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-- DRAFT -- 2025-2029 ConPlan & FY 2025-2026 Annual Action Plan Page 57 of 90 Explain how federal funds will in those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Federal funds in San Leandro are strategically leveraged with local, regional, and state resources to maximize their impact. A key local resource is the Affordable Housing Trust Fund (AHTF), supported by in- lieu fees collected under the City’s Inclusionary Housing Ordinance. Adopted in 2004 and amended to address legal changes, this ordinance encourages the development of affordable housing by requiring residential developers to either include affordable units in their projects or pay in-lieu fees to the AHTF. These funds support initiatives to expand housing options for moderate, low-, and very low-income households. The City also plans to amend the ordinance based on a forthcoming economic feasibility study to ensure its continued effectiveness. In FY 2022-2023, the City awarded $65,000 from the AHTF to the Housing Consortium of the East Bay (HCEB) for predevelopment work on the Lewelling Interim Housing and Drop-In Center. An additional $309,500 was spent to acquire the former Nimitz Motel site for the project. These local efforts leverage external resources such as California’s Project Homekey, HUD Community Project Funding, and ARPA allocations. The City anticipates partial reimbursement for some project expenditures through state programs. As of mid-2024, the AHTF had a fund balance of approximately $620,984, reflecting responsible fiscal management. Other local resources include the Low/Mod Housing Asset Fund, which was repurposed from former Redevelopment Agency assets. In FY 2023-2024, approximately $1.65 million from this fund was committed to support affordable housing projects. These financial contributions are complemented by non-financial resources such as zoning incentives to encourage private sector participation in affordable housing development. Regionally, Alameda County’s Measure A1 Bond allocates $10 million to San Leandro for affordable rental housing projects. This funding is part of a $580 million countywide initiative approved in 2016 to address the housing crisis. At the state level, programs like the Building Homes and Jobs Act (SB 2) and the Affordable Housing Bond Act (SB 3) provide additional funding sources, while the Greenhouse Gas Reduction Fund’s Affordable Housing and Sustainable Communities (AHSC) program integrates housing projects with transit improvements to reduce emissions. Federal Low-Income Housing Tax Credits (LIHTC), both 4% and 9%, remain a crucial source of funding for the construction and rehabilitation of affordable housing. San Leandro effectively combines CDBG funds with these local, regional, and federal resources to meet its housing and community development objectives. The City also prioritizes addressing homelessness in collaboration with Alameda County’s Coordinated Entry System. The City has been awarded $9.3 million from the State Project Homekey Program to acquire, renovate, and operate the Nimitz Motel as interim housing and a navigation center. Of the $9.3 million Homekey grant, about $8 million will be used for acquisition and renovation costs related to transforming the motel into interim housing and a navigation center, while about $1.3 million will be used for operations and services in the first three years of operations. The City has also leveraged other State and federal funds for this project, including a $2.5 million grant from a State budget bill in Summer 2023. The total project cost to acquire and renovate the motel is estimated at around $12 million, while annual operation/services costs will average about $1.8 million. The project is anticipated to open in Spring 2025. Furthermore, projects like Fuller Gardens, which provides housing for individuals with developmental disabilities, exemplify San Leandro’s commitment to leveraging diverse resources to achieve impactful results. Through diligent monitoring and strategic planning, the City continues to