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HomeMy WebLinkAboutStaff Report 3534 City of Palo Alto (ID # 3534) Finance Committee Staff Report Report Type: Action Items Meeting Date: 4/16/2013 City of Palo Alto Page 1 Summary Title: Fiscal Year 2014 CDBG Allocations Title: Recommendations on Proposed Fiscal Year 2014 Community Development Block Grant Funding Allocations and the Draft Fiscal Year 2014 Annual Action Plan From: City Manager Lead Department: Planning and Co mmunity Environment Recommendation Staff recommends that the Finance Committee recommend that the City Council take the following actions: 1. Allocate CDBG funding as recommended by staff and as described in this report; 2. Authorize the City Manager to execute the 2014 CDBG application and 2014 Action Plan for CDBG funds, any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and 3. Authorize staff to submit the 2014 Action Plan to HUD by the May 15, 2013 deadline. Executive Summary The City of Palo Alto receives funds annually from the U.S. Department of Housing and Urban Development (HUD) as an entitlement city under the Community Development Block Grant (CDBG) Program. It is the principal Federal program providing localities with grants to devise innovative and constructive neighborhood approaches to improve the physical, economic, and social conditions in their communities through “the development of viable urban co mmunities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.” HUD requirements include preparation of a five-year strategic plan of action, referred to as a Consolidated Plan, to address priority housing and community development needs and to set City of Palo Alto Page 2 goals for attaining identified objectives. On May 3, 2010, the City Council adopted the City’s 2010-2015 Consolidated Plan. An Action Plan is prepared annuall y to identify specific projects to be funded in that year that implement the strategies identified in the Consolidated Plan. The draft 2014 Action Plan (Attachment B) has been made available for public review from March 7, 2013 through April 8, 2013. The Finance Committee is being asked to review the draft Action Plan and funding recommendations. Upon review of the draft plan and funding recommendations, it is requested that the Finance Committee make recommendations to City Council. The City Council will review the recommendations of the Finance Committee at a public hearing scheduled for May 6, 2013. Staff will then submit the Action Plan to HUD in order to meet the May 15, 2013 deadline. Background The CDBG program is authorized under Title I of the Housing and Community Development Act of 1974, as amended. As an entitlement city under the CDBG program, the City of Palo Alto receives funds annually on a formula grant basis. Palo Alto has historically expended all of its CDBG funds on projects benefiting low- and very-low-income persons. HUD regulations require all CDBG funded activities meet one of the three national objectives:  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 five primary CDBG program activity areas in which to allocate funds; Public Services, Planning and Administration, Economic Development, Housing, and Public Facilities. Federal regulations limit the amount that can be spent on Administration and Public Services. No more than 20 percent of the City’s entitlement grant and estimated program income for the following year can be spent on Administration. It is estimated that $91,342 will be available for this category for Fiscal Year 2014. Similarly, Federal law places a maximum spending cap of 15 percent of the grant allocation and 15 percent of any program income received during the previous fiscal year on public services. It is estimated that $76,662 will be available for public service activities for Fiscal Year 2014. As of April 16, 2013 the City has not received its final funding allocation amount fro m HUD. City of Palo Alto Page 3 Action Plan HUD requires submittal of an Annual Action Plan no later than 45 days prior to the start of the program year, or May 15th of every year, that identifies the specific projects to be funded to implement strategies identified in the Consolidated Plan. On May 3, 2010, the City Council adopted the 2010-2015 Consolidated Plan, a five-year strategic plan of action that addresses priority housing and community development needs. CDBG Applications Currently, the CDBG program operates under a two-year funding request cycle. Applications for Fiscal Years 2014 and 2015 were made available in November 2012. A notice of CDBG funding availability was published in the Palo Alto Weekly on November 9, 2012 with completed applications due January 8, 2013. Mandatory proposal-writing workshops were conducted on November 28, 2012 and December 20, 2012 to assist applicants with program regulations and project eligibility questions. The CDBG applications considered for funding for Fiscal Year 2014 are identified on the attached chart (Attachment A). During this funding cycle the City did not receive any funding applications for housing or public facilities improvement projects. Citizen Participation A Citizen Participation Plan is a required component of the CDBG Program. HUD regulations require CDBG recipient agencies to prepare and implement a plan that provides adequate opportunity for citizens to participate in an advisory role in the planning, implementation, and assessment of the CDBG program. On October 18, 2010 the City adopted an amended Citizen Participation Plan and shifted the CDBG advisory role from a separate Citizens Advisory Committee to the established Human Relations Commission (HRC). In summary, the intention of the new plan was to provide a collaborative link between the CDBG funding process and the Human Service Resource Allocation Process (HSRAP). The HRC is now charged with reviewing funding recommendations for the City’s two human service funding sources. A sub -committee comprised of staff and two members of the HRC was established to review both the CDBG and HSRAP funding applications and to provide recommendations to the full commission. The sub-committee met on February 6, 2013 at Cubberley Community Center to discus s the Fiscal Year 2014 CDBG budget, reviewed the applications received, and recommended two options for funding amounts based on the estimated funds available. The meeting was open to the public and publicized on the City’s website and in the Palo Alto We ekly. During the deliberations a consensus for funding recommendations of Catholic Charities of Santa Clara County and Silicon Valley Independent Living Center could not be reached. The concerns included the relatively small grant amounts for both agencies, the perceived sectarian affiliation of Catholic Charities of Santa Clara County, and lack of information on the effectiveness of City of Palo Alto Page 4 Silicon Valley Independent Living Center. As such, two funding options were proposed with final recommendations deferred to the full HRC. On February 28, 2013 the HRC considered the funding recommendations of the subcommittee at a public hearing. While a consensus was reached on two of the funding categories, the majority of the discussion centered on whether or not to fund the above mentioned organizations. A motion to approve a funding recommendation which included funding both organizations at the City’s minimum CDBG grant amount of $5,000, had a vote of 3-2 with one member absent and a second member recusing himself from the discussion and vote. While the vote reflected a majority in favor of funding both organizations, the motion did not carry since the three affirming votes do not technically constitute a majority vote of the HRC. After listening to comments from the public and exploring alternative options for public service activities, the HRC ultimately voted not to fund Catholic Charities of Santa Clara County and distributed the $5,000 amongst the other four agencies. Commitment of Funds HUD regulations require that CDBG funds be expended in a timely manner. Specifically, the regulatory requirement is that no more than 1.5 times a jurisdiction’s annual entitlement grant amount remain in the City’s Letter of Credit 60 days prior to the end of the progr am year. In an effort to reduce the backlog of unspent CDBG funds, HUD employs monetary sanctions against jurisdictions that exceed this timeliness requirement. For this reason, all funding applications are scrutinized to insure the readiness of the prog ram or project to move forward and expend funds in a timely manner. Discussion Palo Alto’s CDBG program continues to be directed towards expanding and maintaining existing affordable housing supply, promoting housing opportunities and choices, maintaining and 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. Moreover, the CDBG program places a high priority to expand the goal of creating economic opportunities for low-income persons. All of the proposed projects for CDBG funding for Fiscal Year 2014, as presented in the draft 2014 Action Plan, address the priority housing and supportive service needs identified in the Consolidated Plan. Fiscal Year 2014 Funds Available for Allocation As of April 16, 2013 the City has not received its final funding allocation from HUD. The estimated allocation amount is based on several assumptions; the Continuing Resol ution and "sequestration" - an across-the-board set of federal budget cuts totaling $1.2 trillion from defense and non-defense spending over the course of the next ten years. The Continuing City of Palo Alto Page 5 Resolution for Federal Fiscal Year 2013 budget includes funding the CDBG program at Fiscal Year 2012 funding levels. Assuming Palo Alto’s share of funding in 2013 will equal its share of funding in 2012 this translates to an allocation of $429,304 prior to the impact of sequestration. Sequestration impacts for non-exempt nondefense discretionary funds were estimated to face an automatic 8.2% reduction for Federal Fiscal Year 2013, resulting in a Fiscal Year 2014 allocation of $394,101 for Palo Alto. Congress’ failure to avoid the mandatory across-the-board cuts makes sequestration an official federal mandate. While there is no official notice to the City from HUD, a Federal Office of Management and Budget report to Congress dated March 1, 2013 revealed a 5% reduction in non-exempt nondefense discretionary funds. As these cuts must be achieved over a seven–month period instead of over twelve months, the effective reduction will be closer to 9%. Planning Staff has used the estimated 8.2% reduction over FY 2012 funding levels for planning purposes with final adjustments pending the City’s official allocation from HUD. Based on the foregoing, the total amount available for allocation in Fiscal Year 2014 is estimated to be $566,757 and summarized as follows: $394,101 Estimated Fiscal Year 2014 Entitlement Grant $ 62,607 Estimated Program Income from Palo Alto Housing Corporation that is generated from rental income in excess of expenses on specific properties acquired or rehabilitated with CDBG funds. $ 110,049 Prior Year Resources including $61,049 in reallocated funds and $49,000 in excess program income) $566,757 ESTIMATED TOTAL AVAILABLE FOR ALLOCATION The following summarizes calculations for funding limitations that are placed on two funding categories: Maximum Available for Public Services Estimated 2014 CDBG Entitlement Grant $394,101 2013 Actual Program Income Received1 $116,982 $511,083 1 Actual Program Income received in Fiscal Year 2013 includes $62,607 from Palo Alto Housing Corporation and $54,374 in Fiscal Year 2012 excess program income from Palo Alto Housing Corporation. City of Palo Alto Page 6 Public Service Cap (15% of $511,083): $ 76,662 Maximum Available for Planning/Administration Estimated 2014 CDBG Entitlement Grant $394,101 Estimated 2014 Program Income $ 62,607 $456,708 Planning/Admin Cap (20% of $456,708): $ 91,342 The difference between the funding caps and the estimated total available, or $398,753, yields the amount that can used to fund projects within th e other three funding categories; Economic Development, Housing, and Public Facilities. Additional funding can be made available for these activities if less is provided for administration or public services. Fiscal Year 2014 – Funding Requests and Recommendations A complete list of funding applications submitted for Fiscal Year 2014, along with separate funding recommendation made by the HRC and Staff, are identified in Attachment A. Unlike recommendations made in previous years, Staff does not agree with the final recommendations made by the HRC for this year. Specifically, Staff is concerned that the manner in which the decision was made regarding Catholic Charities does not recognize the substantial merit of this program and incorrectly emphasizes the religious affiliation of the organization, which could be construed as a denial of equal access to federal funding. Correspondence on this issue can be found in Attachment D, public comment. The primary reason offered for not funding the organization is related to the relatively small grant amount of $5,000 , while the secondary reason is related to the perceived religious affiliation of the organization. Palo Alto’s established minimum CDBG grant amount is $5,000. Catholic Charities’ application for funding includes a request for $6,500, which is more than the minimum grant amount set by the City. Therefore, the grant amount should not be a reason not to fund the agency. If there is a desire or interest to increase the City’s minimum CDBG grant amount, this should be held over for a future policy discussion that is made prior to the application period. As a non-profit 501(c)3 organization, Catholic Charities is an eligible organization under the CDBG program. Furthermore, the Long-term Care Ombudsman Program they are requesting funding for provides secular and non-denominational services to approximately two hundred and fifty (250) Palo Alto residents at assisted living facilities on an annual basis. Funding is limited to personnel costs related to the secular services provided through the program and , like all of the City’s CDBG grantees, Catholic Charities is required to submit source documentations to ensure CDBG funds are used in accordance with their subrecipient agreement and in compliance with HUD requirements. Table 1, Fiscal Year 2014 Funding City of Palo Alto Page 7 Recommendations, summarizes the applications for funding and provides separate recommendations made by the HRC and Staff. Table 1: Fiscal Year 2014 Funding Recommendations Applicant Agency FY2014 Funding Request HRC Recommendations Staff Recommendations Public Services - Palo Alto Housing Corporation – SRO Hotels Supportive Services $ 43,166 $24,865 $ 24,000 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $ 6,500 $0 $ 5,000 InnVision Shelter Network- Opportunity Services Center $ 50,000 $36,027 $ 35,162 YWCA/Support Network – Domestic Violence Services $ 10,000 $10,000 $ 7,500 Silicon Valley Independent Living Center – Housing and Emergency Services $ 5,770 $ 5,770 $ 5,000 Sub-total $115,436 $76,662 $ 76,662 Admin/Fair Housing Services Project Sentinel – Fair Housing Services $ 31,950 $ 26,342 $ 26,342 City of Palo Alto - $ 65,000 $ 65,000 $ 65,000 City of Palo Alto Page 8 Over the past three years, staff has actively taken measures to introduce efficiency in program administration that will result in a less staff intensive program. This includes streamlining the program to reduce staffing needs, operating under a two-year funding cycle, and revised monitoring guidelines to improve efficiency and only require on -site monitoring visits for at-risk grantees. Moreover, staff has identified ways to recover certain personnel costs associated with individual projects that require administration beyond the basic CDBG program administrative requirements. These are referred to as project delivery costs and are typically associated with capital outlay projects that require staff to assist with the de velopment of bid documents and assistance with federal procurement guidelines. For Fiscal Year 2014 this includes reducing CDBG staffing level to a .50 full time equivalency position for basic CDBG administration-related activities. These savings materialize into an opportunity for the City to fund Project Sentinel under the Planning and Administration activity category thus reducing the overall impact on all public service activities and sustaining the amount of public services the City is currently receiving through the CDBG Program. Staff is also proposing to launch a Pilot Microenterprise Assistance Program that will provide access to new opportunities to improve the economic self-sufficiency of low-income families and individuals. A draft summary of the program is provided as Attachment C. The City will be able to recapture another .25 full time equivalency position to cover the cost of administering this program. This makes the total staff recovery from the CDBG entitlement grant equal to a .75 full time equivalency position, thereby not further impacting the general fund. The funding amounts recommended for Fiscal Year 2014 will be adjusted by Staff when the City’s final funding allocation is received from HUD. Specifically, the Public S ervice and Administration funding levels will be adjusted to the maximum available under the public CDBG Administration Sub-total $ 96,950 $ 91,342 $ 91,342 Economic Development City of Palo Alto – Microenterprise Assistance Program $150,000 $150,000 $150,000 Downtown Streets Inc. – Workforce Development Program $314,100 $248,753 $248,753 Sub-total $464,100 $398,753 $398,753 Grand Total $676,486 $566,757 $566,757 City of Palo Alto Page 9 service cap at the same percentage, up to the amount of the request. Decreases will be applied at the same percentages. Fiscal Year 2015 – Funding Requests and Recommendations Palo Alto’s CDBG program is operating under a two -year funding cycle. Funding for Fiscal Year 2015 will be contingent upon the CDBG allocation, program income, and any available funds for reallocation. Public Service and Administration Caps will be recalculated in accordance with available funds. If agencies remain eligible and meet program goals and objectives, the subrecipient agreements will be extended for another year based on the same percentage of the CDBG funds available for public services in Fiscal Year 2014. If the proposed Pilot Microenterprise Assistance Program is determined to be viable and the program goals and objectives are achieved, funding would be requested for a second year based on the CDBG funds available. In the event more money is available than projects, a new application process would be initiated for additional proposals in the Housing funding category. Timeline Funding recommendation made by the Finance Committee will be forwarded to the City Council for review and approval at a public hearing scheduled for May 6, 2013. Subsequently, the adopted Action Plan will be submitted to HUD by May 15, 2013. Resource Impact Several measures have been taken to ensure there is no General Fund subsidy fo r the administration of the CDBG Program. This includes streamlining the program to reduce staffing needs and revised monitoring guidelines to improve efficiency of the program. Currently, staff recovery from the CDBG entitlement grant is $97,861. The total staff recovery from the CDBG entitlement grant proposed for Fiscal Year 2014 is approximately 0.75 full time equivalency, or $101,000, thus not further impacting the general fund. While the amount is not sufficient to cover the full cost of 1 full time equivalency position, it does cover the full staffing needs of administering the CDBG program. The balance of staff time can go towards non -CDBG eligible activities. Policy Implications All of the applications recommended for funding in Fiscal Year 2014 are consistent with the priorities established in the City’s adopted 2010-2015 Consolidated Plan. Moreover, they are consistent with the housing programs and policies in the adopted Comprehensive Plan. City of Palo Alto Page 10 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. Prior to commitment or release of funds for each of the proposed projects, staff will carry out the required environmental r eviews or assessments and certify that the review procedures under CEQA, HUD and NEPA regulations have been satisfied for each particular project. Attachments:  Attachment A - FY14 Applications & Recommendations (PDF)  Attachment B - Draft FY 2014 Action Plan (PDF)  Attachment C - Draft MAP Summary (PDF)  Attachment D - Public Comments (PDF) ATTACHMENT A – FY14 APPLICATIONS & RECOMMENDATIONS CITY OF PALO ALTO CDBG APPLICATIONS FISCAL YEAR 2014 1 Project Sentinel’s Application for funding is being considered under the Planning and Administration funding category AGENCY PROGRAM NAME FY 2014 REQUEST HRC RECOMMENDATIONS STAFF RECOMMENDATIONS Public Services (15% CAP = $76,662) Palo Alto Housing Corp. SRO Resident Support Program $ 43,166 $ 24,865 $ 24,000 Catholic Charities of Santa Clara County Long-Term Care Ombudsman Program $ 6,500 $ - $ 5,000 Inn Vision/Shelter Network Opportunity Services Center $ 50,000 $ 36,027 $ 35,162 YWCA/Support Network Domestic Violence Services $ 10,000 $ 10,000 $ 7,500 Silicon Valley Independent Living Center Housing and Emergency Services $ 5,770 $ 5,770 $ 5,000 Public Service Total $115,436 $ 76,662 $ 76,662 Planning & Administration (20% CAP = $91,342) Project Sentinel1 Fair Housing Services $ 31,950 $ 26,342 $ 26,342 City of Palo Alto CDBG Planning & Administration $ 65,000 $ 65,000 $ 65,000 Planning & Administration Total $ 96,950 $ 91,342 $ 91,342 Economic Development City of Palo Alto Microenterprise Assistance Program $150,000 $150,000 $150,000 Downtown Streets Inc. Workforce Development Program $314,100 $248,753 $248,753 Economic Development Total $464,100 $398,753 $398,753 GRAND TOTAL $676,486 $566,757 $566,757 Estimated Funds Available $ 566,757 Available for Public Service (15% Cap) $ 76,662 Available for Planning/Admin (20% Cap) $ 91,342 Available for Economic Development $ 398,753 DRAFT FISCAL YEAR 2014 ONE-YEAR ACTION PLAN Annual Update of the City’s Consolidated Plan for the Period  July 1, 2013 to June 30, 2014  Public Review and Comment Period:  March 7, 2013 – April 8, 2013  Prepared by the Department of Planning & Community Environment  250 Hamilton Avenue  Palo Alto, CA 94301  Director Curtis Williams  Consuelo Hernandez, Planner – CDBG (   )    ‐      T:    ‐   ‐     E: Consuelo.hernandez@cityofpaloalto.org         City of Palo Alto ‐ New Consolidated Plan Template    In May 2012, the Federal Department of Housing and Urban Development’s Office  of Community Planning and Development introduced the eCon Planning Suite, a  collection of new online tools to assist grantees in creating market‐driven,  leveraged housing and community development plans. One of these tools, the  Consolidated Plan Template, allows grantees to develop and submit their Five  Year Consolidated Plans and Annual Action Plans online. While Palo Alto is not  required to use the eCon Planning Suite until the next Consolidate Planning cycle,  staff has elected to use the online tool.  The following document is an exported  version of the Annual Action Plan entered in HUD’s Integrated Disbursement and  Information System (IDIS).   OMB Control No: 2506‐0117 (exp. 07/31/2015)  DRAFT FISCAL YEAR 2014 ACTION PLAN  TABLE OF CONTENTS  Executive Summary….……………………………..………………………………………………………………………......1    Objectives…….………..………………………………………………………………………………….………....................................2  Outcomes.…………………………………………………………………………………………………………………………………………….2    Public Participation.................................................................................................................5       Expected Resource..................................................................................................................6  Anticipated Resources………………………………………………………..…………………………………………...………………….6  Maximum Spending Caps………………………………………………..……………………………………………………….………….7     Annual Goals and Objectives……………………………………….………………………………………………………..8  Projects………………………………………………………………………………………………………………………………….9    Geographic Distributions…………………………………………….……………………………………………………….10    Affordable Housing……………………………………………………………………….…………………………………….11  Homeless and Special needs…..……….….……………………………………………………………………………………………..12  Barriers to Affordable Housing..……………….………………………………………………………………………………………..15    Other Actions........................................................................................................................17    Program Specific Requirements.............................................................................................18        APPENDICES     Appendix A:  Application for Federal Assistance Form SF‐424  Appendix B:  Certifications  Appendix C:  Public and Private Resources  Appendix D:  Proposed Projects  Appendix E:  Public Hearing Advertisement  Appendix F:  Map  Appendix G:  Public Comment PAGE INTENTIONALLY LEFT BLANK   EXECUTIVE SUMMARY ES‐05 Executive Summary  1. Introduction  The Draft Fiscal Year 2014 Action Plan is a one‐year plan describing the eligible activities the City of Palo  Alto intends to undertake to address the needs and implement the strategies identified in the adopted  2010‐2015 Consolidated Plan.  It is the fourth Action Plan in the implementation of the five‐year plan  covering the period from July 1, 2013 to June 30, 2014 and serves as the City’s application for federal  funds under the U.S. Department of Housing and Urban Development (HUD) formula grant  programs.  Both the Consolidated Plan and the Action Plan are implemented by the City’s Planning and  Community Environment Department.      A total of $566,757 is available for funding projects and programs during the 2013 Program Year.  The  City anticipates receiving $394,101 from the federal Community Development Block Grant (CDBG)  program.  In addition, the City will also reprogram $110,049 in previous year resources, and $62,607 in  anticipated program income.  Palo Alto has access to a variety of federal, state, and local resources to  achieve its housing and community development priorities.  Specific funding resources will be utilized  based on the opportunities and constraints of each particular project or program.  Table 1, Fiscal Year  2014 CDBG Budget, summarizes the uses of the funds proposed during Fiscal Year 2014.    TABLE 1:  FISCAL YEAR 2014 DRAFT BUDGET  Applicant Agency Budget Public Services  Palo Alto Housing Corporation ‐ SRO Hotels Supportive Services $24,865  InnVision Shelter Network ‐ Opportunity Center ‐ Drop‐In Center $36,027  YWCA/Support Network ‐ Domestic Violence Services $10,000  Silicon Valley Independent Living Center – Housing and Emergency Services $   5,770  Sub‐total $76,662  Planning and Administration  Project Sentinel – Fair Housing Services $26,342  City of Palo Alto Administration $ 65,000  Sub‐total $ 91,342  Economic Development  City of Palo Alto – Microenterprise Assistance Program $150,000  Downtown Streets – Workforce Development Program $248,753  Sub‐total $398,753  Grand Total $566,757        Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 1 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  2. Summary of the objectives and outcomes identified in the Plan Needs Assessment  Overview  O BJECTIVES The City intends to provide funding for various activities which are consistent with the adopted  Consolidated Plan.  Key objectives for Fiscal Year 2014 include the following:   Support efforts to help homeless or low‐income Palo Alto residents at risk of homelessness  receive necessary supportive services;   Affirmatively further Fair Housing; and   Improve employment opportunities for low‐income persons.  O UTCOMES The City’s outcomes for this planning period are directed at expanding public services and economic  opportunities for low‐income persons.  Specifically, the City anticipates the following outcomes from its  2014 activities:   131 persons will have improved accessibility to a suitable living environment.   600 homeless persons will be provided with supportive services and have improved accessibility  to a suitable living environment.   45 unduplicated adults and children will be provided emergency safety net supportive services  and emergency shelter as needed.   25 households will have improved accessibility to decent affordable housing.   25 individuals will be placed in jobs through job training/employment readiness classes   5 Microbusinesses will be provided with resources    3. Evaluation of past performance  The City has historically allocated CDBG funds to activities that benefit low and moderate income  persons, with a top priority to increase affordable housing opportunities within the City.  Palo Alto has  one of the most expensive housing markets in the country due in part to the lack of available  land.  Notwithstanding, 91 new affordable rental housing units have been created during the 2010‐2015  Consolidated Planning Period.  