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HomeMy WebLinkAbout2004-05-03 City Council (7)City City of Palo Alto Manager’s Report TO:HONORABLE CITY COUNCIL 8 FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: MAY 3, 2004 CMR: 239:04 FINANCE COMMITTEE RECOMMENDATION RE: PROPOSED FISCAL YEAR 2004/05 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATIONS AND DRAFT ACTION PLAN RECOMMENDATION The Finance Committee recommends to the City Council approval of the following: Allocate CDBG funding as recommended by staff and the Citizens Advisory Committee (CAC) in the final 2004/05 Action Plan update to the Consolidated Plan for the period 2000 to 2005. 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 2004/05. 3.Authorize staff to submit the 2004/05 Action Plan to the Department of Housing and Urban Development (HUD) by the May 15, 2004 deadline. Authorize the City Manager, on behalf of the City, to execute the 2004/05 application and Action Plan for CDBG funds and any other necessary documents concerning the application, and to otherwise bind the City with respect to the application and commitment of funds. COMMITTEE REVIEW AND RECOMMENDATIONS The Committee voted unanimously to recommend to Council recommendation with the following changes: the staff and CAC CMR: 239:04 Page 1 of 2 o o Decrease by $30,000 the funding in FY 2004/05 to the CDBG housing development fund and; Provide $30,000 in funding to Economic and Social Opportunities, Inc. (ESO) for housing and energy services in FY 2004/05, to be reviewed mid-fiscal year by Council and; Provide an additional $30,000 to ESO at mid-fiscal year based on ESO’s progress in expending funds allocated to it in the first half of the fiscal year. The additional $30,000 if granted at mid-fiscal year is to be transferred from the CDBG housing development fund. ATTACHMENTS Attachment A: Summary of Funding Recommendations Attachment B: Resolution Attachment C: CMR 190:04 Attachment D: 30th Anniversary of the CDBG Program Announcement Prepared by: ~<s~/~_..t"i~’q.L..v,.~ Eloiza M~rillo-Ga~cia Associate Planne(- CDBG Department Approval: " STt~PHEN~MSLIE Director of Planning and Community Environment City Manager Approval: __ HARRISON Assistant City Manager Cc: Citizens Advisory Committee 2004/2005 CDBG Applicant Agencies CMR: 239:04 Page 2 of 2 ¯ ATTACHMENT A SUMMARY OF FUNDING RECOMMENDATIONS APPLICANT AGENCY CURRENT FUNDING CAC/STAFF FINANCE " FUNDING REQUEST RECOMMENDATIONS COMMITTEE RECOMMEN- DATIONS 2003/04 2004/05 2004/05 2004/05 PUBLIC SERVICES 1.Catholic Charities 5,550 8,940 5,550 5,550 Long-Term Care Ombudsman 2.7,650 10,500 7,650 7,650Emergency Housing Consortium Palo Alto HOMES Program 3.Palo Alto Housing Corporation SRO Support Services 4.Shelter Network Family Transitional Housing 5.Clara-Marco Alliance Family Shelter/Elsa Segovia Center 6.Clara-Marco Alliance Single/Couple Shelter 7.Urban Ministry Homeless Drop-In Center 8. St. Vincent de Paul Day Worker Center Total Public Services (Cap $127,650) 22,300 19,000 20,900 25,000 17,750 9,500 127,650 70,002 20,000 22,000 28,750 60,000 15,000 235,192 22,300 19,000 20,900 25,000 19,100 9,500 129,000 22,300 19,000 20,900 25,000 19,100 9,500 129,000 FAIR HOUSING/ADMINISTRATION 9. Fair Housing Services 25,800.26,800 26,800 26,800 10. City of Palo Alto 140,000 140,000 145,200 145,200 Program Administration Total Administration 165,800 166,800 172,000 172,000 (Cap $167,000) CAPITAL PROJECTS 11. Community Housing,N/A 53,728 109,695 109,695 Inc.(55,697 requested Lytton Gardens Kitchens in FY 2003/04) 12.Palo Alto Housing Corp. Barker Hotel Improvements 13. Economic and Social Opp. Housing & Energy Program 14. Stevenson House Hot Water Piping Project 15. City of Palo Alto/Housing Development Fund New Rental Housing Project Total Capital Projects (Cap $628,440) TOTAL N/A 60,000 N/A 100,000 41,173 60,000 38,260 500,000 41,173 -0- 38,260 439,312 41,173 30,000 (with the possibilty of an additional 30,000 at mid-fiscal year based on performance) 38,260 409,312 693,161 628,440 628,440 1,102,153 929,440 929,440 NOT YET ATTACHMENT B APPROVED RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PAL0 ALTO APPROVING THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR FISCAL YEAR 2004-2005 WHEREAS, on May 8, 2000, the Palo Alto City Council approved and adopted a document entitled "Consolidated Plan", which. identified and established the Palo Altohousing and non-housing community development needs, objectives, and priorities for the period of July i, 2000 to June 30, 2005; and~ WHEREAS, the 2004-05 Action Plan, the annual update to the Consolidated Plan, was subjected to public review and commentary during the period of March 22, 2004, through April 22, 2004; and WHEREAS,.the potential uses of Community Development Block Grant ("CDBG") funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Citizens Advisory Committee and other interested citizens; and WHEREAS, under the CDBG program, the highest priority is given to activities which will benefit peksons with low and moderate incomes; and WHEREAS, the City Council and the Finance Committee of the City Council have held publicly noticed public hearings on the proposed uses of the CDBG funds for fiscal year 2004-05; and WHEREAS, the fiscal year 2004-05 CDBG funds allocated to the City are proposed to implement the following programs; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. The uses of CDBG funds for fiscal year 2004-05 are hereby approved and authorized for the following programs: Catholic Charities’ Long-Term Ombudsman Program. Confidential advocacy and complaint investigation services to residents in Palo Alto’s licensed long-term care facilities.5,550 o 040422 syn 8250023 Emergency Housing Consortium. EHC provides temporary shelter and supportive NOT YET APPROVED o o ° ° 040422 syn 8250023 ° services for homeless individuals and families. County-wide. Palo Alto Housing Corporation. Supportive counseling program for low income residents and prospective residents of single-room occupancy housing in Palo Alto. Shelter Network’s Haven Family. House. Transitional housing and comprehensive supportive services for homeless families at the agency’s Menlo Park facility. Haven Family House seeks to permanently break the cycle of homelessness, re- linking homeless families with stable incomes, jobs, and housing. Clara Mateo Alliance’s Family Shelter Wing and Elsa Segovia Day Center. Emergency and transitional housing and supportive services for homeless families with children. Services include a compre- hensive day center for women and children. All services are provided on the grounds of the VA Campus in Menlo Park. Clara Mateo Alliance’s Shelter. Emergency and transitional housing for homeless persons at the VA campus in Menlo Park. The shelter targets a difficult to serve population such as homeless persons with disabilities, psychiatric disorders, substance-abuse issues, and those with severe mental illness. Urban Ministry of Palo Alto/InnVision. Drop-in Center for the local homeless population. Supportive services include counseling, case management, light meals, shelter referral, bus passes, phone, mail, clothing, and referrals to other agencies. St. Vincent de Paul Society/St. Joseph the Worker Center. The Center connects day laborers with employers and provides a safe alternative for laborers to find employment. The Center also provides 2 7,650 22,300 19,000 20,900 25,000 19,100 NOT YET APPROVED o i0. ii. 12. 13. 14. 040422 syn 8250023 a setting in which both workers and employers can meet and negotiate work projects, hours and conditions..Addi- tionally, clients are provided with assistance in job readiness training, and classes in English as a Second Language. Project Sentinel. Agency was determined through a joint request for Proposals (RFP) issued in collaboration with the Cities of Mountain View and Sunnyvale. Agency will provide services to promote fair housing, including complaint investigation, counseling, advocacy and education. City-wide. City of Palo Alto. Department of Planning and Community Environment. Overall CDBG grant administration and capital improve- ment project delivery costs associated with federal funding. City-wide. City of Palo Alto. CDBG Housing Develop- ment 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. Community Housing Inc. Lytton Gardens Kitchen Renovation. The project is to renovate an additional portion of the 49 kitchens in their assisted living facility. Palo Alto Senior Housing Project, Inc. Stevenson House. Project is to refurbish the insulation and supports of the portion of the hot water piping system installed on the roof. Stevenson House provides 120 units of affordable rental housing to low-income seniors. Palo Alto Housing Corporation, Inc., Barker Hotel. Project is to renovate the interior of the 26-unit single- room occupancy hotel. The renovations 9,500 26,800 i45;2oo 439,312 109,695 38,260 NOT YET APPROVED will include repainting the interior, replacing the carpet and sinks, and the installation of a security system,41,173 TOTAL $929,440 SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed allocation of $816,000 in CDBG funds, from the United States Department of Housing and Urban Development ("HUD") for fiscal year 2004-05, $44,000 in anticipated program income for fiscal year 2004-05, $57,900 in prior years program income and $11,540 in miscellaneous reallocated funds. SECTION 3. The City staff is hereby authorized to submit the 2004-05 annual Action Plan update and appropriate application forms to HUD for the fiscal year 2004-05 CDBG funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. SECTION 4. The City Council hereby finds that the fiscal year 2004-05 CDBG program authorized under Section 1 of this resolution is not a project under the California Environmental Qualit~ Act ("CEQA"). However, the Council further authorizes and directs City staff to conduct any further environmental review, and prepare any additional environmental assessments and certificates that may be required, under CEQA and the National Environmental Policy Act (NEPA) for each .project under the fiscal year 2004-05 CDBG program prior to the release of funds for any such project.~ INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor 040422 syn 8250023 NOT YET APPROVED APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED AS TO CONTENT: CDBG Coordinator City Manager Director of Planning and Community Environment Director of Administrative Services 040422 syn 8250023 ATTACHMENT C City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL ATTENTION: FINANCE COMMITTEE FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: APRIL 6, 2004 CMR: 190:04 PROPOSED FISCAL YEAR 2004/05 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING ALLOCATIONS AND DRAFT ACTION PLAN REPORT IN BRIEF This report transmits the recommendations of City staff and the Citizens Advisory Committee (CAC) for the expenditure of $929,440 in FY 2004/05 Community Development Block Grant (CDBG) funds. The draft Fiscal Year 2004/05 Action Plan includes the funding recommendations, contingency recommendations, a commitment of CDBG funds for an affordable housing project, and the second year of a two-year funding cycle coordinated with the Human Services Resource Allocation Process (HSRAP) beginning in fiscal year 2003/04. RECOMMENDATION ’ Staff and the CDBG Citizen’s Advisory Committee recommend Committee recommend to the City Council approval of the following: that the Finance Allocate CDBG funding as recommended by staff and the Citizens Advisory Committee (CAC) in the final 2004/05 Action Plan update to the Consolidated Plan for the period 2000 to 2005. Commit 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 2004/05. CMR: 190:04 Page 1 of 10 3.Authorize staff to submit the 2004/05 Action Plan to the Department of Housing and Urban Development (HUD) by the May 15, 2004 deadline. o Authorize the City Manager, on behalf of the City, to execute the 2004/05 application and Action Ptan 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. BACKGROUND Consolidated Plan The 2000-2005 Consolidated Plan, adopted by Council on May 8, 2000, is a strategic plan of action that addresses priority housing and community development needs, and sets specific goals for attaining identified objectives. The Consolidated Plan and the Annual Action Plan updates are a requirement in order for the City to receive federal funding from programs such as the Community Development Block Grant (CDBG) or HOME Investment Partnership Act. The Draft 