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File Number: 23-051 o Policy 58.11 Service Enriched Housing - Promote social services and programs in affordable housing projects that assist lower-income households in obtaining the financial resources needed to increase and stabilize their housing choices in the City. Environmental Review The City’s acquisition of the Property pursuant to the purchase agreement is exempt from the provisions of the California Environmental Quality Act ("CEQA"), pursuant to the Affordable Housing Exemption of Section 15194 of the CEQA Guidelines for a project consisting of the construction, conversion, or use of residential housing consisting of 100 or fewer units that are affordable to low-income households, and pursuant to the Class 1 Exemption of Section 15301 of the CEQA Guidelines for the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. City staff must file a notice of exemption as required by Section 21152.1 of the Public Resources Code, pursuant to Section 15062 of the CEQA Guidelines. Prior to close of escrow, the City will complete required federal National Environmental Protection Act (NEPA) environmental review for the acquisition of the Property. Summary of Public Outreach Efforts ·May 24, 2022 - City, along with its nonprofit partners Building Futures and Eden Housing, Inc., conducted a community meeting at the Main Library to present the State Homekey 2.0 application and proposed interim homeless navigation center/shelter to permanent supportive housing project for the Nimitz Motel and to receive public feedback/comments. The meeting was conducted in person at the Main Library and online via Zoom. Legal Analysis The City Attorney’s Office reviewed and approved the staff report and resolution and the purchase and sale agreement, including all amendments. Financial Impacts Amendment No. 5 to the PSA requires the City to release $75,000 (of the initial escrow deposit of $184,500 from City Affordable Housing Trust Fund transferred in March 2022), which is non-refundable and applied towards the purchase price. If the City exercises the first 30-day option, then the City must deposit an additional $50,000 that would also be non-refundable and would go towards the purchase price. The City will use its Affordable Housing Trust Fund, which has a $400,000 balance currently to pay for the additional $50,000 if the City exercises the first option. Page 4 City of San Leandro Printed on 3/1/2023