In addition, Eden Housing’s proposed project at 801‐841 Alma Street is  expected to create 50 additional new rental units within the next few years.      4. Summary of citizen participation process and consultation process  Palo Alto encourages citizen participation through the Action Plan process.  This includes consulting local  organizations, holding public meetings, and encouraging public comment during the public review  period.  A total of three public hearings have been planned in order to allow for public input.  The City  actively reached out to all applicants and posted updates on the CDBG website.  A 30‐day comment  period from March 7, 2013 through April 8, 2013 will give citizens an opportunity to offer comments on  Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 2 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  the draft Action Plan.  This draft will be posted on the City’s CDBG website and presented at a public  hearing to the Finance Committee on April 16, 2013.      5. Summary of public comments    A summary of all written comments received during the public comment period will be inserted before  the Action Plan is submitted to HUD.    6. Summary of comments or views not accepted and the reasons for not accepting them  The City accepts and responds to all comments that are submitted.        Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 3 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  PR‐05 Lead & Responsible Agencies  1. Agency/entity responsible for preparing/administering the Consolidated Plan  The following are the agencies/entities responsible for preparing the Consolidated Plan and those  responsible for administration of each grant program and funding source.    TABLE 2:  RESPONSIBLE AGENCY  Agency Role Name Department/Agency  Lead Agency PALO ALTO    Planning and Community Environment    Consolidated Plan Public Contact Information    Consuelo Hernandez, Planner ‐ CDBG  City of Palo Alto Department of Planning and Community Environment  250 Hamilton Avenue, 5th Floor  Palo Alto, CA 94301  Consuelo.hernandez@cityofpaloalto.org   (650) 329‐2428 Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 4 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  PUBLIC PARTICIPATION AP‐12 Participation    1. Summary of citizen participation process/Efforts made to broaden citizen participation    Summarize citizen participation process and how it impacted goal‐setting Citizen Participation  Outreach:    On October 18, 2010, the Palo Alto City Council adopted an amended Citizen Participation Plan that  utilizes the Human Relations Commission (HRC), rather than a separate Citizen Advisory Committee, to  promote and encourage citizen participation in the planning, implementation and assessment of the  CDBG Program.  The HRC is uniquely positioned to understand and consider the needs of low and very  low income persons, members of minority groups, the elderly, persons with disabilities, and residents of  neighborhoods where CDBG activities may be undertaken.  Thus far the revisions to the Citizen  Participation Plan have promoted a more coordinate and effective response by the City to the human  service needs in the community.  A summary of public participation is outlined in Table 3, Citizen  Participation Outreach. This Draft Action Plan is being made available for a 30‐day comment period to  give citizens an opportunity to offer comments.  A summary of comments received will be added to  Appendix G.    TABLE 3:  CITIZEN PARTICIPATION OUTREACH  Mode of  Outreach  Target of  Outreach  Summary of response/attendance Summary of  comments received  Public  Meeting  Non‐ targeted/broad  community  The Finance Committee is scheduled to hold a public  hearing on April 16, 2013.  A summary will be added  after the meeting.    Public  Meeting  Non‐ targeted/broad  community  The City Council is scheduled to hold a public hearing  on May 6, 2013.  A summary will be added after the  meeting.    Public  Meeting  Non‐ targeted/broad  community     CDBG Applicants  HRC Selection Committee met on February 6, 2013 to  discuss the applications for funding.  Representatives  from agencies requesting CDBG funds for Fiscal Year  2014 were present and answered questions pertaining  to their respective programs.    Newspaper Ad Non‐ targeted/broad  community       Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 5 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  EXPECTED RESOURCES AP‐15 Expected Resources     Introduction  In Fiscal Year 2014, Palo Alto will allocate approximately $566,757 to eligible activities that address the  needs identified in the Consolidated Plan.  As of March 7, 2013 the City has not received its final funding  allocation from HUD.  The estimated allocation amount is based on several assumptions; the Continuing  Resolution and "sequestration" ‐ an across‐the‐board set of federal budget cuts totaling $1.2 trillion  from defense and non‐defense spending over the course of the next ten years.  The Continuing  Resolution for Federal Fiscal Year 2013 budget includes funding the CDBG program at FY2012 funding  levels.  Assuming Palo Alto’s share of funding in 2013 will equal its share of funding in 2012 this  translates to an allocation of $429,304 prior to the impact of sequestration.      Sequestration impacts for non‐exempt nondefense discretionary funds were estimated to face an  automatic 8.2% reduction for Federal Fiscal Year 2013 resulting in a Fiscal Year 2014 allocation of  $394,101 for Palo Alto.  Congress’ failure to evade the mandatory across‐the‐board cuts makes  sequestration an official federal mandate.  While there is no official notice to the City from HUD, a  Federal Office of Management and Budget report to Congress dated March 1, 2013 revealed a 5%  reduction in non‐exempt nondefense discretionary funds.  Given these cuts must be achieved over  seven months instead of twelve the effective reduction will be closer to 9%.            Anticipated Resources  Planning Staff has used the estimated 8.2% reduction over FY 2012 funding levels for planning purposes  with final adjustments pending the City’s official allocation from HUD.  Based on the foregoing, the total  amount available for allocation in Fiscal Year 2014 is estimated to be $566,757.  The funding available  for allocation includes $394,101 in CDBG entitlement funds, $110,049 of prior year CDBG resources, and  $62,607 in estimated program income as summarized in Table 4, Funding Available for  Allocation.  Program income is income directly generated from the use of CDBG funds that is returned to  the CDBG program for allocation to new activities.  The program income anticipated below is from  various loan repayments from Palo Alto Housing Corporation.      TABLE 4:  FUNDING AVAILABLE FOR ALLOCATION  $394,101 Fiscal Year 2013 Entitlement Grant $110,019  Prior Year Resources – Excess Program Income:     $ 49,000 ‐ rental income in excess of expenses on specific properties      acquired or  rehabilitated with CDBG funds.  Reallocated funds:      $ 44,608.75 – Palo Alto Housing Corp. Ventura Rehab  (FY 2012)        $  16,440.64 – Palo Alto Housing Corp. Sheridan Rehab  (FY 2012)  $ 62,607 Estimated Program Income from Palo Alto Housing Corporation (PAHC) that is generated  from loan repayments.  $566,757 ESTIMATED TOTAL AVAILABLE FOR ALLOCATION   Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 6 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  The following summarizes calculations for funding limitations that are placed on two funding categories:     Maximum Available for Public Services  Estimated 2014 CDBG Entitlement Grant     $394,101  2013 Actual Program Income Received1      $116,982    Public Service Cap (15% of $511,083)       $  76,662    Maximum Available for Planning/Administration  Estimated 2014 CDBG Entitlement Grant     $394,101  Estimated 2014 Program Income       $   62,607  Planning/Admin Cap (20% of $456,708)      $   91,342    The difference between the funding caps and the estimated total available, or $398,753, yields the  amount that can used to fund projects within the other three funding categories; Economic  Development, Housing, and Public Facilities.  Additional funding can be made available for these  activities if less is provided for administration or public services.      Explain how federal funds will leverage those additional resources (private, state and local  funds), including a description of how matching requirements will be satisfied    In order to comprehensively address community needs and the goals identified in the Consolidated Plan,  the City will augment CDBG funds utilizing a variety of additional funding sources.  These funding  sources include other federal funds, state, and local funds.  A full listing of potential funding sources is  appended to this Action Plan as Appendix C – Public and Private Resources.    If appropriate, describe publically owned land or property located within the jurisdiction that  may be used to address the needs identified in the plan    Not applicable                                                               1 Actual Program Income received in Fiscal Year 2013 includes $62,607 from Palo Alto Housing Corporation and  $54,374 in Fiscal Year 2012 excess program income from Palo Alto Housing Corporation.   Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 7 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  ANNUAL GOALS AND OBJECTIVES AP‐20 Annual Goals and Objectives     Goals Summary Information  TABLE 5: GOALS SUMMARY  Goal Name Category Needs  Addressed  Funding Goal Outcome Indicator Support Activities to  end homelessness  Affordable Housing  Homeless  Supportive  services  CDBG:  $60,892  Public service activities  other  than Low/Moderate  Income  Housing Benefit:    731 Persons  Public Service Activities  Homeless  Non‐Homeless Special  Needs  Community  services  CDBG:  $15,770  Public service activities  other  than Low/Moderate  Income  Housing Benefit:    69 persons  Promote Fair Housing  Choice Fair Housing Fair Housing CDBG:  $26,342     Other: 27  Economic  Opportunities  Homeless  Non‐Homeless Special  Needs  Non‐Housing  Community  Development  Economic  Development   CDBG:  $398,753  Jobs created/retained:  25 Jobs  Businesses assisted: 5     Estimate the number of extremely low‐income, low‐income, and moderate‐income families  to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b)    Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 8 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  PROJECTS AP‐38 Project Summary  Project Summary Information    Introduction     Table 6, Project Summary, provides a list of the activities with the specific priority need identified in the  Consolidated Plan the City will fund with CDBG funds during Fiscal Year 2014.  Complete project  descriptions are located in Appendix D – Proposed Projects (HUD Table 3Cs).     TABLE 6: PROJECT SUMMARY  No.   Project Goals Supported Needs Addressed Funding  1  SRO Resident Support Program Activities to end homelessness supportive services CDBG: $24,865  Description Resident support services program at two SRO properties in Palo Alto  Planned Activities One‐on‐one consultations for information and referral, support counseling         2  Opportunity Services Center (OSC) Activities to end homelessness supportive services CDBG: $36,027  Description The OSC is a comprehensive one‐stop multiservice drop‐in day center  Planned Activities Access to nutritious food, receive mail, and case management         3  Domestic Violence Services Public Service Activities community services CDBG: $10,000  Description Addresses issues of domestic violence for Palo Alto residents  Planned Activities Emergency shelter and essential services to victims of domestic violence         4  Housing and Emergency Services Public Service Activities supportive services CDBG: $5,770  Description Assistance for individuals with disabilities and their families  Planned Activities Administrative support of the housing program and emergency info & referral         5  Project Sentinel Promote Fair Housing Choice fair housing education CDBG: $26,342  Description Fair Housing services aim to protect the fundamental rights of housing  Planned Activities Community outreach, education, and investigations of complaints         6  Microenterprise Assistance Program Economic Opportunities employment growth CDBG: $150,000  Description Access to new opportunities and builds foundations of entrepreneurship  Planned Activities Grants to support microenterprise businesses         7  Workforce Development Program Economic Opportunities workforce training CDBG: $248,753  Description Provides homeless and/or extremely low‐income individuals workforce dev.  Planned Activities    Employment development outreach to local businesses and job search skills   Describe the reasons for allocation priorities and any obstacles to addressing underserved  needs  Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 9 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  GEOGRAPHIC DISTRIBUTION AP‐50 Geographic Distribution     Description of the geographic areas of the entitlement (including areas of low‐income and  minority concentration) where assistance will be directed     The City considers the provisions of all types of housing assistance on a citywide basis consistent with  the policies of the Comprehensive Plan.  Palo Alto does not have specific target areas for housing  activities, instead the City attempts to provide housing affordable to lower‐income persons throughout  the City.     Minority concentration includes areas in the City where the concentration of racial and ethnic minority  population is 10% or higher than their total citywide representation.  There are only a few areas that are  considered to have a concentration of minority populations or low‐income residents in Palo Alto.  The  CDBG Program defines low‐income concentration as any census block group where 51% or more  residents earn 80% of MFI or less.  An exception exists for a jurisdiction that does not have any areas  meeting this definition, such as Palo Alto, which includes the highest quartile of all areas in the City in  terms of degree of concentration is used.  However, Palo Alto does not qualify activities under the LMI  area benefit category.               Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 10 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  AFFORDABLE HOUSING AP‐55 Affordable Housing     Introduction  Palo Alto 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.  