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HomeMy WebLinkAboutStaff Report 9027 City of Palo Alto (ID # 9027) Finance Committee Staff Report Report Type: Action Items Meeting Date: 4/3/2018 City of Palo Alto Page 1 Summary Title: FY 2019 - CDBG Allocations Title: Recommendations on Proposed Fiscal Year 2019 Community Development Block Grant Funding Allocations (CDBG) and the Draft Fiscal Year 2019 Annual Action Plan From: City Manager Lead Department: Planning and C ommunity Environment Recommendation Staff recommends that the Finance Committee recommend that the City Council take the following actions: 1. Allocate CDBG funding as recommended in the draft 201 9 Action Plan (Attachment B) and as described in this report, including the contingency plan policies recommended by the Human Relations Commission (HRC); 2. Authorize the City Manager to execute the Fiscal Year 2018-2019 CDBG application and 2019 Action Plan for CDBG funds, any other necessary documents concerning th e application, and to otherwise bind the City with respect to the applications and commitment of funds; and 3. Authorize staff to submit the 2019 Action Plan to HUD by the May 15, 2018 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. This is the principal Federal program providing localities with grants to devise innovative neighborhood approaches to assisting persons of low and moderate income. CDBG federal appropriations for Fiscal Year 2018 -2019 have not yet been determined. For budgeting purposes, City staff has estimated the City’s HUD Entitlement Grant for Fiscal Year 2018 based on a 10% reduction in funds from Fiscal Year 2017 or $578,296. 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. An Action Plan is prepared annually to identify specific projects to be funded in that year that implement the strategies identified in the Consolidated Plan. Currently, Palo Alto’s CDBG program is guided by the 2015-2020 Consolidated Plan adopted by Council May 4, 2015. The draft 2019 Action Plan (Attachment B) will be made available for Public review from March 16, 2018 through April 16, 2018. The Finance Committee is being asked to review the draft 2019 Action Plan and recommend funding allocations by continuing last year’s funding strategies with minor modifications described below. Upon review of the draft plan and funding recommendations, it is requested that the Finance Committee make recommendations to the City Coun cil. The City Council will review the recommendations of the Finance Committee at a public hearing scheduled for May 7, 2018. Staff will then submit the Action Plan to HUD in order to meet the May 15, 2018 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. All of the funded projects in Palo Alto meet the first objective of benefiting low -and very-low- income persons. 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 spen t on Planning and Administration and Public Services. The allocations for Administrative Activities and Public Services are both proposed to be at the maximum spending cap in Fiscal Year 2018 -2019. 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 $105,745 will be available for this category for Fiscal Year 2018-2019. 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 $87,078 will be available for Public Service activities for Fiscal Year 2018-2019. Public Service activities include services for homeless persons, housing and emergency services to low income individuals with disabilities, and services to victims of domestic violence. City of Palo Alto Page 3 CDBG federal appropriations for Fiscal Year 2018 -2019 have not yet been determined. For budgeting purposes, City staff has estimated the City’s HUD Entitlement Grant for F iscal Year 2018-19 based on a 10% reduction in funds from Fiscal Year 2017-2018. Consolidated Plan The 2015-2020 Consolidated Plan is a 5-year strategic plan of action that addresses priority housing and community development needs. It also sets specific goals for attaining identified objectives. Each year, an Annual Action Plan is prepared to identify specific projects to be funded to implement the Consolidated Plan. The Consolidated Plan and the Annual Action Plan updates are required by HUD in order for the City to receive federal funding from programs such as the CDBG. Currently the CDBG program is guided by the 2015 -2020 Consolidated Plan adopted by Council May 4, 2015. The Consolidated Plan is available on the City website: https://www.cityofpaloalto.org/civicax/filebank/documents/49948 Action Plan HUD requires submittal of an Annual Action Plan no later t han 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. The 2015-2020 Consolidated Plan is 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 2017-2018 and 2018-2019 were made available in November 2016. A notice of CDBG funding availability was published in the Palo Alto Weekly on November 18, 2016 with completed applications due January 6, 2017. Mandatory pre-proposal conferences were conducted on December 7, 2016, December 15, 2016 and December 5, 2017 to assist applicants with program regulations and project eligibility questions. Since this is the second year of the two year funding cycle, the City will continue funding the same providers as in FY 2017-18 under the Public Services, Administration and Planning and Economic Development category. After funding the three categories, there will be $54,471 remaining to allocate to the Housing Rehabilitation category for FY 2018 -19. Although a number of non-profits expressed interest, there were no applications for the Minor Home Repair Program that comes under the Housing Rehabilitation Category when the first Notice of CDBG funding availability for a program administrator was published in November 201 7. The City staff reissued a Notice of CDBG funding availability on February 9, 2018 with completed applications due February 22, 2018 for the Minor Home Repair Program and received one application. The application is under review and the program is expected to commence in the late spring 2018. The CDBG applications considered for funding for Fiscal Year 2018-2019 are identified on the attached chart (Attachment A). Citizen Participation City of Palo Alto Page 4 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). 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. 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)1. A sub-committee, the CDBG Selection Committee, comprised of staff and three members of the HRC was established to review both the CDBG and HSRAP funding applications and to provide recommendations to the full commission. While both CDBG and HSRAP are operating on a two-year funding cycle, final CDBG funding recommendations need to be reviewed annually since the budget is contingent upon funding allocations received from HUD. The CDBG Selection Committee met on February 15, 2018 at City Hall to discuss the Fiscal Year 2018-2019 CDBG budget and recommended funding amounts based on the estimated funds available. In addition, the Selection Committee made a recommendation for a contingency plan for when the actual CDBG allocation is known. The contingency plan is further described in the Discussion section of the report. The Selection Committee’s recommendations were presented to the HRC on March 8, 2018 and were approved unanimously and are reflected in Table 1 below. 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 program 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 ensure the readiness of the program 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 housin g opportunities and choices, 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 2018 -2019, as 1 The Human Service Resource Allocation Process (HSRAP) is a grant program open to organizations who deliver direct services to Palo Alto residents so that they have a safety net of services. City of Palo Alto Page 5 presented in the draft 2019 Action Plan, address the priority housing and community development needs identified in the draft Consolidated Plan. 2015-2020 Consolidated Plan Goals Per HUD requirements, the City is required to prepare a Consolidated Plan every five years. The 2015-2020 plan outlines the following six specific goals:  Affordable Housing: Assist in the creation and preservation of affordable housing for low income and special needs households.  Homelessness: Support activities to end homelessness.  Community Services: Support activities that provide community services to low income and special needs households.  Strengthen Neighborhoods: Support activities that strengthen neighborhoods.  Fair Housing: Promote fair housing choice.  