Loading...
HomeMy WebLinkAboutStaff Report 210-06City of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER 7 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: MAY 1, 2006 CMR: 210:06 FINANCE COMMITTEE RECOMMENDATION RE: PROPOSED FISCAL YEAR 2006/07 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATIONS AND DRAFT ACTION PLAN RECOMMENDATION The Finance Committee recommends to the City Council approval of the following: 1.Allocate CDBG funding as recommended by staff and the Citizens Advisory Committee (CAC) in the 2006/07 Action Plan update to the Consolidated Plan for the period 2005 to 2010. 2.Authorize staff to submit the 2006/07 Action Plan to the Department of Housing and Urban Development (HUD) by the May 15, 2006 deadline. Authorize the City Manager, on behalf of the City, to execute the 2006/07 application and Action Plan for CDBG funds and any other necessary documents concerning the application, and to otherwise bind the City with respect to the application and commitment of funds. COMMITTEE REVIEW AND RECOMMENDATIONS The staff and the CAC recommendations were presented to the Finance Committee on April 4, 2006. First, staff summarized its recommendations and then the CAC spokesperson gave a brief overview of the CAC discussions regarding the recommendations. A representative from Catholic Charities thanked the City for continuing funding of its long term care ombudsman program. The Committee discussed briefly how the regulations regarding CDBG funding and the financial limitations of non-profit organizations tend to restrict the ability for non-profits to apply for capital project funding. The Committee voted unanimously to recommend to Council the staff and Citizens Advisory Committee recommendations. CMR: 210:06 Page 1 of 2 ATTACHMENTS Attachment A: Fiscal Year 2006-07 Funding Recommendation Chart Attachment B: CDBG Funding Resolution for fiscal year 2006/07 Attachment C: CMR 185:06 (without Attachment B) Attachment D: April, 2006 Annual Assessment letter from HUD Attachment E: Revised Draft 2006/2007 Action Plan Prepared by:~llo-Garcia CDB~ Department Approv~ Advance Planning Man~er City Manager Approval: . EMIL’g HARRI~N Assistant City Manager Cc:Citizens Advisory Committee 2006/2007 CDBG Applicant Agencies CMR: 210:06 Page 2 of 2 ATTACHMENT A 2006-2007 FUNDING RECOMMENDATIONS1 APPLICANT AGENCY 1.Catholic Charities Long-Term Care Ombudsman 2.Emergency Housing Consortium Palo Alto HOMES Program 3. Palo Alto Housing Corporation SRO Resident Support Services 4. Shelter Network - Haven Family House Transitional Housing for Homeless Families 5. InnVision/Clara-Mateo Alliance Family Shelter & Services/Elsa Segovia Center 6. InnVision/Clara-Mateo Alliance Single/Couple Shelter & Services 7. InnVision~rban Ministry Homeless Drop-in Center 8. Mid-Peninsula Alano Club MPAC Operations 9. St. Vincent de Paul Society Dayworker Emergency Services PUBLIC 2005/2006 2006/2007 CAC/ STAFF FUNDING FUNDING RECOMMEN- REQUEST DATIONS SERVICES 6,000 8,940 5,800 8,000 10,063 7,760 23,000 59,897 20,270 19,000 30,000 16,375 21,392 25,000 18,725 21,000 24,000 5,000 -0- 30,000 30,000 16,000 $10,000 Total Public Services (Cap $113,502) 127,392 224,870 FAIR HOUSING/ADMINISTRATION 10. Project Sentinel 26,800 26,800 11. City of Palo Alto 138,056 155,000 Program Administration Total Administration (Cap $151,336)164,846 181,800 CAPITAL PROJECTS 18,322 21,250 5,000 -0- 113,502 26,800 124,536 151,336 12. Community Housing Inc. New Elevator for Health Care Center 13. Stevenson House Retrofit of Windows and Doors 14. Economic and Social Opportunities Housing and Energy Services Program 15. Stevenson House - Senior Housing Fire Alarm Upgrades 16. Community Working Group Alma Garden Apartments Acquisition Total Capital Projects (Cap $730,946) TOTAL 86,575for countertop lavatories -0- 60,000 -0- $150,000 351,799 60,000 45,100 250,000 -0- 370,0002 63,3002 47,6462 250,000 730,946 995,784 IChanges may be necessary if the amount of funding is increased or decreased when the President signs the budget. 2Includes approximately 5% for project delivery costs. NOT YET ATTACHMENT B APPROVED RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FISCAL YEARS 2006-2007 WHEREAS, on May 9, 2005, the Palo Alto City Council approved and adopted a document entitled "Consolidated Plan", which identified and established the Palo Alto housing and non-housing community deve!opment needs, objectives, and priorities for the period of July i, 2005 to June 30, 2010; and WHEREAS, the 2006-07 Action Plan, the annual update to the Consolidated Plan, was subjected to public review and commentary during the period of March 27, 2006, through April 27, 2006; and WHEREAS, the potential uses of Community Development Block Grant ("CDBG") funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Citizens Advisory Committee and other interested citizens; and WHEREAS, under the CDBG program, the highest priority is given to activities which will benefit persons with low and moderate incomes; and WHEREAS, the City Council and the Finance Committee of the City Council have held publicly noticed public hearings on the proposed uses of the CDBG funds for fiscal year 2006-07; and WHEREAS, the fiscal year 2006-07 CDBG funds allocated to the City are proposed to implement the following programs; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. The uses of CDBG funds for fiscal year 2006-07 are hereby approved and authorized for the following programs: Catholic Charities’ Long-Term Ombudsman Program - Confidential advocacy and complaint investigation services to residents in Palo Alto’s licensed long-term care facilities.$ 5,8o0 060424 syn 0120113 NOT YET APPROVED o o o o Emergency Housing Consortium. EHC provides temporary shelter and supportive services for homeless individuals and families. County-wide. Palo Alto Housing Corporation. Supportive counseling program for low income residents and prospective residents of single-room occupancy housing in Palo Alto. Shelter Network’s Mid-Peninsula Housing - Transitional housing and comprehensive supportive services for homeless families at the agency’s Menlo Park and San Mateo facilities. The Maple Street Shelter serves single adults in Redwood City. These programs seek to permanently break the cycle of homelessness, re-linking homeless families and individuals with stable incomes, jobs, and housing. Clara Mateo Alliance/Innvision Family Shelter Wing - Emergency and transitional housing and supportive services for homeless families with children. Services include food, clothing and medical care. All services are provided on the grounds of the VA Campus in Menlo Park. Clara Mateo Alliance/Innvision Shelter - Emergency and transitional housing for homeless persons at the VA campus in Menlo Park. The shelter targets a difficult to serve population such as homeless persons with disabilities, psychiatric disorders, substance-abuse issues, and those with severe mental illness. Urban Ministry of Palo Alto/Innvision - Drop-in Center for the local homeless population. Supportive services include counseling, case management, light meals, shelter referral, bus passes, phone, mail, clothing, and referrals to other agencies. 7,760 20,270 16,375 18,725 18,322 21,250 060424 syn 0120113 2 NOT YET APPROVED o i0. ii. 12. 13. Mid-Peninsula Alano Club-MPAC Operations. MPAC provides a physical location where those in and/or recovering from addictive substance may gather, meet, share and support one another. MPAC provides a safe, clean and sober environment for all those seeking or in recovery from addictive substances. Fair Housing Services. Agency will be determined through a joint request for Proposals (RFP) issued in collaboration with the Cities of Mountain View and Sunnyvale. Agency wil! provide services to promote fair housing, including complaint investigation, counseling, advocacy and education. City-wide. City of Palo Alto. Department of Planning and Community Environment. Overall CDBG grant administration and capital improve- ment project delivery costs associated with federal funding. City-wide. Stevenson House - Window and Door Retrofit. Project is to replace the windows and doors in the common areas and the "B" building. Stevenson House - Fire Alarm Upgrades. Project will involve upgrades to the existing fire alarm system and will bring it up to date with current regulations. Economic and Social Opportunities. The project will assist a minimum of 26 low- income Pa!o Alto households with home improvements services. These services are designed to identify and improve hazardous conditions in homes, improve accessibility and use for seniors and individuals with disabilities, improve energy efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future. 5,000 26,800 124,536 370,000 47,646 63,300 060424 syn 0120113 NOT YET APPROVED 14.City of Palo Alto - CDBG Housing Development Fund. Provision of funds to be used to reimburse the City Commercial Housing Fund for a loan made to the Community Working Group for the acquisition of the Alma Garden Apartments located at 2507-2533 Alma Street. TOTAL 250,000 $995,784 SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed allocation of $711,680 in CDBG funds, from the United States Department of Housing and Urban Deve!opment ("HUD") for fiscal year 2006-07, $45,000 in anticipated program income for fiscal year 2006-07, $78,319 in prior years program income and $160,785 in miscellaneous reallocated funds. SECTION 3. The City staff is hereby authorized to submit the 2006-07 annual Action Plan update and appropriate application forms to HUD for the fiscal year 2006-07 CDBG funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. SECTION 4. The City Council hereby finds that the fiscal year 2006-07 CDBG program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Act ("CEQA"). However, the Council further authorizes and directs City staff to conduct any further environmental review, and prepare any additional environmental assessments and certificates that may be required, under CEQA and the National Environmental Policy Act (NEPA) for each project under the fiscal year 2006-07 CDBG program prior to the release of funds for any such project. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: 060424 syn 0120113 NOT YET APPROVED ATTEST:APPROVED: City Clerk APPROVED AS TO FOR!~: Mayor City Manager Sr. Deputy City Attorney APPROVED AS TO CONTENT: CDBG Coordinator Director of Planning and Community Environment Director of Administrative Services 060424 syn 0120113 ATTACHM3ENT C City of Palo Alto City Manager’s Report TO: ATTENTION: HONORABLE CITY COUNCIL FINANCE COMMITTEE FROM: DATE: SUBJECT: CITY MANAGER APRIL 4, 2006 DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 185:06 PROPOSED FISCAL YEAR 2006/07 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATIONS AND DRAFT ACTION PLAN REPORT IN BRIEF This report, transmits the recommendations of City staff and the Citizens Advisory Committee (CAC) for the expenditure of $995,784 in FY 2006/07 Community Development Block Grant (CDBG) funds. The draft Fiscal Year 2006/07 Action Plan includes the funding recommendations and the second year of a two-year funding cycle coordinated with the Human Services Resource Allocation Process (HSRAP) begirming in fiscal year 2005/06. RECOMMENDATION Staff and the CDBG Citizen’s Advisory Committee recommend Committee recommend to the City Council approval of the following: that the Finance Allocate-CDBG funding as recommended by staff and the Citizens Advisory Committee (CAC) in the 2006/07 Action Plan update to the Consolidated Plan for the period 2005 to 2010. 2.Authorize staff to submit the 2006/07 Action Plan to the Department of Housing and Urban Development (HUD) by the May 15, 2006 deadline. Authorize the City Manager, on behalf of the City, to execute the 2006/07 application and Action Plan for CDBG funds and any other necessary documents concerning the application, and to otherwise bind the City with respect to the application and commitment of funds. CMR: 185:06 Page 1 of 9 BACKGROUND Consolidated Plan The 2005-2010 Consolidated Plan, adopted by Council on May 9, 2005, is a 5-year strategic plan of action that addresses priority housing and community development needs and sets specific goals for attaining identified objectives. Each year an Annual Action Plan is prepared to identify specific projects to be funded to implement the Consolidated Plan. The Consolidated Plan and the Annual Action Plan updates are required by HUD in order for the City to receive federal funding from programs such-as the Community Development Block Grant (CDBG) or HOME Investment Partnership Act. The primary need identified in the Consolidated Plan is for affordable housing for low- income persons or persons with special needs. The goal for the five-year period is to provide 125 units of permanent, affordable housing. Palo Alto’s CDBG program is directed toward expanding and maintaining the affordable housing supply, promoting housing opportunities and choices, maintaining and improving community facilities, and providing supportive services for targeted low-income groups, including persons who are homeless, persons with disabilities, the elderly, and other special needs groups. In 2002, the City Council approved a two-year funding cycle for CDBG applications, similar to the HSRAP process. All of the proposed projects for CDBG funding for fiscal year 2006/07 address the priority housing and supportive service needs identified in the adopted Consolidated Plan. The Draft 2006/07 Annual Action Plan update has been made available for public review and comment during the period March 27 to April 27, 2006 (Attachment B). CDBG Regulations The City of Palo Alto receives funds annually from HUD as an entitlement city under the CDBG Program, authorized by Title I of the Housing and Community Development Act of 1974 (the Act), as amended. The primary objective of the Act is "the development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income." HUD regulations require_that all activities must meet one of the three national objectives of the CDBG Program: Benefit low- and very low-income persons; Aid in the prevention or elimination of slums or blight; or Meet other community development needs having a particular urgency, or posing a serious and immediate threat to the health or welfare of the community. Palo Alto has historically expended all of its CDBG funds on projects benefiting low- and very-low-income persons. CMR: 185:06 Page 2 of 9 There are three primary CDBG program activity areas: Public Services: Social service activities that benefit low-income persons. The maximum amount that can be expended under this category is 15 percent of the grant allocation and 15 percent of the program income for the previous year.For fiscal year 2006/07, the maximum available for public services is $113,502. Public Service Cap Calculation: 2006/07 Entitlement Grant Program Income - HIP 2005/06" (Est.) Program Income - PAHC 2005/06’ (Est.) $113,502 $711,680 $10,000 $35.000 $756,680 x 15% = o Planning and Administration: This category may be used to reimburse fair housing activities, CDBG program management, oversight and coordination, environmental reviews, and general planning activities. Federal regulations limit the amount that can be spent in this category to 20 percent of the grant and 20 percentof the estimated program income for the following year. For fiscal year 2006/07, funding is limited to a maximum of $151,336. Planning/Administration Cap Calculation: 2006/07 Entitlement Grant Program Income - HIP 2006/07" (Est.) Program Income - PAHC 2006/07’ (Est.) $711,680 10,000 35,000 $756,680 x 20%=$151,336 *Federal regulations require the public service and planning/administration caps be calculated on program income for different years. o Capital Projects: Capital improvement activities such as housing acquisition, rehabilitation, accessibility, and public improvements are the primary focus of the CDBG program. There are no funding limitations in this category. CDBG Applications