2004/05 Annual Action Plan update has been made available for public review and comment during the period March 22 to April 22, 2004 (Attachment B). The primary need identified in the Consolidated Plan is for affordable housing for low- income persons or persons with special needs. The goal for the five-year period is to provide 125 units of permanent, affordable housing. Palo Alto’s CDBG program is directed toward expanding and maintaining the affordable housing supply, promoting housing opportunities and choices, maintaining and improving comnmnity facilities, and providing supportive services for targeted low-income groups,, including persons who are homeless, persons with disabilities, the elderly, and other special needs groups. In 2002, the City Council approved a two-year funding cycle for CDBG applications similar to the HSRAP process. All of the proposed projects for CDBG funding for fiscal year 2003/04 and fiscal year 2004/05 address the priority housing and supportive service needs identified in the adopted Consolidated Plan. CDBG Regulations The City of Palo Alto receives funds annually from HUD as an entitlement city under the CDBG Pro~am, authorized by Title I of the Housing and Community Development Act of 1974 (the Act), as amended. The primary objective of the Act is "the development of viable urban comnmnities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income." CMR: 190:04 Page 2 of 10 HUD regulations require that all activities must meet one of the three national objectives of the CDBG Program: Benefit low- and very low-income persons; Aid in the prevention or elimination of slums or blight; or Meet other community development needs having a particular urgency, or posing a serious and immediate threat to the health or welfare of the community. Palo Alto has historically expended all of its CDBG funds on projects benefiting low- and very-low-income persons. There are three primary CDBG program activity areas: PuNic 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 2004/05, the maximum available for public services is $129,000. Public Service Cap Calculation: 2004/05 Entitlement Grant (Est.) Program Income - HIP 2003/04’ (Est.) Program Income - PAHC 2003/04’ (Est.) $816,000 $34,000 $10,000 $860,000 x 15%=$129,000 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 fiscal year 2004/05 funding is limited to a maximum of $172,000. Plalming/Administration Cap Calculation: 2004/05 Entitlement Grant (Est.) Program Income - HIP 2004/05’ (Est.) Program Income - PAHC 2004/05’ (Est.) $816,000 34,000 10,000 $860,000 x 20%=$172,000 *Federal regulations require the public service and planning/administration caps to be calculated on program income for different years. CMR: 190:04 Page 3 of 10 Capital Projects: Capital ilnprovement 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 2003/05 funding were mailed to area housing and human service providers on October 16, 2002 and posted to the City’s website. A notice announcing the availability of applications for 2003/04 and 2004/05 CDBG funding was published in the Palo Alto Weekly in October 2002. A proposal-writing workshop was conducted in November 2002 to assist applicants with program regulations and project eligibility questions. The City received 18 applications for funding totaling $1,298,365 for FY 2003/04 and 15 applications for funding totaling $1,102,153 for FY 2004/05. 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 are: Adam Atito, Jeff Blum (HRC Liaison), Irvin Dawid, Chris Kelly, Steven Mullen, Elsbeth Newfield, Jeffrey Rensch, Sylvia Smitham and Heather Trossman Kushlan. Heather Trossman Kushlan was selected as the Committee’s spokesperson. The CAC met weekly during January and February 2003, to discuss and evaluate the applications, interview the applicant agencies and come to a consensus on funding levels for both the 2003/04 and 2004/05 funding. In addition, the CAC toured local applicant sites on two separate days. The funding recommendations made by the Committee and supported by Council in 2003 were preliminary for fiscal year 2004/05; therefore, the CAC met only on three occasions in January and March 2004 to review and finalize those funding recommendations. . DISCUSSION In addition to the annual funding allocations for the three primary CDBG program activity areas, several new circumstances are addressed in this report. Two-Year Funding Allocation Process Pursuant to Council direction on May 16, 2002, staff has implemented a two-year funding allocation process, coordinated with Palo Alto’s Human Services Division cycle for the Human Resource Allocation Process (HSRAP). The two-year process provides the opportunity for City and non-profit staff to undertake longer-term strategic planning and maximize available funding resources. Fiscal year 2004/05 is the second year of the two-year funding cycle. ClvIR: 190:04 Page 4 of 10 Expenditure Rates HUD regulations require that CDBG funds be expended in a timely manner. The regulatory requirement is that no more than 1.5 times a jurisdiction’s annual entitlement grant amount may remain in the letter of credit 60 days prior to the end of the program year. In an effort to reduce the backlog of unspent CDBG funds, HUD informed all jurisdictions of a new policy to employ monetary sanctions against jurisdictions that exceed the regulatory standard. Failure to meet the expenditure standard by May 1, 2005 will cause HUD to reduce the City’s next grant by 100 percent of the amount in excess of 1.5 times the annual grant. For this reason, all funding applications were scrutinized by staff and the CAC to insure the readiness of the program or project to move forward and expend funds in a timely manner. To date, the City has been able to meet its expenditure standard. Commitment of CDBG Funds On May 13, 2002, the City Council allocated $1,000,000 to the City’s Housing Fund to help defray site acquisition costs for a new affordable rental housing project, committing future years CDBG funds; i.e. FY02/03, 03/04 and 04/05. HUD regulations permit allocations from future year’s funding if the request precedes the expenditure and the action had been noticed and identified in the Consolidated Plan or Action Plan updates. For example, if the site were acquired in FY02/03, CDBG funds could be loaned from the General Fund and paid back from the balance in the CDBG Housing Development Fund and from future CDBG allocations. The City Council allocated $118,500 of FY02/03 funds with the balance, of $881,500 funds to be split among FY03/04 and 04/05. The request was modified for fiscal year 2003/04 because a site had not yet been identified and the CDBG Housing Development Fund Was allocated $100,000. Since a new housing site has not been identified and given HUD’s new mandate for timely expenditure of funds, staff recommends an allocation of $439,312 for fiscal year 2004/05 for predevelopment and!or site acquisition costs if a site is identified in fiscal year 2004/05. However, if a site is not identified in fiscal year 2004/05, staff and the CAC recommend that the funds be used for another CDBG-eligible project. One alternative is to provide funding if needed for the construction of the Opportunity Center’s services facility for site clean up or another eligible activity related to the Opportunity Center. 2004/05 Funds Available for Allocation The total amount available for allocation this year is $929,440. The City’s 2004/05 CDBG grant is $816,000, a 3.1 percent increase over the prior year’s grant of $791,000. $11,540 in funds remaining from previous projects is being reallocated to new projects. Also included is $44,000 in program income (income generated directly from the use of CDBG funds) expected to be received in 2004/05, plus $57,900 in program income received in previous years in excess of the estimated amount. CMR: 190:04 Page 5 of 10 In summary: $816,000 11,540 34,000 10,000 57,900 929,440 FY 2004/05 CDBG entitlement grant from HUD* Reallocation of other previous funds Estimated program income for 2004/05 from the City’s Housing Improvement Program (HIP), a single-family residential rehabilitation program that is no longer operational Estimated program income for 2004/05 from the Palo Alto Housing Co!~poration that is generated when rental income exceeds expenses on specific properties acquired or rehabilitated with CDBG funds Actual program income received in previous years in excess of the estimated amounts that were allocated *The amount of entitlement grant is not officially confirmed until the President has signed a budget bill approved by the United States Congress. Funding Recolmnendations - FY 04/05 The chart on the following page shows the applications that were received and the CAC and staff funding recommendations. It should be noted that changes may be necessary in the event that the City’s entitlement grant is increased or decreased when the President sig-ns the actual budget. Attachment A is a narrative explaining the funding requests and funding recommendations in more detail. Staff and the CAC recolimaend the same level of funding as in fiscal year 2003/04 for public service projects, with the exception of Urban Ministry/InnVision based on its performance to date. Urban Ministry/InnVision has significantly exceeded its goals in the current fiscal year. It proposed serving a total of 850 unduplicated individuals during fiscal year 2003/04 and had served over 4,000 people by December 31, 2003. In the fair housing/administration category, staff and the CAC recommend funding at the same level for fair housing seladces and a small increase for CDBG program administration and support. The reason for the increase is that the City will need to prepare an update to the Consolidated Plan (a five-year plan required by HUD) by May 2005 for the period of July 1, 2005 Co June 30, 2010. Five applications for capital projects were received in fiscal year 2004/05. Staff and the CAC recommend funding for four of the five capital projects. Lytton Gardens applied for a total of $109,695 to be divided over fiscal years 2003/04 and 2004/05 for a kitchen renovation project. Lytton Gardens was not awarded funding in fiscal year 2003/04 because it had proposed spreading the project over two years, which would have made the project very difficult for the City to administer. Staff and the CAC recommend full funding on the condition that the rehabilitation project is compressed into two months as CMR: 190:04 Page 6 of 10 opposed to two years to reduce prevailing wage monitoring costs. Lytton Gardens staff has indicated the project can be completed in a two-month timeline. Palo Alto Housing Corporation applied for funding to renovate the Barker Hotel, a 26-unit single-room occupancy (SRO) hotel in downtown Palo Alto in either of the two years of the funding cycle. Staff and the CAC did not recommend funding for the Barker Hotel in fiscal year 2003/04 because the project was of a less urgent nature than some of the other projects. Staff and the CAC recommend full funding for the Barker Hotel renovation project in fiscal year 2004/05. In addition, staff and the CAC recommend funding for the Stevenson House hot water pipes project and the CDBG housing development fund. Economic and Social Opportunities (ESO) received funding in fiscal year 2003/04 to assist 26 Palo Alto households and also applied for fiscal year 2004/05 funding. It has assisted a total of 53 households, however 52 of these households were located at one senior housing project. Outreach efforts to date have not resulted in a variety of households accessing this program. Staff and the CAC do not recommend funding for accessibility and energy efficiency upgrades; however funding may be supported in the future if the outreach program is restructured. CMR: 190:04 Page 7 of 10 FUNDING RECOMMENDATIONS* 2003/2004 2004/2005 CAC/ STAFF APPLICANT AGENCY FUNDING FUNDING RECOMMEN- REQUEST DATIONS PUBLIC SERVICES 1. Catholic Charities 5,550 8,940 Long-Term Care Ombudsman 2. Emergency Housing Consortium 7,650 10,500 Palo Alto HOMES Pro~am 3. Polo Alto Housing Corporation 22,300 70,002 SRO Resident Support Services 4. Shelter Network - Haven Family House 19,000 20,000 Transitional Housing for Homeless Families 5. Clara-Mateo Alliance 20,900 22,000 Family Shelter & Services/Elsa Segovia Center 6. Clara-Mateo Alliance 25,000 28,750 Single/Couple Shelter & Services 7. Urban Ministry 17,750 60,000 Homeless Drop-in Center 8. St. Vincent de Paul 9,500 15,000 Day Worker Center Total Public Services (Cap $129,000) 127,650 235,192 FAIR HOUSING/ADMINISTRATION 9. Project Sentinel 26,800 26,800 10. City of Palo Alto 140,000 147,000 Program Administration Total Administration (Cap $172,000)166.800 173,800 CAPITAL PROJECTS 5,550 7,650 22,300 19,000 20,900 25,000 19,100 9,500 12%000 26,800 145,200 172,000 11. Community Housing Inc. Lytton Gardens Kitchen Renovation 12. Palo Alto Housing Corporation Barker Hotel Improvement Plan 13. Economic and Social Opportunities Housing and Energy Services Pro~am 14. Stevenson House - Senior Housing Safe Showers Program 15.City of Palo Alto/Housing Development Fund Pre-development of New Rental Housing Project Total Capital Projects (Cap $628,440) -0- 60,000 45,200 for Bathtub upgrades 100,000 53,728.56 41,173 60,000 38,260 500,000 693,161.56 1,102,153.56 109,695 41,173 38,260 439,312 628,440 929,440 TOTAL *Changes may be necessary if the amount of funding is increased or decreased when the President signs the budget. CMR: 190:04 Page 8 of 10 POLICY IMPLICATIONS All of the applications recormnended for funding in fiscal year 2004/05 are consistent with the priorities established in the Cit37’s adopted Consolidated Plan for the period 2000 to 2005. 