HomeMy WebLinkAboutStaff Report 231-05ATTACHMENT A
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FY 2005-06 FUNDING RECOMMENDA TIONS*
2004/2005 2005/2006 CAC/STAFF CONTINGENCY
APPLICANT AGENCY FUNDING FUNDING RECOMMEN-RECOMMEN-
REQUEST DATIONS DATIONS1
PUBLIC SERVICES
1. Catholic Charities 5,550 8,940 6,000
Long-Tenn Care Ombudsman
2. Emergency Housing Consortium 7,650 10,063 8,000
Palo Alto HOMES Program
3. Palo Alto Housing Corporation 22,300 32,585 23,000
SRO Resident Support Services
4. Shelter Network -Mid-Peninsula Housing 19,000 30,000 19,000
Transitional Housing for Homeless Families
5. Clara-Mateo Alliance (InnVision) 20,900 25,000 21,392
Family Housing Program
6. Clara-Mateo Alliance (Inn Vision) 25,000 35,000 11,000
Adult Singles/Couples Housing Program
7. Urban Ministry (InnVision) 19,100 30,000 24,000
Homeless Drop-in Center
8. St. Vincent de Paul 9,500 10,000 -0-
Day Worker Emergency Services
9. Mid-Peninsula Alano Club N/A 16,000 5,000
MPAC Operations
Total Public Services (Cap $127,392) 129,000 197,588 127,392
FAIR HOUSING/ADMINISTRATION
10. Fair Housing Services 26,800 26,800 26,800
11. City of Palo Alto 145,200 147,500 138,056
Program Administration
Total Administration (Cap $164,856) 172,000 174,300 164,856
CAPITAL PROJECTS
12. Community Housing Inc. N/A 86,575 o (Combine
Lytton Gardens Counter Top Lavatory with ESO)
13. Project Match N/A 448,988 0
Senior Group Residence
14. Economic and Social Opportunities N/A 60,000 146,575
Housing and Energy Services Program Combine with
Lytton Gardens
15. Emergency Housing Consortium N/A 75,000 75,000
Our House Youth Program
15. Stevenson House -Senior Housing N/A 104,607 , 0 (Full Funding 163,248
WindowslDoors in FY 06-07)
16. Bridge Housing Corporation N/A 300,000 0
Fabian Way Senior Apartments
17. City of Palo AltolHousing Develop. Fund 409,312 400,000 401,816Y
Acquisition of New Rental Housing Project
Total Capital Projects (Cap $623,391) 1,075,170 623,391 163,248
TOTAL 1,447,058 915,639
NOTES:
*Changes may be necessary if the amount offunding is increased or decreased when the President signs the budget.
IContingency recommendations are in the event that substantial progress has not been made in acquiring an affordable housing site.
(See note 2). Staff and the CAC recommend contingency funding, with remaining $238,568 allocated in FY 06/07.
2Recommendation is contingent upon the progress made in acquiring a site by September 15,2005.
FY 2006-07 PRELIMINARY FUNDING RECOMMENDA TIONS*
2004/2005 2006/2007 CAC/STAFF
APPLICANT AGENCY FUNDING FUNDING RECOMMEN-
REQUEST DATIONS
PUBLIC SERVICES
1. Catholic Charities 5,550 8,940 5,800
Long-Term Care Ombudsman
2. Emergency Housing Consortium 7,650 10,063 7,760
Palo Alto HOMES Program
3. Palo Alto Housing Corporation 22,300 59,867 22,300
SRO Resident Support Services
4. Shelter Network -Mid-Peninsula Housing 19,000 30,000 18,400
Shelter and Transitional Housing
5. Clara-Mateo Alliance (Inn Vision) 20,900 25,000 20,750
Family Housing Program
6. Clara-Mateo Alliance (InnVision) 25,000 35,000 20,350
Adult Singles/Couples Housing Program
7. Urban Ministry (InnVision) 19,100 30,000 23,280
Homeless Drop-in Center
8. St. Vincent de Paul 9,500 10,000 -0-
Day Worker Emergency Services
9. Mid-Peninsula Alano Club N/A 16,000 5,000
MP AC Operations
Total Public Services (Cap $127,392) 129,000 224,870 123,640
FAIR HOUSING/ADMINISTRA TION
10. Fair Housing Services 26,800 26,800 26,800
11. City of Palo Alto 145,200 155,000 138,056
Program Administration
Total Administration (Cap $164,856) 172,000 181,800 164,856
CAPITAL PROJECTS
14. Economic and Social Opportunities 60,000 60,000 60,000
Housing and Energy Services Program
15. Stevenson House -Senior Housing N/A 163,248 163,248 (if not
Windows/Doors funded in 05-06)
17. City of Palo Alto/ Housing Development Fund 409,312 400,000 312,537
Acquisition of New Rental Housing Project
Total Capital Projects (Cap $623,391) 623,248 535,785
1,029,918 824,281
TOTAL
NOTES:
*Changes may be necessary if the amount of funding is increased or decreased when the President signs the budget.
NOT YET APPROVED
SECTION 1. The uses of CDBG funds for fiscal year 2005-06
are hereby approved and authorized for the following programs:
1.
2.
3.
Catholic Charities' Long-Term Ombudsman
Program -Confidential advocacy and
complaint investigation services to
residents in Palo Alto's licensed
long-term care facilities.
Emergency Housing Consortium. EHC
provides temporary shelter and supportive
services for homeless individuals and
families. County-wide.
Palo Alto Housing Corporation. Supportive
counseling program for low income residents
and prospective residents of single-room
occupancy housing in Palo Alto.
4. Shelter Network's Mid-Peninsula Housing -
Transitional housing and comprehensive
supportive services for homeless families
at the agency's Menlo Park and San Mateo
facilities. The Maple Street Shelter
serves single adults in Redwood City.
These programs seek to permanently break
the cycle of homelessness, re-linking
homeless families and individuals with
stable incomes, jobs, and housing.
5 .
6.
050502 syn 0120020
Clara-Mateo Alliance/Innvision Family
Shelter Wing -Emergency and transitional
housing and supportive services for homeless
families with children. Services include
food, clothing and medical care. All
services are provided on the grounds of
the VA Campus in Menlo Park.
Clara Mateo Alliance/Innvision Shelter -
Emergency and transitional housing for
homeless persons at the VA campus in Menlo
Park. The shelter targets a difficult to
serve population such as homeless persons
with disabilities, psychiatric disorders,
substance-abuse issues, and those with
severe mental illness.
2
$ 6,000
8,000
23,000
19,000
21,392
21,000
NOT YET APPROVED
and apartments for City Year/Americorp
participants.
13. Economic and Social Opportunities. The
project will assist a minimum of 26 low-
income Palo Alto households with home
improvements services. These services
are designed to identify and improve
hazardous conditions in homes, improve
accessibility and use for seniors and
individuals with disabilities, improve
energy efficiency and make necessary
minor repairs in order to avoid more
expensive solutions in the future.
14. Economic and Social Opportunities -
Lytton Gardens Countertop Lavatory
Project. The project will involve the
replacement of 27 sinks on one floor
of the skilled nursing facility with
solid surface countertops, a bowl and
grab bar. ESO will carry out the project
on behalf of Lytton Gardens.
TOTAL
Contingent Authorizations
75,000
60,000
86,575
$915,639
1. If the City of Palo Alto Housing Development Fund
(described in item 11 above) has not met its contingency obligation
of making substantial progress in securing a site by the
September 15, 2005 deadline, the $401,816 in funding will be
reauthorized for the following programs:
a.
b.
Stevenson House-Windows and Doors.
Project is to replace the windows and
doors in the common areas of the
senior housing facility.
Reallocate funds to projects ih fiscal
year 2006-2007
$163,248
$238,568
SECTION 2. The total amount set forth under Section 1 of
this resolution represents the proposed allocation of $779,281 in
CDBG funds, from the United States Department of Housing and Urban
Development ("HUD n ) for fiscal year 2005-06, $45,000 in anticipated
program income for fiscal year 2005-06, $28,788 in prior years
program income and $62,570 in miscellaneous reallocated funds.
4
050502 syn 0120020
NOT YET,APPROVED
B. Capital Projects. The following allocations are
recommended, subject to adjustment for any increase or decrease in
CDBG funding:
1. City of Palo Alto. CDBG Housing
Development Fund. Provision of
funds to be used in conjunction
with other City Housing In-Lieu
funds to acquire a site for a new
affordable housing project.
Location not yet determined.
2 Economic and Social Opportunities.
3 .
The project will assist a minimum
of 26 low-income Palo Alto households
with home improvements services. These
services are designed to identify and
improve hazardous conditions in homes,
improve accessibility and use for
seniors and individuals with disabil-
ities, improve energy efficiency and
make necessary minor repairs in order
to avoid more expensive solutions in
the future.
Stevenson House -Windows and Doors.
Project is to replace the windows and
doors in the common areas of the senior
housing facility.
TOTAL
$312,537
60,000
163,248
$535,785
SECTION 4. The City staff is hereby authorized to submit
the 2005-06 annual Action Plan update and appropriate application
forms to HUD for the fiscal year 2005-06 CDBG funds, 'and such money
shall be spent as set forth in this resolution. The Mayor, City
Manager and any other designated City staff or officials are hereby
authorized to execute such application forms and any other
necessary documents to secure these funds.
SECTION 5. The City Council hereby finds that the fiscal
year 2005-06 CDBG program authorized under Section 1 of this
resolution is not a project under the California Environmental
Quality Act ("CEQA"). However, the Council further authorizes and
directs City staff to conduct any further environmental review, and
prepare any additional environmental assessments and certificates
6
050502 syn 0120020
NOT YET APPROVED
that may be required, under CEQA and the National Environmental
Policy Act (NEPA) for each project under the fiscal year 2005-06
and fiscal year 2006-07 CDBG program prior to the release of funds
for any such project.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS: .
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Senior.Asst. City Attorney
APPROVED AS TO CONTENT:
CDBG Coordinator
050502 syn 0120020
7
APPROVED:
Mayor
City Manager
Director of Planning
and Community Environment
Director of Administrative
Services
RECOMMENDATION
Staff and the CDBG Citizen's Advisory Committee recommend that the Finance Committee
recommend to the City Council approval ofthe following:
1. Allocate CDBG funding as recommended by staff in the first 2005/06 Action Plan
update to the Consolidated Plan for the period 2005 to 2010.
2. Commit future CDBG funds to repay the General Fund for a portion of the CDBG-
eligible site acquisition costs in connection with a new affordable housing project, if a
site can be identified and acquired in 2005/06.
3. Authorize staff to submit the 2005-2010 Consolidated Plan to the Department of
Housing and Urban Development (BUD) by the May 15, 2005 deadline.
4. Authorize staff to submit th~ 2005/06 Actio~ Plan to BUD by the May 15, 2005
deadline.
5. Authorize the City Manager, on behalf of the City, to execute the 2005/06 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.
6. Allocate Fiscal Year 2006/07 funding as recommended.
BACKGROUND
Consolidated Plan
The City's Consolidated Plan is a strategic plan of action that addresses priority housing and
community development needs, and sets specific goals for attaining identified objectives. It is
required by the Department of Housing and Urban Development (BUD) to be updated every
five years. The Consolidated Plan and the Annual Action Plan are a requirement in order for
the City to receive federal funding from CDBG or the HOME Investment Partnership Act.
CDBG Regulations
The City of Palo Alto receives funds annually from BUD as an entitlement city under the
CDBG Program, authorized by Title I of the Housing and COl11munity Development Act of
1974 (the Act) as amended. The primary objective of the Act is ''the development of viable
urban communities by providing decent housing and a suitable living environment, and
expanding economic opportunities, principally for persons of low and moderat~ income."
HOD regulations require that all activities must meet one of the three national objectives of the
CDBG Program: .
~ Benefit low-and very-Iow-income persons;
~ Aid in the prevention or elimination of slums or blight; or
CMR: 206:05 Page 2 of9
, .....
~ Meet other community development needs having a particular. urgency, or posing a
serious ~d immediate threat to the health or welfare of the community.
Palo Alto has historically expended all of its CDBG funds on projects benefiting low-and very-
low-income persons.
There are three primary' CDBG program activity areas:
Public Services: Social service activities that. benefit low-income persons. The maximum
amount that can be expended under this category is 15 percent of the grant allocation and 15
percent of the program income for the previous year. For fiscal year 2005/06, the maximum
available for public services is $127,392.
Public Service Cap Calculation:
2005/06 Entitlement Grant
Program Income -Housing Improvement Program 2004/05* (Est.)
Program Income -P AHC 2004/05* (Est.)
$849,281 x 15% =
$779,281
$35,000
$35,000
$127,392
*Federal regulations require the public service and planning/administration caps to be calculated
on program income for different years.
Planning and Administration: This category may be used to reimburse for fair housing
activities, CDBG program management, oversight and coordination, environmental reviews,
and general planning activities. Federal regulations limit the amount that can be spent in this
category to 20 percent of the grant and 20 percent of the estimated program income for the
following year. For fisc'al year 2005/06 fiinding is limited to a maximum of$164,856.
Planning/Administration Cap Calculation:
2005/06 Entitlement Grant (Est.)
Program Income -HIP 2005/06* (Est.)
Program Income -.p AHC 2005/06* (Est.)
$779,281
$35,000
$10,000
$824,281 x 20% = $164,856
*Federal regulations require the public, service and planning/administration caps be calculated
on program income for different years.
Capital Projects: Capital improvement activities such as housing acquisition, rehabilitation,
accessibility, and public improvements are the primary focus of the CDBG program. There are
no funding limitations in this category.
CDBG Applications
Applications for 2005/07 funding were mai1ed to area housing and human service providers on
.october 12, 2004. and posted to the City's website. A notice announcing the availability of
applications for 2005/06 and 2006/07 CDBG funding was published in the Palo Alto Weekly on
October 13,2004. A proposal-writing workshop was conducted on November 3, 2004 to assist
CMR:206:05 Page 3 of9
applicants with program regulations and project eligibility questions. The completed
applications were due December 10, 2004. The City received 16 applications for funding from '
outside organizations totaling $1,420,259 for FY 2005/06 and 12 applications for funding
totaling $526,384 for FY 2006/07. In addition, the City requested a reservation of $400,00 in
CDBG funding in each fiscal year for an affordable housing project. '
Citizen Participation
The City follows a Citizen Participation Plan to encourage public participation in the CDBG
allocation and assessment process; The Citizen Participation Plan calls for a nine-member
Citizens Advisory Committee (CAC), eight of whom are selected by the Mayor. One slot on
the CAC is reserved for a member of the City's Human Relations Commission (HRC).
Members of this year's CAC were: Eve Agiewich (HRC Liaison), Victoria Bosch, David
Charleson, Michael Jakoby, Chris Kelly, Steve Mullen, Elsbeth Newfield, Sylvia Smitham and
George Vizvary. Steve Mullen was selected as the Committee's spokesperson. The Committee
met weekly during January and February 2005 to discuss and evaluate the applications,
interview the applicant agencies and come to a consensus on funding levels. In addition, the
Committee went on a half-day tour of some of the local applicant sites.
DISCUSSION
Consolidated Plan
The Draft 2005-2010 Consolidated Plan and Draft 2005/06 Annual Action Plan update are
available for public review and comment during the period April 1 to April 30, 2005
(Attachment B). Consistent with the existing 2000-2005 Consolidated Plan, the primary need
identified in the proposed Consolidated Plan is for affordable housing for low-income persons
or persons with special needs. The goal for the 2005-2010 five-year period is to provide 125
units of permanent, affordable housing. Palo Alto's CDBG program continues to be directed
toward expanding 'and maintaining the affordable housing supply; promoting housing
opportunities and choices; maintaining and improving community facilities; and providing
supportive services for targeted low-income groups, including persons who are homeless,
persons with disabilities, the elderly, and other special needs groups. All of the proposed
projects for CDBG funding for fiscal year 2005/06 and fiscal year 2006/07 address the priority
housing and supportive service needs identified in the draft Consolidated Plan.
2005/06 Funds Available for Allocation
The total amount available for allocation in fiscal year 2005/06 is $915,639. The City's
2005/06 CDBG grant is $779,281, a 4.5 percent decrease over the prior year's grant of
$816,000. $62,570 in funds remaining from previous projects is being reallocated to new
projects. Also included is $45,000 in program income (income generated directly from the use
of CDBG funds) expected to be received in 2005/06, plus $28,788 in program income received
in previous years in excess of the estimated amount.
In summary:
$779,281
62,570 '
CMR: 206:05
FY 2005/06 CDBG entitlement grant from HUD*
Reallocation of other previous funds
Page 4 of9
.. ... 35,000
10,qOO
28,788
$915,639
Estimated program income for 2005/06 from the City's Housing
Improvement Program (HIP), a single-family residential rehabilitation
program that is no longer operational
Estimated program income for 2005/06 from the Palo Alto Housing
Corporation that is generated when rental income exceeds expenses on
specific properties acquired or rehabilitated with CDBG funds
Actual program income received in previous years in excess of the
estimated amounts that were allocated
*The amount of entitlement grant is not confirmed until the President has signed a budget bill
approved by the United States Congress.
Funding Recommendations -FY 05/06
The chart on the following page shows the applications that were received and the CAe and
staff funding recommendations. It should be noted that changes might be necessary in the event
that the City's entitlement grant is increased or decreased when the President signs the actual
budget. Attachment A is a narrative explaining the funding requests and funding
recommendations in more. detaiL
CMR: 206:05 Page 5 of9
FUNDING RECOMMENDATIONS*
2004/2005 2005/2006 CAC/STAFF
APPLICANT AGENCY FUNDING FUNDING RECOMMEN-
REQUEST DATIONS
PUBLIC SERVICES
1. Catholic Charities 5,550 8,940 6,000
Long-Tenn Care Ombudsman
2. Emergency Housing Consortium 7,650 10,063 8,000
Palo Alto HOMES Program
3. Palo Alto Housing Corporation 22,300 32,585 23,000
SRO Resident Support Services
4. Shelter Network -Mid-Peninsula Housing 19,000 30,000 19,000
Transitional Housing for Homeless Families
5. Clara-Mateo Alliance (lnnVision) 20,900 25,000 21,392
Family Housing Program
6. Clara-Mateo Alliance (InnVision) 25,000 35,000 21,000
Adult Singles/Couples Housing Program
7. Urban Ministry (InnVision) 19,100 30,000 24,000
Homeless Drop-in Center
8. St. Vincent de Paul 9,500 10,000 -0-
Day Worker Emergency Services
9. Mid-Peninsula Alano Club N/A 16,000 5,000
MP AC Operations
Total Public Services (Cap $127,392) 129,000 197,588 127,392
FAIR HOUSING! ADMINISTRATION
10. Fair Housing Services 26,800 26,800 26,800
11. City of Palo Alto 145,200 147,500 138,056
Program Administration
Total Administration (Cap $164,856) 172,000 174,300 164,856
CAPITAL PROJECTS
12. Community Housing Inc. N/A 86,575 ° (Combine with
Lytton Gardens Counter Top Lavatory ESO)
13. Project Match N/A 448,988 ° Senior Group Residence
14. Economic and Social Opportunities N/A 60,000 146,575 Combine
Housing and Energy Services Program with Lytton
Gardens
15. Emergency Housing Consortium N/A 75,000 75,000
Our House Youth Program
15. Stevenson House -Senior Housing N/A 104,607 o (Full Funding in
Walk-In CoolerlFreezer and WindowslDoors FY 06-07)
16. Bridge Housing Corporation N/A 300,000 ° Fabian Way Senior Apartments
17. City of Palo Altol Housing Development Fund 118,500 400,000 401,816
Pre-development of New Rental Housing Proiect
Total Capital Pro.iects (Cap $623,391) 1,075,170 623,391
1,447,058 915,639
TOTAL
*Changes may be necessary If the amount of funding IS mcreased or decreased when the
President signs the budget.
CMR: 206:05 Page 6 of9
negotiations with the property owners. Staff and theCAC will review progress made on the
acquisition in mid-September. If substantial progress has not been made by that time, staff and
the CAC recommend an alternative plan for the funds in fiscal year 2005/06. Staff and the CAC
recommend $86,575 ,in additional funding for Lytton Gardens to replace the sinks on an
additional floor in its skilled nursing facility. $25,000 in additional fUnding is recommended for
Emergency Housing Copsortium's Our House Youth Project and $163,248 is recommended for' '
windows and doors at Stevenson House. The additional $126,993 will be reallocated to projects
in fiscal year 2006/07.
POLICY IMPLICATIONS
All of the applications recommended for funding in fiscal years 2005/2006 and 2006/07 are
consistent with the priorities established in the City's adopted Consolidated Plan for the period
2000 to 2005 and the draft Consolidated Plan for the period 2005 to 2010. They are also
consistent with the housing programs and policies in the adopted Comprehensive Plan.
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 2, 2005. The funding
allocations and Consolidated Plan update will be submitted to HUD by the May 15, 2005
deadline.
ENVIRONMENTAL REVIEW
For purposes of the National Environmental Policy Act (NEPA) and the California
Environmental Quality Act (CEQA), budgeting in itself is not a project; HOD environmental '
regulations for the CDBG program are contained in 24 CPR 58 "Environmental Review
Procedures for Title I Community Development Block Grant Programs". The regulations
require that entitlement jurisdictions assume the responsibility for environmental review and
decision-making under NEP A. Prior to the commitment or release of funds for each of the
proposed projects, staff will carry out the required environmental reviews or assessments, and
certify that the review procedures under CEQA, and HOD and NEPA regulations have been
satisfied for each particular project.
ATTACHMENTS
Attachment A:
Attachment B:
CMR: 206:05
Staff and CAC recommendations for FY 2005/06 and 2006/07 CDBG
Funding
Draft Consolidated Plan Update for the period 2005 to 2010 and 2005/06
Draft Annual Action Plan
Page 8 of9
an on-going basis. These intensive case management and supportive services playa vital role in
helping the residents maint~in their stability and housing.
Priority Need: Prevention of homeless ness.
Discussion: Current contract objectives are being met. The service program has dramatically
reduced turnover and eviction rates. P ARC requests additional funding in the second year
because they have a grant for the program that will expire in 2005/06. Staff and the CAC do not
recommend an increase in funding in the second year because of the limited funds available in
the public services category. The City would need to reduce funding to other programs in order
to increase PARC's funding.
3. Catholic Charities ...:.. Long-Term Care Ombudsman
2625 Zanker Road, San Jose, CA 95134
Funding Request 2004/05 Funding
FY 05/06 $8,940 $5,550
FY 06/07 $8,940
Staff/CAC
Recommendation
$6,000
$5~800
Proposal: Agency provides confidential advocacy and complaint investigation services to the
approximately 897 residents in Palo Alto's licensed long-term care facilities. Program
beneficiaries are the frail, chronically ill, primarily elderly residents in Palo Alto's licensed
skilled nursing and residential care facilities. Agency staff and trained comniunity volunteer
ombudsmen visit residents on a regular basis and as special circumstances dictate (i.e., in
response to specific complaints). Agency staff and volunteers investigate complaints, including
allegations of abuse and neglect, seek fair resolution to problems, and promote residents' rights
for quality care and quality of life in the long-term care settirig.
Priority Need: Supportive services for lower-income persons.
Discussion: The Ombudsman Program services are not duplicated by any other agency, and
provide an important presence in long-term care facilities. Local volunteers are utilized to
provide the majority of site visits. Agency proposes contacting/interviewing 495 Palo Alto
residents and conducting 40 complaint investigations.
4. Shelter Network-Mid-Peninsula Housing Programs
Haven Family House: 260 Van Buren Road, Menlo Park, CA 94025
First Step for Families: 325 Villa Terrace, San Mateo, CA 94402
Maple Street Shelter: 1580 - A Maple Street, Redwood City, CA 94063
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY 05/06 $30,000 $19,000 $19,000
FY 06/07 $30,000 $18,400
Proposal: Shelter Network operates several facilities that provide housing opportunities for the
homeless. Haven Family House·and First Step for Families provide transitional housing and a
comprehensive array of supportive services to homeless families in newly constructed facilities
located in Menlo Park and San Mateo respectively. An on-site licensed childcare facility is also
2
available at Have Family House and First Step for Families. In addition, the Maple Street
Shelter serves single adults in Redwood City. Shelter Netwqrk's housing programs allow
residents to reconnect with permanent housing, jobs, and the skills and resources necessary to
. break the cycle of homeless ness.
Priority Need: Transitional housing and supportive services for homeless families with children.
Discussion: Shelter Network's facilities are important resources for homeless individuals and
families with children from northern Santa Clara County. The facility expects to serve 45
homeless families representing more than 150 parents and children. It is expected.that three to
eight families from Palo Alto will be served at the family facilities (representing approximately 8
to 24 parents and children). In addition, they plan on serving 20-30 homeless individuals in their
Maple Street shelter. .
5. Clara-Mateo Alliance (CMA)/Inn Vision -Family Shelter Wing
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
Funding Request 2004/05 Funding
FY 05/06 $25,000 $20,900
FY 06/07 $25;000
Staff/CAC
Recommendation
$21,392
$20,750
Proposal: The Clara-Mateo Alliance has 18 emergency shelter beds and six transitional housing
units devoted to homeless families. Annually, 125-160 individuals are provided with housing
and supportive services. The agency is proposing to serve a minimum of three homeless families
with children from Palo Alto. In addition, they will.provide extensive on-site supportive services
to all program participants, including food, clothing and medical care ..
Priority Need: Shelter, supportive services, and transitional housing for homeless families and a
Day Center for homeless women and children.
Discussion: This project is an important resource for the growing number of homeless families
with children in northern Santa Clara County. The family program has accomplished its goals of
serving Palo Alto families in the last fiscal year.
6. Clara-Mateo Alliance (CMA)/Inn Vision -Shelter and Supportive Services
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY 05/06 $35,000 $25,000 $21,000
FY 06/07 $35,000 $20,350
Proposal: Clara-Mateo Alliance (CMA) provides a 63-bed shelter for homeless individuals and
couples, and thirty transitional housing rooms for graduates of the shelter. They provide
supportive services aimed at increasing self-sufficiency and fmding and maintaining stable
housing. The shelter targets the under-served populations such as homeless persons with
disabilities, mental illness, psychiatric disorders, and chronic substance abusers.
Priority Need: Shelter and services for persons who are homeless.
3
Discussion: This program is an important link in the county's homeless continuum of care. It
has been operating since 1997 and serves individuals and couples. It is a collaborative effort
with the Veterans Administration, other shelter and service providers and the counties of Santa
Clara and San Mateo. The facility serves the homeless sub-populations with some of the greatest
needs. It is anticipated that the total program will provide 1,000 nights of care to a minimum of
50 Palo Alto individuals and couples. The adult program fell short of accomplishing its goal of
serving 50 Palo Alto residents in fiscal year 2003-04. They served 39 Palo Alto residents. Staff
and the CDBG CAC recommend that funding be !educed for the adult program and that the
additio:p.al funding go to the Urban Ministry Drop-In Center because they have significantly
surpassed their goals in serving Palo Alto residents.
7. Urban Ministry of Palo AltollnnVision -Drop-In Center
400 Mitchell Lane, Palo Alto, CA 94391
Funding Request 2004/05 Funding
FY 05/06 $30,000 $19,100
FY 06/07 $30,000
Staff/CAC
Recommendation
$24,000
$23,280
Proposal: Agency proposes to provide basic survival services to the local homeless popUlation.
Services include a light breakfast, used clothing, toiletries, phone, mail, messages, bus passes,
and referrals to oth~r agencies. Urban Ministry caseworkers are available to assist clients fmd
shelter, medical care, employment and tohelp with other problems.· The Drop-In Center
operates from the back of the Red Cross building at 400 Mitchell Lane in Palo Alto and serves an
average of 150 persons each weekday morning. In addition, the Hotel de Zink Emergency
Shelter serves 15-17 persons each night.
Priority Need: Shelter and services for persons who are homeless.
Discussion: Urban Ministry/Inn Vision has' significantly exceeded their goals in the current fiscal
year. They had proposed serving a total of 935 unduplicated individuals and had served over
4,000 by December 31,2004. Staff and the CAC recommend that Urban Ministry's funding be
increased based on their performance to date. In addition, Urban Ministry has a strong presence
in Palo Alto and serves a large number of people who might not otherwise seek supportive
services.
8. St. Vincent de Paul Society -Dayworker Emergency Services
2044 Old Middlefield Way, Mountain View, CA 94043
Funding Request 2004/05 Funding
FY 05106 $10,000 $9,500
FY 06/07 $10,000
Staff/CAC
Recommendation
-0-
-0-
Proposal: The St. Vincent de Paul Society formerly operated the St. Joseph the Worker Center
that was formed in Mountain View to connect day laborers with employers. The St. Vincent de
Paul Society is no longer operating the dayworker center and they are seeking funding to provide
emergency services for dayworkers, such as food, clothing and housing assistance out of an
existing location where they currently conduct business.
·4
Discussion: This is the second time that the three cities are collaborating on fair housing services.
A joint RFP was issued in 2003 for a two-year contract and the three jurisdictions selected one
fair housing provider. The Department of Housing and Urban Development (HUD) regulations
require CDBG entitlement jurisdictions to affirmatively further fair housing choice.
to. City of Palo Alto -Department of Planning and Community Environment
250 Hamilton Avenue, Palo Alto, CA 94301
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY 05/06 $147,500 $145,200 $138,056
FY 06/07 $l55,000 $138,056
Proposal: Funding is requested to reimburse the City General Fund for costs related to the overall
management, coordination, monitoring and evaluation ofthe CDBG Program, including
oversight of public service contracts, data gathering, studies, analysis, plan preparation, and the .
identification of actions for implementation of plans.
Priority Need: CDBG Program Administration and support
Discussion: A reimbUrsement of $138,056 from grantfunds is well within the 20%
administrative cap and helps alleviate General Fund budgeting constraints. Staff and the CAC
would like to continue to fund fair housing services at the same level, which has caused a
reduction in funds allocated to CDBD administration. The CDBG Program Administration
budget may need to be scaled back in some areas, such as office supplies and consultant services
in order to account for the reduction in funding from the previous fiscal year.
CAPITAL AND/OR HOUSING PROJECTS
11. Community Housing Inc. -Lytton Gardens Counter Top Lavatory Project
437 Webster Street, Palo Alto, CA 94301
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY 05/06 $86,575 N/A $86,575 to Economic
and Social Opportunities
(ESO) to complete the
work
Contingency $86,575 in additional
funding to ESO to
complete an additional
floor
Proposal: Lytton Gardens owns and operates several facilities that provide affordable housing for
seniors. In addition, they operate a skilled nursing facility that provides service to low-income
patients. They are proposing to replace 27 sinks on one floor of the skilled nursing facility with
solid surface countertops, a bowl and grab bar. The bathrooms date from 1986 and the new
lavatory will be easier and safer to use by the frail, elderly patients. .
6
Priority Need: Rehabilitation of affordable rental housmg.
Discussion: Staff and CAC recommend full funding of this project. However, Economic and
social Opportunities (ESO), a non-profit in San Jose will perfonn the work. The contract will be
with ESO and they will be responsible for overseeing the project. Staff and CAC recommend
additional funding in the amount of $86,575 in the event that the City is unable to acquire an
affordable housing site with CDBG Housing Development funds.
12. Project Match, Inc. -Palo Alto Senior Group Residence Project
512 Valley Way, Milpitas, CA 95035 .
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY 05/06 $448,988 N/A -0-
Proposal: Funding is requested for the acquisition and rehabilitation of a single-family home in
Palo Alto that will be converted into a 5-bedroom group home for low-income seniors. Project
Match will provide property management activities and also offer social work services to
residents. .
Priority Need: Acquisition of affordable rental housing.
Discussion: Staff and the CAC do not recommend funding for this project at this time. A site has
not been identified and with the lack of available real estate in the City, it may be difficult to
locate an appropriate site. The funds requested by Project Match will only cover approximately
half of the costs and they are planning on applying for HOME funds in October 2005. If they are
awarded HOME funds, they will not be available until early 2006. There is also a possibility that
HOME funds may not be allocated to the project because of the highly competitive nature of the
HOME program. If they do not receive a HOME allocation, they will only have half of the
necessary amount to purchase and rehabilitate a home. There is also some concern that the per
unit cost is over $200,00.
13. Emergency Housing Consortium -Our House Youth Program
480 E. William Street, San Jose; CA 95113
Funding Request 2004/05 Funding
FY 05/06 $75,000 N/A
Contingency
Staff/CAC
Recommendation
$75,000
$25,000
Proposal: Emergency Housing Consortium provides a variety of services for homeless
individuals and families. One component ofEHC's services is the Our House Youth program,
which provides shelter and transitional housing to homeless youth. EHC is proposing an
expansion that will involve relocation, rehabilitation and new construction. Upon completion,
they will provide drop-in services, 10 beds of emergency shelter, 12 beds of transitional housing
and 5 apartments for City Y earl Americorps participants.
Priority Need: Rehabilitation and New Construction of Public Facility Serving Homeless Youth.
7
Discussion: Staff and the CAC recommend $75,000 in funding for this project. There are less
than 75 beds of housing for single homeless youth in the County and an estimated 1,200 youth
living on the streets. Approximately 2% of the youth served at Our House come from Palo Alto.
Staff and CAC recommend additional funding in the amount of $25,000 in the event that the City
is unable to acquire an affordable housing site with CDBG Housing Development funds.
14. Economic and social Opportunities -Housing and Energy Services Program
1445 Oakland Road, San Jose, CA 95112
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY 05106 $60,000 $60,000 $60,000
FY 06107 $60,000 $60,000
Proposal: Agency proposes to assist a minimum of26 low-income Palo Alto households with
home improvement services. These services are designed to identify and improve hazardous
conditions in homes, improve accessibility and use for seniors and individuals with disabilities,
improve energy efficiency and make necessary minor repairs in order to avoid more expensive
solutions in the future.
Priority Need: Conservation of energy and improved accessibility for individuals with physical
disabilities.
Discussion: Staff and the CAC recommend that this project receive $60,000 in funding in each
-fiscal year. Energy efficiency and the modification of units for those who are physically disabled
are identified as priorities in the City's Housing Element Update, 1999-2006. Economic and
Social Opportunities addresses these needs by providing services designed to improve safety and
use, enhance affordability and preserve affordable housing. In addition, staffandthe-CAC
recommend that ESO administer the Lytton Gardens countertop Lavatory Project and receive an
additional $86,575 specifically for that purpose.
15. Stevenson House -Walk-In CoolerlFreezer and Windows and Doors
455 E. Charleston Road, Palo Alto, CA 94306
Funding Request 2004/05 Funding Staff/CAC
Recommendation
FY05/06 $104,607 $38,200 for Hot -0-
FY 06/07 $103,641 Water Pipe Upgrade $163,248
Proposal: Stevenson House provides 120 units of affordable rental housing to low-income
seniors. Since seniors are living longer, and there are almost no assisted living facilities for low-
income seniors, Stevenson House is attempting to provide supportive services to their residents
to help them maintain their independence as long. as possible. Their proposal is to replace the
walk-in cooler and freezer and the windows and doors in the common areas ..
Priority Need: Rehabilitation of affordable rental housing.
Discussion: Staff and the CAC recommend $163,248 in funding for this project in fiscal year
2006/07 . The CDBG program has some unexpended funds from a project in fiscal year 2003/04
that will not be able to proceed. Because of the urgency of the freezer and the City's need tq
8
· ..
. .
allocated to the CDBG Housing fund. The primary reason for this is that the City must experid
CDBG funds in a timely manner or risk losing future CDBG funds. The al~emative funding plan .~
is to provide an additional $86,575 to Economic and Social Opportunities to replace the sinks in
an additional floor to the Lytton Gardens skilled nursing facility; an additional $25,000 to the
Emergency Housing Consortium for their Our House Youth Project; and $163,248 to Stevenson
House for replacement of windows and doors in the common areas of their senior housing
facility. The remaining $126,993 will be allocated with fiscal year 2006/07 funds.
