Page 77 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 4. Notes, Loans, and Lease Receivables

a. Notes and Loans Receivable

Notes and loans receivables of $49,424,739 consist primarily of revolving home
improvement and other housing loans and are due beyond one year.
A summary of amounts owed as of June 30, 2025, follows:

Nonmajor
Housing Governmental
Authority Funds Total
Cottonwood Properties $ 2,118,948 $ 2,008,280 $ 4,127,228
Sheila Street Rehabilitation 2,651,875 - 2,651,875
RHDC Properties 1,794,958 2,639,246 4,434,204
Coachella Valley Housing Coalition 1,043,287 - 1,043,287
Ability First 824,917 - 824,917
Perris Isle 413,000 687,000 1,100,000
Oakwood 3,000,000 - 3,000,000
Rancho Dorado 12,500,000 - 12,500,000
Hemlock Family Apartments 6,300,000 1,520,943 7,820,943
Courtyards at Cottonwood 1,495,722 4,420,682 5,916,404
Others 341,028 5,664,853 6,005,881
Totals $ 32,483,735 $ 16,941,004 $ 49,424,739

b. Notes to Successor Agency
In prior years, the City made various loans to the former Redevelopment Agency. Upon
dissolution of the Redevelopment Agency, certain loans were approved as enforceable
obligations in a letter dated May 26, 2012, from the California Department of Finance and
remain as a receivable in the General Fund and a liability of the Successor Agency. At
June 30, 2025, the balance of $7,938,341 consists of the following:

The Towngate Regional Mall notes (Sears Note) totaling $6,240,875 which originated from
a participation agreement (as amended) whereby the Agency acquired certain parcels
within the mall for subsequent transfer to major tenants. The notes bear interest at 4.9%
and are payable solely from available site-generated property tax increment and up to 50%
of site-generated sales tax. Payments on this agreement are determined and pre-approved
by the Department of Finance. Furthermore, the Agency has covenanted to use reasonable
best efforts to refinance these notes with Tax Allocation Bonds, provided such financing is
determined to be fiscally feasible. At June 30, 2025, accrued interest amounts to $1,697,466.

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