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SAN LEANDRO REDEVELOPMENT AGENCY <br />Notes to the Financial Statements <br />For the Year Ended June 30, 2011 <br />NOTE 2 — CASH AND INVESTMENTS (Continued) <br />The Agency does not have specific cash or investment accounts. See the City's Comprehensive <br />Annual Financial Report for disclosures related to cash and investments and the related custodial risk <br />categorization, as prescribed by Governmental Accounting Standards Boards Statement No. 40. <br />NOTE 3 — LOANS RECEIVABLE <br />Loans receivable at June 30, 2011 consisted of the following: <br />Redevelopment Agency Capital Projects Funds were owed $1,089,275 at June 30, 2011, which <br />includes (1) a loan made to J.T. Lawrence and Creekside Associates, LLC for the development of <br />Creekside Plaza Garage and Restaurant; (2) a loan made to Merced Street Properties for property <br />improvements; and (3) other commercial rehab loans for property improvements. The outstanding <br />balance net of allowances at June 30, 2011, was $582,935. The Agency has agreed to forgive a <br />portion of the loans if certain conditions outlined in the agreement are satisfied. Because the loans do <br />not meet the Agency's availability criteria for revenue recognition, the Agency has deferred the <br />revenue related to these loans. Revenues are recognized in the year of payment. Loans are secured by <br />trust deeds. <br />At June 30, 2011, the Agency, in its Low and Moderate Housing Capital Projects Funds, was owed <br />$9,019,731 which includes (1) a loan made to American Baptist Homes; (2) a loan made to Estabrook <br />Senior Housing; (3) a loan made to Eden Housing, Inc.; (4) a loan made to Citizens Housing <br />Corporation; and (5) loans that were made to City property owners who meet the HUD requirements <br />for financial assistance for property improvements, first time home buyer loans; and accrued interest <br />receivable. The outstanding balance net of allowances at June 30, 2011, was $7,831,835. The Agency <br />has agreed to forgive a portion of the loans if certain conditions outlined in the agreement are <br />satisfied. Because the loans do not meet the Agency's available criteria for revenue recognition, the <br />Agency has deferred the revenue related to these loans. Revenues are recognized in the year of <br />repayment. Loans are secured by trust deeds. <br />35 <br />Governmental <br />Allowance <br />Statement of <br />Funds <br />For <br />Net Assets <br />Balance Sheet <br />Forgievable <br />Balance Sheet <br />June 30, 2011 <br />Loans <br />June 30, 2011 <br />Creekside Property Loan <br />$582,935 <br />$582,935 <br />Merced Street Properties <br />150,000 <br />($150,000) <br />Commercial Rehab Loans <br />356,340 <br />(356,340) <br />American Baptist Homes <br />1,887,538 <br />1,887,538 <br />Estabrook Senior Housing <br />1,978,000 <br />1,978,000 <br />Eden Housing <br />1,226,000 <br />(550,000) <br />676,000 <br />Citizens Housing Corporation <br />300,000 <br />300,000 <br />Loans to Property Owners <br />3,105,090 <br />(114,793) <br />2,990,297 <br />Total loans and notes <br />$9,585,903 <br />($1,171,133) <br />$8,414,770 <br />Interest on Loans Receivable <br />523,103 <br />(523,103) <br />Total Interest and Loans <br />$10,109,006 <br />($1,694,236) <br />$8,414,770 <br />Redevelopment Agency Capital Projects Funds were owed $1,089,275 at June 30, 2011, which <br />includes (1) a loan made to J.T. Lawrence and Creekside Associates, LLC for the development of <br />Creekside Plaza Garage and Restaurant; (2) a loan made to Merced Street Properties for property <br />improvements; and (3) other commercial rehab loans for property improvements. The outstanding <br />balance net of allowances at June 30, 2011, was $582,935. The Agency has agreed to forgive a <br />portion of the loans if certain conditions outlined in the agreement are satisfied. Because the loans do <br />not meet the Agency's availability criteria for revenue recognition, the Agency has deferred the <br />revenue related to these loans. Revenues are recognized in the year of payment. Loans are secured by <br />trust deeds. <br />At June 30, 2011, the Agency, in its Low and Moderate Housing Capital Projects Funds, was owed <br />$9,019,731 which includes (1) a loan made to American Baptist Homes; (2) a loan made to Estabrook <br />Senior Housing; (3) a loan made to Eden Housing, Inc.; (4) a loan made to Citizens Housing <br />Corporation; and (5) loans that were made to City property owners who meet the HUD requirements <br />for financial assistance for property improvements, first time home buyer loans; and accrued interest <br />receivable. The outstanding balance net of allowances at June 30, 2011, was $7,831,835. The Agency <br />has agreed to forgive a portion of the loans if certain conditions outlined in the agreement are <br />satisfied. Because the loans do not meet the Agency's available criteria for revenue recognition, the <br />Agency has deferred the revenue related to these loans. Revenues are recognized in the year of <br />repayment. Loans are secured by trust deeds. <br />35 <br />