HomeMy WebLinkAbout2001-05-07 City Council (3)City of Palo Alto
City Manager’s Report.
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:
SUBJECT:
MAY 7, 2001 CMR:224:01
PUBLIC HEARING: ADOPTION OF RESOLUTION APPROVING
THE USE OF FISCAL YEAR 2001/02 COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDING ALLOCATIONS
AND ANNUAL ACTION PLAN UPDATE OF THE
CONSOLIDATED PLAN FOR THE PERIOD 2000-2005
RECOMMENDATION:
Staff recommends that the City Council:
Adopt the attached Resolution and the Annual Action Plan establishing funding
allocations for the 2001/02 Community Development Block Grant Program.
Authorize and direct the City Manager, or his designee, to eXeCUte and submit to
the U.S. Department of Housing and Urban Development (HUD) the application
and other documentation necessary to file the application with HUD, and to
otherwise bind the City with respect to the application, before the May 15, 2001
deadline.
Authorize and direct staff to carry out any further required environmental
assessments and certifications for each project under the California Environmental
Quality Act (CEQA) and the National Environmental Policy Act (NEPA) prior to
the commitment of funds.
BACKGROUND
The purpose of the May 7, 2001 public hearing is for the City Council to review and act
on the recommendations of the Finance Committee regarding the Fiscal Year 2001/02
CDBG funding allocations. The required 30-day public review period for the Draft
Annual Action Plan began on March 30, 2001 and concluded on April 30, 2001. There
were no public comments on the Plan. The attached staff report (CMR 181:01) provides
background information on the 2001/02 process, the funding proposals, the staff and
Citizens Advisory Committee (CAC) funding recommendations, and the draft Annual
Action Plan.
CMR:244:00 Page 1 of 7
The Finance Committee considered the 2001/02 CDBG allocations at a public hearing on
April 3, 2001. Finance Committee meeting minutes are included in the Council packet.
The Finance Committee voted to recommend to Council the approval of the staff
recommendation relating to the CDBG administrative funding reimbursement in the
amount of $130,000. The Finance Committee concurred with staff and the CAC
regarding the public service allocations.
Related to the capital project funding allocation recommendations, Dr. Don Barr,
Executive Director of the Community Working Group (CWG) submitted a revised
funding request on behalf of the Opportunity Center project. The CWG has site control
of two adjacent parcels of land at 33 and 39 Encina Way for the development of a day
center for persons who are homeless. The facility will also include a permanent and
transitional housing component that may provide up to 55 new housing units. The total
projected project costs are in excess of $13 million dollars. CWG’s original funding
request was for $1,000,000. Dr. Barr requested that the Finance Committee consider
increasing the CAC and staff funding recommendation from approximately $350,000 to
$480,000 (see attached letter, Attachment C). This request was based on new
information from HUD relating to the project.
The Finance Committee-voted to defer discussion regarding the Opportunity Center’s
revised request until the May 7, 2001 Council meeting to allow staff time to prepare
additional information relating to the status of the City’s housing funds.
The Citizen Advisory Committee met again on April 12, 2001 and voted to recommend
that the Opportunity Center receive the requested increase to $480,000. Staff has also
amended its recommendation to increase the allocation to the Opportunity Center from
$350,000 to $480,000, with a corresponding decrease in the allocation to the City’s
Housing Development Fund from $351,806 to $221,806.
The following table reflects the CAC, staff, and Finance Committee recommendations:
CMR:244:00 Page 2 of 7
2001/02 CDBG FUNDING RECOMMENDATIONS
Name of Agency
1. Catholic Charities
Ombudsman
2. Emergency Housing -
Shelter
3.Palo Alto
Corp. -
Counseling
4. Palo Alto Housing
Corp. - Info & Referral
5. Shelter Network
Haven House
6. Clara Mateo Alliance -
Family Shelter
7. Clara Mateo Alliance -
Shelter
8. Project Match - Shared
housing
9. Mid-Peninsula Citizens
for Fair Hsg
10.City of Paio Alto -
Admin.
Community Housing, Inc.
- Lighting
12.Alliance for
Community Care -
Waverly
13. Community Working
Group -Opportunity
Center
14. City of Palo Alto -
Housing Fund
TOTALS
2001/2002
Funding
Requests
$ 8,490
11,124
Housing 39,250
Barker
37,000
20,000
12,000
28,750
18,950
24,800
130,000
65,775
52,000
Recommendations
CAC Staff
$ 8,490
8,490
22,745
$ 8,490
8,490
22,745
23,175
18,000
12,000
28,750
-0-
24,800
130,000
-0-
52,000-
.Finance
Committee
$ 8,490
8,490
22,745
23,175
1,000,000
23,175
18,000
12,000
28750
-0-
24,800
113,300
-0-
52,000
480,000
221,806
18~000
12,000
28,750
-0-
24,800
130,000
-0-
52,000
750,000
48O,0OO
238,506
1,030,2562,198,139 1,030,256 1,030,256
*No recommendation pending further information and discussion
CMR:244:00 Page 3 of 7
DISCUSSION
Community_ Working Group’s Amended Request
The CWG’s application for 2001/02 funding was $1,000,000. In order to use the CDBG
funds most effectively, and not trigger unnecessary federal regulations, it was anticipated
that the CDBG funding would be targeted to pre-development activities. The amount of
the pre-development activities that would likely need funding in fiscal year 2001/02 was
identified by CWG as $400,000. At the conclusion of the CAC meetings, both staff and
the CAC supported a recommendation to provide approximately $350,000 toward these
costs.
In March, however, following discussions with HUD staff in San Francisco and
Washington, D.C., staff and the CWG learned that any additional federal funds in the
prqiect (even pre-development funds) would trigger the Uniform Relocation Act (URA),
requiring relocation assistance to the existing tenant.
It is estimated that this additional expense could increase the CWG budget by as much as
$100,000. CWG’s revised budget and timeline for expenditures (including site
acquisition costs) now reflect expenses of $735,000 during fiscal year 2001/02 that could
be funded with CDBG funds. Even with the provision of $480,000 in CDBG funds,
CWG will have a budget shortfall of $235,000 in 2001/02 for which it will have to do
additional fundraising.
