COMBINED NOTICE OF FINDING OF NO SIGNIFICANT IMPACT (FONSI) AND INTENT TO REQUEST RELEASE OF FUNDS (NOI/RROF) October 22, 2025 CITY OF MODESTO 1010 Tenth Street Modesto, CA 95354 (209) 577-5211 TO ALL INTERESTED AGENCIES, GROUPS AND PERSONS This Notice shall satisfy the above-cited two separate but related procedural notification requirements for activities to be undertaken by the City of Modesto. REQUEST FOR RELEASE OF FUNDS On or about November 11, 2025, the City of Modesto will submit a request to the U.S. Department of Housing and Urban Development (HUD) for the release of $4,000,000 in Community Block Grant Development (CDBG) funds under the Housing and Community Development (HCD) Act of 1974, as amended, to undertake a project known as El Capitan Motel Project for predevelopment, acquisition, and development. The City of Modesto is looking to fund the $4,000,000 in NSP program income converted to CDBG funding. Total project costs are estimated at roughly $24,000,000, funded by California Department of Housing and Community Development Homekey, Stanislaus Community System of Care Homeless Housing, Assistance and Prevention, Stanislaus County Behavioral Health and Recovery Services Behavioral Health Services Act, and capital contributions, in addition to the CDBG funding. The City of Modesto is performing an Environmental Review for all activities under the project inclusive of predevelopment and construction located on the approximate .6-acre lot identified by the Stanislaus County Assessor as APN 109-008-004 Modesto, CA 95354. Known as El Capitan Motel, located at 1121 Needham Street Modesto, CA 95354. The proposed project is a 49-unit motel that will provide 48 units of permanent supportive housing as well as a manager’s unit. El Capitan Motel is an existing 16,732 square foot, 2-story motel with approximately 20-40 parking spaces. The motel was constructed in 1964. The ultimate buildout will not increase the square footage of the existing building. Proposed renovations include: Accessibility upgrades including parking, signage, ramp improvements along accessible path of travel from public right of way, the addition of an accessible path of travel to the trash enclosure, and other improvements as necessary for a public office including the addition of an ADA restroom. Site improvements including striping, seal coating and patching of asphalt, installation of EV- ready infrastructure, additional site lighting, and updated landscaping which will include converting the pool area into a common area. The current trash enclosure will be moved within the site the new pick-up location will be on the Nellie Avenue. Side- walk upgrades to conform to ADA standards will be completed including curb cuts. Offsite improvements including sewer and water service improvements, cap-off and abandonment and tie-ins at Needham, Nellie and the alley way. Including asphalt removal, trenching, installation of new lines, to include tie -ins to existing mains and improvement of main sizes and integrity as needed to service the site. The road will then be fully repaired including striping. Building exterior alterations including re-roofing, as appropriate, solar-ready infrastructure, painting all exterior trim, fascia and doors, replacing all exterior doors and hardware, redashing stucco, and replacing all windows, and tenant mailboxes. Building interior alterations including the addition of common restrooms and laundry, directional signage, fire sprinklers, data drops for each unit, office, and manager’s unit, and a redesign of the existing manager’s office for property management offices and a conference room. Interior work in units including new flooring, replacement of all HVAC units, exhaust fans, ducting, PTACs, ceilings and wall insulation, updating bathroom fixtures, addition lighting, replacement of all interior millwork, new cabinetry, appliances, vertical blinds, the replacement all plumbing fixtures; toilets, faucets, showers etc. and the addition of plumbing for new kitchenettes, painting walls/trims, replacing all interior doors and hardware, repairing/adding soffits, and life and safety upgrades including new smoke detectors and CO2 alarms. FINDING OF NO SIGNIFICANT IMPACT The City of Modesto has determined that the project will have no significant impact on the human environment. Therefore, an Environmental Impact Statement under the National Environmental Policy Act (NEPA) of 1969 is not required. Additional project information is contained in the Environmental Review Record (ERR) on file at Community and Economic Development Division 1010 Tenth Street, Suite 3100, Modesto CA 95354, and may be examined or copied weekdays (excluding holidays) from 8:30 a.m. to 4:30 p.m. City of Modesto offices remain open to the public by appointment only, please contact (209) 577-5334 to schedule an appointment. The ERR will be made available to the public for review either electronically or by U.S. mail. Please submit your request by U.S. mail to Community and Economic Development Division 1010 Tenth Street, Suite 3100, Modesto CA 95354 or by email to tcole@modestogov. com. The ERR can be accessed online at the following website https://cityofmodesto.box.com/s/rb1s9eo103b16haa6ru1timsexeh61xn. PUBLIC COMMENTS Any individual, group, or agency may submit written comments on the ERR to the City of Modesto Community and Economic Development Division 1010 Tenth Street, Suite 3100, Modesto CA 95354, email option to tcole@modestogov.com . All comments received by November 10, 2025, will be considered by the City of Modesto prior to authorizing submission of a request for release of funds. Commenters should specify which part of this Notice they are addressing. RELEASE OF FUNDS The City of Modesto certifies to HUD that Jessica Hill in her capacity as Certifying Officer consents to accept the jurisdiction of the Federal Courts if an action is brought to enforce responsibilities in relation to the environmental review process and that these responsibilities have been satisfied. HUD’s approval of the certification satisfies its responsibilities under NEPA and related laws and authorities and allows the City of Modesto to use Program funds. OBJECTIONS TO RELEASE OF FUNDS HUD will accept objections to its release of funds and the City of Modesto’s certification for a period of fifteen (15) days following the anticipated submission date or its actual receipt of the request (whichever is later) only if it is on one of the following bases: (a) the certification was not executed by the Certifying Officer of the City of Modesto or other officer of the City of Modesto approved by HUD; (b) the City of Modesto has omitted a step or failed to make a decision or finding required by HUD regulations at 24 CFR Part 58; (c) the grant recipient or other participants in the project have committed funds or incurred costs not authorized by 24 CFR Part 58 before approval of a release of funds by HUD; or (d) another Federal agency acting pursuant to 40 CFR Part 1504 has submitted a written finding that the project is unsatisfactory from the standpoint of environmental quality. Objections must be prepared and submitted in accordance with the required procedures (24 CFR Part 58, Sec. 58.76) and shall be addressed to HUD San Francisco Field Office at One Sansome Street, Suite 1200, San Francisco, CA 94014 or by email at RROFSFRO@hud.gov. Potential objectors should contact HUD to verify the actual last day of the objection period. Jessica Hill Certifying Officer