HomeMy WebLinkAboutStaff Report 186-07City of Palo Alto
City Manager’s Report
TO:
ATTENTION:
FROM:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER
BUDGET
’07-’09
DEPARTMENT: PLANNING AND
C OMMUNITY ENVIRONMENT
DATE:APRIL 17, 2007 CMR: 186:07
SUBJECT:PROPOSED FISCAL YEAR 2007-2008 AND TENTATIVE 2008-2009
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
FUNDING ALLOCATIONS, 2007-2008 DRAFF ACTION PLAN AND
AMENDED CONSOLIDATED PLAN FOR THE PERIOD 2005-2010.
REPORT IN BRIEF
This report transmits the recommendations of City staff and the Citizens Advisory
Committee (CAC) for the expenditure of $800,525 in FY 2007/08 and an estimated
$757,000 in FY 2008/09 in Community Development Block Grant (CDBG) funds. This
is the first year of a two-year funding cycle coordinated with the Human Services
Resource Allocation Process (HSRAP) for fiscal years 2007/08 and 2008/09. The draft
2007/08 Action Plan includes the funding recommendations of staff and CAC. Also
included is an amendment to the adopted 2005-2010 Consolidated Plan to conform to
new HUD regulations.
RECOMMENDATION
Staff and the CDBG Citizens Advisory Committee recommend that the
Committee recommend to the City Council approval of the following:
Finance
1. Allocate CDBG funding as recommended by staff and the Citizens Advisory
Committee (CAC) in the draft 2007/08 Action Plan.
2.Adopt the minor amendments to the 2005-2010 Consolidated Plan to conform to the
new HUD regulations.
CMR: 186:07 Page 1 of 9
3.Authorize staff to submit the 2007/08 Action Plan to HUD by the May 15, 2007
deadline.
4.Authorize the City Manager, on behalf of the City, to execute the 2007/08 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 and
commitment of funds.
5. Tentatively allocate Fiscal Year 2008/09 funding as recommended.
BACKGROUND
Consolidated Plan
The 2005-2010 Consolidated Plan, adopted by Council on May 9, 2005, is a 5-year
strategic plan of action that addresses priority housing and community development
needs, and sets specific goals for attaining identified objectives. Each year, an Annual
Action Plan is prepared to identify specific projects to be funded to implement the
Consolidated Plan. The Consolidated Plan and the Annual Action Plan updates are
required by HUD in order for the City to receive federal funding from programs such as
the Community Development Block Grant (CDBG) or HOME Investment Partnership
Act. In 2006, HUD modified its Consolidated Plan and Action Plan requirements to
include a new performance measurement system. The~ purpose of the performance
measurement system is to better capture data for activities that are undertaken with
CDBG funding. As a result of the new policy, the City is required to identify both an
"Objective" and an "Outcome" for each proposed activity. This year’s Action Plan
includes the new performance measure requirements, and a separate Consolidated Plan
amendment incorporates those requirements into the adopted 2005-2010 Consolidated
Plan.
CDBG Regulations
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 (the Act) 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."
HUD regulations require that all activities must meet one of the three national objectives
of the CDBG Program:
Benefit low- and very-low-income persons;
Aid in the prevention or elimination of slums or blight; or
Meet other community development needs having a particular urgency, or posing
a serious and immediate threat to the health or welfare of the community.
Palo Alto has historically expended all of its CDBG funds on projects benefiting low- and
very-low-income persons.
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There are three primary CDBG program activity areas:
Public Services: Social service activities that benefit low-income persons. The maximum
amount that can be expended under this category is 15 percent of the grant allocation and
15 percent of the program income for the previous year. For fiscal year 2007/08, the
maximum available for public services is $121,054.
Planning and Administration: This category is used to reimburse for fair housing
activities, CDBG program management, oversight and coordination, environmental
reviews, and general planning activities. Federal regulations limit the amount that can be
spent in this category to 20 percent of the grant and 20 percent of the estimated program
income for the following year. For fiscal year 2007/08 funding is limited to a maximum
of $151,406. The City’s reimbursement for the cost of administering the CDBG program
is limited by the Cap. Although the actual cost of administering the program is higher the
recommended funding allocation is the maximum reimbursement allowed given this
year’s grant allocation. The balance of CDBG administrative costs, approximately
$20,000, is subsidized by the City’s General Fund.
Capital Projects: Capital improvement activities such as housing acquisition,
rehabilitation, accessibility, and public improvements are the primary focus of the CDBG
program. There are no funding limitations in this category.
CDBG Applications
Applications for the 2007/09 two-year funding period were mailed to area housing and
human service providers on October 5, 2006 and posted to the City’s website. A notice
announcing the availability of applications for 2007/08 and 2008/09 CDBG funding was
published in the Palo Alto Weekly on October 6, 2006. A proposal-writing workshop
was conducted on October 30, 2006 to assist applicants with program regulations and
project eligibility questions. The completed applications were due December 8, 2006.
The City received 18 applications for funding from outside organizations totaling
$1,658,589 for FY 2007/08 and 16 applications for funding totaling $1,294,029 for F.Y
2008/09.
Citizen Participation
The CitY follows a Citizen Participation Plan to encourage public participation in the
CDBG allocation and assessment process. The Citizen Participation Plan calls for a
seven-member Citizens Advisory Committee (CAC), six of whom are selected by the
Mayor. One slot on the CAC is reserved for a member of the City’s Human Relations
Commission (HRC). Members of this year’s CAC were: Donald Mendoza (HRC
Liaison), Carol Anderson, Susie Brain, Jeff Chen, Lynn Fielder, Michae~l Jakoby, and
Richard Schoelerman. The Committee met weekly during January, February and the first
two Thursdays in March 2007 to discuss and evaluate the applications, interview the
applicant agencies and come to a consensus on funding recommendations.
DISCUSSION
Consolidated Plan
CMR: 186:07 Page 3 of 9
The draft 2005-2010 Consolidated Plan amendment and draft 2007/08 Annual Action.
Plan update are available for public review and comment during the period March 28 to
April 30, 2007 (Attachment B). The goal for the 2005-2010 five-year period is to
provide 125 units of permanent, affordable housing. Palo Alto’s CDBG program
continues to be directed toward: expanding and maintaining the affordable housing
supply; promoting housing opportunities and choices; maintaining and improving
community facilities; and providing supportive services for targeted low-income groups,
including persons who are homeless, persons with disabilities, the elderly, and other
special needs groups. All of the proposed projects for CDBG funding for fiscal year
2007/08 and fiscal year 2008/09 address the priority housing and supportive service
needs identified in the adopted Consolidated Plan.
2007/08 Funds Available for Allocation
The total amount available for allocation in fiscal year 2007/08 is $800,524. The City’s
2007/08 CDBG grant is $712,032, a nominal increase over the prior year’s grant of
$711,680. There are $10,875 in funds remaining from previous projects that are being
reallocated to new projects. Also included is $45,000 in program income (income
generated directly from the use of CDBG funds) expected to be received in 2007/08, plus
$32,617 in program income received in previous years in excess of the estimated amount.
In summary:
$712,032
$10,875
$5,000
$40,000
$ 32,617
$800,524
FY 2007/08 CDBG entitlement grant from HUD
Reallocation of other previous funds
Estimated program income for 2007/08 from the City’s Housing
Improvement Program (HIP), a single-family residential
rehabilitation program that is no longer operational
Estimated program income for 2007/08 from the Palo Alto
Housing Corporation that is generated when rental income exceeds
expenses on specific properties acquired or rehabilitated with
CDBG funds
Actual program income received in previous years in excess of the
estimated amounts that were allocated
TOTAL AVAILABLE FOR ALLOCATION
FY 07/08 - Funding Recommendations
The chart on the following page shows the applications that were received accompanied
by the CAC and staff funding recommendations. For public service requests, the staff
and CAC recommended allocation of at least a portion of the requested funding for all the
applicants except for Mid-Peninsula Alano Club, Catholic Charities - Housing Search
Services and the Day Worker Center of Mountain View. Funding was not recommended
for the Alano Club because staff and the CAC had concerns regarding the organization’s
financial and administrative expertise. ’ Staff and the CAC did not recommend funds for
the Day Worker Center because these services do not benefit a significant number of low
income workers in Palo Alto. Staff and the CAC determined that funding for the
Housing Search Services are currently provided by other agencies in Palo Alto.
Attachment A is a narrative explaining the funding requests and funding
recommendations in more detail. It should be noted that changes in the allocations might
CMR: 186:07 Page 4 of 9
be necessary in the event that the City’s entitlement grant is increased or decreased when
the President signs the actual budget.
The following capital projects requested funding for the 2007/08 fiscal year:
¯ESO’s Housing and Energy Services Program
¯Eden Housing/Community Housing Alliance’s 875 Alma Street Senior Housing
Program,
¯Bridge Housing’s Fabian Way Senior Housing Project,
¯Lytton Gardens’ new shower enclosure project, and
¯Stevenson House’s interior common area renovation projects are requesting
funding for the 2007-2008 fiscal year.
Staff and CAC recommended funding Bridge Housing’s Fabian Way Senior Housing
project and Stevenson House’s interior common area renovation projects for 2007-
2008 fiscal year because the projects have all development approvals in place and
will likely be able to draw CDBG funds for the next year. The Eden
Housing/Community Housing Alliance Project is very preliminary and has not
received any development approvals to date. Since staff is working with Lytton
Gardens on another HUD funded project, the recommendation is to delay the Lytton
Gardens shower project to a subsequent year. Staff and the CAC do not recommend
funding for ESO because of concerns relating to the organization’s financial
instability.
CMR: 186:07 Page 5 of 9
FY 08/09 - Funding Recommendations
The two-year process provides the opportunity for City and non-profit staff to undertake longer-
term strategic planning and maximize available funding resources.
FY 08/09 applications from organizations seeking funding in the second year of the two-year
cycle also were submitted on December 8, 2006 and were evaluated by the CAC and staff. At
this time, the Council is asked to only review and approve tentative allocations for 2008/09
since the City Council will be required to adopt a 2008/09 Action Plan next year. At that time,
the Council may adjust the tentative allocations depending on the actual funds available.
The amount of the City’s CDBG allocation in FY08/09 is uncertain because of federal budget
fluctuations and the chance of re-evaluation of the CDBG allocation formula. If the new
formula change is adopted, CDBG grant funding will be targeted to communities with higher
poverty levels. Based on this information, the tentative funding recommendations by the CAC
and staff assume that the City’s allocation will not increase.
Funding requests for public services were similar to those submitted in FY 2007/08 with one
exception. The Palo Alto Housing Corporation (PAHC) SRO resident Support Services is
requesting a slight increase in funding for 2008/09. Funding of CDBG administration and fair
housing is also recommended at the FY 2007/08 level, with a proportional decrease or increase
should the funding allocation change.
Tentatively, staff and CAC recommended funding the Eden Housing /Community Housing
Alliance’s project on 875 Alma Street for $400,000 and Lytton Gardens new shower enclosure
installation project for $84,696 in 2008-2009. More specifics about the viability of the 875
Alma Street project should be available prior to next year. The 2008-2009 funding allocation
will be reviewed and adjusted when the actual amount of the allocation and program income is
known.
Commitment of Funds
HUD regulations require that CDBG funds be expended in a timely manner. The regulatory
requirement is that no more than 1.5 times a jurisdiction’s annual entitlement grant amount may
remain in the letter of credit 60 days prior to the end of the program year. In an effort to reduce
the backlog of unspent CDBG funds, HUD employs monetary sanctions against jurisdictions
that exceed the regulatory standard. For this reason, all funding applications were scrutinized
to insure the readiness of the program or project to move forward and expend funds in a timely
manner.
POLICY IMPLICATIONS
All of the applications recommended for funding in fiscal years 2007/2008 and 2008/09 are
consistent with the priorities established in the City’s adopted Consolidated Plan for the period
2005 to 2010. They are also consistent with the housing programs and policies in the adopted
Comprehensive Plan.
TIMELINE
Funding recommendations made by the Finance Committee will be forwarded to the City
Council for review and approval at a public hearing scheduled for May 7, 2007. Subsequently,
CMR: 186:07 Page 8 of 9
the Annual Action Plan and Consolidated Plan update will be submitted to HUD to meet the
May 15, 2007 deadline.
ENVIRONMENTAL REVIEW
For purposes of the National Environmental Policy Act (NEPA) and the California
Environmental Quality Act (CEQA), budgeting in itself is not a project. 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 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, HUD and NEPA regulations have been
satisfied for each particular project.
