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HomeMy WebLinkAboutStaff Report 209-09TO: HONORABLE CITY COUNCIL ATTENTION: FINANCE COMMITTEE FROM: CITY MANAGER DATE: BUDGET FY 2010 -FY 2011 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT APRIL 21, 2009 CMR: 209:09 SUBJECT: Proposed Fiscal Year 2009-2010 Community Development Block Grant (CDBG) Funding Allocations and 2009-2010 Draft Action Plan RECOMMENDATIONS Staff and the CDBG Citizens Advisory Committee (CAC) recommend that the Finance Committee recommend that the City Council: 1. Allocate CDBG funding as recommended by staff in the draft 2009/10 Action Plan. 2. Authorize staff to submit the 2009/10 Action Plan to the Department of Housing and Urban Development (HUD) by the May 15, 2009 deadline. 3. Authorize the City Manager, on behalf of the City, to execute the 2009/10 application and Action Plan for CDBG funds and any other necessary documents concerning the application, and to otherwise bind the City with respect to the application and commitment of funds. BACKGROUND Consolidated Plan The 2005-2010 Consolidated Plan, adopted by Council on May 9, 2005 and amended on May 7, 2007, is a 5 -year strategic plan of action that addresses priority housing and community development needs. It also sets specific goals for attaining identified objectives. Each year, an Annual Action Plan is prepared to identify specific projects to be funded to implement the Consolidated Plan. The Consolidated Plan and the Annual Action Plan updates are required by HUD in order for the City to receive federal funding from programs such as the Community Development Block Grant (CDBG) or HOME Investment Partnership Act. The goal for the 2005-2010 five-year period is to provide 125 units of permanent, affordable housing. Palo Alto's CDBG program continues to be directed toward: expanding and maintaining the affordable housing supply; promoting housing opportunities and choices; maintaining and CMR:209:09 1 of 8 improving community facilities; and providing supportive services for targeted low-income groups, including persons who are homeless, persons with disabilities, the elderly, and other special needs groups. All of the proposed projects for CDBG funding for fiscal year 2009/10 address the priority housing and supportive service needs identified in the adopted Consolidated Plan. CDBG Regulations The City of Palo Alto receives funds annually from HUD as an entitlement city under the CDBG Program, authorized by Title I of the Housing and Community Development Act of 1974 (the Act) as amended. The primary objective of the Act is "the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income." HUD regulations require that all activities must meet one of the three national objectives of the CDBG Program: ➢ Benefit low- and very -low-income persons; ➢ Aid in the prevention or elimination of slums or blight; or ➢ Meet other community development needs having a particular urgency, or posing a serious and immediate threat to the health or welfare of the community. Palo Alto has historically expended all of its CDBG funds on projects benefiting low- and very - low -income persons. The City has three primary CDBG program activity areas: 1) Public Services: Social service activities that benefit low-income persons. The maximum amount that can be expended under this category is 15 percent of the grant allocation and 15 percent of the program income for the previous year. For fiscal year 2009/10, the maximum available for public services is $108,250. 2) Planning and Administration: This category is used to reimburse for fair housing activities, CDBG program management, oversight and coordination, environmental reviews, and CDBG-related planning activities. Federal regulations limit the amount that can be spent in this category to 20 percent of the grant and 20 percent of the estimated program income for the following year. For fiscal year 2009/10, funding is limited to a maximum of $144,200. The City's reimbursement for the cost of administering the CDBG program is limited by this cap. Although the actual cost of administering the program is higher than the recommended funding allocation, this recommendation is the maximum reimbursement allowed given this year's grant allocation. The balance of CDBG administrative costs, approximately $30,000, is charged to the City's General Fund. 3) Capital Projects: Capital improvement activities such as housing land acquisition, purchase of existing rental housing, rehabilitation, accessibility, and public improvements are the primary focus of the City's CDBG program. There are no funding limitations in this category. CMR:209:09 2 of 8 CDBG Applications Applications for the 2009/11 two-year funding period were mailed to area housing and human service providers on October 1, 2008 and posted on the City's website. A notice announcing the availability of applications for 2009/10 and 2010/11 CDBG funding was published in the Palo Alto Weekly on October 3, 2008. A proposal -writing workshop was conducted on November 6, 2008 to assist applicants with program regulations and project eligibility questions. The completed applications were due December 5, 2008. The City received 11 applications for 2009/10 funding totaling $939,204. Eleven (11) applications were received for 2010/11 funding totaling $705,187. A pre -award application (2008/09) for funding from the 2009/10 grant cycle was approved by City Council in March 2009. Citizen Participation The City follows a Citizen Participation Plan to encourage public participation in the CDBG allocation and assessment process. The Citizen Participation Plan calls for a seven -member Citizens Advisory Committee (CAC), six of whom are selected by the Mayor. One slot on the CAC is reserved for a member of the City's Human Relations Commission (HRC). Members of this year's CAC were: Olana Kahn (HRC Liaison), Susie Brain, Terry Godfrey, Bruce Grimes, Kathryn Morton, Karen Sundback, and Richard Schoelerman (who was unable to attend). Terry Godfrey was selected by the Committee as spokesperson. The CAC met on five occasions in January and February 2009 to review and finalize those funding recommendations. An amendment to the 2008/09 Action Plan was also discussed at these meetings. Commitment of Funds HUD regulations require that CDBG funds be expended in a timely manner. The regulatory requirement is that no more than 1.5 times a jurisdiction's annual entitlement grant amount may remain in the letter of credit 60 days prior to the end of the program year. In an effort to reduce the backlog of unspent CDBG funds, HUD employs monetary sanctions against jurisdictions that exceed the regulatory standard. For this reason, all funding applications were scrutinized to insure the readiness of the program or project to move forward and expend funds in a timely manner. DISCUSSION 2009/10 Funds Available for Allocation The total amount available for allocation in fiscal year 2009/10 is $802,259. The City's 2009/10 CDBG grant is estimated as $656,000, a decrease of approximately three percent over the prior year's grant of $676,148. (At the date of this writing, HUD has not released the actual grant amount.) There are $959 in funds remaining from previous projects that are being reallocated to new projects. The City will also be receiving approximately $80,300 in loan repayments from the Sheridan Apartments ($50,000) and Palo Alto Gardens ($30,300). An additional $5,000 in program income is estimated to come from the City's Housing Improvement Program, an older residential rehabilitation program that is no longer operational but continues to generate income. Lastly, the Palo Alto Housing Corporation also makes annual interest payments on various properties throughout the City acquired or improved with CDBG funds estimated at $60,000. The estimated loan repayment amounts are included in the total funds available for allocation. CMR:209:09 3 of 8 In summary: $656,000 Estimated FY 2008/09 CDBG entitlement grant from HUD $ 959 Reallocation of other previous funds $ 5,000 Estimated program income for 2009/10 from the City's Housing Improvement Program (HIP), a single-family residential rehabilitation program that is no longer operational $ 60,000 Estimated program income for 2009/10 from the Palo Alto Housing Corporation that is generated when rental income exceeds expenses on specific properties acquired or rehabilitated with CDBG funds $ 50,000 Estimated Sheridan Apartments loan repayment $ 30,300 Estimated Palo Alto Gardens loan repayment $802,259 TOTAL AVAILABLE FOR ALLOCATION The total of requests for funding was $939,204 for the 2009/10 grant cycle. The City received 11 applications for funding from outside organizations totaling $639,204 for FY 2009/10. In addition, an amendment to the 2008/09 Action Plan was approved and Ordinance No. 5031 was approved March 2, 2009, awarding the Tree House project, a Palo Alto Housing Corporation housing project for low and very -low income Palo Alto residents, a pre -award of $300,000, to be distributed from the 2009/10 CDBG grant. FY 2009/10 - Funding Recommendations The following is a description of individual funding recommendations from staff and the CAC for the three primary CDBG program activity areas. Public Service The chart on the following page shows the applications that were received accompanied by the CAC and staff funding recommendations. For public service requests, the staff and CAC recommend allocation of the same dollar levels as received for the prior year grant cycle 2008/09 to all the applicants except for Emergency Housing Consortium (EHC) and Catholic Charities. Catholic Charities requested a reduced amount from the prior year's funding, funding was not recommended for EHC which is recommended because staff and the CAC had concerns regarding the organization's financial and administrative expertise in addition to questioning the amount of actual services provided for north Santa Clara County residents. Instead, the CAC and staff recommended funding for a program not previously funded, Support Network for Battered Women that provides emergency and temporary housing and domestic violence service for adults and children in Palo Alto for the amount of $8,250. It should be noted that changes in the allocations might be necessary in the event that the City's entitlement grant is increased or decreased when the President signs the actual federal budget for the 2009/10 fiscal year. CMR:209:09 4 of 8 FUNDING RECOMMENDATIONS FOR FISCAL YEAR 2009-2010 FUNDING RECOMMENDATIONS" APPLICANT AGENCY 2008/2009 FUNDING 2009/2010 FUNDING REQUEST CAC/ STAFF RECOMMEN- DATIONS PUBLIC SERVICES 1. Catholic Charities Long -Term Care Ombudsman 7,800 5,000 5,000 2. InnVision Opportunity Center 30,000 50,000 30,000 3. InnVision/Clara-Mateo Alliance Emergency Shelter for individuals and children 35,000 50,000 35,000 4. Emergency Housing Consortium Emergency Shelter for singles and families 7,500 7,500 -0- 5. Palo Alto Housing Corporation SRO Resident Support Services 30,000 47,420 30,000 6. Support Network for Battered Women Domestic Violence Services -0- 20,000 8,250 Emergency Housing Consortium Off the Streets Program 7,500 -0- -0- Shelter Network Haven Family House 8,500 -0- -0- Total Public Services (Cap $108,250) 126,3002 179,920 108,250 FAIR HOUSING/ADMINISTRATION 7. Project Sentinel Fair Housing Services 26,800 30,725 30,725 8. City of Palo Alto Program Administration 121,429 175,359 113,475 Total Administration (Cap $144,200) 148,229 206,084 144,200 CAPITAL PROJECTS 9. Stevenson House Radiant Heating Repair 83,200 83,200 10. Lytton Gardens Bathtub Accessibility Conversions 110,000 110,000 11. Avenidas Home Repair and Accessibility Services 60,000 56,609 Sub -Total Capital 253,200 249,809 12. Palo Alto Housing Corporation 488 W. Charleston Road Housing Project 1,538,577 300,000 300,0003 1 Subject to change if funding is increased or decreased upon Presidential review of the budget. 