Notes to SEFA
Total expenditures in the accompanying schedule of expenditures of federal awards for the Supportive Housing for the Elderly (Section 202) Program (ALN 14.157) includes the total amount of new loans made during fiscal year 2026, as well as the unpaid principal balance from loans originated in previous years for which the Federal government imposed “continuing compliance requirements”. The program requires a note and mortgage for a 40-year term for which the owner is not required to repay the principal or pay interest, and the note is forgiven at maturity, as long as the owner provides housing for the designated class of people in accordance with applicable HUD requirements. As of June 30, 2026, the Section 202 program had loan balances subject to continuing compliance requirements of $2,426,500. Uniform Guidance (2 CFR 200.502) requires this amount be included in the “basis for determining Federal awards expended” on the current year schedule of expenditures of federal awards as the Federal government is at risk for the loans until the debt is repaid. The beginning balance of the loans subject to continuing compliance requirements was also $2,426,500 on July 1, 2025.
Total expenditures in the accompanying schedule of expenditures of federal awards for the HOME Investment Partnership (HOME) program (ALN 14.239) includes the total amount of new loans made during fiscal year 2026, as well as the unpaid principal balance from loans originated in previous years for which the Federal government imposed “continuing compliance requirements” through 42 USC 12701 12839 and 3535(d), with implementing regulations codified at 24 CFR part 92. As of June 30, 2026, the HOME program had loan balances subject to continuing compliance requirements of $1,288,630. Uniform Guidance (2 CFR 200.502) requires this amount be included in the “basis for determining Federal awards expended” on the current year schedule of expenditures of federal awards as the Federal government is at risk for the loans until the debt is repaid. The beginning balance of the loans subject to continuing compliance requirements was $1,288,630 on July 1, 2025.