ATTACHMENTS
Attachment A: Staffand CAC recommendations for FY 2007/08 and 2008/09 CDBG Funding
Attachment B: 2007/08 Draft Annual Action Plan
Attachment C: Draft Amended Consolidated Plan for the period 2005 to 2010
PREPARED BY:
Chitra Moitra, Planner - CDBG
DEPARTMENT HEAD:
/ST~EVE EIIC{SLIE, Director
Planning and Community Environment
CITY MANAGER APPROVAL:
City Manager
CDBG Citizens Advisory Committee Members
2007/09 CDBG Applicant Agencies
CMR: 186:07 Page 9 of 9
ATTACHMENT A
STAFF AND CITIZENS ADVISORY COMMITTEE (CAC)
RECOMMENDATIONS FOR FISCAL YEAR 2007/08 AND FISCAL
YEAR 2008/09
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING
PUBLIC SERVICE APPLICATIONS
1. Catholic Charities - Long-Term Care Ombudsman
2625 Zanker Road, San Jose, CA 95134
FY 07/08
FY 08/09
Funding Request
$7,800
$7,800
2006/07 Funding
$5,800
Staff/CACRecommendation
$7,500
$7,500
Proposal: Agency provides confidential advocacy and complaint investigation services to the
approximately 800 residents in Palo Alto’s 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 care and quality of life in the
long-term care setting.
Priority Need: Supportive services for lower-income persons.
Discussion: The Ombudsman Program services are not duplicated by any other agency, and provide
an important presence in long-term care facilities. Local volunteers are utilized to provide the
majority of site visits. The Ombudsman Program has exceeded their targeted goal of serving 320
persons by mid fiscal year 06-07, and anticipates serving at the same rate for the rest of the fiscal
year. Agencyproposes contacting/interviewing 320 Palo Alto residents and conducting a minimum
of 28 complaint investigations in the 07-08 fiscal year.
2.Inn Vision the Way Home - Opportunity Center/Urban Ministry Program
33 Encina Way, Palo Alto, CA 94301
Funding Reque~2006/07 Funding Staff/CACRecommendation
FY07/08 $30,000 $21~250 $30,000
FY 08/09 $30,000 $30,000
Proposal: Agency proposes to provide basic survival services to the local homeless population.
Services include a light breakfast, used clothing, toiletries, phone, mail, messages, bus passes, and
referrals to other agencies. Urban Ministry caseworkers are available to assist clients find shelter,
medical care, employment and to help with other problems.
Priority Need: Shelter and services for persons who are homeless.
Discussion: The Urban Ministry’s Opportunity Center program serves between 100-120 homeless
individuals from 8:30 am to 4:30 pm each weekday, while the nighttime shelter at Hotel de Zink
provides shelter to 15 homeless people per night through out the year. Urban Ministry/Inn Vision
has historically exceeded their goals each year. Opportunity Center/Urban Ministry Program has
proposed serving a total of 885 unduplicated individuals by June 2008. Staff and the CAC
recommend that Urban Ministry’s funding be increased since their hours of service has gone up from
half a day to a full day after they moved to their new location. Urban Ministry/Opportunity Center
served 1,928 individuals through December 2006, already exceeding their goals set for the fiscal year
2006-2007. In addition, Urban Ministry has a strong presence in Palo Alto and serves a large
number of people who might not otherwise seek supportive services.
3.Inn Vision the Way Home - Clara-Mateo Adult Singles/Couples Housing Program
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
FY 07/08
FY 08/09
Fun~ng Request
$35,000
$35,000
2006/07 Funding
$18,322
Staff/CAC Recommend~ion
$17,500
$17,500
Proposal: Clara-Mateo Alliance (CMA) provides a 63-bed shelter for homeless individuals and
couples, and six transitional units for homeless individuals and couples. They provide supportive
services aimed at increasing self-sufficiency and finding and maintaining stable housing. The shelter
targets the under-served populations such as homeless persons with disabilities, mental illness,
psychiatric disorders, and chronic substance abusers.
Priority_ Need: Shelter and services for persons who are homeless
Discussion: This program is an important link in the county’s homeless continuum of care. It has
been operating since 1997 and serves individuals and couples. It is a collaborative effort with the
Veterans Administration, and the counties of Santa Clara and San Mateo. The facility serves the
homeless sub-populations with some of the greatest needs. It is anticipated that the total program will
provide 1,000 nights of care to a minimum of 75 Palo Alto individuals and couples. The adult
program is about halfway through meeting its 2006-07 targets in December 06. 23 individual Palo
Alto residents have already been served byDecember 06. Staff and the CAC recommend a slight
reduction in funding in order to fully fund Inn Vision’s request for the Opportunity Center.
2
4.Clara-Mateo Alliance (CMA)/InnVision - Family Shelter Wing
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
Funding Request 2004/05 Funding Staff/CAC Recommendation
FY 07/08 $25,000 $18,725 $17,500
FY 08/09 $25,000 $17,500
Proposal: The Clara-Mateo Alliance has 18 emergency shelter beds and six transitional housing
units devoted to homeless families. Annually, 125-160 individuals are provided with housing and
supportive services. The agency is proposing to serve a minimum of three homeless families with
children from Palo Alto. In addition, they provide extensive on-site supportive services to all
program participants, including food, clothing, medical care and case management.
Priority Need: Shelter, supportive services, and transitional housing for homeless families, and a Day
Center for homeless women and children.
Discussion: This project is an important resource for the homeless families with children in northern
Santa Clara County. Staff and the CAC recognize the significance of the project; but, due to limited
resources, recommend a slight reduction in funding in order to fully fund Inn Vision’s request for
the Opportunity Center.
5. Mid-Peninsula Alano Club - MPAC Operations
1155 Reed Avenue, Sunnyvale, CA 94086
FY 07/08
FY 08/09
Funding Request
$10,000
$10,000
2006/07 Funding
$5,000
Staff/CAC Recommendation
$0
$0
Proposal: The Mid-Peninsula Alano Club (MPAC) provides a physical location where those in and
or seeking recoveries from addictive substances may gather, meet, share and support one another.
MPAC exists to provide a safe, clean and sober environment for all those seeking and/or in
recovery from addictive substances.
Priority Need: Supportive services for lower-income persons.
Discussion: Staff and the CAC recommend no funding for this program. Similar types of services
are provided to Palo Alto residents at the Opportunity Center. Staff and the CAC believe that this
organization requires more financial and administrative expertise to fully comply with federal
regulations.
6.Emergency Housing Consortium (EHC) - Palo Alto HOMES Program
2665 N.1st Street, Ste. 210, San Jose, CA 95134
FY 07/08
FY 08/09
Funding Request
$10,000
$10,000
2006/07 Funding
$7,760
Staff/CACRecommendmion
$7,500
$7,500
Proposal: Agency provides emergency shelter and comprehensive supportive services to homeless
men, women, and 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, the Sobrato Family Living Center in Santa
Clara, and various other transitional housing programs in the County. Supportive services include
prepared meals, counseling, child care, transportation, case management, job counseling, and skills
workshops to help secure housing and/or employment.
Priority Need: Shelter and services for persons who are homeless
Discussion: This agency provides the majority of homeless shelter services in Santa Clara County
and is also an important resource for persons from the Palo Alto area. For the fiscal years 07-08 and
08-09 they plan to serve 50 unduplicated Palo Alto homeless residents in transitional housing and
provide 3,500 person shelter days. Through December 2006, EHC has met half of the proposed
goals for the 06-07 fiscal year.
7. Emergency Housing Consortium (EHC) - Off the Streets Project
2665 N.1st Street, Ste. 210, San Jose, CA 95134
FY 07/08
FY 08/09
Funding Request
$15,000
$15,000
2006/07Funding
N/A
Staff/CAC Recommendation
$7,500
$7,500
Proposal: EHC Life Builders’ Off the Street Project is a new project for homeless people addicted to
alcohol. It addresses the community need by expanding the affordable housing supply available to
chronically homeless individuals with extremely low or no incomes. It also provides comprehensive
support services that enable participants to gain self sufficiency and improve their well-being.
Priority Need: Shelter and services for persons who are homeless.
Discussion: This project builds on Santa Clara ,County’s existing effort to end chronic homelessness
and will provide 26 units of permanent housing scattered through the county for the chronic
homeless who are addicts and have no history of transitional or permanent housing in the last five
years. The project aims to house 4 chronically homeless Palo Alto residents (15% of their project
4
clients) in the 2007-2008 fiscal year. Staff and CAC view this as a pilot project that will target a
section of the homeless population that needs maximum support.
So Palo Alto Housing Corporation (PAHC) - SRO Resident Support Services
Barker Hotel: 439 Emerson Street, Palo Alto, CA 94301
Alma Place: 753 Alma Street, Palo Alto, CA 94301
FY 07/08
FY 08/09
Funding Reque~
$39,254
$42,245
2006/07 Funding
$20,270
Staff/CAC RecommendNion
$25,000
$25,000
Proposal: The Palo Alto Housing Corporation maintains two SRO properties: the Barker Hotel and
Alma Place. The 25-unit Barker Hotel serves a very low-income population of residents with a
history ofhomelessness and special needs. Alma Place is a 106-unit SRO apartment building that
serves very low-income residents. Two service coordinators, one at Alma Place and one at the
Barker Hotel, provide support to individual tenants as needs or problems arise, and on an on-going
basis. These intensive case management and supportive services play a vital role in helping the
residents maintain their stability and housing.
PrioriW Need: Prevention of homelessness
Discussion: By December 2006, all the targeted goals and objectives for the fiscal year 06/07 were
already met. This service program has dramatically reduced turnover and eviction rates at local
SRO’s. PAHC requests slight additional funding in the second year, but due to the limited HUD
funding and increases in applicants and funding amounts, staff and the CAC recommends no change
in the current funding amount for the next fiscal year.
9.Peninsula Association for Retarded Children and Adults - Page Mill Court
2700 Ash Street, Palo Alto, CA 94306
FY 07/08
FY 08/09
Funding Request
$10,000
$10,000
2006/07 Funding
N/A
Staff/CAC Recommendation
Proposal: PARCA provides much needed affordable housing with support services to people with
developmental disabilities in Page Mill Court. Page Mill Court is a 24 unit assisted living Apartment
complex serving 30 very low income adult men or women with developmental disabilities. Page
Mill Court’s success is the result of both affordability of the apartment units and the integrated
supported living model of services for the tenants that PARCA provides and coordinates.
Priority Need: To provide affordable housing with support services for people with developmental
disabilities.
Discussion: Application Withdrawn
10.Catholic Charities -Housing Search Services
2625 Zanker Road, San Jose, CA 95134
FY 07/08
FY 08/09
Funding Request
$20,000
$20,000
2006/07 Funding
N/A
Staff/CAC Recommendation
$0
$0
Proposal: The Catholic charities Housing Search Services helps low income and homeless
individuals find low cost homes based on individual needs, and provides supportive services like
financial training and vocational training. Individuals and families are provided one on one
counseling sessions and other types of assistance required to help them locate stable and appropriate
housing.
Priority Need: Provides housing search services, supportive services, vocational trainings, financial
education to low income and homeless individuals and families.
Discussion: This is a new service being provided by Catholic Charities, and its goal is to provide
housing related information and referral and all related assistance to 50 Palo Alto households. Staff
and CAC feel that similar type of service is currently provided by the Opportunity Center and the
Palo Alto Housing Corporation. Additionally, the service is not exclusively for low income people.
Staff and CAC recommend against funding this project.
11. Shelter Network- Services for Homeless Palo Alto Families and Single Adults
Haven Family House: 260 Van Buren Road, Menlo Park, CA 94025
FY 07/08
FY 08/09
Funding Request
$30,000
$30,000
2006/07 Funding
$16,375
Staff/CAC Recommendation
$8,500
$8,500
Proposal: Shelter Network operates several facilities that provide housing opportunities for the
homeless in San Mateo County. Most of Palo Alto residents are served at Haven Family House. It
provides transitional housing and a comprehensive array of supportive services to homeless families
in this newly constructed facility located in Menlo Park. An on-site licensed childcare facility is also
available at Haven Family House. Shelter Network’s housing programs allow residents to re-connect
with permanent housing, jobs, and the skills and resources necessary to break the cycle of
homelessness.
Priority Need: Transitional housing and supportive services for homeless families with children.
Discussion: Shelter Network’s facilities are important resources for homeless individuals and
families with children from northern Santa Clara County. Although the Shelter Network expects to
serve 600 single men and women and 750 families in the fiscal years 2007-2009; of this, it is
expected that only three to eight families from Palo Alto will be served at the family facilities
(representing approximately 8 to 24 parents and children). Shelter Network also plans on serving an
additional 20-30 homeless individuals in their Maple Street shelter. Staff and CAC recommend a
reduction in the funding level from previous years due to this low number of Palo Alto families
participating in the program.
12.Day Worker Center of Mountain View-Day Worker Center
1880 California Street, Mountain View, CA 94041
FY 07/08
FY 08/09
Funding Request
$15,000
$15,000
2006/07 Funding
N/A
Staff/CAC Recommendation.
$0
$0
Proposal: The Day Worker Center of Mountain View connects day laborers with employers,
provides them with a secure meeting place, helps them to negotiate wages and ensures both parties
are protected. Workers are also provided free legal and medical services. .
Priority Need: Supportive services for lower-income persons.
Discussion: Staff and the CAC do not recommend funding for this program because it does not
benefit significant number of low income workers from Palo Alto.
