HomeMy WebLinkAbout1998-10-26 City Council (16)City of Palo Alto
City Manager’s Report
TO: HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:OCTOBER 26, 1998 CMR:409:98
SUBJECT:CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION
REPORT (CAPER) FOR HOUSING AND COMMUNITY
DEVELOPMENT ACTIVITIES DURING FISCAL YEAR 1997/98
This is an informational report and no Council action is required.
BACKGROUND
The preparation and submittal of a Consolidated Annual Performance and Evaluation Report
(CAPER) is required by the U.S. Department of Housing and Urban Development (HUD)
for the receipt of federal. Community Development Block Grant (CDBG) funds. The
attached document was submitted to HUD on September 30, 1998 following the required 15-
day public review period..
DISCUSSION
The CAPER provides a summary of the resources available and the programmatic
accomplishments in affordable housing, and community development during the 1997/98
fiscal year. It includes the status of actions taken during the 1997/98 fiscal year to implement
the strategies and objectives described in the City’s Consolidated Plan for the period July 1,
1995 to June 30, 2000; an evaluation of the progress made during the year in addressing
identified priority needs and objectives; and an accounting of CDBG program expenditures.
ATTACHMENTS
Attachment A: Consolidated Annual Performance and Evaluation Report
PREPARED BY: Suzanne Bayley, Senior Planner
DEPARTMENT HEAD REVIEW:
G. EDWARD GAWF X0,
Planning and Community Environment
CMR:409:98 Page ’1 of 2
CITY MANAGER APPROVAL:
EMILY
Assistant City Manager
CO:CDBG Citizens Advisory Committee
Human Relations Commission
Palo Alto Housing Corporation
Mid-Peninsula Housing Coalition
Stevenson House
Lytton Gardens
League of Women Voters
Urban Ministry of Palo Alto
CMR:409:98 Page 2 of 2
CONSOLIDATED ANNUAL
PERFORMANCE
AND EVALUATION REPORT
.(CAPER)
July 1, 1997 through June 30, 1998
CITY OF PALO ALTO
CALIFORNIA
Prepared By: Department of Planning and Community Environment
Anne Cronin Moore, Interim Director
Public Review and Comment Period: September 14 - 28, 1998
For Submittal To HUD: September 30, 1998
For information, contact:
Suzanne Bayley, CDBG Coordinator (650) 329-2428, or
Catherine Siegel, Housing Coordiiaator (650) 329-2108
1997/98 CAPER
TABLE OF CONTENTS
PART I. ,INTRODUCTION ....................................................1
A. Description of Report ......................................................2
B. Description of Public Review Process .....................~ ...................2
C. Overview of Identified Needs and Priorities ....................................2
D. Summary of Accomplishments ..............................................3
PART II. AFFORDABLE HOUSING . . .........................................5
A. Resources ................................................................6
1. Resources Available Within the City of Palo Alto .. ~ ........................6
a. Community Development Block Grant (CDBG) Funds ..................6
b. Local Housing Funds ................." ...........................7
c. HOME Investment Partnership Act Funds ............................7
d. State of California Funds ........................: ................7
e. Redevelopment Funds ............................................8
2. Other Resources Obtained by Nonprofits and Others .........................8
B. Accomplishments ....................................., ....................10
1. Programmatic Accomplishments ........................................10
a. New Construction Rental Housing .................................10
Page Mill Court Apartments
Alma Place SRO Apartments
b. Preservation of Existing Affordable Rental Housing ........... .......: 12
Sheridan Apartments
Veterans Workshop Group Home
c. Acquisition and Rehabilitation of Existing Rental Housing ...... ........13
Ventura Avenue Apartments
Lytton Gardens I & II
d. Below Market Rate Home-ownership and Rental Program .....’ .........14
e. Rehabilitation of Owner occupied Single Family Homes ...............14
2. Persons and Households Assisted with Housing ..............~ .............15
a. Table 1A .....................................................16
C. Assessment of Performance ................................................17
1. Evaluation of Progress in Meeting 1997/98 Goals ............................17
2. Evaluation of Progress in Meeting 1995-2000 Goals ..........................17
3. Barriers to Fulfilling Housing Strategies ..... ...........¯ ........ ...........17
a. Federal or State Barriers .........................................18
b. Barriers Related to Local Market Conditions ..............." ..........19
c. Discussion of Most Serious Barriers ................................19
d. Federally Subsidized Housing At-Risk of Conversion to Market Rate .....20
4. Actions to Address Obstacles . .~ ...................................: .....21
5. Adjustments to Affordable Housing Strategies .............................21
a. Public Policies ..................................: ....¯ ..........21
PART III: COMMUNITY DEVELOPMENT ....................................22
A. Resources ...............................................................23
1. Resources Available within the City of Palo Alto "23
a. Federal Funds ..................................................23
b. Local Funds (Human Service Resource Allocation Process) .............23
c. Other Funds ....................................................23
B. Accomplishments .........................................................23
1.~ Summary of Accomplishments with CDBG Funds ..........................23
Table 3-1 .............................................................25
2. Summary of Accomplishments, Palo Alto General Fund Money ...............27
3. Actions Taken to Affirmatively Further Fair Housing ........................28
4.’ Actions Taken to Address Needs of Homeless Persons ............... ........29
a. Santa Clara Collaborative on Housing and Homelessness ...............29
b. Emergency Ordinance .............’ ..............................29
c. Housing and Shelter .............................. ...............30
d. Employment Opportunities .................................~ ......31
e. Homeless Services .............................................31
5. Other Actions .......................................................32
a. Lead Based Paint Hazard Reduction ......................’ ...........32
b. Intergovernmental Cooperation ...................................32
6. Changes to Annual Action Plan .........................................32
C. Assessment of Performance .................................................33
1. Evaluation of Progress in Meeting Annual Community Development Goals ......33
2. Evaluation of Progress in Meeting 1995-2000 Goals .....................’ ....33
3. Barriers to Fulfilling Strategies ..............................i ..........33
4. Timely Expenditure of Funds ...........................................33
5. Adjustments to Community Development Strategies .........................34.
PART IV: APPENDIX ...................................................~ ....35
A.Copy of Ad and Public Review Notice for CAPER
B.1997/98 Goals and Objectives
C.Grantee Performance Financial Report for Fiscal Year 1997/98
PART I.
INTRODUCTION
INTRODUCTION ’
A. Description of Report
Over the past few years, the U. S. Department of Housing and Urban Development (HUD) has
designed a new grants management and reporting system to implement the concept of
consolidated planning. The consolidated planning system is intended to relate and link identified
needs within a community to the federal and local resources available to meetthose needs; and to
strengthen partnerships among all levels of government and the private sector. The annual
reporting portion of this system is now know as the Consolidated Annual Performance and
Evaluation Report (CAPER).
Preparation and submittal of the CAPER is a condition for the City (and nonprofit organizations
within the City) to apply for federal community development and housing assistance funds such
as Community Development Block Grant (CDBG) and HOME funds. The CAPER replaces the
. previously required CDBG Grantee Performance Report, and the Annual Performance Report for
the Housing Affordability Strategy of the Consolidated Plan.
The CAPER provides a summary of the resources available and the programmatic
accomplishments in affordable housing and community development during the 1997/98 fiscal
year. It evi~luates the actions taken during the year to implement the strategies and objectives
described in the City’s Consolidated Plan for the period July t, 1995 to June 30, 2000; and the
progress made during the past year in addressing identified priority needs and objectives.
B. Description of Public Review Process
A notice, regarding the draft CAPER was mailed to interested organizations and persons. Copies
of the CAPER were made available at City Hall. A notice informing the public of the
availability of the CAPER was published in the Palo Alto Weekly on Friday, September 11,
1998. A copy of that notice is appended to this report. "
/The draft CAPER was available for public review and comment for a 15 day period, beginning
on Monday, September 14, 1998 and concluding at 5:00 p.m. on Monday, September 28, 1998.
Questions or comments regarding the CAPER should be directed to Suzanne Bayley, CDBG
Coordinator, City of Palo Alto, Department of Planning andCommunity Environment, 250
Hamilton Avenue, 5th Floor, Palo Alto, CA 94301. E-mail: suzanne_bayley@city.palo-
alto.ca.us. No public comments on the draft report were received.
C. Overview of Identified Needs and Funding Priorities
Palo Alto’s Housing and Community DevelopmentNeeds were identified in the Consolidated
Plan for the period July 1, 1995 to June 30, 2000. Not surprising, the provision of affordable
rental housing units was identified as the most critical need in Palo Alto. This includes the
provision of housing affordable to persons who are homeless, or at-risk of homelessness, and
persons with special needs, such as the frail elderly, developmentally disabled, physically
disabled, and those persons with severe mental illnesses. While all types of housing areneeded in
Introduction
the City, the Consolidated Plan objectives focus on the creation and preservation of rental
housing. Permanent housing for families with children, the elderly, singles and very small
households is the highest priority followed by transitional housing with supportive services.
While the creation of additional new units of affordable housing is the most desirable option, the
preservation of existing subsidized units which are at-risk of converting to market rate units, is
also a high priority need.
Non-housing community development needs in Palo Alto include public services and public
facilities and improvements. Public service needs include supportive services and employment
opportunities for lower income, at-risk, homeless, or disabled populations. There is a need to
expand, modernize, rehabilitate, and make accessibility improvements to existing public facilities
serving the same populations. See Appendix B for a listing of the 1997/98 Goals and Objectives.
D. Summary of Accomplishments
Overall, fiscal year 1997/98 was a verybusy and productive year for the City of Palo Alto. The
City has exceeded both its annual goals as well as the five year goals identified in the
Consolidated Plan. A summary of CDBG/Housing accomplishments follows:
July, 1997. Clara Mateo Alliance opened a new 40 bed homeless shelter with
supportive services at the Veterans Administration Hospital in Menlo Park.
August, 1997. Palo Alto Housing Corporation acquired Ventura Apartments, 12
existing units of family housing in Palo Alto.
August, 1997. Mid-Peninsula Housing Coalition broke ground on Page Mill Court, 24
new units of permanent rental housing for persons with developmental disabilities.
Actual project completion and occupancy will be in fiscal year 1998/99.
October, 1997..Neterans Workshop preserved Margarita House in Palo Alto as a group
home for seven low income, disabled veterans.
November, 1997. Emergency Housing Consortium opened a new regional homeless
Reception Center with a capacity.of 250 shelter beds and supportive services in San
Jose.
