3A Public Hearing 2009 0316 - Laserfiche WebLink

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FY 2009-10 Consolidated Action Plan 4 March 16, 2009 • $22,400 San Leandro Boys & Girls Club, 401 Marina Blvd, San Leandro (energy efficient improvements for the City-owned facility) • $446,200 The City of San Leandro Department of Engineering & Transportation (construction of 125 new ADA compliant ramps and sidewalks) For the CDBG general administration budget, the total allocated is $144,184, which is the amount available under a 20% spending cap in accordance with HUD regulations. In addition to the fair housing activity allocated, the county-wide Everyone Home Plan (formerly the County Continuum of Care) administration is covered under the CDBG administration costs at the same cost as last year ($6,755). Each city involved in Everyone Home and Continuum of Care Consortium has been designated a pro rata funding share for preparing the annual Continuum of Care grant application to HUD and monitoring the Homeless Management Information System (HMIS). The City proposes to use its HOME funds to assist in the acquisition, rehabilitation, and/or construction of potential affordable rental housing projects. Draft HUD Section 10$ Loan Guarantee Program Application for Senior Center The HUD Section 108 Loan Guarantee Program is a debt financing program through the CDBG Program to help communities leverage CDBG dollars for community development or revitalization activities such as economic development, capital improvements, and housing rehabilitation. Local governments which utilize the Section 108 loans must pledge current and future CDBG allocations (or other local funding sources) as security for the loan. HUD's formula for calculating how much a local government may borrow under Section 108 is five times its latest CDBG entitlement grant minus any outstanding Section 108 principal loan balances. The City currently has an outstanding Section 108 loan for the land acquisition relating to the Broadmoor Plaza affordable senior rental housing development. HUD recently calculated that the City currently has the capacity to apply for up to $2.85 million in Section 108 loan funds. The City is preparing a Section 108 loan application for $2.5 million, which is needed to complete the construction of the City's new senior center in FY 09-10. The senior center is a high priority in the City's current Five Year HUD Consolidated Plan and furthers the CDBG national objective of benefitting low- and moderate income persons, particularly seniors. The City will pledge future CDBG funds to repay the $2.5 million loan over 20 years. City staff estimates that the annual average loan repayment (principal plus interest) will be $173,500 with the interest payments declining over time as the principal balance is paid down. The City does not project any program income from the senior center. The draft Section 108 loan application will be available for public review and comment on the City website and at City Hall and the Main Library fora 30 day period (March 20 - Apri120, 2009), and Council will review the fmal application on April 20, 2009.