FAIR HOUSING/ADMINISTRATION
13.Fair Housing Services - Determined through RFP
FY 07/08
FY 08/09
Funding Request
$26,800
$26,80O
2006/07 Funding
$26,800
Staff/CAC Recommendation
$26,800
$26,800
Proposal: The City of Palo Alto will issue a joint Request for Proposals (RFP) to Provide Fair
Housing Services for North Santa Clara County with the Cities of Mountain View and Sunnyvale.
The Cities seek investigation, counseling and legal referrals for victims of housing discrimination;
community education and outreach regarding fair housing law and practices; and research, analyses,
and reporting for City staff and officials regarding fair housing practices.
Priority Need: Fair Housing Services
Discussion: This is the third time that the three cities are collaborating on fair housing services. A
joint RFP was issued in 2003 for a two-year contract and the three jurisdictions selected one fair
housing provider. The Department of Housing and Urban Development (HUD) regulations require
CDBG entitlement jurisdictions to affirmatively further fair housing choice.
13.City of Palo Alto - Department of Planning and Community Environment
250 Hamilton Avenue, Palo Alto, CA 94301
FY 07/08
FY 08/09
Funding Request
$178,000
$186,900
2006/07 Funding
$124,536
StafffCAC Recommend~ion
$124,536
$124,536
Proposal: Funding is requested to reimburse the City’s General Fund for costs related to the overall
management, coordination, monitoring and evaluation of the CDBG Program, including oversight of
public service contracts, data gathering, studies, environmental reviews, analysis, plan preparation,
and the identification of actions for implementation of plans.
Priority Need: CDBG Program Administration and support
Discussion: Although the actual cost of administering the CDBG program is higher than the
recommended funding amount, the reimbursement is limited by the regulatory CAP. The gap
between the actual costs and the reimbursement is subsidized by the City’s General Fund.
CAPITAL AND/OR HOUSING PROJECTS
14.Economic and Social Opportunities - Housing and Energy Services Program
1445 Oakland Road, San Jose, CA 95112
FY 07/08
FY 08/09
Funding Reque~
$60,000
$60,0O0
2006/07 Funding
$60,000
Staff/CAC Recommendation
$0
$0
Proposal: ESO proposes to assist a minimum of 30 low-income Palo Alto households with home
improvement services. These services are designed to identify and improve hazardous conditions in
homes, improve accessibility and use for seniors and individuals with disabilities, improve energy
efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future.
Priority_ Need: Conservation of energy and improved accessibility for individuals with physical
disabilities
Discussion: Staff and the CAC do not recommend funding ESO for this next funding cycle. This is
based on a number of reasons: uncertainty and inadequacy in the proposal, as well as ongoing
concerns relating to inadequate programmatic and financial management systems. Furthermore, the
City of Palo Alto Department of Utilities provides similar services to Palo Alto residents (the REAP
Program and the Weatherization Program) for a very nominal amount and also have a Senior Home
Repair Program with Avenidas.
15. Eden Housing/Community Housing Alliance - 875 Alma Senior Housing
875 Alma Street, Palo Alto, CA 94301
FY 07/08
FY 08/09
Funding Request
$500,000
$500,000
2006/07 Funding
N/A
Staff/CAC Recommendation
$0
$400,000
Proposal: Eden Housing Inc. (Eden) and Community Housing Alliance Inc. (CHA) have proposed a
project at 875 Alma Street to construct 34 unit affordable senior rental housing. The housing is
targeted for very low income seniors with income at or below 50% of the Area Median Income.
Eden and CHA are requesting $1,000,000 of CDBG funds ($500,000 for 2007-2008 and $500,000
for 2008-2009) for site acquisition at 875 Alma Street, currently occupied by Palo Alto Hardware.
Eden and CHA plan to purchase this 10,500 square foot site by January 2009 and lease it back to the
hardware store until July 2010. In addition to this project at 875 Alma Street, Eden and CHA are
planning to build a mixed use project at 801 Alma Street anticipated for completion by July 2010.
The mixed use project could provide a new larger first floor commercial space for the hardware store
and an affordable family rental project on the three floors above subject to City Council
endorsement. The proposed plan calls for the hardware store to purchase the new commercial
condominium space from Eden and CHA.
Priority Need: Acquisition of affordable rental housing for seniors.
Discussion: Staff and the CAC do not recommend funding Eden Housing and CHA in fiscal year of
2007-2008 because the project has not received any development approvals or Council review and
support. Staff and CAC recommend a tentative allocation of $400,000 for this project in 2008-2009
after the City Council has a chance to review the proposal. If the project does not receive support,
the funding can be allocated to another project.
9
16. Bridge Housing Corporation - Fabian Way Senior Housing
901 San Antonio Road, Palo Alto, CA 94306
FY 07/08
Funding Request
$383,929
2006/07 Funding
N/A
Staff/CAC Recommendation
$383,929
Proposal: The Bridge Housing Corporation is developing a new 56 unit senior affordable
housing community in Palo Alto, called the Fabian Way Senior Apartments. It will provide
housing for very low-income seniors with household earnings from 25% to 50% of Area Median
Income. This project is contiguous to the TKCJL redevelopment effort currently underway to
develop condominiums, a recreation center and a senior assisted living community.
Priority Need: Acquisition of affordable rental housing for seniors
Discussion: Staff and the CAC recommend funding for this project as it provides housing to low
income senior citizens. Though no preference will be given to Palo Alto senior residents, the project
provides a positive effect on the community by providing high quality senior housing in the
community. The Bridge Housing Corporation has requested funding for the fiscal year 2007-2008
only.
17. Lytton Gardens- New Shower Enclosures
437 Webster Street, Palo Alto, CA 94301
Funding Request 2006/07 Funding Staff/CAC Recommendation
FY 07/08 $103,300 $60,000 $0
FY 08/09 $0 $84,696
Proposal: Lytton Gardens owns and operates several facilities that provide affordable housing for
seniors with varying needs and resources. This is one of the few HUD subsidized senior housing
facility in the mid-Peninsula, providing quality living conditions to senior citizens. The facility is 30
years old, and the request is to fund renovation of 50 bath/shower enclosures in the independent
housing units. These upgrades are considered necessary for the safety and welfare of the frail elderly
residents.
Priority Need: Rehabilitation of affordable rental housing
Discussion: Staff and CAC recommend funding this project in fiscal year 2008-2009. The City of
Palo Alto is funding another project with Lytton Gardens in this fiscal year and would want to
complete the outstanding project prior to awarding additional funding.
10
18. Stevenson House - Interior Common Area Renovation
455 E. Charleston Road, Palo Alto, CA 94306
FY 07/08
FY 08/09
Funding Request
$159,506
$270,284
2006/07 Funding
$417,646 for Fire Alarm
& Windows/Doors
Upgrade
Staff/CAC Recommendation
$144,259
Proposal: Stevenson House provides 120 units of affordable rental housing to tow-income
seniors. Since seniors are living longer and there are almost no assisted living facilities for low-
income seniors, Stevenson House is attempting to provide supportive services to their residents to
help them maintain their independence as long as possible. Their proposal for the fiscal year 2007-
2008 is to renovate the Interior Common Area, namely replacing hallway carpet with heavy duty
laminate, install carpet runners, replace old vinyl tiles with new vinyl tiles, and paint the interior
common area walls excluding the basement. For the fiscal year 2008-2009, their proposal is to work
on Exterior Common Area Renovation, consisting of sidewalk and parking area renovation, awning
replacement etc.
Priority Need:
Rehabilitation of affordable rental housing
Discussion: Staff and the CAC recommend $144,259 in funding for this project in fiscal year
2007/08. Currently staff is working with Stevenson House on its last fiscal year’s project of
windows/doors retrofit and fire alarm upgrades. Renovation of the interior and exterior common
areas would provide residents with a safe and pleasant living environment.
11
ATTACHMENT B
CITY OF PALO ALTO
Housing and Community Development
2007/2008 DRAFT ACTION PLAN
Annual Update of the City’s Consolidated Plan for the Period
July 1, 2005 to June 30, 2010
Public Review Period March 28, 2007 - April 30, 2007
Prepared by Departmem of Planning & Community Environmem
250 Hamilton Avenue
Palo Alto, California 94301
Steve Emslie, Director
For Information, Please Contact: Suzanne Bayley, CDBG Contract Planner
Planning Division, City of Palo Alto (650) 329-2428
Executive Summary
This one year Action Plan describes the eligible activities that the City intends to undertake in
fiscal year 2007/08 to address the needs and implement the strategies identified in the City’s
adopted Consolidated Plan for the period July 1, 2005 to June 30, 2010. It describes the activities
that the City will fund with Community Development Block Grant (CDBG) funds in fiscal year
2007/08 to address priority housing and non-housing community development needs and to
affirmatively further fair housing choice. It serves as the City’s application for federal funds
under the Department of Housing and Urban Development (HUD) formula grant programs.
Performance Measurement Obiectives and Outcomes
HUD has modified its Consolidated Plan and Annual Action Plan requirements to include a new
performance measurement system. The purpose of the performance measurement system is to
better capture data on a national level for the activities that are undertaken with CDBG funding
at the local level. This system will help quantify and measure program outcomes in order to
determine how well programs and activities are meeting established needs and goals. As a result
of the new policy, the City is required to identify both an objective and outcome for each
proposed activity. The objective and expected outcome is identified in this report for each
proposed activity. The attached draft amendment to the City’s 2005-2010 amends the required
charts to provide the framework for tracking the objectives and outcomes.
The City intends to provide funding for various activities, which are consistent with the adopted
Consolidated Plan. The City will undertake two housing activities which meet the objective of
providing decent affordable housing. Housing projects that are planned for 2007/08 include
assistance to Bridge Housing for the acquisition/development of 56 units of senior rental housing
known as the Fabian Way Senior Housing Project. This project has the outcome of providing
new housing affordability by creating decent affordable housing.. Stevenson House, .an existing
120-unit subsidized senior housing development, will undertake an interior common area
renovation project which will have the outcome of improving sustainability by enhancing decent
affordable housing.
The City will also provide funding for several public service projects, which all have the
objective of creating a suitable living environment, and the outcome of enhanced accessibility to
a suitable living environment or decent affordable housing. The proposed public service projects
are: Emergency Housing Consortium - Emergency Shelter; Emergency Housing Consortium -
Housing and Supportive Services; Palo Alto Housing Corporation- Single Room Occupancy
(SRO) Resident Support Services; InnVision/Urban Ministry - Opportunity Center Drop-In
Services; InnVisioniClara-Mateo Alliance - Family Housing Program; InnVisioniClara-Mateo
Alliance - Adult and Couples Housing Program; Shelter Network - Mid-Peninsula Housing
Program; and Catholic Charities - Long-Term Care Ombudsman program.
Evaluation of Past Performance
The City has historically allocated CDBG funds to activities that benefit low and moderate
income persons, with the top priority being increasing affordable housing opportunities in the
City. The City has one of the most expensive housing markets in the country, due to the lack of
available land. In recent years, the City has assisted in the creation of 142 new affordable
housing units, with Oak Court apartments, a 52-unit affordable housing complex and the
Opportunity Center, a multi-service center with 89 units of affordable housing. Oak Court is
fully occupied as is the Opportunity Center which opened for occupancy in the fall of 2006.
Additionally, the City assisted Community Housing Alliance in the acquisition of an existing 10-.
unit Alma Garden apartment complex in order to increase the supply of housing affordable to
low income persons. The City intends to continue to support the creation of affordable housing
and to maintain the existing affordable housing stock, through preservation or rehabilitation
activities.
Citizen Participation
The City of Palo Alto has an adopted Citizen Participation Plan that provides for a seven-
member CDBG Citizens Advisory Committee (CAC). The CAC process encourages public
participation in the CDBG allocation and evaluation review process. Fiscal year 2007-2008 is
the first year of a two-year funding cycle. The CAC met on January 16, 23 and 30, February 8,
15, 22, and March 1, 2007 to review and evaluate the applications, interview the applicant
agencies, review the Consolidated Plan priorities, and make funding recommendations on the
applications submitted for 2007/08 CDBG funding and preliminary recommendations for
applications submitted for 2008/09 CDBG funding.
The City made the draft Action Plan available for public review from March 28 to April 30,
2007. The City placed an ad in the Palo Alto Weekly on March 21, 2007 and also sent numerous
notifications to interested parties. The draft Action Plan was available at the Planning
Department in City Hall and was also posted to the City’s CDBG website for the duration of the
public review period. The public was also invited to attend two public hearings, one before the
City’s Finance Committee on April 17, 2007 and one before the full City Council on May 7,
2007. Any comments received will be attached to this document.
RESOURCES AVAILABLE
The City of Palo Alto encourages local non-profit housing and public service agencies to pursue
all available public and private funding sources in order to achieve the goals of the Consolidated
Plan. Most projects and activities secure funding from a variety of sources including private
donations, charitable foundations, and church and community fundraising to leverage federal,
state and local funding.
