Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Staff Report 410-06
City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: NOVEMBER 13, 2006 CMR: 410:06 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FOR FISCAL YEAR 2005/06 This is an informational report and no Council action is required. BACKGROUND The preparation and submittal of a Consolidated Annual Performance and Evaluation Report (CAPER) is a requirement of the U.S. Department of Housing and Urban Development for the receipt of Federal Community Development Block Grant (CDBG) funds. The attached document was submitted to HUD on September 28, 2006, following the required 15-day public review period. It is being provided to the Council for informational purposes only. DISCUSSION The CAPER provides a summary of the resources available and the programmatic accomplishments in affordable housing and community development activities during the 2005/06 fiscal year. It evaluates the actions taken during the year to implement the strategies and objectives described in the Consolidated Plan for the period July 1, 2005 to June 30, 2010, and the progress made in addressing identified priority needs. Summary of Accomplishments CDBG funds were used to acquire the Alma Garden Apartments, which added 10 units of affordable housing to the housing stock during the fiscal year. A rehabilitation project was completed at Stevenson House, which included an upgraded hot water pipe system and a new walk-in freezer. CDBG funds were also used to provide minor home repairs and accessibility upgrades to 53 low-income households in the City. In addition, the rehabilitation of 49 kitchens in Lytton Gardens’ assisted living facility was completed this fiscal year. All of the public service activities were carried out as anticipated. CDBG funds were used principally for agencies providing services to homeless, Very-low income or elderly persons. Some of the agencies funded were Shelter Network, Urban Ministry/InnVision, and the Palo CMR: 410:06 Page 1 of 2 Alto Housing Corporation. These services significantly expanded the service and shelter opportunities for homeless persons and those atarisk of homelessness. Project Sentinel provided fair housing advocacy and complaint investigation services for those who believed they had experienced discriminatory treatment. The total investment of CDBG funds in Palo Alto during fiscal year 2005/06 was $1,482,120. Of that amount, $127,392 went toward public service activities, $164,856 went toward fair housing and administration activities and $1,189,872 was expended on housing and other capital improvement projects. ATTACHMENTS Attachment A: 2005/06 CAPER PREPARED BY: Eloiza Murillo-Garcia, CDBG Planner DEPARTMENT REVIEW~ JULIE CABOR, GNO Advance Planning Manager CITY MANAGER APPROVAL :EMIL~H~~S~ Assistant City Manager cc:CDBG Citizens Advisory Committee Palo Alto Human Relations Commission Catholic Charities Clara-Mateo Alliance/InnVision Community Housing Alliance Economic and Social Opportunities Emergency Housing Consortium Lytton Gardens Mid-Peninsula Alano Club Palo Alto Housing Corporation Project Sentinel Shelter Network Stevenson House Urban Ministry/InnVision CMR: 410:06 Page 2 of 2 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER) July 1, 2005 through June 30, 2006 CITY OF PALO ALTO CALIFORNIA Prepared By: Department of Planning and Community Environment Public Review and Comment Period: September 5 - 19, 2006 For Submittal to HUD: September 28, 2006 For information, contact: Eloiza Murillo-Garcia, CDBG Planner (650) 329-2428, or Catherine Siegel, Housing Coordinator (650) 329-2108 TABLE OF CONTENTS PART I. INTRODUCTION .........................................................................................................1 A. Description of Report .................................................................................................................2 B. Description of Public Review Process .......................................................................................2 C. Overview of Identified Needs and Priorities ..............................................................................3 PART II. AFFORDABLE HOUSING .......................................................................................4 A. Resources .................................................................................................................................5 1. Resources Available within the City of Palo Alto .........................................................5 a. Community Development Block Grant (CDBG) Funds .....................................5 b. Local Housing Funds .....................................................................................5-6 c. HOME Investment Partnership Act Funds .........................................................6 d. Multi-family Housing Program (MHP) Funds ...................................................6 e. Redevelopment Funds ........................................................................................6 f. Public Housing ...................................: ...............................................................6 2. Other Resources Obtained by Nonprofits and Others ...................................................7 a.HUD Section 8 - Moderate Rehabilitation Program .........................................7 b.HUD Section 8 - Shelter Plus Care ....................................................................7 c.HUD Tenant Based Section 8 Rental Assistance ..............................................7 The Housing Authority of the County of Santa Clara Section 8 Housing Choice Vouchers Issued (Table) ..................................................8 B. Accomplishments ............................................................................" ..........................................9 1. Programmatic Accomplishments ....................................................................................9 a. New Construction Rental Housing ..................... ................................................9 Community Working Group - Opportunity Center Project b. Rehabilitation of Existing Rental Housing ......................................10-11 Stevenson House Economic and Social Opportunities Lytton Gardens c. Housing Acquisition ...............................................................10-11 d. Below Market Rate (BMR) Ownership and Rental Programs .........................11 e. Rehabilitation of Existing Owner Occupied Single Family Homes .................12 2. Persons and Households Assisted with Housing ..........................................................12 Summary of Housing Accomplishments (HUD Table 1A) ...................................12-13 C. Assessment of Performance ..................................................................................................14 1. Evaluation of Progress in Meeting 2005/06 Goals .................................................14-15 2. Barriers to Fulfilling Housing Strategies ................................................................15-16 a. Federal or State Barriers ...................................................................................16 b. Barriers Related to Local Housing Market Conditions ..............................16-17 c. Discussion of Most Serious Barriers .................................................................17 3. Actions to Address Obstacles .......................................................................................18 a. CDBG Housing Development Fund .................................................................18 b. Housing Trust Fund ..........................................................................................18 4. Adjustments or Improvements to Affordable Housing Strategies ................................18 a. Public Policies .............................................................................................18-20 b. Development Impact Fees for Housing ............................................................20 PART III: COMMUNITY DEVELOPMENT ............: ............................................................21 A. Resources Available ...............................................~ ...............................................................22 1. City of Palo Alto Non-Housing Community Development Resources .........................22 a. Federal Funds ....................................................................................................22 b. Local Funds .................................................................................................22-23 c. Leveraging ........................................................................................................23 B. Accomplishments ...................................................................................................................23 1. Summary of Accomplishments with CDBG Funds ...............................................23-24 2. Summary of Community Development Accomplishments (HUD Table 3-1) .....24-26 3. Summary of Accomplishments, Palo Alto General Fund Money ...............................26 4. Summary of Accomplishments with Hamilton Public Benefit Funds ....................26-27 5. Actions Taken to Affirmatively Further Fair Housing ...........................................27-29 6. Actions Taken to Address Needs of Homeless Persons ...............................................29 a. Shelter Plus Care (SPC) ..............................................................................29-30 b. Community Working Group .............................................................................30 c. Employment Opportunities ...............................................................................30 d. Homeless Services ......................................................................................31-32 7. Other Actions .........: ......................................................................................................32 a. Lead Based Paint Hazard Reduction .................................................................32 b. Intergovemmental Cooperation ..................................................................32-33 c. Actions to Ensure CDBG Compliance ................................................, .............33 8. Changes to Annual Action Plan .....................................i ..............................................33 C. Assessment of Performance ..................................................................................................34 1. Evaluation of Progress in Meeting Annual Community Development Goals .......34-38 2. Barriers to Fulfilling Strategies .....................................................................................38 3. Adjustments to Community Development Strategies ...................................................39 4. Performance Measurement System Status ....................................................................39 PART IV: APPENDIX ...............................................................................................................40 A.Copy of Ad and Public Review Notice for CAPER B.Summary of Funding Priorities C.Grantee Performance Financial Report for Fiscal Year 2005/06 PART I, INTRODUCTION PART I. INTRODUCTION A. Description of Report The U. S. Department of Housing and Urban Development (HUD) has created a grants management and reporting system to implement the concept of consolidated planning. The consolidated planning system is intended to relate and link identified needs within a community to the federal and local resources available to meet those needs, and to strengthen partnerships among all levels of government and the private sector. The annual reporting portion of this system is known as the Consolidated Annual Performance and Evaluation Report (CAPER). Preparation and submittal of the CAPER is a condition for the City (and nonprofit organizations within the City) to apply for federal community development and housing assistance funds such as Community Development Block Grant (CDBG) and Home Investment Partnership Act (HOME) funds. The CAPER provides a summary of the resources available and the programmatic accomplishments in affordable housing and community development during the 2005/06 fiscal year. It evaluates the actions taken during the year to implement the strategies and objectives described in the first year of Palo Alto’s Consolidated Plan for the period July 1, 2005 to June ’30, 2006, and the progress made during the past year in addressing identified priority needs and objectives. B. Description of Public Review Process A notice regarding the availability of the draft CAPER was mailed