HomeMy WebLinkAboutStaff Report 1342City of Palo Alto (ID # 1342)
Finance Committee Staff Report
Report Type:Meeting Date: 4/5/2011
April 05, 2011 Page 1 of 8
(ID # 1342)
Summary Title: Fiscal Year 2011/12 and 2012/13 CDBG Allocations
Title: Public Hearing: Recommendation on Proposed Fiscal Year 2011/2 012 and
2012/2 013 Community Development Block Grant Funding Allocations and the
Draft 2011/2 012 Annual Action Plan
From:City Manager
Lead Department: Planning and Community Environment
Recommendation
Staff and the Human Relations Commission recommend that the Finance Committee
recommend that the City Council :
1.Allocate CDBG funding as recommended in the draft 2011/12 Action Plan and as
described in this report and on the attached chart (Attachment A).
2.Authorize the City Manager, to execute the 2011/12 application and Action Plan for
CDBG funds, and any other necessary documents concerning the application, and to
otherwise bind the City with respect to the application and commitment of funds.
3.Authorize staff to submit the 2011/12 Action Plan to the U.S. Department of Housing
and Urban Development (HUD) by the May 15, 2011 deadline.
Executive Summary
The City of Palo Alto receives funds annually from the U.S. Department of Housing and Urban
Development (HUD) as an entitlement city under the Community Development Block Grant
(CDBG) Program. It is the principal Federal program providing localities with grants to devise
innovative and constructive neighborhood approaches to improve the physical, economic and
social conditions in their communities through “the development of viable urban communities,
by providing decent housing and a suitable living environment and expanding economic
opportunities, principally for persons of low and moderate income.”
HUD requirements include preparation of a five-year strategic plan of action, titled a
Consolidated Plan, to address priority housing and community development needs and to set
goals for attaining identified objectives. The City’s 2010-2015 Consolidated Plan was adopted
on May 3, 2010. Additionally, an Action Plan is prepared annually to identify specific projects to
be funded each year that implement the strategies identified in the Consolidated Plan. The
Draft Action Plan (Attachment B) is available for Public Review from March 28 through April 29,
2011.
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The Finance Committee is requested to review the draft 2011/2012 Action Plan and funding
recommendations. Upon review of the draft plans and funding recommendations, it is
requested that the Finance Committee make recommendations to the City Council. The City
Council will review the recommendations of the Finance Committee at a public hearing
scheduled for May 9, 2011. The Action Plan will then be submitted to HUD to meet the May 15,
2011 deadline.
Background
The City of Palo Alto receives funds annually from HUD as an entitlement city under the CDBG
Program, authorized by Title I of the Housing and Community Development Act of 1974, as
amended. Palo Alto has historically expended all of its CDBG funds on projects benefiting low-
and very-low-income persons.
HUD regulations require that all activities using CDBG funds must meet one of the three
national objectives of the CDBG Program:
Ø Benefit low-and very-low-income persons;
Ø Aid in the prevention or elimination of slums or blight; or
Ø Meet other community development needs having a particular urgency, or posing a
serious and immediate threat to the health or welfare of the community.
HUD has not yet provided the City of Palo Alto with the actual amount of the CDBG entitlement
grant for fiscal year 2011/12. In order to move the CDBG process forward, the amount of the
grant has been estimated to be approximately the same as last year’s grant. Once the actual
amount of the grant is known, slight adjustments will be made to the allocations based on the
actual funds available.
The City has three primary CDBG program activity areas in which to allocate the funds:
1)Public Services: Social service and fair housing activities that benefit low-income
persons. Under federal law the maximum amount that can be expended under this
category is 15 percent of the grant allocation and 15 percent of any program income for
the previous year. For fiscal year 2011/12 it is estimated that approximately $122,000
will be available for public services.
2)Capital Projects: Capital improvement activities such as acquiring land for housing,
purchase or rehabilitation of existing rental housing, improving accessibility, and making
public improvements have historically been the primary focus of the City’s CDBG
program. Economic development projects which benefit low-income people by job
creation can also be considered under the capital funding category. There are no
funding limitations in this category.
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3)Planning and Administration: This category is used to reimburse CDBG program
management, oversight and coordination, environmental reviews, and CDBG-related
planning activities. Federal regulations limit the amount that can be spent in this
category to 20 percent of the grant and 20 percent of the estimated program income for
the following year. For fiscal year 2011/12, it is estimated that approximately $158,000
would be available under this cap.
Action Plan
HUD requires the submittal of an Annual Action Plan by May 15 of each year that identifies the
specific projects to be funded to implement the strategies identified in the Consolidated Plan.
The 2010-2015 Consolidated Plan is a five-year strategic plan of action that addresses priority
housing and community development needs. It also sets specific goals for attaining identified
objectives. The 2010-2015 Consolidated Plan was adopted by the City Council on May 3, 2010.
CDBG Applications
The City is on a two-year funding request cycle. Applications for the 2011/12 and 2012/13
period were mailed to area housing and human service providers on November 4, 2010 and
posted on the City’s website. A notice announcing the availability of applications for 2011/12
and 2012/13 CDBG funding was published in the Palo Alto Weekly on November 5, 2010 with
completed applications due December 16, 2010. A mandatory proposal-writing workshop was
conducted on November 15, 2010 to assist applicants with program regulations and project
eligibility questions. The CDBG applications received are identified on the attached chart
(Attachment A).
Citizen Participation
The Citizen Participation Plan is a required component of the CDBG program. HUD regulations
require CDBG recipient agencies to prepare and implement a plan that provides adequate
opportunity for citizens to participate in an advisory role in the planning, implementation and
assessment of the CDBG program. On October 18, 2010 the City adopted an amended Citizen
Participation Plan that shifted the CDBG advisory role from a separate Citizens Advisory
Committee (CAC) to the established Human Relations Commission (HRC).
The intention of the new plan was to provide a collaborative link between the CDBG funding
process and the Human Service Resource Allocation Process (HSRAP). There is a great deal of
overlap in the issues before the HRC and the CDBG goals and objectives detailed in the
Consolidated Plan, such as addressing affordable housing issues, homelessness, the needs of
seniors and persons with disabilities, impediments to fair housing choice, nutrition, mental
health, health care, domestic violence prevention, etc. It was thought that this new process
would provide a more coordinated, synchronized approach to the City’s two human service
funding sources, promote internal efficiencies, and produce a more collaborative process that
provides greater benefit to program beneficiaries. A sub-committee comprised of staff and two
members of the HRC was established to review both the CDBG and HSRAP funding applications
and to provide recommendations to the full Human Relations Commission. The sub-committee
met on February 1, 8, 15, and 22, 2011 at Cubberley Community Center to discuss the CDBG
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and HSRAP applications. The meetings were open to the public and publicized on the City’s
website. The sub-committee consisted of the following members:
Ray Bachetti, Chair, Human Relations Commission
Dolores Bernardo, Human Relations Commissioner
Suzanne Bayley, Planning Division
Minka Van der Zwaag, Office of Human Services
The Human Relations Commission considered the funding recommendations of the sub-
committee at a public hearing on March 16, 2011. After listening to comments from the public,
and discussing the CDBG regulations, the Human Relations Commission voted unanimously to
endorse the sub-committee’s funding recommendations.
Commitment of Funds
HUD regulations require that CDBG funds be expended in a timely manner. The regulatory
requirement is that no more than 1.5 times a jurisdiction’s annual entitlement grant amount
may remain in the City’s letter of credit 60 days prior to the end of the program year. In an
effort to reduce the backlog of unspent CDBG funds, HUD employs monetary sanctions against
jurisdictions that exceed this regulatory standard. For this reason, all funding applications are
scrutinized to insure the readiness of the program or project to move forward and expend
funds in a timely manner.
Discussion
Palo Alto’s CDBG program continues to be directed towards expanding and maintaining the
affordable housing supply; promoting housing opportunities and choices; maintaining and
improving community facilities; and providing supportive services for targeted low-income
groups, including persons who are homeless, persons with disabilities, the elderly, and other
special needs groups. Additionally, Palo Alto’s CDBG program proposes as a high priority to
expand the goal of creating economic opportunities for low-income persons. All of the
proposed projects for CDBG funding for fiscal year 2011/12, as presented in the draft 2011-12
Action Plan, address the priority housing and supportive service needs identified in the
Consolidated Plan.
Estimated 2011/12 Funds Available for Allocation
The total amount available for allocation in fiscal year 2011/12 is estimated to be $894,304,
summarized as follows:
$731,500 FY 2011/12 Estimated CDBG entitlement grant from HUD
$ 60,000 Estimated program income for 2011/12 from the Palo Alto Housing Corporation
that is generated from rental income in excess of expenses on specific properties
acquired or rehabilitated with CDBG funds
$ 102,804 Reallocation of funds previously awarded but not expended
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$894,304 ESTIMATED TOTAL AVAILABLE FOR ALLOCATION
Maximum Available for Public Services
Estimated 2011/12 CDBG Grant 731,500
Estimated 2011/12 Program Income 82,675
Public Service Cap 814,175 x 15% = $122,126
Maximum Available for Planning/Administration
Estimated 2011/12 CDBG Grant 731,500
Estimated 2012/13 Program Income 60,000
Planning/Administration Cap 791,500 x 20% = $158,300
Maximum Available for Capital Projects
$894,304 (Total Available) -$122,126 (Public Services) -$158,300 (Administration) = $613,878
Greater funding for capital projects would be available if less is provided for administration or
public services.
FY 2011/12 -Funding Requests and Recommendations
A complete list of all of the applications submitted for 2011/12 and 2012/13 funding, as well as
the funding recommendations, are identified in Attachment A. The funding amounts
recommended for fiscal year 2011/12 will be adjusted by staff when the actual amount of the
2011/12 CDBG funding allocation is known. The public service recommendations will be
adjusted to the maximum available under the public service cap at the same percentages in the
table below, up to the amount of the request. Decreases will be applied at the same
percentages.
In an effort to ensure there is no General Fund subsidy for the administration of the CDBG
program, the CDBG staffing level has been reduced to a 1.0 full time equivalent position and
Project Sentinel’s fair housing program was shifted this year from the Administration category
to the Public Service Category. Other program changes, such as the revised Citizen
Participation Plan, the two-year funding and contract processes, and revised monitoring
guidelines have also been implemented to improve the efficiency of the program.
City staff and HUD staff are exploring eligibility issues related to the Downtown Streets Team -
Workforce Development Program proposal. The program proposes to collaborate with
Manpower Temporary Services for the provision of jobs for very low-income residents. This is a
new type of activity and there are numerous questions and issues being explored with HUD to
determine program eligibility under the economic development regulations. If the activity is
not deemed eligible due to HUD regulatory interpretations, staff and the HRC recommend that
the $147,000 in funding be shifted to the Palo Alto Housing Corporation proposal for new
windows at the California Park Apts.
