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Home My WebLink AboutRESO 5952f • ORIGINAL RESOLUTION NO. 5952 RESOLUTION OF THE COUNCIL~'l'lf~TY OF PALO ALTO APPROVING THE COMMUNITY DEVELOPMENT BLLCK GRANT PLAN WHEREAS, the Palo Alto Community Development Block Grant (CDBG) Program is entering into a new three-year phase of the Federal program (1982-83, 1983-84, and 1984-85)~ and WHEREAS, the City desires to provide guidelines for making CDBG funding recommendations and decisions and to assist appli- cants in preparing funding proposals during this period; and WHEREAS, the establishment of such guidelines and assistance is all~wable under federal regulations~ NOW, THEREFORE, the Council of the Cit] of Palo Alto does resolve to hereby approve the Conununity Development Block Grant Three-Year Plan (Exhibit 1). INTRODUCED AND PASSED: August 17, 1981 AYES: Bechtel, Eyerly, Fletcher, Herrlerson, Renzel, NOES: None ABSTENTIONS: None ABS ENT : Fazzir10 I Klein, J.,evy, Wi thersp:on AP.PROVED: Mayor , ' ~ -APPROVED AS TO FORM: iJftftt/ltt~ Introduction EXHIBIT l PALO ALTO COMMUNITY DEVELOPMENT BLOCK GRAN!' PLAN NEEDS i STRATEGIES AND FUNDING GOALS AND PROPOSAL SELEGTION CRITERIA The Community Development Block Grant (CDBG) Program is entering into a new three-)·ear phase of the federal program. Over the last seven yea1'.'s of the program, Palo Alto has been allocated approximately $4.2 million for housing and community development projects directly benefiting low and moderate income persons (see Table I). For the 1981-82 Program Year Palo Alto received $762,000, although this level of funding could be reduced in the future. Annually, the City receives 10-15 proposals for funding but this level is expected to increase in the next few years. The CDBG program has provided funds to increase the supply of affordable housing, improve the condition of existing housing, reduce the level of discr1mination in housing, and construct and improve conununity facilities for handicapped/disabled persons, senior citizens, and others. Through the support for these projects and services the CDBG program has improved the quality of life for persons living and working in Paio Alto. The Plan The purpose of this plan is to provide a framework for the Citizen's Advisory Committee> Staff, and City Council in making funding recommendations and decisions on CDBG projects over the next three program years (1982-83, 1983-84, 1984-85). The plan establishes a funding allocation goal of 80% for housing related set ivities, 15% for community facilities a.nd improvements, and 5% for administration. An additional purpose of the Plan is to serve as a guide to prospective applicants in selecting projects and preparing proposals. The Plan is divided into two primary sections. Section One sets forth the major housing and community development needs in Palo Alto that can be addressed by the CDBG Program. Attachment 1 lists the sources of information used in establishing the needs. Specific strategies are suggested to address each need. This Section also establishes a funding goal for the main categories. The plan places emphasis on funding projects directed toward the housing needs of low and moderate income persons living in Palo Alto. Section Two contains a set of criteria to be used in selecting proposals for funding. SECIION ONE Needs, Strategies, and Funding Goals During the first seven years of the CDBG Program, housin~ has been the top priority for fundin~. Allocations for housing related projects include housing supply, rehabilitation, discrimination, and emergency housing (see Table I). Of the $4.2 million of CDBG funtls allocated to the program during the first seven years, $3,6 million or 86%, has been allocated to housing related projects. In the seven years of the program, the a~ount of funds allocated to Housing has varied from 76% to 100%. This high level of commitment to housing should continue. The recently adopt~~ Palo Alto Comprehensive Plan emphasizes the critic~l housing problems in the City. Two of the major objectives included tn the Housing Elem~nt are to maintain a diversity of housing opportunities in Palo Alto and to increase the supply of housing, especially for persons of low and rroderate income. This emphasis is consistent with the needs identified this year by the Human ·Relations Commission in making their recommendations for Human Service Funding. These needs identify support services to single-parent households, support services to the disabled, and housing services to families, as the highest priority nee~s. The Department of Housing and Urban Development (HUD), the State Department of Housing and Community Development, and the Association of Bay Area Governments CABAG), each have commended the City on its high level of CDBG commitment to housing and encouraged the City to ~ontinue this commitment. The second priority for funding is for community-wide facilities and improvements. During the first seven years cf the program, over $510,000 has been allo.cated to this category, which is 12% of the total allocation (see Table I). Typical community-wide facilities and improvements include construction or rehabilitation of buildings