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City of San Leandro <br />Meeting Date: June 5, 2017 <br />Staff Report <br />Agenda Section:File Number:17-306 PUBLIC HEARINGS <br />Agenda Number:5.B. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for a Public Hearing on a Proposed Amendment to the FY <br />2010-2011 U.S. Department of Housing and Urban Development (HUD) <br />Annual Action Plan to Re-allocate $100,000 in CDBG Funds Originally <br />Intended for a Proposed Childcare Center by BRIDGE Housing: $10,000 for <br />renovations to the Luella Fuller Home and $90,000 for Continued <br />Implementation of the City’s ADA Transition Plan <br />SUMMARY AND RECOMMENDATIONS <br />Under the City’s FY 2010-2011 HUD Annual Action Plan, the City originally allocated $100,000 for <br />BRIDGE Housing’s proposed childcare center located within its affordable rental housing development <br />proposal called The Alameda (now known as Marea Alta). In recent years, the City determined that <br />CDBG funds were too inflexible and cumbersome to allocate to the proposed childcare center and the <br />City Council consequently approved a loan to BRIDGE for $800,000 from General Funds in February <br />2017. In order to re-allocate the $100,000 from CDBG, the City must adhere to its HUD-approved <br />Citizen Participation Plan (CPP), which governs the process of amending HUD Annual Action Plans. <br />Staff recommends that the City Council hold a public hearing, provide direction to staff on the <br />amendments to the FY 2010-2011 Action Plan, make the summary of the amendments available for <br />public comment for a 30-day period from June 12 - July 11, 2017, and set a public hearing for July 17, <br />2017 to consider final approval of the amended FY 2010-2011 Annual Action Plan. <br />BACKGROUND <br />The City Council originally allocated $100,000 of CDBG funds to BRIDGE Housing for its proposed <br />childcare center in FY2010-11. As the affordable rental development project (where the childcare <br />center would be on the ground floor) faced major obstacles to funding and construction including <br />negative impacts from the 2008 recession, the childcare center became further delayed and the City <br />never entered into contract with BRIDGE for the CDBG funds. City staff also determined that CDBG <br />funding had regulatory burdens that impacted BRIDGE’s ability to move from the originally intended <br />location on the west side of the BART station to its current location east of the station and in restricting <br />Page 1 City of San Leandro Printed on 5/30/2017 <br />19