2 2008/09 Public Service funding totaled $126,300. Several agencies that received funding last fiscal year did not submit applications for the 2009/10 fiscal year. 3 Approved by Council March 2, 2009, as a pre -award CMR:209:09 5 of 8 FUNDING RECOMMENDATIONS' APPLICANT AGENCY 2008/2009 FUNDING 2009/2010 FUNDING REQUEST CAC/ STAFF RECOMMEN- DATIONS Total Capital 1,538,577 553,200 549,809 TOTAL 1,813,106 939,204 802,259 Capital Projects The following capital projects were considered for the 2009/10 fiscal year: • Lytton Gardens' bathtub accessibility conversions • Stevenson House's radiant heating repair, • Avenidas home repair and accessibility services, and • Palo Alto Housing Corporation's 488 West Charleston Road Housing Project, the Tree House Project, (approved as a pre -award March 2, 2009 by City Council). Palo Alto City Council approved the $300,000 pre -award funding request by Palo Alto Housing Corporation as an amendment to the 2008/09 Action Plan on March 2, 2009. Funds were withdrawn from the City's Residential Housing Fund in March 2009 and will be reimbursed in fiscal year 2009/10 from CDBG funds. The project was also able to draw down all of the CDBG funds awarded for fiscal year 2008/09, which allowed the City to meet HUD's standards for the timely expenditure of CDBG funds prior to the April 30, 2009 deadline. CAC and staff recommend that Lytton Gardens and Stevenson House be funded at their full requests, $110,000 and $83,200 respectively. A program new to Palo Alto, Avenidas home repair and accessibility services, requested $60,000 for fiscal year 2009/10. CAC and staff recommend that the remainder of funds available for capital projects, $56,609, be funded to Avenidas. Planning and Administration The City of Palo Alto Planning Department requested $175,359 for administration of the CDBG program for fiscal year 2009/10. The fair housing service provider, Project Sentinel, requested $30,725. The public administration cap limits CDBG funds allocated for the fiscal year 2009/10 to $144,200. Staff and CAC recommend the City receive $113,475 and Project Sentinel receive $30,725 for a total of $144,200. American Recovery and Reinvestment Act of 2009 The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama on February 17, 2009, as an effort to jumpstart the economy and create or save jobs. It includes, among other things, measures to invest in homes and communities, and protest those in greatest need. The Recovery Act includes $13.5 billion for project and programs administered by HUD, including $1 billion in one-time stimulus CDBG funding. The City expects to receive an additional $183,477 in CDBG stimulus money in fiscal year 2009/10. Once HUD has provided specific guidance on the regulations governing the stimulus money, the City will consider additional projects to be funded within the fiscal year 2009/10 grant cycle. This will require an amendment to the 2009/10 Action Plan. CMR:209:09 6 of 8 FY 2010/11 - Funding Recommendations The two-year funding process provides the opportunity for City and non-profit staff to undertake longer term strategic planning and maximize available funding resources. FY 2010/11 applications from organizations seeking funding in the second year of the two-year cycle also were submitted on December 5, 2008, and were evaluated by the CAC and staff. At this time, the Finance Committee is asked to only review and approve tentative allocations for fiscal year 2010/11 since the Council will be required to adopt a 2010/11 Action Plan next year. At that time, the Council may adjust the tentative allocations depending on the actual funds available. The amount of the City's CDBG allocation in FY 2010/11 is uncertain because of federal budget fluctuations and the chance of re-evaluation of the CDBG allocation formula. If a new formula change is adopted, CDBG grant funding may be targeted to communities with higher poverty levels. Based on this information, the tentative funding recommendations by the CAC and staff assume that the City's allocation will not increase. Funding requests for public services were similar to those submitted in FY 2009/10 with the exception of the Palo Alto Housing Corporation (PAHC). PAHC SRO resident support services is requesting an increase in funding from $47,420 for FY 2009/10 to $50,870 for FY 2010/11. Funding of CDBG administration and fair housing is also recommended at the FY 2009/10 level, with a proportional decrease or increase should the funding allocation change. Funding requests for fiscal year 2010/11 capital projects are substantially different from fiscal year 2009/10 requests. Stevenson House is requesting $197,500 for paving and sidewalk improvements relating to underground sewer line improvements. Avenidas has requested $60,000 (the same amount as the 2009/10 funding request) for home repair and accessibility services for seniors. Second Harvest has requested $50,000 for site acquisition associated with finding a new food warehouse distribution center. CAC and staff reviewed the above proposals but didn't make a recommendation since the total amount requested for fiscal year 2010/11 capital projects is $307,500, an amount under what potentially may be available and a second request for applications may be necessary relating to the 2010/11 funding cycle. TIMELINE Funding recommendations made by the Finance Committee will be forwarded to the City Council for review and approval at a public hearing scheduled for May 4, 2009. Subsequently, the Annual Action Plan and Consolidated Plan update will be submitted to HUD to meet the May 15, 2009 deadline, pending Council approval. POLICY IMPLICATIONS All of the applications recommended for funding in fiscal year 2009/10 are consistent with the priorities established in the City's adopted Consolidated Plan for the period 2005 to 2010. They are also consistent with the housing programs and policies in the adopted Comprehensive Plan. CMR:209:09 7 of 8 ENVIRONMENTAL REVIEW For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting in itself is not a project. HUD environmental regulations for the CDBG program are contained in 24 Code of Federal Regulations (CFR) 58 "Environmental Review Procedures for Title I Community Development Block Grant Programs." The regulations require that entitlement jurisdictions assume the responsibility for environmental review and decision -making under NEPA. Prior to the commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or assessments and certify that the review procedures under CEQA, HUD and NEPA regulations have been satisfied for each particular project. ATTACHMENTS Attachment A: Staff and CAC recommendations for FY 2009/10 CDBG Funding Attachment B: 2009/10 Draft Annual Action Plan PREPARED BY: Kath Marx, P� - CDBG DEPARTMENT HEAD: vki&L„,„ Curtis Williams, Interim Director Planning and Community Environment CITY MANAGER APPROVAL: Ja �• ene Cit, ager cc: CDBG Citizens Advisory Committee Members 2009/10 CDBG Applicant Agencies CMR:209:09 8 of 8 ATTACHMENT A STAFF AND CITIZENS ADVISORY COMMITTEE RECOMMENDATIONS FOR FISCAL YEAR 2009/10 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING PUBLIC SERVICE APPLICATIONS 1. Catholic Charities — Long -Term Care Ombudsman 2625 Zanker Road, Suite 200, San Jose, CA 95134-2107 Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $5,000 $7,800 $5,000 FY 10/11 $5,000 Proposal: The agency provides confidential advocacy and complaint investigation services to the approximately 800 residents in Palo Alto's licensed long-term care facilities. Program beneficiaries are the frail, chronically ill, primarily elderly residents in Palo Alto's licensed skilled nursing and residential care facilities. Agency staff and trained community volunteer ombudsmen visit residents on a regular basis and as special circumstances dictate (ie. in response to a complaint). Agency staff and volunteers investigate complaints, including allegations of abuse and neglect, seek fair resolution to problems, and promote residents' rights for quality care and quality of life in the long-term care setting. Priority Need: Supportive services for low and very low income persons. Discussion: Current contract objectives are being met. The Ombudsman Program services are not duplicated by any other agency and provide an important presence in long-term care facilities. Local volunteers are utilized to provide the majority of site visits. The Ombudsman Program has exceeded their targeted goal of serving 583 persons by mid fiscal year 2008/09 and anticipates serving at the same rate for the rest of the fiscal year. In fiscal year 2009/10 the agency proposes contacting a minimum of 200 individuals and investigating a minimum of 20 complaints. 2. InnVision the Way Home — Opportunity Services Center 33 Encina Way, Palo Alto, CA 94301 Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $50,000 $30,000 $30,000 FY 10/11 $50,000 Proposal: The agency proposes to provide basic survival services to the local homeless population. Services include a food, clothing, toiletries, phone, mail, messages, transportation assistance, and referrals to other agencies. Social worker/case managers are available to conduct needs assessments and to formulate and monitor individual case management plans. 1 Priority Need: Prevention of homelessness Discussion: Current contract objectives are being met. Fiscal year 2008/09 goals have been met and needs are far exceeding what was anticipated upon application submittal by more than 20%. The City provided an additional $56,000 in March 2009 in a one-time only emergency response to a request for funding. In 2009/2010 the agency proposes to serve 800 homeless and extremely low- income people with basic needs met to alleviate hunger, homelessness and poverty. Of those 75% (456 individuals) will be provided with linkages to other service providers to screen for healthcare issues, provide for job training, child care and educational opportunities. Two hundred (200) homeless or very low-income will be provided with a needs assessment and case management monitoring. 