10
During FY 2003-04, the City allocated a total of $924,519 in CDBG funds,
including the entitlement grant allocation of $791 ,000, plus program income and
reallocated funds. In order to leverage substantial financing for underway and future
affordable housing, the City allocated 46% or $430,069, toward housing site-acquisition
activities and successfully competed for a $1 million dollar housing trust fund grant from
the State under Proposition 46. Additionally, the City's local housing trust fund
2
comprised of housing mitigation and housing in-lieu fees, was increased to a total of $2.3
million dollars.
The City continued to provide significant local support to non-profit organizations,
i.e., $1,278,853 in General Funds, plus $238,000 in CDBG funds, to support the delivery
of a variety of essential public services and toward the improvement and operation of
senior, homeless and neighborhood facilities. The number of low and moderate-income
persons, individuals with special needs and the homeless population, which benefited
from City General Funds and CDBG funds was estimated at over 13,000 persons·and
9,500, respectively. In addition, the City's Hamilton Public Benefit Program for Senior
Services, an endowment fund, supported literacy, caring and computer learning
programs, a home repair program which completed 547 home repair projects and a
information and referral service which assisted approximately 1,100 persons.
Based on our review of annual performance information and IDIS system data, we
.have determined that CDBG Program statutory and regulatory requirements were met
during the reporting period, in terms of benefit to low and moderate-income persons and
the timeliness of expenditure of funds.
The Department is working with national public interest groups that represent
grantees and OMB to develop a new Performance Measurement framework for formula
programs administered by the Office of Community Planning and Development. The
intention is to try to better capture the significant national accomplishments of these
outstanding programs. HUD expects to be providing information on this new approach
during the second quarter of Federal Fiscal Year 2005, and will be asking grantees for .
input on this important new approach. This effort should complement .Iocally focused·
performance measurement systems. ..
We are pleased that the City is considering developing a locally focused.
performance measurement system, which will help ascertain how well programs and
projects are meeting identified needs, provide useful information to improve performance
and better target resources. We would be glad to work with City staff and also utilize our
contracted technical assistance providers to assist you regarding the development of a
performance measurement system, as well as to address any other technical assistance
needs.
'r
Table of Contents
Table of Contents
Contents
Chapter 1: Introduction .......................................................................................... 4
1 .1 Purpose and Content ................................................................................................. 4
1 .2 Coordinating and Managing the Process .............................................................. 5
1.3 Housing and Community Development Needs ..................................................... 5
1.4 Five-Year Strategy ...................................................................................................... 6
1 .5 2005 -2006 Action Plan ............................................................................................. 7
Chapter 2: Coordinating and Managing the Process ....................................... 11
2.1 Institutional Structure ...................................................................................... 11
2.2 Coordination ................................................................................................... 12
2.3 Monitoring ................................................................................................ : ....... 13
Chapter 3: Housing and Community Development Needs ............................. 15
3.1 Population and Household Characteristics ............... , ............................... 15
3.2 Current Housing Needs .................................................................................. 20
3.3 New Construction N·eeds ................................. ' ................... · .......................... 31
3.4 Housing Market Conditions ........................................................................... 31
3.5 Public and Assisted Housing Needs ................ ; ............................................ 41
3.6 Barriers to Affordable Housing ...................................................................... 44
3.7 Fair Housing ...................................................................................................... 50
3.8 Homeless Needs ............................................................................................. 52
3.9 Community and Economic Development Needs ..... : .............................. 91
Chapter 4: Five-Year Strategy ............................................................................. 99
4.1 Methods for Identifying Priority Needs ....................................................... 1 00
4.2 Resources for Housing .................................................................................. 1 01
4.3 Housing and Community Development Strategy ................................... 1 07
Appendix A: Agency Consultation and Community Outreach .................... 126
A.l Agency Consultation ................................................................................... 126
A.2 Community Outreach .................................................................................. 133
A-3 Countywide Telephone SUNey .................................................................. 135
Appendix B: Citizen Participation Plan ............................................................. 158
Appendix C: 2005 -2006 Program Year Action Plan ..................................... 164
Ciiy of Palo Alto 2005 -2010 Consolidated Plan
Table of Contents
List of Tables
3-1 : Race and Ethnicity by Person and Household (2000) ............................... 15
3-2: HUD Income Definitions .................................................................................. 16
3-3: Household Income by Race/Ethnicity (2000) ............................................. 18
3-4: Lower Income Households by Race/Ethnicity (1990-2000) .. ; ................... 18
3-5: Housing Problems by Household Income .................................................... 22
3-6: Licensed Community Care Facilities ............................................................ 24
3-7: Types of Disabilities .......................................................................................... 27
3-8: Large Household Profile ................................................................................. 29
3-9: Location of AIDS Cases, Santa Clara County ............................................. 30
3-10: Housing Growth .................................................. : ............................................ 32
3-11: Housing Type -2004 ........................................................................................ 32
3-12: Mobile Home and RV Parks in Santa Clara County .................................. 33
3-13: Housing Tenure .; .............................................................................................. 34
3-14: Median Home Prices (2003-2004) ................................................................. 35
3-15: Rental Rates in Selected Santa Clara County Jurisdictions ..................... 34
3-16: Fair Market Rents in Santa Cldra County .................................................... 36
3-17: Affordable Housing Costs by Income .......................................................... 37
3-18: Age of Housing Stock (2000) ......................................................................... 38
3-19: Housing Stock Deficiencies (2000) ................................................................ 38
3-20: Housing Occupied by Lower Income Households with Potential Lead-
Based Paint Hazard ........................................................................................ 39
3-21: Section 8 Participants and Applicants in Palo Alto ................................... 41
3-22: Palo Alto Subsidized Rental Housing Developments (January 2005) ...... 42
3-23: Assisted Housing Units At Risk of Conversion to Market-Rate ................... 43
3-24: Homeless and Special Needs Populations (Palo Alto) .............................. 54
3-25: Homeless and Special Needs Populations (Santa Clara County) .......... 55
3-26: Emergency Shelters, Santa Clara County ................................................... 86
3-27: Transitional Housing, Santa Clara County ................................................... 88
3-28: Permanent Supportive Housing, Santa Clara County ............................... 90
3-29: Community Development Needs Priorities ................................................. 91
3-30: Major Employers of Palo Alto Residents ....................................................... 95
4-1: Public and Private Resources Available for Housing and Community
Development Activities ............................................................................... 1 02
4-2: Priority Housing Needs .................................................................................. 109
4-3: Special Needs and Goals ............................................................................ 117
4-4: Summary of Specific Homeless/Special Needs Objectives .................... 118
4-5: Community Development Need, Priorities, and Goals ........................... 120
4-6: Summary of Specific Housing/Community Development Objectives .121
4-7: Strategy for Overcoming Barriers to Affordable Housing ....................... 124
A-1 Zip Code of Survey Participants .................................................................. 139
A-2: Household Size ............................................................................................... 141
A-3: Age of Householder ...................................................................................... 1'42
A-4: Education Level ............................................................................................. 142
A-5 Race and Ethnicity ........................................................................................ 143
A-6 Household Income ........................................................................................ 146
City of Palo Alto 2 2005 -2010 Consolidated Plan
Introduction
1.2 Coordinating and Managing the Process
The City's Department of Planning and Community Environment administers the CDBG Program
addressing housing and affordable housing programs. The Department of Community Services
oversees the annual allocation of General Fund Human Service contracts, works with the Human
Relations Commission on needs assessments, diversity issues, and provides staff liaisons to
Citywide volunteer task forces (Le. Child Care, Mediation, and Youth Council). The Housing
Authority of the County of Santa Clara (HACSC) administers the local Section 8 housing subsidy
program, and has provided bond financing for the acquisition of affordable housing projects
within the City.
The majority of housing and human service strategies will be accomplished by supporting local
non-profit organizations that provide programs and services for lower income residents. The City
will cooperate and work with these groups to ensure the development of affordable housing
and appropriate services within the community.
As part of the development process of the Consolidated Plan, the staffs of the CDBG entitlement
cities of Palo Alto, Sunnyvale, Gilroy, Mountain View, Cupertino, Milpitas, San Jose, Santa Clara
and the County of Santa Clara met a number of times to discuss data resources and to
coordinate requests for information to both public and private county -wide agencies.
Palo Alto City staff actively participates in the Santa Clara County Collaborative on Housing and
Homelessness. This Countywide group brings together governmental agencies, homeless service
and shelter providers, homeless persons, housing advocates, and affordable housing developers
to develop coordinated approaches to homeless issues. This increases cooperation and
coordination among the participants in developing more effective programs to address the
problem of homelessness and lack of affordable housing in Santa Clara County. These efforts
eire expected to continue.
1.3 Housing and Community Development Needs
As in 2000, a top issue of community concern has been the increasing gap between housing
costs and low-and moderate-income wages. This gap not only creates a need for more
affordable housing (particularly rental housing), but also threatens individuals and families at the
lowest income levels with homelessness. Extremely high housing costs also impact the ability of
low-and moderate-income households to pay for other necessities (health care, child care,
transportation, etc.) and affect access to housing choices in a tight housing market.
A second priority need continues to be preventing homelessness and moving the homeless to
self-sufficiency, with permanent housing, life skills for self-sufficiency, and employment skills.
Homelessness is both a local and regional issue with which Palo Alto and its neighbors in Santa
Clara and San Mateo counties have grappled for years. Federal funding for homeless facilities
and services emphasizes two principles: 1) providing a continuum of care to move homeless
individuals and families from shelter to permanent housing and eventual self-sufficiency; and 2)
ending chronic homeless ness within ten years.
Other important housing needs are: 1) to preserve the limited supply of affordable, subsidized
rental housing in Palo Alto potentially at-risk of converting to market rate housing (400 units), and
2) conserving the condition of pre-1970 housing (owner and rental) that shelter low-and
moderate-households, estimated at nearly 2,700 units.
City of Palo Alto 5 2005 -2010 Consolidated Plan
. Introduction
Since 2000, economic opportunities for Palo Alto's low-and moderate-income residents have
also become a high concern. Santa Clara County has experienced a loss of approximately
200,000 jobs in technology industries and businesses that serve those industries since the
adoption of the 2000 Consolidated Plan. Although the region is experiencing a slow economic
recovery, much of the growth in employment is in industries withjobs that pay low-to moderate-
income wages.
The City has also determined that improvements to existing facilities that provide services to low-
and moderate-income residents, public services for special needs individuals, and accessibility
improvements for persons with disabilities remain ongoing priority needs. The priority needs
include: 1) improving opportunities for all residents to live independently and self-sufficiently, 2)
greater access to public areas (streets, sidewalks, buildings, etc.), and 3) ongoing support for
individuals and families with poverty level to extremely low incomes (zero to 50 percent of
median income).
1.4 Five-Year Strategy
The provision of affordable rental units continues to be the most significant need in Palo Alto.
The City will continue to use CDBG and other available funds to pursue the creation and
preservation of all types of affordable housing. Two critical housing needs are identified in the
Consolidated Plan: the alleviation of the high cost of housing for lower income renter
households; and the provision of affordable housing for the very low-income, homeless and
persons with special needs.
Over the next five years, the City of Palo Alto will pursue the following primary goals:
• Increase the number of permanently affordable rental units;
• Support the rehabilitation needs of non-profit owned multi-family rental housing projects
that are affordable to lower income households or individuals;
• Provide additional shelter beds and services for homeless families and individuals;
• Support public facility improvements (accessibility, modernization, rehabilitation, etc.) for
organizations that provide services to low-income or special needs populations;
• Improve the community quality of life by supporting human service organizations that
provide a safety net of services to low-income, homeless and other at-risk popUlations,
such as persons with disabilities and the elderly; and
• Take. affirmative measures to ensure equal opportunity in housing for all, regardless of
race, color, religion, national origin, sex, familial status and disability.
Specific goals contained in Chapter 4, Five-Year strategy, are:
• Increase the supply of affordable rental housing.
• Preserve the supply of affordable rental housing at immediate risk of conversion to
market-rate housing.
• Conserve the condition of existing affordable rental housing.
• Continue the below market rate (BMR) program.
• Continue to participate in the mortgage credit certificate program.
• Provide for rehabilitation loans to very low-income single -family homeowners in
emergency or crisis situations only.
• Provide assistance and supportive services to low and very-low-income Palo Alto
residents to keep them from becoming homeless.
City of Palo Alto 6 2005 -2010 Consolidated Plan
Introduction
• Continue to support an indoor facility for the provision of supportive services with the
potential of a housing component.
• Continue to support the operating (and/or rehabilitation) costs of shelters and transitional
housing programs that serve the Palo Alto area.
• . Continue to support mental health outreach and other supportive services for the
homeless.
• Continue to cooperate on countywide approaches to the issues of homelessness.
• Support the activities of area non-profit organizations that provide transitional housing
and supportive services to the homeless.
• Continue to support the shelter plus care program in Palo Alto and increase the units
available in the program to include families with children.
• Continue to provide accessible transportation services.
• Continue to provide services to prevent homelessness.
• Continue to support food and meal programs.
• Promote a vital system of community-based human services through facilities to house
those services.
The City's proposed 2005-2006 Annual Action Plan activities support and promote the
accomplishment of the stated goals and objectives.
1.5 2005 -2006 Action Plan
1.5.1 Resources Available to the City
Palo Alto has identified a number of local, state, federal, and private resources to implement
Consolidated Plan activities during the 2005 -2006 program year. The major funding sources are
described below.
Community Development Block Grant Program
The City receives CDBG funds as an entitlement grant through the U.S. Department of Housing
and Urban Development (HUD). In fiscal year 2005 -2006, the City will allocate $915,639 in
CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. The
amount of the City's CDBG entitlement grant from HUD is estimated to be $779,281, estimated
program income is $45,000, and reallocated funds total $62,570. Program income is income
directly generated from the use of CDBG funds that is returned to the CDBG program and
reallocated to new activities.
Estimated FY 2005/06 CDBG Entitlement Grant
Program Income:
Estimated Program Income 2005/06 (HIP)
Estimated Program Income 2005/06 (P AHC)
Excess Prior Year Program Income
Reallocated Funds:
Miscellaneous Reallocations
TOTAL ALLOCATION
City of Palo Alto 7
$779,281
35,000
10,000
28,788
62,570
$915,639
2005 -2010 Consolidated Plan
Introduction
City Affordable Housing Fund
The Affordable Housing Fund is a local housing trust fund established by the City Council to
provide financial assistance for the development, acquisition, and rehabilitation of housing
affordable to extremely low, very low, low and moderate-income households. The Affordable
Housing Fund is the umbrella name for five distinct sub-funds for affordable housing. The two
primary local housing trust funds were formerly known as the Housing Reserve Fund, but on
October 27, 2003, the City Council approved new guidelines for all of the City's affordable
housing funds including the ones composed of federal housing monies; the funds were renamed
as part of those changes. The Affordable Housing Fund is now composed of:
Commercial Housing Fund -this fund is used primarily to increase the number of new affordable
housing units for Palo Alto's work force. It is funded with mitigation fees required from developers
of commercial and industrial projects. As of December 31, 2004, the Commercial Fund had an
available balance of approximately $1,100,000.
Residential Housing Fund -this fund can be used for acquisition, rehabilitation, new construction,
and predevelopment of low-income housing. It is funded with mitigation fees provided under
Palo Alto's Below Market Rate (BMR) housing program from residential developers, and money
from other miscellaneous sources, such as proceeds from the sale or lease of City property. It is
also used to pay for administration and consultant contracts necessary to carry out the BMR
program. As of December 31, 2004, the Residential Fund had an available balance of
approximately $1,200,000.
Housing Trust of Santa Clara County (HTSCC) -The HTSCC is a public/private initiative, dedicated
to creating more affordable housing in santa Clara County, using a revolving loan fund and
grant-making program to complement and leverage other housing resources. The City of Palo
Alto contributed $500,000 toward the initial $20 million investment capitalization. The Palo Alto
Housing Corporation received a $400,000 award of funds for the Oak Court family rental project.
In addition, the Opportunity Center received $500,000 from the HTSCC. The Housing Trust
received a $2,000,000 award in February 2004 from the State, in the same competition as the
City, under the State's Proposition 46 Housing Trust Fund Grant Program.
Multifamily Housing Program (MHP) -The Multifamily Housing Program (MHP) is a relatively new
source of funding for affordable housing as a result of the passage of Proposition 46 in
November 2002. The purpose of this program is to provide low-interest loans to developers of
affordable housing. The MHP General funds may be used for multifamily rental and transitional
housing projects involving new construction, rehabilitation, or conversion of nonresidential
structures. MHP Supportive Housing funds may be used for multifamily rental housing projects
involving new construction, rehabilitation, acquisition and rehabilitation, or conversion of
nonresidential structures for permanent rental housing only. Palo Alto Housing Corporation and
applied for and received MHP funds in the amount of $4,555,064 in the first round of funding. In
addition, Community Working Group/Housing Authority of Santa Clara County (Opportunity
Center) applied for and received funds in the amount of $7.5 million in February 2004.
Multifamily Housing Program (MHP) Local Housing Trust Funds -Another component of
Proposition 46, the housing bond approved by voters in November 2002 is funding for new and
existing local housing trust funds. A local housing trust fund is a public or private partnership
created to receive on-going revenues for affordable housing production. Local revenues
supporting the fund can include commercial impact fees, ongoing fundraising, or local taxes
such as Transient Occupancy Tax, as well as local government's general funds. The City of Palo
Alto applied for a grant from the State in November 2003. The State announced in February
City of Palo Alto 8 2005 -2010 Consolidated Plan
Introduction
2004 that Palo Alto was receiving an award of $1,000,000. The City's $1,000,00 award will be
used to help subsidize a future rental housing project, either new construction or acquisition and
rehabilitation, to be determined in the next two years by the City Council.
Santa Clara County Affordable Housing Fund (AHF) -The Santa Clara County Board of
Supervisors created the Office of Affordable Housing in July 2002 and established a set-aside of
$18.6 million for projects. One of the objectives for this fund is to leverage funding to affordable
housing projects. The Community Working Group (Opportunity Center) received one of five
awards from the available allocation of $7.7 million in the first round of funding. They received a
$2 million award in September 2003.
1.5.2 Projects and Activities to Be Funded in 2005 -2006
Housing Activities
The City of Palo Alto's Consolidated Plan and Housing Element both emphasize the great need.
for affordable housing for low and very low-income households in Palo Alto. While all types of
housing are needed in the City, the Consolidated Plan focuses on the creation and preservation
of rental housing with an emphasis on housing for very low-and low-income persons especially
those who are homeless, at-risk of becoming homeless, those with special needs, and families
with children.
The Consolidated Plan proposes· a five-year strategy to develop 125 newly constructed rental
units over the 2005-2010 planning period. The 125 units would be affordable to households in the
very low-or low-income categories and would meet a portion of the housing production goals
mandated by the Association of Bay Area Governments (ABAG). For this fiscal year, the Palo
Alto City Council adopted the creation of new affordable rental housing as one of their top five
priorities. Proposed activities and funding levels are:
• CDBG Housing Development Fund .. $401,816. The City is proposing to acquire an
affordable housing site, using a combination of City general funds as well as CDBG funds.
• Palo Alto Senior Housing, Inc. (Stevenson House) -$163,248. Stevenson House is a 120-
unit residential facility for low-income seniors located at 455 East Charleston Road in Palo
Alto.
• Community Housing, Inc. (Lytton Gardens) -$86,575. Community Housing, Inc. proposes
to renovate 27 bedrooms in its skilled nursing facility.
• Emergency Housing Consortium (Our House youth Program) -$75,000. EHC is proposing
an expansion that will include drop-in services, 10 beds of emergency shelter, 12 beds of
transitional housing, and five apartments for City Year / Americorps participants.
• Economic and Social Opportunities -Housing and Energy Services Program -$60,000.
ESO proposes to assist a minimum of 26 low-income Palo Alto individuals with home
improvement services.
City of Palo Alto 9 2005 -2010 Consolidated Plan
Introduction
Public Service Activities
CDBG public service funds will be targeted to the following programs in fiscal year 2005/06:
• $ 8,000 to Emergency Housing Consortium -Emergency Shelter
• $23,000 to Palo Alto Housing Corporation -SRO Tenant Counseling Program
• $21,392 to InnYision/Clara-Mateo Alliance -Family Housing Program
• $21,000 to InnYision/Clara-Mateo Alliance -Adult Singles/Couples Housing Program
• $19,000 to Shelter Network -Mid-Peninsula Housing Program
• $24,000 to InnYision/Urban Ministry -Drop-In Center
• $ 5;000 to Mid-Peninsula Alano Club -MPAC Operations
• $ 6,000 to Catholic Charities -Long-Term Care Ombudsman Program
Homeless and Transitional Services
The City funds services for persons in the Palo Alto community who are very low-income,
homeless, or at-risk of becoming homeless, are provided with supplemental funding from the
City of Palo Alto either with CDBG or HSRAP funding. The goal of all the services listed is to
prevent homelessness, help move people out of homelessness and to reduce the number of
persons below the poverty line. Proposed service providers to be funded include:
• Alliance for Community Care
• City of Palo Alto Seasonal Jobs Program
• Clara-Mateo Alliance Shelter
• Community Technology Alliance
• Emergency Housing Consortium
• Shelter Network -Mid-Peninsula Housing Program
• La Comida de California
• Mayfield Community Clinic
• Palo Alto Housing Corporation -SRO Hotel Tenant Counseling
• Second Harvest Food Bank
• Support Network for Battered Women
• Urban Ministry of Palo Alto/lnnYision
• Shelter Plus Care (S + C)
• The Barker Hotel
• Alma Place
• Haven Family House
• First Step for Families
City of Palo Alto 10 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Chapter 2
Coordinating and Managing the Process
2.1 Institutional Structure
The affordable housing, community development and human service delivery system in the City
of Palo Alto is comprised of a number of components that complement each other.
2.1.1 Public Institutions
The City's Department of Planning and Community Environment administers the CDBG Program
addressing housing and affordable housing programs, as well as the 1998-2010 Comprehensive
Plan adopted by the City Council. The Department of Community Services oversees the annual
allocation of General Fund Human Service contracts; works. with the Human Relations
Commission on needs assessments, diversity issues, and provides staff liaisons to Citywide
volunteer task forces (i.e. Child Care, Mediation, and youth Council). The Housing Authority of
the County of Santa Clara (HACSC) administers the local Section 8 housing subsidy program,
and has provided bond financing for the acquisition of affordable housing projects within the
City.
2.1.2 Non~Profit Organizations
The majority of housing and human service strategies will be accomplished by supporting local
non-profit organizations that provide programs and services for lower income residents. The City
will cooperate and work with these groups to ensure the development of affordable housing
and appropriate services within the community.
2.1.3 Private
The City will work with private for-profit industry, particularly financial and development groups,
to encourage housing and economic development opportunities ..
The major problems and gaps in the delivery of affordable housing and social services include:
1) limited funding and long waiting lists, 2) inconsistency in annual funding sources and amounts,
3) increasingly stringent federal regulations, and 4) a fragmented social service system that
responds to a specialized "problem" rather than the needs of the whole person or family . To help
address some of these problems, the City convenes "Human Service Provider Network" meetings
semi-annually with local non-profit agencies to facilitate collaboration and to discuss ideas for
sharing services and responding to declines in funding .
. The City of Palo Alto works with the County of Santa Clara to secure mortgage credit
certificates for first time homebuyers as well as bond financing and refunding of tax-free
mortgage revenue bonds for rental housing. Since most support service agencies are County-
based, the City cooperates with the other jurisdictions to insure that there is no duplication of
services and that there is as efficient a delivery system as possible. The City continues to
cooperate with the County and the HACSC on their applications for funding of various
programs, as well as coordinating the delivery of social services throughout the community.
City of Palo Alto 11 2005 -2010 Consolidated Plan
Housing and Community Development Needs
An on-going partnership continues with the northern Santa Clara County cities. The
development of the Analysis of Impediments to Fair Housing Choice (AI) and the information in
the Countywide Fair Housing Study of 2003 was a catalyst for further actions that resulted in the
development of a specific Request for Proposals for Fair Housing Services entered into jointly by
the cities of Palo Alto, Mountain View, and Sunnyvale. This type of collaboration was the first of
its type between the northern regional cities of Sallta Clara County. The goal was to obtain
expanded services for each city's residents at a cost-effective rate. Staff worked on all aspects
of the criteria development. interview and ranking process and the final contract negotiations.
Outreach and public information about fair housing has significantly expanded as a result of the
competitive process and joint contract. In addition, staff organized a focus group of
countywide participants to determine the composition and mission of a Countywide Fair
Housing Task Force that was a recommended action item in the Countywide Fair Housing Study
and included in the City's AI.
. The City does not intend to take any actions to significantly change the institutional structure
during the five-year Consolidated Plan period. The City coordinates with nonprofit organizations
that focus on specialized services, which benefit Palo Alto residents, such as Project Sentinel for
fair housing education and counseling. As discussed above, .the City coordinates its activities
with other' public agencies through a countywide collaborative and with local/regional
nonprofit organizations in the delivery of public services and facilities for special needs groups.
This collaborative approach helps address gaps in services, although the primary barrier to
addressing gaps in service is the lack of adequate funding to meet 100 percent of needs
described in this document.
,
2.2 Coordination
As part of the development process of the Consolidated Plan, the staffs of the CDBG entitlement
cities of Palo Alto, Sunnyvale, Gilroy, Mountain View, Cupertino, Milpitas, San Jose, Santa Clara,
and the County of Santa Clara met a number of times to discuss data resources and to
coordinate requests for information to both public and private countywide agencies.
As the lead agency for implementing the Consolidated Plan, the City's Planning and Community
Environment Department coordinates the delivery of programs and services through the
following methods:
1. The City issues a notice of funding availability every two years to nonprofit community
organizations to accept funding requests for projects, programs, and services that
address the City's highest priority community needs.
2. The City participates in quarterly meetings with housing and community development
program representatives from each of the cities in Santa Clara County and from the
County. These meetings are intended to share information about federal program
implementation issues, to coordinate funding decisions for regional programs operated
by nonprofit organizations, and to coordinate relations with HUD.
3. The City participates, through the countywide Continuum of Care, in a coordinated
regional approach to identifying and addressing homeless needs.
4. The City collaborates with the Cities of Palo Alto, Sunnyvale, and Mountain View on
programs serving the northern section of Santa Clara County, such as a joint Request for
Proposals and contracting process for Tri-Cities Fair Housing Services.
, City of Palo Alto 12 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Palo Alto City staff actively participates in the Santa Clara County Collaborative on Housing and
Homelessness. This Countywide group brings together governmental agencies, homeless service
and shelter providers,. homeless persons, housing advocates, and affordable housing developers
to develop coordinated approaches to homeless issues. This increases cooperation and
coordination among the participants in developing more effective programs to address the
problem of homelessness and lack of affordable housing in Santa Clara County. These efforts
are expected to continue.
City staff has also coordinated meetings with the HACSC to promote greater participation in
Section 8 subsidies by Palo Alto residents. These efforts have translated into permanent
affordable housing in Palo Alto for previously homeless individuals through the Shelter Plus Care
Program. These efforts will continue as needed. A minimum of annual meetings with the HACSC
will also be coordinated to continue discussion of issues of mutual importance and concern.
The CDBG entitlement cities (Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino, . .
Gilroy, Milpitas, SanJose), and the Urban County of Santa Clara continue to meet on a regular
schedule to discuss issues of mutual concern and to share information and strategies for
addressing affordable housing, homelessness, fair housing, and other issues of common concern.
The meetings have helped the participants better understand the County and nonprofit social
service structure within the County, and provide input into the development of the new Santa
Clara County Office of Affordable Housing and its operations. The City of Palo Alto continues to
collaborate with neighboring jurisdictions in both Santa Clara and San Mateo County on issues
relating to homelessness in northern Santa Clara County and southern San Mateo County.
The Quality Housing and Work Responsibility Act of 1998 requires public housing authorities
(PHA's) to develop and implement five-year plans that describe their long range goals and a
strategy for achieving the identified goals. These plans provide details about the PHA's
operations, program participants, programs, and services. The PHA is required to ensure that
their plan is consistent with any applicable Consolidated Plans for jurisdictions in which the PHA is
located: This new requirement allows for some collaborative discussions on the role of the Santa
Clara County Housing Authority in meeting the housing needs of low-income persons in Palo
Alto. To ensure a coordinated approach to the City's human service funding efforts, CDBG and
Human Services staff meet to review and discuss applications received through both the CDBG
and HSRAP processes. Additionally, a member of the Human Relations Commission serves on
the CDBG Citizens Advisory Committee to avoid duplication of effort and to assure collaboration
within Palo Alto.
2.3 Monitoring
The City requires subrecipients of CDBG funds to submit semi-annual and annual performance
reports outlining the extent to which program goals have been achieved, and the number of
beneficiaries who have been served. Program performance is measured against the specific
program objectives outlined in the contract scope of services. Additionally, City staff will monitor
each subrecipient, as necessary; to insure compliance with all regulations governing their
administrative, financial, and programmatic operations, and to make sure the subrecipients
achieve their performance objectives within the prescribed schedule and budget.
The City will continue to monitor closely the activities carried out to further the goals of the
Consolidated Plan. For all CDBO-funded activities, a Consolidated Annual Perfonnance and
Evaluation Report (CAPER) will be completed in accordance with federal requirements detailing
the dollars expended, the beneficiaries served, and the program goals achieved. Additionally,
City staff will monitor each funding subrecipient to ensure compliance with all regulations
City of Palo Alto 13 2005 -2010 Consolidated Plan
Housing and Community Development Needs
governing their administrative, financial, and programmatic operations; and to ensure they
achieve their perforinance objectives within schedule and budget.
City of Palo Alto 14 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Chapter 3
Housing and Community Development Needs
3.1 Population and Household Characteristics
The characteristics of Palo Alto's population and households influence the City's housing needs,
based on family status, age, income, and other factors. This section describes relevant
population and household characteristics and their relation to potential housing needs. This
section includes a discussion of segments of the population that have special housing needs as
defined by the U.S. Department of Housing and Urban Development (HUD) for the purpose of
the Consolidated Plan.
3.1.1 Areas of Ethnic and Low/Moderate Income Concentration
Racial/Ethnic Concentrations
The importance of examining the racial and ethnic make-up of a community, and locations in
which minority households are concentrated, is to ensure that the expenditure of federal funds
through the Consolidated Plan does not overlook minority areas.
According to estimates from the California Department of Finance, the population of Palo Alto
in January 2004 was 60,200, compared to 58,598 reported in the 2000 Census. The 2000 Census
reported that there were 25,216 households in the City, of which 14,593 were family households.
With the City's population growth has come an increase in the diversity of its residents. This trend
follows county, state, and national trends. Race and ethnicity have implications for housing
need because household size,
Table 3-' composition, and income, and
residential preferences, vary by race Race and Ethnicity by Person and Household
and ethnicity. (2000)
Persons
In California, no one ethnic group
holds a majority. In Palo Alto,
however, the non-Hispanic White
population is still the predominant
racial/ethnic group. As shown in Table
3-1, the population in Palo Alto is
comprised of 72.8 percent non-
Hispanic White persons. The Asian
White
Hispanic
Black
Asian/PI
Other
Total
Palo Alto
72.8%
4.6%
2.0%
17.3%
3.3%
100.0%
population is the second largest Source: 2000 U.S. Census
racial/ethnic group in the City (17.3
Santa
Clara
County
44.0%
24.0%
2.5%
25.6%
3.7%
100.0%
Households
Santa
Clara
Palo Alto County
77.9% 56.0%
3.3% 15.9%
2.1% 2.8%
14.5% 22.4%'
1.8% 3.0%
100.0% 100.0%
percent). Black, Hispanic, and other racial/ethnic groups constituted smaller proportions of the
population.
The average household size for Palo Alto was 2.30 in 2000. However, the average household size
was 2.72 for Hispanics and 2.70, for Asians, while it was 2.48 for non-Hispanic Whites. The
racial/ethnic composition of households indicates that 77.9 percent of households in Palo Alto
City of Palo Alto 15 2005 -2010 Consolidated Plan
"
Housing and Community Development Needs
3.1.4 Income Distribution
Based on the Palo Alto income definitions specified above, approximately 16 percent of the
City's total households in 2000 were within Extremely Low Income and Very Low Income levels,
and 6.9 percent were within the Low Income level (Table 3-3). In Palo Alto, lower income
households comprised 22.9 percent of all households.
Table 3-3
Household Income by Race/Ethriicity (2000)
% Extremely Low
and
Very Low % Middle/
Total % ofTotol Incomes % Low Income Upper Incomes
Households Households Households (0-50%MFI) (51-BO% MFI) (>BO%MFI)
White 19,750 78.1% 16.0% 6.9% 77.0%
Hispanic 863 3.4% 35.3% 6.2% 58.4%
Black 550 2.1% 31.2% 14.5% 54.1%
Asian/PI 3,699 14.6% 18.8% 6.7% 74.3%
All Households 25,271 100.0% 17.5% 6.8% 75.5%
Source: HUD CHAS Data Book, based on 2000 U.S. Census.
The proportion of households with Low Income or less was significantly higher among Hispanic
(41.5 percent) households than for other households (Table 3-4). Between 1990 and 2000, all
households for which data were available experienced an increase in the proportion of lower
income households, except for Black households, which experienced a substantial decrease.
The largest increase iti lower income households was by Hispanic households.
Figure 3-2 depicts the . Table 3-4
concentrations of low-and Lower-Income Households by Race/Ethnicity
moderate-income households
based on HUD's Community
Development Block Grant (CDBG)
program criteria. The CDBG
program defines income
concentration as any block group
with 51 percent or more of the
population earning incomes less
than 80 percent of the area MFl.l
On the Census tract level, there
Household
White
Hispanic
Black
Asian/Pacific Islander
Total Households
were four tracts in the northwestern N/A-not available
(1990-2000)
%01 Lower %01 Lower
Income Income
Households Households
2000 1990
22.9% 20.1%
41.5% 32.6%
27.6% 41.6%
25.6% N/A
24.4% 21.7%
portion of Palo Alto that had a Source: HUD CHAS Data, 1993 and 2003
concentration of lower income households.
1 Exceptions to the general rule apply in communities that do not have any census tract block groups
containing 51 percent or more low and moderate-income households.
City of Palo Alto 18 2005 -2010 Consolidated Plan
Housing and Community Development Needs
3.2 Current Housing Needs
Current housing 'need refers to household with housing problems, which vary according to
household type, income, and tenure. The Comprehensive Housing Affordability Strategy (CHAS),
developed by the U.S. Census Bureau for HUD provides detailed information on housing needs
by income level for different types of households. Detailed CHAS data based on the 2000
Census is included in Table 3-5. As defined by HUD, housing problems include: 1) units with
physical defects (lacking complete kitchen or bathroom); 2) overcrowded conditions (housing
units with more than one person per room); 3) housing cost burden, including utilities, exceeding
30 percent of gross income; or 4) severe housing cost burden, including utilities, exceeding 50
percent of gross income.
This section describes current housing needs for all low and moderate-income households. The
following section provides more detail on the special housing needs of particular population
groups.
Some highlights include the following:
• In general, renter households had a higher level of housing problems (42.9 percent) than
owner households (31.7 percent). Owners, as a group, had fewer problems. Among all
owners, 67.1 percent of extremely low-income, 45.6 percent of very low-income, and
33.2 percent of low-income OWner households experienced housing problems. Cost
burden was a major component of these problems.
• Large family households had the highest level of housing problems regardless of income
level. All of the very low-income and low-income large family renters experienced
housing problems, as did 72.1 percent of extremely low-income large' family renters. All
of the extremely low-income and very low-income large family owners also experienced
housing problems, as did 81.5 percent of low-income large family owners: The primary
housing problem was cost burden.
• A significant proportion of small family households also experienced housing problems ..
Approximately 83.6 percent of extremely low-income, 78.3 percent of very low-income,
and 74.5 percent of low-income small family renter households had housing problems.
