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6.1.E. - Page 77 , <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2015 <br /> NOTE 3-LOANS RECEIVABLE(CONTINUED) <br /> A. Wyndham Place First Time Homebuyer Loan Program <br /> The City established a First Time Homebuyer Program during fiscal year 1995 on a specific development <br /> sponsored by the former Redevelopment Agency called Wyndham Place. The program currently <br /> involves the resale of Wyndham units where the City has First Right of Refusal. The City exercises its <br /> First Right of Refusal and markets the units to qualified buyers. <br /> A portion of the City's Shared Appreciation is used to assist the new buyer in the Resale Program. While <br /> the initial program in 1995 made 0% interest loans, current buyers in the Resale Program are assisted <br /> according to the needs of the borrower. Depending on the borrower's ability to secure private financing <br /> for a first mortgage,the City loan is underwritten based on the borrower's spendable income. <br /> These loans bear no interest and are secured by second deeds of trust on the property, and typically, no <br /> payments are due until five years after the date of purchase. As of June 30, 2015 the City has <br /> outstanding loans of$395,711 to eleven Wyndham Place buyers. <br /> B. City Centre Plaza Loans <br /> The former Redevelopment Agency sold several parcels of land to the developers of the City Centre <br /> Plaza project (a residential and commercial development) for $1,700,000 in 1996. The developers <br /> constructed City Center Plaza, which contains 81 affordable housing units, a childcare facility, residential <br /> and commercial parking, and 17,900 square feet of retail space. The promissory note from Mezes Court <br /> Associate in the amount of $1,445,000 is to be repaid through 2028 from surplus revenues generated <br /> by the housing project and accrued interest at 3%, with $371,076 due to the City's Low and Moderate <br /> Income Housing Asset Fund, and $1,073,924 due to the Successor Agency Private Purpose Trust Fund. <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, 2015 there were outstanding loans to four homebuyers totaling <br /> $300,756. <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 /> 2015 was $1,133,153. <br /> 48 <br />