January, 1998. Palo Alto Housing Corporation secured an acquisition agreement with
the owners of the Sheridan Apartments, 57 units of existing subsidized senior housing
in Palo Alto. The project was at risk of converting to market rate units.
February, 1998. Palo Alto Housing Corporation completed the construction and initial
rent-up of Alma Place, 107 new units (106 rental units plus a manager’s unit) of Single
Room Occupancy (SRO) housing in the downtown area.
Introduction
February, 1998. Community Association for Rehabilitation (CAR) completed the
installation of an accessible restroom and changing area, and a new fire alarm system in
their warm water swim therapy center on Middlefield Road in Palo Alto.
February, 1998. An emergency, temporary service center for very low income and
homeless persons was established in the Cal Train parking lot in response to E1 Nino
flooding and the forced closure of the Red Cross and Urban Ministry operations.
May, 1998. Lytton Gardens used CDBG funds to complete the installation of electronic
doors in the common areas of the residential facility for the elderly. Smoke doors were
also installed on the upper floors for fire safety.
June, 1998. Ventura Community Center. Various CDBG funded improvements and
upgrades were completed at the community center, serving one of Palo Alto’s lower
income neighborhoods. Improvements included roofing, electrical upgrades, restroom
accessibility, and parking lot resurfacing.
All of the public service activities and programs funded with CDBG funds were carried
out as anticipated. This included the provision of services for homeless persons such as
shelter, food, message and mail, and counseling; affordable housing information and
referral; para-transit subsidies for low income, disabled persons; complaint investigation
and ombudsmen services for the frail elderly in long-term care facilities; and fair housing
counseling and advocacy services. These activities are described later in this report in
more detail.
4
PART II.
AFFORDABLE HOUSING
AFFORDABLE HOUSING
A. Resources
1. Resources Available Within the City of Palo Alto
a. Community Development Block Grant Funds
In fiscal year 1997/98, the City of Palo Alto allocated a total of $1,040,000 in federal
Community Development Block Grant (CDBG) funds to local projects. This represents
$782,000 in CDBG funds from HUD, $70,000 in anticipated program income for fiscal year
1997/98, $152,500 in unallocated program income from prior program years, and $35,500 in
reallocated funds. The reallocated funds include $21,000 originally allocated in fiscal year
1996/97 to Innovative Housing for rehabilitation of a shared home in East. Palo Alto, $1,746 in
unused Senior Home Repair funds, and $12,754 in unused City of Palo Alto administrative costs.
The main source of program income is from loan payoffs from the City’s Housing Improvement
Program (HIP) single family rehabilitation program. The other source is from the Palo Alto
Housing Corporation when rental income exceeds expenses on the proportionate share of
properties acquired or rehabilitated with CDBG funds.
Of the total 1997/98 allocation, $699,200, or 67 percent was directed toward housing activities:
the creation, rehabilitation, or preservation of affordable housing units:
$48,000 to Palo Alto Senior Housing Project, Inc. (Adlai E. Stevenson House) to re-roof a
portion of the 120 unit residential facility which provides affordable housing tO senior
adults. 455 E. Charleston Road, Palo Alto.
$51,000 for Veterans Workshop to acquire a 100% interest in a single family home which
is used as a shared home for seven low income, disabled veterans. Funds will enable the
house to be retained as affordable shared housing. 442 Margarita Avenue, Palo Alto.
/
$17,600 to Alliance for Community Care (formerly Miramonte Mental. Health) for a
feasibility study to ascertain the future use of a large single family residence in downtown
Palo Alto. The purpose of the study is to assess existing conditions and estimate the
funding necessary for rehabilitation and conversion into either a multi-family or single
room occupancy type of shared housing use. 650 Waverley Street, Palo Alto.
$582,600 to the City’s New Housing Development Fund for projects to increase or
preserve the number of housing units affordable to low and very low income persons. This
amount, added to the carry-over fund balance of $577,649, made the total available for
1997/98 $1,160,249.
6
Affordable Housing
b. Local Housing Funds
The City of Palo Alto maintains a local housing trust fund which has two sub-funds: the
"Commercial Housing In-Lieu Fund" and the "Residential Housing In-Lieu Fund". These funds
are the only source of local funding and subsidies for affordable housing within the City. They
are used to provide matching funds, to pay for costs which exceed HUD limits, to fund the cost of
features and amenities inel!gible under federal housing programs, for pre-development expenses,
and feasibility studies, site acquisition and similar purposes.
Commercial Housing In-Lieu Fund: Palo Alto requires commercial and industrial
development projects to pay a housing mitigation fee per Chapter 16.47 of the Municipal
Code. The fees are deposited in the Commercial Housing In-Lieu Fund - and the
accumulated fees and interest earned on the fund are made available for the creation of new
low and moderate income housing units under the "Housing Reserve Guidelines" adopted
by the City Council. The Commercial Fund had a July 1, 1997 balance of approximately
$370,000, and fees of approximately $1.5 million were collected during the fiscal year.
Residential Housing In-Lieu Fund: Pursuant to Program 13 (the Below Market Rate
Program) of the City’s adopted Housing Element, Palo Alto collects housing in-lieu fees
from residential developments that cannot provide on-site below market units. These fees,
interest earnings of the Fund and other miscellaneous revenues related to housing are
placed in a special fund - the Residential / Miscellaneous In-Lieu Fund. This fund, pbr
adopted City policy, is used mainly to provide funding for acquisition or rehabilitation of
low and moderate income housing, but may also be used for assistance to new housing
construction projects. At the beginning of the. 1997/98 fiscal year, the Residential Fund
had an unrestricted balance of $13,000, during the year $847,500 was collected in fees, of
which $825,800 was committed to the Sheridan project, leaving a yei~r end balance of
$34,700. .
c. Home Investment Partnership Act (HOME) Funds
The City of Palo Alto is not an entitlement jurisdiction for the federal HOME program. Because
the City is an entitlement jurisdiction for the CDBG program, the City does not participate in the
urban county HOME program through the County of Santa Clara. The City is only eligible to. "
apply for HOME funds through the State of CaliforniaHOME program. The City did not receive
any HOME funds during fiscal year 1997/98. Expected changes to the State’s funding criteria,
which will increase the preference for rural communities with high poverty, will make it even less
likely that Palo Alto can submit competitive applications for HOME funds in the future.
d. State of California Funds: There were no State housing funds available to the City of Palo Alto
during the fiscal year.
e. Redevelopment Funds:
available.
The City does not have a redevelopment agency.
Affordable Housing
There are no funds
2. Other Resources Obtained by Nonprofits & Others :
HUD Section 8 - Moderate Rehabilitation Program
Palo Alto Housing Corporation (PAHC) owns and manages a number of apartment buildings
where a portion of the units have rents subsidized under the old Section 8 Moderate Rehabilitation
program. The Project-based Section 8 contracts for this rental assistance program were originally
written for terms of 5 to 15 years and are beginning to expire. Currently, HUD only provides
extensions on a one year basis. During the fiscal year, PAHC applied for sixteen units of new,
five-year project based Section 8 subsidies. They were tentatively awarded six Section 8
subsidies, with three of the units at Waldo Apartments, and three at various ofher properties..
HUD Shelter Plus Care - Section 8
PAHC entered into an agreement with the County Housing Authority for up to 3 units of Project
Based Section 8 rental assistance at the Barker Hotel SRO to homeless persons participating in the
Shelter Plus Care program, and up to 6 units at the new Alma Place SRO. This assistance is only
available to new residents with special needs. During the fiscal year, two persons lived at the
Barker under the program, one for three and a half months, the other for less than one month. One
person was placed at the Alma Place SRO in May, 1998 and continues to reside there.
Three additional Section 8 slots were designated to the Barker in July, 1998, and two additional
tenants moved in under the program. The main obstacle in the program is getting ai~plicants to the
properties when openings are available. This and other issues will be the subject of discussion
with non-profit social service providers in order, to expedite the process, and fully utilize this
housing assistance resource.
HUD Tenant Based Section 8 Rental Assistance
The Housing Authority of Santa Clara County administers the Section 8 Program for the City of
Palo Alto. In fiscal year 1996/97, the Housing Authority issued 41 individual Section 8
certificates or vouchers to.households in Palo Alto. This is an increase of more than 40 percent
over the 29 certificates and vouchers issued the prior year. Since the number of individual
vouchers and certificates used in Palo Alto has been declining over the past few years, this number
is surprising. The increase in numbers was discussed with Santa Clara County Housing Authority
staff; and it was learned that a new tracking/computer system had been installed during the past
year. This might account for the increase in the numbers.
The owners of the 156 unit Palo Alto Gardens Apartments did not renew their project-based
Section 8 Rental Assistance Contract with HUD. In July of 1998, eligible tenants will receive
special Section 8 vouchers directly from HUD. These vouchers will have lower rents for a one
year period, and then revert to regular Section 8 rental vouchers. At that time, the tenant’s share of
Affordable Housing
the rent may increase dramatically. This will be a hardship for the majority of the tenants who are
elderly and on fixed incomes. Tenants may take their vouchers and move, but it is difficult to find
rental property owners who will accept Section 8 vouchers.
There are no units of public housing in Palo Alto. As of 7/01/98, the 41 units were distributed as
follows:
The Housing Authority of the County of Santa Clara
Tenant Based Section 8 Vouchers and Certificates Issued
0
bedrooms
1
bedroom
2O
Certificate/Voucher Size
2 3 4
bedrooms bedrooms bedrooms
11 2 0
5 TOTAL
bedrooms
0 41
White/Cauc.
34
Black
4
Distribution by Racial Group
Native Asian/Pacific
American Islande.r
0 3
TOTAL
41
Hispanic
10
Distribution by Ethnicity
Non-Hispanic
31
TOTAL
41
Low
Distribution by Income
Very Low
41
TOTAL
41
Elderly
19
Disabled
.11
Distribution by Status
Families
11
TOTAL
41
Male
15
Distribution by Head of Household
Female
26
TOTAL
41
B. Accomplishments
Affordable Housing
1. Programmatic Accomplishments and Leveraging of Other Resources
The City of Palo Alto, by itself and in conjunction with nonprofit housing developers, undertook
the following activities to meet its’ priorities for affordable housing development and assistance as
stated in the FY 97-98 Annual Plan of the Consolidated Plan. Although all housing activities are
multi-year in nature, one major new housing project was completed and occupied in 1997/98, and
another completed just after the close of the fiscal year. Approximately 140 new units were added
to the City’s affordable housing stock, and more than 60 units preserved as affordable housing
during this period.
a. New Construction Rental Housing
Page Mill Court Apartments - Permanent Housing for Persons with Special Needs: 24-
Units of New Construction o 2700 Ash Street, Palo Alto.
