REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department THROUGH: PHILIP SKEI, Assistant Director Planning and Development Department BY: BRANDON SISK, Senior Management Analyst Community Development Division SUBJECT ..Title ***RESOLUTION - Authorizing the City to accept $20 million in U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee funds for the development of a Senior Activity Center; and authorizing the City Manager or designee to sign all necessary implementing documents required by HUD (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends the City Council allow the City to accept $20 million in HUD Section 108 Loan Guarantee funds for the development of the Senior Activity Center. EXECUTIVE SUMMARY The City requires explicit authorization by the City Council to accept $20 million in HUD Section 108 Loan Guarantee funds for the development of the Senior Activity Center. The application for funds was authorized by City Council through Resolution 2023-239. BACKGROUND On September 14, 2023, the City Council approved Substantial Amendment 2023-01 to the 2023-2024 Annual Action Plan through Resolution 2023-239 which enabled the City to seek a HUD Section 108 Loan Guarantee to secure $20 million in CDBG funding for the construction of a Senior Activity Center at 4343 N. Blackstone Avenue. HUD approved the City's application on October 5, 2023. To receive the funds, the City needs Council's authorization to accept the $20 million in HUD Section 108 Loan Guarantee funding. Once approved, staff will submit the required documents to HUD to advance the funds necessary to award a construction agreement for the development of the Senior Activity Center which is tentatively scheduled to go to Council before November 2024. ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378 and is exempt for NEPA purposes pursuant to 24 CFR 58.34. LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT Adoption of this Resolution will enable the City to accept $20 million in Section 108 Loan funds for the development of a Senior Activity Center. Attachment: Resolution - Section 108 Loan Acceptance