About the Loan
On April 10, 2005, the
City entered into a loan agreement with the California Housing Finance
Agency (CalHFA) in the amount of $500,000. On December 28, 2005, the
City also entered into agreement with Community Housing Improvement
Systems and Planning Association (CHISPA), a nonprofit housing agency,
where the City contributed the loan proceeds from CalHFA to CHISPA for
the development and construction of Walnut Place, a 40-unit multifamily
rental complex.
In the loan agreement between the City and
CalHFA, principal and interest is due 10 years from the date of the
agreement with interest accruing at simple interest of 3 percent from
March 16, 2006, the date of disbursement. Housing funds are being held
in trust in the Successor Agency CalHOME Trust Fund for the repayment of
the loan. All principal and interest amounts are payable at maturity on
April 10, 2015. The accumulated interest amount payable on June 30,
2014, was $124,054.