HomeMy WebLinkAboutStaff Report 185-08City of Palo Alto
City Manager’s Repor
TO:
ATTENTION:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
FROM:
DATE:
CITY MANAGER
APRIL 1, 2008
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 185:08
SUBJECT:PROPOSF3) FISCAL YEAR 2008-2009 COMMUNITY
DEVELOP~ BLOCK GRANT (C~BG) FUNDING
AIZOCATIONS AND 2008-2009 DRAFF ACTION PLAN
RECOMMENDATIONS
Staff and the CDBG Citizens Advisory Committee (CAC) recommend that the Finance
Committee recommend that the City Council:
1. Allocate CDBG funding as recommended by staff and the Citizens Advisory
Committee (CAC) in the draft 2008/09 Action Plan.
2.Authorize staff to submit the 2008/09 Action Plan to Department of Housing and
Urban Development (HUD) by the May 15, 2008 deadline.
3.Authorize the City Manager, on behalf of the City, to execute the 2008/09 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.
BACKGROUND
Consolidated Plan
The 2005-2010 Consolidated Plan, adopted by Council on May 9, 2005 and amended on
May 7, 2007, is a 5-year strategic plan of action that addresses priority housing and
community development needs. It also sets specific goals for attaining identified
objectives. Each year, an Annual Action Plan is prepared to identify specific projects to
be funded to implement the Consolidated Plan. The Consolidated Plan and the Annual
Action Plan updates are required by HUD in order for the City to receive federal funding
CMR: 185:08 page 1 of 9
from programs such as the Community Development Block Grant (CDBG) or HOME
Investment Partnership Act. 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 fisc!l year 2008/09 address the priority housing
and supportive service needs identified in the adopted 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.
The City has three primary CDBG program activity areas:
1)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 2008/09, the maximum available for public services is $127,672.
2)Planning and Administration: This category is used to reimburse for fair housing
activities, CDBG program management, oversight and coordination,
environmental reviews, and CDBG-related 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 2008/09, funding is limited to a maximum of $148,229. The City’s
reimbursement for the cost of administering the CDBG program is limited by this
cap. Although the actual cost of administering the program is higher than the
recommended funding allocation, this recommendation is the maximum
reimbursement allowed given this year’s grant allocation. The balance of CDBG
CMR: 185:08 page 2 of 9
administrative costs, approximately $20,000, is charged to the City’s General
Fund.
3)Capital Projects: Capital improvement activities such as housing land acquisition,
purchase of existing rental housing, rehabilitation, accessibility, and public
improvements are the primary focus of the City’s 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.
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, Terry Godfrey, Michael Jakoby, and
Richard Schoelerman. Richard Schoelerman was selected by the Committee as
spokesperson. The funding recommendations previously made by the Committee and
approved by Council in May 2007 were preliminary recommendations for the second
year of the two-year cycle; therefore the CAC met on three occasions in January and
February 2008 to review and finalize those funding recommendations. A new housing
application received from the Palo Alto Housing Corporation was also discussed at these
meetings.
DISCUSSION
2008/09 Funds Available for Allocation
The total amount available for allocation in fiscal year 2008/09 is $1,813,106. The City’s
2008/09 CDBG grant is $676,148, a decrease of approximately five percent over the prior
year’s grant of $712,032. There are $440,341 in funds remaining from previous projects
that are being reallocated to new projects. This amount includes $383,929 that had been
allocated to Bridge Housing in fiscal year 2007/08 for their Fabian Way Senior Housing
project. The CDBG funds were to be used for land acquisition because that is one of the
few CDBG-eligible expenses in new housing development. Bridge needed to close
escrow on the property in July 2007, which was prior to the completion of the National
Environment Policy Act (NEPA) environmental review. CDBG regulations require that
an environmental review be completed prior to the expenditure of CDBG funds. Bridge
Housing will instead receive $600,000 from the City residential fund in fiscal year
2008/09. The City residential fund money can be used for other purposes on the project
and is not limited to acquisition expenses. Also included is $65,000 in program income
(income generated directly from the use of CDBG funds) expected to be received in
CMR: 185:08 page 3 of 9
2008/09, plus $17,365 in program income received in previous years in excess of the
estimated amount. The City received a loan repayment of $114,252 from Adolescent
Counseling Services for the sale of its Caravan House property, which is included in the
total available for allocation. The City will also be receiving approximately $500,000 in
loan repayments from the Sheridan Apartments ($165,000) and Palo Alto Gardens
($335,000). The estimated loan repayment amount is also included in the total funds
available for allocation.
In summary:
$676,148
$440,341
$5,000
$60,000
$17,365
$114,252
$165,000
$oo5,000
$1,813,106
FY 2008/09 CDBG entitlement grant from HUD
Rea!location of other previous funds
Estimated program income for 2008/09 from the City’s Housing
Improvement Program (HIP), a single-family residential
rehabilitation program that is no longer operational
Estimated program income for 2008/09 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
Caravan House Loan Repayment
Estimated Sheridan Apartments and loan repayment
Estimated Palo Alto Gardens loan repayment
TOTAL AVAILABLE FOR ALLOCATION
The City received 17 applications for funding from outside organizations totaling
$1,397,329 for FY 2008/09. The City is also in the process of soliciting applications for
a fair housing provider through a joint Request for Proposals (RFP) with the cities of
Mountain View, Sunnyvale and Gilroy. Because the provider has not been selected yet,
staff and the CAC are recommending a specific dollar amount to be allocated to the
selected provider.
In addition, the City received an application from the Palo Alto Housing Corporation in
February 2008 for the acquisition of land for the development of affordable housing. The
requested amount for this project is $3,000,000. In accordance with the City Affordable
Housing Fund Guidelines, funding applications for housing projects may be submitted at
any time throughout the year. The total requested amount in FY 08/09 CDBG funding is
$4,397,329.
FY 08/09 - 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
CMR: 185:08 page 4 of 9
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 is 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
be necessary in the event that the City’s entitlement grant is increased or decreased when
the President signs the actual federal budget for the 2008/09 fiscal year.
The following capital projects were considered for the 2008/09 fiscal year:
¯ESO’s Housing and Energy Services Program
®Eden Housing/Community Housing Alliance’s 875 Alma Street Senior Housing
Program,
Lytton Gardens’ new shower enclosure project
®Stevenson House’s interior common area renovation project, and
®Palo Alto Housing Corporation’s 488 West Charleston Road Housing Project.
Staff and CAC recommended funding only the Palo Alto Housing Corporation (PAHC)
project for the 2008-2009 fiscal year in an amount totaling $1,538,577 because the
creation of new affordable housing is the top priority in the City’s 2005-2010
Consolidated Plan. The project will also be able to draw down all of the CDBG funds
awarded by the next March 2009, which will ensure that the City meets HUD’s standards
for the timely expenditure of CDBG funds. Staff and the CAC are also recommending
that program income from the Sheridan Apartments and Palo Alto Gardens loan
payments be allocated to the PAHC project. The estimated program income that will be
received is approximately $500,000. The Eden Housing/Community Housing Alliance
project is still very preliminary; Eden will be encouraged to seek funding for construction
subsidies from City housing funds, once it is closer to secure its planning entitlements.
Since staff is still working with Lytton Gardens and Stevenson House to complete other
CDBG funded projects from previous fiscal years, the recommendation is to encourage
Lytton and Stevenson House to submit an application during the next funding cycle.
Staff and the CAC do not recommend funding for ESO because the agency has declared
bankruptcy and is no longer in operation.
