AgdaPkt 2020-06-08 Joint SA PFA - Laserfiche WebLink

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7.B. - Page 5 of 79 recommended that the City Council allocate $898,503 in HOME funding to the project that will replace a portion of the City's existing $2.5 million soft funding commitment. Staff is diligently working with Habitat to find alternative and interim funding solutions until the City collects the affordable housing impact fees from the other development project. Despite these efforts, Habitat still faces an approximately $1.5 million funding gap due to construction cost increases. Habitat has applied for State CalHOME funding to fill most of the gap and is expecting to be awarded funds later this year. However, in order to close the gap, Habitat has requested $200,000 in CDBG funding to pay for disposition costs for when the units are sold, which is a CDBG eligible activity. *** Americans with Disabilities Act (ADA) Improvement Project The HHCC had recommended that the remaining balance of available CDBG funds be allocated to either a housing and/or public facility improvement project that would be determined at a later date. Staff has evaluated potential projects based on feasibility and compliance with the CDBG regulations including eligibility, timely expenditure requirements, and procurement and labor standards. Given that the City doesn't have a specific housing project(s) in the pipeline that would be eligible for this funding and could be spent within the fiscal year, staff recommends funding a project in the City's ADA Transition Plan. More specifically, funds will be used to install ADA compliant curb ramps and sidewalk repairs in the City's low - moderate income neighborhoods. FISCAL IMPACT Adoption of the 2020 Action Plan positions the City to receive $1,088,247 in new CDBG and HOME entitlement funds to be used directly by the City or through nonprofit organizations. These funds help the City and subrecipients leverage additional funds to support programs and activities that benefit Redwood City residents. Changing the funding source for the $360,000 Habitat grant will impact the Affordable Housing Fund. There is no impact to the General Fund. ENVIRONMENTAL REVIEW All of the activities proposed for funding have been determined to be exempt, categorically excluded, or have a finding of no significant impact under the National Environmental Protection Act (NEPA), or will be subject to further reviews when specific sites are determined. The City will record a Notice of Exemption with the San Mateo County Recorder for administration of the CDBG and HOME funding programs pursuant to California Environmental Quality Act regulations (CEQA). Approval of the 2020 Action Plan is not considered a project under CEQA Guidelines Section 15378 as it is a funding mechanism that does not involve a commitment to specific projects that may result in a potentially significant physical impact on the environment. Page 5 of 6 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 466