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RESOLUTION of the City of San Leandro City Council to Approve a Loan for $143,725 from CDBG Funds to the Building Futures for Women and Children, and to Authorize the City Manager to Execute the Loan Agreements
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WHEREAS, Saint Leander’s Church owns the property located at 501 Davis Street, San Leandro, California (the “Property”); and
WHEREAS, Building Futures for Women and Children (“BFWC”) leases the building where it operates the San Leandro Shelter¸ a 30-bed homeless shelter located on the grounds of St. Leander Catholic Church in San Leandro, that serves women and children who are homeless or victims of domestic violence; and
WHEREAS, BFWC seeks City’s assistance to undertake certain capital improvements to renovate and repair the San Leandro Shelter, including replacement of the exterior ramp, stairs and entryway landing; rebuilding four bathroom shower stalls and subfloors, including the ADA shower stall; and, replacing the floors in the common area; and
WHEREAS, the City receives funds from the United States Department of Housing and Urban Development under Title I of the Housing and Community Development Act of 1974, as amended (“CDBG”), and will provide CDBG funded loans to qualified local nonprofit organizations, like BFWC, to assist such organizations with capital improvement projects, in conformance and accordance with CDBG and HUD laws and regulations; and
WHEREAS, the City Council has also determined that the improvements to be undertaken by BFWC will serve women and children who are homeless or victims of domestic violence from the San Leandro Community; and
WHEREAS, the City Council desires to provide BFWC with a forgivable loan of CDBG funds in the amount of One Hundred Forty-Three Thousand Seven Hundred Twenty-Five Dollars ($143,725) (the “CDBG Loan”); and
WHEREAS, the CDBG Loan will be for ten years at three percent (3%) interest, but will be forgiven at the end of the loan term if BFWC is not in default on any of the Loan’s covenants, conditions, and requirements; and
WHEREAS, because BFWC leases the Property from Saint Leander’s Church and does not own the Property, the CDBG Loan cannot be secured by a deed of trust and will be an unsecured loan.
NOW THEREFORE, the City Council of the City of San Leandro hereby RESOLVES that:
1. The above recitals are true, correct, and a part of this Resolution.
2. The CDBG Loan is approved and the City Manager is authorized to execute the CDBG Loan Agreement, substantially in the form attached hereto as Exhibit A, after approval as to form by the City Attorney.
5. The City Manager, or his designee, is authorized to use Fiscal Year 2019-20 appropriated funds of $143,725 from CDBG fund account 165-43-135-5240, to execute such documents and to take such other actions necessary to carry out the intent of this Resolution.
6. This Resolution takes effect immediately upon its adoption.