Several of the projects being proposed for Fiscal Year 2014 provide  essential affordable housing services to homeless, non‐homeless, and special needs populations.  Table  7, One‐Year Goals for the Number of Households to be supported, summarizes the number of  households to be served through the SRO Resident Support Program, services received at the  Opportunity Services Center, emergency shelter to victims of domestic violence, and new proposed  services provided through the Housing and Emergency Services Program.      TABLE 7:  ONE‐YEAR GOALS FOR AFFORDABLE HOUSING BY SUPPORT REQUIREMENT  One Year Goals for the Number of Households to be Supported  Homeless 950  Non‐Homeless 5  Special‐Needs 24  Total 979      Over the past three Fiscal Years Palo Alto has funded a number of projects that have resulted in the  production of new affordable housing units, rehabilitation of existing multi‐family rental units, and  acquisition of existing units.  During the current funding cycle the City did not receive any applications  for affordable housing supported through the production of new units or rehabilitation of existing units  as summarized in Table 8, One‐Year goals for Affordable Housing by Support Type.        TABLE 8:  ONE‐YEAR GOALS FOR AFFORDABLE HOUSING BY SUPPORT TYPE   One Year Goals for the Number of Households Supported Through  Rental Assistance 0  The Production of New Units 0  Rehab of Existing Units 0  Acquisition of Existing Units 0  Total 0             Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 11 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  AP‐65 Homeless and Other Special Needs Activities   Introduction    The City of Palo Alto plans to use its CDBG funds to promote the local provision of services for low‐ income Palo Alto residents.  A number of the City’s proposed Fiscal Year 2014 programs will directly  benefit special needs groups.   Moreover, through the City’s Human Services Resource Allocation  Process (HSRAP), funding is provided to support services and resources targeted to Homeless and  Special Needs populations.       Describe the jurisdictions one‐year goals and actions for reducing and ending homelessness including:  Reaching out to homeless persons (especially unsheltered persons) and assessing their individual  needs:  In January 2013, a Point‐In‐Time (PIT) count was conducted for Santa Clara County by the City of San  Jose in conjunction with the County of Santa Clara. The PIT is an intense survey used to count the  number of homeless living throughout Santa Clara County on the streets, in shelters, safe havens or in  transitional housing, or in areas not meant for human habitation. The survey was conducted by  hundreds of volunteers who asked those living on the streets, as well as the residents of shelters, safe  havens and transitional housing, to respond to questions related to their needs. A portion of the survey  addresses the needs of those surveyed.     Addressing the emergency shelter and transitional housing needs of homeless persons:  In addressing the Consolidated Plan and the Continuum of Care strategic plans, Palo Alto will provide  funding for essential services and operations to local emergency shelters and transitional housing  facilities. The facilities provide shelter and services to homeless families with children, single parents  with children, single men and women, victims of domestic violence and sexual abuse, homeless  veterans, and the population living on the street.     Helping homeless persons (especially chronically homeless individuals and families, families with  children, veterans and their families, and unaccompanied youth) make the transition to permanent  housing and independent living, including shortening the period of time that individuals and families  experience homelessness, facilitating access for homeless individuals and families to affordable  housing units, and preventing individuals and families who were recently homeless from becoming  homeless again:    The City of Palo Alto plans to use its CDBG funds to promote the local provision of services for low‐ income Palo Alto residents.  A number of the City’s proposed Fiscal Year 2013 programs will directly  benefit special needs groups.   Moreover, through the City’s Human Services Resource Allocation  Process (HSRAP), funding is provided to support services and resources targeted to Homeless and  Special Needs populations.      CDBG Funded  InnVision Shelter Network ‐ Opportunity Center:  The Opportunity Center facility in Palo Alto provides a clean, safe environment and resources for very‐ low income or homeless persons including bagged groceries, hot meals, a rotating church shelter  program, information and referral, shower and laundry facilities, case‐management, and money  management (payee) programs, clothing and health services.  A daily hot meal is provided at a different  location each day and bagged groceries are distributed daily at the Downtown Food Closet.  The Hotel  Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 12 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  de Zink rotating church shelter program is housed at a different location each month.      Downtown Streets Team – Workforce Development Program:   This economic development program will help motivated graduates of the Downtown Streets Team  programs move on to stable employment.  The program will include mentoring, counseling, job  readiness, job training, and assistance.  HSRAP Funded    Abilities United – Disability Services:  This organization provides services and activities for adults and children with mental and physical  disabilities.    Community Technology Alliance – Shared Technical Infrastracture:  Provides 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 and tracking system is maintained  to assist service providers and those seeking shelter.    Downtown Streets Team – Downtown Streets:    Identifies motivated homeless individuals and provides them with jobs cleaning and beautifying the  downtown area in exchange for housing and food vouchers. The program includes counseling, coaching  and training to help program participants build self‐esteem, confidence and connections in the  community.    Momentum for Mental Health – Homeless Outreach Program:  Mental health outreach program that provides emergency on‐call services to assist local mentally ill  homeless persons.  The agency provides services to City departments, libraries, community centers and  local homeless service providers.    Helping low‐income individuals and families avoid becoming homeless, especially extremely low‐ income individuals and families and those who are: being discharged from publicly funded institutions  and systems of care (such as health care facilities, mental health facilities, foster care and other youth  facilities, and corrections programs and institutions); or, receiving assistance from public or private  agencies that address housing, health, social services, employment, education, or youth needs.    Palo Alto Housing Corporation – SRO Tenant Counseling:  Provides counseling and case‐management services for the low‐income residents and prospective  residents of single room occupancy hotels in Palo Alto.  Many SRO residents have a history of  homelessness and special needs.  The program plays a vital role in helping residents maintain their  stability and housing.    Avenidas – Senior Services:  Agency is the main provider of senior services in the Mid‐Peninsula area.    La Comida de California – Hot Meals for The Elderly:  Daily meal program for the elderly.       Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 13 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  May View Health Center – Health Care for Low Income & Homeless Palo Alto residents:  Basic primary health care services and health education and referral services for uninsured low‐income  and homeless individuals from the Palo Alto area.    Peninsula HealthCare Connection – Project Downtown Connect:  Provider of health care services at the Opportunity Center of Palo Alto.  Project Downtown Connect  provides Section 8 vouchers to eligible homeless individuals and families.    SALA – Legal Assistance to Elders:  Senior Adults Legal Assistance (SALA) provides affordable legal assistance to elders.    Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 14 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  AP‐75 Barriers to affordable housing  Introduction  A barrier of affordable housing is defined in the Consolidated Plan as a public policy such as land use  controls, property taxes, zoning ordinances, building codes, fees, growth limits, and other similar  policies.  Palo Alto faces a number of obstacles in meeting its affordable housing strategies including  governmental and non‐governmental constraints that may act as barriers.  Governmental constraints  can include land use policies governed by local general plans and zoning ordinances.  The largest non‐ governmental constraints are market‐related factors, such as land, construction costs, and the  availability of financing.  For instance, during the economic downturn and slumped housing market  almost all of the for‐sale and most rental properties in Palo Alto remained out of reach for all but  households with above moderate income.  Moreover, there continues to be a low vacancy rate for  rental housing.  According to the 2010 U.S. Census the rental vacancy rate in the City was 5.6%.  Some of  the barriers to building more housing are the result of decisions and priorities set by the State or the  Federal Government that must decide how to best allocate limited funding.  Policies and priorities set by  these agencies often do not favor high cost areas, and most federal housing resources are not readily  available to the City of Palo Alto.      Actions it planned to remove or ameliorate the negative effects of public policies that serve as  barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances,  building codes, fees and charges, growth limitations, and policies affecting the return on residential  investment:    The City of Palo Alto takes a number of actions to eliminate barriers to the development of affordable  housing including participation in a county‐wide effort to provide additional affordable housing units,  programs in the 2007‐2014 Housing Element Update to increase the supply of affordable housing, and  Development Impact fees for Housing.     Housing Trust Fund of Santa Clara County (HTSCC)  The HTSCC was created to provide additional financial resources to address the County’s affordable  housing deficit.  HTSCC’s mission is to make Silicon Valley a more affordable place to live.  Loans and  grants are issued to increase the supply of affordable housing, assist first‐time home buyers, prevent  homelessness and stabilize neighborhoods.  Palo Alto was among the contributors during its founding  and has continued to allocate funding.  A provision was added to ensure the City’s funds be used  exclusively for qualifying affordable housing projects within the City of Palo Alto.  The most recent  included $200,000 from the City’s Residential Housing Fund for Fiscal Year 2012.   Participation in the HTSCC has increased the available housing funding for a number of Palo Alto Projects  as summarized in table 2.4.  In addition, HTSCC has invested over $100,000 assisting 16 households to  purchase homes in Palo Alto through its first‐time homebuyer program.    Adjustments or Improvements to Affordable Housing Strategies    2007‐2014 Housing Element Update  Palo Alto’s Housing Element of the City’s Comprehensive Plan is the chief policy document describing  the City’s housing needs and the policies and programs the City will use to meet those needs.  The 2007‐ 2014 Housing Element Update is currently being reviewed by the State Department of Housing and  Community Development and it is anticipated to be adopted by the end of the next program year.      Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 15 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  Development Impact Fees for Housing  Palo Alto’s impact fees are comprised of four categories: Housing, traffic, community facilities, and  Parkland dedication.  The housing fee to non‐residential development increased from $17.97 to $18.44  per square foot, effective August 28, 2012.  The fee rate applies to all net new commercial square  footage on a site.  Full payment is required at building permit issuance with some exemptions including  hospitals and convalescent facilities, private education facilities, public facilities and private clubs, lodges  and fraternal organizations.     AFFIRMATIVELY FURTHERING FAIR HOUSING  Fair Housing is crucial to ensuring persons of like income levels have equal access to housing.  HUD  requires that jurisdictions receiving federal funds commit to affirmatively further fair housing.  A fair  housing impediment, according to HUD, is considered to be “any actions, omissions, or decisions which  have the effect of restricting housing choices or the availability of housing choices because of race,  color, religion, sex, disability, familial status, or national origin.”  A key part of affirmatively furthering fair housing includes the preparation of an Analysis of  Impediments to Fair Housing Choice (AI).  The City of Palo Alto is currently reviewing and updating its AI.    ACTIVITIES TO AFFIRMATIVELY FURTHER FAIR HOUSING  Palo Alto is committed to fair housing practices and places a priority on promoting and ensuring an  atmosphere of non‐discrimination in housing choice.  In Fiscal Year 2014 the City of Palo Alto will  provide $26,342 in CDBG funds to Project Sentinel for the provision of fair housing complaint  investigations, public education and information, and referral services.  The following actions to foster  and maintain affordable housing to address housing:     Provide tenant/landlord counseling and mediation services for Palo Alto residents through the  Palo Alto Mediation Program (Project Sentinel).   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 are cost effective.   Continue to participate in the Santa Clara County Fair Housing Task Force.   