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 3, 2004. The funding allocations and Annual Action Plan update will be submitted to HUD by the May 15, 2004 deadline. ENVIRONMENTAL REVIEW For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting in itself is not a project. HUD environmental regulations for the CDBG program is contained in 24 CFR 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-malting under NEPA. Prior to the commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or assessments, and certify that the review procedures under CEQA, andHUD and NEPA regulations have been satisfied for each particular project. ATTACHMENTS Attachment A: Attachment B: Staff and CAC recommendations for FY 2004/05 CDBG Funding 2004/05 Draft Annual Action Plan Update of the Consolidated Plan for the period 2000 to 2005 Eloiza Mgrill.{~-Garcia, Associate Planner - CDBG ’ DEPARTMENT HEAD: /~0./rWI/Q//i-~---/~-/SitBe EN EMSLI Director of Planning and Community Environment CITY MANAGER APPROVAL: HARRISON Assistant City Manager CMR: 190:04 Page 9 of 10 cc:CDBG Citizens Advisory Committee Members 2004/05 CDBG Applicant Agencies CMR: 190:04 Page 10 of 10 ATTACHMENT A STAFF AND CITIZENS AD~qSORY COMMITTEE (CAC) RECOMMENDATIONS FOR FISCAL YEAR 2004/05 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING PUBLIC SERVICE APPLICATIONS 1.Emergency Housing Consortium (EHC) - Palo Alto HOMES Program 150 Almaden Blvd., 5th Floor, San Jose, CA 95113 2003/04 Funding Funding Request Staff/CAC FY 04/05 Recommendation $7,650 $10,500 $7,650 Proposal: Agency provides emergency shelter and comprehensive supportive services to homeless men, women, families with children, and youth in various facilities in Santa Clara County. EHC operates a youth shelter in San Jose, the winter shelters at the National Guard Armories in Sunnyvale and Gilroy, the regional Reception Center in San Jose, the Sobrato Family Living Center in Santa Clara, and various other transitional housing programs in the County. Supportive services include prepared meals, counseling, child care, transportation, case management, job counseling, and skills workshops to help secure housing and/or employment. Priority Need: Shelter and services for persons who are homeless Discussion: Current contract objectives are being met. This agency provides the majority of homeless shelter services in Santa Clara County, and is an important resource for persons from the Palo Alto area. Agency anticipates providing 2,600 person!shelter nights to 50 unduplicated homeless persons from Palo Alto. 2.Palo Alto Housing Corporation (PAHC) - SRO Resident Support Services 439 Emerson St. and 753 Alma St., Palo Alto, CA 94301 2003/04 Funding .Funding Request Staff/CAC FY 04/05 Recommendation $22,300 $70,002 $22,300 Proposa!: The Palo Alto Housing Corporation maintains two SRO properties: the Barker Hotel and Alma Place. The 26-unit Barker Hotel serves a very low-income population of residents with a history ofhomelessness and special needs. Alma Place is a 106-unit SRO apartment building that serves very low-income residents. A counselor and service coordinator provide support to individual tenants as needs or problems arise, and on an on- going basis. These intensive case management and supportive services play a vital role in helping the residents maintain their stability and housing. Priori _ty Need: Prevention of homelessness Discussion: Current contract objectives are being met. The Barker Hotel and Alma cannot be effectively operated for the benefit of this population without additional services. The service program has dramatically reduced turnover and eviction rates at both facilities. 3. Catholic Charities -Long-Term Care Ombudsman 2625 Zanker Road, San Jose, CA. 95134 2003/04 Funding . Funding Request Staff/CAC FY 04/05 Recommendation $5,550 $8,940 $5,500 Proposal: Agency provides confidential advocacy and complaint investigation services to the approximately 917 residents in Palo Alto’s licensed long-term care facilities. Program beneficiaries are the frail, chronically ill, primarily elderly residents in Palo Alto’s licensed skilled nursing and residential care facilities. Agency staff and trained community volunteer ombudsmen visit residents on a regular basis and as special circumstances dictate (i.e., in response ~o specific complaints). Agency staff and volunteers investigate complaints, including allegations of abuse and neglect, seek fair resolution to problems, and promote residents’ rights for quality care and quality of life in the long-term care setting. Priorit3~ Need: Supportive services for lower-income persons. 2 Discussion: The Ombudsman Program services are not duplicated by any other agency, and provide an important presence in long-term care facilities. The Ombudsman Program is currently exceeding its program goals and objectives. Local volunteers are utilized to provide the majority of site visits. Agency proposes contacting/interviewing 390 Palo Alto residents and conducting 30 complaint investigations. 4. Shelter Network- Haven Family House 260 Van Buren Road, Menlo Park, CA 94025 2003/04 Funding Funding Request Staff/CAC FY 04/05 Recommendation $19,000 $20,000 $19,000 Proposal: Haven Family House provides transitional housing and a comprehensive array of supportive services to homeless families in a newly constructed facility in Menlo Park. Families stay in one- and two-bedroom apartments for up to four months until they can re- connect with permanent housing, jobs, and the skills and resources necessary to break the cycle ofhomelessness. An on-site licensed childcare facility is also available. Priorit~ Need: Transitional housing and supportive services for homeless families with children. Discussion: Haven Family House is an important resource for homeless families with children from northern Santa Clara County. The facility expects to serve 45 homeless ~families representing more that 150 parents and children. It is expected that three to five of the families will be from Palo Alto (representing approximately 11 to 20 parents and children). In addition, Shelter Network anticipates providing 20-50 Palo Alto residents with services at their other shelter facilities. Shelter Network estimates that 70 percent of families completing the program will successfully return to permanent housing. 5.Clara-Mateo Alliance (CMA) - Family Shelter Wing 795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025 2003/04 Funding Funding Request Staff/CAC FY 04/05 ~Recommendation $22,000 $20,900 $20,900 Proposal: The Clara-Mateo Alliance has six individual bedrooms devoted to homeless families. Annually, 30 families (a total ofg0 parents and children) are provided with housing and supportive services. A minimum of 3 homeless families with children will be from Palo Alto. A transitional housing component has been added with the opening of the Elsa Segovia Day Center for Homeless Women and Children. The Elsa Segovia Day Center is the only center for women and children between San Jose and San Francisco. CDBG funds will be used to provide additional supportive services to program beneficiaries. 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. 6. Clara-Mateo Alliance - Shelter and Supportive Services 795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025 2003/04 Funding Funding Request Staff/CAC FY 04/05 Recommendation $25,000 $28,750 $25,000 Proposal: Clara-Mateo Alliance (CMA) provides a 63-bed shelter for homeless individuals and couples, and thirty transitional housing rooms for graduates of the shelter. They provide supportive services aimed at increasing self-sufficiency and finding and maintaining stable housing. The shelter targets the under-served populations such as homeless persons with disabilities, mental illness, psychiatric disorders, and chronic substance abusers. Priority Need: Shelter and services for persons who are homeless Discussion: This program is an important link in the county’s homeless continuum of care. It has been operating since 1997 and serves individuals and couples. It is a collaborative effort with the Veterans Administration, other shelter and service providers and the counties of Santa Clara and San Mateo. The facility serves the homeless sub-populations with someof the greatest needs. It is anticipated that the total program will provide shelter to a minimum of 50 Palo Alto individuals and couples. 7.Urban Ministry of Palo Alto/InnVision" Drop-In Center 400 Mitchell Lane, Palo Alto 94301 2003/04 Funding Funding Request Staff/CAC FY 04/05 Recommendation $17,750 $60,000 $19,100 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 other agencies. Urban Minist~ .caseworkers are available to assist clients find shelter, medical care, employment and to help with other problems. The Drop-In Center operates from the back of the Red Cross building at 400 Mitchell Lane in Palo Alto and serves an average of 150 persons each weekday morning. In addition, the Hotel de Zink Emergency Shelter serves 15-17 persons each night. Prioritsz Need: Shelter and services for persons who are homeless. Discussion: Urban Ministry/InnVision has significantly exceeded their goals in the current fiscal year. They had proposed serving a total of 850 unduplicated individuals and had served over 4,000 by December 31, 2003.. 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- St. Joseph the Worker Center 18.80 California Avenue, Mountain View, CA 94043 2003/04 Funding Funding Request Staff/CAC I FY 04/05 Recommendation $9,500 $15,000 $9,500 Proposal: The St. Joseph the Worker Center was .formed in Mountain View eight years ago to connect day laborers with employers. The Center provides a safe alternative for laborers, who often gather along E1 Camino Real in Mountain View, Los Altos and Palo Alto, to find employment. The Center provides a setting in which both workers and employers can meet -and negotiate work projects, hours and conditions. St. Vincent de Paul staff also help with job applications and job readiness training, including classes in English as a Second Language. The Center relocated to its current site in May 2002 from its original location in Los Altos. Priorit~ Need:. Supportive services for lower-income persons. Discussion: The Center serves approximately 3,000 unduplicated workers living in the north Santa Clara County area. This is the only progam of its kind that is especially geared to meet employment and basic needs of an extremely low-income, underserved population in the Palo Alto area. FAIR HOUSING/ADMINISTRATION . 9. Project Sentinel - Fair Housing Services 2003/04 Funding Funding Request Staff/CAC FY 04/05 Recommendation $26,800 $26,800 $26,800 Proposal: The City of Palo Alto issued a joint Request for Proposals (RFP) to Provide Fair Housing Services for North Santa Clara County with the Cities of Mountain View and Sunnyvale beginning in fiscal year 2003/04 with an optional renewal in fiscal year 2004/05. The Cities selected Project Sentinel as their fair housing service provider. Project Sentinel will provide investigation,~ counseling and legal referrals for victims of housing discrimination; community education and outreach regarding fair housing taw and practices; and research, analyses, and reporting for City staff and officials regarding fair housing practices. Priority Need: Fair Housing Services Discussion: The collaboration between the 3 cities came as a result of the Countywide Fair Housing Study, which was released in January 2003. The Department of Housing and Urban Development (HUD) regulations require CDBG entitlement jurisdictions to affirmatively further fair housing choice. Staff and the CAC recommend a contract renewal in fiscal year 2004/05 at the same level of funding they were allocated in fiscal year 2003/04. 