Page Mill Court is a new residential development for very low-income adults with
developmental disabilities who are capable of living in their own apartment with
assistance. The project, sponsored by Mid-Peninsula Housing Coalition (MPHC), and
Adult Independence Development Center, is designed to provide a variety of supportive
living situations. The complex consists of 24 one- and two-bedroom units, along with a
community building. It is located at 2700 Ash Street and Page Mill Road near the
California Avenue business district. When completed, the complex is expected to house 31
residents.
On July 17, 1997, HUD issued the Firm Commitment in the amount of $2,556,600 which
was a 31% increase over the original fund reservation of $1,944,600. Building permits
were issued on July 30, 1997, the HUD closing occurred on July 31, 1997 and the ground
breaking ceremony was held on August 7, 1997. Most of fiscal 1997/98 was spent on
actual construction. Although completion was originally scheduled for May, 1998, an
extremely wet winter delayed the completion until after the close of the fiscal year.
Between October, 1997 and February, 1998, MPHC implemented a marketing plan,
conducted outreach activities to the targeted population, screened applications, and
concluded the resident selection process.
Leveraging:. The City 0fPalo Alto’s investment in this project is $936,400 ($505,400 in
City Housing Reserve funds; $431,000 in CDBG funds) out of a total development budget
of $3.86 million, or 24% of the total budget. The HUD Section 811 program funded 67%
of total development costs plus the annual operating subsidies throflgh the Section 8 rental
assistance. The remaining 10% of dev.elopment costs was contributed by the other
jurisdictions since the project will serve the entire area of northern Santa Clara County.
10
Affordable Housing
Contributions were made by the County of Santa Clara, the Cities of Sunnyvale and Los
Altos, and the Town of Los Altos Hills.
The permanent sources of funding andthe percentage share of each source for this project
are summarized below:
PAGE MILL COURT FUNDING SOURCES
HUD Section 811 Capital Advance 67%$2,556,600.00
Palo Alto CDBG 11%$431.00
Palo Alto Housing Reserve 13%$505,400~00
Sunnyvale CDBG 1%$50,000.00
Los Altos CDBG 1%$50,000.00
Los Altos Hills CDBG 2%$75,000.00
Urban County of Santa Clara CDBG 5%$188,000.00
Private Grants --$4,000.00
Total 100%$3,860,000.00
Alma Place SRO Apartments -Housing for Very Low & Extremely Low Income Renters:
107-Units of New Construction - 753 Alma Street, Palo Alto.
Alma Place, 107 new units of Single Room Occupancy (SRO) housing in the downtown
area was completed in February, 1998. The developer is the local nonprofit, Pal0 Alto
Housing Corporation (PAHC). The target population is single, working adults with
incomes below 35% of the area median income. PAHC offices were also moved onto the
first floor of the new building, and are now accessible to wheelchair users. 106 units are
available for rental, with one unitreserved for the resident manager. Rents range from
$330 to $490 per month depending on size and location within the complex. All units are
accessible and adaptable for persons with disabilities. 40 of the units were rented to
tenants whose incomes are below 30% of the area median income, and 66 of the units are
rented to tenants whose incomes are between 31% and 50% of median income. As of June
30, 1998, 124 persons resided in Alma Place.
Leveraging: The total permanent City investment in this project is expected to be in the
range of $2.2 million to $2.3 million, or about 27% of the development budget of $8.288
million, depending on.actual, audited costs. A total of $2.650 million in funding was
provided during the predevelopment and construction phases ofthe project development,
11
Affordable Housing
some of which was repaid by the AHP loan and the Varian funds. The City’s investment
leveraged over $6.0 million from private sources including a private bank loan and AHP
loan, the housing mitigation payment from Varian Associates, the tax credit equity
investors payments and developer equity. More important, however, was the early
commitment of City funds for the up-front, high-risk phases of the project for feasibility
studies, site option payments, environmental testing, zoning entitlements and financing
applications, which enabled PAHC to secure the other subsidies and investments
The permanent sources of funding and the percentage share of each source for this project
are summarized below:
ALMA PLACE FUNDING SOURCES
California Federal Bank - 15-year amortized loan 4.7%$390,500
California Federal Bank - AHP Loan 4.2%$346,159
Varian Associates - Private grant for construction loan costs 1.7%$140,000
PAHC Alma Place - developer equity 0.6%$52,028
Edison Housing - State & Federal Low Income Housing Tax 62.2%$5,150,819
Credits
City of Palo Alto.- Local Housing Trust Fund (long term loan)26.6%$2,208,840
Total 100%$8,288,346
b. Preservation of Existing Affordable Rental Hous!ng
Sheridan Apartments - Subsidized Section 8 units for the elderly and persons with
disabilities in dan~er of converting to market rate units: (57 existing units at 360 Sheridan
Avenue, Palo Alto):
This 57 unit, one-bedroom apartment complex is located between Birch and Ash Streets, in
the California Avenue business district. The three story building was constructed in 1979,
and was designed for independent .living by the elderly and persons with. disabilities. The "
developers utilized an FHA-insured loan, and received a 20-year commitment of federal
Section 8 rental assistance for all 57 units. The land was originally purchased from the
City at.market value, but with deed restrictions intended to ensure that the project remained
under the Section 8 program as long as subsidies were available. With the current Section
8 contract set to expire in April 1999, the owners decided to sell. The PAHC attempted to
negotiate a purchase agreement in order to preserve the units as affordable housing, but in
October, 1997, the owners accepted an offer .from an investor buyer for $5.8 million. The
12
Affordable Housing
investor later withdrew from the deal when the implications of the City deed restrictions
became clear.
On January 13, 1998, PAHC executed an agreement with the owners of the Sheridan
Apartments on the principal terms of an acquisition, including a $5.1 million purchase
price. On February 2, 1998 the City Council approved an agreement with PAHC for pre-
development activities related to the completion of due diligence activities needed to.
evaluate the property and prepare financing applications. Funding for the pre-development
agr.eement, in the amount of $145,500, was appropriated from the CDBG Housing
Development Fund. PAHC intends to preserve the Sheridan in its existing use as Section 8
assisted housing for very-low income seniors and other persons with disabilities. In May,
1998 the City Council committed a total of $2.5 million in CDBG and City Residential
Housing In-Lieu funds to the project, and PAHC submitted a tax credit application. In
late August, 1998, PAHC was informed that they had been awarded both state and federal
tax credits. It is expected that the acquisition will be completed by the end of 1998, and
the necessary rehabilitation completed in 1999.
Veterans Workshop Group Home - Existing Transitional Housing for Persons with
Disabilities: Shared Transitional Housing for Veterans with Disabilities at 442 Margarita
Avenue, Palo Alto.
In October, 1997, Veterans Workshop acquired a 100% interest in an existing group home
for low income veterans which they had previously owned in conjunction with another
nonprofit Sponsor, Veterans Task Force (VTF). VTF wanted to sell their interest in the
single family residence in Palo Alto in order to pursue other service oriented programs for
veterans. Extremely low rents, and ongoing supportive services did not provide sufficient
cash flow for additional debt on the property. The City provided $51,000 in CDBG funds
to Veterans Workshop to purchase VTF’s share of the property in order to retain its use as
affordable transitional housing for seven low income, disabled veterans.
Leveraging: A low interest state loan was utilized in the original purchase of the house,
but no leveraging was used in. the 1997 purchase of VTF’s interest in the property.
c. Acquisition and Rehabilitation of Existing Rental Housin~
Ventura Avenue Apartments - 12 two and three bedroom units at 290 - 310 Ventura
Avenue, Palo Alto.
In satisfaction of the City’s Below Market Rate Program, seven units of affordable rental
housing were provided by the developer of the 651 Hamilton project, a luxury senior
condominium development where it was not practical to provide affordable units On site.
The developer provided the seven units by selling a twelve unit building to the Palo Alto
13
Affordable Housing
Housing Corporation for 5/12 of the purcha.s~ and rehabilitation costs. PAHC rented seven
of the units to very low income households. Market rents on the remaining five units
covers the debt service on the entire building, and no additional City housing money was
needed to complete the transaction. Over time, and as the project can afford, additional
units in the building will be will be rented to lower income households.
Lytton Gardens I & II - 318 units of Subsidized senior housing at 656 Lytton Avenue and
649 University Avenue in Palo Alto.
Rehabilitation in the amount of $56,518 was completed on the common areas of the senior
residential facility. Power-assist door hardware was installed on 22 interior/exterior doors
to provide ease of access and exit to the elderly residents. The doors were difficult to
manage, due to the level of strength required, for the frail elderly, andthose in walkers and
wheelchairs. Additionally, elevator smoke doors were added for fire protection and so that
non-ambulatory ensiors could safely reside on the upper floors.
d. Below Market Rate (BMR) Ownership & Rental Programs
BMR Home Ownership Units: This is a local, inclusionary housing program in which
units are constructed and donated by housing developers (usually 10% of the total units in
proje’cts of 10 or more units). The units are sold at affordable prices with 59-year deed
restrictions. When an owner decides to sell the unit, they must be resold to other eligible
buyers from a waiting list at an affordable price with a new 59-year deed restriction. There
are currently a total of 144 units in the ownership program inventory. No new BMR units
were added to the program during the fiscal year, but there are several projects under
construction which will provide additional units in the next fiscal year. During the period
of this report, five re-sale units were purchased by income eligible buyers. One unit was
purchased by a very low income buyer (income of less than 50% of median), three units
were purchased by low income buyers (incomes of between 50% and 62% of median), and
one unit was purchased by a moderate income buyer (income of 63% to 100% of median).
BMR Rental Units: There are also 33 BMR rental units in three separate multi-family
rental developments. These units are rented at below market rents to eligible low and
moderate income households. The specific income eligibility varies from project to
project. Five new BMR rental units will be added to the program inventory in FY 1998-99
that are presently under construction. They are part of a 46-unit Los Robles Apartments
project.
e. Rehabilitation of Existing, Owner-Occupied Single Family Homes
The City may provide CDBG funds to very low income owners in cases where there is an urgent
need for City financial assistance due to serious health or safety problems. During the year, there
14
Affordable Housing
were no applications for this program. The Senior Home Repair Program, operated by the Senior
Coordinating Council, provided 87 minor home repair jobs to low income older adult
homeowners. $8,282 in CDBG funds were utilized for subsidizing the cost of painting, plumbing,
electrical repairs, accessibility improvements, and other minor repairs to help seniors remain in
their own homes as long as possible..