Federal Resources
Community Development Block Grant (CDBG) Funds
The City receives CDBG funds as an entitlement grant through the U.S. Department of Housing
and Urban Development (HUD). In fiscal year .2007/08, the City will allocate $800,524 in
CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. The
amount of the City’s 2007/08 CDBG entitlement grant from HUD is $712,032, estimated
program income for 2007/08 is $45,000, excess program income received is $32,617, and
reallocated funds total $10,875. Program income is income directly generated from the use of
CDBG funds that is returned to the CDBG program and reallocated to new activities.
2
FY 2007/2008 CDBG Entitlement Grant
Program Income:
Estimated Program Income 2007/08 (HIP)
Estimated Program Income 2007/08 (PAHC)
Excess Prior Year Program Income
Reallocated Funds:
Miscellaneous Reallocations
Total Allocation
$712,032
5,000
40,000
32,617
10,875
$800,524
Loan repayments from the City’s former Housing Improvement Program (HIP) single-family
rehabilitation loan program are estimated to be $5,000 for next year. Income from the Palo Alto
Housing Corporation (PAHC) is also estimated to be $45,000 for next year. PAHC funds are
collected when rental income exceeds expenses on properties acquired or rehabilitated with
CDBG funds. Prior year program income funds are funds received in prior years that were in
excess of the estimated program income amounts, and were not previously allocated to projects.
HOME Program
The City of Palo Alto is not an entitlement grantee under the federal HOME program and thus
does not receive a direct grant of HOME Program funds from HUD. The only way to access
HOME funds for housing projects located within the City of Palo Alto 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 does not favor
areas like Palo Alto, it is difficult to secure an award. In the past, the State has limited the
maximum HOME award per project to one million dollars.
State, Local and Other Resources
City Affordable Housing Fund
The Affordable Housing Fund is a local housing trust fund established by the City Council to
provide financial assistance for the development, acquisition and rehabilitation of housing
affordable to extremely low, very low, low and moderate-income households. The Affordable
Housing Fund is the umbrella name for five distinct sub-funds for affordable housing. On
October 27, 2003, the City Council approved new guidelines for all of the City’s affordable
housing funds including the ones composed of federal housing monies. The Affordable Housing
Fund is now composed of:
Commercial Housing Fund - this fund is used primarily to increase the number of new
affordable housing units for Palo Alto’s work force. It is funded with mitigation fees
required from developers of commercial and industrial projects. As of December 31, 2006,
the Commercial Fund had an available balance of approximately $1,600,000.
Residential Housing Fund - this fund can be used for acquisition, rehabilitation, new
construction and predevelopment of low-income housing. It is funded with mitigation fees
provided under Palo Alto’s Below Market Rate (BMR) housing program from residential
developers, and money from other miscellaneous sources, such as proceeds from the sale or
lease of City property. It is also used to pay for administration and consultant contracts
necessary to carry out the BMR program. As of December 31, 2006, the Residential Fund
had an available balance of approximately $440,000.
CDBG Housing Fund - The purpose of the CDBG Housing Fund is to have funds available
on an ongoing basis to utilize when necessary to facilitate the development, rehabilitation and
preservation of low-income housing. Housing development opportunities, especially
opportunities to acquire land for new housing construction, may come up at any time
throughout the year and, due to the nature of the real estate market; a quick response is
frequently necessary. CDBG Housing Funds may be used to pay for costs associated with
the investigation of the feasibility of sites or properties for potential acquisition by the City,
or nonprofit organizations, for affordable 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 conceptual design studies.
HOME Program Income Fund - the City has only one HOME fimded project, the Barker
Hotel Single Room Occupancy. This project was funded in part with a $1 million 1992
HOME grant from the State. The City’s funding is in the form a long-term, deferred loan
and there has not been any program income from that loan.
Below Market Rate (BMR) Emergency Fund - This fund was authorized by Council in
September 2002 in order to provide funding on an ongoing basis for loans to BMR owners
for special assessment loans and for rehabilitation and preservation of the City’s stock of
BMR ownership units.
The actual process for initiating an application for City Affordable Housing Funds will vary
depending on the particular circumstances. Usually, a nonprofit 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
once it has secured or identified a potential housing site.
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 secured by the property. The repayment terms and interest rate have to be
tailored to the particular project since affordable housing typically is financed from multiple
sources with specific requirements.
Housing Trust of Santa Clara County (HTSCC)
The HTSCC is a public/private initiative, dedicated to creating more affordable housing in Santa
Clara County, using a revolving loan fund and grant-making program to complement and
leverage other housing resources. The City of Palo Alto contributed $500,000 toward the initial
4
$20 million investment capitalization and provided an additional commitment of $150,000 in
fiscal years 2004-05 and 2005-06. The City’s contribution wilt be used exclusively for
qualifying affordable housing projects located within the City. Three new affordable rental
projects located in Palo Alto have received loans from the HTSCC: Oak Court Apartments
($400,000), Opportunity Center ($650,000) and the Fabian Way Senior Housing. by Bridge
Housing ($650,000).
State of California’s Multifamilv Housing Program (MHP)
The Multifamily Housing Program (MHP) has been a major source of funding for affordable
housing since the passage of Proposition 46 in November 2002. The purpose of this program is
to provide low-interest loans to developers of affordable housing. The MHP General funds may
be used for multifamily rental and transitional housing projects involving new construction,
rehabilitation, or conversion of nonresidential structures. MHP Supportive Housing funds may
be used for multifamily rental housing projects involving new construction, rehabilitation,
acquisition and rehabilitation, or conversion of nonresidential structures for permanent rental
housing only. Oak Court Apartments, developed by the Palo Alto Housing Corporation and the
Opportunity Center, developed by the Community Working Group/Housing Authority of Santa
Clara County, received substantial funding from the MHP program.
In November 2006, Proposition 1C - the Housing and Emergency Shelter Trust Fund Act was
passed by California voters. It authorized $2.85 billion of general obligation bonds to fund 13
new and existing housing and development programs, including $590 million for farmworker
housing and homeless shelters.
State of California’ s Local Housing Trust Fund Grant Program
Another component of Proposition 46 was funding for new and existing local housing trust
funds. A local housing trust fund is a public or private partnership created to receive on-going
revenues for affordable housing production such as Palo Alto’s Commercial and .Residential
Housing Funds. Local revenues supporting the fund can include commercial impact fees,
ongoing fundraising, or local taxes such as Transient Occupancy Tax, as well as local
government’s general funds. The City of Palo Alto applied for and received an award of
$1,000,000 in February 2004. The City’s $1,000,000 award will be used to help subsidize the
development of the proposed Alma Street Family rental housing project being jointly planned by
Eden Housing and Community Housing Alliance.
Santa Clara County Affordable Housing Fund (AHF)
The Santa Clara County Board of Supervisors established the Affordable Housing Fund with
initial funding of $18.6 million in July 2002. The main purpose of the AHF was to assist in the
development of affordable housing especially for extremely low income and special needs
people throughout Santa Clara County. The Opportunity Center received an award of $2.5
million from the AHF in the first round of funding approved in September 2003. As of 2007, the
County has awarded over $10 million from the AHF.
Section 8
The Housing Authority of the County of Santa Clara administers the Section 8 program
countywide. In the previous fiscal year, a total of 285 households received assistance through
the Section 8 program. Of those, 239 were housing choice vouchers, 9 were Shelter Plus Care
vouchers and 37 were part of the moderate rehabilitation program. The City anticipates that
Section 8 vouchers will continue to be available to Palo Alto residents in fiscal year 2007/08.
Low-Income Housing Tax Credits
The California Tax Credit Allocation Committee (CTCAC) holds two application cycles each
year. Typically, the first cycle is held in March and the second is held in July. Local non-profits
apply directly to the CTCAC for these funds when they have identified a project. Tax credits
were used for development of both the Oak Court Apartments and the Opportunity Center.
McKinney-Vento Homeless Assistance
Each year between 35 and 40 non-profits in Santa Clara County receive approximately $9
million for programs assisting the homeless. These funds benefit programs on a countywide
basis.
STATE, LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE
HOUSING
Activity
STATE, LOCAL, and PUBLIC
Commercial Housing
Fund.
Residential Housing X
Fund
State MHP X
City Owned Land
MCC Program
Housing Trust of X
Santa Clara County
Santa Clara County X
Housing Authority -
Section 8
County Department
of Social Services
Santa Clara County X
Affordable Housing
Fund
PRIVATE RESOURCES
BMR Rental &
Owner Program
Private Lenders: AHP X
Nonprofit Developers X
Private Foundations
and Churches
Acquisition Rehab
X
X
X
X
X
New
Construction
X
X
X
X
X
X
X
Home
Buyer Rental
Assistance Assistance
X
X
X
X
X
X
Homeless Homeless
Assistance Prevention
X X
X X
X X
X
X
X X
X
X X
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 in the Consolidated Plan. 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 Affordable Housing Fund, as appropriate, to
leverage federal and private housing funds and to provide any required matching funds. Where
eligible, CDBG Housing Funds could be used as a portion of the matching requirement for
federal housing programs.
Geographic Distribution
The Map attached to this report shows the location of all the proposed activities for fiscal year
2007/2008. The City considers the provision of all types of housing assistance on a citywide
basis consistent with the policies of the 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.
There are only a few areas that are considered to have a concentration of minority populations or
low-income residents in Palo Alto. There are three census tracts in Palo Alto that have a
concentration of Asian populations, primarily in the northern part Of the City and there are also
four Census tracts in the northwestern portion of the City that have a concentration of lower
income households.
In addition, Census tract 5107 in the Olive-West MeadowiVentura area is an area of
considerably greater population and housing diversity than that which is found in most parts of
Palo Alto. The 2000 census identified this tract as having the highest minority concentration of
any non-split City tract. More than half the housing units are in multiple-unit (3+) structures,
and nearly two-thirds are renter-occupied. Block Group 2 has a large proportion of modest rental
housing, a relatively high proportion of minority and ethnic groups, and 48.6% of the households
are below the CDBG income eligibility limits. The entire tract is above HUD’s first quartile
threshold of 27.4 percent for area benefit activities.
Specific efforts have been coordinated in the City’s Community Service 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 proposed. A police substation was opened in the area with the goal of improving contact with
the community.
Changes to Strategy
HUD has informed the City of Palo Alto of a change of policy relating to the timely expenditure
of CDBG funds. The federal regulatory standard is that no more than 1.5 times a jurisdiction’s
annual entitlement grant amount may remain in its letter of credit 60 days prior to the end of the
program year. HUD now employs monetary sanctions against jurisdictions that exceed the
regulatory standard. Failure to meet the expenditure standard by May 1, 2007 will cause HUD to
reduce the City’s next grant by 100% of the amount in excess of 1.5 times the annual grant.
For this reason, all funding allocations for 2007/08 were scrutinized to insure the readiness of the
program or project to move forward and expend funds in a timely manner. This stricter
enforcement of the expenditure standard will increase the difficulty in providing funds for
affordable housing since housing projects involving new construction or acquisition of
apartments typically take more time and planning and are subject to more delays than other
capital projects. It may create situations where lower priority activities will be undertaken
instead of higher priority activities simply because they are easier to accomplish and ready to
proceed.
The City Council approved the change to a two-year CDBG funding cycle beginning with the
2003/04 fiscal year and this is reflected in the amendment of the Citizen Participation Plan
adopted by the City Council in December 2002. Many cities in the Bay Area have adopted
extended CDBG funding cycles and find them to be an effective tool to streamline "process" and
provide administrative relief to both city and non-profit staff. Palo Alto’s Human Services
Division also employs a two-year funding cycle for the Human Services Resource Allocation
Process (HSRAP).
Coordination of the CDBG and HSRAP funding processes is essential to the effective delivery of
local human service funding. Collaboration between the non-profit agencies and the City’s
funding sources avoids confusion, duplication of effort, and ensures that the highest identified
community needs are met. The two-year process provides the opportunity for City and non-
profit staff to undertake longer-term strategic planning and to maximize available funding
resources.
Allocation Priorities
Program Year 2007 will be the third year of the City’s five year Consolidated Plan for the period
2005-2010. The table below sets forth the five year goals of that Plan and the one-year goals of
the FY 2007/08 Annual Action Plan.
Summary of Specific Housing/Community
Goal #Specific Objectives Performance
Measure
Rental Housing Objectives
Goal 1 Increase the supply of rental Units
housing
Goal 2 Preserve existing affordable Units
rental housing
Goal 3 Conserve the condition of Units
existing rental housing
Owner Housing Objectives
Goal 4 Continue Below Market Rate Units
Program
Development Objectives (HUD Table 2C)
Expected Units
5 Year 2007/08 Goal
125
72
150
20
56
0
120
36
8
Goal 5 Continue to participate in Units 15 3
MCC program
Goal 6 Rehabilitation loans to L/M Units Emergencies As needed
Income Owners only
Goal 7 Minor Home Repairs and Units 130 26
Accessibility Upgrades
Public Service Objectives
Goal 15 Assist seniors in long-term Individuals 600 320
care
Goal 17 Services to prevent Individuals 8,000 4,000
homelessness (incl. in Goal 8)
Goal 18 Food and meal programs Individuals 800 325
Public Facilities
Goal 19 Promote community-based Facilities 2 0
services through public
facilities
Each proposed activity of the 2007/2008 fiscal year is listed below in relation to the strategy it
intends to address in the adopted 2005-2010 Consolidated Plan.
