Habitat For Humanity International Inc

Programs: Construction costs: habitat missoula constructed one home during 2017, our 52nd. Construction costs include purchased and donated materials, purchased and donated professional services, and the cost of a site supervisor. Construction costs do not included donated labor for more than 400 volunteers working on site during the construction season. The offsetting revenue is from the sale of the home to a low-income family. Second mortgages, which represent the difference between the costs of homes and their fair market values at closing, are not included in the house sale revenue. As the second mortgages are contingent receivables, fas 5, #83 requires that the second mortgages are recorded only if and when they become collectible. The value of the "silent" mortgage was $45,968 at closing. If the partner familiy holds onto the home long enough, the silent mortgage will be forgiven.

other program service expenses of $270,558 and revenue of $9,267 are the program related expenses and revenue that are not included in the construction costs or mortgage discount expenses. These expenses are crucial for the mission and goals of the organization. See part ix for a breakdown of these expenses. The revenue is administrative income of $1,892, mortgage payment late fee of $493, interim family rents of $2,200, and miscellaneous refunds of $4,691. Administrative income is the result of the amortization of a small administrative fee charged to partner families, amortized over the life of their mortgage.

mortgage discount expense: our low-income partner families are able to afford our homes primarily because we charge no interest on our mortgages. As we are loaning money below the market rate, there is an economic cost to our organization. According to accounting principles board 21, an allowance is created by discounting the mortgages based upon the current market interest rate of similar mortgages at the time of closing, as determined by habitat international. The mortgage receivable discounts are amortized over the life of the mortgages. As both homes were sold to the montana board of housing, there is no mortgage discount expense recorded. The revenue of $46,801 is the amount of discount amortization on all of our mortgages for 2017.