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City of Redwood City 6.1.E. - Page 108 <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2015 <br /> NOTE 18—RELATED PARTY TRANSACTIONS <br /> In June 2000, the City's former Redevelopment Agency authorized a First Time Homebuyer Program <br /> targeted to City employees and school teachers from the Redwood City Elementary School District. <br /> Under the program, the Agency offered first time homebuyers financial assistance in the purchase of a <br /> home within the City of Redwood City. These loans bear no interest and are secured by third deeds of <br /> trust on the property. No payments are due until five years after the date of purchase. This loan <br /> program is extended to City employees who meet the criteria of the program. As of June 30, 2015, one <br /> employee had a loan due to the City in the amount of$34,664. <br /> NOTE 19—SUBSEQUENT EVENT <br /> On September 22, 2015, the State passed legislation SB107, which included new provisions for the <br /> dissolution of redevelopment agencies. The legislation includes an enforcement provision related to <br /> the repayment of amounts determined through the Due Diligence Review (DDR) process. The City is <br /> currently in litigation regarding $10.3 million in Housing Legal Aid Society funds being held by the City, <br /> which the State Department of Finance contends is not restricted for housing. As required by the new <br /> SB107 legislation, the City has agreed to remit the $10.3 million specified in the State's DDR <br /> determination while the City's pending litigation against the State regarding these funds is pursued. <br /> 79 <br />