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Table 1 below identifies the applications recommended for funding in fiscal year 2011/12:
TABLE 1
FUNDING RECOMMENDATIONS
FOR FISCAL YEAR 2011-2012
APPLICANT AGENCY
2011/12
FUNDING
REQUEST
2011/12
STAFF AND HRC
RECOMMENDATIONS
Public Services
1. Catholic Charities
Long-Term Care Ombudsman
6,500 5,000
2. InnVision
Opportunity Center
50,000 50,000
3. Palo Alto Housing Corporation
SRO Resident Support Services
52,248 26,000
4. Support Network for Battered
Women
Domestic Violence Services
10,000 10,000
5. Project Sentinel
Fair Housing Services
31,440 31,000
Total Public Services (Cap $122,126)150,188 122,000
Program Administration
6. City of Palo Alto
Program Administration
133,747 133,747
Total Administration (Cap $158,300) 133,747 133,747
Capital Projects/Economic Development
7. Downtown Streets Team/Manpower
Workforce Development Program
147,000 147,000*
8. Community Working Group
Alma Gardens Apartment Rehab.
302,788 302,788
9. Palo Alto Housing Corporation
Sheridan Apts. New Windows & AC
in Common Area.
59,167 59,167
10. Palo Alto Housing Corporation
Ventura Apts. New Windows and
Drainage Upgrade
129,602 129,602
11. Palo Alto Housing Corporation
Cal Park Apts. New Windows
248,835 *
Total Capital/Economic Development $887,392 638,557
TOTAL $894,304
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* Researching eligibility for #7; if not eligible, funding will go to #11
FY 2012/13 -Funding Requests and Recommendations
The CDBG funding covers a two-year cycle. Funding for fiscal year 2012/13 will be contingent
upon the amount of the CDBG allocation, program income and any available funds for
reallocation. The President’s proposed budget for fiscal year 2012 recommends a 7.5%
reduction to the national CDBG allocations. Additionally, the Obama Administration believes
that the formula to distribute the CDBG funds is outdated and does not target the most
economically distressed communities. As a result, the City’s CDBG program may receive a
drastic reduction in funding in the 2012/13 fiscal year. There has been no indication from the
federal government that CDBG funding for the 2011/12 fiscal year, would be significantly
reduced.
In 2012/13. the public service and administration caps would be re-calculated in accordance
with the funding available. If agencies remain eligible and meet program goals and objectives,
the public service contracts would be extended another year based on the same percentage of
the CDBG funds available for public services in fiscal year 2011/12. If the Downtown Streets
Team Project has been determined to be an eligible activity, and the program goals and
objectives have been achieved, the contract would be extended another year based on the
CDBG funds available.
The capital projects that would be reviewed, re-evaluated and prioritized for funding
recommendations in 2012/13 are as follows:
1. PAHC/Cal Park Apartments (New Windows) $248,835
2. Magical Bridge $500,000**
3. Mid Peninsula Housing Corp/ Palo Alto Gardens (Cool Roof) $145,464
4. Avenidas –HVAC Upgrades $135,000
5. AchieveKids –Cool roof $ 120,000
Total Capital Projects: $1,149,299
**Staff is reviewing the Magical Bridge Project with HUD to determine if a portion of the
project may be eligible for funding.
If there is more money available than projects, a new application process would be initiated for
additional proposals.
Timeline
Funding recommendations made by the Finance Committee will be forwarded to the City
Council for review and approval at a public hearing scheduled for May 9, 2011. Subsequently,
the Annual Action Plan will be submitted to HUD to meet the May 15, 2011 deadline.
April 05, 2011 Page 8 of 8
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Policy Implications
All of the applications recommended for funding in fiscal year 2011/12 are consistent with the
priorities established in the City’s draft Consolidated Plan for the period 2010 to 2015. They are
also consistent with the housing programs and policies in the adopted Comprehensive Plan.
Environmental Review
For purposes of the National Environmental Policy Act (NEPA) and the California Environmental
Quality Act (CEQA), budgeting in itself is not a project. Prior to the commitment or release of
funds for each of the proposed projects, staff will carry out the required environmental reviews
or assessments and certify that the review procedures under CEQA, HUD and NEPA regulations
have been satisfied for each particular project.
Attachments:
·Attachment A: 2011 Recommendations (DOC)
·Attachment B: Draft Action Plan 2011-12 (PDF)
Prepared By:Suzanne Bayley, Interim CDBG Coordinator
Department Head:Curtis Williams, Director
City Manager Approval: James Keene, City Manager
Attachment A
ID #1342
City of Palo Alto CDBG Applications
FY 2011/12 and 2012/13
Estimated Funding Available for FY 2011/12 $894,304
Available for Public Services 122,000
Available for Planning/Admin 155,000
Available for Capital Projects: 617,304
PUBLIC SERVICES
Agency Program 2011/12
Request
2012/13
Request
Recommendation
2011/12
Recommendation
2012/13
Catholic Charities Ombudsmen 6,500 6,500 5,000 **
InnVision, the Way Home Opportunity Center 50,000 50,000 50,000 **
InnVision, the Way Home Clara Mateo Alliance
Shelter
50,000 50,000 Facility to Close
4/30/11
Facility to Close
4/30/11
Palo Alto Housing Corp.SRO Resident
Support
52,248 56,929 26,000 **
YWCA / Support Network Domestic Violence 10,000 10,000 10,000 **
Project Sentinel Fair Housing 31,440 32,383 31,000 **
Community Technology HMIS -SCC 4,000 4,000 -0--0-
Emergency Housing
Consortium
Palo Alto HOMES 10,000 10,000 -0--0-
Next Door Solutions to
Domestic Violence
Shelter & Services 5,000 5,000 -0--0-
Silicon Valley Independent
Living Center
Housing Program for
Persons with
Disabilities
7,500 7,763 -0--0-
Shelter Network Haven Family House 8,500 8,500 -0--0-
Public Service Total 235,188 122,000 **
Attachment A
ID #1342
PLANNING AND ADMINISTRATION
City of Palo Alto
CDBG Planning and
Administration
133,747 133,747 133,747 ****
CAPITAL PROJECTS/ECONOMIC DEVELOPMENT
Downtown Streets Team Workforce Development
Program
147,000 159,000 147,000****
Stevenson House Senior Facility Rehab 182,112 285,000 -0--0-
Avenidas Senior Home Repair 10,000 10,000 -0--0-
Avenidas HVAC Upgrade 135,000 -0--0-*****
AchieveKids Cool Roof 120,000 -0--0-*****
Community Working
Group
Alma Gardens Rehab 302,788 -0-302,788
Friends of Palo Alto Parks The Magical Bridge 500,000 500,000 -0-*****
Mid Peninsula Housing
Corp
Palo Alto Gardens Rehab 145,464 -0--0-*****
PAHC/California Park
Apts.
New Windows 248,835 -0-******
PAHC/Sheridan Apts.New Windows &
AC in Common Area
59,167 -0-59,167
PAHC/Ventura Apts.New Windows &
Drainage Upgrade
129,602 -0-129,602
Senior Housing Solutions Mt. View Senior
Residence Project
250,000 -0--0-
Capital Total 2,082,968 491,557
2011/12 Total 2,598,903 894,304
Attachment A
ID #1342
Program Year 2011/12
*Economic Development/Capital Projects: If the Downtown Streets Team project is deemed not to be an eligible activity
under HUD economic development regulations, the $147,000 would be allocated to the PAHC/California Park window
project (# 21 above).
Program Year 2012/13
**Public Services: If agencies remain eligible and meet program goals and objectives,the contracts would be extended
another year based on the same percentage of the CDBG funds available for public services in FY 2011/12.
***Economic Development: If the Downtown Streets Team project has been deemed an eligible activity and the program
goals and objectives have been achieved, the contract would be extended another year based on the CDBG funds available in
FY 2012/13.
****Planning and Administration: Funding based on the available CDBG dollars for planning and administration in FY
2012/13.
*****Capital Projects: These projects will be reviewed, re-evaluated and prioritized for funding recommendations based on
the CDBG funds available in the 2012/13 program year.
CITY OF PALO ALTO
201112012 DRAFT ACTION PLAN
Annual Update of the City's Consolidated Plan for the Period
July 1,2011 to June 30, 2012
Public Review Period March 28,2011 -April 29, 2011
Prepared by Department of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, California 94301
Curtis Williams, Director
For Information, Please Contact: Suzanne Bayley, Interim CDBG Coordinator
Plaoning Division, City of Palo Alto (650) 329-2428
Table of Contents
Executive Summary ................................................................................. 3
Sources of Funds ...................................................................................... 5
Federal Resources ................................................................................. 5
Local and Other Resources ...................................................................... 6
Leveraging and Matching Requirements ...................................................... 9
Geographic Distribution ............................................................................. 1 0
C 't P rt" t' 10 ommum y a IClpa IOn .......................................................................... .
Allocation Priorities ................................................................................. 11
Table: Summary of Specific Housing/Community Development Objective ................ 11
2011112 Activities to be Undertaken ............................................................. 17
Table: Sources ana Uses of Funds ............................................................. .17
Public Service Activities ......................................................................... .18
Housing Activities .............................................................................. 19
Economic Development Activities ............................................................ 20
Planning and Administration .................................................................. 20
Alternative Activity ............................................................................. 21
Services and Resources Targeted to Homeless and Special Needs Populations ............ 21
Activities to Affirmatively Further Fair Housing Choice ..................................... 23
Evaluation of Past Performance .................................................................. 24
Actions to Remove Barriers to Affordable Housing ........................................... 24
Amendments to Plan ............................................................................... 25
Urgent Need Activities ........................................................................... .25
M 't' fA t' 't' 25 om onng 0 c IVI les .......................................................................... .
Coordination ........................................................................................ 25
Appendix A -Application for Federal Assistance Form SF-424
Appendix B -Certifications
Appendix C -Proposed Projects
Appendix D -Public Hearing Advertisement
Appendix E -Map
Appendix F -Public Comment
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Executive Summary
This one-year Action Plan describes the eligible activities that the City of Palo Alto intends to
undertake in fiscal year 2011112 to address the needs and implement the strategies identified in
the adopted Consolidated Plan for the period July I, 2010 to June 30, 2015. It describes the
activities that the City plans to fund with Community Development Block Grant (CDBG) funds
in fiscal year 2011112 to address priority housing and non-housing community development
needs and to affirmatively further fair housing choice. It serves as the City's application for
federal funds under the Depattment of Housing and Urban Development (HUD) formula grant
programs.
The major goals of the 2010-2015 Consolidated Plan adopted by the City Council on May 3,
20 I 0 are summarized below:
Affordable Housing
,/ Increase the supply of affordable rental housing units by 125 new units
,/ Rehabilitation of older housing units owned by low-income persons
,/ Rehabilitation of older housing projects serving low-income tenants
Public Services
,/ Rehabilitation offacilities serving special needs populations
,/ Transitional housing programs and supportive services
,/ Emergency shelter and homeless services
High Priority Needs
,/ Employment opportunities for low-income persons and youth
,/ Small business loan programs for low-income residents
,/ Environmentally sustainable living environments
The City intends to provide funding for various activities which are consistent with the adopted
Consolidated Plan. The City will undertake several housing activities which all meet the
objective of providing decent affordable housing.
Housing projects that are planned for 2011112 include assistance to Community Working Group's
Alma Garden Apartments, a I O-unit affordable complex for low-income residents. The work will
include a new roof, structural and earthquake retrofits, and new windows for energy efficiency.