Economic Development: Expand economic opportunities for low income households. Fiscal Year 2018-2019 Funds Available for Allocation CDBG federal appropriations for Fiscal Year 2018 -2019 have not yet been determined. For budgeting purposes, City staff has estimated the City’s HUD Entitlement Grant for Fiscal Year 2018 based on a 10% reduction in funds from Fiscal Year 2017. Based on the foregoing, the total amount available for allocation in Fiscal Year 2018-2019 is estimated to be $578,296 as summarized below: Table 1: Total Amount Available for Allocation in Fiscal Year 2018-2019 Estimated Fiscal Year 2018-2019 Entitlement Grant $392,678 Reallocated Funds from Previous Years: City of Palo Alto CDBG Admin (Fiscal Year 2017) $ 2,328 SVILC (Fiscal Year 2017) $ 1 Downtown Streets Inc. (Fiscal Year 2017) $ 8,337 Microenterprise Assistance Program (Fiscal Year 2014) $ 171 Unprogrammed Excess Program Income (Fiscal Year 2016) $38,732 $49,569 Estimated Fiscal Year 2019 Program Income from Palo Alto Housing Corporation that is generated from loan repayments and rental income in excess of expenses on specific properties acquired or rehabilitated with CDBG funds $136,049 ESTIMATED TOTAL AVAILABLE FOR ALLOCATION $ 578,296 Source: Palo Alto Planning & Community Environment, February 2018 City of Palo Alto Page 6 Of the $578,296 of CDBG funds anticipated to be available, the total amount is proposed to be used during Fiscal Year 2018-2019, subject to the funding limitations on two funding categories as shown in Table 2 and 3 below: Table 2: Maximum Available for Public Services Estimated Fiscal Year 2018-2019 CDBG Entitlement Grant $392,678 Actual Fiscal Year 2017-2018 Program Income $187,843 Total $580,521 PUBLIC SERVICE CAP (15% OF $580,521) $ 87,078 Source: Palo Alto Planning & Community Environment, February 2018 Table 3: Maximum Available for Planning and Administration Estimated Fiscal Year 2018-2019 CDBG Entitlement Grant $392,678 Estimated Fiscal Year 2018-2019 Program Income $136,049 Total $528,727 PLANNING AND ADMINISTRATION CAP (20% OF $528,727) $ 105,745 Source: Palo Alto Planning & Community Environment, February 20 18 The difference between the funding caps ($87,078 + $105,745) and the amount proposed to be allocated ($578,296) during Fiscal Year 2018-2019 yields the amount that can used to fund projects ($385,473) 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 Planning and Administration or Public Services. Fiscal Year 2018-2019 – Funding Requests and Recommendations Palo Alto’s CDBG program is operating under a two-year funding cycle. Funding for Fiscal Year 2018-2019 is contingent upon the CDBG allocation, program income, and any available funds for reallocation. Public Service and Administration Caps have been calculated in accordance with available funds. All of the agencies remain eligible and meet program goals and objectives. A list of the submitted applications and the funding recommendations for Fiscal Year 2018-19 is included in Attachment A. City of Palo Alto Page 7 Table 4, Fiscal Year 2018-2019 Funding Recommendations, identifies the applications recommended for funding and the final allocation amounts recommended by the HRC. Table 4: Fiscal Year 2018-2019 Funding Recommendations Recommendations Source: Palo Alto Planning & Community Environment, March, 2018 Applicant Agency Fiscal Year 2018 Final Allocation Fiscal Year 2019 Funding Request HRC Recommendation for Fiscal Year 2019 Public Services Palo Alto Housing Corporation – SRO Hotels Supportive Services $23,327 $ 49,457 $ 24,023 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $9,327 $ 10,000 $ 10,000 LifeMoves (formerly InnVision Shelter Network)- Opportunity Services Center $37,328 $ 50,000 $ 38,023 YWCA/Support Network – Domestic Violence Services $10,000 $ 10,000 $ 10,000 Silicon Valley Independent Living Center – Housing and Emergency Services $5,032 $ 5,032 $ 5,032 Subtotal $85,014 $124,489 $ 87,078 Admin/Fair Housing Services Project Sentinel – Fair Housing Services $32,012 $ 33,698 $ 32,012 City of Palo Alto - CDBG Administration $82,460 $ 85,000 $ 73,733 Subtotal $114,472 $118,698 $105,745 Economic Development Downtown Streets Inc. – Workforce Development Program $336,400 $336,400 $331,002 Subtotal $336,400 $336,400 $331,002 Housing/Public Facilities Rehabilitation Minor Home Repair Program $145,529 $100,000 $54,471 Subtotal $145,529 $100,000 $54,471 Grand Total $901,415* $679,587 $578,296 *Includes $220,000 allocation to Opportunity Center Rehab Project for FY 2017-18 City of Palo Alto Page 8 Contingency Plan Recommendation Because the amount of CDBG funding for Fiscal Year 2018-19 is still unknown, the HRC has made recommendations for a contingency plan in the case of an increase in funding, as well as if there is a decrease in funding. It is recommended that the Finance Committee recommend Council approval of this contingency plan. In the case of funding increase, the following plan is recommended:  Public Services: Distribute the additional available amount in the public services cap until an applicant is fully funded. If an applicant reaches the funding amount requested, any remaining funds will be distributed evenly to other applicants who have not yet reached the maximum funding amount.  Planning and Administration: Prioritize funding for Project Sentinel, once Project Sentinel is fully funded, any remaining funds are to be allocated to the City of Palo Alto for CDBG administration.  Economic Development: Maintain recommended funding levels for the Downtown Streets Team  Housing/Public Facilities Rehabilitation: Any additional funds will be allocated to the City of Palo Alto Minor Home Repair program. In the case of a decrease in funding, the following plan is recommended:  Public Services: Distribute any funding decrease proportionately among the public service applicants, but maintain a minimum funding allocation of $5,000 for any applicant.  Planning and Administration: Maintain funding allocation for Project Sentinel, any decrease in funding will be absorbed by the City of Palo Alto for CDBG administration.  Economic Development: Maintain recommended funding levels for the Downtown Streets Team  Housing/Public Facilities Rehabilitation: Reduce funding for the City of Palo Alto Minor Home Repair Program Timeline The 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 7, 2018. Subsequently, the adopted Action Plan will be submitted to HUD by May 15, 2018. Resource Impact City of Palo Alto Page 9 Several measures have been taken to ensure there is no General Fund subsidy for 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, sta ff recovery from the CDBG entitlement grant is approximately $65,000. The total staff recovery from the CDBG entitlement grant proposed for Fiscal Year 2018 -2019 is approximately 0.58 full time equivalency, or approximately $67,006, thus not further substantially impacting the General Fund. The Senior Housing/CDBG Planner assigned to CDBG works on CDBG administration for approximately 0.10 FTE and the balance of their time, 0.90 FTE, is spent on affordable housing. In addition, an hourly Staff Specialist spends 0.48 FTE on CDBG administration. Policy Implications All of the applications recommended for funding in Fiscal Year 2018 -2019 are consistent with the priorities established in the City’s adopted 2015 -2020 Consolidated Plan. Moreover, they are consistent with the housing programs and policies in the adopted Comprehensive Plan. 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 reviews or assessments and certify that the review procedures under CEQA, HUD and NEPA regulations have been satisfied for each particular project. Attachments:  Attachment A: FY 2018-19 CDBG Funding Recommendations  Attachment B: FY 2018-19 Draft Annual Action Plan CITY OF PALO ALTO CDBG APPLICATIONS (FISCAL YEAR 2018)  AGENCY PROGRAM NAME FY 2018 FINAL ALLOCATIONS FY 2019 REQUEST HRC RECOMMENDATION Public Services (15% CAP = $87,078) Palo Alto Housing Corp. SRO Resident Support $23,327 $49,457 $24,023 Catholic Charities Ombudsman $9,327 $10,000 $10,000 LifeMoves (formerly Inn Vision) Opportunity Center $37,328 $50,000 $38,023 YWCA/Support Network Domestic Violence Services $10,000 $10,000 $10,000 Silicon Valley Independent Living Center Housing and Emergency Services $5,032 $5,032 $5,032 Public Service Total $85,014 $124,489 $87,078 Planning & Administration (20% CAP = $ 105,745) Project Sentinel Fair Housing Services $32,012 $33,698 $32,012 City of Palo Alto CDBG Administration $82,460 $85,000 $73,733 Planning & Administration Total $114,472 $118,698 $ 105,745 Economic Development Downtown Streets Workforce Development Program $ 336,400 $336,400 $331,002 Economic Development Total $ 336,400 $336,400 $331,002 Housing/Public Facilities Rehabilitation          City of Palo Alto Minor Home Repair Program $145,529 $100,000 $54,471   Rehab Total $ 145,529 $ 100,000 $54,471 GRAND TOTAL $901,415* $679,587 $ 578,296 *Includes $220,000 allocation to Opportunity Center Note: This table will be revised after the scheduled March 8th, 2018 HRC Meeting Funds Available   $                         578,296   Available for Public Service (15% Cap)   $                           87,078   Available for Planning/Admin (20% Cap)   $                          105,745   Available for Economic Development/Housing   $                          385,473  Annual Action Plan 2018 1 OMB Control No: 2506-0117 (exp. 06/30/2018) Annual Action Plan 2018 2 OMB Control No: 2506-0117 (exp. 06/30/2018) Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The Department of Housing & Urban Development (HUD) requires that entitlement jurisdictions complete a Consolidated Plan every five years. Additionally, entitlement jurisdictions must also submit an Annual Action Plan. The City’s 2015-2020 Consolidated Plan was approved by Council on May 4, 2015. The five year goals from the Consolidated Plan include: • Assist in the creation & preservation of affordable housing for low income & special needs households. • Support activities to end homelessness. • Support activities that strengthen neighborhoods through the provision of community services & public improvements to benefit low income & special needs households. • Promote fair housing choice. • Expand economic opportunities for low income households. The City of Palo Alto is an entitlement jurisdiction that receives federal funding from HUD through the Community Development Block Grant (CDBG) Program. The purpose of CDBG funding is to help jurisdictions address their community development needs. The purpose of CDBG funding is to help jurisdictions address their community development needs. CDBG grantees are eligible to use the resources they receive for Public Services, Community and Economic Development, Capital Improvement Projects (CIP) Public Facilities/Infrastructure, and CIP Housing Rehabilitation. Public Service projects provide social services and/or other direct support to individuals and households in need of assistance. Community and Economic Development