Agda Pkt 2026.07.27 Joint SA PFA

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City of Redwood City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2025 84 Note 3 – Loans Receivable (Continued) First Time Homebuyer Silent Loan Program In 2000, the former Redevelopment Agency established a First Time Homebuyer Silent Loan Program. Loans are deferred for the first five years, and then amortized at 4% interest over the remaining 25 years. An Equity Participation requirement shares appreciation based on the amount of the Agency’s original loan amount. At June 30, 2025, there were outstanding loans to two homebuyers totaling $69,969. Loans with Non-profits and For Profit Organizations The City and former Redevelopment Agency loaned $500,000 to MP Redwood Court Associates, $500,000 to Redwood Oak Associates II LP, and $150,000 to Hallmark Apartments LLP. The MP Redwood Court Associates loan agreement was entered into in July 2003 for the repair and rehabilitation of housing units. The loan term is 55 years and bears 0% interest. The Redwood Oak Associates II LP loan agreement was entered into in May 2019 for the repair and rehabilitation of housing units. The loan term is 55 years and bears 0% interest. The loan to Hallmark Apartments LLP has interest deferred for the first 30 years after which it bears interest at 3% until the December 2058 maturity. The outstanding balance at June 30, 2025 was $1,133,153. Housing Rehabilitation Loans The City and former Redevelopment Agency have outstanding loans for housing rehabilitation in the amount of $674,724. 353 Main Project Loan The City entered into an agreement whereby $3,500,000 was loaned to 353 Main Street Apartments, LP, for the construction and permanent financing in accordance with the Financing Plan approved by the City. The outstanding balance of the loan at June 30, 2025 was $3,150,000. 612 Jefferson Loan The City entered into an agreement whereby $898,503 was loaned to Habitat for Humanity Greater San Francisco Inc. The proceeds were to be used for closing costs, project developments costs, and other related project costs as reasonably approved by the City. The outstanding balance of the loan at June 30, 2025 was $898,503. First Community Housing Loan The City entered into an agreement with First Community Housing whereby $2,627,000 ($200,000 from Community Development Block Grant, $1,927,000 from the former Redevelopment Agency low and moderate housing fund, $500,000 pass-through from County of San Mateo) was loaned to First Community Housing for construction of the Villa Montgomery housing development at El Camino and Vera Avenue. The portion of the loan attributable to the former Redevelopment Agency has been transferred to the City’s Low and Moderate Income Housing Asset fund. The loan bears interest at 3% for 40 years. The loan will be repaid annually from 70% of the project’s net cash flow. The outstanding balance of the loan at June 30, 2025 was $2,627,000. 7.C. - Page 116 of 269 135