Provide funding to Project sentinel to reduce discrimination in housing by:    1. Investigating cased of housing discrimination in Palo Alto  2. Conducting consultation with persons who believe they have been discriminated against  3. Maintaining a pool of trained testers for investigations and conducting trainings  4. Maintaining a panel of participating attorneys for referral  5. Running fair housing ads in the Palo Alto Weekly, San Jose Mercury News and other  media outlets  6. Distributing fair housing brochures   7. Running public service announcements for local radio/TV broadcasters  8. Making educational presentations to the community  9. Monitoring and testing rental housing sites for fair housing compliance  10. Organizing an event for National Fair Housing Month    Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 16 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  OTHER ACTIONS AP‐85 Other Actions     Actions planned to reduce lead‐based paint hazards   Lead poising can cause permanent damage to the brain and many other organs, and can result in  reduced intelligence and behavioral problems in young children.  More than 80,000 children younger  than 6 years old living in the United States have lead in their blood that is above the level of concern set  by the Centers for Disease Control and Prevention (CDC).  A significant number of these children are in  families of low income and are living in old homes with heavy concentration of lead‐based paint and  lead‐contaminated dust and soil in the environment.     The City’s housing and CDBG staff provide information and referral to property owners, developers, and  non‐profit organizations rehabilitating older housing about lead‐based paint hazards.  There is no  information that indicates lower income households are more likely to be exposed to lead paint hazards  in Palo Alto than are families in the general population.  The City’s 2010‐15 Consolidated Plan has a  more detailed discussion of lead based paint in the City.  Any house to be rehabilitated with City  financial assistance is required to be inspected for the existence of lead paint and lead paint  hazards.  The City will provide financial assistance for the abatement of such hazards in units  rehabilitated with City funding.    Actions planned to reduce the number of poverty‐level families   The City of Palo Alto provided either CDBG or HSRAP funding to several services for persons within the  community who are very low‐income, homeless, or at‐risk of becoming homeless.  In summary, the goal  of all of the services listed in the section above is to prevent homelessness, help people move out of  homelessness and to reduce the number of persons below the poverty line.     Actions planned to develop institutional structure    Implementation of CDBG funds is overseen by the Department of Planning and Community  Environment.  Human Services and social service delivery in Palo Alto by non‐profit agencies is  coordinated through the Human Services Resource Allocation Program (HSRAP).  The City Council  approves projects and programs that meet the City’s goals.  Collectively, the programs funded under  CDBG and HSRAP provide essential services to the community.  Applications are received and reviewed  congruently which allows for internal administrative efficiencies, creates a visible public forum for the  CDBG program, and provides a more coordinated and effective approach at addressing the City’s human  service needs.      CDBG entitlement cities, including Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino, Gilroy,  Milpitas, and San Jose, along with 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 a  variety of issues of common concern.  These meetings have helped 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.  Finally, the meeting serves as a forum for HUD representatives to  share information and answer questions from entitlement jurisdictions regarding issues of mutual  importance.           Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 17 City of Palo Alto March 2013   OMB Control No: 2506‐0117 (exp. 07/31/2015)  PROGRAM SPECIFIC REQUIREMENTS AP‐90 Program Specific Requirements     Introduction    Community Development Block Grant Program (CDBG)   Reference 24 CFR 91.220.(I)(1)   Projects planned with all CDBG funds expected to be available during the year are identified in the  Projects Table. The following identifies program income that is available for use that is included in  projects to be carried out.   TABLE 9:  PROGRAM INCOME SUMMARY  1. The total amount of program income that will have been received before the start of the  next program year and that has not yet been reprogrammed  $49,000 2. The amount of proceeds from section 108 loan guarantees that will be used during the year  to address the priority needs and specific objectives identified in the grantee's strategic plan.  0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has  not been included in a prior statement or plan  0 5. The amount of income from float‐funded activities 0 Total Program Income: $49,000   TABLE 10: OTHER CDBG REQUIREMENTS  1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit  persons of low and moderate income.  Overall Benefit ‐ A consecutive period of one,  two or three years may be used to determine that a minimum overall benefit of 70%  of CDBG funds is used to benefit persons of low and moderate income. Specify the  years covered that include this Annual Action Plan. 100%                       Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 18 City of Palo Alto March 2013 Appendix A: Application for Federal Assistance Form SF-424 Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 19 City of Palo Alto March 2013 APPLICATION FOR Version 7/03 FEDERAL ASSISTANCE 2. DATE SUBMITTED Applicant Identifier 1. TYPE OF SUBMISSION: Application Pre-application 3. DATE RECEIVED BY STATE State Application Identifier Construction Construction Non-Construction Non-Construction 4. DATE RECEIVED BY FEDERAL AGENCY Federal Identifier 5. APPLICANT INFORMATION Organizational Unit: Legal Name: Department: Organizational DUNS: Division: Address: Street: Name and telephone number of person to be contacted on matters involving this application (give area code) Prefix:First Name: City: Middle Name County: Last Name State:Zip Code Suffix: Country: Email: 6. EMPLOYER IDENTIFICATION NUMBER (EIN): - Phone Number (give area code) Fax Number (give area code) 8. TYPE OF APPLICATION: New Continuation Revision 7. TYPE OF APPLICANT: (See back of form for Application Types) If Revision, enter appropriate letter(s) in box(es) (See back of form for description of letters.) Other (specify) Other (specify)9. NAME OF FEDERAL AGENCY: 10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: - TITLE (Name of Program): 12. AREAS AFFECTED BY PROJECT (Cities, Counties, States, etc.): 11. DESCRIPTIVE TITLE OF APPLICANT’S PROJECT: 13. PROPOSED PROJECT 14. CONGRESSIONAL DISTRICTS OF: Start Date:Ending Date:a. Applicant b. Project 15. ESTIMATED FUNDING:16. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS? a. Federal $.00 b. Applicant $.00 a. Yes.THIS PREAPPLICATION/APPLICATION WAS MADE AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON c. State $.00 DATE: d. Local $.00 b. No.PROGRAM IS NOT COVERED BY E. O. 12372 e. Other $.00 OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW f. Program Income $.00 17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? g. TOTAL $.00 Yes If “Yes” attach an explanation. No 18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLICATION/PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED. a. Authorized Representative Prefix First Name Middle Name Last Name Suffix b. Title c. Telephone Number (give area code) d. Signature of Authorized Representative e. Date Signed Previous Edition Usable Authorized for Local Reproduction Standard Form 424 (Rev.9-2003) Prescribed by OMB Circular A-102 B-13-MC-06-0020 B-13-MC-06-0020 City of Palo Alto Planning and Community Environment 050520782 Planning P.O. BOX 10250 Miss Consuelo Palo Alto Santa Clara Hernandez CA 94303 9 (650) 329-2428 consuelo.hernandez@cityofpaloalto.org (650) 329-2154 D. Township Government U.S. Department of Housing and Urban Development The City of Palo Alto's Community Development Block Grant (CDBG) Program for Fiscal Year 2014. Community Development Block Grant (CDBG) City of Palo Alto, County of Santa Clara, State of California 07/01/2013 06/30/2014 14th Congressional District 14th Congressional District 394,101 110,049 62,607 566,757 Mr.James Keene City Manager (650) 329-2563 ✔ ✔ 4 6 983000 1 8124 OMB Approved No. 3076-0006 Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 20 City of Palo Alto March 2013 Appendix B: Certifications Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 21 City of Palo Alto March 2013 CPMP Non-State Grantee Certifications 1 Version 2.0 CPMP Non-State Grantee Certifications Many elements of this document may be completed electronically, however a signature must be manually applied and the document must be submitted in paper form to the Field Office. This certification does not apply. This certification is applicable. NON-STATE GOVERNMENT CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about – a. The dangers of drug abuse in the workplace; b. The grantee's policy of maintaining a drug-free workplace; c. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will – a. Abide by the terms of the statement; and b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted – a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 22 City of Palo Alto March 2013 Palo Alto CPMP Non-State Grantee Certifications 2 Version 2.0 Anti-Lobbying -- To the best of the jurisdiction's knowledge and belief: 8. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 9. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 10. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date Name Title Address City/State/Zip Telephone Number James Keene City Manager 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2563 Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 23 City of Palo Alto March 2013 Palo Alto CPMP Non-State Grantee Certifications 3 Version 2.0 This certification does not apply. This certification is applicable. Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan -- Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria: 11. Maximum Feasible Priority - With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 12. Overall Benefit - The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2011, 2012, 2013, (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 13. Special Assessments - It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force -- It has adopted and is enforcing: 14. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and 15. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 24 City of Palo Alto March 2013 Palo Alto CPMP Non-State Grantee Certifications 4 Version 2.0 Compliance With Anti-discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint -- Its activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K and R, of title 24; Compliance with Laws -- It will comply with applicable laws. Signature/Authorized Official Date Name Title Address City/State/Zip Telephone Number James Keene City Manager 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2563 Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 25 City of Palo Alto March 2013 Palo Alto CPMP Non-State Grantee Certifications 10 Version 2.0 This certification does not apply. This certification is applicable. APPENDIX TO CERTIFICATIONS Instructions Concerning Lobbying and Drug-Free Workplace Requirements Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Drug-Free Workplace Certification 1. By signing and/or submitting this application or grant agreement, the grantee is providing the certification. 2. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. 3. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug-free workplace requirements. 4. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). 5. If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). 6. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check if there are workplaces on file that are not identified here. The certification with regard to the drug-free workplace is required by 24 CFR part 21. Place Name Street City County State Zip Palo Alto City Hall 250 Hamilton Ave. Palo Alto Santa Clara CA 94301 7. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common rule apply to this certification. Grantees' attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 26 City of Palo Alto March 2013 Palo Alto CPMP Non-State Grantee Certifications 11 Version 2.0 controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: a. All "direct charge" employees; b. all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and c. temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). Note that by signing these certifications, certain documents must completed, in use, and on file for verification. These documents include: 1. Analysis of Impediments to Fair Housing 2. Citizen Participation Plan 3. Anti-displacement and Relocation Plan Signature/Authorized Official Date Name Title Address City/State/Zip Telephone Number James Keene City Manager 250 Hamilton Avenue Palo Alto, CA 94301 650-329-2563 Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 27 City of Palo Alto March 2013 Appendix C: Public and Private Resources Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 28 City of Palo Alto March 2013 PUBLIC AND PRIVATE RESOURCES Palo Alto has access to a variety of federal, state, and local resources to achieve its housing and community development priorities. The table below identifies potential sources of funding available to carry out housing and community development activities in Palo Alto. To the extent possible, the City will seek to leverage funding from other public and private entities to strengthen programs and activities established in the Consolidated Plan and this Action Plan. PROGRAM NAME DESCRIPTION ELIGIBLE ACTIVITIES FEDERAL PROGRAMS Community Development Block Grant (CDBG) Grants awarded to the City on a formula basis for Housing and Community Development Activities. The City’s CDBG Budget for Fiscal Year 2014 is $566,757. This includes an entitlement grant of $394,101, $110,019 of prior year resources, and $62,607 in estimated Program Income.  Acquisition  Rehabilitation  Home buyer assistance  Economic Dev.  Homeless assistance  Public services 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. HOME funds are available on an annual competitive basis through the State of California HOME program.  