Laserfiche WebLink
<br />Redevelopment Agency of the City of Redwood City <br />Notes to Basic Financial Statements, Continued <br />For the year ended June 30, 2006 <br /> <br />3. LOANS RECEIVABLE, Continued <br /> <br />A. First Time Homebuyer Loan Program <br /> <br />The Agency established a First Time Homebuyer Program during fiscal year 1995. Under the Program the <br />Agency offers first time home buyers, who qualify as having low and moderate incomes, financial <br />assistance in the purchase of a home within the City of Redwood City. These loans bear no interest and are <br />secured by third deeds of trust on the property. No payments are due until five years after the date of <br />purchase. At June 30, 2006 the Agency had loaned $261,094 to 13 buyers. Since these loans are not <br />currently available for expenditure, fund balance has been reserved in this amount. <br /> <br />B. City Centre Plaza Loans <br /> <br />The Agency sold several parcels of land to the developers of the City Centre Plaza project for $1,700,000 in <br />1996 payable as discussed in Note 9C. The outstanding balance at June 30, 2006 was $1,692,383. <br /> <br />C. First Time Homebuyer Silent Loan Program <br /> <br />In 2000, the Agency established a First Time Homebuyer Silent Loan Program. Loans are deferred for the <br />first 5 years, and then amortized at 4 % interest over the remaining 25 years. An Equity Participation <br />requirement shares appreciation based on the amount of the Agency's original loan amount. At June 30, <br />2006 the Agency loaned $2,171,600 to 22 homebuyers. The outstanding balance at June 30, 2006 was <br />$1,274,403. Since these loans are not currently available for expenditure, fund balances have been reserved <br />in this amount. <br /> <br />D. Housing Rehabilitation Loans <br /> <br />The Agency has two outstanding loans for housing rehabilitation in the amount of $138,584. Other funds <br />allocated under this program provided grants for the removal of lead based paint hazards. <br /> <br />E. First Community Housing Loan <br /> <br />In fiscal year 2005-2006 the Agency entered into an agreement with First Community Housing whereby <br />$1,927,000 from the Redevelopment Agency Low and Moderate Housing Fund was loaned to First <br />Community Housing for construction of the Villa Montgomery housing development at El Camino and <br />Vera Avenue. The loan bears interest at 3% for 40 years. The loan will be repaid annually from 70% of the <br />Projects net cash flow. <br /> <br />F. Loans with for Profit Organizations <br /> <br />In December 2003, the Agency loaned Hallmark Apartments LLP $150,000 for the repair and rehabilitation <br />of housing units. The loan is deferred for the first 30 years, and then amortized at 3% interest over the <br />remaining 25 years. <br /> <br />In July 2003, the Agency loaned MP Redwood Court Association $500,000 for the repair and rehabilitation <br />of housing units. The loan is non interest bearing and deferred for 55 years. <br /> <br />28 <br />