to interested organizations and persons. Copies of the CAPER were made available at City Hall. A notice informing the public of the availability of the CAPER was published in the Palo Alto Weekly on Friday September 1, 2006. The notice was also displayed on the City’s website during the public review period. A copy of that notice is appended to this report (Appendix A). The draft CAPER was available for public review and comment for a 15-day period, beginning on Tuesday September 5, 2006 and concluding at 5:00 p.m. on Tuesday September 19, 2006. Copies were made available at the Planning Department reception desk and development center, as well as the City CDBG website. There were no comments received during the public review period. C. Overview of Identified Needs and Funding Priorities Palo Alto’s housing and community development needs were identified in the Consolidated Plan for the period July 1, 2005 to June 30, 2010. Not surprising, the provision of affordable rental housing units was identified as the most critical need in Palo Alto. This includes the provision of housing affordable to persons who are homeless, or at-risk of homelessness, and persons with special needs such as the frail elderly, developmentally disabled, physically disabled, or persons with severe mental illnesses. While all types of housing are needed in the City, the Consolidated Plan objectives focus on the creation and preservation of rental housing. Permanent housing for families with children, homeless individuals and those "at risk" of becoming homeless, persons with special needs, and elderly persons are the highest priorities identified in the Consolidated Plan. While the creation of additional new units of affordable housing is the most desirable option, the preservation of existing subsidized units that are at-risk of converting to market rate units is also a high priority need. Non-housing community development needs in Palo Alto include public services and public facilities and improvements. Public service needs include supportive services and employment opportunities for lower income, at-risk, homeless, or disabled populations. There is also a need to expand, modernize, rehabilitate, and make accessibility improvements to existing public facilities serving the same populations. See Appendix B for a summary of the 2005-2010 Consolidated Plan Goals and Objectives. Of the total 2005/06 CDBG allocation, 74 percent was allocated to housing activities, five percent toward public facilities, nine percent toward public services, and 12 percent for fair housing and program administration. PART II. AFFORDABLE HOUSING PART II. AFFORDABLE HOUSING A. Resources 1. Resources Available within the City of Palo Alto a. Communi _ty Development Block Grant (CDBG) Funds In fiscal year 2005/06, the City of Palo Alto allocated a total of $1,425,922 in federal Community Development Block Grant (CDBG) funds. This amount represents an entitlement allocation of $779,281 from HUD, $45,000 in anticipated program income, $28,788 in excess program income received in prior years, $62,570 in reallocated funds and $510,283 from the housing development fund. Of the total CDBG allocation, $!,058,674 or 74 percent was allocated for housing-related projects. b. Local Housing Funds The City of Palo Alto maintains a local housing trust fund that has two sub-funds: the "Commercial Housing Fund" fund and the "Residential Housing Fund" fund. These are the only local sources of funding and subsidies for affordable housing within the City. They are used to provide matching funds, to pay for expenses which exceed HUD cost limits, to fund the cost of features and amenities ineligible under federal housing programs, for pre-development expenses, feasibility studies, site acquisition and similar purposes. Commercial Housing Fund: Palo Alto requires commercial and industrial development projects to pay a housing mitigation fee under Chapter 16.47 of the Municipal Code. The fees are deposited in the Commercial Housing In-Lieu Fund, and the accumulated fees and interest earned on the fund are made available only for the creation of new low and moderate-income housing units under the "Housing Reserve Guidelines" adopted by the City Council. The Commercial Fund had an available balance of approximately $2,000,000 on June 30, 2006. Residential Housing Fund: Pursuant to Program H-36 (the Below Market Rate Program) of the City’s adopted Housing Element, Palo Alto collects housing in-lieu fees from residential developments when it is infeasible to provide below market rate units on-site. These fees, along with interest earnings of the Fund and other miscellaneous revenues related to housing, are placed in a special fund - the Residential Housing Fund. This fund, per adopted City policy, is used mainly to provide funding for acquisition or rehabilitation of low and moderate-income housing, but may also be used for assistance to new housing construction projects. At the end of the 2005/06 fiscal year, the Residential Fund had an available balance of approximately $200,000. c. Home Investment Partnership Act (HOME) Funds The City of Palo Alto is not an entitlement jurisdiction for the federal HOME program. The City is only eligible to apply for HOME funds through the State of California HOME program. No applications were submitted in fiscal year 2005/06. d. Multifamily Housing Program (MHP) Funds 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. MHP provides low interest loans to developers of affordable housing. Another component of Proposition 46 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. The City of Palo Alto applied for and received a grant from the State 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. e. Redevelopment Funds Although the City has not had access to redevelopment funds in the past, the City Council approved an ordinance on July 9, 2001 to establish a redevelopment agency for the City of Palo Alto. To date, the City has not established a Redevelopment Project Area. f. Public Housing There are no units of public housing in Palo Alto. 6 2. Other Resources Obtained by Nonprofits and Others a. HUD Section 8 - Moderate Rehabilitation Program Palo Alto Housing Corporation (PAHC) owns and manages a number of apartment buildings where a portion of the units have rents subsidized under the old Section 8 Moderate Rehabilitation program. Project-based Section 8 contracts for this rental assistance program were originally written for terms of 5 to 15 years and are beginning to expire. Currently, HUD ~only provides extensions on a yearly basis. PAHC currently has 38 units under the Section 8 - Moderate Rehabilitation Program (Oak Manor, 23; Curtner, 9; Emerson South, 5 and Emerson North, 1). Oak Manor and Emerson South expire in June’2007; Emerson North was renewed until January 2007; and seven units at the Curtner Apartments were renewed until July 2007, while the remaining two will expire in October 2006. b. HUD Section 8 - Shelter Plus Care The Housing Authority of the County of Santa Clara has provided the Palo Alto Housing Corporation with project based Section 8 rental assistance for homeless persons participating in the County’s Shelter Plus Care (SPC) program. Seven units are available at the single room occupancy, Barker Hotel, and 10 units are available at the Alma Place Apartments. During the period July 1, 2005 to June 30, 2006, six previously homeless individuals were provided with housing through the program at the Barker Hotel and Alma Place. In addition, there were two families assisted at two of Pa!o Alto Housing Corporation’s multi-family rental sites. All 8 of the program beneficiaries were very low or extremely low income (very low: less than 50% of the County median income and extremely low: less than 30% of the County median income). Please see a more complete discussion of the Shelter Plus Care Program in the Community Development Section of this report. c. HUD Tenant Based Section 8 Rental Assistance The Housing Authority of the County of Santa Clara administers the Section 8 Rental Assistance Program for the City of Palo Alto. There are currently 894 households with Palo Alto addresses on the waiting list for Section 8 certificates. Of the 894 households, 69 are disabled and elderly, 229 are disabled, 193 are elderly and 403 are non-disabled/non-elderly. The Santa Clara County Housing Authority reported that 285 households in Palo Alto received tenant-based Section 8 rental assistance in fiscal year 2005/06. The following statistics describe the participant characteristics for all Section 8 Programs in Palo Alto: 239 Housing Choice Vouchers, 0 Project Based, 9 Shelter Plus Care, and 37 Moderate Rehabilitation. The Housing Authority of the County of Santa Clara Section 8 Housing Choice Vouchers Issued in Palo Alto FY 2005 0 bedrooms 18 1 bedroom 158 Certificate/Voucher Size 2 3 4 bedrooms bedrooms bedrooms 44 19 0 5 bedrooms 0 Total 239 White 163 Black 24 Distribution by Racial Grou’ AsianAmerican Indian/Alaskan Native 3 49 Hawaiian/ Pacific Islander Total 239 Hispanic 18 Distribution by Ethnicity Non-Hispanic 221 Total 239 Low Income (51- 80% of Median) Distribution by Income Very Low (31- 50% of Extremely Low Median)(Less than 30% of Median) 16 220 Total 239 Elderly Disabled (Non-Elderly) Distribution by Status Non-Elderly/ Non-Disabled Elderly and Disabled Total 150 21 43 25 239 Head of Household Male Female TOTAL 75 164 239 B. Accomplishments 1. Programmatic Accomplishments The City of Palo Alto, by itself, and in conjunction with nonprofit housing developers, undertook the following activities to meet its priorities for affordable housing development and assistance as stated in the FY 2005/06 Annua! Action Plan of the Consolidated Plan. a. New Construction Rental Housing Community Working Group - Opportunity Center Proiect Location: 33/39/45 Encina Way, Palo Alto On May 7, 2001 and May 13, 2002, the City Council of Palo Alto approved a total allocation of $1,280,000 in CDBG funds for the Opportunity Center project sponsored by the Community Working Group (CWG). This allocation was provided to CWG in the form of an interim loan for pre-development, site acquisition and pre-construction expenses. On June 21, 2004, the City Council approved permanent loans and regulatory and loan agreements with the $1,280,000 in CDBG funds allocated to the homeless service center and $750,000 of Residential Fund monies to the development costs of the 89-housing units. The Opportunity Center concept evolved from the original 1998 proposal to the current project of 9,000 square feet of space for a center for day use and the delivery of social services for homeless adults and families and 89 units of permanent and transitional housing. The facility will house existing homeless services presently located in inadequate and scattered sites in Palo Alto and the mid-peninsula area. The Center is located on an 18,178 square foot site at what was formerly known as 33, 39 and 45 Encina Avenue between E1 Camino Real and the Urban Lane entrance to the Palo Alto Medical Clinic. CWG partnered with the Housing Authority of the County of Santa Clara and InnVision to acquire and develop the site. In addition to Palo Alto’s significant funding contribution, the Opportunity Center received funding from various other sources including the County Of San Mateo, the County of Santa Clara, the federal government and private foundation donors. InnVision, an experienced provider of homeless services and transitional housing, will be responsible for operations and ongoing operating costs of the homeless service center. The project is now complete held its grand opening on September 17, 2006. The Housing Authority of Santa Clara County is currently in the process of filling the vacant units, therefore, tenant statistical information will not be reported until the 2006/07 CAPER. 