Notes to SEFA
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
HOME Program loan proceeds were distributed to St. Paul Cottages, LLC in September 2011. The HOME program funds were used by St. Paul Cottages, LLC to construct two housing units. The Housing Authority of the City of St. Paul, Nebraska is the managing member of St. Paul Cottages, LLC and owns 0.01% of the LLC. The funds advanced are repayable to the U.S. Department of Housing & Urban Development (HUD) in the event that the Housing Authority or its sub-recipient (St. Paul Cottages, LLC) does not maintain the constructed property for low-income housing for 20 years. If the terms of the agreement are met, the funds are not required to be paid back to HUD. The Housing Authority's Parkside North project also has a deferred HOME Program loan. The combined outstanding HOME Program loan balance, including accrued interest, at June 30, 2025, was $489,636.
Rural rental housing loans were distributed to Housing Authority of the City of St. Paul, Nebraska. The funds were used to construct the rental units. The funds advanced are repayable to the U.S. Department of Agriculture – Rural Development. The balance of the loans at June 30, 2025, was $638,244.