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HomeMy WebLinkAboutStaff Report 8504 City of Palo Alto (ID # 8504) City Council Staff Report Report Type: Informational Report Meeting Date: 11/6/2017 City of Palo Alto Page 1 Summary Title: CAPER for the CDBG Program for FY 2017 Title: Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program for Fiscal Year 2017 From: City Manager Lead Department: Planning and Community Environment Recommendation This is an informational report and no Council action is required. Background The preparation and submittal of a Consolidated Annual Performance and Evaluation Report (CAPER) is a requirement of the U.S. Department of Housing and Urban Development (HUD) for the receipt of Federal Community Development Block Grant (CDBG) funds. The attached document, Attachment A, was submitted to HUD on September 27, 2017, following the required 15-day public review period. It is being provided to the Council for informational purposes only. Discussion This CAPER represents the second year of the City’s Five-Year Consolidated plan covering the period 2015-2020 and summarizes the accomplishments under the CDBG program for the period July 1, 2016 to June 30, 2017. As required, the CAPER consists of specific program narratives, an assessment of annual performance, and an assessment of progress toward meeting goals and objectives contained in the Consolidated Plan. Finally, this CAPER summary report is intended to inform the public on how the CDBG funds administered by the City of Palo Alto during the 2017 Fiscal Year have been expended and describes the extent to which the purposes of the grant program have been carried out. The amount funded to specific activities is reported the year they are funded. However, due to the City of Palo Alto Page 2 nature of certain projects, it is common for projects to overlap program years. Accomplishments are reported when the project has been completed and in some cases when the units become occupied. Summary of Accomplishments CDBG funds were used for public services and economic development activities. Palo Alto has five primary CDBG program activity areas in which to allocate funds: Public Services, Planning and Administration, Economic Development, Housing, and Public Facilities. Funds were allocated in accordance with the goals and objectives set forth in the 2015-2020 Consolidated Plan, available online at: http://www.cityofpaloalto.org/civicax/filebank/documents/59739. The major accomplishments include the following:  Continued implementation of the Workforce Development Program which led to 31 previously unemployed individuals reentering the workforce;  Assisted 16 individuals in investigating their fair housing complaints; and  Continued successful partnerships with five public service providers. The CAPER, Attachment A, provides a detailed description of the various programs and project accomplishments within the fiscal year. Resource Impact The total investment of CDBG funds in Palo Alto approved for Fiscal Year 2017 was $754,418. Of this amount, $76,619 was directed to public service activities, $290,723 for Economic Development, $278,825 for housing rehabilitation, $30,941 for Fair Housing Services, and $77,310 was allocated for administration activities. Environmental Review For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), this action itself is not a project; therefore, no environmental impact assessment is necessary. Prior to commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or assessments and certify that the review procedures under CEQA, HUD, and NEPA regulations have been satisfied for each particular project. Attachments: Fiscal Year 2016-17 CAPER (PDF) FY 2016 - 17 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT July 1, 2016 through June 30, 2017 Public Review and Comment Period: August 28, 2017 – September 12, 2017 Erum Maqbool, CDBG Staff Specialist Department of Planning and Community Environment 250 Hamilton Avenue, Palo Alto, CA 94301 T: 650-329-2660 E: erum.maqbool@cityofpaloalto.org | Table of Contents CR-05 - Goals and Outcomes ..............................................................................................................4 Progress made in carrying out strategic plan and action plan. 91.520(a) ........................................... 4 Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan 91.520(g) ................................................................................................... 4 Assess how the jurisdiction’s use of funds addresses the priorities and specific objectives identified in the plan...................................................................................................................................... 5 CR-10 - Racial and Ethnic composition of families assisted...................................................................6 Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) 6 CR-15 - Resources and Investments 91.520(a) .....................................................................................7 Identify the resources made available .................................................................................................. 7 Identify the geographic distribution and location of investments ....................................................... 7 Leveraging ............................................................................................................................................. 7 CR-20 - Affordable Housing 91.520(b) ............................................................................................... 10 Evaluation of the jurisdiction's progress in providing affordable housing. ........................................ 