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HomeMy WebLinkAboutStaff Report 459-08City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE:DECEMBER 8, 2008 CMR: 459:08 SUBJECT:Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant (CDBG)Program for Fiscal Year 2007/08 This is an informational report and no Council action is required. BACKGROUND The preparation and submittal of a Consolidated Annual Performance and Evaluation Report (CAPER) is a requirement of the U.S. Department of Housing and Urban Development for the receipt of Federal Community Development Block Grant (CDBG) funds. The attached document was submitted to HUD on September 29, 2008, following the required 15-day public review period. It is being provided to the Council for informational purposes only. DISCUSSION The CAPER provides a summary of the funding resources available and the programmatic accomplishments in affordable housing and community development activities during the 2007/08 fiscal year. It evaluates the actions taken during the year to implement the strategies and objectives described in the Consolidated Plan for the period July 1, 2005 to June 30, 2010, and the progress made in addressing identified priority needs. Summary of Accomplishments In FY 2007/2008, CDBG funds were used to fund two projects at Stevenson House, a senior housing complex located at 455 E. Charleston Road, and one project at Lytton Gardens, located at 437 Webster. Stevenson House’s fire alaIan system was completely upgraded, and the windows and doors were replaced in one of the residential buildings as well as the common areas. Lytton Gardens received funding to upgrade the bathroom countertops on one floor of their health care center. All of the public service activities were carried out as anticipated. CDBG funds were used principally for agencies providing services to homeless, very-low income or ~lderly persons. Agencies funded included EHC Lifebuilders, Urban Ministry/InnVision, and the Palo Alto CMR: 459:08 Page 1 of 2 Housing Corporation. The CDBG funds significantly expanded their service and shelter opportunities for homeless persons and those at-risk of homelessness. Project Sentinel was funded to provide fair housing advocacy and complaint investigation services for those in Palo Alto who believed they had experienced discriminatory treatment in housing matters. RESOURCE IMPACT The total investment of CDBG funds in Palo Ako during fiscal year 2007/08 was $678,840. Of that amount, $121,000 went toward public service activities, $151,336 went toward fair housing and administration activities and .$406,504 was expended on housing and other capital improvement projects. PREPARED BY:~ ~ CATHERINE SIEGEL,Advance~la’nning Manager DEPARTMENT REVIEW: CURTIS WILLIAMS, Interim Director Planning and Community Environment CITY MANAGER APPROVAL: ATTACHMENTS Attachment A: 2007/08 CAPER CDBG Citizens Advisory Committee Palo Alto Human Relations Commission Catholic Charities Clara-Mateo Alliance/InnVision Community Housing Alliance EHC Lifebuilders Lytton Gardens Palo Alto Housing Corporation Project Sentinel Shelter Network Stevenson House Urban Ministry/InnVision CMR: 459:08 Page 2 of 2 ATTACHMENT A CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) July 1, 2007 through June 30, 2008 CITY OF PALO ALTO CALIFORNIA Prepared By: Department of Planning and Community Environment Public Review and Comment Period: September 3 - 18, 2008 For Submittal to HUD: September 29, 2008 For information, contact: Eloiza Murillo-Garcia, CDBG Coordinator (650) 329-2428, or Catherine Siegel, Advance Planning Manager (650) 329-2108 TABLE OF CONTENTS PART I. INTRODUCTION .........................................................................................................1 A. Description of Report .................................................................................................................2 B. Description of Public Review Process ...................................................................................2-3 C. Overview of Identified Needs and Priorities ..............................................................................3 PART II. AFFORDABLE HOUSING .......................................................................................4 A. Resources .................................................................................................................................5 1. Resources Available within the City of Palo Alto .........................................................5 a. Community Development Block Grant (CDBG) Funds .....................................5 b. Local Housing Funds .....................................................................................5-6 c. HOME Investment Partnership Act Funds ..........................................................6 d. Multi-family Housing Program (MHP) Funds .....................................................6 e. Redevelopment Funds ........................................................................................6 f. PuNic Housing ...................................................................................................6 2. Other Resources Obtained by Nonprofits and Others ....................................................7 a.HUD Section 8 - Moderate Rehabilitation Program .........................................7 b.HUD Section 8 - Shelter Plus Care ...................................................................7 c.HUD Project-Based Section 8 .........................................................................7 d.HUD Housing Choice Section 8 Rental Assistance ...........................................7 The Housing Authority of the County of Santa Clara Section 8 Housing Choice Vouchers Issued (TalSle) .... , ............................................... 8 B. Accomplishments .......................: ..............................................................................................9 1. Programmatic Accomplishments ....................................................................................9 a. Rehabilitation of Existing Rental Housing ...........................................9 Stevenson House b. Below Market Rate (BMR) Ownership and Rental Programs ...................9-10 c. Rehabilitation of Existing Owner Occupied Single Family Homes ..................10 2. Persons and Househdlds Assisted with Housing ..........................................................10 Summary of Housing Accomplishments (HUD Table 1 A) ...................................11-12 C. Assessment of Performance ...................................................................................................12 1. Evaluation of Progress in Meeting 2007/08 Goals .......’ ...................................12-13 2. Barriers to Fulfilling Housing Strategies ......................................................................14 a. Federal or State Barriers ..............................................................................14-15 b. Barriers Related to Local Housing Market Conditions .....................................15 c. Discussion of Most Serious Barriers ...........................................................15-16 3. Actions to Address Obstacles to Maintain Affordable Housing ...................................16 a Housing Trust Fund .............................................................................................16 4. Adjustments or Improvements to Affordable Housing Strategies ................................17 a. Public Policies .............................................................................................17-18 b. Development Impact Fees for Housing .............................................................18 PART III: COMMUNITY DEVELOPMENT .........................................................................19 A. Resources Available ...............................................................................................................20 1. City of Palo Alto Non-Housing Community Development Resources .........................20 a. Federal Funds ....................................................................................................20 b. Local Funds .................................................................................................20-21 c. Leveraging .........................................................................................................21 B. Accomplishments .....................................................¯ ..............................................................21 1. Summary of Accomplishments with CDBG Funds .....................................................21 a. Public F.acility Rehabilitation ...........................................................................21 b. New Public Facility .....................................................................................21-22 c. Public Services ............................................................................................22-23 2. Summary of Community Development Accomplishments (HUD Table 3-1) ......23-25 3. Summary of Accomplishments, Palo Alto General Fund Money ................................25 4. Summary of Accomplishments with Hamilton Public Benefit Funds ..........................25 5. Actions Taken to Affirmatively Further Fair Housing ............................................25-28 6. Actions Taken to Address Needs of Homeless Persons ...............................................28 a. Shelter Plus Care (SPC) ....................................................................................28 b. Community Working Group .............................................................................28 c. Employment Opportunities ...............................................................................29 d. Homeless Services 29-30 7, Antipoverty Strategy .....................................................................................................30 8. Other Actions ................................................................................................................30 a. Lead Based Paint Hazard Reduction .................................................................30 b. Intergovemmental Cooperation ...................................................................30-31 c. Actions to Ensure CDBG Compliance ’...31 9. Changes to Annual Action Plan ....................................................................................31 C. Assessment of Performance ...................................................................................................31 1. Evaluation of Progress in Meeting Annual Community Development Goals .......31-36 2. Barriers to Fulfilling Strategies .....................................................................................36 3. Adjustments to Community Development Strategies ...................................................36 4. Performance Measurement System Status ....................................................................36 PART IV: APPENDIX ...............................................................................................................37 A.Copy of Public Review Notice for CAPER B.Summary of Funding Priorities C.Grantee Performance Financial Report for Fiscal Year 2007/08 INTRODUCTION PART L INTRODUCTION A. Description of Report The U. S. Department of Housing and Urban Development (HUD) has created a grants management and reporting system to implement the concept of consolidated planning. The consolidated planning system is intended to relate and link identified needs within a community to the federal and local resources available to meet those needs, and to strengthen partnerships among all levels of government and the private sector. The annual reporting portion of this system is known as the Consolidated Annual Performance and Evaluation Report (CAPER). Preparation and submittal of the CAPER is a condition for the City (and nonprofit organizations within the City) to apply for federal community development and housing assistance funds such as Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) funds. The CAPER provides a summary of the resources available and the programmatic accomplishments in affordable housing and community development during the 2007/08 fiscal year. It evaluates the actions taken during the past year to implement the strategies and objectives described in Palo