Notes to SEFA
Total expenditures in the accompanying schedule of expenditures of federal awards for the SupportiveHousing for the Elderly (Section 202) Program (ALN 14.157) includes the total amount of new loansmade during fiscal year 2025, as well as the unpaid principal balance from loans originated in previousyears for which the Federal government imposed “continuing compliance requirements”. The programrequires a note and mortgage for a 40-year term for which the owner is not required to repay theprincipal or pay interest, and the note is forgiven at maturity, as long as the owner provides housingfor the designated class of people in accordance with applicable HUD requirements. As of June 30, 2025, the Section 202 program had loan balances subject to continuing compliancerequirements of $2,426,500. Uniform Guidance (2 CFR 200.502) requires this amount be included inthe “basis for determining Federal awards expended” on the current year schedule of expenditures offederal awards as the Federal government is at risk for the loans until the debt is repaid. The beginningbalance of the loans subject to continuing compliance requirements was also $2,426,500 on July 1,2024.
Total expenditures in the accompanying schedule of expenditures of federal awards for the HOMEInvestment Partnership (HOME) program (ALN 14.239) includes the total amount of new loans madeduring fiscal year 2025, as well as the unpaid principal balance from loans originated in previous yearsfor which the Federal government imposed “continuing compliance requirements” through 42 USC12701 12839 and 3535(d), with implementing regulations codified at 24 CFR part 92. As of June 30, 2025, the HOME program had loan balances subject to continuing compliancerequirements of $1,288,630. Uniform Guidance (2 CFR 200.502) requires this amount be included inthe “basis for determining Federal awards expended” on the current year schedule of expenditures offederal awards as the Federal government is at risk for the loans until the debt is repaid. The beginningbalance of the loans subject to continuing compliance requirements was $1,288,630 on July 1, 2024.