projects are focused on assisting businesses and organizations with small business loans, façade improvements, and other initiatives. CIP Public Facilities/Infrastructure projects are those which aim to improve public facilities and infrastructure. CIP Housing Rehabilitation projects are for housing rehabilitation improvements of single and multi-unit housing. An estimated total of $578,296 is available for funding projects & programs during the 2018 Program Year. The City anticipates receiving $392,678 from the federal CDBG program, approximately $136,049 in program income & $49,569 in reallocated funds from previous years. Please see Table 1, “Fiscal Year 2019 CDBG Budget” below which summarizes the uses of the funds proposed during Fiscal Year 2019. Annual Action Plan 2018 3 OMB Control No: 2506-0117 (exp. 06/30/2018) 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. The City is part of the San Francisco Metropolitan Bay Area, located 35 miles south of San Francisco and 14 miles north of San José. The City is located within the County of Santa Clara, borders San Mateo County, and encompasses an area of approximately 26 square miles, one-third of which consists of open space. According to Quickfacts data provided by the U.S. Census Bureau https://www.census.gov/quickfacts/fact/table/paloaltocitycalifornia/PST045216, the City's total resident population is 67,024. The City has the most educated residents in the country and is one of the most expensive cities to live in. In Silicon Valley, the City is considered a central economic focal point and is home to over 7,000 businesses while providing jobs to more than 98,000 people. See Attachment 1 for a summary of the Needs Assessment in the 2015-2020 Consolidated Plan. 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. The City recognizes that the evaluation of past performance is critical to ensure the City and its sub recipients are implementing activities effectively and that those activities align with the City’s overall strategies and goals. The performance of programs and systems are evaluated to ensure the goals and projects are addressing critical needs in the community. Palo Alto has historically allocated CDBG funds to activities that benefit LMI persons, with a top priority to increase affordable housing opportunities in the City. However, due to Palo Alto’s expensive housing market coupled with a decrease in CDBG entitlement funds, it is becoming more difficult to create opportunities for affordable housing. As such, during this Consolidated Planning period the City will be focusing on rehabilitating existing affordable housing stock that is in need of repair. Planning Staff works closely with sub recipients to leverage resources and create opportunities for partnership and collaboration. The City’s sub recipients are challenged to think creatively about working together to address the needs in our community. Annual Action Plan 2018 4 OMB Control No: 2506-0117 (exp. 06/30/2018) 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 16, 2018 through April 16, 2018 gave citizens an opportunity to offer comments on the draft Action Plan. The draft was posted on the City’s CDBG website and copies were made available to the public at the Planning and Community Environment Department at Palo Alto City Hall. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. There were no public comments received during the public review period. (To be updated after the review period ends) 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. 7. Summary Table 1, Fiscal Year 2019 CDBG Budget, summarized the uses of the funds proposed during Fiscal Year 2018. Specific funding resources will be utilized based on the opportunities and constraints of each particular project or program. Annual Action Plan 2018 5 OMB Control No: 2506-0117 (exp. 06/30/2018) Applicant Agency Budget Public Services Palo Alto Housing Corporation - SRO Resident Supportive Services $24,023 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $10,000 LifeMoves (Formerly InnVision) - Opportunity Center - Drop-In Center $38,023 YWCA/Support Network - Domestic Violence Services $10,000 Silicon Valley Independent Living Center – Housing and Emergency $5,032 Sub-total $87,078 Planning and Administration Project Sentinel – Fair Housing Services $32,012 City of Palo Alto Administration $73,733 Sub-total $105,745 Economic Development Downtown Streets – Workforce Development Program $331,002 Sub-total $331,002 Housing Minor Home Repair Program – City of Palo Alto $54,471 Sub-total $54,471 Grand Total $578,296 Table 1. Fiscal Year 2019 Budget Annual Action Plan 2018 6 OMB Control No: 2506-0117 (exp. 06/30/2018) Annual Action Plan 2018 7 OMB Control No: 2506-0117 (exp. 06/30/2018) PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Agency PALO ALTO CDBG Administrator PALO ALTO Planning and Community Environment Department HOPWA Administrator HOME Administrator HOPWA-C Administrator Table 1 – Responsible Agencies Narrative (optional) The City of Palo Alto (City) is the Lead Agency for the United States Department of Housing and Urban Development (HUD) entitlement programs. The City’s CDBG Coordinator is responsible for the administration of HUD entitlements, which include the Community Development Block Grant Program (CDBG). By federal law, each jurisdiction is required to submit to HUD a five-year Consolidated Plan and Annual Action Plans listing priorities and strategies for the use of federal funds. The Consolidated Plan is a guide for how the City will use its federal funds to meet the housing and community development needs of its populations. For the 2015-2020 Consolidated Plan process, the City worked collaboratively with the County of Santa Clara (County) and other entitlement jurisdictions in the County to identify and prioritize housing and housing-related needs across the region, and strategies to meet those needs. The fiscal year 2018/19 Annual Action Plan represents the fourth year of CDBG funding of the 2015-2020 Consolidated Plan. Annual Action Plan 2018 8 OMB Control No: 2506-0117 (exp. 06/30/2018) Consolidated Plan Public Contact Information Erum Maqbool, CDBG Staff Specialist City of Palo Alto Department of Planning and Community Environment 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 E-mail: erum.maqbool@cityofpaloalto.org Phone: (650) 329-2660 Annual Action Plan 2018 9 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-10 Consultation – 91.100, 91.200(b), 91.215(l) 1. Introduction During Fiscal Year 2018-19, the City will continue to work with non-profit organizations to provide programs and services for low-income households; private industry, including financial and housing development groups, to encourage the development of affordable housing opportunities regionally and within the City; and other local jurisdictions, including the County of Santa Clara, in carrying out and monitoring regional projects in a coordinated and cost-effective manner. The City will provide technical assistance to the public service agencies it funds with CDBG dollars and will continue to attend the Regional CDBG/Housing Coordinators meetings. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)) Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Santa Clara County Continuum of Care (CoC) is a multi-sector group of stakeholders dedicated to ending and preventing homelessness in the County. The CoC's primary responsibilities are to coordinate large-scale implementation of efforts to prevent and end homelessness in the County. The CoC is governed by the Santa Clara CoC Board (CoC Board), which stands as the driving force committed to supporting and promoting a systems change approach to preventing and ending homelessness in the County. The CoC Board is comprised of the same individuals who serve on the Destination: Home Leadership Board. Destination: Home is a public-private partnership committed to collective impact strategies to end chronic homelessness, and leads the development of community-wide strategy related to the CoC's work. The County's Office of Supportive Housing serves as the Collaborative Applicant for the CoC, and is responsible for implementing by-laws and protocols that govern the operations of the CoC. The Office of Supportive Housing is also responsible for ensuring that the CoC meets the requirements outlined under the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH). In the winter of 2015, Destination: Home and the CoC released a Community Plan to End Homelessness in Santa Clara County (the Plan), which outlines a roadmap for community-wide efforts to end homelessness in the County by 2020. The strategies and action steps included in the plan were informed Annual Action Plan 2018 10 OMB Control No: 2506-0117 (exp. 06/30/2018) by members who participated in a series of community summits designed to address the needs of homeless populations from April to August 2014. The Plan identifies strategies to address the needs of homeless persons in the County, including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth. Additionally, it also intended to address the needs of persons at risk of homelessness. The City is represented on the CoC by its Human Services Manager. Members of the CoC meet on a monthly basis in various work groups to ensure successful implementation components of the Plan action steps. A Community Plan Implementation Team, which includes members of the CoC and other community stakeholders, meets quarterly to evaluate progress toward the Plan's goals, identify gaps in homeless services, establish funding priorities, and pursue an overall systematic approach to address homelessness. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Palo Alto does not receive ESG funds. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities Annual Action Plan 2018 11 OMB Control No: 2506-0117 (exp. 06/30/2018) Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Abilities United Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 2 Agency/Group/Organization Afghan Center Agency/Group/Organization Type Cultural Organization What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 3 Agency/Group/Organization Aging Services Collaborative of Santa Clara County Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment & Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 4 Agency/Group/Organization California Housing Odd Fellows Foundation Agency/Group/Organization Type Housing Services-Children Community/Family Services Organization What section of the Plan was addressed by Consultation? Needs Assessment & Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. Annual Action Plan 2018 12 OMB Control No: 2506-0117 (exp. 06/30/2018) 5 Agency/Group/Organization Casa de Clara San Jose Catholic Worker Agency/Group/Organization Type Services-homeless Services-Health What section of the Plan was addressed by Consultation? Needs Assessment & Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 6 Agency/Group/Organization Catholic Charities of Santa Clara County Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment & Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 7 Agency/Group/Organization City of Campbell Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Strategic Plan and Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 8 Agency/Group/Organization City of Cupertino Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Strategic Plan & Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 9 Agency/Group/Organization City of Gilroy Agency/Group/Organization Type Other government - Local Annual Action Plan 2018 13 OMB Control No: 2506-0117 (exp. 06/30/2018) What section of the Plan was addressed by Consultation? Strategic Plan & Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 10 Agency/Group/Organization City of Mountain View Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Strategic Plan & Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 11 Agency/Group/Organization Bill Wilson Center Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation? Strategic Plan & Needs Assessment Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 12 Agency/Group/Organization City of Palo Alto - Human Relations Commission Agency/Group/Organization Type Other government - Local Civic Leaders What section of the Plan was addressed by Consultation? Needs Assessment & Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 13 Agency/Group/Organization City of San Jose Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Annual Action Plan 2018 14 OMB Control No: 2506-0117 (exp. 06/30/2018) Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 14 Agency/Group/Organization City of Santa Clara Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 15 Agency/Group/Organization City of Sunnyvale Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 16 Agency/Group/Organization Coldwell Banker Agency/Group/Organization Type Business Leaders What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. 17 Agency/Group/Organization Community School of Music and Arts Agency/Group/Organization Type Community Family Services and Organizations What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. Annual Action Plan 2018 15 OMB Control No: 2506-0117 (exp. 06/30/2018) 18 Agency/Group/Organization Community Services Agency of Mountain View and Los Altos Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Community Forum as part of the 2015-2020 Consolidated Plan process. Identify any Agency Types not consulted and provide rationale for not consulting There were no agency types that were not consulted during the Consolidated Plan process. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Regional Continuum of Care Council The CoC works to alleviate the impact of homelessness in the community through the cooperation and collaboration of social service providers. This effort aligns with the Strategic goal to support activities to end homelessness. City of Palo Alto Housing Element (2015-2023) City of Palo Alto The Housing Element serves as a policy guide to help the City meet its existing and future housing needs. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing. 2012-2014 Comprehensive HIV Prevention & Care Santa Clara County HIV Planning Council for Prevention and Care This plan provides a roadmap for the Santa Clara County HIV Planning Council for Prevention and Care to provide a comprehensive and compassionate system of HIV prevention and care services for the County. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements. Annual Action Plan 2018 16 OMB Control No: 2506-0117 (exp. 06/30/2018) Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Affordable Housing Funding Landscape & Local Best Cities Association of Santa Clara County and Housing Trust Silicon Valley This report provides a comparison of the different funding strategies available for affordable housing in the County, and the best practices for funding new affordable housing. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing. Regional Housing Need Plan for the San Francisco B Association of Bay Area Governments This plan analyzes the total regional housing need for the County and all of the Bay Area. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing Community Plan to End Homelessness in Santa Clara Destination: Home The Community Plan to End Homelessness in the County is a five-year plan to guide governmental actors, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This effort aligns with the Strategic Plan's goal to support activities to end homelessness. Palo Alto's Infrastructure: Catching Up, Keeping U City of Palo Alto Infrastructure Blue Ribbon Plan This plan details recommendations for infrastructure maintenance and replace, as well as identifies potential sources of funding. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements. City of Palo Alto Comprehensive Plan (2030) City of Palo Alto This plan is the primary tool for guiding future development in Palo Alto. It provides a guide for long term choices and goals for the City future. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements. Table 3 – Other local / regional / federal planning efforts Narrative (optional) The Entitlement Jurisdictions in Santa Clara County collaborated on preparation of their 2015- 2020 Consolidated Plans. The outreach and the regional needs assessment for these jurisdictions was a coordinated effort. The CoC and the County were involved in the formation of the Consolidated Plan and will be integral in its implementation. Annual Action Plan 2018 17 OMB Control No: 2506-0117 (exp. 06/30/2018) As standard practice, CDBG entitlement jurisdictions from throughout the County hold quarterly meetings known as the CDBG Coordinators Group. These meetings are often attended by HUD representatives and their purpose is to share information, best practices, new developments, and federal policy and appropriations updates among the local grantee staff, as well as to offer a convenient forum for HUD to provide ad-hoc technical assistance related to federal grant management. Meeting agendas cover such topics as projects receiving multi- jurisdictional funding, performance levels and costs for contracted public services, proposed annual funding plans, HUD program administration requirements, and other topics of mutual concern. These quarterly meetings provide the opportunity for the City to consult with other jurisdictions on its proposed use of federal funds for the upcoming Program Year. The CDBG Coordinators Group meetings are often followed by a Regional Housing Working Group meeting, which is open to staff of entitlement and non-entitlement jurisdictions. The Working Group provides a forum for jurisdictions to develop coordinated responses to regional housing challenges. Annual Action Plan 2018 18 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-12 Participation – 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting 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 5, Citizen Participation Outreach. The Draft Action Plan was made available for a 30-day comment period to give citizens an opportunity to offer comments. (Revise for final plan) Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 1 Public Meeting Non- targeted/broad community The Human Relations Commission met on March 8, 2018 to discuss the FY 18/19 funding allocations. Representatives from agencies requesting CDBG funds for FY 18/19 were present. Annual Action Plan 2018 19 OMB Control No: 2506-0117 (exp. 06/30/2018) Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) 2 Public Meeting Non- targeted/broad community The Finance Committee held a public hearing on April 3, 2018 to discuss the FY 18/19 funding allocations 3 Public Meeting Non- targeted/broad community The City Council held a public hearing on May 7, 2018 to discuss the FY 18/19 funding allocations 4 Newspaper Ad Non- targeted/broad community A public hearing notice was published in the Palo Alto Weekly on March 16, 2018 There were no public comments received on the draft FY 19 Action Plan.(Revise for final plan) Table 4 – Citizen Participation Outreach Annual Action Plan 2018 20 OMB Control No: 2506-0117 (exp. 06/30/2018) Expected Resources AP-15 Expected Resources – 91.220(c)(1,2) Introduction In Fiscal Year 2019, Palo Alto will allocate approximately $578,296 to eligible activities that address the needs identified in the Consolidated Plan. Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG public - federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services 392,678 136,049 49,569 578,296 0 CDBG funds will be used for improvements in lower income neighborhoods, and public services that benefit low income and special needs households. Table 5 - Expected Resources – Priority Table Annual Action Plan 2018 21 OMB Control No: 2506-0117 (exp. 06/30/2018) Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Leverage, in the context of the CDBG and HOME, means bringing other local, state, and federal financial resources to maximize the reach and impact of the City’s HUD Programs. HUD, like many other federal agencies, encourages the recipients of federal monies to demonstrate that efforts are being made to strategically leverage additional funds in order to achieve greater results. Leverage is also a way to increase project efficiencies and benefit from economies of scale that often come with combining sources of funding for similar or expanded scopes. Funds will be leveraged if financial commitments toward the costs of a project from a source other than the originating HUD program are documented. The City joined the Santa Clara County's HOME Consortium in 2015. HOME funds can be used to fund eligible affordable housing projects for acquisition, construction and rehabilitation. Starting in FY 2015-2016 developers of affordable housing projects were eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. If the City receives HOME dollars from its participation in the HOME consortium, the required 25 percent matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of two sub-funds: the Commercial Housing Fund and the Residential Housing Fund. As of January 2018, the Commercial Housing Fund had an available balance of approximately $6,238,470 and the Residential Housing Fund had an available balance of $6,968,506. To date, no projects within the City have been funded through the HOME Consortium. Moving forward, the City plans to increase outreach to developers in the City to provide additional information on the HOME Consortium and available funding. Other Federal Grant Programs In addition to the entitlement dollars listed above, the federal government has several other funding programs for community development and affordable housing activities. These include: the Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Affordable Housing Program (AHP) through the Federal Home Loan Bank, and others. It should be noted that, in most cases, the City would not be the applicant for these funding sources as many of these programs offer assistance to affordable housing developers rather than local jurisdictions. County and Local Housing and Community Development Sources There are a variety of countywide and local resources that support housing and community development programs. Some of these programs offer assistance to local affordable housing developers and community organizations while others provide assistance directly to individuals. These resources are discussed below: Annual Action Plan 2018 22 OMB Control No: 2506-0117 (exp. 06/30/2018) 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 January, 2018 the Commercial Housing Fund had an available balance of approximately $6,238,470. 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 January, 2018 the Residential Housing Fund had an available balance of $6,968,506. Annual Action Plan 2018 23 OMB Control No: 2506-0117 (exp. 06/30/2018) If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City has no surplus vacant land that would be available for the development of housing or services. Sixty-five percent of land in the City is open space. Discussion The City of Palo Alto’s (City) Fiscal Year (FY) 2018-2019 Action Plan covers the time period from July 1, 2018 to June 30 2019 (HUD Program Year 2018). The City’s FY 2019 entitlement amount is $392,678. Additionally, the City estimates approximately $136,049 in program income and an estimated $49,569 in available uncommitted funds from the prior program year, bringing the total estimated budget for FY 2018-2019 to $578,296. While U.S. Department of Housing and Urban Development (HUD) allocations are critical, they are not sufficient to overcome all barriers and address all needs that low income individuals and families face in attaining self-sufficiency. The City will continue to leverage additional resources to successfully provide support and services to the populations in need. Currently, the City is not eligible to receive direct funding under the HOME Investment Partnership Act (HOME), Emergency Solutions Grant (ESG), or Housing Opportunities. Annual Action Plan 2018 24 OMB Control No: 2506-0117 (exp. 06/30/2018) Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Homelessness 2015 2020 Homeless CDBG: $62,046 Public service activities for Low/Moderate Income Housing Benefit: 431 Households Assisted 2 Affordable Housing 2015 2020 Affordable Housing CDBG: $54,471 Homeowner Housing Rehabilitated: 5 Household Housing Unit 3 Strengthen Neighborhoods 2015 2020 Non-Homeless Special Needs Non-Housing Community Development CDBG: $25,032 Public service activities other than Low/Moderate Income Housing Benefit: 291 Persons Assisted 4 Fair Housing 2015 2020 Non-Housing Community Development CDBG: $32,012 Public service activities other than Low/Moderate Income Housing Benefit: 15 Persons Assisted 5 Economic Development 2015 2020 Non-Housing Community Development CDBG: $331,002 Jobs created/retained: 30 Jobs Table 6 – Goals Summary Goal Descriptions Annual Action Plan 2018 25 OMB Control No: 2506-0117 (exp. 06/30/2018) 1 Goal Name Homelessness Goal Description Support activities to end homeless. 2 Goal Name Affordable Housing Goal Description Assist in the creation and preservation of affordable housing for low income and special needs households. 3 Goal Name Strengthen Neighborhoods Goal Description Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low income and special needs households 4 Goal Name Fair Housing Goal Description Promote fair housing choice. 5 Goal Name Economic Development Goal Description Expanded economic opportunities for low income households. Annual Action Plan 2018 26 OMB Control No: 2506-0117 (exp. 06/30/2018) Projects AP-35 Projects – 91.220(d) Introduction The Consolidated Plan goals below represent high priority needs for the City of Palo Alto and serve as the basis for the strategic actions the City will use to meet these needs. The goals, listed in no particular order, are: 1. Assist in the creation and preservation of affordable housing for low income and special needs households. 2. Support activities to end homelessness. 3. Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low income and special needs households. 4. Promote fair housing choice. 5. Expand economic opportunities for low income households. Projects # Project Name 1 Silicon Valley Independent Living Center 2 Catholic Charities 3 LifeMoves 4 PAHC Management & Services Corporation 5 YWCA of Silicon Valley 6 Project Sentinel 7 City of Palo Alto 8 Downtown Streets Inc. 9 Minor Home Repair Program Table 7 - Project Information 1 Project Name Silicon Valley Independent Living Center Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $5,032 Description Housing and Emergency Housing Services Annual Action Plan 2018 27 OMB Control No: 2506-0117 (exp. 06/30/2018) Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 15 persons will be assisted. Location Description Citywide. Planned Activities 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. 2 Project Name Catholic Charities Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000 Description Long-Term Care Ombudsman Program Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 236 persons will be assisted. Location Description Long-term care and skilled nursing facilities throughout the City. Planned Activities Catholic Charities assists in problem resolution and advocates for the rights of residents of long term care facilities in Palo Alto. The majority of the clients assisted are low-income, frail, elderly, and chronically ill. This program assists these vulnerable, dependent and socially isolated residents receive the care and placement to which they are entitled. Project Name LifeMoves Annual Action Plan 2018 28 OMB Control No: 2506-0117 (exp. 06/30/2018) 3 Target Area Goals Supported Homelessness Needs Addressed Homelessness Funding CDBG: $38,023 Description Opportunity Services Center Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 300 persons will be assisted. Location Description 33 Encina Way, Palo Alto, CA 94301 Planned Activities LifeMoves 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. 4 Project Name PAHC Management & Services Corporation Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $24,023 Description SRO Resident Support Services Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 131 persons will be assisted Location Description 439 Emerson Street and 735 Alma Street Palo Alto, CA 94301 Annual Action Plan 2018 29 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities 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. 5 Project Name YWCA of Silicon Valley Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000 Description Domestic Violence Services Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 40 persons will be assisted Location Description Citywide Planned Activities 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. 6 Project Name Project Sentinel Target Area Goals Supported Fair Housing Needs Addressed Fair Housing Funding CDBG: $32,012 Description Fair Housing Services Target Date 6/30/2018 Annual Action Plan 2018 30 OMB Control No: 2506-0117 (exp. 06/30/2018) Estimate the number and type of families that will benefit from the proposed activities 15 persons will be assisted Location Description Citywide Planned Activities 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. 