
70700 Total Fee Revenue
70740 Front Line Service Fee
70750 Other Fees
70720 Asset Management Fee
70730 Book Keeping Fee
70610 Capital Grants
70710 Management Fee
70600 HUD PHA Operating Grants
70400 Tenant Revenue - Other
70500 Total Tenant Revenue
$0 $0 $0 $0
TN005000001 TN005000003 TN005000005 TN005000006
70300 Net Tenant Rental Revenue
Metropolitan Development & Housing Agency (TN005)
NASHVILLE, TN
Project Revenue and Expense Summary (continued)
Submission Type: Audited/Single Audit Fiscal Year End: 09/30/2023
-69-
TN005000002 TN005000004 TN005000007 TN005000008 TN005000009 TN005000010 TN005000011 TN005000012 TN005000013 TN005000014 TN005000016 TN005000017 TN005000018 OTHER PROJ Total
TN005000001 TN005000003 TN005000005 TN005000006
$2,595 $2,595
$21,955 $21,955
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,550 $0 $24,550
$7,265 $7,265
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,265 $0 $7,265
$9,239 $9,239
$1,490 $1,490
$81 $81
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,810 $0 $10,810
$2,154 $2,154
$1,728 $1,728
$4,374 $4,374
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,256 $0 $8,256
$117,750 $117,750
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $117,750 $0 $117,750
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $291,027 $0 $291,027
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 -$97,967 $0 -$97,967
$257,638 $257,638
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $548,665 $0 $548,665
$368,000 $368,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $368,000 $0 $368,000
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,395 $0 $12,395
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $119,333 $0 $119,333
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,691,354 $0 $5,691,354
0 0 00000000003000300
0 0 00000000003000300
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $41,855 $0 $41,855
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
13510 CFFP Debt Service Payments
$0 $0 $0 $0
13901 Replacement Housing Factor Funds
$0 $0 $0 $0
11650 Leasehold Improvements Purchases
$0 $0 $0 $0
11660 Infrastructure Purchases
$0 $0 $0 $0
11630 Furniture & Equipment - Dwelling Purchases
$0 $0 $0 $0
11640 Furniture & Equipment - Administrative Purchases
$0 $0 $0 $0
11610 Land Purchases
$0 $0 $0 $0
11620 Building Purchases
$0 $0 $0 $0
11210 Number of Unit Months Leased
0000
11270 Excess Cash
$0 $0 $0 $0
11180 Housing Assistance Payments Equity
11190 Unit Months Available
0000
11100 Changes in Allowance for Doubtful Accounts - Other
11170 Administrative Fee Equity
11080 Changes in Special Term/Severance Benefits Liability
11090 Changes in Allowance for Doubtful Accounts - Dwelling
11060 Changes in Contingent Liability Balance
11070 Changes in Unrecognized Pension Transition Liability
11040 Prior Period Adjustments, Equity Transfers and
11050 Changes in Compensated Absence Balance
11020 Required Annual Debt Principal Payments
$0 $0 $0 $0
11030 Beginning Equity
$0 $0 $0 $0
10000 Excess (Deficiency) of Total Revenue Over (Under) Total
$0 $0 $0 $0
10100 Total Other financing Sources (Uses)
$0 $0 $0 $0
10093 Transfers between Program and Project - In
10094 Transfers between Project and Program - Out
10091 Inter Project Excess Cash Transfer In
10092 Inter Project Excess Cash Transfer Out
10070 Extraordinary Items, Net Gain/Loss
10080 Special Items (Net Gain/Loss)
10050 Proceeds from Notes, Loans and Bonds
10060 Proceeds from Property Sales
10030 Operating Transfers from/to Primary Government
10040 Operating Transfers from/to Component Unit
10010 Operating Transfer In
10020 Operating transfer Out
90000 Total Expenses
$0 $0 $0 $0
97700 Debt Principal Payment - Governmental Funds
97800 Dwelling Units Rent Expense
97500 Fraud Losses
97600 Capital Outlays - Governmental Funds
97350 HAP Portability-In
97400 Depreciation Expense
97200 Casualty Losses - Non-capitalized
97300 Housing Assistance Payments
97100 Extraordinary Maintenance
97000 Excess of Operating Revenue over Operating Expenses
$0 $0 $0 $0
96900 Total Operating Expenses
$0 $0 $0 $0
96730 Amortization of Bond Issue Costs
96700 Total Interest Expense and Amortization Cost
$0 $0 $0 $0
96710 Interest of Mortgage (or Bonds) Payable
96720 Interest on Notes Payable (Short and Long Term)
96000 Total Other General Expenses
$0 $0 $0 $0
96600 Bad debt - Other
96800 Severance Expense
96400 Bad debt - Tenant Rents
96500 Bad debt - Mortgages
96210 Compensated Absences
96300 Payments in Lieu of Taxes
96200 Other General Expenses
96140 All Other Insurance
96100 Total insurance Premiums
$0 $0 $0 $0
96120 Liability Insurance
96130 Workmen's Compensation
96110 Property Insurance
95500 Employee Benefit Contributions - Protective Services
95000 Total Protective Services
$0 $0 $0 $0
95200 Protective Services - Other Contract Costs
95300 Protective Services - Other
95100 Protective Services - Labor
94500 Employee Benefit Contributions - Ordinary Maintenance
94000 Total Maintenance
$0 $0 $0 $0
94200 Ordinary Maintenance and Operations - Materials and
94300 Ordinary Maintenance and Operations Contracts
94100 Ordinary Maintenance and Operations - Labor