Goal # 1: Increase the Supply of Affordable Rental Housing by 125 units
Proposed 2007/08 Activity:
Bridge Housing Corp./Fabian Way Senior Housing
901 San Antonio Rd.
Palo Alto, CA 94303
2007 Goal: 56 new housing units
Goal #2: Preserve the Supply of 72 units of Affordable Rental Housing at Immediate Risk
of Conversion to Market-Rate Housing
Proposed 2007/08 Activity:
None. There are no units at immediate risk of conversion to market-rate housing at this time.
Goal #3: Conserve the Condition of 150 Existing Units of Affordable Rental Housing
Proposed 2007/08 Activities:
Stevenson House - Interior Common Area Improvements
455 E. Charleston Road
Palo Alto, CA 94306
2007 Goal: 120 units .
Goal #4: Continue the Below Market Rate (BMR) Program
Proposed 2007/08 Activity:
City of Palo Alto BMR Program
Units are located citywide
2007 Goal: 36 units
Goal #5: Continue to Participate in the Mortgage Credit Certificate Program
Proposed 2007/08 Activity:
The City of Pal0 Alto will continue to participate in the mortgage credit certificate program.
2007 Goal: 3 households
Goal #6: Provide for Rehabilitation Loans to Low- and Moderate-Income Single Family
Homeowners in Emergency or Crisis Situations Only
Proposed 2007/08 Activity:
This program will be available on an as-needed basis and only if CDBG funding is available.
Goal #7: Provide for Minor Home Repairs and Accessibility Upgrades to Low- and
Moderate-Income Homeowners
Proposed 2007/08 Activity:
Avenidas - Senior Home Repair
450 Bryant Street
Palo Alto, CA 94301
2007 Goal: 26 households
City of Palo Alto
Utilities Department
Residential Energy Assistance Program
250 Hamilton Ave.
Palo Alto, CA 94301
2007 Goal: 80 households
Goal #8: Provide Assistance and Supportive Services to Low- and Very Low-Income Palo
Alto Residents to keep them from Becoming Homeless
Proposed 2007/08 Activities:
Palo Alto Community Childcare - Childcare Subsidies
3990 Ventura Court
Palo Alto, CA
2007 Goal: 50 households
Project Sentinel - Mediation Program
430 Sherman Avenue, Suite 308
Palo Alto, CA 94306
2007 Goal: 150 households
Second Harvest Food Bank
750 Curtner Avenue
San Jose, CA 95125
2007 Goal: 175 persons
Avenidas
Senior Housing Counseling
10
450 Bryant Street
Palo Alto, CA 94301
2007 Goal: 1,600 persons
La Comida - Senior Nutrition Program
450 Bryant Street
Palo Alto, CA 94301
2007 Goal: 150 persons
Palo Alto Housing Corporation - Barker Hotel and Alma Place Counseling Program
725 Alma Street
Palo Alto, CA 94301
2007 Goal: 131 households
Mayview Community Clinic - Health Care Services
270 Grant Avenue
Palo Alto, CA 94306
2007 Goal: 100 persons
Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive
Services with a Housing Component
Proposed 2007/08 Activity:
InnVision/Urban Ministry - Opportunity Center (Drop-In Center)
33 Encina Ave.
Palo Alto, CA 94301
2007 Goal: 500 People
Goal #10: Continue to Support the Operating (and/or rehabilitation) Costs of Shelters and
Transitional Housing Programs that Serve the Palo Alto Area
Proposed 2007/08 Activities:
Clara-Mateo Alliance - Adult Program and Family Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2007 Goal: Operating Costs
Haven House
260 Van Buren Rd.
Menlo Park, CA 94025
2007 Goal: Operating Costs
Maple Street Shelter
1580-A Maple Street
Redwood City, CA 94063
2007 Goal: Operating Costs
11
Emergency Housing Consortium - Emergency Shelter and Transitional Housing Programs
2665 North First Street, Suite 210
San Jose, CA 95134
2007 Goal: Operating Costs
Innvision/Urban Ministry - Hotel de Zink
Rotating Church Shelter Program
33 Encina Ave.
Palo Alto, CA 94301
2007 Goal: Operating Costs
Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for
the Homeless
Proposed 2007/08 Activity:
InnVisioniUrban Ministry
Opportunity Center Health Care Services
33 Encina Ave.
Palo Alto, CA 94301
2007 Goal: 110 Persons
Emergency Housing Consortium - Off the Streets Project
2665 North First Street, Suite 210
San Jose, CA 95134
2007 Goal: 4 Persons
Alliance for Community Care - Homeless Outreach Program
2001 the Alameda
San Jose, CA 95126
Goal #12: Continue to Cooperate on Countywide Approaches to the Issues of Homelessness
Proposed 2007/08 Activity:
The City will continue to cooperate on countywide approaches to homelessness.
Goal #13: Support the Activities of Area Non-Profit Organizations that Provide
Transitional Housing with Supportive Services to the Homeless
Proposed 2007/08 Activity:
InnVision!Clara-Mateo Alliance - Single Adult/Couple Transitional Housing
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2007 Goal: 6 transitional housing units
12
InnVision!Clara-Mateo Alliance - Family Transitional Housing
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2007 Goal: 18 transitional housing units
Shelter Network - Mid Peninsula Housing Program
1450 Chapin Avenue, 2nd Floor
Burlingame, CA 94010
Various locations in the Mid-Peninsula
2007 Goal: 3-8 transitional housing units
Emergency Housing Consortium
2665 North First Street, Suite 210
San Jose, CA 95134
2007 Goal: 8 transitional housing units
Goal #14: Continue to Support the Shelter Plus Care Program in Palo Alto and Increase
the Units Available in the Program to Include Families with Children
Proposed 2007/08 Activity:
There are seven Shelter Plus Care units available at the Barker Hotel and 10 units available at
Alma Place. Five additional units are set-aside at Alma Place under the North County Master
Lease program. Units are also available at the Opportunity Center for qualified tenants as
vacancies dictate.
Goal #15: Assist Seniors in Long-Term Care Facilities
Proposed 2006/07 Activity:
Catholic Charities - Long-Term Care Ombudsman Program
2625 Zanker Road, Suite 200
San Jose, CA 95134-2107
2006 Goal: 320 Persons
Goal #16: Provide Support to Accessible Transportation Services
Proposed 2006/07 Activity:
Continue to support transportation services in the City, including the Palo Alto Shuttle.
Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8)
Proposed 2007/08 Activities:
InnVision - Clara-Mateo Adult Singles/Couples Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2007 Goal: 75 People
InnVision - Clara-Mateo Family Housing Program
795 Willow Rd., Bldg 323-D
13
Menlo Park, CA 94025
2007 Goal: 3 Families
Shelter Network - Mid Peninsula Housing Program
1450 Chapin Avenue, 2"d Floor
Burlingame, CA 94010
Various locations in the Mid-Peninsula
2007 Goal: 3 Families
InnVision/Urban Ministry - Opportunity Center (Drop-In Center)
33 Encina Ave.
Palo Alto, CA 94301
2007 Goal: 500 People
Emergency Housing Consortium - Palo Alto Homes Program
2665 North First Street, Ste. 210
San Jose, CA 95134
2007 Goal: 50 People
Emergency Housing Consortium - Off the Streets Program
2665 North First Street, Ste 210
San Jose, CA 95134
2007 Goal: 4 People
Goal #18: Continue to Support Food and Meal Programs
Proposed 2007/08 Activities:
Second Harvest Food Bank
750 Curtner Avenue
San Jose, CA 95125
2007 Goal: 175 persons
La Comida - Senior Nutrition Program
450 Bryant Street
Palo Alto, CA 94301
2007 Goal: 150 persons
InnVision/Urban Ministry
Breaking Bread Meal and Food Closet Meal Programs
33 Encina Ave.
Palo Alto, CA 94301
2007 Goal: 500 People
Goal #19: Promote a Vital System of Community-Based Human Services through Facilities
to House those Services
Proposed 2007/08 Activity:
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The City does not plan on undertaking a facility project this fiscal year.
2007/2008 PROJECTS AND ACTIVITIES TO BE UNDERTAKEN
All of the projects and activities to be undertaken with the 2007/2008 CDBG cycle funding
allocation address the priority housing and community development needs identified in the
Consolidated Plan. The attached Appendix C "Proposed Projects" describes each project or
service activity, the 2007/08 funds allocated, the expected project beneficiaries, and the HUD
national objective.
Housing Activities
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 focuses on the creation and preservation of
rental housing with an emphasis on housing for very low- and low-income persons especially
those who are homeless, at-risk of becoming homeless, those with special needs, and families
with children.
City of Palo Alto Housing Strategy
The Consolidated Plan proposes a five-year strategy to develop 125 newly constructed rental
units over the 2005-2010 planning period. The 125 units would be affordable to households in
the very low- or low-income categories and would meet a portion of the housing production
goals mandated by the Association of Bay Area Governments (ABAG).
BRIDGE Housing Corporation - Fabian Way Senior Housing - $383,929
Objective:Providing Decent Affordable Housing
Outcome:Affordability for the purpose of providing decent affordable housing
Performance Measure: 56 New Units of Affordable Housing
The City intends to allocate $383,929 in fiscal year 2007/08 CDBG funding to BRIDGE
Housing Corporation for a new 56-unit senior housing project known as Fabian Way. This
development will provide new senior rental housing on a one-half acre site situated within a
larger 12.5-acre infi11 redevelopment site at 901 San Antonio Road in Palo Alto. Also on the
site, and directly adjacent to Fabian Way Senior, two other developments are planned. 103
townhomes are being developed by BUILD, LLC, as well as the new $150 million Taube-Koret
Campus for Jewish Life’s open campus. The TKCJL campus will consist of a community
center, recreational facility and a senior congregate care living facility.
The proposed 56 rental apartments will be affordable to extremely-low and very-low income
senior households earning between 25% and 50% of the area median income. The project will
consist of 3 studio apartments, 52 one-bedroom apartments and a 2-bedroom resident manager’s
apartment. The one-bedroom units will be approximately 600 square feet in size. Provided that
HUD 202 funding can be obtained, rents will not exceed 30% of the senior resident’s income.
15
The project will be four-stories high and include a manager’s office, a community room,
common-area lobby, and a landscaped rear courtyard on the ground floor. Parking will be
provided on an adjacent site in a secured parking lot with direct connection to the building.
The property is currently owned by 901 San Antonio Road, LLT, an entity wholly controlled by
BUILD, LLC a related entity to BRIDGE Housing Corporation. BUILD, LLC will make a
financial contribution to Fabian Way Senior in exchange for the project satisfying its Below
Market Rate (BMR) housing requirement, representing 19 of the 56 units. This development
effectively leverages BUILD’s investment, as well as the CDBG investment, to more than
double the number of affordable units that would have otherwise been created.
The overall development cost for Fabian Way Senior is estimated to be $20.4 million. The
financing plan anticipates the major funding sources to be State MHP funds and 4% low- income
housing tax credits. If MHP financing is not available, HUD section 202 funds will be
substituted.
The development of new affordable rental housing is a high priority in the Consolidated Plan.
Stevenson House - Interior Common Area Renovations - $144,259
Objective:Providing Decent Affordable Housing
Outcome:Sustainability for the purpose of providing decent affordable housing
Performance Measure: 120 units will be sustained
Stevenson House provides 120 units of affordable’ housing units to seniors in Palo Alto. The
building was originally built in 1968 and requires on-going preventative maintenance and
renovations to continue to provide safe and decent housing to its 127 low-income senior
residents. This project will replace worn-out carpeting and vinyl tiles in the common area
hallways and painting of the interior common area walls. The wheelchairs, scooters, walkers and
other assistive devices used by the residents tend to increase the wear and tear in the common
areas. This project will create a safer, more pleasant environment.
Proposed Public Service Activities
CDBG public service funds will be targeted to the following programs in fiscal year 2007/08:
$ 7,500 Emergency Housing Consortium - Emergency Shelter
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 50 persons will have new accessibility to decent affordable
housing
$25,000 Palo Alto Housing Corporation - SRO Tenant Counseling Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of creating suitable living environments
Performance Measure: 131 persons will have improved accessibility to a suitable living
environment
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$17,500 InnVision/Clara-Mateo Alliance - Family Housing Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 3 families with children from Palo Alto will have new
accessibility to decent affordable housing
$17,500 InnVision/Clara-Mateo Alliance - Singles/Couples Housing Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 75 individuals will have new accessibility to decent affordable
housing
$8,500 Shelter Network - Mid-Peninsula Housing Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 3 Families from Palo Alto will have new accessibility to decent
affordable housing
$30,000 InnVision!Urban Ministry - Opportunity Center Drop-In Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of creating suitable living environments
Performance Measure: 500 persons will have improved accessibility to a suitable living
environment
$ 7,500 Emergency Housing Consortium - Offthe Streets Project
Objective:Providing decent housing
Outcome:Accessibility for the purpose of creating suitable living environment
Performance Measure: 4 persons from Palo Alto will have new accessibility to decent
affordable housing
$ 7,500 Catholic Charities - Long-Term Care Ombudsman Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 320 persons in Palo Alto will have improved accessibility to
decent affordable housing
Human Services
In addition to the CDBG public service funds, the City will provide $1,214,910 from the General
Fund in support of human services 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 mental and physical health care
services, tenant/landlord mediation, subsidized child care, support for victims of domestic
17
violence and rape, senior services, adolescent counseling, emergency food, nutritional services,
and recreational activities.
