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File Number: 22-263 The City has hired an experienced relocation consulting firm to ensure compliance with State and federal relocation requirements. The relocation consultant is in the process of notifying and meeting with longer term motel residents and the on-site restaurant to determine eligibility for relocation assistance and will prepare a relocation plan that must be included in the City’s Homekey application. State HCD will notify Homekey applicants within 45 days if they are approved for funding. Therefore, the City expects to hear a decision from the State by mid to late June (or 45 days from the May 2 deadline). The City is currently in escrow with the motel owner. The initial deposit of $184,500 becomes non-refundable after July 30, 2022. Escrow is set to close on October 1, 2022; the City has up to 3 thirty day extensions. As Homekey Round 2 will be highly competitive, the City’s alternative financing plan will be to re-apply for Homekey Round 3, which is due to release its RFP in Fall/Winter 2022. Homekey funding is essential to the development of the Nimitz Motel into the interim housing with navigation center project that the City desires. There is no planning/zoning approval for Phase 1 as the proposed navigation center/shelter complies with Assembly Bill (AB) 101 (Low Barrier Navigation Center By Right Processing) approved by the State in 2019. However, the proposed Phase 1 (Interim) project will need to submit for building permits, which the City will expedite so that renovations may begin quickly. The City estimates that Phase 1 (Interim) may be operable within 3 to 5 months after the City closes escrow on the motel. Previous Actions ·February 9, 2021 - City Council Work Session on proposal for a new navigation center and supportive housing for the homeless. ·March 21, 2022 - City Council approved purchase and sale agreement for acquisition of the Nimitz Motel at 555 Lewelling Blvd. Applicable General Plan Policies ·Goal 58: Special Needs Populations - Proactively address the special housing needs of the community, including seniors, disabled individuals, single parents, large families, and the homeless. o Action 58.09-B Transitional/Permanent Supportive Housing - Continue to provide financial support to develop and operate supportive and transitional housing facilities, including those located in nearby communities that are accessible to persons who are homeless or at risk of homelessness in San Leandro o Policy 58.11 Service Enriched Housing - Promote social services and programs in affordable housing projects that assist lower-income households in obtaining the Page 4 City of San Leandro Printed on 4/13/2022