10 Discuss the difference between goals and outcomes and problems encountered in meeting these goals. ........................................................................................................................................... 10 Discuss how these outcomes will impact future annual action plans. ............................................... 11 Include the number of extremely low-income, low-income, and moderate-income persons served by each activity. ........................................................................................................................... 11 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................ 12 Reaching out to homeless persons (especially unsheltered persons) and assessing needs .............. 12 Addressing the emergency shelter and transitional housing needs of homeless persons ................. 12 Helping low-income individuals and families avoid becoming homeless ........................................... 13 Helping homeless persons .................................................................................................................. 13 CR-30 - Public Housing 91.220(h); 91.320(j) ....................................................................................... 15 Actions taken to address the needs of public housing ....................................................................... 15 Actions taken to encourage public housing residents to become more involved in .......................... 15 Actions taken to provide assistance to troubled PHAs ....................................................................... 15 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ................................................................................ 16 Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) .............................................................................. 16 Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j)................ 17 Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) ........................................... 17 Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) ........................ 18 Actions taken to develop institutional structure. 91.220(k); 91.320(j)............................................... 20 Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j) ..................................................................................................... 20 | Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) ........................................................ 20 CR-40 - Monitoring 91.220 and 91.230 .............................................................................................. 21 Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements ............ 21 Citizen Participation Plan 91.105(d); 91.115(d) .................................................................................. 21 Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports. .................................................................................................................. 21 CR-45 - CDBG 91.520(c) .................................................................................................................... 22 Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences... 22 Brownfields Economic Development Initiative grants ........................................................................ 22 [BEDI grantees] Describe accomplishments and program outcomes during the last year. .............. 22 Table of Figures Table 1 – Accomplishments – Program Year & Strategic Plan to Date ...................................................... 4-5 Table 2 – Table of assistance to racial and ethnic populations by source of funds ...................................... 6 Table 3 – Resources Made Available ............................................................................................................ 7 Table 4 – Identify the geographic distribution and location of investments ................................................ 7 Table 6 – Number of Households ............................................................................................................... 10 Table 7 – Number of Households Supported.............................................................................................. 10 Table 8 – Number of Persons Served .......................................................................................................... 11 APPENDICES A - Public Hearing Notice B - IDIS Reports C - Public Comments D - Section 3 Report | CR-05 - Goals and Outcomes Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year. Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals. Table 1 – Accomplishments – Program Year & Strategic Plan to Date Goal Category Source / Amount Indicator Unit of Measure Expected – Strategic Plan Actual – Strategic Plan Percent Complete Expected – Program Year Actual – Program Year Percent Complete Affordable Housing Affordable Housing CDBG: $278,825 Rental units rehabilitated Household Housing Unit 300 60 20.00% 156 156 100% Economic Development Non-Housing Community Development CDBG: $ 290,723 Jobs created/retai ned Jobs 125 31 24.80% 30 31 103.33% Fair Housing Non-Housing Community Development CDBG: $32,016 Public service activities other than Low/Moderat e Income Housing Benefit Persons Assisted 100 21 21.00% 15 16 106.66% Homelessness Homeless CDBG: $22,983 Public service activities other than Low/Moderat e Income Housing Benefit Persons Assisted 0 151 0.00% 131 151 86.75% Homelessness Homeless CDBG: $35,592 Public service activities for Low/Moderat e