HomeMy WebLinkAbout1999-05-10 City Council (13)City
City of Palo Alto
Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
9
DATE:
SUBJECT:
MAY 10, 1999 CMR:233:99
PUBLIC HEARING: FISCAL YEAR 1999/00 COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING ALLOCATIONS
AND ANNUAL ACTION PLAN UPDATE OF THE
CONSOLIDATED PLAN FOR THE PERIOD 1995 - 2000
RECOMMENDATION
Staff recommends that the City Council:
Adopt the attached Resolution and the Annual Action Plan establishing funding
allocations for the 1999/00 Community Development Block Grant (CDBG) Program
as recommended by the Finance Committee.
Authorize and direct staffto carry out any further required environmental assessments
and certifications for each project under the California Environmental Quality Act
(CEQA) and the National Environmental Policy Act (NEPA) prior to the commitment
of funds.
Authorize and direct the City Manager, or designee, to execute and submit the
1999/00 CDBG application and other documentation necessary to file the application
with HUD, and to otherwise bind the City with respect to the application, by the May
15, 1999 deadline.
BACKGROUND ,
The purpose of the May 10, 1999 public hearing is for the City Council to review and act on
the recommendations of the Finance Committee regarding the Fiscal Year 1999/00 CDBG
funding allocations. The required 30-day public review period for the 1999/00 Annual
Action Plan began on April 1, 1998 and ended on April 30, 1999. The attached staff report
(CMR 189:99) provides background information on the 1999/00 process, the funding
proposals and the staff and Citizens Advisory Committee (CAC) funding recommendations.
CMR:233:99 Page 1 of 4
The Draft Action Plan has been amended to reflect the Finance Committee funding
recommendations.
DISCUSSION
Following public testimony at the April 6, 1999 Finance Comm, ittee Public Hearing, the
Finance Committee reviewed and discussed the various proposals.
After its discussion, the Finance Committee approved the following recommendation to the
Council:
1)the acceptance of the staff and CAC recommendations for funding in the
Public Services category with the exception of not funding the $60,000 Palo
Alto Police Department Health and Safety Team Proposal.
2)
3)
the acceptance of the staff allocation for funding in the Administration
Category.
the acceptance Of the staff recommendation for funding in the Capital Projects
Category with the exception of allocating $60,000 to the Alliance for
Community Care’s Waverley House Project.
4)holding the $60,000 Palo Alto Police Department Health and Safety Team
Proposal in Committee for further discussion.
5)holding in Committee for further discussion a proposal that $31,000 in General
Fund dollars be allocated for Urban Ministry’s Food Program through the
Division of Human Services.
In response to a question.by Council member Wheeler, the Finance Committee was informed
that all of the available CDBG capital funds needed to be directed toward the repayment of
the interim loan from the Commercial Housing In-Lieu Fund for the Palo Alto Gardens
Apartments acquisition. To clarify that response, although staff does advise using the
maximum amount of CDBG funds available to repay the interim loan, the Council may, in
fact, choose to allocate a lesser amount to the repayment, and allocate CDBG funds to other
capital projects.
The Housing Reserve Fund Guidelines were adopted by Council on February 3, 1986 and
were amended on November 19, 1990 to allow for loans from the Commercial In-Lieu Fund
to the Residential In-Lieu Fund on a case-by-case basis as determined by the Council. The
$725,000 interim loan for the Palo Alto Gardens project is expected to be repaid with an
allocation of 1999/00 CDBGfunds as well as from future fee revenue in the Residential In-
Lieu Fund. It is estimated that approximately $475,000 in Residential In-Lieu Fund fee
CMR:233:99 Page 2 of 4
revenue could be collected in 1999 based on approved projects which are either under
construction or expected to begin construction this year.
Attachment B summarizes the applications for 1999/00 CDBG funding, and the differing
allocation recommendations of the CAC, staff and the Finance Committee.
RESOURCE IMPACT
The Finance Committee’s recommendations could increase the amount of General Fund
budget obligations by $91,000 if both the Urban Ministry and the Palo Alto Police
Department proposals are funded from the General Fund.
POLICY IMPLICATIONS
All of the recommended funding allocations are consistent with the priorities established in
the City’s Consolidated Plan for the period 1995 -2000 and with the housing programs and
policies contained in the adopted 1998-2010 Comprehensive Plan.
TIME LINE
Following the adoption of the funding allocations for 1999/00, the HUD Annual Action Plan
update and application for funding will be submitted to HUD by the May 15, 1999 deadline.
The 1999/2000 CDBG Program year begins on July 1, 1999.
ENVIRONMENTAL REVIEW
For purposes of the California Environmental Quality Act (CEQA), budgeting is not a
project. Under the project descriptions section in Attachment B of attached CMR: 189:99,
the environmental assessment under CEQA has been identified for each project. 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 the required environmental reviews or assessments, and certify that the review
procedures under CEQA, and HUD and NEPA regulations have been satisfied for each
particular project.
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
Attachment D:
Resolution
Chart of 1999/2000 CDBG Applications, and staff, CAC, and Finance
Committee Allocation Recommendations
CMR 189:99 Dated April 6, 1999 (w/Attachments B and C)
Revised Draft 1999/2000 Annual Action Plan
CMR:233:99 Page 3 of 4
PREPARED BY: Suzanne Bayley, CDBG Coordinator
DEPARTMENT HEAD:
G. ED~VARD GAWF ~
Director o.f Planning and C Environment
CITY MANAGER APPROVAL:
Manager
cc:CDBG Citizen’s Advisory Committee Members
Applicant Agencies
CMR:233:99 Page 4 of 4
ATTACHMENT A
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
APPROVING THE USE OF COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDS FOR FISCAL YEAR 1999-2000
WHEREAS, on May i, 1995, the ’Palo Alto City Council
approved and adopted a document entitled ~Consolidated Plan", which
identified and established the Palo Alto housing and non-housing
community development needs, objectives, and priorities for the
period of July I, 1995 to June 30, 2000; and
WHEREAS, the 1999-00 Action Plan, the annual update to the
Consolidated Plan, was subjected to public review and commentary
during the period of April i, 1999 through April 30, 1999; and
WHEREAS, the potential uses of Community Development Block
Grant ("CDBG") funds were evaluated in light of the needs and
objectives identified in the Consolidated Plan and reflected in the
recommendations and comments of the Citizens Advisory Committee and
other interested citizens; and
WHEREAS, under the CDBG program, the highest priority is
given to activities which will benefit persons with low and
moderate incomes; and
WHEREAS, the City Council and the Finance Committee of the
.City Council have held publicly noticed public hearings on the
proposed uses of the CDBG funds for fiscal year 1999-00; and
WHEREAS, the fiscal year 1999-00 CDBG funds allocated to
the City are proposed to implement the following programs;
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
SECTION I.’ The uses of CDBG funds for fiscal year 1999-00
are hereby approved and authorized for the following programs:
Catholic Charities of Santa Clara County.
Long Term Care Ombudsman Program.
Complaint investigation and advocacy
services to Palo Alto’s elderly residents
living in nursing and residentia! care
facilities. City-wide.8,000
°Emergency Housing Consortium. EHC
provides temporary shelter and supportive
services for homeless individuals and
families. County-wide.8,000
990422 lac 0090150
o
°
Palo Alto Housing Corporation. Project
is to provide information and referral
services for affordable housing options
in Palo Alto and surrounding communities,
and the publication of a housing directory.
City-wide.
Palo Alto Housing Corporation. Supportive
counseling program for low income residents
of the Barker Hotel at 439 Emerson Street
in Palo Alto.
Mid-Peninsula Citizens for Fair Housing.
MCFH provides services to promote fair
housing, including complaint investigation,
counseling, advocacy and education.
City-wide.
City of Palo Alto. Department of Planning
and Community Environment. Overall CDBG
grant administration and capital improve-
ment project delivery costs associated
with federal funding. City-wide.
Mid-Peninsula Housing Coalition.
Acquisition and rehabilitation of 156-unit
Palo Alto Gardens Apartments at 648 San
Antonio Road, Palo Alto. The purchase
will preserve units as low-income
housing. The funding will be used to
repay the bridge loan from the City’s
Residential Housing-In-Lieu Fund for
the acquisition.
Alliance for Community Care Rehabilitation
of single-family residence at 650 Waverley
Street for use as a board and care home
for persons with mental illness.
25,000
16,450
18,000
130,000
658,550
60,000
TOTAL:$ 924,000
SECTION 2. The total amount set forth under Section 1 of
this resolution hereby represents the proposed allocation of
$738,000 in CDBG funds, from the United States Department of
Housing and Urban Development ("HUD") for fiscal year 1999-00,
$45,000 in anticipated program income for fiscal year 1999-00,
$50,000 in prior years program income, and $91,000 in reallocated
funds.
SECTION 3. The City Manager is hereby authorized to expend
the money in the $i0,000 CDBG emergency contingency account,
created under Resolution No. 6897, on an emergency basis in her
discretion for existing or additional CDBG-eligible programs or
990422 lac 0090150
2
projects. The City Manager is further directed to report to the
City Council following the occurrence of any such expenditures.
SECTION 4. The City staff is hereby authorized to submit
the 1999-00 annual Action Plan update and appropriate application
forms to HUD for the fiscal year 1999-00 CDBG funds, and such money
shall be spent as set forth in £his resolution. The Mayor, City
Manager and any other designated City staff or officials are
hereb~ authorized to execute such application forms and any other
necessary documents to secure these funds.
SECTION 5. The City Council hereby finds that the fiscal
year 1999-00 CDBG program authorized under Section 1 of this
resolution is not a project under the California Environmental
Quality Act (~CEQA"). However, the Council further authorizes and
directs City staff to conduct any further environmental review, and
prepare any additional environmental assessments and certificates
that may be required, under CEQA and the National Environmental
Policy Act (NEPA) for each project under the fiscal year 1998-99
CDBG program prior to the release of funds for any such project.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED AS TO CONTENT:
CDBG Coordinator
Mayor
City Manager
Director of Planning
and Community Environment
Director of Administrative
Services
990422 lac 0090150
City
ATTACHMENT C
City of Palo Alto
Manager’s Report
TO:
ATTENTION:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
3
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:
SUBJECT:
APRIL 5, 1999 CMR:189:99
PROPOSED FISCAL YEAR 1999/2000 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FUNDING
ALLOCATIONS AND DRAFT ANNUAL ACTION PLAN
UPDATE OF THE CONSOLIDATED PLAN FOR THE PERIOD
1995 - 2000
REPORT IN BRIEF
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 program year 1999-2000. The City received 19 applications for funding totaling
$2,003,724. The. amount available for allocation in program year 1999/00 is $924,000.
