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 85 Note 3 – Loans Receivable (Continued) Housing Rehabilitation Loans (Continued) Police Activities League Loan In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police Activities League (PAL), a separate, private, non-profit agency, entered into with Bay Area Bank to partially finance the construction of the new PAL community center at Taft School. The City Council and PAL agreed that one-half of the amount, or $750,000, will be paid back to the City by PAL over a period of 15 years. The outstanding balance of the loan at June 30, 2025 was $214,286 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 2010-11, the City entered into an agreement with Kainos Home and Training Center whereby $400,000 from the City’s HOME and CDBG grant programs were loaned to acquire property located at 1122 Valota Road in Redwood City for special needs housing. The loan is deferred for a term of 55 years at 0% interest. 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 $1,893,222. HIP Housing Development Corporation (HHDC) Loans 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 for a term of 30 years at 3% interest. The outstanding balance of the loan at June 30, 2025 was $92,197. In August 2015, the City entered into an agreement with HHDC whereby $103,600 from HOME investment Partnership Act (HOME) funds were loaned to assist in the rehabilitation of rental housing property located at 1505-1509 Oxford Street in Redwood City. The outstanding balance of the loan at June 30, 2025 was $103,600. In June 2016, the City entered into an agreement with HHDC whereby up to $98,597 from HOME funds were loaned to assist in the rehabilitation of rental housing property located at 606 Hilton Street and 508 Pine Street in Redwood City. The outstanding balance of the loan at June 30, 2025 was $46,415. 7.C. - Page 117 of 269 136