Applications for 2005/07 funding were mailed to area housing and human service providers on October 12, 2004 and posted to the City’s website. A notice announcing the availability of applications for 2005/06 and 2006/07 CDBG funding was published in the Palo Alto Weekly in October 2004. A proposal-writing workshop was conducted in November 2004 to assist applicants with program regulations and project eligibility questions. The City received 18 applications for funding totaling $1,447,058 for FY 2005/06 and 14 applications for funding totaling $1,029,918 for FY 2006/07. Because there were only two capital projects submitted during the initial application request period in October 2004, the City issued a special RFP for housing and capital projects only in October 2005. Two applications were received for housing acquisition CMR: 185:06 Page 3 of 9 projects and four additional applications for capital projects were received totaling $856,899. Citizen Participation The City follows a Citizen Participation Plan to encourage public participation in the CDBG allocation and assessment process. The Citizen Participation Plan calls for a seven-member Citizens Advisory Committee (CAC), six of whom are selected by the Mayor. One slot on the CAC is reserved for a member of the City’s Human Relations Commission (HRC). Members of this year’s CAC were: Eve Agiewich (HRC Liaison), Susie Brain, Dave Charleson, Lynn Fielder, Michael Jakoby, Steve Mullen and George Vizvary. Steve Mullen was selected by the Committee as spokesperson. The funding recommendations made by the Committee and supported by Council in 2005 were preliminary for fiscal year 2006/07; therefore, the CAC met on four occasions in January and February 2006 to review and finalize those funding recommendations. The new capital projects and housing applications that were received during the special RFP process were also discussed at these meetings. DISCUSSION 2006/07 Funds Available for Allocation The total amount available for allocation this year is $995,784. The City’s. 2006/07 CDBG grant is $711,680, an 8.7 percent decrease over the prior year’s grant of $779,281. $160,785 in funds remaining from previous projects being reallocated to new projects. Also included is $45,000 in program income (income generated directly from the use of CDBG funds) expected to be received in 2006/07, plus $78,319 in program income received in previous years in excess of the estimated amount. In summary: $711,680 160,785 10,000 35,000 78.319 $ 995,784 FY 2006/07 CDBG entitlement grant from HUD* Reallocation of other previous funds Estimated program income for 2006/07 from the City’s Housing Improvement Program (HIP), a single-family residential rehabilitation program that is no longer operational Estimated program income for 2006/07 from the Palo Alto Housing Corporation that is generated when rental income exceeds expenses on specific properties acquired or rehabilitated with CDBG funds Actual program income received in previous years in excess of the estimated amounts that were allocated *The amount of entitlement grant is not officially confirmed until the President has signed a budget bill approved by the United States Congress. CMR: 185:06 Page 4 of 9 Funding Recommendations - FY 06/07 The chart on the following page shows the applications that were received and the CAC and staff funding recommendations. It should be noted that changes may be necessary in the event that the City’s entitlement grant is increased or decreased when the President signs the actual budget. Attachment A is a narrative explaining the funding requests and funding recommendations in more detail. The CAC and staff made preliminary funding recommendations for fiscal year 2006/07 during the fiscal year 2005/06 funding process. The CAC and staff reviewed the preliminary recommendations when the actual funding amount for fiscal year 2006/07 was available. The actual funding available for the public services category was approximately $10,000 less than had previously been estimated. Staff and the CAC recommend a decrease in funding of approximately $2,000 from the five applicants with the largest funding requests: Urban Ministry/IImVision, Clara-Mateo Alliance/InnVision (2 applications), Shelter Network, and Palo Alto Housing Corporation based on the levels that were proposed in the preliminary recommendations. Staff and the CAC recommend that three remaining applicants, Emergency Housing Consortium, Catholic Charities, and Mid-Peninsula Alano Club be funded at the level proposed in the preliminary recommendations that were approved by Council in May 2005. Staff and the CAC believe that funding cuts would be more detrimental to those applicants with smaller grant amounts because the same grant administration requirements apply. If the grant amount is too small, it is not cost effective to administer it. In the fair housing/administration category, staff and the CAC recommend funding at the same level for fair housing services with the balance being allocated for CDBG program administration and support. The funding for CDBG program administration will be decreased from the previous fiscal year because of the limited amount of funding available in this category. In order to make up the difference, the City will add approximately five percent to each capital project to compensate for staff work for project delivery. Six app!ications for capital projects were received in fiscal year 2006/07. Staff and the CAC recommend funding for five of the six capital projects. Funding for one of these projects, the Community Working Group Alma Garden Apartments acquisition, was already approved by Council on March 6, 2006. Staff and the CAC recommend funding for four additional projects. Stevenson House. had previously submitted an application for the retrofit of windows and doors in the common areas of its building. During the special RFP process that was undertaken in October 2005, Stevenson House submitted an additional application to expand its project to retrofit the windows in doors in the "B" building. The window and door retrofit project will make the building more energy efficient and Stevenson House will save on its heating and cooling costs. Stevenson House also submitted an additional request for the upgrade of its fire alarm system so that it will meet current code requirements. Its existing system was installed in 1968 and it is not possible to obtain replacement parts because the company that installed the system has since gone out of business. Staff and CMR: 185:06 Page 5 of 9 the CAC also recommend continued funding for Economic and Social Opportunities for its Housing and Energy services program, which provides minor home repairs and accessibility upgrades to income-eligible Palo Alto residents. Lytton Gardens submitted a funding application for a new elevator for its health care center. Staff and the CAC do not recommend funding for this project because only a portion of the occupants at the health care facility qualify as low-income. One of the primary missions of the CDBG program is to provide services for low-income persons. In addition, CDBG assistance for public facilities is a lower priority in the City’s adopted Consolidated Plan for 2005-2010. The top priority identified in the Consolidated Plan is affordable housing. These activities include the creation of new affordable housing and the preservation of existing affordable housing. The Stevenson House and Economic and Social Opportunities projects address high priority needs identified in the Consolidated Plan. CMR: 185:06 Page 6 of 9 FUNDING RECOMMENDATIONSa APPLICANT AGENCY 1.Catholic Charities Long-Term Care Ombudsman 2.Emergency Housing Consortium Palo Alto HOMES Program 3. Palo Alto Housing Corporation SRO Resident Support Services 4. Shelter Network- Haven Family House Transitional Housing for Homeless Families 5. InnVision!Clara-Mateo Alliance Family Shelter & Services/Elsa Segovia Center 6. InnVision/Clara-Mateo Alliance Single/Couple Shelter & Services 7. InnVision/Urban Ministry Homeless Drop-in Center 8. Mid-Peninsula Alano Club MPAC Operations 9. St. Vincent de Paul Society Dayworker Emergency Services 2005/2006 FUNDING PUBLIC SERVICES 6,000 8,000 23,000 19,000 21,392 21,000 24,000 5,000 -0- 2006/2007 FUNDING REQUEST 8,940 10,063 59,897 30,000 25,000 30,000 30,000 16,000 $10,000 Total Public Services (Cap $113,502) 127,392 224,870 FAIR HOUSING/ADMINISTRATION 9. Project Sentinel 26,800 26,800 10. City of Palo Alto 138,056 155,000 Program Administration Total Administration (Cap $151,336)164,846 181,800 CAPITAL PROJECTS CAC/ STAFF RECOMMEN- DATIONS 5,800 7,760 20,270 16,375 18,725 18,322 21,250 5,000 -0- 113,502 26,800 124,536 151,336 -0-11. Community Housing Inc.86,575 for $150,000 New Elevator for Health Care Center countertop lavatories 12. Stevenson House -0-351,799 370,0002 Retrofit of Windows and Doors 13. Economic and Social Opportunities 60,000 60,000 63,3002 Housing and Energy Services Program 14. Stevenson House - Senior Housing 0 45,100 47,6462 Fire Alarm Upgrades CMR: 185:06 Page 7 of 9 FUNDING RECOMMENDATIONS1 APPLICANT AGENCY 15. Community Working Group Alma Garden Apartments Acquisition Total Capital Projects (Cap $730,946) TOTAL ~Changes may be necessary if the amount of funding President signs the budget. 2005/2006 FUNDING -0- 2006/2007 FUNDING REQUEST 250,000 CAC/ STAFF RECOMMEN- DATIONS 250,000 730,946 995,784 2Includes approximately 5% for project delivery costs. is increased or decreased when the Commitment of CDBG Funds As mentioned in the previous section, Council approved an allocation of fiscal year 2006/07 CDBG funds to the Community Working Group for the acquisition of the Alma Garden Apartments. The approval for this project had to be expedited in order for the City to meet its timeliness standard, in which the HUD regulations say that the City can have no more than 1.5 times its Current grant amount in its letter of credit balance by April 30, 2006. Council approved $900,000 in funding from the CDBG housing development fund as well as $250,000 from the fiscal year 2006/07 CDBG allocation for a total allocation of $1.15 million. The $250,000 from the fiscal year 2006/07 CDBG allocation will be advanced from the City commercial housing fund; the City housing fund will be reimbursed with CDBG funds when they are available in fiscal year 2006/07. POLICY IMPLICATIONS All of the applications recommended for funding in fiscal year 2006/07 are consistent with the priorities established in the City’s adopted Consolidated Plan for the period 2005 to 2010. They are also consistent with the housing programs and policies in the Comprehensive Plan. RESOURCE IMPACT CDBG regulations require that CDBG entitlement jurisdictions provide funding for fair housing services. The CAC and staff recommend that the City’s fair housing provider be funded at the same level as the previous fiscal year. Because of this, the amount available for allocation to the City for CDBG administration will be reduced. In order to make up the difference, approximately 5% has been added to each capital project to compensate for staff work for project delivery. In the event that any cost overruns occur, they will be allocated to the General Fund portion of CDBG administration. The remaining proposed projects will be funded solely with CDBG funds and will not have an impact on the General Fund. CMR: 185:06 Page 8 of 9 TIMELINE Funding recommendations made by the Finance Committee will be forwarded to the City Council for review and approval at a public hearing scheduled for May 1, 2006. The funding allocations and Annual Action Plan update will be submitted to HUD by the May 15, 2006 deadline. ENVIRONMENTAL REVIEW For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting in itself is not a project. HUD environmental regulations for the CDBG program are contained in 24 CFR 58 "Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities". The regulations require that entitlement jurisdictions assume the responsibility for environmental review and decision-making under NEPA. Prior to the commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or assessments, and. certify that the review procedures under CEQA, and HUD and NEPA regulations have been satisfied for each particular project. ATTACHMENTS Attachment A: Attachment B: Staff and CAC recommendations for FY 2006/07 CDBG Funding 2006/07 Draft Annual Action Plan Update of the Consolidated Plan for the period 2005 to 2010 PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: Eloiza Murillo-Garcia, CDBG Planner O~ager E~Y HARRISON Assistant City Manager CC."CDBG Citizens Advisory Committee Members 2006/07 CDBG Applicant Agencies CMR: 185:06 Page 9 of 9 ATTACHMENT A STAFF AND CITIZENS ADVISORY COMMITTEE (CAC) RECOMMENDATIONS FOR FISCAL YEAR 2006/07 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING PUBLIC SERVICE APPLICATIONS 1.Emergency Housing Consortium (EHC) - Palo Alto HOMES Program 2665 North First Street, Ste. 210, San Jose, CA 95134 2005/06 Funding FY 06/07 $8,000 2006/07 Funding Request $10,063 Staff/CAC Recommendation $7,76O Proposal: Agency provides emergency shelter and comprehensive supportive services to homeless men, women, families with children, and youth in various facilities in Santa Clara County. EHC operates a youth shelter in San Jose, the winter shelters at the National Guard Armories in Sunnyvale and Gilroy, the regional Reception Center in San Jose, the Sobrato Family Living Center in Santa Clara, and various other transitional housing programs in the County. Supportive services include prepared meals, counseling, child care, transportation, case management, job counseling, and skills workshops to help secure housing and/or employment. Priori _ty Need: Shelter and services for persons who are homeless Discussion: Current contract objectives are being met. This agency provides the majority of homeless shelter services in Santa Clara County, and is an important resource for persons from the Pa!o Alto area. Agency anticipates providing 2,800 person/shelter nights to 50 unduplicated homeless persons from Palo Alto. Palo Alto Housing Corporation (PAHC) - SRO Resident Support Services Barker Hotel: 439 Emerson Street, Palo Alto, CA 94301 Alma Place: 753 Alma Street, Palo Alto, CA 94301 FY 06/07 2005/06 Funding $23,000 2006/07 Funding Request $59,867 Staff/CAC Recommendation $20,270 Proposal: The Palo Alto Housing Corporation maintains two SRO properties: the Barker Hotel and Alma Place. The 26-unit Barker Hotel serves a very low-income population of residents with a history ofhomelessness and special needs. Alma Place is a 106-unit SRO apartment building that serves very low-income residents. Two service coordinators, one at Alma Place and one at Barker Hotel, provide support to individual tenants as needs or problems arise, and on an on-going basis. These intensive case management and supportive services play a vital role in helping the residents maintain their stability and housing. Priority Need: Prevention of homelessness Discussion: Current contract objectives are being met. The service program has dramatically reduced turnover and eviction rates. PAHC requested additional funding in fiscal year 2006/07 because they have a grant for the program that will expire in 2005/06. Staff and the CAC do not recommend in increase in funding in the second year because of the limited funds available in the public services category. The City would need to reduce funding to other programs in order to increase PAHC’s funding. 