2. Persons and Households Assisted with Housing
The attached Table 1A shows 120 households assisted with rental housing during the period
covered by this report. The table counts only persons or households newly occupying housing,
receiving rental subsidies for the first time, or living in newly rehabilitated or constructed housing
units regardless of when the financing or subsidies were awarded. Units receiving multiple
subsidies are only counted once. The projects reported in Table 1A include Ventura Avenue
Apartments (7 units), Alma Place SRO (106 units), and Margarita Group Home (7 units).
Not included are units which are vacant or in the process of renting up, or units under construction
or which are in the pre-development stages. Also not included are units assisted with Shelter Plus
Care or counseling services, information and referral or minor home repair assistance, neither does
Table 1A report homeless persons or households who receive overnight shelter. These activities
are discussed in Part III of this report.
15
Affordable Housing
Table 1A
Summary of Housing Accomplishments
Name of Grantee: City of Palo Alto Statei CA .
Prinritv No.~_H ~t~.nnrv J
Renters
0 - 30% of Median Family Income (MFI) *40
31 - 50% of MFI 72
51 - 80% of MFI
Total 112
Owners
0-30% of MFI
31 - 50% of MFI
51 - 80% of MFI
Total
Homeless * *
Individuals 8
Families
Total 8~
Non-Homeless Special Needs
Total
Total Housing 120
Total 215 Housin9 120
As annually adjusted by HUD
¯ *Homeless families and individuals assisted with transitional and permanent housing
Pro~iram Year: 1997/98
Total Housing
Hispanic 21
Non-Hispanic
White 82
Black 4
Native American 1
Asian/Pacific 12
Other
Total Racial/Ethnic 120
16
Affordable Housing
C. Assessment of Performance
1. Evaluation of Progress in Meeting Annual (1997-98) Affordable Housing Goals - 25
Households To Be Assisted Per Year Over Five.Years
The City’s Consolidated Plan goal is to assist an average of 25 units per year over the five year
period of the 1995-2000 Consolidated Plan. During fiscal 1997/98, 120 units were assisted, far
surpassing the annual production goal of the Consolidated Plan.
Housing activities which were not completed as planned for 1997/98 include the Arastradero Park
Apartment Water Rehabilitation System, the Emerson North Apartment rehabilitation project,
Alliance for Community Care Waverley St. House feasibility study, and the Stevenson House
roofing project. Agreements were finalized on the Arastradero Park and Alliance for Community
Care projects, and work has commenced. It is expected that all of the projects can be completed in
the 1998/99 program year.
2. Evaluation of Progress in Meeting Overall Goals for the Period 1995-2000
As discussed above under the evaluation of progress towards the annual goal, the City has
exceeded the goal of 125 very low and low income rental units over the five year period. The 120
units assisted this year, along with the 6 units assisted in previous years, brings the total assisted to
126 units. This figure exceeds the annual average production goal and the 5-year housing goal.
Based on projects already completed, under construction, or under contract, it is now estimated
that the housing production total for the five year period will be 200 units (130 units of new
construction; 70 acquired and rehabilitated rental units).
The City’s greatest need is affordable housing, and the majority of CDBG and local funds have
been targeted and expended to preserve or increase the affordable housing stock. All of the CDBG
funds have been used to carry out activities which benefit low and moderate income persons.
3. Barriers to Fulfilling Housing Strategies
There are many barriers that Palo Alto faces in meeting its affordable housing strategies, most of
which are beyond the control of the City. Some barriers are the result of decisions and priorities
set by the federal or State government that have limited housing funding, made funding difficult to
obtain for activities within Palo Alto or eliminated key programs of local importance. Other
barriers result from Palo Alto’s distinction of having one of the most expensive housing markets in
the country coupled with a lack of land suitable for new housing.
Some federal housing resources are not readily available to the City of Palo Alto. Problems
include lack of Congressional appropriations for certain programs, limitations in federal
regulations which make some programs very.difficult to use in Palo Alto, lack of appropriate and
available housing sites and a lack of interest or capability on the part of nonprofits in pursuing
some federal programs. The principal barriers to fulfilling the City’s affordable housing goals and
objectives are discussed below.
17
Affordable Housing.
a. Barriers Related to Federal or State Funding Levels and Priorities:
Changes by the State’s Tax Credit Allocation Committee in the method of determining
awards for the c.ompetitive federal and State housing tax credits which has made it much
more difficult to obtain tax credit awards. A new lottery tie-breaker system, instituted in
1997, makes the process very uncertain, especially £or family projects where there is the
highest demand for the tax credits. There are also now very restrictive caps which limit the
total amount of tax credit awards within certain counties including Santa Clara County.
There is far greater demand in Santa Clara County for the competitive tax credits than the
amount allowed under the allocation cap.
Problems of utilizing federal housing programs, such as Section 202 and 811, in areas with
high construction and land costs (i. e. limitations on the amount of HUD subsidies, which
then results in the need for large (about one-third or more of total development budget
including land cost) local funding contributions to make projects feasible. The Page Mill
Court Section 811 project is an example of this barrier. HUD funds represented only about
two-thirds of the project’s total development costs.
Limited amount of federal CDBG funds that the City receives on an entitlement basis from
HUD, and the barrier of not being qualified for HOME funds, on an entitlement basis.
Changes approved by Congress in March, 1996, in the HUD preservation program
(LIHPRHA - Low Income Housing Preservation and Rehabilitation Homeownership Act,
also known as Title VI)which permitted owners of certain HUD financed projects (such ag
Arastradero Park and Palo Alto Gardens)to pre-pay their HUD insured mortgages and opt-
out of the HUD low income use restrictions. Key 1996 changes in the law included the
loss of the right that nonprofits previously had to priority purchase of these projects, and
elimination of funding for nonprofit purchases.
The lack of State or federal funding for the preservation of/older, HUD-subsidized and
Section 8 assisted rental housing by acquisition by nonprofit housing organizations. $15
million in new State funding for this purpose passed the State legislature, but was vetoed
by the Governor.
Reduction in the term of project-based Section 8 contract renewals from the 20 year.
contracts of the 1970’s to the one year renewals presently authorized by Congress.
Elimination of new or incremental increases in HUD’s budget for the Section 8 tenant-
based rental assistance program (Section 8 certificates and vouchers adrrfinistered by local
housing authorities) since FY 1994.
18
b. Barriers Related to Local Housing Market Conditions:
Affordable HouSing
Limited vacant land suitable for housing construction and strong competition from
developers of market-rate housing and commercial projects for any available site.
Extremely high prices for sites suitable for new housing and for existing residential
properties suitable for acquisition and rehabilitation.
Limited local funding sources for affordable housing.
Extremely low rental vacancy rate (less than 1%) and high housing demand means that
even the most modest existing rental units are usually occupied by households with
incomes above the HUD low income limit which means that rehabilitation programs or
acquisition and rehabilitation programs must relocate existing tenants in order to utilize
federal funds.
¯Low vacancy rates and high rental rates have made it difficult for persons to find housing
in Palo Alto using tenant-based Section 8 Certificates and Vouchers.
Section 8 Fair Market Rents (FMRs) are so far below the actual market rents that
households receiving Section 8 assistance cannot locate housing within the time allowed
and must either leave the bay area or turn in their Section 8 assistance unused.
c. Discussion of Most Serious Barriers:
The most serious barrier is the lack of dependable access to HOME funds. The fact that the City
does not qualify as an entitlement jurisdiction for HOME funds is a significant barrier to meeting
the City’s housing objectives. HOME is the principal federal housing subsidy program directly
available to local governments. The City can only obtain funding on a competitive basis from the
State of California’s statewide allocation. The State holds only one competition round each year.
Palo Alto is at a disadvantage in the State’s process because of the percentage Of ranking points
assigned to rural applicants and those from jurisdictions with high poverty rates. The maxifflum
award from the State is $1 million per applicant. While the City and PAHC successfully obtained,
and implemented, a major acquisition and rehabilitation of the 26-unit Barker Hotel SRO with a
FY 1992 HOME grant from the State, the City has not been able to access the State’s HOME
funds since that time. The City applied for a FY 1995 HOME grant of $1 million for the Alma
Place SRO and the Page Mill Court project, but the application was not funded because both
projects scored low on the readiness criteria.
There are many obstacles that have prevented the City from obtaining HOME funds, which has, in
-turn, affected progress towards our housing objectives. The primary obstacles are listed below:
Extremely high demand and competition for State HOME funds requires that
applications be near perfect to receive funding.
19
Affordable Housing
The State’s rating criteria favors rural and Community Housing Development
Organizations (CHDO) applicants, and jurisdictions with high rates of poverty. Since Palo
Alto does not fit these priorities, the City is at a great disadvantage in the competition.
There are no qualified CHDOs operating in the Palo Alto area, and the local nonprofit
housing developers are not interested in creating CHDOs and pursuing HOME funds
directly.
The State’s once per year application process is too inflexible for use with the kind of
major rental housing project that are usually done in Palo Alto. It is unlikely that project
timing and readiness will coincide with the State’s application schedule in a manner that
will earn maximum points.
Another serious barrier is the expiration of project-based Section 8 contracts & insufficient
funding from the Federal Government for contract renewals. Some of Palo Alto’s largest
subsidized housing developments have project-based Section 8 rental assistance contracts which
have expired or will expire in the next few years. Most of these projects are owned and operated
by nonprofit housing organizations who desire to continue the low income use under their HUD
insured financing and regulatory agreements. Renewal of the Section 8 rental assistance contracts
for all these projects is critical in order to preserve affordable rents for the. extremely low income
tenants who occupy these units. Many of these projects serve elderly and disabled persons who
would find it very difficult to move and who would be unlikely to be able to secure comparable
housing even if they were provided with a Section 8 voucher. While legislation passed by
Congress in 1997, expresses a policy commitment to continued funding of elderly units, it is not at
all clear if funding will actually continue to be provided in future years.
