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6.0. - Page 2 of 34 convert to low income for the remaining 45 years of the affordability period. HIP Housing acquired the Stafford site in June 2017. ANALYSIS In July 2019, the U.S. Department of Housing and Urban Development (HUD) conducted an onsite monitoring of the City's fiscal year 2017-2018 CDBG and HOME programs, including a review of the Stafford project. The City received one finding: the Stafford project did not have a stand-alone HOME agreement with all the required HOME provisions written in sufficient detail. The City utilized its standard loan agreement and affordability restriction document to convey the City's Affordable Housing Fund, CDBG, and HOME funding requirements. To address this deficiency, staff has prepared an addendum to the loan agreement that establishes a stand-alone HOME agreement with all the HOME provisions written in detail as required (included as Attachment A). FISCAL IMPACT There is no fiscal impact as a result of this action. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. PUBLIC NOTICE Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. ALTERNATIVES The City Council may choose not to approve the addendum to the loan agreement however the Stafford project would remain out of compliance with the HOME regulations and this could put the City at risk of having to pay back HUD for its $189,000 HOME contribution to this project. ATTACHMENTS Attachment A — Addendum to Loan Agreement Page 2 of 3 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcitV.org 137