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CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2019 <br />NOTE 16 – SUCCESSOR AGENCY ACTIVITIES (Continued) <br />Direct Borrowings <br />The Agency entered into the following agreements which represent contingency liabilities for the Agency: <br />Ford Motor Company Owner Participation Agreement <br />The agreement required the Agency to make annual payment equivalent to 50% of the sales tax generated <br />above a base of $277,000 by the sale of vehicles as part of the Ford Store San Leandro development. The <br />amount due is paid over several years depending on the volume of auto sales at no interest. <br />HUD 108 Guarantee Notes <br />In 2000, the City received a $1,000,000 20-year federal loan from Housing and Urban Development <br />(HUD 108 Guarantor loan), at an interest rate of 5.6% to finance the acquisition and construction of <br />affordable housing for seniors within the City of San Leandro. The loan is secured and payable from the <br />Agency’s 20% Housing Set-Aside Fund. The debt was assumed by the Successor Agency. Future debt <br />service payments for the HUD 108 Guarantee loan were as follows: <br />For The Year <br /> Ending June 30 Principal Interest Total <br />2020 55,000$ 908$ 55,908$ <br />55,000$ 908$ 55,908$ <br />92239