CMR: 185:08 page 5 of 9
FUNDING RECOMMENDATIONS FOR FISCAL YEAR 2008-2009
FUNDING RECOMMENDATIONS~
APPLICANT AGENCY
1.Catholic Charities
Housing Search Services
2.Catholic Charities
Long-Term Care Ombudsman
3. Day~vorker Center of Mountain View
Dayworker Center
4. Emergency Housing Consortium
Off the Streets Program
5. Emergency Housing Consortium
Palo Alto HOMES
6. InnVision/Clara-Mateo Alliance
Adult Singles/Couples Housing Program
7. InnVision/Clara-Mateo Alliance
Family Housing Program
8. InnVision/Urban Ministry
Opportunity Center/Urban Ministry
Program
9. Mid-Peninsula Alano Club
MPAC Operations
10. Palo Alto Housing Corporation
SRO Resident Support Services
11. Peninsula Association for Retarded
Children & Adults (PARCA)
Page Mill Court
12. Shelter Network - Haven Family House
Homeless Palo Alto Families & Single
Adults
Total Public Services (Cap $127,672)
2007/2008
FUNDING
PUBLIC SERVICES
-0-
7,500
7,500
7,500
17,500
171500
30,000
-0-
25,000
-0-
8,500
2008/2009
FUNDING
REQUEST
20,000
7,800
15,000
15,000
10,000
35,000
25,000
30,000
10,000
42,245
10,000
30,000
CAC/ STAFF
RECOMMEN-
DATIONS
-0-
7,800
-0-
7,500
7,500
17,500
17,500
30,000
12!,000
-0-
30,000
Applic~ion
Withdrawn
8,500
250,045
FAIR HOUSING/ADMINISTRATION
13.Fair Housing Services 26,800 26,800
(Provider to be determined through RFP)
126,300
26,800
CMR: 185:08 page 6 of 9
FUNDING RECOMMENDATIONS~
APPLICANT AGENCY
14. City of Palo Alto
Program Administration
Total Administration (Cap $148,229)
2007/2008
FUNDING
124,536
151,336
CAPITAL PROJECTS
2008/2009
FUNDING
REQUEST
186,900
213,700
CAC/ STAFF
RECOMMEN-
DATIONS
121,429
148,229
15. Economic and Social Opportunities
Housing and Energy Services Program
16. Eden Housing/Community Housing
Alliance
875 Alma Senior Housing
17. Lytton Gardens
New Shower Enclosures
18. Palo Alto Housing Corporation
488 W. Charleston Road Housing Project
19. Stevenson House
Interior Common Area Renovation
Total Capital (Cap $1,538,5773)
-0-
0
144,259
60,000
500,000
103,300
3,000,000
270,284
-0-
1,5~8,577-
-0-
1,538,577
1,813,106
TOTAL
~Changes may be necessary if the amount of funding is increased or decreased when the President signs the
budget.
-~The recommendation includes 51,372 in unallocated funds from the public service cap and $500,000 in
projected program income from Palo Alto Gardens and Sheridan Apartments. It may be necessary to modify the
amount of funding depending on the actual amount received from Palo Alto Gardens and Sheridan Apartments.
3The total capital cap includes $1,372 in unallocated funds from the public service cap and $500,000 in projected
program income from Palo Alto Gardens and Sheridan Apartments.
CMR: 185:08 page 7 of 9
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.
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 5, 2008. Subsequently,
the Annual Action Plan and Consolidated Plan update will be submitted to HUD to meet the
May 15, 2008 deadline, pending Council approval.
POLICY IMPLICATIONS
All of the applications recommended for funding in fiscal year 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.
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: Staff and CAC recommendations for FY 2008/09 CDBG Funding
Attachment B: 2008/09 Draft Annual Action Plan
PREPARED BY:
Eloiza Murlllo-Garcia, Planner - CDBG
STEVE EMSLIE, Director
Planning and Community Environment
CMR: 185:08 page 8 of 9
CITY MANAGER APPROVAL:
EMILY gON
Assistant City Manager
CDBG Citizens Advisory Committee Members
2008/09 CDBG Applicant Agencies
CMR: 185:08 page 9 of 9
ATTACHMENT A
STAFF AND CITIZENS ADVISORY COMMITTEE (CAC)
RECOMMENDATIONS FOR 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
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $7,800 $7,500 $7,800
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.
PrioriW 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 2007/08, and anticipates serving at the same rate
for the rest of the fiscal year. Agency proposes contacting/interviewing 320 Palo Alto
residents and conducting a minimum of 28 complaint investigations in the 08-09 fiscal year.
Staff and the CAC recommend increasing their funding to $7,800 in fiscal year 2008/09
because of the number of Palo Alto residents that are served and their services are not
duplicated by any other agency.
2.Inn Vision the Way Home - Opportunity Center/Urban Ministry Program
33 Encina Way, Palo Alto, CA 94301
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $30,000 $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.
Priori _ty Need: Shelter and services for persons who are homeless.
Discussion: The Urban Ministry’s Opportunity Center program serves between 100-120
homeless individuals from 8:30am to 4:30pm 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 500 unduplicated individuals
by June 2009. Staff and the CAC recommend that Urban Ministry’s funding be maintained
at the same level as fiscal year 2007/08. Urban Ministry/Opportunity Center served 3,537
individuals through December 2007, already exceeding their goals set for the fiscal year
2007-2008. 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
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $35,000 $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 62 Palo Alto
individuals and couples. The adult program has already served over 300 Palo Alto residents
in the first half of fiscal year 2007/08. Staff and the CAC recommend funding at the same
level as fiscal year 2007/08.
4.Clara-Mateo Alliance (CMA)/InnVision - Family Shelter Wing
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $25,000 $17,500 $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
Discussion: This project is an important resource for the homeless families with children in
northern Santa Clara County. Staff and the CAC recommend funding at the same level as
fiscal year 2007/08.
5. Mid-Peninsula Alano Club - MPAC Operations
1155 Reed Avenue, Sunnyvale, CA 94086
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $10,000 $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: MPAC did not receive CDBG funding in fiscal year 2007/08. Staff and the
CAC recommend no funding for this program for fiscal year 2008/09. 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
507 Valley Way, Milpitas, CA 95035
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $10,000 $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
year 2008/09 they plan to serve 25 unduplicated Palo Alto homeless residents in transitional
housing and provide 1,000 person shelter days. Through December 2007 they have served
17 unduplicated persons for the 2007/08 fiscal year.
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7. Emergency Housing Consortium (EHC) - Off the Streets Project
507 Valley Way, Milpitas, CA 95035
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $15,000 $7,500 $7,500
Proposal: EHC Life Builders’ Off the Street Project is in its second year of operation. It
provides services 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. The project 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 clients) in the 2008/09 fiscal year. Staff and CAC
recommend the same level of funding for this project as in fiscal year 2007/08.
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
Funding Request
FY 08/09 $39,254
2007/08 Funding
$25,000
Staff/CAC Recommendation
$30,000
Proposal: The Palo Alto Housing Corporation maintains two Single-room occupancy (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 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.
Priori _ty Need: Prevention of homelessness
5
Discussion: By December 2007, all the targeted goals and objectives for the fiscal year 07/08
have been already met. Staff and the CAC recommend an additional $5,000 in CDBG
funding for this program because it is a Palo Alto-based program and has dramatically
reduced turnover and eviction rates at the Barker Hotel and Alma Place. This service is also
not duplicated by any other agency.
9.Peninsula Association for Retarded Children and Adults - Page Mill Court
2700 Ash Street, Palo Alto, CA 94306
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $10,000 N/A Application Withdrawn
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
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $20,000 $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
such as financial and vocational training. Individuals and families are provided one on one
6
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. Their 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 no funding for this project.
11. Shelter Network- Services for Homeless Palo Alto Families and Single Adults
1450 Chapin Avenue, 2nd Floor, Burlingame, CA 94010
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $30,000 $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 at their 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. Shelter Network expects to serve
500 single men and women and 180 families in the fiscal year 2008/09. Of this total amount,
it is expected that three to eight families from Palo Alto will be served at the family facilities
(representing approximately 8 to 24 parents and children). In addition, they plan on serving
20-30 homeless individuals in their Maple Street shelter. Staff and CAC recommend the
same level of funding as in fiscal year 2008/09.