Income Housing Benefit Household s Assisted 2500 554 22.16% 400 554 138.5% Strengthen Neighborhood s Non- Homeless Special Needs Non-Housing Community Development CDBG: $ Public Facility or Infrastructure Activities other than Low/Moderat e Income Housing Benefit Persons Assisted 500 0 0.00% 0 0 0.00% Strengthen Neighborhood s Non- Homeless Special Needs Non-Housing Community Development CDBG: $18,044 Public service activities other than Low/Moderat e Income Housing Benefit Persons Assisted 2500 478 19.12% 486 753 154.93% | Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified. The City of Palo Alto was able to achieve many of its goals outlined in the 2016 Action Plan and 2015-2020 Consolidated Plan. In total, the City’s CDBG program assisted 1401 persons access needed services. Of these persons, nine hundred fifty two (952) were extremely low-income, fifty-six (56) were very low-income, two hundred and eleven (211) were low-income and one hundred and eighty two (182) were moderate income. The City’s subrecipient (Mid-Peninsula Housing Corporation) received $392,368 in FY2015-16 and $278,825 in FY 2016-17 for a total CDBG loan of $671,193. Mid-Peninsula Housing Corporation who was awarded a CDBG loan for $278,825 to rehabilitate 156 affordable rental units at Palo Alto Gardens for low income households in FY 2016/17 encountered unexpected issues involving the approvals. As a result, the project was delayed. However, the City worked diligently with Mid Pen over the last year to ensure that the project moved forward in a timely fashion and met its goal of providing 156 rehabilitated rental affordable housing units. Rehabilitation work began at Palo Alto Gardens in December 2016 and is expected to be completed in the summers of 2017. 6 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative The City of Palo Alto’s CDBG funded programs and services served a diverse population and provided needed resources to those residents most in need. Sixty percent (60%) were White, eighteen percent (18%) were African American, and ten percent (10%) were Asian. Twenty percent (20%) of all the clients served were Hispanic. CDBG White 844 Black or African American 249 Asian 136 American Indian or American Native 49 Native Hawaiian or Other Pacific Islander 13 American Indian and Black 8 Black and White 5 American Indian and White 22 Asian and White 2 Other, multi-racial 73 Total 1401 Hispanic 274 Not Hispanic 1,127 7 CR-15 - Resources and Investments 91.520(a) Identify the resources made available Table 3 – Resources Made Available Source of Funds Source Resources Made Available Amount Expended During Program Year CDBG HUD $1,625,402 $1,085,654.76 Narrative See discussion below. Identify the geographic distribution and location of investments Table 4 – Identify the geographic distribution and location of investments Target Area Planned Percentage of Allocation Actual Percentage of Allocation Narrative Description N/A N/A N/A See below Narrative The City considers the provisions of all types of housing assistance on a citywide basis consistent with the policies of the Comprehensive Plan. Palo Alto does not have specific target areas for housing activities; instead the City attempts to provide housing affordable to lower- income persons throughout the City. Minority concentration includes areas in the City where the concentration of racial and ethnic minority population is 10% or higher than their total citywide representation. There are only a few areas that are considered to have a concentration of minority populations or low-income residents in Palo Alto. The CDBG Program defines low-income concentration as any census block group where 51% or more residents earn 80% of MFI or less. An exception exists for a jurisdiction that does not have any areas meeting this definition, such as Palo Alto, which includes the highest quartile of all areas in the City in terms of degree of concentration, is used. However, Palo Alto does not qualify activities under the LMI area benefit category. Leveraging Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan. 8 Palo Alto leverages federal and private housing funds to the greatest extent feasible consistent with the goals identified in the 2015-2020 Consolidated Plan. Moreover, the City continues to encourage non-profit organizations to seek other local, state, and federal funding for both housing and non-housing community development activities. HSRAP The City of Palo Alto provided $ 884,672 General Funds during fiscal year 2016/2017 to address primary human service needs in the community. These funds include multi-year agreements with others allocated by HSRAP and administered by the Office of Human Services in the Community Services Department. Funded projects addressed the Human Relations Commission’s priority needs in the following categories: early child care and education, youth programs, senior nutrition and social services, homelessness, and basic needs such as health care and mental health. HOUSING IN-LIEU The City of Palo Alto maintains a local housing fund consisting of two sub-funds: the “Commercial Housing Fund” and the “Residential Housing Fund.” Palo Alto, under Chapter 16.65 of the Municipal Code, requires commercial and industrial development projects to pay a housing mitigation fee. The fees are deposited in the “Commercial Housing Fund”, and the accumulated fees and interest earned on the fund are made available for the creation of new low and moderate-income housing units under the “Affordable Housing Fund Guidelines” adopted by the City Council. As of June 30, 2017, the Commercial Housing Fund had an available balance of approximately $6,073,316. Pursuant