7 Project Name City of Palo Alto Target Area Goals Supported Affordable Housing Homelessness Strengthen Neighborhoods Fair Housing Economic Development Needs Addressed Affordable Housing Homelessness Community Services and Public Improvements Fair Housing Economic Development Funding CDBG: $73,733 Description Planning and Administration Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities The City will provide general administrative support to the CDBG program. Location Description Citywide Annual Action Plan 2018 31 OMB Control No: 2506-0117 (exp. 06/30/2018) Planned Activities 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. 8 Project Name Downtown Streets Inc. Target Area Goals Supported Economic Development Needs Addressed Economic Development Funding CDBG: $331,002 Description Workforce Development Program Target Date of Completion 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities 30 jobs will be created for very low income and low income individuals. Location Description Citywide. Planned Activities 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 and will use their community connections to provide training and job opportunities. 9 Project Name Minor Home Repair Program Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Funding CDBG: $54,471 Description The Minor Home Repair Program will provide funds to address health and safety and accessibility concerns for income qualified Palo Alto homeowners. To participate in the program, a homeowner must be low income. Target Date of Completion 6/30/2019 Annual Action Plan 2018 32 OMB Control No: 2506-0117 (exp. 06/30/2018) Estimate the number and type of families that will benefit from the proposed activities 5 households will be assisted with minor homeowners Location Description City wide. Program will be administered by a non-profit partner. Planned Activities Complete home repairs that address health and safety concerns and provide accessibility to low income homeowners throughout the City of Palo Alto. Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City awards CDBG funding to nonprofit agencies to provide public services and housing for low income and special needs households. The City operates on a two-year grant funding cycle for CDBG grants. The City allocates its CDBG funds to projects and programs that will primarily benefit 0-50% AMI households, the homeless and special needs populations. The allocation of funds is made based on the needs identified in the 2015-2020 Consolidated Plan. Annual Action Plan 2018 33 OMB Control No: 2506-0117 (exp. 06/30/2018) Annual Action Plan 2018 34 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Not applicable. The City has not established specific target areas to focus the investment of CDBG funds. Geographic Distribution Target Area Percentage of Funds Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically Not applicable. Discussion See discussion above. Annual Action Plan 2018 35 OMB Control No: 2506-0117 (exp. 06/30/2018) Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction Palo Alto has identified affordable housing as the primary objective for the expenditure of CDBG funds in the Consolidated Plan. The City will continue to allocate funding available to activities and projects that meet this objective. A detailed discussion of how HUD entitlements will be used to support affordable housing needs within the City is provided in AP-20, with the number of households to be assisted itemized by goal. One Year Goals for the Number of Households to be Supported Homeless 0 Non-Homeless 0 Special-Needs 0 Total 0 Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 5 Acquisition of Existing Units 0 Total 5 Table 10 - One Year Goals for Affordable Housing by Support Type Discussion Please see discussion above. Annual Action Plan 2018 36 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-60 Public Housing – 91.220(h) Introduction The Santa Clara County Housing Authority (SCCHA) assists approximately 17,546 households through the federal Section 8 Housing Choice Voucher program (Section 8). The Section 8 waiting list contains over 20,000 households (estimated to be a 10-year wait). SCCHA also develops, controls, and manages more than 2,100 affordable rental housing properties throughout the County. SCCHA’s programs are targeted toward LMI households and more than 80 percent of their client households are extremely low income families, seniors, veterans, persons with disabilities, and formerly homeless individuals. In 2008, SCCHA entered a ten-year agreement with HUD to become a Moving to Work (MTW) agency. The MTW program is a federal demonstration program that allows greater flexibility to design and implement more innovative approaches for providing housing assistance. Additionally, SCCHA has used LIHTC financing to transform and rehabilitate 535 units of public housing into SCCHA-controlled properties. The agency is an active developer of affordable housing and has either constructed, rehabilitated, or assisted with the development of more than 30 housing developments that service a variety of households, including special needs households. Actions planned during the next year to address the needs to public housing Not applicable. SCCHA owns and manages four public housing units, which are all located in the City of Santa Clara. Actions to encourage public housing residents to become more involved in management and participate in homeownership Although the majority of their units have been converted to affordable housing stock, SCCHA is proactive in incorporating resident input into the agency’s policy-making process. An equitable and transparent policy-making process that includes the opinions of residents is achieved through the involvement of two tenant commissioners on the SCCHA board. SCCHA has been a MTW agency since 2008. In this time the agency has developed 31 MTW activities. The vast majority of its successful initiatives have been aimed at reducing administrative inefficiencies, which provides resources for programs aimed at LMI families. If the PHA is designated as troubled, describe the manner in which financial assistance will be Annual Action Plan 2018 37 OMB Control No: 2506-0117 (exp. 06/30/2018) provided or other assistance Not applicable. Discussion Please see discussion above. Annual Action Plan 2018 38 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction The Santa Clara County region is home to the fourth-largest population of homeless individuals (7,394 single individuals) and the highest percentage of unsheltered homeless of any major city (74 percent of homeless people sleep in places unfit for human habitation). The homeless assistance program planning network is governed by the Santa Clara Continuum of Care (CoC), governed by the Destination: Home Leadership Board, who serves as the CoC Board of Directors. The membership of the CoC is a collaboration of representatives from local jurisdictions comprised of community-based organizations, the Housing Authority of Santa Clara, governmental departments, health service agencies, homeless advocates, consumers, the faith community, and research, policy and planning groups. For many years, the CoC utilized a homeless services system referred to as the Homeless Management Information System (HMIS). The HMIS monitored outcomes and performance measures for all the homeless services agencies funded by the County. Last year, the CoC and service providers transitioned to a new system referred to as Clarity. The system provides additional tools and resources to assist the CoC and service providers to track information regarding clients served. 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 2017, 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. Palo Alto financially contributed to this effort. The next PIT is scheduled for January 2019. 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. One example includes the Hotel de Zink rotating Annual Action Plan 2018 39 OMB Control No: 2506-0117 (exp. 06/30/2018) shelter, which provides overnight shelter to approximately 15 individuals every night. 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 spends part of its CDBG funds and local funds toward a variety of public services to address the needs of homeless and very low income persons. Services provided include free food, clothing, medical care, legal assistance, and rental assistance. The City allocates funding to the following homeless service providers: CDBG Funded LifeMoves - Opportunity Services Center $38,023. The Opportunity Services Center facility in Palo Alto provides a clean, safe environment and resources for 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 de Zink rotating church shelter program is housed at a different location each month. Downtown Streets Team – Workforce Development Program $331,002. This economic development program helps motivated graduates of the Downtown Streets Team programs move on to stable employment. The program includes mentoring, counseling, job readiness, job training, and assistance. Palo Alto Housing Corporation – SRO Tenant Counseling $24,023. 