12.Day Worker Center of Mountain View-Day Worker Center
1880 California Street, Mountain View, CA 94041
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $15,000 $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 a significant number of low income workers from Palo Alto.
FAIR HOUSING/ADMINISTRATION
13. Fair Housing Services- Determined through RFP
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $26,800 $26,800 $26,800
Proposal: The City of Palo Alto has issued a joint Request for Proposals (RFP) to Provide
Fair Housing Services with the Cities of Gilroy, 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: The City has been collaborating with other jurisdictions on jointly selecting a fair
housing provider since 2003. The four cities typically issue a new RFP every two years. The
Department of Housing and Urban Development (HUD) regulations require CDBG
entitlement jurisdictions to affirmatively further fair housing choice. Staff and the CAC
recommend funding in the amount of $26,800, which is the same level of funding as fiscal
year 2007/08.
13. City of Palo Alto - Department of Planning and Community Environment
250 Hamilton Avenue, Palo Alto, CA 94301
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $186,900 $124,536 $121,429
Proposal: Funding is requested to reimburse the City 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, analysis, plan
preparation, and the identification of actions for implementation of plans.
Priority Need: CDBG Program Administration and support
Discussion: A reimbursement of $121,429 from grant funds is well within the 20%
administrative cap and helps alleviate General Fund budgeting constraints. Because the
administrative cap has decreased slightly from the previous fiscal year, staff and the CAC are
recommending a slight decrease in funding in order to fund fair housing services at the
current fiscal year’s level.
CAPITAL AND/OR HOUSING PROJECTS
14.Economic and Social Opportunities -Housing and Energy Services Program
1445 Oakland Road, San Jose, CA 95112
FY 08/09
Funding Request
$60,000
2007/08 Funding
$0
Staff/CAC Recommendation
$0
Proposal: Agency 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: This agency is no longer in operation.
9
15. Eden Housing/Community Housing Alliance - 875 Alma Senior Housing
875 Alma Street, Palo Alto, CA 94301
FY 08/09
Funding Request
$500,000
2007/08 Funding
$0
Staff/CAC Recommendation
$0
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 particularly for very low income seniors with incomes at or below 50% of the
Area Median Income. Eden and CHA have requested a total of $1,000,000 in 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. In addition to this project at 875 Alma
Street, Eden and CHA are planning to build a mixed use project at 801 Alma Street. The
mixed use project will provide a new larger first floor commercial space to the hardware
store and an affordable family rental project on the three floors above. The hardware store
will 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 for the Eden Housing/CHA
project because it is still very preliminary; Eden will be encouraged to seek funding for
construction subsidies from City housing funds, once it is closer to secure its planning
entitlements.
16. Palo Alto Housing Corporation - 488 West Charleston Road Housing Project
488 West Charleston Road, Palo Alto, CA 94306
2007/08 Funding
FY 08/09 N/A
Funding Request
$3,000,000
Staff/CAC Recommendation
$1,538,577
Proposal: The Palo Alto Housing Corporation (PAHC) is proposing to develop a new 30
unit affordable housing community in Palo Alto located at the existing site of the Recording
for Blind and Dyslexic Center. It will provide housing for very low-income households that
earn from 20% to 50% of Area Median Income. The PAHC is preparing to submit an
application to the City for re-zoning the site to RM-40 and as well as for the design review.
PAHC anticipates that they will be able to close escrow on the land by March 2009.
10
Priority_ Need:Acquisition of affordable rental housing for low-income households
Discussion: Staff and the CAC recommend funding in the amount of $1,538,577 for this
project because the creation of new affordable housing is the top priority in the City’s 2005-
2010 Consolidated Plan. The project will also be able to draw down all of the CDBG funds
awarded by the next March 2009, which will ensure that the City meets HUD’s standards for
the timely expenditure of CDBG funds. Staff and the CAC are also recommending that
program income from the Sheridan Apartments and Palo Alto Gardens loan payments be
allocated to the PAHC project. The estimated program income that will be received is
approximately $500,000. Since this is only an estimated amount, the actual amount that will
be able for allocation may be less than or greater than $1,538,577.
17. Lytton Gardens- New Shower Enclosures
437 Webster Street, Palo Alto, CA 94301
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $103,300 $0 $0
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 facilities in the mid-Peninsula, providing quality living conditions
to senior citizens. The facility is 30 years old and is requesting funds to renovate50
bath/shower enclosures in the independent housing units at 656 Lytton Avenue.
Priority Need: Rehabilitation of affordable rental housing
Discussion: Staff and CAC do not recommend funding this project in fiscal year 2008/09.
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. Staff
and the CAC recommend that Lytton Gardens apply for funding for this project in the next
round of funding applications for fiscal years 2009/2011.
18. Stevenson House - Exterior Common Area Renovation
455 E. Charleston Road, Palo Alto, CA 94306
Funding Request 2007/08 Funding Staff/CAC Recommendation
FY 08/09 $159,506 $144,259 $0
11
Proposal: Stevenson House provides 120 units of affordable rental housing to low-
income seniors. For the fiscal year 2008-2009 their proposal is to renovate the exterior
common area, such as the sidewalk, parking area and awning replacement.
Priority Need: Rehabilitation of affordable rental housing
Discussion: Staff and the CAC do not recommend funding for this project in fiscal year
2008/09. Currently staff is working with Stevenson House on two projects consisting of a
windows/doors retrofit and radiant heat system upgrade. Staff and the CAC would like to
complete the outstanding projects prior to awarding additional funding. Staff and the CAC
recommend that Stevenson House apply for funding for this project in the next round of
funding applications for fiscal years 2009/2011.
12
ATTACHMENT B
CITY OF PALO ALTO
Housing and Community Development
DRAFT
2008/2009 ACTION PLAN
Annual Update of the City’s Consolidated Plan for the Period
July 1, 2005 to June 30, 2010
Public Review Period March 25, 2008 - April 25, 2008
Prepared by Department of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, California 94301
Steve Emslie, Director
For Information, Please Contact: Eloiza Murillo-Garcia, CDBG Coordinator
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 2008/09 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
2008/09 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 Objectives 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 objectives and expected outcomes are identified in this report for each
proposed activity.
The City intends to provide funding for various activities, which are consistent with the adopted
Consolidated Plan. The City will undertake a housing activity that meets the objective of
providing decent affordable housing. The housing project that is planned for 2008/09 is the 488
West Charleston Road housing project. This project involves the acquisition of land for the
purpose of developing 30 units of affordable housing. This project has the outcome of providing
new housing affordability by creating 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; InnVision/Clara-Mateo Alliance - Family Housing Program; InnVision!Clara-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 141 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 acquire Alma Gardens, an existing
10-unit 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 2008/09 is the
second year of a two-year funding cycle. The CAC met on January 17th February 7th and 21st
to review and evaluate the applications and make funding recommendations on the applications
submitted for 2008/09 CDBG funding.
The City made the draft Action Plan available for public review from March 25 to April 25,
2008. The City placed an ad in the Palo Alto Weekly on March 14, 2008 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 1, 2008 and one before the full City Council on May 5, 2008.
No public comments were received on the Action Plan.