3. InnVision the Way Home — Clara -Mateo Alliance 795 Willow Road, Bldg 323-D, Menlo Park, CA 94025 Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $50,000 $35,000 $35,000 FY 10/11 $50,000 Proposal: Clara -Mateo Alliance (CMA) provides 34 emergency shelter beds for singles and 24 emergency shelter beds for families with 24 -hour access, three meals per day, case management, crisis intervention and other supportive services. Clients will be allowed to stay up to 90 days with the first 45 days requiring no client fee. Priority Need: Supportive services for lower -income persons. Discussion: CMA is meeting current fiscal year 2008/09 contract objectives. Current needs are out pacing estimated needs. The City provided an additional $24,000 in March 2009 in a one-time only grant distribution in response to an emergency request. As of March 2009, 336 singles had been provided emergency shelter, 151 unduplicated individuals had been placed in transitional housing and 487 persons had received improved access to shelter exceeding the 2008/2009 goals. Additionally, in the family shelter 187 persons have been provided emergency shelter, 84 of which were unduplicated, and all of those persons were provided with improved access to shelter. The 2008/2009 goal was to serve 75 unduplicated individual family members. The agency proposes to serve 80 homeless individuals and 4 homeless families with children providing immediate housing and basic needs in fiscal year 2009-2010. Intake and initial assessment of client needs will be conducted when warranted, developing individual case management plans. 2 4. Emergency Housing Consortium (EHC) — Palo Alto HOMES Program 2011 Little Orchard Street, San Jose, CA 95125 Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $7,500 $7,500 -0- FY 10/11 $7,500 Proposal: EHC provides emergency shelter and comprehensive supportive services to homeless men, women and families with children, and youth in various facilities in Santa Clara County. EHC operates an emergency shelter and transitional housing at the Boccardo Regional Reception Center in San Jose. Supportive services include medical care, life skills workshops, housing assistance, veteran's services, employment assistance and access to mail. Priority Need: Transitional housing and supportive services for the homeless Discussion: The 2008/2009 goals of this program for City residents was to provide 3500 shelter days which would benefit 25 unduplicated individuals. To date 211 shelter days have been provided and 26 unduplicated individuals have received shelter. Staff and CAC do not recommend funding this program because it does not benefit a significant number of low-income residents from Palo Alto due to its location in the city of San Jose. 5. Palo Alto Housing Corporation (PAHC) — SRO Resident Support Services Barker Hotel: 439 Emerson Street, Palo Alto, CA 94301 Alma Place: 753 Alma Street, Palo Alto, CA 94301 Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $47,420 $30,000 $30,000 FY 10/11 $50,870 Proposal: The PAHC maintains two SRO properties: the Barker Hotel and Alma Place. The 25 -unit Barker Hotel serves a very low-income population of residents with a history of homelessness and special needs. Alma Place is a 106 -unit SRO apartment building that serves very low-income residents. Two service coordinators, one at each SRO property, provide support to individual tenants as needs or problems arise, and on an on -going basis. These intensive case management and supportive services play a vital role in helping the residents maintain their stability and housing. Priority Need: Prevention of homelessness Discussion: The targeted goals and objectives for fiscal year 08/09 have already been met. This service program has dramatically reduced turnover and eviction rates at local SRO's. PAHC requests slight additional funding in the second year, but due to the limited HUD funding and increases in 3 applicants and funding amounts, staff and the CAC recommends no change in the current funding amount for the next fiscal year. 6. Support Network for Battered Women 1257 Tasman Drive, Suite C, Sunnyvale, CA 94089 (office) Shelters are located in confidential locations in Santa Clara County Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $20,000 -0- $8,250 FY 10/11 $20,000 Proposal: Support Network provides the only confidential domestic violence housing in Northern Santa Clara County and a safety net of services including a telephone hotline, the Safe Shelter Program, crisis counseling, legal assistance and court accompaniment. Priority Need: Prevention of homelessness Discussion: This agency proposes to provide emergency shelter to city of Palo Alto victims of domestic violence and their children. The victims of domestic violence will be provided with a safety plan and referred for additional services for themselves and their children. Support Network proposes to serve 35 low-income Palo Alto individuals and their children with emergency shelter. FAIR HOUSING/ADMINISTRATION 7. Project Sentinel - Fair Housing Services Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $30,725 $26,800 $30,725 FY 10/11 $31,440 Proposal: The City of Palo Alto will issue a joint Request for Proposals (RFP) to Provide Fair Housing Services for North Santa Clara County with the Cities of Mountain View and Sunnyvale. The Cities seek investigation, counseling and legal referrals for victims of housing discrimination; community education and outreach regarding fair housing law and practices; and research, analyses and reporting for City staff and officials regarding fair housing practices. Priority Need: Fair Housing Services Discussion: This is the fourth time that the three cities are collaborating on fair housing services. A joint RFP was issued in 2003 for a two-year contract and the three jurisdictions selected one fair housing provider. The Department of Housing and Urban Development (HUD) regulations require CDBG entitlement jurisdictions to affirmatively further fair housing choice. As of February 2009, fair housing services had investigated 18 cases of the 2008/09 goal of 26 cases. The service had 4 provided 15 consultations exceeding the 2008/09 goal of 13 consultations. Four (4) of a proposed 10 rental sites have been monitored as of February 2009. Staff and CAC recommend funding Project Sentinel at the level requested of $30,725. 8. City of Palo Alto - Department of Planning and Community Environment 250 Hamilton Avenue, Palo Alto, CA 94301 Funding Request 2008/09 Funding Staff/CAC Recommendation FY 09/10 $175,359 $121,429 $113,475 FY 10/11 $182,877 Proposal: Funding is requested to reimburse the City General Fund for costs related to the overall management, coordination, monitoring and evaluation of the CDBG Program, including oversight of public service contracts, data gathering, studies, analysis, plan preparation, and the identification of actions for implementation of plans. Priority Need: CDBG Program Administration and support Discussion: The cost of administering the CDBG program is approximately $175,000 per year of which approximately $150,000 represents staff salaries and benefits and $25,000 represents non - salary expenses such as advertising, training, office supplies and contract services, if necessary. A reimbursement of $113,475 from grant funds is within the 20% administrative cap and helps alleviate General Fund budgeting constraints. Staff and CAC recommend funding the City program administration at $113,475. CAPITAL AND/OR HOUSING PROJECTS 11. Community Housing Inc. — Lytton Gardens Bathtub Conversions 649 University Avenue, Palo Alto, CA 94301 Funding Request Staff/CAC Recommendation FY 09/10 $110,000 $110,000 FY 10/11 -0- Proposal: Community Housing Inc. owns and operates Lytton Gardens I and II providing 318 units of affordable housing and multi -level care to low-income seniors. This proposal is to renovate 49 kitchens in their assisted living facility. A modern mini kitchen that will be easier to use by frail elderly residents will replace the existing galley kitchens of 1974, which do not comply with the Americans with Disabilities Act. Priority Need: Rehabilitation of affordable rental housing 5 Discussion: Staff and CAC recommend funding of $110,000 in order to convert bathtubs to showers for 220 independent living units thereby providing residents with easier entry, exit and safety. The project will be completed within the grant cycle year 2009/2010 in its entirety. 12. Avenidas — Senior Home Repair and Accessibility Services 450 Bryant St., Palo Alto, CA 94301 Funding Request Staff/CAC Recommendation FY 09/10 $60,000 $56,509 FY 10/11 $60,000 Proposal: Agency proposes to assist a minimum of 120 low-income Palo Alto households with home improvement services. These services are designed to identify and improve hazardous conditions in homes, improve accessibility and use for seniors and individuals with disabilities, improve energy efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future. Priority Need: Conservation of energy and improved accessibility for individuals with physical disabilities Discussion: This is a new project for the City. It currently operates in the City of Mountain View and has been successful in that location. The 2009/10 goal is to provide home repairs and accessibility services to 120 low-income Palo Alto seniors. 13. Stevenson House — Hot Water Piping Project 455 E. Charleston Road, Palo Alto, CA 94306 Funding Request Staff/CAC Recommendation FY 09/10 $83,200 $83,200 FY 10/11 $197,500 Proposal: Stevenson House provides 120 units of affordable rental housing to low-income seniors. Since seniors are living longer, and there are almost no assisted living facilities for low-income seniors, Stevenson House is attempting to provide supportive services to their residents to help them maintain their independence as long as possible. The capital rehabilitation project proposed for the 2009/2010 fiscal year is to complete the final phase of a radiant heating project that was funded in part in fiscal year 2008/2009. The first phase was completed at prevailing wage and in compliance with other HUD requirements in a timely manner. The proposal for fiscal year 2010/2011 is to resurface the parking lot, restripe parking stalls, replace portions of handicapped accesses and replace portions of concrete sidewalks that are in disrepair. 6 The need for these replacements comes from sewer lines buckling under the lot that create uneven walking surfaces and danger for an aged resident population. Priority Need: Rehabilitation of affordable rental housing Discussion: Staff and the CAC recommend full funding for these projects. Stevenson House does not have the necessary resources to cover the costs of major repairs because their affordable rents do not cover more than normal operating costs. The projects are intended to prevent deterioration and failure of the hot water system, due to faulty insulation and inadequate pipe supports and prevent injury to residents accessing the parking lot due to uneven pavement surfaces. 14. Second Harvest Food Bank of Santa Clara and San Mateo Counties 750 Curtner Avenue, San Jose, CA 95125 Funding Request Staff/CAC Recommendation FY 09/10 -0- -0- FY 10/11 $50,000 Proposal: Second Harvest Food Bank is requesting 2010/11 funds to support the acquisition and pre -development of land or purchase of an existing warehouse building. The existing warehouse is proposed to be replaced by a warehouse three times larger. The site has yet to be secured, although potential sites are identified. Priority Need: Acquisition of a site or real property for any public purpose. Discussion: Staff and the CAC will review the funding request prior to the 2010/10 funding cycle. The applicant originally applied for the 2009/10 grant cycle. The applicant withdrew the proposal from the 2009/10 grant cycle year because of concerns related to the ability to spend the funds during that grant cycle and requested funding for the 2010/11 grant cycle instead. Additional 2009/10 Pre -Award Funding Allocation: Palo Alto Housing Corporation — Tree House Project -$300,000 488 West Charleston Rd., Palo Alto, CA Although not a 2009/10 application, Ordinance No. 5031 was approved on March 2, 2009, by City Council awarding the Tree House project a pre -award of $300,000 to be distributed from the 2009/10 CDBG grant cycle. 