Cost burden was the primary problem. Among OWner households, 71.9 percent of
extremely low-income and 72.9 percent of very low-income households had housing
problems.
• A high percentage of elderly households, primarily renters, suffered housing problems.
Approximately 59.8 of all elderly renters (inCluding 66.4 percent of extremely low-income
and 77 percent of very low-income elderly renters) suffered from a housing problem.
Cost burden was a major component of housing problems for elderly renters. Elderly
owners generally experienced fewer housing problems (18.3 percent).
3.2.1 Disproportionate Housing Need
Disproportionate need refers to any need that is more than 10 percentage points above the
need demonstrated for all households, based On the CHAS table for the jurisdiction. For
example, 63.8 percent of large renter families (a subset of renter households) experienced
housing problems compared to 42.9 percent of all renter households or 31.7 percent of all
City of Palo Alto 20 2005 -2010 Consolidated Plan
Housing and Community Development Needs
households. Thus, large families that are renting have a disproportionate need for housing ."
assistance.
City of Palo Alto 21 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Table 3-5
- ---- -- - - - - ---- ---
Name of Jurisdiction: Source of Data: Data Current as of:
Palo Alto. California CHAS Data Book 2000
Renters Owners
Elderly Large Elderly Large
1&2 Small Related All 1&2 Small Related All
member Related (5 or Other Total Member Related (5 or Other Total Total
Household by Type, Income, & households (2 to 4) more) Households Renters households (2 to 4) more) Households Owners Households
Housing Problem (A) (B) (C) (D) (E) (F) (G) (H) (I) .(Jt (L)
1. Household Income <=50% -
MFI 1.181 589 85 1.095 2,950 924 307 29 223 1,483 4,433
2. Household Income <=30%
MFI 877 335 53 710 1;975 487 178 25 124 814 2,789
3. % vvith any housing problems 66.4 83.6 71.7 75.4 72.7 58.1 71.9 100.0 88.7 67.1 71.0
4. % Cost Burden >30% 62.4 80.6 52.8 73.9 69.4 58.1 57.9 100.0 88.7 64.0 67.8
5. % Cost Burden >50% 42.0 70.1 45.3 59.9 53.3 46.2 55.6 40.0 72.6 52.1 52.9
6. Household Income >30% to
<=50%MFI 304 254 32 385 975 437 129 4 99 669 1,644
7. % with any housin.gJ2l'.oblems 77.0 78.3 100.0 97.4 86.2 33.9 72.9 100.0 59.6 45.6 69.6
8. % Cost Burden >30% 77.0 64.6 75.0 90.9 79.2 33.9 53.5 100.0 55.6 41.3 63.7
9. % Cost Burden >50% 42.8 45.3 12.5 55.8 47.6 16.9 53.5 100.0 35.4 27.2 39.3
10. Household Income >50 to
<=80%MFI 147 294 24 600 1,065 415 85 54 120 674 1,739
11. % with any housing problems 76.9 74.5 100.0 67.5 71.5 16.9 52.9 81.5 54.2 33.2 56~6
12.% Cost Burden >30% 76.9 69.4 58.3 58.3 63.9 16.9 52.9 81.5 54.2 33.2 52
13. % Cost Burden >50% 43.5 21.8 0.0 20.0 23.3 12.0 52.9 55.6 37.5 25.2 24
14. Household Income >80% MFI 608 2,470 195 3,604 6,877 3,087 6,510 1.055 1,570 12,222 19,099
15. % with any housing problems 37.5 25.3 51.3 19.0 23.8 9.9 20.2 22.3 25.5 18.5 20.4
16.% Cost Burden >30% 34.2 15.0 17.9 16.5 17.6 9.9 19.4 13.3 24.8 17.2 17.3
17. % Cost Burden >50% 4.1 1.0 0.0 1.0 1.2 3.2 4.0 2.4 8.3 4.2 3.1
18. Total Households 1,936 3,353 304 5,299 10,892 4,426 6,902 1.138 1.913 14,379 25.271
19. % vvith any housinQ problems 59.8 39.5 63.8 37.7 42.9 18.3 22.9 27.1 33.1 23.2 31.7
20. % Cost Burden >30 56.9 30.1 33.2 34.3 37.0 18.3 21.4 18.7 32.4 21.7 28.3
21. % Cost Burden >50 30.3 13.1 9.2 15.0 17.0 10.1 6.9 6.1 15.7 9.0 12.4
Note: Data presented in this table is based on special tabulations from sample Census data. The number of households in each category usually deviates Slightly from
the 100% count due to the need to extrapolate sample data out to total households. Interpretations of this data should focus on the proportion of households in
. need of assistance rather than on precise numbers ..
Source: HUD Comprehensive Housing Affordability Strategy (CHAS) Databook, 2000.
City of Palo Alto 22 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Extremely Low Income Households
Compared to the percentage of all households in Palo Alto with a housing problem (20.4
percent), extremely low-income households experienced a disproportionate housing need. In
this income group, about 71 percent of all households had housing problems. Specifically, a
higher percentage of renter households (72.7 percent) had housing problems compared to
owners (67.1 percent). All household subgroups in this income category met the criteria for
disproportionate housing need.
Very Low Income Households
Approximately 45.6 percent of all very low-income households experienced one or more
housing problems. Thus, very low-income households also have a disproportionate need
·compared to the general population. Again, renters experienced a greater need compared to
owners, as 86.2 percent of renters experienced some type of housing problem, compared to
45.6 percent of owner households. Very low-income large family renter households had the
greatest level of need of all very low-income households, with 100 percent facing some type of
housing problem. Elderly owner households were the only household subgroup that did not
experience a disproportionate housing need.
Low Income Households
Approximately 56.6 percent all low-income households experienced housing problems. Low-
income renter households were more than twice as likely as owner households (71.2 percent to
33.2 percent) to experience housing problems, primarily cost burden. Large family renter
households experienced the highest percent of housing problems compared to other low-
income households (100 percent). As in the very low-income category, elderly owner
households were the only household subgroup that did not experience a disproportionate
housing need. .
3.2.2 Special Needs Housing
Palo Alto residents with "special needs" may have difficulty finding decent, affordable housing.
In Palo Alto, these special needs groups include seniors, disabled persons, female-headed
households, large households, persons with AIDS, and persons with alcohol and/or other drug
addictions.
This section provides a detailed discussion of these groups with special housing needs. The type
of housing required by these special needs groups vary. Some individuals can live in
conventional housing, but with modifications to meet their physical capabilities. Others may
need financial assistance in paying housing costs or maintaining their homes. Still· others may
require assistance with daily chores and self-care to stay in their homes.
Even with assistance,. some individuals require specialized housing due to their physical, health,
developmental, and/or mental condition. Licensed community care facilities can provide this
specialized housing for those who need a supervised environment with on-site support for daily
living. Table 3-6 provides an overview of licensed community care facilities in Palo Alto. Figure
3-3 depicts the locations of these facilities. There are 10 licensed' community care facilities in
Palo Alto, with a capacity of 633 beds. There are also facilities not licensed by the California
Department of SOcial Services that provide similar housing in the City, but the capacity of these
facilities is unknown.
City of Palo Alto 23 2005 -2010 Consolidated Plan
.'
Housing and Community Development Needs
Table 3-6
Licensed Community Care Facilities
Capacity Capacity by Type of Disability
Number of (number of beds
Type of Facility Facilities or persons) Mental Developmental
Group Home 1 6 0 0
Elderly Residential 7 562 0 0
Social Rehabilitation 1 12 0 0
Adult Day Care 1 53 0 53
Total 10 633 0 53
Notes:
1. The specialized care columns are not mutually exclusive, For example. a facility may have a
capacity of 10 beds. with 8 beds for developmentally disabled children arid 4 of the 10 beds are
designed to accommodate non-ambulatory children.
2. Group homes provide specialized treatment for persons under age 18.
3. Small family homes provide care to children in licensees' own homes. Small family residents are
usually children on probation. developmentally disabled children. children with other special
needs. and some foster children.
4. Elderly residential facilities provide care for persons age 60 and above.
5. Social rehabilitation facilities provide 24-hour non-medical care and supervision in a group setting to
adults recovering from mental illness who temporarily need assistance. guidance or counseling.
6. Adult day care facilities provide programs for frail elderly and developmentally disabled and/or
mentally disabled adults
Source: State of California Department of Social Services Community Care Licensing Division. 2003.
Seniors
Seniors are persons age 65 and over. Seniors are considered a special needs group. as they
tend to have more health problems than the population at large. These health problems may
make it more difficult for seniors to live in typical housing and t6 live independently. Seniors with
serious health problems may need to live in licensed community care facilities or similar facilities.
Also. low and moderate-income senior households are potentially in particular need for housing
assistance. Many seniors live on fixed incomes such as Social Security and pensions. Increases in
living expenses would make it more difficult for seniors to afford needed housing. Financially
strained senior homeowners may have to defer their home maintenance needs.
The 2000 Census counted 9.140 residents in Palo Alto age 65 and over. which represented
approximately 15.6 percent of the City population. The senior population increased by 5.8
percent from 1990. Countywide. the senior population is expected to increase by almost 90
percent between now and 2020, with the population of seniors over the age of 85 years
expected to almost double in size. These figures suggest there will be an even greater demand
for a range. of housing opportunities. such as independent living facilities. assisted housing or
congregate care facilities, group homes, and other living arrangements for seniors.
Approximately 4.9 percent of seniors living in the City had incomes below the poverty level in
1999 (450 seniors total). The majority of those persons (254) were elderly over the age of 75
years. Most of these elderly persons lived outside family households. While there were a very
small number of elderly persons living below the poverty level. it is important to note that many
elderly households in Palo Alto were still living on limited incomes. For example. data from the
HUD CHAS tables indicate that approximately 41.9 percent of all elderly households had
incomes that were classified as low-income or lower (see Table 3-5).
City of Palo Alto 24 2005 -2010 Consolidated Plan
-.
Housing and Community Development Needs
Approximately 69.7 percent of all elderly households live in owner-occupied housing units and
the remaining 30.3 percent are renters. While renter households represent less than one-third of
all elderly households, the percentage of low-income or lower households who are elderly and
rent is significant. Approximately 68.6 percent of all elderly renter households in 2000 were in
those income categories.
In regard to supportive living facilities for elderly, there are nursing care facilities as well as.non-
profit and for-profit residential care facilities in the City of Palo Alto. Lytton III provides skilled
nursing care for approximately 128 elderly persons. Lytton III is part of the Lytton Gardens
complex (Lytton I, II, III and Lytton Courtyard), which is the only development in Palo Alto that
provides a full range of living options for lower income elderly from independent living to assisted
living to skilled nursing care.
Frail Elderly. HUD requires that Consolidated Plans discuss the housing needs of the frail elderly.
"Frail elderly," for the purpose of this analysis, is defined as seniors with one or more conditions
that affect major life functions, such as their ability to live independently ("go-outside-home"
disability) or care for themselves ("self-care" disability). The frail elderly face the same housing
issues as seniors in general, but require greater assistance for their housing needs due to their
condition.
The 2000 Census indicated that 32.6 percent of the elderly population in Palo Alto had a
disability. The Census counted 5,969 disabilities among residents in the City who are 65 years of
age or older (Table 3-2). Of these disabilities, 680 were self-care disabilities, and 1,484 were go-
outside-home disabilities. It should be noted that seniors may have more than one type of
disability; therefore, the number of disabilities do not necessarily correspond to the number of
seniors with disabilities.
Persons with Disabilities
Palo Alto is home to residents (other than seniors) with disabilities that prevent them from being
employed, restrict mobility, or make self-care difficult. Disabilities are defined as mental, physical
or health conditions that last over six months. In addition to sensory, physical, and mental.
disabilities, the 2000 Census tracked the following disabilities:
• Employment disability: A condition that restricts a person's choice of work and prevents
that person from working full-time.
• Go-outside-homedisability: A physical or mental condition that makes it difficult to go
outside the home alone.
• Self-care disability: A physical or mental condition that makes it difficult to take care of
one's personal. needs.
Persons with disabilities often face housing challenges due to their lower incomes and special
physical or developmental needs. According to 2000 Census figures, approximately 10.2
percent of persons with disabilities in Palo Alto age 21 to 64 had incomes below the poverty
level. This percentage is greater than the citywide poverty rate of 4.8 percent.
Access to affordable housing is critical to disabled persons who earn low incomes or rely on
government benefits as their primary source of income. Persons with self-care and mobility
limitations may require special housing design features, such as wider doors for wheel chairs,
holding bars, ramps, and special bathroom fixtures. Also, persons with disabilities may face
City of Palo Alto 26 2005 -2010 Consolidated Plan
Housing and Community Development Needs
discrimination in the housing market because of their need for wheelchairs, home modifications
to improve accessibility, or other accommodations. According to the City of Palo Alto's Analysis
of Impediments to Fair Housing (AI), the mos,t reported categories of discriminatory conditions in
both Palo Alto and Santa Clara County are discrimination based on familial status and disability.
The 2000 Census indicates that 3,698 residents of Palo Alto age 16 to 64 had a disability. Within
that age group, the Census tallied 6,062 disabilities (Table 3-7). Of these disabilities, there were
2,426 employment disabilities, defined as disabilities that interfere with a person's ability to work.
There were also 240 self-care disabilities and 1,066 go-outside-home disabilities. It should be
noted that some people may have more than one type of disability; therefore, the number of
disabilities do not necessarily correspond to the number of persons with disabilities.
Total disabilities tallied:
Table 3-7
Tvoes of Disabilir
Total disabilities tallied for people 16 to 64 years:
Sensory disability
Physical disability
Mental disability
Self-care disability
Go-outside-home disability
Employment disability
Total disabilities tallied for people 65 years and over:
Sensory disability
Physical disability
Mental disability
Self-care disability
Santa Clara
County Palo AHo
441,560 12,287
307,326 6,062 I
16,480 369
40,257 1,020 I
28,044 941 I
12,663 240
79,636 1,066
130,246 2,426
121,693 5,969
20,564 ' 985
39,508 1.989
18,128 831
12,897 680
30,596 1,484 Go-outside~hQl1le disabilitY' ---------
Source: 2000 U.S. Census
Persons with Mental Disabilities
According to the Santa Clara County Mental Health Department. mental health needs ,in the
area continue to exceed available support services. The Department estimates that 24,000
people in the County need case management services (social worker assistance to obtain basic
needs). yet only about 5,000 places currently exist in the inventory of services, resulting in an
unmet need of 19,000 case management places. Similarly, 29,000 people in the County need
mental health care, while only 19,000 people are able to be served. This leaves a gap of about
10,000 people needing services countywide.
Data specific to Palo Alto are not available. Palo' Alto's population in 2000 is 3.5 percent of the
County's. Based on this, it is estimated that there are 300 to 350 people with mental illnesses in
Palo Alto who need special services. The La Selva facility in Palo Alto, managed by the nonprofit
Alliance for Community Care, provides a residential treatment program and outpatient services
for people with mental illnesses. La Selva has a capacity to serve 12 patients. It also has a
City of Palo Alto 27 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Discovery Day Program, which is a psycho-educational treatment and social activity program
that assists clients in enhancing life management skills and achieving greater independence.
Persons with Developmental Disabilities
The San Andreas Center, a non-profit organization serving persons with developmental
disabilities, estimates that 3,100 develoPmentally disabled adults are over the age of 18, and 60
percent of them are living at home with their parents. Therefore, about 1,850 developmentally
disabled individuals in the County could potentially need some kind of housing. Based on Palo
Alto having 3.5 percent of the County's population, it is estimated that there are about 65 City
residents with developmental disabilities who may need housing. However,some of these
developmentally disabled adults may stay at home, so the potential need may not be as great.
However, housing availability is not the only issue associated with developmentally disabled
adults. The Housing Choices Coalition (HCC) estimated that there are 970 people in Santa Clara
County who now live in community residential facilities (Le., group homes). Of these residents,
about 300 people (30 percent) would choose more independent living, were it available. Many
of the developmentally disabled live on Social Security income with additional income from
work, family, or other sources. The coalition reports that it is not uncommon for a disabled adult
to earn less than $10,000, making it extremely difficult to find affordable housing, which would
allow for more independent living.
Female-Headed Households
Affordable housing is one of the more significant needs of female-headed households. Many
times, their limited household incomes constrain the ability of these households to "afford"
housing units. Consequently, these households may have to pay more than they can afford for
housing for themselves and their children. Or, they may have to rent a housing unit that is too
small for their needs, because it is the only type of housing they can afford. Other housing-
related needs that affect female-headed households include assistance with security deposits,
locating housing close to jobs, availability of affordable childcare services, and proximity to
transit services.
The 2000 U.S. Census reports that there were 1,220 female-headed households in Palo Alto.
These households represented 6.7 percent of all households in the City. Lower household
income is one of the more significant factors affecting single parent households. For example,
married couple families in Palo Alto reported a median family income of $101,537 annually for
1990 census purposes. However, for female-headed households, the annual median household
income was $58,625, or 57.7 percent of the median income of a married couple family. Limited
household income levels affect the ability of these households to locate affordable housing.
Large Households
Large households are defined as those with five or more members. Large households may be
considered a special needs group because the availability of adequately sized, affordable
housing units for such households is often limited. To save for necessities such as food, clothing
and medical care, low-and moderate-income large households may reside in units that are too
small, resulting in overcrowding. Furthermore, families with children, especially those who are
renters, may face discrimination or differential treatment in the housing market. As previously
noted, discrimination based on familial status is one of the most reported categories of
discrimination in Palo Alto.
City of Palo Alto 28 2005 -2010 Consolidated Plan
Housing and Community Development Needs
The 2000 Census reports 1,619 households with five or more members in Palo Alto, representing
6.4 percent of all households (Table 3-8). The comparable figure for the County in 2000 was 15.5
percent. Large owner-households were more prevalent (8.2 percent) than large renter,
households (4.0 percent). The special census tabulations for HUD further indicate that among the
large households in the City, approximately 34 percent experienced some form of housing
problems, which include overcrowding, cost burden, or substandard housing conditions. This
illustrates that Palo Alto has a need for affordable housing units with three or more bedrooms. To
provide affordable home ownership opportunities for low-income families, the City uses CDBG
funds, State Multifamily Housing Program funds, and local housing funds to assist in the
construction of family housing and provide first-time homebuyer assistance to qualified families.
Table 3-8
a.-ge ause a ra Ie L H h Id P fil
Special Need Group Households 1 Lower Incomel Housing Problems2
Number Percent Number Percent Number Percent
Large Households 1,619 6.4% 192 13.3% 502 34.0%
All Households 25,216 100.0% 6,172 24.4% 8,011 31.7%
Sources: 1) 2000 U,S. Census. 2) HUD CHAS, 2003.
Persons with HIV / AIDS
Persons with HIV / AIDS may face biases and misunderstanding about their illness that affect their
access in the housing market. Due to their illness, many persons with HIV / AIDS have lower
income levels and need housing assistance. According to the National Commission on AIDS, up
to half of all Americans with AIDS are either homeless or at imminent risk of becoming homeless,
due to their illness, lack of income or other resources, and weak support network.
According to September 2004 statistics from the California Department of Health Services, there
have been 3,548 residents in Santa Clara County recorded with AIDS. Of these, 1,554 residents
are currently alive. In addition, there have been 852-:-recorded cases of people with HIV in the
County. According to a May 2003 report prepared by the Santa Clara County Public Health
Department, approximately 18 percent of the AIDS cases recorded in the County were from the
North County area, which includes Palo Alto. Table 3-9 provides a breakdown of HIV / AIDS cases
in the County by location, based upon the 2003 report, which has the. most recent information
available regarding cases by location. Figure 3-4 illustrates the County regions utilized in the
report.
Approximately 1 percent of HIV / AIDS cases were homeless. According to the AIDS/HIV
Community Services Plan for Santa Clara County, 10-15 percent of the homeless population is
H IV-infected.
City of Palo Alto 29 2005 -2010 Consolidated Plan
Housing and Community Development Needs
percent of the adult male population, and the number of women with similar problems at 6
percent. Abusers of alcohol and other drugs have special housing needs during treatment and
recovery. Group quarters typically provide appropriate settings for treatment and recovery.
Affordable rental units provide housing during the transition to a responsible lifestyle.
In its Annual Report FY 2003, the Santa Clara County Department of Alcohol and Drug Services
indicated that there were 9,358 adult admissions to the County's substance abuse programs
from July 2002 to June 2003. In that same time period, there were 10,236 discharges from these
programs. These figures include duplicated admissions and discharges, so the actual number of
persons admitted or discharged is less, but the precise number is unknown. The median length
of stay for those treated in residential programs was 35 days, while it was 84 days for those
treated in outpatient programs. No data are available concerning the residences or housing
status of persons admitted or discharged.
3.3 New Construction Needs
The Association of Bay Area Governments (ABAG) has estimated that the City needs to provide
adequate housing sites to accommodate 1,397 units for the time period of 1999-20062, out of a
total of 230,743 units for the ABAG region. This represents approximately 0.6 percent of the total
regional housing need. After adjusting for the housing units already provided between 1999 and
2001, and for housing units either approved or under construction at the time the City's Housing
Element was prepared, the City revised the estimate to 781 units from 2001-2006, or 156 units per
year. Assuming that this amount is produced annually from 2004 to 2006, ond that the regional
housing need from 2007 to 2009 would be the annual average of the original 1999-2006 needs
allocation for Palo Alto as determined by ABAG, the City would be required to construct an
additional 870 units during the 2004-2009 time period. According to ABAG's Regional Housing
Need Determination, the City needs to accommodate 381 units for lower income households.
3.4 Housing Market Conditions
This section addresses characteristics of the housing supply in Palo Alto, including type, age,
condition, costs, and availability. The implications of these housing characteristics with respect
to housing programs are also examined.
3.4.1 Housing Characteristics
The 2000 Census reported 26,155 housing units in Palo Alto, representing an increase of 3.1
percent since 1990 (Table 3-10). This growth rate was less than half that of Santa Clara County
as a whole. The California Department of Finance estimated that there were 27,019 housing
units in Palo Alto in 2004 -an increase of 3.3 percent from the 2000 total.
2 Subsequent to the adoption of the ABAG plan, the California Legislature extended the time period
covered by that plan by one year. For the purpose of the Consolidated Plan analysis, the original
timeframe of 1999 -2006 is used.
City of Palo Alto 31 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Jurisdiction
Palo Alto
. Santa Clara County
Ta~le 3-10
Housing Growth
Housing Units
1990 2000 2004
25,359 26,155 27,019
540,240 579,329 600,707
Percent Change
1990-2000 2000-2004
3.1% 3.3%
7.2% 3.7%
Sources: 1990 and 2000 U.S. Census; 2004 California Dept. of Finance E-5a Report.
Housing Type
Single-family homes are the predominant housing type in Palo Alto. According to the California
Department of Finance estimates, single-family housing accounted for 61.3 percent of the
housing stock in the City (Table 3-11). This is a comparable proportion to that of single-family
homes in the County. Multiple-family housing represented 38.1 percent of the housing stock in
the City, which is a higher percentage than that for the County. The combined percentage of
multiple-family and mobile home housing in Palo Alto is greater than that for the County,
indicating a greatEfr diversity of the City's housing stock and a greater availability of affordable
housing to meet the needs of lower-income households.
Table 3-11
H T 2004 ouslng IVI pe-
Housing Type
Total Single Multiple Mobile
Jurisdiction Households Family Family home
Palo Alto 27,019 61.3% 38.1% 0.6%
Santa Clara County 600,707 63.0% 32.0% 3.2%
Source: 2004 California Dept. of Finance E-5a Report
Mobilehomes
While Table 3-11 shows that mobilehomes constitute a small percentage of the total housing
units in both Palo Alto and the County, they nevertheless are a significant source of affordable
housing in the region. Mobilehomes provide an affordable housing resource for thousands of
. households countywide. Table 3-12 lists the number of mobile home and RV parks in the County,
along with the total number of spaces.3
3 The California Department of Housing and Community Development licenses mobilehome and RV parks.
Table 3-10 shows the number of mobilehome and RV spaces, not mobilehomes. Mobilehomes not located
in a mobile home or RV parks are not included in the Department's licensing records.
City of Palo Alto 32 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Table 3-12
Mobile Home and RV Parks in Santa Clara County
# ofMHP #ofRV #of RV
Location #ofMHP Spaces Parks Spaces
Santa Clara Coun"I'L 105 18,106 13 1,189
Campbell 2 243 0 0
Gilroy 4 349 1 158
Los Gatos 2 138 0 0
Milpitas 4 566 0 0
Morgan Hill 7 816 5. 792
Mountain View 9 1,178 0 0
Polo Alto 1 104 0 0
San Jose 59 10,756 5 160
Saratoga 0 0 1 42
Sunnyvale 18 4,060 1 37
Note: No mobile home parks or RV parks were recorded in Cupertino, Los Altos, Los Altos
Hills, Monte Sereno, or the City of Santa Clara.
Source: California Department of Housing and Community Development, Code
Enforcement Division (November 2004)
Approximately 87 percent of mobilehome occupants in Santa Clara County own their homes.
Between 90 and 95 percent of mobilehome occupants rent spaces in mobile home parks.4 The
rising cost of mobilehome expenses and space rents over· the past decade has significantly
increased the housing cost burden of mobile home residents. At the time of the 2000 Census, the
median income for County mobilehome residents was approximately $55,000, about 75 percent
of median income for all households. The median income for seniors living in mobilehomes was
particularly low, about $38,500. The 2000 Census reported that about one-third (32 percent) of
mobilehome residents are non-seniors, including many families with children.
Housing Tenure and Vacancy
Tenure
The tenure of a community's housing stock (owner versus renter) influences several aspects of
the local housing market. Tenure preferences are primarily related to household income,
composition, and age of the householder. The stability of single-family residential
neighborhoods is influenced by tenure, with ownership housing evidencing a much lower
turnover rate than rental housing. Housing overpayment (cost burden), while faced by many
households regardless of tenure, is more prevalent among renters, because renters tend to have
significantly lower incomes than homeowners in relation to their housing costs.
Approximately 57.2 percent of the housing units in Palo Alto are owner-occupied (Table 3-13).
This reflects the greater proportion of single-family housing units in the City. The proportion of
renters in Palo Alto is greater than the proportion of multifamily units in the City, indicating that
some single-family units are used as rentals.
4 An exact percentage cannot be calculated because it is unknown exactly how many occupied RV
spaces were counted by the Census Bureau as mobilehomes.
City of Palo Alto 33 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Table 3-14
Median Home Prices (2003-2004)
Median Home Prices Percent
Location December 2004 December 2003 Change
Santa Clara County $574.750 $485.000 18.5%
Campbell $640.000 $515.000 24.3%
Cupertino $877.500 . $639.500 37.2%
Gilroy $651.000 $495.000 31.5%
Los Altos $1.485.000 $1.165.000 27.5%
Los Gatos $815.000 $811.250 0.5%
Milpitas $518.000 $455.000 13.8%
MorQan Hill $622.000 $530.000 17.4%
Mountain View $590.000 $480.000 22.9%
PaloAHo $812,500 $749,500 8.4%
San Jose $549.000 $465.000 18.1%
Santa Clara $572.250 $475.000 20.5%
Saratoga $1.000.000 $896.000 11.6%
Sunnyvale $590.000 $520.000 13.5%
Source: California Association of Realtors. January 2005.
The California Association of Realtors prepares a monthly Housing Affordability Index (HAl). The
HAl measures the percentage of households that can afford to purchase a median-priced
home. both in California and in select regions and counties. The November 2004 HAl for Santa
Clara County was 22 percent, a decrease from 27 percent in November 2003. This reflects the
upward trend in home sale prices relative to local incomes, and indicates that many households
would have problems owning a home. particularly low. and moderate-income households.
Rental Housing Cost
As previously stated. Palo Alto is a predominantly owner-occupied community. with
approximately 57 percent of the households being owners. Recent trends in home prices have
led to a number of people being priced out of the homeownership market. One consequence
has been a shift in tenure trends, with increasing number of people remaining in the rental
market, exacerbating the competition for scarce affordable housing units. In recent years, this
trend has been countered to some extent by lower interest rates. which has made
homeownership more affordable to some households by lowering the cost of financing home
purchases. However. this has not likely made homeownership more feasible for lower-income
households. since home purchase prices are high.
The Housing Authority of Santa Clara conducts a survey of average gross rental rates in cities
and communities in Santa Clara County. Table 3-15 shows the average rent by jurisdiction.
along with the 2000 Census median gross rent. Rents in Palo Alto generally exceed the Fair
Market Rent (FMR) established by HUD for the San Jose Metropolitan area (Table 3-16).
City of Palo Alto 35 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Housing Affordability
Housing affordability is dependent upon income and housing costs. Using updated income
guidelines; current housing affordability in terms of home ownership can be estimated for the
various income groups. According to the HUD income guidelines for 2004, the MFI in the San
Jose metropolitan area for a family of four persons is $105,500. Based upon this MFI, the
maximum income level for an Extremely Low Income household (0-30 percent MFI) with four
persons is $31,850. For a Very Low Income household (31-50 percent MFI), the maximum level is
$53,050, while for a Low Income household (51-80 Percent MFI) it is $84,900. It should be noted
that HUD income limits are adjusted according to family size. Therefore, income levels would be
different for a family of three or a family of six.
Assuming that the potential home buyer within each income group has sufficient credit, sufficient
down payment (10 percent), and maintains affordable housing expenses (Le. spends no greater
than 30 percent of their income on the mortgage, taxes andinsuranceJ, the maximum
affordable prices for homes within the City for a household of four are presented in Table 3-17.
Given the median home prices shown in Table 3-14, home ownership is beyond the reach of
virtually all extremely low-and very low-income households. Most low-income households may
only be able to afford condominium units, and may still require financial assistance. Similarly,
extremely low-income households cannot afford the median rents in the entire City and very
low-income households are confined to stUdio apartments.
Table 3-17
Affordable Housing Costs by Income
Monthly Property Maximum
Median Affordable Taxes, Affordable
Income Group Income Payment Insurance Home Price
Extremely Low (0-30% MFI) $31,850 $650 $189 $97,560
Very Low (31-50% MFI) $53,050 $1,082 $316 $162,630
Low (51-80% MFI) $84,900 $1,732 $504 $260,190
Note: Calculation of affordable mortgage and home price based on a 7% Interest rate, 10% down
payment, and Area Median Family Income of $105,500.
Sources: HUD Income Levels, 2004; www.ntmortgage101.com
3.4.3 Housing Condition
Age of Housing Stock
The age of housing is commonly used by state and federal housing programs as a factor to
estimate rehabilitation needs in communities. Typically, most homes begin to require major
repairs or have significant rehabilitation needs at 30 or 40 years of age. Approximately 73.7
percent of the City's housing stock is over 30 years old, indicating the potential need for
rehabilitation and continued maintenance for a significant portion of the City's housing (Table 3-
18). Given housing prices and incomes in Palo Alto, it is likely that the overwhelming majority of
home owners has sufficient financial means to maintain their homes and do not need, or would
not qualify, for financial assistance from the City. As described in Chapter 4, there are certain
segments of the population, including homeowners, with unmet housing needs.
City of Palo Alto 37 2005 -2010 Consolidated Plan
Housing and Community Development Needs
• Low-income children are at eight times higher risk for lead poisoning than wealthier
children;
• Black children have five times higher risk than White children;
• Hispanic children are twice as likely as White children to have lead poisoning;
• Children in older housing are at higher risk; and
• Up to 50 percent of children in distressed neighborhoods have some level of lead
poisoning.
Lead-based paint is a major source of lead poisoning. The age of the housing stock is the key
variable for estimating the number of housing units with lead-based paint. Starting in 1978, the
use of all lead-based paint on residential property was prohibited. National studies estimated
that 75 percent of all residential structures built prior to 1978 contain lead-based paint, and that
older structures have the higher percentages. Not all units with lead-based paint are hazardous.
Testing for lead in dust, soil, deteriorated paint, chewable paint surfaces, or friction paint
surfaces is required to assess the whether the amount of lead is hazardous. Deteriorated units,
particularly those with leaky roofs and plumbing, and rehabilitated units where there was not a
thorough cleanup with high-phosphate wash· after the improvements were completed, are
particularly prone to high levels of lead. Figure 3-5 shows the cases of elevated blood lead
levels in Santa Clara County by ZIP code. As shown in Figure 3-5, there are no reports of
significantly high lead levels in children residing in Palo Alto.
CHAS data provide the number of housing units constructed before 1970 that were occupied by
lower income households. This data can be used to approximate the extent of lead-based
paint hazards among lower-income households. While information on units constructed before
1978 is not available from CHAS, estimates based on the pre-1970 stock provide a worst-case
estimate of the extent of lead-based paint hazards. Citywide, an estimated 2,014 units
occupied by lower income households (0-80 percent MFI) may contain lead-based paint (Table
3-20). Generally, rental housing in Palo Alto is well maintained which may reduce lead paint
hazards for all tenants. In owner-occupied housing, very few lower-income households are
affected by lead paint hazards, due to the high market value of such housing. Lead paint in
owner-occupied housing is not likely to be a problem of higher-income households, which have
the economic resources to remodel their homes. Therefore, the actual number of older housing
units with lead-based paint hazards is lower than indicated in Table 3-20.
Year Units
Built
Before
1970
Table 3-20
Housing Occupied by Lower-Income Households
with Potential Lead-Based Paint Hazard
Estimated No. of Units with LBP and
No. of Units Occupied by Lower Occupied by Lower Income
Income Households Estimated Households
Extremely Very Low Low Percent Extremely Very Low Low
Low (0-(31-50% (51-80% Units with Low (0-(0-50% (51-80%
30% MFJ)l MFI) MFI) LBp2 30%MFI) MFJ) MFI)
553 899 1,235 75% 414 674 926
1 Owner-occupied units for extremely low-income group not available. Figure Includes only rental units.
2 Based upon national stUdies.
Source: HUD CHAS Data, 2003.
City of Palo Alto 39 2005 -2010 Consolidated Plan
Housing and Community Development Needs
The City's housing and CDBG staff provide information and referral to property owners,
developers, and non-profits rehabilitating older housing about lead-based paint hazards. Also,
the City currently requires that any housing rehabilitated with City financial assistance must be
inspected for the existence of lead-based paint hazards. The City will provide financial
assistance for the abatement of such hazards in these rehabilitated units.
3.5 Public and Assisted Housing Needs
3.5.1 Public Housing
The Housing Authority of the County of Santa Clara (HACSe) manages 555 public housing units
throughout Santa Clara County. Most of these units (494) are exclusively for lower-income
seniors, while only 25 units are exclusively for lower-income families. There are no public housing
units in Palo Alto.
3.5.2 Tenant-Based Rental Housing Assistance
The City of Palo Alto contracts with HACSC to administer its rental assistance programs,
specifically the Section 8 Voucher program. Currently, 250 City households receive tenant-
based rental assistance through the voucher program. There are another 48 applicants on the
waiting list. Table 3-21 presents a breakdown of Section 8 participants and waiting list
applicants.
Table 3-21
S r 8P rr· t dA r t·· PlAit eClon a IClpan s an ~ppllcan S In ao 0
Participants
Disabled 29
Elderly 159
Disabled and Elderly 23
Non-Disabled and Non-Elderly 39
Total 250
Waiting List Applicants
Disabled 11
Elderly 12
Disabled and Elderly 5
Non-Disabled and Non-Elderly 20
Total 48
Source: Housing Authority of the County of Santa Clara
City of Palo Alto 41 2005 -2010 Consolidated Plan
Housing and Community Development Needs
3.5.3 Inventory of Assisted Housing Units
Table 3-22 provides data on the City's assisted multi-family housing stock by various government
assistance programs.
