Notes to SEFA
The acquisition and construction of the Project was funded by capital advances from HUD under Section 202 of the Housing Act of 1959. As a condition for the capital advances, the Corporation entered into the Regulatory Agreement with HUD, and executed a mortgage note payable to HUD in the amount of $1,945,400. The mortgage note bears no interest and repayment is not required so long as the Project provides housing for very low-income elderly or disabled persons in accordance with Section 202. The mortgage note matures on October 10, 2033 and is secured by a Deed of Trust. Provided that the housing has remained available for occupancy by eligible families until maturity and that the mortgage note has not otherwise become due by reason of default, the mortgage note shall be deemed paid and discharged at maturity on October 10, 2033. In the event of default, the entire principal balance plus interest at an annual rate of 7.75% shall be payable upon demand by HUD. In addition to the Section 202 loan, the Corporation receives funding from the Project Rental Assistance Contract (PRAC). Total assistance received for PRAC for the year ended December 31, 2025 was $66,892, for total expenditures of $2,012,292.