Alto’s Action Plan for the period July 1,2007 to June 30, 2008, and the progress made during the past year in addressing priority needs and objectives identified in the Consolidated Plan for the period July 1, 2005 to June 30, 2010. In October 2006, HUD modified its Consolidated Planning 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 CDBO funding at the local level. This new system also helps quantify and measure program outcomes in order to determine how well programs and activities are meeting established needs and goals. This CAPER reports on program progress for the identified objectives and outcomes for each of the activities undertaken. Bo Description of Public Review Process A notice regarding the availability of the draft CAPER was mailed to interested organizations and persons. Copies of the CAPER were made available at City Hall. A notice infomaing the public of the availability of the CAPER was published in the Palo Alto Weekly on Wednesday September 3, 2008. The notice was also displayed on the City’s website during the public review period. A copy of that notice is appended to this report (Appendix A). The draft CAPER was available for public re.view and comment for a 15-day period, beginning Wednesday, September 3,200.8 and concluding at 5:00 p.m. on Thursday September 18, 2008. Copies of the draft report were available at the Planning Department reception desk, the Development Center, and on the City’s CDBG website. There were no comments received by the City. C. Overview of Identified Needs and Funding Priorities Palo Alto’s housing and community development needs were identified in the Consolidated Plan for the period July 1, 2005 to June 30, 2010. Not surprising, the provision of affordable rental housing units was identified as the most critical need in Palo Alto. This includes the provision of housing affordable to persons who are homeless, or at-risk of homelessness, and persons with special needs such as the frail elderly, developmentally disabled, physically disabled, or persons with severe mental illnesses. While all types of housing are needed in the City, the Consolidated Plan objectives focus on the creation and preservation of rental housing. Permanent housing for families with children, homeless individuals and those "at risk" of becoming homeless, persons with special needs, a~d elderly persons are the highest priorities identified in the Consolidated Plan. While the creation of additional new units of affordable housing is the most desirable option, the preservation of existing subsidized units that are at-risk of converting to market rate units is als0 a high priority need. Non-housing community development needs in Palo Alto include public services and public facilities and improvements. Public service needs include supportive services and employment opportunities for lower income, at-risk, homeless, or disabled populations. There is also a need to expand, modernize, rehabilitate, and make accessibility improvements to existing public facilities serving the same populations. See Appendix B for a summary of the 2005-2010 Consolidated Plan Goals and Objectives. Of the total 2007/08 CDBG allocation of $800,524, 66 percent was allocated to housing activities, 15 percent toward public services, and 19 percent for fair housing and program administration. PART II. AFFORDABLE HOUSING PART II. AFFORDABLE HOUSING A. Resources 1. Resources Available within the City of Palo Alto a. Community Development Block Grant (CDBG) Funds In fiscal year 2007/08, the City of Palo Alto allocated a total of $800,524 in federal Community Development Block Grant (CDBG) funds. This amount represents an entitlement allocation of $712,032 from HUD, $45,000 in anticipated program income, $32,617 in excess program income received in prior years, and $10,875 in funds reallocated from other activities. Of the total CDBG allocation, $528,188 or 66 percent was allocated to housing-related projects. b. Local Housing Funds The City of Palo Alto maintains a local housing trust fund that has two sub-funds: the "Commercial Housing Fund" fund and the "Residential Housing Fund" fund. These are the only local sources of funding and subsidies for affordable housing within the City. They are used to provide matching funds, to pay for expenses which exceed HUD cost limits, to fund the cost of features and amenities ineligible under federal housing programs, for pre-development expenses, feasibility studies, site acquisition and similar pro’poses. Commercial Housing Fund: Palo Alto requires commercial and industrial development projects to pay a housing mitigation fee under Chapter 16.47 of the Municipal Code. The fees are deposited in the Commercia! Housing Fund, and the accumulated fees and interest earned on the fund are made available only for the creation of new low and moderate-income housing units under the "Affordable Housing Fund Guidelines" adopted by the City Council. The Commercial Fund has an available balance of approximately $2,800,000 as of June 30, 2008. Residential Housing Fund: Pursuant to Program H-36 (the Below Market Rate Program) of the City’s adopted Housing Element, Palo Alto collects housing in-lieu fees from residential developments when it is infeasible to provide below market rate units on-site. These fees, along with interest earnings of the Fund and other miscellaneous revenues related to housing, are placed in a special fund - the Residential Housing Fund. This fund, per adopted City policy, is used mainly to provide funding for acquisition or rehabilitation of low and moderate-income housing, but may also be used for assistance to new housing construction projects. The Residential Fund has an available balance of approximately $2,900,000 as of June 30, 2008. c. Home Investment Partnership Act (HOME) Funds The City of Palo Alto is not an entitlement jurisdiction for the federal HOME program. The City is only eligible to apply for HOME funds through the State of California HOME program. No applications were submitted in fiscal year 2007/08. d. Multifamily Housing Program (MHP) Funds The Multifamily Housing Program (MHP) was created in 2002 as a result of the passage of Proposition 46. Additional funding has been provided by Proposition 1C which passed in 2005. MHP provides low interest loans to developers of affordable housing as well as funding for new and existing local housing trust funds. A local housing trust fund is a public or private partnership created to receive on-going reventies for affordable housing production. The City of Palo Alto applied for and received a grant from the State in February 2004. The City’s $1,000,000 award has been committed to the Alma Street Affordable Housing project sponsored by Eden Housing and Community Housing Alliance. The project will provide about 50 very low and extremely low income rental apartments for families. e. Redevelopment Funds The City Council approved an ordinance on July 9, 2001 to establish a redevelopment agency for the City of Palo Alto. To date, the City has not established a Redevelopment Project Area and no redevelopment funds have been created. f. Public Housing There are no units of public housing in Palo Alto. 2. Other Resources Obtained by Nonprofits and Others a. HUD Section 8 - Moderate Rehabilitation Program - 35 Units Palo Alto Housing Corporation (PAHC) owns and manages a number of apartment buildings where a portion of the units have rents subsidized under the old Section 8 Moderate Rehabilitation program. The Section 8 - Moderate Rehabilitation Program currently provides rental assistance for 35 PAHC units. The Moderate Rehabilitation units are distributed as follows: Curtner Apartments, 9 units; Emerson South Apartments, 5 units; and Oak Manor Townhouses, 23 units. There are 8 units under contract through the Project-based Section 8 rental assistance program. These units are located at Emerson North Apartments (1 unit), Emerson South Apartments (1 unit), Ferne Apartments (1 unit); Ventura Apartments (2 units), and Waldo Apartments (3 units). The contracts were originally written for terms of 5 to 15 years, but have all expired and are now renewed on an annual basis. b. HUD Section 8 - Shelter Plus Care - 7 Units During fiscal year 2007/08, the Housing Authority of the County of Santa Clara provided 7 units of Shelter Plus Care rental assistance vouchers for previously homeless persons participating in ~he County’s Shelter Plus Care (SPC) program. Seven units are available at the single room occupancy, Barker Hotel, 10 units are available at Alma Place Apartments, one unit is available at the Waldo Apartments. During the period July 1, 2007 to June 30, 2008, seven previously homeless individuals were provided with housing through the program. All seven of the program beneficiaries were very low or extremely low income. Please see a more complete discussion of the Shelter Plus Care Program in the Community Deve!opment Section of this report. c. HUD Proiect-Based Section 8 - 52 Units , The Housing Authority of the County of Santa Clara administers the Section 8 Rental Assistance Program for the City of Palo Alto. There are currently 52 units of project based Section 8 rental assistance available in Palo Alto. PAHC has eight units (Emerson North, 1; Emerson South, 1; Ferne, 1; Ventura, 2; Waldo, 3). Stevenson House has 23 units, and the newly constructed and occupied Opportunity Center has 21 Section 8 units. All project based vouchers are renewed annually by HUD. d. HUD Housing Choice Section 8 Rental Assistance- 210 Units There were 210 households in Palo Alto that received tenant-based Section 8 rental assistance vouchers in fiscal year 2007/08. These vouchers are provided to qualified persons who may use " the vouchers at any rental site in the County that has been approved by the Housing Authority. There ate currently 838 households with Palo Alto addresses on the Housing Authority’s waiting list for Section 8 Housing Choice vouchers. Of the 838 households, 211 are disabled, 177 are elderly, 66 are both disabled and elderly, and 384 are non-disabled/non-elderly. In total, 304 households were assisted with Section 8 rental assistance vouchers in Palo Alto in fiscal year 2007/08. 262 were tenant-based Housing Choice vouchers, 35 were moderate rehabilitation program vouchers, and seven vouchers were provided through the Shelter plus Care program. The following statistics describe the participant characteristics for all of the 304 Section 8 programs in Palo Alto: The Housing Authority of the County of Santa Clara Section 8 Housing Certificates Issued in Palo Alto FY 2007/08 SRO 0 Bedroom 35 Certificate/Voucher Size 1 Bedroom 2 3 Bedrooms Bedrooms 171 64 31 4 Bedrooms 2 Total 304 White 203 Black 41 Distribution by Racial Grou AsianAmerican Indian!Alaskan Native 1 59 Hawaiian/ Pacific Islander Total 304 Hispanic 32 Distribution by Ethnicity Non-Hispanic 272 Total 3O4 Low Income (51- 80% of Median) Distribution by Incom°e Very Low (31- 50% of Extremely Low Median)(Less than 30% of Median) 34 261 Total 304 Elderly Disabled (Non-Elderly) Distribution by Status Elderly and Disabled Non-Elderly/ Non-Disabled Total 152 46 31 75 304 Head of Household Male Female TOTAL 102 202 304 B. Accomplishments 1. Programmatic Accomplishments The City of Palo Alto, by itself, and in conjunction with nonprofit housing developers, undertook the following activities to meet its priorities for affordable housing development and assistance as stated in the FY 2007/08 Annual Action Plan of the Consolidated Plan. a. Rehabilitation of Existing Rental Housin~ Stevenson House Location: 455 E. Charleston Road, Palo Alto Palo Alto Senior Housing Project, Inc. had two CDBG funding awards in 2006/07. Both awards were for rehabilitation projects at Stevenson House, a 120 unit affordable housing complex occupied by 135 low income seniors. The first award was in the amount of $47,646 to replace and upgrade the fire alarm system and bring it up to current fire code regulations. The second award was for $370,000 to replace the sliding glass windows and doors in the common areas and in some of the residential units with double paned glass’to make the buildings more comfortable and energy efficient. The fire alarm project was completed in March 2008 and the windows and doors project was completed in September 2008. Palo Alto Senior Housing Project was also awarded $144,259 in CDBG funds in 2007/08 for the rehabilitation