HomeMy WebLinkAbout1996-04-02 City CouncilTHESU~J~-U~ ~r
THIS REPORT "SDGET 1996-98ISA
COUNC_IL PRIORITY City of Pale Alto
City Manager’s Summary Report
TO:HONORABLE CITY COUNCIL
Attention:Finance Committee
FROM:CITY MANAGER DEPARTMENT: Planning and
Community Environment
AGENDA DATE: APRIL 2, 1996 CMR:204:96
SUB~_~CT:1996/97 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG)ALLOCATIONS
REQUEST
This report transmits the recommendations of City staff and the CDBG Citizens Advisory
Committee (CAC) for the expenditure of Community Development Block Grant (CDBG)
funds for the 1996/97 fiscal year. The Finance Committee is requested, after holding a
public hearing, to assess the recommendations and forward on to the full Council its
recommendations for CDBG expenditures.
RECOMME~ATIONS
Staff recommends that the Finance Committee recommend to the City Council approval of
the following:
The funding allocations and the funding contingency plan, as recommended by staff
and the Citizens Advisory Committee in Attachment B, be included in the 1996/97
CDBG Action Plan.
Staffbe authorized to submit to the Department of Housing and Urban Development
(HUD), by the May 15, 1996 deadline, the proposed Action Plan for the expenditure
of 1996/97 CDBG program funds.
The City Manager, on behalf of the City, be authorized to execute the HUD
application and Action Plan and any other neces.sary documents concerning the
application, and to otherwise bind the City with respect to the application.
CMR:204:96 Page 1 of 13
POLICy,,,, IMPLICATIONS
The funding recommendations at the current level do not represent a change to existing City
policies. Since Congress has not yet adopted a federal budget, the exact amount of CDBG
funds is unknown. A significant decrease in the level of HUD funding for the CDBG
Program could have a potentially negative effect on City housing policy and the goals and
objectives in the adopted Consolidated Plan.
..EXECUTIVE.. SUMMARY
The budget impasse in Washington has delayed passage of the 1996 HUD appropriation bill.
Budget authority is currently based on a Continuing Resolution (CR), set to expire on March
29, 1996, which sets available funding at approximately 45 percent of the 1995/96 CDBG
allocation. Staff and the CAC have been able to consider only these funding scenarios based
on probable budget outcomes rather than on a certain HUD allocation. Funds have been
allocated based on a 6 percent reduction in federal funds to Palo Alto. This is the best guess
estimate fi:om various sources. A contingency plan for other funding scenarios is contained
in Attachment B.
FISCAL ,IMPACT
The CDBG Program will increase the amount of funds available to the City for programs and
projects which benefit lower income residents. A higher proportion of staff costs might have
to be absorbed by the General Fund (not reimbursed by HUD), ifMDB accounting shows
stafftime spent on non-CDBG eligible projects, or if the amount of reimbursable expenses
exceeds the amount allocated for reimbursement. The General Fund could also be impacted
if the actual CDBG allocation is less than anticipated.
ENVIRONMENTAL ASSESSMENT
For purposes of the California Environmental Quality Act (CEQA), budgeting is not a
project.- In the project descriptions in Attachment B, the environmental assessment for each
project has been identified.
PREPARED BY: Suzanne Richards, CDBG Coordinator
DEPARTMENT HEAD REVIEW:
KENNETH R. SCHREIBER
Director of Planning and
Community Environment
CMR:204:96 Page 2 of 13
CITY MANAGER APPROVAL:
City Manager
Page 3 of 1.~
CMR:204:96
CMR:204:96 Page 4 of 13
CiOy of Palo Alto
City Manager’s Report
SUBJECT: .1996/97 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUNDING ALLOCATIONS
REQUEST
This report transmits the recommendations of City staff and the CDBG Citizens Advisory
Committee (CAC) for the expenditure of Community Development Block Grant funds for
the 1996/97 fiscal year. The Finance Committee is requested, after holding a public hearing,
to assess the recommendations and forward on to the full Council its recommendations for
CDBG expenditures.
RECOMMENDATIONS
Staff recommends that the Finance Committee recommend to the City Council approval of
the following:
The funding allocations and the funding contingency plan, as recommended by staff
and the Citizens Advisory Committee in Attachment B, be included in the 1996/97
CDBG Action Plan.
Staff be authorized to submit to the Department of Housing and Urban Development
(HUD), by the May 15, 1996 deadline, the proposed Action Plan for the expenditure
of 1996/97 CDBG program funds.
o The City Manager, on behalf of the City, be authorized to execute the HUD
application and Action Plan and any other necessary documents concerning the
application, and to otherwise bind the City with respect to the application.
BACKGROUND
The City of Palo Alto receives funds annually from the U.S. Department of Housing and
Urban Development (HUD) as an entitlement City under the CDBG Program, authorized by
Title I of the Housing and Community Development Act of 1974, as amended. The primary
objective of the Act is "the development of viable urban communities by providing decent
housing and a suitable living environment, and expanding economic opportunities,
principally for persons of low and moderate income."
CMR:204:96 Page 5 of 13
HUD Regulations
HUD regulations require that, in the aggregate, a minimum of 70 percent of the funds be
spent on activities which are of benefit to low and very low income persons. Additionally,
all eligible projects must meet one of the three national objectives:
1)
2)
3)
Activities which are of benefit to low and very low income persons;
Activities which aid in the prevention or elimination of slums or blight; or
Activities which meet other community development needs having a particular
urgency or posing a serious and immediate threat to the health or welfare of
the community.
Palo Alto has historically expended all of its CDBG funds on activities which benefit low
and very low income persons. The 1996 HUD income data for Santa Clara County define
median income for a family of four as $67,400. HUD income limitations classify low
income persons as households with incomes of 80 percent of the median income, and very
low income as 50 percent of median. In high-cost areas such as Santa Clara County,
however, the low income figure is capped below the 80 percent figure. Currently the cap for
low income persons is at 62 percent of median, or $41,600 for a family of four. The very low
income limit is 50 percent of median, or $33,700 for a family of four.
In 1995, new HUD regulations required entitlement jurisdictions to produce and adopt a five-
year Consolidated Plan which described the jurisdiction’s condition and resources, identified
priority housing and non-housing needs, and outlined a strategy and Action Plan to address
the identified needs. The Consolidated Plan is meant to serve as a guide to ensure that
federal funds are directed toward the most urgent needs, and that funding decisions are
consistent with identified strategies. Each year, the Action Plan is updated, submitted to
HUD, and serves as the application for funds. The Consolidated Plan for the Period July 1,
1995 to June 30, 2000 was considered and adopted by the full Council at a public hearing on
May 1, 1995.
In 1996, HUD added the requirement that jurisdictions produce an Analysis of Impediments
(AI) to Fair Housing Choice, as a companion document to the Consolidated Plan. An annual
Action Plan to address impediments identified in the analysis will also be required. The AI
was completed on February 6, 1996 and has been reviewed by the CDBG Citizens Advisory
Committee, and will be reviewed by the Human Relations Commission at their April 11,
1996 meeting.
Summaries of the draft 1996/97 Action Plans for the Consolidated Plan and the AI were
published in the Palo Alto Weekly on March 20, 1996 for the required 30-day public review
period. The full City Council will be asked to review and approve the AI and the Action
Plans at a public hearing scheduled for May 6, 1996.
CMR:204:96 Page 6 of 13
Available Funds
The amount of CDBG grant funds available to Palo Alto for fiscal year 1996/97 is not yet
known. As of this writing, House and Senate Conferees are negotiating on a one-year
Continuing Resolution (CR) in the absence of an approved FY 96 appropriations bill. For
CDBG, the bill allows HUD to continue operations at the approved funding level of $4.6
billion. However, the measure also contains a reduction of$1.2 billion in unspecified cuts
to HUD programs.
