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6.1 B Page 64 NOTE 3 - LOANS RECEIVABLE �CONTINUED) These loans bear no interest and are secured by second deeds of trust on the property, and typically, no payments are due until five years after the date of purchase. As of June 30, 2010 the Agency has outstanding loans of $246,435 to nine Wyndham Place buyers, while the City has loaned $329,246 from the HOME Investment Partnership Block Grant, Community Development Block Grant (CDBG), and Rental Rehabilitation Program (RRP) funds to seven Wyndham Place homebuyers. Since these loans are not currently available for expenditure, fund balance has been reserved in this amount. 8. City Centre Plaza Loans The Redevelopment Agency sold several parcels of land to the developers of the City Centre Plaza project (a residential and commercial development) for $1,700,000 in 1996. The developers constructed City Center Plaza, which contains 81 affordable housing units, a childcare facility, residential and commercial parking, and 17,900 square feet of retail space. The promissory note from Mezes Court Associate in the amount of $1,445,000 is to be repaid through 2028 from surplus revenues generated by the housing project and accrued interest at 3%. The promissory note from J.H.R. Trust in the amount of $255,000 is also due to begin making payments beginning in 2008 and continuing until 2028 and accrues interest at 3% as well. The outstanding balance at June 30, 2010 was $1,675,833. C. First Time Homebuyer Silent Loan Program In 2000, the 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, 2010 the Agency had outstanding loans to 10 homebuyers totaling $797,260. Since these loans are not currently available for expenditure, fund balance has been reserved in this ' amount. D. Loans with Non-profits and For Profit Organizations The City and Agency have loaned $500,000 to MP Redwood Court Associates and $650,000 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 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, 2010 was $1,133,153. E. Housing Rehabilitation Loans The City and Agency have outstanding loans for housing rehabilitation in the amount of $2,441,842. F. Shores Childcare Loan The City entered into an agreement with Shores Childcare, LLC whereby $3,200,000 was loaned to Shores Childcare, LLC for construction of a childcare facility on City-owned land in the Redwood Shores area. The term of the loan is 20 years maturing January 2023, with interest payable quarterly and calculated based on the quarterly rate of the State of California Local Agency Investment Fund. The outstanding balance of the loan at June 30, 2010 was $2,255,859. 41