3. Catholic Charities- Long-Term Care Ombudsman 2625 Zanker Road, San Jose, CA 95134 FY 06/07 2005/06 Funding $6,000 2006/07 Funding Request $8,940 Staff/CAC Recommendation $5,800 Proposal: Agency provides confidential advocacy and complaint investigation services to the approximately 897 residents in Palo Alto’s licensed long-term care facilities. Program beneficiaries are the frail, chronically ill, primarily elderly residents in Palo Alto’s licensed skilled nursing and residential care facilities. Agency staff and trained community volunteer ombudsmen visit residents on a regular basis and as special circumstances dictate (i.e., in response to specific, complaints). Agency staff and volunteers investigate complaints, including allegations of abuse and neglect, seek fair resolution to problems, and promote residents’ rights for quality care and quality of life in the long-term care setting. Priority Need: Supportive services for lower-income persons. Discussion: The Ombudsman Program services are not duplicated by any other agency, and provide an important presence in long-term care facilities. Local volunteers are utilized to provide the majority of site visits. Agency proposes contacting/interviewing 495 Palo Alto residents and conducting 40 complaint investigations. 4. Shelter Network - Mid-Peninsula Housing Programs Haven Family House: 260 Van Buren Road, Menlo Park, CA 94025 First Step for Families: 325 Villa Terrace, San Mateo, CA 94402 Maple Street Shelter: 1580 -A Maple Street, Redwood City, CA 94063 FY 06/07 2005/06 Funding $19,000 2006/07 Funding Request $30,000 Staff/CAC Recommendation $16,375 2 Proposal: Shelter Network operates several facilities that provide housing opportunities-for the homeless. Haven Family House.and First Step for Families provide transitional housing and a comprehensive array of supportive services to homeless families in newly constructed facilities located in Menlo Park and San Mateo respectively. An on-site licensed childcare facility is also available at Haven Family House and First Step for Families. In addition, the Maple Street Shelter serves single adults in Redwood City. Shelter Network’s housing programs allow residents to re- connect with permanent housing, jobs, and the skills and resources necessary to break the cycle of homelessness. PrioriW Need: Transitional housing and supportive services for homeless families with children. Discussion: Shelter Network’s facilities are important resources for homeless individuals and families with children from northern Santa Clara County. Shelter NetwOrk expects to serve 20-30 single adults and three to eight families. 5.Clara-Mateo Alliance (CMA)/InnVision - Family Shelter Wing 795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025 FY 06/07 2005/06 Funding $21,392 2006/07 Funding Request $25,000 Staff/CAC Recommendation $18,725 Proposal: The Clara-Mateo Alliance has 18 emergency shelter beds and six transitional housing units devoted to homeless families. Annually, 125-160 individuals are provided with housing and supportive services. The agency is proposing to serve a minimum of three homeless families with children from Palo Alto. In addition, they will provide extensive on-site supportive services to all program participants, including food, c!othing and medical care. Priority Need: Shelter, supportive services, and transitional housing for homeless families, and a Day Center for homeless women and children. Discussion: This project is an important resource for the growing number of homeless families with children in northern Santa Clara County. The family program has accomplished its goals of serving Palo Alto families in the last fiscal year. 6.Clara-Mateo Alliance/InnVision - Shelter and Supportive Services 795 Willow Road, Bldg: 323-D, Menlo Park, CA 94025 2005/06 Funding 2006/07 Funding Request Staff/CAC Recommendation FY 06/07 $21,000 $35,000 $18,322 Proposal: Clara-Mateo Alliance (CMA) provides a 63-bed shelter for homeless individuals and couples, and thirty transitional housing rooms for graduates of the shelter. They provide supportive services aimed at increasing self-sufficiency and finding and maintaining stable housing. The shelter targets the under-served populations such as homeless persons with disabilities, mental illness, psychiatric disorders, and chronic substanceabusers. Priority Need: Shelter and services for persons who are homeless Discussion: This program is an important link in the county’s homeless continuum of care. It has been operating since 1997 and serves individuals and couples. It is a collaborative effort with the Veterans Administration, other shelter and service providers and the counties of Santa Clara and San Mateo. The facility serves the homeless sub-populations with some of the greatest needs. It is anticipated that the total program will provide 1,000 nights of care to a minimum of 50 Palo Alto individuals and couples. The adult program is meeting its current objectives for the current fiscal year. 7.Urban Ministry of Palo Alto/InnVision - Drop-In Center 400 Mitchell Lane, Palo Alto 94301 2005/06 Funding FY 06/07 $24,000 2006/07 Funding Request $30,000 Staff/CAC Recommendation $21,250 Proposal: Agency-proposes to provide basic survival services to the local homeles.s population. Services include a light breakfast, used clothing, toiletries, phone, mail, messages, bus passes, and referrals to other agencies. Urban Ministry caseworkers are available to assist clients find shelter, medical care, employment and to help with other problems. The Drop-In Center operates from the back of the Red Cross building at 400 Mitchell Lane in Palo Alto and serves an average of 150 persons each weekday morning. In addition, the Hotel de Zink Emergency Shelter serves 15-17 persons each night. Priority Need: Shelter and services for persons who are homeless. Discussion: Urban Ministry/InnVision has exceeded their goals in the current fiscal year. This program is an important community resource in that it provides many basic support services to homeless and low-income persons. 8.St. Vincent de Paul Society- Dayworker Emergency Services 2044 Old Middlefield Way, Mountain View, CA 94043 FY 06/07 2005/06 Funding -0- 2006/07 Funding Request $10,000 Staff/CAC Recommendation -0- Proposal: The St. Vincent de Paul Society formerly operated the St. Joseph the Worker Center that was formed in Mountain View to connect day laborers with employers. The St. Vincent de Paul Society is no longer operating the day worker center and they are seeking funding to provide 4 emergency services for dayworkers, such as food, clothing and housing assistance out of an existing location where they currently conduct business. Priority Need: Supportive services for lower-income persons. Discussion: Staff and the CAC do not recommend funding for this program because they are no longer operating the dayworker center. They are also requesting 52% of the program costs from the City of Palo Alto, while they only propose to serve 5 Palo Alto individuals throughout the fiscal year. 9.Mid-Peninsula Alano Club - MPAC Operations 1155 Reed Avenue, Sunnyvale, CA 94086 FY 06/07 2005/06 Funding $5,000 2006/07 Funding Request $16,000 Staff/CACRecommendation $5,000 Proposal: The Mid-Peninsula Alano Club (MPAC) provides a physical location where those in and or seeking recovery from addictive substances may gather, meet, share and support one another. MPAC exists to provide a safe, clean and sober environment for all those seeking and/or in recovery from addictive substances, welcoming all their friends, family members and guests. MPAC is proposing to expand its outreach and services to more people with the assistance from the City. They currently have 141 dues-paying members and another 250-300 people frequent the club every month. Priority Need: Supportive services for lower-income persons. Discussion: Staff and the CAC recommend partial funding for this program. MPAC is the only center of its kind in the local area and provides an important service to the community. FAIR HOUSING/ADMINISTRATION 9. Project Sentinel - Fair Housing Services FY 06/07 2005/06 Funding $26,800 2006/07 Funding Request $28,140 Staff/CAC Recommendation $26,800 Proposal: The City of Palo Alto issued a joint Request for Proposals (RFP) to Provide Fair Housing Services for portions of Santa Clara County with the Cities of Gilroy, Mountain View and Sunnyvale. Project Sentinel was selected through this process. They will provide investigation, counseling and legal referrals for victims of housing discrimination; community education and outreach regarding fair housing law and practices; research, analyses, and reporting for City staff and officials regarding fair housing practices. Priori _ty Need: Fair Housing Services Discussion: This is the second time that the cities are collaborating on fair housing services. A joint RFP was issued in 2003 for a two-year contract and the jurisdictions jointly selected one fair housing provider. The Department of Housing and Urban Development (HUD) regulations require CDBG entitlement jurisdiction.s to affirmatively further fair housing choice. 10.City of Palo Alto - Department of Planning and Community Environment 250 Hamilton Avenue, Palo Alto, CA 94301 FY 06/07 2005/06 Funding $138,056 2006/07 Funding Request $155,000 Staff/CAC Recommendation $124,536 Proposal: Funding is requested to reimburse the City General Fund for costs related to th~ overall management, coordination, monitoring and evaluation of the CDBG Program, including oversight of public service contracts, data gathering, studies, analysis, plan preparation, and the identification of actions for implementation of plans. Priority Need: CDBG Program Administration and support Discussion: A reimbursement of $124,536 from grant funds is well within the 20% administrative cap and helps alleviate General Fund budgeting constraints. Staff and the CAC would like to continue to fund fair housing services at the same level, which has caused a reduction in funds allocated to CDBG administration. In order to offset some of the costs charged, to CDBG administration, the City will build in a project delivery set-aside for each capital project to compensate for staff time spent on each particular project. CAPITAL AND/OR HOUSING PROJECTS 11.Community Housing Inc. - Lytton Gardens New Elevator Project 437 Webster Street, Palo Alto, CA 94301 FY 06/07 2005/06 Funding $86,575 for countertop lavatory project 2006/07 Funding Request $150,000 Staff/CAC Recommendation -0- Proposal: Lytton Gardens owns and operates several facilities that provide affordable housing for seniors. In addition, they operate a skilled nursing facility that provides various medical sen, ices. They are proposing to build a new elevator at the skilled nursing facility. There is one other main elevator in the facility that i~ used to transport patients, as well as a smaller elevator that is used as needed. Priorit’g Need: Rehabilitation of a public facility Discussion: Staff and. CAC do not recommend funding for this project because not all of the patients qualify as low-income. The primary goal of the CDBG program is to provide services that benefit low-income persons. In addition, the rehabilitation of a public facility is a lower priority in the City’s adopted 2005-2010 Consolidated Plan. The top priority in the Consolidated Plan is to provide assistance to activities that support affordable housing, such as acquisition, rehabilitation and preservation. 12.Economic and Social Opportunities - Housing and Energy Services Program 1445 Oakland Road, San Jose, CA 95112 FY 06/07 2005/06 Funding $60,000 2006/07 Funding Request $60,000 Staff/CAC Recommendation $63,300 Proposal: Agency proposes to assist a minimum of 26 low-income Palo Alto households with home improvement services. These services are designed to identify and improve hazardous conditions in homes, improve accessibility and use for seniors and individuals with disabilities, improve energy efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future. Priority Need: Conservation Of energy and improved accessibility for individuals with physical disabilities Discussion: Staff and the CAC recommend that this project receive $63,300 in funding. $3,300 of the funding allocation will be used to compensate for staff time spent on carrying out the project. Energy efficiency and the modification of units for those who are physically disabled are identified as priorities in the City’s Housing Element Update, 1999-2006. Economic and Social Opportunities addresses these needs by providing services designed to improve safety and use, enhance affordability and preserve affordable housing. 13.Stevenson House-Windo~v and Door Retrofit 455 E. Charleston Road, Palo Alto, CA 94306 FY 06/07 2005/06 Funding -0- 2006/07 Funding Request $351,799 Staff/CAC Recommendation $370,000 Proposal: Stevenson House provides 120 units of affordable rental housing to low-income seniors. Since seniors are living longer, and there are almost no assisted living facilities for low-income seniors, Stevenson House is attempting to provide supportive services to their residents to help them maintain their independence as long as possible. Their proposal is to retrofit the windows and doors in the "B" building and in the common areas. Priority Need: Rehabilitation of affordable rental housing Discussion: Staffand the CAC recommend $370,000 in flmding for this project. Of the $370,000 recommended allocation, $18,201 will be retained by the City for costs associated with administering the project. The window and door retrofit is an important project because it will allow for a reduction in energy costs and will enable residents to better enjoy their units and the common areas. 14. Stevenson House - Fire Alarm Project 455 E. Charleston Road, Palo Alto, CA 94306 FY 06/07 2005/06 Funding -0- 2006/07 Funding Request $45,100 Staff/CAC Recommendation $47,646 Proposal: Stevenson House provides 120 units of affordable rental housing to low-income seniors. Since seniors are living longer, and there are almost no assisted living facilities for low-income seniors, Stevenson House is attempting to provide supportive services to their residents to help them maintain their independence as long as possible. Their proposal is to upgrade the existing ftre alarm system. Priority Need: Rehabilitation of affordable rental housing Discussion: Staff and the CAC recommend $47,646 in funding for this project. Of the $47,646 recommended allocation, $2,546 will be retained by the City for costs associated with administering the project. The fire alarm upgrade is an important project because it will bring the existing fire alarm up to date with current regulations. 