The Palo Alto Housing Corporation's Sheridan Apartments, a 57-unit complex for low-income
seniors and persons with disabilities, will receive funding for common area improvements to
improve energy efficiency. The 12-unit Ventura Apartments, also owned and managed by the
Palo Alto Housing Corporation, will receive funding for new energy efficient windows and
repairs to the drainage system. The funding ofthese rehabilitation projects will have the outcome
of improved energy efficiency and sustainability while keeping the rents affordable for lower
income residents.
3
The City will also provide funding for several public service projects, which all have the goal of
creating a suitable living environment. The proposed public service projects are: Palo Alto
Housing Corporation, single room occupancy (SRO) resident support program; InnVision-
Opportunity Center homeless support services and rotating church shelter program; Catholic
Charities -long-term care ombudsman program; and YWCA/Support Network for Battered
Women -domestic violence services and emergency housing.
A new pilot economic development program has been proposed this year by the Downtown
Streets Team and Manpower. The City intends to fund this program that proposes to train and
employ previously homeless or very-low income individnals in the local job market.
The City of Palo Alto will also expend a portion of the administrative funds allowed under the
program to provide CDBG program oversight and compliance with federal regulations.
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Sources of Funds
Federal Resoarces
Entitlement Grant Funding -Community Development Block Grants
The City of Palo Alto receives CDBG funds as an entitlement city through the U.S. Department
of Housing and Urban Development (HUD). In fiscal year 2011/12, Palo Alto will allocate
approximately $894,304 to eligible activities that address the needs identified in the Consolidated
Plan. Since HUD has not yet released the entitlement grant amount, an estimate is being utilized
until the amount of the actual grant funding is received. This funding includes $731,500 in
estimated CDBG grant monies, $60,000 in anticipated program income and $102,804 available
for reallocation to new activities from CDBG funds received in previous years. Program income
is income directly generated from the use of CDBG funds that is returned to the CDBG program
for allocation to new activities. The program income anticipated below is from the Palo Alto
Housing Corporation properties previously purchased or rehabilitated with CDBG funds where
income exceeded expenses.
Estimated FY 2011112 CDBG Entitlement Grant
Estimated Program Income 2010/11
Reallocated Funds:
Day Worker Center of Mountain View
Lytton Gardens/Shower Renovations
Stevenson House/Renovations
Inn Vision/CMA Shelter Closure
New Housing Development Fund
TOTAL ALLOCATION
Maximum Available for Public Services
Estimated FY 2011112 CDBG Entitlement Grant
$731,500
60,000
63,555
2,000
1,749
6,500
29,000
$894,304
Actual Program Income in FY 2010111 (through 3/31111)
$731,500
82,675
Maximum Available for Planning/Administration
Estimated FY 2011112 CDBG Entitlement Grant
Estimated Program Income for 2011112
$814,175 x 15% ~ $122,126
$731,500
60,000
$791,500 x 20% ~ 158,300
As the City of Palo Alto has not yet been informed by HUD of the actual amount of the
entitlement grant for fiscal year 2011112, the above caps and the actual funding for the proposed
activities will be adjusted once the actual funding amounts are known.
5
HOME Program
The City of Palo Alto is not an entitlement grantee under the federal HOME program and thus
does not receive a direct grant of HOME Program funds from HUD. The only way to access
HOME funds for housing projects located within the City of Palo Alto is for the City, or eligible
nonprofit organizations, to apply to the State of California for the funds in an annual competition.
Due to excessive demand for the State's HOME allocation, and rating criteria that does not favor
areas like Palo Alto, it is difficult to secure an award.
Section 8 Housing Vouchers
The Housing Authority of the County of Santa Clara administers the federal Section 8 program
countywide. The City anticipates that Section 8 vouchers will continue to be available to Palo
Alto residents in fiscal year 2011112 through the Moderate Rehabilitation Program, Housing
Choice Voucher Program, and the Shelter Plus Care Program.
McKinney-Vento Homeless Assistance Funds
Santa Clara County distributes federal McKinney Homeless Assistance funds to organizations in
the County that provide services to homeless persons and persons at-risk of homelessness. None
of the funding is currently targeted directly to shelter or supportive services in Palo Alto.
Local and Otller Resources
Human Service Resource Allocation Process (HSRAP)
In addition to the CDBG public service funds, the City will provide approximately $1.1 million
dollars from the General Fund in support of human services through its Human Service Resource
Allocation Process (HSRAP). The HSRAP funds, in conjunction with the CDBG public service
funds, are distributed to local non-profit agencies whose programs serve the needs of seniors,
children, youth and families, persons with disabilities, and those who are homeless, or at risk of
homelessness. A variety of supported programs provide mental and physical health care services,
tenant/landlord mediation, subsidized child care, senior services, adolescent counseling,
nutritional services, and programs for persons with disabilities.
Inclusionary Housing Programs/In-Lieu Fees
A jobs-housing linkage fee is assessed by local governments on new commercial developments,
and revenue is used to support local affordable housing activities. Inclusionary programs are
established through local ordinances that require market rate residential developers to set aside a
certain portion of units in a development for income-restricted affordable housing. Many
inclusionary ordinances also give developers the option of satisfying inclusionary housing
requirements through payment of an in-lieu fee. These fees are then directed toward other
affordable housing activities.
The Palo Alto Affordable Housing Fund is a local housing trust fund established by the City
Council to provide financial assistance for the development, acquisition and rehabilitation of
housing affordable to extremely low, very low, low and moderate-income households. The
Affordable Housing Fund is composed of the following:
6
V' Commercial Housiug Fuud -this fund is used primarily to increase the number of new
affordable housing units for Palo Alto's work force. It is funded with mitigation fees
required from developers of commercial and industrial projects. As of March 7, 2011 the
Commercial Fund had an available balance of approximately $681,640.
V' Resideutial Housing Fund -this fund can be used for acquisition, rehabilitation, new
construction and predevelopment of low-income housing. It is funded with mitigation
fees provided under Palo Alto's Below Market Rate (BMR) housing program from
residential developers and money from other miscellaneous sources, such as proceeds
from the sale or lease of City property. It is also used to pay for administration and
consultant contracts necessary to carry out the BMR program. As of March 7, 20 II the
Residential Fund had a balance of approximately $3,474,251.
V' Below market Rate (BMR) Emergency Fund -this fund was authorized by council in
September 2002 in order to provide funding on an ongoing basis for loans to BMR
owners for special assessment loans and for rehabilitation and preservation of the City's
stock of BMR ownership units.
The actual process for initiating an application for City Affordable Housing Funds will vary
depending on the particular circumstances. Usually, a nonprofit sponsor will apply to the
Department of Planning and Community Environment for housing subsidy funds when they are
in negotiation for a particular site. At other times, the City may issue a Request for Proposals
once it has secured or identified a potential housing site.
The Planning Department will present recommendations for each project together with a
proposed funding package to the City Council for approval. In almost all cases, funds will be
provided as a loan secured by the property. The repayment terms and interest rate have to be
tailored to the particular project since affordable housing typically is financed from multiple
sources with specific requirements.
The Housing Trust of Santa Clara County
The Housing Trust is a non-profit organization that combines private and public funds to support
affordable housing activities in the County, including assistance to developers and homebuyers.
The HTSCC is a public/private initiative, dedicated to creating more affordable housing in Santa
Clara County, using a revolving loan fund and grant-making program to complement and
leverage other housing resources. Four new affordable rental projects located in Palo Alto have
received loans from the HTSCC: Oak Court Apartments ($400,000), Opportunity Center
($650,000), Fabian Way Senior Housing by Bridge Housing ($650,000) and the Tree House
project ($350,000).
Mortgage Credit Certificates (MCC)
The federal government allows homeowners to claim a federal income tax deduction equal to the
amount of interest paid each year on a home loan. This itemized deduction only reduces the
amount of taxable income. Through an MCC, a homeowners' deduction can be converted into a
7
federal income tax credit for qualified first-time homebuyers. This credit actually reduces the
household's tax payments on a dollar for dollar basis, with a maximum credit equal to 10 to 20
percent ofthe annual interest paid on the borrower's mortgage. Mortgage credit certificates in
Santa Clara County are issued by the County directly to eligible homeowners.
State of California's Multifamily Housing Program (MHP)
The Multifamily Housing Program (MHP) has been a major source of funding for affordable
housing since 2002. The purpose of this program is to provide low-interest loans to developers of
affordable rental housing. The MHP General funds may be used for multifamily rental projects
involving new construction, rehabilitation, or conversion of nonresidential structures. MHP
Supportive Housing funds may be used for multifamily rental housing projects involving new
construction, rehabilitation, acquisition and rehabilitation, or conversion of nonresidential
structures for permanent rental housing only. Oak Court Apartments, developed by the Palo Alto
Housing Corporation and the Opportunity Center, developed by the Community Working
Group/Housing Authority of Santa Clara County received substantial funding from the MHP
program. The Fabian Way Senior Housing received an award of $5.25 million in permanent
MHP funding in 2008.
State of California's Local Housing Trust Fund Grant Program
Another component of Proposition 46 was funding for new and existing local housing trust funds.
A local housing trust fund is a public or private partnership created to receive on-going revenues
for affordable housing production such as Palo Alto's Commercial and Residential Housing
Funds. The City of Palo Alto applied for and received an award of$I,OOO,OOO in February 2004.
The City Council committed these funds for site acquisition for the Alma Street Family rental
housing project.
Santa Clara County Affordable Housing Fund (AHF)
The Santa Clara County Board of Supervisors established the Affordable Housing Fund with
initial funding of$18.6 million in 2002. The main purpose of the AHF was to assist in the
development of affordable housing especially for extremely low income and special needs people
throughout Santa Clara County. The Opportunity Center received an award of $2.5 million from
the AHF in the first round offunding approved in September 2003. The Bridge Fabian Way
Senior Housing was awarded $1.5 million from this fund in 2008. $960,000 was awarded to the
Tree House project developed by the Palo Alto Housing Corporation. The County has awarded
over $10 million from the AHF to date.
Low-Income Housing Tax Credits
The California Tax Credit Allocation Committee (CTCAC) holds two application cycles each
year. Typically, the first cycle is held in March and the second is held in July. Local non-profits
apply directly to the CTCAC for these funds when they have identified a project. Tax credits
were used for development of the Oak Court Apartments, the Opportunity Center, Fabian Way
Senior Housing, and the Tree House project sponsored by the Palo Alto Housing Corporation.
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STATE, LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE
HOUSING
Home
New Buyer Rental Homeless
Activity Acquisition Rehab Construction Assistance Assistance Assistance
STATE, LOCAL, and PUBLIC
Commercial Housing X
Fund
Residential Housing X X X X
Fund
State MHP X X X
City Owned Land X
MCC Program X
Housing Trust of X X X X X
Santa Clara County
Santa Clara County X X X X X
Housing Authority -
Section 8
County Department X
of Social Services
Santa Clara County X X X
Affordable Housing
Fund
PRIVATE RESOURCES
BMRRental& X X X
Owner Program
Private Lenders: AHP X X X
Nonprofit Developers X X X X X
Private Foundations X
and Churches
Leveraging and Matcfling Reqairements
The City of Palo Alto will leverage federal and private housing funds to the greatest extent
feasible consistent with the goals identified in the Consolidated Plan. The City will encourage
housing project sponsors to seek private financing and private grants, and to fully utilize other
state and federal housing development subsidies such as the low-income housing tax credit
program. The City will also utilize its local Affordable Housing Fund, as appropriate, to leverage
federal and private housing funds and to provide any required matching funds. Where eligible,
CDBG Housing Funds could be used as a portion of the matching requirement for federal housing
programs.