9 b. Rehabilitation of Existing Rental Housing Stevenson House Location: 455 E. Charleston Road, Palo Alto Palo Alto Senior Housing Project, Inc. was awarded $83,260 to replace their hot water pipes and a walk-in cooler and freezer at Stevenson House. The facility consists of 120 affordable housing units, which are occupied by 135 low and very-low income seniors. The water pipes were repaired and upgraded on the roof of the facility. The pipes were deteriorated and caused Stevenson House to make frequent temporary repairs to the system. Additional funds were reallocated to Stevenson House for the replacement of the facility’s walk-in cooler/freezer system. The cooler/freezer system was in need of replacement in order to maintain the facility’s food fresh. Stevenson House is required to provide meals to its residents and would not have been able to continue this service without a new cooler/freezer. This project was completed in the spring of 2006. Economic and Social Opportunities Location: 1445 Oakland Road, San Jose Economic and Social Opportunities was awarded $60,000 in CDBG funds to perform minor rehabilitation activities for low-income residents in the City. They provided minor home repairs and accessibility improvements, such as ramps and grab bars. They also provided weatherization services to make homes more energy efficient. They assisted a total of 53 households in 2005-2006. Lytton Gardens Location: 437 Webster Street, Palo Alto Lytton Gardens was awarded $109,695 for the rehabilitation of 49 kitchens in the assisted living facility in fiscal year 2004/05; however, due to delays in locating a distributor for the prefabricated kitchens, the project was unable to be completed until the spring of 2006. The existing kitchens were replaced with a prefabricated unit that included cabinetry, counter space, a mini-refrigerator and a microwave. This format is more user-friendly for the elderly residents because their counter space has been increased and the stoves, which were causing safety issues, have been removed. c.Housing Acquisition Community Housing Alliance - Alma Garden Apartments Location: 2507-2533 Alma Street, Palo Alto The City awarded $900,000 in FY 2005/06 CDBG funds and a pre-award of $250,000 in FY 2006/07 CDBG funds for the acquisition an affordable housing site. 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 the CDBG housing development fund. The site consists of a 10-unit apartment complex, with 8 studio units and 2 one-bedroom units. The project will be operated on a non-profit basis as housing for very low-income and low-income residents of Palo Alto. CHA hopes to redevelop the project at a higher density in the future, while still maintaining its level of affordability. d. Below Market Rate (BMR) Ownership & Rental Programs The oldest BMR units were built in 1975 and the typical development includes from one to four BMR units. Fifty percent of the inventory was built in the 1980’s and thirty-four percent were built between 1975 and 1979. The City and Palo Alto Housing Corporation initially became aware of the problems facing BMR owners in condominium projects facing large special assessments for capital repairs in February 2001. On September 9, 2002, the City Council established a BMR program emergency fund as an ongoing permanent program to prevent the !oss of BMR units and provide emergency loans for BMR unit owners for substantia! mandatory assessments. The program is also aimed to preserve BMR unit housing stock by preventing loss through foreclosure or through the resale process. The Council approved loan program criteria and loan terms and appropriated $150,000 from the Residential Housing fund to the BMR Emergency Fund A loan program was developed to address these issues and is available on an as- needed basis. There are two types of BMR units, home ownership and rental units. The status of each of the types of units is described below. BMR Home Ownership units. The Below Market Rate Program is a City program in the Comprehensive Plan (Program H-36) which requires developers of market rate housing to provide a certain number of units within each residential project at affordable prices to moderate income buyers (usually 15% of the total units). The BMR units are sold to households on a waiting list with 59-year deed restrictions on use, occupancy and the resale price. As of June 30, 2006, there were 179 units in the ownership program inventory. BMR Rental Units. This is the rental-housing component of the City’s BMR inclusionary housing program. There are 101 BMR rental units in five separate multi- family rental developments in Palo Alto. These units are rented at below market rents to very low and low-income eligible households. The specific income eligibility varies from project to project; however, the City’s current guidelines target the rental program to households between 40% and 70% of the County Median Income. The initial 63 units of BMR rental housing in the 628-unit Stanford West Apartments on Sand Hill Road were occupied in 2000-01; 94 additional BMR rental units will be added after 15 years. Employees of Stanford University, and persons working for businesses located on Stanford owned lands, have priority for occupancy at the Stanford West project because the housing has been developed and is owned by Stanford. It is not intended as student housing. During this period, no new BMR rental units were constructed. e. Rehabilitation of Existing, Owner-Occupied Single Family Homes The City may provide CDBG funds to very low-income owners for home repairs in cases where there is an urgent need for City financial assistance due to serious health or safety problems. During the year, there were no applications for this program. 2. Persons and Households Assisted with Housing The attached Table 1A shows 9 households assisted with rental housing during the period covered by this report. These units are at the newly acquired Alma Garden Apartments located in Palo Alto. Although, there are 10 units total at the complex, only nine of the units are occupied at the moment. The vacant unit will be filled by an income-eligible household. The table counts only persons or households newly occupying housing, or living in newly rehabilitated, preserved or constructed housing units regardless of when the financing or subsidies were awarded. The Opportunity Center project will provide 89 units of rental housing and will be reported on the next CAPER because the units are in the process of being occupied. Not included are units that are vacant or in the process of renting or units under construction or which are in the pre-development stages. Also not included are units assisted with Shelter Plus Care, counseling services, or homeless persons or households who receive overnight shelter. These activities are discussed in Part III of this report. Summary of Housing Accomplishments (HUD Table 1A) Name of Grantee: City of Palo Alto State: CA Program Year: 2005/06 Priority Need Category Renters 0 - 30% of Median Family Income (MFI) * 31 - 50% of MFI 51 - 80% of MFI Total Owners 0 - 30% of MFI 31 - 50% of MFI 51 - 80% of MFI Actual Units 0 5 4 Total Homeless ** Individuals Families Total Non-Homeless Special Needs Total Total Housing 9 Total 215 Housing 0 TOTAL HOUSING White 7 Black/African American 2 Asian American Indian/Alaska Native Native Hawaiian/Other Pacific Islander Black/African American and White Asian and White American Indian/Alaska Native and White American Indian/Alaska Native and Black/African American Balance/Other Total Race 9 TOTAL HOUSING Hispanic 3 Total Ethnicity 3 *As annually adjusted by HUD **Homeless families and individuals assisted with transitional and permanent housing C. Assessment of Performance 1. Evaluation of Progress in Meeting Annual (2005/06) Goals The following housing goals were identified in the 2005-2010 Consolidated Plan. Accomplishments in meeting the goals for the 2005/06 fiscal year are also listed. Goal # 1: Increase the Supply of Affordable Rental Housing by 125 units 2005/06 Activity: CDBG Housing Development Fund - Alma Garden Apartments Acquisition 2507-2533 Alma Street Palo Alto, CA 94301 2005 Accomplishment: 10 housing units Goal #2: Preserve the Supply of 72 units of Affordable Rental Housing and Immediate Risk of Conversion to Market-Rate Housing 2005/06 Activity: There were no units at immediate risk of conversion to market-rate housing during this fiscal year. Goal #3: Conserve the Condition of Existing Affordable Rental Housing 2005/06 Activities: Stevenson House - Hot Water Pipe and Kitchen Upgrade Project 455 E. Charleston Road Palo Alto, CA 94306 2005 Accomplishment: 120 units Lytton Gardens - Kitchen Renovation 649 University Avenue Palo Alto, CA 94301 2005 Accomplishment: 49 units Goal #4: Continue the Below Market Rate (BMR) Program 2005/06 Activity: City of Palo Alto BMR Program Units are located citywide 2005 Accomplishment: 10 units (800 High Street Project) Goal #5: Continue to Participate in the Mortgage Credit Certificate Program 2005/06 Activity: The city of Palo Alto continued to participate in the mortgage credit certificate program. Goal #6: Provide for Rehabilitation Loans to Low- and Moderate-Income Single Family Homeowners in Emergency or Crisis Situations Only 2005/06 Activity: This program was available on an as-needed basis and only ifCDBG funding is available. There were no applications submitted for this program during the fiscal year. Goal #7: Provide for Minor Home Repairs and Accessibility Upgrades to Low- and Moderate- Income Homeowners 2005/06 Activity: Economic and Social Opportunities - Housing and Energy Services Program Office: 1445 Oakland Road San Jose, CA 95112 Activity was available citywide. 2005 Accomplishment: 53 housing units The primary affordable housing goal in the 2005-2010 Consolidated Plan is to assist an average of 25 units per year over the five-year period, or a total of 125 units. Although only t 0 units were completed during fiscal year 2005/06, it should be noted that all housing activities are multi-year in nature. The Opportunity Center will add 89 units to the affordable housing stock and will be reported in next year’s CAPER. The City’s greatest need is affordable housing, and the majority of CDBG and local housing funds have been targeted and expended to preserve or increase the affordable rental housing stock. All of the CDBG funds have been used to carry out activities that benefit low and moderate-income persons. 2. Barriers to Fulfilling Housing Strategies There are many barriers that Palo Alto faces in meeting its affordable housing strategies, most of which are beyond the control of the City. Palo Alto has one of the most expensive housing markets in the country, due in large part to the lack of land suitable for new housing. Most of the City’s development potential consists of infill on small vacant lots, redevelopment of existing properties, and conversion of underutilized non-residential lands to higher density residential or mixed-use projects. Other uses, such as churches, and educational facilities, compete for this limited supply of residential land. Between 1996 and 2000 the median price of ownership housing more than doubled in Palo Alto. Average rents were also estimated to have doubled over the same time period. Although there has been a downturn in the economy, housing prices have continued to rise. Almost all for-sale and most rental properties are still out of reach for all but households with above moderate incomes. In addition, there continues to be a low vacancy rate for rental housing. As of May 2006, the rental vacancy rate in the City was 1.51%. Some of the barriers to building more housing are the result of decisions and priorities set by federal or State governments that must decide how to distribute very limited funding. The policies and priorities set by these agencies often do not favor high cost areas, and most federal housing resources are not readily available to the City of Palo Alto. Some of these barriers include: the lack of congressional appropriations for certain programs; limitations in federal regulations that make some programs very difficult to use in Palo Alto; the lack of appropriate and available housing sites; and a lack of interest or capability on the part of for-profit and non-profit developers in pursuing some federal programs. The principal barriers to fulfilling the City’s affordable housing goals and objectives are discussed below. a. Federal or State Barriers: Changes by the State’s Tax Credit Allocation Committee in the method of determining awards for the competitive federal and State housing tax credits has made it more difficult to obtain tax credit awards for low-income rental housing. There are also ~ery restrictive caps that limit the total amount of tax credit awards within certain counties including Santa Clara County. There is far greater demand in Santa Clara County for the competitive tax credits than the amount allowed under the allocation cap. There are problems of utilizing federal housing programs, such as Section 202 and 811, in areas with high construction and land costs. HUD places limitations on the amount of HUD subsidies, which then result in the need for large local funding contributions to make projects financially feasible. The amount of federal CDBG funds that the City receives on an entitlement basis from HUD has not kept pace with inflation over the last 15 years. The barrier of not being qualified for HOME funds on an entitlement basis has affected the City’s capability to encourage and