Based on the portion of 1996 funds received by HUD under the Continuing Resolution which
extends until March 29, 1996, HUD released partial allocation figures to entitlement
jurisdictions in late February, representing approximately 45 percent of last year’s grant
amount. For Palo Alto, that amount was $356,000.
In order to proceed with the funding recommendations through the CDBG Citizens Advisory
Committee process, however, certain assumptions had to be made. The attached funding
recommendations are based on an estimated 6 percent reduction in the amount of the 1996/97
grant from the 1995/96 gratit, which was $822,000. This "best guess" estimate is based on
the overall 1996 federal appropriation for the CDBG program being the same as the 1995
level of $4.6 billion, and taking into consideration added entitlement jurisdictions and
program set-asides. For purposes of determining fimding allocations and the applicable
program funding cap calculations, the entitlement grant for 1996/97 is estimated to be
$772,680.
In addition to the grant, it is estimated that $60,000 in Program Income will be available in
1996/97. Program income is defined as income directly generated from the use of CDBG
fimds. The main sources of funds are from payments on loans made with CDBG funds, or
from rental income in excess of expenses on property acquired or improved with CDBG
funds. The majority of CDBG Program Income is received from loan repayments under the
City’s Housing Improvement Program (HIP) single family rehabilitation program.
Additionally, $200,000 in previously received program income that has not yet been
allocated is available for programing. These fimds were in excess of the anticipated program
income for the past three years. The amount represents actual program income received in
excess of estimated projections for past years. Also available is $31,212 for reallocation from
previously allocated funds which were not used. The majority of the unused funds was
surplus funds set aside for the Arastradero Park Apartments acquisition.
The total estimated 1996/97 funds are as follows:
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FY 1996/97 CDBG Allocation (est. 6% reduction)
1996/97 Program Income (est.)
Program Income received in prior years
Reallocation of previously allocated, but unspent funds
$772,680
60,000
200,000
31,212
$1,063,892
Public Service Category
The primary focus of the CDBG program is on capital projects such as new housing, land
acquisition, relocation, architectural barrier removal, site clearance, housing rehabilitation,
historic preservation, economic development, or other similar activities. Two other
categories of funding, Public Service and Program Administration, are also allowed.
Funding for organizational expenses in the "Public Service" category is limited to a
maximum of 15 percent of the annual grant, plus 15 percent of estimated program income
from the current year (1995/96) The estimated maximum funding in this category for
1996/97 is $129,700, based on the 1995/96 program income projection of $92,000 and the
estimated 1996/97 grant allocation of $772,680. ($772,680 + $92,000 = $864,680 x 15% =
$129,700).
Program Administration Category
Funding in the "Program Administration" category is limited to a maximum of 20 percent
of the annual grant, plus 20 percent of estimated program income for the succeeding year
(1996/97). The estimated maximum funding allowed for 1996/97 under this category is
$166,536 based upon program income projections of $60,000 and the estimated grant
allocation of $772,680. ($772,680 + $60,000 = $832,680 x 20% =$166,536).
The service contract for Fair Housing, as well as City staff time spent on overall program
administration and planning studies, is eligible for reimbursement under this category. City
stafftime spent on specific capital projects is considered a "project delivery" cost, and not
subject to the 20 percent limitation. The request for program reimbursement for City of Palo
Alto staff expenses has been split between "administrative expenses" (the amount that falls
under the cap) and project delivery expenses.
Citizen Participation
Federal regulations require that citizens receive information on a community’s proposed
CDBG program in a manner which provides for timely examination, appraisal and comment.
To address this requirement and encourage active citizen participation in the CDBG process,
the Palo Alto City Council adopted a Citizen Participation Plan on December 13, 1993,
which provides for a nine member CDBG Citizens’ Advisory Committee (CAC) to be
selected by the Mayor. An ad was placed in the Palo Alto Weekly on November 10 and 15,
1995, to recruit new members. New Committee members were selected and appointed by
CMR:204:96 Page 8 of 13
former Mayor Joe Simitian from the applications received. To provide for coordination
between the Human Service Resource Allocation Process (HSRAP) and the CDBG funding
allocation process, a member of the Human Relations Commission (HRC) occupies one of
the nine CAC slots.
This year’s Committee included Greg Avis, Owen Byrd, Beverly Clayton, Karl Garcia,
Jonathan Glendinning, Wynn Hausser (HRC Liaison), Carol Richards, Helen Tao and
Margaret Toor. Owen Byrd was selected as the Committee Spokesperson. Public meetings
were held on January 4, 18 and 25; February 1, 15, 22 and 29; and March 7 in the Council
Conference Room at City Hall. Staff and the CAC reviewed all requests for funding and
interviewed representatives of each of the applicant agencies, in order to reach consensus on
their recommendations to Council.
Funding Applications
Applications for 1996/97 funding were mailed to an extended list of area housing and/or
human service providers on October 31, 1995. A notice announcing the availability of
applications was published in the Palo Alto Weekly on November 1, 1995. Completed
applications were due by 5:00 p.m. on Friday, December 15, 1995. The applications were
due earlier than usual this year, because of accelerated timetables as a result of the HUD
Consolidated Planning Process.
Housing applications were expanded this year to include "Requests for Proposals" for
funding from the CDBG Housing Development Fund, the HOME Investment Partnership
Program, and the City’s Housing Reserve Program. Although applications for these funds
may technically be submitted at any time during the year, for housing projects or activities
which require funding commitments on short notice due to market opportunities or to meet
the schedule of other housing funding sources, the CDBG cycle was utilized to maximize
citizen participation in the process.
The City is not an entitlement jurisdiction for HOME funds, but is eligible to apply to the
State of California, on a competitive basis, for up to $1 million in HOME funds annually.
The City submitted an application for FY 1995 HOME funds to the State on September 15,
1995. In that application, the City proposed using 1995 HOME funds for a new Single Room
Occupancy (SRO) project sponsored by the Palo Alto Housing Corporation, and for a new
apartment project for persons with developmental disabilities sponsored by Mid-Peninsula
Housing Coalition.
The CDBG and Housing Development Fund application was intended to solicit project
proposals for FY 1996 HOME funds and for back-up housing activities for 1995 HOME
funds. Unfortunately, the City was not awarded 1995 HOME funds from the State. The
CDBG Housing Development Fund has a current balance of $624,817, and the Housing
CMR:204:96 Page 9 of 13
Reserve Fund has a balance of approximately $475,000. Recommended allocations of these
funds are discussed in Attachment B.
Proposal Review Criteria
All funding applications were reviewed by City staff for compliance with federal project
eligibility requirements. Additionally, all applications were evaluated based on the needs and
priorities identified in the adopted Consolidated Plan.
Other factors considered in the staff and CAC recommendations were the urgency of the
program or project; the effect of a delay (in funding) on the services provided; project/agency
readiness; financial feasibility of the program or project; the number of low income Palo Alto
residents served; whether or not the request increased the services provided or the number
of clients served; whether or not the services were duplicated by other agencies; the agency’s
previous performance experience and anticipated capacity to carry out the program or
project; the availability of other funding sources to the applicant; and whether or not the
goals of the service could be obtained with less funding.
The affordable housing needs and priorities stated in the Consolidated Plan can be
summarized as follows:
@
New Construction of Rental Housing (occupancy to be primarily very low and low
income households, or homeless, or households at-risk ofhomelessness, or persons
with special needs or disabilities).
Preservation of existing, federally subsidized, low income rental housing
Existing Multi-Family Rental Housing: 1) Rehabilitation of existing rental housing
occupied by low and very low income households and .2) Acquisition. and
rehabilitation, if needed, of existing multi-family rental housing for conversion to
affordable rental units for very low income occupancy.