Attachment A summarizes the funding requests, and Attachment B provides an analysis of
specific funding requests hnd recommendations. Staff and the CAC did not concur on all
recommendations. The CAC recommendations are presented as alternatives to the staff
recommendations in this report.
RECOMMENDATION
Staff recommends that the Finance Committee recommend to the City Council approval of
the following:
The funding allocations, as recommended by staff in Attachments A and B, be
included in the final 1999/00 Community Development Block Grant (CDBG) Action
Plan.
o Staff be authorized to submit to the Department of Housing and Urban Development
(HUD), by the May 15, 1999 deadline, the Action Plan for the expenditure of
1999/00 CDBG program funds.
CMR:189:99 Page 1 of 7
o The City Manager, on behalf of the City, be authorized to execute the 1999/00 HUD
application and Action Plan for CDBG funds, and any other necessary documents
concerning the application, and to otherwise bind the City with respect to the
application.
BACKGROUND
The City of Palo Alto receives funds annually from HUD as an entitlement City under the
CDBG Program, authorized by Title I of the Housing and Community Development Act of
1974, 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."
On December 13, 1993, the City Council adopted a Citizen Participation Plan which provides
for a nine-member CDBG Citizens Advisory Conmaittee (CAC), selected by the Mayor. The
CAC process encourages public participation in the CDBG allocation process. To provide
coordination between the Human Service Resource Allocation Process (HSRAP) and the
CDBG funding allocation process, a member of the Human Relations Connnission (HRC)
occupies one of the CAC slots. This year’s Cormnittee included: Jonathan Foster, Louis
Kavanau, Adele Khabbaz (HRC Liaison), Liza Kniss, Trina Lovercheck, David Negrin,
Sigrid Pinsky, Jennifer Rothstein, and Joe Villareal. Trina Lovercheck was selected to be
the spokesperson for the CAC this year.
Applications for 1999/00 funding were mailed to more than 75 area housing and human
service providers on November 2, 1998. A notice announcing the availability of applications
for 1999/00 CDBG funding was also published in the Palo Alto Weekly on November 4,
1998. Completed applications were due by 5:00 p.m. on December 18, 1998.
All funding appiications were reviewed by staff for compliance with Federal project
eligibility requirements. Additionally, all applications were evaluated based on the needs and
priorities identified in the City of Palo Alto’s adopted Consolidated Plan for the period
July 1, 1995 to June 30, 2000. The priority for creating and retaining affordable housing
remains the highest funding priority for the use of CDBG funds. The funding priorities used
for fiscal year 1999/00 are sunm-tarized on Attachment C. The CAC held public meetings
on January 7, 12, 21, and 26, and February 4, 9, 18, and 22, 1999. Staff and the CAC
reviewed and discussed the funding requests, and interviewed all of the applicant agencies.
HUD regulations require that all activities must ineet one of the three national objectives of
the CDBG Program:
1)Activities which benefit low and very low income persons. (For HUD purposes, this
is defined as 64 and 50 percent of Santa Clara County median income, or $53,100 and
$41,300 respectively, for a family of four);
CMR: 189:99 Page 2 of 7
2)
3)
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 projects benefiting low and
very low income persons.
The three primary CDBG program activity areas are:
Housing/Communi _ty Development - Capital Improvements
The primary focus of the CDBG program is on capital projects or development
activities such as new housing, land acquisition, relocation, architectural barrier
removal, site clearance, housing rehabilitation, historic preservation, economic
development, or similar activities. There are no Federal funding limitations in this
category.
Public Services
Social service activities such as homelessness prevention, child care, senior services,
etc. may be funded under this category. Federal regulations limit public service
funding to a maximum of 15 percent of the annual grant and program income. The
maximum funding in this category for fiscal year 1999/00 is $117,450. This is the
same amount that was available and allocated in fiscal year 1998/99.
Program Administration
The contract for fair housing services and City staff time spent on overall CDBG
program administration, affordable housing development, and various planning
studies are eligible for reimbursement under this categol:y. Funding for 1999/00 is
limited to $156,600, or 20 percent of the grant and program income.
Draft 1999-2000 Action Plan
In accordance with HUD regulations, the draft 1999/00 Annual Action Plan (Attachment D)
lnUSt be available for a 30-day public review and comment period. This year the comment
period begins on April 1, 1999, and ends on April 30, 1999. An ad was published in the Palo
Alto Weekly on March 31, 1999 to inform interested members of the public about its
availability. Notices were also mailed to all the applicant agencies, and other interested
parties. The draft Action Plan contains City staff funding recommendations, but will be
revised to reflect the allocations adopted by the City Council prior to its submission to HUD.
CMR: 189:99 Page 3 of 7
DISCUSSION
Attachment A is a chart showing the applications received and the CAC and staff funding
recommendations. Attachment B is a narrative explaining the proposals and the funding
recommendations in more detail. Staff and the CAC have identical recommendations in the
Public Service category, but have differing recommendations in the Program Administration
and Capital Improvement categories.
The staff and CAC recommendations reflect a lengthy discussion regarding the funding for
homeless services. Staff and the CAC agreed not to recommend continued funding for the
Urban Ministry of Palo Alto. The zero funding recommendation is based on the agency’s
continuing managerial and administrative difficulties, and a decision to focus limited
resources on programs which fill a gap in the service continuum. Staff and the CAC support
funding for the Palo Alto Police Department/County Mental Health Homeless Outreach
Team application. The PAPD has indicated that a minimum funding level of $60.,000 is
needed to initiate the program. Staff and the CAC are also recommending increasing the
amount of funding for the Palo Alto Housing Corporation’s Barker Hotel tenant support
application from $5,000 to $16,450. Some of the low income residents have disabilities, and
many were previously homeless. The effectiveness of additional casework and supportive
services for the tenants has dramatically stabilized their lives and increased their ability to
remain housed. The Council could choose to redirect these funds, but no more than $117,450
may be allocated to activities in this category.
In the Program Administration category, the CAC does not recommend expending $130,000
to reimburse the City of Palo Alto for its costs associated with administering the CDBG
program. The CAC believes the cost of CDBG program administration should be borne by
the City’s General Fund in light Of the extraordinary needs and demands on the HUD
funding. The staff recommendation is to reimburse the $130,000 of program administration
costs to the City.
Thestaff and CAC recommendations also differ in the Housing/Community Development -
Capital Improvement category. Staff recomrnends expending $658,550 on the acquisition
of Palo Alto Gardens Apartments, and the CAC recommends expending $500,000. The CAC
also recommends $50,000 in funding for The Emergency Housing Consortium’s proposal
for transitional housing for homeless families, and $238,550 for the proposal by Alliance for
Cornmunity Care to rehabilitate a downtown residential facility to be used as a board and
care home for the mentally ill.
Palo Alto Gardens Apartments
In November 1998, Mid-Peninsula Housing Coalition (MPHC) successfully negotiated a
purchase agreement with the owners of another affordable housing project in Palo Alto
which was at risk of converting to a market rate rental project. Consequently, the 156-unit
Palo Alto Gardens Apartments project became a viable affordable housing opportunity in
fiscal year 1998/99.
CMR: 189:99 Page 4 of 7
On November 23, 1998, at the request of MPHC, the Palo Alto City Council made a $1
million loan commitment to the project. This was done so that MPHC could complete its
funding package and proceed with financing applications for tax exempt bonds and low-
income housing tax credits in a timely fashion. A specific funding source was not identified
at the time due to the fact that the City had just expended all of its CDBG and Residential
Housing In-Lieu funds on the 56-unit Sheridan Apartmerit acquisition.
Several funding strategies were pursued for the acquisition. City staff applied to the State
of California for an $835,000 grant from the Federal HOME program, which was not
approved, and explored the possibility of securing a Federal Section 108 Loan Guarantee,
which was deemed not feasible. Staff also applied to HUD for authorization for payment of
pre-award costs so that 1999/00 CDBG funds could be used to reimburse the City for
1998/99 expenditures relating to Palo Alto Gardens Apartments. In order for the City to
apply to HUD for pre-award costs, the Annual Action Plan needed to be amended to include
Palo Alto Gardens as a potential activity to be undertaken in fiscal year 1998/99. HUD
approved the City’s request for pre-award costs for the acquisition of Palo Alto Gardens
Apartments on March 5, 1999, and the City Council approved the Amended 1998/99 Action
Plan at a public hearing on March 15, 1999. Also on March 15, 1999, Council committed
$275,000 from the City’s Residential Housing In-Lieu Fund, and "loaned" $725,000 from
the Commercial Housing In-Lieu fund for the acquisition. The 1999/00 CDBG funds will
be used to repay the Commercial Fund. The balance of the loan not reimbursed by CDBG
funds will be repaid to the Commercial Fund from future deposits to the Residential Fund.
ALTERNATIVES TO STAFF RECOMMENDATION
The CAC reconmaendations are presented as alternative funding strategies below:
1)Administration - In the 1998/99 fiscal year the City’s reimbursement from the CDBG
program was reduced from $180,000 to $130,000 in light of a reduction in the overall
funding available. The difference between the actual cost of the administrative dnd
project delivery expenses and the CDBG reimbursement will be borne by the City’s
General Fund. The cost of administering the CDBG Program varies each year with
the number of projects and activities, but is approximately $200,000. This includes
salaries, benefits and direct costs. Council could choose to reimburse the General
Fund for CDBG expenses from $0 to $155,600 (20 percent of grant and program
income).
2)Capital - The CAC has recommended a reduced amount of funding to repay the
interim loan for the Palo Alto Gardens Project so that a portion of the CDBG capital
funds can be allocated to two other housing projects -- The Alliance for Community
Care Waverley Street House, and the Emergency Housing Consortium’s Sobrato
Family Living Center. Council could choose to repay all or most of the loan with
1999/00 CDBG funds, or choose to fund other capital activities and repay the
Commercial Fund with future Residential Fund revenues.
CMR: 189:99 Page 5 of 7
RESOURCE IMPACT
The 1999/00 CDBG entitlement allocation is $738,000. This amount represents a one
percent increase from the 1998/99 allocation of $733,000. The estimated program income
for 1999/00 is $45,000. Program income is defined as income generated directly from the
use of CDBG funds. The main source of program income is from loan payoffs from the
City’s Housing Improvement Program (HIP) single familyrehabilitation program. Since the
HIP Program is no longer operational and new loans are not being generated, the income
stream from loan payments and payoffs continues to decrease. The HIP loan portfolio is
currently valued at approximately $135,000. The other anticipated source of revenue is from
the Palo Alto Housing Corporation, when rental income exceeds expenses on properties
acquired or rehabilitated with CDBG funds. Prior program income funds are program
income funds received in excess of the estimated amount and not previously allocated.
