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Conclusion The Axis clinic remodel project is the largest human service capital project in the Tri-Valley at the present time. Local jurisdictions have traditionally provided a high level of support to Axis not only for this project (and related capital improvements to clinic facilities) but for the wide range of medical services that Axis provides to low income residents of the area. The clinic project directly addresses many of the key priorities and findings in the 2011 Tri-Valley Human Services Needs Assessment that was recently adopted by the City.. Further, the project represents another opportunity for regional collaboration based on the success of earlier models such as the Sojourner House homeless shelter acquisition and rehabilitation project. HUD's Section 108 loan program provides a relatively easy way to bring in a larger amount of funding up front (with flexible terms) in order to move key projects forward quickly. Tri-Valley jurisdictions have already been providing funding to Axis at similar levels, and the Section 108 loan provides an opportunity to allocate this funding in a more strategic fashion and at a time when it can ensure implementation of this critical regional project. If approved by the Council, staff will submit the Section 108 loan application to HUD and will continue to work with the other jurisdictions to finalize and execute the PPJ to memorialize the term s of the collaborative loan repayment. Submitted by: Fiscal Review: Approv by: In!jar UU Steven Bocia n Emily Wagner Nelson Fialho Assistant City Manager Finance Director City Manager Attachments: 1.. Axis Community Clinic Background Information 2. Outline of Section 108 Loan Application Format 3. Proposed HUD Section 108 Loan Terms/ Repayment Breakdown 4. Draft Public Participating Jurisdiction (PPJ)Agreement Page 9 of 9