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6.1.D. - Page 78 <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2016 <br />NOTE 3 - LOANS RECEIVABLE <br />As of June 30, 2016, loans receivable consists of the following: <br />Private Purpose Trust <br />Government -Wide Fund <br />Wyndham Place First Time Homebuyer Loan Program 363,978 <br />City Centre Plaza Loans 371,076 1,073,924 <br />First Time Homebuyer Silent Loan Program 288,106 <br />Loans with Non -profits and For Profit Organizations 1,133,153 <br />Housing Rehabilitation Loans 1,474,513 <br />Shores Childcare Loan 1,205,478 <br />First Community Housing Loan 21627,000 <br />PALLoan 214,286 <br />Kainos Home and Training Center Loans 11493,222 <br />HIP Housing Development Corporation Loan 92,197 <br />Mental Health Association of San Mateo County Loan 400,000 <br />Mezes Court Association 259,757 <br />AI I owa nce for Uncollectible Loa ns (1,493,222) <br />Tota 1 8,429,544 1,073,924 <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 involves <br />the resale of Wyndham units where the City has First Right of Refusal. The City exercises its First Right of <br />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, 2016 the City has outstanding <br />loans of $363,978 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 Plaza <br />project (a residential and commercial development) for $1,700,000 in 1996. The developers constructed <br />City Center Plaza, which contains 81 affordable housing units, a childcare facility, residential and <br />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 by <br />the housing project and accrued interest at 3%, with $371,076 due to the City's Low and Moderate Income <br />Housing Asset Fund, and $1,073,924 due to the Successor Agency Private Purpose Trust Fund. <br />51 <br />