The total available 1999/00 funds are as follows:
FY 1999/00 CDBG Allocation
1999/00 Estimated Program Income
Housing Improvement Program (HIP)
Palo Alto Housing Corp. (PAHC)
Prior Unallocated Program Income Funds
Reallocated Funds
Senior Home Repair
Ventura Community Center
Pacific Art League
Sheridan Apartments
25,000
20,000
2,719
15,798
23,400
49,083
$738,000
45,000.
50,000
91 000
$924,000
The cap in the public service category is based on estimated 1998/99 program income of
$45,000 and the 1999/00 grant ($738,000 + $45,000 = $783,000 x 15% = $117,450). The
cap in the administration category is based on estimated 1999/00 program income of $45,000
and the 1999/00 grant ($738,000 + $45,000 = $778,000 x 20% = $155,600).
POLICY IMPLICATIONS
All of the applications recommended for funding are consistent with the priorities established
in the City’s Consolidated Plan for the period 1995-2000 and with the housing programs and
policies contained in the adopted Comprehensive Plan.
TIME LINE
Funding recommendations made by the Finance Committee and the draft Action Plan will
be forwarded to the City Council for review and approval at a public hearing on May 10,
CMR: 189:99 Page 6 of 7
1999. The Action Plan, containing the CDBG application, 1999/00 funding allocations, and
requisite certifications, will be submitted to HUD by the May 15, 1999 deadline.
ENVIRONMENTAL REVIEW
For purposes of the California Environmental Quality Act (CEQA), budgeting is not a
project. Under the project descriptions section in Attachment B, the environmental
assessment under CEQA has been identified. HUD environmental regulations for the CDBG
Program are contained in 24 CFR 58 "Environmental Review Procedures for Title I
Comrnunity 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 the required environmental reviews or
assessments, and certify that the review procedures under CEQA, and HUD and NEPA
regulations have been satisfied for each particular project.
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
Attachment D:
Chart of 1999/00 funding requests and staff and CAC reconamendations
Narrative report containing staff and CAC funding recommendations
Funding Priorities
1999/00 Draft Annual Action Plan Update of the Consolidated Plan for
the Period 1995 - 2000.
PREPARED BY: Suzanne Bayley, CDBG Coordinator
DEPARTMENT HEAD:
G. EDWARD G~wF ’~
Director of Planning and Environment
CITY MANAGER APPROVAL:
ty Manager
CC:CDBG Citizen’s Advisory Committee Members
Applicant Agencies
CMR:189:99 Page 7 of 7
STAFF AND CITIZEN ADVISORY COMMITTEE (CAC)
RECOMMENDATIONS FOR 1999/2000
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING
PUBLIC SERVICE APPLICATIONS
URBAN MINISTRY OF PALO ALTO (UMPA)
P.O. Box 213, Palo Alto, CA 94302
Funding Request $30,612
Staff Recommendation -0-
CAC Recommendation -0-.
Proposal: Food Closet and Breaking Bread Meal Programs. UMPA distributes
bagged groceries to persons in need through the Food Closet at 555 Waverley in Palo
Alto, and organizes prepared meals through the Breaking Bread Meal Program at
participating churches in Palo Alto and Menlo Park. The Breaking Bread program
operates five days a week, providing approximately 300 meals each week at sites in
Menlo Park and Palo Alto. The Food Closet is open five days a week and distributes
approximately 450 sacks of groceries per week. Agency staff organize, train, and
coordinate the many community volunteers who assist in the operation.
Discussion: Contract objectives for the first six months of 1998/99 for the Breaking
Bread Meal Program are being met. Contract objectives for the Food Closet are 85 % of
target (76.5 bags of groceries/day distributed versus a contract objective of 90
bags/day). The food programs of Urban Ministry are a critical part of the safety net of
services for very low income persons in this region. The proposed budget for the food
programs is $132,166. See discussion below on all programs.
URBAN MINISTRY OF PALO ALTO
Funding Request $27,928
Staff Recommendation -0-
CAC Recommendation -0-
Proposal: Drop-In Center Program. The Drop-In Center is located at 400 Mitchell
Lane in Palo Alto at the rear of the American Red Cross Building. The Center provides
basic survival services to persons who are homeless or in crisis, and is staffed by
UMPA employees and volunteers weekday mornings between 7:30 and 11:30 a.m.
Services include a light breakfast, information and referral, telephone and mail, bus
passes, rotating church shelter registration, case management and counseling, direct
financial assistance and clothes closet referrals.
Discussion: Current contract objectives are being met. Agency reports a daily
attendance average of 108 clients per day. The proposed budget for the Drop-In Center
is $136,557. See discussion below.
3.URBAN MINISTRY OF PALO ALTO
Funding Request $ 3,460
Staff Recommendation $ -0-
CAC Recommendation $ -0-
Proposal: Rotating Church Shelter. The rotating church shelter program provides
year-round temporary housing to homeless individuals. The program rotates on a
monthly basis amongst twelve participating local churches. Morning and evening meals
are provided to guests by members of the host congregation, and UMPA staff serve as
shelter managers between 9:00 p.m. and 7:00 a.m. Case management services for
shelter guests are provided at the Drop-In Center. UMPA proposes to provide 4050
bed nights in the 1999/00 fiscal year, or an average of 11 persons per night.
Discussion: The contract objectives for 1998/99 are below target for the first six
months. An average of 9.4 people per night were sheltered in the first six months of
the current program year. The shelter has continued to operate below its 15 bed
capacity for a few years. In their semi-annual report dated January 15, 1999, the
agency reports "all possible solutions to raise the nightly census have been tried,
however, tO’ no avail". The total budget for this program is $62,444.
General Discussion of all UMPA Programs: The staff and CAC recommendations
reflect a lengthy discussion regarding the funding of homeless services. Staff and the
CAC are in agreement with the recommendation not to provide continued funding for
the Urban Ministry’s programs. This recommendation is based on the following
factors:
A high level of staff and Board turn-over, and the lack of administrative leadership
from a full-time Executive Director persist as on-going problems for UMPA. These
issues contribute to a lack of continuity, accountability and organizational capacity
which impacts UMPA’s ability to address and provide for the needs of their clients. It
affects their ability to interact and collaborate with other non-profit agencies on services
and programs, and to adequately and effectively raise funds and bring more resources
into the community.
In return for Federal funding, agencies must comply with complex laws and regulations
governing the use of those funds. This includes areas such as internal management and
the documentation and reporting on CDBG-funded adtivities. Inconsistencies and
inaccuracies in UMPA’s CDBG funding application, and reports which are not timely
all point to problems with documentation and general record-keeping. The lack of
administrative capacity puts UMPA, and the City, at risk of non-compliance with
Federal regulatory requirements.
UMPA continues to provide paying jobs for clients in the Garden and Lawn Programs
at the expense of their basic programs of food, clothing, shelter, money-management
and supportive services. The 1998/99 budget for the Garden and Lawn Programs is
$118,161, with only $27,000 in projected revenue. Given the limited resources,
UMPA needs to focus on the programs which address the daily living needs of their
clients, and the supportive services which help to move them out of homelessness.
These basic services cannot be delivered adequately when the agency itself is stretched
too thin.
While mindful of the wonderful services provided to low income clients by the
dedicated UMPA employees and volunteers, staff and the CAC feel that UMPA must
strengthen and build the capacity of the organization in order to successfully provide for
both the short and longer term needs of their clients. Although attempts have been
made to address the concerns outlined in the attached memo dated March 7, 1996, and
last year’s CDBG recommendations dated April 7, 1999, staff and the CAC believe that
only limited progress has been achieved. UMPA’s projected budget for 1999/00
should allow them to continue to provi.de basic services (drop-in-center, shelter, food,
money managelnent and supportive services) without CDBG funding.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
COMMUNITY TECHNOLOGY ALLIANCE
115 East Gish Road, Suite 222, San Jose, CA 951121
Funding Request $14,535
Staff Recommendation $ -0-
CAC Recommendation $ -0-
Proposal: Project Share Community VoiceMail for the Homeless. Agency partners
with local non-profit agencies to provide 24 hour VoiceMail boxes to case-managed
homeless clients. The objective is for homeless and at-risk individuals to be able to
access jobs, housing, health care and other services which can help them reach self-
o
sufficiency. The proposal is to make 67 VoiceMail boxes available to agencies that
primarily serve Palo Alto.
Discussion: Staff and the CAC do not recommend ftinding for this project due to the
limited funding available.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
STANFORD UNIVERSITY SCHOOL OF MEDICINE
300 Pasteur Drive, Alway #M121, Stanford, CA 94305
Funding Request $15,000
Staff Recommendation -0-
CAC Recommendation -0-
Proposal: Arbor Free Clinic. The Clinic provides free medical care and referral
services for homeless, unemployed and medically uninsured individuals. The clinic
treated approximately 650 individuals in calendar year 1998. Arbor Free Clinic is a
free, walk-in clinic which operates on Sundays at the Menlo Park Veterans
Administration Hospital on Willow Road in Menlo Park. Patients are provided with
general, acute and preventative services, free prescriptions for medications, as well as
referrals and vouchers for free dental, care and eye glasses.
Discussion: Staff and the CAC do not recommend funding for this project due to the
limited funding available.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
EMERGENCY HOUSING CONSORTIUM (EHC)
2011 Little Orchard, San Jose, CA 95125
Funding Request
Staff Recommendation
CAC Recommendation
$10,800
8,000
8,000
Proposal: Shelter and Services for Homeless Persons. Agency provides emergency
shelter and comprehensive supportive services to homeless men, women, families with
children, and youth in various facilities in Santa Clara County. EHC operates a Youth
Shelter in San Jose, the winter shelters at the National Guard Armories in Sunnyvale
and Gilroy, the Regional Reception Center in San Jose, and various other transitional
4
housing programs in the San Jose area. Supportive services include prepared meals,
counseling, child care, transportation, case management, and skills workshops to help
secure housing and/or employment.
Discussion: Current contract objectives are being met. Agency successfully completed
the renovation of the Reception Center in San Jose, a new full-service 250 bed facility
for homeless individuals and families. EHC has now begun research on the gaps and
needs in homeless services in Northern Santa Clara County. As part of this research
effort, they may develop plans for future expansion of services into the North County
area. EHC anticipates serving 60 homeless persons from Palo Alto with food, clothing,
shelter and supportive services in 1999/00.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
PALO ALTO HOUSING CORPORATION (PAHC)
725 Alma Street, Palo Alto, CA 94301
Funding Request
Staff Recommendation
CAC Recommendation
$29,800
16,450
16,450
Proposal: Barker Hotel Resident Support Services. The Barker Hotel serves a very
low-income population of residents with a history of homelessness and special needs.
