3A Public Hearing 2011 1107 - Laserfiche WebLink

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File Number: 11 -264 In early 2009, Citizens Housing began experiencing financial difficulties resulting from the economic downturn which is ensuing in the dissolution of Citizens Housing by December 31, 2011. Citizens Housing began collaborating in 2009 with Eden Housing to preserve Surf Apartments which entailed transferring its management of the property to Eden Housing in early 2010. With Citizens Housing's impending dissolution, work has begun in ensuring that Eden Housing is able to preserve Surf Apartments by acquiring and rehabilitating the property. Eden Housing is requesting $100,000 from the City to contribute to assist in acquiring and rehabilitating Surf Apartments. City staff have identified $65,000 in its Affordable Housing Trust Fund that it can contribute to Eden Housing's $100,000 request. HUD's Community Development Block Grant (CDBG) funds will be the other funding source for the remaining $35,000. Analysis However, in accordance with the City's U.S. Department of Housing and Urban Development (HUD) required Citizen Participation Plan (CPP), which governs the process of amending the City's Five -Year Consolidated Plan and subsequent Annual Action Plans, the City must first complete a "substantial change or amendment" to its FY 2011 -2012 Action Plan prior to allocating $35,000 in CDBG funds to Eden Housing's Surf Apartments acquisition and rehabilitation project proposal. Therefore, the City plans to amend its FY 2011 -2012 Action Plan by: Adding Surf Apartments acquisition and rehabilitation under "Housing Activities" and allocating $35,000 in Community Development Block Grant (CDBG) funds for this new project (via the City's unallocated funds that have been carried over from the prior year). Current Agency Policies The FY 2010 -2014 Consolidated Plan and the FY 2011 -2012 Action Plan define current Council Policy. Previous Actions The City Council approved the FY 2011 -2012 Consolidated Plan on April 19, 2010 and the FY 2011 -2012 Action Plan on April 18, 2011. Committee Review and Actions Staff presented the Amendment to the FY 2011 -2012 Action Plan to the Business and Housing Development Committee on October 13, 2011. Environmental Review Review under the National Environmental Protection Act will be conducted and completed by staff on Eden Housing's proposed acquisition and rehabilitation of Surf Apartments prior to commitment or expenditure of CDBG funding. Summary of Public Outreach Efforts City of San Leandro Page 2 Printed on 11/1/2011