Table 3-22
Palo Alto Subsidized Rental Housing Developments (January 2005)
Project Name and Location Date1 Units Type of Households Served
Existing Units
Stevenson House, 455 E. Charleston 1968 120 Seniors
Colorado Park, 1141 Colorado Ave. 1972 60 Families/Seniors (17 units Section 8)
*Palo Alto Gardens, 648 San Antonio 1973/1999 156 Families/Seniors
Arastradero Park, 574 Arastradero 1974/1995 66 Families/Seniors (47 units Section 8)
Lytton Gardens I, 656 Lytton Ave. 1975 218 Seniors
Webster Wood Apts., 941 Webster st. 1978/2001 68 Families/Handicapped (4 units)
Lytton Gardens II, 656 Lytton Ave. 1979 100 Seniors (50 independent living, 50 residential care)
*Sheridan Apartments, 360 Sheridan 1979/1998 57 Seniors/Disabled (56 units Section 8)
Elm Apartments, 129 Emerson St. 1980 11 Families (8 units Section 8 mod. rehab.)
Pine Street House, 1259 Pine St. 1981 1 Families
*Ferne Apartments, 101-131 Ferne Ave. 1981 16 Families (6 units Section 8 mod. rehab.)
Terman Apartments, 655 Arastradero 1985 92 Families/Seniors (72 units Section 8)
Emerson South, 3067 Emerson 1985 6 Small Families/SinQle Adults
Curtner Apts., 300-310 Curtner Ave. 1985 9 Families (9 units Section 8 mod. rehab.)
*Waldo Apartments, 3039 Emerson 1987 6 Families (3 units Section 8 mod. rehab.)
California Park Apts., 2301 Park Blvd. 1989 45 Families/HandicaQQed (1 unit)
*Oak Manor Apts., 630 Los Robles 1991 33 Families (23 units Section 8)
Plum Tree Apartments, 3020 Emerson 1991 10 Families
Lytton Courtyard, 330 Everett Ave. 1994 51 Seniors (50 units Section 8)
Barker Hotel, 439 Emerson St. 1994 26 Single Adults/Handicapped (5 units)
*Emerson North, 3051-3061 Emerson 1994 6 Small Families/Adults (1 unit Section 8 mod. rehab.)
*Emerson House, 330 Emerson St. 1996 4 Small Families/Handicapped
*Ventura Apts., 290-310 Ventura Ave. 1997 12 Families (1 unit Section 8 mod. rehab.)
Alma Place SRO, 753 Alma St. 1998 107 Single Adults/Handicapped
PaQe Mill Court, 2700 Ash st. 1998 24 Developmentally Disabled Adults
Total 1,304
Under Construction
Oak Court AQts., 845 Ramona 2005 53 Families (Completion spring 2005)
Opportunity Center, 33 Encina Ave. 2006 89 SRO -Single Adults/Family/Homeless (Completion
summer 2006)
Total 142
* Rental units (290 units In eight proJects) prOVided In lieu of on-site Below Market Rate (BMR) units, or funded With BMR In-lieu fees.
I Date development completed. Second year is date development was preserved for affordable housing.
Source: City of Palo Alto staff, January 2005.
City of Palo Alto 42 2005 -2010 Consolidated Plan
Housing and Community Development Needs
3.5.4 Assisted Housing Units At-Risk of Converting to Market Rate
The State Housing Element law and HUD Consolidated Plan regulation require cities to prepare
an inventory including all assisted multi-family rental units which are eligible to convert to non-
low-income housing uses due to termination of subsidy contract, mortgage prepayment, or
expiring use restrictions. The State Housing Element law requires this inventory cover a ten-year
evaluation period following the statutory due date of the Housing Element (July 1,,2004);
whereas the HUD regulation requires the inventory to cover only the five-year planning period of
the Consolidated Plan. To satisfy both state and federal requirements, this at-risk housing analysis
period covers from July 1, 2004 through June 30, 2014. This analysis represents a review of current
status and options, rather than a specific statement of City policy.
Table 3-23 lists the assisted housing units that are at risk of conversion to market-rate housing from
July 2004 to June 2014, based on information from the ,California Housing Partnership
Corporation (CHPC). Palo Alto has 400 units in seven developments of very low-and low-
income housing that are subject to increases in rent or conversion to market rate housing to
varying degrees. Of these units, 72 are considered at severe risk of conversion, while the
remainder is at low risk of conversion.
Project
Arastradero Park
Apts.
Colorado Park
Lytton Gardens I
Lytton Gardens II
Page Mill Court
Terman Apts.
Table 3-23
Assisted Housing Units
At Risk of Conversion to Market-Rate
Type of Units Subject to Conversion Date
Assistance Conversion
Section 236 (j) (1 ) 47 2000
Section 8
Section 236(j) (1 ) 37 2002/2003
Section 8
Section 236 (j) (1 ) 140 '2003
Section 8
Section 202 100 2000
Section 8
Section 811 4 2002
221 (d)(4) 72 2005
Section 8
Total Units 400
Risk Assessment
Previously
preserved
Low risk, non-profit
ownership
Low risk, non~profit
ownership
Low risk, non-profit
ownership
Low risk, non-profit
ownership
At risk
Sources: California HOUSing Partnership Corporation, January 2005; City of Palo Alto staff.
These projects are assisted in part by HUD with Section 8 project-based rental assistance in which
a direct subsidy is provided to the owner. The future of the Section 8 program is in question. By
2008, the subsidies on these developments either expire or come up for r~newal. Projects with
for-profit owners are considered most at-risk. The Terman Apartments are the only housing units
under for-profit ownership, but they are under non-profit control. The remaining units are owned
by non-profits and are considered less at risk of being lost as affordable housing, for reasons such
as relatively low mortgage debt and the non-profits' commitment to maintain affordable
housing. However, the loss of Section 8 subsidies could result in increased rents, making the units
less affordable to very low-and low-income households.
There are two assisted housing projects not listed in Table 3-23 that have undergone recent
changes. The Palo Alto Gardens (156 units) paid off its Section 8 loan in 1998, but was
purchased by a non-profit organization the following year. Sheridan Apartments (57 units) is
listed as an "at risk" development by CHPC. However, the development was purchased by the
City of Palo Alto 43 2005 -2010 Consolidated Plan
Housing and Community Development Needs
non-profit Palo Alto Housing Corporation in 1998, and the Section 8 contract is renewed
annually.
3.6 Barriers to Affordable Housing
Constraints to the provision of adequate and affordable housing are posed by market,
governmental, and infrastructure and environmental factors. These constraints may result in
housing that is not affordable to I ow-and moderate-income households, or may render
residential construction economically infeasible for developers. Constraints to housing
production significantly impact households with low-and moderate incomes and special needs.
3.6.1 Potential Governmental Constraints
Potential governmental constraints to affordable housing development include the following:
Land Use Controls
The City's Zoning Ordinance is the primary tool used to manage the development of residential
units in Palo Alto. Residential districts that are allowed in Palo Alto vary from Residential Estate to
High Density Multiple-Family Residence. Moreover, residential development is permitted in all
other zones except the Public Facilities Zone. Permitted densities, setback requirements,
minimum lot sizes, and other factors vary among the residential districts. The City's Zoning
Ordinance allows a range of residential densities. The Residential Estate zone allows just one
residential unit per one acre. In contrast, the High Density Multiple-Family Residence allows up to
40 residential units per acre. The range of densities provided for in the City's Zoning Ordinance is
not considered to be a constraint on affordable housing development.
In addition to the specific residential districts, there is. the "Planned Community (PC) District" that
is intended to accommodate developments for residential, commercial, professional or other
activities, including a combination of uses. It allows for flexibility under controlled conditions not
attainable under other zone districts, and allows for more density. The Planned Community
District is particularly intended for unified, comprehensively planned developments that are of
SUbstantial public benefit. Some affordable housing has been produced within the PC zone,
such as the Opportunity Center and Alma Place. However, one constraint to the PC zone
related to housing is a requirement for a finding of public benefit. In a high cost area such as
Palo Alto, additional public benefits discourage residential PC zone proposals. A program in the
City's Housing Element calls for the development of a Planned Development Zone similar to the
PC zone, but without the public benefit finding.
The City currently is in the process of updating its Zoning Ordinance. Changes are proposed to
zoning districts and development standards, among other subjects. So'me of the proposed
changes would have an impact on the provision of housing. These include the following:
• Create and apply the following four new Mixed Use zoning standards: (1) A "Live/Work"
designation that permits individuals to live on the same site where they work; (2)
"Retail/Office"; (3) "Residential/Retail"; and (4) "Residential/Office" designations that
permit a mix of uses on the same site or nearby sites.
• Revise land use and zoning designations as needed to encourage medium-density
housing (20-25 units per acre) within or near Neighborhood Centers served by public
transportation to support a more vital mix of commercial activities.
City of Palo Alto 44 2005 -2010 Consolidated Plan
Housing and Community Development Needs
• Allow for increased housing density immediately surrounding commercial areas and
particularly near transit centers.
• Evaluate zoning incentives that encourage the development of ,diverse housing types,
including smaller, more affordable units and two-and three-bedroom units suitable for
families with children.
• Create a Planned Development zone that allows the construction of smaller lot single-
family units and other innovative housing types without the requirement for a public
benefit finding.
• Amend zoning regulations to permit residential lots of less than 6,000 square feet where
smaller lots would be compatible with the surrounding neighborhood.
• Modify parking requirements to allow higher densities and reduced housing costs in areas
appropriate for reduced parking requirements.
• Enact development regulations that encourage rehabilitation of historic residential
buildings, remodeling of older multifamily rental buildings and retention of smaller single-
family residences.
• 'Standards should be revised to accommodate affordable housing and multifamily
densities so that PC zoning is not needed; the densities are currently not achievable due
to FAR, parking, open space, etc. requirements.
Site Development Regulations
In certain instances, the City's site development regulations can be viewed as a constraint to
housing development. The City recognizes that its residential neighborhoods are distinctive and
wants to preserve and enhance their special features. Since Palo Alto is basically a "built-out"
community, most new single-family residential development is going to occur in existing
neighborhoods through either infililots or demolition/remodeling of existing structures. Therefore,
the regulations guiding development are intended to ensure that much of what Palo Alto
cherishes in its residential areas, such as open space areas, streetscapes with mature
landscaping and variety in architectural styles, is preserved and protected.
Several site development regulations, however, are recognized in the City's Housing Element as
needing assessment and possible revision to reduce the constraints on developing housing. One
program calls for amending the zoning regulations to permit residential lots of less than 6,000
square feet where appropriate. Another program calls for modifying parking requirements to
allow higher densities of housing in areas where jobs, services, shared parking and transit will
reduce the need for parking. Other programs call for allowing increased density around
commercial areas and near transit centers, and for considering minimum density requirements,
which could result in more housing, as well as more affordable housing.
Local Processing and Permit Procedures
There are various levels of review and processing of residential development applications,
depending on the size and complexity of the development. For example, single-family use
applications that require a variance or home improvement exception can be handled by the
Zoning Administrator. More complicated applications, such as subdivision applications or
City of Palo Alto 45 2005 -2010 Consolidated Plan
..
Housing and Community Development Needs
rezoning, require review and approval by the Planning Commission and City Council and, in
some instances, the City's Architectural Review Board.
Application Process. Residential development applications that fall under the responsibility of
the Zoning Administrator are usually processed and a hearing held within 6-8 weeks of the
application submittal date. This includes review by the Architectural Review Board, which is
required for all residential projects except singly developed single-family houses and duplexes.
Rezoning and minor subdivision applications typically have a longer time frame, since they must
be heard before both the Planning Commission and the City Council. Generally, an application
will be heard by the Planning Commission 7~ 10 weeks after application submittal. Locdl
ordinance requires the City Council to consider the Planning Commission recommendations
within 30 days; therefore, there would be a maximum of 30 more days after the Planning
Commission hearing for the City Council's action .on the application. If the application is for a
major site and design or Planned Community rezoning, then the Architectural Review Board will
conduct a hearing after the Planning Commission hearing, which could affect the time frame
for approval. Furthermore, all of the time frames referenced above assume that all
environmental assessment and/or studies have been completed for the development.
Additional time will be required if there are any environmental issues that need to be studied or
resolved as a result of the environmental assessment.
Architectural Review Board. Architectural Review Board (ARB) approval is required for all
residential projects except singly developed single-family homes and duplexes. The ARB sets
certain standards of design in order to maintain the high quality of housing in Palo Alto. The ARB
process may add time and may result in requiring a higher level of design, materials, and
construction, which can be a constraint to the development of housing. However, the level of
review and the upgrade in materials has the long-term benefit of lower maintenance and higher
retention of property values. Moreover, the construction of thoughtful and well-designed multi-
family housing has sustained community support for higher density projects and has resulted in
community support for residential projects at all income levels. The preferences on materials are
sometimes waived for affordable housing projects.
Building Codes and Regulations. In regard to codes and enforcement, the City has adopted
the Uniform Building Code (UBC), which establishes minimum construction standards. Although
a locality may impose more stringent standards, it cannot adopt any that are less restrictive than
those of the UBC. Thus, the City cannot modify the basic UBC requirements. The City also
administers certain State and Federal mandated standards in regards to energy conservation
and accessibility for disabled households. In reviewing these standards, certain requirements
especially in regard to handicapped accessibility may be viewed as a constraint to housing
production. The City has no direct control over these types of requirements other than working
with local legislators on a federal and state level to modify and make the requirement more
realistic.
Development and Impact Fees
The City's development fee structure does not appear to be a significant impediment to
residential development. Residential developments are charged fees according to the value of
the project for building, planning, and fire review fees~ For example, a residential unit with a
value of $200,000 would be charged $2,684 for building, planning, and fire fees. For infill and
individual single-family development, the public works fees are minimal and estimated to be less
than $500 per unit. For a residential subdivision, the most significant public works fee would be
the fee for a Street Work Permit, which is 5 percent of the value of the street improvements. The
City's Utility Department does charge for sewer and water hookups. The City has joined with 26
City of Palo Alto 46 2005 -2010 Consolidated Plan
Housing and Community Development Needs
other cities and San Mateo and Santa Clara Counties to implement procedural changes that
will standardize modifications to the Uniform Building Code and submittal requirements for
building permits and building permit fees.
The City collects impact fees from new residential and commercial development. These fees
are used to mitigate impacts new development would have on City facilities. On March 25,
2002, the Palo Alto City Council approved new impact fees for parks, community centers, and
libraries. These impact fees apply to new residential and nonresidential development approved
after January 28, 2002. These impact fees would cost approximately $10,894 per single-family
home, and approximately $7,137 per unit of a multi-family development. While these impact
fees would add to the cost of developing housing in Palo Alto, they are considered necessary to
reduce the impacts the new development would have on City parks, libraries, and community
centers. The City has determined that these impact fees are the most equitable method of
financing the cost of constructing new facilities or expanding existing facilities in response to
increased demand.
Other public service districts that are outside of the control of the City may charge fees. The
most significant of these are school impact fees. The Palo Alto Unified School District imposes a
fee per square foot for residential units. Los Altos School District services a small portion of the
City of Palo Alto and also imposes a school impact fee.
Below Market Rate (BMR) Program
The City's BMR Program has been in existence since 1974. The program was initiated to fill a gap
in affordable housing between households making above moderate-income, who it was felt
could afford their own housing, and low-income households, who could be assisted by other
state and federal programs. The basic requirement is 15 percent of the units being built.
Projects of five acres or more must provide a 20 percent BMR component. The City requires that
BMR units be included in for-sale and rental residential projects of five or more units, and that the
units be mixed throughout a project. The program has built-in provisions that result in the units in
the program being more affordable over time when compared to market-rate units and median
income households.
Because the affordable housing provisions in the BMR Program would make it more difficult for
housing developers to recoup costs on these units, these provisions could discourage some
housing projects in Palo Alto. Therefore, the BMR program could be considered a constraint.
However, in high cost cities such as Palo Alto, this type of program is a necessity to augment the
production of moderate cost housing.
Infrastructure
The City of Palo Alto is an older and well-established community in terms of infrastructure. The
City owns and manages its utilities, including water and electricity. According to staff from the
City Public Works Department, there are no significant infrastructure constraints that would
affect anticipated residential development. The City's wastewater and water systems both have
sufficient capacity to serve expected residential growth, although some local service lines need
expansion or extension.
While there appear to be no significant infrastructure constraints on a citywide basis, there may
be constraints on a site-by-site basis, depending on the site's proximity to existing utility and
service lines and whether there would be a need to provide additional connections or upgrades
City of Palo Alto 47 2005 -2010 Consolidated Plan
Housing and Community Development Needs
to those lines. These types of improvements would typically be the responsibility of the property
owner/developer.
3.6.2 Non-Governmental Constraints
There are a number of costs involved in the development of housing. These include land and
construction costs, sales and marketing, financing, and profit. Because these costs are so
"market sensitive," it is difficult for a local government to reduce them in any way. Listed below
are some of the more significant market-related issues.
Land Availability
Palo Alto is basically a "built-out" community. Only 1.4 percent of the City's land area is vacant.
There is only one piece of vacant, residentially zoned land greater than 10 acres in size
remaining in the City. The lack of vacant land, however, has resulted in an effort to "recycle"
land parcels with commercial or industrial zoning that are vacant or have other land uses that
are economically marginal. The City's long-term policy is to discourage the rezoning· of
residential land to commercial use, while encouraging the rezoning of commercial lands for
residential use.
In addition, the City's BMR program will result in the production of units of moderate-income
housing, depending on the number of market rate units built. The City has established and is
proposing, as part of its Housing Element, numerous policies, and programs to encourage the
additional development of housing, particularly housing affordable to very low-, low-and
moderate-income households. These include allowing for increased densities near transit;
consideration of· requiring minimum densities; zoning incentives for smaller, more affordable
housing; evaluation of second dwelling unit regulations to encourage the creation of more units;
revised regulations to allow residential lots of less than 6,000 square feet and modifications to
reduce parking requirements when houses are located near jobs, services and transit.
There are currently 142 units of housing for extremely low-, very low-and low-income households
currently under construction in Palo Alto -Oak Court (53 units) and Opportunity Center (89 units).
However, even with the strong commitment of the City to provide affordable housing, it will be
difficult for Palo Alto to provide the necessary units for households with moderate-income (80-
120% AMI). The primary reasons are a lack of available land and the limited availability of
subsidy funds. The City will continue to use public and private resources to make a good-faith
effort to provide as many units as it can in meeting the State-required need. Also, the City will
maintain its own commitment to provide housing for all income groups and a diversity of housing
throughout Palo Alto .
. Land and Construction Costs
The actual costs of developing and building housing in Palo Alto could be viewed as a
constraint to housing, especially affordable housing. As discussed previously, vacant land is
scarce in Palo Alto. The scarcity of vacant land has resulted in increased costs of purchasing any
available land. Residentially zoned property can sell for over $100 per square foot or more,
depending on its location and development potential. Individual single-family lots, if available,
are typically $1 million or more in price for a 5,000 to 16,000 square foot lot. Thus, a one-acre site
with multiple-family zoning would be worth in excess of $4 million. The City continues to review
non-residentially designated areas and underutilized sites for potential residential uses and is
encouraging the integration of residential use into commercial/industrial areas.
City of Palo Alto 48 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Construction costs in Palo Alto are also expensive, but are similar to those of surrounding
communities. Discussions with private and non-profit developers and City staff indicate that
residential construction costs can range from approximately $75 per square foot to $100-200+
per square foot, depending on amenities and the quality of construction materials. It becomes
difficult to build housing, particularly affordable housing, with this range of construction cost. For
example, using $100 per square foot as an estimate, a 2,000 square foot home would cost
$200,000 just for construction costs and excluding land costs, off-site improvements, processing
fees and financing costs. In order to develop housing that is affordable, especially to very low-
and low-income households, public subsidies are required because of the high cost of land and
construction.
Financing Costs
Financing costs are primarily dependent on national economic trends and policy decisions. In
recent years, interest rates on mortgages have been among the lowest rates in history, making
borrowing money for home purchases less expensive. Financing from both mortgage brokers
and retail lenders (banks, savings and loans) is available in the Palo Alto area. The availability of
financing is not a constraint to the purchase of housing in Palo Alto. However, financing for
'development of condominiums, rental housing and mixed-use projects can still be difficult to
obtain. Financing costs for subsidized housing are reasonable, but obtaining the subsidy is more
difficult, as the competition for the limited available funds is very high.
Environmental Constraints
There are some areas in the City that have specific environmental areas of concern. There are
approximately 12 sites in the foothill area of the City that are within a specific earthquake fault
zone area. These sites require in-depth soils reports and peer review as part of their
development use approval. Moreover, the entire City is subject to moderate to severe earth
movement during a seismic event. '
According to the City Public Works Department staff, approximately 25-30 percent of the City is
within the flood hazard zone. structures within this zone must meet certain building requirements
when 'expanding or improving the property if the improvement is greater than 50 percent of the
value of the property.
Some areas of the City have isolated cases of pollution of the soil and groundwater that may
require cleanup, and the close proximity of groundwater to the surface may limit excavation
and require additional foundation stabilization. Finally, many available sites are limited by noise
constraints from vehicular traffic and railroad trains. Sound walls or additional noise barriers may
be required to reduce noise to acceptable levels for residential use. These requirements could
be viewed as constraints in that they increase the cost and may prohibit owners from
undertaking improvements. The City, however, has limited control over these requirements, since
they areprimorily regulated by state and federal agencies.
City of Palo Alto 49 2005 -2010 Consolidated Plan
Housing and Community Development Needs .
3.7 Fair Housing
3.7.1 Analysis of Impediments to Fair Housing Choice
The City completed an Analysis of Impediments (AI) to Fair Housing in 2003. The AI evaluated
potential impediments to fair housing and made recommendations for the removal of these
impediments. The AI identified the following potential impediments:
• The lack of affordable housing restricts people in their ability to purchase or rent housing.
Census data show that the primary groups affected by the lack of affordable housing
are low and moderate-income people. People of color, families with children, and
persons with disabilities have a disproportionate problem in finding housing in Palo Alto
and Santa Clara County when compared to young, white, higher income, able-bodied
purchasers and renters without children.
• The lack of available housing creates an inadequate pool of housing stock. The
predominance of single-family residences compared to the amount of multi-family
housing in Palo Alto also affects the availability and affordability of housing choice.
• The lack of land available for housing construction been identified as the primary
obstacle for both nonprofit and for-profit developers trying to develop housing.
• Related to the scarcity of land, the price of land suitable for new housing is too high for
the construction of low to moderate-income housing without subsidies.
• Discrimination continues to influence who may find housing in Palo Alto and who may
not. Families with children and persons with disabilities remain the largest single classes
affected by discrimination in Palo Alto. Although there is no readily available information
on the accessibility of housing in Palo Alto for persons with disabilities, it is likely that many
units and projects do not meet current standards of accessibility as mandated by the
Americans with Disabilities Act (ADA). since most of the City's housing stock was built prior
to the adoption of ADA in 1991.
• Application processes for the limited amount of federal and state housing funds
available are highly complex and competitive. The myriad of federal requirements such
as prevailing wage, property acquisition regulations, environmental standards,
relocation, etc., also add considerably to the cost of creating affordable housing with
federal or State subsidies.
Federal reductions in the already insufficient supply of funding for housing, along with the need
for increased subsidies in high cost areas, results in fewer affordable units being created in Palo
Alto. The distribution of tax credits for developing affordable housing is problematic because the
allocation system set at the State level typically limits the numbefof units per year in Santa Clara
County. At times, this means projects in Palo Alto cannot be funded.
3.7.2 Fair Housing Policies and Programs
The City of Palo Alto has a number of current poliCies and programs, which encourage fair and
equal housing choice. The City also maintains a strong commitment to the creation of
City of Palo Alto 50 2005 -2010 Consolidated Plan
Housing and Community Development Needs
affordable housing opportunities -the City Council in 2002 reaffirmed that it is one of the
Council's top five priorities for the City. A list of fair housing programs follows: "r
• Palo Alto has employed a Housing Coordinator since 1992 to facilitate the production of
affordable housing in Palo Alto through nonprofit partnerships and technical assistance.
• Palo Alto has a Below Market Rate (BMR) Program, which currently consists of 179 below
market home ownership units and 1 01 below market rate rental units. The units are
located throughout the City in privately constructed residential developments. They are
provided by the private market under the City's inclusionary zoning policies in the
Housing Element, which have been in effect since 1974. The City contracts with the Palo
Alto Housing Corporation to administer the Program.
• The Palo Alto Housing Corporation(p AHC) created and distributed a resource guide to
affordable (and assisted) housing in Palo Alto and the vicinity in June 1994. The booklet
was funded with COBG funds, and is currently available online in addition to paper
copies that were last updated and reprinted in June 2002.
• The City provided COBG funds to the Palo Alto Housing Corporation to research and
complete an Asset Management Plan and a Property Management Procedures Manual.
The purpose of the Plan and Manual are to increase the capacity of the organization to
plan and administer an ever-increasing number of assisted/affordable housing units
within the City.
• The City provides general fund support to Project Sentinel to provide Information and
Referral services about landlord/tenant laws and conduct a citywide tenant/landlord
mediation program. This frequently helps tenants to resolve disputes and remain in their
housing.
• Palo Alto's Rental Housing Stabilization Policy (Palo Alto Municipal code 9.68.030) requires
Palo Alto landlords to annually offer one-year written leases to tenants. The purpose of
the ordinance is to provide tenants with some assurance of stability under the terms of a
written lease and to minimize displacement in a rental housing market which affords
them few and expensive options.
• The City currently contracts with Project Sentinel to provide fair housing serVices including
information and referral, community outreach and education, discrimination complaint
checking and investigation, legal referrals and assistance in resolving complaints. The
City collaborated with the Cities of Mountain View and Sunnyvale to issue a joint North
County RFP for Fair Housing Services and selected one service provider for the North
County area. Project Sentinel audits rental housing in Palo Alto and has conducted
special projects such as a poster contest to celebrate Fair Housing Month in April.
Activities of Project Sentinel to increase public awareness about fair housing include
widespread advertising, frequent radio Public Service Announcements; distribution of
brochures, annual workshops for apartment owners and managers; educational
presentations; listings on websites; and booths at events.
• Project Sentinel also collaborates with regional fair housing advocates and service
providers by participating in meetings such as the Bay Area Annual Fair Housing
Leadership Conference, Northern California Fair Housing Coalition, Annual Conference
of the National Fair Housing Alliance, State Oepartment of Fair Employment and Housing
Legislative Update Workshop, and the Santa Clara County Housing Task Force.
• The Palo Alto Human Relations Commission (HRC) investigates,' reviews, advocates for,
and advises the City Council on matters relating to maintaining a non-discriminatory
City of Palo Alto 51 2005 -2010 Consolidated Plan
y
•
•
•
3.8
Housing and Community Development Needs
atmosphere in Palo Alto. The HRC, in collaboration with police officials, investigate and
document any instances of local hate crimes.
Chapter 9.74 of the Palo Alto Municipal Code prohibits discrimination against families
with minor children in housing. The ordinance lists specific prohibited rental practice
activities including the application of restrictive occupancy standards.
The City A ttorney's Office handles cases brought to their attention involving
discriminatory rental practices.
The City participated in the 2000-02 Fair Housing in Santa Clara Study, which examined
fair housing issues on a Countywide level. The study had several recommendations to be
undertaken collaboratively, including the creation of a Countywide Fair Housing Task
Force made up of various entitlement jurisdictions, HUD, the Department of Fair
Employment and Housing, and fair housing service providers. City of Palo Alto staff
represents the North County on the task force.
Homeless Needs5
All the entitlement jurisdictions in Santa Clara County have long recognized that homelessness is
a regional issue. The best available data on the homeless is only available for the entire County.
Data presented in this section is thus based on statistics for the entire County, as presented in the
County's 2004 Continuum of Care (Coq application to HUD. HUD requires that each
entitlement jurisdiction identify needs and gaps in services within its boundaries. To meet those
HUD requirements, the countywide characteristics and demographics of the homeless, and the
needs and gaps in facilities and services identified in that application were allocated to each
entitlement jurisdiction based on the last zip code of residence of homeless persons entered into
the Homeless Management Information-Santa Clara (HMIS) as of November 30,2004. At that
time, the HMIS did not include client data from all agencies serving the County's homeless. The
entitlement jurisdictions in the County have determined it is the best available data as to where
persons last resided before becoming homeless. For that reason, that HMIS data was used as
the basis for allocating the countywide data from the CoC to each entitlement jurisdiction.
The following section summarizes the housing and supportive service needs of the homeless in
Palo Alto, as well as persons and families at risk of becoming homeless. This section also includes
an inventory of services and facilities available to serve the City's homeless population and those
who are at risk of becoming homeless. Service and facility gaps in the Continuum of Care are
also identified.
3.8.1 Nature and Extent of Homelessness
Homeless Population
Since homelessness is a regional issue, data presented in this section is based on statistics for the
entire County. Characterization by jurisdiction of the homeless population, the availability of
facilities and services, and gaps in service are based on the countywide data and data
generated under the County's Homeless Management Information System (HMIS), a federally-
required collaborative database that tracks homeless clients by last reported permanent place
of residence.
5 Unless otherwise noted, statistics cited in this report are from the Santa Clara County-wide Consolidated
Continuum of Care Application (2004).
City of Palo Alto 52 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Table 3-24 and Table 3-25 are the most recent detailed estimates of the homeless population in
Palo Alto and Santa Clara County (based on the County's 2004 Continuum of Care application
to HUD).lt is estimated that there are 102 homeless persons in the City. In Santa Clara County,
there are an estimated 7.214 persons who are homeless, of which 37.7 percent have shelter. In
Palo Alto, 41 homeless persons (40.2 percent) are sheltered.
In December of 2004, the cities in Santa Clara County and the County jointly sponsored a two-
day homeless count (conducted by a consultant who specializes in these counts) to assess the
homeless population in the County's 351 census tracts. Based on the preliminary results, there
were 7,121 unduplicated cases of homelessness, of which 4,877 were individual cases and 1,232
were persons in family groups. The survey takers could not determine ordid not record the
family status of the remaining 1,012 cases. Of the 7,121 cases, 2,778 were counted in homeless
shelter facilities.
City of Palo Alto 53 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Homeless Individuals
As indicated above, homeless individuals comprise approximately 73.5 percent of the homeless
population in Palo Alto, compared with 69.4 percent of the homeless population in the County.
Unsheltered homeless individuals account for 52.9 percent of the total homeless population in
the City. According to information in the Santa Clara Countywide Five-Year Continuum of Care
Plan (Countywide Five-Year Plan), approximately 74 percent of the urban homeless are single-
adults. The overwhelming majority of single homeless adults are male (about 75 percent).
Homeless Families
Members of homeless families make up slightly over one-quarter of the homeless population in
Palo Alto. By comparison, almost one-quarter of the urban homeless population in the County
are members of homeless families. Members of homeless families make up almost one-quarter
of the urban homeless population in the County. Single mothers head the majority of homeless
families -66 percent according to the Countywide Five-Year Plan. The Countywide Five-Year
Plan also stated that 227 dependent children accompanied 284 homeless people surveyed, or
approximately 44.4 percent of the total sample. This was an increase from a 1995 study of the
homeless in the County, which indicated that children in homeless families comprised 23 percent
of the total sample.
Homeless Subpopulations
Table 1 also provides a breakdown of the homeless population by subpopulations. A description
of each subpopulation and their estimated number in Palo Alto follows. As with the homeless
population in general, characterization of the homeless sub populations are based . on the
County's HMIS data, the allocation of which have been assigned according to the proportion of
clients in the HMIS database that reported Palo Alto as his or her last place of permanent
residence.
Chronically Homeless
The Interagency Council on Homelessness has defined someone who is "chronically homeless" as
"being disabled and either being continuously homeless for a year or more or having had at
least four homeless episodes during the last three years."6 There are an estimated total of 14
chronically homeless persons in Palo Alto. Countywide, there were 931 chronically homeless
persons. Of this total, only one-fifth were in shelters.
Persons with Severe Mental Illness
Severe mental illness includes the diagnoses of psychoses (e.g. schizophrenia) and the major
affective disorders (e.g. bipolar, major depression). To qualify as chronic, the illness must have
existed for at least one year. According to national estimates, approximately one percent of
the adult population meets a definition of severe mental illness based on diagnosis, duration,
and disability.
In Palo Alto, there are an estimated 14 homeless persons who are seriously mentally ill. In the
County, there were 952 such homeless persons. According to the Countywide Five-Year Plan, 90
percent of the homeless identified as mentally ill were single.
6 U.S. Department of Housing and Urban Development, Strategies for Reducing Chronic Street
Homelessness, January 2004.
City of Palo Alto 56 2005 -2010 Consolidated Plan
Housing and Community Development Needs
The major barrier to stable, decent housing for the seriously mentally ill is the availability of
affordable housing. A substantial majority of persons in this population depend solely on Social
Security Insurance (SSI) payments. These payments, which averaged $5507 in 2004, permit very
few persons in this population to afford rental housing on the open market.
Persons with Substance Abuse Problems
In past surveys, substance abuse appeared to be a major factor in the cause of homelessness.
A substantial number of homeless surveyed in 1997 (25.9 percent) stated that substance abuse
had precipitated continual job loss and a subsequent inability to pay rent. resulting in eviction
from their homes. An estimated 12 homeless persons in Palo Alto had chronic SUbstance abuse
problems, either with alcohol or with other drugs, or sometimes with a combination of
substances. Santa Clara County had 816 homeless persons with substance abuse problems.
Veterans
There are an estimated four homeless persons in Palo Alto who are veterans. In the County,
there were 285 homeless veterans. The Countywide Five-Year Plan indicates that the
percentage of homeless reporting as veterans has decreased over time. In 1995, 26 percent of
the homeless reported they were veterans. In 1999, that proportion decreased to 20 percent.
No information is available explaining this decrease. Based on figures in Table 1, veterans now
comprise only four percent of the homeless population.
Persons Infected with HIV / AIDS
The National Commission on AIDS states that up to half of all Americans with AIDS are either
homeless or in imminent danger of becoming homeless due to their illness, lack of income or
other resources, and weak support networks. The Commission further estimates that 15 percent
of all homeless people are infected with HIV. Within Santa Clara County, 136 homeless persons
reported having HIV / AIDS, which is less than two percent of the total homeless population. In
Palo Alto, it is estimated there are two homeless persons with HIV / AIDS.
In 2000, the Santa Clara County Board of Supervisors provided funding to the Billy DeFrank
Lesbian and Gay Community Center to complete a social services and health services needs
assessment. which included a survey of gay, lesbian, bisexual, and transgender people. Of
those surveyed, 12 percent lived in non-permanent or unstable housing. Two percent reported
living on the streets, which is similar to the percentage of HIV / AIDS homeless indicated in Table 1.
Persons Suffering Domestic Violence
Many single women and women with children become homeless as the result of domestic
violence. According to a study by the U.S. Conference of Mayors, 34 percent of the dties
surveyed identified domestic violence as a primary cause of' homelessness. Nationally,
approximately half of all women and children experiencing homelessness are fleeing domestic
violence.8 Homeless women often require additional counseling to work through psychological
impairment from physical abuse to transition into the mainstream.
7 U.S. Social Security Administration at www.socialsecurity.gov/policy/docs/quickfacts/state_stats/ca.html.
Average SSI payment for all of California, including federal SSI payment and state supplement.
8 National Coalition for the Homeless, NCH Fact Sheet # 1: Why Are People Homeless? September 2002.
City of Palo Alto 57 2005 -2010 Consolidated Plan
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3.8.3 Inventory of Facilities and Services for the Homeless and
Persons Threatened with Homelessness
Palo Alto, along with Santa Clara County and its incorporated cities, provides a. variety of
programs to assist homeless persons and persons and families threatened with homelessness.
Many of these programs target specific groups, such as the mentally ill and persons with
HIV / AIDS. Some of the programs operate on a countywide basis, while others are limited to a
specific geographical area.
Inventory of Palo Alto Facilities
Facilities that are typically part of an inventory include emergency shelters, transitional housing
and permanent supportive housing. Emergency shelters provide temporary shelter for homeless
individuals and families. Transitional housing provides shelter for families making a transition from
homelessness to permanent housing. Permanent supportive housing provides services that
enable an individual or family to avoid homelessness. Based on the geo-coding of the
countywide inventory contained in the County's 2004 Continuum of Care application to HUD,
there are no homeless facilities in Palo Alto. However, as presented below, the City and
organizations based in Palo Alto offer services to homeless persons or those at risk of
homelessness. Also, the City has financially supported organizations that operate shelters in the
vicinity, with CDBG funds and from its own general fund.