15.City of Palo Alto - CDBG Housing Development Fund 250 Hamilton Avenue, Palo Alto, CA 94301 FY 06/07 2005/06 Funding $401,816 2006/07 Funding Request $250,000 Staff/CAC Recommendation $250,000 Proposal: Community Working Group will be acquiring an existing 10-unit apartment complex located at 2507-2533 Alma Street to be occupied by income-eligible tenants. The project consists of 8 studio apartments and two one-bedroom apartments. The creation of affordable housing is the top priority in the City’s 2005-2010 Consolidated Plan. Priority Need: Affordable rental housing Discussion: City Council approved a total allocation of $1,150,000 for this project on March 6, 2006. It is anticipated that the property will be acquired by Community Working Group in April 2006. Of the $1,150,000 allocation, $900,000 will come from the CDBG housing development fund and $250,000 will be loaned to the CDBG housing fund from the City commercial housing fund in order to complete the transaction. When fiscal year 2006/07 CDBG funding becomes available, the $250,000 .will be allocated to the CDBG housing fund in order to reimburse the City commercial housing fund. ATTACHMENT D U.S. Department of Housing and Urban Development San Francisco Regional Office - Region IX 600 Harrison Street San Francisco, California 94107-1387 www.hud.g0v espanol.hud.gov Honorable Judy Kleinberg Mayor of Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Dear Mayor Kleinberg: Subject: Annual Community Assessment for the 2004-05 Fiscal Year City of Palo Alto, California We have completed our Annual Community Assessment (ACA) of the City of Palo Alto’s performance in implementing its FY 2004 Annual Action Plan objectives, based on the City’s Five-year Consolidated Plan. The period covered by this assessment is July 1,2004 - June 30, 2005. As a result of this assessment, we have determined that the City has the continuing capacity to implement and administer the Community Development Block Grant (CDBG) Program and is in compliance with the statutes and regulations governing the program. This determination is based upon the information available to thisoffice through the City’s Consolidated Annual Performance and Evaluation Report and program performance data contained in HUD’s Integrated Distribution and Information System (IDIS). The lack of affordable housing is the number one priority need identified in the City of Palo Alto’s five-year Consolidated Plan. The City has one of the most expensive housing markets in the country, due in large part to the lack of land suitable for new housing. We wish to commend the City of Palo Alto for.its strong financial and political support of affordable housing, as well as its successful collaboration with non-profit organizations and other local government entities during FY2004, which will generate new affordable housing benefiting individuals and families who are low and moderate income or homeless. The City has continued its successful effort to leverage local and State funded housing trust funds, as well as CDBG acquisition funds, in order to finance new affordable housing developments. During this fifth year of its five-year Consolidated Plan, the City and its non-profit partners completed the construction and occupancy of the Oak Court Apartments, a 52- unit multi-family rental project. Another significant affordable housing project began construction during the reporting year, namely the Opportunity Center. This project comprises 89 units of permanent and transitional housing, as well as a multi-service center to provide services to homeless adults and families, and is scheduled for- completion in the Fall of 2006. The combined number of 142 affordable housing units generated by these projects will exceed the City’s Consolidated Plan housing goal of 125 units. 2 The City of Palo Alto continued to provide significant local support to non-profit organizations, with almost $1.3 million in General Funds, .plus approximately $290,000 in CDBG funding, to support the delivery of a variety of essential public services and the improvement and operation of senior, homeless and neighborhood facilities. The number of low and moderate-income persons, individuals with special needs and the homeless population, which benefited from City General Funds plus other local resources and CDBG funds, was estimated at over 11,900 and 8,300 persons, respectively. Based on our review of annual performance information and IDIS system data, we have determined that CDBG Program statutory and regulatory requirements were met during the reporting period, in terms of benefit to low and moderate-income persons and the timeliness of expenditure of funds. The Department is working with national public interest groups that represent grantees and OMB to develop a new Performance Measurement framework for formula programs, administered by the Office of Community Planning and Development. The intention is to try to better capture the significant national accomplishments of outstanding programs. This effort should complement locally focused performance measurement systems. We are pleased that the City is considering developing a locally focused performance measurement system, which will help ascertain how well programs and projects are meeting identified needs, provide useful information to improve performance and better target resources. We would be glad to work with City staff and also utilize our contracted technical assistance providers to assist you regarding the development of a performance measurement system, as well as to address any other technical assistance needs. We look forward to continuing to work in partnership with the City of Palo Alto, in order to help the City continue to achieve its immediate and long-range affordable housing and community development goals and objectives. Sincerely, Steven B. Sachs Director, Community Planning and Development Division Frank Benest, City Manager Steve Enslie, Director Department of Planning and Community Environment Julie Caporgno, Advance Planning Manager, v~lPlanning Division/DPCEoiza E. Murillo-Garcia, CDBG Program Coordinator, PD-DPCE Cathy Siegel, Housing Coordinator., PD-DPCE CITY OF PALO ALTO Housing and Community Development DRAFT 2006/2007 ACTION PLAN Annual Update of the City’s Consolidated Plan for the Period July 1, 2005 to June 30, 2010 Public Review Period March 27, 2006 - April 27, 2006 Prepared by Department of Planning & Community Environment 250 Hamilton Avenue Palo Alto, California 94301 Steve Emslie, Director For Information, Please Contact: Eloiza Murillo-Garcia, CDBG Planner Planning Division, City of Palo Alto (650) 329-2428 Executive Summary This one year Action Plan describes the eligible activities that the City intends to undertake in fiscal year 2006/07 to address the needs and implement the strategies identified in the City’s Consolidated Plan for the period July 1, 2005 to June 30, 2010. It describes the activities that the City will fund with Community Development Block Grant (CDBG) funds in fiscal year 2006/07 to address priority housing and non-housing community development needs and to affirmatively further fair housing choice. It serves as the City’s application for federal funds under the Department of Housing and Urban Development (HUD) formula grant programs. Performance Measurement Obiectives and Outcomes HUD has recently issued guidance on the development of a new performance measurement system to be implemented in the fiscal year 2006/07 Action Plan. The purpose of the performance measurement system is to better capture data for the activities that are undertaken with CDBG funding. As a result of the new policy, the City will be required to identify both an objective and outcome for each proposed activity. The City intends to provide funding for various activities, which are consistent with City’s adopted Consolidated Plan. The City will undertake several housing activities which all meet the objective of providing decent affordable housing. Housing projects that are planned for 2006/07 include assistance to the Community Working Group for the acquisition of an affordable housing complex, which has the outcome providing new housing affordability by creating decent affordable housing. Stevenson House will undertake two projects, a window and door retrofit project and a fire alarm project, which will both have the outcome of improving sustainability by enhancing decent affordable housing. Finally, Economic and Social Opportunities will provide minor home repairs and accessibility upgrades which will have the outcome of improving the availability of decent affordable housing. The City will also provide funding for several public services projects, which all have the objective of creating a suitable living environment, and the outcome of these projects will be that the accessibility to a suitable living environment or decent affordable housing will be enhanced. The proposed public service projects are: Emergency Housing Consortium - Emergency Shelter; Palo Alto Housing Corporation - SRO Resident Support Services; InnVision/Clara-Mateo Alliance - Family Housing Program; InnVision/Clara-Mateo Alliance - Adult and Couples Housing Program; Shelter Network - Mid-Peninsula Housing Program; InnVision/Urban Ministry - Drop-In Center; Mid-Peninsula Alano Club - program operations; and Catholic Charities - Long-Term Care Ombudsman program. Evaluation of Past Performance The City has historically allocated CDBG funds to activities that benefit low and moderate income persons, with the top priority being increasing affordability housing opportunities in the City. The City has one of the most expensive housing markets in the country, due to the lack of available land. In recent years, the City has assisted in the creation of 142 affordable housing units, with Oak Court apartments, a 52-unit affordable housing complex and the Opportunity Center, a multi-service center with 89 units of affordable housing. Oak Court is fully occupied and it is estimated that the Opportunity Center will be open for occupancy in the summer of 2006. The City intends to continue to support the creation of affordable housing and to maintain the existing affordable housing stock, through preservation or rehabilitation activities. Citizen Participation The City of Palo Alto has an adopted Citizen Participation Plan that provides for a seven- member CDBG Citizens Advisory Committee (CAC). The CAC process encourages public participation in the CDBG allocation and evaluation review process. Fiscal year 2006-2007 is the second year of a two-year funding cycle. The CAC met on January 20 and 25, February 3, 8, 15, 22 and March 3 and 24, 2005 to review and evaluate the applications, interview the applicant agencies, review the Consolidated Plan priorities, and make funding recommendations on the applications submitted for 2005/06 CDBG funding and preliminary recommendations for applications submitted for 2006/07 CDBG funding. In addition, the CAC met on January 26 and 31 and February 7 and 16 in 2006. The CAC also toured some of the applicant agencies on February 4, 2005 and February 3, 2006. The City made the draft Action Plan available for public review from March 27 to April 27, 2006. The City placed an ad in the Palo Alto Weekly on March 22, 2006 and also sent numerous notifications to interested parties. The draft Action Plan was available at the Planning Department in City Hall and was also posted to the City’s CDBG website for the duration of the public review period. The public was also invited to attend two public hearings, one before ~he City’s finance committee on April 4 and one before the full City Council on May 1. There was one comment received and it is attached to this report as Appendix E. RESOURCES AVAILABLE The City of Palo Alto encourages local non-profit housing and public service agencies to pursue all available public and private funding sources in order to achieve the goals of the Consolidated Plan. Most projects and activities secure funding from a variety of sources including private donations, charitable foundations, and church and community fundraising to leverage federal, state and local funding. Federal Resources Community Development Block Grant (CDBG) Funds The City receives CDBG funds as an entitlement grant through the U.S. Department of Housing and Urban Development (HUD). In fiscal year 2006/07, the City will allocate $995,784 in CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. The amount of the City’s 2006/07 CDBG entitlement grant from HUD is estimated to be $711,680, estimated program income is $45,000 and reallocated funds total $160,785. Program income is income directly generated from the use of CDBG funds that is returned to the CDBG program and reallocated to new activities. Estimated FY 2006/067 CDBG Entitlement Grant $711,680 Program Income: Estimated Program Income 2006/07 (HIP) Estimated Program Income 2006/07 (PAHC) Excess Prior Year Program Income Reallocated Funds: Miscellaneous Reallocations TOTAL ALLOCATION 10,000 35,000 78,319 160,785 $995,784 Loan repayments from the City’s former Housing Improvement Program (HIP) single-family rehabilitation loan program are estimated to be $10,000 for next year. Income from the Palo Alto Housing Corporation (PAHC) is also estimated to be $35,000 for next year. PAHC funds are collected when rental income exceeds expenses on properties acquired or rehabilitated with CDBG funds. Prior year program income funds are funds received in prior years that were in excess of the estimated program income amounts, and were not previously allocated to projects. HOME Program The City of Palo Alto is not an entitlement grantee under the federal HOME program and thus does not receive a direct grant of HOME Program funds from HUD. The only way to access HOME funds for housing projects located within the City of Palo Alto is for the City, or eligible nonprofit organizations to apply to the State of California for the funds in an annual competition. Due to excessive demand for the State’s HOME allocation, and rating criteria that does not favor areas like Palo Alto, it is difficult to secure an award. In the past, the State has limited the maximum HOME award per project to one million dollars. When a Notice of Funding Availability (NOFA) is published, the City evaluates all potentially suitable projects to determine whether or not to apply for a HOME grant. State, Local and Other Resources City Affordable Housing Fund (formerly the Housing Reserve) The Affordable Housing Fund is a local housing trust fund established by the City Council to provide financial assistance for the development, acquisition and rehabilitation of housing affordable to extremely low, very low, low and moderate-income households. The Affordable Housing Fund is the umbrella name for five distinct sub-funds for affordable housing. The two primary local housing trust funds were formerly known as the Housing Reserve Fund, but on October 27, 2003, the City Council approved new guidelines for all of the City’s affordable housing funds including the ones composed of federal housing monies; the funds were renamed as part of those changes. The Affordable Housing Fund is now composed of: ,/Commercial Housing Fund - this fund is used primarily to increase the number of new affordable housing units for Palo Alto’s work force. It is funded with mitigation fees required from developers of commercial and industrial projects. As of April 30, 2006, the Commercial Fund had an available balance of approximately $2,000,000. Residential Housing Fund - this fund can be used for acquisition, rehabilitation, new construction and predevelopment of low-income housing. It is funded with mitigation fees provided under Palo Alto’s Below Market Rate (BMR) housing program from residential developers, and money from other miscellaneous sources, such as proceeds from the sale or lease of City property. It is also used to pay for administration and consultant contracts necessary to carry out the BMR program. As of April 30, 2006, the Residential Fund had an available balance of approximately $200,000. CDBG Housing Fund - The purpose of the CDBG Housing Fund is to have funds available on an ongoing basis to utilize when necessary to facilitate the development, rehabilitation and preservation of low-income housing. Housing development oppommities, especially opportunities to acquire land for new housing construction, may come up at any time throughout the year and, due to the nature of the real estate market; a quick response is frequently necessary. CDBG Housing Funds may be used to pay for costs associated with the investigation of the feasibility of sites or properties for potential acquisition by the City, or nonprofit organizations, for affordable housing. These costs usually need to be paid prior to a project being officially created in the budget. Typically these costs are for appraisals, environmental studies and soil testing, title reports and conceptual design studies. HOME Program Income Fund - the City has only one HOME funded project, the Barker Hotel Single Room Occupancy. This project was fimded in part with a $1 million 1992 HOME grant from the State. The City’s funding is in the form a long-term, deferred loan and there has not been any program income from that loan. Below Market Rate (BMR) Emergency Fund - This fund was authorized by Council in September 2002 in order to provide funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. The actual process for initiating an application for City Affordable Housing Funds will vary depending on the particular circumstances. Usually, a nonprofit sponsor will apply to the Department of Planning and Community Environment for housing subsidy funds when they are in negotiation for a particular site. At other times, the City may issue a Request for Proposals once it has secured or identified a potential housing site. The Planning Department will present recommendations for each project together with a proposed funding package to the City Council for approval. In almost all cases, funds will be provided as a loan secured by the property. The repayment terms and interest rate have to be tailored to the particular project since affordable housing typically is financed from multiple sources withspecific requirements. 