9
Homeless
Prevention
X
X
X
X
Geographic Distribution
The City considers the provision of all types of housing assistance on a citywide basis consistent
with the policies of the Comprehensive Plan. The City does not have specific target areas for
housing activities, but attempts to provide housing affordable to lower-income persons
throughout the City.
There are only a few areas that are considered to have a concentration of minority populations or
low-income residents in Palo Alto. There are three census tracts in Palo Alto that have a
concentration of Asian populations, primarily in the northern part of the City and there are also
four Census tracts in the northwestern portion of the City that have a concentration of lower
income households.
In addition, Census tract 5107 in the Olive-West MeadowlV entura area is an area of considerably
greater population and housing diversity than that which is found in most parts of Palo Alto. The
2000 census identified this tract as having the highest minority concentration of any non-split
City tract. More than half the housing units are in multiple-unit (3+) structures, and nearly two-
thirds are renter-occupied. Block Group 2 has a large proportion of modest rental housing, a
relatively high proportion of minority and ethnic groups, and 48.6% of the households are below
the CDBG income eligibility limits. The entire tract is above HUD's first quartile threshold of
27.4 percent for area benefit activities.
Community Participation
On October 18, 2010, the Palo Alto City Council adopted an amended Citizen Participation Plan
that utilizes the Human Relations Commission (HRC), rather than a separate Citizen Advisory
Committee, to promote and encourage citizen participation in the planning, implementation and
assessment of the CDBG program. The HRC is charged with making funding recommendations
to the City Council on the expenditure of City General Funds through the Human Service
Resource Allocation Process (HSRAP).
The HRC is uniquely positioned to understand and consider the needs of low and very low
income persons, members of minority groups, the elderly, persons. with disabilities, and residents
of neighborhoods where CDBG activities may be undertaken. The revisions to the Citizen
Participation Plan are expected to promote a more coordinated and effective response by the City
to the human service needs in the community.
A subcommittee of City staff and two members of the Human Relations Commission (HRC) met
during February and March, 2011 to review the applications and make recommendations to the
full Human Relations Commission. The subcommittee's recommendations were considered and
unanimously approved by the entire HRC at a Public Hearing on Wednesday, March 16,2011.
The City of Palo Alto provided the draft 2011112 Action Plan for public review from March 28
through April 29, 2011. Notice of the document's availability was advertised in the Palo Alto
Weekly on March 4,2011; published on the city's website, and copies made available atthe City
Hall Department of Planning and Community Environment and the City's Development Center
located at 285 Hamilton Ave.
10
The draft Action Plan is also open for pubic comment at two additional public hearings. The first
public hearing will be conducted on April 5, 2011, before the City's Finance Committee. The
second public hearing will be conducted on May 9, 2011, before the City Council. Public
comments received relative to the circulation of the draft Action Plan and public hearings will be
incorporated in Appendix F.
Allocation Priorities
Program Year 2011112 is the second year of the City's five year Consolidated Plan for the period
2010-2015. The table below sets forth the five year goals of that Plan and the one-year goals of
the FY 2011112 Action Plan.
Summary of Specific Housing/Community Development Objective
Performance 5 Year 2011/12
Goal # Specific Objectives Measure Goal Goal
Rental Housing Ob.iectives
IA,I Increase the Supply of Rental Housing Units 125 35
&IC.I
IA,2 Preserve Existing Affordable Rental Units 72 0
&IC.I Housing
IA,2 Conserve the Condition of Existing Rental Units 150 79
&IC.I Housing
Owner Honsing Objectives
lB.I Continue Below market Rate Program Units 34 10
IB.3 Rehabilitation Loans to LIM Income Units Emergency As
Owners Only Needed
IB.3 Minor Home Repairs and Accessibility Units 150 0
Upgrades
Public Service Ob.jectives
3A.I Assist Seniors in Long-Term Care Individuals 400 260
2A,1 - 5 Services to Prevent Homelessness Individuals 2,000 531
3A,1 Food and Meal Programs Individuals 2,000 400
Public Facilities Ob.iectives
3B.I & Promote Community-Based Services Facilities 2 0
3B.2 through Public Facilities
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Goal #1: Assist in the creation and preservation of affordable housingfor lower-income and
special needs households
Strategy #lA: Assist developers with the production of affordable rental housing
• Action 1A.l. Provide financial and technical assistance to developers producing
affordable rental housing. Priority -High
2011-2012 Action(s)
Eden Housing/Community Working Group
801-841 Alma Street
Palo Alto, CA 94301
Goal: Continue to provide financial assistance for the construction of 50 units of new
housing affordable to low-income families.
• Action lA.3. Address any barriers to affordable housing production through
implementation of associated Housing Element programs. Priority -Medium
2011-2012 Action(s)
The City is working towards completion of the Housing Element update in which barriers
to affordable housing production are receiving updated review.
Goal: The City anticipates the updated Housing Element will be approved at the local
level and sent to the State for review by September, 2011.
Strategy #lC: Assist lower-income seniors, larger families, the disabled, andfarmworkers in
securing safe and affordable housing
• Action 1C.l. Support the production and rehabilitation of affordable housing for seniors,
disabled individuals, large families, and farmworkers through applications for State and
federal funding, or with direct financial assistance. Priority -High
2011-2012 Action(s)
Alma Garden Apartments
2507 -2533 Alma St.
Palo Alto, CA 94303
Goal: 10 units rehabilitated
Sheridan Apartments
360 Sheridan Avenue
Palo Alto, CA 94306
Goal: 57 units rehabilitated
Ventura Apartments
290 -310 Ventura St.
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Palo Alto, CA 94306
Goal: 12 units rehabilitated
Goal #2: Sapport activities to end IlOmelessness
Strategy #2A: Provide housing and supportive services to homeless individuals and families and
households at risk of homelessness
• Action 2A.2. Support existing transitional housing and supportive housing facilities.
Priority -High
2011-2012 Action(s)
Palo Alto Housing Corp/Single Room Occupancy (SRO) Resident Counseling Program
725 Alma Street
Palo Alto, CA 94301
Goal: 131 persons
Support Network for Battered Women
1257 Tasman Dr., Suite C (office)
Sunnyvale, CA 94089
Goal: 35 persons counseled and assisted or temporarily housed
• Action 2A.3. Support programs that provide short-term emergency shelter for homeless
individuals and families, while still prioritizing Housing First approach to ending
homelessness. Priority -High
2011-2012 Action(s)
InnVision, the Way Home
Opportunity Center -Hotel de Zink (rotating church shelter program)
33 Encina Ave.
Palo Alto, CA 94301
Goal: 5,000 bed nights
• Action 2A.S. Support outreach programs that provide vital services to homeless
individuals, including health services, substance abuse services, referrals, and others.
Priority -High
2011-2012 Action(s)
InnVision, the Way Home
Opportunity Center
33 Encina Ave.
Palo Alto, CA 94301
Goal: 800 persons
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Peninsula HealthCare Connect -Health Services
33 Encina Ave.
Palo Alto, CA 94301
Momentum for Mental Health -Homeless Outreach Program
206 South California Ave.
Palo Alto, CA 94306
MayView Community Clinic -Health Care Services
270 Grant Ave.
Palo Alto, CA 94306
Goal #3: Support activities that provide basic services, eliminate blight, and/or strengthen
neighborhoods
Strategy #3A: Support local service organizations that provide essential services to the
community, particularly special needs populations
• Action 3A.1. Provide funding for social services organizations benefiting lower-income
households and special needs populations, including seniors, disabled, youth, homeless,
farmworkers, single-mothers, victims of domestic violence, and others. Priority -High
2011-2012 Action(s)
Support Network for Battered Women
1257 Tasman Dr., Suite C (office)
Sunnyvale, CA 94089
Shelters are located in confidential locations in Santa Clara County
Goal: 35 persons counseled and/or temporarily housed
Catholic Charities -Long-Term Care Ombudsman Program
2625 Zanker Rd., Suite 200
San Jose, Ca 95134-2107
Goal: 260 persons assisted
Strategy #3C: Mitigate lead-based paint hazards
• Action 3C.2. Inspect all properties being rehabilitated or acquired for affordable housing
for lead-based paint hazards. Priority -Medium
2011-2012 Action(s)
Alma Garden Apartments
2507 -2533 Alma St.
Palo Alto, CA 94303
14
Sheridan Apartments
360 Sheridan Avenue
Palo Alto, Ca 94306
Ventura Apartments
290 -310 Ventura St.
Palo Alto, Ca 94306
Goal: Inspect affected areas for lead based paint and perform abatement as
necessary.
Goal #4: Promote fair housing choice
Goal #4A: Conduct outreach to the community regardingfair housing, and address local
barriers to fair housing
• Action 4A.1. Contract with local service providers to conduct ongoing outreach and
education regarding fair housing for home-seekers, landlords, property managers, real
estate agents, and lenders. Priority -Medium
2011-2012 Action(s)
Project Sentinel
525 Middlefield Rd., Suite 200
Redwood City, CA 94063
Goal: 25 persons will be assisted
• Action 4A.2. Contract with local service providers to conduct fair housing testing in local
apartment complexes. Priority -Medium
2011-2012 Action(s)
Project Sentinel
525 Middlefield Rd., Suite 200
Redwood City, CA 94063
Goal: 4 apartment complexes will be tested for fair housing compliance
• Action 4A.S. Update the local Analysis of Impediments to Fair Housing Choice and
report on its implementation as necessary. Priority -High
2011-2012 Action(s)
Finalize the draft Analysis oflmpediments to Fair Housing Choice and submit to HUD
Goal: Submit to HUD by 12/31111
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Goal #5: Expand economic opportunities for low-income households
Strategy #5A: Support economic development activities that promote employment growth. and
help lower-income persons secure and maintain a job
• Action SA.I. Provide funding for organizations that support local employment
development and workforce training. Priority -High
2011112 Actions(s)
Downtown Streets Team/Manpower -Workforce Development Program
480 Lytton Ave. Suite 2A
Palo Alto, CA 94301
Goal: 24 persons will find employment
Goal # 6: Promote environmental sustain ability
Strategy #6A: Encourage the installation of energy-and water-efficiency measures in new and
existing homes
• Action 6A.2. Support collaborative efforts between local jurisdictions and subrecipients
to ensure all stakeholders achieve sustainable outcomes form project implementation.
Priority -High
2011-2012 Action(s)
Alma Garden Apartments
2507 -2533 Alma St.
Palo Alto, CA 94303
Sheridan Apartments
360 Sheridan Avenue
Palo Alto, Ca 94306
Ventura Apartments
290 -310 Ventura st.
Palo Alto, Ca 94306
Goal: All rehabilitation projects will provide energy and water efficiency as appropriate
to the project.