Shared housing for very low income households, especially single parent households.
Acquisition and/or rehabilitation of group homes and other housing for occupancy by
persons with disabilities.
Housing activities and projects which support the City’s Below Market Rate Housing
Program.
Transitional rental housing with supportive services.
Funding Recommendations
City staff and the Citizens Advisory Committee concur on the recommendations for funding
for the 1996/97 CDBG program year. Attachment A is a chart showing the applications
received and the funding recommendations. Attachment B is a narrative explaining the
proposals and the funding recommendations in more detail. It includes a contingency
funding plan to handle minor changes to CDBG grant amount. The contingency plan
CMR:204:96 Page 10 of 13
provides funding alternatives, if the estimated CDBG allocation is increased or decreased by
up to 10 percent. A variation greater than 10 percent would require that the CAC reconvene
to consider a different funding scenario.
POLICY IMPLICATIONS
The 1996/97 CDBG Program and funding recommendations, as presented, do not represent
a change to existing City policies.
DISCUSSION
The amount of money available for public service programs is restricted by the 15 percent
public service cap. Anticipated reductions in the amount of the CDBG grant, as well as
decreases in program income, will result in hardships for the agencies applying for funding
under this category. Given the estimated funding scenario this year, the public service cap
is 6 percent less than in the current year. The cap makes it difficult to fund new services,
programs, or agencies, and provide cost of living adjustments to agencies performing well
under their existing contracts. Additionally, for agencies receiving CDBG funds from
several jurisdictions, the effects of budget reductions are multiplied significantly.
The number of physical projects which are recommended for funding is limited not only by
the amount of money available, but by the staff time available to administer the projects.
Staff currently has a backlog of capital projects to complete as follows:
1992/93 Casa Say Shelter Rehabilitation $10,000
1993/94 Lytton Gardens - Accessibility $56,618
1993/94 Stevenson House - Fire Alarm $30,000
1994/95 Stevenson House - Accessibility $21,000
1994/95 Emergency Housing Consortium -$50,000
Reception Center
1994/95 Casa Say - Shelter Rehabilitation $10,000
1994/95 Rinconada Park Accessibility $45,000
1995/96 Ventura Community Center $183,000
1995/96 CAR Swim Center Addition $35,000
1995/96 Pacific Art League - Accessibility $23,400
1995/96 YWCA - Women’s Loan Program $35,000
To alleviate a similar situation in fiscal year 1991/92, the City allocated $45,667 from the
CDBG funds to direct costs relating to the administration of the rehabilitation projects. A
part-time employee was hired to handle the rehabilitation projects. When that backlog of
projects was completed in 1994, the temporary position was eliminated. It was anticipated
that the Housing Planner would be able to pick up the function. Unfortunately, that has not
been the case. The Housing Planner has had to concentrate on housing development projects
CMR:204:96 Page 11 of 13
such as the Barker Hotel, the Alma Street SRO, 330 Emerson, Housing for the
Developmentally Disabled, and others.
In addition, significant administrative changes to the CDBG Program have been initiated by
HUD. Staff now has to prepare a five-year Consolidated Plan with annual updates, an
Analysis of Impediments to Fair Housing Choice, as well as added monitoring
responsibilities including Davis-Bacon prevailing wage requirements. For next year, all
reporting and accounting will be done on-line through a national data base. These new
procedures will again require a significant investment of staff time to learn, initiate and
maintain.
To address the backlog of capital projects and to provide for the anticipated program
changes, staff has requested that $8,000 of the $180,000 City reimbursement be available for
a contract employee to provide temporary assistance, as necessary, to complete the
construction projects. This could potentially impact the General Fund, since the contract
costs would come from the available CDBG administrative funds..Since adoption of the new
Mission Driven Budget (MDB) format, which the City is using to track staff time on specific
projects, staff will be able to more accurately identify the exact amount of time spent on
eligible CDBG administrative and project delivery costs. Our belief, based on one-half year
of MDB, is that eligible CDBG reimbursement might not reach the full $180,000, if current
staffing assignments are maintained. For the eight-month period ending February 29, 1996,
staff expenditures for the CDBG program were $98,166. Annualized, this figure would be
approximately $150,000. Currently, an additional $12,000 is budgeted for non-salary
expenses. It should be noted that these funds would not be lost, but would be eligible for
reallocation to other projects. City staff will continue to monitor these figures to maximize
City salary reimbursements.
ALTERNATIVES
The Finance Committee may choose to recommend to the City Council an alternative
funding scenario to the one presented by staff and the Citizens Advisory Committee, or a
modification in the amount of funding for specific programs or projects.
FISCAL IMPACT
The CDBG Program increases the amount of funds available to the City for community
development and housing projects which benefit lower income residents. The exact amount
will not be known until the 1996 federal budget has been approved. The City expends funds
for the CDBG Program from the General Fund, and then requests reimbursement from HUD
on a quarterly basis. City staff costs for program administration, and to assist in the
completion of housing and community development projects (project delivery costs) are
eligible to be reimbursed by the HUD grant.
CMR:204:96 Page 12 of 13
A higher proportion of staff costs might have to be absorbed by the General Fund (not
reimbursed by HUD), if MDB accounting shows staff time spent on non-CDBG eligible
projects, or if the amount of reimbursable expenses exceeds the amount allocated for
reimbursement. The General Fund could also be impacted if the actual CDBG allocation is
less than anticipated.
ENVIRONMENTAL ASSESSMENT
For purposes of the California Environmental Quality Act (CEQA), .budgeting is not a
project. In the Project Descriptions in Attachment B, the Environmental Assessmentunder
CEQA has been identified. HUD environmental regulations for the CDBG Program are
contained in 24 CFR 58 "Environmental Review Procedures for Title I Community
Development Block Grant programs." The regulations require that entitlement jurisdictions
assume the responsibility for environmental- review and decision making under the National
Environmental Policy Act (NEPA). Prior to the commitment or release of funds for each of
the proposed projects, staff will carry out required environmental reviews or assessments,
and certify that the review procedures under CEQA, HUD and NEPA regulations have been
satisfied for each particular project.
STEPS FOLLOWING APPROVAL
Funding recommendations made by the Finance Committee will be forwarded to the City
Council for review and approval at their regularly scheduled meeting of May 6, 1996. The
Council will be asked to adopt a resolution establishing funding allocations, review and
approve the Analysis of Impediments to Fair Housing Choice and the 1996/97 Action Plan
containing the CDBG application and requisite certifications, and direct that staff submit the
application to HUD by the May 15, 1996 deadline.
ATTACHMENTS/EXHIBITS
Attachment A:Chart of 1996/97 fimding applications and recommendations
Attachment B:Narrative report containing staff and CAC funding recommendations
Attachment C:Letter from the CAC to City Council and the Urban Ministry of Palo
Alto’s Board of Directors regarding the Urban Ministry’s fimding
request.
CC:CDBG Citizen’s Advisory Committee Members
Applicant Agencies
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ATTACHMENT A
1996/97 CDBG FUNDING REQUESTS
AGENCY~ROJECT TITLE
Public Services
2.
3.
4.
5.
6.
7.
8.
9.
10. Women In Need Now
1995/96 1996/97
FUNDING REQUEST
Sub-total
Catholic Charities 13,200
Emergency Housing Consortium 10~700
Innovative Housing 13,300
Palo Alto Housing Corp.37,100
Urban Ministry 60,000
Outreach & Escort 4,000
Mental Health Advocacy -0-
Community Services Agency -0-
Santa Clara Valley Multi-Service Center -0-
-0-
138,300
CAC & STAFF
RECOMMEND.
