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6.1 B Redevelopment Agency of the City of Redwood City AT ��iE�,�r� Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 3. LOANS RECEIVABLE As of June 30, 2010, loans receivable consisted of the following: First Time Homebuyer Loan Program $ 246,435 City Cenkre Plaza Loans 1,675,833 First Time Homebuyer Silent Loan Program 797,260 Housing Rehabilitation Loans 189,413 First Community Housing Loans 2,427,000 Loans with For Profit Organizations 633,153 Total $ 5, 969,094 ', A. First Time Homebuyer Loan Program The Agency established a First Time Homebuyer Program during fiscal year 1995. Under the Program the Agency offers first time home buyers, who qualify as having low and moderate incomes, financial assistance in the purchase of a home within the City of Redwood City. These loans bear no interest and are secured by third deeds of trust on the property. No payments are due until five years after the date of purchase. At June 30, 2010 the Agency had loaned $246,435. Since these loans are not currently available for expenditure, fund balance has been reserved in this amount. B. City Centre Plaza Loans The Agency sold several parcels of land to the developers of the City Centre Plaza project for $1,700,000 in 1996 payable as discussed in Note 9C. The outstanding balance at June 30, 2010 was $1,675,833. C. First Time Homebuyer Silent Loan Program In 2000, the 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, 2010 the Agency had outstanding loans in the amount of $797,260. Since these loans are not currently available for expenditure, fund balances have been reserved in this amount. D. Housing Rehabilitation Loans The Agency has outstanding loans for housing rehabilitation in the amount of $189,413. Other funds allocated under this program provided grants for the removal of lead based paint hazards. E. First Community Housing Loan The Agency entered into an agreement with First Community Housing whereby $2,427,000 from the Redevelopment Agency Low and Moderate Housing Fund was loaned to First Community Housing for construction of the Villa Montgomery housing development at El Camino and Vera Avenue. The loan bears interest at 3% for 40 years. The loan will be repaid annually from 70% of the Projects net cash flow. 28