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<br />CITY OF SAN LEANDRO <br />STAFF REPORT <br /> <br />APPROVED AND <br />FORWARDED <br />TO CITY COUNCIL <br /> <br /> <br />DATE: <br /> <br />July 30,2007 <br /> <br />FROM: <br /> <br />John Jennanis, City Manager <br /> <br />Luke Sims, Interim Community Development Direct~;){J <br /> <br />Tom Liao, Housing/CDBG Manager -r~ <br />Jean Hom, Housing Specialist <br /> <br />TO: <br /> <br />BY: <br /> <br />SUBJECT PROJECT/PROJECT DESCRIPTION: <br /> <br />MATTER OF AMENDMENTS TO THE CAPITAL IMPROVEMENT AGREEMENT AND <br />PROMISSORY NOTE FOR A $180,000 COMMUNITY DEVELOPMENT BLOCK GRANT <br />(CDBG) LOAN AND FORGIVING A $50,000 CITY OF SAN LEANDRO REDEVELOPMENT <br />AGENCY REHABILITATION LOAN FOR ACQUISITION AND REHABILITATION OF THE <br />SAN LEANDRO SHELTER FOR WOMEN AND CHILDREN'S SAFE HOUSE. <br /> <br />SUMMARY AND RECOMMENDATION <br /> <br />Staff recommends that the City Council adopt resolutions 1) approving the amendments of the <br />capital improvement agreement and promissory note for a Community Development Block Grant <br />(CDBG) loan in the amount of One Hundred Eighty Thousand Dollars ($180,000) made to San <br />Leandro Shelter for Women and Children in 1999 for acquisition of their safe house, and 2) <br />approving the forgiveness of a Redevelopment Housing Set-Aside loan in the amount of Fifty <br />Thousand ($50,000) made to Cornerstone Community Development Corporation in 2000 from the <br />City's Housing Rehabilitation Program. <br /> <br />BACKGROUND <br /> <br />On June 7, 1999, the City of San Leandro provided a CDBG loan in the amount of $180,000 to San <br />Leandro Shelter for Women and Children ("Shelter") to assist with predeve10pment and acquisition <br />costs for a single family residence to be used as a safe house for women and children who are <br />victims of domestic violence. The Shelter was the former name for Building Futures for Women <br />and Children (BFWC), a long-standing non-profit based in San Leandro. This acquisition loan was <br />a 30-year deferred loan, with 2% simple interest per annum, forgivable after 30 years on July 1, <br />2029. On February 14, 2000, the City's Housing Rehabilitation Program approved a loan in the <br />amount of $50,000 from Redevelopment Housing Set-Aside funds to Cornerstone Community <br />Development Corporation ("Cornerstone") to rehabilitate the safe house. Cornerstone is the legal <br />entity created by BFWC to own and operate the safe house. This rehabilitation loan was a 30-year <br />loan, with 3% interest per annum, forgivable after 30 years on February 14,2030. <br />