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6.1 B - Attachment No. 4 <br /> NOTE 3-LOANS RECEIVABLE(CONTINUED� <br /> I. First Community Housing Loan <br /> The City entered into an agreement with First Community Housing whereby $2,627,000 ($200,000 from <br /> Community Development Block Grant, $1,927,000 from Redevelopment Agency low and moderate <br /> housing fund, $500,000 pass-through from County of San Mateo) was loaned to First Community <br /> Housing for construction of the Villa Montgomery housing development at El Camino and Vera Avenue. <br /> The loan bears interest at 3%for 40 years. The loan will be repaid annually from 70%of the project's net <br /> cash flow. The outstanding balance of the loan at June 30,2009 was$2,627,000. <br /> J. Police Activities League Loan <br /> In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police <br /> Activities League(PAL),a separate,private,non-profit agency,entered into with Bay Area Bank to <br /> partially finance the construction of the new PAL community center at Taft School. The City Council <br /> and PAL agreed that one-half of the amount, or $750,000, will be paid back to the City by PAL over a <br /> period of 15 years. The outstanding balance of the loan at June 30,2009 was$357,143. <br /> K. Kainos Home and Training Center Loan <br /> In 1997/98,the City entered into an agreement with Kainos Home and Training Center whereby $57,500 <br /> from Community Development Block Grant was loaned to acquire property for Kainos Home and <br /> Training Center. The loan is deferred and payable upon the sale of the property, at which time the City <br /> would receive repayment of the loan plus any accrued equity based on the prorated City share. <br /> 42 <br />