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HomeMy WebLinkAboutStaff Report 231-05ATTACHMENT A ',) 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 Housing and Community Development Needs 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. City of Palo Alto 59 2005 -2010 Consolidated Plan Housing and Community Development Needs • 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 '. 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. City of Palo Alto 62 2005 -2010 Consolidated Plan Housing and Community Development Needs • 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. City of Palo Alto 65 2005 -2010 Consolidated Plan Housing and Community Development Needs 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 City of Palo Alto 66 2005 -2010 Consolidated Plan 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. City of Palo Alto 69 2005 -2010 Consolidated Plan Housing and Community Development Needs • 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. City of Palo Alto 70 2005 -2010 Consolidated Plan Housing and Community Development Needs • 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 . ' • 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 Housing and Community Development Needs 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, City of Palo Alto 73 2005 -201 0 Consolidated Plan Housing and Community Development Needs 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. City of Palo Alto 74 2005 -2010 Consolidated Plan Housing and Community Development Needs • 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. City of Palo Alto 76 2005 -2010 Consolidated Plan Housing and Community Development Needs 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. City of Palo Alto 77 2005 -2010 Consolidated Plan 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 Housing and Community Development Needs 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 Housing and Community Development Needs 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<+~ -' ~.