fund affordable housing. Other barriers are: The lack of State or federal funding for the preservation of older, HUD-subsidized and Section 8 assisted rental housing by acquisition by nonprofit housing organizations Reduction in the term of project-based Section 8 contract renewals from the 20-year contracts Qfthe 1970’s to the one-year renewals presently authorized by Congress. Limited funding in HUD’s budget for the Section 8 tenant-based assistance program (Section 8 certificates and vouchers administered by local housing authorities) since FY 1994. b. Barriers Related to Local Housing Market Conditions: Limited vacant land suitable for housing construction and strong competition from developers of market-rate housing, commercial projects and other uses such as private schools for any available site. Extremely high prices for sites suitable for new housing and for existing residential properties suitable for acquisition and rehabilitation. Limited local funding sources for affordable housing. An extremely low vacancy rate and high housing demand means that even modest rental units are occupied by households with incomes above the HUD low-income limit. This means that acquisition and/or rehabilitation programs must relocate existing tenants in order to utilize federal funds. Low vacancy rates and high rental rates have made it difficult for persons to find housing in Palo Alto using tenant-based Section 8 Certificates and Vouchers. c. Discussion of Most Serious Barriers: The most serious barrier is the lack of dependable access to HOME funds. The fact that the City does not qualify as an entitlement jurisdiction for HOME funds is a significant barrier to meeting the City’s housing objectives. The HOME Investment Partnership Act is the principal federal housing program directly available to local governments. The City can only obtain funding on a competitive basis through the State of California’s statewide allocation. The State holds only one competition round each year. Palo Alto is at a disadvantage in the State’s process because of the percentage of ranking points assigned to rural applicants and those from jurisdictions with high poverty rates. The maximum award from the State is $1 million per applicant for projects using 9% Low-Income Housing Tax Credits and up to $3.5 million for projects not using 9% tax credits. While the City and PAHC successfully obtained and implemented a major acquisition and rehabilitation of the 26-unit Barker Hotel SRO with a FY 1992 HOME grant from the State, the City has not been able to access the State’s HOME funds since that time. There are many obstacles that have prevented the City from obtaining HOME funds. The primary obstacles are listed below: Extremely high demand and competition for State HOME funds requires that applications be near perfect to receive funding. The State’s rating criteria favors rural and Community Housing Development Organizations (CHDO) applicants, and jurisdictions with high rates of poverty. Since Palo Alto does not fit these priorities, the City is at a great disadvantage in the competition. There are no qualified CHDOs operating in the Palo Alto area, and the local nonprofit housing developers are not interested in creating CHDOs and pursuing HOME funds directly. The State’s once per year application process is too inflexible for use with the kind of major rental housing projects that are usually done in Palo Alto. It is unlikely that project timing and readiness will coincide with the State’s application schedule in a manner that will earn maximum points. The State’s rating criteria strongly favors applicants with very recent HOME project experience. Another serious barrier is the expiration of project-based Section 8 contracts and insufficient funding from the Federal government for contract renewals. Some ofPalo Alto’s largest subsidized housing developments have project-based Section 8 rental assistance contracts which have expired or will expire in the next few years. Most of these projects are owned and operated by nonprofit housing organizations that desire to continue the low-income use under their HUD insured financing and regulatory agreements. Renewal of the Section 8 rental assistance contracts for all these projects is critical in order to preserve affordable rents for the extremely low-income tenants who occupy these units. Many of these projects serve elderly and disabled persons who would find it very difficult to move, and who would unlikely be able to secure comparable housing even if they were provided with a Section 8 voucher. 3.Actions to Address Obstacles to Maintain Affordable Housing, or Eliminate Barriers a. CDBG Housing Development Fund 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 was undertaken by the Community Housing Alliance and is described above in Part II, Section 2A. The City’s CDBG Housing Development Fund was used to award a $900,000 to Community Housing Alliance for the acquisition of the Alma Garden Apartments. In addition, an additional $12,100 was allocated to the Community Housing Alliance for property inspections that were performed prior to acquiring the site. b. Housing Trust Fund When the Santa Clara County Board of Supervisors, Silicon Valley Manufacturing Group, Santa Clara County Collaborative on Housing and Homeless Issues, and the Community Foundation of Silicon Valley founded Santa Clara County Housing Trust Fund, the City of Palo Alto was among the contributors that raised initial seed capital of $20 million in its first two years. The City initially contributed $500,000 from the local Residential Housing Fund. The City has allocated an additional $150,000 to the Trust to be used exclusively for qualifying affordable housing projects located within Palo Alto. The Trust is dedicated to building and sustaining a revolving loan fund and grant-making program that will leverage other housing resources throughout Silicon Valley. The Trust’s three emphases are creating more affordable rental housing, first-time homebuyer opportunities and housing for the homeless. In fiscal year 2005/06, the Trust assisted 335 families in buying their first homes valued at over $130 million. They have also provided 6 loans totaling $1.77 million for 204 units of homeless housing, including the Fabian Way Senior Apartments located in Palo Alto and 2 loans totaling $1 million for 193 units of multifamily housing units. 4. Adjustments or Improvements to Affordable Housing Strategies a. Public Policies Housing Element The Housing Element is a key component of the Comprehensive Plan adopted by the City Council and is the chief policy document describing the City’s housing needs and the policies and programs the City will use to meet those needs. On December 2, 2002 the City Council adopted an updated Housing Element for the period January 1, 1999 to June 30, 2006 with strategies to meet the City’s fair share of the region’s housing needs as defined by the Association of Bay Area Governments (ABAG). The City of Palo Alto is required to provide a total of 1,397 housing units over the 7½-year period; 1,055 units have been constructed resulting in a remaining need of 342 units. The following chart indicates the required units by income category: Total Goal in Units 1,397 units % of Total Very Low Income (Less than 50% of Median) 265 units Low Income (50% - 80% of Median) 116 units Moderate Income (80% - 120% of Median) 343 units Above Moderate (Over 120% of Median) 673 units 19%8%25%48% Main policies and programs included in the Housing Element address: ¯Increasing the Supply of Land Suitable for Housing ¯Using Existing and Planned Residentia! Lands More Efficiently and Intensively °Modifying and Strengthening Existing Policies to Increase the Supply of Affordable Housing °Using Legislative Powers to Promotd Affordable Housing °Reserving 16 sites identified on the Housing Sites Inventory for higher density housing As part of the Housing Element Update process, a Technical Advisory Group comprised of affordable housing advocates was formed to identify programs and policies to encourage affordable housing production. Staff conducted a focus panel with for-profit and non-profit housing developers to discuss the viability of potential development regulations recommended by the Technical Advisory Group and to identify other strategies to increase the housing supply. Two public forums were held to solicit citizen input and comments on new policies and programs. The Housing Element went through six City Council public hearings and two Planning and Transportation Commission hearings. ¯Zoning Ordinance Update. Implementing the City’s Comprehensive Plan is a major tenet of the Zoning Ordinance Update, which has been underway for the past six years. Of the approximately 400 policies and programs described in the Comprehensive Plan, approximately 100 of them are called out for implementation through the Zoning Ordinance Update. This includes the implementation of three new land uses: Village Residential, Mixed Use, and Pedestrian/Transit Oriented Development as well as key policies addressing housing, parking, urban design and zoning ordinance format. A new Form Code being developed for the zoning ordinance will also ensure adherence with Comprehensive Plan policies that need to be considered with development activities. Several policies and programs of the adopted Housing Element (Decerriber 2002) are also being implemented through the Zoning Ordinance Update. These include increasing the opportunities for mixed use residential/retail development and a mixture of housing types as well as density bonuses and affordable housing incentives. There have been over twenty-five public meetings with the Planning and Transportation Commission to address different land use chapters in the Zoning Ordinance Update including areas such as single family, low density residential, industrial/research and development, parking, multi family residential, village residential, mixed use and the development of a new context based design "Form Code" component. All of the Commission meetings are open to the public for written and oral testimony. Staff has also conducted community meetings that focused specific land use issues and/or zoning ordinance chapters. The City Council has also conducted approximately ten public meetings related to the Zoning Ordinance Update. The Planning Department maintains a Zoning Ordinance Update website that the public can access to find the latest ongoing developments with the update. In addition, the website allows for the community to send questions or comments to the City on any zoning ordinance or land use issue. b. Development Impact Fees for Housing On March 25, 2002, the City Council approved modifications and additions to Impact Fees collected for residential and commercial development projects. The Impact Fees are now comprised of three categories: Housing, Traffic and Community Facilities. The key change in the Housing fee was to increase the fee from $4.21 per square foot to $15.00 per square foot and requires that an annual cost of living adjustment be made. The current rate as of May 8, 2006 is $16.01 and applies to nonresidential development. The Council removed the 2,500 square foot project threshold and the 20,000 square foot exemption, so that the new rate applies to all net new square footage approved after May 8, 2002. Full payment is required with building permit and some exemptions are provided, such as hazardous material storage, churches, colleges and universities, commercial recreation, hospitals and convalescent facilities, private education facilities, public facilities and private clubs, lodges and fraternal organizations. PART III. COMMUNITY DEVELOPMENT PART III COMMUNITY DEVELOPMENT A. Resources Available 1.City of Palo Alto Non-Housing Community Development Resources a. Federal Funds The primary federal resource in the City of Palo Alto for non-housing community development activity is the Community Development Block Grant (CDBG) Program. The City of Palo Alto is an entitlement jurisdiction under the CDBG regulations and receives annual funding on a formula basis. The purpose of the CDBG program is to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low and moderate-income persons. The City receives no other direct federal funding for community development projects. As explained earlier in this report, the amount of CDBG funds available for allocation in 2005/06 was $1,425,922. In fiscal year 2005/06, the City allocated a total of $127,392 to public service activities, and $164,856 to fair housing activities and CDBG program administration. b. Local Funds o Human Service Resource Allocation Process (HSRAP) The City of Palo Alto provided $1,250,402 in General Funds in 2005/06 to address priority human service needs in the community. The funds were allocated through the Human Service Resource Allocation Process (HSRAP), and administered by the Office of Human Services in the Community Service Department. The projects funded addressed the Human Relations Commission’s priority needs in the following categories: nutrition, childcare, youth/teens, seniors, homeless/low income, disability, information and referral, mediation, domestic violence, and family support. o Hamilton Public Benefit Program for Senior Services In 1993 the City of Palo Alto entered into an agreement with Hamilton Avenue Properties regarding the public benefit portion of a Planned Community (PC) zone change. The PC allowed development of a senior condominium project with 36 residential units. The agreement called for a $500,000 contribution to the City for the establishment of an endowment fund to benefit seniors and senior services, payable in annual installments of $50,000. Additionally, upon resale of all the original units, a fee of 2-V2% of the sales price of the unit shall also go into the fund. In fiscal year 2001/02, the tenth and final installment of $50,000 was disbursed to Avenidas, the local provider of services for seniors. Avenidas began receiving quarterly interest payments in August 2003 as an additional provision of the agreement. 