Inventory of Santa Clara County Facilities and Services
As previously stated in this section, homelessness is a regional issue; and is not restricted to a
specific jurisdiction. Homeless individuals and families are found throughout Santa Clara County.
In acknowledgement of this, and in order to more efficiently deliver services to the homeless, the
County has been working with local jurisdictions (including Palo Alto) and variOus homeless
service and housing providers to develop a countywide Continuum of Care. For this reason, a
description of homeless facilities and services available in Santa Clara County is provided below.
While not all these facilities and services are available to City residents, some are available to
homeless City residents at large, while others are available to specific subpopulations such as
domestic violence victims. '
This section presents the homeless facilities and services available in Santa Clara County under
three broad categories: 1) Housing Information and Assistance Programs, 2) Outreach Programs,
and 3) Supportive Services. Within each category are subcategories describing facilities and
services that are similar in character. In the interest of providing a thorough and comprehensive
description of homeless facilities and services, some of these programs may be described in
several subcategories. Information for County homeless facilities and services came from the
County's 2004 Continuum of Care application to HUD.
Housing Information and Assistance Programs
Programs in Santa Clara County that provide housing information and assistance are grouped in
the following subcategories: 1) Rental/Mortgage/Move-In Assistance, 2) Information and Referral
to Prevention Services and Available Housing, 3) Preventing Evictions and Job Loss, 4) Preventing
Discharge into Homelessness, 5) Transitional Housing/Post-Graduation/ After-Care, and 6)
Preserving Housing Affordable to Extremely Low-and Very Low-Income Households. Proposed
programs are also described.
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• The weekly Housing Listing, a collaborative project of Community Technology Alliance
and the Housing Authority of the County of Santa Clara, offers information about rental
units available to Section 8 participants.
• Community Technology Alliance's Shelter Bed Hotline (1-800-7SHELTER) gives callers
information about emergency shelter in the nine Bay Area Counties. County callers can
hear information in English and Spanish, and, for most shelters, can talk directly to shelter
staff to inquire about bed availability without incurring toll charges.
• The Santa Clara Valley Health and Hospital System's Gateway provides a toll-free
number (1-800-704-0900) that people may call to enter an alcohol or drug detoxification
program.
• A collaborative of homeless-targeted and mainstream food providers have published
and disseminated a foldout color brochure setting forth in easy-to-follow format
food/nutrition opportunities for homeless people in the area. Many families are faced
with choosing between purchasing food and paying for rent.
• Community Technology Alliance's "HousingSCC," a collaborative project with Housing for
Independent People, offers online information about subsidized housing, searchable by
waiting list status, services and amenities on site and unit size.
• Santa Clara Adult Education provides extensive referral and information services during
regular business hours.
Preventing Evictions and Job Loss
• The Mental Health Advocacy Project (MHAP) provides information and referrals and free
legal representation to individuals with mental health or developmental disabilities who
are facing eviction or termination from housing programs like Section 8 or Shelter Plus
Care. MHAP works to educate clients and service providers, to prevent homelessness,
and to promote fair housing through its extensive outreach, training and client
advocacy.
• Legal Aid of Santa Clara County provides eviction defense and advice on fair housing,
employment rights and conflict resolution.
• The East San Jose Community Law Center of Santa Clara Law School provides
educational materials and workshops on employment rights for Welfare-to-Work
participants and County social service agency staff.
• EHC's Homeless Services staff provides fair housing assistance and tenant advocacy.
• Community Technology Alliance's HousingSCC website gives information about tenant
rights and responsibilities to help prevent eviction.
• Housing First a collaborative of EHC, InnVision and the Housing Authority of the County of
Santa Clara, provides home-based case management for families at risk of
homeless ness. The case managers and housing specialist work with the families and the
landlord to prevent eviction and to encourage stabilization.
City of Palo Alto 61 2005 -2010 Consolidated Plan
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Housing and Community Development Needs
Preventing Discharge into Homelessness
• The Providing Assistance with Linkages to Services (PALS) program provides assessment,
treatment and discharge planning to persons with mental illness, who are incarcerated,
and housing assistance and supportive services upon release.
• The Santa Clara County Valley Health'and Hospital System's Mental Health Department
has a 24-hour unit that works with acute psychiatric hospitals, long-term psychiatric
facilities, and State hospitals that serve County residents to ensure that individuals are not
discharged from those institutions to the streets. Department case managers work with
clients well before the date of discharge. Strategies include calling relatives to see if they
can provide housing for the client. All board and care homes are contacted for possible
placement. Supplemental money is used to provide motel rooms until permanent
placement can be found.
• InnVision works closely with the County's Department of Alcohol and Drug Services to link
transitional housing beds with individuals actively engaged in a treatment program.
• Foster Care has a Life Skills program which works with youth who are one year away from
leaving foster care. This program provides help with identifying appropriate housing, how
to manage finances, how to access medical services and how to access higher
education and/or training where appropriate.
• The County's Social Services Agency sponsors six Independent Living Program service
sites, enabling it to assist eligible youth to achieve self-sufficiency prior to and after
leaving the foster care system.
• The County Valley Medical Center's case managers work with patients who are about to
be dismissed. The goal is to identify stable housing and to follow up with medical care
when appropriate. The case managers work with family members and agencies in the
community to identify programs that match the needs of the patients.
• The Hospital Council of Northern and Central California (HCNCC) has a countywide
intensive case management program for frequent user patients of hospital emergency
departments in Santa Clara County. This is a collaborative project among County and
non-profit agencies and County hospitals to eliminate unnecessary use of emergency
departments and reduce avoidable hospitalizations. The project partners include a
number of hospitals and medical centers, and the County's Office of Affordable Housing,
Department of Alcohol and Drug Services, Department of Mental Health, and Social
Services Agency.
• The Adult Dual Diagnosis Treatment Drug Court provides substance abuse treatment for
substance abusing adults who are charged in adult criminal courts and might otherwise
be sentenced to jail. The court is designed to target effective treatment services to
break the cycle of criminal behavior, alcohol or drug abuse, and incarceration by
funding alcohol and drug treatment and additional services that support substance
abuse treatment.
• The HousingSCC website enables .staff at medical and correctional facilities, as well as
the clients they serve, to search for and obtain low-income housing prior to client
discharge. Searches can be performed based on a combination of criteria such as
income, wait list status, unit size, number in family and supportive services offered.
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• HelpSCC, an Internet-based directory of up-to-date, accurate information about
County health and human services, allows staff at agencies and populations at risk to
find the services they need. Housing SCC provides online information about subsidized
housing searchable by wait list status, services, amenities and population served.
• The Santa Clara Unified School District, Santa Clara Adult Education's Career
Advantage Retraining and Placement (CARP) program outreaches to all sub-
populations of homeless persons through its eight instructors currently teaching/advising
at multiple shelter sites throughout the County. The teachers describe the CARP
programs to the shelter clients, and distribute written publications concerning the
program. In addition, mailers are sent to shelter staff so that they also are aware of the
offering and can refer clients.
• The Community Services Agency of Mountain View and Los Altos conducts outreach by
working with local Police Departments and other social service agencies so that
homeless persons are directed to the Agency for assistance. The Agency also conducts
outreach in the community through distribution of brochures and through community
presentations.
• MHAP performs regular outreach at homeless shelters, Grace Baptist Community Center
and County mental health offices to educate homeless individuals about their rights
and to provide referrals and advocacy to clients of services.
• The Homeless Care Force, a 'private organization based in Sunnyvale, has a Mobile Food
and Clothing for the Homeless program that delivers meals and clothing to where the
homeless live. Many of these homeless persons are not otherwise engaged in the
Continuum of Care. Through this contact, the program has been able to engage and
then successfully refer many homeless persons to Continuum of Care service and
housing providers.
• Contact Cares, a program of the Bill Wilson Center, provides telephone crisis line training
for volunteers to "listen bigger and better," to empathize, be congruent, set limits and
caringly confront.
• Community Technology Alliance's HelpSCC offers information on over 1,800 programs in
Santa Clara County. .
• HousingSCC includes search criterion for subsidized housing specifically for veterans,
seniors and the homeless, and supportive services for the mentally ill, substance abusers,
people with HIV/AIDS, and domestic violence victims.
Outreach to Chronically Homeless
• The City of San Jose is the lead agency for the Hardest Hundred project, seeking funds to
expand the mobile outreach team to make contact with homeless persons on the streets
who are living with mental illness, drug and alcohol abuse, or who are dually diagnosed,
to address their immediate needs.
• Through Community Technology Alliance, chronically homeless clients of st. Joseph
Cathedral's Office of Social Ministry and other programs that serve the chronically
homeless are offered Community VoiceMail.
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Outreach to Veterans
• The Clara Mateo Alliance, located at the Veterans Administration (VA) building in Menlo
Park, conducts specific outreach to all of the V A programs and has special referral
systems with some of the programs (e.g., the VA Emergency Room) so that veterans can
be referred for an instant bed at the Clara Mateo shelter.
• The VA Palo Alto Health Care System has identified outreach to homeless veterans as
one of their "special emphasis" priority issues in its strategic plan and tracks its success in
meeting that goal in a strategic plan report card. It participated in the community's
application for funding under the Collaborative Initiative to End Chronic Homelessness,
which was jointly funded by HUD, the VA and the Department of Health and Human
Services (HHS).
• The County's Social Services Agency's Veterans Services program outreaches to veterans
who may be qualified for mainstream benefits.
• The County's Shelter Plus Care Program regularly conducts trainings for Veterans
Association case managers concerning the housing and services available through that
program so that those case managers can outreach to and properly identify and refer
clients to the Shelter Plus Care program.
• The HelpSCC on-line information and referral system identifies veteran services through a
quick search icon.
• Second Start outreaches to homeless veterahs, specifically targeting chronically
homeless veterans, through canvasses of areas frequented by this popUlation, including
street canvassing.
• InnVision and EHC link their clients who are veterans with resources through liaisons with
the VA, Order of the Purple Heart and the Downtown Veterans Center.
• MHAP, which provides information and referral and free legal representation to
individuals with mental health or development disabilities, regularly outreaches at the V A
and homeless shelters.
• Beginning April 2004, EHC, in partnership with the V A Homeless Coordinator, offered
veteran-specific services at the Homeless Services Center at Markham Terrace on
Tuesdays and Thursdays each week. The VA sends staff for eligibility determination and
enrollment in the VA system. EHC provides transportation to all veterans within the EHC
system to the service center on those days. In addition, EHC publicizes the availability to
all veterans through communication with other veteran service providers and non-profit
providers who serve veterans.
Outreach to Seriouslv Mentally III
• The Santa Clara County Shelter Plus Care program conducts trainings for case managers
at shelters, which serve the mentally ill, so that case managers will outreach to, and
appropriately identify and refer clients to, the Shelter Plus Care program.
• InnVision's Julian Street Inn, the only facility of its type in Northern California, provides a
day rehabilitation program for homeless individuals with serious mental illness. The
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Housing and Community Development Needs
Office of Empowerment and at the Self-Help Centers and Community Center. EHC also
provides targeted street outreach to homeless adults, including sex workers, women with
sexually transmitted diseases and women with high-risk partners, on the street, parks or
other neighborhood sites throughout Santa Clara County where the target population is
known to congregate and/or conduct high-risk activities.
•. Clients at InnVision's Cecil White Center, Georgia Travis Center, and Urban Ministry
receive on-site medical support through Gardner Family Health Network and Kaiser
Health Foundation, including care for HIV / AIDS. InnVision also works closely with the
County's mobile AIDS Van to provide on-site testing and counseling and Economic and
Social Opportunities to provide education and referral services to HIV / AIDS at-risk
individuals.
I
• MHAP, which provides information, referral and free legal representation to individuals
with mental health or development disabilities, regularly outreaches at Needle
Exchang'e, homeless shelters and transitional housing programs serving homeless people
with HIV/AIDS.
• Through Community Technology Alliance, Community Voice Mail is provided to clients of
AIDS Legal Services and Health Connections.
Outreach to Domestic Violence Victims
• Support Network for Battered Women (based in Mountain View), Asian Americans for
Community Involvement, Community Solutions, and Next Door Solutions to Domestic
Violence specifically outreach to homeless women Who have been the victims of
domestic violence.
• The HelpSCC on-line information and referral system identifies services for domestic
violence clients through a quick search icon.
• Second Start outreaches to homeless persons who have been victims of domestic
violence through the Second Start Neighborhood Self-Sufficiency Center and in
collaboration with CaIWORKS.
• EHC provides information through pamphlets and brochures targeted to homeless and
chronically homeless people who are victims of domestic violence. This information is
distributed through the Office of Empowerment and at the Self-Help Centers and
Community Center.
• InnVision's program, which serves women and children, includes domestic violence
prevention workshops as part of the curriculum. InnVision also has opened HomeSafe, a
transitional housing program designed specifically for survivors of domestic violence, in
Santa Clara and San Jo'se.
• MHAP, which provides information, referral and free legal representation to individuals
with mental health or development disabilities, regularly outreaches at homeless shelters
. and transitional housing programs, which serve victims of domestic violence.
• st. Joseph's Family Center outreaches to clients who are victims of domestic violence
through women's, men's and couple support groups, and by reserving ·some of its beds
for families that have fallen victim to domestic violence.
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• Next Door Solutions to Domestic Violence maintains a full-time advocate, located at the
CalWORKS office, to assist homeless battered women who are seeking welfare. Clients
are offered housing within the HomeSafe transitional housing system. In addition, the
local domestic violence agencies work with the County CalWORKS staff to provide
training on how to provide services sensitive to battered women.
Battered women who are seeking welfare are referred by the County's Social Services Agency
to the Support Network for Battered Women for services such as counseling, legal support and
emergency shelter. In addition, the Support Network and other local domestic violence
agencies have worked with the County CalWORKS staff to provide training on how to provide
services sensitive to battered women. Many welfare workers have attended the Support
Network's 40-hour volunteer training.
Catholic Charities has a Memorandum of Understanding to receive referrals from Next Door
Solutions to Domestic Violence services to help house survivors of domestic violence that are
singles or single parents with small children at Catholic Charities' Shared Housing Program.
• Through Community Technology Alliance, Community VoiceMail is offered to clients of
InnVision's Homesafe/Next Door Santa Clara and Homesafe San Jose, which specifically
target homeless domestic violenceciients.
Outreach to youth
• The Homeless youth Network's six agencies (Alum Rock Counseling Services, Bill Wilson
Center, Community Solutions, Emergency Housing Consortium, Legal Advocates for
Children and Youth, and Social Advocates for youth) outreach to the homeless youth of
Santa Clara County and are undertaking to evaluate the adequacy of existing outreach
efforts and respond accordingly.
• CasaSAY, a shelter for homeless/runaway youth in Mountain View, provides short-term
shelter and counseling to homeless youth. CasaSA Y is part of the Safe Place Program,
which operates in Mountain View and provides community outreach to homeless and
at-risk youth.
• Unity Care Group outreaches to youth who are homeless after discharge from
mainstream institutions such as foster care, group homes and the juvenile justice system,
to provide services and transitional housing.
• The Bill Wilson Center outreaches to homeless youth through bilingual outreach workers
who go out into the community on a daily basis, at varying hours to places where youth
"hang out," and distribute literature on health/education issues and resources available.
They encourage homeless/runaway youth to come to the Bill Wilson Drop-In Center for a
safe place and for services.
• EHC's Our House has a Street Outreach team that provides street-based supportive
services, information and referral to runaway, abandoned and street-based youth four
weeknights and one weekend night. It also provides a Drop-In Service Center, 10 beds of
emergency shelter, and a 12-bed transitional living program for youth who are ready to
move on to stability and independence.
• The Shelter Bed Hotline lists emergency shelters for youth.
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• Through Community Technology Alliance~ Community VoiceMail is offered to clients of
the Bill Wilson Drop-In Center and Social Advocates for Youth, which specifically target
homeless youth clients.
• The HelpSCC on-line information and referral system identifies services for youth through
a quick search icon.
• Second Start outreaches to the homeless youth through its outreach programs (including
Pine Hill School), at shelter facilities and group homes, in collaboration with government
agencies, and through street canvassing.
• Pathway Society, Inc. outreaches and provides substance abuse treatment and
prevention services to youth.
• The Mexican American Community Services Agency (MACSA) operates three youth
centers and outreaches to and engages youth in the Continuum of Care.
• Lucile Packard Children's Hospital Mobile Medical Van provides medical care and
mental health treatment for runaway and homeless youth at the Bill Wilson Center and
EHC's Our House Youth Shelter and Drop-In Day Services Center.
• Santa Clara Unified School District provides outreach to children of homeless and near-
homeless families to assure their attendance at school. The District also provides career
training and retraining for homeless individuals and serves about 500 individuals each
year.
Outreach to Seniors
• A number of agencies provide services to at-risk seniors and carry out outreach to this
population group. Some of the services include free bags of food from Second Harvest
Food Bank, legal assistance from Senior Adults Legal Assistance and hot noontime meals
at the Senior Center. Brochures and presentations to senior groups and agencies that
work with seniors are the primary means of reaching out to seniors.
• MACSA operates an Adult Day Health Care Senior Center and outreaches to and
engages seniors in the Continuum of Care system.
• Community Technology Alliance's HelpSCC website (www.helpscc.org) provides
information on senior services, as well as mainstream services available to seniors.
• InnVision's Georgia Travis Center operates a daytime Senior Drop-In Center that provides
information and referral assistance, meals, showers, safe haven, and case management
to this at-risk population.
• Next Door Solutions to Domestic Violence through its specially designed program to serve
older victims of domestic violence provides outreach and housing (through HomeSafe)
to older homeless victims.
Street Outreach
• Currently, mobile services and street outreach is provided through Health Care for the
Homeless, InnVision's Safe Haven and Urban Ministry Drop-In Center, EHC's Youth Shelter
City of Palo Alto 71 2005 -201 0 Consolidated Plan
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•
Housing and Community Development Needs
Outreach, Bill Wilson Center's outreach workers to youth, Alliance for Community Care, a
group of volunteers called the River Rats who outreach along the River, and the Police
Departments of San Jose, Mountain View, Palo Alto and Los Altos.
Frequent walking assessments are conducted by both the City of San Jose and a
representative· of the County of Santa Clara's Homeless Coordinators with the
participation of local police departments, in order to locate the "invisible homeless" who
may be encountered camping along the numerous creeks or parks that network the
county, or who may be living in their cars or makeshift dwellings located in agricultural
areas.
Proposed Outreach Programs
The Northern Santa Clara County and Southern San Mateo County "Off the Streets Team" has
designed and is seeking funding for a multi-disciplinary street outreach team to provide
immediate services to and engage chronically homeless people in the Continuum of Care,
especially links to Santa Clara County's planned Housing First permanent housing project.
Funded by a grant from the Schwab Foundation, EHC is lead agency for a cOnsortia of providers
that includes InnVision and the Housing Authority of the County of Santa Clara to develop a
"Housing First" approach to the development of housing and services for families, and with
another grant from the Schwab Foundation is looking at adopting a "Housing First" approach for
single adults. These approaches include targeted outreach to chronically homeless people.
Emergency Housing Consortium, working with Contact Cares of Santa Clara County, is training
mental health consumers/peers to be telephone counselors On a consumer-rUn "Warm Line" (not
open 24 hours like a "hot line", but as staffing allows). This phone line provides caring telephone
support and information and referral to people with SMI who want to speak with a peer, not a
professional.
Supportive Services
For many homeless people, a key to surviving without housing, as well as to accessing housing, is
the supportive services provided by.the Continuum of Care system. A term that covers a wide
range of activities, from transportation to health care, supportive services are provided by most
agencies, and received by the vast majority of clients.
A variety of services are in place to support homeless persons and families. These include case
management. food, alcohol and drug treatment. mental health services, services for veterans,
legal services, and employment and training services. These services are provided by most
emergency shelters. All transitional housing and permanent supportive housing programs offer
supportive services that stabilize tenancy and foster self-sufficiency. Homeless persons access
and receive assistance directly by agency staff for programs listed in this section. Agencies
providing these services share information and learn about other agencies through participation
in a Collaborative that holds forums and meetings and updates members on legislative and
funding issues.
Programs in Santa Clara County that provide supportive services are grouped in the following
subcategories: 1) Drop-In Centers, 2) Case Management, 3) Life Skills, 4) Alcohol and Drug
Abuse Treatment. 5) Mental Health Treatment/Counseling Support. 6) AIDS-Related Treatment, 7)
Non-AIDS-Related Treatment. 8) Education, 9) Employment Assistance, 10) Child Care/Children's
Programs/Parenting, 11) Transportation, 12) Food and Other Basic Services, 13) Legal
City of Palo Alto 72 2005 -2010 Consolidated Plan
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Rights/Benefits Advocacy, and 14) Other Supportive Services. Proposed programs are also
described.
Drop-In Centers
• InnVision's Urban Ministry of Palo Alto has a drop-in center that offers case management,
transportation assistance, meals, and linkages to shelter.
• The Bill Wilson Drop-In Center and EHC's Our House Youth Drop-in Service Center, located
in downtown San Jose, provide services to homeless, runaway and street youth ages 13-
21. Services include basic needs, individual and group counseling, HIV / AIDS prevention,
housing assistance, pre-employment training, job counseling, job placement services,
legal services and health care.
• EHC's Reception Center provides access to health care and social services, hot meals,
educational support and recreation areas.
• EHC's Markham Terrace opened a drop-in Community Center that houses the City of San
Jose's services to homeless individuals. Some of the available services include health
services and a Dual Diagnosis Recovery Support group. EHC's Homeless Services Center
at Markham Terrace provides access to meals, financial assistance, housing and job
location, and other kinds of assistance.
• EHC's Our House in downtown San Jose provides a drop-in day services center for
runaway and homeless youth, ages 11-21.
• InnVision's recently renovated Georgia Travis Center meets the special needs of
homeless women and children who seek respite from the streets during the day. The
center meets such needs as showers, laundry facilities, breakfast and lunch, hygiene
supplies, lockers, health care, case management, and information and referral to other
community services. Women participate in self-help workshops, while children play in the
indoor and outdoor play areas. Clients also have access to a computer lab.
• InnVision's Cecil White Center is a day program that provides basic human services to
the general homeless population: a clothes closet, medical care, showers, and a hot
evening meal. Participants also have access to case management, alcohol and drug
counseling, housing and employment assistance, legal aid, a message center,
telephone and mailbox, as well as referrals to other agencies.
• InnVision's Safe Haven provides individualized day services, including life skill instruction,
case management, and other group and individual activities.
• InnVision's Urban Ministry drop-in center provides case management, meals, medical
services, money management, rental and utility assistance, transportation assistance,
and linkages to food and shelter.
• st. Vincent de Paul Society, at three locations in northern, central and southern Santa
Clara County, provides clothing, vouchers, emergency financial assistance, food,
furniture, household items, information and referral, counseling and education.
• Santa Clara Adult Education is available to assist drop-in clients with case management,
employment assistance, education and training, and referrals to housing, social services,
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meals, and health care. It has on-line computers and a clothes closet for job interviews.
Telephone, copier and fax services are also available.
• MACSA operates an Adult Day Health Care Senior Center and three youth centers in
Alviso, Morgan Hill and Gilroy.
• St. Joseph Cathedral's Office of Social Ministry drop-in center provides a mailing address,
telephone service, medical care, substance abuse services, food, and job search·
information and referral.
Case Management
• Every homeless housing provider in the County's Continuum of Care, except for
temporary shelters, provides clients with case management services.
• Community Technology Alliance offers technological tools that allow service providers
and shelter staff to better concentrate on assisting clients without duplication of
technology or effort. Tools provided are Community VoiceMail, the Shelter Bed Hotline,
the Section 8 Housing Listing, and a searchable website of all health and human services
(wvvw.helpscc.org), a subsidized housing website (wvvw.HousingSCC.org) and the Bay
Area Homeless Alliance (www.baha.org). Planned projects include the Homeless
Management Information System (HMIS).
• Santa Clara Adult Education case management includes intakes, assessment, goal
setting, life skills training, employment assistance and education and training. The staff
provides long-term follow-up where possible and often is the constant for clients moving
from shelter to shelter.
• Next Door Solutions to Domestic Violence provides case management to all homeless
victims of domestic violence who reside at the HomeSafe locations. All local domestic
violence programs provide case management to homeless victims through their
emergency shelters.
Life Skills
• InnVision's Urban Ministry of Palo Alto provides homeless people with case management,
referral, money management, job training, life skills training, transportation, meals,
groceries, clothing and other basic services.
• Gardner Family Health Network's Family Wellness Classes provides intensive parent
education and ongoing support to families enrolled in the Women, Infants and Children
(WIC) federal program.
• EHC staff in the Homeless Services Center provides life skills training and coaching to
clients served in the center.
• InnVision's The Family Place educates mothers to prevent instances of child abuse.
• Santa Clara Adult Education provides life skills training, money management, conflict
resolution, communication skills, stress reduction, basic computer skills and budgeting at
many local shelters.
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• Consumer Credit Counseling Services provides assistance with finances, budgeting and
credit issues at homeless service providers' sites.
• Mission College Corporate Education and Training provides information technology
classes at homeless service providers' sites.
• City Team Ministries in San Jose provides life skills training, along with English as a Second
Language lESt) and literacy classes.
Alcohol and Drug Abuse Treatment
• The Santa Clara County Department of Alcohol and Drug Services, in partnership with
several community-based and County providers, provides assessment, detoxification
services, residential treatment, outpatient treatment, dual diagnosis services,
methadone/drug-replacement therapies, transitional housing, and prevention services.
• The CalWORKS Community Health Alliance, jointly operated by the County Social
Services Agency and the County Department of Alcohol and Drug Services, provides
CalWORKS clients and their family members with substance abuse individual and family
counseling, substance abuse treatment. case management. parenting classes and
support groups.
• . The Salvation Army Adult Rehabilitation Center provides a six-month residential
rehabilitation program for men suffering from chemical dependence.
• Catholic Charities provides case management, addiction/dual diagnosis services,
support groups, medication assessment and support, and individual, group and family
outpatient therapy.
• Alcoholic Anonymous and Narcotics Anonymous conducts substance abuse workshops
at homeless service providers' sites.
• City Team Ministries in San Jose operates a nine-to 24-month Recovery Program for
homeless men including ·a learning center, career employment services, health and
dental clinic and personal counseling.
• Pathway Society, Inc., outreaches to and provides substance abuse treatment and
prevention services to youth.
Mental Health Treatment/Counseling Support
• The Santa Clara Valley Health and Hospital System, Mental Health Department, provides
mental health services including crisis intervention and treatment.
• Catholic Charities provides case management, addiction/dual diagnosis services,
sl)pport groups, medication assessment and support, Department of Rehabilitation
mental health employment services, and individual, group and family outpatient
therapy.
• The CalWORKS Community Health Alliance, jointly operated by the County Social
Services Agency and Santa Clara County Department of Alcohol and Drug Services,
City of Palo Alto 75 2005 -2010 Consolidated Plan
Housing and Community Development Needs
provides CalWORKS clients and their family members with mental health individual and
family counseling, case management, parenting classes and support groups.
• ACT for Mental Health, Inc. Interlinks Self-Help Center/Fireside Friendship Club provides
mental health services. .
• Adult and Older Adult System of Care provides mental health services to adults with a
serious mental illness.
• Alliance for Community Care provides mental health and case management services for
adults and seniors including psychiatric assessment.
• Alum Rock Counseling Center provides a 24-hour multilingual crisis intervention services to
troubled, runaway or delinquent teens. It also provides counseling, support groups,
victim assistance counseling, and parent education.
• Next Door, Solution to Domestic Violence's Child Care Integration program provides
comprehensive counseling services to the victims of domestjc violence and their
children.
• Mickey's Place provides children's mental health and counseling services, including
services at homeless service providers' sites.
• Julian Street Inn provides semi-supervised emergency shelter/housing for SMI homeless
adults, including meals, clothing, telephone/mail service, and linkages to financial and
medical benefits and referrals to mental health service teams.
• Bill Wilson Center's School Outreach Counseling program provides counseling in the
Santa Clara Unified School District, addressing issues such as depression, suicidal
tendencies, problems at home, poor school performance, drug prevention and sexuality.
Part of the program helps recently immigrated Vietnamese youth and their families
adjust to their new environment.
• Bridge Counseling Center provides activities for children and youth at homeless service
sites and provides mental health services.
• EHC's Our House provides mental health clinical counseling and support groups for
increasing numbers of runaway and homeless youth who have mental health issues.
EHC's Boccardo Reception Center and Fifth Street Transitional Housing provide clinical
counseling and support groups for homeless single adults.
• The Billy de Frank Center provides support by referral for gay, lesbian or bisexual youth.
• City Team Ministries in San Jose provides sexual abuse recovery and healing counseling
to homeless people.
• Next Door (formerly WATCH -Women and Their Children's Housing) is a second-step
clinical treatment and transitional housing program for formerly battered women and
their children. The program provides up to three years of counseling, subsidized housing
and support services to women and their children. The average stay in the program is
two years before women and their children move on to permanent housing.
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AIDS-Related Treatment
• Health Connections provides nursing and social work case management, as well as
benefits counseling, a food basket program and emergency financial assistance to
individuals and families living with HIV / AIDS in Santa Clara County. It manages the City of
San Jose's federal Housing Opportunities for Persons with AIDS (HOPWA) funds. This
organization connects individuals and families with community services and resources
that can help make their lives easier. Health Connections maintains a speaker's bureau
that conducts education about HIV, including prevention in local schools.
• The Santa Clara Valley Health and Hospital System provides a mobile health van that
provides HIV / AIDS testing at EHC's Boccardo Reception Center.
• The Santa Clara County HIV / AIDS Project provides HIV / AIDS education and prevention
services at homeless services sites.
• The Santa Clara County Public Health HIV / AIDS Prevention and Control Program (HAP) is
charged with managing more than $8.5 million in federal, state and local funds
allocated for the provision of a comprehensive spectrum of services targeting persons at
high risk for, infected with and/or affected by HIV /AIDS.
Non-AIDS-Related Treatment
• May View Community Health Center, with clinics in Palo Alto and Mountain View,
provides low-cost medical care for uninsured or underinsured low-income persons in the
community.
• RotaCare Bay Area, Inc., provides free medical care on a walk-in basis to migrant,
homeless and uninsured persons.
• The Santa Clara Valley Health and Hospital System provides an urgent care and family
practice clinic at the Boccardo Reception Center.
• The Children'S Dental Initiative Mobile Dental Clinic is a dental office on wheels that
serves children in need across Santa Clara County.
• Health Care to the Homeless provides case management, health education and primary
health care to homeless persons.
• Lucile Packard Children's Hospital operates a mobile health clinic, the Teen Van that
provides free, comprehensive health care to homeless or uninsured teens and young
adults. .
• The Gardner Family Health Network provides primary health and dental care through its
mobile outreach van at the armory shelters and other sites throughout Santa Clara
County. In addition, theNetwork has five walk-in clinics located throughout the County.
• Palmer West Chiropractic provides free chiropractic screenings and treatment at
homeless services sites.
• Planned Parenthood provides family planning, health education and care at homeless
services sites.
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Housing and Community Development Needs
• Santa Clara Adult Education provides education and employment services, including
vocational classes.
• Goodwill of Santa Clara County's Institute for Career Development provides traihingin
office technology and computers, and job placement services.
• The Center for Employment Training (CET), a nonprofit vocational education institute,
provides job training and human development for very low-income people, including
youth (age 17-21) that have been emancipated out of the foster care system and are
homeless. Services are targeted at the highest risk emancipated youth with a
combination of barriers to success, such as homelessness, lack 'of high school diploma
and welfare dependence. Youth receive case management, stable housing,
vocational skills, employment, a high school diploma and follow-up services to ensure job
retention. CET and its collaborative partners provide transitional housing during the
training' period and three months after so that permanent stable housing can be
obtained.
• St. Joseph Cathedral Office of Social Ministry provides job search classes focusing on
barriers that prevent a homeless individual from finding employment services, including
transportation, California Department of Motor VehicleslD vouchers, birth certificates, e-
mail, voice mail, resumes, one-on-one employment search, and a place to receive mail.
• San Jose First Community Services offers a job center, life skills classes and monthly food
basket program.
• In collaboration with San Jose First Community Services, InnVision provides job
development assistance and job-related financial assistance at the Montgomery Street
Inn.
• The Indochinese Resettlement and Cultural Center's Welfare Hotline Service provides
supportive services to individuals to retain employment.
• Catholic Charities Focus for Work provides employment assessments, training,
placement, mentoring and retention services that are targeted to adults with disabilities,
'including dual diagnosis.
• The Santa Clara County Superior Court's "Outreach Court" is program that helps remove
barriers to wprk and eligibility for CalWORKS and other entitlements., It is held monthly at
EHC's shelter to provide assistance to homeless people with outstanding criminal
misdemeanor warrants.
• EHC's Homeless Services staff provides job listings and employment assistance, including
practice interviewing, resume writing, and access to computer labs to practice skills.
Future planned services include workshops on employment and computer skills.
• The California Employment Development Department provides job search and
placement assistance.
• The Northern California Service League, in collaboration with the California Department
of Corrections, provides job training and vocational services to parolees, teaching in an
environment that emphasizes the foundation of ongoing recovery from substance
abuse.
City of Palo Alto 79 2005 -2010 Consolidated Plan
Housing and Community Development Needs
• The Santa Clara/San Benito County Head Start program provides childcare
development program with support services and parent involvement programs at
homeless service sites.
• MACSA makes referrals and provides information, resources and recreation programs for
youth.
• EMQ Children and Family Services, a non-profit organization based in Campbell, offer the
Kids Are Special parenting programs and on-site programs for children dealing with
substance abuse issues.
• The Community Child Care Council of Santa Clara County, the "4C Council," provides
childcare resource and referral, childcare payments to providers on behalf of qualified
families, and food subsidy payments to family day care providers who provide nutritious
meals to children. It also offers child development-training classes to support existing and
new childcare providers.
Transportation
• InnVision's Urban Ministry of Palo Alto assists homeless people with transportation.
• The County's Office of Affordable Housing and the Valley Transportation Authority
sponsors the Homeless Transit Pass Program, which provides discount public transit tickets
to homeless people, thereby enabling them to access services, employment and
housing opportunities while also increasing the number of public transit riders. This
program is administered by case managers at shelters and other homeless service
programs.
• The Guaranteed Ride Program offers CalWORKS participants and other homeless
individuals up to 60 door-to-door rides to work-related destinations, including job
interviews, child care and school. The County's Social Services Agency, the Valley
Transportation Authority, and Outreach, a community-based non-profit. co-sponsors this
program.
• Outreach and Escort provide transportation assistance to homeless people.
• EHC's Boccardo Reception Center operates a free shuttle that stops at the shelters
located in or near downtown San Jose and transports homeless people to bus hubs and
to mainstream services sites, such as Social Services Agency offices, job training sites, V A
Clinic, etc.
• Health Connections provides transportation services to persons with HIV / AIDS.
• Catholic Charities provides their housing clients with no-cost passes usable on all public
transportation within the County.
Food and Other Basic Services
• InnVision's Urban Ministry of Palo Alto offers a food closet and six hot meals a week.
• The Homeless Care Force provides hot meals, clothing and personal care items
throughout the County.
City of Palo Alto 81 2005 -2010 Consolidated Plan
Housing and Community Development Needs
• Sacred Heart Community Service's Community Food Program provides food boxes to
families and individuals.
• A collaborative of homeless-targeted and mainstream food providers have published
and disseminated a brochure setting forth, in an easy-to-follow format, all food/nutrition
opportunities for homeless people in the area.