There is continued uncertainty regarding the future of Section 8 Assistance & owner actions under
1997 "’Mark-to-Market" Legislation: Congress passed the Multifamily Assisted Housing Reform
and Affordability Act (MAHRAA) in October, 1997. Regulations for this new law are being
formulated and new policies will only ~begin to be implemented fully in FY 1998. it is still unclear
/ .how this new law will affect properties in Palo Alto with Section 8 project-based assistance.
d. Federally Subsidized Rental Housing At,Risk of Conversion to Market-Rate:
Palo Alto Gardens Apartments: The owners of the 156-unit Palo Alto Gardens project, a
Goldrich and Kest limited partnership, did not renew their Project based Section 8 contract
with HUD, and in June, 1998 all of the eligible tenants received Section 8 vouchers with
special rents for one year only. In June, 1999 the vouchers will return to the regular
Section 8 rents, and thus the tenant’s share of the rent will increase greatly. The voucher
solution has serious problems for these extremely low income tenants in highrrent markets
such as Palo Alto’s. While tenants may take their Section 8 voucher and move, it is
difficult to find rental property owners who will accept Section 8 rents when they can
easily rent on the open market for $200 to $300 more.
2O
Affordable Housing
Mid-Peninsula Housing Coalition (MPHC) has expressedinterest in pursuing a purchase of
the property, and a group of Palo Alto Gardens residents have met with the Mayor and City
management to discuss how the City could assist MPHC in the purchase. However, as
noted in this report, there are no specific federal or State subsidy funds for housing
preservation. The low income housing tax credit program is the only resource available
and, with the real estate values in the Bay Area, substantial additional subsidy funds are
needed to make this type of acquisition feasible. Rough estimates of the amount of gap
funds needed to acquire Palo Alto Gardens could approach $2 million in addition to funds
from the housing tax credit program and a first mortgage funded by tax-exempt bonds.
4. Actions to Address Obstacles to Maintain Affordable Housing, or Eliminate Barriers to
Affordable Housing
Creation of Countywide Housing Trust Fund
Palo Alto has been a participant in the efforts of the Santa Clara County Housing and Homeless
Committee, the Silicon Valley Manufacturing Group and the County of Santa Clara in an initiative
to establish a countywide Housing Trust Fund. Staff participated in the feasibility studies on the
fund and the City is represented on the newly appointed steering committee which will govern the
Fund. A delegation of business and housing leaders recently met with Secretary Cuomo in
Washington to discuss how HUD could assist in this effort. Palo Alto will work with County staff
to explore the possibility of applying for a special loan of HUD funds which would be used to help
capitalize the Trust Fund. A recent foundation grant will allow the funding raising campaign to
proceed in earnest in 1998-99.
5. Adjustments or Improvements to Affordable Housing Strategies
No adjustments to the affordable housing strategies have been identified at thi~ time.
a. Public Policies
On July 20, 1998; the City.Council approved and adopted the I998-2010 Comprehensive Plan
which included a new Housing Element in compliance ~’ith State law. As part of that effort, the
City’s housing related goals, policies and programs have been reevaluated. The revised Plan
places an emphasis on creating new housing opportunities by use of tools such as minimum
densities, designating higher densities near transit and services, mixed use projects and
strengthening other zoning incentives. The revised Plan also continues the former plan’s emphasis
on, and protections for, existing rental units. The next step is to adopt corresponding changes in
the City’s zoning ordinance to implement the new policies and programs.
21
PART III~
COMMUNITY DEVELOPMENT
22
COMMUNITY DEVELOPMENT
A. Resources Available
1. City of Palo Alto Non-Housing Community Development Resources
a. Federal Funds
The primary federal resource in the City of Palo Alto for non-housing community development
activity is the Community Development Block Grant (CDBG) Program. The City of Palo Alto is
an entitlement jurisdiction under the CDBG regulations and receives annual funding on a formula
basis. The purpose of the CDBG program is to developviable urban communities by providing
decent housing and a suitable living environment, and by expanding economic opportunities,
principally for low-and moderate-income persons. The City receives no other direct federal
fun.ding for community development projects. As explained earlier in this report, the amount of
CDBG funds available for allocation in 1997/98 was $1,040,000. This includes grant funds of
$782,000, 1997/98 anticipated program income of $70,000, $152,500 in program income from
prior years, and $35,500 in reallocated funds. For 1997/98 the City allocated a total of $340,800,
or 33 percent of its CDBG funds to non-housing activities, including public services, fair housing,
and CDBG program administration.
b. Local Funds - Human Service Resource Allocation Process
The City of Palo Alto provided $1,024,888 in General Funds to address priority human service
needs in the community..The funds were allocated through the Human Service Resource
Allocation Process (HSRAP), by the City’s Office of Human Services in the Community Service
Department. The projects funded addressed community needs in the following categories:
nutrition, child care, youth/teens, seniors, homeless/low income, disability, information & referral,
women; and family support.
c. Leverag!ng
All of the local non-profit agencies leverage CDBG and HSRAP funding with money from local
businesses, corporal?ions, foundations, and individual donors.
B. Accomplishments
1. Summary of Accomplishments with CDBG Funds
The attached financial expenditure report summarizes the accomplishments of each activity funded
with Community Development Block Grant funds in 1997/98. The report also specifies the
number and ethnicity of all persons who benefitted from each activity. Following is a brief recap
of the accomplishments of the public service and other community development activities which
were completed during the 1997/98 fiscal year.
$36,100 to Community Association for Rehabilitation (CAR) for Betty Wright Swim
Center improvements: The therapeutic warm water swim center was upgraded with an
23
Community Development
accessible changing area and restroom, and a new audible/strobe fire alarm system which
meets ADA standards. Agency serves children and adults with disabilities.
$56,518 to Lytton Gardens I and II for accessibility improvements to the common areas of
the senior residential facility were completed. Automatic electronic doors were added for
ease of access for frail elderly and disabled residents. Smoke doors were also added to the
upper floor elevators for fire safety purposes.
$167,201 to Ventura Community Center for general improvements to the community
facility in the lower income Ventura neighborhood. Improvements included roofing,
parking lot resurfacing, electrical upgrades, restroom accessibility andother general
rehabilitation.
$35,000 to the Palo Alto Housing Corporation. Provided housing information and referral
to 3,224 housing seekers, updated, published and distributed an affordable housing
directory, and provided 448 counseling sessions for 35 low income Barker Hotel tenants
(many of whom were previously homeless).
$11,000 to Emergency Housing Consortium. Provided 46 unduplicated homeless persons
with supportive services and 2,156 shelter nights in emergency and transitional housing.
$66,900 to Urban Ministry_ of Palo Alto. Provided 20,486 sacks of groceries and 23,964
prepared meals to homeless and low income individuals. The drop-in-center served
approximately 118 persons per day, a total of 30,570 during the course of the fiscal year.
The rotating church shelter provided 142 unduplicated homeless individuals with
emergency shelter at local churches.
$13,400 to Catholic Charities. Provided 141 site visits to Palo Alto long-term care
facilities. 719 unduplicated seniors were represented or assisted for various patient rights
issues. 116 residents complaint cases (including allegations of elder abuse) were logged,
investigated, and resolved.
$6.000 to Outreach and Escort. Provided 2,3 !9 subsidized paratransit rides for 99 disabled
very low income residents.
$11,000 to Senior Coordinating Council’s Senior Home Repair Program. C~mpleted 87
subsidized home repair jobs for 57 low income senior homeowners.
$17.500 to Mid-Peninsula Citizens for Fair Housing. Opened and investigated 21 cases
involving allegations of housing discrimination.
The chart on the following pages reflects the accom)lishments and beneficiaries served with
1997/98 CDBG expenditUres:
Community Development
Table 3-1
Summary of Community Development Accomplishments
for Public Facilities and Improvements
Name of Grantee: Paio Alto State: CA Program Year: 1997/98
Priority Need Category Actual Number of Actual Number of
¯ Proiects Assisted Projects Completed
Public Facilities
Senior Centers
Handicapped Centers
Homeless Centers 1 1
Youth Centers
Neighborhood Facilities 1 1
Child Care Centers
Parks and/or Recreation Facilities
Health Facilities
Parking Facilities
Abused/Neglect Facili:~ies
AIDS Facilities
Other Public Facilities
Public Improvements
Solid Waste Improvements
Flood Drain Improvements
Water Improvements
Street Improvements
Sidewalk Improvements
Sewer Improvements
Asbestos Removal
Other Infrastructure Improvements
Other
Other
25
Community Development
Priority Need Cate~lory Ii Actual Number of Persons Served
Public Services
Senior Services 806
Handicapped Services
Youth Services
Transportation Services 99
Substance Abuse Services
Employment Training
Crime Awareness
Fair Housing Counseling 21
Tenant/Landlord Counseling 3224
Child Care Services
Health Services
Other Public Services (homeless assistance)237~
Accessibility Needs
Other Community Development
Energy Efficiency Improvements
Lead Based Paint/Hazards
Code Enforcement
Other
Note: Numbers reflect persons assisted with CDBG funds o(aly
compliance with the Americans with Disabilities Act (ADA) of 1990, this document may be provided in other accessible formats. For information contact:
Fred Herman, ADA Director, City of Palo Alto
250.Hamilton Avenue, 5th Floor * Palo Alto, CA 94301
415/329-2550 (voice)
###
26
Community Development
2. Summary of Accomplishments with Palo Alto General Fund Money Allocated through
the Human Service Resource Allocation Process (HSRAP)
The City of Palo Alto Human Service Resource Allocation Process (HSRAP) provided $1,024,888
in General Fund dollars to the following agencies for services to lower income elderly, disabled or
special needs residents of Palo Alto during the 1997/98 fiscal year.
Adolescent Counseling Services $65,178 for on-campus counseling program
American Red Cross $22,098 for homeless prevention services and single parent support
programs ¯
Community Association for Rehabilitation $28,736 for program support services for
children with disabilities and their families
La Comida de California $6,307 for senior nutrition program
Mayview Community Health Center $ 8,853 for health care services for low income,
homeless, and uninsured persons
YWCA Rape Crisis Center $10,260 for the rape crisis center and the teen assault
prevention project
Alliance for Community Care $6,975 for casework counseling of mentally ill homeless
Palo Alto Community Child Care $374,338 for subsidized child care for income eligible
residents
Peninsula Area Information & Referral Services $54,233 for tenant/landlord mediation
services
Peninsula Center for the Blind & Visually Impaired $9,803 for rehabilitation services for
residents with visual disabilities
Second Harvest Food Bank $6,284 for Operation Brown Bag (groceries for income
eligible seniors)
Senior Coordinating Council $381,662 for services and programs for seniors
Social Advocates for Youth $6,895 for the CASA Say Teen Shelter and the teen "Safe
Place" Program /
Support Network for Battered Women $23,295 for shelter, counseling and other services
for battered women and their children
Mid Peninsula Access Corp. $5,000 to provide informational Spanish language videotaped
forums.