10.City of Palo Alto - Department of Planning and Community Environment 250 Hamilton Avenue, Palo Alto, CA 94301 2003/04 Funding Funding Request Staff/CAC FY 04/05 Recommendation $140,000 $147,00 $145,200 Proposal: Funding is requested to reimburse the City General Fund for costs related to the overall management, coordination, monitoring and evaluation of the CDBG Pro~am, including oversight of public service contracts, data gathering, studies, analysis, plan preparation, and the identification of actions for implementation of plans. Priorit3, Need: CDBG Pro~am Administration and support Discussion: The cost of administering the CDBG program is approximately $200,000 per year. A reimbursement of $14.5,200 from grant funds is well within the 20% administrative cap and helps alleviate General Fund budgeting constraints. Additional funding was requested in fiscal year 2004/05 because the City will needto prepare an update to the Consolidated Plan by May 2005 for the period of July 1, 2005 to June 30, 2010. CAPITAL AND/OR HOUSING PROJECTS 11.Community Housing Inc. - Lytton Gardens Kitchen Renovation 649 University Avenue, Palo Alto, CA 94301 FY 03/04 FY 04/05 FundingRequest $55,967.25 $53,728.56 2003/04 Funding $0 Staff/CAC Recommend~ion $0 $109,695 Proposal: Community Housing Inc. owns and operates Lytton Gardens I and II providing 318 units of affordable housing and multi-level care to low-income seniors. This proposal is to renovate 49 kitchens in their assisted living facility. A modern mini kitchen that will be easier to use by frail elderly residents will replace the existing galley kitchens of 1974, which do not comply with the Americans with Disabilities Act. Priority Need: Rehabilitation of affordable rental housing Discussion: Staff and CAC recommend funding of $109,695 on the condition that the rehabilitation project is compressed into 2 months as opposed to 2 ?,ears to reduce prevailing wage monitoring costs. Lytton Gardens staff has indicated the project can be completed in a two-month timeline. This is the total amount of funding requested for both fiscal years. 12.Economic and Social Opportunities - Housing and Energy Services Program 1445 Oakland Road, San Jose, CA 95112 FY 03/04 FY 04/05 Funding Request $6O,00O $60,00O 2003/04 Funding $6O,OOO Staff/CAC Recommendmion $60,000 $0 Proposal: Agency proposes to assist a minimum of 26 low-income Palo Alto households with home improvement services. These services are designed to identify and improve hazardous conditions in homes, improve accessibility and use for seniors and individuals with disabilities, improve energy efficiency and make necessary minor repairs in order to avoid more expensive solutions in the future. Priority Need: Conservation of energy and improved acce_.ssibility for individuals with physical disabilities Discussion: This project received $60,000 in funding in FY 2003-04 to assist Palo Alto households. As of December 31, 2003 they had assisted a total of 53 households, however 52 of these households were at one senior housing project. Outreach efforts to date have not resulted in a variety of households accessing this program. Although ESO has assisted several households, the need for this program does not appear to be as great as originally anticipated. CAC and staff do not recommend additional funding to this organization in fiscal year 2004/05, however funding may be supported fin the future if the outreach program is restructured and there is a demonstrated need for the continuation of the program. 13.Palo Alto Housing Corp. - Barker Hotel Improvement Plan 439 Emerson Street, Palo Alto, CA 94301 Funding Request FY 04/05 $41,173 2003/04 Funding $0 Staff/CAC Recommendation $41,173 Proposa!: Palo Alto Housing Corporation seeks funding for improvements needed at the Barker Hotel, a 26-unit single room occupancy (SRO) property located in downtown Palo Alto. The improvement plan includes new carpeting, exterior paint, and installation of an entry system and new sinks in the upstairs units. Priority Need: Rehabilitation of affordable rental housing Discussion: Palo Alto Housing Corporation requested funding for this project in either year of the two-year funding cycle. The Barker Hotel project was not funded in fiscal year 2003/04 because the project was not as urgent as some of the other projects that also applied for funding in that fiscal year and it was not possible to fund every project. Staff and the CAC recommend full funding for the Barker Hotel project. 14. Stevenson House - Hot Water Piping Project 455 E. Charleston Road, Palo Alto, CA 94306 FY 04/05 Funding Request $38,260 2003/04 Funding $45,200 for Bathtub Upgrades Staff/CAC Recormnendation $38,260 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 refurbish the insulation and supports of the portion of the hot water piping system installed on the roof. PrioriW Need:Rehabilitation of affordable rental housing Discussion: Staff and the CAC recommend full funding for this project because it will eliminate the need to make frequent repairs to the water pipe system. Stevenson House does not have the necessary resources to cover the costs of major repairs because their affordable rents do not cover more than normal operating costs. This project is intended to prevent deterioration and failure of the hot water system, due to faulty insulation and inadequate pipe supports. Without repair, the hot water system supplying water to resident apartments is in danger of failure. 15. City of Palo Alto - CDBG Housing Development Fund Planning Department, City Hall Funding Request 2003/04 Funding Staff/CAC Recommendation FY 03/04 $100,000 $100,000 $100,000 FY 04/05 $500,000 $439,312 Proposal: On May 13, 2002, the City Council allocated $!,000,000 in CDBG funding to the City’s Housing Fund to help defray site acquisition costs for a new affordable rental housing project, committing future years CDBG funds, i.e. FY02/03, 03/04 and 04/05. HUD regulations permit allocations from future year’s funding if the request precedes the expenditure and the action had been noticed and identified in the Consolidated Plan or Action Plan updates. For example, if the site were acquired in FY02i03, CDBG tunas could be loaned from the General Fund and paid back from the balance in the CDBG Housing Development Fund and from future CDBG allocations. The City Council allocated $118,500 of FY02/03 funds with the balance of $ 881,500 funds to be split among FY03/04 and 04/05. At the time the Council approved the allocation in FY 02/03, the site of the future project was not yet identified but since an acre of land in Palo Alto typically costs $3 to $5 million an acre, it was anticipated that a commitment of all of the City’s Commercial and Residential Housing funds together with $1,000,000 of CDBG would be needed to secure a site. In July 2002, the City selected Eden Housing Inc. to evaluate the feasibility of sites identified in the Housing Element of the Comprehensive Plan and to secure control of an appropriate site. However, due to limited land availability and high land costs to date, Eden Housing Inc. has not been successful in securing a site. Priority Need: Affordable rental housing Discussion: Since a new housing site has not been selected and HUD’s new mandate for timely expenditure of funds, there was a modification of the May 13, 2002 action to allocate future CDBG Housing Development funds. The FY03/04 funding allocation was reduced to $100,000 in FY03/04 for pre-development costs for a site yet to be confirmed and $500,000 was retained in FY04/05 for site acquisition. Staff and the CAC recommend funding in the amount of $439,312 in order to fully fund Lytton Gardens, the Barker Hotel and Stevenson House. In addition, if a site is not selected in FY 04/05 CAC and staff recommend that the funds be used for another CDBG-eligible project. One alternative is to provide funding, if needed, for the construction of the Opportunity Center’s services facility for site clean up or another eligible activity related to the Opportunity Center. 10 ATTACHMENT B CITY OF PALO ALTO Housing and Community Development DRAFT 2004/2005 ACTION PLAN Annual Update of the City’s Consolidated Plan for the Period July 1, 2000 to June 30, 2005 Public Review Period March 22, 2004 - April 22, 2004 Prepared by Department of Planning & Community Environment 250 Hamilton Avenue Palo Alto, California 94301 Steve Emslie, Director For Information, Please Comact: Eloiza Murillo-Garcia, Associate Planner, CDBG Planning Division, City of Palo Alto (650) 329-2428 Draf~ 2004-2005 Action Plan CITY OF PALO ALTO FISCAL YEAR 2004/2005 ACTION PLAN ANNUAL UPDATE TO THE CITY’S CONSOLIDATED PLAN FOR THE PERIOD JULY !, 2000 TO JUNE 30, 2005 Background and Introduction This Action Plan is the 2004/2005 annual update to the City’s Consolidated Plan for the Period July 1, 2000 to June 30, 2005. It describes the eligible programs, projects and activities the City plans to undertake with funds that are expected to be available during the 2004/05 fiscal year. The Consolidated Plan is a five-year planning document that describes local conditions and resources, identifies priority housing, human service, and community development needs, and outlines a strategy and plan to address the identified needs. The Consolidated Plan and the annual Action Plan updates are submitted to the U.S. Department of Housing and Urban Development (HUD) to enable the City of Palo Alto to receive and administer federal funds under the Community Development B-lock Grant (CDBG) program. The Consolidated Plan is meant to serve as a guide to insure that federal funds are directed toward the most urgent community needs, and that funding decisions are consistent with locally identified priorities and strategies..The Action Plan describes how the activities to be undertaken with CDBG funds in 2004/2005 will meet the long-term goals and objectives outlined in the Consolidated Plan. The Action Plan also identifies the actions the City will undertake to affirmatively further fair housing choice. Public Review and Public Hearings HUD regulations require that the Draft Action Plan be available for a 30-day public review and comment period. The review and comment period for the 2004/05 Action Plan was from March 22, 2004 to April 22, 2004. Interested citizens were invited to comment on the Draft Action Plan at either of the public hearings on April 6, 2004 and May 3, 2004, or by submitting written comments by April 22, 2004 to the City of Palo Alto, CDBG Coordinator in the Department of Planning and Community Environment, at 250 Hamilton Avenue, Palo Alto, CA 94301. Citizen Participation 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. Fiscal year 2004-2005 is the second year of a two-year funding cycle, therefore the CAC met only on January 15 and 29, 2004 to make final funding recormnendations. During 2003, the CAC met on nine separate occasions to review and evaluate the applications, interview the applicant agencies, review the Consolidated Plan priorities, and make funding recommendations on the applications submitted for 2003/04 CDBG funding and preliminary recommendations for applications submitted for 2004/05 CDBG funding. In addition, the CAC met for two special meetings in January 2003 to tour many of the Draft 2004-2005 Action Plan agencies that submitted funding applications, including those that submitted applications for fiscal year 2004/05. Draft 2004-2005 Action Plan EXECUTIVE SUMMARY OF THE CONSOLIDATED PLAN The City of Palo Alto is a suburban California City situated on the northena border of Santa Clara County in the heart of Silicon Valley. The City is known for its association with the world famous educational and research institution of Stanford University, a major center for medical care and research. Palo Alto is also a center of international culture, art, shopping and food. Palo Alto has a resident population of approximately 58,600 people. According to 2000 census data, the Citywide breakdown by race is as follows: White 76%, Asian t7%,.Black 2%, Other or Two or More Races 5%. Palo Alto is, overall, a very affluent community. In 2000, only 4.8% of the population was below the