13,860 12,900
11,200 10,500
20,000 13,000
55,700 29,300
62,500 58,000
8,000 6,000
13,000 -0-
50,000 -0-
3,614 -0-
135,000 -0-
372,874 129,700
Program Administration
11. City of Palo Alto -CDBG Admin
12. Mid Peninsula Citizens for Fair Hsng
Sub-total
140,000 140,000 140,000
16,275 20 089 19,000
156,275 200,089 159,000
Capital Improvements to Public Facilities
13. Peninsula Children’s Center - Energy Impr.
Sub-total
N/A 20,000 -0-
20,000 -0-
Housing Production/Housing Rehabilitation
11. City of Palo Alto - Project Delivery 39,725
14. Senior Home Repair Program 11,000
15. Housing Development Fund 351,200
16. Mid Peninsula Housing Coalition N/A
17. Innovative Housing - Illinois St.N/A
18. Lytton Gardens - Air Conditioning N/A
19. Palo Alto Housing Corp. - Waldo N/A
20. Palo Alto Housing Corp. - Emerson N/A
21. Palo Alto Housing Corp. - Arastradero N/A
22. Stevenson Housing Corp. - New Roof N/A
23. Social Advocates for Youth - Casa SayN/A
Sub-Total
Total
40,000 40,000
12,000 12,000
500,000 346,512
711,000 (711,000) *
21,000 21,000
81,056 -0-
49,171 -0-
69,300 69,300
286,380 286,380
110,000 -0-
5,000 (5,000)**
1,844,907 775,192
2,437,870 $1,063,892
24.Emergency Housing - San Jose homeless reception center update - location change
($50,000 allocated in 1994/95, no additional money requested)
¯ 411,000 from existing CDBG Housing Development Fund and $300,000 from the City’s
Industrial-Commercial Housing In-Lieu Fund (Not included in total)
**From existing CDBG contingency funds (not included in total)
Anticipated Funds Available:
FY 1996/97 CDBG Allocation (est. 6% reduction)
1996/97 Program Income (est.)
Reallocation of previously allocated funds
Prior unprogrammed Program Income
772,680
60,000
31,212
200.000
1,063,892
Public Service Cap Calculation:
FY 1996/97 Allocation (est)
FY 1995/96 Program Income (est)
772,680
92.000
864,680 x 15% = $129,700
Administration Cap Calculation:
FY 1996/97 Allocation (est)
FY 1996/97 Program Income (est)
772,680
60,000
832,680 x 20% = $166,536
ATTACHMENT B
STAFF AND CAC FUNDING RECOMMENDATIONS
FOR 1996/97 CDBG FUNDS
The following recommendations are based on the assumption that the CDBG grant will be reduced
by six percent over the 1995/96 level. The funding recommendations have been carefully
considered so that they fit within category caps and other program requirements. If the grant is
increased by an amount up to the level of the current year’s grant, it is staff and the Committee’s
recommendation that the amount be used to increase Catholic Charities, Emergency Housing
Consortium, and Innovative Housing’s allocations up to an amount equal to a two percent increase
over their current year’s allocation. Mid-Peninsula Citizens for Fair Housing should also be given
increased funding up to the two percent limit over the current year’s funding (plus the two
additional new programs). The balance of any additional funds should be provided to the Housing
Development Fund.
If there is a decrease in total funds in excess of the six percent anticipated, that reduction will be
shared by all the public service agencies so they fit under the fifteen percent cap. Reductions will
also need to be made to the City allocation and the Mid-Peninsula Citizens for Fair Housing
contract so the amounts fit under the reduced caps. Further reductions should be taken from the
Housing Development Fund.
Final grant adjustments greater than tea percent from the anticipated funding should be referred
back to staff and the Citizens Advisory Committee for additional review and new funding
recommendations.
PUBLIC SERVICE APPLICATIONS
CATHOLIC CHARITIES - Long Term Care Ombudsman Program
2625 Zanker Rd. Suite 200, San Jose, CA 95134-2107
FUNDING
Request $13,860
Current Funding $13,200
Recommendation $12,900
Description
Agency provides confidential advocacy andcomplaint investigation services to the
approximately 950 residents of Palo Alto’s skilled nursing and residential board and care
facilities for the elderly. Agency staff and trained community volunteer ombudsmen visit
residents in local facilities on a regular basis and as special circumstances dictate (i.e. in
response to specific complaints). Clients are counseled and represented in areas of
o
patient/resident fights, physical and sexual abuse, quality of care, fiduciary abuse, neglect,
diet, theft, incorrect placement, eviction, and other concerns.
Environmental
Not a Project under CEQA.
Re¢0mmendation
Current contract objectives are being met or exceeded. Services an area which is necessary
and not duplicated by any other agency. In the first six mo~iths of the 1995/96 fiscal year,
agency opened and investigated 47 cases in response to direct complaints, including 8 for
elder abuse or gross neglect. 411 residents were contacted or assisted. The funding
recommendation represents a 2.0 % decrease over the current year’s allocation in anticipation
of a HUD funding reduction for the CDBG program.
EMERGENCY HOUSING CONSORTIUM - Shelter and Services for the Homeless
P. O. Box 2346, San Jose, CA 95109
Funding
Request $13,300
Current Funding $10,700
Recommendation $10,500
Description
Agency provides emergency shelter and supportive services to homeless men, women, and
families with children throughout Santa Clara County. Emergency Housing Consortium
operates the Family Living Center in Santa Clara, the winter shelters at the National Guard
Armories in Sunnyvale, San Jose, and Gilroy, and various transitional housing programs in
San Jose. Supportive services include prepared meals, counseling, child care, and life skills
workshops to help secure housing and/or employment.
Enyironmental
Not a Project under CEQA.
Recommendation
Current contract objectives are being met. Agency served 28 unduplicated persons, whose
last significant address was Palo Alto, with 201 shelter nights during the first six months of
the 1995/96 contract year. The funding recommendation represents a 2.0% decrease over
the current year’s allocation in anticipation of a HUD funding reduction for the CDBG
program.
INNOVATIVE HOUSING - Supportive Shared & Transitional Homing
457 Kingsley Avenue, Palo Alto, CA 94301
2
Funding
Request $ 20,000
Current Funding $13,300
Recommendation $13,000
Description
Innovative Housing maintains supportive shared and transitional housing programs which
provide local affordable housing options for very low income persons and families. The
majority of clients served by these programs are single parents and their children. Agency
facilitates tenant rental stability and the development of greater independence through skill
building workshops, intensive supportive services, and individualized case management when
needed.
Environmental
Not a Project under CEQA.
Recommendation
Current contract objectives were met or exceeded. For the period July 1, 1995 through
December 31, 1995, 13 individuals, representing 6 family units, were supported in shared
housing; 22 individuals were served in the transitional housing program. The agency has,
however, been without the leadership of a Regional Director for approximately six months.
Because strong, local leadership is considered vital to the success of the program, staff and
the CAC would like to stress the importance of finding and retaining qualified program
personnel. The funding recommendation represents a 2.0% decrease over the current year’s
allocation in anticipation of a HUD funding reduction for the CDBG program.
PALO ALTO HOUSING CORPORATION (PAHC) - Affordable Homing Information
and Referral, Reprinting of the Affordable Housing Directory and Casework Counseling
at the Barker Hotel
540 Cowper Street Suite G, Palo Alto, CA 94301
Funding
Request $55,700
Current Funding $37,100
Recommendation $29,300
Description
The mission of PAHC is to foster, develop, acquire, and operate low-income and moderate-
income housing in Palo Alto. The funding requested is to provide support services which
increase affordable housing opportunities in Palo Alto. The following categories of funding
were proposed: Information and referral $18,700; Service Program Development for the
proposed Single Room Occupancy (SRO) housing $10,500; Disability Access Assessment of
3
PAHC properties $15,900; Counseling Services for Barker Hotel tenants $8,600; and
Reprinting of the Directory of Housing Services $2,000.
