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7.1.A. - Page 76 , <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2014 <br /> NOTE 3 - LOANS RECEIVABLE (CONTINUED) <br /> C. First Time Homebuyer Silent Loan Program <br /> In 2000, the former Redevelopment Agency established a First Time Homebuyer Silent Loan Program. <br /> Loans are deferred for the first five years, and then amortized at 4% interest over the remaining 25 <br /> years. An Equity Participation requirement shares appreciation based on the amount of the Agency's <br /> original loan amount. At June 30, 2014 there were outstanding loans to six homebuyers totaling <br /> $330,850. <br /> D. Loans with Non - profits and For Profit Organizations <br /> The City and former Redevelopment Agency loaned $500,000 to MP Redwood Court Associates and <br /> $650,000 to Hallmark Apartments LLP. The MP Redwood Court Associates loan agreement was entered <br /> into in July 2003 for the repair and rehabilitation of housing units. The loan term is 55 years and bears <br /> 0% interest. The loan to Hallmark Apartments LLP has interest deferred for the first 30 years after <br /> which it bears interest at 3% until the December 2058 maturity. The outstanding balance at June 30, <br /> 2014 was $1,133,153. <br /> E. Housing Rehabilitation Loans <br /> The City and former Redevelopment Agency have outstanding loans for housing rehabilitation in the <br /> amount of $1,612,292. <br /> F. Shores Childcare Loan <br /> The City entered into an agreement with Shores Childcare, LLC whereby $3,200,000 was loaned to <br /> Shores Childcare, LLC for construction of a childcare facility on City -owned land in the Redwood Shores <br /> area. The term of the loan is 20 years maturing January 2023, with interest payable quarterly and <br /> calculated based on the quarterly rate of the State of California Local Agency Investment Fund plus 250 <br /> basis points. The outstanding balance of the loan at June 30, 2014 was $1,534,452. <br /> G. First Community Housing Loan <br /> The City entered into an agreement with First Community Housing whereby $2,627,000 ($200,000 from <br /> Community Development Block Grant, $1,927,000 from the former Redevelopment Agency low and <br /> moderate housing fund, $500,000 pass- through from County of San Mateo) was loaned to First <br /> Community Housing for construction of the Villa Montgomery housing development at El Camino and <br /> Vera Avenue. The portion of the loan attributable to the former Redevelopment Agency has been <br /> transferred to the City's Low and Moderate Income Housing Asset fund. The loan bears interest at 3% <br /> for 40 years. The loan will be repaid annually from 70% of the project's net cash flow. The outstanding <br /> balance of the loan at June 30, 2014 was $2,627,000. <br /> H. Police Activities League Loan <br /> In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police <br /> Activities League (PAL), a separate, private, non - profit agency, entered into with Bay Area Bank to <br /> partially finance the construction of the new PAL community center at Taft School. The City Council and <br /> 48 <br />