Other Potential Housing Projects:
In addition to the Opportunity Center, there are three known potential housing projects
that may need assistance from the City’s housing reserve funds over the next few years:
SOFA Affordable Housing Project. This project .will produce approximately 45 new
units of affordable housing on the site of the old Palo Alto Medical Foundation facility.
The City has acquired the site and is in the process of selecting a non-profit developer to
design and construct the housing. $420,000 of fiscal year 2000/01 CDBG funds has been
allocated to this project and may be used to move and rehabilitate the historic house on
the site, or for pre-development costs such as environmental, clearance or off-site
improvements. Development proposals have been submitted and the two top candidate
teams are scheduled for interviews on May 7. Following the selection of a developer, a
more exact budget will be developed that may identify the need for additional city
subsidies.
New Affordable Housing Project. The City is in the process of actively pursuing
development of new affordable rental housing units. Funds will need to be available in
order to acquire and assemble an appropriate site. Once a site is acquired, the City
CMR:244:00 Page 4 o1~7
intends to work with a non-profit housing developer to design and construct the housing.
The amount of funding needed for site acquisition costs is unknown at this time.
Terman Apartments. For-profit develope~:-~. Goldrich and Kest are the owners of the
Terman Apartment complex at 655 Arastrt~: ~-o Road. The 92-unit complex is at risk of
conversion to market rate rental housing in 2004 when the HUD project-based Section 8
rental assistance subsidy expires. This was originally a HUD 221(d)(4) project with an
FHA-insured market rate mortgage. This type of mortgage has no underlying
prepayment restriction that requires continued affordability. If State funds targeted to the
preservation of at-risk units actually become available within the next fiscal year, a
buyout might be considered prior to 2004. The amount of funding assistance that may be
required to preserve this project is not known.
RESOURCE IMPACT
As a result of the revised request by the CWG, the Finance Committee requested staff to
provide up-dated information on the status of the City’s Housing Development Funds,
and the housing projects that might need funding. The following chart identifies the
current balances in the funds, anticipated additional funds, and the totals.
CMR:244:00 Page 5 of 7
STATUS OF HOUSING DEVELOPMENT FUND as of April 20, 2001
Type of Funds Funds
CDBG Funds:
note #1 & #2)
Housing Development Fund (see
Available
4/20/01
$420,000
Total Current
Funds &Expected
Expected Funds Thru FY
01/02
Residential Funds:
Available as of 4/20/01 (see note #3)
Outstanding Fees from Approved Projects
Expected to be Received in FY 01-02
Total Residential Fund
$1,275,958
$421,700
$421,700 :~i $1,697;658 ,.
Commercial Funds:
Available as of 4/20/01 $824,761
Fees Expected from Projects Under Construction &
Other Anticipated Revenue to be Paid in FY 00-01
or 01-02
Fees Expected from Projects with Recent
Approvals (to be Paid in FY 01-02 or later)
Total Commercial Fund
GRAND TOTAL ALL FUNDS
$573,854
$824,761 ¯$1,373,854 ¯~ $2,198,615
.$2,520,719 $2’017,360 $4,538,079
Notes:
1. $420,000 in federal CDBG funds are appropriated in the FY 00-01 budget for the SOFA family housing project and are
available, but have not been committed for any specific use in that project.
2. About $221,806 of FY 01-02 CDBG funds is likely to be allocated to the City for Housing Development.
3. The following BAO’s and expected costs are excluded t~om the Funds Available in the Residential Fun& $500,000 for
the contribution to the County Housing Trust; $130,000 for the preservation ofa BMR unit; $60,000 in the 01-02 Budget for
the PAHC BMR administration contract.
The timely expenditure of CDBG funds has been reinforced as a high priority by the new
HUD administration in Washington, D.C. In order to comply with the requirement that
the City have no more than 1.5 times its annual CDBG grant available in its letter of
credit, each project has been evaluated on the basis of whether on not the funds are likely
to be spent in the year allocated. A build-up of unspent funds in excess of the HUD
standard may put the City’s future CDBG funding at risk. There is a reasonable
expectation that all of the activities proposed will utilize the funds in the 2001/02 fiscal
year.
CMR:244:00 Page 6 of 7
ATTACHMENTS
Attachment A CDBG Funding Resolution for Fiscal Year 2001/02
Attachment B April 3, 2001 Finance Committee CMR
Attachment C Letter from Community Working Group
PREPARED BY:
DEPARTMENT HEAD REVIEW:
Director, Planning and Community Environment
CITY MANAGER APPROVAL: ~
EMILX~--HARR~S ON
Assistant City Manager
CC:CDBG Citizens Advisory Committee
Human Relations Commission
2001/2002 Applicant Agencies
CMR:244:00 Page 7 of 7
Attachment A
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
APPROVING THE USE OF COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDS FOR FISCAL YEAR 2001-2002
WHEREAS, on May 8, 2000, the Palo Alto City Council
approved and adopted a document entitled "Consolidated Plan", which
identified and established the Palo Alto housing and non-housing
community development needs, objectives, and priorities for the
period of July I, 2000 to June 30, 2005; and
WHEREAS, the 2001-02 Action Plan, the annual update to the
Consolidated Plan, was subjected to public review and commentary
during the period of March 30, 2001 through April 30, 2001; 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 persons with low and
moderate incomes; and
WHEREAS, the City Council and the Finance Committee of the
City Council have held publicl~ not±ced public hearings on the
proposed uses of the CDBG funds for fiscal year 2001-02; and
WHEREAS, the fiscal year 2001-02 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 2001-02
are hereby approved and authorized for the following programs:
Catholic Charities of Santa Clara County.
Long Term Care Ombudsman Program.
Complaint investigation and advocacy-
services to Palo Alto’s elderly residents
living in nursing and residential care
facilities, city-wide.8,490
Emergency Housing Consortium. EHC
provides temporary shelter and supportive
services for homeless individuals and
families. County-wide.8,490
010425 syn 0090909
i0.
Palo Alto Housing Corporation. Supportive
counseling program for lowincome residents
of the Barker Hotel at 439 Emerson Street
in Palo Alto.