RESOURCESAVAILABLE
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 2008/09, the City will allocate $1,818,106 in
CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. The
amount of the City’s 2008/09 CDBG entitlement grant from HUD is $676,148, estimated
program income for 2008/09 is $65,000, excess program income received is $17,365, and
reallocated funds total $383,929. Also included in the total is $114,252 from a loan repayment
from Adolescent Counseling Services for the sale of their Caravan House facility. The City had
provided CDBG funding for the rehabilitation of the Caravan House group home in fiscal year
2003/04 and the facility was sold in July 2007. The City will also be receiving loan repayments
from two properties in fiscal year 2007/08 from an affordability reserve account. The Palo Alto
Gardens and Sheridan Apartments were required to establish an affordability reserve account as
a condition of their CDBG and City funding. Their agreements stipulate that they must make
payments to the City when the balance in their respective accounts reaches $1,000,000. Each of
the two properties affordability reserve accounts have now reached $1,000,000. Because of this,
2
they will each be making a payment to the City. The estimated payment from the Palo Alto
Gardens is approximately $335,000 and the estimated payment from the Sheridan Apartments is
$165,000. Program income is income directly generated from the use of CDBG funds that is
returned to the CDBG program, and reallocated to new activities.
FY 2008/2009 CDBG Entitlement Grant
Program Income:
Estimated Program Income 2008/09 (HIP)
Estimated Program Income 2008/09 (PAHC)
Excess Prior Year Program Income
Caravan House Loan Repayment
Estimated Palo Alto Gardens Loan Repayment
Estimated Sheridan Apartments Loan Repayment
$676,148
5,000
60,000
!7,365
114,252
335,000
165,000
Reallocated Funds:
Miscellaneous Reallocations
Total Allocation
440,341
$1,813,106
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 $60,000 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 Pro~am 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, 2007,
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, 2007, 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 rea! 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 funded project, the Barker
Hote! 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 of 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.
4
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 $650,000 to the HTSCC
since its inception and plans on contributing an additional $100,000 in fiscal year 2008/09. The
City’s contribution will 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.
Proposition 1C - the Housing and Emergenc,/Shelter Trust Fund Act was passed by California
voters in November 2006. It authorized $2.85 billion of general obligation bonds to fund 13 new
and existing housing and development programs, including $590 million for farm-worker
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 mast 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.
5
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 309 households received assistance through
the Section 8 program. Of those, 209 were housing choice vouchers, 8 were Shelter Plus Care
vouchers, 52 were project-based 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 2008/09.
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 ~SOURCES FOR AFFORDABLE
HOUSING
Activity
STATE, LOCAL, and
Commercial Housing
Fund
Residential Housing
Fund
State MHP
City Owned Land
MCC Program
Housing Trust of
Santa Clara County
Santa Clara County
Housing Authority -
Section 8
Acquisition Rehab
PUBLIC
Home
Buyer Rental
Assistance Assistance
New
Construction
x
x
x
x
x
x
Homeless
Assistance
Homeless
Prevention
x x x
x x
x
x x x x x
x x x x x
X XCounty Department
of Social Services
Santa Clara County
Affordable Housing
Fund
PRIVATE RESOURCES
BMR Rental &
Owner Program
Private Lenders: AHP
Nonprofit Developers
Private Foundations
and Churches
X
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
2008/09. 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 Meadow/Ventura 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, 2008 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 2008/09 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 2008 will be the fourth 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 2008/09 Annual Action Plan.
Summary of Specific Housing/Community Development Objectives (HUD Table 2C)
Goal #Specific Objectives Performance Expected Units
Measure 5 Year 2008/09 Goal
Goal 1
Goal 2
Goal 3
Goal 4
Goal 5
Goal 6
Goal 7
Goal 15
Goal 17
Goal 18
Goal 19
Rental Housing Objectives
Increase the supply of rental
housing
Preserve existing affordable
rental housing
Conserve the condition of
existing rental housing
Owner Housing Objectives
Continue Below Market Rate
Program
Continue to participate in
MCC program
Rehabilitation loans to L/M
Income Owners
Minor Home Repairs and
Accessibility Upgrades
Public Service Objectives
Assist seniors in tong-term
care
Services to prevent
homelessness (incl. in Goal 8)
Food and meal programs
Public Facilities
Promote community-based
services through public
facilities
Units
Units
Units
Units
Units
Units
Units
Individuals
Individuals
Individuals
Facilities
125
72
150
20
15
Emergencies
only
130
600
8,000
8OO
2
3O
0
0
36
3
As needed
26
~_0
3,500
325
0
Each proposed activity of the 2008/2009 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 2008/09 Activity:
Palo Alto Housing Corporation
488 W. Charleston Rd.
Palo Alto, CA 94306
2008 Goal: 30 new housing units
Goal #2: Preselwe the Supply of 72 units of Affordable Rental Housing at Immediate Risk
of Conversion to Market-Rate Housing
Proposed 2008/089Activity:
None. There are no units at immediate risk of conversion to market-rate housing at this time.
9
Goal #3: Conserve the Condition of 150 Existing Units of Affordable Rental Housing
Proposed 2008/09 Activities: There are no new activities planned for this fiscal year.
Goal #4: Continue the Below Market Rate (BMR) Program
Proposed 2008/09 Activity:
City of Palo Alto BMR Program
Units are located citywide
2008 Goal: 36 units
Goal #5: Continue to Participate in the Mortgage Credit Certificate Program
Proposed 2008/09 Activity:
The City of Palo Alto will continue to participate in the mortgage credit certificate program.
2008 Goal: 3 households
Goal #6: Provide for Rehabilitation Loans to Low- and Moderate-Income Single Family
Homeo~vners in Emergency or Crisis Situations Only
Proposed 2008/09 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 2008/09 Activity:
Avenidas - Senior Home Repair
450 Bryant Street
Palo Alto, CA 94301
2008 Goal: 26 households
City of Palo Alto
Utilities Department
Residential Energy Assistance Program
250 Hamilton Ave.
Palo Alto, CA 94301
2008 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 2008/09 Activities:
Palo Alto Community Childcare - Childcare Subsidies
3990 Ventura Court
Palo Alto, CA
2008 Goal: 50 households
Project Sentinel - Mediation Program
430 Sherman Avenue, Suite 308
Palo Alto, CA 94306
10
2008 Goal: 150 households
Second Harvest Food Bank
750 Curtner Avenue
San Jose, CA 95125
2008 Goal: 175 persons
Avenidas
Senior Housing Counseling
450 Bryant Street
Palo Alto, CA 94301
2008 Goal: 1,600 persons
La Comida - Senior Nutrition Program
450 Bryant Street
Palo Alto, CA 94301
2008 Goal: 150 persons
Palo Alto Housing Corporation - Barker Hotel and Alma Place Counseling Program
725 Alma Street
Palo Alto, CA 94301
2008 Goal: 131 households
Mayview Community Clinic - Health Care Services
270 Grant Avenue
Palo Alto, CA 94306
2008 Goal: 100 persons
Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive
Services ~vith a Housing Component
Proposed 2008/09 Activity:
InnVision/Urban Ministry - Opportunity Center (Drop-In Center)
~.~ Encina Ave.
Palo Alto, CA 94301
2008 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 2008/09 Activities:
Clara-Mateo Alliance - Adult Program and Family Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2008 Goal: Operating Costs
11
Haven House
260 Van Buren Rd.
Menlo Park, CA 94025
2008 Goal: Operating Costs
Maple Street Shelter
1580-A Maple Street
Redwood City, CA 94063
2008 Goal: Operating Costs
Emergency Housing Consortium - Emergency Shelter
and Transitional Housing Programs
2665 North First Street, Suite 210
San Jose, CA 95134
2008 Goal: Operating Costs
Innvision!Urban Ministry - Hotel de Zink
Rotating Church Shelter Program
.~_~ Encina Ave.
Palo Alto, CA 94301
2008 Goal: Operating Costs
Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for
the Homeless
Proposed 2008/09 Activity:
InnVision!Urban Ministry
Opportunity Center Health Care Services
.~.~ Encina Ave.