Environmental
Not a ProJect under CEQA.
Recommendation
Current contract objectives are being met. A new brochure is in the planning stage, and the
housing, directory is being updated. 957 information and referral calls have been answered,
and the property management system is 85 percent completed. The recommendation is to
fund the following categories of services: $18,700 for affordable housing information and
referral, $2,000 to update and publish the housing directory; and $8,600 for the Barker Hotel
service component. The information and referral program and the availability of the
affordable housing directory greatly benefit low income housing seekers.
The supportive counseling program at the Barker Hotel is vital to the success of the Barker
Hotel Project. It provides affordable, stable housing for very low income, often fragile
persons who might be previously homeless, in a recovery program, or have mental or
physical disabilities. Prior to the acquisition and rehabilitation of the Barker Hotel by PAHC,
staff from the Urban Ministry of Palo Alto (UMPA) conducted the counseling and outreach
program at the Barker Hotel. Due to UMPA’s staffing and financial issues, these services
were not continued when the Barker reopened in January, 1995. Because the Counseling was
seen as critical to the tenants on the human level, and critical to the stability and operation
of the hotel on a property management level, PAHC has provide the counseling service since
that time. Staff and the CAC support PAHC’s proposal to provide this service, and
encourage them to continue to work with UMPA towards a mutually satisfactory arrangement
in the best interests of the Barker tenants and other members of the unhoused community.
Staff and the CAC did not recommend funding for the SRO service component due to the
timing of the project itself. The potential project currently contains too many unknowns to
tie up the public service funds. It was also felt that the limited public service funds should
not be used to fund an accessibility survey which would not address an actual problem.
URBAN MINISTRY OF PALO ALTO (UMPA) - Services for the Homeless
P. O. Box 213, Palo Alto, CA 94302
Funding
Request $62,500
Current Funding $60,000
Recommendation $58,000
4
Description
This agency provides emergency assistance and supportive services to the local homeless and
very low income population. Services include staffing of the drop-in center; case
management and money management assistance; administration of the rotating church shelter
program, the food closet, and prepared hot meal programs. Services at the drop-in center
include distribution of mail and messages, bus passes, personal hygiene items, counseling,
and referral to needed services.
Environmental
Not a Project under CEQA.
Recommcndati01a
Current contract objectives are being met with the exception of the clothes closet which still
does not have a permanent space from which to operate. For the period July 1, 1995 through
December 31, 1995, 76 persons were served by the rotating church shelter program
representing 2,670 bed nights. The average daily attendance at the Drop-In Center was 77
persons, and 12,600 sacks of groceries were distributed. 25 persons were contacted to begin
the Recovery Program,’ forming an initial group of 5 members.
Staff and the CAC recommend funding at the level of $58,000. This amount represents
$7,500 for audit costs as requested (a dual audit is anticipated for 1996/97 to accommodate
a change to a July 1, fiscal year), and a slight decrease in current administrative funds to
reflect the fact that the counseling service at the Barker Hotel will be provided by another
entity. Additionally, the scope of services will be revised to reflect the fact that funding is
being provided for specific. UMPA programs which deal with basic needs, such as the
provision of food and shelter.
Although UMPA is the only local provider of essential services for the unhoused and very
low income community, staff and the CAC are concerned that weak administrative and
financial management practices are having a negative impact on the availability of resources
and direct services to this population. A succession of staff’mg changes coupled with
decreases in funding have exacerbated UMPA’s organizational problems. The attached letter
from the CAC represents an effort to address the situation by assimilating current information
received from some members of the.unhoused community, from Uh~A’s most recent audit
(calendar year 1994), and from the Board and Management of UMPA directly.
Staff has also contacted HUD field office staff in San Francisco to request the provision of
federal technical assistance directly to the Urban Ministry. The hope is that this assistance
will enable UMPA to continue to establish and improve upon administrative systems and to
remain an eligible subrecipient of federal funds.
OlYrREACtt AND ESCORT, INC. - Special Needs Transportation
97 East Brokaw Road, Suite 140, San Jose, CA 95112
5
Funding
Request $8,000
Current Funding $4,000
Recommendation $6,t)00
Description
This proposal requests funding to provide farebox subsidies for low income disabled Palo
Alto residents registered through the County’s Special Needs Transportation program.
Outreach and Escort provides door to door paratransit services for eligible individuals unable
to independently access public lrLxed route (bus) transportation. In accordance with
transportation changes mandated by the Americans with Disabilities Act (ADA), the Santa
Clara County Transit District (SCCTD) contracts with Outreach and Escort to provide
services County-wide.
Environmental
Not a Project under CEQA.
Recommendation
Currem contract objectives are being met. 579 rides were subsidized during the first six
months of the current fiscal year. Due to the limited funds available, Outreach has carefully
screened potential beneficiaries through local public service agencies. It is anticipated that
the levels keep increasing as word of the program spreads. Staff and the CAC recommend
an increase in the amount of subsidy funds available due to the need to provide for additional
rides for those in desperate circumstances (i.e. undergoing dialysis or chemotherapy).
Although the Red Cross provided some of these rides in the past, they are no longer able to
handle this type of transportation request.
SANTA CLARA COUNTY BAR ASSOCIATION LAW FOUNDATION - Mental Health
Advocacy Project
111 West St. John Street, Suite #315, San Jose, CA 95113
Fundin~
Request $13,C~30
Currem Funding -0-
Recommendation -0-
Description
The Mental Health Advocacy Project provides legal advocacy on behalf of mentally or
developmentally disabled residents of Santa Clara County in the areas of care and treatment,
education, employment, housing, consumer rights, and f’mancial benefits. The proposal
requests funds to assist mentally disabled residents of Palo Alto in preventing homelessness
through legal advocacy, counseling, training, .technical assistance, and coordination with
other service providers.
Not a Project under CEQA.
Recommendation
Staff and the CAC do not recommend funding for this project due to the limited available
funding. Additionally, this project appears to duplicate some of the services available
through other local non-profit agencies.
COMMUNITY SERVICES AGENCY OF MOUNTAIN VIEW - Alta Vista High School
Case Management
204 Stierlin Road, Mountain View, CA 94043
Funding
Request $50,000
Current Funding -0-
Recommendation -0-
Description
The Community Consortium Project is seeking funding to provide for the needs of at-risk
students at Alta Vista alternative High School in Palo Alto. The application describes a
consortium consisting of Community Services agency of Mountain View (C.S.A.),
Community Health Awareness Council (CHAC), and local businesses who will all provide
pieces of a coordinated, integrated Program designed to help low-income, at-risk students
and their families. The program seeks to serve between 40 and 70 Palo Alto teenagers who
are unable to function in the local high school settings. A high percentage of the children
have adopted lifestyles which include gangs, alcohol or drugs, anti-social behavior, truancy,
and teen pregnancy as ways of coping. Funds would be used to provide case management
services designed to assess the student needs, provide counseling with the student and the
family, when necessary, and to support and encourage academic progress.
Environmental
Not a Project under CEQA.
Recommendation
Staff and the CAC are very supportive of the goals of this program. Funding is not
recommended, however, due to the limited available funding and the fact that housing related
activities remain the highest priority in the Consolidated Plan for the expenditure of CDBG
funds.
SANTA CLARA VALLEY MULTI-SERVICE CENTER - Project SHARE Homeless
Services
P. O. Box 1306, San Jose, CA 95109
7
Funding
Request $3,614
Current Funding -0-
Recommendation -0-
Description
The SCV Multi-Service Center was incorporated in 1991 in response to the need to track
shelter bed availability on a County-wide basis, and to develop a system for improving
communication, coordination, and resources for the homeless population. The agency’s
programs coordinate and support the efforts of other nonprofit agencies serving the homeless
in Santa Clara County. Project SHARE provides access to voicemail technology for
homeless individuals to assist in their search for housing, employment, or in securing
appointments for medical treatment or other services. This request is to provide voicemail
to clients of Innovative Housing, and for a two percent share of the cost of providing the
shelter hotline number.
