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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 was available for public review and comment at City Hall (City Clerk's office and Housing Services Division), the Main Library, and the City website during a 30-day period (March 20 - April 20, 2009), and Council reviewed the final application on April 20, 2009. Neighborhood Stabilization Program (NSP) On July 30, 2008, the Housing and Economic Recovery Act of 2008 (H.R. 3221) was signed into law. This comprehensive bill, designed to address the housing crisis by providing funds to purchase vacant and foreclosed properties, includes $3.9 billion in US Department of Housing and Urban Development (HUD) federal block grant funds to fund the Neighborhood Stabilization Program (NSP). The State of California Housing and Community Development Department (HCD) received $145,071,506 in NSP funds to assist cities and counties that did not receive direct allocations from HUD. As a Tier 2 city, the City of San Leandro is eligible to receive up to $559,007 in NSP funding that may be used for the following activities: 1. Establish financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers; 2. Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties; 3. Establish land banks for homes that have been foreclosed upon; 4. Demolish blighted structures; and 5. Redevelop demolished or vacant properties. To meet the minimum application funding threshold of $1 million outlined in the State's 2008- 2009 Annual Plan Update to the 2005-2010 Consolidated Plan, the City of San Leandro plans to enter into a joint agreement and submit a joint application for funding to the State of California with the cities of Alameda, Berkeley, Fremont, Livermore, and Union City. Collaboratively, all six (6) cities are eligible to apply to the State for a combined total of $2,344,060 in NSP grant funds. The City of Livermore will be the "lead agency" and will submit an application to the State for NSP funds on behalf of San Leandro and the other remaining participating cities. As the grant recipient, Livermore will apply to the State through a Notice of Funding Availability (NOFA) application as soon as it is released. Final Action Plan - FY2009-10 City of San Leandro Page I S