AgdaPkt 2017-01-09 Closed and Joint

Browse Search

6.1.D. - Page 80 Notes to the Basic Financial Statements For the fiscal year ended June 30, 2016 NOTE 3 - LOANS RECEIVABLE (CONTINUED) 1. Kainos Home and Training Center Loan In 1989-90, the City entered into an agreement with Kainos Home and Training Center whereby $548,000 from Community Development Block Grant was loaned to acquire and rehabilitate property at 2555 Middlefield Road. In 2013-14, Kainos Home and Training Center sold 2555 Middlefield Road, and used the proceeds from the sale to purchase 2761 Fair Oaks Avenue. The current City loan is structured as a lien transfer of the original amount plus the shared equity of $437,722 from 2555 Middlefield Road to 2761 Fair Oaks Avenue, totaling $985,722. The loan bears no interest and is due and payable on March 29, 2039. In 1997-98, the City entered into an agreement with Kainos Home and Training Center whereby $57,500 from Community Development Block Grant was loaned to acquire property at 2033 Jefferson Avenue for Kainos Home and Training Center. The loan is deferred and payable upon the sale of the property, at which time the City would receive repayment of the loan plus any accrued equity based on the prorated City share. In 2012-13, the City entered into an agreement with Kainos Home and Training Center whereby $450,000 from HOME grant was loaned to acquire property located at 1033 Redwood Avenue for special needs housing. The loan is deferred for a term of 30 years at 0% interest. The loans to Kainos Home and Training Center are intended to be forgiven upon maturity, and therefore, an allowance for uncollectible loans has been set up in the amount of $1,493,222. J. HIP Housing Development Corporation (HHDC) Loan In March 2013, the City entered into an agreement with HHDC whereby $92,197 from HOME investment Partnership Act (HOME) funds were loaned to assist in the rehabilitation of a 12 unit apartment building located at 1157-1161 Willow Road in Menlo Park. The loan is deferred fora term of 30 years at 3% interest. The outstanding balance of the loan at June 30, 2016 was $92,197. K. Mental Health Association of San Mateo County (MHA) Loan In July, 2013, the City entered into an agreement with MHA whereby $400,000 from Community Development Block Grant (CDBG) was loaned to assist with the acquisition of a vacant commercial property located at 105 5t" Avenue in Redwood City. The loan is deferred for a term of 30 years at 0% interest. L. Mezes Court Association The City entered into an agreement with Mezes Court Associates on November 24, 2015 whereby $259,757 from Community Development Block Grant was loaned to acquire property at 950 Main Street for affordable rental housing as set forth in the loan agreement evidencing the loan. The loan accrues interest from December 1, 2016 at the rate of two percent (2%) annual, simple interest for 57 years. Principal and interest are payable in full on the date which 57 years from the date of recordation of the Deed of Trust or the date of sale of property. 53