22 c. Leveraging All of the local non-profit agencies leverage CDBG, HSRAP, and other funding with money from local organizations such as the United Way, corporations, foundations, and individual donors. B. Accomplishments 1. Summary of Accomplishments with CDBG Funds The appended financial expenditure report summarizes the accomplishments of each activity funded with Community Development Block Grant funds in 2005/06. The report also specifies the number and race/ethnicity of persons or households who benefited from the activities. Following is a brief recap of the accomplishments of the public service and other community development activities that were completed during the 2005/06 fiscal year with CDBG funds. $23,000 to the Palo Alto Housing Corporation. Provided counseling sessions for very- low income residents of the Barker Hotel (many of whom were previously homeless). $8,000 to Emergency Housing Consortium. Provided homeless persons with supportive services and shelter nights in emergency shelter and transitional housing programs. $26,800 to Project Sentinel. Investigated cases involving allegations of housing discrimination in Palo Alto, and provided outreach and education services. $19,000 to Shelter Network for Haven Family House. Provided transitional housing and supportive services to homeless families at a rehabilitated facility in Menlo Park. $42,392 to Clara Mateo Alliance Homeless Shelter. $21,000 for the single persons shelter and $21,392 for the family shelter wing in the Veterans Administration facility in Menlo Park. Agency provided shelter and supportive services to homeless individuals and families. $24,000 to InnVision/Urban Ministry for the provision of services at their homeless drop- in services and the Hotel de Zink rotating shelter. $5,000 to the Mid-Peninsula Alano Club for the center’s operating costs. The center provided a meeting place for various recovery groups including Alcoholics Anonymous and Narcotics Anonymous $6,000 to Catholic Charities for the long-term care ombudsman program which provides advocacy for the residents of long-term care facilities within the City No investments were made in areas of minority concentration. The chart on the following pages reflects the accomplishments and benet~ciaries served with 2005/06 CDBG expenditures: Summary of Community Development Accomplishments for Public Facilities and Improvements (HUD Table 3-1) Name of Grantee: Palo Alto State: CA Program Year: 2005/06 Priority Need Category Public Facilities Senior Centers Handicapped Centers Homeless Centers Youth Centers Neighborhood Facilities Child Care Centers Parks and/or Recreation Facilities Health Facilities Parking Facilities Abused/Neglect Facilities AIDS Facilities Other Public Facilities Public Improvements Solid Waste Improvements Flood Drain Improvements Water Improvements Actual Number of Projects Assisted Actual Number of Projects Completed Priority Need Category Actual Number of Actual Number of Projects Assisted Projects Completed Street Improvements Sidewalk Improvements Sewer Improvements Other Other Priority Need Category Actual Number of Persons Served Public Services Senior Services 597 Handicapped Services Youth Services Transportation Services Substance Abuse Services Employment Training Crime Awareness Fair Housing Counseling 20 Tenant/Landlord Counseling Child Care Services Health Services Other Public Services (homeless assistance)1,784 Accessibility Needs 53 Other Community Development Energy Efficiency Improvements Lead Based Paint/Hazards 25 Priority Need Category Actual Number of Persons Served Code Enforcement Other Note: Numbers reflect persons assisted with CDBG funds only 3. Summary of Accomplishments with Palo Alto General Fund Money The City of Palo Alto Human Service Resource Allocation Process (HSRAP) provided $1,250,402 in General Fund dollars to the following agencies for services to lower income elderly, disabled or special needs residents of Palo Alto during the 2005/06 fiscal year. ,,/Adolescent Counseling Services - $90,000. On-campus counseling programs "/"Alliance for Community Care - $24,000. Homeless outreach program ,/"Avenidas - $420,216. Senior services ¢"Communi _ty Health Awareness - $9,000. Outlet program ,/Community. Technology Alliance - $12,300. Housing website/voicemail ¢"Community Association for Rehabilitation (CAR) - $40,353. Services for children with disabilities and their families "/ La Comida de California - $33,000. Senior nutrition program ¢" MayView Community Health Center - $17,000. Health care for low income, homeless, and uninsured residents "/ Palo Alto Community_ Child Care - $425,720. Child care subsidies and outreach ¢" Project Sentinel - $65,641. Tenant/landlord counseling and mediation services ¢"Second Harvest Food Bank - $7,372. Groceries for low-income seniors ,/Senior Adult Legal Assistance - $8,800. Legal assistance for seniors ,/Support Network for Battered Women - $18,000. Services for battered women ,/"Urban Ministries of Palo Alto/InnVision - $67,000. Food program and emergency shelter ,/"Bay Area Community Resources (YCS) - $12,000. Community Service Program and Summer Service Program 4. Summary of Accomplishments with Hamilton Public Benefit Funds Quarterly interest payments supported the Avenidas Volunteer Corp, Avenidas Handyman Services, and Information and Referral Services. The Avenidas Volunteer Corp has several programs, including the Early Literacy Program, the Partners in Caring Program, and Computer Learning Center. tn fiscal year 2005/06, 443 volunteers provided a total of 21,715 hours of service to the community through this program. The Information and Referral Program provides brief consultations about older adult services including affordable housing, adult day health centers and financial management. The Information and Referral program responded to 1,133 requests for information if fiscal year 2005/06. The Avenidas Handyman Services provides 26 minor home repair services including carpentry, electrical, plumbing and painting. In fiscal year 2005/06, 572 jobs were performed through this program. 5. Actions Taken to Affirmatively Further Fair Housing The City continues to support the purpose and goal of fair housing and contracted with Project Sentinel to promote equal opportunity in housing in fiscal year 2005/06. The contract with Project Sentinel is a collaborative effort with the cities of Mountain View and Sunnyvale. Services included information and referral, community outreach and education, discrimination complaint checking and investigation, legal referrals and assistance in resolving complaints. The City also contracted with Project Sentinel to provide tenant/landlord information, referral and mediation services through the HSRAP program. Senior Adult Legal Assistance (SALA) also receives City of Palo Alto General Funds to provide legal assistance to seniors. This service could include housing related assistance to elderly residents. In addition to the services provided under these contracts, the following steps were taken in the 2005/06 fiscal year to affirmatively further fair housing. City staff participated with other Santa Clara County CDBG entitlement jurisdictions and service providers in the Countywide Fair Housing Task Force. The task force includes representatives from entitlement jurisdictions, fair housing providers, legal service providers, and other community service providers. The Office of Human Services continued sponsoring housing information and referral coordination meetings for service providers. The meetings have resulted in increased networking amongst provider agencies and the availability of shared housing wait lists and other information to help low income; elderly, homeless, or disabled clients access affordable housing. The City’s Office of Human Services provided affordable housing information and referral services, and distributed the "Directory of Housing Services and Subsidized Rental Housing in Palo Alto and Surrounding Communities". The City targeted the majority of its CDBG and local housing funds to increasing/ preserving the supply of housing affordable to persons with lower incomes and/or special needs. The City contracted with Project Sentinel to conduct discrimination audits based on familial status and disability. Five familial status and five disability audits were conducted. In the familia! status audits, education letters were sent to all of the property owners. In the disability audits, three did not demonstrate evidence of discrimination in renting to tenants with a seeing-eye dog. They did find evidence in one audit in which the housing provider would not rent to a person with a service animal. This case was referred to HUD for further investigation. An additional accessibility audit showed evidence of discrimination and the case is pending further investigation. The City continues to support police officials and community groups in the development of policies and actions to deal with hate crimes. Under its fiscal year 2005/06 contract with the City, Project Sentinel conducted, and collaborated on a number of education community forums and outreach activities relating to discrimination issues, including: Provided community presentations at the Housing Choice Coalition, Silicon Valley Independent Living Center, Protection and Advocacy, Inc., Catholic Charities - Washington United Youth Center, AIDS Legal Referral Panel, Billy DeFrank Lesbian Gay Community Center, Asian Pacific Family Resource Center, Santa Clara Lions Blind Center, Sensory Access Foundation, Hope Senior Services Center, Arab Cultural and Community Center, Sobrato Family Living Center, Emergency Housing Consortium Shelter, All Care Plus, City of Palo Alto Ambassador Program, and a Palo Alto tenants workshop. Staffed a table at the California Apartment Association Expo, Affordable Housing Fair 2006, Probation Department Resource Fair, DeafNation Expo, Adult Services Resource Fair and the Palo Alto Festival of the Arts. Distributed 1,498 brochures from information booths, community presentations, city hall, real estate offices, local businesses and libraries. English and Spanish language public service announcements were sent to various radio and television stations on a quarterly basis, including ICALX, KARA~ KBAY/KKSJ, KBLX, KDFC, KFJC, KFRC, KISQ, KLLC, KPOO, KFOG, KSFO, KSJS, KUSF, KKUP, KZBR, KSCU, KALW, KEZR, KCBS, KFOX, KGO, KITS, KOIT, KQED, KNBR, KSJO, KSJX, KZSU, KRTY, KIOI, KSAN. Conducted 4 tester trainers in Palo and 21 trainings agency-wide to increase the tester pool to 442 testers. Project Sentinel staff hosted three separate question and answer programs on the radio station KFOG. Wrote a column titled Rent Watch for publications around the Bay Area and California, which appears on a regular weekly and monthly basis. Participating publications include the Palo Alto Weekly, Apartment Management Magazine and the Disabled Dealer. "/"Published quarterly advertisements in the Palo Alto Weekly, E10bservador, Bay Area Parent, India Currents, and City Flight Magazine. Attended quarterly Northern California Fair Housing Coalition meetings. Conducted 14 fair housing trainings for property owners/management professionals with properties throughout Santa Clara County. Attended two meetings with the Fair Housing Lawyer Referral Panel. Attended