A counselor provides support to individual tenants as needs or problems arise. PAHC
requests additional money this year to also maintain a part-time Service Coordinator at
the site to provide more aggressive tenant support and preventative services. These
intensive case-management services play a vital role in helping the residents maintain
their stability and housing. The Service Coordinator position is funded through a one
time grant which ends in October 1999. PAHC requests $5,000 for the counselor and
$24,800 to continue the Service Coordinator position.
Discussion: Current contract objectives are being met. The Barker Hotel serves a very
needy population both in terms of income level and service needs. The facility cannot
be operated for the benefit of this population without extensive supportive social
services. Staff and the CAC were impressed with the quality and results of this
program. It is hoped that the balance of the funding for the Service Coordinator
position can be raised from other sources.
PALO ALTO HOUSING CORPORATION
Funding Request
Staff Recommendation
CAC Recommendation
$39,000
25,000
25,000
Proposal: Affordable Housing Information and Referral. Agency provides members
of the public, particularly those with low incomes, assistance in their search for
affordable housing.. Information is dispensed about affordable housing opportunities in
Palo Alto and surrounding areas, their waiting lists, and other related services such as
mediation, subsidies, and rental assistance. The Directory of Housing Services and
subsidized Rental Housing in Palo Alto and Surrounding Communities is updated and
republished am~ually.
Discussion: Current contract objectives are being met. Staff and the CAC believe this
is an important service for persons trying to access affordable housing given the high
cost of rental housing and the low vacancy rates. The loss of the local PAAIRS
information and referral service has also affected the number of calls which PAHC
receives.
Environmental: Not a project under the California Enviromnental Quality Act
(CEQA).
CATHOLIC CHARITIES
2625 Zanker Road Suite 200, San Jose, CA 95134-2107
Funding Request $10,300
Staff Recommendation $ 8,000
CAC Recommendation $ 8,000
Proposal: Long-Term Care Ombudsman Program. Agency provides confidential
advocacy and complaint investigation services to the approximately 950 residents in
Palo Alto’s 15 licensed long-term care facilities. Program beneficiaries are the frail,
chronically ill, primarily elderly residents in Palo Alto’s licensed skilled nursing and
residential care facilities. Agency staff and trained community volunteer ombudsmen
visit residents on a regular basis and as special circumstances dictate (i.e., in response
to specific complaints). Agency staff and volunteers investigate complaints, including
allegations of abuse and neglect, seek fair resolution to problems, and promote
residents’ rights for quality of care and quality of life in the long-term care setting.
Discussion: Current contract objectives are being met or exceeded. The Ombudsman
Program services are not duplicated by any other agency, and provide an important
6
10.
presence in long-term care facilities. Local volunteers are utilized to provide the
majority of site visits. Agency proposes contacting/interviewing 465 Palo Alto
residents and conducting 30 complaint investigations. The number of contract service
units may be reduced commensurate with the reduced funding.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
CITY OF PALO ALTO POLICE DEPARTMENT (PAPD)
250 Hamilton Ave., Palo Alto, CA 94301
Funding Request
Staff Recommendation
CAC Recommendation
$ 75,000
$ 60,000
$ 60,000
Project: Health and Safety Outreach Team. The PAPD proposes a new project to
address the issue of homelessness in the community. The proposal calls for the PAPD
to collaborate with County social services and mental health professionals to provide
proactive outreach to homeless individuals. Specifically, the proposal links the Police
Department with the services of a licensed clinical social worker (LCSW) and a public
health nurse to provide assessment, resources, referrals, case management and other
services to the homeless population, especially those with mental illness. It would
allow law enforcement personnel to work jointly with the LCSW and public health
nurse to assist homeless individuals in breaking the cycle of homelessness. The funds
would be used to pay the salaries of contract county personnel assigned to the team.
The proposed team will work with Santa Clara County Mental Health, public health and
veterans agencies, and other existing resources to place individuals in short and long
range treatment and housing programs.
Discussion: Staff and the CAC believe that this project is an important addition to the
existing services available for mentally ill and homeless persons in our community.
This is an opportunity to increase the number of homeless services available by
allocating the CDBG funds as seed money to initiate a new program. It is a proactive
response to helping people find appropriate resources and to move out of homelessness.
The proposed program will build on existing services and fill a void in the County’s
"Continuum of Care" plan for the provision of homeless services throughout the
County. It takes counseling and casework directly to people on the streets who might
be mentally ill or have other health problems. The program also encourages an
important partnership between the City of Palo Alto and the County of Santa Clara and
between the disciplines of law enforcement and social services. The CAC has
requested that the Human Relations Commission assist in the program assessment by
being a conduit for any complaints or concerns from the public relating to program
implementation. The PAPD.has indicated that the minimum amount needed to initiate
the program is $60,000.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
PROGRAM ADMINISTRATION APPLICATIONS
11.
12.
MIDPENINSULA CITIZENS FOR FAIR HOUSING (MCFH)
457 Kingsley Avenue, Palo Alto, CA 94301
Funding Request
Staff Recommendation
CAC Recommendation
$ 24,500
$18,000
$18,000
Project: Fair Housing Services. Agency provides investigation, counseling and legal
referral for victims of housing discrimination as well as community outreach and
education regarding housing rights. MCFH seeks to reduce discrimination in housing
and provide redress for those who have been discriminated against. HUD regulations
require CDBG entitlement jurisdictions to affirmatively further fair housing choice.
Discussion: Contract objectives are being met. Agency proposes to investigate 15
cases of housing discrimination and provide special preventive advocacy and
educational client services.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
CITY OF PALO ALTO, PLANNING DEPARTMENT
250 Hamilton Ave, Palo Alto, CA 94301
Funding Request
Staff Recommendation
CAC Recommendation
$130,000
$130,000
-0-
Project: CDBG Program Administration. Funding is requested for costs associated
with the administrative management of the CDBG program, planning studies, and for
8
project delivery costs which relate to the implementation of capital projects.
Administrative costs are associated with the overall management, coordination,
monitoring and evaluation of the CDBG program, oversight of public service contracts,
as well as activities such as data gathering, studies, analysis, plan preparation, and the
identification of actions for the implementation of plans.
Discussion: The funds requested are used to reimburse the Planning Department for
the cost of administering the CDBG program. The City’s cost to administer the
program varies with the number of housing and/or capital projects which are
undertaken, but can be estimated to be approximately $200,000 per year. This includes
salary, benefit and non-salary direct costs. The CAC believes that the City’s General
Fund should pick up the full cost of CDBG program implementation this year so that
the entire grant can be applied to direct project costs.
Environmental: Not a project under the California Environmental Quality Act
(CEQA).
HOUSING/CAPITAL PROJECT APPLICATIONS
13.VETERANS WORKSHOP, INC.
795 Willow Road, MSll6B6, Menlo Park, CA 94025
Funding Request $ 53,670
Staff Recommendation $ -0-
CAC Recommendation $ -0-
Project: Rehabilitation of Shared Transitional Housing for Veterans. Agency
requests funding for interior and exterior rehabilitation of two existing shared houses in
Palo Alto. The two properties, located at 442 Margarita Street and 325 Fernando
Street in Palo Alto, provide 12 units of affordable transitional housing for low income
veterans. Funds are requested for painting, foundation repair, construction of closets,
kitchen and bathroom remodeling, addition of wheelchair ramps, and roofing work.
Discussion: Staff and the CAC do not recommend funding due to the limited amount
of funding available.
Environmentah Categorically exempt under Section 15301 of CEQA, minor change to
an existing facility
14.MID-PENINSULA HOUSING COALITION (MPHC)
658 Bair Island Road, Suite 300, Redwood City, CA 94063
Funding Request $1,000,000
Staff Recommendation $ 658,550
CAC Recommendation $ 500,000
Project: Acquisition of Palo Alto Gardens Apartments. Agency proposes to acquire
and rehabilitate the Palo Alto Gardens Apartments located at 648 San Antonio Road in
Palo Alto in order to preserve it as affordable housing. If the 156-unit project were
allowed to convert to market rate housing, the current residents, the majority of whom
are elderly, would be at risk of becoming homeless. On March 15, 1999 the Palo Alto
City Council committed $1,000,000 to the project in the form of an interim loan from
the City’s Housing Reserve Funds; $275,000 was paid from the balance in the
Residential Housing In-Lieu Reserve, and $725,000 was loaned to the Residential Fund
from the Commercial Housing In-Lieu Fund. Since the acquisition of existing housing
is not an eligible activity with Commercial Housing In-Lieu funds, the $725,000 loan
needs to be repaid to the Commercial Housing In-Lieu Fund. The most likely source of
repayment is from 1999/00 CDBG funds.
On March 5, 1999, HUD approved the City’s request for a pre-award determination
which will allow the City to reimburse itself with 1999/00 program funds for an
expenditure in program year 1998/99. The 1998/99 Annual Action Plan of the
Consolidated Plan was amended to reflect the anticipated project expenditure in
1998/99. On March 15, 1999 MPHC received tax credit and tax exempt bond
allocations for the purchase and rehabilitation of the property. It is expected that
escrow will close by the end of April 1999.
Discussion: Preservation of these at-risk housing units is the highest priority in the
City’s adopted Consolidated Plan. Both staff and the CAC support the project, but
differ on the anaount of CDBG funding which should be utilized to repay the interim
loan. Staff recommends that the maximum amount available be utilized for the
acquisition. The CAC recommends expending the majority of the available funds on
the acquisition, and theremainder on two other urgent capital projects. Any shortfall
between the $725,000 loan and the amount of the CDBG conmaitment will be repaid
from future revenues to the Residential Housing In-Lieu Fund.
Environmental: Categorically exempt under Section 15301 (existing facilities) of the
CEQA guidelines.
10
15.
16.
ACHIEVE (formerly Peninsula Childrens Center)
3860 Middlefield Rd, Palo Alto, CA 94303
Funding Request $35,000
Staff Recommendation -0-
CAC Recommendation -0-
Proposal: Exterior Painting of Building. Agency provides a wide range of support
services to children and young adults with behavioral, emotional and developmental
difficulties. Annually, the range of programs provided serve 1,500 children and their
family members throughout Santa Clara, San Mateo and Alameda Counties. Programs
include special education, outpatient mental health, therapeutic recreation, and early
childhood intervention/prevention services. Agency requests funding to paint the
interior and exterior of their facility on Middlefield Road which includes classroom
spaces and administrative offices.
Discussion: Staff and the CAC do not recommend funding based on the limited funds
available.