7 ATTACHMENT B CITY OF PALO ALTO Housing and Community Development DRAFT 2009/2010 ACTION PLAN Annual Update of the City's Consolidated Plan for the Period July 1, 2005 to June 30, 2010 Public Review Period March 23, 2009 — April 23, 2009 Prepared by Department of Planning & Community Environment 250 Hamilton Avenue Palo Alto, California 94301 Curtis Williams, Interim Director For Information, Please Contact: Kathy Marx, CDBG Coordinator Planning Division, City of Palo Alto (650) 329-2428 Executive Summary This one year Action Plan describes the eligible activities that the City intends to undertake in fiscal year 2009/10 to address the needs and implement the strategies identified in the City's adopted Consolidated Plan for the period July 1, 2005 to June 30, 2010. It describes the activities that the City will fund with Community Development Block Grant (CDBG) funds in fiscal year 2009/10 to address priority housing and non -housing community development needs and to affirmatively further fair housing choice. It serves as the City's application for federal funds under the Department of Housing and Urban Development (HUD) formula grant programs. Performance Measurement Objectives and Outcomes HUD requires a performance measurement system. The purpose of the performance measurement system is to better capture data on a national level for the activities that are undertaken with CDBG funding at the local level. This system helps quantify and measure program outcomes in order to determine how well programs and activities are meeting established needs and goals. The City is required to identify both an objective and outcome for each proposed activity. The objectives and expected outcomes are identified in this report for each proposed activity. The City intends to provide funding for various activities, which are consistent with the adopted Consolidated Plan. The City will undertake several housing activities which all meet the objective of providing decent affordable housing. Housing projects that are planned for 2009/10 include assistance to the Stevenson House, an existing 120 -unit subsidized senior housing development, to complete an on -going project of repairing a radiant heat system and installation of thermostats in resident's rooms. This project will have the outcome of efficiency and sustainability and meets the national goal of providing decent affordable housing. Lytton Gardens, another affordable senior housing development, proposes to retrofit older bathtubs to step-in showers which will have the outcome of providing a more suitable living environment for seniors. The City is assisting in the acquisition of property for a 35 unit affordable housing complex at 488 W. Charleston Road (the Tree House project). This project will have the outcome of providing decent affordable housing. Lastly, Avenidas will provide minor home repairs and accessibility upgrades which will have the outcome of providing a suitable living environment. The City will also provide funding for several public service projects, which all have the goal of creating a suitable living environment, and the outcome of enhanced accessibility or decent affordable housing. The proposed public service projects are: Palo Alto Housing Corporation — single room occupancy (SRO) residence support services; InnVision — Opportunity Center homeless support services; InnVision/Clara-Mateo Alliance Shelter — emergency shelter for individuals and families; Catholic Charities —long-term care ombudsman program; and Support Network for Battered Women — domestic violence services in connection with emergency housing. Evaluation of Past Performance The City has historically allocated CDBG funds to activities that benefit low and moderate income persons, with the top priority being increasing affordable housing opportunities in the City. The City has one of the most expensive housing markets in the country due to the lack of available land. In recent years, the City has assisted in the creation of 141 new affordable 1 housing units, with Oak Court apartments, a 52 unit affordable housing complex and the Opportunity Center, a multi -service center with 89 units of affordable housing. Oak Court is fully occupied as is the Opportunity Center which opened for occupancy in the fall of 2006. Additionally, the City assisted Community Housing Alliance to acquire Alma Gardens, an existing 10 -unit apartment complex, in order to increase the supply of housing affordable to low income persons. The City intends to continue to support the creation of affordable housing and to maintain the existing affordable housing stock, through preservation or rehabilitation activities. Presently the City is assisting in the acquisition of property for a 35 unit affordable housing complex at 488 W. Charleston Road (the Tree House project). Citizen Participation The City of Palo Alto has an adopted Citizen Participation Plan that provides for a seven - member CDBG Citizens Advisory Committee (CAC). The CAC process encourages public participation in the CDBG allocation and evaluation review process. Fiscal year 2009/10 is the first year of a two-year funding cycle. The CAC met on January 13th, January 29th , February 5th, February 10th and February 19t to review and evaluate the applications and make funding recommendations on the applications submitted for 2009/10 CDBG funding. The draft Action Plan is available for public review from March 23 to April 23, 2009. The City placed an ad in the Palo Alto Weekly on March 20, 2009 and also sent numerous notifications to interested parties. The draft Action Plan is available at the Planning Department in City Hall, public libraries and is also posted to the City's CDBG website for the duration of the public review period. The public is also invited to attend two public hearings, one before the City's Finance Committee on April 21, 2009 and one before the full City Council on May 4, 2009. RESOURCES AVAILABLE The City of Palo Alto encourages local non-profit housing and public service agencies to pursue all available public and private funding sources in order to achieve the goals of the Consolidated Plan. Most projects and activities secure funding from a variety of sources including private donations, charitable foundations, and church and community fundraising to leverage federal, state and local funding. Federal Resources Community Development Block Grant (CDBG) Funds The City receives CDBG funds as an entitlement grant through the U.S. Department of Housing and Urban Development (HUD). In fiscal year 2009/10, the City will allocate $802,259 in CDBG funds to eligible activities that address the needs indentified in the Consolidated Plan. The amount of the City's 2009/10 entitlement grant from HUD is estimated as of March 18, 2009, to be $656,000; estimated program income from various sources will provide an additional $145,300 and $959 of reallocated funds will total $802, 259. Program income is income directly generated from the use of CDBG funds that are returned to the CDBG program and reallocated to new activities. The City anticipates receiving loan repayments from two properties in fiscal year 2009/10 from an affordability reserve account. The Palo Alto Gardens and Sheridan Apartments were required to establish an affordability 2 reserve account as a condition of their CDBG and City funding. The agreements stipulate that annual loan payments must be made to the City when the balance in the respective accounts reaches $1,000,000. Each of the two properties affordability reserve accounts has now reached $1,000,000 and annual loan payments are anticipated. The Palo Alto Housing Corporation also makes annual interest payments on various properties that were acquired or improved with CDBG funds. Another source of program income is from loan repayments from the City's former Housing Improvement Program (HIP) single-family residence rehabilitation loan program. Estimated FY 2009/10 CDBG funding: Estimated 2009/10 CDBG Entitlement Grant (as of 3/18/09) $656,000 Estimated Program Income (HIP) 5,000 Estimated Program Income (PAHC) 60,000 Estimated Program Income Palo Alto Gardens/Sheridan Apts. 80,300 Reallocated Funds from 2008/09 959 Total Available for Allocation $802,259 American Recovery and Reinvestment Act of 2009 The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama on February 17, 2009, as an effort to jumpstart the economy and create or save jobs. It includes, among other things, measures to invest in homes and communities, and protect those in greatest need. The Recovery Act includes $13.5 billion for programs administered by HUD, including $1 billion in one-time stimulus CDBG funding. The City expects to receive an additional $183,477 in CDBG stimulus money in fiscal year 2009/10. Once HUD has provided specific guidance on the regulations governing the stimulus money, the City will consider proposals for additional projects to be funded with the stimulus money and amend this Action Plan accordingly. 2008/09 Action Plan Amendment On March 2, 2009, the City Council approved an amendment to the 2008/09 Annual Action Plan. Two changes were proposed in the amendment: (1) pre -award notification of the City's intention to reimburse itself from the 2009/10 CDBG grant for an additional expenditure of $300,000 for the Tree House affordable housing project; and (2) an additional allocation of $80,000 in CDBG funding from fiscal year 2008/09 to InnVision to address an emergency funding gap in local programs providing shelter and supportive services to homeless persons. The amended Action Plan was circulated for public review for 30 days beginning January 30, 2009. No comments were received. The CDBG Citizens Advisory Committee unanimously endorsed the two changes described in the amended Action Plan. HOME Program The City of Palo Alto is not an entitlement grantee under the federal HOME program and thus does not receive a direct grant of HOME Program funds from HUD. The only way to access HOME funds for housing projects located within the City of Palo Alto is for the City, or eligible nonprofit organizations, to apply to the State of California for the funds in an annual competition. Due to excessive demand for the State's HOME allocation, and rating criteria that does not favor areas like Palo Alto, it is difficult to secure an award. 