Notes to SEFA
NOTE 2: SECTION 108 LOAN GUARANTEE PROGRAM On October 29, 2015, the City entered into a Contract for Loan Guarantee Assistance under Section 108 with the U.S. Department of Housing and Urban Development in the amount of $6,000,000 for the Robinson Park Project. On March 28, 2019 the loan was refinanced at $5,100,000 to lock in permanent fixed interest rates. Principal is payable in annual installments of $300,000 commencing on August 1, 2019 and ending August 1, 2035. Interest rate is fixed between 2.54%-3.635%. Interest payment is paid semi-annually from the effective date of March 28, 2019. The balance outstanding as of June 30, 2025, is $3,900,000.
The program costs listed below are administered directly by the City of Pasadena, and balances and transactions relating to these programs are included in the City’s basic financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The balance of loans outstanding at June 30, 2025, consists of: 14.238 HOME $15,799,514 and 14.871 Section 8 $50,000 for a total of $15,849,514 Federal loan programs reported on the Schedule of Expenditures of Federal Awards (SEFA) for the Community Development Block Grants/Entitlement Grants have been removed in the current year. In accordance with Uniform Guidance (2 CFR §200.502(b)–(d)), loan and loan guarantee programs are required to be reported on the SEFA only for the value of new loans made during the fiscal year and for prior year loan balances for which the federal government imposes continuing compliance requirements. Accordingly, these loan programs are not included on the SEFA for the current fiscal year as management has determined that there are no federally imposed continuing compliance requirements.