poverty level. The 2004 median income for a family of four in Santa Clara County is $105,500, one of the highest in the nation. There is a greater demand for housing in Palo Altothan can be met, This is because Palo Alto is a desirable place to live, there is an intense demand for available units, and there is very little land available for new housing development. Developers of affordable housing projects must, therefore, compete with developers of market rate housing for the limited land available. The ratio of jobs to housing is another factor. Although there has been a downturn in the economy, the City still contains about 9.1% of all the County’s jobs and only3.5% of its population, . according to the City of Palo Alto Housing Element Technical Document 1999-2006. The City ofPalo 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 main housing goal for the five-year Consolidated Plah is to increase the supply of affordable rental housing by 125 units. It is a high priority to increase the number of units suitable for families with children. CDBG funds will be targeted to very low- and low-income renters, especially families with children, homeless individuals and those "at-risk" of becoming homeless, persons with special needs, and elderly persons. The need to preserve the existing affordable rental housing stock is an important ongoing objective. A high priority is also placed on providing housing with supportive services for persons with special needs such as the frail elderly, and those with developmental, physical and mental disabilities. The Santa Clara County Collaborative on Housing and Homelessness has adopted a countywide Continuum of Care strategy and approach to the problems .ofhomelessness. By identifying gaps in services on a regional basis, the needs of persons who are homeless or are at-risk of becoming homeless can be more effectively addressed. The City of Pato Alto participates in the Collaborative and has identified as a high priority need, the provision of additional resources in northern Santa Clara County for homeless services and supportive housing. Specifically, a facility is needed for the provision of services such as showers, laundry, counseling, information and referral, respite, and case-management. Additionally, more units of transitional and permanent housing are needed for this population. 4 Draft 2004-2005 Actien Plan 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 the creation of an indoor Day Center facility for the provision of supportive services for homeless persons (together with a housing component) 4. Support organizations that provide a variety of human services to low-income, at-risk populations 5.Provide assistance and supportive services to low- and very-low income Palo Alto residents to keep them from becoming homeless Draft 2004-2005 Action Plan RESOURCES AVAILABLE The City of Palo Alto encourages local non-profit housing and public service agencies to pursue all available public and private funding sources in order to achieve the goals of the Consolidated Plan. Most projects and activities secure funding from a variety of sources including private donations, charitable foundations, and church and community fundraising to leverage federal, state and local funding. Federal Resources Community Development Block Grant (CDBG) Funds The City receives CDBG funds as an entitlement grant through the U.S. Department of Housing and Urban Dm,elopment (HUD). In fiscal year 2004/05, the City will allocate $929,440 in CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. The amount of the City’s 2004/05 CDBG entitlement grant from HUD is estimated to be $816,000, estimated program income is $44,000 and reallocated fimds total $11,540. 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 2004/05 CDBG Entitlement Grant $816,000 Program Income: Estimated Program Income 2004/05 (HIP) Estimated Program Income 2004/05 (PAHC) Excess Prior Year Program Income 34,000 !0,000 57,900 Reallocated Funds: Miscellaneous Reallocations !1,540 TOTAL ALLOCATION $929,440 Loan repayments from the City’s former Housing Improvement Pro~am (HIP) single-family rehabilitation loan pro~am are estimated to be $34,000 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 Pro~am 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 Draft 2004-2005 Action Plan maximum HOME award per project to one million dollars. When a Notice of Funding Availability (NOFA) is published, the City evaluates all. potentially suitable projects to determine whether or not to apply for a HOME grant. Low Income Housin~ Tax Credit Program The Palo Alto Housing Corporation applied for and received an award of $4.5 million in State Multifamily Housing Program (MHP) funds in the first round of 2003 funding. They combined the MHP funds with an award of the 4% tax housing credits (providing $5.6 million in equity) and tax-exempt bond financing for construction and permanent debt (a $2.3 million, 30-year loan) through the California Housing Finance Agency (Cal HFA). Construction begun in September 2003 and completion is scheduled for Spring 2005. State, Local and Other Resources City Affordable Housin.~ 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 o’f 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 theHousing 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, 2003, 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. Itis also used to pay for administration and consultant contracts necessary to carry out the BMR program. As of December 31, 2003, the Residential Fund had an available balance of approximately $1,200,000. CDBG Housing Fund - The purpose of the CDBG Housing Fund is to have funds available on an ongoing basis to utilize when necessary to facilitate the development, rehabilitation and preservation of low- income housing. Housing development opportunities, especially opportunities to acquire land for new housing construction, may come up at any time throughout the year and, due to the nature of the real estate market, a quick response is frequently necessary. CDBG Housing Funds may be used to pay for costs associated with the investigation of the feasibility of sites or properties for potential acquisition by the City, or nonprofit organizations, for affordable housing. These costs usually need to be paid prior Draft 2004-2005 Action Plan to a project being officially created in the budget. Typically these costs are for appraisals, environmental studies and soil testing; title reports and conceptual design studies. HOME Program Income Fund - the City has only one HOME funded project, the Barker Hotel Single Room Occupancy. This project was funded in part with a $1 million 1992 HOME grant from the State. The City’s funding is in the form a long-term, deferred loan and there has not been any program income from that loan. Below Market Rate (BMR) Emergency Fund - This fund was authorized by Council in September 2002 in order to provide.funding on an ongoing basis for loans to BMR owqaers for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR Ownership units. The actual process for initiating an appIication for City Affordable Housing Funds will vary depending on the particular circun~stances. Usually, a nonprofit sponsor will apply to the Department of Planning and Community Environment for housing subsidy funds when they are in negotiation for a particular site. At other times, the City may issue a Request for Proposal once it has secured or identified a potential housing site. The ~Planning Department will present recommendations for each project together with a proposed funding package to the City Council for approval. In almost all cases, funds will be provided as a loan secured by the property. The repayment terms and interest rate have to be tailored to the particular proj ect since affordable housing typically is financed from multiple sources with specific requirements. Housing Trust of Santa Clara County (HTSCC) The HTSCC is a puNic/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 ot~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 M award in February 2003 from the State, in the same competition as the City, under the State’s Proposition 46 Housing Trust Fund Grant Program. Multifamilv Housin~Pro~am (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 lands may be used for multifamilyrental 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 ~ound of funding. In addition, Community Draft 2004-2005 Action Plan 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. Multifamitv 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 2004 that Palo Alto was receiving an award of $1,000,000. The City’s $1million 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 Housin~ 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 dollar award in September 2003. Draft 2004-2005 Action Plan STATE, LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE HOUSING Ac.tivity Acquisition STATE, LOCAL, and PUBLIC Commercial Housing Fund Residential Housing X Fund State MHP X City Owned Land MCC Progam Housing Bond Trust X Housing Trust of X Santa Clara County Santa Clara County X Housing Authority - Section 8 Count3, Department of Social Services Santa Clara: County X Affordable Housing Fund PRIVATE RESOURCES BlVIR Rental & Owner Pro~am Private Lenders: AHP X Nonprofit Developers X Private Foundations and Churches Rehab New Home Rental Homeless Construction Buyer Assistance Assistance Assistance Homeless Prevention X X X X X X X X X X x X x x x x x x X X X X X X X X X X X X X X X X X X 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. 10 Draft 2004-2005 Action Plan Geographic Distribution The Map attached to this repolt shows the location Of all the proposed activities for fiscal year 2004/05. The City considers the provision of all types of housing assistance on a cRy-wide 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. Census tract 5107 in the Olive-West Meadow/Ventura area is an area of considerably greater population and housing diversi~y than that which is found in most parts of Palo Alto. Although there are no areas within the City that are considered areas of minority concentration, 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 mukiple-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 27.08 percent for area benefit activities. Specific efforts have been coordinated in the City’s Community Service and Police Departments to focus on activities and services in the Ventura neighborhood. A number of City-sponsored programs and activities serving low- and very low-income persons have either been undertaken or proposed. A police substation was opened in the area with the goal of improving contact with the Community. Changes to Strategy HUD has informed the City of Palo Alto of a change of policy relating to the timely expenditure of CDBG funds. The federal regulatory standard is that no more than 1.5 times ajurisdiction’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, 2005 will cause HUD to reduce the City’s next grant by 100% of the amount iil excess of 1.5 times the annual grant. For this reason, all funding allocations for 2004/05 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 proj ects involving new construction or acquisition of apartments typically take more time and planning and are subject to more delays than other capital projects. It may create situations where lower priority activities will be undertaken instead of higher priority activities simply because they are easier to accomplish and ready to proceed. The City Council approved the change to a two-year CDBG funding cycle beginning with the 2003/04 fiscal year and this is reflected in the amendment of the Citizen Participation Plan 11 Draft 2004-2005 Action Plan adopted by the City Council in December 2002. Many Cities in the Bay Area have adopted extended CDBG funding cycles and fmd them to be an effective too! to streamline "process" and provide administrative relief to both city and non-profit staff. Palo Alto’s Human Services Division adopted a two-year funding cycle for the Human Resource Allocation Process (HSRAP) in fiscal years 2001/02 and 2002/03. Their experience was positive and they continued the two-year funding cycle for the period 2003/04 through 2004/05. Coordination of the CDBG and HSRAP funding processes is essential to the effective delivery of local human service funding. Collaboration between the non-profit agencies and the City’s funding sources avoids confusion, duplication of effort, and ensures that the highest identified community needs are met. The two-year process provides the opportunity for City and non- profit staff to undertake longer-term strategic planning and to maximize available funding resources. 