3 McKinney-Vento Homeless Assistance For the 2008 Federal fiscal year 32non-profit programs in Santa Clara County will receive approximately $7 million for programs assisting the homeless. In addition, the Housing Authority of Santa Clara County will receive $2.4 million in Shelter Plus Care renewal funding. State, Local and Other Resources Palo Alto Affordable Housing Fund The Affordable Housing Fund is a local housing trust fund established by the City Council to provide financial assistance for the development, acquisition and rehabilitation of housing affordable to extremely low, very low, low and moderate -income households. The Affordable Housing Fund is the umbrella name for five distinct sub -funds for affordable housing. On October 27, 2003, the City Council approved new guidelines for all of the City's affordable housing funds including the ones composed of federal housing monies. The Affordable Housing Fund is now composed of: ✓ Commercial Housing Fund — this fund is used primarily to increase the number of new affordable housing units for Palo Alto's work force. It is funded with mitigation fees required from developers of commercial and industrial projects. As of December 31, 2008, the Commercial Fund had an available balance of approximately $400,000. ✓ Residential Housing Fund — this fund can be used for acquisition, rehabilitation, new construction and predevelopment of low-income housing. It is funded with mitigation fees provided under Palo Alto's Below Market Rate (BMR) housing program from residential developers, and money from other miscellaneous sources, such as proceeds from the sale or lease of City property. It is also used to pay for administration and consultant contracts necessary to carry out the BMR program. As of December 31, 2008, the Residential Fund had an available unallocated balance of approximately $900,000. ✓ CDBG Housing Fund - The purpose of the CDBG Housing Fund is to have funds available on an ongoing basis to utilize when necessary to facilitate the development, rehabilitation and preservation of low-income housing. Housing development opportunities, especially opportunities to acquire land for new housing construction, may come up at any time throughout the year and, due to the nature of the real estate market; a quick response is frequently necessary. CDBG Housing Funds may be used to pay for costs associated with the investigation of the feasibility of sites or properties for potential acquisition by the City, or nonprofit organizations, for affordable housing. These costs usually need to be paid prior to a project being officially created in the budget. Typically these costs are for appraisals, environmental studies and soil testing, title reports and conceptual design studies. ✓ HOME Program Income Fund — the City has only one HOME funded project, the Barker Hotel Single Room Occupancy. This project was funded in part with a $1 million 1992 HOME grant from the State. The City's funding is in the form of a long-term, deferred loan and there has not been any program income from that loan. 4 ✓ Below Market Rate (BMR) Emergency Fund — This fund was authorized by Council in September 2002 in order to provide funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City's stock of BMR ownership units. The actual process for initiating an application for City Affordable Housing Funds will vary depending on the particular circumstances. Usually, a nonprofit sponsor will apply to the Department of Planning and Community Environment for housing subsidy funds when they are in negotiation for a particular site. At other times, the City may issue a Request for Proposals once it has secured or identified a potential housing site. The Planning Department will present recommendations for each project together with a proposed funding package to the City Council for approval. In almost all cases, funds will be provided as a loan secured by the property. The repayment terms and interest rate have to be tailored to the particular project since affordable housing typically is financed from multiple sources with specific requirements. Housing Trust of Santa Clara County (HTSCC) The HTSCC is a public/private initiative, dedicated to creating more affordable housing in Santa Clara County, using a revolving loan fund and grant -making program to complement and leverage other housing resources. The City of Palo Alto has contributed $650,000 to the HTSCC since its inception. The City's contributions must be used exclusively for qualifying affordable housing projects located within the City. Three new affordable rental projects located in Palo Alto have received loans from the HTSCC: Oak Court Apartments ($400,000), Opportunity Center ($650,000), Fabian Way Senior Housing by Bridge Housing ($650,000) and the Tree House project (proposed $500,000). State of California's Multifamily Housing Program (MHP) The Multifamily Housing Program (MHP) has been a major source of funding for affordable housing since November 2002. The purpose of this program is to provide low -interest loans to developers of affordable rental housing. The MHP General funds may be used for multifamily rental and transitional housing projects involving new construction, rehabilitation, or conversion of nonresidential structures. MHP Supportive Housing funds may be used for multifamily rental housing projects involving new construction, rehabilitation, acquisition and rehabilitation, or conversion of nonresidential structures for permanent rental housing only. Oak Court Apartments, developed by the Palo Alto Housing Corporation and the Opportunity Center, developed by the Community Working Group/Housing Authority of Santa Clara County received substantial funding from the MHP program. The Fabian Way Senior Housing received an award of $5.25 million in permanent MHP funding in 2008. State of California's Local Housing Trust Fund Grant Program Another component of Proposition 46 was funding for new and existing local housing trust funds. A local housing trust fund is a public or private partnership created to receive on -going revenues for affordable housing production such as Palo Alto's Commercial and Residential Housing Funds. The City of Palo Alto applied for and received an award of $1,000,000 in February 2004. The City Council committed these funds for site acquisition for the Alma Street Family rental housing project. 5 Santa Clara County Affordable Housing Fund (AHF) The Santa Clara County Board of Supervisors established the Affordable Housing Fund with initial funding of $18.6 million in July 2002. The main purpose of the AHF was to assist in the development of affordable housing especially for extremely low income and special needs people throughout Santa Clara County. The Opportunity Center received an award of $2.5 million from the AHF in the first round of funding approved in September 2003. The Bridge Fabian Way Senior Housing was awarded $1.5 million from this fund in 2008. A proposed $960,000 will be utilized by the Tree House project. The County has awarded over $10 million from the AHF to date. Section 8 The Housing Authority of the County of Santa Clara administers the Section 8 program countywide. In the previous fiscal year, a total of 296 households in Palo Alto received assistance through the Section 8 program. Of those, 201 were housing choice vouchers, 5 were Shelter Plus Care vouchers, 52 were project -based and 37 were part of the moderate rehabilitation program. The City anticipates that Section 8 vouchers will continue to be available to Palo Alto residents in fiscal year 2009/10. Low -Income Housing Tax Credits The California Tax Credit Allocation Committee (CTCAC) holds two application cycles each year. Typically, the first cycle is held in March and the second is held in July. Local non -profits apply directly to the CTCAC for these funds when they have identified a project. Tax credits were used for development of both the Oak Court Apartments and the Opportunity Center and have been awarded for the Fabian Way Senior Housing. They are also proposed to be used for $6.0 million in development funds for the Tree House project. Destination: Home As a one -stop homelessness prevention center, the goal of Destination: Home is to provide one - stop multiservice centers for homelessness -prevention services that connect people in need with appropriate services and directly link services, in an expedited manner, to permanent supportive housing for homeless men, women and families in Santa Clara County. The Georgia Travis Center and the Boccardo Reception Center in San Jose are presently operating this program in conjunction with other programs. Additionally the program provides for a medical respite center that allows homeless patients that have been hospitalized and discharged a clean, safe place to recuperate and provides linkages to other services, including permanent housing, while the individual is in the medical respite center. This program is being operated as a 15 -bed facility in San Jose. Destination: Home partners with Stanford Medical Center locally for the medical respite component. 6 STATE, LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE HOUSING Activity Acquisition Rehab New Construction Home Buyer Assistance Rental Assistance Homeless Assistance Homeless Prevention STATE, LOCAL, and PUBLIC Commercial Housing Fund X Residential Housing Fund X X X X State MHP X X X City Owned Land X MCC Program X Housing Trust of Santa Clara County X X X X X X Santa Clara County Housing Authority - Section 8 X X X X X X County Department of Social Services X X Santa Clara County Affordable Housing Fund X X X PRIVATE RESOURCES BMR Rental & Owner Program X X X Private Lenders: AHP X X X Nonprofit Developers X X X X X Private Foundations and Churches X X Leveraging and Matching Requirements The City of Palo Alto will leverage federal and private housing funds to the greatest extent feasible consistent with the goals identified in the Consolidated Plan. The City will encourage housing project sponsors to seek private financing and private grants, and to fully utilize other state and federal housing development subsidies such as the low-income housing tax credit program. The City will also utilize its local Affordable Housing Fund, as appropriate, to leverage federal and private housing funds and to provide any required matching funds. Where eligible, CDBG Housing Funds could be used as a portion of the matching requirement for federal housing programs. 7 Geographic Distribution The City considers the provision of all types of housing assistance on a citywide basis consistent with the policies of the Comprehensive Plan. The City does not have specific target areas for housing activities, but attempts to provide housing affordable to lower -income persons throughout the City. There are only a few areas that are considered to have a concentration of minority populations or low-income residents in Palo Alto. There are three census tracts in Palo Alto that have a concentration of Asian populations, primarily in the northern part of the City and there are also four Census tracts in the northwestern portion of the City that have a concentration of lower income households. In addition, Census tract 5107 in the Olive -West Meadow/Ventura area is an area of considerably greater population and housing diversity than that which is found in most parts of Palo Alto. The 2000 census identified this tract as having the highest minority concentration of any non -split City tract. More than half the housing units are in multiple -unit (3+) structures, and nearly two-thirds are renter -occupied. Block Group 2 has a large proportion of modest rental housing, a relatively high proportion of minority and ethnic groups, and 48.6% of the households are below the CDBG income eligibility limits. The entire tract is above HUD's first quartile threshold of 27.4 percent for area benefit activities. Changes to Strategy HUD requires the timely expenditure of CDBG funds. The federal regulatory standard is that no more than 1.5 times a jurisdiction's annual entitlement grant amount may remain in its letter of credit 60 days prior to the end of the program year. HUD now employs monetary sanctions against jurisdictions that exceed the regulatory standard. Failure to meet the expenditure standard by May 1, 2009 will cause HUD to reduce the City's next grant by 100% of the amount in excess of 1.5 times the annual grant. For this reason, all funding allocations for 2009/10 were scrutinized to insure the readiness of the program or project to move forward and expend funds in a timely manner. This stricter enforcement of the expenditure standard will increase the difficulty in providing funds for affordable housing since housing projects involving new construction or acquisition of apartments typically take more time and planning and are subject to more delays than other capital projects. It may create situations where lower priority activities will be undertaken instead of higher priority activities simply because they are easier to accomplish and ready to proceed. The City Council approved the change to a two-year CDBG funding cycle beginning with the 2003/04 fiscal year and this is reflected in the amendment of the Citizen Participation Plan adopted by the City Council in December 2002. Many cities in the Bay Area have adopted extended CDBG funding cycles and find them to be an effective tool to streamline "process" and provide administrative relief to both city and non-profit staff. Palo Alto's Human Services Division also employs a two-year funding cycle for the Human Services Resource Allocation Process (HSRAP). 