Palo Alto, CA 94301
Emergency Housing Consortium - Off the Streets Project
2665 North First Street, Suite 210
San Jose, CA 95134
Alliance for Community Care - Homeless Outreach Program
2001 The Alameda
San Jose, CA 95126
Goal #12: Continue to Cooperate on Count)~vide Approaches to the Issues of Homelessness
Proposed 2008/09 Activity:
The City wi!l 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
12
Proposed 2008/09 Activity:
InnVision!Clara-Mateo Alliance - Single Adult/Couple Transitional Housing
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2008 Goal: 6 transitional housing units
InnVision/Clara-Mateo Alliance - Family Transitional Housing
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2008 Goal: 18 transitional housing units
Shelter Network - Mid Peninsula Housing Program
1450 Chapin Avenue, 2na Floor
Burlingame, CA 94010
Various locations in the Mid-Peninsula
2008 Goal: 3-8 transitional housing units
Emergency Housing Consortium
2665 North First Street, Suite 210
San Jose, CA 95134
2008 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 2008/09 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. Shelter Plus Care units are also available at the Opportunity Center for qualified
tenants as vacancies dictate.
Goal #15: Assist Seniors in Long-Term Care Facilities
Proposed 2008/09 Activity:
Catholic Charities - Long-Term Care Ombudsman Program
2625 Zanker Road, Suite 200
San Jose, CA 95134-2107
2008 Goal: 320 Persons
Goal #16: Provide Support to Accessible Transportation Services
Proposed 2008/09 Activity:
Continue to support transportation services in the City, including the Palo Alto Shuttle.
13
Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8)
Proposed 2008/09 Activities:
InnVision - Clara-Mateo Adult Singles/Couples Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2008 Goal: 500 People
InnVision - Clara-Mateo Family Housing Program
795 Willow Rd., Bldg 323-D
Menlo Park, CA 94025
2008 Goal: 125 People
Shelter Network - Haven Family House
260 Van Buren Road
Menlo Park, CA
2008 Goal: 70 Households
InnVision!Urban Ministry - Opportunity Center (Drop-In Center)
~ Encina Ave.
Palo Alto, CA 94301
2008 Goal: 500 People
Emergency Housing Consortium - Palo Alto Homes Program
2665 North First Street, Ste. 210
San Jose, CA 95134
2008 Goal: 50 People
Emergency Housing Consortium - Off the Streets Program
2665 North First Street, Ste 210
San Jose, CA 95134
2008 Goal: 26 People
Goal #18: Continue to Support Food and Meal Programs
Proposed 2008/09 Activities:
Second Harvest Food Bank
750 Curtner Avenue
San Jose, CA 95125
2008 Goal: 175 persons
La Comida - Senior Nutrition Program
450 Bryant Street
Palo Alto, CA 94301
2008 Goal: 150 persons
14
InnVision!Urban Ministry
Breaking Bread Meal and Food Closet Meal Programs
.~_~ Encina Ave.
Palo Alto, CA 94301
2008 Goal: 500 People
Goal #19: Promote a Vital System of Community-Based Human Services through Facilities
to House those Services
Proposed 2008/09 Activity:
The City does not plan on undertaking a facility project this fiscal year.
2008/09 PRO~CTS AND ACTIVITIES TO BE UNDERTAKEN
All of the projects and activities to be undertaken with 2008/09 CDBG funding 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 2008/09
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 !25 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).
Palo Alto Housing Corporation- Tree House Proiect - $1.538.577
Objective:Providing Decent Affordable Housing
Outcome:Affordability for the purpose of providing decent affordable housing
Performance Measure: 30 New Units of Affordable Housing
The City intends to allocate $1,538,577 in fiscal year 2008/09 CDBG funding to Palo Alto
Housing Corporation for a new 30-unit affordable housing project known as the Tree House.
The development of new affordable rental housing is a high priority in the Consolidated Plan.
This development will provide new rental housing on a 30,000 square foot site located at 488
15
West Charleston Road in Palo Alto. The property is currently owned by the Peninsula
Endowment, Inc. and houses the Recording for Blind and Dyslexic Center.
The proposed 30 rental apartments will be affordable to extremely-low and very-low income
households earning between 20% and 50% of the area median income. The project will consist
of 26 studio apartments, three one-bedroom apartments and a 1-bedroom resident manager’s
apartment. The studio units will be approximately 500 square feet and the one-bedroom units
will be approximately 600 square feet in size. Rents will not exceed 30% of the resident’s
income. The project will be four-stories high and includes parking and community space on the
ground floor. The residential units will be located on the second through fourth floors.
The City’s CDBG funding will be used for the land acquisition expenses, which are estimated to
be approximately $3,000,000. The overall development cost for Fabian Way Senior is estimated
to be $12.4 million. The financing plan anticipates the major funding sources to be Low-Income
Housing Tax Credits and the state Multi-Family Housing Program, in addition to City of Palo
Alto funding, both CDBG and non-CDBG funds.
Proposed Public Service Activities
CDBG public service funds ~vill be targeted to the following programs in fiscal year 2008/09:
$ 7,500 Emergency Housing Consortium - Palo Alto Homes Program
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 25 persons will have new accessibility to decent affordable
housing
$30,000 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: 125 persons will have improved accessibility to a suitable living
environment
$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: 125 persons 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: 500 persons will have new accessibility to decent affordable
housing
16
S8,500 Shelter Network - Haven Family House
Objective:Providing a suitable living environment
Outcome:Accessibility for the purpose of providing decent affordable housing
Performance Measure: 180 households 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 - Off the Streets Project
Objective:Providing decent housing
Outcome:Accessibility for the purpose of creating suitable living environment
Performance Measure: 26 persons will have new accessibility to decent affordable
housing
$ 7,800 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
hometessness. A variety of supported programs provide mental and physical health care
services, tenant/landlord mediation, subsidized child care, support for victims of domestic
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.
17
A!liance for Community Care: Mental health outreach and service linkage for Palo Alto’s adult
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 - Haven Family House: Transitional housing with supportive services for
previously homeless families with children.
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 Pato 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.
18
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 Minist_ry: 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
Opportunity 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 2005 and 2007 and intends to
participate again in 2009. In 2005, there were an estimated 1,757 chronically homeless people in
Santa Clara County. 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 in exchange for
food, clothing and case management services. 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 continue to operate a program in Palo Alto in
2008/09 to help chronically homeless individuals with alcoho! 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.
Discharge Coordination Policy
The City of Pa!o 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
19
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.
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 of homelessness.
Lead-Based Paint
There have been no reports of significantly high 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
20
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 Pato 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 2008/09 to an agency yet to be determined for the provision of fair
housing complaint investigation, public education and information and referral services. The
City is in the process of selecting a fair housing provider through a joint RFP process with the
cities of Mountain View, Sunnyvale and Gilroy.
Pato Alto plans to undertake the following actions to foster and maintain affordable housing and
to address housing discrimination during the 2008/09 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.
¢" 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
Pa!o 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
21
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
Actions to Remove Barriers to Affordable Housing
The high cost of housing and the lack of available land to build on are the main barriers to
affordable housing in Palo Alto. In 1974 the City adopted a Below Market Rate (BMR) Housing
Program, one of the first in the country, to begin to alleviate an affordable housing shortage.
Although the Program has successfully generated approximately 170 owner-occupied units and
155 rental units, the numbers are not sufficient to meet the affordable housing need. To address
this issue, the City Council increased the percentage requirements and made other modifications
to the Program in conjunction with the Housing Element update in 2002. Additionally, the City
commissioned an independent economic and policy analysis of its BMR Program with the
objective of strengthening the Program and improving its effectiveness. The report was
completed in March 2007, and it is anticipated that the recommendations will be considered by
the City Council in calendar year 2008.
A recent update to the zoning ordinance has also provided incentives to facilitate more mixed use
housing projects in areas adjacent to commercial/multi-family residential areas. The adoption of
a Pedestrian Transit Oriented District (PTOD) also allows development of housing in
manufacturing zones where it had not previously been allowed.