Palo Alto Housing Corporation. Project
is to provide information and referral
services for affordable housing options
in Palo Alto and surrounding communities,
and the publication Of a housing directory.
City-wide.
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 -
Emergency and transitional housing and
supportive services for homeless families
with children. 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.
Mid-Peninsula Citizens for Fair Housing.
MCFH provides 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.
Alliance for Community Care - Rehabil-
itation of a residential structure for
use as shared, supportive housing for
persons with psychiatric disabilities.
650 Waverley Street in Palo Alto.
22,745
23,175
18,000
12.,000
28,750
24,800
130,000
52,000
010425 syn 0090909
ii.Community Working Group - Opportunity
Center. Predevelopment, relocation and
acquisition costs of a site for a new
facility to provide social services and
approximately 55 units of housing
affordable to extremely low income
persons. 33/39 Encina in Palo Alto.
12.City of Palo Alto - Housing Development
Fund. Provision of funds to be used in
conjunction with other City Housing
In-Lieu funds tO acquire a site for a
new affordable housing project. Location
not yet determined.
480,000
221,806
TOTAL $i, 030,256
SECTION 2. The total amount set forth under Section 1 of
this resolution hereby represents the proposed allocation of
$771,000 in CDBG funds, from the United States Department of
Housing and Urban Development ("HUD") for fiscal year 2001-02,
$40,000 in anticipated program income for fiscal year 2001-02,
$85,000 in prior years program income, and $134,256 in program
income from the Sheridan Apartments acquisition project.
SECTION 3. The City Manager is hereby authorized to expend
the money in the $I0,000 CDBG emergency, contingency, account,
created under Resolution No. 6897, on an emergency basis in his
discretion for existing or additional CDBG-eligible programs or
projects. The City Manager is further directed to report to the
City Council following the occurrenceof any such expenditures.
SECTION 4. The City staff is hereby authorized to submit
the 2001-02 annual Action Plan update and appropriate application
forms to HUD for the fiscal year 2001-02 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.
//
//
//
//
//
010425 syn 0090909
3
SECTION 5. The City Council hereby finds that the fiscal
year 2001-02 CDBG program authorized under Section 1 of this
resolution is not a project under the California Environmental
Quality Act ("GEQA"). 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 2001-02
CDBG program prior to the release of funds for any such project.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Senior Asst. City Attorney.
APPROVED AS TO CONTENT:
CDBG Coordinator
Mayor
City Manager
Director of Planning
and Community Environment
Director of Administrative
Services
010425 syn 0090909
Attachment B
City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION: " FINANCECOMMITTEE
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:
SUBJECT:
APRIL 03, 2001 CMR:181:01
PROPOSED FISCAL YEAR 2001/02 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG)
FUNDING ALLOCATIONS
REPORT IN BRIEF
This report transmits the recommendations of City staff and the Citizens Advisory Committee
(CAC) for the expenditure of Community Development Block Grant (CDBG)funds for fiscal
year 2001/02. The City received 15 applications for funding totaling $2,248,139. One request
for funding was later withdrawn. The total amount available for allocation in fiscal year
2001/02 is $1,030,256, Attachment A summarizes the funding requests with the staff and
CAC recommendations. Staff and the CAC did not concur on all of the funding
recommendations. The CAC recommendations are presented as alternatives to the staff
recommendations in this report.
RECOMMENDATION
Staff recommends that the Finance Committee recommend to the City Council approval of the
following:
1.The CDBG funding allocations, as recommended by staff, be included in the final 2001/02
Action Plan update to the Consolidated Plan for the period 2000-2005.
Staff be authorized to submit to the Department of Housing-and Urban Development
(HUD), by the May 15, 2001 deadline, the Action Plan for the expenditure of 2001/2002
CDBG program funds.
CMR: 181:01 Page 1 of 8
The City Manager, on behalf of the City, be authorized to execute the 2001/02 application
and Action Plan for CDBG funds, and any other necessary documents concerning the
application, andto otherwise bind the City with respect to the application.
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 required by HUD in order for the City to receive federal fund’.mg~.from programs
such as the Community Development Block Grant (CDBG) or HOME Investment Partnership
Act. The Draft 2001/02 Annual Action Plan update is available for public review and
comment during the period March 30 to April 30, 2001 (Attachment B).
The primary need identified in the Consolidated Plan is for housing affordable to low-income
persons, or persons with special needs. The goal .for the five-year period is to provide 125
units of permanent, affordable housing. All of the proposed projects for CDBG funding for
fiscal year 2001/02 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 Program, authorized by Title I of the Housing and Community Development Act of
1974 (the Act), as amended. The primary objective of theAct is "the development of viable
urban communities by providing decent housing and a suitable living environment, and
expanding economic opportunities, principally for persons of low and moderate income."
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. ..
CMR: 181:01 Page 2 of 8
The three primary CDBG program activity areas are:
Public Service: Social service activities such as the provision of shelter and
supportive services, information and referral, substance abuse prevention and
counseling, case management services, senior services, etc. may be funded under
this category. The maximum amount that can be expended under this category is 15
percent of the grant and program income for the previous year. For fiscal year
~2001/02 the public service cap is’limited to a maximum of $141,788.
Planning and Administration: This category may be used to reimburse for fair
housing activities, City staff time spent on CDBG program management, oversight
and coordination, as well as general planning activities .(i.e. the update of the
Housing Element). Federal regulations limit the amount that can be spent in this
category to 20 percent of the grant and estimated program income for the following
year. For fiscal year 2001/02 funding is limited to a maximum of $154,400.
Capital Projects: The primary focus of the CDBG program is "community
development" or capital projects such as housing, land acquisition, relocation, site
clearance, rehabilitation, accessibility, public facility improvements, etc. There are
no funding limitations in this category.
Funding Applications
Applications for 2001/02 funding were mailed to more than 75 area housing and human
service providers on October 24, 2000. A notice announcing the availability of applications
for 2001/02 CDBG funding was published in the Palo Alto Weekly. on October 25, 2000. The
completed applications were due by 3:00 p.m. on Tuesday, December 12, 2000.
In order to coordinate the Human Service Resource Allocation Process (HSRAP) with the
CDBG application process, a joint Proposal Writing Workshop was held on November 8,
2000. All HSRAP and CDBG applicants were encouraged to attend the workshop that
included information about the City’s CDBG and housing programs as well as HSRAP funds
administered by the Office of Human Services.
