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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 />1 percent interest, with the accrued interest capped at 50 percent of the loan. The majority
<br />of loans issued through the HRP have been funded using CDBG funds, with the exception
<br />of several loans that have been funded with HOME funds and Lower Income Housing
<br />funds. The City currently contracts with Amerinational Community Services to service
<br />the City's HRP loan portfolio. The City issued an additional $150,000 loan during the fiscal
<br />year. The outstanding principal and interest amounts of these loans funded by CDBG funds
<br />as of June 30, 2022, were $388,177 and $172,786, respectively. The outstanding principal
<br />and interest amounts of these loans funded by HOME funds as of June 30, 2022, were
<br />$119,020 and $33,890, respectively. The outstanding principal and interest amounts on these
<br />loans funded by Lower Income Housing funds as of June 30, 2022 were $179,590 and $2,923,
<br />respectively.
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<br /> Sunflower Irby, LLC – On April 13, 2018, the City executed a $250,000 loan agreement
<br />with Sunflower Irby, LLC to provide pre-development funding for the construction of
<br />Sunflower Hill, a 31-unit affordable rental housing development for special needs
<br />residents. On March 18, 2019, the City executed a $2,250,000 loan agreement with
<br />Sunflower Irby, LLC, which superseded in its entirety the April 13, 2018 loan agreement,
<br />and included $2,000,000 for construction of the housing development. The loan, funded
<br />from the Lower Income Housing Fund, accrues simple annual interest of 3 percent. The
<br />entire balance of the loan, together with accrued interest, is payable in full in May 2076. The
<br />principal and interest outstanding as of June 30, 2022, were $2,250,000 and $221,114,
<br />respectively.
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<br /> Eden Housing/Ridge View Commons Associates – In 1988, the City loaned $4,000,000 to
<br />Eden Housing, Inc. for the development of Ridge View Commons, a rental housing
<br />development for low and very low income seniors. Funding for this loan came from a
<br />Department of Housing and Urban Development (HUD) grant through the Housing
<br />Development Grant (HODAG) program. This loan bears interest of 5 percent per annum
<br />and both principal and interest are payable only to the extent that surplus cash is available.
<br />In 1999, the City loaned $2,250,000 from the Lower Income Housing Fund to Ridgeview
<br />Commons Associates, a California Limited Partnership affiliated with Eden Housing, Inc.,
<br />for this same housing project. In FY 2009/10, the City loaned an additional $225,000 to
<br />Ridgeview Commons Associates to buy out the financial interests of the limited partner
<br />(Chevron USA, Inc.) in this project. This loan, totaling $2,475,000, bears interest of
<br />5.5 percent per annum and is payable only to the extent that surplus cash is available. Due
<br />to the contingent nature of the loan repayments, the City has recorded an allowance for
<br />doubtful accounts in its Lower Income Housing Fund for both the entire principal and interest.
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<br />Miscellaneous Loans are as follows:
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<br /> Valley Business Park Loan – In 2018, the City loaned $48,000 to the Valley Business Park
<br />Owners Association for the renovation of three median islands on Valley Avenue just east
<br />of Santa Rita Road. The loan was funded from the City's Capital Improvement Plan
<br />Reserve (CIPR). There are fifty (50) monthly loan payments, due on the first of each month,
<br />commencing on November 1, 2018. Payments include interest of 1.9 percent based on the
<br />Local Agency Investment Fund (LAIF) rate at the time of loan issuance. The outstanding
<br />amount as of June 30, 2022, was $5,728.
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