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File Number: 23-051 the State Housing and Community Development Department (HCD) to convert the motel into a short-term navigation center with shelter for approximately 3 to 5 years. During the interim period, the City and its nonprofit partners would seek additional public financing to convert the property into long-term supportive and affordable rental housing for the homeless. Before conversion to the long-term permanent supportive housing model, the City would ensure the navigation center and shelter at the Property would be relocated to a new, permanent site. 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 contracted in early 2022 with AutoTemp, an experienced relocation firm, to ensure the City complies with State and federal relocation requirements. City staff will return to 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 applications 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 original PSA 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, along with extending the PSA effective date to March 15, 2023 under Amendment No. 4: ·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 after Amendment No. 3 and shall be applied towards the purchase price at close of escrow.) ·Amendment No. 4 - City Council approved on October 17, 2022 an extension of the PSA through March 15, 2023. Analysis Extending through Amendment No. 5 the due diligence and escrow period under the existing PSA in order to re-apply for the next Homekey 3.0, which is expected to open its Request for Funding Proposals (RFP) in late March 2023, will ensure the Navigation Center project remains on track. Since late Summer 2022, City staff and its nonprofit project partners have continued to work on acquiring the Nimitz Motel and enhancing the next Homekey funding application (a summary of such work is provided below): ·Contracted with Andrew Hening Consulting to lead the Homekey 3.0 application process for the City and its partners. Hening Consulting has experience in helping jurisdictions in Page 2 City of San Leandro Printed on 3/1/2023