providing services for handicapped/disabled persons and senior cit1zens. There is a continuing need to assist community organizations in making capital improvements to their facilities. This need is especially important with respect to Palo Alto's senior population, physically and/or developmentally disabled population, and child care eligible population. An increase in Palo Alto's Senior population and female head-of-household population from 1970 -1975 was identified in the Human Services Funding Study. The final category of funding is for the administration of the program. Administration funds have been allocated for the last three years and have averaged 4% ($30,000) of the total allocation for each of those years. These funds are used to plan for and implement the program. A minimal amount of funds may have to ~ set aside out of the total allocation for the CDBG Contingency account if the existing account becomes depleted. This amount, at the maximum, would be 3-5% of the CDBG allocation. Funding Goals The plan establishes goals for allocating CDBG funds among the three main categories. The funding goals are not intended to be rigid, but rather serve as guidelines consistent with the need. The funding goals are: Housing Community Facilities & Improvements Administration 80% of CDBG Allocation 15% of CDBG Allocation 5% of CDBG Allocation Outlined below are the specific needs, followed by the strategies of the three main categories. The individual need categories are nol in any order or priority. - -2- .. I. HOUSING (Allocation Goal: 80% of CDBG Allocat.ion) Housing Supply Incr~ase the number of housing units affordable to low and 11Dderate ~ncome persons, including rental units for families, senior citizens, and handicapped/disabled persons. l. Acquire suitable parcels through landbanking. 2. Site improvements for assisted housing. 3. Acquire housing to be rented to low and moderate income persons. 4. Support housing development corporations and other organizations working tow&~<l th~ ptovisi~~ of ~ffordahle housing. Rou~ing Rehabilitation Services & Financing -Owner Occupied A38ist lower incoUE households in meeting the high cost of rehabilitation financing which limits their ability to make necessary home improvements and repairs without financial assistance. There is a special need to assist senior citizens and single-parent homeowners with rehabilitation services and financing. 1. Provide belo~-market-rate home rehabilitation financing to low and moderate income honeowners. 2. Provide home rehabilitation serv1c~s to low and ~1derate income homeowners. Housing Rehabilitation Services & Financing -Multi-Family Housing Assist sponsers of non-profit ana subsidized rental housing developments for low and moderate income persons with necessary maintenance and repair costs that cannot be reasonably paid for out of their ongoing budget. Palo Alto currently has over 800 assisted housing units. l. Provide below-market-rate financing or grants for rehabilitation, repair, or improvement of existing multi-family rental housing for low and moderate incotre persons. 2. Provide rehabilitation services to eligible low and m:>derate income housing developments. Housing Discrimination and Fair Housing Services Reduce or eliminate discrimination in housing based on race, religion, sex, family size and status, and disabilities. Education programs, counseling, referral, and legal assistance services are necessary. 1. Fund fair housing services Which assist persons who have experienced discrimination in housing. -3- 2. Fund housing programs providing tenant/landlord and housing services to persons ~xperiencing housing conflicts. Emergency Housing Acquisition and Improvement Aesist sponsers of temporary or interim housing facilities serving the needs of low and m:>derate income battered persons, distressed juveniles, hantlicapped/disabled persons, and others serving a variety of individuals. l. Fund agencies and oTganizations seeking to acquil'e elbergency housing facilities. 2. Provide below-.arket-rate financing or g~ants for rehabilitation of emergency housing. 3. Provide rehabilitation St?rvices to eligible emergency housing projects. 4. Provide relocation assistance to persons displaced from housing. II. COMMUNITY-WIDE FAC lLIT IES & IMPROVEMENI' S (Allocation Goal: 15% of CDBG Allocation) Facilities for the Handicapped/Disabled Persons Increase the accessibility of facilities serving handicapped/disabled persons, in both public and private developments. Additionally, assist organigations in providing new or improved facilities to serve the specific needs of the handicapped/disabled population in the community. 1. Provide funds to remove architectural barriers from buildings and major intersections th~oughout the City. 2. Provide funds to aid in the construction or acquisition of facilities oerving handicapped/disabled persons. 3. Provide below-market-rate financing or grants to improve existing facilities serving handicapped/disabled persons. 4. Provide rehabilitation services to eligible facilities serving the handicapped/disabled persons. Child Care Facilities Assist non-prof it and community based organizations in providing adequate child care facilities serving lower-income families. 