2004/2005 PROJECTS AND ACTIVITIES TO BE UNDERTAKEN All of the projects and activities to be undertaken with the 2004/2005 CDBG cycle funding allocation address the priority housing and community development needs identified in the Consolidated Plan. The attached Part III "Proposed Projects" describes on the required HUD forms each project or service activity, the 2004/05 funds allocated, the expectedproject beneficiaries, and the HUD national objective. Housing Activities City of Palo Alto Housing Strategy The Consolidated Plan proposes a five-year strategy to develop 125 newly donstructed rental units over the 2000-2005 planning period. The 125 units would be affordable to households in the very low- or low-income catego.ries 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 t{ousing as one of their top five priorities.. The City has made significant progress on the first housing project that is part of the 2000-2005 Consolidated Plan strategy. The Community Working Group (CWG))s 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 IrmVision (an experienced shelter and service provider) wil! 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. 12 Draft 2004-2005 Action Plan In order to resolve the site control i~sues and provide the developer capacity to implement this high priority, but extremely complex project in a timely manner, CWG agreed that the Housing Authority would take the lead role as developer. CWG has assigned the Palo Alto CDBG funds to the Housing Authority and the Housing Authority has agreed to utilize its eminent domain authority, if necessary, to remove the title issues and secure ownership of the entire site. The Housing Authority will be the applicant and administrator for the complex mix ofloans, grants and tax credit financing that must be assembled to construct this $23 million dollar facility. In fiscal year 2001/02, $480,000 in CDBG funding was allocated to this project. An additional $800,000 in CDBG funds was allocated in 2002/03 for predevelopment, relocation and acquisition costs. The total City CDBG funding for the Opportunity Center was $1,280,000. In addition, $750,000 was allocated from the city Housing Development fund in fiscal year 2003/04 for construction costs. CWG and the Housing Authority have secured a number of new funding, sources in fiscal year 2003/04, including Multifamily Housing Program funds, Santa Clara County Office of Affordable Housing funds, and Low Income Housing Tax Credits. Construction is scheduled to begin in late spring 2004, and the construction period will last 18 . months. The grand opening for the Center is projected for December of 2005. CDBG Housin~ Development Fund - $480,485 On May 13, 2002, the City Council allocated $1,000,000 from the CDBG Housing Development Fund ~for a portion of the site acquisition costs for a new affordable rental housing project. This was accomplished by the commitment of future years CDBG funds, i.e. FY02/03, 03/04 and 04/05.. HUD regulations permit allocations from future year’s funding if the request precedes the expenditure and the action has been noticed and identified in the Consolidated Plan or Action Plan updates. For example, if the site were acquired in FY02/03, CDBG funds could be loaned from the General Fund and paid back from the balance in the CDBG Housing Development Fund and from future CDBG allocations. The City Council allocated $118,500 of FY02/03 funds with the balance of $881,500 funds to be split between FY03/04 and 04/05. The site of the future project was not yet identified but since an.acre of land in Palo Alto typically costs $3 to $5 million an acre, it was anticipated that a commitment oral! of the.City’s Commercial and Residential Housing funds together with $1,000,000 of CDBG funds would be needed to secure a site. In July 2002, the City selected Eden Housing Inc; to evaluate the feasibility of sites identified in the Housing Element of the Consolidated Plan and to secure control of an appropriate site. Due to the lengthy process of site analysis and negotiation for purchase, and HUD’s new requirements for timely expenditure of funds, staff recommended a modification of the May 2002 action to allocate future CDBG Housing Development funds: $100,000 in FY03/04 for pre- development costs for a site yet to be confirmed and $480,485 in FY04/05 for site acquisition. If a site has not been identified in FY 04/05, the funds will be reallocated to another project. One alternative is to provide funding if needed for the construction of the Opportunity Center’s services facility for site clean-up or another eligible activity related to the Opportunity Center. 13 Draft 2004-2005 Action Plan Palo Alto Senior Housin.~, Inc. (Stevenson House) - $38,260 Stevenson House is a 120-unit residential facility for low-income seniors located at 455 E. Charleston Road in Pal0 Alto. The facility presently serves 134 very-low income elderly residents with an average age of 79 years old. The facility is 35 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 repair and upgrade the hot water piping system that is located on the roof of the facility. The pipes are deteriorated and cause Stevenson House to make frequent temporary repairs to the system. The rehabilitation of existing lower-income rental housing is a high priority in the Consolidated Plan. Community Housin~ Inc., (Lytton Gardens) - $109,695 Community Housing Inc. owns and operates Lytton Gardens I and II, which provide 318 units of affordable housing and multi-level care to low-income seniors. This proposal is to renovate 49 kitchens in their assisted facility. A modem mini kitchen that will be easier to use by frail and elderly residents will .replace the existing galley kitchens of 1974 that do not comply with the Americans with Disabilities Act. CDBG Proposed Public Service Activities public service funds will be targeted to the following programs in fiscal year 2004/05: $ 7,650 to Emergency Housing Consortium - Emergency Shelter $22,300 to Palo Alto Housing Corporation- SRO Tenant Counseling Program $20,900 to Clara-Mateo Alliance - Elsa Segovia Center for Homeless Families $25,000 to Clara-Mateo Alliance - Shelter/Transitional Housing for Individuals $19,000 to Shelter Network - Haven Family House Family Transitional Housing $19,100 to Urban Ministry - Homeless Day Center and Services $ 9,500 to St. Vincent de Paul, St. Joseph the Worker Program $ 5,550 to Catholic Charities - Long-Term Care Ombudsman Pro~am Human Services In addition to the CDBG public service funds, the City will provide $1,278,853 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 procures provide mental and physical health care services, tenant/landlord mediation, subsidized child care, support for victims of domestic 14 Draft 2004-2005 Action Plan violence and rape, senior services, adolescent counseling, emergency food, nutritional services, and recreational activities. 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 ofhomelessness 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 Pro.aram: 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. Elsa Segovia Day Center for Homeless Women and Children: Day center and supportive services including child care, health care, employment counseling, clothing and respite for homeless families with children. Emer.~enc¥ Housin~ Consortium: Shelter and supportive services to homeless persons at the National Guard Armory in Sunn3wale, 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 - Haven Family House: Transitional housing with supportive services in Menlo Park for previously homeless families with children. The newly renovated facility includes individual apartments and an on-site licensed childcare center. 15 Draft 2004-2005 Action Plan La Comida de California: Provision of affordable, nutritious meals to Palo Alto’s elderly population at various locations throughout the City, including: Avenidas Senior Center, Stevenson House and Cubberley Community Center. Mavfield Community Clinic: Basic primary health care services and health education and referral services to uninsured low-income and homeless individuals from the Palo Alto area. Palo Alto Housing Corporation - SRO Hotel Tenant Counseling: Counseling and case- management services for the low-income residents and prospective residents of single room occupancy hotels in Palo Alto including the Barker Hotel at 439 Emerson Street. Many SRO hotel residents have a history ofhomelessness and special needs. The program plays a vital role in helping the residents maintain their stability and housing. Second Harvest Food. Bank: Distributes supplemental groceries and food services to very low- income seniors and people with disabilities through the Operation Brown Bag Program. Groceries are distributed weeldy at the Ventura School site to income eligible participants. Social Advocates for Youth: Crisis intervention, counseling and short-term shelter and crisis resolution treatment services for at-risk youth who are beyond parental control, or have run away, or who are homeless. The youth shelter is located in Mountain View. Support Network for Battered Women: Emergency shelter and supportive services for victims of domestic violence, primarily battered women and their children. Supportive services include food, transportation, counseling, and legal services. Victims often must deal with issues of homelessness in the context of a violent domestic situation. Urban Ministry ofPalo Alto/InnVision: Services for very-low income or homeless persons including bagged groceries, hot meals, emergency shelter, information and referral, case- management and money management (payee) pro~ams. The Urban Ministry staffs the outdoor morning drop-in center located behind the Red Cross building at 400 Mitchell Lane. Bagged groceries are distributed daily at the Downtown Food Closet located at 425 Hamilton Avenue in Palo Alto. The Urban Ministry has merged with InnVision, a very experienced provider of services, emergency shelter and transitional housing. St. Joseph the Worker Program: The day worker program based in Mountain View helps low- income job seekers connect with employers in a dignified professional atmosphere. Support services and classes are also offered to help workers increase and improve their language and job skills. Catholic Charities Lon~ Tema- Care Ombudsman Program: Agency provides confidential advocacy and complaint investigation services to the approximately 9!7 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 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 !ong-term care setting. 16 Draft 2004-2005 Action Plan Transition from Homelessness to Permanent Housing Shelter Plus Care (S + C): The S + C program is administered through the Office of the Santa Clara County Homeless Coordinator. It is a federal grant program that provides Section 8 rental assistance to participating landlords on behalf of eligible tenants for a period of up to five years. Extensive support services are a necessary and required component of the program that targets people who are homeless and disabled. There are 10 housing units available for S + C clients in Palo Alto. The Barker Hotel: The Barker is owned and operated by the Palo Alto.Housing Corporation (PAHC), and has 25 units of permanent Single Room Occupancy (SRO) housing at rents affordable to persons with incomes between 30% and 50% of the median income. Rents range from $325 to $433 per month based on size and whether they have their own bathrooms. Five of the Barker’s units are fully accessible by wheelchair users. Priority for occupancy is for persons who are homeless (either unsheltered or sheltered), persons with disabilities, and persons with extremely low-incomes. Three of the units are available with tenant based Section 8 subsidies through the Shelter Plus Care program. Alma Place: Alma Placeis located at 753 Alma Street in Palo Alto, and is also owned and operated by the Palo Alto Housing Corporation. The project, a 106-unit single room occupancy resident hotel, is affordable to low- and very low-income persons due to the layering of subsidies from City Housing Reserve funds, a private bank loan, an Affordable Housing Program (AHP) Grant, and an award of low-income housing tax credits. The studio apartments rent for $375 to $535 per month and are available to persons earning below 40% of the median income. Seven of the units are available with tenant based Section 8 renta! subsidies through the Shelter Plus Care program. Haven Family House: Shelter Network of San Mateo County owns and operates this transitional housing facility for families with children located at 260 Van Buren Road in Menlo Park. Families reside in one and two bedroom apartments for two to four months depending on their individual case plans and situations. Comprehensive case management, support services, and on-site licensed childcare, plus one year of follow-up counseling are available to help families break the cycle ofhomelessness. Analysis of Impediments .to Fair Housing Choice The City of Palo Ako completed an Analysis of Impediments to Fair Housing Choice on February 6, 1996. That report identified a lack of housing options affordable to persons of low and moderate income as the major impediment to housing choice. Housing discrimination was also identified as an impediment, with cases ~based on familial status the most often reported. However, the number of cases of discrimination against persons with physical and mental disabilities has also been increasing. 