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City of Redwood City
<br />Notes to the Basic Financial Statements (Continued)
<br />For the Year Ended June 30, 2025
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<br />86
<br />Note 3 – Loans Receivable (Continued)
<br />
<br />Housing Rehabilitation Loans (Continued)
<br />
<br />Mental Health Association of San Mateo County (MHA) Loan
<br />
<br />In July, 2013, the City entered into an agreement with MHA whereby $400,000 from Community Development Block
<br />Grant (CDBG) was loaned to assist with the acquisition of a vacant commercial property located at 105 5th Avenue in
<br />Redwood City. The loan is deferred for a term of 30 years at 0% interest. In 2016-2017, the City entered into a second
<br />agreement with MHA whereby an additional $200,000 from Community Development Block Grant (CDBG) was
<br />loaned for the property located at 105 5th Avenue in Redwood City. The loan is deferred for a term of 30 years at 0%
<br />interest. The outstanding balance of the loan at June 30, 2025 was $600,000.
<br />
<br />Mezes Court Association
<br />
<br />The City entered into an agreement with Mezes Court Associates on November 24, 2015 whereby $259,757 from
<br />Community Development Block Grant was loaned to acquire property at 950 Main Street for affordable rental housing
<br />as set forth in the loan agreement evidencing the loan. The loan accrues interest from December 1, 2016 at the rate of
<br />two percent (2%) annual, simple interest for 57 years. Principal and interest are payable in full on the date which 57
<br />years from the date of recordation of the Deed of Trust or the date of sale of property. The outstanding balance of the
<br />loan at June 30, 2025 was $169,377.
<br />
<br />Stafford Loan
<br />
<br />In June, 2017, the City entered into an agreement with HHDC whereby $1,577,750 from the City’s Affordable Housing
<br />Fund and HOME and CDBG grant programs were loaned to assist with the acquisition of real property located at 1512
<br />Stafford Street in Redwood City. The loan is deferred for a term of 55 years at 3% interest. The outstanding balance of
<br />the loan at June 30, 2025 was $1,577,750.
<br />
<br />Mid-Pen Mosaic Garden Loan
<br />
<br />In February 2018, the City entered into an agreement with MP Mosaic Garden Associates, L.P., whereby $1,100,000
<br />from the City’s Affordable Housing Fund to refinance property located at 3752-3770 Rolison Road in the City of
<br />Redwood City to be used to provide rental housing to Low Income Household, Very Low Income Households, and
<br />Extremely Low Income Households. The loan is deferred for a term of 55 years at 3% interest. The outstanding balance
<br />of the loan at June 30, 2025 was $1,084,472.
<br />
<br />Redwood Oaks Associates
<br />
<br />In May 2019, the City entered into an agreement with Redwood Oaks Associates LLP, whereby $500,000 from the
<br />City’s PHLA, PIP and LMIHF programs were loaned to assist with the rehabilitation of the Redwood Oaks Apartments
<br />at 330-340 Redwood Avenue. The loan term is 55 years and bears 0% interest. The outstanding balance of the loan at
<br />June 30, 2025 was $500,000.
<br />
<br />Stambaugh Apartments
<br />
<br />In June 2025, the City entered into an agreement with HEART-SV, whereby $1,199,999 from the City’s PHLA, PIP
<br />and LMIHF funding sources were loaned to assist with the development of the Stambaugh Apartments at 417
<br />Stambaugh Street. The loan term is 55 years and bears 3% interest. The loan is repayable from residual receipts as
<br />defined in the loan agreement, and is due 55 years from the issuance of the loan agreement, which was June 6, 2025, or
<br />if a transfer occurs to a person other than an affiliate. The outstanding balance of the loan at June 30, 2025 was
<br />$1,199,999.
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