of the interior common area. The scope of work for this project was modified to upgrade the radiant heating system at Stevenson House because it was a more urgent matter than the interior renovation. Stevenson ,House has gone out to bid for the project and it is anticipated that work will begin in October .2008. b. Below Market Rate (BMR) Ownership & Rental Programs The oldest BMR units were built in 1975 and the typical development includes from one to four BMR units. Fifty percent of the inventor?, was built in the 1980’s and thirty-four percent were built between 1975 and 1979. The City and Palo Alto Housing Corporation initially became aware of the problems facing BMR owners in condominium projects facing large special assessments for capital repairs in February 2001. On September 9, 2002, the City Council established a BMR program emergency fi_md as an ongoing permanent program to prevent the loss of BMR units and provide emergency loans for BMR unit owners forsubstantial mandatory assessments. The program is also aimed to preserve BMR unit housing stock by preventing loss through foreclosure or through the resale process. The Council approved loan program criteria and loan terms and appropriated $150,000 from the Residential Housing fund to the BMR Emergency Fund A loan program was developed to address these issues and is available on an as-needed basis. The current balance of the BMR Emergency Fund is approximately $350,000. There are two types of BMR units, home ownership and rental units. The status of each of the 9 types of units is described below. BMR Home Ownership Units. The Below Market Rate Program is a City program in the Comprehensive Plan (Program H-36) which requires developers of market rate housing to provide a certain number of units within each residential project at affordable prices to moderate income.buyers (usually 15% of the total units). The BMR units are sold to households on a waiting list with 59-year deed restrictions on use, occupancy and the resale price. As of June 30, 2008, there were 225 units in the ownership program inventory. There are an additional 59 units under development that will be available for purchase in fiscal years 2008/09 and 2009/10. BMR Rental Units. This is the rental-housing component of the City’s BMR inclusionary housing program. There are 155 BMR rental units in multi-family rental developments in Palo Alto. These units are rented at below market rents to very low and low-income eligible households. The specific income eligibility varies from project to project; however, the City’s current guidelines target the rental program to households between 40% and 70% of the County Median Income. The initial 63 units of BMR rental housing in the 628-unit Stanford West Apartments on Sand Hill Road were occupied in 2000-01; 42 additional units were occupied during fiscal year 2004/05: An additional 51 BMR rental units will be added by 2015. Employees of Stanford University, and persons working for businesses located on Stanford owned lands, have priority for occupancy at the Stanford West project because the housing has been developed and is owned by Stanford. It is not intended as student housing. There are an additional 18 units that will be available in the near future. c. " Rehabilitation of Existin~ Owner.Occupied Single Family Homes The City may provide CDBG funds to very low-income owners for home repairs in cases where there is an urgent need for City financial assistance due to serious health or safety problems. During the year, there were no applications for this program. 2. Persons and Households Assisted with Housing The attached Table 1A shows 0 households assisted with rental housing during the period covered by this report. Housing projects are multi-year in nature, and although there were no units created during the 07/08 fiscal year, there are two new affordable housing projects in the early stages of development. The Alma Street Affordable Housing Development project is expected to add approximately 101 units of affordable family and senior housing and PAHC’s Tree House project is expected to create an additional 35 traits of affordable housing. Not included are units assisted with Shelter Plus Care, counseling services, or homeless persons or households who receive overnight shelter. These activities are discussed in Part III of this report. Summary of Housing Accomplishments (HUD Table 1A) Name of Grantee: City of Palo Alto State: CA Program Year: 2007/08 Renters Priority Need Category 0 - 30% of Median Family Income (MFI) * 31 -50% of MFI 51 - 80% of MFI Total Owners 0- 30% of MFI 31 - 50% of MFI 51- 80% of MFI Total Homeless ** Individuals (units) Families Total Non-Homeless Special Needs Total Total Housing Total 215 Housing ActuM Units o 0 TOTAL HOUSING White Black/African American Asian American Indian/Alaska Native Native Hawaiian/Other Pacific Islander Black/African American and White Asian and White TOTAL HOUSING American Indian/Alaska Native and White American Indian/Alaska Native and Black/African American Balance/Other Total Race TOTAL HOUSING Hispanic Total Ethnicity *As annually adjusted by HUD **Homeless families and individuals assisted with transitional and permanent housing Co Assessment of Performance 1. Evaluation of Progress in Meeting Annual (2007/08) Goals The following housing goals were identified in the 2005-2010 Consolidated Plan. Accomplishments in meeting the goals for the 2007/08 fiscal year are also listed. Goal # 1: Increase the Supply of Affordable Rental Housing by 125 units 2007/08 Activities: ’ PAHC Tree House 488 W. Charleston Road Palo Alto, CA 94306 Alma Street Affordable Housing Development 801,841,853 and 875 Ahna Street Palo Alto, CA 94301 2007 Accomplishment: Predevelopment activities Goal #2: Preserve the Supply of 72 units of Affordable Rental Housing and Immediate Risk of Conversion to Market-Rate Housing 2007/08 Activity: There were no units at immediate risk of conversion to market-rate housing during this fiscal year. Goal #3: Conserve the Condition of Existing Affordable Rental Housing 2006/07 Activities: Stevenson House - Alarm Project and Window and Door Project 455 E. Charleston Road Palo Alto, CA 94306 2007 Accomplishment: Projects completed in 2008 Lytton Health Care - Sink Renovation Project 437 Webster Street Pato Alto, CA 94301 2007 Accomplishment: Project completed in 2008 Goal #4: Continue the Below Market Rate (BMR) Program 2007/08 Activity: City of Palo Alto BMR Homeownership Program Units are located citywide 2007 Accomplishment: Construction was underway during FY 2007/08 for Echelon (11 BMR units), Classics (10 BMR units) and 899 Charleston (24 BMR units) housing projects. Goal #5: Continue to Participate in the Mortgage Credit Certificate Program 2007/08 Activity: The City of Palo Alto continued to participate in the mortgage credit certificate program. Goal #6: Provide for Rehabilitation Loans to Low- and Moderate-Income Single Family Homeowners in Emergency or Crisis Situations Only 2007/08 Activity: This program was available on an as-needed basis and only if CDBG funding is available. There were no applications submitted for this program during the fiscal year. Goal #7: Provide for Minor Home Repairs and Accessibility Upgrades to Low- and Moderate- Income Homeowners 2007/08 Activity: Avenidas Handyman Services Program Office: 450 Bryant Street Palo Alto, CA 94301 Activity was available citywide. 2007 Accomplishment: 657 jobs were completed The primary affordable housing goal in the 2005-2010 Consolidated Plan is to assist an average of 25 units per year over the five-year period, or a total of 125 units. During the first four years of this five-year period, the City has already provided a total of 99 new units. Housing activities are multi- year in nature and there are a number of new projects in the development stage. The City’s greatest need is affordable housing, and the majority of CDBG and local housing funds have been targeted and expended to preserve or increase the affordable rental housing stock. All of the CDBG funds have been used to carry out activities that benefit low-income persons. 2o ~arr~ers t~ Fulfilling Housing S~ra~eg~es There are many barriers that Palo Alto faces in meeting its affordable housing strategies, most of which are beyond the control of the City. Palo Alto has one of the most expensive housing markets in the country, due in large part to the lack of land suitable for new housing. Most of the City’s development potential consists of in fill on small vacant lots, redevelopment of existing properties, and converse - on of underutilized non-residential lands to higher density residential or mixed-use projects. Other uses, such as churches, and educational facilities, compete for this limited supply of residential land. Between 1996 and 2000 the median price of ownership housing more than doubled in Palo Alto. Average rents were also estimated to have doubled over the same time period. Although there have been dips in the economy, housing prices have continued to rise. Almost all for-sale and most rental properties are still out of reach for all but households with above moderate incomes. In addition, there continues to be a low vacancy rate for rental housing. As of August 2008, the rental vacancy rate in the City was 1.99%. Some of the barriers to building more housing are the result of decisions and priorities set by federal or State governments that must decide how to distribute very limited funding. The policies and priorities set by these agencies often do not favor high cost areas, and most federal housing resources are not readily available to the City of Palo Alto. Some of these barriers include: the lack of congressional appropriations for certain programs; limitations in federal regulations that make some programs very difficult to use in Palo Alto; the lack of appropriate and available housing sites; and a lack of interest or capability on the part of for-profit and non-profit developers in pursuing some federal programs. The principal barriers to fulfilling the City’s affordable housing goals and objectives are discussed below. a. Federal or State Barriers: Changes by the State’s Tax Credit Allocation Committee in the method of determining awards for the competitive federal and State housing tax credits has made it more difficult to obtain tax credit awards for low-income rental housing. There are also very restrictive caps that limit the total amount of tax credit awards within certain counties including Santa Clara County. There is far greater demand in Santa Clara County for the competitive tax credits than the amount allowed under the allocation cap. There are problems of utilizing federal housing programs, such as Section 202 and 811, in areas with high construction and land costs. HUD places limitations on the amount of HUD subsidies, which then result in the need for large local funding contributions to make projects financially feasible. The amount of.federal CDBG funds that the City receives on an entitlement basis from HUD has not kept pace with inflation over the last 15 years. The barrier of not being qualified for HOME funds on an entitlement basis has significantly affected the City’ s capability to encourage and fund affordable housing. Other barriers are: The lack of State or federal funding for the preservation of older, HUD-subsidized and Section 8 assisted rental housing by acquisition by nonprofit housing organizations Reduction in the term of project-based Section 8 contract renewals from the 20oyear contracts of-the 1970’s to the one-year renewals presently authorized by Congress. Limited funding in HUD’s budget for the Section 8 tenant-based assistance program (Section 8 certificates and vouchers administered by local housing authorities) b. Barriers Related to Local Housing Market Conditions: Limited vacant land suitable for housing construction and strong competition from developers of market-rate housing, commercial projects and other uses such as private schools for any available site. ,/Extremely high prices for sites suitable for new housing and for existing residential properties suitable for acquisition and rehabilitation. Limited local funding sources for affordable housing. An extremely low vacancy rate and high housing demand means that even moddst rental units are occupied by households with incomes above the HUD low-income limit. This means