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File Number: 23-268 <br />experiencing homelessness in a safe and welcoming environment, address the barriers they <br />face to being safely and stably housed, and connect them with housing. The shelter serves <br />about 100 women and children each year, in about 60 households; 40% are children. <br />City funding will be used to address exterior and interior “wear and tear” to the building. The <br />capital improvement work to the exterior will include replacing wood roof trim and flashing as <br />needed, repainting exterior stucco siding, garbage enclosure and ramp hand/guard rails, <br />re-roof exterior storage shed, and other miscellaneous carpentry and painting. Work on the <br />interior of the shelter will include replacing flooring in the common areas, kitchen and <br />dormitory and painting walls and window frames. <br />Staff proposes that the City Council provide the $150,229 to Building Futures as a forgivable <br />loan. The interest rate for the loan will be 3% and the loan term will be 10 years. One tenth <br />(1/10) of each loan will be forgiven each year if Building Futures complies with the loan <br />agreement. After the 10-year period, as long as there is no uncured breach, the loan and <br />accrued interest will be forgiven. If Building Futures defaults or fails to cure after notice of any <br />breach of the loan’s covenants or conditions, the City has various remedies, including specific <br />performance, and acceleration of the loan payments with interest, among others. <br />Current Agency Policies <br />·HUD Five Year Consolidated Plan for 2020-2024: This five-year plan was adopted by <br />Resolution No. 2020-056 on June 15, 2020. <br />Previous Actions <br />·HUD FY 2022-2023 Annual Action Plan: This Annual Action Plan was adopted on June <br />21, 2022 by the City Council. These funds were allocated as a part of the Fiscal Year <br />2022-2023 CDBG budget. <br />Environmental Review <br />A National Environmental Protection Act (NEPA) review was conducted and staff found that <br />the project is Categorically Excluded per 24 CFR 58.35(a), and subject to laws and authorities <br />at 58.5. This categorically excluded project converts to “exempt” per Section 58.34(a)(12), <br />because it does not require any mitigation for compliance with any listed statutes or <br />authorities, nor requires any formal permit or license. Funds may be committed and drawn <br />down after this certification of this part for this now “exempt” project. <br />Legal Analysis <br />The City Attorney’s Office reviewed and approved the staff report and attached resolution. In <br />close coordination with staff, the City Attorney’s Office drafted the loan agreements, and <br />promissory notes. <br />Financial Impacts <br />This CIP project will require Council appropriation of $150,229 for Fiscal Year 2023-2024 to <br />the following Accounts. Expenditures of these funds will then be reimbursed by the U.S. <br />Page 2 City of San Leandro Printed on 6/14/2023