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<br />6.1F <br /> <br />HOME regulations also provide for the PJ to award up to 50/0 of its entitlement to a Page 2 <br />CHDO for Operating Expenses. Eligible operating expenses include salaries, wages, <br />benefits and other employee compensation; employee education, training and travel; <br />rent and utilities; communications costs; taxes and insurance; and equipment, materials <br />and supplies. <br /> <br />Since the City's first entitlement of HOME funds in 2001/2002, there has been only one <br />eligible CHDO in San Mateo County that can access these setaside funds, therefore, <br />HUD has recaptured the City's CHDO funds for program years 2003-04, 2004-05, and <br />2005-06 at an approximate loss of $185,000. <br /> <br />The funding agreement with the CHDO (Attachment 2) will assist Cedar Street <br />Apartments, Inc. with soft costs (architectural and engineering fees), capacity building <br />including fees for environmental, financial, legal and development consultants, and <br />construction of the Cedar Street Apartments. Operating costs will assist the CHDO with <br />administrative expenses to carry out the development. <br /> <br />ALTERNATIVES <br />The Council may choose to modify the budget and/or scope of work of the agreement. <br /> <br />FISCAL IMPACT <br />The total cost of this activity is $239,744.68 equal to 15% of Redwood City's entitlement <br />FY 2006-2007, 2007-2008 and 2008-2009. Setaside funds in the amount of <br />$189,744.68 will be available for project and construction costs and $50,000 will be <br />available for operating expenses. These funds are currently available in the City's Letter <br />of Credit at the U.S. Treasury. Approval of this funding agreement by Council assures <br />no additional CHDO funding will be lost for the next four years as the City will have met <br />its setaside fund commitment required by federal regulations. <br /> <br /> <br />f}~~~~9w~ <br />'PatriCia J. Webb <br />Housing & Redevelopment Manager <br /> <br />~f--;:'Ld- ~ A. <br />Chu' hang, P.E. AcVng Director <br />C~munity Development Services Department <br /> <br />peterlngra~ <br />City Manager <br /> <br />ATTACHMENTS <br />1. Roster of CHDO Board of Directors <br />2. Agreement for Cedar Street Apartments, Inc for HOME Community Housing <br />Development Organization (CHDO) Funds <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />None <br /> <br />1:\2009 STAFF REPORTS, AGREEMENTS\02-2009\CHDO\CHDO Funding Agreement Staff Report.2.9.2009.doc <br />