that acquisition and/or rehabilitation programs must relocate existing tenants in order to utilize federal funds. Low vacancy rates and high rental rates have made it diffcult for persons to find housing in Palo Alto using tenant-based Section 8 Certificates and Vouchers. c. Discussion of Most Serious Barriers: The most serious barrier is the lack of dependable access to HOME funds. The fact that the City does not qualify as an entitlement jurisdiction for HOME funds is a significant barrier to meeting the City’s housing objectives. The HOME Investment Partnership Act is the principal federal housing program directly available to local governments. The City can only obtain funding on a competitive basis through the State of California’s statewide allocation. The State holds only one competition round each year. Palo Alto is at a disadvantage in the State’s process because of the percentage of ranking points assigned to rural applicants and those from jurisdictions with high poverty rates. The maximum award from the State is $1 million per applicant for projects using 9% Low-Income Housing Tax Credits and up to $3.5 million for projects not using 9% tax credits. While the City and PAHC successfully obtained and implemented a major acquisition and rehabilitation of the 26-unit Barker Hotel SRO with a FY 1992 HOME grant from the State, the City has not been able to access the State’s HOME funds since that time. There are many obstacles that have prevented the City from obtaining HOME funds. The primary obstacles are listed below: Extremely high demand and competition for State HOME funds requires that applications be near perfect to receive funding. ,’/The State’s rating criteria favors rural and Community Housing Development Organizations (CHDO) applicants, and jurisdictions with high rates of poverty. Since Palo Alto does not fit these priorities, the City is at a great disadvantage in the competition. ¢~ There are no qualified CHDOs operating in the Palo Alto area, and the local nonprofit housing developers are not interested in creating CHDOs and pursuing HOME funds directly. ,,/ The State’s once per year application process is too inflexible for use with the kind of major rental housing projects that are usually done in Palo Alto. It is unlikely that project timing and readiness will coincide with the State’s application schedule in a manner that will earn maximum points. ¢"The State’s rating criteria strongly favors applicants with very recent HOME project experience. Another serious barrier is the expiration of project-based Section 8 contracts and insufficient funding from the Federal government for contract renewals. Some of Palo Alto’s largest subsidized housing developments have project-based Section 8 rental assistance contracts which have expired or will expire in the next few years. Most of these projects are owned and operated by nonprofit housing organizations that desire to continue the low-income use under their HUD insured financing and regulatory agreements. Renewal of the Section 8 rental assistance contracts for all these projects is critical in order to preserve affordable rents for tl{e extremely low-income tenants who occupy these units. Many of these projects serve elderly and disabled persons who would find it very difficult to move, and who would unlikely be able to secure comparable housing even if they were provided with a Section 8 voucher. 3. Actions to Address Obstacles to Maintain Affordable Housing or Eliminate Barriers a. Housing Trust Fund When the Santa Clara County Board of Supervisors, Silicon Valley Manufacturing Group, Santa Clara County Collaborative on Housing and Homeless Issues, and the Community Foundation of Silicon Valley founded Santa Clara County Housing Trust Fund, the City of Palo Alto was among the contributors that raised initial seed capital of $20 million in its first two years. The City initially contributed $500,000 from the local Residential Housing Fund. The City has allocated an additional $150,000 to the Trust to be used exclusively for qualifying affordable housing projects located within Palo Alto and has budgeted an additional $100,000 for the Trust in fiscal year 2008/09. The Trust is dedicated to building and sustaining a revolving loan fund and grant-making program that vcill leverage other housing resources throughout Silicon Valley. The Trust’s three emphases are creating more affordable rental housing, first-time homebuyer opportunities and housing for the homeless. Adjustments or Improvements to Affordable Housing Strategies a. Public Policies Housing Element The Housing Element of the Comprehensive Plan is the chief policy document describing the City’s housing needs and the policies and programs the City will use to meet those needs. The current Housing Element was adopted by the City Council on December 2, 2002, and contains strategies to meet the City’s fair share of the region’s market rate and very low, low and moderate income housing needs as defined by the Association of Bay Area Governments (ABAG). For the period 1999 to 2006, the City of Palo Alto’s share of regional housing production goals was 1,397 housing units. The figures in the chart below are through December 2006, any planning entitlements and building permits issued wilt be counted in the 2007 - 2014 housing element period. The following chart shows the City’s total achievements for the period in meeting the required units by income category: ABAG Achievements 1999 - 2006 Income Category Very Low Income (Less than 50% of Median) Low Income (50%-80% of Median) Moderate Income (80%- 120% of Median) Abo’~e Moderate (Over 12% of Median) Total ABAG Allocation 265 116 343 673 1,397 Planning Entitlements 221 142 144 2,018 2,525 Achieved (Permits Issued) 158 130 53 1,372 1,713 Percent.age Achieved 60% 112% 15% 204% 122% On May 15, 2008 ABAG’s Executive Board adopted the final Regional Housing Needs Allocations for all the jurisdictions in the San Francisco Bay Area for the period 2007- 2014. Palo Alto’s total allocation is 2,860 units, to include 690 very low, 543 low, 641 moderate, and 986 above moderate income units. The City’s allocation has increased by approximately 204% over the past period of 1999 to 2006. The increase is based on a new methodology that weights local housing, employment and transit factors as follows: Housing 45%, Employment 45% and Transit 10%. Main policies and programs included in the Housing Element address: ®Increasing the Supply of Land Suitable for Housing ®Using Existing and Planned Residential Lands More Efficiently and Intensively Modifying and Strengthening Existing Policies to Increase the Supply of Affordable Housing Using Legislative Powers to Promote Affordable Housing Reserving 16 sites ~dentified on the Housing Sites Inventory for higher density housing ® Zoning Ordinance Update. In July 2007, the City Council adopted the last of numerous revisions to the City’s Zoning Ordinance bringing to completion the Zoning Ordinance Update, which has been underway for the past seven years. The new Zoning Ordinance implements approximately 100 policies and programs from the Comprehensive Plan designed to facilitate a wide variety of housing types and to encourage residential mixed use development of commercial lands. Three new land uses permitted by the new codes are: Village Residential, Mixed Use, and Pedestriat~/Transit Oriented Development as well as key policies addressing housing, parking, urban design and zoning ordinance format. b. Development Impact Fees for Housing On March 25, 2002, the City Council approved modifications and additions to Impact Fees collected for residential and commercial development projects. The Impact Fees are now comprised of three categories: Housing, Traffic and Community Facilities. The key change in the Housing fee was to increase the fee from $4.21 per square foot to $15.00 per square foot and require that an annual cost of living adjustment be made. The current rate as of May 8, 2008 is~ $17.06 and applies to nonresidential development. The fee rate applies to all net new commercial square footage on a site. Full payment is required at building permit issuance wi~h some exemptions, such as hazardous material storage, churches, colleges and universities, commercial recreation, hospitals and convalescent facilities, private educ.ation facilities, public facilities and private clubs, lodges and fraternal organizations. PART III. COMMUNITY DEVELOPMENT PART COMMUNITY DEVELOPMENT A. Resources Available 1.City of Palo Alto Non-Housing Community Development Resources a. Federal Funds The primary federal resource in the City of Palo Alto for non-housing community development activity is the Community Development Block Grant (CDBG) Program. The City of Palo Alto is an entitlement jurisdiction under the CDBG regulations and receives annual funding on a formula basis. The purpose of the CDBG program is to develop viable urban communities by providing decent housing and a suitable living enviromnent, and by expanding economic opportunities, principally for low and moderate-income persons. The City receives no other direct federal funding for community development projects. As explained earlier in this report, the amount of CDBG funds available for allocation in 2007/08 was $800,524. In fiscal year 2007/08, the City allocated a total of $121,000 to public service activities, and $151,336 to fair housing activities and CDBG program administration. b. Local Funds Human Service Resource Allocation Process (HSRAP) The City of Palo Alto provided $1,235,702 in General Funds’in 2007/08 to address priority human service needs in the community. The funds were allocated through the Human Service Resource Allocation Process (HSRAP), and administeied by the Office of Hmnan Services in the Community Service Department. The projects funded addressed the Human Relations Commission’s priority needs in the following categories: nutrition, childcare, youth!teens, seniors, homeless/low income, disability, information and referral, mediation, domestic violence, and health care. ® Hamilton Public Benefit Program for Senior Services In 1993 the City of Palo Alto entered into an agreement with Hamilton Avenue Properties regarding the public benefit portion of a Planned Community (PC) zone change. The PC a!lowed development of a senior condominium project with 36 residential units. The agreement called for a $500,000 contribution to the City for the establishment of an endowment fund to benefit seniors and senior services, payable in annual installments of $50,000. Additionally, upon resale of all the original units, a fee of 2-1/2% of the sales price of the unit shall also go into the fund. In fiscal year 2001/02, the tenth and final installment of $50,000 was disbursed to Aveni~tas, the local provider of services for seniors. Avenidas began receiving quarterly interest payments in August 2003 as 20 an additional provision of the agreement. Avenidas received a total of $26,470 in interest payments in fiscal year 2007/08. c. Leveraging All of the local non-profit agencies leverage CDBG, HSRAP, and other funding with money from local organizations such as the United Way, corporations, foundations, and individual donors. ~o Accomplishments The City of Palo Alto, by itself, and in conjunction with nonprofit organizations, undertook the following activities to meet its priorities for public facility rehabilitation and assistance as stated in the FY 2007/08 A~mual Action Plan of the Consolidated Plan. 1. Summary of Accomplishments with CDBG Funds A. Public Facility Rehabilitation Lytton Gardens - Health Care Facility Location: 437 Webster Street, Palo Alto Lytton Gardens was awarded $86,575 in 2005/06 CDBG funds for accessibility improvements to the bathroom sinks and countertops in the long-term care section of the health care facility. The Lytton rehabilitation work was to have been managed and completed by Economic and Social Opportunities (ESO). The Lytton project experienced major delays due to ESO’s capacity/financial proble, ms, and their subsequent closure. A new contract with Lytton Gardens was prepared and approved by the City Council in July 2007. Twenty-six bathroom simks and countertops were replaced in Lytton Garden’s health care facility. The new sinks are safer and easier to use for the elderly patients of the facility. The project was completed in August 2008. B. New Public Facility EHC