Environmental
Not a Project under CEQA.
Recommendation
Staff and the CAC do not recommend funding for this program. It was felt that the voicemail
service would be valuable if coordinated with and available to clients of the Hotel de Zink
rotating church shelter program. However, until and unless the Urban Ministry is in a
position to coordinate and take on the administration of a new services, it does not seem
viable.
10.WINN, WOMEN IN NEED NOW - Family Day Care Apprentice Program
19925 Stevens Creek Blvd., Cupertino, CA 95014
Request $135,000
Current Funding -0-
Recommendation -0-
Description
WINN proposes to create a pilot vocational program which would provide technical skills for
low-income individuals intending to enter the child care field. The proposal requests funding
for subsidized employment training in a family day care home as well as classroom
instruction. The program would provide for the long-term and short-term economic needs
of the student, and the student’s child, if applicable, as well as benefit the day care provider
where the training will occur.
8
Not a Project under CEQA.
Recommendation
Staff and the CAC do no recommend funding for this project. The amount of money
requested is too large a commitment to an agency which does not have a proven track record,
and for a program which is not a high priority in the Consolidated Plan.
ADMINISTRATION
11.CITY OF PALO ALTO - DEPARTMENT OF PLANNING AND COMMUNITY
ENVIRONMENT Program.Administration/Project Delivery
250 Hamilton Avenue, Palo Alto, CA 94301
Funding
Request
Current Funding
Recommendation
$180,000 ($140,000 admin; $40,000 project delivery)
$179,725
$180,000
Description
Funding is for administrative management of the CDBG program and to provide project
delivery services to bring the proposed public service, public facility and housing production
or rehabilitation projects to completion. Funds will be used for administrative costs
associated with the overall management, coordination, monitoring and evaluation of the
CDBG Program as well as activities such as data gathering, studies, analysis, plan
preparation, and the identification of actions for implementation of plans..
Environmental
Not a Project under CEQA.
Recommendation
Recent and anticipated changes to HUD programs and systems have increased and will
continue to increase the amount of staff time spent on learning new regulations and
technology, and on preparing the required plans and reports. A newly required on-line
accounting and reporting system 0DIS) is expected to be implemented next fiscal year. The
additional administrative work has. created a backlog of public facility and housing
rehabilitation projects. It is anticipated that up to $8,000 of the budgeted funds will be
expended on contract services to provide assistance in completing the projects. Full funding
is recommended. The program administration budget has remained virtually unchanged since
1992/93.
12.MID-PENINSULA CITIZENS FOR FAIR HOUSING (MCFH) - Fair Housing Services
457 Kingsley Avenue, Palo Alto, CA 94301
Funding
Request $20,089
Currem Funding $16,275
Recommendation $19,000
Description
Agency provides investigation, counseling and legal referral for victims of housing
discrimination as well as community outreach and education regarding housing rights.
MCFH serves the mid-peninsula area from Redwood City through Cupertino/Sunnyvale and
Fremont. MCFH seeks to reduce discrimination in housing and provide redress for those
who have been discriminated against.
Environmental
Not a Project under CEQA.
Recommendation
Currem contract objectives are being met. During the first six months of the 1995/96 fiscal
year, the agency investigated 9 fair housing complaints, and provided 18 telephone
consultations. MCFH also helped provide information for the City’s Analysis of
Impediments to Fair Housing Choice, and has served as a resource on discussions relating
to escalating rents. Staff and the CAC recommend funding at an increased level to support
MCFH’s proposal for increased outreach activities including a special fair housing training
and an educational video for cable TV.
PL~LIC FACILITIES AND IMPROVEMENTS
13.PENINSULA CHILDREN’S CENTER (PCC)
3860 Middlefield Road, Palo Alto, CA 94303
Energy Efficiency Electrical Retrofit
Funding
Request $20,000
Recommendation -0-
Description
PCC provides services to children and adolescents with emotional and behavioral problems.
They conduct mental health and special education school/day programs as well as outpatient
mental health services. PCC provides a residential living facility for adolescents in Mountain
View facility, but recently closed the Palo Alto "Moving On" group facility. PCC has
merged with another non-profit community organization, Zonta, to form PCC/Z0nta. This
10
funding proposal is to upgrade the electrical and lighting systems in the offices and
classrooms of the organization’s Middlefield Road facility.
Environmental
Categorically exempt under section 15301 of CEQA, minor change to existing facilities.
Recommendation
Staff and the CAC do no recommend funding this project.
priority needs as established in the Consolidated Plan.
This project did not address
HOUSING PRODUCTION!HOUSING REHABILITATION
14.SENIOR COORDINATING COUNCIL
450 Bryant Street, Palo Alto, CA 94301
Senior Home Repair Program
Funding
Request $12,000
Current Funding $11,000
Recommendation $12,000
Description
This program provides subsid~ed home repair services to income eligible Palo Alto
homeowners who are 60 years of age or older. The program enables seniors to remain in
their own homes as long as possible, and helps to maintain the quality of the existing housing
stock within Palo Alto. Funds are used to provide subsidies for those unable to pay the fee
for. service. The program addresses the health, safety and housing needs of the low income
senior population.
Environmental
Environmental assessment (78-EIA-10) approved by Council. Implementation of project was
found not to be significant.Continued funding does not represent a change in the
environmental assessment.
Recommendatign
Current contract objectives have been met. Staff and the CAC recommend full funding for
this program which addresses the health, safety and housing needs of low income senior
homeowners.
11
15.CITY OF PALO ALTO - DEPARTMENT OF PLANNING AND COMMUNITY
ENVIRONMENT
250 Hamilton Avenue, Palo Alto, CA 94301
Housing Development Fund
Funding
Request $500,000
Current Funding $351,200
Recommendation $346,512
Description
The purpose of the Housing Development Fund is to assist in the development of a variety
of housing projects which will provide affordable housing to low and very low income
families, disabled, and single persons. Funds may be used for predevelopment expenses,
acquisition of land or existing buildings, rehabilitation costs or other CDBG eligible
expenses. The Housing Development Fund was created to provide funds on an ongoing basis
to actively facilitate the development, rehabilitation and preservation of low income housing
in Palo Alto. Housing development opportunities occur throughout the year and due to the
nature of the real estate market, a quick response is frequently necessary. The City will
administer the fund and work closely with nonprofit housing developers and supportive
housing providers on project proposals in order to increase the supply of affordable housing
in Palo Alto. The Housing Development Fund will include funds from several sources
primarily CDBG, City Housing Reserve and HOME funds. Each funding source is
accounted for separately. Staff will return to Council for approval for funding of specific
projects from the Funds. Funding during 1996/97 may be needed for projects such as: SRO
apartments on Alma (new construction, 106 units); Housing for Developmentally Disabled
(new construction, 24 units); the 651 Hamilton BMR requirement (leverage for units in
excess of the approximately required units).
The CDBG fund has a current balance of approximately $625,000, and the housing mitigation
fund has a balance of approximately $475,000. There are no HOME funds available.
Environmental
Prior to development of specific applications, complete environmental records, satisfying
HUD and CEQA requirements, will be prepared.
Recommendation
Staff and the CAC recommend funding at the $346,512 level. The City of Palo Alto
Consolidated Plan and the Housing Element both emphasize the great need for affordable
housing for low and very low income households in Palo Alto.