8 Coordination of the CDBG and HSRAP funding processes is essential to the effective delivery of local human service funding. Collaboration between the non-profit agencies and the City's funding sources avoids confusion, duplication of effort, and ensures that the highest identified community needs are met. The two-year process provides the opportunity for City and non- profit staff to undertake longer -term strategic planning and to maximize available funding resources. Allocation Priorities Program Year 2009 will be the fifth year of the City's five year Consolidated Plan for the period 2005-2010. The table below sets forth the five year goals of that Plan and the one-year goals of the FY 2009/10 Annual Action Plan. Summary of Specific Housing/Community Development Objectives (HUD Table 2C) Goal # Specific Objectives Performance Measure Expected Units 5 Year 2009/10 Goal Rental Housing Objectives Goal 1 Increase the supply of rental housing Units 125 56 Goal 2 Preserve existing affordable rental housing from conversion to market -rate housing Units 72 0 Goal 3 Conserve the condition of existing rental housing Units 150 230 Owner Housing Objectives Goal 4 Continue Below Market Rate Program Units 20 7 Goal 5 Continue to participate in MCC program Units 15 3 Goal 6 Rehabilitation loans to L/M Income Owners Units Emergencies only As needed Goal 7 Minor Home Repairs and Accessibility Upgrades Units 130 120 + 1,200 Palo Alto Energy Assistance Public Service Objectives Goal 15 Assist seniors in long-term care Individuals 600 220 Goal 17 Services to prevent homelessness (incl. in Goals 8 and 9) Individuals 8,000 1,050 + 4 families Goal 18 Food and meal programs Individuals 800 325 Public Facilities Goal 19 Promote community -based services through public facilities Facilities 2 0 9 Each proposed activity of the 2009/2010 fiscal year is listed below in relation to the strategy it intends to address in the adopted 2005-2010 Consolidated Plan. Goal # 1: Increase the Supply of Affordable Rental Housing by 125 units Proposed 2009/10 Activity: Fabian Way Senior Housing Project Palo Alto, CA 2009 Goal: 56 new housing units Palo Alto Housing Corporation 488 W. Charleston Rd. Palo Alto, CA 94306 2009 Goal: 35 new housing units Goal #2: Preserve the Supply of 72 units of Affordable Rental Housing at Immediate Risk of Conversion to Market -Rate Housing Proposed 2009/10Activity: None. There are no units at immediate risk of conversion to market -rate housing at this time. Goal #3: Conserve the Condition of 150 Existing Units of Affordable Rental Housing Proposed 2009/10 Activities: Stevenson House 455 E. Charleston Rd. Palo Alto, CA 94306 2009 Goal: 120 low income senior rental units Lytton Gardens 437 Webster Street Palo Alto, CA 94301 2009 Goal: 110 low income senior rental units Goal #4: Continue the Below Market Rate (BMR) Program Proposed 2009/10 Activity: City of Palo Alto BMR Program Units are located citywide 2009 Goal: 7 units Goal #5: Continue to Participate in the Mortgage Credit Certificate Program Proposed 2009/10 Activity: The City of Palo Alto will continue to participate in the mortgage credit certificate program. 2009 Goal: 3 households Goal #6: Provide for Rehabilitation Loans to Low- and Moderate -Income Single Family Homeowners in Emergency or Crisis Situations Only Proposed 2009/10 Activity: This program is available on a limited as -needed basis. 10 Goal #7: Provide for Minor Home Repairs and Accessibility Upgrades to Low- and Moderate -Income Homeowners Proposed 2009/10 Activity: Avenidas — Senior Home Repair 450 Bryant Street Palo Alto, CA 94301 2009 Goal: 120 households City of Palo Alto Utilities Department Residential Energy Assistance Program 250 Hamilton Ave. Palo Alto, CA 94301 2009 Goal: 1,200 households Goal #8: Provide Assistance and Supportive Services to Low- and Very Low -Income Palo Alto Residents to keep them from Becoming Homeless Proposed 2009/10 Activities: Palo Alto Community Childcare — Childcare Subsidies 3990 Ventura Court Palo Alto, CA 2009 Goal: 50 households Project Sentinel — Mediation Program 430 Sherman Avenue, Suite 308 Palo Alto, CA 94306 2009 Goal: 26 households Second Harvest Food Bank 750 Curtner Avenue San Jose, CA 95125 2009 Goal: 175 persons Avenidas Senior Housing Counseling 450 Bryant Street Palo Alto, CA 94301 2009 Goal: 1,600 persons La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2009 Goal: 646 persons Palo Alto Housing Corporation - Barker Hotel and Alma Place Counseling Program 725 Alma Street Palo Alto, CA 94301 2009 Goal: 131 households 11 Mayview Community Clinic — Health Care Services 270 Grant Avenue Palo Alto, CA 94306 2009 Goal: 100 persons Support Network for Battered Women 1257 Tasman Drive, Suite C (office) Sunnyvale, CA 94089 Shelters are located in confidential locations in Santa Clara County 2009 Goal: 35 individuals and their children Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive Services with a Housing Component Proposed 2009/10 Activity: InnVision - Opportunity Service Center 33 Encina Ave. Palo Alto, CA 94301 2009 Goal: 800 People Goal #10: Continue to Support the Operating (and/or rehabilitation) Costs of Shelters and Transitional Housing Programs that Serve the Palo Alto Area Proposed 2009/10 Activities: InnVision/Clara-Mateo Shelter — Adult Program and Family Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2009 Goal: Operating Costs InnVision — Hotel de Zink Rotating Church Shelter Program 33 Encina Ave. Palo Alto, CA 94301 2009 Goal: Operating Costs Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for the Homeless Proposed 2009/10 Activity: InnVision Opportunity Center Health Care Services 33 Encina Ave. Palo Alto, CA 94301 The City will continue to support mental health outreach and other supportive services for the homeless. Goal #12: Continue to Cooperate on Countywide Approaches to the Issues of Homelessness Proposed 2009/10 Activity: The City will continue to cooperate on countywide approaches to homelessness. 12 Goal #13: Support the Activities of Area Non -Profit Organizations that Provide Transitional Housing with Supportive Services to the Homeless Proposed 2009/10 Activity: InnVision/Clara-Mateo Alliance Shelter — Single Adult/Couple Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2009 Goal: 6 transitional housing units InnVision/Clara-Mateo Alliance — Family Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2009 Goal: 18 transitional housing units Goal #14: Continue to Support the Shelter Plus Care Program in Palo Alto and Increase the Units Available in the Program to Include Families with Children Proposed 2009/10 Activity: There are seven Shelter Plus Care units available at the Barker Hotel and 10 units available at Alma Place. Five additional units are set -aside at Alma Place under the North County Master Lease program. Shelter Plus Care units are also available at the Opportunity Center for qualified tenants as vacancies dictate. Goal #15: Assist Seniors in Long -Term Care Facilities Proposed 2009/10 Activity: Catholic Charities — Long -Term Care Ombudsman Program 2625 Zanker Road, Suite 200 San Jose, CA 95134-2107 2009 Goal: 220 Persons Goal #16: Provide Support to Accessible Transportation Services Proposed 2009/10 Activity: Continue to support transportation services in the City, including the Palo Alto Shuttle. Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8) Proposed 2009/10 Activities: InnVision - Clara -Mateo Adult Singles and Families 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2009 Goal: 80 singles and 4 families InnVision — Opportunity Center 33 Encina Ave. Palo Alto, CA 94301 2009 Goal: 800 People 13 Goal #18: Continue to Support Food and Meal Programs Proposed 2009/10 Activities: Second Harvest Food Bank 750 Curtner Avenue San Jose, CA 95125 2009 Goal: 175 persons La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2009 Goal: 646 persons Goal #19: Promote a Vital System of Community -Based Human Services through Facilities to House those Services Proposed 2009/10 Activity: The City does not plan on undertaking a facility project this fiscal year. 2009/10 PROJECTS AND ACTIVITIES TO BE UNDERTAKEN All of the projects and activities to be undertaken with 2009/10 CDBG funding address the priority housing and community development needs identified in the Consolidated Plan. The attached Appendix C "Proposed Projects" describes each project or service activity, the 2009/10 funds allocated, the expected project beneficiaries, and the HUD national objective. Housing Activities The City of Palo Alto's Consolidated Plan and Housing Element both emphasize the great need for affordable housing for low- and very low-income households in Palo Alto. While all types of housing are needed in the City, the Consolidated Plan focuses on the creation and preservation of rental housing with an emphasis on housing for very low- and low-income persons especially those who are homeless, at -risk of becoming homeless, those with special needs, and families with children. City of Palo Alto Housing Strategy The Consolidated Plan proposes a five-year strategy to develop 125 newly constructed rental units over the 2005-2010 planning period. The 125 units would be affordable to households in the very low- or low-income categories and would meet a portion of the housing production goals mandated by the Association of Bay Area Governments (ABAG). Palo Alto Housing Corporation — Tree House Project - $300,000 Objective: Providing Decent Affordable Housing Outcome: Affordability for the purpose of providing decent affordable housing Performance Measure: 35 New Units of Affordable Housing The City intends to allocate $300,000 in fiscal year 2009/10 CDBG funding to Palo Alto Housing Corporation for a new 35 -unit affordable housing project known as the Tree House. The 14 development of new affordable rental housing is a high priority in the Consolidated Plan. This development will provide new rental housing on a 32,000 square foot