LifeBuilders - Sobrato House Location: 496 South 3rd Street,’San Jose, CA EHC Lifebuilders completed Sobrato House, a new project to house homeless and at-risk youth between the ages of 11 and 24 in April 2008. The project was built to replace the "Our House" youth program that was displaced by the new San Jose City Hall. The City of Palo Alto provided $75,000 in CDBG funds in 2006/07 which funded a portion of the architectural expenses for the project. Total project costs were approximately $12.5 million. Since opening, Sobrato House has served over 114 homeless, at-risk, or runaway youth. There are10 beds of.emergency shelter in 3 bedrooms; 8 beds of transitional housing in two 1-bedroom flats, and two two-bedroom townhouses; and 20 beds of housing for youth participants in the City Year Program in three 2-bedroom townhouses, one 1-be&oom flat, and one 3-bedroom flat. The facility also includes a drop-in center, medical office, computer room, classroom, and laundry facility. EHC staff provides case management, job training, tutoring and an array of other supportive services to assist the young clients. C. Public Services The appended financial expenditure report summarizes the accomplistvnents of each activity funded with Community Development Block Grant funds in 2007/08. The report also specifies the number and race/ethnicity of persons or households who benefited from the activities. Following is a brief recap of the accomplishments of the public service and other community development activities that were completed during the 2007/08 fiscal year with CDBG funds. $25~000 to the Palo Alto Housing Corporation. Provided counseling sessions fo.r very-low income residents of two Single Room Occupancy (SRO) residences, the Barker Hotel and Alma Place (many of whom were previously homeless). $15,000 to Emergency Housing Consortium. Provided homeless persons with supportive services and shelter nights in emergency shelter and transitional housing programs. Also operated a program for housing homeless people with addiction problems. []$26,800 to Project Sentinel. Investigated cases involving allegations of housing discrimination in Palo Alto, and provided outreach and education services. $8~500 to Shelter Network. Provided transitional housing and supportive services to homeless families and individuals in Menlo Park and Redwood City. $35,000 to Im~Vision for the Clara Mateo Alliance Homeless Shelter. $17,500 for the single persons shelter and $17,500 for the family shelter wing in the Veterans Administration facility in Menlo Park. Agency provided shelter and supportive services to homeless individuals and families. $30,000 to InnVision!Urban Ministry_ for the provision of services at their homeless drop-in center located at the Opportunity Center and the Hotel de Zink rotating shelter. []$7,500 to Catholic Charities for the long-term care ombudsman program which provides advocacy for the residents of long-term care facilities within the City ,22 No investments were made in areas of minority concentration. The chart on the following pages reflects the accomplishments and beneficiaries served with 2007/08 CDBG expenditures: Summary of Community Development Accomplishments for Public Facilities and Improvements (HUD Table 3-1) Name of Grantee: Palo Alto State: CA Program Year: 2007/08 Priority Need Category Actual Number of Actual Number of Projects Assisted Projects Completed Public Facilities Senior Centers Handicapped Centers Homeless Centers 1 Youth Centers Neighborhood Facilities Child Care Centers Parks and/or Recreation Facilities Health Facilities Parking Facilities Abused/Neglect Facilities AIDS Facilities Other Public Facilities Public Improvements Solid Waste Improvements Flood Drain Improvements Water Improvements Street Improvements Priority Need Category Actual Number of ActuM Number of Projects Assisted Projects Completed Sidewalk Improvements Sewer Improvements Other Other Actual Number of Persons Served 1,052 Priority Need Category Public Services Senior Services Handicapped Servi ces Youth Services Transportation Services Substance Abuse Services Employment Training Crime Awareness Fair Housing Counseling Tenant/Landlord Counseling Child Care Services Health Services Other Public Services (homeless assistance) Accessibility Needs Other Community Development Energy Efficiency Improvements Lead Based Paint/Hazards Code Enforcement Other 26 13,654 Note: Numbers reflect persons assisted with CDBG funds only 3. Summary of Accomplishments with Palo Alto General Fund Money The City of Palo Alto Human Service .Resource Allocation Process (HSRAP) provided $1,235,702 in General Fund dollars to the following agencies for services to lower income elderly, disabled or special needs residents of Palo Alto during the 2007/08 fiscal year. ¯Abilities United - $42,153. Services for children with disabilities and their families ~Adolescent Counseling Services - $93,100. On-campus counseling programs []Avenidas- $427,670. Senior services []Community Health Awareness - $10,000. Outlet program []Community Technology Alliance - $12,700. Shared technical infrastructure []Downtown Streets Team- $37,700. Downtown Streets Team []La Comida de California - $34,000. Senior nutrition program []MayView Community Health Center - $18,000. Health care for low income, homeless, and uninsured residents ¯Momentum for Mental Health - $27,000. Homeless outreach program []Polo Alto Community Child Care - $433,271. Child care subsidies and outreach []Proiect Sentinel - $66,805. Tenant/landlord counseling and mediation services []Second Harvest Food Bank - $7,503. Groceries for low-income seniors []Senior Adult Legal Assistance - $9,000. Legal assistance for seniors []Youth Community Services (YCS) - $16,800. Community Service Program and Summer Service Program 4. Summary of Accomplishments with Hamilton Public Benefit Funds Quarterly interest payments Supported the Avenidas Volunteer Corp, Avenidas Handyman Services, and Information and Referral Services. The Avenidas Volunteer Corp has several programs, including the Early Literacy Program, the Partners in Caring Program, and Computer Learning Center. In fiscal year 2007/08,473 volunteers provided a total of 21,758 hours of service to the community through this program. The Infornaation and Referral Program provides brief consultations about older adult services including affordable housing, adult day health centers and financial management, The Information and Referral program responded to 1,461 requests for information if fiscal year 2007/08. The Avenidas Handyman Services provides minor home repair services including yard work and minor plumbing, painting, computer repair and electrical jobs. In fiscal year 2007/08, 657 jobs were performed through this program. 5. Actions Taken to Affirmatively Further Fair Housing The City continues to support the purpose and goal of fair housing and contracted with Project Sentinel to promote equal opportunity in housing in fiscal year 2007/078. The contract with Project Sentinel is a collaborative effort with the cities of Gilroy, Mountain View and Sunnyvale. Services included infornaation and referral, community outreach and education, discrimination 25 complaint checking and investigation, legal referrals and assistance in resolving complaints. The City also contracted with Project Sentinel to provide tenant/landlord information, referral and mediation services tl~-ough the HSRAP program. Senior Adult Legal Assistance (SALA) also receives City of Palo Alto General Fm~ds to provide legal assistance to seniors. This service could include housing related assistance to elderly residents. In addition to the services provided under these contracts, the following steps were taken in the 2007/08 fiscal year to affirmatively further fair housing. City staff participated with other Santa Clara County CDBG entitlement jurisdictions and service providers in the Countywide Fair Housing Task Force. The task force includes representatives from entitlement jurisdictions, fair housing providers, legal service providers, and other community service providers. The Office of Human Services continued sponsoring housing information and referral coordination meetings for service providers. The meetings have resulted in increased networking amongst provider agencies and the availability of shared housing wait lists and other information to help low income; elderly, homeless, or disabled clients access affordable housing. The City’s Office of Human Services provided affordable housing information and referral services, and distributed the "Directory of Housing Services and Subsidized Rental Housing in Palo Alto and Surrounding Communities". The City targeted the majority of its CDBG and local housing funds to increasing/ preserving the supply of housing affordable to persons with lower incomes and/or special needs. The City contracted with Project Sentinel to conduct discrimination audits based on familial status and disability. Eight familia! status, one source of income and one age audit were conducted. In the audits, five of the landlords were educated and five were counseled. The City continues to support police officials and community groups in the development of policies and actions to deal with hate crimes. Under its fiscal year 2007/08 contract with the City, Project Sentinel conducted, and collaborated on a number of education community forums and outreach activities relating to discrimination issues, including: Provided community presentations at West Valley Community College, Santa Clara County Domestic Violence Consortium, Charities Housing, IrmVision, Eden Housing, Apartment Owner’s Association, Homesafe, San Jose State University, Silicon Valley Independent Living Center and the New Directions Program at Valley Medical Center. 26 Distributed 1,442 brochures from information booths, community presentations, city hall, real estate offices, local businesses and libraries. English and Spanish language public service announcements were sent to various radio and television stations on a quarterly basis, KBLX, KFOG, KIOI, KKSF, KNEW, KRTY, KSJO, KSZU, KCBS, KFRC, KISQ, KMEL, KOIT, KSAN, KUFX, KCNL, KGO, KITS, KLIV, KNBR, KQKE, KSFO AND KYLD. Conducted 4 tester trainers in Palo and 19 trainings agency-wide to increase the tester pool to 633 testers. []Project Sentinel staff hosted four separate question and answer programs on the radio station KFOG. Wrote a column titled Rent Watch for publications around the Bay Area and California, which appears on a regular weekly and monthly basis. Participating publications include the Palo Alto Weekly, Apartment Management Magazine and the Disabled Dealer. Published quarterly advertisements in the Palo Alto Weekly and E10bservador newspapers Attended quarterly Northern California Fair Housing Coalition meetings. Conducted l 0 fair housing trainings for property owners/management professionals with properties throughout Santa Clara County. Attended the Santa Clara County Fair Housing Task Force meetings Organized a Fair Housing Month Symposium entitldd, "It’s Our Neighborhood: 40 Years of Promoting the Dream". The workshop covered topics such as fair ho, using fundamentals, the foreclosure crisis, immigra{ion, protecting the mentally disabled, and internet advertising. Over 200 people were in attendance, including property managers, city and county employees, service providers, advocates, and the general public. During fiscal year 2007/08, Project Sentinel investigated 16 cases of reported discrimination in Palo Alto. Of the 16 case.s investigated, 13 cases (81%) had a positive outcome (successful conciliation, referred to HUD/attorney, or counseled/assisted), ,two cases (13%) are still pending and one of the complainants (6%) declined to pursue any further action. The 16 cases were in the following categories: Disability 11 Cases 70% Age 1 Case 6% Race 1 Case 6% Familial Status/child I Case 6% National Origin 1 Case 6% Arbitrary 1 Case 6% 16 Cases 100% Actions taken to address the needs of homeless persons a. Shelter Plus Care (SPC) The Shelter Plus Care Program, administered by the Office of the County’s Homeless Coordinator, provides up to ~ve years of project based Section 8 rental assistance.for previously homeless individuals with disabilities. To qualify for the SPC program, applicants must be living on the str.eets, or staying at emergency shelters. Additionally, they