Notes to SEFA
The Corporation has received Section 202 capital advances from the U.S. Department of Housing and Urban Development’s Supportive Housing for the Elderly program (Assistance Listing No. 14.157). Under the terms of the capital advance agreements, the Corporation must continue to operate the project for the specified purpose for a period of 40 years. Failure to operate the project in accordance with the capital advance agreement would result in the Corporation being required to repay HUD the entire capital advance, plus interest, since the date of the first advance. The Corporation has a note payable to the Housing Trust Fund Corporation in the amount of $186,173. The note does not bear interest and does not require any principal payments until November 2055, when the entire amount is due. The Corporation must keep the related housing available for a period of 50 years for low-income elderly individuals. Failure to keep the related housing available for these individuals would result in the Corporation being required to repay the entire loan balance at the time of default. The note is secured by the related property and building.