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CITY OF PLEASANTON
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<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2022
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<br />Note 3: Notes Receivable (Continued)
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<br />A detailed summary of each housing-related loan is presented below:
<br />
<br /> Tri-Valley REACH, Inc. Loans – Beginning in January 1992, the City has entered
<br />into a series of agreements with REACH, Inc. (formerly HOUSE, Inc.), a local nonprofit
<br />agency, to provide funding to purchase below-market priced homes in Pleasanton for
<br />developmentally disabled adults who can live independently with supportive services.
<br />These loans do not include interest payments and no repayment of principal is due as
<br />long as REACH, Inc. owns the property and continues to use it for the intended purpose.
<br />Total REACH, Inc. loans outstanding as of June 30, 2022, were $1,147,531. Of this
<br />amount, $1,034,967 is funded by the HOME Program, $65,000 is funded from the City's
<br />Lower Income Housing Fund, and $47,564 is funded by the CDBG Program.
<br />
<br />The five REACH, Inc. loans currently outstanding are summarized in the following table:
<br />
<br />Date of Loan Loan Amount Funding Sources
<br />January 1992 75,000$ HOME Program
<br />January 1997 201,440 HOME Program; Lower Income Housing Fund
<br />August 2006 476,091 HOME Program; CDBG Program
<br />February 2009 195,000 HOME Program
<br />May 2010 200,000 HOME Program
<br />Total 1,147,531$
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<br /> Case Avenue Associates – In 1996, the City loaned $766,063 to Case Avenue Associates
<br />to finance the construction of the Promenade Apartments, a mixed income rental housing
<br />development of very low income, low income and market rate units. This loan was to
<br />finance the construction of the low income and very low income units in the project and
<br />was comprised of two components: $636,063 funded by the Lower Income Housing Fund
<br />(LIHF), and $130,000 funded through the City's allocation of HOME Program funds.
<br />Both loans are reported in the LIHF. The $636,063 portion did not bear interest through
<br />2007. Beginning in 2008, interest accrues at 2 percent and is payable from available cash
<br />flow from the project. Any interest not paid due to insufficient cash flow is deferred until
<br />the first year cash flow is available. All deferred interest and principal are due in full on
<br />the date of maturity, April 1, 2051. The $130,000 HOME portion bears no interest, and
<br />principal is to be paid in full on the date of maturity, April 1, 2051. Interest outstanding on
<br />the LIHF funded portion of the loan at June 30, 2022, was $9,272. The principal amounts
<br />outstanding at June 30, 2022, for the LIHF funded and the HOME funded portions
<br />were $636,063 and $130,000, respectively.
<br />
<br /> Promenade Housing Associates – In 1996, the City loaned $231,999 to Promenade Housing
<br />Associates to finance the construction of the Promenade Apartments, a mixed income
<br />rental housing development of very low income, low income and market rate units.
<br />This loan was to finance the construction of affordable units in the project and was
<br />comprised of two components: $101,999 funded by the Lower Income Housing Fund
<br />(LIHF), and $130,000 funded through the City's allocation of HOME Program funds.
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