The City has identified affordable housing as the primary objective for the expenditure of CDBG
funds in the Consolidated Plan. It will continue to allocate the maximum funding available to
activities and projects that meet this objective.
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). There are no amendments proposed during this program year.
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
22
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
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 Task Force has been formed and includes
representatives from entitlement jurisdictions, fair housing agencies, and other non-profit
organizations. A staff person from the City of Palo 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 strategic plans. These plans must describe their
long-range goals and provide a strategy for achieving the identified goals. The plans provide
23
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
the CDBG Citizens Advisory Committee to avoid duplication of effort and to assure
collaboration within Palo Alto.
24
APPENDIX A
Application for Federal Assistance
Form 424
SF 424
The SF 424 is part of the CPMP Annual Action Plan. SF 424 form
fields are included in this document. Grantee information is linked
from the 1CPMP.xls document of the CPMP too!.
Complete the tillable fields (blue cells) in the table below. The other items are pre-filled with values from the
Grantee Information Worksheet.
Date Submitted 05/13/08
Date Received by state
Date Received by HUD
Applicant Information
Palo Alto
250 Hamilton Avenue
MS:5A
Palo Alto
94301
~,pplicant Identifier
State Identifier
Federal Identifier
B08MC060020
California
Country U.S.A.
Employer Identification Number (EIN):
94-600389
Applicant Type:
Local Government: City
Program Funding
Type of Submission
Application Pre-application
[] Construction [] Construction
1[~ Non Construction [] Non Construction
CA62682 PALO ALTO
DUNS: 959938929
Organizational Unit
Department: Planning & Comm. Environment
Division:Planning
Santa Clara County
Program Year Start Date (07/01)
Specify Other Type if necessary:
Specify Other Type
U.S. Department oi
Housing and Urban Developmen~
Catalogue of Federal Domestic Assistance Numbers; Descriptive Title of Applicant Project(s); Areas Affected by
Project(s) (cities, Counties, localities etc.); Estimated Funding
Community Development Block Grant 4.218 Entitlement Grant
CDBG Project Titles The City of Palo Alto’s CDBG Program Description of Areas Affected by CDBG Project(s)
for fiscal year 2008/2009. City of Palo Alto, County of Santa Clara, State of
California
$CDBG Grant Amount $676,148 ~Additional HUD Grant(s) Leveraged Describe N/A
$Additional Federal Funds Leveraged }Additional State Funds Leveraged
$Locally Leveraged Funds ;Grantee Funds Leveraged
SAnticipated Program Income $679,252 9ther (Describe) Reprogrammed prior year
~;457,706
Total Funds Leveraged for CDBG-based Project(s) $1,813,106
Home Investment Partnerships Program
HOME Project Titles
$HOME Grant Amount
$Additional Federal Funds Leveraged
$Locally Leveraged Funds
14.239 HOME
Description of Areas Affected by HOME Project(s)
;Additional HUD Grant(s) Leveraged Describe
}Additional State Funds Leveraged
~Grantee Funds Leveraged
SF 424 Page 1 Version 2.0
$Anticipated Program Income Other (Describe)
Total Funds Leveraged for HOME-based Project(s)
Housing Opportunities for People with AIDS
HOPWA Project Titles
HOPWA Grant Amount
;Additional Federal Funds Leveraged
$Locally Leveraged Funds
SAnticipated Program Income
Total Funds Leveraged for HOPWA-based Project(s)
14.241 HOPWA
IDescription of Areas Affected by HOPWA Project(s)
~$Additional HUD Grant(s)LeveragedlDescribe
$Additional State Funds Leveraged
$Grantee Funds Leveraged
Other (Describe)
Emergency Shelter Grants Program 14.231 ESG
ESG Project Titles Description of Areas Affected by ESG Project(s)
;ESG Grant Amount ~$Additional HUD Grant(s) Leveraged Describe
/;Additional Federal Funds Leveraged ;Additional State Funds Leveraged
SLocally Leveraged Funds ;Grantee Funds Leveraged
,~Anticipated Program Income Other (Describe)
Total Funds Leveraged for ESG-based Project(s)
Congressional Districts of:
Applicant Districts 14th I Project Districts 14th
Is the applicant delinquent on any federal debt? If
"Yes" please include an additional document
explaining the situation.
[] Yes [] No
Is application subject to review by state Executive Order
12372 Process?
[] Yes This application was made available to the
state EO 12372 process for review on DATE
[] No Program is not covered by EO 12372
[] N/A Program has not been selected by the state
for review
3erson to be contacted regarding this application
--irst Name: Eloiza Middle Initial Last Name: Murillo-Garcia
Title: CDBG Coordinator Phone: 650-.329-2428 Fax: 650-329-2] 54
,=Mail:Grantee Website:Other Contact: Cathy Siegel
_=loiza.murillogarcia@cityofpalo www.cJtyo~’]oa]oa]to.o]’g (650) 329-2108
alto.org Cathy.siegel@cityofpaloalto.org
Signature of Authorized Representative Date Signed
SF 424 Page 2 Version 2.0
APPENDIX B
Certifications
,CPMP Non-State Grantee
Certifications
Many elements of this document may be completed
electronically, however a signature must be manually applied and the
document must be submitted in paper form to the Field Office.
[] This certification does not apply.
[] This certification is applicable.
NON-STATE GOVERNHENT CERTZFICATIONS
In accordance with the applicable statutes and the regulations governing the
consolidated plan regulations, the jurisdiction certifies that:
Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which
means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take
appropriate actions to overcome the effects of any impediments identified through that analysis, and
maintain records reflecting that analysis and actions in this regard.
Anti-displacement and Relocation Plan -- It will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential
antidisplacement and relocation assistance plan required under section 104(d) of the Housing and
Community Development Act of 1974, as amended, in connection with any activity assisted with funding
under the CDBG or HOME programs.
Drug Free Workplace -- It will or will continue to provide a drug-free workplace by:
1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited in the grantee’s workplace and specifying
the actions that will be taken against employees for violation of such prohibition;
2.Establishing an ongoing drug-free awareness program to inform employees about -
a.The dangers of drug abuse in the workplace;
b.The grantee’s policy of maintaining a drug-free workplace;
c.Any available drug counseling, rehabilitation, and employee assistance programs; and
d.The penalties that may be imposed upon employees for drug abuse violations occurring in the
workplace;
3.Making it a requirement that each employee to be engaged in the performance of the grant be given
a copy of the statement required by paragraph 1;
4.Notifying the employee in the statement required by paragraph 1 that, as a condition of employment
under the grant, the employee will -
a. Abide by the terms of the statement; and
b.Notify the employer in writing of his or her conviction for a violation of a criminal drug statute
occurring in the workplace no later than five calendar days after such conviction;
5.Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph
4(b) from an employee or other-wise receiving actual notice of such conviction. Employers of
convicted employees must provide notice, including position title, to evew grant officer or other
designee on whose grant activity the convicted employee was working, unless the Federal agency has
designated a central point for the receipt of such notices. Notice shall include the identification
number(s) of each affected grant;
6.Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph
4(b), with respect to any employee who is so convicted -
a. Taking appropriate personnel action against such an employee, up to and including termination,
consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
b.Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation
program approved for such purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency;
7.Making a good faith effort to continue to maintain a drug-free workplace through implementation of
paragraphs 1, 2, 3, 4, 5 and 6.
CPMP Non-State Grantee Certifications :1 Version 2,0
%1o Alto
Anti-Lobbying -- To the best of the jurisdiction’s knowledge and belief:
8. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any
person for influencing or attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress
in connection with the awarding of any Federal contract, the making of any Federal grant, the making
of any Federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement;
9.If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection
with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with
its instructions; and
10.It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be
included in the award documents for all subawards at all tiers (including subcontracts, subgrants,
and contracts under grants, loans, and cooperative agreements) and that all
subrecipients shall certify and disclose accordingly.