to Program H-3.1.2, the Below Market Rate Program of the City’s Housing Element, Palo Alto collects housing in-lieu fees from residential development when it is infeasible to provide below market rate units on-site. These fees, along with interest earnings of the Fund and other miscellaneous revenues related to housing, are placed in a special fund; “the Residential Housing Fund”. This fund is used to provide funding for acquisition or rehabilitation of low and moderate-income housing, but may also be used for assistance to new housing construction projects. As of June 30, 2017, the Residential Housing fund had an available balance of approximately $6,367,042. These are the only local sources of funding and subsidies available for affordable housing within the City. They are used to provide matching funds, pay for expenses which exceed HUD income and cost limits, to fund the cost of features and amenities classified as ineligible under federal housing programs, pre-development expenses, feasibility studies, site acquisition, and other similar purposes. 9 | CR-20 - Affordable Housing 91.520(b) Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served. Table 5 – Number of Households One-Year Goal Actual Number of homeless households to be provided affordable housing units 0 0 Number of non-homeless households to be provided affordable housing units 0 0 Number of special-needs households to be provided affordable housing units 156 156 Total 156 156 Table 6 – Number of Households Supported One-Year Goal Actual Number of households supported through rental assistance 0 0 Number of households supported through the production of new units 0 0 Number of households supported through the rehab of existing units 156 156 Number of households supported through the acquisition of existing units 0 0 Total 156 156 | Discuss the difference between goals and outcomes and problems encountered in meeting these goals. In fiscal year 2015/16, the City of Palo Alto provided a CDBG rehabilitation loan in the amount of $278,825 to Mid-Peninsula Housing Corporation (Mid Pen) of the rehabilitation of 156 units at Palo Alto Gardens. Due to a number of factors outside of the City’s control involving subordination of the CDBG loan and Mid Pen’s requirements to obtain investor approval, the project was delayed. The City worked in partnership with Mid Pen to expedite the loan process so work could begin. Work on the project began in December 2016 and is expected to be completed in the summers of 2017. Discuss how these outcomes will impact future annual action plans. As discussed previously, the rehabilitation work at Palo Alto Gardens began in December 2016 and is expected to be completed in the summers of 2017. The FY 2016/17 CAPER includes 156 units from the Palo Alto Gardens rehabilitation project that were detailed in the 2015 Annual Action Plan. The City anticipate meeting all of its goal highlighted in the 2015-2020 Consolidated Plan despite not meeting last year’s annual goal. Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity. Table 7 – Number of Persons Served Number of Persons Served CDBG Actual HOME Actual Extremely Low-income 952 0 Very Low-income 56 0 Low-income 211 0 Moderate-income 182 0 Total 1401 0 Narrative Information In total, the City’s CDBG program provided programs and services to 1401 persons. Nine hundred fifty two (952) of these persons were extremely low-income, fifty-six (56) were very low-income, two hundred and eleven (211) were low-income, and one hundred and eighty two (182) were moderate income. | CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City’s entitlement amount for FY 2016/2017 was $441,253. The City had $100,000 in program income and $ 213,165 in uncommitted funds from previous years. In total, the City provided $754,418 in direct CDBG funding and $ 884,672 in HSRAP funding. The following details the accomplishments of the CDBG funded subrecipients targeted to benefit persons who are low income, homeless, or at risk of homelessness. Addressing the emergency shelter and transitional housing needs of homeless persons LIFEMOVES OPPORTUNITY CENTER CDBG: $35,592 The Opportunity Services Center continued to provide services to homeless individuals and those at-risk of becoming homeless. Services include drop-in services, showers and laundry facilities, lockers, light snacks, information and referral, transportation assistance, a clothes closet, medical and psychiatric screening and referral, inter-faith chaplaincy, and fellowship. In addition, the Hotel de Zink program along with the Breaking Bread Program continued with the operation. During the program year, the Opportunity Center served 554 unduplicated individuals. 415 unduplicated individuals received case management, housing/job search, referral and mentoring services; and 6,842 shelter nights were provided. PALO ALTO HOUSING CORPORATION DOWNTOWN SRO HOTEL COUNSELING CDBG: $24,861.00 Palo Alto Housing Corporation provided one-on-one counseling, case management, and educational activities at Alma Place and Barker Hotel. The one-on-one sessions provided by the Resident Service Coordinator affords a systematic manner of addressing a diversity of issues these residents face. During the program year there was an increase in demand for more in- depth support counseling services to address mental health and emotional health issues. The SRO Resident Services Coordinator works closely with residents with severe mental health issues to ensure compliance with treatment guidelines and to reduce the risk of relapse. PAHC continued to expand the health and wellness program by collaborating with other non-profit organizations to host a health and resource fair. The goal of the event was to provide | information and resources on topics of the areas of health care, counseling, transportation programs, social services, and food programs. During the program year, nutrition and fitness coaching services were initiated to provide residents with information, guidance and support as to how to develop an exercise and plan programs in order to improve their health and quality of life. Finally, Palo Alto Housing Corporation staff has continued to serve as a partner with the City’s Pilot Microenterprise Assistance Program. Two of the MAP grantees currently live at Alma Place. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs CATHOLIC CHARITIES LONG TERM CARE OMBUDSMAN CDBG: $5,012.00 During the program year 383 unduplicated residents were contacted within the Palo Alto Long term care residences in Lytton Gardens Health Care Center, Lytton Gardens Residential Care for the Elderly and Palo Alto Nursing Center. A total of 56 complaints were received and investigated. DOWNTOWN STREETS INC. WORKFORCE DEVELOPMENT PROGRAM CDBG: $290,723.00 During the program year DST was able to continue their success rate and introduced a number of new programs into the existing Workforce Development Program. A total of 31 participants enrolled in the program and were placed in a variety of employment opportunities. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again YWCA SILICON VALLEY DOMESTIC VIOLENCE SERVICES CDBG: $8,020 | The YWCA Support Network Program provides domestic violence support services including counseling, case management, crisis counseling, and legal assistance. During the program year the Support Network Program provided 10 unduplicated clients with counseling, therapy and/or legal advocacy services. Crisis Counselors provided crisis line assistance to 49 individuals receiving crisis counseling services. Additionally, the Domestic Violence Program was able to provide 2 unduplicated Palo Alto resident with emergency shelter, including basic needs (food/clothing) and comprehensive case management services. SILICON VALLEY INDEPENDENT LEARNING CENTER HOUSING & EMERGENCY SERVICES CDBG: $5,012 During the program year, Silicon Valley Independent Living Center (SVILC) conducted extensive outreach in Palo Alto which resulted in 99 persons having improved accessibility to decent affordable housing. In addition, SVILC provided 153 people with information and referral services and 68 people with disabilities were given Housing Search training through a housing workshop at the Palo Alto Opportunity Services Center. SVILC will continue to reach out to other organizations, businesses and non-profits in Palo Alto to ensure the word continues to spread that SVILC is a valuable resource for Palo Alto residents with disabilities. PROJECT SENTINEL FAIR HOUSING SERVICES CDBG: $30,941 During the program year, Project Sentinel provided community education and outreach regarding fair housing law and practices, investigation, counseling and legal referral for victims of housing discrimination, and analyses for City staff and officials regarding fair housing practices. In total, 16 fair housing complaints were investigated by Project Sentinel. 19 residents were provided individual consultation relating to specific fair housing questions and 131 individuals were assisted through outreach and presentations. CITY OF PALO ALTO PILOT MAP CDBG: $1,314.08 The Microenterprise Assistance Program provided access to new opportunities to improve the economic self-sufficiency of LMI families and individuals. The program built on the foundation of entrepreneurship and empowered clients by increasing their economic literacy, business skills, self-esteem, and personal behavior appropriate to the workplace. In total, one MAP participant was assisted in FY 2016/17. | CR-30 - Public Housing 91.220(h); 91.320(j) Actions taken to address the needs of public housing Not applicable. The Housing Authority of the County of Santa Clara (HACSC) owns and manages four public housing units, which are all located in the City of Santa Clara. Actions taken to encourage public housing residents to become more involved in management and participate in homeownership While the majority of their units have been converted to affordable housing stock, HACSC is proactive in incorporating resident input into the agency’s policy-making process. An equitable and transparent policy-making process that includes the opinions of residents is achieved through the involvement of two tenant commissioners, one being a senior citizen, on the HACSC board. HACSC has been a MTW agency since 2008. In this time the agency has developed 31 MTW activities. The vast majority of its successful initiatives have been aimed at reducing administrative inefficiencies, which in turn opens up more resources for programs aimed at LMI families. As mentioned previously, there are no public housing facilities in the City of Palo Alto. Actions taken to provide assistance to troubled PHAs Not applicable. | CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The City of Palo Alto has undertaken a number of actions to eliminate barriers to the development of affordable housing including participation in a county-wide effort to provide additional affordable housing units; programs in the 2014-2023 Housing Element Update to increase the supply of affordable housing; and the development impact fees for housing. Housing Trust Silicon Valley (Housing Trust) The Housing Trust, formerly the Housing Trust Fund of Santa Clara County (HTSCC), was created to provide additional financial resources to address the County’s affordable housing deficit. The