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. City of Palo Alto – Minor Repair Program $54,471. The Minor Repair Program will provide funds to low income Palo Alto homeowners to address health and safety issues and improve accessibility. To participate in the program, a homeowner must be low income. A non-profit partner will administer the program for the City. Note: Please see "discussion" section for HSRAP Funded homeless service providers. Helping low-income individuals and families avoid becoming homeless, especially extremely Annual Action Plan 2018 40 OMB Control No: 2506-0117 (exp. 06/30/2018) 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. HSRAP Funded Abilities United – Disability Services:$44,691. Provides services and activities for adults & children with mental & physical disabilities. Adolescent Counseling Services (Outlet Program) -$10,250. Supports the wellbeing of all teens, tweens, & young adults in Santa Clara & San Mateo Counties. Community Working Group - $30,000. Support for continued operation & maintenance of the Day Services Center Counseling & Support Services for Youth (CASSY) -$35,000. A school-based youth mental health support program Downtown Streets Team – Downtown Streets:$74,572. Identifies motivated homeless individuals & provides them with jobs cleaning & beautifying the downtown area in exchange for housing & food vouchers. The program includes counseling, coaching & training to help program participants build self- esteem, confidence & connections in the community. Dreamcatchers - $23,609. Creates vibrant afterschool classrooms where students learn to thrive. KARA - $18,565. KARA provides grief support to children, teens, families & adults. La Comida de California – Hot Meals for The Elderly: $36,372. Daily meal program for the elderly. LifeMoves – $35,257. A nonprofit committed to ending the cycle of homelessness for families & individuals in San Mateo & Santa Clara Counties. May View Health Center – Health Care for Low Income & Homeless Palo Alto residents: $26,990. Basic primary health care services & health education & referral services for uninsured low-income & homeless individuals from the Palo Alto area. Momentum for Mental Health – Homeless Outreach Program: $44,724. Momentum for Mental Health outreach program provides emergency on-call services to assist local mentally ill homeless persons. Palo Alto Housing - $20,001. This non-profit agency builds, develops, acquires, & manages low- & Annual Action Plan 2018 41 OMB Control No: 2506-0117 (exp. 06/30/2018) moderate-income housing in Palo Alto & the San Francisco Bay Area. PARCA - $10,959. On-site supervision, independent living training & social & recreational activities at the Page Mill Court assisted living apartment complex Peninsula HealthCare Connection – Project Downtown Connect: $29,684. Provider of health care services at the Opportunity Center of Palo Alto. Project Downtown Connect provides Section 8 vouchers to eligible homeless individuals & families. SALA – Legal Assistance to Elders: $14,401. Senior Adults Legal Assistance (SALA) provides affordable legal assistance to elders. Vista Center for the Blind or Visually Impaired - $26,475. Empowers individuals who are blind or visually impaired to embrace life to the fullest through evaluation, counseling, education & training. Youth Community Service - $21,663. Builds life skills & leadership through meaningful service learning experiences that encourage youth to make purposeful school & life choices. Annual Action Plan 2018 42 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-75 Barriers to affordable housing – 91.220(j) Introduction: The incorporated and unincorporated jurisdictions within the County face barriers to affordable housing that are common throughout the Bay Area. High on the list is the lack of developable land, which increases the cost of available lands and increases housing development costs. Local opposition is another common obstacle as many neighbors have strong reactions to infill and affordable housing developments. Their opposition is often based on misconceptions, such as a foreseen increase in crime; erosion of property values; increase in parking and traffic congestion; and overwhelmed schools. However, to ensure a healthy economy the region must focus on strategies and investment that provide housing for much of the region’s workforce – for example, sales clerks, secretaries, firefighters, police, teachers, and health service workers – whose incomes significantly limit their housing choices. It should be noted that in a constrained housing supply market, when housing developments produce housing that is relatively affordable, higher income buyers and renters generally outbid lower income households. A home’s final sale or rental price will typically exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for LMI households. 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 Palo Alto is addressing the barriers to affordable housing through the following programs and ordinances: Context-Based Design Codes The City adopted form-based codes in 2006 to ensure and encourage residential development by following context-based design guidelines to meet increased density needs. The code encourages the creation of walkable, pedestrian-oriented neighborhoods, following green building design principles, and increasing density along transit corridors and in mixed-use neighborhoods. The Context-Based Design Code allows for increased density and mixed-use buildings in a way that enhances neighborhood character and walkability. Density Bonus Ordinance Density bonus provisions are a tool for attracting and assisting developers in constructing affordable housing. Density bonuses allow a developer to increase the density of a development above what is allowed under standard zoning regulations and provides regulatory relief in the form of concessions. In Annual Action Plan 2018 43 OMB Control No: 2506-0117 (exp. 06/30/2018) exchange, a developer provides affordable units in the development. In 2004, the California State Legislature lowered the thresholds required to receive a density bonus and increased the number of concessions a developer can receive. The City adopted a Density Bonus Ordinance in January 2014. The density bonus regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided. As required by state law, the regulations also allow for exceptions to applicable zoning and other development standards, to further encourage development of affordable housing. Below Market Rate Housing Program Established in 1974, the City’s BMR Housing Program has been instrumental in the production of affordable housing by requiring developers to provide a certain percentage of units as BMR in every approved project of three units or more. The program originally required that for developments on sites of less than five acres, the developer must provide 15 percent of the total housing units as BMR housing units. If the site was larger than five acres, the developer was required to provide 20 percent of the units as BMR housing. Several court cases have challenged the BMR, or “inclusionary zoning” ordinances in California. Two factors that have received recent attention by the courts include whether inclusionary housing is considered rent control, and whether inclusionary housing and related housing mitigation fees are considered exactions. As a result of ongoing litigation, many cities have suspended or amended the portions of their inclusionary housing requirements that require affordable units to be included in market rate rental developments and many cities have turned, instead, to the use of development impact fees charged on new, market-rate housing and/or commercial development. Known as “Housing Impact Fees” and “Commercial Linkage Fees,” these fees are based on an assessment of the extent to which the development of new market-rate housing or commercial uses, respectively, generates additional demand for affordable housing. The City recently updated its Commercial and Residential Impact Fee Nexus Studies and adopted two ordinances to make changes to its BMR program and adopted a new fee structure. The ordinances became effective on June 19, 2017. Discussion: Please see above. Annual Action Plan 2018 44 OMB Control No: 2506-0117 (exp. 06/30/2018) AP-85 Other Actions – 91.220(k) Introduction: This section discusses the City’s efforts in addressing the underserved needs, expanding and preserving affordable housing, reducing lead-based paint hazards, and developing institutional structure for delivering housing and community development activities. Actions planned to address obstacles to meeting underserved needs The diminishing amount of available funds continues to be an obstacle to addressing the needs of underserved populations. To address this, the City supplements its CDBG funding with other resources and funds, including: • The City’s Human Service Resource Allocation Process (HSRAP) provides approximately $1,464,146 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. • The Palo Alto Commercial Housing Fund is utilized 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. • The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from residential developers and monies from other miscellaneous sources, such as proceeds from the sale or lease of City property. • The City’s Below Market Rate Emergency Fund was authorized in 2002 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. • HOME Program funds are available on an annual competitive basis through the State of California HOME program, and the County’s HOME Consortium. Actions planned to foster and maintain affordable housing The City will foster and maintain affordable housing by continuing the following programs and ordinances: • The Below Market Rate Emergency Fund which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. • The Commercial Housing Fund is utilized to increase the number of new affordable housing units for Palo Alto’s work force. • The Residential Housing Fund is used to assist new housing development and/or the acquisition, rehabilitation or the preservation of existing housing for affordable housing. • The Density Bonus Ordinance, adopted by the City Council in January 2014, allows for bonuses Annual Action Plan 2018 45 OMB Control No: 2506-0117 (exp. 06/30/2018) of 20 to 35 percent, depending on the amount and type of affordable housing provided. The City’s participation in the County's HOME Consortium allows developers of affordable housing projects in Palo Alto to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize the Actions planned to reduce lead-based paint hazards The City’s housing and CDBG staff provides information and referral to property owners, developers, and non-profit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City provides financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors are trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35. Actions planned to reduce the number of poverty-level families The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2018-2019, these programs will include the following: • Downtown Streets Team is a nonprofit in the City that works to reduce homelessness through a “work first” model. Downtown Streets Team uses their community connections to provide training and job opportunities to homeless people, specifically in the downtown area. The Downtown Streets Team has helped 802 people find housing and 745 find jobs since its inception in 2005. The Downtown Streets Team has initiatives in Palo Alto, Sunnyvale, San Jose, and San Rafael. Actions planned to develop institutional structure The City is striving to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and the production of affordable housing. Collaborative efforts include: • Regular quarterly meetings between entitlement jurisdictions at the CDBG Coordinators Meeting and Regional Housing Working Group. • Joint jurisdiction Request for Proposals and project review committees • Coordination on project management for projects funded by multiple jurisdictions • The established of the HOME Consortium with the county of Santa Clara and the cities of Gilroy Annual Action Plan 2018 46 OMB Control No: 2506-0117 (exp. 06/30/2018) and Cupertino to provide additional funding opportunities for affordable housing projects. Recent examples include the effort by the County to create a regional affordable housing fund, using former redevelopment funds that could be returned to the County to use for affordable housing. Another effort underway involves the possible use of former redevelopment funds to create a countywide pool for homeless shelters and transitional housing. These interactions among agencies generate cohesive discussion and forums for bridging funding and service gaps on a regional scale. Actions planned to enhance coordination between public and private housing and social service agencies The City benefits from region-wide network of housing and community development partners, such as the County and the CoC. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources. In addition to the actions listed above, the City will continue to coordinate with the City’s human services funding efforts to comprehensively address its community needs. Discussion: Please see discussions above. Annual Action Plan 2018 47 OMB Control No: 2506-0117 (exp. 06/30/2018) Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction: The charts below provide additional information regarding the CDBG program income and other CDBG program requirements. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(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. 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 136,049 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: 136,049 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. 100.00% APPENDIX A: PUBLIC COMMENTS RECEIVED APPENDIX B: PUBLIC HEARING NOTICE 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 2019 Community Development Block Grant (CDBG) funds, will begin on March 16, 2018 and end on April 16, 2018. The Draft Annual Action Plan describes the activities the City may fund under the 2019 CDBG Program. Collectively these activities are intended to meet Palo Alto’s affordable housing and community development objectives described in the 2015-2020 Consolidated Plan. Copies of the Draft Annual Action Plan will be available on March 16, 2018 at the Department of Planning and Community Environment, 250 Hamilton Avenue, 5th Floor, Palo Alto, CA 94301, the City’s website https://www.cityofpaloalto.org/gov/depts/pln/long_range_planning/community_development_block_g rant/default.asp or by calling Erum Maqbool, CDBG Staff Specialist, at (650) 329-2660. 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 Finance Committee will hold a Public Hearing on April 3, 2018 to review the proposed Fiscal Year 2018 CDBG funding allocations identified in the Draft Annual Action Plan. The Public Hearing will be held at 7:00 p.m., or as soon as possible thereafter, in City Hall Community Meeting Room, 250 Hamilton Avenue, Palo Alto. The Palo Alto City Council will hold a Public Hearing on May 7, 2018 to adopt the Annual Action Plan and the associated Fiscal Year 2018 CDBG allocations. The Public Hearing will be held at 6:00p.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 APPENDIX C: GRANTEE SF – 424 & CERTIFICATION OMB Number. 4040-0004 Expiration Date: 10/31/2019 Application for Federal Assistance SF -424 * 1. @ Type of Submission: Preapplication Application Changed/Corrected Application • 2. Type of Application: • If Revision, select appropriate letter(s): New 0 Continuation * Other (Specify): Revision • 3. Date Received: 4. Applicant Identifier: 03/15/2018 5a. Federal Entity Identifier: 5b. Federal Award Identifier. B -18 -MC -06-002,' State Use Only: 6. Date Received by State: 7. State Application Identifier. 8. APPLICANT INFORMATION: * a. Legal Name: City of Palo Alto • b. Employer/Taxpayer Identification Number (EIN/TIN): " c. Organizational DUNS: 94-6000389C 0505207820000 d. Address: • Streetl: 250 Hamilton Avenue Street2: • City: Palo Alto County/Parish: • State: CA: California Province: •Country: USA: UNITED STATES • Zip / Postal Code: e. Organizational Unit: Department Name: Division Name: Planning & Comm. Environment Long Range Planning f. Name and contact information of person to be contacted on matters involving this application: Prefix: Middle Name: * Last Name: Suffix: Ms * First Name: Erum Magbool Title: CDBG Staff Specialist Organizational Affiliation: • Telephone Number. 650-329-2660 Fax Number. 650-329-2154 * Email: erum.magbool@cityofpaloalto.org Application for Federal Assistance SF -424 * 9. Type of Applicant 1: Select Applicant Type: C: City or Township Government Type of Applicant 2: Select Applicant Type: Type of Applicant 3: Select Applicant Type: ' Other (specify): • 10. Name of Federal Agency: U.S. Department of Housing and Urban Development 11. Catalog of Federal Domestic Assistance Number: 14.218 CFDA Title: * 12. Funding Opportunity Number: • Title: 13. Competition Identification Number: Title: 14. Areas Affected by Project (Cities, Counties, States, etc.): Add Attachment ',tete Attack View Attachment * 15. Descriptive Title of Applicant's Project: The City of Palo Alto's Community Development Block Grant (CDBG) program for Fiscal Year 2018-19. Attach supporting documents as specified in agency instructions. Add Attachments "mete Attachments view Attachments 1 Application for Federal Assistance SF -424 16. Congressional Districts Of: * a. Applicant 14th * b. Program/Project 14th Attach an additional list of Program/Project Congressional Districts if needed. Add Attachment 17. Proposed Project: ' a. Start Date: 07/01/2018 * b. End Date: 06/30/2019 18. Estimated Funding ($): * a. Federal * b. Applicant * c. State * d. Local * e. Other ' f. Program Income 'g. TOTAL 392, 678.00 49, 569.00 136,049.001 578,296.00 * 19. Is Application a. This application b. Program is subject Subject to Review By State Under Executive Order 12372 Process? was made available to the State under the Executive Order 12372 Process for review on to E.O. 12372 but has not been selected by the State for review. covered by E.O. 12372. • 1 c. Program is not * 20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes," provide explanation in attachment.) Yes @ No If "Yes", provide explanation and attach Add Attachment Delete Attachment View Attachment 21. *By signing this herein are true, complete comply with any resulting subject me to criminal, application, I certify (1) to the statements contained in the list of certifications** and (2) that the statements and accurate to the best of my knowledge. I also provide the required assurances** and agree to terms if I accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may civil, or administrative penalties. (U.S. Code, Title 218, Section 1001) and assurances, or an intemet site where you may obtain this list, is contained in the announcement or agency @ ** I AGREE '* The list of certifications specific instructions. Authorized Representative: Prefix: Mr . * First Name: James Middle Name: * Last Name: Keene Suffix: 'Title: City Manager ' Telephone Number. 650-329-2563 Fax Number. 'Email: james.keene@cityofpaloalto.org * Signature of Authorized Representative: * Date Signed: 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. Anti-Lobbying --To the best of the jurisdiction's knowledge and belief: 1.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; 2.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 3.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 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: 1.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); 2.Overall Benefit.The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) _____ , ______(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; 3.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: 1. 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 2. 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; 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 24 CFR Part 35, subparts A, B, J, K and R; Compliance with Laws --It will comply with applicable laws. Signature/Authorized Official Date Title APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING: A.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.