Authority of ]urisdi~-’tion -- The consolidated plan is authorized under State and local law (as applicable)
and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding,
in accordance with applicable HUD regulations.
Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA
funds are consistent with the strategic plan.
Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and
implementing regulations at 24 CFR Part 135.
Signature/Authorized Official
Frank Benest
Name
City Manager
Title
250 Hamilton Avenue
Address
Palo Alto, CA 94301
City/State/Zi p
[ 6so-329-2s63
Telephone Number
Date
CPMP Non-State Grantee Certifications 2 Version 2.0
Palo Alto
I--1 This certification does not apply,
[] This certification is applicable.
Specific CDBG Certifications
The Entitlement Community certifies that:
Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that
satisfies the requirements of 24 CFR 91.105.
Community Development Plan -- Its consolidated housing and community development plan identifies
community development and housing needs and specifies both short-term and long-term community
development objectives that provide decent housing, expand economic opportunities primarily for persons
of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570)
Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability
Strategy) that has been approved by HUD.
Use of Funds -- It has complied with the following criteria:
11.Maximum Feasible Priority - With respect to activities expected to be assisted with CDBG funds, it
certifies that it has developed its Action Plan so as to give maximum feasible priority to activities
which benefit low and moderate income families or aid in the prevention or elimination of slums or
blight. The Action Plan may also include activities which the grantee certifies are designed to meet
other community development needs having a particular urgency because existing conditions pose a
serious and immediate threat to the health or welfare of the community, and other financial resources
are not available);
12.Overall Benefit - The aggregate use of CDBG funds including section 108 guaranteed loans during
program year(s) 2008, 2__, 2__, (a period specified by the grantee consisting of one, two, or three
specific consecutive program years), shall principally benefit persons of low and moderate income in a
manner that ensures that at least 70 percent of the amount is expended for activities that benefit
such persons during the designated period;
Special Assessments - It will not attempt to recover any capital costs of public improvements assisted
with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against
properties owned and occupied by persons of low and moderate income, including any fee charged or
assessment made as a condition of obtaining access to such public improvements.
However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the
capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue
sources, an assessment or charge may be made against the property with respect to the public
improvements financed by a source other than CDBG funds.
The jurisdiction will not attempt to recover any capital costs of public improvements assisted with
CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or
assessment attributable to the capital costs of public improvements financed from other revenue
sources. In this case, an assessment or charge may be made against the property with respect to the
public improvements financed by a source other than CDBG funds. Also, in the case of properties
owned and occupied by moderate-income (not low-income) families, an assessment or charge may be
made against the property for public improvements financed by a source other than CDBG funds if the
jurisdiction certifies that it lacks CDBG funds to cover the assessment.
Excessive Force -- It has adopted and is enforcing:
14.A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction
against any individuals engaged in non-violent civil rights demonstrations; and
15.A policy of enforcing applicable State and local laws against physically barring entrance to or exit from
a facility or location which is the subject of such non-violent civil rights demonstrations within its
jurisdiction;
CPHP Non-State Grantee Certifications 3 Version 2.0
Palo Alto
Compliance With Anti-discrimination laws -- The grant will be conducted and administered in
conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC
3601-3619), and implementing regulations.
Lead-Based Paint -- Its activities concerning lead-based paint will comply with the requirements of
part 35, subparts A, B, J, K and R, of title 24;
Compliance with Laws -- It will comply with applicable laws.
Signature/Authorized Official
Frank Benest
Name
City Manager
Title
250 Hamilton Avenue
Address
Palo Alto, CA 94301
City/State/Zip
[ 6so-329-2s63
Telephone Number
Date
CPMP Non-State Grantee Certifications 4 Version 2.0
Palo Alto
[] This certification does not apply.
[] This certification is applicable.
APPENDIX TO CERTIFICATIONS
Instructions Concerning Lobbying and Drug-Free Workplace Requirements
Lobbying Certification
This certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering into
this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for
each such failure.
Drug-Free Workplace Certification
1. By signing and/or submitting this application or grant agreement, the grantee is providing the
certification.
2.The certification is a material representation of fact upon which reliance is placed when the agency
awards the grant. If it is later determined that the grantee knowingly rendered a false certification,
or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other
remedies available to the Federal Government, may take action authorized under the Drug-Free
Workplace Act.
3.Workplaces under grants, for grantees other than individuals, need not be identified on the
certification. If known, they may be identified in the grant application. If the grantee does not identify
the workplaces at the time of application, or upon award, if there is no application, the grantee must
keep the identity of the workplace(s) on file in its office and make the information available for
Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee’s
drug-free workplace requirements.
4.Workplace identifications must include the actual address of buildings (or parts of buildings) or other
sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles
of a mass transit authority or State highway department while in operation, State employees in each
local unemployment office, performers in concert halls or radio stations).
5.If the workplace identified to the agency changes during the performance of the grant, the grantee
shall inform the agency of the change(s), if it previously identified the workplaces in question (see
paragraph three).
6.The grantee may insert in the space provided below the site(s) for the performance of work done in
connection with the specific grant: Place of Performance (Street address, city, county, state, zip code)
Check if there are workplaces on file that are not identified here. The certification with regard to the
drug-free workplace is required by 24 CFR part 21.
Place Name
Palo Alto City Hall
Street
250 Hamilton Ave.
City
Palo Alto
Cou nty
Santa Clara
State Zip
CA 94301
Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free
Workplace common rule apply to this certification. Grantees’ attention is called, in particular, to the
following definitions from these rules: "Controlled substance" means a controlled substance in
Schedules I through V of the Controlled
Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through
1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of
sentence, or both, by any judicial body charged with the responsibility to determine violations of the
Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal
criminal statute involving the manufacture, distribution, dispensing, use, or possession of any
CPMP Non-State Grantee Certifications :L0 Version 2.0
Palo Alto
controlled substance; "Employee" means the employee of a grantee directly engaged in the
performance of work under a grant, including:
a.All "direct charge" employees;
b.all "indirect charge" employees unless their impact or involvement is insignificant to the
performance of the grant; and
c.temporary personnel and consultants who are directly engaged in the performance of work under
the grant and who are on the grantee’s payroll. This definition does not include workers not on
the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement;
consultants or independent contractors not on the grantee’s payroll; or employees of
subrecipients or subcontractors in covered workplaces).
Note that by signing these certifications, certain documents must completed, in use, and on file for
verification. These documents include:
1.Analysis of Impediments to Fair Housing
2.Citizen Participation Plan
3.Anti-displacement and Relocation Plan
Signature/Authorized Official
Frank Benest
Name
City Manager
Title
250 Hamilton Avenue
Address
Palo Alto, CA 94301
C ity/State/Zi p
650-329-2563
Telephone Number
Date
CPMP Non-State Grantee Certifications :11 Version 2.0
APPENDIX C
Proposed Projects
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CPD CONSOLIDATED PLAN
LISTING OF PROPOSED PROJECTS
FY 2008/09
The following is a summary of the fiscal year 2008/2009 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
Agency Address
Location
SR-01025-999
Catholic Charities - Long Term Care Ombudsman Program
Public Services
The program will receive, identify, investigate and resolve
complaints, including violations of personal rights and
allegations of elder abuse for primarily elderly long term care
residents.
05 Public Services (General)
570.201 (e)
320 Elderly
CDBG: $7,800
570.208(a)(2) - Low/Mod Limited Clientele
2625 Zanker Road, Ste. 200
San Jose, CA 95134
Community-wide
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Agency Address
Location
SR-01018-999
Emergency Housing Consortium - Palo Alto HOMES
Public Services
Emergency shelter, transitional housing, and permanent
supportive housing. Palo Alto HOMES has shifted its focus
toward more single adults facing significant barriers to ending
their homelessness, such as severe mental illness, substance
abuse, chronic health conditions and/or physical disabilities.
