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(Header for Odd Numbered Pages: Times 8 point, bold, flush right) Action Plan - FY1997 City of Page 5 GEOGRAPHIC DISTRIBUTION Funding for the activities described will be made available and distributed throughout the City to eligible individuals and households, unless funds are targeted to specific areas such as the identified "exception areas" within the City. All activities shown in the Proposed Project Table are intended to serve eligible households and individuals within the City limits of San Leandro. Certain programs such as housing rehabilitation and the MCC program, are not identified with a specific geographic locale, but based on eligibility of the household. Other programs such as the Design Assistance Program are targeted within the City's "exception areas" as defined by HUD. ACTIVITY LOCATIONS For many programs using CDBG funds, such as residential or business rehabilitation, the exact location of the activity is not determined prior to funding the program as a whole. Pursuant to the recently adopted Final Rule for the CDBG Program, the Action Plan must identify who may apply for assistance, the process by which the grantee will select those to receive assistance, and how much and under what terms the assistance will be given. Alameda County HCD administers a Rehabilitation Program using CDBG funds for all jurisdictions in the HOME Consortium, although the level of rehabilitation services varies among cities. The goal of the program is to conserve, preserve, and improve the housing and neighborhoods of low and moderate income people living in the County. To that end, the program provides grants or low interest loans to qualifying properties and owners to provide a variety of rehabilitation services, such as rental housing rehabilitation, minor and major home repairs, mobile home repairs, exterior paint or clean-up assistance, seismic retrofitting, and accessibility repairs. The owner rehabilitation program is targeted to owner -occupant households who qualify as low income by earning less than 80 percent of the PMSA median income. Depending on the level and cost of rehabilitation, grants or low- or no -interest loans are offered. For the owner programs, income, the applicant's address, and the type and extent of rehabilitation work are checked to determine the applicant's eligibility, the type of financing, and whether the rehabilitation program is offered in the applicant's jurisdiction. The rental rehabilitation program is available to those properties in which at least 51 percent of the units are occupied by low and very low income households, or in which 51 percent of the units will be rent -restricted through a rental agreement to qualified low income households after rehabilitation. This program provides below market interest rate loans to property owners to complete the rehabilitation. Tenants' incomes are verified to determine whether at least half of the units are occupied by lower income households. The property's operating budget is also examined to determine the property's long-term financial feasibility.