17 Draft 2004-2005 Action Plan The City of Palo Alto jolned with other Santa Clara County entitlement jurisdictions to undertake a count)~vvide fair housing study that includes 2000 census data. The report .fell behind schedule but 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 revis.ions 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 2004/05 fiscal year: Provide tenant/landlord Counseling and mediation services for Palo Alto residents through the Palo Alto Mediation Pro~am (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. Work with the Santa Clara County CDBG entitlement cities in their effort to implement any recommended improvements to the delivery of services on a regional basis. Provide funding to Project Sentinel, funded by and selected jointly by the cities of Palo Alto, Mountain View, and Surmyvale to reduce discrimination in housing by: a. Investigating cases of housing discrimination b. Conducting consultations with persons who believe they have been discriminated against c. Maintaining a pool of trained testers for investigations and conducting training’s d. Maintaining a panel of attorneys for referral and coordinating meetings for participating attorneys e. Running ads in the Palo Alto Weekly, San Jose Mercury News, and other media outlets f. Distributing fair housing brochures g. Running public service announcements for local radio/TV broadcasts h. Making educational presentations to the community i.Monitoring and reporting on rental sites j.Showing educational videos on housing discrimination on local cable TV k.Organizing an event for National Fair Housing Month 18 Draft 2004-2005 Action Plan Amendments to Plan Prior to the submission of any substantial change in the proposed use of funds, citizens will be provided reasonable notice of, and the opportmfity to comment on, any proposed Action Plan amendment(s). Urgent Need Activities In the event of a local, state or federal disaster declaration for areas within the boundaries of the City of Palo Alto, the City reserves the right to use CDBG or other available federal funds to abate immediate and necessary hazards. Such funds may be used for staff efforts, loans, or outright grants to affected parties, as approved by City Council and allowable under the pertinent Federal Guidelines. Monitoring of Activities The City of Palo Alto follows the monitoring requirements for the use of Federal funds as directed by HUD. The City’s Department of Planning and Community Environment monitors its housing production goals and all the activities carried out to further the goals of the Consolidated Plan. For activities funded by CDBG and HOME programs, an annual performance report is completed based on HUD regulations and in accordance with HUD standards. The Consolidated Annual Performance and Evaluation Report (CAPER) is available to the Citizens Advisory Committee and the general public for comments during a 15-day review period. This report identifies the actual dollars expended, the beneficiaries served, and the program goals achieved. The City requires subrecipients of CDBG funds to submit semi-annual and annua! 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. Coordination The CDBG entitlement cities (Palo Alto, Sunnyvale, Mountain View, Santa Clara, Cupertino, Gilroy, Milpitas, San Jose), and the Urban County of Santa Clara continue to meet on a regular schedule to discuss issues of mutual concern and to share information and strategies for addressing affordable housing, homelessness, fair housing, and other issues of common concern. The meetings have helped the participants better understand the County and nonprofit social service structure within the County, and provide input into the development of the new Santa Clara County Office of Affordable Housing and its operations. The City of Palo Alto continues to collaborate with neighboring jurisdictions in both Santa Clara and San Mateo County on issues relating to homelessness in northern Santa Clara County and 19 Draft 2004-2005 Action Plan southern San Mateo County. The City actively participates .in the Santa Clara County Housing and Homeless Collaborative. As a result of the Countywide Fair Housing Study, the cities of Palo Alto, Mountain View, and Sunnyvale are jointly selected fair housing services from a single provider to serve the three ci~iies. In addition a Countywide Fair Housing Taskforce has been formed and includes representatives from .entitlement jurisdictions, fair housing agencies, and other non-profit organizations. A staff person from the City of Pato Alto is the representative for the North County cities (MountainView, Palo Alto and Sunnyvale). The Quality Housing and Work Responsibility Act of 1998 requires public housing authorities (PHA’s) to develop and implement five-year plans that describe their long range goals and a strategy for achieving the identified goals. These plans provide details about the PHA’s operations, prograna 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. 20 APPENDIX A Application For Federal Assistance Forms 424 Application for Federal Assistance U.S. Department of Housing and Urban Development OMB Approval No.2501-0017 (exp. 03/31/2005) ,. Type of Submission F1 Application Not Applicable F"] PFeapplication 7. Applicant’s Legal Name City of Palo Alto 9. Address (give city, county, State, and zip code) 250 Hamilton A~enueA. Address: B. City:Palo Alto C. County:Santa Clara County D. State:CA E. Zip Code:94301 !11. EmPloyer Identification Number (EIN) or SSN !2. Date Submitted 05/15/2004 3. Date and Time Received by HUD 4. HUD Application Number 5. Existing Grant Number B-03-MC-060020 6. Applicant Identification Number ~8. Organizational Unit I Department of Planning and Community Environment ’10. Name,title,telephone number,fax number, and e-mail of the person to be icontacted on matters involving this application (including area codes) A. Name:Julie Caporgno B. Title:Advance Planning Manager C. Phone:(650) 329-2679 D. Fax:(650) 329-2154 E. E-mail:julie.caporgno@cityofpaloalto.org !12. Type of Applicant (enter appropriate letter in box) [C A. State I. University or College B. County J. Indian Tribe C. Municipal K. Tribally Designated Housing Entity (TDHE) D. Township L. Indiv}dual E. Interstate M. Profit Organization F. Intermunicipal N. Non-profit G. Special District O. Public Housing Authority H. Independent School District P. Other (Specify) 94600038 !13. Type of Application ""1New E] Continuation r-! Renewal If Revision, enter appropriate letters in box(es) 3 Revision !3 r] A. Increase Amount B. Decrease Amount C. increase Duration D. Decrease Duration E. Other (Specify) 15. Catalog of Federal Domestic Assistance (CFDA) Number 12"---218 Title:Community Development Block Grant Component Title: 17. Areas affected by Program (boroughs, cities, counties, States, Indian Reservation, etc.)The City of Palo Alto, County of Santa Clara, State of California 18a. Proposed Program start date 18b. Proposed Program end date 19a. Congressional Districts of Applicant 0"//01/2004 06/30/2005 14th Congressional District 20. Estimated Funding: Applicant must complete the Funding Matrix on Page 2. I14. Name of Federal Agency lU,S. Department of Housing and Urban Development 16. Descriptive Title of Applicant’s Program The City of Paio Alto’s Community Development Block Grant (CDBG) Program for Fiscal Year 2004/2005. 19b. Congressional Districts of Program 14th 21. Is Application subject to review by State Executive Order 12372 Process? A. Yes D This preapplication/application was made available to the State Executive Order 12372 Process for review on: Date B. Noa Program is not covered by E.O. 12372 Program has not been selected by State for review. 22. Is the Applicant delinquent on any Federal debt? U No E~Yes If "Yes," explain below or attach an explanation. form HUD424 (01/2003) Previous versions of HUD-424 and 424-M are obsolete Page 1 of 2 ref. OMB Circular A-102 Funding Matrix The applicant must provide the funding matrix shown below, listing each program for which H UD funding is being requested, and complete the certifications. Grant Program* CDBG HUD Share 816,000 Applicant Match Other HUD Funds Other Federa Share State Share Local/Tribal Share 0 Other 11,540** Program Income lol ,9oo Total 929,440 Grand Totals 816,000 0 0 0 0 101,90C 929,440: *For FHIPs, show both initiative and component **Reprogrammed Prior Year’s Funds Certifications 1 certify, to the best of my knowledge and belief, that no Federal appropriated funds have been paid, or will be paid, by or on behalf of the applicant, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with the awarding of this Federal grant or its extension, renewal, amendment or modification. If funds other than Federal appropriated funds have or will be paid for influencing or attempting to influence the persons listed above, I shall complete and submit Standard Form-LLL, Disclosure Form to Report Lobbying. I certify that I shall require all sub awards at all tiers (including sub-grants and contracts) to similarly certify and disclose accordingly. Federally recognized indian Tribes and tribally designated housing entities (TDHEs) established by Federally-recognized indian tribes as a result of the exercise of the tribe’s sovereign power are excluded from coverage of the Byrd Amendment, but State-recognized Indian tribes and TDHEs established under State law are not excluded from the statute’s coverage. This application incorporates the Assurances and Certifications (H U D-424B) attached to this application or renews and incorporates for ! the funding you are seeking the Assurances and Certifications currently on file with HUD. To the best of my knowledge and belief, all ! information in this application is true and correct and constitutes material representation of fact upon which HUD may rely in awarding the agreement. 