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), selected by the Mayor. One slot on the CAC is reserved
for a member of the City’s Human Relations Commission (HRC). This year’s committee is
composed of: Andrew Pierce (HRC Liaison), Stacy Beese, Gaye Courtney, Jonathan Foster,
Andrew Freedman, Liza Kniss-Salame, Trina Lovercheck, Jeffrey Rensch, and Joe Villareal:
Trina Lovercheck was selected as the Committee’s spokesperson.
CMR~ 181:01 Page 3 of 8
DISCUSSION
Funds Available for Allocation
The City’s 2001/02 CDBG entitlement allocation is $771,000. This represents a five percent
increase over the prior year’s grant allocation of $732,000. Program income (income
generated directly from the use of CDBG funds) for 2001/02 is expected to be approximately
$259,256. Thig amount is comprised of the following:
1)$20,000 in expected loan payoffs from the City’s Housing Improvement Program
(HIP), a single-family residential rehabilitation program that is no longer
operational;
2)$20,000 in estimated revenue from the Palo Alto Housing Corporation that is
generated when rental income exceeds expenses on specific properties acquired or
rehabilitated with CDBG funds;
3)$85,000 of program income received in previous years in excess of the estimated
amounts; and
4)$134,256 in program income received from the Palo Alto Housing Corporation as a
principal payment on the CDBG portion of the City’s loan for the Sheridan
Apartments project. The repayment was the result of a final audit of the project’s
development costs and sources of funding. The audit showed an excess of funds
over costs due mainly to a ruling in the tax credit program that gave the tax credit
investors credits on the rehabilitation costs from the date of acquisition rather than
the date of completion of the rehabilitation.
In Summary:
FY 2001/02 CDBG Allocation from HUD
Program Income:
Housing Improvement Program 2001./02 (Estimated)
Palo Alto Housing Corporation 2001/02 (Estimated)
Excess from Prior Years (Actual)
Sheridan Apartments (Actual)
-Total
$771,000
20,000
20,000
85,000
134,256
$1,030,256
Calculation of Public Service and Planning/Administration Caps
The amount of CDBG funds allocated to public service activities can not exceed 15 percent of
the annual grant plus program income from the. preceding program year. Although fifteen
percent of the program income from the Sheridan project could be included in the calculation,
staff and the CAC do not recommend funding at the maximum amount. Since it is anticipated
that the Sheridan loan repayment is a one-time source of program income, funding at the
CMR: 181:01 Page 4 of 8
higher end of the range would increase the likelihood of having to make funding cuts in the
public service category in future years.
Public Service Cap
2001/02 Entitlement Grant
Program Income - HIP 2000/01’ (Est)
Program Income - PAHC 2000/01’ (Est)
Program Income - Sheridan 2000/01’ (Actual)
$811,000 x 15%‘=
$945,256 x 15% =
$771,000
20,000
20,000
$121,650
$134,256
$141,788
Planning/Administration Cap
2001/02 Emitlement Gram
Program Income - HIP 2001/02’ (Est)
Program Income - PAHC 2001/02’ (Est) ’
$811,000 x 20% =
*Federal regulations require caps to be calculated on program income for different yeam
$771,000
20,000
20,000
$162,200
The chart on the following page shows the applications received and the CAC and staff
funding recommendations. Attachment A is a narrative explainin.g the proposals and the
funding recommendations in more detail. Staff and the CAC have identical recommendations
in the Public Service category, but have differing recommendations in the Planning/
Administration and Capital Improvement categories. The CAC recommendations differ from
the staff recommendations in the following areas:
In fiscal year 2000/01 the City reduced its request for reimbursemem for CDBG program
administration from $130,000 to $110,000. This was done to accommodate the Community
Working Group’s request for a planning grant for the Opportunity Center project that was only
eligible for funding under this category. The actual cost of administering the CDBG Program
and the project delivery expenses relating to housing and capital projects varies each year with
the number of projects and activities, but is approximately $200,000. This includes salaries,
benefits and direct costs such as printing, advertising, postage, etc. It includes staff costs for
the CDBG Coordinator (1 FTE), the Housing Coordinator (.5 FTE), and clerical support (.5
FTE). The City’s General Fund absorbs the costs in excess of the CDBG allocation.
The CAC believes that a greater percemage of the CDBG funds should be distribmed to
projects in the community, and that the City General Fund should provide a greater share of
the CDBG program expenses. While the staff recommendation is to return the CDBG program
reimbursemem to its previous level of $130,000, the CAC recommendation is to increase the
current funding of $110,000 by a three percem cost of living adjustment to $113,300.
CMR: 181:01 Page 5 of 8
The CACrecommends increasing the amount of funding in the City’s Housing Development
Fund proposal by $16,700 over the City’s recommendation.
Name of Agency
2000/2001
Funding
2001/2002
Funding
Request
Catholic Charities
Ombudsman Program
Emergency Housing Consortium
Shelter & Homeless Services
Palo Alto Housing Corporation
Barker Hotel
Palo Alto Housing Corporation
Low Income Housing Services
Shelter Network
Haven Family House
Clara-Marco Alliance
Family Shelter. Wing
Clara-Mateo Alliance
Clara Mateo Shelter
Project Match
Shared Housing Matching Services
PUBLIG SERVIGES
$8,240
8,240
17,745
22,500
15,000
10,000
25,000
N/A
$8,490
11,124
39,250
37,000
20,000
12,000
28,750
18,950
TOTAL PUBLIC SERVICES $175,564
PLANNING & ADMINISTRATION
Mid-Peninsula Citizens for Fair Housing 18,550 24,800
Fair Housing Services
City of Palo Alto 110,000
Program Administration
TOTAL ADMINISTRATION
CAPITAL PROJECTS
130,000
$154,800
65,775
50,000
52,000
N/A
N/A
N/A
Lytton Gardens/ Community Housing Inc. -
Hallway Illumination Project
Palo Alto Unified School District - Besse Bolton
Child Development Center Portable
Alliance for Community Care - Waverley Street
House Renovations - Housing for Adults with
Psychiatric Disabilities
City of Palo Alto - Housing Development Fund
For new rental housing project
Community Working Group
Opportuni~ Center
TOTAL CAPITAL PROJECTS
GRAND TOTAL
Recommendations
$8,49O
8,490
22,745
23,175
18,000
12,000
28,750
-0-
$121,650
24,800
113,300
$138,100
-0-
Applic~ion
Withdrawn
52,000
Staff
$8,490
8,490
22,745
23,175
18,000
12,000
28,750
-0-
$121,650
24,800
130,000
$154,800
$ -0-
Applic~ion
Withdrawn
52,000
N/A 750,000 368,506 351,806
N/A 1,000,000 350,000 350,000
N/A $1,917,775 $770,506 $753,806
$2,248,139 $1,030,256 $1,030,256
CMR: 181:01 Page 6 of 8
RESOURCE IMPACT
The CAC recommendation would require that more General Fund money be expended for
CDBG program support expenses, but would increase the amount available in the City’s
housing development fund for affordable housing projects.