Environmental: Categorically exempt under Section 15301 of CEQA, minor change to
an existing facility.
COMMUNITY HOUSING INC. (CHI)
656 Lytton Avenue, Palo Alto, CA 94301
Funding Request $36,850
Staff Recommendation -0-
CAC Recommendation -0-
Proposal: Heating, Cooling, and Energy Management Feasibility Study. CHI owns
and manages Lytton Gardens I and II, providing 320 subsidized independent and
assisted living units for low and very low income seniors. This proposal is a request
for an energy efficiency study to develop a comprehensive capital program to reduce
operating costs, maintain affordability, and to contribute to the comfort of residents.
Discussion: Staff and the CAC do not recommend funding based on the limited funds
available.
Environmental: Categorically exempt under Section 15301 of CEQA, minor change to
an existing facility.
11
17.EMERGENCY HOUSING CONSORTIUM (EHC)
2011 Little Orchard Street, San Jose, CA 95125
Funding Request
Staff Recommendation
CAC Recommendation
$5O,0OO
-0-
$50,000
Project: Sobrato Family Living Center. EHC proposes to provide 50 new units of
transitional and permanent housing for homeless families near the site of the former
Santa Clara Family Living Center on Agnew Road in the City of Santa Clara. EHC
operated the family homeless shelter for 15 years until the State of California sold the
property to Sun Microsystems in 1997. EHC has negotiated a deal which will allow
them to replace the 32 unit family shelter with 32 new individual two-bedroom
apartments, a resident manager’s apartment, and a community center. The second
phase of the project involves the construction of eight (8) three and four-bedroom
apartments, and the conversion of five existing on-site houses into ten two-bedroom
apartments. City funds are requested for the rehabilitation of the five existing houses
on site.
Discussion: Staff is supportive of the project, but recommends that all capital funding
in the 1999/00 program year be allocated to repay the City’s Commercial Housing
Reserve Fund for the interim loan for the Palo Alto Gardens Apartments Project. The
CAC believes that this project should be funded, given the extreme lack of affordable
housing available for very low income families, and families struggling to transition out
of homelessness.
Environmental: Categorically exempt under Section 15301 of CEQA, minor change to
an existing facility.
18.ALLIANCE FOR COMMUNITY CARE (formerly Miramonte Mental Health)
438 N. White Road, San Jose, CA 95127
Funding Request
Staff Recommendation
CAC Recommendation
$352,675
-0-
-$238,550
Project: Waverley Place Rehabilitation. Agency provides mental health services to
people with serious psychiatric disabilities. This proposal is to rehabilitate the agency’s
vacant residential property at 650 Waverley Street for use as a licensed board and care
home. It is anticipated that eleven to fourteen very low income individuals with mental
illness could be served, depending on the final architectural design. The program
would provide a day treatment component to develop skills and symptom management
12
19.
for the individuals served. The stay in the program would be for an indefinite period of
time, but generally individuals average six to twelve months in this type of housing.
ALLIANCE was provided with CDBG funds in a prior year to do a feasibility study to
determine the best use of the property and estimated rehabilitation costs. This study
has not yet been completed.
Discussion: Staff is supportive of the project, but recommends that all capital funding
in the 1999/00 program year be allocated to repay the City’s Commercial Housing
Reserve Fund for the interim loan for the Palo Alto Gardens Apartment Project. The
CAC recommends funding for this project due to the extreme lack of housing
opportunities for people with serious mental disabilities in north Santa Clara County,
and the urgency associated with leaving the property vacant for a longer period of time.
Environmental: Categorically exempt under Section 15301 of CEQA, minor change to
an existing facility.
PALO ALTO SENIOR HOUSING PROJECT, INC.
455 East Charleston Road, Palo Alto, CA 94306
Funding Request $64,594
Staff Recommendation -0-
CAC Recommendation -0-
Proposal: Retrofit of Windows and Doors at Adlai E. Stevenson House. Stevenson
House is a 30-year old residential facility located at 4~5 East Charleston Road in Palo
Alto. The three buildings contain 120 independent living units providing affordable
housing for 135 lower income older adults. This proposal is to retrofit sliding glass
doors and windows on 22 units to enhance the comfort and security of ’the residents,
conserve energy, and reduce operating costs.
Discussion: Staff and the CAC do not recommend funding based on the limited funds
available.
Environmental: Categorically exempt under Section 15301 of CEQA, minor change to
an existing facility.
13
Palo Alto City Coundil
Urban Ministry of Palo Alto Board of Directors
CDBG Citizens Advisory Committee
Date: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 Ci[y 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, financial 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 tfigh 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 o~ 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 expec~ thM 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, anal 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. -.U.~se of the Grant
Two-thfrds of the grant shall be used to fund the purchase and
distribution of tangible goods -- food, clothing, bus passes, toileU’ies, 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:
]. To have UMPA better meet the immediate needs of its clients;
2. To focus UMPA on the need to pay better attentign 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 there 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-kraining, counseling, recovery
programs and other long-term solutions to homelessness and poverty, we
believe that UMPA n~eds first to do a better job of meeting the daily living
needs of its clients and to improve its operations.
B. Organizational Improvements R~quired for Funds Dispersal ;
The CDBG funds should not be released to ,ErMPA until it has hired a
competent finandal-administrator and made significant progress towards
improving its finandal 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 thatUMPA’s financial
practices have been s!oppy 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.".Organiza tional I._mprovement.
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 Developme~nt -- 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 merabers should receive training in the basics of non-
profit board service: accounting, la~v, 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 Staten_l~n..!t -- Once the board has been strengthened, UMPA should
revisit its missiop.:~.;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 boa.rd. 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 shoulc~, 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 ahswer 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 o~her 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.
FROM 1998 CDBG RECOMMENDATIONS REPORT
Agency: Urban Ministry of Palo Alto (U~’IPA)
P. O. Box 213, Palo Alto, CA 94302
Program: Shelter and Supportive Services for the Homeless. This agency provides
shelter, emergency assistance and supportive services to the local homeless and very
low income population. Services subsidized by CDBGfunding include staffing of the
Drop-in Center; 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.
Funding:
1998/99 Request:
1997/98 funding:
CAC Recommendation:
Staff Recommendation:
$75,000
$66,900
$59,000
$62,000
Discussion: Current contract objectives are being met in the Drop-ih Center and
Prepared Meal/Emergency Food Programs. However, the number of bed nights
provided by the Rotating Church Shelter Programs is 15 percent below the targeted
number. Although the shelter has a 15 bed capacity, there are nights when the census
has been as low as six persons. This is surprising given the rainy weather and the
capacity crowds at other area shelters. UMPA has begunan analysis of the decline in
the Hotel De Zink shelter clientele, and will report on the results.
While working diligently to maintain the progress made in the administrative and
financial systems of the organization, UMPA continues to suffer from gtaffing turnover.
This turnover undermines program continuity and accountability. The CAC
recommends funding at a level which is 12 percent below the current level of funding.
The staff recommendation is for a 7 percent reduction.
Environmental: Not a project under CEQA.
4
SUMMARY OF CDBG FUNDING PRIORITIES*
FISCAL YEAR 1999/2000
*Note: Priorities are shown in order of importance
I.AFFORDABLE HOUSING (Goal: 60% of Budget)
A. NEW CONSTRUCTION, CONVERSION & ADDITION OF NEW UNITS
o
Permanent housing for families with 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.PRESERVATION 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 IMPROVEMENTS (Goal: 5% of Budget)
III.
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
IV.ADMINISTRATION (Goal: 20% of Budget)
Fair housing education, information, referral, advocacy, counseling and
complaint resolution
2.CDBG program administration and planning costs
ATTACHMENT D
REVISED DRAFT
CITY OF PALO ALTO
Housing and Community Development
1999/2000 ACTION PLAN
Annual Update of the City’s Consolidated Plan for the Period
July 1, 1995 to June 30, 2000
Public Review Period: April 1, 1999 - April 30, 1999
Adopted by the Palo Alto City Council on May 10, 1999
Prepared by Departmem of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, California 94301
G. Edward Gawf, Director
For Information, Please Contact: Suzanne Bayley
Planning Division, City of Palo Alto (650) 329-2428
CITY OF PALO ALTO
FISCAL YEAR 1999/2000 ACTION PLAN
ANNUAL UPDATE TO THE CITY’S CONSOLIDATED PLAN
FOR THE PERIOD JULY 1, 1995 TO JUNE 30, 2000
This Action Plan is the 1999/2000 annual update to the City’s Consolidated Plan for the Period
July 1, 1995 to June 30, 2000. The Consolidated Plan is a five-year planning document which
describes local conditions and resources, identifies priority housing, human service, and
community development needs, and outlines a strategy and plan to address the identified needs.
The Consolidated Plan and the annual updates are submitted to the U.S. Department of Housing
and Urban Development (HUD) to enable the City of Palo Alto to receive and administer federal
funds under the Community Development Block Grant (CDBG) program
The Consolidated Plan is meant to serve as a guide to insure that federal funds are directed toward
the most urgent community needs, and that funding decisions are consistent with identified
priorities and strategies. The Action Plan identifies the activities which the City anticipates
undertaking in fiscal year 1999/2000 with CDBG funds, and describes the activities which the City
plans to undertake to affirmatively further fair housing choice.
Executive Summary of the Consolidated Plan for the Period July 1, 1995 - June 30, 2000
The City of Palo Alto is a suburban California City situated on the northern border of Santa Clara
County in the heart of"Silicon Valley". The City is know for its association with the world famous
educational and research institution of Stanford University, a major center for medical care and
research. Palo Alto is also a center of international culture, art, shopping and food. Palo Alto has
a resident population of approximately 58,000 people. The Citywide breakdown by race and
ethnicity is as follows: White 84.9%, Asian/Pacific Islander 10.4%, Black 2.9%, American Indian
0.3%, and other 1.5%. Palo Alto is, overall, a very affluent community. Only 4.6% of the
population are below the poverty level. The 1999 median income for a family of four in Santa Clara
County is $82,600, one of the highest in the nation.
There is a greater demand for housing in Palo Alto than can be met. This is because Palo Alto is a
desirable place to live, there are more jobs than housing units, there is an intense demand for
available units, and there is very little land available for new housin~ development. Developers of
affordable housing projects must, therefore, compete with developers of market rate housing for the
limited land available.
Two critical housing needs are identified in the Consolidated Plan: the alleviation of the high cost
of housing for lower income households, especially renters; and the provision of affordable housing
for the homeless and persons with special needs. Lower income households with the most severe
overpayment problems include elderly renters and single parent renters. Permanent affordable
housing for homeless households and the need to provide housing with supportive services for
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persons with special needs such as the frail elderly, or persons who are developmentally, physically
or mentally disabled, continue to be important ongoing needs.