YMCA of the Mid-PeninsulaS7,894 for a swimming program for disadvantaged children.
Youth Community Services $12,077 for a program teaching leadership skills and
community service to area middle and high school students.
In addition to the General Fund and CDBG money described above, the City also provided
$25,000 to the new Clara Mateo Homeless Shelter for first year start-up and operational costs.
This donation was made from a portion of a gift to the City to be used for homeless services on
behalf of a local family.
27
Community Development
3. Actions Taken to Affirmatively Further Fair Housing
The City contracts with Mid-Peninsula Citizens for Fair Housing (MCFH) to promote equal
opportunity in housing for all persons protected by federal and State fair housing laws.
Services include information and referral, community outreach and education, discrimination
complaint checking and investigation, legal referrals and assistance in resolving complaints. The
City also contracted with Peninsula Area Information and Referral Service (PAAIRS) for
tenant/landlord information, referral and mediation services. Unfortunately, by the middle of the
fiscal year, PAAIRS was unable to complete their contract commitment. The City subsequently
contracted with Project Sentinel for mediation and tenant/landlord services.
Palo Alto’s Analysis of Impediments to Fair Housing Choice conducted in February, 1996
indicated a lack of affordable housing options for persons of low and moderate income as an
impediment. Housing discrimination was also identified, with cases based on familial status the
most often reported. To further address these issues, the City has:
Contracted with MCFH to complete a video regarding familial status discrimination in
rental housing. The video was completed in September, 1998 and used as an educational
outreach tool. It has been aired on the local cable access channel three times, and used in
conjunction with other educational presentations.
Sponsored a Landlord Workshop for owners of real property on March 21, 1998. The
workshop focused on Palo Alto’s one year lease ordinance, the City’s mediation program
and other housing issues.
Targeted a majority of its CDBG and local housing funds to increasing/preserving the
supply of housing affordable to persons with lower incomes and/or special needs (Alma
Place, Page Mill Court, Margarita House, Ventura Apartments, Sheridan Apartments).
MCFH conducted, and collaborated on a number of community forums and presentations
regarding discrimination issues, as summarized below:
Participated in Northem Califomia Fair Housing Coalition Meetings
Sponsored an attorneys’ dinner to exchange information on fair housing cases and
legislative issues
Attended Tri-County Apartment Association Trade Show and distributed brochures
Collaborated with Project Sentinel, Mental Health Advocacy Project and Asian
Law Alliance in organizing an accessibility workshop at Stanford University
Presented information emphasizing the connections between fair housing agencies
and police departments to the Bay Area Hate Crime Investigators Association.
Particip,ated in a community television program dedicatedto "The Housing Crisis"
28
Community Development
Participated in a workshop sponsored by Kaleidoscope of Cultures regarding
housing discrimination.
Participated in a panel discussion at San Jose’s Housing Forum on homelessness
prevention and the lack of housing in the Bay Area.
During fiscal year 1997/98, MCFH investigated 21 cases of reported discrimination. Six of the
cases (29%) related to familial status (presence of a minor child); five cases (24%) to a physical
disability; four cases (19%) to race, three cases (14%) to mental disability; two cases (9%) to
national origin; and one case (5%) to age. Of the cases received, 15 (71%) had a positive
outcome: successful conciliation, referred to attorney, or counseled/assisted; two cases (10%) had
negative outcomes: unable to test, unsuccessful conciliation; and four cases (19%) are pending
The City has an affirmative marketing policy and procedures which apply to housing funded with
federal assistance through the City. Mid Peninsula Housing Coalition conducted an affirmative
marketing campaign and outreach activities for initial tenant selection for Page Mill Court
Apartments for developmentally disabled adults.
4. Actions Taken to Address Needs of Homeless Persons
a. The Santa Clara County Collaborative on Housing and Homelessness
City staff continued to attend Santa Clara County Homeless Collaborative’s Steering Committee
meetings. The Collaborative is a partnership of representatives of the County, key cities, service
and shelter providers, affordable housing providers and other nonprofit groups throughout the
Santa Clara Valley. The mission of the Collaborative is to position the region to attract new and
existing federal funds for housing and homelessness and to improve the effective and efficient use
of these funds. A new county-wide homeless survey is being Organized for completion in the
1998/99 program year..
City staff assisted three local non-profit agencies in a collaborative HUD McKinney Homeless
grant application. The application, from Mountain View Community Services, Urban Ministry of
Palo Alto, and Clara-Mateo Shelter, requests money to hire ~dditional staff (casework counselors,
mental health workers, and employment counselors), maintain additional transitional housing beds
and other activities to aid the area’s homeless population.
b. Emergency Urban Ministry_ Drop-In Center Operation.
City staff assisted the Urban Ministry of Palo Alto (UMPA) in securing a temporary location for
their morning drop-in center activities after severe storm and flooding occurred in Palo Alto in the
early part of February, 1998. Flooding which caused a sewerbackup and bacterial contamination
forced the closure of the Red Cross facility and displaced UMPA services. Due to the vital nature
of the services provided by Urban Ministry to their clients, especially in times of such critical
weather conditions, the City Council passed an emergency ordinance on February 23, 1998 to
assist Urban Ministry. The ordinance allowed UMPA to provide services in a specified location in
the parking lot of the Cal Train Depot for a period of 120 days. Staff facilitated an agreement with
29
Community Development
Valley Transportation Agency, Urban Ministry, and Stanford University, to allow temporary
occupancy of the site. The City also provided $3,722. in additional General Fund money for
emergency expenses. UMPA was able to move back into their location at the Red Cross on June
15, 1998.
c. Housing and Shelter
Clara-Mateo Alliance Homeless Shelter ¯
On July 7, 1997, the new.bed Clara-Mateo Alliance Homeless Shelter opened on the
grounds of the Veterans Administration (VA) Hospital in Menlo Park. The 45-bed shelter
sits on the border between southem San Mateo County and northern Santa Clara County.
An advisory committee, comprised of representatives of the VA, Santa Clara and San
Mateo Counties, and the Cities of paloAlto, Menlo Park, and Redwood City, oversees the
project. The Salvation Army was selected as the service provider. The VA provides an in-
kind contribution of the facility, a vacant wing of an existing hospital, as well as the costs
of insurance, utilities, and maintenance.
The shelter, which officially opened for clients on July 14, 1997, provided 458 persons
with shelter during the fiscal year. 410 of the clients were male (90%), which 48 (10%)
were female. 432 of the shelter clients were single individuals, eight were couples, and
three were families with children. Veterans comprised 79% of the population served,
while non-veterans comprised 21%. 49% of shelter participants claimed no income at the
time of admission, 20% were employed, and ~he balance received some sort of benefit such
as unemployment insurance, disability, SSI etc.
Emergency Housing Consortium (EHC) Reception Center
Emergency Housing Consortium successfully opened their new Reception Center facility
in November, 1997. The facility will be used as year-round shelter for homeless persons
with a transitional housing component for single individuals with physical, emotional or
mental disabilities, and a transitional component for up to ten families. Although the
shelter is located in South San Jose at 2011 Little Orchard Street, it is intended to serve
persons from North Santa Clara County as well as other areas. The Reception Center
provides 125 year-round shelter beds, including emergency shelter and beds for transitional
living, but has the capacity to expand to 250 beds during the cold weather months of
November through March.
The City of Palo Alto contributed $50,000 in CDBG funds for rehabilitation of the facility.
The entire facility is ADA accessible. During fiscal 1997/98 the Reception Center
provided 1,639 individuals with shelter and transitional housing, 14 of them had a last
significant address in Palo Alto.
30
Community Development
d. Employment Opportunities
The City of Palo Alto Office of Human Services continued the homeless worker program during
fiscal year 1997/98. The City Manager’s discretionary funds were used to provide short-term City
employment opportunities to homeless workers for two 12 week periods. Jobs were created in
City departments such as Public Works, Facilities Maintenance and Community Services.
Applicants were interviewed and screened by City staff, a temporary employment agency, and
Urban Ministry, the local provider of homeless services. Selected workers were provided with
food vouchers, a voucher for clothing from the local Goodwill, and bicycle transportation.
Workers were helped with resumes and skill training.
The Urban Ministry continues to operate an employment program for their clients. This includes
the "Homeless Garden" project which produces vegetables and flowers for sale to local farmers
markets, and restaurants, and the Lawn Service Project which provides gardening services to local
businesses and residences.
e. Homeless Services
In total, the City provided $188,500 in funding for the following services targeted to benefit
persons who are very low income or homeless:
Urban Ministry. $58,000 in CDBG funds to the Urban Ministry for the provision of
homeless support services: shelter, emergency food, and casework counseling and referral.
Emergency Housing Consortium $11,000 in CDBG funds for emergencY shelter and
supportive services provided by the Sunnyvale Armory, the Transitional Housing Program,
the Santa Clara Family Living Center, the Monterey Glen Inn Supportive Housing
Program, and the Reception Center.
Palo Alto Housing Corporation - Barker Hotel Counseling $5,000 in CDBG funds for
casework/counseling sessions for the low income tenants of the Single Room Occupancy
Barker Hotel. Man3, of the tenants were previously homeless, and the counseling sessions
help them maintain their housing stabd~ty.
American Red Cross $10,047 in City General Funds were provided to the Red Cross for
Homeless Prevention Services.
Mayview Community Clinic $8853 in City General Funds were provided to the Clinic to
provide health care and education for male adults and families who are low income,
uninsured or homeless.
Alliance for Community Care $6,975 in City General Funds were provided for casework
management and mental health counseling for Palo Alto’s homeless population.
31
Community Development
¯Social Advocates for Youth $6,895 in City General Funds were provided for the youth
shelter and Safe Place Program for homeless youth.
City’s Seasonal Jobs Program $47,830 in General Funds were used to sponsor the
temporary employment program for homeless workers.
Clara Mateo Shelter/Salvation Army $25,000 in funding gifted to the City by a private
donor for use on projects to aid the homeless.
5. Other Actions
a. Lead-Based Paint Hazard Reduction
The City housing and CDBG staff provide information and referral to property owners, developers
and nonprofits rehabilitating older housing about lead-based paint hazards.