POLICY IMPLICATIONS
All of the applications recommended for funding in fiscal year 2001/02 are consistent with the
priorities established ix the City’s adopted Consolidated Plan for the period 2000-2005. They
are also consistent with the-housing programs and policies contained 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 7, 2001. The funding
allocations and Annual Action Plan update will be submitted to HUD by the May 15, 2001
deadline.
ENVIRONMENTAL REVIEW
For purposes of the National Environmental Policy Act (NEPA) and the Califomia
Environmental Quality Act (CEQA), budgeting in itself is not a project. HUD environmental
regulations for the CDBG program are 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 making 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, and HUD and NEPA regulations have been
satisfied for each particular project.
CMR: 181:01 Page 7 of 8
ATTACHMENTS
Attachment A:
Attachment B:
PREPARED BY:
Narrative report containing staff and CAC funding recommendations
2001/02 Draft Annual Action Plan Update of the Consolidated Plan for
the period 2000-2005
’ ~i]~DBG~oor~ator
DEPARTMENT HEAD:
G. EDWARD GAWF
Director of Planning and Community Environment
CITY MANAGER APPROVAL :~"~EMIL~ ~~/~ SO NO~.
Assistant City Manager
co:CDBG Citizens Advisory Committee Members
2001/02 CDBG Applicant Agencies
CMR: 181:01 Page 8 of 8
ATTACHMENT A
STAFF AND CITIZENS ADVISORY COMMITTEE (CAC)
FUNDING RECOMMENDATIONS FOR 2001/02
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING
PUBLIC SERVICE APPLICATIONS
1.Catholic Charities - Long-Term Care Ombudsman Program
2625 Zanker Rd. Suite 200, San Jose, CA 95134-2107
Proposal: Agency provides confidential advocacy and complaint investigation services to
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 in local facilities on a regular basis and as special circumstances dictate (i.e..
in response to specific complaints). On behalf of these residents, the Program investigates
complaints, including allegations of abuse and neglect,, seeks fair resolution to problems, and
promotes the resident’s right to quality of care and quality of life in the long-term care
setting.
Priority Need: Services for persons with special needs (elderly)
Discussion: Current contract objectives are being met. .Services provided by the
Ombudsman Program are not duplicated by any other agency, and provide an important
presence in local long-term care facilities. Agency anticipates serving 480 unduplicated Palo
Alto residents.
Funding Request: $8,490
Staff and CAC Recommendation: $8,490
2.Emergency Housing Consortium (EHC)- Emergency Shelter and Services
2011 Little Orchard Street, San Jose, CA 95125
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.
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 2,000 person/shelter nights to 50
unduplicated homeless persons from Palo Alto.
Priority Need: Shelter and services for persons who are homeless
Funding Request: $11,124
Staff and CAC Recommendation: $8,490
3.Palo Alto Housing Corporation (PAHC) - Barker Resident Counseling
439 Emerson St., Palo Alto, CA 94301
Proposal: The 26-unit Barker Hotel serves a very low-income population of residents with
a history ofhomelessness and special needs. 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.
Priority Need: Prevention of homelessness
Discussion: Current contract objectives are being met. The Barker cannot be operated for
the benefit of its population without additional services. The service programhas
dramatically reduced the Barker’s eviction rates. Agency will serve 25 very low-income
Palo Alto residents.i
Funding Request: $39,250
Staff and CAC Recommendation: $22,745
4.Palo Alto Housing Corporation - Housing Information and Referral Services
725 Alma Street, Palo Alto, CA 94301
.2
Proposal: Agency provides information and referral (I & R) services to seekers of affordable
housing. I & R services assist mostly lower-income persons in their search to identify
available affordable housing opportunities in Palo Alto and surrounding areas. Additionally,
callers are counseled on eligible subsidy programs, waiting lists, and other housing related
issues. PAHC annually updates and distributes a comprehensive housing directory that
identifies waiting lists and resources in the area.
Priority Need: Supportive services for lower-income persons.
Discussion: Current contract objectives are-being met. The CAC again encourages PAHC
to explore other resources to help fund a portion of the cost of the I & R service. Staff and
the CAC also encourage PAHC to collaborate on the new countywide housing Information
and referral website that is being developed by Community Technology Alliance. The
housing directory continues to be a very useful and important tool for housing seekers in Palo
Alto.
Funding Request: $37,000
Staff and CAC Recommendation: $23,175
5. Shelter Network - Haven Family House
260 Van Buren Road, Menlo Park, CA 94025
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 two to four months until they can
re-connect with permanent housing, jobs, and the skills and resources necessary to break
the cycle of homelessness. An on-site licensed childcare facility is also available.
Priority Need: Transitional housing and 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 reopened in July of 2000 after
extensive renovations. They expect to serve 70 homeless families representing 225 parents
and children. It is anticipated that five of the families will be from Palo Alto.
Funding Request: $20,000
3
Staff and CAC Recommendation: $18,000
6.Ciara-Mateo Alliance (CMA) - Family Shelter Wing
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
Proposal: The Clara-Mateo Ailiance increased the capacity of the shelter facility to
accommodate six homeless families with children. Funds from this grant are used to provide
additional supportive services to the adults and the children. Two full-time case-managers
are devoted solely to helping the families access health care, education and training,
employment, and stable housing.