Acquisition  Rehabilitation  Home buyer assistance  Rental Assistance Section 8 Housing Vouchers The Housing Authority of the County of Santa Clara administers the federal Section 8 program countywide. The City anticipates that Section 8 vouchers will continue to be available to Palo Alto residents in fiscal year 2012/13 through the Moderate Rehabilitation Program, and the Housing Choice Voucher Program.  Rental Assistance  Homeless Assistance  Support Services McKinney – Vento Homeless Assistance Funds Santa Clara County distributes federal McKinney Homeless Assistance funds to organizations in the County that provide services to homeless persons and persons at-risk of homelessness. None of the funding is currently targeted directly to shelter or supportive services in Palo Alto.  Supportive Housing  Shelter Plus Care  Section 8 SRO STATE PROGRAMS State of California’s Multifamily Housing Program (MHP) MHP has been a major source of funding for affordable housing since 2002. The purpose of this program is to provide low-interest loans to developers of affordable rental housing. The Fabian Way Senior Housing received an award of $5.25 million in permanent MHP funding in 2008.  New construction  Rehabilitation  Preservation of low-income permanent and transitional rental housing Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 29 City of Palo Alto March 2013 PROGRAM NAME DESCRIPTION ELIGIBLE ACTIVITIES 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.  Rental Housing Projects (deed restricted)  Down payment assistance 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.  New Construction  Acquisition and rehabilitation of eligible projects LOCAL PROGRAMS Human Service Resource Allocation Process (HSRAP) In addition to the CDBG public service funds, the City will provide $1,099,347 million dollars from the General Fund in support of human services through HSRAP. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies.  Public service activities serving the needs of seniors, children, youth and families, persons with disabilities, and those who are homeless or at risk of homelessness Palo Alto Commercial Housing Fund The Commercial Housing 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 March 6, 2013 the Commercial Fund had an available balance of approximately $1,500,000.  New construction Palo Alto Residential Housing Fund The Residential Housing Fund 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. As of March 6, 2013 the Residential Fund had a balance of approximately $84,000.  Acquisition  Rehabilitation  New construction  Pre-development costs Below Market Rate 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. As of March 6, 2013 the BMR Emergency Fund had a balance of approximately $283,000.  Special Assessment Loans  Rehabilitation Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 30 City of Palo Alto March 2013 PROGRAM NAME DESCRIPTION ELIGIBLE ACTIVITIES The Housing Trust Fund of Santa Clara County (HTSCC) HTSCC is a non-profit organization that combines private and public funds to support affordable housing activities in the County, including assistance to developers and homebuyers. 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.  New Construction  First time homebuyers program  Developer Loans  Homelessness Prevention Programs 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 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. $960,000 was awarded to the Tree House project developed by the Palo Alto Housing Corporation. The County has awarded over $10 million from the AHF to date.  Construction  Permanent Financing Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 31 City of Palo Alto March 2013 Appendix D: Proposed Projects Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 32 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Public Services Project Title SRO Resident Support Services Description Palo Alto Housing Corporation will provide counseling and supportive case management services for low- income residents of single room occupancy facilities in order to help them maintain housing stability. Activities include financial counseling, health maintenance, information and referral, problem solving, employment assistance, crisis intervention and case management. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Street Address: 439 Emerson Street and 753 Alma Street City, State, Zipcode: Palo Alto, CA 94301 Objective Number SL-1 Project ID 1 HUD Matrix Code 05 Public Services CDBG Citation 570.201 (e) Type of Recipient LMC CDBG National Objective 570.208(a)(2) Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator People Annual Units 131 Local ID SR-01048-999 Units Upon Completion 131 Funding Sources: CDBG $24,865 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $24,865 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 33 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Public Services Project Title Opportunity Service Center Description InnVision Shelter Network provides basic necessities for persons who are homeless or at-risk of becoming homeless. The Opportunity Services Center is a comprehensive, one-stop, multi-service, day drop-in center that provides critical services for homeless Palo Alto residents. Specifically, the facility provides showers, laundry, clothing, snacks, case management, and shelter/housing referral services. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Street Address: 33 Encina Way City, State, Zipcode: Palo Alto, CA 94301 Objective Number SL-1 Project ID 3 HUD Matrix Code 05 Public Services CDBG Citation 570.201 (e) Type of Recipient LMC CDBG National Objective 570.208(a)(2) Start Date (mm/dd/yyyy) 07/01/2012 Completion Date (mm/dd/yyyy) 06/30/2013 Performance Indicator People Annual Units 600 Local ID SR-01082-999 Units Upon Completion 600 Funding Sources: CDBG $35,162 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $35,162 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 34 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Public Services Project Title Domestic Violence Services Description Support Network for Battered Women, a Division of YWCA will provide individuals and families experiencing domestic violence, the program provides a bilingual domestic violence hotline, an emergency shelter, crisis counseling, legal assistance, court accompaniment, individual and group therapy, support groups, children’s therapy groups, preventative education, safety planning and community referrals. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Community-wide Street Address: City, State, Zipcode: Objective Number SL-1 Project ID 4 HUD Matrix Code 05G CDBG Citation 570.201(e) Type of Recipient LMC CDBG National Objective 570.208(a)(2) Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator People Annual Units 45 Local ID SR-01105-999 Units Upon Completion 45 Funding Sources: CDBG 10,000 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total 10,000 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 35 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Public Services Project Title Housing and Emergency Services for Persons with Disabilities Description Silicon Valley Independent Living Center provides assistance for individuals with disabilities and their families to transition from homelessness, health care facilities, unstable or temporary housing to permanent affordable, accessible, integrated housing with emergency assistance, security deposits, rent, information & referral, and other basic essentials. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Community-wide Street Address: City, State, Zipcode: Objective Number SL-1 Project ID 5 HUD Matrix Code 5B CDBG Citation 570.201(e) Type of Recipient LMC CDBG National Objective 570.208(a)(2) Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator People Annual Units 24 Local ID TBD Units Upon Completion 24 Funding Sources: CDBG 5,770 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total 5,770 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 36 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Public Services Project Title Fair Housing Services Description Project Sentinel will provide community education and outreach regarding fair housing law and practices, investigation, counseling and legal referral for victims of housing discrimination, and analyses for City staff and officials regarding fair housing practices. California and federal fair housing laws assure specific protected classes the right to be treated in terms of their individual merits and qualifications in seeking housing. Unfortunately, some people are not aware of the law or their rights. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Community-wide Street Address: City, State, Zipcode: Objective Number DH-1 Project ID 6 HUD Matrix Code 21D CDBG Citation 570.206 Type of Recipient LMC CDBG National Objective 570.208(a)(2) Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator People Annual Units 27 Local ID SR-01087-999 Units Upon Completion 27 Funding Sources: CDBG $26,342 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $26,342 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 37 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Planning and Administration Project Title City of Palo Alto Description Administer the Administrative costs for the overall management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area City of Palo Alto Street Address: 250 Hamilton Avenue City, State, Zipcode: Palo Alto, CA 94301 Objective Number Project ID 7 HUD Matrix Code 21 CDBG Citation 570.206 Type of Recipient N/A CDBG National Objective N/A Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator N/A Annual Units N/A Local ID SR-01003-999 Units Upon Completion N/A Funding Sources: CDBG $65,000 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $65,000 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 38 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Job creation and replacement Project Title Pilot Microenterprise Assistance Program Description The Pilot Microenterprise Assistance Program will provide resources to support and foster the development of microbusinesses by providing grants to eligible low-to moderate income families in conjunction with capacity building and entrepreneurial assistance. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Community-wide Street Address: City, State, Zipcode: Objective Number E0-1 Project ID 8 HUD Matrix Code 18C CDBG Citation 570.201(o) Type of Recipient LMCMC CDBG National Objective 570.208(a)(2)(iii) Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator Jobs Annual Units 5 Local ID SR-01121-999 Units Upon Completion 5 Funding Sources: CDBG $150,000 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $150,000 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 39 City of Palo Alto March 2013 U.S. Department of Housing OMB Approval No. 2506-0117 and Urban Development Exp. 8/31/2014) Table 3C Consolidated Plan Listing of Projects Jurisdiction’s Name City of Palo Alto Priority Need Job creation and replacement Project Title Workforce Development Program Description The Workforce Development Program will provide a transition from unemployment and homelessness to regular employment and housing through case management, job training, mentoring, housing, and transportation assistance. Downtown Streets Team will screen and prepare applicants while Manpower will use their community connections to provide training and job opportunities. Objective category: Suitable Living Environment Decent Housing Economic Opportunity Outcome category: Availability/Accessibility Affordability Sustainability Location/Target Area Community-wide Street Address: City, State, Zipcode: Objective Number E0-1 Project ID 9 HUD Matrix Code 05H CDBG Citation 570.204(a)(2) Type of Recipient LMC CDBG National Objective 570.208(a)(2)(A) Start Date (mm/dd/yyyy) 07/01/2013 Completion Date (mm/dd/yyyy) 06/30/2014 Performance Indicator Jobs Annual Units 25 Local ID SR-01121-999 Units Upon Completion 25 Funding Sources: CDBG $248,753 ESG HOME HOPWA Total Formula Prior Year Funds Assisted Housing PHA Other Funding Total $248,753 The primary purpose of the project is to help: the Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs . Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 40 City of Palo Alto March 2013 Appendix E: Public Hearing Advertisement Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 41 City of Palo Alto March 2013 NOTICE OF PUBLIC REVIEW PERIOD AND PUBLIC HEARINGS ON PALO ALTO’S COMMUNITY DEVELOPMENT BLOCKGRANT (CDBG) PROGRAM This is to notify the general public and other interested parties that a 30-day public review period of the Draft Annual Action Plan for the allocation of Fiscal Year 2014 Community Development Block Grant (CDBG) funds, will begin on March 7, 2013 and end on April 8, 2013. The Draft Annual Action Plan describes the activities the City may fund under the 2014 CDBG Program. Collectively these activities are intended to meet Palo Alto’s affordable housing and community development objectives described in the 2010-2015 Consolidated Plan. Copies of the Draft Annual Action Plan will be available on March 7, 2013 at the Department of Planning and Community Environment, 250 Hamilton Avenue, 5th Floor, Palo Alto, CA 94301, on the City’s website http://www.cityofpaloalto.org/depts/pln/advance_planning/cdbg.asp or by calling Consuelo Hernandez, Planner – CDBG, at (650) 329-2428. Interested parties are encouraged to submit written comments on the proposed Draft Annual Action Plan during the public review period, or to comment at the public hearings and meetings described below. PUBLIC HEARINGS AND MEETINGS The City of Palo Alto Human Relations Commission will hold a Public Hearing on February 28, 2013 to review the Fiscal Year 2014 CDBG funding allocations recommended by the CDBG Human Relations Selection Committee. The Public Hearing will be held at 7:00 p.m., or as soon as possible thereafter, in City Hall Council Conference Room, 250 Hamilton Avenue, Palo Alto. The City of Palo Alto Finance Committee will hold a Public Hearing on April 2, 2013 to review the proposed Fiscal Year 2014 CDBG funding allocations identified in the Draft Annual Action Plan. The Public Hearing will be held at 6:00 p.m., or as soon as possible thereafter, in City Hall Council Conference Room, 250 Hamilton Avenue, Palo Alto. The Palo Alto City Council will hold a Public Hearing on May 6, 2013 to adopt the Annual Action Plan and the associated Fiscal Year 2014 CDBG allocations. The Public Hearing will be held at 7:00p.m., or as soon as possible thereafter, in City Hall Council Chambers, 250 Hamilton Avenue, Palo Alto. Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (Voice) ada@cityofpaloalto.org Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 42 City of Palo Alto March 2013 Appendix F: Map Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 43 City of Palo Alto March 2013 ElCaminoReal ElCaminoReal AlmaStreet AlmaStreet AlmaSt UniversityAvenue UniversityAve JuniperoSerraBlvdJuniperoSerraBlvd WestPortolaAvenue MarichWay S.RengstorffAvenue CaliforniaStreet LathamStreet DelMedioAvenue ShowersDrive LosAltosAvenue IndependenceAvenue GarciaAvenue ont Road WestridgeDrive DuranzoWay EricaWay SharonParkDrive RosaDrive AltschulAvenue ElenaAvenue TuscaloosaAvenue ColemanRoad LaurelStreet SantaMonicaAvenue GilbertAvenue MenaltoAvenue WoodlandAvenue BellStreet Co o le y A v e n u e O'ConnerStreet RunnymedeStr eet ClarkAvenue WoodlandAvenue PulgasAvenue O'ConnerStreet Beach Street JasmineWay BrannerDrive CampbellLane ShoronRoad LemonStreet OliveAvenue SantaCruzAvenue BayLaurelDrive MiddleAvenue BayLaurelDrive WindsorDrive PeterCouttsCircle LasuenStreet PanamaDr GovernorsAve ElectioneerAve N.LemonAvenue CottonStreetValparaisoAvenue FremontStreet UniversityDrive CambridgeAvenue MiddleAvenue ArborRoad CreekDrive WillowRoad OakGroveAvenue SantaCruzAvenue IsabellaAvenue BrittonAlejandraAvenue EscondidoRoad OlmsteadRoad RingwoodAvenue MiddlefieldRoad MiddlefieldRoad MiddlefieldRd BayshoreFwy BayshoreFwy EmbarcaderoRoad CharlestonRd SantaCruzAvenue SandHillRoad GlenwoodAvenue LomaVerdeAve LyttonAve HomerAve ChanningAve CowperSt EmersonSt AddisonAve EMeadowDr WMeadowDr MaybellAve StanfordAve CaliforniaAve ChimalusDr HeatherLn NewellRd ChurchillAve ParkBlvd Raim undo W ay BryantSt CollegeAve LouisRd GreerRd ColoradoAve RossRd ArastraderoRd ArastraderoRd LosRoblesAve GeorgiaAve LaDonnaSt LagunaAve AmarantaAve BarronAve MataderoAve SealeAve SouthCt ParkBlvd LaParaAve BirchSt LincolnAve PageMillRd ElVeranoAve ElDoradoAve EmersonSt AmarilloAve NCaliforniaAve HawthorneAve AshSt OliveAve VenturaAve AlmaSt WilkieWay FerneAve AlvaradoAvenue LinariaWay LaCuestaDrive CloudAvenue AlmaStreet ClarkAvenue AthertonAvenue AthertonAvenue WatkinsAvenue SanMateoDrive SanAntonioAve JuniperoS erraBlvd tsa E otl A o l a P dro f n a t S ytis r e v i n U A not r e h t oln e M kra P doo w d e R ytiC Mountain View otl A o l a P Road e l as Pul gas d HillRoad Jun iper o Ser r a Boul evar d PageMillRoad ArastraderoRoadE l a mi n o R e a l SanAntonioAvenue Chra l eston Road rO e o g n Exp e r ss w ay Mi d d l e f i e l d Road ersity Ave Bay s ho r e Fr eeway 1 0 1 A l m S r ee t ElCaminoReal MiddlefieldRoad pi neRoad Foothi l l Expres s w a y Road UniversityAve. Hillview East B ya s o h re West Baysh roe Fabian CentralExpressw SandHillRoad EmbarcaderoRoad MarshRoad Bay Expressway Willow eht f o t c u d o r p a s i p a m s i h T SI G o t l A o l a P f o y t i C .se c r u o s e l b a l i a v a t s e b f o y l n o n o i t a t n e s e r p e r c i h p a r g a s i t n e m u c o d s i h T dn e g e L yra d n u o B y t i C o t l A o l a P '0 0 5 4 '0 FY 2013 - 2014 CDBG Projects Location map CITYOF PALOALTO INC O R P O R A T E D CALIFORNIA ot l A o l a P fo y t i C e h T A P R I L 1 6 1894 otl A o l a P f o y t i C 7 0 0 2 o t 9 8 9 1 © . s r o r r e y n a r o f y t i l i b i s n o p s e r ons e m u s s a o t l A o l a P f o y t i C e h T 23: 7 1 : 4 1 5 0 - 5 0 - 1 0 0 2 , a r e v i r r )b d m . a r e v i r r \ l a n o s r e P \ n i m d a \ s i g\$ s i g \ s p a m - cc\\ ( p a m n o i t a c o l g b d c OR S e c a l P a m l A ) 4 OR S l e t o H r e k r a B ) 3 ret n e C y t i n u t r o p p O ) 2 Uivn )1 t C a Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 44 City of Palo Alto March 2013 Appendix G: Public Comments Fiscaly Year 2014 - Draft Action Plan DUNS No. 050520782 45 City of Palo Alto March 2013 ATTACHMENT C – DRAFT MAP SUMMARY DRAFT COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Planning and Community Environment Department PILOT MIC ROENTERPRIS E ASSISTANCE PROGRAM SUMMARY The City of Palo Alto proposes to establish a Pilot Microenterprise Assistance Program (MAP) using Community Development Block Grant (CDBG) funds. This pilot program will be administered by Planning and Community Environment Advanced Planning staff who will be working with the Economic Development Manager, the business community, and local social service providers. The goal of MAP is to provide low to moderate income families and individuals with financial assistance and technical support that will improve their economic self-sufficiency and increase their income, thereby reducing dependence on public assistance. Funds will be provided to cover the cost of technical assistance and will take the form of seed capital grants to eligible applicants and microenterprise businesses as defined by the U.S. Department of Housing and Urban Development (HUD). Proposed Program Strategy The purpose of MAP is to help low income families and individuals gain access to new opportunities that will enable them to move out of poverty. While the program will be open to all eligible applicants in Palo Alto, MAP will target Downtown Streets Team participants and tenants of SRO developments. A two-prong approach is proposed combining Business Development with a Poverty Alleviation strategy. The business development strategy will focus on increasing both the number of businesses owned by low to moderate income individuals and their performance. The poverty alleviation strategy will build on the foundation of entrepreneurship and empower clients by increasing their economic literacy, business skills, self-esteem, and personal behavior appropriate to the workplace. In summary, MAP will help accomplish the following:  Provide an innovative path out of poverty  Create self-sufficiency  Improve the survival rate of microenterprise business  Improve employment skills  Promote economic development Eligible Use of Funds and Activities Grant funding expenditures have to be allowed, necessary, and reasonable as stipulated in the Office of Management and Budget Circular A‐122 (OMB A‐122) for the type of business applying for funding. Examples include:  Purchase of machinery, equipment, furniture  Technology infrastructure and upgrades  Inventory and supplies  Marketing  Payment of utilities, licenses and insurance. Grant Approval A Microenterprise Assistance approval committee(s) will be created to evaluate the grant applications. The committee will be made up of four (4) members who will make funding recommendations based upon the applications submitted. Once the recommendations have been made, final funding decisions will be made by City Staff. The grant applications will be approved on first come, first ready, first served basis, subject to the availability of funds. 1 Claude Ezran 2/28/13 CDBG Funding Dear Human Relations Commission Colleagues, I respectfully suggest that you vote against funding Silicon Valley Independent Living Center and Catholic Charities of Santa Clara County for the following reasons: Silicon Valley Independent Living Center 1.0 Primary reason to turn down request: administrative Proposed grant amount of $5K is too small to be worthwhile to manage in a $567K pool (less than 1%). The City is substantially cutting its CDBG admin cost. It would be highly inefficient to have to manage 1% line items. 2.0 Secondary reason to turn down request: lack of information Lack of information, including from their web site, regarding the actual effectiveness of the organization. With public money involved, a conservative approach is preferable. Catholic Charities of Santa Clara County 1.0 Primary reason to turn down request: administrative Proposed grant amount of $5K is too small to be worthwhile manage in a $567K pool (less than 1%). The City is substantially cutting its CDBG admin cost. It would be highly inefficient to have to manage 1% line items. 2.0 Secondary reason to turn down request: granting public money to religious organizations, while widely done at the Federal, State, County and Local level, is less than ideal; it is riskier, more treacherous, than when one is dealing with secular organizations 2.1 Separation of Church and State The Long Term Ombudsman Program is a government program mandated under the Older American Act. When you breach the “wall” separating Church and State and mandate that the law be executed by religious organizations you take risks: e.g. judges who forced people guilty of DUI to go to Alcoholic Anonymous (a faith driven program) lost their cases in lawsuits brought by the ACLU due to violations of the Freedom of Conscience. It is much less of a slippery slope, and much less prone to conflicts and abuses, to let all religious organizations perform their extraordinary work, exactly as they wish (within the framework of the law), with their own private money and to direct public money to secular organizations only. 2.2 Systemic biases of religious organizations Versus the random distribution of biases with the volunteers/employees of secular organizations. Many religious organizations, of many different faiths, are known, for instance, to be hostile to, or biased against gays & lesbians, or against unmarried people of opposite sexes living together, and to discriminate against them. Example: Boy Scouts of America is still trying to decide if it will continue its policy of discrimination against gays. 2 2.3 Put yourself into the shoes of the recipients of the service, the people we are trying to help! How will very vulnerable elderly people of Faith X, or no faith at all, feel about being compelled to deal with an employee/volunteer with a badge or business card that says Faith Y, if they want access to the service? Will they feel uncomfortable? Will they fear they will receive lesser service than somebody from Faith Y? Will they feel puzzled that religion is somewhat injected into something that has nothing to do with what they need? Will they feel angry about the lack of secular provider for a government mandated program? Sometimes the service provided is extremely significant and impactful (we are not talking about distributing chocolates for Valentine’s Day), e.g. adoption services. Why should people be forced to go to a religious organization in order to have access to that type of critical and life altering service? 3.0 Other secondary reasons to turn down request: objections specific to Catholic Charities 3.1 Potentially discriminatory, and definitely inappropriate, volunteer recruitment practices. Public CDBG funds would be used by Catholic Charities to manage volunteers who will provide the actual service. Catholic Charities requests that volunteer fill a Volunteer Application Form that asks for “Church Affiliation (optional)”. See http://www.catholiccharitiesscc.org/volunteer- application-form First, there no such thing as an “optional” question. No answer is an answer. Example: Q: Have you ever stolen anything?… no worries, your answer is optional…. Second, why is Catholic Charities asking such a question if they are truly, as they claim, not discriminating? What do they do with the answer or lack of an answer? If they do nothing, then why do they ask the question? And if they do something with the information about religious affiliation that could be a form of discrimination. Please bear in mind that they are not recruiting here for a religious program such as a Church Choir (in which case questions about religion would definitely be warranted), but for a federally mandated program. Third, the question itself is showing an implicit discriminating bias towards Christians vs. other faiths, even before any answer is, or is not, provided. It says “Church”, it could at least have asked: Religious Affiliation. Does it mean that if you go to a mosque, a synagogue or a temple you are a bit less welcome as a volunteer for Catholic Charities? How does it feel to answer: I am affiliated with the “Moslem/Jewish/Hindu/Atheist Church”? And what about non-religious applicants? How comfortable are they supposed to feel about that question? Public funds should not go to an organization that asks its volunteers, ready to perform a mandated public service, questions about their religious beliefs. Asking such questions is highly uncommon, inappropriate, and a big crossing of the line/wall that separates Religion from State. Any company, administration or organization, that asks questions about religion (even “optional” ones) in its recruitment form would expose itself to be sued and would most likely lose in court. The potential for discrimination is just too high. 3.2 Catholic Charities of Santa Clara County is not a non-profit agency which just happens to have a religious name (e.g. YWCA). It is truly a religious organization that asks its employees and volunteers to follow specific religious principles when they deliver services: 3 - The Chairman is the Bishop of San Jose and there is another reverend on its board http://catholiccharitiesscc.org/board-directors - Its mission statement http://catholiccharitiesscc.org/mission-statement is not secular, it is clearly religious and could lead to issues and biases (e.g. against gays & lesbians and unmarried couples), and could make some employees and volunteers (whom we are asked to fund) and especially their vulnerable clients highly uncomfortable: “Catholic Charities of Santa Clara County serves and advocates for families and individuals in need, especially those living in poverty. Rooted in gospel values, we work to create a more just and compassionate community in which people of all cultures and beliefs can participate.” 3.3 Discrimination against women employees of Catholic Charities Maybe not in California (due to a California Supreme Court decision), but probably in most of the rest of the country as Catholic Charities is a nationwide organization. If you are a man, you get pretty much the same type of health benefits that you would get with another employer. If you are a woman, you do not get the same benefits as you would get if employed by another employer. This is discrimination, exactly as it would be a case of discrimination if you stated: in our organization, African Americans do not get coverage for flu shots. 