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BACKGROUND In April 2008, the City Council approved PUD-71 for a ten unit townhome project at 3835 Vineyard Avenue. Since that time the project has not proceeded with development. Recently, Habitat for Humanity East Bay contacted the City regarding its interest in the project. While the discussions were preliminary, Habitat for Humanity indicated that any further detailed discussions would involve the City agreeing to submit an application to the HOD for BEGIN grant funding. Because this July 19 meeting is the only City Council meeting prior to the grant's August 10 submittal deadline, staff has determined it appropriate to pursue the grant pending further discussions with Habitat for Humanity. Grant awards will be made in early fall. As currently visualized, Urban Habitat's project would be consistent with the ten for sale townhome units approved in the PUD however, all units would be affordable to low income households (maximum 80% AMI /$73,850 for a family of four) and all owners would be required to contribute to the construction of the project. Habitat for Humanity would take the lead in acquiring all funding sources, project planning, construction and unit sales. The City's role would be primarily financial most likely including a grant from the Lower Income Housing Fund and federal HOME funds in an amount that would be determined after project financials are developed. At this time, Habitat for Humanity is in the process of attempting to secure the site. If secured, staff anticipates that the City would move quickly to make a decision regarding its level of financial contribution, if any and basic project details. However, at this time it is somewhat premature to focus on these details until after the site has been secured. If the site is not secured, the grant will be withdrawn. As indicated in the attached grant information, if a grant was received, the City would be obligated to use the funds on the designated project including down-payment assistance to first time homebuyers. Submitted by: Finance Approved 7r6r/ 4.1n/ Steven Bocian Emily Wagner Nelso Fialho Assistant City Manager Director of Finance City Manager Attachments: 1. Property Location Page 2 of 4