the Santa Clara County Fair Housing Task Force meetings Organized a Fair Housing Month Symposium entitled, "Not in Our Neighborhood: Evicting Housing Discrimination from Our Communities". The workshop covered topics like reasonable accommodations, fair housing litigation, accessible design and construction, predatory lending, and general fair housing laws. Over 150 people were in attendance, including property managers, city and county employees, service providers, advocates, and the general public. During fiscal year2005/06, Project Sentinel investigated 20 cases of reported discrimination in Palo Alto. Of the 20 cases investigated, 16 cases (80%) had a positive outcome (successful conciliation, referred to attorney, referred to HUD, or counseled/assisted), three cases (15%) are still pending and one of the complainants (5%) declined to pursue any further action. The 20 cases were in the following categories: Disability 7 Cases 35% Race 6 Cases 30% Familial Status/child 4 Cases 20% National Origin 1 Case 5% Age 1 Case 5% Marital Status 1 Case 5% 20 Cases 100% 6.Actions taken to address the needs of homeless persons a. Shelter Plus Care (SPC) The Shelter Plus Care Program, administered by the Office of the County’s Homeless Coordinator, provides up to five years of project based Section 8 rental assistance for previously homeless individuals with disabilities. To qualify for the SPC program, applicants must be living on the streets, or staying at emergency shelters. Additionally, they must have a diagnosis of one or more of the following diseases: (1) Mental illness; (2) Alcohol or drug addiction; and (3) HIV/AIDS. They must be clean and sober (if their diagnosis is drug or alcohol addiction), 29 and be willing to commit to and follow an individual service plan created with their case manager specifically geared to their individual disability. Extensive support services are a necessary and required component of the program. These supportive services are provided to program participants to allow them to maintain their housing, address and resolve ongoing issues with their particular disability, and achieve a greater level of self-determination. Alma Place, the 107-unit single room occupancy apartment building on Alma Street, has ten designated SPC units during the reporting period, but only four of the units are occupied. The Barker Hotel, a 26-unit single-room occupancy building in the downtown, has seven designated SPC units, but only two are currently occupied. All six participants were very low income. Overall, the SPC program has been successful at housing people with special needs who might not otherwise be eligible for housing or be able to maintain their housing. There were two families’that participated in the SPC program and were housed at one of the Palo Alto Housing Corporation’s multifamily sites. Both families were very low income. b. Community Working Group The Community Working Group (CWG) is the sponsor of a comprehensive homeless service center (The Opportunity Center) presently under construction that will provide refuge and a range of professionally run services for those who are homeless or otherwise in need of a safety net of social services. The Opportunity Center will provide personal services - mail delivery, access to a telephone, showers and personal hygiene supplies, laundry facilities, help finding food and shelter, and a supportive environment. Case managers will be available to assist people in obtaining appropriate job skills, housing, and medical and mental health assistance. The service center will be on the ground floor of a 4-story building that will also have .89 units of affordable transitional and permanent housing for singles, couples and families with children. The building design will allow for different populations to coexist in the same area. The project is discussed more fully in the housing portion of this report. The project broke ground in May 2004 and held its grand opening on September 17, 2006. The project is now in the process of being occupied by eligible households. c.Employment Opportunities The homeless worker program continued during fiscal year 2005/06. Selected workers were provided with food vouchers, a voucher for clothing from the local Goodwill, and bicycle transportation. Workers were helped with resumes and skills training. Five persons participated in the program, and one of them continued with the City as an hourly employee for several months. d. Homeless Services In total, the City provided $295,064 in direct funding for the following services targeted to benefit persons who are very low income or homeless: ,,/Urban Ministry - $91,000 in City General Funds and CDBG funds for a prepared meal program, a grocery distribution program for low- income persons, drop-in center and emergency shelter. Emergency Housing Consortium - $8,000 in CDBG funds for emergency shelter and supportive services provided by the Sunnyvale Armory, the Monterey Glen Inn Supportive Housing Program, and the Reception Center. Palo Alto Housing Corporation - Downtown SRO Hotel Counseling - $23,000 in CDBG funds for casework/counseling sessions for the low-income tenants of the Single Room Occupancy Barker Hotel and Alma Place. Many of the tenants were previously homeless, and the counseling sessions help them maintain their housing stability. Shelter Network-Haven Family House - $19,000 in CDBG funds for transitional housing and supportive services (including childcare) for homeless families with children. Clara-Mateo Alliance -Family/Singles Shelter and Elsa Segovia Center- $42,392 in CDBG and General funds for emergency shelter and transitional housing for homeless individuals and families with children, as well as for the Elsa Segovia Day Center. MayView Community Clinic - $17,000 in City General Funds were provided to the Clinic to provide health care for low-income, homeless, and uninsured residents. Alliance for Community Care - $24,000 in City General Funds for a homeless outreach program targeted to those with mental health issues. Support Services for Battered Women - $18,000 in City General Funds were used to provide shelter and supportive services for abused women and children. Community Technology Alliance - $12,300 in City General Funds were used to provide voice mail boxes for the homeless as well as to support a Countywide subsidized housing website. La Comida de California - $33,000 in City General Funds were used to provide meals for low-income seniors at various facilities Second Harvest Food Bank - $7,372 in City General Funds were used to provide groceries to low-income individuals 7. Other Actions a. Lead-Based Paint Hazard Reduction Lead poisoning can cause permanent damage to the brain and many other organs, and can result in reduced intelligence and behavioral problems in young children. More than 800,000 children younger than 6 years old living in the United States have lead in their blood that is above the level of concern set by the Centers for Disease Control and Prevention (CDC). A significant number of these children are in families of low income and are living in old homes with heavy concentrations of lead-based paint. The most common sources of childhood exposure to lead are deteriorated lead-based paint and lead-contaminated dust and soil in the environment. The City housing and CDBG staff provide information and referral to property owners, developers and non-profits rehabilitating older housing about lead-based paint hazards. There is no information that indicates lower income households are more likely to be exposed to lead paint hazards in Palo Alto than are families in the general population. The City’s 2005-2010 Consolidated Plan has a more detailed discussion of lead based paint in the City. The City currently requires that any housing to be rehabilitated with City financial assistance to be inspected for the existence of lead paint and lead paint hazards. The City will provide financial assistance for the abatement of such hazards in units rehabilitated with City funding. b. Intergovernmental Cooperation The City of Palo Alto has worked closely with the cities of Mountain View and Sunnyvale to distribute a joint Request for Proposals (RFP) for fair housing services. A single fair housing provider was selected for all three cities in 2003-04 for a 2-year contract, with a one year extension in fiscal year 20005-06 resulting in more cost-effective services. City staff has also participated in County sponsored Task Forces and other efforts to increase affordable housing on a regiona! basis. City staff participates in the following: The Housing Bond Advisory Committee that oversees the Mortgage Credit Certificate program and all County bond financing The Housing Trust Fund of Santa Clara County Santa Clara County Collaborative on Housing and Homeless Issues The CDBG and HOME Program coordinators of entitlement jurisdictions from throughout Santa Clara County that address multi-jurisdictional funding, regional approaches to fair housing and predatory lending and other issues of common interest. ,,/ Countywide Fair Housing Task Force c. Actions to Ensure CDBG Program Compliance The City follows the monitoring requirements for the use of federal funds as directed by HUD. City staff attended HUD sponsored workshops on prevailing wage requirements, environmental review and IDIS. In addition, City staff attended the HUD workshop on the new performance measurement system. The City’s Department of Planning and Community Environment monitors its housing production goals and all the activities carried out to further the goals of the Consolidated Plan. Subrecipients of CDBG funds are required to submit semi-annual and annual performance reports outlining the extent to which program goals have been achieved, and the beneficiaries who have been served. Program performance is measured against the specific program objectives outlined in the contract scope of services. City staff monitors each subrecipient, as necessary; to insure compliance with regulations governing their administrative, financial and programmatic operations, and to make sure the subrecipients achieve their performance objectives within the prescribed schedule and budget. 8. Changes to Annual Action Plan The City had one substantial amendment to its 2005-06 Action Plan. The Action Plan amendment was made available to the public for a period of 30 days and a public hearing was held before the City Council on March 6, 2006. The City Council approved the amendment on that same night. The amendment involved the acquisition of the Alma Garden Apartments. The City issued a special RFP for an affordable housing project in order to expend accumulated funds in the CDBG Housing Development fund. A total of $1,150,000 was allocated to the Community Housing Alliance for the acquisition of an affordable housing site. $900,000 was allocated in fiscal year 2005/06 and a pre-award of $250,000 in fiscal year 2006/07 CDBG funds were allocated to this project. The Alma Gardens Apartments, a 10-unit housing complex, was acquired for the purpose of creating affordable housing in the City. Community Housing Alliance plans on expanding the site in the future. C. Assessment of Performance 1. Evaluation of Progress in Meeting Annual Community Development Goals The City has made progress in meeting its community development goals in the past year, especially in the area of services for lower income residents. The local safety net of services for lower income persons is being strengthened with the creation of more shelter and supportive services. These efforts contribute significantly to a local continuum of care. All of the public service agencies funded with CDBG funds address the identified needs of providing a variety of human services to low-income, at risk populations. City staff has provided information and referral assistance to residents searching for affordable rental housing. Shelter beds and services for the homeless population have been increased as well as services to very low-income seniors and persons with disabilities. The City’s seasonal worker program continues to provide training and employment to the unemployed. The City pursued all resources it indicated it would, provided requested certifications of consistency for HUD programs in a fair and impartial manner, and did not hinder Consolidated Plan implementation by action or willful inaction. The following goals are those that were identified in the 2005-2010 Consolidated Plan. The fiscal year 2005/06 accomplishments for each goal are also listed. Goal #8: Provide Assistance and Supportive Services to Low and Very Low-Income Palo Alto Residents to Keep them from Becoming Homeless 2005/06 