Services and Resources Targeted to Homeless Persons
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 either with CDBG or HSRAP funding. The goal of all the services listed is to
prevent homelessness, help move people out of homelessness and to reduce the number of
persons below the poverty line.
Alliance for Community Care: Mental health outreach and service linkage for Palo Alto’s aduk
homeless population. A casework counselor works in the Palo Alto area to help low-income,
disabled adults’ access existing mental health and other community resources.
City 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.
Downtown Streets Team: Identifies motivated homeless individuals and provides them with jobs
cleaning and beautifying the downtown area. The program includes counseling, coaching and
training to help program participants build self-esteem, confidence and connections in the
community.
InnVision/Clara-Mateo Shelter: Shelter and transitional housing with casework counseling and
supportive services for homeless individuals, couples and families who are actively working
toward achieving their goals and overcoming homelessness.
Community Technology Alliance: Shelter hotline and voicemail services for homeless
individuals and families. The voicemail service helps case-managed clients attain individual
goals such as securing health care, housing or employment. A countywide housing information
and referral website was developed and is maintained to assist service providers and housing
seekers.
Emergency Housing Consortium: 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, childcare, health care, information and referral, and job and life-skills training. Agency
also provides a new Off the Streets Program, targeted to getting alcohol addicted homeless
persons into safe permanent housing.
Shelter Network - Mid-Peninsula Housing Program: Transitional housing with supportive
services for tireviously homeless families with children at Haven House and First. Step for
Families transitional housing facilities. Also provides a shelter to serve single adults in
Redwood City.
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La Comida de California: Provision of affordable, nutritious meals to Palo Alto’s elderly
population at various locations throughout the City, including: Avenidas Senior Center,
Stevenson House and Cubberley Community Center.
Mayfield Community Clinic: 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 - SRO Hotel Tenant Counseling: Counseling and case-
management services for the low-income residents and prospective residents of single room
occupancy hotels in Palo Alto including the Barker Hotel at 439 Emerson Street. Many SRO
hotel residents have a history of homelessness and special needs. The program 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.
InnVision!Urban Ministry: Opportunity Center. Services for very-low income or homeless
persons including bagged groceries, hot meals, emergency shelter, information and referral,
shower and laundry facilities, case-management and money management (payee) programs,
clothing, and health services. Services are provided weekdays from 8:30 to 4:30 at the
Oppommity Center, 33 Encina Avenue in Palo Alto. Bagged groceries are distributed daily at
the Downtown Food Closet located at 425 Hamilton Avenue in Palo Alto. The Hotel de Zink
rotating church shelter program is housed at a different location each month.
Chronic Homelessness
The City participated in the Countywide Homeless Count in 2004 and intends to participate
again in 2007. In 2005, there were an estimated 14 chronically homeless people in the City.
There are currently some efforts being undertaken in the City that are assisting the chronically
homeless. One program is the Off the Streets team, a collaborative effort between the City,
service providers and local businesses. There is also a program called the Downtown Streets
Team that was developed by the Palo Alto Downtown Business Association in which
participants perform clean-up work in the downtown area and they receive food, clothing and
case management. The North County Inns is also a program that is operating in the City through
InnVision. Program participants receive housing assistance in the form of vouchers to be used at
participating SRO hotels and they receive case management as well. Emergency Housing
Consortium will begin a program in Palo Alto in 2007/08 to help homeless individuals with
alcohol addiction find permanent housing.
The new Opportunity Center that opened in the fall of 2006 provides a clean, safe environment
where low-income or homeless people can receive basic services (showers, laundry, clothing,
food, and health care) as well as counseling and informational services that can move them to
shelter or more permanent housing.
19
Discharge Coordination Policy
The City of Palo Alto will be working with representatives from the State and county agencies to
create a collaborative strategy for the housing and placement of those released from institutions
in the City. This discharge placement planning seeks to help direct the placement of prisoners
released from jails, hospitals and other facilities in order to prevent homelessness.
Transition from Homelessness to Permanent Housing
Shelter Plus Care (S + C): The S + C program is administered through the Office of the Santa
Clara County Homeless Coordinator. It is a federal grant program that 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 that targets
people who are homeless and disabled. There are 17 housing units occupied by S + C clients in
Palo Alto.
The Barker Hotel: The Barker is owned and operated by the Palo Alto Housing Corporation
¯(PAHC), and has 25 units of permanent Single Room Occupancy (SRO) housing at rents
affordable to persons with incomes between 30% and 50% of the median income. Rents range
from $360 to $443 per month based on size and whether they have their own bathrooms. 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 with
extremely low-incomes. Seven of the units are available with tenant based Section 8 subsidies
through the Shelter Plus Care program.
Alma Place: Alma Place is located at 753 Alma Street in Palo Alto, and is also owned and
operated by the Palo Alto Housing Corporation. The project, a 106-unit single room occupancy
resident 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 $427 to
$589 per month and are available to persons earning below 40% of the median income. Ten of
the units are available with tenant based Section 8 rental subsidies through the Shelter Plus Care
program. An additional 5 units are set aside under the North County Master Lease Program.
The Opportunity Center: The Housing Authority of the County of Santa Clara and InnVision the
Way Home opened this new facility in September of 2006. The project provides 88 new units of
affordable housing for very low-income families and individuals, many of whom were
previously homeless. An on-site service center provides information and referral, case
management, health care and other supportive services for tenants as well as others in the
community. The housing units at the Opportunity Center were fully leased-up on December 27,
2006. Rents range from $371 per month for SRO units to $1400 per month for 2 Bedroom units.
There are 22 project based Section 8 subsidies which enable the tenants to pay just 30% of their
adjusted gross income for rent. InnVision also administers a private subsidy program at the
Opportunity Center which currently provides rental assistance to an additional 20 extremely low-
income individuals.
20
Haven Family House: Shelter Network of San Mateo County owns and operates this transitional
housing facility for families with children located at 260 Van Buren Road in Menlo Park.
Families reside in one and two bedroom apartments for two to four months depending on their
individual case plans and situations. Comprehensive case management, support services, and
on-site licensed childcare, plus one year of follow-up counseling are available to help families
break the cycle ofhomelessness.
Lead-Based Paint
There have been no reports of significantlyhigh lead levels in children residing in Palo Alto in
recent years. The City’s housing and CDBG staff will provide information and referral to
property owners, developers and non-profits rehabilitating older housing about lead-based paint
hazards. Also, the City requires that any housing rehabilitated with City financial assistance
must be inspected for the existence of lead-based paint hazards. The City will provide financial
assistance for the abatement of such hazards in these rehabilitated units.
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.
The City of Palo Alto joined with other Santa Clara County entitlement jurisdictions to undertake
a countywide fair housing study that includes 2000 census data and was completed in January
2003. The study includes a demographic analysis, a lending analysis, a review of government
programs and policies, a survey of Santa Clara residents and service organizations, an
assessment of the delivery of fair housing services, and recommendations for new strategies.
The information from the study was incorporated in the revisions to the Analysis of Impediments
to Fair Housing Choice adopted by the City Council in May 2003. The cities of Sunnyvale,
Mountain View and Palo Alto have collaboratively contracted with and funded fair housing
services for north Santa Clara County with Project Sentinel. Palo Alto will provide $26,800 in
CDBG funds in fiscal year 2007/08 to Project Sentinel for the provision of fair housing
complaint investigation, public education and information and referral services.
Palo Alto plans to undertake the following actions to foster and maintain affordable housing and
to address housing discrimination during the 2007/08 fiscal year:
Provide tenant/landlord counseling and mediation services for Palo Alto residents through
the Palo Alto Mediation Program (Project Sentinel).
Support the Countywide website that lists subsidized housing opportunities, wait lists and
vacancies.
21
Continue to support the Human Relations Commission in their documentation and
investigation of hate crimes, and in their support of diversity, disability, and affordable
housing issues.
Continue to monitor the provision of fair housing services to ensure that adequate services
are being provided, and that services are provided cost effectively.
Work with the Santa Clara County CDBG entitlement cities in their effort to implement any
recommended improvements to the delivery of services on a regional basis.
Provide funding to a fair housing provider, funded by and selected jointly by the cities of
Palo Alto, Mountain View, and Sunnyvale to reduce discrimination in housing by:
a. Investigating cases of housing discrimination
b. Conducting consultations with persons who believe they have been discriminated
against
c. Maintaining a pool of trained testers for investigations and conducting training’s
d. Maintaining a panel of attorneys for referral and coordinating meetings for
participating attorneys
e.Running ads in the Palo Alto Weekly, San Jose Mercury News, and other media
outlets
f. Distributing fair housing brochures
g. Running public service announcements for local radio/TV broadcasts
h. Making educational presentations to the community
i.Monitoring and reporting on rental sites
j.Showing educational videos on housing discrimination on local cable TV
k.Organizing an event for National Fair Housing Month
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, any proposed Action Plan
amendment(s).
Urgent Need Activities
In the event 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.
Monitoring of Activities
The City of Palo Alto follows the monitoring requirements for the use of Federal funds as
directed by HUD. The City’s Department of Planning and Community Environment monitors its
housing production goals and all the activities carried out to further the goals of the Consolidated
Plan. For activities funded by CDBG and HOME programs, an annual performance report is
completed based on HUD regulations and in accordance with HUD standards. The Consolidated
22
Annual Performance and Evaluation Report (CAPER) is available to the Citizens Advisory
Committee and the general public for comments during a 15-day review period. This report
identifies the actual dollars expended, the beneficiaries served, and the program goals achieved.
The City requires subrecipients of CDBG funds to submit semi-annual and annual performance
reports outlining the extent to which program goals have been achieved, and the number of
beneficiaries who have been served. Program performance is measured against the specific
program objectives outlined in the contract scope of services. Additionally, City staff will
monitor each subrecipient, 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
The CDBG entitlement cities (Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino,
Gilroy, Milpitas, San Jose), and the Urban County of Santa Clara continue to meet on a regular
schedule to discuss issues of mutual concern and to share information and strategies for
addressing affordable housing, homelessness, fair housing, and other issues of common concern.
The meetings have helped the participants better understand the County and nonprofit social
service structure within the County, and provide input into the development of the new Santa
Clara County Office of Affordable Housing and its operations.
The City of Palo Alto continues to collaborate with neighboring jurisdictions in both Santa Clara
and San Mateo County on issues relating to homelessness in northern Santa Clara County and
southern San Mateo County. The City actively participates in the Santa Clara County Housing
and Homeless Collaborative.
As a result of the Countywide Fair Housing Study, the cities of Gilroy, Palo Alto, Mountain
View, and Sunnyvale have jointly selected fair housing services from a single provider to serve
the four cities. In addition a Countywide Fair Housing Taskforce has been formed and includes
representatives from entitlement jurisdictions, fair housing agencies, and other non-profit
organizations. A staff person from the City of Pato Alto is the representative for the North
County cities (Mountain View, Palo Alto and Sunnyvale).
The Quality Housing and Work Responsibility Act of 1998 requires public housing authorities
(PHA’s) to develop and implement five-year plans that describe their long range goals and a
strategy for achieving the identified goals. These plans provide details about the PHA’s
operations, program participants, programs and services. The PHA is required to ensure that
their plan is consistent with any applicable Consolidated Plans for jurisdictions in which the
PHA is located. This new requirement allows 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, CDBG and
Human Services staff meet to review and discuss applications received through both the CDBG
and HSRAP processes. Additionally, a member of the Human Relations Commission serves on
23
the CDBG Citizens Advisory Committee to avoid duplication of effort and to assure
collaboration within Palo Alto.
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U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CPD CONSOLIDATED PLAN
LISTING OF PROPOSED PROJECTS
FY 2007/08
The following is a summary of the fiscal year 2007/08 proposed CDBG projects. They have
been set-up and loaded directly into IDIS.