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2011/12 ACTIVITIES TO BE UNDERTAKEN
2011112 CDBG Budget
Sources of Funds
Entitlement Grant (Estimate) $731,500
Program Income 60,000
Reallocated Funds 102,804
Estimated Total Available $894,304
Uses of Fnnds
Agency/Program Proposed 2011112 CDBG Fnnding
Public Services
Palo Alto Housing Corporation/SRO Tenant Support 26,000
Inn Vision/Opportunity Center '50,000
Catholic Charities/Long-Term Care Ombudsman 5,000
YWCA/Support Network/Domestic Violence 10,000
Project Sentinel/Fair Housing 31,000
CapitallEconomic Development Activities
Community Working Group/Alma Gardens 302,788
Palo Alto Housing Corp.!Sheridan Apts, 59,167
Palo Alto Housing CorpN entura Apts, 129,602
Downtown Streets Team/Workforce Development 147,000
(See alternate activity below)
Planning and Administration
City of Palo Alto/Planning Dept 133,747
Total $894,304
All of the projects and activities to be undertaken with 2011112 CDBG funding address the
priority housing and community development needs identified in the Consolidated Plan, The
following list of proposed projects describes each project or activity, the 2011112 CDBG funds
allocated, the expected project beneficiaries and the HUD national objective and outcome
measure, HUD requires a performance measurement system to better capture data on a national
level for the activities that are undertaken with CDBG funds at the local leveL This system helps
quantify and measure program outcomes in order to determine how well programs and activities
are meeting established needs and objectives, The City is required to identify an objective and
outcome and performance measure for each proposed activity.
The City of Palo Alto's Consolidated Plan and Housing Element both emphasize the great need
for affordable housing for low and very low income households in Palo Alto, While all types of
housing are needed in the City, focus is on the creation and preservation of rental housing with an
emphasis on housing for very low and low income persons, families with children, persons at risk
of being homeless, persons who are homeless, and persons with special needs.
17
Public Service Activities
1. Palo Alto Housing Corporation
SRO Tenant Snpport Program, 725 Alma St. Palo Alto, CA 94301
Objective: Providing a suitable living environment
Ontcome: Accessibility for the purpose of creating a suitable living environment
Performance Measure: 131 persons will have improved accessibility to a suitable living
environment
Proposed Funding: $26,000
This activity provides counseling and support services for low income residents of single room
occupancy facilities in order to help them maintain housing stability. Activities may include
financial counseling, health maintenance, information and referral, problem solving, employment
assistance, crisis intervention, and case management.
2. InnVisiou, the Way Home
Opportunity Service Center, 33 Encina Way Palo Alto, CA 94301
Objective: Providing a suitable living environment
Outcome: Accessibility for the purpose of creating a suitable living environment
Performance Measure: 800 persons will have improved accessibility to a suitable living
environment
Proposed Funding: $50,000
The Opportunity Center provides basic necessities for persons who are homeless or at-risk of
becoming homeless. The facility has showers, laundry, clothes closet, snacks, case management,
shelter and housing referral services, computer access, health care, and access to a rotating church
shelter program for 15 persons each night.
3. Catholic Charities
Long-Term Care Ombudsman Program, 2625 Zanker Road, San Jose, CA 95134
Objective: Providing a suitable living environment
Outcome: Accessibility to supportive services
Performance Measure: 260 Palo Alto residents will have improved accessibility to supportive
services thereby providing a suitable living environment
Proposed Funding: $5,000
The Catholic Charities Ombudsman Program assists in problem resolutions and advocates for the
rights of residents of long term care facilities in Palo Alto. The majority of the clients assisted are
low-income, frail, elderly, and chronically ill. This program assists these vulnerable, dependent
and socially isolated residents receive the care and placement to which they are entitled.
4. YWCA/Snpport Network for Battered Women
Domestic Violence Program, 1257 Tasman Dr. Suite C, Sunnyvale, CA 94089
Objective: Providing a suitable living environment
Ontcome: Accessibility for the purpose of providing a suitable living environment
Performance Measnre: 35 unduplicated adults and children will be provided emergency safety
net support services and emergency shelter as needed.
Proposed Fnnding: $10,000
For individuals and families experiencing domestic violence, the YWCA/Support Network
program provides a bilingual domestic violence hotline, an emergency shelter, crisis counseling,
legal assistance, court accompaniment, individual and group therapy, support groups, children's
therapy groups, preventative education, safety planning and community referrals.
18
5. Project Sentinel
Fair Honsing Services, 525 Middlefield Road, Redwood City, CA 94063
Objective: Provide decent affordable housing
Outcome: Accessibility for the purpose of providing decent affordable hosing
Performance Measure: 25 persons will have improved accessibility to decent affordable
housing
Proposed Funding: $31,000
California and federal fair housing laws assure specific protected classes the right to be treated in
terms of their individual merits and qualifications in seeking housing. Unfortunately, some
people are not aware of the law or their rights. Project Sentinel will provide community
education and outreach regarding fair housing law and practices, investigation, counseling and
legal referral for victims of housing discrimination; and analyses for City staff and officials
regarding fair housing practices.
Housing Activities
6. Community Working Group
Alma Gardens Apartments, 2507 -2533 Alma S1. Palo Alto, CA 94303
Objective: Provide decent housing
Outcome: Affordability
Performance Measure: 10 units will have a new roof and improved energy efficiency and
safety features.
Proposed Funding: $302,788
Alma Garden Apartments is a 10-unit apartment complex located at 2507-2533 Alma Street in
Palo Alto that houses low-income individuals and families. The complex includes eight studio
apartments and two one-bedroom units, currently housing 14 persons. Community Working
Group acquired Alma Garden in 2006 with a CDBG loan from the City of Palo. The complex
was built in 1953 and is in need of rehabilitation to improve the longevity, livability, and
sustainability of the units. The rehabilitation work includes the replacement of the roof on all
three buildings, seismic upgrades (steel reinforcement) to the two-story building, replacement of
the stairs and railing on the two-story building, replacement of all windows with low-E, double
pane glass, external painting, and repairs to the driveway and walkways. The repairs will address
overdue maintenance issues, energy efficiency, and earthquake safety. The outcome ofthe
project will provide low-income individuals with decent affordable housing.
7. Palo Alto Housing Corporation
Sheridan Apartments, 360 Sheridan Avenue, Palo Alto, Ca 94306
Objective: Provide decent housing
Outcome: Sustainability
Performance Measure: Sustainability in the common area of a 57 unit senior housing complex
Proposed Funding: $59,167
The Palo Alto Housing Corporations, subsidiary, Sheridan Apartments Affordable Housing LP
owns the Sheridan Apartments, a 57 unit HUD subsidized Section 8 housing community. The 57
one-bedroom apartments are home to over 90 extremely low and very low-incol!le seniors and
persons with disabilities. The rehabilitation work is in the common area and includes a furnace
19
replacement with an Energy Star air conditioning unit and the replacement of the current single
pane aluminum frame windows with dual pane windows. The improvements will allow for a
more comfortable, inviting community room where residents can socialize with their neighbors
and friends. Savings from the energy efficient improvements will help keep the costs down and
the apartments affordable.
8. Palo Alto Housing Corporation
Ventura Apartments, 290 -310 Ventura, Palo Alto, Ca 94306
Objective: Provide decent housing
Outcome: Sustainability
Performance Measure: 12 Units will have energy efficient windows and a rehabilitated
drainage system.
Proposed Funding: $129,602
The Ventura Apartments consist of 12 apartments, and is home to 33 lower income adults and
children. There are two buildings on the property, each with one three-bedroom and five two-
bedroom units. The apartments were built in 1957 and have suffered from considerable settling
over time. Water accumulation in the crawl space creates moisture and coldness in the units.
Damp floors and walls in the winter require heating at higher temperatures. Additionally the 71
old single pane windows throughout the property are not efficient at keeping out cold, heat or the
noise from traffic and neighboring properties. This project will replace all of the existing
windows with double-pane Low-E glass, and provide for a new drainage system to address the
settling and dampness problems.
Economic Development Activities
9. Downtown Streets TeamIManpower
Workforce Development Program, 480 Lytton Avenue Suite 2A, Palo Alto, CA 94301
Objective: Expanded Economic Opportunities
Outcome: Availability
Performance Measure: 24 persons will be assisted in job creation and retention
Proposed Funding: $147,000
This is a pilot program and is a collaborative effort between the local Downtown Streets Team
and Manpower Employment Agency. The Workforce Development Program will provide a
transition from unemployment and homelessness to regular employment and housing through
case management,job training, mentoring and housing and transportation assistance. Downtown
Streets Team will screen and ready applicants while Manpower will use their community
connections to provide training and job opportunities.
Planning and Administration
10. City of Palo Alto
Planning and Administration, 250 Hamilton Avenue Palo Alto, Ca 94301
Objective: Provide decent affordable housing and benefit low income residents
Outcome: General Program Administration
Performance Measure: Not Applicable
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Proposed Funding: $133,747
The City of Palo Alto provides administration of the overall management, coordination and
evaluation of the CDBG program, and the project delivery cost associated with bringing capital
projects to completion.
Alternative Activity
City staff and HUD are currently working on some eligibility issues relating to the economic
development activity proposed above by the Downtown Streets Team. If the project is not able to
move forward because it is deemed to be an ineligible activity, the funding of$147,000 will be
allocated to the following project:
11. Palo Alto Housing Corporation
California park Apartments, 2301 Park Blvd. Palo Alto, Ca 94306
Objective: Provide decent housing
Outcome: Sustainability
Performance Measure: 45 units will be more energy efficient
The California Park Apartments consists of 45 one, two and three bedroom flats and town houses
for households with extremely low, very low and low incomes. This project proposes to replace
198 single pane windows in the 45 unit complex with new double-pane Low-E glass. The
property is home to approximately 140 adults, children and seniors. The installation of double-
pane windows will result in a reduction in energy costs to residents and will provide a barrier to
help filter out noise from traffic, CalTrain, neighboring apartments, and delivery trucks.
Services and Resources Targeted to Homeless and
Special Needs Populations
Destination: Home
As a one-stop homelessness prevention center, the goal of Destination: Home is to provide one-
stop multiservice centers for homelessness-prevention services that connect people in need with
appropriate services and directly link services in an expedited manner, to permanent supportive
housing for homeless men, women and families in Santa Clara County. The Georgia Travis
Center and the Boccardo Reception Center in San Jose are presently operating this program in
conjunction with other programs. Additionally the program provides for a medical respite center
that allows homeless patients that have been hospitalized and discharged a clean, safe place to
recuperate and provides linkages to other services, including permanent housing, while the
individual is in the medical respite center. This program is being operated as a 15-bed facility in
San Jose. Destination: Home partners with Stanford Medical Center locally for the medical
respite component.
Clara Mateo Alliance Shelter
The Clara Mateo Alliance (CMA) Shelter, which has been operating on the grounds of the
Veterans Administration facility in Menlo Park, has announced that they will be closing their
doors April 30, 2011. CMA, operated by InnVision, the Way Home, has provided 70 shelter beds
21
and transitional housing units, as well as suppOltive services and meals, to homeless individuals
and families with children since 1999. Although InnVision has made efforts to house as many of
the current residents as possible in other locations, the closure will have a significant impact on
the local resources available to the homeless population. The number of homeless individuals
and families can be expected to increase while the services available will decrease. The City will
work with InnVision on a closure plan that assists as many clients as possible.
