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6.G. - Pa <br />f Re f $i� <br />City <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2018 <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 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, 2018 the City has <br />outstanding loans of $329,685 to eleven Wyndham Place buyers. <br />B. 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, 2018, there were outstanding loans to four homebuyers totaling <br />$261,279. <br />C. 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 />2018 was $1,133,153. <br />D. Housing Rehabilitation Loans <br />The City and former Redevelopment Agency have outstanding loans for housing rehabilitation in the <br />amount of $1,026,575. <br />E. 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, 2018 was $906,345. <br />55 261 <br />