Priority Need: Shelter and supportive services for homeless families.
Discussion: This project is an important resource for the growing number of homeless
families with children in northern Santa Clara County. Agency anticipates serving 3 very
low-income Palo Alto families with children.
Funding Request: $12,000
Staff and CAC Recommendation: $12,000
7. Ciara-Mateo Alliance - Shelter and Supportive Services
795 Willow Road, Bldg. 323-D, Menlo Park, CA 94025
Proposal: Clara-Mateo Alliance (CMA) provides a 59-bed shelter for homeless individuals
and couples, and six transitional housing units 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, psychiatric disorders, chronic substance abusers, and the severely mentally ill.
Priority Need: Shelter and services for persons who are homeless
Discussion: This program is an important addition to the stock of emergency shelter and
transitional housing beds in Santa Clara and San Mateo Counties. The facility serves the
homeless sub-populations with some of the greatest needs. In the last fiscal year, CMA
provided 4,859 shelter bed nights to City of Palo Alto homeless residents. The shelter serves
approximately 565 homeless persons annually.
Funding Request: $28,750
4
Staff and CAC Recommendation: $28,750
8. Project Match, - Shared Housing
115 East Gish Road #222, San Jose, CA 95112
Proposal: Agency proposes to encourage shared housing matches between seniors and
low-income persons by providing counseling and administrative support at Avenidas in
Palo Alto. Shared housing can increase the supply of affordable housing opportunities
simply by assisting home seekers and home providers in a companionable, safe and secure
match.
Priority Need: Supportive services for lower-income persons.
Discussion: Due to the cap on public services under the CDBG program, the funding of
a new service this year would have required reducing or eliminating an existing service.
It is the hope of staff and the CAC that Project Match can find additional funding from
another source in order to continue this valuable service.
Funding Request: $18,950
¯ Staff and CAC Recommendation: -0-
ADMINISTRATION
o Mid-Peninsula Citizens for Fair Housing (MCFH) - Fair Housing Services
457 Kingsley Avenue, Palo Alto, CA 94301
Proposal: Agency provides investigation, counseling and legal referral for victims of
housing discrimination as well as community outreach and education regarding housing
rights. MCFH serves the mid-peninsula area from Redwood City through
Cupertino/Sunnyvale and Fremont. MCFH seeks to reduce discrimination in housing and
provide redress for those who have been discriminated against. HUD regulations require
CDBG entitlement jurisdictions to affirmatively further fair housing choice.
Priority Need: Fair Housing Services
Discussion: Current contract objectives are being met. Agency proposes to investigate 15
cases of housing discrimination next year, as well as to initiate public outreach and
community education campaigns through workshops, presentations and advertisements.
Funding Request: $24,800
Staff and CAC Recommendation: $24,800
I0.City of Palo Alto - Department of Planning and Community Environment
250 Hamilton Avenue, Palo Alto, CA 94301
Proposal: Funding is requested to reimburse the City General Fund for costs related to the
overall management, coordination, monitoring and evaluation of the CDBG Program,
including oversight of public service contracts, data gathering, studies, analysis, plan
preparation, and the identification of actions for implementation of plans.
Priority Need: CDBG Program Administration and support
Discussion: The cost of administering the CDBG program is approximately $200~000 per
year~ The CAC believes more of the program administration costs should be paid from the
General Fund in order to distribute more of the CDBG funds to project specific activities in
the community. Although the CAC recommends partial funding for administrative costs for
FY 2001/02, it again urges the Finance Committee and the City Council to consider
absorbing more of the CDBG administrative costs from the General Fund. The staff
recommendation is to fund approximately 65% of the program administrative expenses
directly from the grant.
Funding Request: $130,000
Staff Recommendation: $130,000
CAC Recommendation: $113,300
CAPITAL AND/OR HOUSING PROJECTS
11.Community Housing, Inc. - Lytton Gardens Hallway Illumination
656 Lytton Avenue, Palo Alto, CA 94301
Proposal: Agency requested funds to replace existing hallway lighting fixtures and to hook
up the interior lighting to the emergency generator. The increased illumination would
result in increased energy savings as well as improved lighting for the 320 low-income
senior residents.
Priority Need: Rehabilitation of existing affordable housing serving special needs
populations.
Discussion: Although staff and the CAC are supportive of this project, the costs can be
recouped from the potential energy savings in just 6.9 years. The cost of applying federal
prevailing wage and other requirements on the project would only increase the overall cost
of the project and extend the payback period.
Funding Request: $65,775
Staff and CAC Recommendation: -0-
12-. Palo Alto Unified School District
Proposal: Agency requested funding to help purchase a new portable for the Besse Bolton
preschool.. The portable was needed in order for the organization to move from their
current location at Greendell to Fairmeadow elementary school.
Discussion: The application was withdrawn on February 22, 2001.
13.Alliance for Community Care - Waverley House Renovation
650 Waverley Street, Palo Alto, CA
Proposal: This project consists of over $700,000 in renovation costs to bring an existing
single family residence up to code so that it can operate as a residential board and care
home for persons with psychiatric disabilities. Alliance owns the home and proposes to
rehabilitate the facility to preserve the historic house, as well as to provide affordable
housing to approximately 26 people annually in a transitional housing program with
extensive supportive services.
Priority Need: Housing for persons with special needs.
Discussion: The City of Palo Alto, through the CDBG program, has provided a little over
$71,000 in-support of this project in previous years. Although ’Alliance has now raised the
rest of the money needed for the renovations, the total rehabilitation costs have also
increased. The additional money requested for the project should assure that the
renovations will begin shortly, and that this needed facility will soon provide the
anticipated housing and services.
Funding Request: $52,000
Staff and CAC recommendation: $52,000
14. City of Palo Alto -Housing Development Fund
Planning Department, City Hall
Proposal: The proposal is to set aside a significant sum of money that could be used in
conjunction with available City Housing In-Lieu funds for the pursuit of a site for a new
rental housing development. The funds could be used for site acquisition and/or
predevelopment costs once an appropriate site has been identified. The type of housing
construction will depend on the characteristics of the site that is acquired. Some sites are
most suitable for family apartments and other sites may be best for small or single room
occupancy units. Because of the long time frame needed for completion of a housing
development, it. is important to initiate site identification and acquisition for the next
affordable housing project as soon as possible.