4 Housing Trust of Santa Clara County_ (HTSCC) The HTSCC is a public/private initiative, dedicated to creating more affordable housing in Santa Clara County, using a revolving loan fund and grant-making program to complement and leverage other housing resources. The City of Palo Alto contributed $500,000 toward the initial $20 million investment capitalization and provided an additional commitment of $150,000 in fiscal years 2004-05 and 2005-06. The City’s contribution will be used exclusively for qualifying affordable housing projects located within the City. Multifamily Housing Program (MHP) The Multifamily Housing Program (MHP) is a relatively new source of funding for affordable housing as a result of the passage of Proposition 46 in November 2002. The purpose of this program is to provide low-interest loans to developers of affordable housing. The MHP General funds may be used for multifamily rental and transitional housing projects involving new construction, rehabilitation, or conversion of nonresidential structures. MHP Supportive Housing funds may be used for multifamily rental housing projects involving new construction, rehabilitation, acquisition and rehabilitation, or conversion of nonresidential structures for permanent rental housing only. Palo Alto Housing Corporation and Community Working Group/Housing Authority of Santa Clara County (Opportunity Center) applied for and received funds since the inception of the program. Multifamily Housing Program (MHP) Local Housing Trust Funds Another component of Proposition 46, the housing bond approved by voters in November 2002, is funding for new and existing local housing trust funds. A local housing trust fund is a public or private partnership created to receive on-going revenues for affordable housing production. Local revenues supporting the fund can include commercial impact fees, ongoing fundraising, or local taxes such as Transient Occupancy Tax, as well as local government’s general funds. The City of Palo Alto applied for and received an award of $1,000,000 in February 2004. The City’s $1,000,000 award will be used to help subsidize a future rental housing project, either new construction or acquisition and rehabilitation, to be determined in the next two years by the City Council. Santa Clara County Affordable Housing Fund (AHF) The Santa Clara County Board of Supervisors created the Office of Affordable Housing in July 2002 and established a set-aside of $18.6 million for projects. One of the objectives for this fund is to leverage funding to affordable housing projects. The Community Working Group (Opportunity Center) received one of five awards in the first round of funding. Section 8 The Housing Authority of the County of Santa Clara administers the Section 8 program countywide. In the previous fiscal year, a total of 294 households received assistance through the Section 8 program. Of those, 251 were housing choice vouchers, 11 were Shelter Plus Care vouchers and 32 were part of the moderate rehabilitation program. The City anticipates that Section 8 vouchers will continue to be available to Palo Alto residents in fiscal year 2006/07. 5 Low-Income Housing Tax Credits The California Tax Credit Allocation Committee (CTCAC) holds two application cycles each year. Typically, the first cycle is held in March and the second is held in July. Local non-profits apply directly to the CTCAC for these funds when they have identified a project. McKinney-Vento Homeless Assistance Each year between 35 and 40 non-profits in Santa Clara County receive approximately $9 million for programs assisting the homeless. These funds benefit programs on a countywide basis. STATE, LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE HOUSING Activity Acq uisition STATE, LOCAL, and PUBLIC Commercial Housing Fund Residential Housing X Fund State MHP X City Owned Land MCC Program Housing Bond Trust X Housing Trust of X Santa Clara County Santa Clara County X Housing Authority - Section 8 County Department of Social Services Santa Clara County X Affordable Housing Fund PRIVATE RESOURCES BMR Rental & Owner Program Private Lenders: AHP X Nonprofit Developers X Private Foundations and Churches Rehab X X X X X X X X New Construction X X X X X X X X X Home Buyer Assistance X X X X X Rental Assistance X X X Homeless Assistance X X X X X Homeless Prevention X x X X X 6 Leveraging and Matching Requirements The City of Palo Alto will leverage federal and private housing funds to the greatest extent feasible consistent with the goals identified in the Consolidated Plan. The City will encourage housing project sponsors to seek private financing and private grants, and to fully utilize other state and federal housing development subsidies such as the low-income housing tax credit program. The City will also utilize its local Affordable Housing Fund, as appropriate, to leverage federal and private housing funds and to provide any required matching funds. Where eligible, CDBG Housing Funds could be used as a portion of the matching requirement for federal housing programs. Geographic Distribution The Map attached to this report shows the location of all the proposed activities for fiscal year 2006/07. The City considers the provision of all types of housing assistance on a citywide basis consistent with the policies of the Comprehensive Plan. The City does not have specific target areas for housing activities, but attempts to provide housing affordable to lower-income persons throughout the City. There are only a few areas that are considered to have a concentration of minority populations or low-income residents in Palo Alto. There are three census tracts in Palo Alto that have a concentration of Asian populations, primarily in the northern part of the City and there are also four Census tracts in the northwestern portion of the City that have a concentration of lower income households. In addition, Census tract 5107 in the Olive-West Meadow/Ventura area is an area of considerably greater population and housing diversity than that which is found in most parts of Palo Alto. The 2000 census identified this tract as having the highest minority concentration of any non-split City tract. More than half the housing units are in multiple-unit (3+) structures, and nearly two-thirds are renter-occupied. Block Group 2 has a large proportion of modest rental housing, a relatively high proportion of minority and ethnic groups, and 48.6% of the households are below the CDBG income eligibility limits. The entire tract is above HUD’s first quartile threshold of 27.4 percent for area benefit activities. Specific efforts have been coordinated in the City’s Community Service and Police Departments to focus on activities and services in the Ventura neighborhood. A number of City-sponsored programs and activities serving low- and very low-income persons have either been undertaken or proposed. A police substation was opened in the area with the goal of improving contact with the community. Changes to Strategy HUD has informed the City of Palo Alto of a change of policy relating to the timely expenditure of CDBG funds. The federal regulatory standard is that no more than 1.5 times a jurisdiction’s annual entitlement grant amount may remain in its letter of credit 60 days prior to the end of the program year. HUD now intends to employ monetary sanctions against jurisdictions that exceed the regulatory standard. Failure to meet the expenditure standard by May 1, 2007 will cause HUD to reduce the City’s next grant by 100% of the amount in excess of 1.5 times the annual grant. For this reason, all funding allocations for 2006/07 were scrutinized to insure the readiness of the program or project to move forward and expend funds in a timely manner. This stricter enforcement of the expenditure standard will increase the difficulty in providing funds for affordable housing since housing projects involving new construction or acquisition of apartments typically take more time and planning and are subject to more delays than other capital projects. It may create situations where lower priority activities will be undertaken instead of higher priority activities simply because they are easier to accomplish and ready to proceed. The City Council approved the change to a two-year CDBG funding cycle beginning with the 2003/04 fiscal year and this is reflected in the amendment of the Citizen Participation Plan adopted by the City Council in December 2002. Many cities in the Bay Area have adopted extended CDBG funding cycles and find them to be an effective tool to streamline "process" and provide administrative relief to both city and non-profit staff. Palo Alto’s Human Services Division adopted a two-year funding cycle for the Human Services Resource Allocation Process (HSRAP) in fiscal years 2001/02 and 2002/03. Their experience has been positive and they continued the two-year funding cycle for the period 2005/06 through 2006/07. Coordination of the CDBG and HSRAP funding processes is essential to the effective delivery of local human service funding. Collaboration between the non-profit agencies and the City’s funding sources avoids confusion, duplication of effort, and ensures that the highest identified community needs are met. The two-year process provides the opportunity for City and non- profit staff to undertake longer-term strategic planning and to maximize available funding resources. Relative Allocation Priorities Program Year 2006 will be the second year of the City’s five year Consolidated Plan for the period 2005-2010. The table below sets forth the five year goals of that Plan and the one-year goals of the FY 2006/07 Annual Action Plan. Summary of Specific Housing/Community Development Objectives (HUD Table 2C) Goal #Specific Objectives Performance Expected Units Measure 5 Year 2006/07 Goal Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 15 Goal 17 Goal 18 Goal 19 Rental Housing Objectives Increase the supply of rental housing Preserve existing affordable rental housing Conserve the condition of existing rental housing Owner Housing Objectives Continue Below Market Rate Program Continue to participate in MCC program Rehabilitation loans to L/M Income Owners Minor Home Repairs and Accessibility Upgrades Public Service Objectives Assist seniors in long-term care Services to prevent homelessness (incl. in Goal 8) Food and meal programs Public Facilities Promote community-based services through public facilities Units Units Units Units Units Units Units Individuals Individuals Individuals Facilities 125 72 150 20 15 Emergencies only 130 600 8,000 8OO 2 10 0 120 24 3 As needed 26 495 4,166 325 0 Each proposed activity of the 2006/2007 fiscal year is listed below in relation to the strategy it intends to address in the adopted 2005-2010 Consolidated Plan. Goal # 1: Increase the Supply of Affordable Rental Housing by 125 units Proposed 2006/07 Activity: CDBG Housing Development Fund - Alma Garden Apartments Acquisition 2507-2533 Alma Street Palo Alto, CA 94301 2006 Goal: 10 housing units Goal #2: Preserve the Supply of 72 units of Affordable Rental Housing and Immediate Risk of Conversion to Market-Rate Housing Proposed 2006/07 Activity: There are no units at immediate risk of conversion to market-rate housing at this time. Goal #3: Conserve the Condition of Existing Affordable Rental Housing Proposed 2006/07 Activities: Stevenson House - Window and Door Retrofit Project and Fire Alarm Project 455 E. Charleston Road Palo Alto, CA 94306 2006 Goal: 120 units Goal #4: Continue the Below Market Rate (BMR) Program Proposed 2006/07 Activity: City of Palo Alto BMR Program Units are located citywide 2006 Goal: 24 units Goal #5: Continue to Participate in the Mortgage Credit Certificate Program Proposed 2006/07 Activity: The City of Palo Alto will continue to participate in the mortgage credit certificate program. 2006 Goal: 3 households Goal #6: Provide for Rehabilitation Loans to Low- and Moderate-Income Single Family Homeowners in Emergency or Crisis Situations Only Proposed 2006/07 Activity: This program will be available on an as-needed basis and only if CDBG funding is available. Goal #7: Provide for Minor Home Repairs and Accessibility Upgrades to Low- and Moderate-Income Homeowners Proposed 2006/07 Activity: Economic and Social Opportunities - Housing and Energy Services Program Office: 1445 Oakland Road San Jose, CA 95112 Activity will be citywide. 2006 Goal: 26 housing units Goal #8: Provide Assistance and Supportive Services to Low- and Very Low-Income Palo Alto Residents to keep them from Becoming Homeless Proposed 2006/07 Activities: Palo Alto Community Childcare - Childcare Subsidies 3990 Ventura Court Palo Alto, CA 2006 Goal: 50 households Project Sentinel - Mediation Program 430 Sherman Avenue, Suite 308 Palo Alto, CA 94306 2006 Goal: 150 households 10 Second Harvest Food Bank 750 Curmer Avenue San Jose, CA 95125 2006 Goal: 175 persons Avenidas - Senior Home Repair and Senior Housing Counseling 450 Bryant Street Palo Alto, CA 94301 2006 Goal: 1,600 persons La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2006 Goal: 150 persons Palo Alto Housing Corporation - Barker Hotel and Alma Place Counseling Program 725 Alma Street Palo Alto, CA 94301 2006 Goal: 131 households Mayview Community Clinic - Health Care Services 270 Grant Avenue Palo Alto, CA 94306 2006 Goal: 100 persons Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive Services with a Housing Component Proposed 2006/07 Activity: The City will continue to support the Opportunity Center. Goal #10: Continue to Support the Operating (and/or rehabilitation) Costs of Shelters and Transitional Housing Programs that Serve the Palo Alto Area Proposed 2006/07 Activities: Clara-Mateo Alliance - Adult Program and Family Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2006 Goal: Operating Costs Haven House 260 Van Buren Rd. Menlo Park, CA 94025 2006 Goal: Operating Costs 11 First Step for Families 325 Villa Terrace San Mateo, CA 94402 2006 Goal: Operating Costs Maple Street Shelter 1580-A Maple Street Redwood City, CA 94063 2006 Goal: Operating Costs Emergency Housing Consortium 2665 North First Street, Suite 210 San Jose, CA 95134 2006 Goal: Operating Costs Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for the Homeless Proposed 2006/07 Activity: The City will continue to support mental health outreach and supportive services. Goal #12: Continue to Cooperate on County~vide Approaches to the Issues of Homelessness Proposed 2006/07 Activity: The City will continue to cooperate on countywide approaches to the issues of homeless as they arise. Goal #13: Support the Activities of Area Non-Profit Organizations the Provide Transitional Housing and Supportive Services to the Homeless Proposed 2006/07 Activity: Clara-Mateo Alliance - Adult Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2006 Goal: 6 transitional housing units Clara-Mateo Alliance - Adult Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2006 Goal: 3 housing units Shelter Network - Mid Peninsula Housing Program 1450 Chapin Avenue, 2nd Floor Burlingame, CA 94010 Various locations in the Mid-Peninsula 2006 Goal: 3-8 housing units 12 Goal #14: Continue to Support the Shelter Plus Care Program in Palo Alto and Increase the Units Available in the Program to Include Families with Children Proposed 2006/07 Activity: There are seven Shelter Plus Care units available at the Barker Hotel and 10 units available at Alma Place. Goal #15: Assist Seniors in Long-Term Care Facilities Proposed 2006/07 Activity: Catholic Charities - Long-Term Care Ombudsman Program 2625 Zanker Road, Suite 200 San Jose, CA 95134-2107 2006 Goal: 495 Persons Goal #16: Provide Support to Accessible Transportation Services Proposed 2006/07 Activity: Continue to support transportation services in the City, including the Palo Alto Shuttle. Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8) Proposed 2006/07 Activities: Clara-Mateo Alliance - Adult/Couples Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2006 Goal: 550 People Clara-Mateo Alliance - Family Housing Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2006 Goal: 160 People Shelter Network - Mid Peninsula Housing Program 1450 Chapin Avenue, 2nd Floor Burlingame, CA 94010 Various locations in the Mid-Peninsula 2006 Goal: 500 People InnVision/Urban Ministry Palo Alto - Drop-In Center 400 Mitchell Lane Palo Alto, CA 94301 2006 Goal: 550 People Emergency Housing Consortium - Palo Alto Homes Program 2665 North First Street, Ste. 210 San Jose, CA 95134 2006 Goal: 50 People 13 Goal #18: Continue to Support Food and Meal Programs Proposed 2006/07 Activities: Second Harvest Food Bank 750 Curtner Avenue San Jose, CA 95125 2006 Goal: 175 persons La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2006 Goal: 150 persons Goal #19: Promote a Vital System of Community-Based Human Services through Facilities to House those Services Proposed 2006/07 Activity: The City does not plan on undertaking a facility project this fiscal year. 2006/2007 PROJECTS AND ACTIVITIES TO BE UNDERTAKEN All of the projects and activities to be undertaken with the 2006/2007 CDBG cycle funding allocation address the priority housing and community development needs identified in the Consolidated Plan. The attached Appendix C "Proposed Projects" describes each project or service activity, the 2006/07 funds allocated, the expected project beneficiaries, and the HUD national objective. Housing Activities The City of Palo Alto’s Consolidated Plan and Housing Element both emphasize the great need for affordable housing for low- and very low-income households in Palo Alto. While all types of housing are needed in the City, the Consolidated Plan focuses on the creation and preservation of rental housing with an emphasis on housing for very low- and low-income persons especially those who are homeless, at-risk of becoming homeless, those with special needs, and families with children. City of Palo Alto Housing Strategy The Consolidated Plan proposes a five-year strategy to develop 125 newly constructed rental units over the 2005-2010 planning period. The 125 units would be affordable to households in the very low- or low-income categories and would meet a portion of the housing production goals mandated by the Association of Bay Area Governments (ABAG). The City has allocated fiscal year 2005/06 and 2006/07 CDBG funding to the Community Working Group for the acquisition of Alma Gardens Apartments. Alma Gardens is an existing 10-unit apartment complex that consists of 8 studio units and 2 one-bedroom units in Palo Alto. The project will be operated on a non-profit basis as housing for very low-income and low- 14 income residents of Palo Alto. CWG hopes to redevelop the project at a higher density in the future, while still maintaining its level of affordability. The acquisition of existing multi-family rental housing is a high priority in the Consolidated Plan. Although, this project does not consist of new construction, it is possible that the project will expand in the future to increase the unit density. $900,000 was allocated from the CDBG housing development fund in fiscal year 2005/06 and $250,000 will be allocated from fiscal year 2006/07 CDBG funding. Community Working Group (CWG) is also the sponsor and joint developer (with the Housing Authority of Santa Clara County) of the Oppommity Center for homeless individuals and families. The Opportunity Center will provide emergency and day services for the homeless and at-risk population including showers, laundry, lockers, clothing closet, food, information and referral, social services and case management. Above the ground floor services center, 89 units of transitional and permanent housing for singles and families will be constructed. This mixed- use facility will house existing homeless and emergency services that are now being provided in inadequate and scattered locations in Palo Alto and the surrounding area. The Oppommity Center is currently under construction and the grand opening for the Center is projected for the summer of 2006. CDBG Housing Development Fund - $250,000 Objective:Providing Decent Affordable Housing Outcome:Affordability for the purpose of providing decent affordable housing. Performance Measure: 10 units of affordable housing The City issued a special Request for Proposals (RFP) for the acquisition of a housing site in order to allocate the funds that were available in this fund. The project that was selected to be funded through the CDBG housing development fund will be undertaken by the Community Working Group. The City has allocated a total of $1,150,000 to the Community Working Group for the acquisition of Alma Garden Apartments, a 10-unit apartment complex located at 2507-2533 Alma Street in Palo Alto. Of the total amount allocated, $900,000 came from funds previously allocated to the CDBG housing development fund and $250,000 came from the City commercial housing fund. The City is proposing to reimburse the City Commercial housing fund in the amount of $250,000 for pre-award costs relating to the acquisition of the Alma Garden Apartments. Stevenson House - Window and Door Retrofit - $370,000 Objective:Providing Decent Affordable Housing Outcome:Sustainability for the propose of providing decent affordable housing Performance Measure: 120 will have been sustained Stevenson House provides 120 units of affordable housing units to senior citizens in Palo Alto. The building was built in 1968 and some of the units and the common areas still have the original windows and doors. The existing windows and doors are difficult to operate for the 15 elderly tenants and are not energy efficient. The window and door retrofit will enable Stevenson House’s residents to fully utilize their windows and sliding glass doors. In addition, the energy efficient windows will result in a cost savings for Stevenson House’s heating and cooling costs. Stevenson House - Fire Alarm Project - $47,646 Objective:Providing Decent Affordable Housing Outcome:Sustainability for the purpose of providing decent affordable housing Performance Measure: 120 units will have been sustained Stevenson House has requested additional funding for a new fire alarm system. The existing system is the original system that was installed when Stevenson House first opened its doors 38 years ago. The existing fire alarm system does not meet current code requirements. In addition, the company that installed the system is no longer in operation and it is difficult to obtain replacement t3arts. The fire alarm upgrade will address an important health and safety issue for Stevenson House’s residents. Economic and Social Opportunities - Housing and Energy Services Progxam - $63,300 Objective:Providing Decent Affordable Housing Outcome:Accessibility for the purpose of providing decent affordable housing Performance Measure: 26 households will have improved accessibility to decent affordable housing Economic and Social Oppommities (ESO) was established in 1970 and provides a variety of services to the County’s low-income and needy community. ESO proposes to assist a minimum of 26 low-income Palo Alto individuals with home improvement services. These services are designed to identify and improve hazardous conditions in homes, improve accessibility and use for seniors and individuals with disabilities, improve energy efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future. Proposed Public Service Activities CDBG public service funds will be targeted to the following programs in fiscal year 2006/07: $ 7,760 to Emergency Housing Consortium - Emergency Shelter Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of providing decent affordable housing Performance Measure: 50 persons will have new accessibility to decent affordable housing $20,270 to Palo Alto Housing Corporation - SRO Tenant Counseling Program Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of creating suitable living environments Performance Measure: 131 persons will have improved accessibility to a suitable living environment 16 $18,725 to InnVision/Clara-Mateo Alliance - Family Housing Program Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of providing decent affordable housing Performance Measure: 160 persons will have new accessibility to decent affordable housing $18,322 to InnVision/Clara-Mateo Alliance - Adult Singles/Couples Housing Program Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of providing decent affordable housing Performance Measure: 550 persons will have new accessibility to decent affordable housing $16,375 to Shelter Network - Mid-Peninsula Housing Program Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of providing decent affordable housing Performance Measure: 500 persons will have new accessibility to decent affordable housing $21,250 to InnVision/Urban Ministry - Drop-In Center Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of creating suitable living environments Performance Measure: 550 persons will have improved accessibility to a suitable living environment $ 5,000 to Mid-Peninsula Alano Club - MPAC Operations Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of creating suitable living environment Performance Measure: 200 persons will have accessibility to suitable living environment $ 5,800 to Catholic Charities - Long-Term Care Ombudsman Program Objective:Providing a suitable living environment Outcome:Accessibility for the purpose of providing decent affordable housing Performance Measure: 495 persons will have improved accessibility to decent affordable housing Human Services In addition to the CDBG public service funds, the City will provide $1,214,910 from the General Fund in support of human services through its Human Service Resource Allocation Process (HSRAP). The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies whose programs serve the needs of seniors, children, youth and families, persons with disabilities, and those who are homeless, or at risk of homelessness. A variety of supported programs provide mental and physical health care services, tenant!landlord mediation, subsidized child care, support for victims of domestic violence and rape, senior services, adolescent counseling, emergency food, nutritional services, and recreational activities. 17 Services and Resources Targeted to Homeless Persons The following services for persons in the Palo Alto community who are very low-income, homeless, or at-risk of becoming homeless, are provided with supplemental funding from the City of Palo Alto either with CDBG or HSRAP funding. The goal of all the services listed is to prevent homelessness, help move people out of homelessness and to reduce the number of persons below the poverty line. Alliance for Community Care: Mental health outreach and service linkage for Palo Alto’s adult homeless population. A casework counselor works in the Palo Alto area to help low-income, disabled adults access existing mental health and other community resources. City of Palo Alto Seasonal Jobs Program: Designates several temporary, seasonal employment opportunities in various City of Palo Alto Departments, for persons who are homeless and unemployed. The program is targeted to individuals who are motivated to improve their situations and re-enter the work force. Clara-Mateo Alliance Shelter: Shelter and transitional housing with casework counseling and supportive services for homeless individuals, couples and families who are actively working toward achieving their goals and overcoming homelessness. Community Technology Alliance: Shelter hotline and voicemail services for homeless individuals and families. The voicemail service helps case-managed clients attain individual goals such as securing health care, housing or employment. A countywide housing information and referral website was developed and is maintained to assist service providers and housing seekers. Emergency Housing Consortium: Shelter and supportive services to homeless persons at the National Guard Armory in Surmyvale, the San Jose Reception Center, and other transitional housing programs in Santa Clara County operated by the agency. Supportive services include meals, childcare, health care, information and referral, and job and life-skills training. Shelter Network - Mid-Peninsula Housing Program: Transitional housing with supportive services for previously homeless families with children at Haven House and First Step for Families transitional housing facilities. Also provides a shelter to serve single adults in Redwood City. La Comida de California: Provision of affordable, nutritious meals to Palo Alto’s elderly population at various locations throughout the City, including: Avenidas Senior Center, Stevenson House and Cubberley Community Center. Mavfield Community Clinic: Basic primary health care services and health education and referral services to uninsured low-income and homeless individuals from the Palo Alto area. Palo Alto Housing Corporation - SRO Hotel Tenant Counseling: Counseling and case- management services for the low-income residents and prospective residents of single room 18 occupancy hotels in Palo Alto including the Barker Hotel at 439 Emerson Street. Many SRO hotel residents have a history of homelessness and special needs. The program plays a vital role in helping the residents maintain their stability and housing. Second Harvest Food Bank: Distributes supplemental groceries and food services to very low- income seniors and people with disabilities through the Operation Brown Bag Program. Groceries are distributed weekly at the Ventura School site to income eligible participants. Support Network for Battered Women: Emergency shelter and supportive services for victims of domestic violence, primarily battered women and their children. Supportive services include food, transportation, counseling, and legal services. Victims often must deal with issues of homelessness in the context of a violent domestic situation. Urban Ministry of Palo Alto/InnVision: Services for very-low income or homeless persons including bagged groceries, hot meals, emergency shelter, information and referral, case- management and money management (payee) programs. The Urban Ministry staffs the outdoor morning drop-in center located behind the Red Cross building at 400 Mitchell Lane. Bagged groceries are distributed daily at the Downtown Food Closet located at 425 Hamilton Avenue in Palo Alto. The Urban Ministry has merged with InnVision, a very experienced provider of services, emergency shelter and transitional housing. Transition from Homelessness to Permanent Housing Shelter Plus Care (S + C): The S + C program is administered through the Office of the Santa Clara County Homeless Coordinator. It is a federal grant program that provides Section 8 rental assistance to participating landlords on behalf of eligible tenants for a period of up to five years. Extensive support services are a necessary and required component of the program that targets people who are homeless and disabled. There are 18 housing units available for S + C clients in Palo Alto. The Barker Hotel: The Barker is owned and operated by the Palo Alto Housing Corporation (PAHC), and has 25 units of permanent Single Room Occupancy (SRO) housing at rents affordable to persons with incomes between 30% and 50% of the median income. Rents range from $325 to $433 per month based on size and whether they have their own bathrooms. Five of the Barker’s units are fully accessible by wheelchair users. Priority for occupancy is for persons who are homeless (either unsheltered or sheltered), persons with disabilities, and persons with extremely low-incomes. Eight of the units