12
16.MID-PENINSULA HOUSING COALITION (MPHC)
658 Bair Island Road, suite 300, Redwood City, CA 94063
Palo Alto Housing for Developmentally Disabled, Page Mill/Ash, Palo Alto
Request $711,000
Recommendation $711,000 (from existing housing development fund resources:
$411,000 from the CDBG housing development fund, and $300,000 from the Industrial
Commercial Housing In-Lieu Fund). These allocations will require further council
action at a later date.
Description
This project proposes to construct a new 24-unit residential development in Palo Alto for
developmentally disabled adults who are capable of independent living. The project location
is the .75 acre parcel at the comer of Page Mill and Ash in Palo Alto. MPHC has an option
agreement to purchase the land from the County of Santa Clara, and has received an award
of HUD Section 811 funds which will provide both a capital advance and operating
assistance. The development concept features three building clusters with all entries
internalized off of small building courts. One and two-bedroom units are .planned, with
common areas which include a laundry room, a meeting/entry area, counselor’s room, public
restrooms, a manager’s office, and a community room with a kitchen for social events and
educational activities.
Environmental
An environmental assessment recommending a mitigated negative declaration (96-E1A-3) has
been prepared for the project and is currently being reviewed with the project application by
the Architectural Review Board, the Planning Commission and the City Council.
Recommendation
Staff and the CAC recommend funding for this project. It is consistent with the Consolidated
Plan’s emphasis on affordable housing needs. These funds are being leveraged with the HUD
811 award, as well as with funds from other Santa Clara County jurisdictions who have been
asked to participate in funding.
17. INNOVATIVE HOUSING FOR COMMUNITY (I~
2171 East Francisco Blvd., Suite L, San Rafael, CA %901
Rehabilitation of Shared Transitional House at 2800 Illinois St., East Palo Alto
13
Funding
Request $21,000
Recommendation $21,000
Description
Innovative Housing’s transitional housing program provides low income individuals and
families with up to two years of rent-subsidized housing and the supportive services needed
to transition into permanent housing. The four bedroom single family residence on Illinois
Street in East Palo Alto provides affordable housing and supportive services for four formerly
homeless single parent families and their children. The project beneficiaries include
individuals in recovery from substance abuse, women fleeing situations of domestic violence,
children and youths who are members of at-risk families, individuals with physical and
mental health disabilities, and persons living with AIDS and HIV.
The property is owned by IH and was purchased in 1991 with the help of Palo Alto CDBG
funds. The project requests rehabilitation costs to repair and improve the residence. The
total project costs are estimated at $41,800 and include repaving the walkway and driveway,
repairing the brick and stucco exterior, creating a children’s play area, upgrading the kitchen
and laundry room, and other miscellaneous repairs.
Environmental
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Recommendation
Staff and the CAC recommend funding for this project since it will retain needed affordable
housing for a very vulnerable group. Innovative Housing has leveraged the CDBG funds by
requesting funding for the other half of the project from other sources.
18. COMMUNITY HOUSING, INC.
656 University Avenue, Palo Alto, CA 94301
Project Title
Air conditioning for Lytton Gardens I
Funding
Request $81,056
Recommendation -0-
Description
Community Housing, Inc. owns and manages Lytton Gardens I, a 268 unit residential facility
providing subsidized housing for low income seniors. This proposal requests funding for an
air conditioning system to cool the hallways and other common areas of the building during
periods of extreme heat.
14
19.
20.
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Recommendation
Staff and the CAC do not recommend funding for this project. Although the high
temperatures are most certainly a problem for the elderly residents, there was no indication
that the solution proposed would alleviate the problem for the tenants. The proposal
suggested that the hallways be cooled and that residents could then open their doors to bring
the cooler, air into their units. It was felt that some type of independent analysis should be
conducted by a HVAC specialist to determine the most effective and appropriate way to cool
the units. There was also no indication that the estimates included the required prevailing
wage rates, which could substantially increase the cost.
PALO ALTO HOUSING CORPORATION (PAHC)
540 Cowper Street, Suite 201, Palo Alto, CA 94301
Arastradero Park Apartments Water Replacement System, 574 Arastradero Rd.
Request $286,380
Recommendation $286,380
Description
PAHC seeks funding to replace the water supply pipe system at the Arastradero Park
Apartments. The 66 unit family complex was acquired by Arastradero Park Apartments
Corporation (APAC), an affiliate of PAHC, in 1995. The complex was a HUD Section 236
subsidized project in danger of converting to market rate housing. The project contains one,
two, three and four bedroom apartments providing affordable housing to small and large
families. This proposal is to replace and correct the water supply system which is clogged
and corroded, and presents severe water pressure problems.
Envirgrtrnerltal
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Recommendation
Staff and the CAC recommend that this project be funded. PAHC has explored other
options, but it doesn’t appear that the water supply problem can be resolved by other means.
Replacement of the entire system appears to be the most prudent course of action.
PALO ALTO HOUSING. CORPORATION
540 Cowper Street, Suite 201, Palo Alto, CA 94301
15
21.
Emerson North Apartments Rehabilitation, 3051-3061 Emerson Street
Fundin~
Request $69,300
Recommendation $69,300
Description
PAHC seeks funding for a housing rehabilitation project at Emerson North Apartments. The
six studio unit complex was purchased in 1994. It provides permanently affordable rental
housing to small (one or two person) households. City Housing Reserve funds were used for
the purchase. Low rent levels were established as part of the financial analysis with the
understanding that the City would assist in needed rehabilitation efforts with CDBG or
HOME funds. The project includes extensive walkway and paving repairs, repair of dry rot
damage, replacement of deteriorating wooden windows, painting, electrical upgrades,
appliance and other necessary replacements.
Environmental
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Recommendation
Staff and the CAC recommend funding for this project. Rehabilitation work will address
priority rental housing rehabilitation needs in the Consolidated Plan and provide the
rehabilitation assistance Council intended when the acquisition was approved.
PALO ALTO HOUSING CORPORATION
540 Cowper Street, Suite 201, Palo Alto, CA 94301
Waldo Apartments Rehabilitation, 3030-3049 Emerson Street
Funding
Request $49,171
Recommendation -0-
Description
PAHC seeks funding for a housing rehabilitation project at the Waldo Apartments. This is
a six unit property of one and two bedroom units. Four of the units are subsidized and two
are rented at market rates. The project includes re-roof’mg, paving and painting, and other
miscellaneous replacements. Additionally, the project seeks funds to refmance the loan at
more favorable rates.
16
22.
Environmental
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Reco~endation
Staff and the CAC do not recommend funding for this project. PAHC recently indicated that
the ref’mancing costs would not be necessary, since the prepayment penalty was no longer an
issue. PAHC should reconsider the rehabilitation work in light of the new income and
expense proforma using the lower interest rates.
PALO ALTO SENIOR HOUSING PROJECT, INC. (STEVENSON HOUSE)
455 E. Charleston Rd., Palo Alto, CA 94303
Roof’mg of Buildings A and B
Funding
Request $110,000
Recommendation -0-
23.
Description
Stevenson House is a senior residential facility providing 109 units of affordable housing for
approximately 135 independently functioning, older adults. Funds are requested to re-roof
two of the three buildings in the complex.
Environmental
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Recommendation
Staff and the CAC do not recommend funding for this project due to the limited available
funding through the CDBG program. The urgency of this project was not considered as high
as the other projects recommended for funding.
SOCIAL ADVOCATES FOR YOUTH
1072 Saratoga-Sunnyvale Road, #A-208, San Jose, CA 95129
Rehabilitation of CASA-Say Group Home at 509 View St., Mountain View, CA
Funding
Request
Recommendation
$5,000
$5,000 (from current year contingency funds)
17
24.
Description
This request is for an additional $5,000 for the rehabilitation project at the agency’s
runaway/homeless youth shelter. $20,000 in CDBG funds have been allocated to this project
in previous grant years. Due to a number of problems, the cost of the rehabilitation increased
dramatically. After this application was received, it was noted that the additional funds were
needed prior to the beginning of next fiscal year.
