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<br />NOTE 2 - LOANS RECEIVABLE
<br />
<br />As of June 30, 2004, loans receivable consist of the following:
<br />
<br />Wyndham Place First Time Homebuyer Loan Program
<br />City Centre Plaza Loans
<br />First Time Homebuyer Silent Loan Program
<br />Loans with Non-profits and For Profit Organizations
<br />Housing Rehabilitation Loans
<br />City Attorney Housing Assistance Loan
<br />Shores Childcare Loan
<br />Parking Fund Loan
<br />Total
<br />
<br />A.
<br />
<br />First Time Homebuyer Loan Program
<br />
<br />$ 743,085
<br />1,692,383
<br />1,771,600
<br />1,150,000
<br />2,541,797
<br />235,192
<br />3,013,378
<br />1 ~300~000
<br />$12,447,435
<br />
<br />The City established a First Time Homebuyer Program during fiscal year 1995 on a specific development
<br />sponsored by the Redevelopment Agency called Wyndham Place. The program currently involves the
<br />resale of Wyndham units where the City has First Right of Refusal. The City or Agency exercises its First
<br />Right of Refusal and markets to solicit qualified buyers.
<br />
<br />A portion of the City and Agency's Shared Appreciation is used to assist the new buyer in the Resale
<br />Program. While the initial program in 1995 made 0% interest loans, current buyers in the Resale Program
<br />are assisted according to the needs of the Borrower. Depending on the Borrower's ability to secure private
<br />financing for a first mortgage, the City and Agency loan is underwritten based on the Borrower's
<br />spendable income.
<br />
<br />These loans bear no interest and are secured by Second deeds of trust on the property, and typically, no
<br />payments are due until five years after the date of purchase. As of June 30, 2004 the Redevelopment
<br />Agency has outstanding loans of $302,369 to 13 Wyndham Place buyers, while the City has loaned
<br />$440,716 from the HOME Investment Partnership Block Grant, Community Development Block Grant
<br />(CDBG), and Rental Rehabilitation Program (RRP) funds to eight Wyndham Place home buyers. Since
<br />these loans are not currently available for expenditure, fund balance has been reserved in this amount.
<br />
<br />B.
<br />
<br />City Centre Plaza Loans
<br />
<br />The Redevelopment Agency sold several parcels of land to the developers of the City Centre Plaza project
<br />(a residential and commercial development) for $1,700,000 in 1996. The developers constructed City
<br />Center Plaza, which contains 81 affordable housing units, a childcare facility, residential and commercial
<br />parking, and 17,900 square feet of retail space. The promissory note from Mezes Court Associate in the
<br />amount of $1,445,000 is to be repaid through 2028 from surplus revenues generated by the housing
<br />project and accrued interest at 3%. The promissory note from J.H.R. Trust in the amount of $255,000 is
<br />also due to begin making payments beginning in 2011 and continuing until 2028 and accrues interest at
<br />3% as well. The outstanding balance at June 30, 2004 was $1,692,383.
<br />
<br />c.
<br />
<br />First Time Homebuyer Silent Loan Program
<br />
<br />In 2000, the Redevelopment Agency established a First Time Homebuyer Silent Loan Program. Loans
<br />are deferred for the first five years, and then amortized at 4% interest over the remaining 25 years. An
<br />Equity Participation requirement shares appreciation based on the amount of the Redevelopment
<br />Agency's original loan amount. At June 30, 2004 the Redevelopment Agency loaned $2,171,600 to 22
<br />home buyers. The outstanding balance at June 30, 2004 was $1,771,600. Since these loans are not
<br />currently available for expenditure, fund balance has been reserved in this amount.
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