The following services, for persons in the Palo Alto community who are very low-income,
homeless, or at-risk of becoming homeless, are provided with supplemental funding from the City
of Palo Alto either with CDBG or HSRAP funding in addition to other public and private
funding. The goal of all the services listed is to prevent homelessness, help move people out of
homelessness and to reduce the number of persons below the poverty line.
Downtown Streets Team: Identifies motivated homeless individuals and provides them with jobs
cleaning and beautifying the downtown area in exchange for housing and food vouchers. The
program includes counseling, coaching and training to help program participants build self-
esteem, confidence and connections in the community.
Downtown Streets Team/Manpower -Workforce Development Program A new economic
development pilot program to help motivated graduates ofthe Downtown Streets Team programs
move on to stable employment. The program will include mentoring, counseling, job readiness,
job training, and assistance.
Inn VisionlOpportuni1y Center -the Opportunity Center facility in Palo Alto provides a clean,
safe environment and resources for very-low income or homeless persons including bagged
groceries, hot meals, a rotating church shelter program, information and referral, shower and
laundry facilities, case-management, and money management (payee) programs, clothing and
health services. A daily hot meal is provided at a different location each day and bagged
groceries are distributed daily at the Downtown Food Closet. The Hotel de Zink rotating church
shelter program is housed at a different location each month.
Communi1y Technology Alliance: Provides shelter hotline and voicemail services for homeless
individuals and families. The voicemail service helps case-managed clients attain individual
goals such as securing health care, housing or employment. A countywide housing information
and referral website and tracking system is maintained to assist service providers and those
seeking shelter.
MayView Communi1y Clinic: Basic primary health care services and health education and
referral services for uninsured low-income and homeless individuals from the Palo Alto area.
Peninsula HealthCare Connection: Provider of health care services at the Opportunity Center of
Palo Alto. Project Downtown Connect provides Section 8 vouchers to eligible homeless
individuals and families.
22
Momentum for Mental Health: Mental health outreach program that provides emergency on-call
services to assist local mentally ill homeless persons. The agency provides services to City
departments, libraries, community centers and local homeless service providers.
Palo Alto Housing Corporation -SRO Tenant Counseling: Provides counseling and case-
management services for the low-income residents and prospective residents of single room
occupancy hotels in Palo Alto. Many SRO residents have a history of homelessness and special
needs. The program plays a vital role in helping residents maintain their stability and housing.
In order to address the special needs of persons who are not homeless but require suppOltive
services, the City funds the following programs:
Avenidas: Agency is the main provider of senior services in the Mid-Peninsula area.
Catholic Charities: The long-term care ombudsman program provides complaint investigation
and advocacy services for the frail elderly or persons with disabilities in long term care facilities
in Palo Alto.
Abilities United: This organization provides services and activities for adults and children with
mental and physical disabilities.
SALA: Senior Adults Legal Assistance. Agency provides affordable legal assistance to elders.
La Comida de California: Daily meal program for the elderly
Activities to Affirmatively Further Fair Housing
The City of Palo Alto is committed to fair housing practices and places a priority on promoting
and ensuring an atmosphere of non-discrimination in housing choice. The City is currently
reviewing and updating its Analysis of Impediments to Fair Housing Choice. The County of
Santa Clara commissioned a countywide analysis which will serve as a base for the updated
report. In 201 1112 the City of Palo Alto will provide $31,000 in CDBG funds to Project Sentinel
for the provision of fair housing complaint investigations, public education and information and
referral services.
Palo Alto plans to undertake the following actions to foster and maintain affordable housing and
to address housing discrimination during the 2011112 fiscal year:
• Provide tenantllandlord counseling and mediation services for Palo Alto residents
through the Palo Alto Mediation Program (Project Sentinel).
• Support the Human Relations Commission in their documentation and investigation of
hate crimes, and in their support of diversity, disability and affordable housing issues.
• Continue to monitor the provision of fair housing services to ensure that adequate
services are being provided, and are cost effective.
23
• Continue to participate in the Santa Clara County Fair Housing Task Force
• Provide funding to Project Sentinel to reduce discrimination in housing by:
1. Investigating cases of housing discrimination in Palo Alto
2. Conducting consultations with persons who believe they have been discriminated
against
3. Maintaining a pool of trained testers for investigations and conducting trainings
4. Maintaining a panel of participating attorneys for referral
5. Running fair housing ads in the Palo Alto Weekly, San Jose Mercury News and other
media outlets
6. Distributing fair housing brochures
7. Running public service announcements for local radio/TV broadcasters
8. Making educational presentations to the community
9. Monitoring and testing rental housing sites for fair housing compliance
10. Organizing an event for National Fair Housing Month
Evaluation of Past Performance
The City has historically allocated CDBG funds to activities that benefit low and moderate
income persons, with the top priority being increasing affordable housing opportunities within the
City. The City has one of the most expensive housing markets in the country due in part to the
lack of available land. Not withstanding, 154 new affordable rental housing units were created
during the five-year period ending in 2010. It is anticipated that the City will also be able to
reach its goal of 125 new units during the next five year period from 2010-2015. Bridge Housing
Corporation's Alta Torre development at 3895 Fabian Way in Palo Alto opened in 2010 with 56
new units of affordable housing for seniors, and Palo Alto Housing Corporation's 35 unit Tree
House project at 488 W. Charleston Avenue in Palo Alto is expected to open within the next year.
Eden Housing's proposed project at 801-841 Alma Street is expected to create 50 additional new
rental units within the next few years.
Actions to Remove Barriers to Affordable Housing
The high cost of housing and the lack of available land to build on are the main barriers to
affordable housing in Palo Alto. The City adopted a Below Market Rate (BMR) Housing
Program in 1974 to address the affordability gap. The Housing Element Update will also address
new programs to strengthen the BMR program and improve its effectiveness.
A recent update to the zoning ordinance has also provided incentives to facilitate more mixed use
housing projects in areas adjacent to commercial/multi-family residential areas. The adoption of
a Pedestrian Transit Oriented District (PTOD) also allows development of housing in commercial
zones where it had not previously been allowed.
The City has identified affordable housing as the primary objective for the expenditure of CDBG
funds in the Consolidated Plan. It will continue to allocate the maximum funding available to
24
activities and projects that meet this objective.
Amendments to Plan
Prior to the submission of any substantial change in the proposed use of funds, citizens will be
provided reasonable notice of, and the opportunity to comment on, any proposed Action Plan
amendment(s).
Urgent Need Activities
In the event of a local, state or federal disaster declaration for areas within the boundaries of the
City of Palo Alto, the City reserves the right to use CDBG or other available federal funds to
abate immediate and necessary hazards. Such funds may be used for staff efforts, loans, or
outright grants to affected parties, as approved by City Council and allowable under the pertinent
Federal Guidelines.
Monitoring of Activities
The City of Palo Alto follows the monitoring requirements for the use of Federal funds as
directed by HUD. The City's Department of Planning and Community Environment monitors its
housing production goals and all the activities carried out to further the goals of the Consolidated
Plan. For activities funded by CDBG and HOME programs, an annual performance report is
completed based on HUD regulations and in accordance with HUD standards. The Consolidated
Annual Performance and Evaluation Report (CAPER) is available to the general public for
comments during a 15-day review period. This report identifies the actual dollars expended, the
beneficiaries served, and the program goals achieved.
The City requires subrecipients of CDBG funds to submit semi-annual and annual performance
reports outlining the extent to which program goals have been achieved, and the number of
beneficiaries who have been served. Program performance is measured against the specific
program objectives outlined in the contract scope of services. Additionally, City staff will
monitor subrecipients, as necessary, to insure compliance with all regulations governing their
administrative, financial, and programmatic operations, and to make sure the identified
performance objectives have been achieved.
Coordination
The CDBG entitlement cities (Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino,
Gilroy, Milpitas, San Jose), and the Urban County of Santa Clara continue to meet on a regular
schedule to discuss issues of mutual concern and to share information and strategies for
addressing affordable housing, homelessness, fair housing, and other issues of common concern.
The meetings have helped the participants better understand the County and nonprofit social
service structure within the County, and provide input to the Santa Clara County Office of
Affordable Housing. The meetings also provide a forum for HUD representatives to share
information and answer questions from entitlement jurisdictions regarding issues of mutual
importance.
25
The City of Palo Alto continues to collaborate with neighboring jurisdictions in both Santa Clara
and San Mateo County on issues relating to homelessness in northern Santa Clara County and
southern San Mateo County. The City actively participates in the Santa Clara County
Collaborative on Affordable Housing and Homeless Issues.
A Countywide Fair Housing Task Force has been meeting quarterly to address fair housing
issues. The task force members include representatives from entitlement jurisdictions, fair
housing agencies, and other non-profit organizations.
The Quality Housing and Work Responsibility Act of 1998 requires that public housing
authorities (PHA's) develop and implement five-year strategic plans. These plans must describe
their long-range goals and provide a strategy for achieving the identified goals. The plans
provide details about the PHA's operations, program participants, programs and services. The
PHA is required to ensure that their plan is consistent with any applicable Consolidated Plans for
jurisdictions in which the PHA is located. This new requirement allows for some collaborative
discussions on the role of the Santa Clara County Housing Authority in meeting the housing
needs of low-income persons in Palo Alto.
To ensure a coordinated approach to the City's human service funding efforts, COBG and Human
Services staff and two members of the City's Human Relations Commission met to review and
discuss applications received through both the COBG and Human Service Resource Allocation
Process (HSRAP) processes. This was a new allocation process based on the revised Citizen
Participation Plan adopted by the City Council on October 18,2010. The change allowed for
internal administrative efficiencies, created a more visible public forum for the COBG program,
and provided a more coordinated and effective approach to addressing the City's human service
needs.
26
Appendix A
Application for Federal Assistance
Form SF-424
OMS Number: 4040-0004
Expiration Date: 04131/2012
~pplication for Federal Assistance SF-424 Version 02
*1. Type of Submission *2. Type of Application *IfRevision, select appropriate letter(s):
0 Preapplication D New
IZJ Application o Continuation * Other (SpecilY)
0 Changed/Corrected Application D Revision
*3. Date Received: 4. Application Identifier:
B11MC060020
Sa. Federal Entity Identifier: *Sb. Federal Award Identifier:
State Use Only:
6. Date Received by State: 7. State Application Identifier:
8. APPLICANT INFORMATION:
, a. Legal Name: City of Palo Alto
, b. EmployerlTaxpayer Identification Number (EINITIN): *c. Organizational DUNS:
94-6000389 959938929
d. Address:
'Streetl: PO Box 10250
Street 2:
'City: Palo Alto
County:
'State: CA
Province:
Country: 'Zip/ Postal Code: 94303
e. Orl!:anizational Unit:
Department Name: Division Name:
Planning and Community Environment Planning
f. Name and contact information of person to be contacted on matters involving this application:
Prefix: Mr. First Name: Steven
lIi1Id Ie N a 00:
'Last Name: Turner
Suffix:
Ttl . 1 e. Advance Planning Manager
Organizational Affiliation:
'Telephone Number: 650-329-2155 Fax Number: 650-329-2154
'Email: steven. turner(Q)citvofoaloa Ito .oro II
OMB Number: 4040-0004
Expiration Dale: 04/31/2012
Application for Federal Assistance SF-424 Version 02
9. Type of Applicant 1: Select Applicant Type: C. City or Township Government
Type of Applicant 2: Select Applicant Type:
-Select One -
Type of Applicant 3: Select Applicant Type:
-Select One -
*Other (specifY):
*10. Name of Federal Agency:
U.S. Department of Housing and Urban Development
11. Catalog of Federal Domestic Assistance Number:
14-218
CFDA Title:
Community Development Block Grant (CDBG)
* 12. Funding Opportunity Number:
*Title:
13. Competition Identification Number:
Title:
14. Areas Affected by Project (Cities, Counties, States, etc.):
City of Palo Alto, County of Santa Clara, State of California
*15. Descriptive Title of Applicant's Project:
The City of Palo Alto's Community Development Block Grant (CDBG) Program for fiscal year 2011/2012
Attach supportinj! documents as specified iu aj!ency iustructions.