Environmental
Categorically exempt under Section 15301 of CEQA, minor change to an existing facility.
Recommendation
Based on the special project circumstances, and the urgent need of the project to continue on
schedule, the City Manager approved the additional expenditure from current funds in the
contingency account. A separate informational CMR is being prepared for Council
explaining the expenditure in more detail. Staff and the CAC support this action.
EMERGENCY HOUSING CONSORTIUM (EHC)
P. O. Box 2346, San Jose, CA 95109
New Regional Emergency Shelter and Reception Center for the homeless at 2011 Little
Orchard Street in San Jose.
Funding
Request N/A
Recommendation Support
Description
This application is an update on the proposed regional shelter and reception center to serve
homeless persons in the San Jose area. The Palo Alto City Council allocated $50,000 in
fiscal year 1994/95 CDBG funds for the acquisition/rehabilitation of a 250 bed facility be
located at 1020 Timothy Drive in San Jose. The reception center is intended to replace the
beds which will be lost when the National Guard Armories close in 1997. However, in
response to neighborhood and community concerns, the Mayor of San Jose convened a
working group to develop criteria for the siting of emergency shelters within the City. The
working group established a criteria that would allow up to 125 beds of emergency shelter
with the option to increase the number of beds to 250 during the winter months, or as deemed
necessary by the City. The Timothy Drive site was replaced by a proposed site at 2011 Little
Orchard in San Jose which fits the established siting criteria. EHC has requested that the
Palo Alto CDBG funds provided for the Timothy Drive site in 1994/95 be reprogrammed to
the Little Orchard site. The 2.44 acre site is under contract, and EHC is in the process of
applying for a Conditional Use Permit (CUP). There is a single story, 35,220 square foot
18
building on the property which will need to undergo rehabilitation. The total project cost,
including acquisition and rehabilitation, is estimated to be $3,844,000
Environmental
The City of San Jose is the lead agency on this project and is in the process of preparing the
environmental documentation.
Recommendation
Staff and the Citizens Advisory Committee support the application to transfer the $50,000 to
the site at 2011 Little Orchard Street in San Jose subject to compliance with all federal
regulations, a favorable appraisal, appropriate zoning and environmental assessments, and
the approval of the City of San Jose as the lead CDBG agency.
19
ATTACHMENI C
To:
From:
Date:
Palo Alto City Council
Urban Ministry of Palo Alto Board of Directors
CDBG Citizens Advisory Committee
March 7, 1996
Re:Urban Ministry of Palo Alto CDBG Funding Request -- 1996-97
The Urban Ministry of Palo Alto (UMPA) has applied to the City of
Palo Alto for a $62,500 Community Development Block Grant (CDBG) for
1996-97. UMPA has previously received similar grants from the City,
including a $60,000 grant for 1995-96.
This Committee recommends that this year the City grant to UMPA
$58,000 from the City’s CDBG funds, but that the City (1) place strict limits on
the use of these funds and require that immediate steps be taken to improve
the organization’s finandal administration before any funds are disbursed,
and that (2) UMPA’s board of directors pursue additional substantial reforms
before the City provides grants in future years.
We make these recommendations mindful of the high regard that the
Palo Alto community has for UMPA, the value of UMPA’s services for those
who are unhoused or in poverty, and the hard work and goodwill of UMPA’s
board, staff and volunteers. We hope these recommendations help UMPA,
just as UMPA helps those it serves.
Our Committee is not the appropriate forum for addressing all of the
issues surrounding both UMPA’s work and homelessness and poverty in
Palo Alto. Beyond fulfilling our CDBG advisory role, we hope that our
recommendations contribute in a positive way to" the larger community
discussion of these issues. We expect that discussion to be carried forward by
UMPA, its clients, its funders, the Homelessness Task Force, the Human
Relations Commission, the City Council; non-profit service providers,
religious institutions, the business community, the press, and interested
community members.
I. Limits on CDBG Grant
This Committee recommends a "back to basics" grant for UMPA to use
primarily to meet the immediate needs of its clients. The money should be
distributed only after the City is assured that the funds will be administered
properly.
A. Use of the Grant
Two-thirds of the grant shall be used to fund the purchase and
distribution of tangible goods -- food, clothing, bus passes, toiletries, towels,
storage lockers -- to UMPA clients. No more than one-third of the grant shall
be used to fund administration, overhead, or programs that reach beyond
immediate needs.
The purposes of this limitation are:
1. To have UMPA better meet the immediate needs of its clients;
2. To focus UMPA on the need to pay better attention to the small but
essential details of delivering critical goods and services;
3. To restrict funding for staff and program activities that are in
greatest need of reform.
The two-thirds portion of the grant may also be used to set up systems
that help UMPA deliver tangible goods, as well as services for which t.here is
an immediate need. For example, a clothing donation drop-off site and an
improved system for clients to receive messages have been suggested by
UMPA clients.
While a need continues to exist for job-training, counseling, recovery
programs and other long-term solutions to homelessness and poverty, we
believe that UMPA needs first to do a better job of meeting the daily living
needs of its clients and to improve its operations.
B. Organizational Improvements Required for Funds Dispersal
The CDBG funds should not be released to UMPA until it has hired a
competent financial administrator and made significant progress towards
improving its financial practices, as determined by the City’s CDBG
Coordinator. Each month UMPA shall provide to the City a copy of its
monthly financial statement..
UMPA’s financial management systems are in disarray. The letter
dated February 7, 1996 from UMPA’s 1994 auditors made 24 specific
suggestions for change. We urge UMPA to implement these changes as soon
as possible. The auditor expressed the verbal opinion that UMPA’s financial
practices have been sloppy but not dishonest.
UMPA must work quickly to restore the trust of the City and its other
funders in UMPA’s ability to manage and spend its money effectively.
II. Organization~. Improvement
To remain competitive to receive CDBG funding from the City in
future years, we strongly urge UMPA to improve its operations by
undertaking the following reforms, in the order listed:
1. Board Development -- Every UMPA board member clearly brings to
his/her service a sincere commitment to the issues UMPA addresses. Their
willingness to volunteer, deserves the grateful thanks of the entire
community. The need is to add more sophisticated capacity to lead and.
oversee a non-profit corporation with an annual budget of over a half.
million dollars.
Existing board members should receive training in the basics of non-
profit board service: accounting, la~, program development, fundraising,
staff supervision, and communication. In particular, the board president
must be able to communicate with UMPA clients, funders, his fellow board
members, the public, and the press with care and finesse.
New board members should be recruited who have relevant business
and non-profit management experience.
2. Mission State~,~n~t-. Once the board has been strengthened, UMPA should
revisit its missior/-~tatement. Originally a ministry that operated a limited
drop-in service, .UMPA has grown into a more full-service social service
agency. What is it~ appropriate role? The board’s answer will give needed
guidance to UMPA’s programs and budgetary decisions.
3. Programs -- UMPA’s~ programs should be structured to pursue directly the
mission defined by the board. While the staff will in most instances develop
.the detailed content of the programs, the board must make sure that the
programs remain consistent with the mission of the organization.
4. Staffing -- Once the strengthened board has clarified UMPA’s mission and
programs, it should then re-evaluate its existing staffing structure. Have the
appropriate positions been defined? Are the appropriate people, with the
appropriate skills, filling those positions? The board must answer these
questions for itself, and act on its answers.
5. Relationships -- A revitalized UMPA should pay particular attention to
the quality of its relationships with both its clients and other agencies whose
services could help UMPA clients. A regional approach to issues of
homelessness and poverty should improve service delivery, provide cost
savings, and improve the chances for long-term solutions to clients’
problems.
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