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HOUSING FOR NEW HOPE, INC.
<br /> NOTES TO THE FINANCIAL STATEMENTS
<br /> AUGUST 31, 2011 AND 2010
<br /> Note 3-Grants Receivable
<br /> Grants receivable consist of the following at August 31:
<br /> 2011 2010
<br /> Housing and Urban Development $ 24,789 $ 66,770
<br /> Emergency Shelter Grant 14,990 10,746
<br /> Homeless Prevention Rapid Rehousing 63,119 88,512
<br /> County of Durham 82,548 80,653
<br /> City of Durham 100,031 -
<br /> Lincoln Community Health Center 10,022 -
<br /> Community Development Block Grant 3,020 3,156
<br /> Orange-Person-Chatham Area Program 21,677 9,720
<br /> 320,196 $ 259,457
<br /> Note 4-Property and Equipment
<br /> Property and equipment consist of the following at August 31:
<br /> 2011 2010
<br /> Buildings and improvements $ 3,429,726 $ 3,443,603
<br /> Vehicles 56,604 60,044
<br /> Furniture and equipment 151,434 151,434
<br /> Construction in Progress 332,151 18,031
<br /> Land 423,000 273,000
<br /> 4,392,915 3,946,112
<br /> Less:accumulated depreciation (534,927) (436,790)
<br /> $ 3,857,988 $ 3,509,322
<br /> Depreciation expense was$114,658 and$75,018 at August 31,2011 and 2010.
<br /> Note 6-Line of Credit
<br /> On January 17, 1996, the Organization obtained a $30,000 line of credit with a bank with an
<br /> interest rate of 1.5%over prime. This line of credit serves as checking overdraft protection. There
<br /> were no amounts outstanding on this line of credit at August 31,2011 and 2010.
<br /> On February 10, 2010, the Organization obtained a $70,000 line of credit with a bank with an
<br /> interest rate of LIBOR plus 2.6% with minimum interest at 4%. This line of credit serves as an
<br /> operational line of credit and had a balance of $40,000 and $0 at August 31, 2011 and 2010,
<br /> respectively.
<br /> On May 12, 2009, the Organization obtained a line of credit with a bank for construction of
<br /> Williams Square. The tine of credit had an Interest rate of 4.0% and had a balance of$200,000
<br /> at August 31, 2010. During the year ended August 31, 2011 construction was complete, and the
<br /> credit line was paid off and closed.
<br /> On February 9, 2011. the Organization obtained a line of credit with a bank for renovation of
<br /> apartments at Cole Mill Road. The line of credit had an Interest rate of LIBOR plus 2.6% with
<br /> minimum interest at 4%and had a balance of$129,406 at August 31, 2011.
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