site located at 488 West Charleston Road in Palo Alto. The proposed 35 rental apartments will be affordable to extremely -low and very -low income households earning between 20% and 50% of the area median income. The project will consist of 33 studio apartments, two one —bedroom apartments and an indoor common area. The studios range in size from 380 square feet to 425 square feet. The two one -bedroom units are 590 square feet and 791 square feet. In addition there is an indoor common area of 7,069 square feet that includes a common recreation room; a lounge/library; laundry room; common bathroom; resident service office and a management office. The project will be four -stories high with community space on the ground floor. The residential units will be located on the second through fourth floors. The City's CDBG funding will be used for a portion of the land acquisition expenses, which are estimated to be $2,865,000. CDBG program year 2008/09 funds allocated $1,538,577 towards site acquisition for the project. The overall development cost for the Tree House project is estimated to be $13.2 million. The financing plan anticipates the major funding sources to be Low -Income Housing Tax Credits, state Multi -Family Housing Program, City of Palo Alto funding, both CDBG and non-CDBG funds, County of Santa Clara Affordable Housing funds, HOME funds and Housing Trust funds, among others. Proposed Public Service Activities CDBG public service funds will be targeted to the following programs in fiscal year 2009/10: ✓ $30,000 Palo Alto Housing Corporation — SRO Tenant Counseling Program Objective: Providing a suitable living environment Outcome: Accessibility for the purpose of creating suitable living environments Performance Measure: 131 persons will have improved accessibility to a suitable living environment ✓ $35,000 InnVision/Clara-Mateo Alliance — Adult singles and families Objective: Providing a suitable living environment Outcome: Accessibility for the purpose of providing decent affordable housing Performance Measure: 80 individuals plus 4 families will have new accessibility to decent affordable housing ✓ $30,000 InnVision — Opportunity Service Center Drop -In Program Objective: Providing a suitable living environment Outcome: Accessibility for the purpose of creating suitable living environments Performance Measure: 800 persons will have improved accessibility to a suitable living environment ✓ $ 5,000 Catholic Charities — Long -Term Care Ombudsman Program Objective: Providing a suitable living environment Outcome: Accessibility to supportive services 15 Performance Measure: 220 persons in Palo Alto will have improved accessibility to supportive services thereby providing decent affordable housing ✓ $ 8,250 Support Network for Battered Women — Domestic Violence Program Objective: Providing a suitable living environment Outcome: Accessibility for the purpose of providing decent affordable housing Performance Measure: 35 Individuals and their children Human Services In addition to the CDBG public service funds, the City will provide $1,110,452 from the General Fund in support of human services through its Human Service Resource Allocation Process (HSRAP). The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies whose programs serve the needs of seniors, children, youth and families, persons with disabilities, and those who are homeless, or at risk of homelessness. A variety of supported programs provide mental and physical health care services, tenant/landlord mediation, subsidized child care, support for victims of domestic violence and rape, senior services, adolescent counseling, emergency food, nutritional services, and recreational activities. Services and Resources Targeted to Homeless Persons The following services, for persons in the Palo Alto community who are very low-income, homeless, or at -risk of becoming homeless, are provided with supplemental funding from the City of Palo Alto either with CDBG or HSRAP funding in addition to other public and private funding. The goal of all the services listed is to prevent homelessness, help move people out of homelessness and to reduce the number of persons below the poverty line. City of Palo Alto Seasonal Jobs Program: Designates several temporary, seasonal employment opportunities in various City of Palo Alto Departments, for persons who are homeless and unemployed. The program is targeted to individuals who are motivated to improve their situations and re-enter the work force. Downtown Streets Team: Identifies motivated homeless individuals and provides them with jobs cleaning and beautifying the downtown area. The program includes counseling, coaching and training to help program participants build self-esteem, confidence and connections in the community. InnVision/Clara-Mateo Shelter: Shelter with casework counseling and supportive services for homeless individuals, couples and families who are actively working toward achieving their goals and overcoming homelessness. Community Technology Alliance: Shelter hotline and voicemail services for homeless individuals and families. The voicemail service helps case -managed clients attain individual goals such as securing health care, housing or employment. A countywide housing information and referral website was developed and is maintained to assist service providers and housing seekers. 16 La Comida de California: Provision of affordable, nutritious meals to Palo Alto's elderly population at various locations throughout the City, including: Avenidas Senior Center, Stevenson House and Cubberley Community Center. Mayfield Community Clinic: Basic primary health care services and health education and referral services to uninsured low-income and homeless individuals from the Palo Alto area. Momentum for Mental Health: Mental health outreach program will provide emergency on -call services to City departments, libraries, community centers and local homeless service providers. Palo Alto Housing Corporation — SRO Hotel Tenant Counseling: Counseling and case - management services for the low-income residents and prospective residents of single room occupancy hotels in Palo Alto including the Barker Hotel at 439 Emerson Street. Many SRO hotel residents have a history of homelessness and special needs. The program plays a vital role in helping the residents maintain their stability and housing. Second Harvest Food Bank: Distributes supplemental groceries and food services to very low- income seniors and people with disabilities through the Operation Brown Bag Program. Groceries are distributed weekly at the Ventura School site to income eligible participants. InnVision - Opportunity Service Center: Services for very -low income or homeless persons including bagged groceries, hot meals, emergency shelter, information and referral, shower and laundry facilities, case -management and money management (payee) programs, clothing, and health services. Services are provided weekdays from 8:30 to 4:30 at the Opportunity Center, 33 Encina Avenue in Palo Alto. Bagged groceries are distributed daily at the Downtown Food Closet located at 425 Hamilton Avenue in Palo Alto. The Hotel de Zink rotating church shelter program is housed at a different location each month. Chronic Homelessness The City participated in the Countywide Homeless Census in 2007 and 2009. In 2007 it was estimated that on any given night there could be up to 7,400 people without shelter in Santa Clara County. At the day of the Homeless Census in 2007 it was estimated there were 237 homeless individuals within the City of Palo Alto. The statistics for the 2009 census will be forthcoming. There are currently some efforts being undertaken in the City that are assisting the chronically homeless. One program is the Off the Streets team, a collaborative effort between the City, service providers and local businesses. There is also a program called the Downtown Streets Team that was developed by the Palo Alto Downtown Business Association in which participants perform clean-up work in the downtown area in exchange for food, clothing and case management services. Program participants receive housing assistance in the form of vouchers to be used at participating SRO hotels and they receive case management as well. Catholic Charities also has a program called Navigator to assist chronically homeless and disabled adult singles and couples. The Opportunity Service Center that opened in the fall of 2006 provides a clean, safe environment where low-income or homeless people can receive basic services (showers, laundry, clothing, food, and health care) as well as counseling and informational services that can move 17 them to shelter or more permanent housing. The Opportunity Service Center is operated by InnVision. Discharge Coordination Policy The City of Palo Alto will be working with representatives from the State and county agencies to create a collaborative strategy for the housing and placement of those released from institutions in the City. This discharge placement planning seeks to help direct the placement of prisoners released from jails, hospitals and other facilities in order to prevent homelessness. Transition from Homelessness to Permanent Housing Shelter Plus Care (S + C): The S + C program is administered by Santa Clara County. It is a federal grant program that provides Section 8 rental assistance to participating landlords on behalf of eligible tenants for a period of up to five years. Extensive support services are a necessary and required component of the program that targets people who are homeless and disabled. There are 17 housing units occupied by S + C clients in Palo Alto. The Barker Hotel: The Barker is owned and operated by the Palo Alto Housing Corporation (PAHC), and has 25 units of permanent Single Room Occupancy (SRO) housing at rents affordable to persons with incomes between 30% and 50% of the median income. Rents range from $367 to $452 per month based on size and whether they have their own bathrooms. Five of the Barker's units are fully accessible by wheelchair users. Priority for occupancy is for persons who are homeless (either unsheltered or sheltered), persons with disabilities, and persons with extremely low -incomes. Seven of the units are available with tenant based Section 8 subsidies through the Shelter Plus Care program. Alma Place: Alma Place is located at 753 Alma Street in Palo Alto, and is also owned and operated by the Palo Alto Housing Corporation. The project, a 106 -unit single room occupancy resident hotel, is affordable to low- and very low-income persons due to the layering of subsidies from City Housing Reserve funds, a private bank loan, an Affordable Housing Program (AHP) Grant, and an award of low-income housing tax credits. The studio apartments rent for $427 to $589 per month and are available to persons earning below 40% of the median income. Ten of the units are available with tenant based Section 8 rental subsidies through the Shelter Plus Care program. An additional 5 units are set aside under the North County Master Lease Program. The Opportunity Center: The Housing Authority of the County of Santa Clara and InnVision the Way Home opened this new facility in September of 2006. The project provides 88 new units of affordable housing for very low-income families and individuals, many of whom were previously homeless. An on -site service center provides information and referral, case management, health care and other supportive services for tenants as well as others in the community. The housing units at the Opportunity Center were fully leased -up on December 27, 2006. Rents range from $371 per month for SRO units to $1400 per month for 2 Bedroom units. There are 22 project based Section 8 subsidies which enable the tenants to pay just 30% of their adjusted gross income for rent. InnVision also administers a private subsidy program at the Opportunity Center which currently provides rental assistance to an additional 20 extremely low- income individuals. 