3.4 Catholic Charities of Santa Clara County is part of a national organization, Catholic Charities USA, that through its nationwide network, has a track record of blatant discrimination, even very recently See Chicago Tribune article: http://articles.chicagotribune.com/2011-08-02/news/ct-met-aclu-foster-care-20110802_1_couples-in- civil-unions-catholic-charities-parents ACLU joins suit against Catholic Charities Policy of rejecting same-sex couples as foster parents is challenged August 02, 2011|By Manya A. Brachear, Tribune reporter “The American Civil Liberties Union of Illinois got the go-ahead Monday to intervene in a lawsuit and join the state's battle against Catholic Charities' policy of turning away prospective parents who are in civil unions. Catholic Charities in Joliet, Peoria, Springfield and Belleville filed the lawsuit this summer, asking a Sangamon County judge to uphold their policy of providing publicly funded foster care and adoption services only to married couples and single parents living alone, while referring couples in civil unions to other agencies.” This was not a case of an isolated rogue employee caught doing the wrong thing; this was the agency’s own policy, in violation of the law, all of this while using public money for a state mandated program. See also PR Newswire article: http://www.prnewswire.com/news-releases/aclu-challenges-catholic-charities-exclusionary-adoption- and-foster-care-policies-on-behalf-of-children-in-dcfs-care-126516518.html “The ACLU's filing on Friday noted that both the federal constitution and the consent decree in the federal case (known as B.H. v. McEwen) requires the State of Illinois to make all decisions with regard to children in DCFS care solely on the basis of the "best interests of the child" and not the religious beliefs of a private foster agency. "Best interests", according to experts in social welfare policy, require the State to consider only how a placement affects the child -- whether the unique skills and characteristics of the potential parent or parents' best fit the needs of the child 4 resulting in a safe, loving and secure home for the child. These Catholic Charities agencies, who accept State funds to act on behalf of DCFS in placing children, seek judicial authority to elevate their religious views about homosexuality and marriage over the best interests of the children under their care. In response to Catholic Charities' claim that it has a religious right to discriminate, the interveners assert that Catholic Charities are performing a "state function" when they choose homes for DCFS state wards and process prospective foster parents for state licensing.” "Illinois law says that Catholic Charities cannot discriminate against our clients based on their sexual orientation and because they have a civil union rather being able to marry," said John Knight, director of the Lesbian, Gay, Bisexual and Transgender Project of the ACLU of Illinois. "But they are asking the court to authorize such discrimination. This is not tolerable in an inclusive society. It harms children by limiting the pool of potential adoptive parents and harms our clients – basically telling them that they are not capable of parenting solely because they are lesbians." “The ACLU also takes issue with the assertion that the possibility of disruption for children if Catholic Charities withdraws from providing services on behalf of DCFS trumps the constitutional and legal issues involved, as well as the best interests of children. The ACLU notes that this situation is not unique. Catholic Charities already has withdrawn from provision of adoptive and foster care services in the Rockford area and the entirety of Cook County. Other, secular agencies stepped up and met the needs of children in the care of DCFS in those areas. The same can happen in the areas at issue in this case. "Catholic Charities is entitled to hold its religious beliefs," added Harvey Grossman, legal director of the ACLU of Illinois. "But those religious beliefs simply cannot be a factor when the agency is acting as a social service agency on behalf of the State." Conclusion First and foremost, for administrative reasons, I recommend we turn down both Silicon Valley Independent Living Center and Catholic Charities of Santa Clara County. I am also very concerned that Catholic Charities could potentially discriminate against very vulnerable gay and lesbian, or unmarried senior citizens in Palo Alto, and offer them lesser service, or no service at all by ignoring them, if we let them manage the Long Term Ombudsman Program. The facts speak for themselves, and I think ought to disqualify them from public funding. Furthermore, regardless of the issue of protecting senior citizens, I do not think that the City of Palo Alto should associate itself with an organization that, as a policy, violates the law and discriminates; that’s just not who we are in Palo Alto. My view on that last point, could be changed, were Catholic Charities of Santa Clara County to make a public statement saying that they: 1) Completely disavow the position taken by Catholic Charities affiliates in Illinois regarding discrimination against gays and lesbians and unmarried couples, and 2) Provide, and will continue to provide, coverage for contraception to all their female employees in Santa Clara County, and were they to also 3) Change their volunteer recruitment form to take out any question about religious affiliation. From: Mary Jane Parrine [mailto:parrine@stanford.edu] Sent: Wednesday, March 27, 20134:37 PM To: Clerk, City Cc: HRC Subject: Memo to Finance Committee re CDBG funding TO: The Honorable City Council AT1N: Finance Committee FROM: Mary Jane Parrine 8 Bolton Place Menlo Park CA 94025 parrine@stanford.edu March 27,2013 RE: February 28 meeting of Human Relations Commission on CnBG I am concerned with the proceedings at the February 28 meeting where the Commission denied CBDG funding for the Santa Clara County Long Term Care Ombudsman Program (LTCOP) that serves Palo Alto. The video tape of the meeting and the report on church and state that Chairman Claude Ezran distributed on that date prompt thes comments. They reflect my views as a local resident who may have to be in a facility due to injury or illness and as a State-certified Long Term Care Ombudsman (volunteer) who has been working in the program since 2004. My responsibilities include two large facilities in Palo Alto serving ca. 500 residents within 4 separate entities. First I respect Claude Ezran's commitment to community issues and to ethical principles that were evident in his past stand against the death penalty. I and my colleagues also support the need for separation of church and state. My concern is that the focus of the Commission on Feb. 28 was to evaluate each proposal on its merits by fully understanding the scope and administration of each program, its current services, and history in the community. Possibly Mr. Ezran inadvertently misinterpreted the nature of our program. A person unfamiliar with our work might wonder about the program's connections with the agency that houses us and ask that the issue be clarified. Unfortunately Mr. Ezran made an absolute assumption about religious parameters of a program that is secular and subject to strict government regulation in the very area of his concern. Ombudsman staff member Olivia Garcia's preliminary comments and our grant proposal outlined the fact that the L TCOP in Santa Clara County is part of a nationwide network administered by each county's Area Agency on Aging (http://www.aging.ca.gov). If further information on our relationship with Catholic Charities was not fully understood by one or more member of the Human Relations Commission, there should have been a request for clarification. In one or two City Council CnBG hearings where I·have helped to represent the Ombudsman Program in another community, a council member asked about the proportion of funding we received from Catholic Charities, thinking that perhaps we were largely funded by them and hence a CnBG might not be vital. Though Catholic Charities' financial donation is appreciated, it is minor and unpredictable, never anywhere near the proportion we receive from government support from federal (and until recently) state allocations. Local government support is very important. Once this was clarified, we moved on. 2 Pursuant to Older Americans Act of 1965, Title 3 (reauthorized in 2012), the LTCOP exists in every county in the United States. Each Ombudsman office is housed independently, sometimes in a stand-alone setting, sometimes in a county office, sometimes in a social services agency, occasionally one associated with a religious denomination. In each setting the LTCOP has to be a totally secular program. No religious organization can legally direct the program or determine its policies. By law we are forbidden to impose any religious beliefs or prejudices on any client we serve. An Ombudsman --coordinator, staff, or volunteer -would be dismissed for doing otherwise. Catholic Charities, as the largest multipurpose social services agency in the county, won out as contractor to provide our office space many years ago, largely due to the agency's related services for older adults, many of whom are sources of cross referral. Its name does not appear on the badges we wear on entering facilities, though Mr. Ezran claims otherwise. The logo for the State of Cali fomi a heads our calling cards, while the location of Catholic Charities appears only in small print as part of the address area. The more useable side of . the card offers L TCOP program contact information in large bold print. To make sure that the residents we serve understand this, I and others in our program introduce ourselves with information about the program being free and confidential, created to work for them and not affiliated with any religious denomination. Had all members of the Human Relations Commission been able to look objectively at this and other basic information, there could have been fulfillment of the Commission's charge to review and judge the Ombudsman Program on its merits, outlined in the statement made to the commission and the grant proposal. I believe that the recommendation of the Human Relations Commission to deny funding should be reconsidered since it was denied because of an unjust process. The funding amount involved here is admittedly small. Yet the funding itself is just one part of what our program considers a vote of confidence, from each community, in the services we provide. Of course many good programs cannot be funded by CDBGs or other departments in local government. The ultimate decision is up to you as Committee members within the City Council. We ask only that we be judged on the merits of our program. Important though it is, a discussion of current problems of religious discrimination belongs in another forum. Failings of a pluralistic church in a national setting, where many opposing viewpoints vie for recognition, should not be the focal point for debate on funding for a program with a clearly defined commitment to be non-sectarian. Each commissioner promises in the Oath of Office to uphold the U.S. Constitution, including its'llprovisions on due process that require all levels of American government to provide fair procedures. This was not the case when Mr. Ezran stated in writing "I do not think the City of Palo Alto should associate itselfwith an . organization that [with his emphasis] as a policy, violates the law and discriminates; that's just not who we are in Palo Alto." It seems that a desire to make a broad statement on human rights trumped recognition of the facts at hand. Mr. Ezram's misguided position not only influenced the vote of the Human Relations Committee but also dealt a heavy blow to those of us who serve Palo Alto in the Ombudsman Program above all to protect the rights of our clients, often their diverse religious rights, regardless of race, age, economic status, faith, or sexual preference. Thank you for your consideration [original will be sent to City Council signed] Mary Jane Parrine State Certified Long Term Care Ombudsman (volunteer) certification no. 10-413 One of several in Ombudsman program to receive U.S. President's Volunteer Service Award (Gold), 2011 CC members of Human Relations Commission 3 Dear Nancy Shepard, Finance Committee: I am writing to you to ask for consideration and recommendation of funding the Long Term Care Ombudsman Program CDBG application at your upcoming April 16th meeting. As a staff member with the Ombudsman Program for more than sixteen (16) years, I have had the opportunity in the past to appear before the Palo Alto Citizen Committees reviewing the CDBG proposals. My experience with the committee members was always professional and pleasant. Questions asked of me by the committee pertained to the proposed services, clients to be served, volunteers working along side staff and the type of complaints Ombudsmen resolve. My experience was that the questions were always appropriate to the grant application. For the funding years 13-14 and 14-15, the questions and comments by the Chair of the Human Relations Committee appear to be unrelated to the Ombudsman Program proposal. Statements by the Chair of the Human Relations Committee at the first meeting on February 6,2013, and the multi page memo he distributed at the February 28,2013 meeting do not relate to the proposal. The Ombudsman Program has a long history of providing services under contract with the City. The Program has always met or exceeded the contract goals and has never been advised by the City of any complaints received regarding our services. At the February 28,2013, Human Relations Committee a vote of 4 was need for a recommendation. While the Program received majority vote of the committee members present, the absence of a committee member and need for another to recuse themselves due to association. with another agency under consideration for a grant made the required 4 votes under the direction of the Chair more difficult. I would ask that the Long Term Care Ombudsman proposal be considered on the merits of the service to be provided. The Long Term Care Ombudsman Program is a unique and unduplicated service. I would like to highlight that as stated in the proposal certified long. term care Ombudsmen provide services with respect for human dignity and the individuality of the resident unrestricted by consideration of age, social or economic status, personal characteristic or lifestyle. Cordially, Marlene Siebert Marlene Siebert Progrrun Assistant/ Volunteer Coordinator Long Ternl Care Ombudsnlan Program Catholic Charities of Santa Clara County 2625 Zanker Road, Suite 200 San Jose, CA 95134-2107 1-408-944-0567 Onlbudsman Progrmn 1-408-325-5260 Direct line 1-408-944-0776 Fax marlenes@catholiccharitiesscc.org