• The HelpSCC website (www.helpscc.org), the County's comprehensive information and
referral database, provides information on agencies that offer food and other basic
services, including agency contact information, program descriptions and eligibility
requirements.
• South Hills Community Church provides a variety of basic needs services, including food
and emergency financial assistance.
• st. Joseph Cathedral Office of Social Ministry provides food bags, lunch bags, nutrition
drinks and hygiene packs.
• st. Steven's Episcopal Church provides food, phone use, mail and message center.
• Second Harvest Food Bank provides nutrition education, as well as discounted and free
food to EHC's mass meal program. In addition, they provide monthly food boxes to each
family at each of EHC's family shelter sites.
• ... Catholic Charities Shared Housing Program offers an altemative to homeless ness by
facilitating home-sharing opportunities for single adults and single parents with one or
two children with people willing to share their home with another family.
• The University of California Cooperative Extension provides nutrition education, meal
planning and cooking, food budgeting and shopping tips to homeless people at
homeless service providers' sites.
• City Team Ministries in San Jose provides hot meals, safe shelter, showers, and clean
clothing.
.• Health Connections maintains a food basket program, which provides food and
nutritional supplements to low-income people with HIV. It also provides home-delivered
meals to those who are homebound.
• st. Justin Community Ministry provides food assistance to poor families and individuals. A
thrift shop with clothes and other items is available next door from St. Justin. The Ministry
serves over 2,000 individuals annually.
Legal Rights/Benefits Advocacy
• The Public Interest Law Foundation of Silicon Valley's Mental Health Advocacy Project
provides free legal representation to individuals with mental health or developmental
disabilities. Objectives include securing appropriate disability benefits and related
insurance coverage, maintaining quality of care received in the mental health and
development disability-related services, obtaining reasonable accommodations to
enable persons with disabilities to find housing, and preventing homeless ness through the
protection of legal rights. Other divisions of the Public Interest Law Foundation provide
legal services for AIDS patients, fair housing cases, and children and youth.
City of Palo Alto 82 2005 -2010 Consolidated Plan
Housing and Community Development Needs
• Community Homeless Alliance Ministry works with homeless families and individuals to
advocate for housing.
• The Pro Bono Project of Santa Clara County provides legal services to homeless persons.
The Project's General Assistance Project helps those who are eligible for General
Assistance with benefits applications. Its Homeless Advocacy Project provides legal
advocates to those who cannot afford housing by staffing legal clinics in homeless
shelters.
• Catholic Charities Immigration Legal Services program provides legal services in
connection with immigration issues.
• The International Rescue Committee's Citizenship and Immigration Legal Services
program provides immigration legal services, including to homeless people.
• Sacred Heart Community Service's Services to Immigrants program provides citizenship
services, immigration and naturalization assistance, information and referral· and legal
assistance for seniors.
• Santa Clara University's Legal Assistance for Low-Income Immigrants provides free legal
services to low-income persons in immigration, employment, consumer and small
business mdtters.
• East San Jose Community Law Center is the lead agency of a nine-agency group which
presents workshops and community education materials for CalWORKS participants to
increase their awareness of their employment rights, including development of practical
ways to resolve employment-related legal issues and maintain employment.
• The Silicon Valley Independent Living Center's (SVILC) Benefits Services Department offers
counseling to people who receive SSI and/or SSDp2 and who are considering returning to
work. SVILC is a member of the Tri-County Benefits Planning, Assistance and Outreach
'(BPA&O) Project, which is funded by the Social Security Administration (SSA). Benefits
counselors at SVILC are certified by the SSA, and provide accurate and important
information on how change in earnings might affect Social Security and California State
benefits. Benefits counselors work with consumers to develop a return-to-work plan that
will protect essential benefits during the return-to-work process.
• The Santa Clara County Office of Human Relations coordinated a program to provide
free citizenship services to qualified immigrants living in Santa Clara County, in response
to the 1996 Welfare Reform Act provisions requiring legal immigrants to become U.S.
citizens to retain federal benefits. The Asian Law Alliance has been collaborating with
other agencies like CET and Catholic Charities to provide legal consultation and
representation to naturalization applicants.
• The Santa Clara Office of Human Relations facilitates a Dispute Resolution Program that
handles a wide array of disputes, including landlord/tenant disputes, on a pro bono
basis.
12 Supplemental Security Income (SSI) and Supplemental Security Disability Income (SSDI), the two primary
financial assistance programs for non-seniors operated by the U.S. Social Security Administration.
City of Palo Alto 83 2005 -2010 Consolidated Plan
Housing and Community Development Needs
Proposed Supportive Services
Through Community Technology Alliance's HelpSCC, the community continues to work towards
implementation of 2-1-1, the abbreviated phone number for access to information about health
and human services.
The Santa Clara Valley Health and Hospital System was awarded a HHS-HRSAgrant for its "New
Access Points: Health Care for the Homeless" program to expand health core services at seven
access points throughout the County. Services will be augmented at the clinic at the
Emergency Housing Consortium's Reception Center through a care coordination team, disease
management, benefits enrollment and support services linkages. Four primarY care clinics which
do not currently provide targeted services or areunderutilized by homeless persons will have
care coordination staff dedicated to homeless people. A dental van and mobile health van will
also be used provide services at homeless service providers' sites, as well as at homeless camps.
3.8.4 Continuum of Care System
As indicated above, the County has an extensive array of services that assist persons and
families that are homeless or are threatened with homelessness. However, only select programs
and services are part of the County's Continuum of Care system. The following three tables list
all programs in the Continuum of Care, along with the clientele served by the programs and the
number of people served or the bed capacity. Table 3-26 lists the emergency shelters in the
County. Table 3-27 shows the County's transitional housing facilities, and Table 3-28 shows the
permanent supportive housing facilities.
Continuum of Care Gap
Although the County and its incorporated cities provide a variety of programs to serve the
homeless, it is known that not all eligible individuals and families are being served. One reason is
that the programs in the Continuum of Care have inadequate capacity to serve all their
potential clients.
Table 1 provides an estimate of the gap between the capacity of the City's Continuum of Care
system and the actual demand for services. As indicated by the table, there are an estimated
81 homeless individuals and 10 persons in homeless families with children in Palo Alto whose
needs are currently not being met by the programs in the Continuum of Care. The ~omparable
figures for Santa Clara County are 5,388 homeless individuals and 684 persons in homeless
families. Detailed gap analysis by type of facility is not yet available. It should be noted that,
due to the methodology used in preparing the gap analysis, which is a requirement of HUD, the
estimated unmet needs of homeless individuals and families may not match the unsheltered
homeless figures in Table 1 .
City of Palo Alto 85 2005 -2010 Consolidated Plan
"1
Housing and Community Development Needs
3.9 Community and Economic Development Needs
This section of the needs assessment describes the City's non-housing community development
needs, including:
• Community facilities, public services, and special needs services;
• Infrastructure and neighborhood services;
• Accessibility for disabled persons; and
• Economic development.
The community development needs discussions are based on consultation with City staff;
interviews with service providers, members of the public, and public agencies; and'information
from various existing documents.
Table 3-29 lists the City's priorities for community development needs for which CDBG funds can
be used. These priorities are based upon the previous assessment of community development
needs in the 2000-2005 Consolidated Plan. The City has indicated that there are no significant
changes in these priorities for the 2005-2010 Consolidated Plan period.
Table 3-29
Community Development Need Priorities
Community Development Need Priority Need Level
Public Facility Needs
NeiQhborhood Facilities HiQh
Parks and/or Recreation Facilities HiQh
Health Facilities Medium
ParkinQ Facilities No Need
Solid Waste Disposal Improvements No Need
Asbestos Removal Medium
Non-Residential Historic Preservation Low
Other Public Facility Needs High
Infrastructure
Street Improvements No Need
Sidewalks No Need
Water Improvements No Need
Sewer Improvements No Need
Flood Drain Improvements No Need
Other Infrastructure Needs No Need
Public Service Needs
Handicapped Services High
Transportation Services High
Substance Abuse Services Medium
Employment Training High
Health Services HiQh
Other Public Service Needs HiQh
Anti-Crime Programs
Crime Awareness Low
Other Anti~Crime ProQrams Low
Youth ProQrams
Youth Centers High
City of Palo Alto 91 2005 -2010 Consolidated Plan
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Table 3-29
Community Development Need Priorities
Community_ Development Need Priority Need Level
Child Care Centers High
Youth Services High
Child Care Services High
Other Youth Programs High
Senior Programs
Senior Centers Medium
Senior Services High
Other Senior Programs High
Economic Development
Rehabilitation: Publicly-or Privately-Owned Low
Commercial/Industrial
CI Infrastructure Development Low
Micro-Enterprise Assistance Medium
ED Technical Assistance Medium
Other Economic Development Medium
Planning
Planning High
3.9.1 Public Facilities
The City has identified needs for improvements to existing facilities that serve lower-income and
special needs populations as defined by HUD. Among these improvements are the expansion,
modernization, rehabilitation, seismic retrofitting, and other safety-related improvements to older
community centers and other public buildings providing services to low-and moderate-income
residents. There is also a need to complete accessibility improvements in public facilities and
parks throughout Palo Alto to ensure compliance with the Americans with Disabilities Act (ADA).
A high priority has been' assigned to neighborhood facilities and parks and/or recreation
facilities, while a medium priority has been assigned to health facilities and asbestos removal.
Other facilities were assigned a Low priority or were determined to not be needed.
Recently, the City provided CDBG funds to Palo Alto Community Child Care for repainting the
exterior of the Ventura Community Center. The project was completed in June 2004. Funding for
support services to special needs populations also were a source of funds for facility
improvements. These improvements are described later in this section.
3.9.2 Infrastructure
The City has identified no needs associated with infrastructure improvements (sewer, water,
storm drainage, and other public works) that can be financed with CDBG funds. However, the
City notes that there is a need to complete accessibility improvements in streets and sidewalks
to ensure compliance with the ADA. The ADA is federal civil rights legislation that makes it illegal
to discriminate against persons with disabilities. Title 1\ of the ADA requires elimination of
discrimination in al\ public services and the elimination of architectural barriers in al\ publicly
owned buildings and facilities. It is important that public facilities are ADA-compliant to facilitate
participation among disabled residents in the community planning and decision-making
processes. California has also implemented its own accessibility requirements through the
California Code of Regulations, Title 24, Part 2. These regulations mandate that all publicly
City of Palo Alto 92 2005 -2010 Consolidated Plan
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Table 3-30
Major Employers of Palo Alto Residents J3
Employer Type of Business Employees
Stanford University Education 5,000+
Space Systems/LORAL Research and Development 3,000-5,000
Palo Alto Medical Foundation Health Care 1,500+
Foothill College Education 1,000-1 ,500
Agilent Technologies High Technology 1,000+
City of Palo Alto Government 1,000+
Hewlett Packard Company Electronics 1,000+
Roche Bioscience Pharmaceuticals 1,000+
V A Palo Alto Health Care System Health Care 1.000+
Wilson, Sonsini, Goodrich and Rosati Law 1,000+
Lucile Packard Children's Health Services Health Care 751-1,000
Palo Alto Unified School District Education 750-1,000
Stanford University Hospital Health Care 750-1,000
Source: Palo Alto Chamber of Commerce, November 2002.
Occupational Trends and Forecasts
In 2004, the Silicon Valley Manufacturing Group issued its economic and employment
projections for the Silicon Valley region, which includes Palo Alto.14 According to the Group's
report, the end to the technology-led boom of the late 1990s has spelled job loss and economic
contraction during the last several years. While this has alleviated pressure on housing and
congestion, the regional economy continues to be mired in a recession. Unemployment
countywide is entrenched well above the national average. Migration into Silicon Valley from
the rest of the United States has reversed, and population growth has slowed to pre-boom rates.
Firms have shed workers, improved their efficiency and begun to restore profitability, but there is
little reason to expect job growth and profits rivaling those of the late 1990s in the near future.
The Silicon Valley economy will show stronger signs of recovery in 2004, but will grow more slowly
than the national average through 2005 as it continues to restructure and redeploy capital after
the technology boom of the late 1990s.
The Group's report further states that the sizable layoffs that have been a feature of the last
several years, resulting in a decline of approximately 200,000 jobs, have slowed~ As firms retum to
profitability, hiring will increase, and the regional economy wi)1 begin to create new jobs.
Employment growth will resume in 2004, but at a slower pace than what the Valley experienced
in the late 1990s, adding roughly 40,000 jobs during the next two years. Employment growth will
accelerate thereafter, but it will likely take until 2010 for the economy to recover to its 2000
employment peak. Nonetheless, employment opportunities will be broad-based, with continued
robust growth in services and technology. It should be noted that this expectation of growth in
technology employment runs counter to recent trends in the local economy, in which layoffs in
the high technology sector have occurred.
13 Only institutions that employ 1,000 individuals or more are listed.
14 Silicon Valley Manufacturing Group. Projections 2004.
City of Palo Alto 95 2005 -201 0 Consolidated Plan
Housing and Community Development Needs
Economic Development and Revitalization Needs
The City has been involved in several activities associated with encouraging economic
development and increasing employment opportunities. These activities are described below.
Redevelopment
The California Community Redevelopment Law (California Health and Safety Code Section
33000 et seq.) allows cities and counties to establish redevelopment areas in order to eliminate
blight and the conditions that cause it. Under the Community Redevelopment Law,
redevelopment agencies are required to set aside at least 20 percent of tax increment revenue
generated from redevelopment projects for· activities that increase, improve or preserve the
supply of housing affordable to low-and moderate-income households.
The City of Palo Alto established a Redevelopment Agency (RDA) in 2001. Members of the City
Council act as members of the RDA board. In September 2001, the City designated the
Edgewood Shopping Center as a potential redevelopment area. A preliminary redevelopment
plan and environmental documentation was released for public review. However, du~ to
concerns over the potential loss of RDA revenue to the State because of its b.udget problems,
and due to the lack of participation by one property owner, the RDA decided to discontinue
further study of the proposed Edgewood redevelopment area in 2003. No other redevelopment
areas have been proposed.
Business and Economics Element
The City of Palo Alto adopted an economic development strategic plan, the Business and
Economics Element, as part of its Comprehensive Plan (General Plan) in 1998. The Business and
Economics Element addresses business-related policy issues at the citywide and sub-area levels.
The Element has been specifically prepared to ensure that the needs of Palo Alto's residential
neighborhoods are balanced with those of its business community. The goals of the Element
emphasize compatibility, diversity, growth, and flexibility. The goals, policies, and programs are
organized into three parts. The first has a citywide focus, the second addresses "Centers" like
University Avenue/Downtown and California Avenue, and the third addresses "Employment
Districts" like Stanford Research Park. The City's economic goals are summarized below.
Goal 8-1 A thriving business environment that is compatible with Palo Alto's residential
character and natural environment.
• Business arid corporate outreach.
• Creation of an Internet/e-commerce working group, and a study to quantify Internet
impacts on the local economy.
• Coordination of joint resident and business meetings.
• Establishment of an "early warning" system for at-risk businesses and economic sectors.
Goal 8-2 A diverse mix of commercial, retail and professional service businesses.
• Adopt a business ombudsman role for Economic Resources Planning, facilitating business
assistance and coordination with internal City departments.
• Participate in local and regional business organizations.
• Link businesses and neighborhoods with local, regional and state resources.
• Review financing options that include tools like assessment districts and business
City of Palo Alto 96 2005 -2010 Consolidated Plan
Housing and Community Development Needs
improvement districts to facilitate neighborhood and shopping center improvements.
• Develop an inventory of long-term vacant, unsafe and underutilized buildings and
parcels of land.
Goal 8-3 New businesses that provide needed local services and municipal revenues,
contribute to economic vitality, and enhance the City's physical environment.
• Develop, maintain and update Economic Resources Planning marketing materials and
City web site.
• Identify and analyze economic trends that will guide deCision making by policy makers.
• Facilitate public/private partnerships that leverage community resources.
Goal 8-4 City regulations and operating procedures that provide certainty and
predictability and help businesses adapt to changing market conditions.
• Active participation in interdepartmental initiatives and teams which address continuous
improvements to the development process.
• Establishment of benchmarks to measure the effectiveness of improvements to the
existing development process.
• Facilitation of the coordination between the business community and internal City staff
On critical local issues.
• Development of cross-departmental teams that address specific objectives.
• Implementation of the Business Cooperation Program.
Goal 8-5 Attractive, vibrant business centers, each with a mix of uses and a distincHve
character.
• Develop a citywide, targeted retail strategy.
• Participate in local and regional business organizations.
• Establish working relationships with local property owners, developers and retail center
managers.
• Explore City participation in business assistance such as facade improvement programs.
Goal 8-6 Thriving employment districts at Stanford Research Park, Stanford Medical Center,
East 8ayshore/San Antonio Road areo, and 8ayshore corridor that complement
the City's business and neighborhood centers.
• Work to enhance relationships and identify opportunities for public/private partnerships
between the local community and Stanford University and other employment centers.
• Focus business outreach activities to include companies that have large n.umbers of
employees.
• Work with Stanford Management Company on issues of mutual concern.
• Study measures that will enhance development in the Stanford Research Park and other
employment centers.
• Identify issues and establish outreach strategies to focus on the businesses located in the
East Bayshore/San Antonio Corridor.
• Encourage targeted commercial investment and activity along EI Camino Real.
Economic Resources Program
The Economic Resources Program (ERP) is one of the City's main tools for implementing the
Business and Economics Element. The ERP was initiated in 1992 and revised in 1999 to reflect the
1998 Comprehensive Plan update. Through the ERP, the City seeks to promote and retain
City of Palo Alto 97 2005 -201 0 Consolidated Plan
Five-Year Strategy
The City's Human Relations Commission, Office of Human Services, and Planning Division held
public needs hearings in which the lack of housing opportunities affordable to lower income
persons is consistently the number one priority. This priority is also consistent with the City's
Comprehensive Plan for the period 1998-2010 adopted by the Palo Alto City Council on July 20,
1998. The Comprehensive Plan emphasizes the need for more affordable housing for all income
levels, retaining the existing supply of housing, promoting housing diversity, and eliminating
discrimination in housing.
4.1 Methods for Identifying Priority Needs
Based on agency consultations that took place in November and December of 2004, and a
public hearing on unmet housing and non-housing community development needs in February
2005, individuals and organizations who participated in the consultation meetings and public
hearing recommended that the following priority needs be addressed in the 2005 -2010
Consolidated Plan:
• Subsidized assisted living and long-term care facilities, including the provision of
affordable housing, monitoring of medication, and in-home health care.
• Affordable housing for extremely low-and very low-income households.
• Advocacy and ombudsman services for seniors, particularly those at-risk of financial and
other abuse.
• Affordable in-home help and supportive services for seniors and persons with disabilities
to provide assistance with basic needs, living independently, and remaining in their
homes.
• Affordable housing options for adults living with aging parents.
• Housing and small group homes for people with dementia, Alzheimer's, and other
chronic, debilitative. conditions.
• Supportive housing that includes services for those who cannot live independently,
including single adults and individuals living in families.
• Affordable housing for low-wage workers, particularly those working in Palo Alto who
cannot afford to live in Palo Alto.
• On-going expenses faced by BMR owners (such as homeowner association dues) that
make it financially challenging to remain in BMR units.
• "Housing First" models are important resources to help keep people off of the streets. The
program allows participants to address services they need, such as literacy and
sUbstance abuse.
• Education programs for people to acknowledge the problem of chronic homelessness.
Homelessness and chronic homelessness affects people from all income levels.
City of Palo Alto 100 2005 -2010 Consolidated Plan
Five-Year Strategy
and allocation formulas do not change significantly.
implement the Consolidated Plan are as follows:
The primary sources of funding to
Community Development Block Grant:
CDBG Program Income:
Human Service Resources Allocation Process
City Affordable Housing Fund (Residential):
City Affordable Housing Fund (Commercial):
Total Estimate Funds, 2005 -2010:
$ .3,580,000
$ 300,000
$ 5,000,000
$ 4,000,000
$ 2,000,000
$14,880,000
Table 4-1 contains a list that summarizes sources of funding potentially available to the City and
its partners that may be used for implementing housing and community development activities.
The list in Table 4-1 is not intended to be all-inclusive, but to summarize some of the more likely
sources for which the City or others might qualify. Most of the sources described below require
competitive applications, and there is no guarantee of funding.
Table 4-1
Public and Private Resources Available
for Housing and Community Development Activities
Program Name Description Eligible Activities
Federal Programs (HUD)
~ommunity and Economic Development
• Housing
-rehabilitation
-acquisition
-home buyer assistance
-land acquisition
-land improvements
-infrastructure for housing
• Economic Development
-business assistance
-micro-enterprise
Community Grants awarded to the City on a formula basis -business rehabilitation
Development Block for housing and community development -infrastructure for business
Grant (CDBG) activities. • Homeless Facilities
-emergency shelter
-transitional housing
• Public Works and Facilities
-infrastructure
-community centers
-community facilities
• Public Services
-supportive services for
special needs groups
• Planningl Administration
City of Palo Alto 102 2005 -2010 Consolidated Plan
Program Name
Section 108 Loan
!Housing
HOME
Housing Opportunities
for Persons with AIDS·
(HOPWA)
Emergency Shelter
Grants (ESG)
Section 8 Rental
Assistance Program
Section 202
City of Palo Alto
Five-Year Strategy
Table 4-1
Public and Private Resources Available
fqr Housing ~nd Community Development Activities
Description
Loan guarantee to CDBG entitle~ent
jurisdictions for pursuing large caplt?l. .
improvement or other projects. Junsdl~tlons
must pledge their future CDBG allocations for
repayment of the loan. Maximum loan amount
can be up to five times the entitlement
jurisdiction's most recent approv~d annual
allocation. Maximum loan term IS 201ears.
Grants awarded on a competitive basis through
the State of California to non-entitlement
jurisdictions.
Grants awarded to the City of San Jose, which
may provide facilities· and services for persons
with HIV / AIDS from throughout Santa Clara
County.
Grants awarded to the City of San Jose to
implement a broad range of activities which
benefit homeless persons. Because of the
regional nature 0 f homelessness, ESG fun~s.
expended by San Jose could support faCilities
and services for homeless individuals and
families from Palo Alto.
Rental assistance payments to owners of private
market rate units on behalf of very low-income
tenants. Housing vouchers issues under the
Section 8 Program are administered by the
Housing Authority of Santa Clara County.
Grants to non-profit developers of supportive
housing for the elderly.
103
Eligible Activities
• Acquisition
• Rehabilitation
• Economic Development
• On-or off-site Improvements
w/new construction
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
New Construction
Acquisition
Rehabilitation
Home Buyer Assistance
Temporary Rental
Assistance
Acquisition/Rehabilitation
Construction
Information and Referral
Resource Identification
Operating Costs.
Rental Assistance
Supportive Services
Technical Assistance
Shelter Construction
Shelter Operation
Social Services
Homeless Prevention
Homeless Program Staffing
and Administration
Rental Assistance
Public Housing
Housing Opportunities for
People with AIDS
Moderate Rehabilitation
Shelter + Care
• Acquisition
• Rehabilitation
• New Construction
• Rental Assistance
• Support Services
2005 -2010 Consolidated Plan
Five-Year Strategy
Table 4-1
Public and Private Resources Available
for Housing and Community Development Activities
Program Name Description Eligible Activities
Grants to non-profit developers of supportive • Acquisition
housing for persons with disabilities, including • Rehabilitation Section 811 group homes, independent living facilities, and • New Construction
intermediate care facilities. • Rental Assistance
Section 8 Moderate Rental assistance for homeless persons in • Rehabilitation to provide
Rehabilitation (SRO) connection with the moderate rehabilitation of SRO-type housing single room occupancy (SRO) dwellings
Federal Housing FHA insures mortgages given through • Homebuyer Assistance Administration (FHA) conventional lenders for first-timehomebuyers.
Income tax credits available to.first-time
Mortgage Credit homebuyers for the purchase of new or existing • Home Buyer Assistance Certificate Program single-family housing. Local agencies (County)
make certificates available.
Homeless
• Homeless Assistance
Supportive Housing Grants to improve quality of existing shelters and (Acquisition, New
transitional housing; increase transitional housing Construction, Rehabilitation, Program facilities for the homeless. Conversion, Support
Services, Operations)
• Tenant-based rental
assistance
• Sponsor-based rental
Rental assistance for hard-to-serve homeless assistance
• Project-based rental Shelter Plus Care persons with disabilities in connection with assistance with or without Program supportive services funded from sources outside rehabilitation the program • Rental assistance in
conjunction with Section 8
Moderate Rehabilitation
Program for SROs
City of Palo Alto 104 2005 -2010 Consolidated Plan
Five-Year strategy
Table 4-1
Public and Private Resources Available
for Housing and Commullity Development Activities
Program Name Description Eligible Activities
• Shelter" Voucher
Federal Emergency · Food Voucher
Management Agency Grants to County organized to provide • Transportation
(FEMA) Emergency emergency homeless services, as Local • utility
Grants Recipient Organization (LRO). · Emergency Rent and
Mortgage Payment
state Programs
California Housing Finance Agency (CaIHFA)
CalHFA sells tax-exempt bonds to make below
Horne Mortgage market loans to first time homebuyers. Program · Home Buyer Assistance Purchase Program operates through participating lenders who
originate loans for CHF A purchase.
Below market rate financing offered to builders • New Construction
Multiple Rental Housing and developers of multiple-family and elderly • Rehabilitation
Programs rental housing. Tax-exempt bonds provide • Acquisition of properties
below-market mortgage money. with 20 to 150 units
• Section 8 assisted · BMIR 221 (d)(3)
• Section 236 Acquisition and preservation (including • Section 202 Preservation Acquisition rehabilitation) of affordable housing • Programs under Rent Program developments financed through specified Supplement Assistance federal program. • Section 515
• Section 42 of the Internal
Tax Revenue Code
Department of Housing and Community Development (HCD)
Mobile Home Park Funds awarded to mobile home park tenant • Acquisition
Conversion Program organizations to convert mobile home parks to • Rehabilitation resident ownership.
California Emergency Program covers a wide variety of homeless Housing Assistance assistance activities. • Homeless Assistance
Program (EHAP)
City of Palo Alto 105 2005 -2010 Consolidated Plan
Five-Year Strategy
Table 4-1
Public and Private Resources Available
for Housing and Community Development Activities
Program Name Description Eligible Activities
• New construction, · Rehabilitation
Assist the new construction, rehabilitation and • Acquisition and Multifamily Housing preservation of permanent and transitional rehabilitation Program rental housing for lower income households. • Conversion of
nonresidential structures to
rental housing
Tax credits available.to individuals and
corporations that invest in low-income rental • New Construction Low Income Housing housing. Tax credits sold to corporations and • Rehabilitation Tax Credit(L1HTC) people with high tax liability, and proceeds are • Acquisition
used to create housinQ.
Local Programs
Provides resources from four sources to support • New Construction (rental the City's housing programs: federal CDBG and ownership) Program, federal HOME Program, Residential • Conversion of non-Housing In-Lieu Fee (Housing Fund), and residential space to housing Palo Alto Affordable Affordable Housing Mitigation Fee (Commercial •. Rehabilitation Housing Fund Housing Fund) · Acquisition
• Transitional housing, group (Note: eligible activities are for non-federal homes, and other special portion of the Fund. COBG and HOME eligible
activities are shown separatelyoboveJ needs housing
• Acquisition
A nonprofit created through a cooperative • Rehabilitation
effort of the private and public sectors, including · New construction
Housing Trust Fund of the Housing Collaborative on Homelessness and • Predevelopmen~ costs
Santa Clara County Affordable Housing, the Silicon Valley • Supportive housing services
(HTSCC) Manufacturing Group, Santa Clara County, • Homeless and transitional
Community Foundation Silicon Valley, and a housing facilities
number of the county's cities • First time home buyer closing
costs
• Acquisition Funded from administrative fees from Mortgage • Rehabilitation Housing Bond Trust Revenue Bond issues and applicant and lender • New construction Fund fees paid to the Mortgage Credit Certificate • Homeless and transitional Pro-gram. housing facilities
The County and participating cities (including
Palo Alto) periodically issue tax-exempt bonds to • New construction Mortgage Revenue finance affordable housing activities. Bond • Acquisition Bonds proceeds are lent directly to housing • Rehabilitation developers/providers at below market rates of
interest
Private Resources/Financing Programs
City of Palo Alto 106 2005 -2010 Consolidated Plan
Five-Year Strategy
b. PRESERVATION OF EXISTING, LOWER INCOME RENTAL HOUSING
1. Preservation of existing, federally subsidized multi-family housing owned by profit
motivated investors
2. Acquisition and/or rehabilitation of existing multi-family rental housing, including
improvements to common areas
3. Acquisition and/or rehabilitation of existing buildings for· special needs
populQtions including shared housing and group homes
2. PUBLIC FACILITIES AND IMPROVEMENTS (Goal: 0-5% of Budget)
1 . Rehabilitation of existing facilities for use as shelters for the homeless or other special
needs groups
3. PUBLIC SERVICES (Goal: 0-15% of Budget)
1 . Services directly related to the housing needs of low-income persons
2. Homeless shelter operating costs and the provision of auxiliary or related services
3. Services which address other needs of low-income, elderly or special needs persons
4. ADMINISTRATION (Goal: 0-.20% of Budget)
1. Fair housing education, information, referral, advocacy, counseling and complaint
resolution
2. CDBG program administration and planning costs
3. Planning studies
4.3.1 Housing strategy
Table 4-2 summarizes the priority levels for housing needs among owners and renters, the
estimate of quantified need, and goals (in number of households assisted). The estimate of
quantified need is based on the HUD CHAS Table (Table 3-5) that shows the number oflow-and
moderate-income households by tenure, type, and income level, and the estimated
percentage, who had any housing problem (overpayment, overcrowding, and/or substandard
housing conditions). Estimated special needs population are based on HUD CHAS tables that
show the number of elderly and disabled households by income level who haa any housing
problem, plus other sources cited in the Special Needs section of Chapter 3. A breakdown of
special needs by category is provided in Table 4-3.
City of Palo Alto 108 2005 -2010 Consolidated Plan
Five-Year Strategy
FIVE-YEAR GOAL #2:
PRESERVE THE SUPPLY OF 72 UNITS OF AFFORDABLE RENTAL HOUSING AT IMMEDIATE RISK OF
CONVERSION TO MARKET-RATE HOUSING
It is also a high priority of the City to retain the existing affordable rental stock. The Terman
Apartment complex is the one federally subsidized rental project that is at-risk of converting to
market rate housing during the next five-year period. The current HUD Section 8 contract on the
92-unit Terman Apartment complex expires in 2005, of which 72 units are subsidized units. The
City's top priority will be to preserve these affordable rental units.
There are an additional 281 assisted rental units in four developments potentially at-risk for
conversion. However, these units are owned and operated by nonprofit entities and are
considered at low risk of conversion. The City does not anticipate needing to use its federal or
local funds to assist in the preservation of these units during the 2005 -2010 planning period.
FIVE-YEAR GOAL #3:
CONSERVE THE CONDITION OF EXISTING AFFORDABLE RENTAL HOUSING (150 UNITS)
Another priority is to keep existing, affordable rental housing in good condition. The
rehabilitation needs of older subsidized projects may include accessibility or energy
conservation improvements. Additionally, group homes or shared housing that provide
affordable transitional or permanent housing for very low-income persons and/or persons with
special needs often require major rehabilitation and/or repairs. Rental income in these projects
is often not sufficient to fully fund reserves for replacements or capital improvements. As these .
projects age, the needs become more acute.
Activities: Acquisition, rehabilitation, preservation, new construction, site clearance,
predevelopment costs, off-site improvement costs, rental assistance, and support services will be
used to address this need.
Persons to be Assisted: Extremely low-income renters (incomes less than 30 percent of median)
and very low-income renters (incomes less than 50 percent of median), both small and large
family households and other households.
• Families with children
• Homeless individuals and those "at-risk" of becoming homeless
• Persons with special needs (especially the mentally ill)
• Elderly persons
Programs and Resources
City Resources: Local public funds that are available for new rental housing units are the housing
mitigation funds in the City's commercial reserve. These funds can be used for land acquisition
and for construction costs.
Private Resources: The City will work with nonprofit housing developers to obtain the greatest
amount of private financing for rental developments, consistent with other objectives. The City
will assist project sponsors in obtaining financing from the Federal Home Loan Bank's Affordable
Housing Program (AHP) for example. The City will also work with local lenders to provide
construction financing and bridge financing for affordable housing projects.
City of Palo Alto 110 2005 -2010 Consolidated Plan
Five-Year Strategy
Persons to be Assisted: The City's Below Market Rate (BMR) housing program has been providing
home ownership opportunities since the program's inception in 1972, mainly to households
earning 80 percent to 100 percent of median income. Many of the "BMR" units are available at
prices that are affordable to CDBG-eligible, low-income buyers. However, low-income buyers
often do not have sufficient down payments or have more difficulty qualifying for a home
mortgage than higher income buyers. Thus, the lower priced "BMR" units are often sold to
moderate-income buyers. A different type of down payment or homebuyer assistance program
to help low-income buyers purchase more of the available units may be considered if a funding
source can be identified. The Mortgage Credit Certificate (MCC) program is also used in
conjunction with the BMR program to assist low and moderate-income persons in qualifying for
available units. Because of the difficulty in qualifying households earning 80 percent or less of
median income for homeownership, the City has established relatively modest goals for these
two programs.
Programs and Resources: City's Affordable Housing Fund (Residential and Commercial
components), Mortgage Credit Certificates, and the City's stock of new and resale "BMR" units
may be used to address this priority. Developers of new ownership projects of three or more
units are required to provide 10 percent of the units at lower prices. Small projects, or projects
where an on-site BMR unit would be infeasible, may be allowed to pay an in-lieu fee or provide
off-site BMR units. Resale prices are limited based on increases in the Consumer Price Index, so
that BMR units become relatively more affordable over time. The City contracts with the Palo
Alto Housing Corporation to administer the sales and re-sales of BMR units.
The City will work closely with Santa Clara County to continue the availability of the MCC
income tax credit assistance for moderate-income and low-income first time homebuyers in
Palo Alto.
Existing Home Ownersh,p Housing
FIVE-YEAR GOAL #6:
PROVIDE FOR REHABILITATION LOANS TO LOW-AND MODERATE-INCOME SINGLE FAMILY
HOMEOWNERS IN. EMERGENCY OR CRISIS SITUATIONS ONLY
Activities: Provide for the rehabilitation of existing single-family homes and provide support
services.
Persons to be Assisted: All CDBG eligible, owner occupied households may be assisted, but the
target group is between zero and 50 percent of the countywide median family income.
Programs and Resources: CDBG program income and annual CDBG entitlement funds·. The City
will only fund the rehabilitation of owner occupied, single family housing where there is an
urgent need or serious health and safety problems. This activity is limited to very low-income
homeowners. Funding would be from loan repayments on previous rehabilitation loans. Most of
the City's owner occupied, single family housing stock is in standard condition and occupied by
households with incomes that exceed 80 percent of median. Generally, the housing problem
faced by low-income homeowners is the cost of the housing, not the condition of the unit.
However, there are still a significant number of low-and moderate-income, primary senior,
homeowners, who may need assistance with emergency repairs. 2000 CHAS data indicate that
there are fewer remaining homeowners who may be eligible for this program. The City funds
Economic and Social Opportunities with CDBG to provide minor home repairs and accessibility
upgrades to low-income residents.
City of Palo Alto 112 2005 -2010 Consolidated Plan
Five-Year Strategy
FIVE-YEAR GOAL #:8:
PROVIDE ASSISTANCE AND SUPPORTIVE SERVICES TO LOW AND VERY-LOW-INCOME PALO ALTO
RESIDENTS TO KEEP THEM FROM BECOMING HOMELESS (8,000 INDIVIDUALS AND PERSONS IN
FAMILIES).
