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FINANCIAL STATEMENT Upon execution of the Standard Agreement with the Department, the City will have access to $330,900 in HRP program funds. Matching funds are not required by the program. No funding may be expended or committed through contracts prior to execution of the Standard Agreement. If approved, up to $330,900 would be appropriated to Kottinger Village Park pedestrian path and related improvements which MidPen Housing is required to provide as part of the Kottinger Gardens development. Actual costs for the improvements will be determined once the plans are finalized in coordination between MidPen and the City's Engineering Department. Any unexpended funds may be re-appropriated to another HRP-eligible project, if applicable. All HRP funds are required to be appropriated by April 30, 2018 and spent by June 30, 2018. BACKGROUND The State of California, Department of Housing and Community Development (HCD) issued a Notice of Funding Availability dated October 26, 2015 (NOFA), under its Housing-Related Parks (HRP) Program. The HRP Program provides grant funds to cities and counties for documented housing starts of newly constructed, substantially rehabilitated converted or preserved rental and ownership housing units. In March 2016, City Council authorized submittal of an application to the HRP Program. On June 30th, the City was notified of an award of funds in the amount of $330,900 and is currently awaiting the Standard Agreement, which is expected to be provided by the State in early October. The State requires the City to adopt a resolution to accept the amount of the final funding award. DISCUSSION The City included future upgrades to Kottinger Village Park in the HRP funding application. The upgrades generally included tree replanting, water conservation measures, landscaping improvements, and pedestrian/access path improvements related to the neighboring Kottinger Gardens project. MidPen Housing is coordinating with the City to determine the scope of pedestrian path improvements to improve public access between the new development and Kottinger Village Park. The actual cost of the improvements will depend on the final scope required by the City. Use of the HRP Funds for the required improvements will reduce unanticipated contingency costs for the development of Phase 1, and provide a savings available for the future development of Phase 2. If approved, the Council is asked to authorize a funding agreement between MidPen and the City that would be executed for the cost of the pedestrian path improvements in an amount not to exceed the HRP grant amount of $330,900, contingent upon execution of the Standard Agreement with the State and agreement form approval by the City Manager's and City Attorney's Office. The term of the funding agreement will commence following execution of the Standard Agreement with State and will ending June 30, 2017. Page 2 of 3