1. Provide funds for the construction or acquisition of child care facilities serving low and moderate income persons. 2. Provide below-market-rate financing or grants to improve existing child care facilities. 3. Provide rehabilitation services to eligible child care facilities. -4- III. Administration (Allocation Goal: 5% of CDBG Allucation) Provide necessary funds to pay for planning and implementation of the CDBG program, and to pay for necessary overhead costs. SECTION TWO Proposal Selection Criteria Proposals for CDBG funding are evaluated according to the following set of criteria. Each of the first five items are not weighted or prioritized, although Item l must first be satisfied before-further proposal review. The last criteria is an overall evaluation to determine if the recommended program satisfies the established funding goals. 1. Proposal Eligibility The proposal must be eligible according to Federal regulations established for the CDBG program (Staff and Dept. of Housing & Urban Development decision). 2. Need Verification --There should be reliable data that verifies the need f9r the project or activity proposed. 3. Feasibility The applicant must have the capability to implement the project or activity in a timely manner with the available resources. 4. Cost/Benefit Analysis There should be evidence that the impact upon identified need of the project or activity justifies the potential cost incurred. S. Long-Range Funding Implications There should be information available which indicates the long range implications of funding a new activity or increasing the level of funding for an existing activity. 6. Overall Program Evaluation The recommended CDBG Program should meet the established needs and funding goals included in the Needs, Strategies and Funding Goals section of this plan. -s- ATTACHMENI' 1 Sources of Information Used in Developing Needs, Strategies, and Funding Goals Statement Palo Alto Comprehensive Plan Palo Alto Citizens Advisory Committee Comments on Needs/Prioriti~s Palo Alto CDBG Applications (Three Year Plan and Housing Assistance Plan) Palo Alto Human Services Funding and Needs Analysis CDBC Program Federal Statuatory Provisions CDBG Program Federal Regulations State Department of HCD Comments on Housing Element and CDBG Application Association of Bay Area Governments Comments on CDBG Application Department of Housing & Urban Development Comments on CDBG Application 1970 U.S. Census, 1975 Special Census -6- ------------------------------------------------.... TABLE l CD!G Allocation• ($) (Adjusted for Contingency end Inter-Project Transfers, Doe1 Not Include Progr•m I~come) Througl1 1981-82 Progra• Year (Mot Fully Spent) 7S-76 76-:7 . 77-78 78-79 79-80 80-81 .,SIMG Supplv $2GO,OOO Landbanking $135,000 $248,000 Rental Housing Acquisition Progr .. $253,000 150,000 50,000 Palo Alto Housing Corp. -Adaidiltration 31,000 42,500 Shared Rousing Project 1-ebabilitation--Owner-Occupied Housing Improvement Prograa $155,000 $280,000 210,000 300,000 200,000 200,000 Senior Home Repair 20,000 20,000 10,000 Rehabilitation-Hulti-FamilI Stevenson House -Rot Water 80,000 S2,308 Stevenson Houae Repairs l~,000 ColoradG Psrk Improve91ent1 Non-Profit Facility Rehabilitation Housing Discrimination 6 Fair Rousin1 Servicec Tenant Landlord Infonaation 6,169 6,600 e Hidpenincula Citizen• for Fair Hou•ing 6.SOO 8,000 Ranicapp~d Hou1ing Di1criaination -SALA Emergency Rousing Relocation 64,000 36,300 10,962 Caravan Ht>use 26,818 Harvey Rouse 16,375 Project SAFI 84,500 CaH -SAY sua-tarAL $15~0V (l )- $344,000 (1001> $4461300 06%) $663~962 (as%) $6001977 (sot) $707,793 {871) -7- Page l af 2 (Mot Fully Spent) 01-82 Total $200,0(.10 $ 783,000 133 ,ono 586,000 54,200 127,700 lC,000 10,000 200,000 l,545,000 10,000 60,000 132,308 15,000 24,000 24,000 25,000 25,000 7,SOO 20,269 8,000 22,jQO 8,800 l!,800 111,262 26,818 16,375 @4,500 25,000 25,000 $705,500 09U $31623,532 CD8G Altoc&t ion 75-76 7f,-77 78-79 COMMutUTYWID! PACILIT!S It IHPllOVEMEHTS *ltoo.-Profit Facility lehabilitation Facilities for Randic•ft!d CIJi.-Architectural Barrier• $ 37,200 $ 325 CAR-Work Activity Facility Facilities for Senior• Senior Center Developaent 100,000 111,951 Senior Day Care Child Care Facilitie1 Ventura Day Care SU8-'fOl'AL $137i200 (24%) $118!176 (l 1) AllMlllI srur IOlt SUl-'fOfAL Tart.LS $155,000 $3441000 $'5831500 $782.238 (Wot Ful 1y Spent) 79-80 80-81 $ 40,000 G ~o.ooo 90,000 11,9SU $130~ -{l ) $ 671950 (8%} 2hit6 3(·~io % $753,543 $813,J6l h1e 2 of 2 {Wot Pulty S,.e11.t} 91 .. et $ 25',000 35,000 $ 601000 (n) 3~~ $796,500 Total $ 25,000 37,52S 90,000 zv. 9''H 90,000 52,950 $ 513.z...426 90,986 $4,227,944 *Thia project will a~nd fund& ia~. Bou•ing and C~nity Facilitiea & lwprowe.enta Cate1oriea. The $50,COO alloeatioa baa been diaplayed here aa $25,000 for each cateeory. TOl'AL ALLOCATION (1975'-82) $4,227,944 .. Adainittration coat• during iaitial four year• of progr .. w.re paid out of non-COIG fuada. for the tbr .. ,eare .ti.ere CDIC fund• were -4. tM fund• average 41 of grant. -8- Routing CoilMlnlity Fecilite~ Ad..iniatration~ $3,6230532 {961) 513,426 (12%) 90,986 (?%) -·