The County of Santa Clara’s Collaborative on Housing and Homelessness has created a county-wide
"Continuum of Care" strategy and approach to the problems of homelessness. By prioritizing needs
and identifying gaps in services on a regional level, the needs of persons who are homeless or are
at risk of becoming homeless, can be more effectively addressed. The Continuum of Care identified
as high priority needs the provision of additional transitional and permanent housing with service
components, and employment training and placement services.
Priorities for non-housing community development needs are to:
1)Expand, modernize, rehabilitate and make seismic and other safety related
improvements to facilities serving special needs populations.
2)Complete accessibility improvements to public facilities, parks, streets and sidewalks.
3)Provide new facilities and rehabilitate existing facilities for service programs servicing
low-income and special needs populations.
4)Provide more emergency shelter beds for the homeless
5)Provide facilities for the provision of homeless services.
6)Support organizations which provide a variety of human services to low income, at-risk
populations
7)Develop programs to create and increase employment opportunities for minorities low
income persons, homeless persons and persons with disabilities.
Federal Resources
In fiscal year 1999/00, the City will allocate $924,000 to CDBG eligible activities. The amount
of the City’s 1999/00 CDBG entitlement grant from HUD is $738,000, and estimated program
income is $45,000. Program income is income directly generated from the use of CDBG funds.
The majority of CDBG program income is received from loan repayments under the City’s former
Housing Improvement Program (HIP) single family rehabilitation loan program.
The other source of program income is from the Palo Alto Housing Corporation (PAHC) when
rental income exceeds expenses on properties acquired or rehabilitated with CDBG funds. Prior
program income funds are funds received in prior years which were in excess of the estimated
program income amounts, and were not previously allocated to projects. Reallocated funds were
allocated to projects in previous years, but were not used.
The estimated 1999/00 CDBG funds are as follows:
FY 1999/00 CDBG Allocation
1999/00 Estimated Program Income
Reallocated Funds
Prior Unprogrammed Funds
$738,000
45,000
91,000
50,000
$924,OOO
Public Review and Public Hearings
On Thursday, September 24, 1998 the Palo Alto Human Relations Commission held a public
hearing at Ventura Community Center to provide an opportunity for citizens to comment on Palo
Alto’s housing, human service, and community development needs. The hearing confirmed that
the greatest community need continues to be the lack of housing affordable to lower income
persons. No changes to the previously identified priorities were made as a result of the hearing.
The City of Palo Alto has an adopted Citizen Participation Plan which provides for a nine-member
CDBG Citizens Advisory Committee (CAC). The CAC process encourages public participation
in the CDBG allocation and evaluation review process. The Citizen Advisory Committee held a
public meeting on November 10, 1998 to discuss the Palo Alto Gardens Apartments proposal, and
on January 7, 12, 21, and 26, and February 4, 9, 18 and 22, 1999 to review and make
recommendations on the applications for 1999/00 funding.
HUD regulations require that the draft. Action Plan annual update be available for a 30-day public
review and comment period. The public review and comment period for the 1999/00 Plan is from
April 1, 1999 to April 30, 1999. Interested citizens are invited to submit written comments on
the Plan to Suzanne Bayley, Planning Division, City of Palo Alto, 250 Hamilton Avenue, Palo
Alto, CA 94301, or to provide comments directly at the following public hearings:
April 6, 1999
May 10, 1999
Finance Committee Meeting, 7:00 P.M.
City Council Meeting, 7:00 P.M.
Amendment to 1998/99 Action Plan and Authorization for Pre-Award Costs
The Palo Alto City Council adopted an amendment to the 1998/99 Action Plan at a public hearing
on March 15, 1999. The amendment identified the acquisition of the Palo Alto Gardens
Apartments as a potential activity in fiscal year 1998/99 (see discussion below under housing).
This action allowed the City to request authorization from HUD to permit 1999/00 CDBG funds
to be used to reimburse the City for costs expended in fiscal year 1998/99 for the acquisition of
the Palo Alto Gardens Apartments. Additionally, the City requested that HUD authorize the
payment of pre-award costs in excess of the $300,000 maximum specified in CDBG regulations.
In a letter dated March 5, 1999, HUD authorized both requests.
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HOUSING
LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE HOUSING
Acquisi-
Activity tion
Community Housing
In-Lieu Fund
Residential Housing In-
Lieu Fund
City owned land
MCC Program
Housing Bond Trust
Fund
County Housing
Authority Se’c 8
County Department of
Social Services
BMR Rental & Owner
Prog
Private Lenders: AHP
Nonprofit Developers
Private Foundations and
Churches
X
X
X
Rehabilita-
tion
New
Construction
X
X
X
LOCAL,PUBLIC
X
X
X
X
X
¯Home
Buyer
Assistance
X
Rental
Assist-
ance
X
Homeless
Assist-
ance
X
X
X
X
X
X
PRIVATE RESOURCES
X
X
X
X X
X X
X
Homeless
Preven-
tion
X
X
X
X
Local and Other Resources
The primary local housing resource available in the City of Palo Alto is the City’s Housing
Reserve. The Housing Reserve has two components -- the "Commercial Housing In-Lieu Fund",
and the "Residential Housing In-Lieu Fund". The primary purpose of the Commercial Fund is
to increase the number of new affordable housing units for Palo Alto’s work force. The
Residential Fund can be used for acquisition, rehabilitation, new construction and predevelopment
of low income housing.
The Commercial Housing In-Lieu Fund is funded with housing mitigation fees required from
developers of commercial and industrial space. As of 2/28/99, the Fund had a balance of
approximately $2,650,000. The Residential Housing In-Lieu Fund is funded with mitigation fees
provided under the City’s Below Market Rate (BMR) housing program from residential
developers, and money from other miscellaneous sources, such as proceeds from the sale or lease
of some City property. As of 2/28/99, this Fund had an unrestricted balance of approximately
$295,000.
Leveraging and Matching Requirements
The City of Palo Alto will leverage federal and private housing funds to the greatest extent feasible
consistent with the goals identified. The City will encourage housing project sponsors to seek
private financing and private grants, and to fully utilize other state and federal housing
development subsidies such as the low income housing tax credit program. The City will also
utilize its local Housing Reserves, as appropriate, to leverage federal and private housing funds
and to provide any required matching funds. Where eligible, CDBG funds could be used as a
portion of the matching requirement for federal housing programs.
The City of Palo Alto is not an entitlement jurisdiction for HOME funds. The only possible way
to access HOME funds is for the City, or eligible nonprofit organizations, to apply to the State of
California for the funds in an annual competition. Due to excessive demand for the state’s HOME
allocation, and rating criteria that doesn’t favor areas like Palo Alto, it is difficult to secure an
award. At the time the next Notice of Funding Availability (NOFA) is published, staff will
evaluate all potentially suitable projects to determine whether or not to apply for a HOME grant.
Priority Housing Needs
The City of Palo Alto’s Consolidated Plan and Housing Element both emphasize the great need
for affordable housing for low and very low income households in Palo Alto. While all types of
housing are needed in the City, the Consolidated Plan objectives focus on the creation and
preservation of rental housing, with an emphasis on housing for singles and very small households
who are homeless, at risk of homelessness, very low and low income housing for persons with
special needs, and housing for families with children.
Housing Development Fund: Purpose and Operations
The purpose of the Housing Development Fund is to have funds available on an ongoing basis to
utilize when necessary to facilitate the development, rehabilitation and preservation of low income,
multifamily housing. Housing development opportunities come up throughout the year and, due
to the nature of the real estate market, a quick response is frequently necessary. The HOusing
Development Fund includes housing funds from several sources: the CDBG Housing Fund, the
City Housing Reserve (with the commercial and residential components), and HOME trust funds.
Each funding source is accounted for separately. Following the purchase of the Sheridan
Apartments by the Palo Alto Housing Corporation in December, 1998, the balance in the CDBG
Housing Fund was reduced to zero.
The actual process for initiating a project will vary depending on the particular circumstances.
Usually, a nonprofit housing sponsor will apply to the Department of Planning and Community
Environment for housing subsidy funds when they are in negotiation for a particular site. At other
times, the City may issue a Request For Proposals. Whenever possible, requests for CDBG
housing funds are considered in the annual CDBG allocation process.
The City may provide funding from a variety of sources depending on the nature of the project.
The Planning Department will present recommendations for each project together with a proposed
funding package to the City Council for approval. In almost all cases, funds will be provided as
a loan. The loan will be secured by the property. The repayment terms and interest rate have to
be tailored to the particular project since low income housing typically is financed from multiple
sources with specific requirements. Wherever possible, the City will attempt to obtain a
repayment of its funds at some point in the future. Repayment of loans will enable the Housing
Development Fund to continue to be used to create new housing opportunities even if federal
subsidies decline in the future.
Miscellaneous Costs Related to Site and Project Feasibility
Housing Development Funds may also be used to pay for costs associated with the investigation
of the feasibility of sites and properties for acquisition by the City or nonprofit organizations for
affordable, low income housing. These costs usually need to be paid prior to a project being
officially created in the budget. Typically these costs are for appraisals, environmental studies and
soil testing, title reports and design sketches. Usually no more than $25,000 per fiscal year will
be needed for these expenses, and often less.
Emergency Loans for Owner-Occupied Housing
Funds may be used for emergency loans for single family rehabilitation, even though the City no
longer has an active single family rehabilitation loan program. It is possible that serious
emergency needs may occur, and in such situations, income qualified homeowners could apply for
a rehabilitation loan in order to make necessary repairs. The intent is only to provide financial
assistance to income eligible homeowners whose homes have serious building code deficiencies
and who have no other resources to undertake repairs.
7
Projects which may need funding from the Housing Development Fund during FY 99/00 are:
Project
Emergency Housing Consortium’s
Sobrato Family Living Center on Agnews
Drive in Santa Clara
Feasibility, Investigations, and Site
Acquisition Family Apartments
Group Homes for Lower Income Persons
with Disabilities
Miscellaneous Expenses Related to
Site and Project Feasibility Studies for
Other New Housing Projects
Emergency Rehabilitation Loans -Owner-
Occupied Housing
Activity
Rehabilitation
New construction
Rehabilitation
Projects not yet
identified
Rehabilitation
Number of Units
5 units
Estimated 30 +units
Estimated 16 units
Not known
As needed basis
1999/00 Housing Activities to be Undertaken
Acquisition and Rehabilitation of the Palo Alto Gardens Apartments
The acquisition and rehabilitation of the Palo Alto Gardens Apartments by Mid-Peninsula Housing
Coalition (MPHC) will be the primary use of capital CDBG funds in the 1999/00 fiscal year;
$658,550 in 1999/00 CDBG funds will be used to reimburse the City for expenses incurred in
fiscal year 1998/99 relating to the acquisition of the project.