are available with tenant based Section 8 subsidies through the Shelter Plus Care program. Alma Place: Alma Place is located at 753 Alma Street in Palo Alto, and is also owned and operated by the Palo Alto Housing Corporation. The project, a 106-unit single room occupancy resident hotel, is affordable to low- and very low-income persons due to the layering of subsidies from City Housing Reserve funds, a private bank loan, an Affordable Housing Program (AHP) Grant, and an award of low-income housing tax credits. The studio apartments rent for $375 to $535 per month and are available to persons earning below 40% of the median income. Ten of 19 the units are available with tenant based Section 8 rental subsidies through the Shelter Plus Care program. Haven Family House: Shelter Network of San Mateo County owns and operates this transitional housing facility for families with children located at 260 Van Buren Road in Menlo Park. Families reside in one and two bedroom apartments for two to four months depending on their individual case plans and situations. Comprehensive case management, support services, and on-site licensed childcare, plus one year of follow-up counseling are available to help families break the cycle ofhomelessness. First Step for Families: Shelter Network of San Mateo County owns and operates this transitional housing facility for families with children located at 325 Villa Terrace in San Mateo. This is a newly constructed facility that provides comprehensive case management, support services, and on-site licensed childcare. Analysis of Impediments to Fair Housing Choice The City of Palo Alto completed an Analysis of Impediments to Fair Housing Choice on February 6, 1996. That report identified a lack of housing options affordable to persons of low- and moderate-income as the major impediment to housing choice. Housing discrimination was also identified as an impediment, with cases based on familial status the most often reported. However, the number of cases of discrimination against persons with physical and mental disabilities has also been increasing. The City of Palo Alto joined with other Santa Clara County entitlement jurisdictions to undertake a countywide fair housing study that includes 2000 census data and was completed in January 2003. The study includes a demographic analysis, a lending analysis, a review of government programs and policies, a survey of Santa Clara residents and service organizations, an assessment of the delivery of fair housing services, and recommendations for new strategies. The information from the study was incorporated in the revisions to the Analysis of Impediments to Fair Housing Choice adopted by the City Council in May 2003. Palo Alto plans to undertake the following actions to foster and maintain affordable housing and to address housing discrimination during the 2006/07 fiscal year: ¢"Provide tenant/landlord counseling and mediation services for Palo Alto residents through the Palo Alto Mediation Program (Project Sentinel). ,/Support the Countywide website that lists subsidized housing oppommities, wait lists and vacancies. ,/ Provide CDBG funding to the Housing Development Fund for the potential development of a new affordable housing site in Palo Alto. ¢" Continue to support the Human Relations Commission in their documentation and investigation of hate crimes, and in their support of diversity, disability, and affordable housing issues. ¢"Continue to monitor the provision of fair housing services to ensure that adequate services are being provided, and that services are provided cost effectively. 20 Work with the Santa Clara County CDBG entitlement cities in their effort to implement any recommended improvements to the delivery of services on a regional basis. Provide funding to a fair housing provider, funded by and selected jointly by the cities of Gilroy, Palo Alto, Mountain View, and Sunnyvale to reduce discrimination in housing by: a. Investigating cases of housing discrimination b. Conducting consultations with persons who believe they have been discriminated against c. Maintaining a pool of trained testers for investigations and conducting training’s d. Maintaining a panel of attorneys for referral and coordinating meetings for participating attorneys e.Rtmning ads in the Palo Alto Weekly, San Jose Mercury News, and other media outlets f. Distributing fair housing brochures g. Running public service announcements for local radio/TV broadcasts h. Making educational presentations to the commtmity i.Monitoring and reporting on rental sites j.Showing educational videos on housing discrimination on local cable TV k.Organizing an event for National Fair Housing Month Amendments to Plan Prior to the submission of any substantial change in the proposed use of funds, citizens will be provided reasonable notice of, and the oppommity to comment on, any proposed Action Plan amendment(s). Urgent Need Activities In the event of a local, state or federal disaster declaration for areas within the boundaries of the City of Palo Alto, the City reserves the right to use CDBG or other available federal funds to abate immediate and necessary hazards. Such funds may be used for staff efforts, loans, or outright grants to affected parties, as approved by City Council and allowable under the pertinent Federal Guidelines. Monitoring of Activities The City of Palo Alto follows the monitoring requirements for the use of Federal funds as directed by HUD. The City’s Department of Planning and Community Environment monitors its housing production goals and all the activities carried out to further the goals of the Consolidated Plan. For activities funded by CDBG and HOME programs, an annual performance report is completed based on HUD regulations and in accordance with HUD standards. The Consolidated Annual Performance and Evaluation Report (CAPER) is available to the Citizens Advisory Committee and the general public for comments during a 15-day review period. This report identifies the actual dollars expended, the beneficiaries served, and the program goals achieved. The City requires subrecipients of CDBG funds to submit semi-annual and annual performance reports outlining the extent to which program goals have been achieved, and the number of 21 beneficiaries who have been served. Program performance is measured against the specific program objectives outlined in the contract scope of services. Additionally, City staff will monitor each subrecipient, as necessary; to insure compliance with all regulations governing their administrative, financial, and programmatic operations, and to make sure the subrecipients achieve their performance objectives within the prescribed schedule and budget. Coordination The CDBG entitlement cities (Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino, Gilroy, Milpitas, San Jose), and the Urban County of Santa Clara continue to meet on a regular schedule to discuss issues of mutual concern and to share information and strategies for addressing affordable housing, homelessness, fair housing, and other issues of common concern. The meetings have helped the participants better understand the County and nonprofit social service structure within the County, and provide input into the development of the new Santa Clara County Office of Affordable Housing and its operations. The City of Palo Alto continues to collaborate with neighboring jurisdictions in both Santa Clara and San Mateo County on issues relating to homelessness in northern Santa Clara County and southern San Mateo County. The City actively participates in the Santa Clara County Housing and Homeless Collaborative. As a result of the Countywide Fair Housing Study, the cities of Gilroy, Palo Alto, Mountain View, and Sunnyvale have jointly selected fair housing services from a single provider to serve the four cities. In addition a Countywide Fair Housing Taskforce has been formed and includes representatives from entitlement jurisdictions, fair housing agencies, and other non-profit organizations. A staff person from the City of Palo Alto is the representative for the North County cities (Mountain View, Palo Alto and Sunnyvale). The Quality Housing and Work Responsibility Act of 1998 requires public housing authorities (PHA’s) to develop and implement five-year plans that describe their long range goals and a strategy for achieving the identified goals. These plans provide details about the PHA’s operations, program participants, programs and services. The PHA is required to ensure that their plan is consistent with any applicable Consolidated Plans for jurisdictions in which the PHA is located. This new requirement allows for some collaborative discussions on the role of the Santa Clara County Housing Authority in meeting the housing needs of low-income persons in Palo Alto. To ensure a coordinated approach to the City’s human service funding efforts, CDBG and Human Services staff meet to review and discuss applications received through both the CDBG and HSRAP processes. Additionally, a member of the Human Relations Commission serves on the CDBG Citizens Advisory Committee to avoid duplication of effort and to assure collaboration within Palo Alto. 22 APPENDIX A Application for Federal Assistance Form 424 APPLICATION FOR FEDERAL ASSISTANCE 12. DATE SUBMITTED i05/1~i 212006 1.ApplicationTYPE OF SUBMISSION:Pre-application DATE RECEIVED BY STATE _~. Construction ~ Construction DATE RECEIVED BY FEDERAL AGENCY [] Non-Construction [~ Non-Construction 5. APPLICANT INFORMATION Legal Name: City of PaiD Alto Organizational DUNS:959938929 Address: Street: 250 Hamilton Avenue, MS:5A Cit : P~’~ Alto County: Santa Clara State:I Zip CodeCA[ 94301 Count.ry: United States 6. EMPLOYER IDENTIFICATION NUMBER (EIN): 8. TYPE OF APPLICATION: ~ New ~7~ Continuation f Revision, enter appropriate letter(s) in box(es) See back of form for description of letters.) [_.] :3ther (specify) Revision 10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: TITLE (Name of Program):Community Developmen{ Block Grant (CDBG) 12. AREAS AFFECTED BY PROJECT (Cities, Counties, States, etc.). City of PaiD Alto, County of Santa Clara, and State of California 13. PROPOSED PROJECT Start Date: 07/01/2006 15. ESTIMATED FUNDING: a. Federal Ending Date: 06/30/2006 b. Applicant c. State d. Local e. Other Reprogrammed prior year f. Program Income g. TOTAL 711,680 160,785 123,319 " 995,784 Version 7/0: Applicant Identifier State Application Identifier Federal Ident fier Organizational Unit: Department:,Planning anD Community Environment Division:Planning Name and telephone number of person to be contacted on matters involving this application (give area code) Prefix:First Name:Ms.Jul e Middle Name Last NameCaporgno Suffix: Email: iulie.caporgno@cityofpaloalto.org Phone Number (give area code) Fax Number (give area code) (650) 329-2679 (650) 329-2154 7, TYPE OF APPLICANT: (See back of form for Application Types) C - Municipal Other (specify) 9. NAME OF FEDERAL AGENCY: U.S. Department of Housing and Urban Development 11. DESCRIPTIVE TITLE OF APPLICANT’S PROJECT: The City of Paid Alio’s Community Development Block Grant (CDBG) Program for fiscal year 2006/2007. 14. CONGRESSIONAL DISTRICTS OF: a. Applicant |b. Project 14th Congressional District ~14th Congressional District 16. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS? IF’[ THIS PREAPPLICATION/APPLICATION WAS MADEa.Yes.AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON DATE: b. No. ~ PROGRAM IS NOT COVERED BY E. O. 12372 r~OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW 17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? r~ Yes If "Yes" attach an explanation.~ No 18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLICATION/PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE ~,TTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED. a. Authorized Representative ~rre. fix First NameFrank Last Name Benest 3. TitleCity Manager -I. Signature of Authorized Representative Previous Edition Usable Authorized for Local Reproduction Middle Name ISuffix }c. Telephone Number (give area code) t(650) 329-2563~. Date Signed Standard Form 424 (Rev.9-2003 Prescribed by OMB Circular A-102 APPENDIX B Certifications CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug-flee workplace by: Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee’s workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2.Establishing an ongoing drug-free awareness program to inform employees about - (a) (b) (c) (d) The dangers of drug abuse in the workplace; Tl~e grantee’s policy of maintaining a drug-free workplace; Any available drug counseling, rehabilitation, and employee assistance programs; and The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; o Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1 ; Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - (a)Abide by the terms of the statement; and (b)Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; °Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - (a)Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b)Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1,2, 3, 4, 5 and 6. Anti-Lobbying -- To the best of the jurisdiction’s knowledge and belief: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or wilt be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 - It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date Title Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan - Its consolidated housing and community development plan identifies community development and housing needs.and specifies both short-term and long-term community development objectives that provide decent housing, expand, economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria: Maximum Feasible Priority.. With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); Overall Nenefit. The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) ~(~, (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; Special Assessments. It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section !08, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force - It has adopted and is enforcing: A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint -- Its activities concerning lead-based paint will comply with the requirements of 24 CFR Part 35, subparts A, B, J, K and R; Compliance with Laws -- It will comply with applicable laws. Signature/Authorized Official Date Title APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS: A.l,obbvin~ Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. B.Drug-Free Workplace Certification By signing and/or submitting this application or grant agreement, the grantee is providing the certification. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug- Free Workplace Act. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee’s drug-free workplace requirements. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check __ if there are workplaces on file that are not identified here. The certification with regard to the drug-free workplace is required by 24 CFR part 21. o Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common rule apply to this certification. Grantees’ attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (i) All "direct charge" employees; (ii) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and (iii) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee’s payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee’s payroll; or employees of subrecipients or subcontractors in covered workplaces). APPENDIX C Proposed Projects U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CPD CONSOLIDATED PLAN LISTING OF PROPOSED PROJECTS FY 2006/07 PUBLIC SERVICES PROJECTS Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01025-999 Catholic Charities - Long Term Care Ombudsman Program Public Services The program will receive, identify, investigate and resolve complaints, including violations of personal rights and allegations of elder abuse for primarily elderly long term care residents. 