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REDEVELOPMENT AGENCY OF SAN LEANDRO <br />NOTES TO THE FINANCIAL STATEMENTS <br />FOR THE YEAR ENDED JUNE 30, 2007 <br />3. LOANS RECENABLE <br />Loans receivable at June 30, 2007, consisted of the following: <br />Creekside Property Loan <br />Chamber of Commerce <br />Commercial Rehab Loans <br />Business Loans <br />HUD Loans to Property Owners <br />Total loans and notes <br />Interest on Loans Recievable <br />Total Interest and Loans <br />Balance Per <br />Balance Sheet Allowance <br />Governmental Funds For Forgivable <br />June 30, 2007 Loans _ <br />$ 1,246,698 $ - $ <br />5,285 (5,285) <br />200,000 (200,000) <br />Balance Per <br />Statement of <br />Net Assets <br />June 30, 2007 <br />1,246,698 <br />89,823 - 89,523 <br />4,884,121 (828,697) 4,055,424 <br />6,425,927 (1,033,982) 5,391,945 <br />293,588 (293,588) - <br />$ 6,719,515 $ (1,327,570) $ 5,391,945 <br />The Agency loaned the Creekside Property, LLC (Creekside) $1,246,698, the Chamber of Commerce <br />$5,285, Merced Street Properties (Merced Street) $150,000, and Trina Wallace $50,000, for property <br />improvements. The outstanding balance net of allowances at June 30, 2007, was $1,246,698. The Agency <br />has agreed to forgive a portion of the loan if certain conditions outlined in the agreement are satisfied <br />Because the loans do not meet the Agency's availability criteria for revenue recognition, the Agency has <br />deferred the revenue related to these loans. Revenues are recognized in the year of payment. Loans are <br />secured by trust deeds. <br />At June 30, 2007, the Agency was owed, net of allowances, $4,055,424 for loans that were made to City <br />property owners who meet the HUD requirements for financial assistance for property improvements and <br />first time home buyer loans. The Agency has agreed to forgive a portion of the loan if certain conditions <br />outlined in the agreement are satisfied. Because the loans do not meet the Agency's available criteria for <br />revenue recognition, the Agency has deferred the revenue related to these loans. Revenues are recognized in <br />the year of repayment. Loans are secured by trust deeds. <br />23 <br />