Activities: Palo Alto Community Childcare - Childcare Subsidies 3990 Ventura Court Palo Alto, CA 2005 Accomplishment: 50 households Project Sentinel - Mediation Program 430 Sherman Avenue, Suite 308 Palo Alto, CA 94306 2005 Accomplishment: 150 households Second Harvest Food Bank 750 Curtner Avenue San Jose, CA 95125 2005 Accomplishment: 175 individuals Avenidas - Senior Home Repair and Senior Housing Counseling 450 Bryant Street Palo Alto, CA 94301 2005 Accomplishment: 1,600 individuals 34 La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2006 Goal: t50 individuals Palo Alto Housing Corporation - Barker Hotel and Alma Place Counseling Program 725 Alma Street Palo Alto, CA 94301 2005 Accomplishment: 154 households Mayview Community Clinic - Health Care Services 270 Grant Avenue Pa!o Alto, CA 94306 2005 Accomplishment: 100 individuals Goal #9: Continue to Support the Opportunity Center for the Provision of Supportive Services with a Housing Component 2005/06 Activity: The City continued to support the Opportunity Center as needed. Goal #10: Continue to Support the Operating (and/or rehabilitation) Costs of Shelters and Transitional Housing Programs that Serve the Palo Alto Area 2005/06 Activities: Clara-Mateo Alliance - Adult Program and Family Program 795 Wil!ow Rd., Bldg 323-D Menlo Park, CA 94025 2005 Accomplishment: Operating Costs Haven House 260 Van Buren Rd. Menlo Park, CA 94025 2005 Accomplishment: Operating Costs First Step for Families 325 Villa Terrace San Mateo, CA 94402 2005 Accomplishment: Operating Costs Maple Street Shelter 1580-A Maple Street Redwood City, CA 94063 2005 Accomplishment: Operating Costs 35 Emergency Housing Consortium 2665 North First Street, Suite 210 San Jose, CA 95134 2005 Accomplishment: Operating Costs Goal #11: Continue to Support Mental Health Outreach and Other Supportive Services for the Homeless 2005/06 Activity: The City continued to support mental health outreach and supportive services. Goal #12: Continue to Cooperate on Countywide Approaches to the Issues of Homelessness 2005/06 Activity: The City continued to cooperate on countywide approaches to the issues of homeless. Goal #13: Support the Activities of Area Non-Profit Organizations the Provide Transitional Housing and Supportive Services to the Homeless 2005/06 Activity: Clara-Mateo Alliance - Adult Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2005 Accomplishment: maintained 6 transitional housing units Clara-Mateo Alliance - Family Transitional Housing 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2005 Accomplishment: maintained 3 housing units Shelter Network - Mid Peninsula Housing Program 1450 Chapin Avenue, 2nd Floor Burlingame, CA 94010 Various locations in the Mid-Peninsula 2005 Accomplishment: maintained 8 housing units Goal #14: Continue to Support the Shelter Plus Care Program in Palo Alto and Increase the Units Available in the Program to Include Families with Children 2005/06 Activity: There were seven Shelter Plus Care units available at the Barker Hotel and 10 units were available at Alma Place. Goal #15: Assist Seniors in Long-Term Care Facilities 2005/06 Activity: Catholic Charities - Long-Term Care Ombudsman Program 2625 Zanker Road, Suite 200 San Jose, CA 95134-2107 2005 Accomplishment: 597 Individuals Goal #16: Provide Support to Accessible Transportation Services 2005/06 Activity: Continued to support accessible transportation services in the City, including the Palo Alto Shuttle. Goal #17: Continue to Provide Services to Prevent Homelessness (Also see Goal #8) 2005/06 Activity: Clara-Mateo Alliance -Adult/Couples Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2005 Accomplishment: 53 Individuals Clara-Mateo Alliance - Family Housing Program 795 Willow Rd., Bldg 323-D Menlo Park, CA 94025 2005 Accomplishment: 18 Households Shelter Network - Mid Peninsula Housing Program 1450 Chapin Avenue, 2nd Floor Burlingame, CA 94010 Various locations in the Mid-Peninsula 2005 Accomplishment: 291 Households InnVision/Urban Ministry Palo Alto - Drop-In Center 400 Mitchell Lane Palo Alto, CA 94301 2005 Accomplishment: 920 Individuals Emergency Housing Consortium - Pa.lo Alto Homes Program 2665 North First Street, Ste. 210 San Jose, CA 95134 2005 Accomplishment: 53 Individuals Goal #18: Continue to Support Food and Meal Programs2005/06 Activity: Second Harvest Food Bank 750 Curtner Avenue San Jose, CA 95125 2005 Accomplishment: 175 individuals La Comida - Senior Nutrition Program 450 Bryant Street Palo Alto, CA 94301 2005 Accomplishment: 150 individuals Goal #19: Promote a Vital System of Community-Based Human Services through Facilities to House those Services 2005/06 Activity: Emergency Housing Consortium - Our House Youth Project 480 E. William Street San Jose, CA 95113 2005 Accomplishment: 1 Facility is underway 2. Barriers to Fulfilling Strategies The continually increasing cost of land in the Bay Area has not only created a housing crisis, but a rental crisis for non-profit agencies that serve thevulnerable, at-risk populations. Many non- profits have experienced a decrease in funding and donations because of the economic downturn. Funding cuts have resulted in a decrease in staffing and services at many of the local non-profit agencies. Although rental-housing prices have stabilized in the Bay Area, the housing that is available is still out of reach to many low-income residents, primarily because of the lack of available employment. The economic downturn has caused a significant increase in unemployment rates. Many resident renters have been forced into homelessness or forced to leave the area as the result of dramatic increases in rental rates and unemployment over the past few years. People already in shelters or sub-standard housing find it increasingly difficult to improve their living situations; and tend to stay in the shelters or sub-standard housing longer. 3. Adjustments or Improvements to Community Development Strategies No adjustments to the community development strategies have been identified at this time. 4. Performance Measurement System Status The City is in the process of implementing the required performance measurement system for the CDBG program. The City is in the process of updating their subrecipient reporting format in order to capture all of the necessary information for the new system and has included performance measures in their subrecipient contracts for fiscal year 2006/07. 39 PART IV. A. COPY OF AD AND PUBLIC REVIEW NOTICE AFFIDAVIT OF PUBLICATION IN THE PALO ALTO WEEKLY 703 High St,, Palo Al:[o, California 94301 (650) 326-82t 0 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SANTA CLARA 05 2006 Department.. oi: Piannir.:j " mmunity Environment 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 bf 1he United States ol America, over the age of eighteen years, and not a party to or interested in the above entitled matter, that I was at and during all said times and still am the principal clerk of the publisher of the Palo Alto Weekly, a newspaper of general circulation published weekly in the city of Palo Alto in said County of Santa Clara, State of California’, tha! said is and was at all times herein mentioned a newspaper of general circulation as that term is defined by Section 6008 ol the Government Code ol the State of California; that said was adjudged as such by Superior Cour~ of the County of Sanla Clara, State of California, under date of Nove.mber 2, !982, Case Number P41989; thal 1he notice of which the annexed is a true printed copy, was set in lype not smaller lhan nonpareil and was preceded with words printed in black-face type not smaller than nonpareil, describing and expressing in general terms, 1he 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 Palo Allo Weekly ! declare under penalty of perjury thai the foregoing is true and co(rect. Exec ut ed on ~.~;~~,,=~ al Palo Alto, California, Signed NOTICE OF PUBLIC REVIEW AND COMMENT PERIOD FOR PALO ALTO~ S CONSOLIDATED ANNUAE PERFORMANCE AND EVALUATION REPORT FOR THE PERIOD JULY 1, 2005 TO JUNE 30, 2006 Notice is hereby given that the City of Palo Alto has completed a draft performance report for the Community Development Block Grant (CDBG) Program for fiscal year 2005/06. The Draft Consolidated Annual Performance and Evaluation Report (CAPER) is available for public review and comment prior to its submittal to the U.S. Department of Housing and Urban Development. The CAPER provides a summary of the programmatic accomplistmaents in affordable housing and community development during the 2005-2006 fiscal year. It describes the status of actions taken during the year to implement the strategies and objectives described in the City’s Consolidated Plan for the period July 1, 2005 to June 30, 2010, and the progress made in addressing identified priority needs and objectives. Public Review and Comment Period: The draft CAPER will be available for public review and comment for a 15-day period, beginning on Tuesday, September 5, 2006 and concluding at 5:00 p.m. on Tuesday, September 19, 2006. Written comments may be submitted during the review period and should be sent to the City of Palo Alto, Department of Planning and Community Environment, Attention: Eloiza Murillo-Garcia, 250 Hamilton Avenue, 5th Floor, Palo Alto, CA 94301; 650/329-2428; e-mail eloiza.murillogarcia@cityofpaloalto.org. To Obtain a Copy of the CAPER:. Copies are available at the Department of Pla~ming and Community Environment, City Hall, 5th Floor, 250 Hamilton Avenue, during regular business hours or by calling 650/329-2603. Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs, or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact: ADA Coordinator, City of Palo Alto, 650-329-2550 (Voice) ada@cityo fpaloalto.org PART IV. B. SUMMARY OF FUNDING PRIORITIES SUMMARY OF CDBG FUNDING PRIORITIES FISCAL YEAR 2005/2006 II. AFFORDABLE HOUSING (Goal: 74% of Budget) ACTIVITIES IN SUPPORT OF NEW CONSTRUCTION, CONVERSION & ADDITION OF NEW UNITS Permanent housing for families with children Other permanent housing including group homes, seniors, the disabled, shared housing, etc. Transitional housing with supportive services Permanent housing for the homeless or at-risk of homelessness. B.PRESERVATION OF EXISTING, LOWER INCOME RENTAL HOUSING Preservation of existing, federallY subsidized multi-family housing owned by profit motivated investors. Acquisition and/or rehabilitation of existing multi~family rental housing, including improvements to common areas. Acquisition and/or rehabilitation of existing buildings for special needs populations including shared housing and group homes. PUBLIC FACILITIES AND IMPROVEMENTS (Goal: 5 % of Budget) 1.Rehabilitation of existing facilities for use as shelters for the homeless or other special needs groups III. IV. PUBLIC SERVICES (Goal: 9% of Budget) Services directly related to the housing needs of low-income persons. Homeless shelter operating costs and the provision of auxiliary or related services. Services which address other needs of low income, elderly or special needs persons. ADMINISTRATION (Goal: 12% of Budget) Fair housing education, information, referral, advocacy, and counseling and complaint resolution. CDBG program administration and plalming costs. Planning studies PART IV. C. GRANTEE PERFORMANCE FINANCIAL REPORT Department of Housing & Urban Development Office of Community Planning COVER PAGE Grantee Performance Report Community Development Block Grant Program OMB Approval No: 2502-0006 (expl 3/31/93) NAME & ADDRESS OF GRANTEE Cityof Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Program Year End 2. Grant Number 6/30/06 B05MC060020 NAME & ADDRESS OF C.D. DIRECTOR Stephen A. Emslie Dept. of Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 NAME & TELEPHONE NUMBER OF PERSON MOST FAMILIAR WITH INFORMATION IN THIS REPORT Ms. Eloiza Murillo-Garcia (650) 329-2428 NAME & TELEPHONE NUMBER OF PERSON TO CONTACT ABOUT DISCLOSURES REQUIRED BY THE HUD REFORM ACT OF 1989 Ms. Eloiza Murillo-Garcia (650) 329.