Item 68 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washigton Ave.

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Agreements for the Development of the Crossroads at Washington June 21, 2022 Page 11 2 7 6 6 As a result of the continued presence of hazardous substances, which are also hazardous materials as defined in Health and Safety Code section 25260, at the Property, DTSC has concluded that it is reasonably necessary to restrict the use of the Restricted Area, in order to protect present or future human health or safety or the environment, and that the Land Use Covenant is required as part of the DTSC-approved remedy for the Property. DTSC has also concluded that the Property, as remediated and when used in compliance with the Environmental Restrictions of the Land Use Covenant, does not present an unacceptable risk to present and future human health or safety or the environment, which is a vital provision relative to the Project’s future residents. The specific Restrictions and Requirements for the Restricted Area are listed in Section 4 of the Land Use Covenant. The draft Land Use Covenant is attached as Exhibit 12. The final version of the Land Use Covenant will be subject to approval as to form by the City Attorney. Staff anticipates DTSC to finalize the Land Use Covenant after the agenda is published for the June 21, 2022 Housing Authority meeting. Considering that the DTSC is a Department of the State of California and the Land Use Covenant is a standard template agreement used across the State, the revisions that may be recommended by the City and County are limited. Equitable Community Revitalization Grant Agreement In 2021, the State of California adopted Senate Bill 158 referred to as the Cleanup in Vulnerable Communities Initiative, allocating $500 million to expedite the cleanup and beneficial reuse of contaminated properties, with priority given to properties in historically vulnerable and disadvantaged communities. DTSC’s Office of Brownfields Equitable Communities Revitalization Grant (“ECRG”) provides financial assistance to communities via reimbursable grants to investigate and clean up brownfields through a competitive process. DTSC will provide more than $250 million in ECRG grants to incentivize cleanup and investment in disadvantaged areas of the State. The ECRG program: Makes grants for eligible expenses up to $7 million; Focuses on environmental justice areas; and Supports applicants with free technical assistance and other expert guidance. Local governments, nonprofits and federally and non-federally recognized tribes are eligible to apply. As such, the City and the County submitted an ECRG application prior to the deadline on April 8, 2022. A total of 74 applications were received from across the State requesting a total of $112.3 million, less than the amount of funds DTSC made available. However, as of the date of submission of this Staff Report, DTSC is still reviewing the applications and has not made any award announcements. In preparation for award announcements, DTSC has provided a template ECRG Agreement that will be used for all grantees. The template ECRG Agreement is attached as Exhibit 13. The final version of the ECRG Agreement will be subject to approval as to form by the City Attorney. Staff anticipates DTSC to make award announcements after the agenda is published for the June 21, 2022 Housing Authority meeting. Considering