PUBLIC SERVICES PROJECTS
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
SR-01025-999
Catholic Charities - Long Term Care Ombudsman Program
Public Services
The program will investigate and resolve complaints, including
violations of personal rights and allegations of elder abuse for primarily
elderly residents of long-term care facilities
05 Public Services (General)
570.201 (e)
320 Elderly
CDBG: $7,500
570.208(a)(2) - Low/Mod Limited Clientele
2625 Zanker Road, Ste. 200
San Jose, CA 95134
Project ID SR-01018-999
Project Title Emergency Housing Consortium - Palo Alto HOMES
Priority Public Services
Description Emergency shelter, transitional housing, and permanent supportive
housing. Programs are designed to increase self-sufficiency and end
homelessness
HUD Matrix 05 Public Services (General)
Code/Title
Citation 570.201 (e)
Accomplishments 50 People (General)
Funding Sources CDBG: $7,500
Eligibility 570.208(a)(2) - Low/Mod Limited Clientele
Location 2665 North First Street, Ste. 210
San Jose, CA 95134
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation 570.201 (e)
Accomplishments 10 People (General)
Funding Sources CDBG: $17,500
Eligibility 570.208(a)(2) - LowiMod Limited Clientele
Location 795 Willow Road, Bldg. 323-D
Menlo Park, CA 94025
Project ID SR-01075-999
Project Title InnVision; Clara-Mateo Adult/Couples Program
Priority Public Services
Description 63 emergency shelter beds and six transitional housing units for
individuals and couples who are homeless. The program provides
meals and case management, crisis intervention and counseling.
05 Public Services (General)
SR-01076-999
InnVision; Clara-Mateo Family Housing Program
Public Services
Shelter and transitional housing for homeless families with children.
Provides a total of 18 emergency shelter beds and up to six units of
transitional housing accommodating from 12-18 parents and children at
a given time. A 24-hour shelter is provided, along with 3 meals per
day.
05 Public Services (General)
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
570.201 (e)
75 People (General)
CDBG: $17,500
570.208(a)(2) - LowiMod Limited Clientele
795 Willow Road, Bldg. 323-D
Menlo Park, CA 94025
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
SR-01082-999
InnVision/Urban Ministry - Opportunity Center
Public Services
The program provides critical services for the Palo Alto homeless
population. Services include showers, meals, case management, bus
passes, health care, and counseling.
05 Public Services (General)
570.201 (e)
500 People (General)
CDBG: $30,000
570.208(a)(2) - Low/Mod Limited Clientele
33 Encina Way
Palo Alto, CA 94301
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
Emergency Housing Consortium - Off the Streets Project
Public Services
EHC will provide 26 units of County wide scattered site housing for
chronically homeless people with alcohol addictions.
05 Public Services (General)
570.201 (e)
4 People (General)
CDBG: $7,500
570.208(a)(2) - Low/Mod Limited Clientele
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation 570.201 (e)
Accomplishments 131 People (General)
Funding Sources CDBG: $25,000
Eligibility 570.208(a)(2) - Low/Mod Limited Clientele
Location 439 Emerson Street and 753 Alma Street
Palo Alto, CA 94301
SR-01048-999
Palo Alto Housing Corp. - SRO Resident Support Services
Public Services
This program provides counseling and supportive case management
services to low-income residents of single room occupancy (SRO)
housing. The Barker Hotel and Alma Place provide permanent
affordable housing for people with a history of homelessness or other
special needs.
05 Public Services (General)
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation 570.201 (e)
Accomplishments 10 People (General)
Funding Sources CDBG: $8,500
Eligibility 570.208(a)(2) - Low/Mod Limited Clientele
Location 260 Van Buren Road
Menlo Park, CA 94025
SR-01079-999
Shelter Network - Midpeninsula Housing Program
Public Services
Transitional housing for homeless families and single adults. The
program provides the basic necessities of shelter, food and clothing.
Also provides comprehensive support services, such as case
management, life skills training, job development and children’s
services.
05 Public Services (General)
325 Villa Terrace
San Mateo, CA 94402
1580-A Maple Street
Redwood City, CA 94063
PLANNING AND ADMINISTRATION
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
SR-01003-999
City of Palo Alto - Planning and Administration
Planning and Administration
Administrative costs for the overall management, coordination and
evaluation of the CDBG program, and the project delivery costs
associated with bringing projects to completion.
21 General Program Administration
570.206
N/A
CDBG: $124,536
N/A
250 Hamilton Avenue
Palo Alto, CA 94301
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
SR-01087-999
Project Sentinel- Fair Housing Services
Planning and Administration
Agency provides investigations of complaints by testing, interviews,
surveys, and document review, counseling, and legal referral for
victims of housing discrimination as well as community outreach and
education regarding housing fights.
21D Fair Housing Activities
570.206
15 Households (General)
CDBG: $26,800
N/A
430 Sherman Avenue, Ste. 308
Palo Alto, CA 94306
CAPITAL PROJECTS
Project ID
Project Title BRIDGE Housing - Fabian Way Senior Housing
Priority Housing
Description Bridge Housing will develop 56 new units of affordable housing for
low-income seniors. The project is part of a larger redevelopment
effort on a vacant 12.5 acre infill ske.
HUD Matrix 01- Acquisition of Real Property
Code/Title
Accomplishments 56 Units
Funding Sources CDBG: $383,929
Eligibility 570.208(a)(3) - Low/Mod Housing
Location 901 San Antonio Road
Palo Alto, CA 94303
Project ID TBD
Project Title Stevenson House - Interior Common Area Renovations
Priority Housing
Description Stevenson House is a 120-unit senior housing complex which was built
in 1968. This project will replace flooring and provide new paint in the
common area hallways, maintaining a clean and safe environment.
HUD Matrix 14B - Rehab, Multi-Unit Residential
Code/Title
Citation 570.202
Accomplishments 120 Units
Funding Sources CDBG: $144,259
Eligibility 570.208(a)(3) - LowiMod Housing
Location 455 E. Charleston Road
Palo Alto, CA 94306
FY 2007 2008 -°-O~CDBG Pr ects
Location map > ~
ATTACHMENT C
CITY OF PALO ALTO
Housing and Community Development
DRAFT 2005 - 2010 CONSOLIDATED PLAN
AMENDMENT
Public Review Period March 28, 2007 - April 30, 2007
Prepared by Departmem of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, Califomia 94301
Steve Emslie, Director
For Information, Please Contact: Suzanne Bayley, CDBG Contract Planner
Planning Division, City of Palo Alto (650) 329-2428
Draft 2005-2010 Consolidated Plan Amendment
The Consolidated Plan is the document submitted to the U.S. Department of Housing and
Urban Development (HUD) that serves as a comprehensive housing affordability
strategy, community development plan, and submission for funding under the
Community Development Block Grant (CDBG) program. The City of Palo Alto is
amending its adopted Consolidated Plan for the period July 1, 2005 to June 30, 2010 to
comply with the following new HUD regulations effective March 13, 2006:
24 CFR Parts 91 and 570 "Consolidated Plan Revisions and Updates; Final Rule"
published in the Federal Register, Volume 71, Number 27, on February 9, 2006; and
The "Notice of Outcome Performance Measurement System for Community Planning
and Development Formula Grant Programs", Federal Register, Volume 71, Number
44, published on March 7, 2006.
Summary of Changes
This amendment incorporates the following changes, dictated by the new regulations,
into the adopted Consolidated Plan in accordance with HUD requirements:
Executive Summary - the addition of an Executive Summary at the beginning of the
document that includes a summary of objectives, expected outcomes and an
evaluation of past performance.
Vacant and Abandoned Buildings - the addition of a description of vacant and
abandoned buildings into the Housing Market Conditions.
Chronic Homelessness - an addition to the Homeless Strategy of an assessment of the
needs and resources available for the chronically homeless subpopulation.
Resources - a description of the resources expected to be available, including the
addition of competitive McKirmey-Vento homeless Assistance Act funds.
Outcome Performance Measurement System - the identification of objective and
outcome categories for each identified goal in the strategic plan.
Strategic Plan/Relative Allocation Priorities - a description of the rationale for
establishing allocation priorities as they relate to priority needs in the Strategic Plan.
Citizen Participation - addition to Appendix A.2 and the Citizens Participation Plan
of the term "faith-based organizations" to the list of entity’s involved in Consolidated
Plan consultations, and the use of alternative public involvement techniques.
Executive Summary (Add to Section 1.1)
The City of Palo Alto’s Consolidated Plan is a five-year strategy for the use of federal
funds to address the housing and non-housing community development needs of lower-
income residents. Nineteen specific strategic goals are identified in the plan. The City
intends to provide funding for various activities, which are consistent with the adopted
goals of the Consolidated Plan. Due to the high cost of housing in Palo Alto, the primary
objectives for the period are to increase, preserve and sustain the supply of rental housing
affordable to residents with incomes at or below 80 percent of the area median.
Additionally, a primary focus of the strategy is the provision of a supportive network of
social services responsive to the needs of those most vulnerable in the community, such
as the frail elderly, persons with disabilities, persons who are homeless, or at-risk of
becoming homeless. The three priority strategies that will guide the City’s allocation of
federal funds over the term of the Plan are as follows:
Strategy # 1 Increase the Affordable Housing Stock
Goal: Provide Decent Affordable Housing
Obiective: Increase the supply of new affordable rental units
Outcome: Availability for the purpose of providing decent affordable housing
Performance Measure Indicator: 125 new rental units will be created
Strategy # 2 Preserve the Existing Affordable Housing Stock
Goal: Provide Decent Affordable Housing
Obiective: Conserve the condition of existing units of affordable rental housing
Outcome: Sustainability for the purpose of providing decent affordable housing
Performance Measure Indicator: 150 existing rental units will be sustained
Strategy # 3 Provide Supportive Social Services
Goal: Create a Suitable Living Environment
Objective: Provide a range of supportive social services programs that directly address
the basic human needs of the most vulnerable populations including persons who are
homeless, the elderly, and persons with disabilities
Outcome: Availability/Accessibility for the purpose of creating a suitable living
environment
Performance Measure Indicator: 10,000 persons will have improved availability or
accessibility to a suitable living environment
Evaluation of Past Performance
The City has historically allocated CDBG funds to activities that benefit low and
moderate income persons, with the top priority being increasing affordable housing
opportunities. Over the past 15 years, the City has assisted in the creation of six new
affordable housing projects, representing a total of 328 new units, by leveraging CDBG
funds and other housing resources:
Year Built
1994
1996
1998
1998
2005
2006
Project Name
Lytton Courtyard
Emerson House
Alma Place
Page Mill Court
Oak Court Apts.
Opportunity Center
TOTAL UNITS
No. of Units
51
4
107
24
53
89
328
Targeted Occupants
Seniors
Small families/Disabled
Single Room Occupancy (SRO)
Developmentally disabled adults
Families
SRO/Family
Additionally, the City has contributed to the purchase, preservation and/or rehabilitation
of existing units to increase or improve the affordable housing stock. To date, the City
has an inventory of 1,456 units of subsidized rental housing available to persons of low or
moderate income.
The City has consistently used its federal resources to address the needs of its most
vulnerable residents, including those who are chronically homeless. CDBG funds, along
with the City’s general funds, have been used to support a local social service network
that provides basic human services to those in need. The City has consistently spent the
maximum allowable (15 percent) of its grant and program income on eligible public
service activities.
Vacant and Abandoned Buildings (Add to Section 3.4)
Due to the high cost of land in Palo Alto, there are few vacant or abandoned buildings or
sites. No information exists on the exact number or location of these sites. The few that
do exist are primarily under private ownership and are either being held off the market by
the owner, or are in the process of being rehabilitated or redeveloped. Area non-profit
housing developers are encouraged to pursue any feasible building or site, including
vacant and abandoned ones, as a potential affordable housing project. The City is
considering redeveloping the two vacant parcels at 2747 and 2785 Park Boulevard as a
new Police Station.
Chronically Homeless (Add to Section 3.8)
A chronically homeless person is defined by HUD as an unaccompanied homeless
individual with a disabling condition who has been continuously homeless for a year or
more, or had at least four episodes of homelessness in the past three years; sleeping in a
place not meant for human habitation (e.g. living on the streets) and/or in an emergency
shelter. Based on the County’s 2004 Continuum of Care application, there are
approximately 931 chronically homeless persons in Santa Clara County. Of the total
number, approximately one-fifth, or 186 chronically homeless individuals, reside in
emergency shelters. There are an estimated 14 chronically homeless persons in Palo Alto.
Serious mental illness, chronic health conditions, physical disabilities and substance
abuse disorders are all high risk factors for chronic homelessness.
Recognizing that homelessness is a regional issue, the City of Palo Alto actively
participates in the Santa Clara County Homeless Collaborative. Being the northernmost
city in Santa Clara County, the City also partners with non-profit organizations and other
agencies in neighboring San Mateo County to provide or support services and housing
available to low-income, homeless, and chronically homeless persons.
The Santa Clara County Homeless Collaborative has adopted a Continuum of Care
approach to helping individuals and families avoid becoming homeless, move from
emergency shelter to permanent housing, and to end chronic homelessness. For the
chronically homeless, the primary point of entry to the County’s Continuum of Care
system is often through outreach which actively targets homeless people on the streets or
in encampments.
Outreach programs in Santa Clara County that are targeted to the chronically homeless
include: Alliance for Community Care, InnVision the Way Home, and Emergency
Housing Consortium. Mental health workers from Alliance for Community Care provide
street outreach and intervention services for the chronically homeless population in Palo
Alto. The Emergency Housing Consortium’s new "Off the Streets Project" targets
chronically homeless individuals who are addicted to alcohol. The program provides 26
units of permanent housing that focus specifically on the housing and supportive service
needs of chronically homeless people. InnVision/Urban Ministry’s prepared meal and
grocery programs in Palo Alto provide basic life sustaining services to those who are
chronically homeless.