In November, 1998, MPHC finalized negotiations to purchase the 156-unit Palo Alto Gardens at
648 San Antonio Road in Palo Alto. The affordable housing complex, originally developed in
1973 and financed through the HUD 221 (d)(3) program as a 100% cost based Section 8 project,
was at risk of converting to market rate rental housing. The action to acquire the project in order
to preserve it as affordable housing, followed the owner’s decision to prepay the HUD-insured
mortgage and not renew the Section 8 project-based rental assistance contract. All federal
regulatory restrictions were scheduled to end on the property on June 30, 1999, including the
HUD-required tenant rental protection period’ following mortgage prepayment. The sale to MPHC.
will preserve the housing for the existing low income residents and keep the entire 156 units as
part of the City’s affordable housing stock under new 50-year affordability requirements.
On November 23, 1998, at the request of MPHC, the Palo Alto City Council made a $1 million
loan commitment to the project so that MPHC could complete its funding package and proceed
with financing applications for tax exempt bonds and low income housing tax credits in a timely
fashion. A specific funding source was not identified at the time due to the fact that the City had
just expended all of its CDBG and Residential Housing In-Lieu funds on preserving the 56-unit
Sheridan Apartment complex. Because the Palo Alto Gardens purchase agreement contains a
May 31,1999 escrow closing date, the City requested and received HUD approval to use 1999/00
CDBG funds to reimburse the City for costs expended in fiscal year 1998/99 relating to the
acquisition of Palo Alto Gardens.
On March 15, 1999 the Palo Alto City Council adopted a Budget Amendment Ordinance which
appropriated the $1 million dollar loan to MPHC using the current balance of $275,000 in the
Residential Housing In-Lieu Fund and providing for a $725,000 interim loan from the Commercial
Housing In-Lieu Fund. The Commercial Housing In-Lieu Fund will be repaid from the 1999/00
allocation of CDBG funds, and future revenue from the Residential Fund. This was done so that
the Council’s decision on the amount of CDBG assistance could be made concurrently with the
funding decisions on the other projects seeking 1999/00 CDBG funding. The total cost of the
project, including acquisition and rehabilitation, is anticipated to be $16.7 million. In addition to
the $1 million City of Palo Alto loan, MPHC has secured an $11.4 million allocation of tax-
exempt bonds and approximately $4 million in low income housing tax credits. Escrow closed
on April 29, 1999, and the rehabilitation is scheduled for completion by December, 1999.
Rehabilitation of Waverley Street House
ALLIANCE for Community Care has requested funding to rehabilitate their single family
residential structure at 650 Waverley Street in Palo Alto. After rehabilitation, the building will
be utilized as a board and care home for low-income persons with mental disabilities. These are
generally persons who have become stable on medications and need housing and supportive
services to learn living skills, symptom management and socialization. They may have formerly
been tiomeless or might be at-risk of homelessness. It is expected that the facility could house
between 11 and 13 clients.
The property is a two-story residential structure built in 1904 and is potentially eligible for listing
on the National Register of Historic Places. There is a detached garage and apartment above the
garage. It is currently vacant except for a care-taker. There is a need for extensive renovations
and maintenance including seismic and structural repairs, replacement of major systems such as
roofing, electrical, plumbing and heating, and other problems such as termite infestation. A
CDBG funded feasibility study, completed in April, 1999, identified a board and care or shared
housing facility as a viable option for the property. The study included an appraisal, various
inspection reports, and rehabilitation specifications. The cost of rehabilitation is estimated to be
approximately $355,000, but could increase by the time the project is competitively bid.
The City of Palo Alto has committed $60,000 in 1999/00 CDBG funding for the project with the
understanding that ALLIANCE will seek and apply for additional funding from other community
and Federal sources. ALLIANCE intends to apply for the next round of Federal McKinney
Homeless Funding for the majority of the capital costs. Additional financial support from local
non-profit agencies and foundations will also be solicited for the project. The time line for project
inception will depend on the timing of the receipt of the balance of funding commitments, but it
could begin by early 2000.
COMMUNITY DEVELOPMENT
Public Services
In fiscal year 1999/00, the City will provide in excess of $1,150,000 from the General Fund ir~
support of human service programs through its Human Service Resource Allocation Process
(HSRAP). The HSRAP funds, in conjunction with the CDBG public service funds, are distributed
to local non-profit agencies whose programs serve the needs of seniors, children, youth and
families, persons with disabilities, and those who are homeless, or at risk of homelessness. A
variety of supported programs provide fair housing activities, mental and physical health care
services, tenant/landlord mediation, housing information and referral, subsidized child care,
support for victims of domestic violence and rape, adolescent counseling, emergency food,
nutritional services, recreational activities, and subsidized para-transit services.
Priority Public Service Needs
All of the public service activities included in the 1999/00 CDBG funding cycle address the
priority public service goals identified in the Consolidated Plan of:
a) relating directly to the housing needs of low income persons
b) shelters and support services for those who are homeless
c) services which address other needs of low income, elderly or special needs persons.
In the 1999/00 program year, CDBG public service funds will be targeted to the Catholic Charities
Long Term Care Ombudsman Program, Emergency Housing Consortium’s shelter and supportive
services, and Palo Alto Housing Corporation’s Housing Information and Referral Program and
Barker Hotel tenant services.
Services and Resources Available to Persons who are Homeless from Palo Alto
The following services for persons in the Palo Alto community who are very low income,
homeless, or at-risk of becoming homeless, are provided with supplemental funding from the City
of Palo Alto:
Alliance for Community Care: provides mental health outreach and linkage services to Palo
Alto’s adult homeless population. An agency casework counselor works 10 hours per week
in the Palo Alto area to help low income, disabled people access existing mental health and
other community resources.
American Red Cross: administers~a Homeless Prevention Program which provides direct
assistance to families experiencing f’mancial difficulties. The purpose of the program is to help
families remain in their housing and avoid becoming homeless. Agency provides rental and
utility assistance as well as counseling and information and referral to eligible low income
families.
10
Ci.ty of Palo Alto Seasonal Jobs Program: designates several temporary, seasonal employment
opportunities in various City of Palo Alto Departments, for persons who are homeless and
unemployed. The program is targeted to individuals who are motivated to improve their
situations and re-enter the work force.
Clara-Mateo Alliance: provides a 60 bed year-round shelter and casework counseling for
homeless individuals, couples and families who are actively working toward achieving their
goals and overcoming homelessness. The shelter is located at 795 Willow Road in Menlo Park
on the grounds of the Veterans Administration Hospital.
Emergency Housing Consortium: provides shelter and supportive services to homeless
persons at the National Guard Armory in Sunnyvale, the San Jose Reception Center, and other
transitional housing programs in Santa Clara County operated by the agency. Supportive
services include meals, child care, health care, information and referral, and job and life-skill~
training.
MayView Community Clinic: provides basic primary health care services, and health
education and referral services to uninsured low income and homeless individuals from the
Palo Alto area.
Palo Alto Housing Corporation - Barker Hotel Tenant Counseling: provides counseling and
intensive case-management services to the low income residents of the Barker Hotel at 439
Emerson Street in Palo Alto. Many of the residents have a history of homelessness and special
needs. This program of intensive case management and tenant support and preventative
services plays a vital role in helping the residents maintain their stability and housing.
Second Harvest Food Bank: distributes supplemental groceries and food services to very low
income seniors and people with disabilities through the Operation Brown Bag Program.
Groceries are distributed weekly at the Ventura School site to income eligible participants.
Social Advocates for Youth: provides crisis intervention, and short-term shelter and crisis
resolution treatment services for area at-risk youth who are beyond parental control, or have
run away, or are homeless. Supportive services are available which aim to .reunify families
when possible, and/or to teach independent living skills for those youth who are making the
transition to independence. The youth shelter is located in Mountain View.
Support Network for Battered Women: provides emergency shelter and supportive services
for victims of domestic violence, primarily battered women and their children. Supportive
services include food, transportation, counseling, and legal services. Victims often must deal
with issues of homelessness in the context of a violent domestic situation.
Urban Ministry. of Palo Alto: provides prepared meals, bagged groceries, a 15 bed year-round
rotating church shelter, jobs program, payeeship program, counseling, information and
referral, and other supportive services for low income, homeless persons. Urban Ministry’s
11
weekday morning drop-in center is located behind the Red Cross building at 400 Mitchell
Lane. Bagged groceries are distributed daily at the Downtown Food Closet located at 425
Hamilton Avenue in Palo Alto.
The Palo Alto Police Department (PAPD) has proposed the implementation of a new program to
address the needs of people who are homeless with the intent of assisting them in breaking the
cycle of homelessness. The program would provide an outreach team in collaboration with
County social services and mental health professionals. The intention would be to link the PAPD
with the services of a licensed clinical social worker from the County’s Office of Mental Health,
and a public health nurse to provide outreach, assessment, resources, referrals, case management
and other services directly to the homeless population, especially those with mental illness.
Funding for this program will be decided during the City’s regular budget process.
Transition From Homelessness to Permanent Housing
Shelter Plus Care. City staff have facilitated several large meetings with area non-profit service
providers in order to increase participation in the County’s "Shelter Plus Care"(S +C) Program
in Palo Alto. S+C is administered by the Office of the Santa Clara County Homeless
Coordinator. It is a Federal grant program which provides Section 8 rental assistance to
participating landlords on behalf of eligible tenants for a period of up to five years. Extensive
support services are a necessary and required component of the program which targets people who
are homeless and disabled.
Although there were 12 housing units available for S+C clients in Palo Alto, only two were being
utilized as of November, 1998. The coordination efforts with country-wide social service and
referral agencies, and the identification of strategies to overcome S + C Program obstacles, have
dramatically increased program participation. Currently, eleven of the twelve available units are
occupied by formerly homeless individuals from northern Santa Clara County. If the Program
continues to operate at capacity, the County may add additional family units to the Program.
The Barker Hotel,. owned and operated by the Palo Alto Housing Corporation (PAHC), has 26
units of permanent Single Room Occupancy (SRO) housing at rents affordable to persons with
incomes between 30% and 50% of the median income. Five of the Barker’s units are fully
accessible by wheelchair users. Priority for occupancy is for persons who are homeless (either
unsheltered or sheltered), persons with disabilities, and persons of extremely low incomes. Six of
the units are available with tenant based Section 8 subsidies through the "Shelter Plus Care"
program.