Activities: Both direct and indirect assistance to lower-income households at risk of homelessness
will be provided. Activities that Palo Alto funds that may prevent homeless ness are:
• Childcare subsidies for low-income families, Palo Alto Community Child Care, -annual
contract with general funds;
• Landlord/Tenant Mediation, Project Sentinel, annual contract with general funds
• Brown Bag Nutrition Program, Second Harvest Food Bank, annual contract with general
. funds;
• Senior Home Repair Program, Senior Housing Counseling, Avenidas; annual contract with
general funds;
• Senior Nutrition Program, La Comida, annual contract with general funds;
• Barker Hotel and Alma Place Counseling Program, Palo Alto Housing Corporation, annual
contract with COBG funds; .
• Health Care Services, Mayfield Community Clinic, annual contract with general funds;
and
• Rental and mortgage assistance program for at-risk homeless, American Red Cross,
annual contract with general funds
Persons to be Assisted: Individuals and families with children with low and very low-incomes (0-50
percent of countywide median family income).
Programs and Resources: COBG and City General Funds, foundations, churches, state
Emergency Shelter Grants, and Stewart B. McKinney Homeless Assistance Funding.
Emergency Shelter with Outreach and Assessment Services
There are currently no permanent emergency shelter beds in the City of Palo Alto, although the
Urban Ministry of Palo Alto does operate a 15-bed rotating church shelter program. A high
priority will be placed on supporting the existing shelters and transitional housing programs in
neighboring jurisdictions that serve Palo Alto residents, or the creation of additional programs
and/or units. The provision of additional outreach services to the homeless mentally ill is also
seen as a high priority in this area. The City of Palo Alto will place a high priority on assessment
and other supportive services for the homeless population.
Another high priority is to support the Opportunity Center; a mUlti-service facility that will provide
coordinated supportive services to the homeless or those at risk of becoming homeless. In
addition, it will provide 89 units of affordable housing for individuals and families. The
Opportunity Center was funded in part with COBG funds and the City will continue to provide
support to the Center when it is complete. The Opportunity Center broke ground in May 2004
and is expected to be completed in the summer of 2006.
The day centers serve in general as a "one-stop shopping" resource center for an array of
services. Surveys of people in the suburban and rural areas attest to the need for the day
centers. Many needy residents do not know how to access shelter information or are unaware
of the shelter hotline phone number. Day centers address this problem, as well as increase
access to services not currently accessible to the suburban and rural homeless populations.
City of Palo Alto 114 2005 -2010 Consolidated Plan
Five-Year Strategy
Permanent Affordable Housing
The 26-unit Barker Hotel and the 107-unit Alma Place residence hotel provide permanent
housing for low and extremely low-income persons. The studio units are targeted to extremely
low-and very low-income downtown workers. 'There is a long-waiting list for available units and
a very low turnover rate. This demand attests to the need for additional units in this price range.
A high priority is placed on the development of new units. This goal is included in the housing
section of this report.
The County's Shelter Plus Care Program provides five years of Section 8 rental assistance to
homeless persons with disabilities who are willing to participate in case-managed rehabilitation
programs. There are 15 available slots in Alma Place and the Barker Hotel. .
FIVE-YEAR GOAL #14:
CONTINUE TO SUPPORT THE SHELTER PLUS CARE PROGRAM IN PALO ALTO AND INCREASE THE UNITS
AVAILABLE IN THE PROGRAM TO INCLUDE FAMILIES WITH CHILDREN (INCREASE CAPACITY BY 15).
Activities: New construction, rehabilitation, rental assistance, and supportive services.
Persons to be Assisted: Very low and low-income homeless individuals and families with children
(incomes of zero to 30 percent of countywide median).
Programs and Resources: CDBG, City Housing Reserve, Stewart B. McKinney Homeless Assistance
Act Funding, state and federal tax credits, Shelter Plus Care. .
4.3.3 Public Services Strategy for Other Special Needs Populations
Table 4-3 estimates the number of households with, special needs individuals based on the HUD
CHAS table for the number of low and moderate income households with mobility and self-care
limitations, plus information provided by the Santa Clara County Public Health Department on
the estimated number of persons with mental illness, substance abuse, and HIV I AIDS. Table 4-3
is used as a basis for calculating the number of households with special needs individuals who
experience an unmet housing need, based on HUD CHAS and other data on housing problems,
which is a sub-set of this table and goals for each category of special needs.
FIVE-YEAR GOAL #15:
ASSIST SENIORS IN LONG-TERM CARE FACILITIES (600)
FIVE-YEAR GOAL #16:
PROVIDE SUPPORT TO ACCESSIBLE TRANSPORTATION SERVICES
FIVE-YEAR GOAL #17:
CONTINUE TO PROVIDE SERVICES TO PREVENT HOMELESSNESS (8,000 INDIVIDUALS AND PERSONS
IN FAMILIES-SEE ALSO GOAL #7)
FIVE-YEAR GOAL #18:
CONTINUE TO SUPPORT FOOD AND MEAL PROGRAMS (800 SPECIAL NEEDS INDIVIDUALS-SEE TABLE
4-3)
Activities: New construction, rehabilitation, support facilities, and services (including
transportation) will all be employed in addressing special needs concerns.
City of Palo Alto 116 2005 -2010 Consolidated Plan
'J
Five-Year strategy
Persons to be Assisted: Individuals and small households who have been identified as having
special housing needs. These might include the elderly. persons with mental illness. persons with
disabilities. and victims of domestic violence. persons with HIV / AIDS. or other groups that need .
housing with supportive services. Most persons are expected to have extremely low incomes
(below 30 percent of MFI); others will be very low-income (from 31 to 50 percent of MFI). A few
may be low-income (from 51 to 80 percent of MFI).
Programs and Resources: To meet these housing needs. the City offers assistance through fhe
CDBG program with the acquisition costs of group homes and with rehabilitation costs of existing
residential facilities. or with supportive services.
CDBG. Section 811. Section 202.Low Income Housing Tax Credits. McKinney Homeless Funding.
City Housing Reserve; General Funds (Human Service Resource Allocation Process)
Specific Services:
• Senior long-term care services;
• Para-transit and other transportation services;
• Senior nutrition programs;
• Food bank and distribution programs;
• Fair housing counseling. education. dnd landlord-tenant mediation;
• Youth counseling and after-school programs;
• Family day care;
• Family health care;
• Services for persons with disabilities and families with children who have disabilities;
• Jobs skills training and placement; and
• Supportive services for victims of domestic violence.
Table 4·3
Special Needs and·Goals
(HUD Table 18)
Priority Need
SPECIAL NEEDS SUBPOPULATIONS Level
Elderly H
Frail Elderly H
Severe Mental Illness H
Developmentally Disabled H
Physically Disabled H
Persons w/ Alcohol/Other DruQ Addictions] M
Persons w /HIV / AIDS2 M
TOTAL
Dollars to
Unmet Address
Need Unmet Need
1.734 1.734.000
933 1.399.500
350 525.000
65 65.000
387 387.000
356 356.000
90 90.000
3,915 4,556,500
Goals
400
200
50
50
50
25
25
800 .. 1. Based the Palo Alto's proportion of the countywide population (3.5 percent) multiplied by the 2003
countywide number of discharges (10.236).
2. Based on the estimated number of North County cases (18 percent of 2,406 countywide HIV / AIDS
cases) and Palo Alto's proportion of the North County population (20.6 percent). which includes Palo
Alto. Mountain View. Los Altos. and Sunnyvale. Separate data are not available for Palo Alto.
City of Palo Alto 117 2005 -2010 Consolidated Plan
Goal #
Goal 8
Goal 9
Goal 10
Goal 11
Goal 12
Goal 13
Goal 14
Goal 15
Goal 16
Goal 17
Goal 18
Five-Year Strategy
Table 4·4
Summary of Specific Homeless/Special Needs Objectives
(Table 1 A/l B Continuation Sheet)
Performance Expected
Specific Objectives Measure Units
Homeless Objectives
Supportive Services to Prevent Homelessness Persons 8,000
Support for the Opportunity Center Facilities 1
Operating Costs of Shelters/Transitional Housing Facilities 10
Mental Health Outreach and Supportive Persons 14
Services
Countywide Cooperation on Homelessness N/A N/A
Issues
Transitional Housing and Supportive Services Persons 40
Increase Shelter Plus Care Units Persons 15
Special Needs Objectives
Assistance for Seniors in Long_-Term Care Persons 600
Provide accessible transportation services Persons 300
Services to prevent homelessness Persons See Goal 8
Food and Meal Pro_grams Persons 800
Actual
Units
4.3.4 Non-Housing Community Development strategy
The primary objective for non-housing community development is to support and promote a
vital system of community-based human services by maintaining and expanding the physical
infrastructure of facilities that house human service agencies and programs benefiting low-
income residents. This can be done through planning, acquisition, construction, and renovation
of new or existing facilities. Of primary importance over the next five years will be the
accessibility of services and systems for persons with disabilities. The objective of this service
system will be to promote economic opportunity and self-sufficiency through a coordinated
network of education, skills training, job placement health service, child care, and
transportation that supports low-and moderate-income individuals and families.
FIVE-YEAR GOAL #19:
PROMOTE A VITAL SYSTEM OF COMMUNITY -BASED HUMAN SERVICES THROUGH FACILITIES TO
HOUSE THOSE SERVICES (2 FACILITIES)
Priorities for non-housing community development needs are to:
1. Expand, modernize, rehabilitate, and make seismic and other safety related
improvements to facilities that serve low-income and special needs populations.
2. Support the accessibility of all services and facilities for persons with disabilities.
3. Support organizations that provide a variety of human services to low-income, at-risk
popUlations.
City of Palo Alto 118 2005 -2010 Consolidated Plan
15
Five-Year Strategy
poverty rate (4.8 percent as of the 2000 U.S. Census), the regional need for employment
strategies that address the needs of this population is critical.
As discussed in the Economic Development section of this document, there has been a decline
of approximately 200,000 jobs in the Silicon Valley region, primarily in the high technology
industry. Employment growth is expected to resume, but at a slower pace than in previous
years. According to the 2003 Occupational Outlook Report issued by the North Valley Job
Training Consortium (NOV AJ, software industry occupations are projected to have the greatest
numerical job growth among industry clusters. Average wage in this job category historically
have been high. However, this projection may not have adequately taken into consideration
the recent reductions in high-technology employment. Also, these high-end, high-tech jobs
require skills that much of the available local workforce does not possess. The largest employing
sector, services, tends to offer considerably lower wages. Social stratification is increasing, as
low-wage jobs do not provide sufficient income for living i~ the region.
As previously described in the Economic Development section, the City of Palo Alto actively
participates in two important employment programs. NOV A is a public/private partnership with
a mission to provide low-cost and efficient job training and employment programs. Their
strategic goal includes the elimination of the "Digital Divide" as a key anti-poverty strategy for
this region. The City's Seasonal Employment Opportunity Program recruits residents and clients
from shelter and community service programs to participate in a 12-week job readiness
program. Upon completion of the 12-week session, participants may continue to work as an
hourly worker for the City or are linked to other jobs through an interim employment agency. The
City of Palo Alto intends to continue its support of, and participation in, these programs. The City
will also continue to collaborate with other governmental agencies, businesses, and social
service agencies to address the employment and income needs of extremely low-income
persons.
4.3.6 Fair Housing Strategy
The City's fair housing strategy over the next five years will be to take to ensure equal housing
opportunity regardless of race, color, religion, national origin, sex, familial status and disability.
The City adopted an Analysis of Impediments to Fair Housing (AI) in 2003. According to the data
in the AI, the highest priority target groups for advocacy and services are people with disabilities
and families with children, particularly female-headed households.
In addition to the actions described in the Fair Housing Analysis section of this document, the
City's AI recommends that the Palo Alto participate in Santa Clara Countywide and regional
(e.g. North County region of Palo Alto-Mountain View-Sunnyvale) collaborative efforts on Fair
Housing that seek to implement the recommendations of the Empirical Research Group/UCLA,
Law School study "Fair Housing in Santa Clara County: An Assessment of Conditions and
Programs, 2000-2002."
Example of recommendations for possible joint implementation include:
• Creation of a regional task force, coordination at the local government level and
establishment of proactive goals;
• Develop new sources of fair housing funding;
• Measure forms of discrimination and deterrent impact of existing enforcement activity by
developing an annual testing program to build data on discrimination levels, trends,
distinctions between racial groups, and family/non-family;
• Better public education through regional approaches to public outreach to publicize the
services of fair housing organizations;
City of Palo Alto 122 2005 -2010 Consolidated Plan
Five-Year Strategy
Table 4·7
strategy for Overcoming Barriers to Affordable Housing
Barrier Strategy
Lack of Land or Sites Continue to rezone appropriate commercial sites for housing
purposes per adopted policies in the City's Housing Element.
Monitor effectiveness of policies for providing housing for very-low
and low-income individuals and families.
Land Costs Provide public land at below-market costs when feasible; pursue
funding to purchase market-rate property; pursue higher density
projects that provide an appreciable proportion of very-low and
low-income housinQ, to reduce construction costs per unit.
Cost of Construction Pursue higher density projects for very-low and low-income
housing to reduce construction costs per unit.
Financing Costs Pursue federal and state funding and tax credits to reduce
costs of projects; pursue low interest loans from federal, state
and private sources; pursue mortgage credit certificates to
reduce monthly mortgage payments.
Governmental Constraints Encourage use of Planned Community zoning projects to allow for
modification of project densities and parking requirements.
Amend the City's Zoning Ordinance as appropriate to modify or
remove requirements or standards that may discourage
construction of affordable housiriQ.
Lack of Sufficient Funding and Pursue available federal and state funding and support an increase
Adequate Housing Subsidies in allocation of such funding.
Neighborhood Opposition Through public outreach, increase public awareness of critical need
for affordable housing and fact that such housing has had no
adverse impacts on property values; developers pursuing new
housinQ projects to work closely with neiQhborhood orQanizations.
4.3.8 Lead-Based Paint
As previously discussed in the Housing Needs Analysis section of this document, the City's housing
and CDBG staff provide information and referral services about lead-based paint hazards. The
City also requires inspections of housing rehabilitated with City financial assistance for lead-
based paint hazards. The City will provide financial assistance for the abatement of such
hazards in these rehabilitated units. In accordance with the new regulations regarding the
applicability of federal lead-based paint regulations promulgated by HUD, the City of Palo Alto
includes as a strategy and action item the preparation of a Lead Based Paint Management
Plan, to be prepared in consultation with the County and applicable federal agencies.
The City coordinates with the Santa Clara County Public Health Department to reduce lead-
based paint hazard. Santa Clara County has been funded by the State of California
Departmert of Health Services and the federal Centers for Disease Control (CDC) to implement
a Childhood Lead Poisoning Prevention Program (CLPPP) on a countywide basis. The CLPPP
involves outreach, screening, case management and public education in targeted
communities cont,aining concentrations of older housing and low-and moderate-income
households. The lead hazard reduction program involves environmental testing, lead hazard
education, blood-lead testing for children, hazard reduction grants, and follow-up monitoring
and testing. A major component of the program is the environmental assessment of the
residence where a child with elevated blood-lead levels resides. However, the CLPPP has not
City of Palo Alto 124 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
• It was suggested that nursing students would be a good match for case management
services. There is a program funded by the City of Los Gatos that matches San Jose
State nursing students with the elderly for case management services.
• Major home repair programs for seniors. Only minor home repair programs exist. The
City's Housing Improvement Program (HIP) which used to provide loans for major home
repairs was taken out of operation several years back because of the lack of people
using the service and the administrative costs of running the program. Perhaps there is a
need to bring back a similar program.
• Emergency funding for a one-time need. For example, purchasing something medically
necessary that is not covered by Medicare.
• Subsidized childcare is a great need. Palo Alto Community Child Care reported that
they currently provided child care subsidies to 150 children and have 220 on the waiting
list. There are very few funding sources for subsidized child care in the City other than
State funding where they provide a reimbursement of $29 per child, when it costs almost
$50 per child to provide care. PACCC also receives City general fund money, but it is
not enough to meet the need.
Participants:
City of Palo Alto Consolidated Plan
Housing Providers Agency Consultation
Meeting Summary
December 1, 200A
Brooke Scharnke, InnVision/Urban Ministry Palo Alto
Cathy Erickson, Shelter Network
Joanne Koltnow, Stevenson House
Susan Stuermer Thomas, Stevenson House
Gery Yearout, Lytton Gardens
Israel Canjura, Economic and Social Opportunities (ESO)
Robert Douglas, Economic and Social Opportunities (ESO)
Kerstin Dischling, Housing Choices Coalition
Ann Marquart, Project Sentinel
Eloiza Murillo-Garcia, City of Palo Alto
Cathy Siegel, City of Palo Alto
Robin Ellner, City of Palo Alto
The City of Palo Alto Planning Department invited several non-profit agencies to an agency
consultation session in preparation for the Consolidated Plan. The December 1 sl session was
focused on housing providers, homeless services, and fair housing.
City of Palo Alto 128 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
City staff gave a brief overview of the Consolidated Plan and the process and then the service
providers were given an opportunity to discuss any community or agency needs.
The following needs were identified by the participants:
• Housing for people with dementia and Alzheimer's. The few facilities that are available
are very costly and not covered by Medicare.
• Small group homes and board and care facilities are needed for people with dementia
and Alzheimer's.
• Supportive housing that includes services for those who cannot live independently,
including singles and family housing
• Lack of very low-income housing, particularly for those on SSI or other public assistance
• BMR owners cannofafford Homeowners Association dues and assessments
• Deposit assistance for rental housing, Urban Ministry has some limited funds
• Guaranteed deposit assistance (successful program in Monterey County)
• Skilled nursing facilities
• Assistance for those who do not need assisted living, but do require some help.
• Elderly "homeless singles seem to be a growing population for which there are hO
resources available
• Moving people to permanent housing from shelter/transitional housing
• Comprehensive Housing Information and Referral Services. Avenidas does provide some
Information and Referral services for seniors. They have two case managers, but they are
overwhelmed. Every 2 years they update their housing booklet. They refer homeless
seniors to Urban Ministry.
• Waiting lists sometimes are not representative of the actual vacancies in some housing
developments
• Centralized waiting list for all affordable housing properties would allow people to know
how many units are actually vacant, instead of each property having their waiting list.
• Russian-speaking population is growing in the City
• Coordination between CDBG funded agencies, should meet periodically
• Coordination between N. Santa Clara County and San Mateo County agencies should
occur as there is a lot of crossover between the counties
• It is becoming increasingly difficult to agencies to provide on-site
programming/workshops at facilities that provide temporary housing.
City of Palo Alto 129 2005 -201 0 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
• There is a great deal of difficulty in accessing drug/alcohol services in the mental health
system
• Many countywide services do not reach Palo Alto because of geographic location,
being the northern most City in the County
• The threshold for accessing mental health services keeps changing because of cuts in
funding'. The definition of those eligible to access mental health services is not clearly
defined because it keeps changing every time there are funding cuts.
• There are no basic counseling services available on a sliding scale.
• There is a lack of affordable or no cost dental and vision services. Dental extractions
seem to be the only affordable dental services available to adults. There is a dental van
at Clara-Mateo Alliance, which is open to all San Mateo County residents, is one option,
but it is not enough to meet the need.
• The City should provide incentives for dentists/doctors to provide no-cost services for low-
income individuals.
• There is a need for building a dental/medical office where practitioners could provide
services rather than relying upon their own offices.
• A pool of medical and dental professions who provide no-cost services should be
started.
• There should be affordability regulations in the Below Market Rate (BMR) program to
assist BMR owners with Homeowner's Association (HOA) dues and mandatory
assessments.
• Require a reserve fund held by the HOA to subsidize increases in HOA dues
• BMR rentals are not consistent with Consumer Price Index (CPI), but are based on Area
Median Income (AMI) in some communities. This is not the case in Palo Alto, where BMR
rent increases are based on the CPI.
• Alma Site is a potential affordable housing site, contingent on the relocation of the
existing utilities to another site. It was suggested that a space be provided within the
complex for agencies to provide services on-site.
• A potential use for the Alma Site is Alzheimer's housing, where 2 people per bedroom
may be housed.
• Minor home repairs and accessibility issues, such as wheelchair ramps
City of Palo Alto 130 2005 -2010 Consolidated Plan
· Appendix A: Agency Consultation and Public Participation
Agency Consultation Contact List
Name of Agency Tm_e of Service Mailing Address Contact Person
Emergency Housing Shelter/Transitional Housing 150 Almaden Blvd., Ste. 500 Barry DelBuono, Executive Director
Consortium San Jose, CA 95113 (408) 539-2115
e-mail: bdelbuono@homelessness.org_
Clara-Mateo Alliance Shelter/Transitional Housing 795 Willow Rd., Bldg 323-0 Eve Agiewich, Director of Community
(Recently merged with Menlo Park, CA 94025 Relations/Counsel
InnVision) (650) 853-7073
e-mail: eagiewich@innvision.org
Shelter Network Haven House Transitional Housing 1450 Chapin Avenue, 2nd Floor Michele Jackson, Executive Director
(Menlo Park) Burlingame, CA 94010 (650) 685-5880 x. 21
e-mail: mjackson@shelternetwork.org
Urban Ministry/lnnVision Homeless Drop-In Center 974 Willow St. Denise Scovel, Deputy Director
San Jose, CA 95125 (408) 292-4286
e-mail.: denises@innvision.org
St. Vincent de Paul Dayworker Center P.O. Box 5579 Stephen Pehanich, Executive Director
(Mountain View) San Jose, CA 95150-5579 (408) 298-7290 x. 21
e-mail: siQ@svdp~om I
Palo Alto Housing Corp. SRO Resident Support Services, 725 Alma Street Marlene Prendergast, Executive Director I
Oak Manor T ownhomes Palo Alto, CA 94301 (650) 321-9709 I
Waterpipe Rehab Project and e-mail: I
Barker Hotel Interior Renovation mprendergast@paloaltohousingcorp.org I
Catholic Charities Long-Term Care Ombudsman 2625 Zanker Road, Ste. 200 Donna DiMinico, Program Director
Program for elderly/disabled San Jose, CA 95134-2107 (408) 944-0567 x.261
e-mail: donnad@ccsi.orq
Economic and Social Minor Home Repair/Energy 1445 Oakland Road Robert Douglas, Director of Housing and
Opportunities Efficiency Upgrades San Jose, CA 95112 Energy Services
(408) 668-2527
e-mail: rdouglas@esoi.org
Adolescent Counseling Youth Services 4000 Middlefield Rd., Room FH Phillippe Rey, Executive Director
Services Palo Alto, CA 94303 (650) 424-0852
e-mail: philippe@acs-teens.o[g
Stevenson House Affordable Senior Housing 455 E. Charleston Rd. Susan Thomas, Executive Director
Palo Alto, CA 94306-4231 (650) 494-1944x. 12
e-mail: sthomas@stevensonhouse.org
Lytton Gardens Affordable Senior Housing 437 Webster Street Gery Yearout
Palo Alto, CA 94301 (650) 617-7372
e-mail: ~:wearout@lyttonQardens.orQ
Project Sentinel Fair Housing Services 430 Sherman Ave., Ste. 308 Ann Marquart, Executive Director
Palo Alto, CA 94306 (650) 321-6291 x. 100
e-mail: amar-guart@housing.org
City of Palo Alto 132 2005 -2010 Consolidated Plan
, Agency Consultation and Public Participation
A.2 Community Outreach
A.2.1 Public Participation
The City of Palo Alto conducted community outreach through participation in a
countywide sampie telephone survey, a public hearing on the unmet housing and
community development needs, public hearings on the draft Consolidated Plan, and
public review of the plan. The review and comment period for the 2005 -2010
Consolidated Plan began on April 1, 2005 and ended May 1, 2005. Interested citizens were
invited to comment on the draft Consolidated Plan at either of the public hearings on April
5 and 142005 and May 9,2005, or by submitting written comments by May 1, 2005 to the
City of Palo Alto, CDBG Coordinator in the Department of Planning and Community
Environment, at 250 Hamilton Avenue, Palo Alto, CA 94301.
Notice of the public hearings were published in the Palo Alto Weekly on March 23, 2005
and was mailed to an extensive list of individual citizens and organizations representing a
broad spectrum of the interested residents, such as:
• The CDBG Citizens Advisory Committee
• Members of the Palo Alto Human Relations Commission
• Non-profit housing developers and providers
• Non-profit & county social service agencies
• Neighboring cities and jurisdictions
• Affordable housing advocates
• Other interested citizens
Comments from the hearing were recorded and summarized (see section A.2.3 below).
These comments and the written materials provided have been considered in the
development of this Plan.
Copies of the draft Consolidated Plan were made available at the City's public counter at
the Development Center, and at the Downtown Library. Copies of the document were
also mailed to the CDBG Citizens Advisory Committee, the Human Relations Commission,
other interested persons or organizations, and anyone who requested a copy. In
preparing the final Consolidated Plan, all comments or views expressed in writing or orally
at public hearings will be considered.
A.2.2 Public Hearing Notes
Public Hearing on the Housing and Non-Housing Community Development Needs
of Low-Income Persons
Tuesday, February 15, 2005
Meeting Summary
• Recent results of a Countywide homeless count reported that over 7,000 people were
homeless in County and 2/3 where not in a shelter
• Urban Ministry of Palo Alto sees over 400 individuals on a regular basis who access
basic supportive services at the drop-in center
City of Palo Alto 133 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
• Urban Ministry has the ability to provide staff support for case management to assist in
the transition out of homelessness
• The Opportunity Center is scheduled to open in March 2006 and will improve the basic
services that are available in the North County
• The North County Inns is a new program that has been in the works for three years. It
offers housing first and focuses on other needs later. There are currently 11 people
housed at the Palo Alto Hotel and the Barker Hotel and are looking for housing for an
additional 9 people. InnVision received a $200,000 grant for this program that requires
that participants pay 1/3 of their income.
• The "housing first" models helps keep people off of the streets and out of jails and
assists people in staying clean and sober. The program also allows persons to address
services they need, such as literacy and substance abuse. A change of environment is
very important for people to be able to access services. Funds for this program are
very important. The program causes cost savings in the long run because some
people break the law in order to get into jail to have a form of shelter.
• Education programs for people to acknowledge the problem of chronic homelessness
are needed because people on the street come from all income levels.
• Housing prices keep rising.
• The prices of BMR units have gone up dramatically.
• It is harder for low-income people to stay in the City and a lot of low-income persons
are working full-time, but are unable to afford housing in the City.
A.2.3 Citizen Comments
THIS SECTION TO BE COMPLETED AFTER PUBLIC HEARINGS
A.2.4 Citizen Participation Plan
The City of Palo Alto has an adopted Citizen Participation Plan that provides for a nine-
member CDBG Citizens Advisory Committee (CAC). The CAC process encourages. public
participation in the CDBG allocation and evaluation review process. The Plan is available
for public review at the City's public counted at the Development Center. Appendix B
contains a copy of the revised Citizen Participation Plan.
City of Palo Alto 134 . 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
participants, including those who refused to answer a question or whose response was not
tabulated (missing).
It is important to note that the margin of error of the survey was plus or minus five
percentage points. A variance of five percentage points or less between the reported
demographics of the survey participants and the countywide population at the time of the
2000 Census may not be statistically significant, therefore.
Survey Results
The first series of questions asked survey participants to name the two most important
community needs in each of five categories from a list of facilities, services, and programs
that are eligible for funding under four federal programs: Community Development Block
Grant (CDBG), Home Investment Partnership (HOME), Emergency Shelter Grant (ESG), and
Housing for Persons with AIDS (HOPWA).
Community Facilities
Survey participants were asked a series of questions about community facilities that they
consider to be important. When asked to name which two community facilities and
services were most important, services most frequently mentioned were: senior services
(17.7 percent), health services (17.3 percent), homeless services (15.3 percent), child care
services (15.2 percent), and services for at-risk youth (12.1 percent).
Community Services
Survey participants were then asked which two community services were most important.
Four community services were mentioned most frequently: drug and alcohol abuse
treatment (2004 percent), domestic violence prevention (16.9 percent), transportation
services for persons with disabilities (16.1 percent), and anti-crime programs (15.9 percent).
Public Works Projects
Four types of public works projects were considered most important, according to survey
respondents: street improvements (22.3 percent), parks or recreation improvements (18.7
percent), sidewalk improvements for disabled access (17.9 percent), and water/sewer
improvements (13.8 percent).
Business Assistance and Job Programs
Survey participants named four types of business assistance programs as most important.
These were job or skills training (32.6 percent), small business assistance loans (22.1
percent), earthquake safety improvements (20.6 percent), and rehabilitation assistance for
older commercial and industrial properties (15.5 percent).
Affordable Housing Programs
Of the various types of affordable housing programs that survey participants were asked to
rank, three in particular were ranked as most important: rental assistance for low-income
households (21.7 percent), construction of affordable housing (20 percent), and
City of Palo Alto 136 2005 -2010 Consolidated Plan
Survey Demographics
Gender
Appendix A: Agency Consultation and Public Participation
The gender of the respondents was nearly evenly divided between men and women with
204 men and 213 women.
Zip Code
Survey participants were dispersed throughout the County, living in nearly 60 different zip
code areas. Table A-1 compares the zip code of residence of survey participants with the
2000 Census reported zip code of residence for all Santa Clara County residents. Figure 1
shows the locations and proportion of responses from each of the reported zip codes.
Table 1 shows that survey respondents were distributed among most zip codes areas
similarly to the 2000 population distribution (less than one percentage point difference) .
City of Palo Alto 138 2005 -2010 Consolidated Plan
o.
Appendix A: Agency Consultation and Public Participation
Table A·l
Ip 0 eo urvey a clpan s 1" C d f S P rtl . t
TeleJ)hone Survey 2000 Census
Zip Code Percent Zip Code Percent
94022 1.7% 94022 1.1%
94024 1.0% 94024 1.3%
94025 0.5% 94025 2.3%
94027 0.2% 94027 0.4%
94040 2.2% 94040 1.9%
94041 1.7% 94041 0.8%
94043 2.9% 94043 1.7%
94078 0.2% 94078 ___ I
94086 2.7% 94086 3.8%
94087 3.1% 94087 3.0%
94089 1.7% 94089 1.0%
94301 0.2% 94301 1.0%
94303 1.2% 94303 2.7%
94304 0.2% 94304 0.1%
94305 0.2% 94305 0.8%
94306 1.7% 94306 1.5%
94806 0.2% 94806 3.3%
95008 2.9% 95008 2.7%
95014 4.1% 95014 3.2%
95020 3.6% 95020 3.0%
95030 0.2% 95030 0.8%
95032 0.7% 95032 1.5%
95035 1.9% 95035 3.7%
95037 1.7% 95037 2.5%
95044 0.2% 95044 ___ I
95046 0.2% 95046 0.3%
95050 2.4% 95050 2.2%
95051 3.4% 95051 3.1%
95054 1.0% 95054 0.8%
95070 1.4% 95070 1.8%
95110 1.0% 95110 1.1%
95111 2.9% 95111 3.4%
95112 1.0% 95112 3.1%
95116 2.6% 95116 3.1%
95117 1.7% 95117 1.8%
95118 2.9% 95118 1.9%
95119 0.2% 95119 0.6%
95120 2.9% 95120 2.2%
95121 1.2% 95121 2.2%
95122 1.0% 95122 3.6%
95123 4.8% 95123 3.5%
95124 3.6% 95124 2.7%
95125 4.8% 95125 2.7%
95126 0.5% 95126 1.6%
95127 3.8% 95127 3.6%
95128 1.4% 95128 1.9%
95129 2.4% 95129 2.2%
95130 1.0% 95130 0.8%
95131 1.0% 95131 1.6%
95132 2.6% 95132 2.4%
95133 0.5% 95133 1.5%
95135 1.2% 95135 0.9%
95136 3.1% 95136 2.2%
95138 1.7% 95138 0.9%
95139 0.5% 95139 0.4%
95148 1.9% 95148 2.6%
95162 0.2% 95162 ___ I
Not Specified 2.4%
Sources: Santa Clara County Telephone Survey, October-November 2004; 2000 Census
1. The 2000 Census did not record these zip codes as valid.
City of Palo Alto 139 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
County consisted of non-family and non-domestic partner households. Such households were
under-represented in the survey, therefore.
Age of Householder
The age of the respondents was between 18 and 91.20 Table 3 shows the breakdown of survey
participants by age. Individuals under age 35, and particularly those ages 18 to 24, were
significantly under-represented in the survey. Individuals age 55 or more, and particularly those
age 65 or more, were over-represented in the survey.21
Table A-3
Age of Householder
Telephone Survey 2000 Census
Number % Number %
18-24 12 3.2% 18-24 153,968 12.2%
25-34 63 16.6% 25-34 298,237 23.5%
35-44 103 27.2% 35-44 304,263 24.1%
45-54 76 20.1% 45-54 216,891 17.1%
55-64 56 14.8% 55-64 134,404 10.6%
65-+ 69 18.2% 65-+ 159,263 12.6%
Total population 18+ 379 1,267,026
Education Level
Approximately 71 percent of survey participants completed some college and/or a post-
graduate degree, compared to about 70 percent of the County's total adult population in 2000.
Education levels of survey participants generally tracked closely with 2000 Census data. The
only significant variance was in the percentage of individuals with some high school education
(3.2 percent in survey versus 8.8 percent in the 2000 Census).
Table A-4
Education Level
Telephone 2000
Education Survey % Census %
Less Than Hi9_h School 18 4.5% 62,594 5.7%
Some High School 13 3.2% 95,410 8.8%
High School Graduate Or GED 84 20.8% 176,926 16.3%
Some College 79 19.6% 218,645 20.1%
College Graduate or Post-Graduate 209 51.9% 532,687 49.0%
Total 403 1,086,262
20 The survey excluded minors from participation. .
21 The refusal rate was over nine percent for the question regarding age, so is it possible that the
variance between the survey group and the countywide population in 2000 is not as large as suggested
in Table 3. The higher percentage of older survey participants may also be due to the greater difficulty of
reaching younger, single adults at home by telephone.
City of Palo Alto 142 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
Race and Ethnicity
Based on survey responses, the proportion of non-Hispanic Whites were over-represented
compared to the 2000 Census count of the Santa Clara County population, while the proportion
of Asian and Hispanic respondents were under-represented. Part of the difference may be due
to the proportion of survey respondents who answered "other." As noted previously, only
individuals who could speak English or Spanish were included in the survey. Time and budget
consideration did not allow for the use of individuals who could translate the questionnaire and
conduct the survey in other languages.
Table A·5
Race and Ethnicity
Telephone 2000
RacejEthnicity Survey % Census %
Caucasian/White 217 55.93% 741,000 44.04%
African/ African-American 11 2.84% 42,454 2.52%
Asian/ Asian-American 51 13.14% 427,130 25.39%
Latino/Hispanic 56 14.43% 404,012 24.01%
American Indian Or Alaskan Native 4 1.03% 5,342 0.32%
Other 49 12.63% 62,647 3.72%
Total 388 1,682,585
Income
Survey participants were asked to state their annual household incomes before taxes. The
responses were compared to 2004 federal income guidelines published by the U.S. Department
of Housing and Urban Development (HUD) to determine the percentage of households at
various income levels. The survey results were also compared to 2000 Census data on household
incomes in relation to HUD's 2000 income guidelines.22 Table 6 shows the comparison between
household incomes reported in the survey and the 2000 Census.
The survey included a significantly higher percentage of households earning less than 80
percent of median income than reported in the 2000 Census, 57.4 percent in the survey versus
33.2 percent in the 2000 Census. The largest difference was in the extremely low income
category (30 percent or less of median income). One quarter (25.6 percent) of survey
participants reported incomes in this category, versus 14.1 percent of households in the 2000
Census. As a consequence, the survey included significantly lower percentages of moderate
and above moderate-income households than reported by the 2000 Census.
22 HUD's 2000 income guidelines cover the federal 2000 fiscal year beginning October 1, 1999 and provide
the closest match to 2000 Census data, which reported on 1999 household incomes.
