AgdaPkt 2012-01-09 - Laserfiche WebLink

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6.1. B. - Page 68 NOTE 3 - LOANS RECEIVABLE �CONTINUED� Equity Participation requirement shares appreciation based on the amount of the Agency's original loan amount. At June 30, 2011 the Agency had outstanding loans to 8 homebuyers totaling $557,005. Since these loans are not currently available for expenditure, fund balance is categorized as nonspendable 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 Hallmarl<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, 2011 was $1,133,153. E. Housing Rehabilitation Loans The City and Agency have outstanding loans for housing rehabilitation in the amount of $2,191,074. 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, 2011 was $2,041,244. G. Parking Fund Loan The capital outlay fund has a loan receivable in the amount of $1,300,000 from the parking fund. Additional details of this loan agreement are outlined in Note 7. H. First Community Housing Loan The City entered into an agreement with First Community Housing whereby $2,627,000 ($200,000 from Community Development Block Grant, $1,927,000 from Redevelopment Agency low and moderate housing fund, $500,000 pass-through from County of San Mateo) was loaned to First Community Housing for construction of the Villa Montgomery housing development at EI Camino and Vera Avenue. The loan bears interest at 3% for 40 years. The loan will be repaid annually from 70% of the project's net cash flow. The outstanding balance of the loan at June 30, 2011 was $2,627,000. l. Police Activities League Loan In March 2006, the City paid off a construction loan in the amount of $1,500,000 that the Police Activities League (PAL), a separate, private, non-profit agency, entered into with Bay Area Bank to partially finance the construction of the new PAL community center at Taft School. The City Council and PAL agreed that one-half of the amount, or $750,000, will be paid back to the City by PAL over a period of 15 years. The outstanding balance of the loan at June 30, 2011 was $300,000. J. Kainos Home and Training Center Loan In 1997/98, the City entered into an agreement with Kainos Home and Training Center whereby $57,500 from Community Development Blocl< Grant was loaned to acquire property for Kainos Home 42