There is not any information which indicates that lower income households are more likely to be
exposed to lead paint hazards in Palo Alto than are families in the general population [see the
discussion in the City’s Consolidated Plan]. The City requires any housing to be rehabilitated with
City financial assistance to be inspected for the existence of lead paint and lead paint hazards. The
City will provide financial assistance for the abatement of such hazards in units rehabilitated with
City funding. The City requires that all tenants and applicants for rental housing assisted with
federal funding be given notice of the possible presence of lead paint in buildings constructed prior
to 1978.
b. Intergovernmental Cooperation
The City.ofPalo Alto has worked closely with neighboring cities and the County during the period
to collaborate on area-wide solutions to issues and problems. City staff participates in the
countywide Housing Bond Advisory Committee which oversees the Mortgage Credit Certificate
program and all County bond financing, the Housing Trust Fund Committee which has been
instrumental in creating a program to provide an ongoing source of money for affordable housing
in Santa Clara County, and the Countywide Housing and Homeless Collaborative .which addresses
the issues of homelessness in Santa Clara County as a whole.
6., Changes to Annual Action Plan
There were no changes to the Community Development portion of the Annual Action Plan.
Community Development
C. Assessment of Performance
1. Evaluation of Progress in Meeting Annual Community Development Goals
The City has made significant progress toward meeting its community development goals in the
past year, especially in the area of homeless services and more emergency shelter beds. The
opening of the Clara-Mateo Shelter Alliance, Emergency Housing Consortium’s Reception
Center, and the Alma Place Single Room Occupancy Apartments have created significant
opportunities for a number of motivated individuals to move out of homelessness. These efforts
contribute significantly to a local continuum of care. All of the public service agencies funded
with CDBG funds address the identified needs of providing a variety of human services to low-
income, at risk populations.
2. Evaluation of Progress in Meeting Overall Goals for the Period 1995-2000
The City continues to make progress in meeting its identified community development goals. The
goal of providing more services directly related to the housing needs of low income persons is
being achieved in light of the difficulties faced in this area by lower income renters. A housing
services directory was created and is being updated annually by PAHC to further address this
need. Public facilities are being modernized and made accessible (CAR- Swim Center
accessibility project, and Ventura Community Facility upgrades). All of the CDBG funds have
been used to address the city’s top priority housing and homeless goals. The City’s greatest need
is affordable housing and the bulk of the CDBG funds have been used to preserve or increase the ¯
affordable housing stock.
The City pursued all resources it indicated it would, provided requested certifications of
consistency for HUD programs in a fair and impartial manner, and did not hinder Consolidated
Plan implementation by action or willful inaction.
3. Barriers to Fulfilling Strategies
The increased cost of rental and ownership housing has created a housing crisis for many local
residents. Many residents’over the past year were forced into homelessness or forced to leave the
area as the result of dramatic increases in rental rates. People already in shelters or sub-standard
housing find it increasingly difficult to improve their living situations, and tend to stay in the
shelters or sub=standard housing longer. The increase in the cost of residential real estate has also
kept many renters from making the step to first time home buyers.
4. Timely Expenditure of Funds
The City is above the 1.5 times the annual grant spending requirement of the CDBG program.
Although we have worked diligently to reduce the overall letter of credit balance by completing as
many outstanding projects as possible, and by re-allocating unspent funds at the first available
opportunity, we have not met the target. The high cost of land and housing in this area requires
that a substantial amount of funding be available to pursue a housing project. It is difficult to
33
~ommunity Development
remain in compliance with the HUD expenditure performance standard while attempting to save
enough money to accomplish a substantial housing project. The expected acquisition of the
sheridan Apartments by the end of calendar year 1998, wil! once again bring the City into
compliance with this numerical requirement.
5. Adjustments or Improvements to Community Development Strategies
No adjustments to the community development strategies have been identified at this time.
34
PART IV.
APPENDIX
35
AFFIDAVIT OF PUBLICATION
IN THE
PALO ALTO WEEKLY
703 High St., Palo Alto, California 94301
. (415} 326-8210
IN THE
SUPERIOR CQtJ’RT OF THE STATE OF CAUFORNIA
FOR THE COUNTY OF SANTA CLARA
40.
STATE OF CALIFORNIA
~.0UNTY OF SANTA CLARA
the t~der’.,iOned..,;tale II~I I am, and at
~ a~ ~t~ ~. l~t I ~ ~
uch ~ Su~ ~ud of t~ ~
~ 2, 1~2. ~ ~ P41~: that
~l~ copy, was ~t ~ ~ not ~
~t~ b ~k-~ ~ ~ ~ t~n
dect~e uncle, ~ of pedury that tt’~ forego~O i~ tn-’o ~nd cea’ect.
NOTICE OF PUBLIC REVIEW AND COMMENT
PERIOD FOR PALO ALTOIS CONSOLIDATED
ANNUAL PERFORMANCE AND
EVALUATION REPORT FOR THE PERIO’D
JULY 1j 1997 TO. JUNE 30~ 1998
The City of Palo Afro has completed a Draft Consolidated Annual Performance and Evaluation
Report (CAPER) for the period Jul,/1, 1997 through June 30, 1998. Preparation and sub?nittal of
the report is required by the federal government, Department of Housing and Urban Development
(HUO), in order for the City (and nonprot’rl organizations within the City) to apply .for f~deral
commur~ity development and housing assistance funds such as Community Development Block
Grant (COBG) and HOME funds. The CAPER replaces the previously required COE]G Grantee
Performance Report, and the Annual Performance Report for the Housing Affordability Strategy of
the Consolidated Plan.
The CAPER provides a summed/of the resources’available and the programmatic
accomplishments" in affordable housing end community development during the 1997-1998 fiscal
year; the status of actions taken during the year to implement the strategies and objectives
described in the City’s Consolidated Plan for the I:;erlod July 1, 1995 to June 30, 2 .(~O0;.and the
progress made during the past year in addressing identified priority needs and ob}ectives.
Public Review and comment Period: The draft CAPER will be available for public review and
comment for a 15-day period, beginning on Monday, September 14, 1998 and concluding at
5:00 p.m. on Monday, September 28, 1998. Written comments may be submitted during the
review period and should be sent to the City of Palo .A~to, Department of Planning and
Community Environment, Attention: Su:’anne Bayley, 250 Hamilton Avenue, 5th Floor, Palo AJto,
CA 94301.
To obtain a Copy of the Report: Copies are available at the Planning Division Counter, City Hall,
5th Floor, 250 Hamilton Ave., between 8:00 a.m -12:00 noon and 1:00 p.m.-4:00 p.m. or by
telephoning 329-2441. For more information, contact S.uzanne 13ayley, CDBG Coordinator, at
329-2428. ..
Page 24 ¯ Friday~-September 11, 1998 ~ Home and Real Estate ° Palo Nto Weekly
CITY OF PALO ALTO
SUMMARY OF CDBG FUNDING PRIORITIES
FISCAL YEAR 1997/98
*Note: Priorities are shown in order of importance
I.AFFORDABLE HOUSI_NG (Goal: 60% of Budget)
A. NE_W__C_O_NS_T.R_U_CTION, CONVERSION_&. ADDIT[ON OF NEW UNITS
Permanent housing for families ~vith children
Other permanent housing including group homes, seniors, the disabled,
shared housing, etc.
Transitional housing with supportive services
Permanent housing for the homeless or at-risk of homelessness
B.P_ILESERVATION OF EXISTING~ LOWER INCOME RENTAL HOUSING
Preservation of existing, .federally subsidized multi-family housing owned
by profit motivated investors
Acquisition and/or rehabilitation of’ existing multi-family rental .housing,
including improvements to common areas
Acquisition and/or rehabilitation of existing buildings for special needs
populations including shared housing and group homes
II.PUBLIC FACILITIES AND I~’ITROVEMENTS (Goal: 5% ’of Budget)
Rehabilitation of existing facilities for use as shelters for the homeless or
other special needs groups
PUBLIC SERVICES (Goal: 15% of Budget)
Services directly related to the housing needs of low income persons
Homeless shelter operating costs and the provision of auxiliary or related
services
Services which address other needs of low income, elderly or special
needs persons
AD~M~INISTRATION (Goal: 20% of Budget).
1.Fair housing education, information, referral, advocacy, counseling and
complaint resolution
2.CDBG program administration and planning costs
Department of Housing & Urban Development
COVER ~AGE Office of Community Planning
Grantee Performance Report
Community Development Block Grant Program
OMB Approval No. 2502-0006(exp.~3/31/93)
PROGRAM YEAR ENDI2. GRANT NUMBER
06/30/98 I
3.NAME & ADDRESS OF GRANTEE
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301-
5.NAME AND TELEPHONE NUMBER OF PERSON
MOST FAMILIAR WITH INFORMATION IN
THIS REPORT
14. NAME & ADDRESS OF C. D. DIRECTOR
I Ms. Anne C. MooreDept. of Planning and Community
Environment
250 Hamilton Avenue
Palo Alto, CA 94301-
6.NAME AND TELEPHONE NUMBER OF PERSON
TO CONTACT ABOUT DISCLOSURES
REQUIRED BY THE HUD REFORM ACT OF
1989
Ms. Suzanne Bayley Ms. Suzanne Bayley
(650)329-2428 (650)329-2428
7. Have these Community Development Block Grant (CDBG) funds been used:
a.to meet the community development program objectives in the final
statement for this program year? If no, explain, in narrative
attachment, how: (I) the uses did not relate to program objectives;
and (2) future activities or program objectives might change as a
result of this year’s experiences.
b.exclusively to either benefit low-and-moderate (low/mod) income
persons, aid in the prevention or elimination of slums or blight,
or meet community development needs having a particular urgency? If
no, explain in a narr.ative attachment.
Yes
Yes
c. such that the grantee has complied with, or will comply with, its
certification to expend not less than 70% of its CDBG funds, during
the specified period, on activities which benefit low/mod income
persons? If no, explain in a narrative attachment.Yes
8. Were citizen comments about this report and/or the CDBG program received?
If yes, attach a summary.No
9. Indicate how the Grantee Performance Report was made available to the public:
a. BY PRINTED NOTICE (name & date)See Attached
b. BY PUBLIC HEARING (place & date)See Attached
c. OTHER See Attached
i0. The following forms must be completed and attached:
a.’ Activity Summary, form HUD 4949.2 d. 1-4-1 Replacement,form HUD 4949.4
b. Activity Summary, form HUD 4949.2a e. Rehabilitation,form HUD 4949.5
c. Financial Summary, form HUD 4949.3 f. Displacement,form HUD 4949.6
This form may be reproduced form HUD-4949.1(II/20/92)
On office copiers ref Handbook 6510.2
Previous editions are obsolete
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page 1 of 30 Run Date: 10/02/98
Department of Housing & Urban Development
COVER PAGE Office of Community Planning
Grantee Performance Report
Community Development Block Grant Program
OMB Approval No. 2502-0006(exp. 3/31/93)
I hereby certify that: This report contains all required items identified above;
Federal assistance made available under the Community Development Block Grant
Program (CDGB) has not been utilized to reduce substantially the amount of local
financial support for community development activities below the level of such
support prior to the start of the most recently completed CDBG program year;
all the information stated herein, as well as any information provided in the
accompaniment herewith, is true and accurate. Warning: HUD will prosecute false
claims and statements. Conviction may result in criminal and/or civil penalties.