City of Palo Alto 143 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
Table A·6
Household Income
Telephone % 2000 %
Income Level Survey Census
Extremely Low «30% of median) 83 25.6% 79.913 14.1%
Very Low (30-50% of median) 59 18.2% 71,014 12.5%
Low (50-80% of median) 44 13.6% 37,013 6.5%
Moderate (80-120% of median) 1 78 24.1% 193,745 34.2%
Above Moderate (> 120% of median) 1 60 18.5% 184,740 32.6%
Total 324 100.0% 566,485 100.0%
Total Lower Income «80% of median) 186 57.4% 196,522 33.2%
Median Income (HUD income
guidelines)
lThese are income categories used by the State of California.
Note: percentaqes may not equal 100 due to roundinq,
Disabilities
Survey participants were asked about the presence of physical and/or mental disabilities. The
2000 Census reported that approximately one in five individuals (21.4 percent of the population)
had one or more disabilities. Just over three percent of the population reported mental
disabilities. By contrast, nearly 12 percent of survey participants reported a mental disability, and
20 percent reported a physical disability.
Single Parent Households
Eleven percent of survey participants were single parents, compared to 6.9 percent of
households countywide, according to the 2000 Census. Nearly three-fourths (72 percent) of
single-parent households in the telephone survey were female-headed, compared to 69
percent countywide at the time of the 2000 Census.
City of Palo Alto 144 2005 -201 0 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
In the second category, we have services for ... START WITH STATEMENT
CHECKED 0'
OJ ersons with disabilities, including transportation services
O:t n ti-crime programs
. n esolving disputes between landlords and tenants
D: ode enforcement for rundown properties and those with messy or junky yards
O:l omestic violence
O:lrug and alcohol abuse
Oegal aid
Q1B1
Which two of these needs do you feel are the most important?
PERSONS WITH DISABILITIES, INCLUDING
TRANSPORTATION SERVICES
ANTI-CRIME PROGRAMS
RESOLVING DISPUTES BETWEEN LANDLORDS AND
TENANTS
CODE ENFORCEMENT FOR RUNDOWN PROPERTIES
AND THOSE WITH MESSY OR JUNKY YARDS
DOMESTIC VIOLENCE
DRUG AND ALCOHOL ABUSE
LEGAL AID
INSISTS ONLY ONE MOST IMPORTANT AND ONE
CODED
INSISTS ALL EQUALLY IMPORTANT
INSISTS NONE ARE IMPORTANT
INSISTS DON'T KNOW I NOT SURE
City of Palo Alto 147
TWO MOST
IMPORTANT
1
2
3
4
5
6
7
8
9
10
11
2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
Q1C
In the third category, we have public works projects, such as ... START WITH STATEMENT
CHECKED 0
O]ood or drainage improvements
Clv a ter or sewer improvements
Q; idewalk improvements for access for the disabled
Q; treet improvements
QJarks or recreation improvements
nemoving barriers that prevent people from accessing public facilities
Q1C1
Which two of these needs do you feel are the most important?
FLOOD OR DRAINAGE IMPROVEMENTS
WATER OR SEWER IMPROVEMENTS
SIDEWALK IMPROVEMENTS FOR ACCESS FOR THE
DISABLED
STREET IMPRQVEMENTS
PARKS OR RECREATION IMPROVEMENTS
REMOVING BARRIERS THAT PREVENT PEOPLE
FROM ACCESSING PUBLIC FACILITIES
INSISTS ONLY ONE MOST IMPORTANT AND ONE
CODED
INSISTS ALL EQUALLY IMPORTANT
INSISTS NONE ARE IMPORTANT
INSISTS DON'T KNOW/NOT SURE
Q1D
TWO MOST
IMPORTANT
1
2
3
4
5
6
7
8
9
10
In the fourth category, we have business assistance and job programs, such as ...
START WITH STATEMENT CHECKED 0
Doans to assist small businesses
q 0 b or skills training
nehabilitation of old commercial or industrial properties
Dmprovements for earthquake safety
City of Palo Alto 148 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
QIDl
Which two of these needs do you feel are the most important?
LOANS TO ASSIST SMALL BUSINESSES
JOB OR SKILLS TRAINING
REHABILITATION OF OLD COMMERCIAL OR
INDUSTRIAL PROPERTIES
IMPROVEMENTS FOR EARTHQUAKE SAFETY
INSISTS ONLY ONE MOST IMPORTANT AND ONE
CODED
INSISTS ALL EQUALLY IMPORTANT
INSISTS NONE ARE IMPORTANT
INSISTS DON'T KNOW/NOT SURE
Q1E
TWO MOST
IMPORTANT
1
2
3
4
5
6
7
8
In the fifth category, we have affordable housing programs, such as ... START WITH
STATEMENT CHECKED ItI
o.,.ousing rehabilitation
D.mprovements for access by the disabled
Dlssistance to home buyers
D: onstruction of affordable housing
Clental assistance for low-income households
n air housing legal assistance
City of Palo Alto 149 2005 -201 0 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
QUESTION #2 ,
Now I am going to read you community needs you said are most important. They are
. .. and . Overall, which two of these do you believe are the most important?
FACILITIES AND SERVICES FOR SENIORS
FACILITIES AND SERVICES FOR AT-RISK YOUTH
FACILITIES AND SERVICES FOR CHILD CARE
FACILITIES AND SERVICES FOR HEALTH CARE
FACILITIES AND SERVICES FOR MENTAL HEALTH CARE
FACILITIES AND SERVICES FOR RECREATION
FACILITIES AND SERVICES FOR HOMELESS PEOPLE AND FAMILIES
SERVICES FOR PERSONS WITH DISABILITIES, INCLUDING
TRANSPORT A TION SERVICES
ANTI-CRIME PROGRAMS
SERVICES FOR RESOLVING DISPUTES BETWEEN LANDLORDS AND
TENANTS
CODE ENFORCEMENT FOR RUNDOWN PROPERTIES AND THOSE
WITH MESSY OR JUNKY YARDS
SERVICES FOR DOMESTIC VIOLENCE
SERVICES FOR DRUG AND ALCOHOL ABUSE
LEGAL AID
FLOOD OR DRAINAGE IMPROVEMENTS
WATER OR SEWER IMPROVEMENTS
SIDEWALK IMPROVEMENTS FOR ACCESS FOR THE DISABLED
STREET IMPROVEMENTS
PARKS OR RECREATION IMPROVEMENTS
REMOVING BARRIERS THAT PREVENT PEOPLE FROM ACCESSING
PUBLIC FACILITIES
LOANS TO ASSIST SMALL BUSINESSES
JOB OR SKILLS TRAINING
REHABILITATION OF OLD COMMERCIAL OR INDUSTRIAL
PROPERTIES
BUSINESS IMPROVEMENTS FOR EARTHQUAKE SAFETY
HOUSING REHABILITATION
HOUSING IMPROVEMENTS FOR ACCESS BY THE DISABLED
ASSISTANCE TO HOME BUYERS
CONSTRUCTION OF AFFORDABLE HOUSING
RENTAL ASSISTANCE FOR LOW-INCOME HOUSEHOLDS
FAIR HOUSING LEGAL ASSISTANCE
INSISTS ONLY ONE MOST IMPORTANT AND ONE CODED
INSISTS ALL EQUALLY IMPORTANT
DON'T KNOW/NOT SURE
City of Palo Alto ,151
TWO MOST IMPORTANT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
QUESTION #3
Are there any other community needs you feel are equally or more important and should be
included in the top two?
1 YES (CONTINUE)
2 NO (SKIP TO Q5)
3 DON'T KNOW (SKIP TO Q5)
LFIFYES, ASK:
QUESTION #4
And what would they be? PROBE FOR CLARITY AND SPECIFICS. PROBE FOR UP
TO TWO THINGS: What else? RECORD VERBATIM. IF OFFERS MORE THAN
TWO, PROBE FOR TWO. IF INSISTS ON MORE THAN TWO, RECORD ALL -
CODERS CODE FIRST TWO.
QUESTION#S
If you had the power to solve one problem in Santa Clara County, what would that
problem be? PROBE FOR CLARITY AND SPECIFICS. RECORD VERBATIM. IF
OFFERS MORE THAN ONE, PROBE FOR ONE. IF INSISTS ON MORE THAN ONE,
RECORD ALL -CODERS CODE FIRST ONE.
QUESTION #6
And how would you solve that problem? PROBE FOR CLARITY AND SPECIFICS. PROBE
OTHER WAYS: Howelse? RECORD VERBATIM.
City of Palo Alto 152 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
QUESTION #7
Now in order to classify your responses along with others, I need to ask a few questions
about you ...
RECORD GENDER:
1 MALE
2 FEMALE
QUESTION #8
First, what is the Zip Code where you live?
-----
99999 REFUSED
QUESTION #9
How many people are there in your household?
20 REFUSED
I:IF 1, SKIP TO Q13.
QUESTION #10
Are any of these people children under the age of 18?
1 YES (CONTINUE)
2 NO (SKIP TO Q13)
3 REFUSED (SKIP TO Q13)
LFIF YES, ASK:
QUESTION #11
And how many of these are children under the age of 5?
20 REFUSED
QUESTION #12
City of Palo Alto 153 2005 -201 0 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
QUESTION #15
What was the last· grade you completed in school?
1 LESS THAN HIGH SCHOOL
2 SOME HIGH SCHOOL
3 HIGH SCHOOL GRADUATE OR GED
4 VOCATIONAL/TRADE CERTIFICATE
5 SOME COLLEGE
6 TWO-YEAR DEGREE (AA, AS)
7 FOUR-YEAR DEGREE (BA, BS)
8 MASTER'S DEGREE (MA, MS, MBA)
9 PROFESSIONAL DEGREE (JD, MD, DDS)
10 DOCTORATE (PHD, EDD)
11 REFUSED
QUESTION #16
We would also like to know your racial or ethnic background. Are you Caucasian,
African or African-American, Asian or Asian-American, Latino or Hispanic, American
Indian or Alaskan Native, Native Hawaiian or other Pacific Islander, or some other
ethnicity? (And what would that be?)
1 CAUCASIANIWHITE
2 AFRICAN/AFRICAN-AMERICAN
3 ASIAN/ASIAN-AMERICAN
4 LATINO/HISPANIC
5 AMERICAN INDIAN OR ALASKAN NATIVE
6 NATIVE HAWAIIAN OR OTHER PACIFIC ISLANDER
70THER: __________ ~ ____________________ __
8 REFUSED
City of Palo Alto 155 2005 -2010 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
QUESTION #17
Was your total annual household income before taxes in 2003 under or over
_____ ? And was it over or under ? HOUSEHOLD SIZE IS THE
NUMBER GIVEN IN Q9.
HOUSEHOLD ANNUAL ANNUAL ANNUAL ANNUAL ANNUAL
SIZE INCOME INCOME INCOME INCOME INCOME
1 $22,300 $37,150 $59,400 $73,850 $88,600
UNDERlEXACTLY UNDERlEXACTLY UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18 = 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
2 $25,450 $42,450 $67,900 $84,400 $101,300
UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
3 $28,650 $47,750 $76,400 $94,950 $113,950
UNDERlEXACTLY UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
4 $31,850 $53,050 $84,900 $105,500 $128,600
UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDER/EXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER= 14
2 5 8 11 DON'T
DON'T· DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
5 $34,400 $57,300 $91,650 $113,950 $136,750
UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDER/EXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIPTO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
6 $36,900 $61,550 $98,450 $122,400 $146,850
UNDERlEXACTL Y UNDERlEXACTL Y UNDER/EXACTLY UNDERlEXACTL Y UNDER/EXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
7 $39,450 $65,800 $105,250 $130,800 $157,000
UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDERlEXACTL Y UNDER/EXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
City of Palo Alto 156 2005 -201.0 Consolidated Plan
Appendix A: Agency Consultation and Public Participation
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12 .
8 OR MORE $42,000 $70,050 $112,050 $139,250 $167,100
UNDER/EXACTLY UNDER/EXACTLY UNDER/EXACTLY UNDERlEXACTL Y UNDER/EXACTLY =
SKIP TO Q18 = 1 SKIP TO Q18 = 4 SKIP TO Q18 = 7 SKIP TO Q18 = 10 13
OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER CONTINUE = OVER = 14
2 5 8 11 DON'T
DON'T DON'T DON'T DON'T KNOW/REFUSED =
KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED KNOW/REFUSED 15
SKIP TO Q18= 3 SKIP TO Q18= 6 SKIP TO Q18= 9 SKIP TO Q18= 12
QUESTION #18
Do you or does anyone else in your household have ___ -'-_? How about
------?
a physical condition that substantially limits one
or more basic activities such as seeing, hearing,
walking, climbing stairs, reaching, lifting, or carrying
thin s?
a mental condition that significantly affects
learning, remembering, concentrating, or caring for
oneself?
YES NO REFUSED
1 2 3
1 2 3
Now just two last questions ... Do you or does anyone else in your household have
_____ ? How about ?
YES NO REFUSED
an addiction to alcohol or dru s 1 2 3
HIVor AIDS 1 2 3
THANK RESPONDENT!
City of Palo Alto 157 2005 -2010 Consolidated Plan
Appendix B: Citizen Participation Plan
Introduction
A primary aspect of the Housing and Community Development Act of 1987 is the provision of
adequate opportunity for citizens to participate in an advisory role in the planning,
implementation and assessment of the Community Development Block Grant (CDBG) program.
In order to encourage public examination and appraisal of the process, as well as to enhance
program accountability, grantees are required to certify that they are following a detailed citizen
participation plan. As required under 24 CFR 570.303, 104(1)(3), and 106, the citizen
participation plan must:
1. Provide for and encourage citizen participation in the development, implementation
and assessment of the CDBG program with particular emphasis on participation by
. persons of low and moderate income;
2. Provide citizens with reasonable and timely access to local· meetings, information,
and records relating to the grantee's proposed and actual use of funds;
3. Provide for technical assistance to groups representative of persons of low and
moderate income that request such assistance in developing funding proposals;
4. Provide for public hearings to obtain citizen views and to respond to proposals and
questions at all stages of the community development program with reasonable
notice, accommodation for individuals with disabilities, and at time and locations
convenient to potential or actual beneficiaries;
5. Provide for timely written responses to written complaints and grievances within 15
working days where practicable; and
6. Identify how the needs of non-English speaking residents will be met in the case of
public hearings where a significant number of non-English speaking residents can be
reasonably expected to participate.
Objectives of the Plan
It is the intent of the City of Palo Alto to provide for and encourage meaningful citizen
involvement in the CDBG Program by forming a citizen participation structure, which includes
the following objectives:
1. To adhere to and comply with the provisions of the Community Development Acts of
1987, as amended, and all other federal regulations.
2. To encourage the participation of citizens in the planning, implementation and
assessment of the CDBG program, especially those of low and very low income,
members of minority groups, residents of areas where funds will be expended, the
elderly, individuals with disabilities, and other neighborhood or civic groups.
City of Palo Alto 159 2005 -2010 Consolidated Plan
Appendix B: Citizen Participation Plan
year so that together they address community development and housing needs,
development of proposed activities and program performance.
c. Actions of the City Council will direct the implementation of CDBO funded
projects.
3. General Public
a. The general public is encouraged to participate in the various stages of the CDBG
program by attending the noticed public hearings or the CAC meetings. They are
encouraged to express their views and comments directly to the CDBG
Coordinator in the Planning Division, or receive program information from the
Planning Staff, on the 5th floor of City Hall, 250 Hamilton Avenue, Palo Alto, CA
94301. At any time citizens may submit views concerning Palo Alto's
performance in the CDBG program to the HUD Area Office at 600 Harrison
Street, San Francisco, CA 94107-1300;
4 .. City Staff
a. The Department of Planning and Community Environment has the primary
responsibility for the administration and coordination of the CDBG program.
b. Beginning in 2002, the planning process for the CDBG program year will be
conducted on a two-year cycle, coordinated with the City's Human Services
Resource Allocation Process, effective FY 2003/04. At the beginning of each
two-year cycle, staff will provide the CAC and the general public with the
following information:
City of Palo Alto
1) The amount of grant funds and program income expected to be made available
during the next fiscal/program year for proposed community development and
housing activities;
2) the range of activities that may be undertaken, including the estimated
amount proposed to be used for activities that will benefit persons of low and
moderate income;
3) The proposed CDBG activities which will likely result in relocation, and the
City's intent to minimize the necessity for relocation of persons as a result of
assisted activities;
4) The types and levels of assistance the City will make available (or require
others to make available) to persons who are eligible for relocation assistance
as a result of CDBG assisted activities.
161 2005 -2010 Consolidated Plan
Appendix B: Citizen Participation Plan
c. At the beginning of the second year in the two-year planning cycle, staff will
facilitate a meeting of the CAC, prior to the City Council's public hearing, to
review the second year funds available for allocation any revisions that may be
necessary to the second year of the two-year CDBG program that had been
adopted by the City Council.
d. Planning staff will publish a summary of the proposed consolidated plan in the
Palo Alto Weekly or other newspaper of local circulation. The summary will
describe the contents and purpose of the consolidated plan and include a list of the
locations where copies of the entire proposed consolidated plan may be examined.
Planning staff will provide a reasonable number of free copies of the plan to
citizens and groups that request it. Citizens may submit comments on the
consolidated plan during a public period not less than 30 days.
e. Upon completion of draft performance reports, Planning staff will publish a notice
announcing the availability of the draft performance report, the locations where it
may be viewed, and a IS-day period for submitting public comments prior to the
City's submission of the performance report to HUD. Any comments or views of
citizens received in writing or at public meetings in preparing the performance
report shall be summarized and attached to the performance report.
f. Planning staff will maintain the Citizens' Participation Plan, Annual Action Plan
updates, the Consolidated Annual Performance and Evaluation Report (CAPER),
the CDBG Consolidated Plan, and all other program records, documents,
information and reports required by federal regulations. These documents are
available for public review in the Planning Division, Sth floor, Civic Center, 2S0
Hamilton Avenue, Palo Alto, CA 94301, during normal working hours (weekdays
8:00 am to 12:00 pm; 1:00 pm to S:OO pm).
g. Technical assistance on the CDBG regulations and the CDBG program process
will be provided by the staff of the Planning Division to non-profit agencies
serving low income persons, citizens groups and groups of low and moderate
income, and neighborhood groups requesting such assistance. Assistance may be
in the form of general information, relevant demographic or socio-economic data,
interpretation of HUD rules and regulations, explanation of City policies and
procedures affecting the CDBG program, or advice regarding alternative funding
sources for projects, which ~re ineligible under the CDBG program.
h. Planning staff will arrange for information to be presented in a bilingual fashion
at public hearings whenever a significant number of non-English speaking
residents can be reasonably expected to participate, or when a request is made for
such service.
f. Persons with disabilities who require auxiliary aids or services in using City
facilities, services or programs, or who would like information on the City's
compliance with the Americans with Disabilities Act (ADA) of 1990, may contact
City of Palo Alto 162 2005 -2010 Consolidated Plan
Appendix C: 2005 -2006 Program Year Action Plan
Estimated FY 2005/06 CDBG Entitlement Grant
Program Income:
Estimated Program Income 2005/06 (HIP)
Estimated Program Income 2005/06 (P AHC)
Excess Prior Year Program Income
Reallocated Funds:
Miscellaneous Reallocations
TOTAL ALLOCATION
$779,281
35,000
10,000
28,788
62,570
$915,639
Loan repayments from the City's former Housing Improvement Program (HIP) single-family
rehabilitation loan program are estimated to be $35,000 for next year. Income from the Palo
Alto Housing Corporation (PAHC) is also estimated to be $10,000 for next year. PAHC funds
are collected when rental income exceeds expenses on properties acquired or rehabilitated with
CDBG funds. Prior year program income funds are funds received in prior years that were in
excess of the estimated program income amounts, and were not previously allocated to projects.
HOME Program
The City of Palo Alto is not an entitlement grantee under the federal HOME program and thus
does not receive a direct grant of HOME Program funds from HUD. The only way to access
HOME funds for housing projects located within the City of Palo Alto is for the City, or eligible
nonprofit organizations to apply to the State of California for the funds in an annual competition.
Due to excessive demand for the State's HOME allocation, and rating criteria that does not favor
areas like Palo Alto, it is difficult to secure an award. In the past, the State has limited the
maximum HOME award per project to one million dollars. When a Notice of Funding
Availability (NOF A) is published, the City evaluates all potentially suitable projects to determine
whether or not to apply for a HOME grant.
State, Local and Other Resources
City Affordable Housing Fund (formerly the Housing Reserve)
The Affordable Housing Fund is a local housing trust fund established by the City Council to
provide financial assistance for the development, acquisition and rehabilitation of housing
affordable to extremely low, very low, low and moderate-income households. The Affordable
Housing Fund is the umbrella name for five distinct sub-funds for affordable housing. The two
primary local housing trust funds were formerly known as the Housing Reserve Fund, but on
October 27, 2003, the City Council approved new guidelines for all of the City's affordable
housing funds including the ones composed of federal housing monies; the funds w~re renamed
as part of those changes .. · The Affordable Housing Fund is now composed of:
../ Commercial Housing Fund -this fund is used primarily to increase the number of new
affordable housing units for Palo Alto's work force. It is funded with mitigation fees
City of Palo Alto 166 2005 -2010 Consolidated Plan
.,
Appendix C: 2005 -2006 Program Year Action Plan
Housing Trust of Santa Clara County (HTSCC)
The HTSCC is a public/private initiative, dedicated to creating more affordable housing in Santa
Clara County, using a revolving loan fund and grant-making program to complement and
leverage other housing resources. The City of Palo Alto contributed $500,000 toward the initial
$20 million investment capitalization and provided an additional commitment of $150,000 to be
expended over fiscal years 2004-05 and 2005-06. The City's contribution will be used
exclusively for qualifying affordable housing projects loc,ated within the City.
Multifamily Housing Program (MHP)
The Multifamily Housing Program (MHP) is a relatively new source of funding for affordable
housing as a result of the passage of Proposition 46 in November 2002. The purpose of this
program is to provide low-interest loans to developers of affordable housing. The MHP General
funds may be used for multifamily rental and transitional housing projects involving new
construction, rehabilitation, or conversion of nonresidential structures. MHP Supportive
Housing funds may be used for multifamily rental housing projects involving new construction,
rehabilitation, acquisition and rehabilitation, or conversion of nonresidential structures for
permanent rental housing only. Palo Alto Housing Corporation and Community Working
Group/Housing Authority of Santa Clara County (Opportunity Center) applied for and received
funds since the inception of the program.
Multifamily Housing Program (MHP) Local Housing Trust Funds
Another component of Proposition 46, the housing bond approved by voters in November 2002,
. is funding for riew and existing local housing trust funds. A local housing trust fund is a public
or private partnership created to receive on-going revenues for affordable housing production.
Local revenues supporting the fund can include commercial impact fees, ongoing fundraising, or
local taxes such as Transient Occupancy Tax, as well as local government's general funds. The
City of Palo Alto applied for and received an award of $1 ,000,000 in February 2004. The City's
$1,000,000 award will be used to help subsidize a future rental housing project, either new
construction or acquisition and rehabilitation, to be determined in the next two years by the City
Council.
Santa Clara County Affordable Housing Fund (AHF)
The Santa Clara County Board of Supervisors created the Office of Affordable Housing in July
2002 and established a set-aside of$18.6 million for projects. One of the objectives for this fund
is to leverage funding to affordable housing projects. The Community Working Group
(Opportunity Center) received one of five awards in the first round of funding
City of Palo Alto 168 2005 -2010 Consolidated Plan
,.
Appendix C: 2005 -2006 Program Year Action Plan
STATE, LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE
HOUSING
Home
New Buyer Rental Homeless Homeless
Activity Acquisition Rehab Construction Assistance Assistance Assistance Prevention
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 Bond Trust X X 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 X
Affordable Housmg
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 Matching Requirements
The City of Palo Alto will leverage federal and private housing funds to the greatest extent
feasible consistent with the goals identified. 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.
City of Palo Alto 169 2005 -2010 Consolidated Plan
X
X
X
X
X
Appendix C: 2005 -2006 Program Year Action Plan
Geographic Distribution
The Map attached to this report shows the location of all the proposed activities for fiscal year
2005/06. 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 MeadowNentura area is an area of
considerably greater population and housing diversity than that which is found in most parts of
Palo Alto. The 2000 census identified this tract as having the highest minority concentration of
any non-split City tract. More than half the housing units are in multiple-unit (3+) structures,
and nearly two-thirds are renter-occupied. Block Group 2 has a large proportion of modest rental
housing, a relatively high proportion of minority and ethnic groups, and 48.6% of the households
are below the CDBG income eligibility limits. The entire tract is above HUD's first quartile
threshold of 27.4 percent for area benefit activities.
Specific efforts have been coordinated in the City's Community Service and Police Departments
to focus on activities and services in the Ventura neighborhood. A number of City-sponsored
programs and activities serving low-and very low-income persons have either been undertaken
or proposed. A police substation was opened in the area with the goal of improving contact with
the community.
Changes to Strategy
HUD has infonned the City of Palo Alto of a change of policy relating to the timely expenditure
of CDBG funds. The federal regulatory standard is that no more than 1.5 times a jurisdiction's
annual entitlement grant amount may remain in its letter of credit 60 days prior to the end of the
program year. HUD now intends to employ monetary sanctions against jurisdictions that exceed
the regulatory standard. Failure to meet the expenditure standard by May 1, 2006 will cause
HUD to reduce the City's next grant by 100% of the amount in excess of 1.5 times the annual·
grant.
For this reason, all funding allocations for 2005/06 were scrutinized to insure the readiness of the
program or project to move forward and expend funds in a timely manner.
This stricter enforcement of the expenditure standard will increase the difficulty in providing
funds for affordable housing since housing projects involving new construction or acquisition of
apartments typically take more time and planning and are subject to more delays than other
capital projects. It may create situations where lower priority activities will be undertaken
City of Palo Alto 170 2005 -2010 Consolidated Plan
Appendix C: 2005 -2006 Program Year Action Plan
the sponsor and joint developer (with the Housing Authority of Santa Clara County) of the
Opportunity Center for homeless individuals and families. The Opportunity Center will provide
emergency and day services for the homeless and at-risk population including showers, laundry,
lockers, clothing closet, food, information and referral, social services and case management.
Above the ground floor services center, 89 units of transitional and permanent housing for
singles and families will· be constructed. The Housing Authority of the County of Santa Clara
will act as the developer of the housing and InnVision (an experienced shelter and service
provider) will be the operator of the service center. This mixed-use facility will house existing
homeless and emergency services that are now being provided in inadequate and scattered
locations in Palo Alto and the surrounding area. The Opportunity Center is currently under
construction and the grand opening for the Center is projected for the spring of2006.
In addition, the City assisted the Palo Alto Housing Corporation with the development of Oak
Court, a 53-unit rental housing project affordable to very low and low-income households. The
project became available for occupancy in the spring of2005.
CDBG Housing Development Fund -$401,816
The City is proposing to acquire an affordable housing site, using a combination of City general
funds as well as CDBG funds. The site of the future project has not yet been identified but since
an acre of land in Palo Alto typically costs $3 to $5 million an acre, it is anticipated that a
commitment of all of the City's Housing funds together with CDBG funds would be needed to
secure a site. The City Real Estate department is currently evaluating the feasibility of a site.
The CDBG funds allocated would assist with the acquisition of the. site.
Due to the lengthy process of site analysis and negotiation for purchase, and HUD's new
requirements for timely expenditure of funds, the City will evaluate the progress in acquiring the
site on September 15,2005. If significant progress has not been made by this date, the funds will
be reallocated to other projects. Of the $401~816 allocated to the CDBG Housing fund, $163,248
to be allocated to Stevenson House for the replacement of windows and doors in the common
areas of their senior housing facility (see project descriptions below). The additional $238,568
will be allocated to other projects as part of a special RFP in the fall of2005.
Palo Alto Senior Housing, Inc. (Stevenson House) -$163,248
Stevenson House is a 120-unit residential facility for low-income seniors located at 455 E.
Charleston Road in Palo Alto. The facility presently serves 134 very-low income elderly
residents with an average age of 79 years old. The facility is 36 years old and in need of
continuing maintenance and upgrades to maintain its viability as senior housing. Stevenson
House is unable to recover the costs of major repairs through rental increases if they are to keep
the rents affordable. This proposal is to replace the windows and doors in the common areas on
all three floors of the housing facility. These funds will only be allocated in fiscal year 2005/06
if there is a need to reallocate the funds that are allocated to the CDBG housing development
fund. The rehabilitation of existing lower-income rental housing is a high priority in the
Consolidated Plan.
City of Palo Alto 172 2005 -2010 Consolidated Plan
Appendix C: 2005 -2006 Program Year Action Plan
Community Housing Inc., (Lytton Gardens) -$86,575
Community Housing Inc. owns and operates several senior housing facilities in Palo Alto. This
proposal is to renovate 27 bathrooms in its skilled nursing facility. The bathrooms are outdated
and are difficult to use by the frail elderly. This project will be undertaken by Economic and
Social Opportunities, who will ensure that the project is in compliance with ADA regulations.
Emergency Housing Consortium (Our House Youth Program) -$75,000
Emergency Housing Consortium provides a variety of services for homeless individuals and
families. One component of EHC's services is the Our House Youth program, which provides
shelter and transitional housing to homeless youth. EHC is proposing ail expansion that will
involve relocation, rehabilitation and new construction. Upon completion, they· will provide
drop-in services, 10 beds of emergency shelter, 12 beds of transitional housing and 5 apartments
for City Y earl Americorps participants.
Economic and Social Opportunities -Housing and Energy Services Program -$60,000
Economic and Social Opportunities (ESO) was established in 1970 and provides a variety of
services to the County's low income and needy community. ESO proposes to assist a minimum
of 26 low-income Palo Alto individuals with home impr<?vement services. These services are
designed to identify and improve hazardous conditions in homes, improve accessibility and use
for seniors and individuals with disabilities, improve energy efficiency and make necessary
minor repairs in order to avoid more expensive solutions in the future.
Proposed Public Service Activities
CDBG public service funds will be targeted to the following programs in fiscal year 2005/06:
./ $ 8,000 to Emergency Housing Consortium -Emergency Shelter
./ $23,000 to Palo Alto Housing Corporation -SRO Tenant Counseling Program
./ $21,392 to InnVisioniClara-Mateo Alli~nce -Family Housing Program
./ $21,000 to InnVisioniClara-Mateo Alliance -Adult SingleslCouples Housing Program
./ $19,000 to Shelter Network -Mid-Peninsula Housing Program
./ $24,000 to Inn VisionlUrban Ministry -Drop-In Center
./ $ 5,000 to Mid-Peninsula Alano Club -MPAC Operations
./ $ 6,000 to Catholic Charities -Long-Term Care Ombudsman Program
Human Services
In addition to the CDBG public service funds, the City will provide $1,214,910 from the General
Fund in support of human services through its Human Service Resource Allocation Process
(HSRAP). The HSRAP funds, in conjunction with the CDBG public service funds, are
distributed to local non-profit agencies whose programs serve the needs of seniors, children,
youth and families, persons with disabilities, and those who are homeless, or at risk of
homelessness. A variety of supported programs provide mental and physical health care
services, tenant/landlord mediation, subsidized child care, support for victims of domestic
violence and rape, senior services,adolescent counseling, emergency food, nutritional services,
and recreational activities. .
City of Palo Alto 173 2005 -2010 Consolidated Plan
Appendix C: 2005 -2006 Program Year Action Plan
Services and Resources Targeted to Homeless Persons
The following services for persons in the Palo Alto community who are very low-income,
homeless, or at-risk of becoming homeless, are provided with supplemental funding from the
City of Palo Alto either with CDBG or HSRAP funding. The goal of all the services listed is to
prevent homelessness, help move people out of homelessness and to reduce the number of
persons below the poverty line.
Alliance for Community Care: Mental health outreach and service linkage for Palo Alto's adult
homeless population. A casework counselor works in the Palo Alto area to help low-income,
disabled adults access existing mental health and other community resources.
City of Palo Alto Seasonal Jobs Program: Designates several temporary, seasonal employment
opportunities in various City of Palo Alto Departments, for persons who are homeless and
unemployed. The program is targeted to individuals who are motivated to improve their
situations and re-enter the work force.
Clara-Mateo Alliance Shelter: Shelter and transitional housing with casework counseling and
supportive services for homeless individuals, couples and families who are actively working
toward achieving their goals and overcoming homelessness.
Community Technology Alliance: Shelter hotline and voicemail services for homeless
individuals and families. The voicemail service helps case-managed clients· attain individual
goals such as securing health care, housing or employment. A countywide housing information
and referral website was developed and is maintained to assist service providers and housing
seekers.
Emergency Housing Consortium: Shelter and supportive services to homeless persons at the
National Guard Armory in Sunnyvale, the San Jose Reception Center, and other transitional
housing programs in Santa Clara County operated by the agency. Supportive services include
meals, childcare, health care, information and referral, and job and life-skills training.
Shelter Network -Mid-Peninsula Housing Program: Transitional housing with supportive
services in for previously homeless families with children at Haven House and First Step for
Families transitional housing facilities. Also provides a shelter to serve single adults in
Redwood City.
La Comida de California: Provision of affordable, nutritious meals to Palo Alto's elderly
population at various locations throughout the City, including: A venidas Senior Center,
Stevenson House and Cubberley Community Center.
Mayfield Community Clinic: Basic primary health care services and health education and
referral services to uninsured low-income and homeless individuals· from the Palo Alto area .
. Palo Alto Housing Corporation -SRO Hotel Tenant Counseling: Counseling and case-
management services for the low-income residents and prospective residents of single room
City of Palo Alto 174 2005 -2010 Consolidated Plan
!)
Appendix C: 2005 -2006 Program Year Action Plan
the units are available with tenant based Section 8 rental subsidies through the Shelter Plus Care
program.
Haven Family House: Shelter Network of San Mateo County owns and operates this transitional
housing facility for families with children located at 260 Van Buren Road in Menlo Park.
Families reside in one and two bedroom apartments for two to four months depending on their
individual case plans and situations. Comprehensive case management, support services, and
on-site licensed childcare, plus one year of follow-up counseling are available to help families
break the cycle of homeless ness.
First Step for Families: Shelter Network of San Mateo County owns and operates this
transitional housing facility for families with children located at 325 Villa Terrace in San Mateo.
This is a newly constructed facility that provides comprehensive case management, support
services, and on-site licensed childcare. .
Analysis of Impediments to Fair Housing Choice
The City of Palo Alto completed an Analysis of Impediments to Fair Housing Choice on
February 6, 1996. That report identified a lack of housing options affordable to persons oflow
an:d moderate income as the major impediment to housing choice. Housing discrimination was
also identified as an impediment, with cases based on familial status the most often reported.
However, the number of cases of discrimination against persons with physical and mental
disabilities has also been increasing.
The City of Palo Alto joined with other Santa Clara County entitiementjurisdictions to.undertake
a countywide fair housing study that includes 2000 census data and was completed in January
2003. The study includes a demographic analysis, a lending analysis, a review of government
programs and policies, a survey of Santa Clara residents and service organizations, an
assessment of the delivery of fair housing services, and recommendations for new strategies.
The information from the study was incorporated in the revisions to the Analysis of Impediments
to Fair Housing Choice adopted by the City Council in May 2003.
Palo Alto plans to undertake the following actions to foster and maintain affordable housing and
to address housing discrimination during the 2005/06 fiscal year:
¥' Provide tenant/landlord counseling and mediation services for Palo Alto residents through
the Palo Alto Mediation Program (Project Sentinel).
¥' Support the Countywide website that lists subsidized housing opportunities, wait lists and
vacancies.
¥' Provide CDBG funding to the Housing Development Fund for the potential development of a
new affordable housing site in Palo Alto.
¥' Continue to support the Human Relations Commission in their documentation and
investigation of hate crimes, and in their support of diversity, disability, and affordable
housing issues.
¥' Continue to monitor the provision of fair housing services to ensure that adequate services
are being provided, and that services are provided cost effectively.
City of Palo Alto 176 2005 -2010 Cons()lirlr<+~ -' ~.