05 Public Services (General) 570.201 (e) 495 Elderly CDBG: $5,800 570.208(a)(2) - Low/Mod Limited Clientele 2625 Zanker Road, Ste. 200 San Jose, CA 95134 Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01018-999 Emergency Housing Consortium - Palo Alto HOMES Public Services Emergency shelter, transitional housing, and permanent supportive housing. Palo Alto HOMES has shifted its focus toward more single adults facing significant barriers to ending their homelessness, such as severe mental illness, substance abuse, chronic health conditions and/or physical disabilities. 05 Public Services (General) 570.201 (e) 50 People (General) CDBG: $7,760 570.208(a)(2) - LowiMod Limited Clientele 2665 North First Street, Ste. 210 San Jose, CA 95134 Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01076-999 InnVision/Clara-Mateo Alliance - Family Housing Program Public Services Shelter and transitional housing for homeless families with children. Provides a total of 18 emergency shelter beds and up to six units of transitional housing accommodating from 12- 18 parents and children at a given time. A 24-hour shelter is provided, along with 3 meals per day. 05 Public Services (General) 570.201 (e) 160 People (General) CDBG: $18,725 570.208(a)(2) - Low~od Limited Clientele 795 Willow Road, bldg. 323-D Menlo Park, CA 94025 Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01075-999 InnVisiordClara-Mateo Alliance - Adult!Couples Program Public Services Shelter and transitional housing for individuals and couples who are homeless. Clients include underserved populations such as homeless persons with disabilities, chronic substance abusers and severely mentally ill. 05 Public Services (General) 570.201 (e) 550 People (General) CDBG: $18,322 570.208(a)(2) - Low/Mod Limited Clientele 795 Willow Road, bldg. 323-D Menlo Park, CA 94025 Project ID Project Title Priority Description HUDMatrix Code/Title SR-01082-999 InnVision/Urban Ministry - Drop-In Center Public Services The program provides critical services for homeless Palo Alto residents. In addition to providing a hot breakfast, clients can also make phone calls, received mail, transportation vouchers and meet with case managers to work on a more long-term plan to address their issues. 05 Public Services (General) -2- Citation Accomplishments Funding Sources Eligibility Location 570.201 (e) 550 People (General) CDBG: $21,250 570.208(a)(2) - Low/Mod Limited Clientele 400 Mitchell Lane Palo Alto, CA 94301 Project ID Project Title Priority Description HUD Matrix Code/Title Citation 570.201 (e) Accomplishments 200 People (General) Funding Sources CDBG: $5,000 Eligibility 570.208(a)(1) - Low/Mod Area Location 1155 Reed Avenue, Unit E Sunnyvale, CA 94086 SR-01094-999 Mid-Peninsula Alano Club - MPAC Operations Public Services MPAC services an existing need by housing a safe, clean, sober and social environment wherein folks mutually care for, support, commiserate and help provide relief from addictive behaviors. 05 Public Services (General) Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01048-999 Palo Alto Housing Corp. - SRO Resident Support Services Public Services This program provides counseling and supportive case management services to low-income, homeless residents of single room occupancies (SROs). Barker Hotel and Alma Place serve the local community by housing people with a history ofhomelessness and other special needs. The majority of the residents have issues or receive services concerning: unemployment, mental health and alcohol/drug dependency. 05 Public Services (General) 570.201 (e) 131 People (General) CDBG: $20,270 570.208(a)(2) - Low/Mod Limited Clientele 439 Emerson Street and 753 Alma Street Palo Alto, CA 94301 -3- Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Locations SR-01079-999 Shelter Network - Midpeninsula Housing Program Public Services Transitional housing for homeless families and single adults. The program provides the basic necessities of shelter, food and clothing. Also provides comprehensive support services, such as case management, life skills training, job development and children’s services. 05 Public Services (General) 570.201 (e) 500 People (General) CDBG: $16,375 570.208(a)(2) - Low/Mod Limited Clientele 260 Van Buren Road Menlo Park, CA 94025 325 Villa Terrace San Mateo, CA 94402 1580-A Maple Street Redwood City, CA 94063 PLANNING ANI5 ADMINSTRATION Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01003-999 City of Palo Alto -Planning and Administration Planning and Administration Administrative costs for the overall management, coordination and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. 21 General Program Administration 570.206 N/A CDBG: $124,536 N/A 250 Hamilton Avenue Palo Alto, CA 94301 Project ID SR-01087-999 Project Title Project Sentinel - Fair Housing Services Priority Planning and Administration Description Agency provides investigations of complaints by testing, -4- interviews, surveys, and document review, counseling, and legal referral for victims of housing discrimination as well as community outreach and education regarding housing rights. HUD Matrix 21D Fair Housing Activities Code/Title Citation 570.206 Accomplishments 15 Households (General) Funding Sources CDBG: $26,800 Eligibility N/A Location 430 Sherman Avenue, Ste. 308 Palo Alto, CA 94306 CAPITAL PROJECTS Project ID Project Title Priority Description HUD Matrix Code/Title Citation Accomplishments Funding Sources Eligibility Location SR-01085-999 Economic and Social Opportunities - Housing and Energy Services Housing Agency provides home improvement services designed to identify and improve hazardous conditions in homes, improve accessibility and use for seniors and disabled individuals, improve energy efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future. 14A Rehab, Single-Unit Residential 570.202 26 Households CDBG: $63,300 570.208(a)(3) - Low/Mod Housing Citywide Project ID Project Title Priority Description HUD Matrix Code/Title Citation 570.202 TBD Stevenson House - Window and Door Retrofit Housing Stevenson House is a 120-unit senior housing complex which was built in 1968. Stevenson House is proposing to retrofit the windows and doors in their "B" building and all of their common areas. This will allow for a reduction in energy costs and will enable the residents to better enjoy their living environments. 14B Rehab, Multi-Unit Residential -5- Accomplishments Funding Sources Eligibility Location 120 Units CDBG: $370,000 570.208(a)(3) - LowiMod Housing 455 E. Charleston Road Palo Alto, CA 94306 Project ID Project Title Priority Description TBD Stevenson House - Fire Alarm Project Housing Stevenson House is a 120-unit senior housing complex which was built in 1968. Stevenson House is proposing to upgrade their existing fire alarm system. The upgrade will bring the existing code up to date with current regulations. This is necessary to ensure the health and safety of Stevenson House’s residents. 14B Rehab, Multi-Unit ResidentialHUD Matrix Code/Title Citation 570.202 Accomplishments 120 Units Funding Sources CDBG: $47,646 Eligibility 570.208(a)(3) - Low/Mod Housing Location 455 E. Charleston Road Palo Alto, CA 94306 Project ID TBD Project Title Community Working Group - Alma Street Apartments Acquisition Priority Housing Description This will involve the acquisition of an existing 10-unit apartment complex that will be occupied by low and very-low income tenants. HUD Matrix 14G Acquisition for rehabilitation Code/Title Citation 570.201 (a) Accomplishments 10 units Funding Sources CDBG: $250,000 Eligibility 570.208(a)(3) - Low/Mod Housing Location 2507-2533 Alma Street Palo Alto, CA 94301 -6- APPENDIX D Public Hearing Advertisement AFFIDAVIT OF PUBLICATION IN THE PALe ALTO WEEKLY 703.High St., Pale Alto, California 94301 (650) 326-8210 IN ¯THE SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SANTA CLARA NO. STATE OF CALIFORNIA COUNTY OF SANTA CLARA ss 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 eighteei~ years, and not a party to or interested in the above entitled matter, that was a~ and during all said times and still am the principal clerk of the publisher of the Pale Alto Weekly, a newspaper of general circulation published weekly in the city of Pale Alto in said County of Santa Clara, State of California; that said is and was at all times herein mentioned a newspaper of genera! 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 County 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 printed in black-face type not smaller than nonpareil, describing and expressing in general terms, the purport and character of the notice intended to be given; that said notice was published and printed in said newspaper on the following dates, to wit: Date of first publication in the Pale Alto Weekly I declare under penalty of perjury that the foregoing is true and correct. at Pa!o Alto, California. _~" . "--NOTICE OF PUBLIC REVIEW ,-~o~~.~ PERIOD AND PUBLIC HEARINGS ¯[~1’ ~.~’~ ONPALOALTO~SCOMMUNITY i:~*\~~ ~/J*J DEVELOPMENT BLOCK GRANT ~ - " ’ .. (CDBG) PROGRAM - - ¯-This is to notify the general public and other interested -" ...... partiesthat a 30-day public review period for the draft Annual Action Plan of .Pale Alto’s adopted Consolidated Plan. will begin on March 27, 2006 and end on April 27, 2006. The draft Anhual Action Plan describes the activities the City plans to fund under the 2006/2007 Community Development Block Grant (CDBG) Program~ These activities are intended to meet Pale Alto’s af- fordable housing and cqm~nunity development objectives descri- bed in the Consolidated Plan for the period2005-2010. Copies of the. draft Action Plaq will be availa!51e on March¯ 27~ 2006 at the Department of Planning and Community Environ- ment, 250 Hamilton Avenue, .5th Floor, Pao Alto, 0A"94301¯, on the City’s w-ebsite at www.cityofpaloalto.org/planning-comrriuni- ty/cdbg, or by calling EIoLza Murillo-Garcia, Associate Planne.r, CDBG Program, at 650~329-2428.. ’Interested.parties are en- couraged to submit written comments On the pioP0sed dr~ft AC~ tion Plan during the public review period, or .to comment at tile: public hearings and meetings desoribed below, " ..- . . -[he City Council will allocate & t6~alor $995,)84 in ~;DBG irig.: The amount -of the-ai3nual CDBG entitlemeht grant is $711,680, $123,319 is available [TOm program income received ir~¯ previous years or anticipated in fiscal yeaJ:.-2006/2007:, and }1~0,785 is available for reallocation to new activities., from CDBG funds received in previous years. Allof the proposed tivities are consistent with the CDBG program’s national objec- tive of giving priority .to activities which benefit low and very-low. ~ncome personF. The funds will be used :to fulfill the priority needs in the Consolidated Plan. ~- :. PublicHeaHngs and Meetin~, The City of Pale AltoFinance Committee will hold a Public- Hearingon April-.4~,. 2006 tO review the proposed CDBGfunding¯aJlocation~ (66-d~ear Action Plan) as recommend- ed by City Staff:and t~e ,~EJBGi~Citizens Advisory Committee. Th~ Public H~afi(~g-Will b~_.h~[d:at-7:00 p.m4 or as soon as pus- sible thereafter, in City Hall~ (~ouncil Chambers, 250 Hamilton Avehue, Palo~to. " - - . ¯ " . , The Palo Alto City Council will hold a Public Hearing on May 1, 2006 to adopt the 2006/2007 CDBG funding alloca’ tions (one ¥~ar Action Plan). The Public Headng will be held at 7:00 p:m., or as sqon as possible thereafter, in City Hall, Counci_____J ~,.250 Hamilton A£enue, Pale Alto. Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs, or Who would like ifi- formation on the City’s compliance with the Americans witli Dis- abilities Act(ADA) of 1990, may contact: Fred I~lerman, ADA Director, City of Pale Alto, 650-329-2550 (Voice) or 3294 199 (TDD) . APPENDIX E Public Comment April 15, 2006 ~ To: EloizaMurillo-Garcia, CDBG Planner, Planning Division, City of Palo Alto Fr: Jo Guttadauro, 3375 Alma Street, #358, Palo Alto 94306-3520 Re: Universal Design in Housing and "2006/2007 Action Plan" Thank you for sending the draft of the Action Plan. Last year on February 7 1 wrote about UD, but no reply was received. If you do not reply to this and--more importantly--obey existing laws, I willwrite to the AG. The CDR is urgi.ng me to do so because we, as citizens with disabilities, are tired of being treated like 7th-class citizens. Why does a city with a mayor who touts its excellence act so meanly and stupidlyto what is probably the largest minority? Why did one of its employees tell me that it’s too expensive to obey the laws. Why can Berkeley build an apartment complex with~all of its units accessible, and Palo Alto, which claims that it thinks outside the box, does not obey the laws and then have the head of the PAHC say she won’t consider such a concept because of my negativity. Doesn’t she realize that by having buildings~ with stairs she is not segregating just me but all~those with similar problems and those who may get them. Perhaps, as one of my childhood friends said at a recent lunch, she should break both legs. I believe that Helen Jones was right many years ago when she said, "They don’t want us here." We both served on the Architectural Barriers Committee in the ’70s. This came about when I pointed out to the city attorney that Palo Alto was not obeying H&S Code 19955. He tried to tell me that it was not clear to him what a public building was. One of my childhood friends is married to a former state senator. (By the way, none of the four friends who had lunch v~ith me last month has a disability, but each one has a family member with one.) She, and others, don’t understand why a city as rich as Palo Alto can’t afford to obey the laws. Suzanne Moore, author of SMART COMMUNITIES, said (CSPAN2, 4-I) that in America we can do anyth!ng--it’s a matter of priorities. Doesn’t anyone at city hall realize that anyone at any time can acquire a disability? Think of FDR, Christopher Reeve, Stephen Hawking. Perhaps the powers that be wouldn’t want to invite them to dinner. But I was invited to a friend’s home to have dinner with Tom Lehrer. When Burch was mayor, be said it was good to help the weak and helpless--in Louisiana. When he wanted my vote he lied about UD in order to get my vote. What about ~hos.e of us in Palo Alto who need help? My family moved to this city in 1948 and I have done a lot of volunteer work, including being a member of the Adult School’s Advisory Committee But then Henry Page wasn’t afraid of someone who was outspoken and smart. Now the city is going to study baby boome~.s. I’ve been saying for years, that they are coming (my baby brother was born in ’46), but the city has to "study" this phenomenon. Michela Alioto Pier said (."Forum," 3-14) that we put too many seniors and people with disabilities in institutions. ~’\ Avenidas gives lip service to "aging in place" Hillary Freeman said to "follow the money." Why are there at least~two builders on the PAHC board? The builders’ lobby is extremely powerful and they don’t like UD because they can make more money by remodeling ~en~t becomes~’.necessary. Our current mayor said in her State of the City speech that we strive for excellence and that she has visionary plans. One might be able to take her seriously if she didn’t praise Oak Court and Eve Agiewich, a lawyer who asked me to s.end her the pertinent laws more than two years ago. I did so but she never replied. The HRC is clueless when it comes to helping peoplewith disabilities and has shown itself to be downright hostile (re the tenth anniversary of the ADA) in the past. If two people from the DoJ can make a house call, why can’t anyone from city hall answer this question: After more than a quarter of a century of trYing to make you put your money where your mouth is, Why don’t I and people like me have safe and appropriate housing? Linda Slone, an HRC member who uses a wheelchair, had to move out of Palo Alto. In "War without end" (.SFC, 3-29)~ it was stated that almost as much as they missed their legs, soldiers missed camaraderie. That’s where visitability comes in. Except in cluelessPaloAlto.