-2428 Have these Community Development Block Grant (CDBG) funds been used: a. to meet the community development program objectives in the final statement for this program year? If no, explain, in narrative attachment, how: (1) the uses did not relate to program objectives; and (2) future activities or program objectives might change as a result of this year’s experiences. Yes exclusively to either benefit low-and-moderate (Iow/mod) income persons, aid in the prevention or elimination of slums or blight, or meet community development needs having a particular urgency? If no, explain in a narrative attachment. Yes such that the grantee has complied with, or will comply with, its Certification to expend not less than 70% of its CDBG funds, during the specified period, on activities which benefit Iow/mod income persons? If no, explain in a narrative attachment. Yes Were citizen comments about this report and/or the CDBG program received? If yes, attach a summary. No This form may be reproduced on office Copiers. Previous editions are obsolete. Retain this record for 3 years. Form HUD-4949.1 (11/20/92) Ref Handbook 6510.2 Page 1 of 2 S:LPLAN\PLADIVL~dvance Planning\cdbg\CAPER\gpcoverpage_2006.d0c Department of Housing & Urban Development Office of Community Planning COVER PAGE Grantee Performance Report Community Development Block Grant Program OMB Approval No. 2502-0006 (exp. 3/31/93) Indicate how the Grantee Performance Report was made available to the public: a. BY PRINTED NOTICE: Advertisement in Palo Alto Weekly September 1,2006. b. BY PUBLIC HEARING: A Public Hearing was held on April 4, 2006 to discuss allocation recommendations. A Public Hearing was held on May 1, 2006 to determine final funding allocations. c.OTHER: A notice regarding the public review period for the draft CAPER was mailed to a list of interested individuals and posted on the City’s website. 10.The following forms must be completed and attached: a. Activity Summary, form HUD 4949.2 b. Financial Summary, form HUD 4949.3 c. 1-4-1 Replacement, form HUD 4949.4 d. Rehabilitation, form HUD 4949.5 e. Displacement, form HUD 4949.6 I hereby certify that: This report contains all required items identified above; Federal assistance made available under the Community Development Block Grant Program (CDBG)has not been utilized to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the start of the most recently completed CDBG program year; all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties (18 U.S.C. 1001, 1010, 1012, U.S.C. 3729, 3802) Typed Name & Title of Authorized Officia] Representative FRANK BENEST City Manager Signature Date This form may be reproduced on office Copiers. Previous editions are obsolete. Retain this record for 3 years. Form HUD-4949.1 (11/20/92) Ref Handbook 6510.2 Page 2 of 2 S :\PLAN~PLADIV~Adv ance Planning\cdbg\CAPER\gpcoverpage_2006.doc FINANCIAL SUMMARY FORM PY 2005-2006 Revised 9/27/06 Financial Summary U.S. Department of Housing and Urban Development Grantee Performance Report Office of Community Planning & Development Community Development Block Program ’ <.i~ ¯0MB Approval No. 2506-0006(Exp. 3/31/93) i.Name of Grantee 2. Grant Number 3. Reporting Period City of Palo Alto B05MCO60020 From 07/01/05 To 06/30/06 Part I: Summary of CDBG Resources I.Unexpended CDBG funds at end of previous period 2.Entitlement Grant from form HUD-7082 3.Surplus Urban Renewal Funds 4.Section 108 Guaranteed Loan Funds (Principal Amount) 1,033,926 779,281 5.Program income received by:Grantee (Column A) a. Revolving Funds b. Other (identify below)10,000 Loan Repayments/Rental Income/Interest Total Program Income (sum of columns a and b) 6.Prior Period Adjustments (if negative, enclose in brackets) 7.Total CDBG Funds availabie for use during this report period Subrecipient (Column B) 67,713 77,617 1,890,824 Part II: Summary of CDBG Expenditures 8.Total expenditures reported on Activity Summary 9.Total expended for Planning & Administration (cdbg/pr~ec[sen[ine0 i0.Amount subject to Low/Mod Benefit Calculation Ii.CDBG funds used for Section 108 principal & interest payments 12.Total expenditures (line 8 plus line ii) 13.Unexpended balance (line 7 minus line 12) 164,856 1,317,264 1,482,120 0.00 1,482,120 408,704 Part lll:Low/Mod credit This Reporting Period 14.Total Low/Mod credit for multi-unit housing expenditures 15.Total from all other activities qualifying as low/mod expenditures 16.Total (line 14 plus line 15) 17.Percent benefit to low/mod persons (line 16 divided by line i0 this reporting period) 1,076,486 240,778 1,317,264 100% Part IV: Low/Mod Benefit for Multi-Year Certifications (Complete only if certification period includes prior years) Program years (PY) covered in certification PY 2003,2004,2005 18. Cumulative net expenditures subject to program benefit calculation 19.Cumulative expenditures benefiting low/mod persons 20.Percent benefit to low/modpersons (line 19 divided by line 18) This form may be reproduced on local office copiers Previous editions are obsolete Retain this record for 3 years. 09/27/06 form HUD-4949.3(II!24!92) ref Handbook 6510.2 Financial Summary Grantee Performance Report Community Development Block Program U.S. Department of Housing and Urban Development Office of Community Planning & Development 0MB Approval No. 2506-0006(Exp. 3/31/93) Part V: For Public Service (PS) Activities Only: Public Service CAP Calculation 21.Total PS expenditures from column h, form HUD 4949.2a 127,392 22.Total PS unliquidated obligations from column r, from HUD 4949.2a -0- 23.Sum of line 21 and line 22 127,392 24.Total PS unliquidated obligations reported at the end of the previous reporting period.-0- 25.Net obligations for public services (line 23 minus line 24)127,392 26.Amount of Program Income received in the preceding program year 122,319 27.Entitlement Grant Amount (from line 2)779 281 28.Sum of lines 26 and 27 901,600 29.Percent funds obligated for Public Service Activities (line 25 divided by line 28)[14.13%1 Part VI: Planning and Program Administration Cap Calculation 30.Amount subject to planning and adminstrative cap (grant amount from line 2 plus line 5) 31.Amount expended for Planning & Administration (from line 9 above) 32.Percent funds expended (line 31 divided by line 30) NE 5a: PROGRAM INCOME NARRATIVE Low Interest Loan Repayments (Housing Improvement Program) Palo Alto Housing Corp. Rental property income 10,000 67,617 177,6171 All interest earned on the Housing Improvement Program Loan Payments was returned to the u.S. Treasury. Other Program Income Activity No.Description Grantee Subrecipient 0.00 0.00 Total 0.00 0.00 09/27/06 2 This form may be reproduced on local office copiers Previous editions are obsolete Retain this record for 3 years. Financial Summary Grantee Performance Report Community Development Block Program form HUD-4949.3(II!24/92) ref Handbook 6510.2 U.S. Department of Housing and Urban Development Office of Community Planning & Development OMB Approval No. 2506-0006(Exp. 3/31/93) GPR HANDBOOK APPENDIX 3: ITEM E CALCULATION OF BALANCE OF UNPROGRAMMED FUNDS RECONCILIATIONOFLINE(S) OF CREDIT (LOC) AND CASH BALANCES TO UNEXPENDED BALANCE OF CDBG FUNDS SHOWN ON GPR Complete the following worksheet and submit with the attachment: LINEXPENDED BAiJ~NCE SHOWN ON GPR (line 13 of HTJD 4949.3) ADD: LOC balance(s) as of GPR Date Cash on Hand: Grantee Program Account Subrecipients Program Accounts 408,704 Revolving Fund Cash Balances Section 108 Accounts (in contract) -0- SUBTP~ACT: Grantee CDBG Program Liabilities (include any reimbursements due to the Grantee from program funds) -0- Subrecipient CDBG Program Liabilities (same instructions as above) -0- TOTAL RECONCIL’ING BALANCE: UNRECONCILED DIFFERENCE:0 When grantees or subrecipients operate their programs on a reimbursement basis, any amounts due to the grantees or subrecipients should be included in the Program Liabilities. 408,704 408,704 This form may be reproduced form HI!D-4949o3 (11/24/92 on local office copiers ref Handbook 6510.2 Previous editions are obsolete Retain this record for 3 years. U.S. Department of Housing & Urban Development Office of Community Planning and Development 09/27/06 REHABILITATION ACTIVITIES Grantee Performance Report Community Development Block Grant Program 0MB Approval No. 2506-0006(exp. 3/31/93) Name of Grantee Grant Number Program Year City of Palo Alto B05MC060020 From 07/01/04 To 06/30/05 All grantees must submit this form,I Single-unit I Multi-unit whether or not they have CDBG funded I Activities I Activities rehabilitation programs.~(I Unit)I (2+ Units) I. Check box only if grantee has no CDBG rehabilitation activities: X 2.Staffing: number of Staff-Years (FTE staff years to tenths) 3.Current Program Year Expenditures: Activity delivery costs from CDBG funds a.Staff costs: Amount expended in 2 above b.Other direct costs (not included in 4) 4.Current Program Year Expenditures: For all projects (a+b+c below) a.-CDBG funds expended b.Other public (Federal,State,local) funds exp’d. c.Private funds expended 5.Project/Units Rehabilitated/Committed a. Number of projects committed (multi-unit only) Projects Number of units committed Units Units 6.Obligations: Amount obligated for projects/units committed in 5aand 5b a.CDBG funds obligated b.Other public(Fed.,State,local) funds obligated c.Private funds obligated 7. Projects/Units Rehabilitated/Completed a. Number of projects completed(multi-unit, only) Projects b. Number of units completed Units Units Cumulative Expenditures: ao CDBG funds expended b.Other public(Federal,State, local) funds exp’d. c.Private funds expended 09/27/06 4 Explanation of Differences Between the PR26 - CDBG Financial Summary for Program year 2005 and Financial Summary Form PY 2005-2006 The PR26 report shows the incorrect amount of program income received during fiscal year 2005-2006. Line 05 shows a total amount of $82,356.53 received, however, the actual total amount of program income received in fiscal year 2005-2006, was $77,617.33 as demonstrated in both the PR01 and PR09 reports. Because of this, there is a difference between some of the amounts on the PR26 report and the financial summary prepared by the City of Palo Alto. ’ Line PR 26 Report Amount Correct Amount 05 -$82,356.53 $77,617.33 08 $1,895,563.53 $1,890,824.33 16 $413,443.25 $408,704.05 43 $82,356.53 $77,617.33 45 $861,637.53 $856,898.33 46 19.12%19.24% In addition, line 33 shows a total amount of program income received in the previous program year as $149,532.88. However, the actual amount received was $122,319.04, as demonstrated by the PR01 report. Line PR 26 Report Amount Co~e~ Amount 33 $149,532.88 $122,319.04 35 $928,813.88 $901,600.04 36 13~72%14.13% oo 0~ ~~ ~00~0~0~ ~ ~00o ~ ~ H~Q 0 o 0 o oooo~ooooooooooo ooooooo ~~000~0 ~O000ZZ~ooooooooo==o ~00ooooo~oo~~Q o © © © o ..... ~ooo~ ...........~o~ooo~o~ooooooooo ooooooooooo o ooo o ooooo o z o 0 oo ~oo~ooo~o~ .... ~ ooooooooooooooooooo ~ooo ooo oooo ooooo~ooooooooooooooooo oooooooooooooooooooooooooooooooooooooo ooooooooo o ooooooooooooooooooo 0 Ho ~ o o oo 0 © o o~ o [nO0 0 0 u z o o o o o o o o o o o o o o o :~ ou o ~ U 0 o 0 o t~ ~o~ oO o © 0000~ 0 0 o o ~~~ o~ ~ ~ ...... o o o o o o o o o o o ~o ~ ~0 0 0 o © © ~ Z o o © © H ~ O00Q o o H Z © ~ u o 0 0 o Z H o o 0~ ° oooooooo~ o o o o< oo z t~ o o o o H H o 0o~0~0~ ~0~ o o H o o o o o o o o o o L~ ~-5 0 o L~ 0 0 © m © ~ o o o o o o o o o o >o ~m 0 ~m ~ m tr~ H o o U o o oooooooo~ o o o o ~ trl t~ m ~ © © ~ o o 0 o o o o o o o o o o o o o o o o o o o o H 0 o 0 ~< t~ o o Zm H o ~00000 ~.,O00N o o ~ 0 0 0 , ~o 0¯~]o go o o o o o o o o o o o ~o~ o~o~ 0o~0 ~0~ o, 0~<~~0~ oooooooooo~ o o o o o o o o o o ~ U ~0~ o o ~0 © ~ H t~ ~ t~ o ~ o ~0~ ~° 0 o o~ 0 0 U ~ 0 0 0 o~ U o o ~ H ~’ 0 ~a ~., o z 0o~~0~ 0~<~ ~.. o o o~ u o~ o~o~ Oo~N~O~0~ oo~ OH<~~0~ o a o o H o z O0 O0 O0 0 b4 0 0 0 0 o o o o o o o o ~~. ~] ~0HO~ ~"© © © © t~ © ~ cn o oz 0o~ © m~ o o u o ~ o 0 t~ ° t~ o~o~ ~0~ 0~<~ o 0 o ~ © © g° <. o 00 m © H o H o o o o o 0000~O0 000 o o o o 0 © © o H o o H 0o~ ~H © ~.. 0 0 m 0 ot~ t~ o~ o o~ o SUMMARY OF CDBG ACCOMPLISHMENTS FISCAL YEAR 2005-2006 Priority Need Category Catholic Charities - Long Term Care Ombudsman Clara-Mateo Alliance - Shelter /Transitional Housing (Families) Clara-Mateo Alliance - Shelter /Transitional Housing (Adults) !Emergency Housing Consortium - Homeless Shelter Services InnVision - Urban Ministries Drop-In Center Palo Alto Housing Corporation - SRO Hotels Supportive Services Shelter Network - Haven House Mid-Peninsula Alano Club Sub-total Project Sentinel (fair housing services) City of Palo Alto Admin Sub-total Community Housing Alliance - Alma Garden Apartment Acquisition Economic and Social Opportunities - Housing and Energy Services Housing Development Fund Lytton Gardens - Kitchen Renovation Palo Alto Housing Corporation - Oak Manor Townhomes Pipe Project Palo Alto Housing Corporation - Barker Hotel Improvement Plan Stevenson House - Water Pipes & Freezer Project Sub-total Emergency Housing Consortium - Our House Youth Project Sub-total Grand Total Expended $6,000 $21,392 $21,000 $8,0O0 $24,000 $23,000 $19,000 $5,000 $127,392 $26,800 $138,056 $164,856 $900,000 $60,000 $12,099 $101,302 $6,714 $37,232 $31,238! $1,148,585 Number of Beneficiaries Served Proposed Accomplished 495 597 3 18 35 53 50 53 550 920 131 154 500 547 35 39 1,799 2,381 16 20 N/A 16 10 26 N/A 49 33 25 120 263 N/A 20 10 53 N/A $41,287 $41,287 $1,482,1211 1 1 2,079 49i 33 25 120 290 Underway 0 2,691