Priority Need: Affordable rental housing
Discussion: The City’s Consolidated Plan for 2000 to 2005 describes the City’s needs for
the development of new affordable housing. The need is especially great for low and very-
low income households as these households have been affected most severely by the
escalation in rents over the last five years. Additionally, the Association of Bay Area
Governments (ABAG) has determined that the City’s housing goal is 1,397 units to be
developed before June 2006. 381, or 27 percent, of these units must be affordable to low-
income households.
Funding Request: $750,000
Staff Recommendation: $351,806
CAC Recommendation: $ 368;506
15. Community Working Group - Opportunity Center of the Mid-Peninsula
33/39 Encina Way, Palo Alto
Proposal: This proposal is to provide funding for the development of the Opportunity
Center. The facility will house multiple services for the homeless and those at risk of
becoming homeless, including women and children. It is anticipated that the Opportunity
Center will also include approximately 55 units of transitional and permanent housing for
individuals and small families. The proposed site is located at 33 and 39 Encina Way in Palo
Alto, two adjacent parcels that are currently occupied by an auto repair shop. Development
of the site Will commence when the lease on the site expires, April 1, 2002.
Priority Need: Affordable housing and supportive services for low and very-low income
persons who are homeless or at-risk of being homeless.
’ Discussion: Staffand the CAC are very supportive of this project, but feel that funding at
the level of $350,000 will provide the majority of the funding needed in the next fiscal year.
Because the estimated overall budget for the Opportunity Center is in excess of $13 million
dollars, it is expected that the agency will return with additional funding requests as their
project progresses.
Funding Request: $1,000,000
Staff and CAC Recommendation: $350,000
ATTACHMENT B
CITY OF PALO ALTO
Housing and Community Development
DRAFT
2001/2002 ACTION PLAN
Annual Update of the City’s Consolidated Plan for the Period
July 1, 2000 to June 30, 2005
Public Review Period March 30, 2001 - April 30, 2001
Prepared by Department of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, California 94301
G. Edward Gawf, Director
For Information, Please Contact: Suzarme Bayley
Plarming Division, City of Palo Alto (650) 329-2428
CITY OF PALO ALTO
FISCAL YEAR 2001/2002 ACTION PLAN.
ANNUAL UPDATE TO THE CITY’S CONSOLIDATED PLAN
FOR THE PERIOD JULY 1,.2000 TO JUNE 30, 2005
This Action Plan is the 2001/2002. annual update tothe City’s Consolidated Plan for the Period July
1, 2000 to June 30, 2005. 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 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 Block 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 identified priorities
and strategies. The Action Plan identifies the activities that the City anticipates undertaking in fiscal
year 2001/2002 with CDBG funds, and describes the activities that the City.plans to undertake to
affirmatively further fair housing choice.
Public Review and Public Hearings
HUD regulations require that the draft Action Plan annual update be available for a 30-day public
review and comment period. The review and comment period for the 2001/02 Action Plan is from
March 30, 2001 to April 30, 2001. Interested citizens are invited to submit written comments on the
Plan to Suzanne Bayley, Planning Division, City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA
94301, or by e-mail suzanne_bayley@city, pa!o. alto. ca. us, or to provide comments
directly at the public hearings on April .3, 2001 (Finance Committee Meeting) and May 7, 2001 (City
Council Meeting).
Citizen Participation
On September 14, 2000 the Palo Alto Human Relations Commission held a public hearing to
provide an opportunity for citizens to comment on Palo Alto’s housing, human service, and
community development needs. The number one priority was identified as a lack of housing
affordable to lower income persons. The HRC used the public heating as a basis in the prioritization
of human service needs in the community. The City of Palo Alto has an adopted Citizen
Participation Plan that provides for a nine-member CDBG Citizens Advisory Committee (CAC).
The CAC process encourages public participation in the CDBG allocation and evaluation review
process. The CAC met on January 9, 18, 25; February 1, 6, 15 and 22, 2001 to review and make
funding recommendations on the applications submitted for 2001/02.CDBG funding.
EXECUTIVE SUMMARY OF THE CONSOLIDATED PLAN
The City of Palo Alto is a suburban California City situated on the northern border of Santa Clara
County in the heart of"Silicon Valley". The City is know 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 in~temational culture, art, shopping and food. Palo Alto has
a resident population of approximately 62,000 people. According to 1990 census data, the Citywide
breakdown by race is as follows: White 84.9%, Asian/Pacific Islander 10.4%, Black 2.9%, American
Indian 0.3%, and other 1.5%. Palo Alto is, overall, a very affluent community.. Only 4.6% of the
population are below the poverty level. The 2000 median income for a family of four in Santa Clara
County is $87,000, one of the highest in.the nation.
There is a greater demand for housing in PaloAlto than can be met. This is because Palo Alto is a
desirable .place to live, there are more jobs than housing units, 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 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 alltypes of housing
are needed in the City, the Consolidated Plan objectives focus 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 homelessness, those with special needs, and families with
children.
The main housing goal for the five-year Consolidated Plan 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 Palo 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.
Priorities for non-housing community development needs are to:
Expand, modernize, rehabilitate and make seismic and other safety related
improvements to facilities that serve low-income and special needs populations
Support the accessibility of all services and facilities for persons with disabilities
Support the creation of an indoor Day Center facility for the provision of supportive
¯ services (with the potential of a housing component)
Support organizations that provide a variety of human services to low-income, at-risk
populations
Provide assistance and supportive services to low and very-low income Palo Alto
residents to keep them from becoming homeless
RESOURCES AVAILABLE
Federal Resources
Community Development Block Grant (CDBG) Funds
The City receives CDBG funds as an entitlement grant through theU. S. Department of Housing and
Urban Development (HUD). In fiscal ye~ 2001/02, the City will allocate $1,030,256 in CDBG
funds to activities that address the needs identified in the Consolidated Plan. The amount of the
City’s 2001/02 CDBG entitlement grant from HUD is $771,000, and estimated program income is
$259,256. Program income is income directly generated from the use of CDBG fimds. It is money
that comes back to the CDBG program to be reallocated to new activities.