(18U.S.C.1001,1010,1012;U.S.C.3729,3802)
Typed Name & Title of Authorized
Official Representative
June Fleming
City Manager
ISignature IDate
This form may be reproduced form HUD-4949.1(II/20/92)
on office copiers ref Handbook 6510.2
Previous editions are obsolete
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COVER PAGE U.S. Department of Housing and Urban Development
Grantee Performance Report Office of Community Planning & Development
Community Development Block Program
OMB Approval No. 2502-0006(Exp. 3/31/93)
9a.PRINTED NOTICE:
A notice regarding the CAPER was published in the Palo Alto
Weekly on Friday, September ii, 1998
9b.PUBLIC HEARING:
A Public Hearing was held on October 9, 1997 to determine needs.
A Public Hearing was held on April 7, 1998 to discuss
allocation recommendations.
A Public Hearing was held on May ii, 1998 to determine funding
allocations.
9C.OTHER:
The notice regarding the availability of the CAPER was mai!ed to
an interested list of individuals.
This form may be reproduced form HUD-4949.1(II/20/92)
on office copiers ref Handbook 6510.2
Previous editions are obsolete
Retain this record for 3 years.Run Date: 10/02/98
page 3 of 30 Run Time: 09:11:46
oo
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Financial Summary
Grantee Performance Report
Community Development Block Program
U.S. Department of Housing and Urban Development
Office of Community Planning & Development
OMB Approval No. 2506-0006(Exp. 3/31/93)
i. Name of Grantee I 2. Grant Number I 3. Reporting Period
City of Palo Alto I B97MC060020 I From 07/01/97 To 06/30/98
Part I: Summary of CDBG Resources
i. Unexpended CDBG funds at end of previous period
2. Entitlement Grant from form HUD-7082
3. Surplus Urban Renewal Funds
4. Section 108 Guaranteed Loan Funds(Principal Amount)
5. Program income received by:
a. Revolving Funds
b. Other (identify below)
Grantee
(Column A)
0.00
40,518.00
Subrecipient
(Column B)
0.00
21,365.00
Total Program Income (sum of columns a and b)
6. Prior Period Adjustments (if negative, enclose in brackets)
7. Total CDBG Funds available for use during this report period
Part II: Summary of CDBG Expenditures
8. Total expenditures reported on Activity Summary
9. Total expended for Planning & Administration 168,049.00
10o Amount subject to Low/Mod Benefit Calculation 465,971.50
ii. CDBG funds used for Section 108 principal & interest payments
12. Total expenditures (line 8 plus line ii)
13. Unexpended balance (line 7 minus line 12)
1,436,942.00
782,000.00
0.00
0.00
61,883.00
0.00
2,280,825.00
634,020.50
0.00
634,020.50
1,646,804.50
Part III: Low/Mod credit This Reporting Period
~14. Total Low/Mod credit for multi-unit housing expenditures
15. Total from all other activities qualifying as low/mod
expenditures
16. Total (line 14 plus line 15)
17. Percent benefit to low/mod persons
(line 16 divided by line i0 this reporting period)
Part IV: Low/Mod Benefit for Multi-Year Certifications (Complete
only if certification period includes prior years)
Program years (PY) covered in certification PY 97 PY
18. Cumulative net expenditures subject to program benefit
calculation
19.Cumulative expenditures benefiting low/mod persons
20.Percent benefit to low/mod persons
(line 19 divided by line 18)
PY
56,518.00
405,276,50
461,794.50
99.1%
0.00
0.00
0.0%
This form may be reproduced form HUD-4949.3(II/24/92)
on local office copiers ref Handbook 6510.2
Previous editions are obsolete
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Financial Summary U.S. Department of Housing and Urban Development
Grantee Performance Report Office of Community Pla~ning & Development
Community Development Block Program
OMB Approval No. 2506-0006(Exp. 3/31/93)
Part V: For Public Service (PS) Activities Only:
Public Service CAP Calculation
21. Total PS expenditures from column h, form HUD 4949.2a
22, Total PS unliquidated obligations from column r,~
from HUD 4949.2a
23. Sum of line 21 and line 22
24. Total PS unliquidated obligations reported at the end of the
previous reporting period.
25. Net obligations for public services (line 23 minus line 24)
26. Amount of Progra~ Income received in the preceding program
year
27. Entitlement Grant Amount (from line 2)
28. Sum of lines 26 and 27
29. Percent funds obligatedfor Public Service Activities
(line 25 divided by line 28)
132,300.00
0,00
132,300.00
0.00
132,300.00
234,927.00
782,000.00
1,016,927.00
13.0 %
Part VI: Planning and Program .Administration Cap Calculation
30. Amount subject to planning and adminstrative cap
(grant amount from line2 plus line 5)
31, Amount expended for Planning & Administration
(from line 9 above)
32. Percent funds expended (line 31 divided by line 30)
843,883.00
16~,o4~,oo
19.9 %
LINE i:UNEXPENDED FUNDS NARRATIVE
reconciling difference
LINE 5a: PROGRAM INCOME NARRATIVE
$40,518.00 from Housing Improvement Program (HIP) loan payments
and loan payoffs.
$21,365 from palo Alto Housing Corporation (PAHC) from various
rental projects acquired or improved with CDBG funds.
Other Program Income
ACtivity NO, I GranteeDescriptionI I Subrecipient
*HIP ILow Interest Loans I 40,518.001 0.00
IVarious Rental Properties I 0.001 21,365.00
Total I 40,518.001 21,365.00
This form may be reproduced"form HUD-4949.3(II/24/92)
on local office copiers ref Handbook 6510.2
Previous editions are obsolete
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Financial Summary
Grantee Performance Report
Community Development Block Program
U.S. Department of Housing and Urban Development
Office of Community Planning & Development
OMB Approval No. 2506-0006(Exp. 3/31/93)
Activity Numbers Starting with "*" are old Activities
not on this program year’s Activity Summary.
GPR HANDBOOK APPENDIX 3: ITEM D UNRECONCILED DIFFERENCE EXPLANATION
Difference due to rounding.
GPR HANDBOOK APPENDIX 3: ITEM E CALCULATION OF BALANCE OF UNPROGRAMMED FUNDS
D.RECONCILIATION OF LINE(S) OF CREDIT (LOC) AND CASH BALANCES
TO UNEXPENDED BALANCE OF CDBG FUNDS SHOWN ON GPR
Complete the following worksheet and submit with the attachment:
UNEXPENDED BALANCE SHOWN ON GPR
(line 13 of HUD 4949.3)
1,646,804.50
ADD:
LOC balance(s) as of GPR Date
Cash on Hand:
Grantee Program Account
Subrecipients Program Accounts
Revolving Fund Cash Balances
Section 108 Accounts
(in contract)
1,650,804.69
0.00
0.00
0.00
0.00
SUBTRACT:
Grantee CDBG Program Liabilities
(include any reimbursements due to
the Grantee from program funds)
Subrecipient CDBG Program Liabilities
(same instructions as above)
0.00)*
0.00)*
TOTAL RECONCILING BALIhNCE:
UNRECONCILED DIFFERENCE:
When grantees or subrecipients operate their programs on a
reimbursement basis, any amounts due to the grantees or
subrecipients should be included in the Program Liabilities.
1,650,804.69
-4,000.19
This form may be reproduced form HUD-4949.3(II/24/92)
on local office copiers ref Handbook 6510.2
Previous editions are obsolete
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.page 26 of 30 Run Time: 11:04:16
Financial Summary U.S. Department of Housing and Urban Development
Grantee PerformanceReport Office of Community Planning & Development
Community Development Block Program ~
OMB Approval No. 2506-0006(Exp. 3/31/93)
This form may be reproduced form HUD-4949.3(II/24/92)
on local office copiers ref Handbook 6510.2
Previous editions are obsolete
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U.S. Department of Housing & Urban Development
Office of Community Planning and Development
REHABILITATION ACTIVITIES
Grantee Performance Report
Community Development Block Grant Program
OMB Approval Noo 2506-0006(exp. 3/31/93)
Name of Grantee I Grant Number I Program Year
City of Palo Alto I B97MC060020 I From 07/01/97 To 06/30/98
All grantees must submit this form,I Single-unit I Multi-unit
whether or not they have CDBG funded I Activities I Activities
rehabilitati°n~programs-I (i Unit)I (2+ Units)
I.Check box only if granteehas no CDBG
rehabilitation activities:
2. Staffing: number of Staff-Years 0.0 0.0
(FTE staff years to tenths)
3. ~Current Program Year Expenditures:
Activity delivery costs from CDBG funds
a. Staff costs: Amount expended in 2 above 0.00 0.00
b. Other direct.costs (not included in 4)0.00 0.00
4. Current Program Year Expenditures:
For all projects (a+b+c below)0.00 0.00a. CDBG funds expended 0.00 0.00
b. Other public(Federal,State,local) funds exp’d.0.00 0.00
c. Private funds expended 0.00 0.00
5. Project/Units Rehabilitated/Committed
a. Number of projects committed(multi-unit only)0
Projects
b. Number of units committed 0 0
Units Units
6. Obligations: Amount obligated for
projects/units committed in 5a and 5b 0.00 0.00
a. CDBG funds obligated 0.00 0.00b. Other public(Fed.,State, local) funds obligated 0.00 0.00c. Private funds obligated 0.00 0.00
7. Projects/Units Rehabilitated/Completed
a. Number of projects completed(multi-unit only)
b. Number of units completed
0
Projects
0 0
units Units
8. Cumulative Expenditures :0.00 0.00a. CDBG funds expended 0.00 0.00b. Other public (Federal, State, local) funds exp’ d.0.00 0.00
c. Private funds expended 0.00 0.00
Individuals may copy this form form HUD-4949.5(II/24/92).
on office copiers as needed,ref. Handbook 6510.2
Previous Editions are Obsolete
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~oO~
o