23. Signature of A~thorized Official .i Name (printed)I Frank Benest Title Date (mm/dd/yyyy) City Manager 05/14/2004 form HUD-424 (01/2003)Previous versions of HUD-424 and 424-M are obsolete.Page 2 of 2 ref. OMB Circular A-102 Funding Sources Entitlement Grant (includes reallocated funds) CDBG " ESG HOME HOPWA Total $816,000 $o $o $o Prior Years’ Program Income NOT previously programmed or reported CDBG $57,900 ESG $0 HOME $0 HOPWA $0 Total Reprogrammed Prior Years’ Funds CDBG ESG HOME HOPWA Total $11,540 $0 $0 $0 Total Estimated Program Income Housing Improvement Program Paio Alto Housing Corp. Total $34,000 $10,000 Section 108 Loan Guarantee Fund $816,000 $67,900 $11,540 $44,000 $0 TOTAL FUNDING SOURCES $£29,440 Other Funds $0 Submitted Proposed Projects Totals $929,440 Un-Submitted Proposed Projects Totals $0 ¯ APPENDIX B Certifications LOCAL GOVERNMENT CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug-free workplace by: Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee’s workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2.Establishing an ongoing drug-free awareness program to inform employees about (a) (b) (c) (d) The dangers of drug abuse in the workplace; The grantee’s policy of maintaining a drug-free workplace; Any available drug counseling, rehabilitation, and employee assistance programs; and The penalties that may be imposed, upon employees for drug abuse violations occurring in the workplace; ~ Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; Notifying the employee in the statement required by paragraph 1 that,as a condition of employment under the grant, the employee will - (a)Abide by the terms of the statement; and (b)Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; LOCALCERTS 10/00 Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - (a)Taking appropriate personnel action against such an. employee, up to and including termination, consistent with the requirements of the Rehabilitation ¯ Act of 1973, as amended; or (b)Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1,2, 3, 4, 5 and 6. Anti-Lobbying -- To the best of the jurisdiction’s knowledge and belief: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant~ the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language of paragraph 1 and 2 of this_ anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose LOCALCERTS 10/00 accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date City Mana.qer Title LOCALCERTS 10/00 Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation -- It is in full compliance and following.a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan -- Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria: o Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); Overall Benefit. The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2004-2005.,(aperiod specified by the grantee consisting of one, two, or’ three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; .Special Assessments. It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. LQCALCERTS 10/00 The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate-income (not low-income)families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force -- It has adopted and is enforcing: A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non,violent civil rights demonstrations; and A policy of enforcing applicable State and local laws against.physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil .rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint -- Its activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K and R, of title 24; Compliance with Laws -- It will comply with applicable laws. Signature/Authorized Official City Manaqer Title Date LOCALCERTS 10/00 OPTIONAL CERTIFICATION CDBG Submit the following certification only when one or more of the activities in the action plan are designed to meet other community development needs having a particular urgency as specified in 24 CFR 570.208(c): The grantee hereby certifies that the Annual Plan includes one or more specifically identified CDBG-assisted activities which are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs. Signatu re/Authoriz,ed Official Date Title City Mana,qer LOCALCERTS 10/00 APPENDIX TO CERTIFICATIONS INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS: Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Dru.q-Free Workplace Certification By signing and/or submitting this application or grant agreement, the grantee is providing the certification. The certification is a material representation of fact .upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug- Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. For grantees other than individuals, Alternate 1 applies: 24 CFR 24.600(a)(1) A grantee, other than an individual shall certify to the agency that it will provide a drug-free workplace. (This is the information to whi_ch jurisdictions certify). .4.Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in ’its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee’s drug-free workplace requirements. LOCALCERTS 10/00 Place Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). .. If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph five). The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: of Performance (Street address, city, county, state, zip code) City of Palo Alto 250 Hamilton Ave. Palo Alto, Santa Clara County, CA 94301 Check__ if there are workplaces on file that are not identified here; The certification with regard to the drug-free workplace required by 24 CFR part 24, subpart F. o Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug-Free Workplace common rule apply to this certification. Grantees’ attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C.812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; LOCALCERTS 10/00 "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: (i) All "direct charge" employees; (ii) all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and (iii) temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee’s payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee’s payroll; or employees of subrecipients or subcontractors in covered workplaces). LQCALCERTS 10/00 APPENDIX C Proposed Projects E 8~oo 0 0 0 0000 0 0 o~oo .£ 0 oI-I- 0 0 0 0 0000 0 88oo 00 0 0 (n o ~0(’4 WTT oO >- z 0 0 0 88oo 00 o 0 <0 ~ 00 ~0 w -r- "r 0 0 oI--~ 0 0 ~ ~ 0 o1-I- 0 0 ’ 0 0 0 0 W7~7~ ~ 0 0 ~0 0 E o o 0 0 O. o © . APPEND IX D Map ~iI o ~ : ~FY 2004 - 2005;I~ .~o .~CDBG Pro ects Location Map APPENDIX E Letter ~’rom HUD Honorable Bern Beecham Mayor of the City of Palo Alto P.O. Box 10250 Pato Alto, CA 94303 U.S. Department of Housing and Urban Development Pacific/Hawaii California State Office 450 Golden Gate Avenue .San Francisco, California 94102-3448 Dear Mayor Beecham: Subject: Final Annual Community Assessment for the 2002 Fiscal Year City of Palo Alto, California We have completed our Annual Community Assessment (ACA)of the City of Palo Alto’s performance in implementingits FY 2002 Annual Action Plan.objectives, based on theCity’s-~Five~yea~r Co.nsolidated ’Plan. The period~covered..by:this~assessment is July 1, 2002 - June 30, 2003. :As a result of this assessment, we have determined that the City has the continuing capacity to implement and administer the Community Development Block.Grant,(CDBG)~P.rogram-andi:is.in~compliance with the statutes and regulations governing the:program;.: This determination.is-:,based upon~the informa:tionavailable: tO=~ this office.through the City’.s :Consolidated Annua’.l Performance and Evaluation:Report. and program performance data contained in HUD’s.lntegrated Distribution and Information System (IDIS). ’ The lack of affordable housing is the numberone priority need identified in the City of Palo Alto’s five-year Consolidated Plan, The City has one of the most expensive housing markets in the country, due in large part to the lack of .land suitable for new housing. We wish tocommend the City of Palo Alto for its strong financial and political support of affordable .housing, as well as its successful collaboration With non-profit organizations and other local government entities during FY 2002, which will generate new affordable housing benefiting individuals and families who are low and moderate income or homeless. During this third year of its five-year Consolidated Plan, the City and its non-profit partners continued to make progress in implementing two principal affordable housing projects comprising143 units, namely The Oak Oourt Apartments and Opportunity Center..The City’s efforts in overcoming major financing obstacles and.moving these projects.forward;..exemplify.~its strong commitment to .affordable housing: The.O:ity. anticipates ~th"at,it will~excee.d its ..125-unit ’Consolidated :Plan:affordable housing goal with the~successfutcomp etion.ofboth~projects.’ ~. :~::.~::-: .,i~,.~ ....: ~.: ¯.:,:, :~.-~ : .~..:rf~ " The Oak Court Apartments, a 53-unit:.family rental project secured a low income housing .tax.credit,allo.ca~ion,in.tandem with.State MultifamilyHous ng Program (MHP) financing, two highly competitive programs. Together with local tax-exempt bonds and a $3 million contribution from the City’s Commercial Housing In-Lieu Fund, the project 2 reached the construction phase in September 2003, and is expected to be completed in January 2005. Opportunity Center will serve as a multi-service center for homeless adults and families, combined with 89 units of permanent and transitional housing. According to the City, approximately $12.8 million of the $18.6 million total development cost has already been raised from the Counties of Santa Clara and San Mateo, including $7.5 million in State MHP funds,. $1.3 million in City CDBG funding(from multiple-years for site acquisition and the center construction), as well as a $500,000 grant under HUD’s 2001 McKinney-Vento homeless assistance competition and private foundation capital funds. Applications for low income housing tax credits and a tax-exempt bond allocation are expected to be submitted in the next round, in order to secure the balance of development financing. Other notable actions in support of affordable housing included: ¯Rehabilitation of several emergency systems at the Stevenson House and Lytton Gardens senior housing complexes, utilizing $115,000 in CDBG funds. Establishment of an emergency loan fund funded from the Residential Housing in- Lieu Fund to assist Below Market Rate (BMR) Program owners with special assessments for capital repairs; Adoption of an updated Housing Element in December 2002, and effective through June 2006, describing strategies for meeting the City’s fair share of the :region’s housing needs for a variety of income groups; Adoption of an updated Anailysis of Impediments to Fair. Housing Choice in May 2003, based on the findings of a Countywide fair housing study completed last January; and Additionally, in response to the housing study recommendation for increased intergovernmental collaboration on fair housing issues, the Cities of Palo Alto, Mountain View and Sunnyvale issued a joint Request for Proposals. As a result, a single fair housing service provider was selected, in order to enhance cost effectiveness, as well as the scope and quality of services in north Santa Clara County. During FY 2002, the City continued to provide significant local support, i.e., $1,350,927 in addition to $134,700 in CDBG fundsl to support non-profit organizations to deliver a variety of essential housing-related and community development public services to approximately 9,700 lower income persons and 288 households. Beneficiaries included persons with special needs, as well as homeless adults and families living in shelters or transitional housing. All CDBG Program statutory requirements were met, in terms of benefit to low and moderate-income persons, timeliness of expenditure of funds and the 15% public service and 20% planning & administration caps. We would be glad to work with City staff and also utilize our contracted technical assistance providers to assist you regarding the City’s technical assistance needs. We look forward to continuing to work in partnership with the City of Palo Alto; in order to help the City continue to achieve its immediate and long-range affordable housing and community development goals and objectives. Sincerely, Steven B. Sachs Director, Community Planning and Development Division Frank Benest City Manager Steve Emslie Director, Department of Planning and Community Environment ~Julie Caporgno Advance Planning Manager, Planning Division/DPCE Eloiza Murillo-Garcia CDBG Coordinator, PD/DPCE Cathy Siegel ,:Housing Coordinator, .PD/DPCE ATTACHMENT D CITY OF PALO ALTO 30T~4 ANNIVERSARY OF THE CDBG PROGRAM August 22, 2004 will mark the 30th Anniversary of the signing of the Housing and Community Development Act of 1974, which created the Community Development Block Grant (CDBG) program. The CDBG program has become one of the most successful community development programs ever created. The City of Palo Alto has been a recipient of the CDBG program for 30 years and has received almost $20,000,000 in grant awards from the Department of Housing and Urban Development since its inception. The City has expended CDBG funds primarily for the creation of affordable housing, the provision of critical human services, and for physical rehabilitation projects which benefit persons of low and moderate incomes. The CDBG program is a unique partnership of Federal, state, and local government, business, non- profit, and community efforts. The services are funded by the Federal CDBG Program, administered by the local government and often delivered by local non-profit organizations. Citizen involvement is an important component in the planning, allocation and review of the use of CDBG funds has been an integral feature of the program. This process has been facilitated through the City’s CDBG Citizen Advisory Committee (CAC). The City of Palo Alto.would like to acknowledge the CAC and the non-profit subrecipients for alt of their contributions in addressing the needs of the community.