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File Number: 22-565 relocated to a new, permanent site. Prior to the May 2 Project Homekey deadline, the City expended approximately $70,000 for the following diligence reports/studies that were budgeted for under the City’s Adopted FY2021-2022 Budget: appraisal, relocation consultant, property condition assessment, Phase I environmental, ALTA survey, lead in water testing, lead based paint & asbestos, Americans with Disabilities Act (ADA) survey, and termite report. The City will ensure full compliance with State and/or federal relocation laws regarding motel guests who may be determined to be eligible for relocation financial assistance. The City entered into contract in early 2022 with AutoTemp, an experienced relocation consulting firm, to administer proper noticing, interviews and technical assistance, and prepare a relocation plan required for inclusion in the Project Homekey 2.0 application. City staff will publicly seek City Council approval on how much additional relocation funding assistance is needed for eligible motel guests and AutoTemp will manage the relocation assistance process. To date, AutoTemp has estimated only 3 households who may be eligible for relocation as longer-term motel guests. The City submitted its Homekey 2.0 application to the State HCD in early May 2022. The City partnered and co-applied with local nonprofit service provider, Building Futures, and partnered with the nonprofit housing developer, Eden Housing, Inc. Due to the high volume of applicants and highly competitive nature of the Homekey 2.0 grant application process, State HCD informed the City in Summer 2022 that it was not awarded Homekey funding. Under the existing PSA (which was originally to end on July 31, 2022) approved by City Council in March 2022, the City had the right to exercise up to three (3) 30-day extensions with additional deposits from the City Affordable Housing Trust Fund not to exceed $75,000. The City executed all three extensions as follows: ·Amendment No. 1 - extension through August 29, 2022 and additional deposit of $25,000. ·Amendment No. 2 - extension through September 28, 2022 and additional deposit of $50,000. ·Amendment No. 3 - extension through October 28, 2022. (Note: the $75,000 deposits became non-refundable for the final extension and shall be applied towards the purchase price at close of escrow. The $75,000 is in addition to the initial $184,500 good faith deposit, which is still refundable.) Analysis City must now extend through Amendment No. 4 the due diligence and escrow period under the existing PSA in order to re-apply for the next Homekey, Round 3 (3.0), which is expected to open up in early Spring 2023. The City is also exploring alternative options in addition to re-applying to Project Homekey to acquire the motel and finance the proposed interim to permanent housing model during this extension period through March 15. Since the State disapproval of the City’s Project Homekey 2.0 application, City staff has undertaken the following work: ·Continued internal meetings among City Human Services Department, Housing Division, and nonprofit partner staff to debrief on the Homekey 2.0 application process including lessons learned, to re-assess the proposed project for feasibility, and to determine next steps. Page 2 City of San Leandro Printed on 10/13/2022