Housing Trust’s mission is to make Silicon Valley a more affordable place to live. Loans and grants are issued to increase the supply of affordable housing, assist first-time home buyers, prevent homelessness and stabilize neighborhoods. Palo Alto was among the contributors during its founding and has continued to allocate funding. A provision was added to ensure the City’s funds be used exclusively for qualifying affordable housing projects within the City of Palo Alto. The most recent included $200,000 from the City’s Residential Housing Fund for Fiscal Year 2014/2015. Participation in the Housing Trust has increased the available housing funding for a number of Palo Alto Projects as summarized in the table below. In addition, the Housing Trust has invested over $100,000 assisting 16 households to purchase homes in Palo Alto through its first- time homebuyer program. Project Name Number of Units HTSCC Loan Amount Leveraged Amount Opportunity Center 89 $650,000 $20,050,000 Oak Court Apartments 53 $400,000 $19,700,000 Alta Torre 56 $689,439 $18,110,561 Tree House 35 $500,000 $11,016,525 Alma Street 50 $500,000 $28,536,801 801 Alma 50 $500,000 $30,000,000* Total 333 $2,739,439 $127,413,887 | *Estimated Amount Adjustments or Improvements to Affordable Housing Strategies 2015-2023 Housing Element Update: The Palo Alto Housing Element, which is part of the City’s Comprehensive Plan is the chief policy document describing the City’s housing needs and the policies and programs the City will use to meet those needs. The 2015-2023 Housing Element Update has been certified by the California State Department of Housing and Community Development. Development Impact Fees for Housing: The City’s impact fees are comprised of four categories: Housing, traffic, community facilities, and Parkland dedication. The City recently completed Nexus Studies for Residential and Commercial Development. The studies served as a basis for an update to both residential and non-residential housing fees and became effective on June 19, 2017. The housing fee for non-residential development is $20.37 per square foot for retail and hotel uses. The fee for commercial uses increased to $30 per square foot. The fee rate applies to all net new commercial square footage on a site. Full payment is required at building permit issuance with some exemptions including hospitals and convalescent facilities, private education facilities, public facilities and private clubs, lodges and fraternal organizations. Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City’s CDBG program diligently works with other purveyors of funding to provide the most value per dollar. This is actualized by partnering with other City resources such as HSRAP and leveraging dollars invested in site acquisition for low-income housing with a multitude of other funding sources. However, Palo Alto is at a disadvantage in removing or eliminating obstacles to meeting underserved needs due to the consistently shrinking amount of CDBG funds available in recent years. To address this, the City supplements its CDBG funding with other resources and funds, such as:  The City’s Human Service Resource Allocation Process (HSRAP) provides approximately $ 884,672 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies.  The Palo Alto Commercial Housing 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.  The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from residential developers and money from other | miscellaneous sources, such as proceeds from the sale or lease of City property.  The City’s Below Market Rate Emergency Fund was authorized in 2002 to provide funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units.  HOME Program funds are available on an annual competitive basis through the State of California HOME program, and the County’s HOME Consortium. Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) Lead poisoning can cause permanent damage to the brain and many other organs, and can result in reduced intelligence and behavioral problems in young children. More than 80,000 children younger than 6 years old living in the United States have lead in their blood that is above the level of concern set by the Centers for Disease Control and Prevention (CDC). A significant number of these children are in families of low income and are living in old homes with heavy concentration of lead-based paint and lead-contaminated dust and soil in the environment. The City’s housing and CDBG staff provide information and referral to property owners, developers, and non-profit organizations rehabilitating older housing about lead-based paint hazards. There is no information that indicates lower income households are more likely to be exposed to lead paint hazards in Palo Alto than are families in the general population. The City’s 2015-2020 Consolidated Plan has a more detailed discussion of lead based paint in the City. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of lead paint and lead paint hazards. The City will provide financial assistance for the abatement of such hazards in units rehabilitated with City funding. Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City, in its continuing effort to reduce poverty, prioritized funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2016-2017, these programs included the following: The Microenterprise Assistance Program provided access to new opportunities to improve the economic self-sufficiency of LMI families and individuals. The program built on the foundation of entrepreneurship and empowered clients by increasing their economic literacy, business skills, self-esteem, and personal behavior appropriate to the workplace. The Workforce Development Program provided a transition from unemployment and homelessness to regular employment and housing through case management, job training, mentoring, housing, and transportation assistance. - Downtown Streets Team is a nonprofit in the City that works to reduce homelessness | through a “work first” model. Downtown Streets Team utilized their community connections to provide training and job opportunities to homeless people, specifically in the downtown area. The Downtown Streets Team has helped over 687 team members maintain employment for 90 days or more and housed 737 individuals, including 539 team memberssince its inception.. The Downtown Streets Team has initiatives in Palo Alto, Sunnyvale, San Jose, and San Rafael. Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City is striving to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and the production of affordable housing. Collaborative efforts include:  Regular quarterly meetings between entitlement jurisdictions at the CDBG Coordinators Meeting and Regional Housing Working Group  Joint jurisdiction Request for Proposals and project review committees  Coordination on project management for projects funded by multiple jurisdictions  HOME Consortium between member jurisdictions for affordable housing projects Recent examples include the effort by the County to create a regional affordable housing fund, using former redevelopment funds that could be returned to the County to use for affordable housing. Another effort underway involves the possible use of former redevelopment funds to create a Countywide pool for homeless shelters and transitional housing. These interactions among agencies generate cohesive discussion and forums for bridging funding and service gaps on a regional scale. Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j) The City benefits from a strong jurisdiction and region-wide network of housing and community development partners, such as the County and the CoC. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources. In addition to the actions listed above, the City will continue to coordinate with the City’s human services funding efforts to comprehensively address community needs. Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City makes every effort to affirmatively further fair housing in compliance with the adopted | Analysis of Impediments. During Fiscal Year 2016/2017, the City continued to support actions to affirmatively further fair housing through a subrecipient agreement with Project Sentinel, a non-profit organization dedicated to assisting individuals with housing problems discussed in detail below. The following is a list of actions taken to affirmatively further fair housing:  HCD has certified the City’s 2015-2023 Housing Element update  The City targeted the majority of its CDBG and local housing funds to increasing and preserving the supply of affordable housing  The Office of Human Services regularly met with the County of Santa Clara Housing Authority to place homeless individuals with section 8 vouchers  Affordable housing information and referral services were provided by the Office of Human Services During Fiscal Year 2016/2017, the City continued to support actions to affirmatively further fair housing choice through a subrecipient agreement with Project Sentinel, a non-profit organization dedicated to assisting individuals with housing problems. Project Sentinel responded to and investigated 16 cases of housing discrimination in Palo Alto during the fiscal year. | CR-40 - Monitoring 91.220 and 91.230 Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements Under the CDBG Program, the City conducts desk reviews and on-site monitoring of subrecipients. Last year the City completed on-site monitoring of four non-profit organizations. Since the City operates under a two-year funding cycle there are some subrecipients that receive funding for two years and are only required to have one on-site monitoring during this time. Typically, subrecipients who have had trouble implementing projects or have been identified as having compliance issues in a previous monitoring are selected for the annual monitoring. There were no major deficiencies identified during the previous monitoring. The City will be conducting on-site monitoring of three subrecipients in the next two to three months consistent with the Subrecipient Monitoring Plan. Citizen Participation Plan 91.105(d); 91.115(d) Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports. A notice regarding the availability of the draft CAPER was emailed to interested organization and persons. In addition, a notice informing the public of the availability of the CAPER was published in the Palo Alto Weekly on August 25, 2017. The notice was also displayed on the City’s website during the public review period. The draft CAPER was available for public review and comment for a 15-day period, beginning August 28, 2017 and concluding on September 12, 2017. Copies of the draft report were available at the City’s Planning Department reception desk, the Development Center, and on the CDBG website. Finally, the Human Relations Commission held a public hearing on Thursday, September 14, 2017 to take public comment and discuss the CAPER. The City Council will receive a copy of the final CAPER along with any public comments received in early November. | CR-45 - CDBG 91.520(c) Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences. Not applicable. Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants? Not applicable. [BEDI grantees] Describe accomplishments and program outcomes during the last year. Not applicable. |