05 Public Services (General)
570.201 (e)
25 People (General)
CDBG: $7,500
570.208(a)(2) - Low/Mod Limited Clientele
507 Valley Way
Milpitas, CA 95035
Community-wide
-1-
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation 570.201 (e)
Accomplishments 3 Households (General)
Funding Sources CDBG: $17,500
Eligibility 570.208(a)(2)- Low~od Limited Clientele
Location 795 Willow Road, bldg. 323-D
Menlo Park, CA 94025
SR-01076-999
InnVision/Clara-Mateo Alliance - 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)
Project ID
Project Title
Priority
Description
SR-01075-999
InnVisiordClara-Mateo Alliance - Adult/Couples Program
Public Services
Shelter and transitional housing for individuals and couples
who are homeless. Clients include underserved populations
such as homeless persons with disabilities, chronic substance
abusers and severely mentally ill.
05 Public Services (General)HUD Matrix
Code/Title
Citation 570.201 (e)
Accomplishments 75People (General)
Funding Sources CDBG: $17,500
Eligibility 570.208(a)(2) - Low/Mod Limited Clientele
Location 795 Willow Road, Bldg. 323-D
Menlo Park, CA 94025
Project ID SR-01082-999
Project Title InnVision/Urban Ministry - Opportunity Center
Priority Public Services
Description The program provides critical services for homeless Palo Alto
residents. Services include showers, meals, case management
bus passes, health care and counseling.
HUD Matrix 05 Public Services (General)
-2-
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
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
Agency Address
Location
SR-01101-999
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)
26People (General)
CDBG: $7,500
570.208(a)(2) - Low/Mod Limited Clientele
507 Valley Way
Milpitas, CA 95035
Community-wide
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
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, homeless residents of
single room occupancy (SRO) housing. The Barker Hotel and
Alma Place serve the local community by housing people
with a history ofhomelessness and other special needs.
05 Public Services (General)
570.201 (e)
131 People (General)
CDBG: $30,000
570.208(a)(2) - Low/Mod Limited Clientele
439 Emerson Street and 753 Alma Street
Palo Alto, CA 94301
-3-
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Locations
SR-0!079-999
Shelter Network - Services for Homeless Palo Alto Families
and Single Adults
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)
570.201 (e)
54 People (General)
CDBG: $8,500
570.208(a)(2) - Low/Mod Limited Clientele
260 Van Buren Road
Menlo Park, CA 94025
325 Villa Terrace
San Mateo, CA 94402
1580-A Maple Street
Redwood City, CA 94063
PLANNING AND ADM1NSTRATION
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation 570.206
Accomplishments N/A
Funding Sources CDBG: $121,429
Eligibility N/A
Location 250 Hamilton Avenue
Palo Alto, CA 94301
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.
2 ! General Program Administration
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Agency Address
Location
TBD
Fair Housing Services - Agency TBD
Planning and Administration
Agency will provide 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 rights.
21D Fair Housing Activities
570.206
15 Households (General)
CDBG: $26,800
N/A
TBD
Community-wide
CAPITAL PROJECTS
Project ID
Project Title
Priority
Description
HUD Matrix
Code/Title
Citation
Accomplishments
Funding Sources
Eligibility
Location
TBD
Palo Alto Housing Corporation- Tree House Project
Housing
The Palo Alto Housing Corporation will develop 30 new units
of affordable housing for low-income households.
01- Acquisition of Real Property
570.201 (a)
30 units
CDBG: $1,538,577
570.208(a)(3) - Low/Mod Housing
488 W. Charleston Road
Palo Alto, CA 94 306
APPENDIX D
Public Hearing Advertisement
AFFIDAVIT OF PUBLICATION
IN THE
PALO ALTO WEEKLY
703 High St., Polo Alto, California 94301
(650) 326~8210
IN THE
SUPERIOR COURT
OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SANTA CLARA
No.
STATE OF CALIFORNIA ~,
SS
COUNTY OF SANT,~ CLARA
I, the undersigned, state that am, and at all times herein mentioned was, a
citizen of the United States of Amenca, over the age of eighteen years, and not
a party to or interested in the above entitled matter, that I was at and during
all said times and s~ill am the principal clerk of the publisher of the Polo Alto
Weekly, a newspaper of general circulation published weekly in the city o~ Polo
Alto in said County of Santa Clara, State of California; that said is and was at
all times herein mentioned a newspaper of general Circulation as that term is
defined by Section 6008 ol the Government Code of the State of California;
that said was adjudged as such by Superior Court of the County of Santa
Clara, State of California, under date of November 2, 1982, Case Number
P41989; thaf the notice of which the annexed ~s a true printed copy, was
set ~n type not smaller than nonpareil and was preceded with words printed
in black-face type not smaller than nonpareil, describing and expressing in
general terms, the purport and character of the notice intended to be given;
that said notice was published and prinfed in said newspaper on the following
dates, to wit:
i ’-{ "~ ~--’ ~
Date of first publication in the Polo Alto Weekly
I declare under penalty of perjury that the foregoing is true and correct.
Executed on
at Polo Alto, California.
This is to notify the general public and other interested parties
that a 30-day public review period for the draft Annual Action
Plan of Palo Alto’s adopted Consolidated Plan will begin on
March 25, 2008 and end on April 25, 2008. The draft Annual
Action Plan describes the activities the City plans to fund
under the 2008/2009 Community Development Block Grant
(CDBG) Program. These activities are intended to meet
Palo Alto’s affordable housing and community development
objectives described in the Consolidated Plan for the period
2005-2010.
Copies of the draft Action Plan will be available on March
25, 2008 at the Department of Planning and Community
Environment, 250 Hamilton Avenue, 5th Floor, Palo Alto, CA
94301, on the City’s website at http://www.cit’,/ofpaloalto.
org/knowzone/agendas/cdbg or by calling Eloiza Murillo-
Garcia, CDBG Coordinator, at 650-329-2428. Interested
parties are encouraged to submit written comments on
the proposed draft Action Plan during the public review
period, or to comment at the public hearings and meetings
described below.
The City Council will allocate a total of $1,313,016 in CDBG
funding. The amount of the annual CDBG entitlement grant
is $676,148, $196,617 is available from program income
received in previous years or anticipated in fiscal year
2008/2009, and $440,341 is available for reallocation to
new activities from CDBG funds received in previous years.
All of the proposed activities are consistent with the CDBG
program’s national objective of giving priority to activities
which benefit low and very-low income persons. The funds
will be used to fulfill the priority needs in the Consolidated
Plan.
The City of Palo Alto Finance Committee will hold a
Public Hearing on April 1,2008 to review the proposed
2008/2009 CDBG funding allocations (one-year Action
Plan) as recommended by City staff and the CDBG Citizens
Advisory Committee. The Public Hearing will be held at
7:00 p.m., or as soon as possible thereafter, in City Hall,
Council Chambers, 250 Hamilton Avenue, Palo Alto.
The Palo Alto City Council will hold a Public Hearing
on May 5, 2008 to adopt the 2008/2009 CDBG funding
allocations (one year Action Plan). The Public Hearing will
be held at 7:00 p.m., or as soon as possible thereafter, in
City Hall, Council Chambers, 250 Hamilton Avenue, Palo
Alto.
ADA. The City of Palo Alto does not discriminate against
individuals with disabilities. To request accommodations to
access City facilities, services or programs, to participate
at public meetings, or to learn more about the City’s
compliance with the Americans with Disabilities Act of
1990 (ADA), please contact the City’s ADA Coordinator at
~n qoa o.q-~,q/,,nip~ nr h\/~-rnailino ada@citvof~atoalto.
APPENDIX E
Project Location Map
FY 2008 - 2009
CDBG Projects
Location map