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File Number: 20-285 <br />City funding will be used to renovate and replace the exterior ramp, stairs and entryway landing; to <br />rebuild four bathroom shower stalls and subfloors, including the ADA shower stall; and, to replace <br />the floors in the common area. <br />Staff proposes that the City Council provide the $143,725 to BFWC as a forgivable loan. The <br />interest rate for the loan will be 3% and the loan term will be 10 years. As long as BFWC <br />complies with all the loan agreement’s terms and CDBG regulatory requirements, one tenth (1/10) <br />of each loan will be forgiven each year. After the 10-year period, as long as there is no uncured <br />breach, the loan and accrued interest will be forgiven. If BFWC defaults or fails to cure after notice <br />of any breach of the loan’s covenants or conditions, the City has various remedies, including <br />specific performance, and acceleration of the loan payments, among others. <br />Current Agency Policies <br />HUD Five Year Consolidated Plan for 2015-2020: This five-year plan was adopted by Resolution <br />No. 2015-080 on April 20, 2015. One of the priorities identified in this document for Community <br />Development Block Grant (CDBG) expenditures is “Non-Housing Community Development <br />Projects.” HUD requests that cities identify specific action areas where CDBG funds can be <br />spent. In “Actions Planned to Develop Institutional Structure” staff named capital improvement <br />projects conducted by area non-profit organizations that provide social services as a priority area <br />that CDBG funds could support. <br />Previous Actions <br />The City Council allocated these funds as part of the Fiscal Year 2019-2020 budget. The HUD FY <br />2019-2020 Annual Action Plan was adopted on May 6, 2019 by the City Council. <br />Environmental Review <br />A National Environmental Protection Act (NEPA) review was conducted. It found this project to be <br />in compliance with NEPA. <br />Legal Analysis <br />The City Attorney’s Office reviewed and approved the staff report and resolution. In close <br />coordination with staff, the City Attorney’s Office drafted the loan agreements, and promissory <br />notes. <br />Fiscal Impacts and Budget Authority <br />The City of San Leandro has committed $143,725 to the BFWC San Leandro Shelter Capital <br />Improvement Project in Fiscal Year 2019-20. This is funded by the City’s Community <br />Development Block Grant entitlement funds currently available in Account 165-43-135-5240 to be <br />carried over into the new Fiscal Year 2020-21. <br />Page 2 City of San Leandro Printed on 7/1/2020 <br />356