must have a diagnosis of one or more of the following diseases: (1) Mental illness; (2) Alcohol or drug addiction; and (3) HIV/AIDS. They must be clean and sober (if their diagnosis is drug or alcohol addiction), and be willing to commit to and follow an individual service plan created with their case manager specifically geared to their individual disability. Extensive support services are a necessary and required component of the program. These supportive services are provided to program participants to allow them to maintain their housing, address and resolve ongoing issues with their particular " disability, and achieve a greater level of self-determination. Alma Place, the 107-unit single room occupancy apartment building on Alma Street, has ten designated SPC units during the reporting period, but only three of the units are occupied. The Barker Hotel, a 26-unit single-room occupancy building in the downtown, has seven designated SPC units, but only three are currently occupied. All six participants were very low income. Overall, the SPC program has been successful at housing people with special needs who might not otherwise be eligible for housing or be able to maintain their,housing. There was one family that participated in the SPC program and was housed at one of the PaloAlto Housing Corporation’s multifamily sites. b. Community Working Group The Community Working Group (CWG) is the sponsor of a comprehensive homeless service center, The Opportunity Center that provides refuge and a range of professionally run services for those who are homeless or otherwise in need of a safety net of social services. The Opportunity Center held its grand opening on September 17, 2006 and the initial rent-up of the facility was completed on December 27, 2006. The Opportunity Center provides personal services - mail delivery, access to a telephone, showers and personal hygiene supplies, laundry facilities, help finding food and shelter, and a supportive environment. Case managers are available to assist people in obtaining appropriate job skills, housing, and medical and mental health assistance. 28 The service center is located on the ground floor of a 4-story building that also has 88 units of affordable transitional and permanent housing for singles, couples and families with children. The building design allows for different populations to coexist in the same area. Employment Opportunities The homeless worker was not active during fiscal year 2007/08, however it will resume in March of 2009. Selected workers will be provided with food vouchers, a voucher for clothing from the local Goodwill, and bus passes. Workers will also receive assistance with resumes and skills training. d. Homeless Services In total, the City provided $212,703 in direct funding for the following services targeted to benefit persons who are very low income or homeless: Urban Ministry - $30,000 in CDBG funds for a prepared meal program, a grocery distribution program for low- income persons, drop-in center and emergency shelter. Emergency Housing Consortium - $15,000 in CDBG funds for emergency shelter and- supportive services provided by the Sunnyvale Armory, the Gilroy Armory, and the Reception Center and housing for the homeless with addiction issues. Palo Alto Housing Corporation - Downtown SRO Hotel Counseling - $25,000 in CDBG funds for casework!counseling sessions for the low-income tenants of the Single Room Occupancy Barker Hotel and Alma Place. Many of the tenants were previously homeless, and the counseling sessions help them maintain their housing stability. Shelter Network - Transitional Housing. for Familie} and Individuals - $8,500 in CDBG funds for transitional housing and supportive services (including childcare) for homeless families with children and single individuals, Clara-Mateo Alliance - Family/Singles Shelter and Transitional Housing- $35,000 in CDBG funds for emergency shelter and transitional housing for homeless individuals and families with children []May View Community Clinic - $18,000 in City General Funds were provided to the Clinic to provide health care for low-income, homeless, and uninsured residents. []Momentum for Mental Health - $27,000 in City General Funds for a homeless outreach program targeted to those with mental health issues. []Community Technology Alliance - $12,700 in City General Funds were used to provide voice mail boxes for the homeless as well as to support a Countywide subsidized housing website. 29 La Comida de California - $34,000 in City General Funds were used to provide meals for low-income seniors at various facilities Second Harvest Food Bank - $7,503 in City General Funds were used to provide groceries to low-income individuals 7. Antipoverty Strategy As was mentioned in the previous section, the City of Palo Alto provided either CDBG or HSRAP funding to several services for persons in the Palo Alto community who are very low-income, homeless, or at-risk of becoming homeless. The goal of all of the services listed above is to prevent homelessness, help people move out of homelessness and to reduce to number of persons below the poverty line. 8. Other Actions a. Lead-Based Paint Hazard Reduction Lead poisoning can cause permanent damage to the brain and many other organs, and can result in reduced intelligence and behavioral problems in young children. More than 800,000 children younger than 6 years old living in the United States have lead in their blood that is above the level of concern set by the Centers for Disease Control and Prevention (CDC). A significant number of these children are in families of low income and are living in old homes with heavy concentrations of lead-based paint. The most common sources of childhood exposure to lead are deteriorated lead-based paint and lead-contaminated dust and soil in the environment. The City housing and CDBG staff provide information and referral.to property owners~ developers and non-profits rehabilitating older housing about lead-based paint hazards. There is no information that indicates lower income households are more likely to be exposed to lead paint hazards in Palo Alto than are families in the general population. The City’s 2005-2010 Consolidated Plan has a more detailed discussion of lead based paint in the City. The City currently requires that any housing to be rehabilitated with City financial assistance to be inspected for the existence of lead paint and lead paint hazards. The City will provide financial assistance for the abatement of such hazards in units rehabilitated with City funding. b. Intergovernmental Cooperation The City of Palo Alto has worked closely with the cities of Gilroy, Mountain View and Sunnyvale to distribute a joint Request for Proposals (RFP) for fair housing services. A single fair housing provider was selected for all three cities in 2008-09 for a 2-year contract, resulting in more cost- effective services. City staff has also participated in County sponsored Task Forces and other efforts to increase affordable housing on a regional basis. City staff participates in the following: The Housing Tr.ust Fund of Santa Clara County Santa Clara County Collaborative on Housing and Homeless Issues The CDBG and HOME Program coordinators of entitlement jurisdictions from throughout Santa Clara County that address multi-jurisdictional funding, regional approaches to fair housing and predatory lending and other issues of common interest. Countywide Fair Housing Task Force c. Actions to Ensure CDBG Program Compliance The City follows the monitoring requirements for the use of federal funds as directed by HUD. City staff attended HUD sponsored workshops on Davis-Bacon labor standards, Basically CDBG, and IDIS. 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. Subrecipients of CDBG funds are required to submit semi-annual and annual performance reports outlining the extent to which program goals have been achieved, and the beneficiaries who have been served. Program performance is measured against the specific program objectives outlined in the contract scope of services. City staff monitors each subrecipient, as necessary; to insure compliance with regulations governing their administrative, financial and programmatic operations, and to make sure the subrecipients achieve their performance objectives within the prescribed schedule and budget. ’ 9. Changes to Annual Action Plan There was one change made to the 2007/08 Annual Action Plan. The City had allocated $383,929 to Bridge Housing for the Fabian Way Senior Housing project. The project was unable to use the CDBG funds due to a timing issue. The funds were needed in August 2007, prior to the completion of the environn~ental review. The City decided to provide $600,000 in funding from the City residential fund instead. The CDBG funds that had been allocated to this project were reallocated during the fiscal year 2008/09 funding cycle. C. Assessment of Performance 1. Evaluation of Progress in Meeting Annual Community Development Goals The City has made progress in meeting its community development goals in the past year, especially in the area of services for lower income residents. The local safety net of services for lower income persons is being strengthened with the creation of more shelter and supportive services. These efforts contribute significantly to a local continuum of care. All of the public service agencies funded with CDBG funds address the identified needs of providing a variety of human services to low-income, at risk populations. City staff has provided information and referral assistance to residents searching for affordable rental housing. Shelter beds and services for the homeless population have been increased as well as services to very low-income seniors and persons with disabilities. The City pursued all resources it indicated it would, provided requested certifications of consistency for HUD programs in a fair and impartial manner, and did not hinder Consolidated Plan implementation by action or willful inaction. The following goals are those that were identified in the 2005-2010 Consolidated Plan. The fiscal year 2007/08 accomplishments for each goal are also listed. Goal #8: Provide Assistance and Supportive Services to Low and Very Low-Income Palo Alto Residents to Keep them from Becoming Homeless 2007/08 Activities: Palo Alto Community Childcare - Childcare Subsidies 3990 Ventura Court Palo Alto, CA 2007 Accomplishment.: 50 households Project Sentinel - Mediation Program 430 Sherman Avenue, Suite 308 Palo Alto, CA 94306 2007 Accomplishment: 150 households Second Harvest Food Bank 750 Curtner Avenue San Jose, CA 95125 2007 Accomplishment: 175 individuals Avenidas - Senior Home Repair and Senior Housing Counseling 450 Bryant Street Palo Alto, CA 94301 2007 Accomplishment: 1,600 individuals La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2007 Accomplishment: 39,500 meals Palo Alto Housing Corporation - Barker Hotel and Alma Place Counseling Program 725 Alma Street Palo Alto, CA 94301 2007 Accomplishment: 146 households May View Community Clinic - Health Care Services 270 Grant Avenue Palo Alto, CA 94306 2007 Accomplishment: 100 individuals Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive Services with a Housing Component 2007/08 Activity: The City provided funding to InnVision for the Urban Ministry of Palo Alto program that operates a drop-in center at the Opportunity Center. InnVision- Urban Ministry of Palo Alto 974 Willow Street San Jose, CA 95125 2007 Accomplishment: 12,010 individuals Goal #10: Continue to Support the Operating (and/or rehabilitation) Costs of Shelters and Transitional Housing Programs that Serve the Palo Alto Area 2007/08 Activities: Clara-Mateo Alliance - Adult Program and Family Program 795 Willow Rd., Bldg 323-D ’ Menlo Park, CA 94025 2007 Accomplishment: $35,000 in Operating Costs Haven House 260 Van Buren Rd. Menlo Park, CA 94025 2007 Accomplishment: $8,500 in Operating Costs Emergency Housing Consortium 2665 North First Street, Suite 210 San Jose, CA 95134 2007 Accomplishment: $7,500 in Operating Costs Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for the Homeless 2007/08 Activity: The City continued to support mental health outreach and supportive services. Goal #12: Continue to Cooperate on Countywide Approaches to the Issues of Homelessness 2007/08 Activity: The City continued to cooperate on countywide approaches to the issues of homeless. Goal #13: Support the Activities of Area Non-Profit Organizations the Provide Transitional Housing and Supportive Services to the Homeless 2007/08 Activities: Clara-Mateo Alliance - Adult Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2007 Accomplisl~nent: maintained 6 transitional housing units Clara-Mateo Alliance - Family Trm~sitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2007 Accomplishment: maintained 3 transitional housing units Shelter Network - Haven Family Transitional Housing 260 Van Buren Road Menlo Park, CA 94025 2007 Accomplishment: maintained 16 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 2007/08 Activity: There were seven Shelter Plus Care units available at the Barker Hotel and 10 units were available at Alma Place. " Goal #15: Assist Seniors in Long-Term Care Facilities 2007/08 Activity: Catholic Charities - Long-Term Care Ombudsman Program 2625 Zanker Road, Suite 200 San Jose, CA 95134-2107 2007 Accomplishment: 1,052 Individuals Goal #16: Provide Support to Accessible Transportation Services 2007/08 Activity: Continued to support accessible transportation services in the City, including the Palo Alto Shuttle. Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8) 2007/08 Activities: 34 Clara-Mateo Alliance - Adult/Couples Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2007 Accomplishment: 754 Individuals Clara-Mateo Alliance - Family Housing Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2007 Accomplishment: 288 Individuals Shelter Network - Mid Peninsula Housing Program 1450 Chapin Avenue, 2hd Floor Burlingame, CA 94010 Various locations in the Mid-Peninsula 2007 Accomplishment: 420 Households InnVision/Urban Ministry Palo Alto - Drop-In Center 400 Mitchell Lane Palo Alto, CA 94301 2007 Accomplishment: 12,010 Individuals Emergency Housing Consortium - Palo Alt0 Homes Program 2665 North First Street, Ste. 210 San Jose, CA 95134 2007 Accomplishment: 31 Individuals Goal #18: Continue to Support Food and Meal Programs 2007/08 Activity: Second HaIwest Food Bank 750 Curtner Avenue San Jose, CA 95125 2007 Accomplishment: 175 individuals La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2007 Accomplishment: 150 individuals Goal #19: Promote a Vital System of Community-Based Human Services through Facilities to House those Services 2007/08 Activity: 35 Emergency Housing Consortium - Sobrato Youth House 496 South 3rd Street San Jose, CA 95112 2007 Accomplishment: 1 Facility has been completed 2. Barriers to Fulfilling Strategies The continually increasing cost of land in the Bay Area has not only created a housing crisis, but a rental crisis for non-profit agencies that serve the Vulnerable, at-risk populations. Many non- profits have experienced a decrease in funding and donations because of the economic downturn. Funding cuts have resulted in a decrease in staffing and services at many of the local non-profit agencies. Although there have been fluctuations in the economy, housing prices have continued to rise in the Bay Area. The housing that is available is out of reach to many low-income residents, primarily because many of the available jobs have low wages. According to the 2007-08 Out of Reach report prepared by the Nationa! Low-Income Housing Coalition, a renter in Santa Clara County must earn at least $24.87 per hour in order to afford the fair market rent for a two-bedroom apartment. Many resident renters have been forced into homelessness or forced to leave the area as the result of dramatic increases in rental rates and unemployment over the past few years. People already in shelters or sub-standard housing find it increasingly difficult to improve their living situ~itions, and tend to stay in the shelters or sub-standard housing longe~. 3. Adjustments or Improvements to Community Development Strategies No adjustments to the community development strategies have been identified at this time. 4. Performance Measurement System Status The City has updated the required performance measurement, system for the CDBG program. The City has updated their subrecipient reporting format in order to capture all of the necessary information for the new system and has included performance measures in their subrecipJent contracts beginning in fiscal year 2006/07. PART IV, APPENDIX PART IV. A. COPY OF PUBLIC REVIEW NOTICE AFFIDAVIT OF PUBLICATION IN THE PALO ALTO WEEKLY 703 High St., Palo Alto, California 94301 (650) 326-8210 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SANTA CLARA STATE OF CALIFORNIA "~ SS COUNTY OF SANTA CLARA I, the undersigned, state that I am, and at all times herein mentioned was, a citizen of the United States of America, 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 still am the principal clerk of the publisher of the Palo Alto Weekly, a newspaper of general circulation published weekly in the city of Palo Alto in said County of Santa Clara, State ot California; that said is and was at al! times herein mentioned a newspaper of general circulation as that term is defined by Section 6008 of the Government Code of the State of California; that said was adjudged as such by Superior Court of the Counly of Santa Clara, State of California, under date of November 2, 1982, Case Number P41989; that the notice of which the annexed is a true printed copy, was set in type not smaller than nonpareil and was preceded with words prinled 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 printed in said newspaper on the lollowing dates, to wit: Date of first publication in the Palo Alto Weekly I declare under penalty of perjury that the foregoing is true and correct¯ Executed on ..__~_.,~-~t~o_~.~.,~ at Palo Alto, California. S i~, n e d’.~._. ~/~’~ ~, NOTICE OF PUBLIC REVIEW COMMENT PERIOD FOR PA~,O ALTO~S CONSOLIDATED PI~RFORMAi~CI~ AND REPCRTFOR THE PERIOD JULy 1, 2007 TO JUNE 30, 2008 NOTICE IS HEREB(( GIVEN that the City of Palo Alto has completed a draft performance report for the Community Development Block Grant (CDBG) Program for fiscal year 2007/08. The Draft Consolidated Annual Performance and Evaluation Report (CAPER). is available for public review and .comment prior to its submittal to the U.S. Department of Housing and Urban Development. The CAPER provides.asummary of the" programmatic accomplishments in affordable housing and community development during the 2007-2008 fiscal year. It "describes the status of actions taken during the year..to implement the strategies and objectives described in the City’s Consolidated Plan for the period July 1, 2005 to June 30, 2010, and the progress made in addressing identified priority needs and objectives. Public Review and Commer]t Period: The draft CAPER wilt, be available for public review and comment for a 15-day period, beginning on Wednesday, September 3, 2008 and concludin.g at 5:00 p.m. on Thursday, September 18, 2(~08. Written comments’may be submitted during.~he review period and ¯ should be sent to t.he City of Pato Alto, Department of Planning and Community Environment, Attention: Eloiza Murillo-Garcia, 250 Hamilton Avenue, 5th Floor, Palo Al[o, CA 94301;650/329- 2428; e-mail eloiza.murilloga(cia@cityofpaloalto.org. To Obtaih a Copy of the CAPER: Copies are available at the ¯ Department of Planning and Commu~ty Environment, City Hall, 5th Floor, 250 Hamilton Avenue, during regular business hours or by calling 650/329-2603. Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (Voice) ada@cityofpaloalto.org NOTICE OF PUBLIC REVIEW AND COMMENT PERIOD .FOR PALO ALTO’S CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT FOR THE PERIOD JULY 1, 2007 TO JUNE 30, 2008 Notice is hereby given that the City of Palo Alto has completed a draft performance report for the Community Development Btock Grant (CDBG) Program for fiscal year 2007/08. The Draft Consolidated A~mual Performance and Evaluation Report (CAPER) is available for public review and comment prior to its submittal to the U.S. Department of Housing and Urban Development. The CAPER provides a summary of the programmatic accomplishments in affordable housing and community development during the 2007-2008 fiscal year. It describes the status of actions taken during the year to implement the strategies and objectives described in the City’s Consolidated Plan for the period July 1, 2005 to June 30, 2010, and the progress made in addressing identified priority needs and objectives. Public Review and Comment Period: The draft CAPER will be available for public review and comment for a 15-day period, beginning on Wednesday, September 3, 2008 and concluding at 5:00 p.m. on Thursday, September 18, 2008. Written comments may be submitted during the review period and should be sent to the City of Palo Alto, Department of Pla~ming and Community Environment, Attention: Elo~za Murillo-Garcia, 250 Hamilton Avenue, 5m Floor, Palo Alto, CA 94301; 650/329-2428; e-mail eloiza.murillogarcia@cityofpaloalto.org. To Obtain a Copy of the CAPER: Copies are available at the Department of Planning and Community Environment, City Hall, 5th Floor, 250 Hamilton Avenue, during regular business hours or by calling 650/329-2603. Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (Voice) ada@cityofpaloalto PART IV, B. SUMMARY OF FUNDING PRIORITIES SUMMARY OF CDBG FUNDING PRIORITIES FISCAL YEAR 2007/2008 AFFORDABLE HOUSING (Goal: 66% of Budget) A.ACTIVITIES IN SUPPORT OF NEW CONSTRUCTION, CONVERSION & ADDITION OF NEW UNITS II. Permanent housing for families with children Other permanent housing including group homes, seniors, the disabled, shared housing, etc. Transitional housing with supportive services Permanent housing for the homeless or at-risk of homelessness. B.PRESERVATION OF EXISTING, LOWER INCOME RENTAL HOUSING Preservation of existing, federally subsidized multi-family housing owned by profit motivated investors. Acquisition and/or rehabilitation of existing multi-family rental housing, including improvements to common areas. Acquisition and/or rehabilitation of existing buildings for special needs populations including shared housing and group homes. PUBLIC FACILITIES AND IMPROVEMENTS (Goal: 0% of Budget) 1.Rehabilitation of existing facilities for use as shelters for the homeless or other special needs groups ’ III.PUBLIC SERVICES (Goal: 15% of Budget) Services directly related to the housing needs of low-income persons. Homeless shelter operating costs and the provision of auxiliary or related services. Services which address other needs of low income, elderly or special needs persons. IV.ADMINISTRATION (Goal: 19% of Budget) Fair housing education, information, referral, advocacy, and counseling and complaint resolution. CDBG program administration and planning costs. Planning studies PART IV. C. GRANTEE PERFORMANCE REPORT Department of Housing & Urban Development Office of Community P~anning COVER PAGE Grantee Performance Report Community Development Block Grant Program OMB Approval No. 2502-0006 (exp. 3/31/93) NAME & ADDRESS OF GRANTEE City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 NAME & TELEPHONE NUMBER OF PERSON MOST FAMILIAR WITH INFORMATION IN THIS REPORT Ms. Eloiza Murillo-Garcia (650) 329-2428 Program Year End 2. Grant Number 6/30/08 B07MC060020 NAME & ADDRESS OF C.D. DIRECTOR Curtis Williams (Interim Director) Dept. of Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 NAME & TELEPHONE NUMBER OF PERSON TO CONTACT ABOUT DISCLOSURES REQUIRED BY THE HUD REFORM ACT OF 1989 Ms. Eloiza Murillo-Garcia (650) 329-2428 Have these Community Development Block Grant (CDBG) funds been used: a. to meet the community development program objectives in the final statement for this program year? If no, explain, in narrative attachment, how: (1) the uses did not relate to program objectives; and (2) future activities or program objectives might change as a result of this year’s experiences. Yes exclusively to either benefit low-and-moderate (Iow/mod) income persons, aid in the prevention or elimination of slums or blight, or meet community development needs having a particular urgency? If no, explain in a narrative attachment. Yes such that the grantee has complied with, or will comply with, its certification to expend not less than 70% of its CDBG funds, during the specified period, on activities which benefit Iow/mod income persons? If no, explain in a narrative attachment. Yes 8.Were citizen comments about this report and/or the CDBG program received? If yes, attach a summary. No This form may be reproduced on office Copiers. Previous editions are obsolete. Retain this record for 3 years. Form HUD-4949.1 (11/20/92) Ref Handbook 6510.2 Page 1 of 2 S :\PLAN\PLADIV~dv ance Plan ning\CDBG\CAPER~007-08\gpcoverpage_2008:doc Department of Housing & Urban Development Office of Community Planning COVER PAGE Grantee Performance Report Community Development Block Grant Program OMB Approval No. 2502-0006 (exp. 3/31/93) Indicate how the Grantee Performance Report was made available to the public: a. BY PRINTED NOTICE: Advertisement in Palo Alto Weekly September 3, 2008. b. BY PUBLIC HEARING: A Public Hearing was held on April 1, 2008 to discuss allocation recommendations. A Public Hearing was held on May 5, 2008 to determine final funding allocations. c.OTHER: A notice regarding the public review period for the draft CAPER was mailed to a list of interested individuals and posted on the City’s website. 