18 Haven Family House: Shelter Network of San Mateo County owns and operates this transitional housing facility for families with children located at 260 Van Buren Road in Menlo Park. Families reside in one and two bedroom apartments for two to four months depending on their individual case plans and situations. Comprehensive case management, support services, and on -site licensed childcare, plus one year of follow-up counseling are available to help families break the cycle of homelessness. Lead -Based Paint There have been no reports of significantly high lead levels in children residing in Palo Alto in recent years. The City's housing and CDBG staff will provide information and referral to property owners, developers and non -profits rehabilitating older housing about lead -based paint hazards. Also, the City requires that any housing rehabilitated with City financial assistance must be inspected for the existence of lead -based paint hazards. The City will provide financial assistance for the abatement of such hazards in these rehabilitated units. Analysis of Impediments to Fair Housing Choice The City of Palo Alto completed an Analysis of Impediments to Fair Housing Choice on February 6, 1996. That report identified a lack of housing options affordable to persons of low - and moderate -income as the major impediment to housing choice. Housing discrimination was also identified as an impediment, with cases based on familial status the most often reported. However, the number of cases of discrimination against persons with physical and mental disabilities has also been increasing. The City of Palo Alto joined with other Santa Clara County entitlement jurisdictions to undertake a countywide fair housing study that includes 2000 census data and was completed in January 2003. The study includes a demographic analysis, a lending analysis, a review of government programs and policies, a survey of Santa Clara residents and service organizations, an assessment of the delivery of fair housing services, and recommendations for new strategies. The information from the study was incorporated in the revisions to the Analysis of Impediments to Fair Housing Choice adopted by the City Council in May 2003. The cities of Sunnyvale, Mountain View and Palo Alto have collaboratively contracted with and funded fair housing services for north Santa Clara County with Project Sentinel. Palo Alto will provide $26,800 in CDBG funds in fiscal year 2009/10 to Project Sentinel for the provision of fair housing complaint investigation, public education and information and referral services. Palo Alto plans to undertake the following actions to foster and maintain affordable housing and to address housing discrimination during the 2009/10 fiscal year: ✓ Provide tenant/landlord counseling and mediation services for Palo Alto residents through the Palo Alto Mediation Program (Project Sentinel). ✓ Support the Countywide website that lists subsidized housing opportunities, wait lists and vacancies. 19 ✓ Continue to support the Human Relations Commission in their documentation and investigation of hate crimes, and in their support of diversity, disability, and affordable housing issues. ✓ Continue to monitor the provision of fair housing services to ensure that adequate services are being provided, and that services are provided cost effectively. ✓ Work with the Santa Clara County CDBG entitlement cities in their effort to implement any recommended improvements to the delivery of services on a regional basis. ✓ Provide funding to Project Sentinel, which was funded by and selected jointly by the cities of Palo Alto, Mountain View and Sunnyvale to reduce discrimination in housing by: a. Investigating cases of housing discrimination b. Conducting consultations with persons who believe they have been discriminated against c. Maintaining a pool of trained testers for investigations and conducting trainings d. Maintaining a panel of attorneys for referral and coordinating meetings for participating attorneys e. Running ads in the Palo Alto Weekly, San Jose Mercury News, and other media outlets f. Distributing fair housing brochures g. Running public service announcements for local radio/TV broadcasts h. Making educational presentations to the community i. Monitoring and reporting on rental sites j. Showing educational videos on housing discrimination on local cable TV k. Organizing an event for National Fair Housing Month Actions to Remove Barriers to Affordable Housing The high cost of housing and the lack of available land to build on are the main barriers to affordable housing in Palo Alto. In 1974 the City adopted a Below Market Rate (BMR) Housing Program, one of the first in the country, to begin to alleviate an affordable housing shortage. Although the Program has successfully generated approximately 236 owner -occupied units and 158 rental units, the numbers are not sufficient to meet the affordable housing need. To address this issue, the City Council increased the percentage requirements and made other modifications to the Program in conjunction with the Housing Element update in 2002. Additionally, the City commissioned an independent economic and policy analysis of its BMR Program with the objective of strengthening the Program and improving its effectiveness. The report was completed in March 2007, and recommendations for changes were approved by the City Council in 2008, with other proposals to be evaluated as part of the Housing Element Update currently underway. A recent update to the zoning ordinance has also provided incentives to facilitate more mixed use housing projects in areas adjacent to commercial/multi-family residential areas. The adoption of a Pedestrian Transit Oriented District (PTOD) also allows development of housing in commercial zones where it had not previously been allowed. The City has identified affordable housing as the primary objective for the expenditure of CDBG funds in the Consolidated Plan. It will continue to allocate the maximum funding available to activities and projects that meet this objective. 20 Amendments to Plan Prior to the submission of any substantial change in the proposed use of funds, citizens will be provided reasonable notice of, and the opportunity to comment on, any proposed Action Plan amendment(s). The American Recovery and Reinvestment Act of 2009 will provide additional CDGB funds to the City that will require an amendment to the proposed Action Plan at a later date. Urgent Need Activities In the event of a local, state or federal disaster declaration for areas within the boundaries of the City of Palo Alto, the City reserves the right to use CDBG or other available federal funds to abate immediate and necessary hazards. Such funds may be used for staff efforts, loans, or outright grants to affected parties, as approved by City Council and allowable under the pertinent Federal Guidelines. Monitoring of Activities The City of Palo Alto follows the monitoring requirements for the use of Federal funds as directed by HUD. The City's Department of Planning and Community Environment monitors its housing production goals and all the activities carried out to further the goals of the Consolidated Plan. For activities funded by CDBG and HOME programs, an annual performance report is completed based on HUD regulations and in accordance with HUD standards. The Consolidated Annual Performance and Evaluation Report (CAPER) is available to the Citizens Advisory Committee and the general public for comments during a 15 -day review period. This report identifies the actual dollars expended, the beneficiaries served, and the program goals achieved. The City requires subrecipients of CDBG funds to submit semi-annual and annual performance reports outlining the extent to which program goals have been achieved, and the number of beneficiaries who have been served. Program performance is measured against the specific program objectives outlined in the contract scope of services. Additionally, City staff will monitor each subrecipient, as necessary; to insure compliance with all regulations governing their administrative, financial, and programmatic operations, and to make sure the subrecipients achieve their performance objectives within the prescribed schedule and budget. Coordination The CDBG entitlement cities (Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino, Gilroy, Milpitas, San Jose), and the Urban County of Santa Clara continue to meet on a regular schedule to discuss issues of mutual concern and to share information and strategies for addressing affordable housing, homelessness, fair housing, and other issues of common concern. The meetings have helped the participants better understand the County and nonprofit social service structure within the County, and provide input to the Santa Clara County Office of Affordable Housing. 21 The City of Palo Alto continues to collaborate with neighboring jurisdictions in both Santa Clara and San Mateo County on issues relating to homelessness in northern Santa Clara County and southern San Mateo County. The City actively participates in the Santa Clara County Collaborative on Affordable Housing and Homeless Issues. As a result of the Countywide Fair Housing Study, the cities of Palo Alto, Mountain View and Sunnyvale have jointly selected fair housing services from a single provider to serve the four cities. In addition a Countywide Fair Housing Task Force has been formed and includes representatives from entitlement jurisdictions, fair housing agencies, and other non-profit organizations. A staff person from the City of Palo Alto is the representative for the North County cities (Mountain View, Palo Alto and Sunnyvale). The Quality Housing and Work Responsibility Act of 1998 requires public housing authorities (PHA's) to develop and implement five-year strategic plans. These plans must describe their long-range goals and provide a strategy for achieving the identified goals. The plans provide details about the PHA's operations, program participants, programs and services. The PHA is required to ensure that their plan is consistent with any applicable Consolidated Plans for jurisdictions in which the PHA is located. This new requirement allows for some collaborative discussions on the role of the Santa Clara County Housing Authority in meeting the housing needs of low-income persons in Palo Alto. To ensure a coordinated approach to the City's human service funding efforts, CDBG and Human Services staff meet to review and discuss applications received through both the CDBG and HSRAP processes. Additionally, a member of the Human Relations Commission serves on the CDBG Citizens Advisory Committee to avoid duplication of effort and to assure collaboration within Palo Alto. 22