OMB Number: 4040-0004 E . XDlration Date: 04/31/2012
Application for Federal Assistance SF-424 Version 02
16. Congressional Districts Of:
*a. Applicant 14th Congressional District *b. Program/Project: 14th Congressional District
Attach an additional list of Program/Project Congressional Districts if needed.
17. Proposed Project:
*a. Start Date: 07/01/2011 *b. End Date: 06/30/2012
18. Estimated Fundinl! ($):
*a. Federal $731,500.00
*b. Applicant
*c. State
*d. Local $102,804.00 *e. Other
Of. Program Income $60,000.00
*g. TOTAL $894304.00
*19. Is Application Subject to Review By State Under Executive Order 12372 Process?
D a. This application was made available to the State under the Executive Order 12372 Process for review on
Db. Program is subject to E.O. 12372 but has not been selected by the State for review.
[2] c. Program is not covered by B.O. 12372
*20. Is the Applicant Delinquent On Any Federal Debt? (If "Yes", provide explanation.)
DYes [2] No
~ 1. *By signing this application, I certify (1) to the statements contained in the list of certifications* * and (2) that the statements
herein are true, complete and accurate to the best of my knowledge. I also provide the required assurances** and agree to comply
with any resulting terms if! accept an award. I am aware that any false, fictitious, or fraudulent statements or claims may subject
me to criminal, civil, or administrative penalties. (U.S. Code, Title 218, Section 1001)
[2] **1 AGREE
•• The list of certifications and assurances, or an internet site where you may obtain this list, is contained in the announcement 01'
agency specific instructions.
Authorized Representative:
Prefix: Mr 'First Name: James
Midd Ie N ane:
*Last Name: Keene
Suffix:
*Title: City Manager
*Telephone Number: 650-329-2563 Fax Number: 650-325-5025
*Email: iames.keene(!i1cityofpaloalto.orQ
*Signature of Authorized Representative: Date Signed:
Application for Federal Assistance SF-424
• Applicant Federal Debt Delinquency Explanation
OMS Number: 4040-0004
EXPiration Date: 04/31/2012
Version 02
The following field should contain an explanation if the Applicant organization is delinquent on any Federal Debt. Maximum
number of characters that can be entered is 4,000. Try and avoid extra spaces and carriage returns to maximize the availability of
space.
Appendix B
Certifications
\,,\\-\I'.JIIT 0.<-
</'r "I> ;* *\ CPMP Non-State Grantee
." ,.. ~ l c, R'~ Certifications i5>S4' ~\,o
N DIN· Many elements of this document may be completed
electronically, however a signature must be manually applied and the
document must be submitted in paper form to the Field Office.
'[jJ;rm~:~~ftifie~J,pl1:t!Q~~;ljo~;'~pply>i ., ••. , .• " ....•..
··.!2illJjiji$'·cer,tificatlor.i.s'appjicabie;.· ··:,····,··\···.·····; •• ;i •• '····
!"::;' ;:C-,":':,:_,;,>
" ",'j'-
NON-STATE GOVERNMENT CERTIFICATIONS
In accordance with the applicable statutes and the regulations governing the
consolidated plan regulations, the jurisdiction certifies that:
Affirmatively Further Fair Housing --The jurisdiction will affirmatively further fair housing, which
means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take
appropriate actions to overcome the effects of any impediments identified through that analysis, and
maintain records reflecting that analysis and actions in this regard.
Anti-displacement and Relocation Plan --It will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended, and Implementing regulations at 49 CFR 24; and it has in effect and is following a residential
antidisplacement and relocation assistance plan required under section 104(d) of the Housing and
Community Development Act of 1974, as amended, in connection with any activity assisted with funding
under the CDBG or HOME programs.
Drug Free Workplace --It will or will continue to provide a drug-free workplace by:
1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited in the grantee's workplace and specIfying
the actions that will be taken against employees for violation of such prohibition;
2. Establishing an ongoing drug-free awareness program to inform employees about -
a. The dangers of drug abuse in the workplace;
b. The grantee's policy of maintaining a drug-free workplace;
c. Any available drug counseling, rehabilitation, and employee assistance programs; and
d. The penalties that may be imposed upon employees for drug abuse violations occurring in the
workplace;
3. Making it a requirement that each employee to be engaged in the performance of the grant be given
a copy of the statement required by paragraph 1;
4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment
under the grant, the employee will -
a. Abide by the terms of the statement; and
b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute
occurring in the workplace no later than five calendar days after such conviction;
5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph
4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of
convicted employees must provide notice, including position title, to every grant officer or other
designee on whose grant activity the convicted employee was working, unless the Federal agency has
designated a central point for the receipt of such notices. Notice shall include the identification
number(s) of each affected grant;
6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph
4(b), with respect to any employee who is so convicted -
a. Taking appropriate personnel action against such an employee, up to and including termination,
consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
b. Requiring such employee to partiCipate satisfactorily in a drug abuse assistance or rehabilitation
program approved for such purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency;
7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of
paragraphs 1, 2, 3, 4, 5 and 6.
CPMP Non-State Grantee Certifications 1 Version 1.3
Jurisdiction
Anti-Lobbying --To the best of the jurisdiction's knowledge and belief:
8. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any
person for influencing or attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress
in connection with the awarding of any Federal contract, the making of any Federal grant, the making
of any Federal loan, the entering into of any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement;
9. If any funds other than Federal appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a Member of
Congressl an officer or employee of Congress, or an employee of a Member of Congress in connection
with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with
its instructions; and
10. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be
included In the award documents for all subawards at all tiers (including subcontracts, subgrants,
and contracts under grants, loans, and cooperative agreements) and that all
subrecipients shall certify and disclose accordingly.
Authority of Jurisdiction --The consolidated plan Is authorized under State and local law (as applicable)
and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding,
in accordance with applicable HUD regulations.
Consistency with plan --The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA
funds are consistent with the strategic plan.
Section 3 --It will comply with section 3 of the Housing and Urban Development Act of 1968, and
implementing regulations at 24 CFR Part 135.
Signature/Authorized Official Date
I James Keene
Name
City Manager
Title
I 250 Hamilton Avenue
Address
Palo Alto, CA 94301
City/State/Zip
650-329-2563
Telephone Number
CPMP Non-State Grantee Certifications 2 Version 1.3
Jurisdiction
Specific COBG Certifications
The Entitlement Community certifies that:
Citizen Participation --It is in full compliance and following a detailed citizen participation plan that
satisfies the requirements of 24 CFR 91.105.
Community Development Plan ~-Its consolidated housing and community development plan identifies
community development and housing needs and specifies both short-term and long-term community
development objectives that provide decent housing, expand economic opportunities primarily for persons
of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570)
Following a Plan --It is following a current consolidated plan (or Comprehensive Housing Affordability
Strategy) that has been approved by HUO.
Use of Funds --It has complied with the following criteria:
11. Maximum Feasible Priority -With respect to activities expected to be assisted with CDBG funds, it
certifies that it has developed its Action Plan so as to give maximum feasible priority to activities
which benefit low and moderate income families or aid in the prevention or elimination of slums or
blight. The Action Plan may also include activities which the grantee certifies are designed to meet
other community development needs having a particular urgency because existing conditions pose a
serious and immediate threat to the health or welfare of the community, and other financial reSOurces
are not available);
12. Overall Benefit -The aggregate use of COBG funds including section 108 guaranteed loans during
program year(s) 2011, 2_, 2_, (a period specified by the grantee consisting of one, two, or three
specific consecutive program years), shal1 principal1y benefit persons of low and moderate income in a
manner that ensures that at least 70 percent of the amount is expended for activities that benefit
such persons during the deSignated period;
13. Special Assessments -It wil1 not attempt to recover any capital costs of public improvements assisted
with C08G funds including Section 108 loan guaranteed funds by assessing any amount against
properties owned and occupied by persons of low and moderate income, including any fee charged or
assessment made as a condition of obtaining access to such public improvements.
However, if CDBG funds are used to pay the proportion of a fee or assessment that relC!tes to the
capital costs of public improvements (assisted in part with COBG funds) financed from other revenue
sources, an assessment or charge may be made against the property with respect to the public
improvements financed by a source other than COBG funds.
The jurisdiction will not attempt to recover any capital costs of public improvements assisted with
COBG funds, including Section 108, unless COBG funds are used to pay the proportion of fee or
assessment attributable to the capital costs of public improvements financed from other revenue
sources. In this case, an assessment or charge may be made against the property with respect to the
public improvements financed by a source other than COBG funds. Also, in the case of properties
owned and occupied by moderate-income (not low-income) families, an assessment or charge may be
made against the property for public improvements financed by a source other than COBG funds if the
jurisdiction certifies that it lacks COBG funds to cover the assessment.
Excessive Force --It has adopted and is enforcing:
14. A polley prohibiting the use of excessive force by law enforcement agencies within its jurisdiction
against any individuals engaged in non-violent civil rights demonstrations; and
15. A policy of enforcing applicable State and local laws against physical1y barring entrance to or exit from
a facility or location which is the subject of such non-violent civil rights demonstrations within its
jurisdiction;
CPMP Non-State Grantee Certifications 3 Version 1.3
Jurisdiction
Compliance With Anti-discrimination laws --The grant will be conducted and administered in
conformity with title VI ofthe Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC
3601-3619), and implementing regulations.
Lead-Based Paint --Its activities concerning lead-based paint will comply with the requirements of
part 35, subparts A, B, J, K and R, of title 24i
Compliance with Laws --It will comply with applicable laws.
Signature/Authorized Official Date
I James Keene
Name
I City Manager
Title
I 250 Hamilton Avenue
Address
I Palo Alto, CA 94301
City/State/Zip
I 650-329-2563
Telephone Number
CPMP Non-State Grantee Certifications 4 Version 1.3
Jurisdiction
APPENDIX TO CERTIFICATIONS
Instructions Concerning Lobbying and Drug-Free Workplace Requirements
Lobbying Certification
This certification Is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering into
this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for
each such failure.
Drug-Free Workplace Certification
1. By signing and/or submitting this application or grant agreement, the grantee is providing the
certification. .