The City supports programs that provide extra counseling and case-management services
for residents of the City’s Single Room Occupancy (SRO) housing. Many of these
residents were previously chronically homeless and require extra support and assistance
in order to maintain their housing status. The City of Palo Alto also participates in a
North County Shelter plus Care Program to place chronically homeless individuals in
subsidized permanent housing with supportive services. The Santa Clara County Housing
Authority has set aside 100 Section 8 vouchers for chronically homeless adults. Several
individuals from Palo Alto are on the existing waiting list. The Catholic Charities
Housing Search program is partnering with the Housing Authority to help program
participants locate and secure housing.
In the fall of 2006 the Opportunity Center opened in Palo Alto. The Opporttmity Center
provides 89 units of new permanent affordable housing targeted to extremely low income
individuals and families, and also providesa day service center for low-income and
homeless individuals. The day center is open from 8:30-4:30 Monday through Friday
and includes basic services targeted to the chronically homeless such as showers, laundry
facilities, clothing, food, mental health counseling, health care, substance abuse
programs, as well as comprehensive and coordinated outreach and counseling.
There are two programs in Palo Alto that provide outreach, coaching and potential
employment opportunities for individuals who are homeless or chronically homeless.
The City’s seasonal workers program provides temporary seasonal jobs in different City
Departments, to homeless persons who are able to work. Workers in this program are
provided with counseling, meal and clothing vouchers, transportation and training as a
means of moving them from the streets or emergency shelters into more permanent
housing and promoting self-sufficiency. The Downtown Streets Team targets homeless
and chronically homeless individuals to help clean and beautify the streets of Palo Alto
while providing them with the training and resources necessary to improve their
condition.
Although there are no permanent homeless shekers in Palo Alto, InnVision the Way
Home/Urban Ministry does operate a rotating church shelter program within the City.
The shelter operates 365 days per year, rotating each month from one sponsoring church
to another. It provides nightly shelter, meals, and outreach services for up to fifteen
homeless and chronically homeless individuals each night. InnVision the Way Home
also operates the singles/couples and family shelters at the Clara-Mateo Alliance facility,
housed on the Veterans Administration campus in nearby Menlo Park. There are a total
of 63 emergency shelter beds and six transitional housing units for homeless individuals,
including those who are chronically homeless. Meals and extensive support services,
including case management, crisis intervention, drug/alcohol sobriety maintenance,
medical care, and linkages with other agencies, are provided in order to help clients break
the cycle of homelessness and poverty.
Resources Available (Add to Section 4.2)
The City of Palo Alto encourages local non-profit housing and public service agencies to
pursue all available public and private funding sources in order to achieve the goals of the
Consolidated Plan. Most projects and activities secure funding from a variety of sources
including private donations, charitable foundations, and church and community
fundraising to leverage federal, state and local funding.
Community Development Block Grant (CDBG) Funds
The City receives CDBG funds as an entitlement grant through the U.S. Department of
Housing and Urban Development (HUD). The entitlement grant plus any program
income received from loan repayments or notes receivable are allocated annually to
eligible activities.
HOME Program
The City of Palo Alto is not an entitlement grantee under the federal HOME program and
thus does not receive a direct grant of HOME Program funds from HUD. The only way
to access HOME funds for housing projects located within the City of Palo Alto is for the
City, or eligible nonprofit organizations to apply to the State of Califomia for the funds in
an annual competition. Due to excessive demand for the State’s HOME allocation, and
rating criteria that does not favor areas like Palo Alto, it is difficult to secure an award. In
the past, the State has limited the maximum HOME award per project to one million
dollars.
City Affordable Housing Fund
The Affordable Housing Fund is a local housing trust fund established by the City
Council to provide financial assistance for the development, acquisition and rehabilitation
of housing affordable to extremely low, very low, low and moderate-income households.
The Affordable Housing Fund is the umbrella name for five distinct sub-funds for
affordable housing. The Affordable Housing Fund is composed of: (1) the Commercial
Housing Fund; (2) the Residential Housing Fund; (3) the CDBG Housing Fund; (4) the
HOME Program Income Fund; and (5) the Below Market Rate (BMR) Emergency Fund.
Housing Trust of Santa Clara County (HTSCC)
The HTSCC is a public/private initiative, dedicated to creating more affordable housing
in Santa Clara County, using a revolving loan fund and grant-making program to
complement and leverage other housing resources.
State of Califomia’s Multifamil¥ Housing Program (MHP)
The purpose of this program is to provide low-interest loans to developers of affordable
housing. The MHP General funds may be used for multifamily rental and transitional
housing projects involving new construction, rehabilitation, or conversion of
nonresidential structures. MHP Supportive Housing funds may be used for multifamily
rental housing projects involving new construction, rehabilitation, acquisition and
rehabilitation, or conversion of nonresidential structures for permanent rental housing.
State of Califomia’ s Local Housing Trust Fund Grant Program
Another component of Proposition 46 was funding for new and existing local housing
trust funds. A local housing trust fund is a public or private partnership created to receive
on-going revenues for affordable housing production such as Palo Alto’s Commercial
and Residential Housing Funds. Local revenues supporting the fund can include
commercial impact fees, ongoing ftmdraising, or local taxes such as Transient Occupancy
Tax, as well as local government’s general funds.
Santa Clara County Affordable Housing Fund (AHF)
The Santa Clara County Board of Supervisors established the Affordable Housing Fund
with initial funding of $18.6 million in July 2002. The main purpose of the AHF was to
assist in the development of affordable housing especially for extremely low income and
special needs people throughout Santa Clara County
Section 8
The Housing Authority of the County of Santa Clara administers the Section 8 program
countywide, This program allows tenants to pay just 30% of their income for rent. The
Shelter Plus Care program includes a supportive component to the voucher to assist at-
risk participants remain in stable housing. Close to 300 households in Palo Alto receive
housing assistance through the Section 8 and Shelter Plus Care Programs. The City
anticipates that Section 8 vouchers will continue to be available to Palo Alto residents
during the term of this plan.
Low-Income Housing Tax Credits
The Califomia Tax Credit Allocation Committee (CTCAC) holds two application cycles
each year. Typically, the first cycle is held in March and the second is held in July. Local
non-profits apply directly to the CTCAC for these funds when they have identified a
project.
McKinney-Vento Homeless Assistance
Each year between 35 and 40 non-profits in Santa Clara County receive approximately $9
million for programs assisting the homeless. These funds benefit programs on a
countywide basis.
Outcome Performance Measurement System (Add to Section 4.3)
The purpose of HUD’s new performance measurement system is to provide a framework
to better capture, measure and monitor CDBG program results so that program
effectiveness can be clearly demonstrated at both the local and national levels. The new
performance measurement structure requires that objectives, outcomes and indicators be
linked to the strategies in the Consolidated Plan, to the proposed activities in the Annual
Action Plan and to the accomplishments reported in the Consolidated Annual
Performance and Evaluation Report (CAPER). This system will help quantify and
measure program outcomes in order to determine how well programs and activities are
meeting established needs and goals of the Consolidated Plan.
All activities must meet one of three national objectives:
¯Create a suitable living environment
¯Provide decent housing
¯Create economic opportunities
Once an objective is selected, an outcome must be identified:
¯Availability/Accessibility
¯Affordability
¯Sustainability
Finally, specific performance indicators must be reported, such as:
¯Number of rental units constructed
¯Number of rental units rehabilitated
¯Number of persons assisted with new access to a public service
¯Number of households who received assistance to prevent homelessness
The following chart identifies specific objectives, outcomes and indicators for the
nineteen goals in the strategic plan section of the adopted Consolidated Plan.
STRATEGIC PLAN OBJECTIVES
GOAL
o
STATEMENT OF
STRATEGIC GOAL
Increase the supply of affordable
rental housing
Preserve the supply of affordable
housing at risk of conversion to
market-rate housing
Conserve the condition of existing
affordable rental housing
Continue the BMR Program
Continue Mortgage Credit
Certificate Program
Emergency or crisis rehabilitation
loans to low- income homeowners
NATIONAL
OBJECTIVE
Provide decent
affordable
housing
Provide decent
affordable
housing
Provide decent
affordable
housing
Provide decent
affordable
housing
Provide decent
affordable
housing
Provide decent
affordable
housing
OUTCOME
MEASURE
Affordability for the
purpose of providing
decent affordable
housing
Sustainability for the
purpose of providing
decent affordable
housing
Sustainability for the
purpose of providing
decent affordable
hoflsing
Affordability for the
purpose of providing
decent affordable
housing
Affordability for the
purpose of providing
decent affordable
housing
Sustainability for the
purpose of providing
decent affordable
housing
PERFORMANCE
INDICATOR
125 Units
72 Units
150 Units
20 Households
15Households
2Households
o
10.
11.
12. ’
13.
14.
15.
16.
17.
18.
19.
Provide for minor home repairs
Provide supportive services to
persons at-risk of becoming
homeless
Support the Opportunity Center
for the provision of supportive
services with a housing component
Support operating or rehabilitation
costs of shelters and transitional
housing programs that serve Palo
Alto homeless
Support mental health outreach
and other supportive services for
the homeless
Cooperate on Countywide
approaches to homelessness
Support the activities of non-profit
organizations that provide
transitional housing and supportive
services to the homeless
Increase the number of Shelter
Plus Care units available to
families with children
Assist seniors in long-term care
facilities
Support accessible transportation
services
Provide services to prevent
homelessness
Support local food and meal
programs
Promote a vital system of
community, based human services
through facilities to house those
services
Provide decent
affordable
housing
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide decent
affordable
housing
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Provide a
suitable living
environment
Sustainability for the
purpose of providing
decent affordable
housing
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of providing
decent affordable
housing
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of a suitable
living environment
Affordability for the
purpose of providing
decent affordable
housing
Accessibility for the
purpose of providing
decent affordable
housing
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of a suitable
living environment
Accessibility for the
purpose of a suitable
living environment
*The 8,000 persons represent a cumulative number for both goals 8 and 17.
130 Households
8000 persons*
1 Facility
10 Facilities
14 Persons
25 Person~
40 persons
15 Units
600 Persons
300 Persons
8000 Persons*
800 Persons
1 Facility
Strategic Plan/Allocation Priorities (Add to Section 4.3)
The City intends to allocate its annual formula grant funds to the highest priority needs
identified in this plan, contingent upon the application, eligibility and readiness of local
projects applying for funding. New federal regulatory standards relating to the timely
expenditure of CDBG funds require that no more than 1.5 times a jurisdiction’s annual
entitlement grant amount (plus program income) may remain in the letter of credit 60
days prior to the end of the program year. HUD now employs monetary sanctions against
jurisdictions that exceed the regulatory standard. Failure to meet the expenditure
standard will cause HUD to reduce the City’s CDBG grant by 100% of the amount in
excess of 1.5 times the annual grant.
Unfortunately, the stricter enforcement of the expenditure standard increases the
difficulty in providing funds for affordable housing, the highest identified priority need.
Projects that create affordable housing typically take longer and are subject to more
delays than other capital projects due to inherent complexities in zoning, planning,
financing, etc. This may create situations where lower priority activities will be
undertaken instead of higher priority activities simply because they are easier to
accomplish and ready to proceed.
The 2005-2010 Consolidated Plan did not establish separate goals for rental housing
production in the three HUD income categories due to the difficulty in predicting future
projects with that level of specificity. The ability to meet income-specific goals is
dictated by a project’s funding source, and each funding source has its own income
targeting requirements. However, since the new regulations require that this information
be provided, the following chart (HUD Table 2A) has been revised to specify a goal in
each of the three income categories. The highlighted portion divides the unit goal
numbers by income category. The numbers in each income category are assigned by the
relative level of priority need. The City will, however, actively pursue housing units in
any of the HUD income categories, depending on the funding source and project
presented.
Households
Small Related
Large Related
Elderly
All Other
Priority Rental Housing Needs
Income
% of
Median
0-30%
31-50%
51-80%
0-30%
31-50%
51-80%
0-30%
31-50%
51-80%
0-30%
31-50%
51-80%
Priority
Level
Medium
High
High
Medium
High
High
Medium
High
High
Medium
Need
281
199
220
39
32
24
583
235
114
536
375
405
Goals Go~li
New
Units
25
25 210
25
Goals
Rehab
25
50
50
25
Consultation and Citizen Participation
(Add to Appendix A.2 and the Citizens Participation Plan)
The City of Palo Alto encouraged the participation of local and regional institutions and
other organizations (including businesses, developers, and community and faith-based
organizations) in the process of developing and implementing the consolidated plan, and
consulted with public and private agencies that provide assisted housing, health services,
and social and fair housing services while preparing the plan. The City will explore and
track alternative public involvement techniques such as the use of focus groups and the
internet to encourage and increase citizen participation in the future.