10.The following forms must be completed and attached: a. Activity Summary, form HUD 4949.2 b. Financial Summary, form HUD 4949.3 c. 1-4-1 Replacement, form HUD 4949.4 d. Rehabilitation, form HUD 4949.5 e. Displacement, form HUD 4949.6 I hereby certify that: This. report contains all required items identified above; Federal assistance made available undei the Community Development Block Grant Program (CDBG) has not been utilized to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the start of the most recently completed CDBG program year; all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil p&nalties (18 U.S.C. 1001, 1010, 1012, U.S.C. 3729, 3802) Typed Name & Title of Authorized Official Representative JAMES KEENE City Manager Signature This form may be reproduced on office Copiers. Previous editions are obsolete. Retain this record for 3 years. Date Form HUD-4949.1 (11/20/92) Ref Handbook 6510.2 Page 2 of 2 S :~PLAN\PLADIV~Adv ance Planning\CDBG\CAPER~2007-08\gpcoverpage_2008.doc FINANCIAL SUMMARY FORM PY 2007-2008 Revised 9/26/08 Financial Summary Grantee Performance Report Community Development Block Program U.S. Department of Housing and Urban Development Office of Community Planning & Development 0MB Approval No. 2506-0006(Exp. 3/31/93) i.Name of Grantee City of Palo Alto 2. Grant Number B07MCO60020’ 3. Reporting Period From 07/01/07 To 06/30/08 Part I: Summary of CDBG Resources I.Unexpended CDBG funds at end of previous period 2.Entitlement Grant from form HUD-7082 3.Surplus Urban Renewal Funds 4.Section 108 Guaranteed Loan Funds (Principal Amount) 67’i,916 7’12,032 5.Program income received by:Grante~ (Column A) a. Revolving Funds b. Other (identify be!ow)32,603 Loan Repayments/Rental Income/Interest Total Program Income (sum of columns a and b) 6.Prior Period Adjustments (if negative, enclose in brackets) 7.Total CDBG Funds available for use during this report period Subrecipient (Column B) 666,845 699,448 2,083,396 Part II: Summary of CDBG Expenditures 8.Total expenditures reported on Activity Summary 9.Total expended for Planning & Administration (cdbg/pro]ec[senfinel) i0.Amount subject to Low/Hod Benefit Calculation Ii.CDBG funds used for Section 108 principal & interest payments 12.Total expenditures (line 8 plus line ii) 13.Unexpended balance (line 7 minus line 12) 15’1,336 527,504 678,840 0.00 678,840 1,404,556 Part Ill:Low/Hod credit This Reporting Period 14.Total Low/Hod credit for multi-unit housing expenditures 15.Total from all other activities qualifying as low/mod expenditures 16.Total (line 14 plus line 15) 17.Percent benefit to low/mod persons (line 16 divided by line i0 this reporting period) 302,597 224,907 527,504 100% Part IV: Low/Hod Benefit for Multi-Year Certifications (Complete only if certification period includes prior years) Program years (PY) covered in certification PY 2005,2006,2007 18. Cumulative net expenditures subject to program benefit calculation 19.Cumulative expenditures benefiting low!mod persons 20.Percent benefit to low/mod persons (line 19 divided by line 18) This form may be reproduced on local office copiers Previous editions are obsolete Retain this record for 3 years. form HUD-4949.3(II/24!92) ref Handbook 6510.2 09/26/08 1 Financial Summary Grantee Performance Report Community Development Block Program U.S. Department of Housing and Urban Development Office of Community Planning & Development 0MB Approval No. 2506-0006(Exp. 3/31/93) Part V: For Public Service (PS) Activities Only: Public Service CAP Calculation 21. 22. 23. 24. 25. 26. 27. 28. 29. Total PS expenditures from column h, form HUD 4949.2a Total PS unliquidated obligations from column r, from HUD 4949.2a Sum of line 21 and line 22 Total PS unliquidated obligations reported at the end of the previous reporting period. Net obligations for public services (line 23 minus line Amount of Program Income receive,d in the preceding program year Entitlement Grant Amount (from line 2) Sum of lines 26 and 27 Percent funds obligated for Public Service Activities (line 25 divided by line 28) 121,000 -0= 121,000 -0- 121,000 118,365 712,032 830,397 114.57%1 Part VI: Planning and Program Administration Cap Calculation 30. 31. 32. Amount subject to planning and adminstrative cap 1,411,480 (grant amount from line 2 plus line 5) Amount expended for Planning & Administration (from line 9 above) 151,336 Percent funds expended line 31 divided by line 30) {10.72%1 NE 5a: PROGRAM INCOME NARRATIVE Low Interest Loan Repayments (Housing Improvement Program) Palo Alto Housing Corp. Rental property income & other repayments (Palo Alto Gardens & Caravan House) 32,603 666 845 1699,4481 All interest earned on the Housing Improvement Program Loan Payments was returned to the U.S. Treasury. Other Program Income Activity No.Description Grantee Subrecipient 0.00 0.00 Total 0.00 0.00 09/26/08 2 This form may be reproduced on local office copiers Previous editions are obsolete Retain this record for 3 years. Financial Summary Grantee Performance Report Community Development Block Program form HUD-4949.3(II/24!92 ref Handbook 6510.2 U.S. Department of Housing and Urban Development Office of Coramdnity Planning & Development OMB Approval No. 2506-0006 Exp. 3/31/93) GPR HANDBOOK APPENDIX 3: ITEM E CALCULATION OF BALANCE OF UNPROGRAMMED FUNDS RECONCILIATION OFLINE(S) OF CREDIT (LOC) AND CASH BALANCES TO UNEXPENDED BALANCE OF CDBG FUNDS SHOWN ON GPR Complete the following worksheet and submit with the attachment: UNEXPENDED BALANCE SHOWN ON GPR (line 13 of HTJD 4949.3) LOC balance(s) as of GPR Date Cash on Hand: Grantee Program Account Subrecipients Program Accounts 1,404,555 Revolving Fund Cash Balances Section 108 Accounts (in contract) -0- StrBTRACT: Grantee CDBG Program Liabilities (include any reimbursements due to the Grantee from program funds) -0- Subrecipient CDBG Program Liabilities (same instructions as above) -0- TOTAL RECONCILING BALANCE: UNRECONCILED DIFFERENCE:0 When grantees or subrecipients operate their programs on a reimbursement basis, any amounts due to the grantees or subrecipients should be included in the Program Liabilities. 1,404,555 1,404,555 This form may be reproduced on. local office copiers Previous editions are obsolete Re.rain this record for 3 years. U.S form HUD-4949.3 (11/24/92 ref Handbook 6510o2 Department of Housing & Urban Development Office of Community Planning and Development 09/26/08 REHABILITATION ACTIVITIES Grantee Performance Report Community Development Block Grant Program 0MB Approval No. 2506-0006(exp. 3/31/93) Name of Grantee City of Palo Alto Grant Number B07MCO60020 Program Year From 07/01/06 To 06/30/07 All grantees must submit this form, whether or not they have CDBG funded rehabilitation programs. I I Single-unit I Multi-unit Activities I Activities (i Unit)I (2+ Units) i. Check box only if grantee has no CDBG rehabilitation activities: 2. Staffing: number of Staff-Years (FTE staff years to tenths) 3. Current Program Year Expenditures: Activity delivery costs from CDBG funds a.Staff costs: Amount expended in 2 above b.Other direct costs (not included in 4) Current Program Year Expenditures: For all projects (a+b+c below) a.CDBG funds expended b.Other public (Federal,State,local) funds exp’d. c.Private funds expended 5 o Project/Units Rehabilitated/Committed a. Number of projects committed (multi-unit only) Number of units committed Projects Units Units 6. Obligations: Amount obligated for projects/units committed in 5aand 5b a.CDBG funds obligated b0 Other public(Fed.,State,local) funds obligated c.Private funds obligated 7. Projects/Units Rehabilitated/Completed a. Number of projects completed(multi-unit only) b.Number of units completed Projects Units Units Cumulative Expenditures: a.CDBG funds expended b.Other public(Federal,State, local) funds exp’d. c.Private funds expended 09/26/08 4 Explanation of Differences Between the Pt~26 - CDBG Fina~cia! Summary for ,Program year 2006 and Financial Summary Form PY 2007-2008 The PR26 report shows the incorrect amount of program income received during fiscal year 2007-2008. Line 05 shows a total amoum of $217,219.85 received, however, the actual total amount of program income received in fiscal year 2007-2008, was $699,447.73 as demonstrated in both the PR01 report. Because of this, there is a difference between some of the amounts on the PR26 report and the financial summary prepared by the City of Palo Alto. Line PR 26 Report Amount 05-$217,219.85 43 $217,219.85 45 $929,251.85 46 16.29% Co~ect Amount $699,447.73 $699,447.73 $1,411,479.70 10.72% In addition, line 33 shows a total amount of program income received in the previous program year as $121,670.55. However, the actual amount received was $118,365.31 as demonstrated in the attached PRO 1 report. Line 33 35 36 PR 26 Report Amount $121,670.55 $833,702.55 14.51% Co~e~ Amount $118,365.31 $830,397.31 14.57% o o8 ~ o x o 0 0 o C o o ~ 0o o o ZZZZ~ 00oo0z~zz~ 00000 ©© ©© n o m o z o o z & 0 o ooooooooooo oo 0 oz ooooooooooooo~ H o oz 0 o OO < 0~ z0 0 ~z ~ o o~z z t~ ~t~ o ~0 ~0 c0 ~.,~ © 6~ o o ~0~ 0 ~ o ~0~< ~o o (2) Z Z Z o 0¯~3 o o oo <D 0 0 0 0 0 C] 0 o © o ~ o z oo no 8 ~0~ ~t~ ~] t~ ~ t,o~ t~ ~t~ t~ t~ © z z o t~ z Z H< 0 < z oz z Uo o o o o o o o o ~ oooooooo g 0 0 o o o o c~ P~OH H ~0 H t~ Z x z x z z t~ z© ©z H o 0 0 0 0 O00t~0 m o o H Z ~ H ~ © © oo 0 o~ o o ~ o ~< H © o < z< © X~-3 Z <H z ~ H,-] o ~ ~ ~ t~ 0~ o o Z o ~ H ~m HZ Z ~ ~ Z 0 0 0 z © z© © Z oooooooooo~ o o o o o o o o o o c) o ~J H 0Z 0 0 ©~J o r~ m © © © 0 0 H ~ [--1 ~] 0O~ Z ~ Z 0 -~ ,,--] ~ 0 Z Z~ 0 MZ H z o H Z ~ 0 o o~ 0000 0 0 H o o [~ 0 0 0 o o o q ~ © < © © X Z Z nc~o t~ t~ t~ o t~ <o 0 0 o ~ z o ~ o o 0 o o 00000 0"O00X o 0 H 0 0 o o o z H 0Z 0 o o c~ o H H ~ ©z x z < o m Z H o z Z 0000 0 © co ~ © © Z 0 o q ~ n o~ z<:I © X Z z Z ~ t~ 0 ~ t~ ~ t~zt~ t~t~ 0 0 o o g x H ot~ © H 0"1 0 t~ o z t~o H< © Z m ~d t~ 0,~ z t~ Z o t~ o s~o ~t~[m t~ t~~t~ ~ot~~ o oo o 0000 o o S 0 Z ~ o ~ o ~ ~ ~ o ~mc~ Z>H z ~© Z 0 ~ ~ H 0 t~ t~ HZ H o t~ ~00 ©~ ~.. © o~ "d t~ 0 ,-3 o ~ o o o 0000 0 < o 0 ~ ~0 < o ° © ~< z Z ~<ot~ z o ~ z oo~ o~ t~o o ~ H o~ ~o~o ~<~o~ ~ z [~ o ~ o ~o~o~< 8 ~oo {n ~ o ~z z z Z ~ 00 c~ H ~ 00 ~a Z z Z o o o o o o o o o ~-~ c) Z H ~< © oo o ~ H H © Z© 0 z o o oz Z oo o Z Z ~ 0 z ~ 0 ~ o ~ o ~ 0 o E~ X 0 z o o ~< ~ z 0 0 ~< o z t~ oo oo o L-~ o0 o ’~ 00 SUMMARY OF CDBG ACCOMPLISHMENTS FISCAL YEAR 20t)7-2008 Priority Need Category Public Services Catholic Charities - Long Term Care Ombudsman Clara-Mateo Alliance - Shelter /Transitional Housing (Families) Clara-Mateo Alliance - Shelter /Transitional Housing (Adults) Emergency Housing Consortium- Off the Streets program Emergency Housing Consortium - Homeless Shelter Services InnVision - Urban Ministries Drop-In Center Palo Alto Housing Corporation - SRO Hotels Supportive Services Shelter Network - Haven House Sub-total Admin/Fair Housing Services Project Sentinel (fair housing services) City of Palo Alto Admin Sub-total Housing ’ .- ’ Housing Development Fund Stevenson House - Windows/Doors Retrofit Expended $7 500 $17,500 $17,500 $7,5o6 $7,500 $30,000 $25,000 $8,500 $121,000 $26,800 $124,536 $151,336 $17,336 $257,952 Number of Beneficiaries Served Proposed 320 125 500 4 25 500 125 7O 1,669 16 N/A 16 ’ N/A 120 Accomplished 1052 288 754 7 29 12,010 146 420 14,706 26 N/A 26 N/A Underway Stevenson House - Fire Alarm Project Sub-total Public Facilities Lytton Gardens - Countertop Project Sub-total Grand Total $44,646 $319,934 $86,570 $86,570 $678,840 120 240 1 1 1,926 120 120 1 1 14,853