2. The certification is a material representation of fact upon which reliance Is placed when the agency
awards the grant. If it is later determined that the grantee knowingly rendered a false certification,
or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other
remedies available to the Federal Government, may take action authorized under the Drug-Free
Workplace Act.
3. Workplaces under grants, for grantees other than individuals, need not be identified on the
certification. If known, they may be identified in the grant application. If the grantee does not identify
the workplaces at the time of application, or upon award, if there is no application, the grantee must
keep the Identity of the workplace(s) on file in Its office and make the information available for
Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's
drug-free workplace requirements.
4. Workplace Identifications must include the actual address of buildings (or parts of buildings) or other
sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles
of a mass transit authority or State highway department while In operation, State employees in each
local unemployment office, performers in concert halls or radio stations).
5. If the workplace identified to the agency changes during the performance of the grant, the grantee
shall inform the agency of the change(s), if it previously identified the workplaces in question (see
paragraph three).
6. The grantee may Insert in the space provided below the site(s) for the performance of work done in
connection with the specific grant: Place of Performance (Street address, city, county, state, zip code)
Check if there are workplaces on file that are not identified here. The certification with regard to the
drug-free workplace is required by 24 CFR part 21.
Place Name Street City County State
Palo Alto City Hall 250 Hamilton Ave. Palo Alto Santa Clara CA
7. Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free
Workplace common rule apply to this certification. Grantees' attention is called, in particular, to the
following definitions from these rules: "Controlled substance" means a controlled substance in
Schedules I through V of the Controlied
Substances Act (21 U.S.C. B12) and as further defined by regulation (21 CFR 130B.11 through
130B.15); "Conviction" means a finding of guilt (Including a plea of nolo contendere) or imposition of
sentence, or both, by any judicial body charged with the responsibility to determine violations of the
Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal
criminal statute involving the manufacture, distribution, dispensing, use, or possession of any
CPMP Non-State Grantee Certifications 10 Version 1.3
Zip
94301
Jurisdiction
controlled substance; UEmployee1t means the employee of a grantee directly engaged in the
performance of work under a grant, including:
a. All "direct charge" employees;
b. all "Indirect charge" employees unless their impact or involvement is insignificant to the
performance of the grant; and
c. temporary personnel and consultants who are directly engaged in the performance of work under
the grant and who are on the grantee's payroll. This definition does not include workers not on
the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement;
consultants Or independent contractors not on the grantee's payroll; or employees of
subreclpients or subcontractors in covered workplaces).
Note that by signing these certifications, certain documents must completed, In use, and on file for
verification. These documents include:
1. Analysis of Impediments to Fair Housing
2. Citizen Participation Plan
3. Anti-displacement and Relocation Plan
Signature/Authorized Official Date
I James Keene
Name
I City Manager
Title
I 250 Hamilton Avenue
Address
I Palo Alto, CA 94301
City/State/Zip
I 650-329-2563
Telephone Number
CPMP Non-State Grantee Certifications 11 Version 1.3
Appendix C
Proposed Proj ects
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDBG CONSOLIDATED PLAN
LISTING OF PROPOSED PROJECTS
FY2011/12
The following is a summary of the fiscal year 201112012 proposed CDBG projects.
PUBLIC SERVICES PROJECTS
Pro.iect ID SR-OI025-999
Pro.iect Title Catholic Charities -Long Term Care Ombudsman Program
Priority Public Services
Description Assist in problem resolution and advocates for the rights of
residents of long term care facilities in Palo Alto. The
majority of the clients assisted are low-income, frail, elderly,
and chronically ill. This program assists these vulnerable,
dependent and socially isolated residents receive the care and
placement to which they are entitled.
HUDMatrix 05 Public Services (General)
Code/Title
Citation 570.201 (e)
Accomplishments 260 People (General)
Fundin2 Sources CDBG: $5,000
Eligibility 570.208(a)(2) -Low/Mod Limited Clientele
Agency Address 2625 Zanker Road, Ste. 200
San Jose, CA 95134
Location CommunitYcwide
Project ID SR-Oll05
Project Title YWCA/Support Network for Battered Women
Priority Public Services
Description For individuals and families experiencing domestic violence,
the program provides a bilingual domestic violence hotline, an
emergency shelter, crisis counseling, legal assistance, court
accompaniment, individual and group therapy, support
groups, children's therapy groups, preventative education,
safety planning and community referrals.
HUDMatrix 05G Battered and Abused Spouses
Code/Title
Citation 570.201 (e)
Accomplishments 35 People (General)
Funding Sources CDBG: $10,000
Eligibility 570.208(a)(2) -Low/Mod Limited Clientele
Agency Address 1257 Tasman Dr., Suite C
Sunnyvale, CA 94089
Location Community-wide
Pro.iect ID SR -01 OS2-999
Pro.i ect Title Inn Vision -Opportunity Center
Priority Public Services
Description Provide basic necessities for persons who are homeless or at-
risk of becoming homeless. The facility has showers, laundry,
clothes closet, snacks, case management, shelter and housing
referral services, computer access, health care, and access to a
rotating church shelter program for 15 persons each night.
HUDMatrix 05 Public Services (General)
CodelTitle
Citation 570.201 (e)
Accomplishments SOO People (General)
Funding Sources CDBG: $50,000
Eligibility 570.20S(a)(2) -Low/Mod Limited Clientele
Location 33 Encina Way
Palo Alto, CA 94301
Project ID SR -01 04S-999
Project Title Palo Alto Housing Corp. -SRO Resident Support Services
Priority Public Services
Description This program provides counseling and supportive case
management services for low-income residents of single room
occupancy facilities in order to help them maintain housing
stability. Activities may include financial counseling, health
maintenance, information and referral, problem solving,
employment assistance, crisis intervention and case
management.
HUDMatrix 05 Public Services (General)
CodelTitle
Citation 570.201 (e)
Accomplishments 131 People (General)
Fundin2 Sources CDBG: $26,000
Eli2ibility 570.20S(a)(2) -LowlMod Limited Clientele
Location 439 Emerson Street and 753 Alma Street
Palo Alto, CA 94301
Project ID SR-01087-999
Project Title Project Sentinel -Fair Housing Services
Priority Planning and Administration
Description California and federal fair housing laws assure specific
protected classes the right to be treated in terms of their
individual merits and qualifications in seeking housing.
Unfortunately, some people are not aware of the law or their
rights. Project Sentinel will provide community education
and outreach regarding fair housing law and practices,
investigation, counseling and legal referral for victims of
housing discrimination; and analyses for City staff and
officials regarding fair housing practices.
HUDMatrix 05J Fair Housing Activities -Subject to Public Service Cap
CodelTitie
Citation 570.206
Accomplishments 25 Households (General)
Funding Sources CDBG: $31,000
Eligibility 570.208(a)(2) -Low/Mod Limited Clientele
Agency Address 525 Middlefield Road
Redwood City, CA 94063
Location Community-wide
PLANNING AND ADMINISTRATION
Project ID SR-01003-999
Project Title City of Palo Alto -Planning and Administration
Priority Planning and Administration
Description Administrative costs for the overall management,
coordination and evaluation of the CDBG program, and the
project delivery costs associated with bringing projects to
completion.
HUDMatrix 21 General Program Administration
CodelTitle
Citation 570.206 .
Accomplishments N/A
Funding Sources CDBG: $133,747
Eligibility N/A
Location 250 Hamilton Avenue
Palo Alto, CA 94301
Project ID TBD
Proj ect Title Palo Alto Housing Corporation/V entura Apartments
Priority Rehabilitation of public facilities
Description Replacement of existing windows with double-pane Low-E
glass, and provide for a new drainage system to address
I settling and dampness problems.
HUDMatrix 14B-Rehab, Multi-Unit Residential
Code/Title
Citation 570.201(a)
Accomplishments 12 housing units
Funding Sources CDBG: $129,602
Eligibility 570.208(a)(3) -Low/Mod Housing
Location 290-310 Ventura
• Palo Alto, CA 94306
ECONOMIC DEVELOPMENT ACTIVITIES
Pro.iect ID TBD -
Project Title Downtown Streets Team/Workforce Development
Priority Job creation and placement
Description Pilot program and a collaborative effort between the local
Downtown Streets Team and Manpower Employment
Agency. The Workforce Development Program will provide
a transition from unemployment and homelessness to regular
employment and housing through case management, job
training, mentoring and housing and transportation assistance.
Downtown Streets Team will screen and ready applicants
while Manpower will use their community connections to
provide training and job opportunities.
HUDMatrix 05H -Employment Training
CodelTitle
Citation 570.201 (c)
Accomplishments 24 Persons will be assisted in job creation and placement
Funding Sources CDBG: $147,000
Eligibility 570.208(a)(2)(A) -Low/Mod Limited Clientele
Location Community-wide
Appendix D
Public Hearing
Advertisement
AFFIDAVIT OF PUBLICATION
IN THE
PALO ALTO WEEKLY
450 Cambridge Ave" Palo Alto, California 94306
(650) 326-821 0
IN THE
SUPERIOR COURT
OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SANTA CLARA
I
STATE OF CALIFORNIA }
SS
COUNTY OF SANTA CLARA
I, the undersigned, state that I am, and at all times herein mentioned was, a
citizen of the United States of America, over the age of eighteen years, and not
a party to or interested in the above entitled matter, that I was at and during
all said times and still am the principal clerk of the publisher of the Palo Alto
Weekly. a newspaper of general circulation published weekly in the city of Palo
Alto in said County of Santa Clara, State of California; that said is and was at
all times herein mentioned a newspaper of general circulation as that term is
defined by Section 6008 of the Government Code of the State of California;
that said was adjudged as such by Superior Court of the County of Santa
Clara, State of California, under date of November 2, 1982, Case Number
P41989; that the notice of which the annexed is a true printed copy, was
set in type not smaller than nonpareil and was preceded with words printed
in black-face type not smaller than nonpareil, describing and expressing in
general terms, the purport and character of the notice intended to be given;
that said notice was published and printed in said newspaper on the following
dates, to wit: I
{\.//GI reLt Id I 2-0 [( ~ ,
(Vlour<.6 It I 'V I ( .
Date of first publication in the Palo Alto Weekly
I declare under penalty of perjury that the foregoing is true and correct.
Executed on /VI a ..-11 lO 'l-O I (
at Palo Alto, California.
a
"'fti,:;""v .. "u,,; Oili;Ci~~h¢U\NillJlpld il FIj,\~ili~ Hearllig on May 9,
at 7:00 p.m., or as J~~i~~~~~Jj:~~r~~~;~;:~ assoCiated 2011112 CO,Jnciil Choml'Affi., 250 Hami~on
Page 26 • MarchA; 2011 • Palo Alto Weekly
Appendix E
Map
r =::! Palo Alto City Boundary
6 Public Service Activities
1) Downtown Streets Team
2) Opportunity Center
3) Barker Hotel SRO
4) Alma Place SRO
A Housing Projects
5) Alma Gardens Apartments
6) Sheridan Apartments
7) Ventura Apartments
Alternate:
Cal Park
-----------•
(0
The City of
Palo Alto
MrJ:l 'l""""4t)P-. OQ)e<:I ~.8';
-~o '1""""4~'''-:= g~g
"--'0 0 ~u~
This map is a product of the
City of Palo Alto GIS
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Appendix F
Public Comment