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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 />Both loans are reported in the LIHF. The $101,999 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 $1,486. The principal amounts
<br />outstanding at June 30, 2022, for the LIHF funded and the HOME funded portions were
<br />$101,999 and $130,000, respectively.
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<br /> Pleasanton Homeownership Assistance Program – As part of the Pleasanton
<br />Homeownership Assistance Program (PHAP) developed by the City to provide affordable
<br />housing opportunities for households of low and moderate income, loans are provided
<br />to eligible low and moderate income homebuyers for second mortgages and down payment
<br />assistance. In 2004, the City created the Down Payment Assistance (DPA) Program and
<br />amortized payments are made on half of the loan for the first ten years while payments
<br />are partially deferred for ten years on the other half. The DPA Program was revamped
<br />to the Pleasanton Downtown Assistance Loan Program (PDALP) in October 2020, which
<br />provides increased loan amounts of up to $100,000 and includes a shared appreciation
<br />repayment calculation. During FY 2021/22, the City received loan repayments totaling
<br />$68,973. The outstanding amount due to the City for these types of loans as of
<br />June 30, 2022, was $193,666.
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<br /> Kottinger Gardens Phase 1 Associates, L.P. (Affiliated Corporation with MidPen Housing
<br />Corporation) – On November 12, 2013, the City approved a Disposition, Development
<br />and Loan Agreement with MidPen Housing Corporation that provided for a
<br />$10,000,000 loan from the City's Lower Income Housing Fund (LIHF) for the
<br />development of the Kottinger Place affordable senior housing project. During FY 2014/15,
<br />the City appropriated an additional $3,750,000 from the LIHF for this project, increasing
<br />the project funding to $13,750,000. A total of $11,174,640 was drawn from this loan.
<br />Payments are to be made from excess distributable cash with the entire principal and
<br />interest due in November 2070. The principal and interest outstanding at June 30, 2022
<br />were $11,174,640 and $1,063,038, respectively.
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<br />Also, during FY 2014/15, the City provided a separate predevelopment loan of $450,000
<br />for the predevelopment costs of the Kottinger Place project. The loan was funded through
<br />the City's HOME Program. Interest accrues on the principal amount at 3 percent per annum.
<br />Payments are to be made from excess distributable cash with the entire principal and
<br />interest due in October 2071. The principal and interest outstanding at June 30, 2022 were
<br />$450,000 and $94,432, respectively.
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