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6.1 B <br /> Page 65 <br /> NOTE 3 - LOANS RECEIVABLE (CONTINUED) <br /> G. Parking Fund Loan <br /> The capital outlay fund has a loan receivable in the amount of $1,300,000 from the parking fund. <br /> Additional details of this loan agreement are outlined in Note 7. <br /> H. First Community Housing Loan <br /> The City entered into an agreement with First Community Housing whereby $2,627,000 ($200,000 from <br /> Community Development Block Grant, $1,927,000 from Redevelopment Agency low and moderate <br /> housing fund, $500,000 pass-through from County of San Mateo) was loaned to First Community <br /> Housing for construction of the Villa Montgomery housing development at EI Camino and Vera Avenue. <br /> The loan bears interest at 3% for 40 years. The loan will be repaid annually from 70% of the project's net <br /> cash flow. The outstanding balance of the loan at June 30, 2010 was $2,627,000. <br /> l. Police Activities League Loan ' <br /> In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police <br /> Activities League (PAL), a separate, private, non-profit agency, entered into with Bay Area Bank to <br /> partially finance the construction of the new PAL community center at Taft School. The City Council and <br /> PAL agreed that one-half of the amount, or $750,000, will be paid back to the City by PAL over a period <br /> of 15 years. The outstanding balance of the loan at June 30, 2010 was $328,571. <br /> !. Kainos Home and Training Center Loan <br /> In 1997/98, the City entered into an agreement with Kainos Home and Training Center whereby $57,500 <br /> from Community Development Block Grant was loaned to acquire property for Kainos Home and <br /> Training Center. The loan is deferred and payable upon the sale of the property, at which time the City <br /> would receive repayment of the loan plus any accrued equity based on the prorated City share. <br /> 42 <br />