Alma Place, located at 753 Alma Street in Palo Alto, is also owned and operated by the Palo Alto
Housing Corporation. The project, a 106-unit single room occupancy residence hotel, is
affordable to low and very low income persons due to the layering of subsidies from City Housing
Reserve funds, a private bank loan, an Affordable Housing Program (AHP) Grant, and an award
of low income housing tax credits. The studio apartments rent for $330 to $490 per month and
are available to persons earning between $6,600 and $20,000 a year. Six of the units are available
with tenant based Section 8 rental subsidies through the "Shelter Plus Care" program.
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Collaborative Efforts
Santa Clara County Collaborative on Housing and Homelessness. City staff will continue working
with the Santa Clara County Collaborative on Housing and Homelessness ("Homeless
Collaborative") and other local jurisdictions, to increase the number of shelter beds, transitional
housing units, and supportive services for homeless individuals and families in north County. The
Homeless Collaborative was created in 1991 to provide a formalized, community-based process
to address the issues of homelessness on a regional basis. A Continuum of Care Plan was
developed for the County, which identified key components in addressing the long-term needs of
homeless persons and their families. The plan has been used to identify needs, gaps in services,
and to prioritize local requests for federal funding, so that scarce resources can be used as
effectively as possible.
The Homeless Collaborative, and the CDBG entitlement Cities of Santa Clara County, sponsored
a homeless survey in late and early February 1999. The survey analysis is currently being
conducted by San Jose State University’s Department of Management and Information Systems
(MIS) under the direction of Dr. Jerome Burstein. A report is expected to be issued in June 1999
which will analyze the survey responses and compare them with the results of the previous 1995
survey. The survey will be used to defme the statistical characteristics of the homeless population,
to identify service needs and trends, and to identify gaps in the County’s Continuum of Care Plan.
Some of the preliminary information from the survey follows:
1,805 individuals were interviewed in shelters, on the street, in encampments and at meal
and job training locations. A total of 2,084 adults and 958 children under the age of 18
were counted.
The results of the 1999 survey confirm recent estimates indicating approximately 20,000
people experience an episode of homelessness each year in Santa Clara County.
41% of the respondents indicated they were homeless for over one year-- the same as in
1995.
34% of the homeless surveyed are working, compared to 25% in the 1995 survey. 35%
have some college or more, and 36% have less than a high school education.
36% of those surveyed were Hispanic/Hispanic American, 35% were Caucasian, 18%
were African/African American, 4 % were Native American, and 3 % were Asian.
Female respondents, who were 33 % of those interviewed, identified the following reasons
for homelessness (in decreasing order): lack of affordable housing, the need for good
paying jobs, fleeing from domestic violence, and of lesser importance, substance and
alcohol abuse and physical disabilities.
Male respondents, who were 67 % of those interviewed, stated the principle reasons were
lack of affordable housing, the need for a good paying job, substance and alcohol abuse,
physical disabilities, and jail or prison records.
Those surveyed recommended that the most effective ways to end homelessness for
themselves and their families are by providing good paying jobs and affordable housing.
Secondarily, people need access to job training and/or appropriate treatment programs for
drug or alcohol abuse.
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Community. Working Group (CWG). The CWG was established in 1998 to assist in the
identification of a local site for an indoor "Opportunity Center" from which services could be
provided to persons who are very low income or homeless. The goal of the center would be to
provide counseling, case management and information and referral, as well as shower and laundry
facilities, lockers, a clothes closet and other related services. The CWG is comprised of
representatives from local churches, the Urban Ministry of Palo Alto, non-profit organizations,
Stanford University, City officials, City staff, unhoused persons, the Human Relations
Commission, and other interested community members. The CWG has received grants and
individual donations totaling approximately $50,000. This money will be used to support the site
search as well as other legal and consulting services which further the goals of the CWG.
Housing Related Services
Tenant/landlord counseling and mediation services for Palo Alto residents will be provided
through Project Sentinel in fiscal year 1999/00. CDBG funds will support the Palo Alto Housing
Corporation’s housing information and referral service which provides members of the .public,
particularly those with low incomes, assistance in their search for affordable housing. CDBG
funds will also be used to fund Mid-Peninsula Citizens for Fair Housing to combat housing
discrimination.
Analysis of Impediments to Fair Housing Choice
The City of Palo Alto completed an Analysis of Impediments to Fair Housing Choice on
February 6, 1996. That report identified a lack of housing options affordable to persons of low
and moderate income as the major impediment to housing choice. Housing discrimination was
also identified as an impediment, with cases based on familial status the most often reported.
However, the number of cases of discrimination against persons with physical and mental
disabilities has also been increasing. Palo Alto plans to undertake the following actions to foster
and maintain affordable housing, and to address housing discrimination during the 1999/00 fiscal
year:
Provide CDBG and local housing funds to Mid-Peninsula Housing Coalition for the acquisition
and rehabilitation of the Palo Alto Gardens Apartments to preserve the 156 units of one, two
and three bedroom apartments as affordable housing.
Provide CDBG funds to ALLIANCE for Community Care to rehabilitate the Waverley Street
House to be used as an affordable board and care facility for low income persons with mental
disabilities.
Continue to support the Human Relations Commission in their documentation and investigation
of hate crimes, and in their support of diversity and disability issues.
Continue to monitor the provision of fair housing services by MCFH to ensure that adequate
services are being provided, and that services are provided in the most cost effective means.
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Work with the Santa Clara County CDBG entitlement cities in their effort to conduct a county-,
wide study of fair housing issues and to further identify fair housing needs on a regional basis.
Continue the City’s funding support of affordable and supportive housing services which
provide housing information and referral, and tenant landlord mediation.
Provide funding to the local fair housing agency, Mid-Peninsula Citizens for Fair Housing
(MCFH) to reduce discrimination in housing by:
a.Investigating a minimum of 15 cases of housing discrimination
b.Conducting 25 consultations with persons who believe they have been discriminated
against
c.Maintaining a pool of 50 testers for investigations and conducting 3 trainings
d.Maintaining a panel of 10-15 attorneys for referral and coordinating an annual meeting
for participating attorneys
e.Running biweekly ads in the Palo Alto Weekly and daily ads in the San Jose Mercury
News; and running one display ad promoting fair housing
f.Distributing 100 fair housing brochures
g Running 20 public service announcements for local radio/TV broadcasts
h.Making 7 educational presentations to the community
I.Monitoring and reporting on four rental sites
j Showing the educational video on housing discrimination produced by MCFH on local
cable TV
Geographic Distribution
Housing Activities: The City will consider the provision of all types of housing assistance on a
Citywide basis consistent with the policies of the City’s Comprehensive Plan. The City does not
have specific target areas for housing activities but attempts to provide housing affordable to lower
income persons throughout the City.
Community Development Activities: Specific efforts have been coordinated in the Community
Services and Police Departments to focus on activities and services in the Ventura neighborhood.
A number of City sponsored programs and activities serving low and very low income persons
have either been undertaken or are proposed. A police substation was opened in the area with the
goal of improving contact with the community. The Ventura Neighborhood (Census tract 5107,
Block Group 2) has a large proportion of modest rental housing, a relatively high proportion of
minority and ethnic groups, and 48.46 % of the households are below the CDBG income eligibility
limits.
Amendments to Plan
Prior to the submission of any substantial change in the proposed use of funds, citizens will be
provided reasonable notice, of, and the opportunity to comment on, the proposed plan
amendments(s).
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Urgent Need Activities
In the evem of a local, state or federal disaster declaration for areas within the boundaries of the
City of Palo Alto, the City reserves the right to use CDBG or other available federal funds to abate
¯ immediate and necessary hazards. Such funds may be used for staff efforts, loans, or outright
grants to affected parties, as approved by City Council and allowable under the pertinent Federal
Guidelines.
Lead-Based Paint
The City requires testing and hazard reduction in housing rehabilitation efforts funded with
Federal and City housing funds.
Monitoring of Activities
The City will cominue to closely monitor the activities carried out to further the goals of the
Consolidated Plan. For all CDBG and HOME funded activities, an annual performance report
will be completed in accordance with federal requiremems detailing the dollars expended, the
beneficiaries served, and the program goals achieved. Additionally, City staff will monitor each
gram subrecipiem, as necessary, to insure compliance with all regulations governing their
administrative, financial, and programmatic operations, and to make sure the subrecipients achieve
their performance objectives within the prescribed schedule and budget.
Coordination
As part of the development process of the Consolidated Plan, the staffs of the CDBG entitlement
cities of Palo Alto, Sunnyvale, Mountain View, Santa Clara, Gilroy, Milpitas, San Jose, and the
Urban County of Santa Clara continue to meet to discuss issues of mutual concern and to share
information and strategies for addressing housing, homeless, fair housing, and other community
development needs. The meetings have helped the participants better understand the County and
nonprofit social service structure.
The City of Palo Alto cominues to collaborate with neighboring jurisdictions in San Mateo County
on issues relating to homelessness through the Clara Mateo Alliance Shelter. The 60 bed facility
located on the grounds of the Veterans Administration Hospital on Willow Road in Menlo Park
in San Mateo County is operated by the Salvation Army. The Clara Mateo Alliance provides
supportive services and emergency and transitional shelter beds to homeless individuals and
families.
Over the last several years, the entitlemem cities in Santa Clara County have cooperated in the
joim CDBG funding of a number of community developmem projects. Projects jointly funded
include Second Harvest Food Bank’s distribution center, the New Children’s Shelter, Emergency
Housing Consortium’s Homeless Reception Center, and Social Advocates for Youth’s group home
renovations. These efforts are expected to continue.
Public and assisted housing reform legislation passed in 1998 has brought new requiremems for
the Santa Clara County Housing Authority, the local public housing agency (PHA). The "Quality
Housing and Work Responsibility Act of 1998" requires PHAs to develop and implement five-year
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plans to describe their mission and long range goals and a strategy for achieving the identified
goals. These plans provide details about the PHA’s immediate operations, program participants,
programs and services. The PHA is required to bnsure that their plan is consistent with any
applicable Consolidated Plans for jurisdictions in which the PHA is located. This new requirement
will allow for some collaborative discussions on the role of the Santa Clara County Housing
Authority in meeting the housing needs of low income persons in Palo Alto.
To ensure a coordinated approach to the City’s human service funding efforts, the CDBG
Coordinator and the Administrator of Human Services meet to review and discuss applications
received through both the CDBG and HSRAP processes. Additionally, a member of the Human
Relations Commission serves on the CDBG Citizens Advisory Committee to avoid duplication of
effort and to assure collaboration within Palo Alto. The CDBG and housing staff attend and
participate in the semi-annual Human Services Provider Network meetings coordinated by the
Human Services Division to promote understanding and collaboration among the local public
service agencies.
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