Comprehensive Annual Financial Report - City of Santa Monica
Comprehensive Annual Financial Report - City of Santa Monica
Comprehensive Annual Financial Report - City of Santa Monica
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CITY OF SANTA MONICA, CALIFORNIA<br />
Notes to Basic <strong>Financial</strong> Statements, Continued<br />
For the fiscal year ended June 30, 2009<br />
payable after a two-year deferral period. In June 2009, Habitat for Humanity conveyed the land to<br />
the Redevelopment Agency in exchange for cancellation <strong>of</strong> the loan, its associated contracts and<br />
obligations.<br />
o. Promissory notes in the amount <strong>of</strong> $4,458,033, $1,691,967 and $950,000 for a total <strong>of</strong> $7,100,000<br />
were executed with 26 th and <strong>Santa</strong> <strong>Monica</strong> Family Housing Limited Partnership, c/o Community<br />
Corporation <strong>of</strong> <strong>Santa</strong> <strong>Monica</strong>, for an affordable housing project located at 1349 26 th Street. Fortyfour<br />
low- and moderate-income housing units are to be constructed on the site. They are 55-year<br />
loans with 3% interest rate per annum. Payments are to be made from residual receipts. As <strong>of</strong> June<br />
30, 2009, $3,845,726 and $1,691,967 respectively, had been disbursed to the borrower.<br />
p. Two promissory notes, for $200,000 each, were executed with the owners <strong>of</strong> certain rental<br />
properties. The notes were for five years at 3% interest per year, and could be renewed for five<br />
additional five-year terms as long as the rental properties are maintained for low-and moderateincome<br />
households. The first note was due December 22, 1993, and has been extended for the third<br />
time to December 22, 2008 under the same terms and conditions; the second note was due<br />
December 29, 1994, and has been extended to December 29, 2019 under the same terms and<br />
conditions. The promissory notes are payable in full upon sale or transfer <strong>of</strong> the property (whichever<br />
occurs first) or upon expiration <strong>of</strong> the term <strong>of</strong> the promissory notes. Upon payment to the <strong>City</strong>,<br />
proceeds must be paid to the State <strong>of</strong> California as repayment for two $200,000 State Department <strong>of</strong><br />
Housing and Urban Development Deferred Payment Rehabilitation Loan Program (DPRLP) loans.<br />
There were no changes in the loan balances during the year ended June 30, 2009.<br />
q. These represent non-interest bearing, limited appreciation and shared appreciation loans made<br />
pursuant to TORCA Program guidelines to assist low- and moderate-income households purchase<br />
their rental units. As <strong>of</strong> June 30, 2009, the outstanding balances <strong>of</strong> such loans total $1,262,185.<br />
r. A promissory note in the amount <strong>of</strong> $1,200,000 was executed with Ocean Park Community Center<br />
for congregate housing and emergency shelter for very low-income use, located at 1751 Cloverfield<br />
Blvd. This loan is for the acquisition and rehabilitation <strong>of</strong> the site. This is a 55-year loan with<br />
5.98% interest rate per annum with a two-year deferral period. Payments are to be made from<br />
residual receipts. As <strong>of</strong> June 30, 2009, $1,200,000 had been disbursed to the borrower.<br />
s. A revised promissory note in the amount <strong>of</strong> $6,745,807 was executed with Community Corporation<br />
<strong>of</strong> <strong>Santa</strong> <strong>Monica</strong> for an affordable housing project located at 3021-3031 <strong>Santa</strong> <strong>Monica</strong> Blvd. This<br />
loan is for the acquisition, predevelopment expenses and construction <strong>of</strong> future low- and moderateincome<br />
housing. This is a 0% loan with the principal amount due and payable after a two-year<br />
deferral period. As <strong>of</strong> June 30, 2009, $6,345,807 had been disbursed to the borrower.<br />
t. A promissory note in the amount <strong>of</strong> $1,161,185 was executed with Community Corporation <strong>of</strong><br />
<strong>Santa</strong> <strong>Monica</strong> for an affordable housing project located at 1342 Berkeley Street. This loan is for the<br />
acquisition and predevelopment expenses for future low- and moderate-income housing. This is a<br />
0% loan with the principal amount due and payable after a two-year deferral period. As <strong>of</strong> June 30,<br />
2009, $956,395 had been disbursed to the borrower.<br />
u. Two promissory notes, one in the amount <strong>of</strong> $5,870,000 and one for $1,300,000 were executed with<br />
Step up on Fifth, L.P. for an affordable housing project located at 1548 Fifth Street. These loans are<br />
for the acquisition and construction <strong>of</strong> the site. This is a 55-year loan with a simple interest rate <strong>of</strong><br />
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