FY 2001/02 CDBG Allocation
Estimated Program Income 2001/02 (HIP)
Estimated Program Income 2001/02 (PAHC)
Program Income Received - Sheridan
Excess Prior Year Program Income
$771,000
20,000
20,000
134,256
85,000
1,036,256
Loan repayments from the City’s former Housing Improvement Program (-HIP) single-family
rehabilitation loan program are estimated to be $20,000 for next year. Income from the Palo Alto
Housing Corporation (PAHC) is also estimated to be $20,000 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.
In December 2000, the PAHC made a principal payment of $202,438 toward the City’s $2,450,000
loan for the Sheridan Apartments. The final audit of the project’s development costs and funding
sources indicated that there were excess funds over costs. This was due mainly to a ruling in the tax
credit program that gave the tax credit investor credits on the rehabilitation costs from the date of
acquisition rather than completion of the rehabilitation. These funds were returned to the CDBG and
Residential-In-Lieu funds in the same proportion as the original loan to PAHC (CDBG 66.32%,
Residential Fund 33.68%).
HOME Program
The City of Palo Alto does not receive a direct allocation of HOME Program funds from HUD. The
only possible way to access HOME funds 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. At the time the next Notice of Funding Availability (NOFA) is published, staff
will evaluate all potentially suitable projects to determine whether or not to apply for a HOME grant.
Local and Other Resources
Housing Reserve
The primary local housing resource available in the City of Palo Alto is the City’s Housing Reserve.
The Housing Reserve has two components
Commercial Housing In-Lieu 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 space. As of March 31, 2001, the Commercial
Fund had a balance of approximately $770,090.
Residential Housing In-Lieu 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. As of March 31,2001, the Residential Fund had an unrestricted balance of
$1,246,491.
Housing Development Fund
The purpose of the Housing Development Fund is to have funds available on an ongoing basis to
utilize when necessary to facilitate the development, rehabilitation and preservation of low income,
multi-family housing. Housing development opportunities come up throughout the year and, due
to the nature of the real estate market, a quick response is frequently necessary. The Housing
DeVelopment Fund includes money from several sources: the CDBG Housing Fund, the City
Housing Reserve (with the Commercial and Residential components), and HOME trust funds. Each
funding source is accounted for separately. The HOME and CDBG Housing Funds currently have
zero balances.
Housing Development 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 to a project being officially created
in the budget. Typically these costs are for appraisals, environmental studies and soil testing, title
reports and design sketches.
The actual process for initiating a project will vary depending on the particular circumstances.
Usually, a nonprofit sponsor will apply to the Department of Planning and Community Environment
for housing subsidy funds when they are in negotiation for a particular site. At other times, the City
may issue a Request for Proposals once it has secured or identified a potential housing site.
The City may provide funding from a variety of sources depending on the nature of the project. The
Planning Department will present recommendations for each project together with a proposed
funding package to the City Council for approval. In almost all cases, funds will be provided as a
loan secured by the property. The repayment terms and interest rate have to be tailored to the
particular project since affordable housing typically is financed from multiple sources with specific
requirements.
Funds may also be used for emergency loans for home rehabilitation even though the City no longer
has an active single family rehabilitation loan program. It is possible that serious emergency needs
may occur, and in such situations, income qualified homeowners could apply for a rehabilitation loan
in order to make necessary repairs. The intent is only to provide financial assistance to income
eligible homeowners whose homes have serious building code deficiencies and who have no other
resources to undertake repairs.
Housing Trust of Santa Clara County (HTSCC)
The HTSCC is a public/private initiative, dedicated to creating more affordable housing in Santa
Clara County, using a revolving loan fund and grant-making program to complement and leverage
other housing resources. The City of Palo Alto has contributed $500,000 toward the initial $20
million investment capitalization. It is expected that this resource will be available in 2001 to help
leverage new housing projects in the City of Palo Alto.
The chart on the following page identifies the local, public and private resources available, and the
type of activities that may be undertaken with each funding type.
7
LOCAL, PUBLIC AND PRIVATE RESOURCES FOR AFFORDABLE HOUSING
Activity Acquisition Rehab New Home Buyer Rental Homeless
Construction Assistance Assistance Assistance
Homeless
Prevention
Commercial Housing
In-Lieu Fund
Residential Housing
In-Lieu Fund
City owned land
MCC Program
Housing Bond Trust
Fund
Santa Clara County
Housing Trust Fund
X
X
X
X
X
X
LOCAL, PUBLIC
X
X
X
x
X
X
x .x
x
Santa Clara County X.X X X . X X
Housing Authority/
Section 8
County Department of X X
Social Services
PRIVATE RESOURCES
BMR Rental & Owner X X X
Program
Private Lenders: AHP X X X
Nonprofit Developers X X X X X
Private Foundations X X
and Churches
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
Housing Reserves, as appropriate, to leverage-federal and private housing funds and to provide any
required matching funds. Where eligible, CDBG funds could be used as a portion of the matching
requirement for federal housing programs.
2001/2002 ACTIVITIES TO BE UNDERTAKEN
All of the activities to be undertaken in the 2001/2002 CDBG funding cycle address the priority
housing and community development needs identified in the Consolidated Plan.
Housing Activities
Housing Development Fund
The City of Palo Alto proposes to set aside a significant amount of the 2001/02 CDBG funds to
be used in conjunction with other Housing Reserve funds for site costs for a new subsidized
rental housing project. During 2001, City staff will be conducting a thorough review of vacant
and redevelopable land that is suitable for multi-family affordable housing. This will be done in
conjunction with the Housing Element update. Additionally, some potential sites have already
been identified as part of recent City efforts to investigate sites for a new public safety building
and a site for the relocation of the Jewish Community Center.
CDBG funds would be used for costs that are eligible under federal regulations. These include
site feasibility, option and land acquisition Eosts. Site feasibility studies are necessary as part of
the negotiation of a purchase agreement. These studies include appraisals, title searches,
environmental investigations including soil testing and conceptual site plans. CDBG funds could
also be used to pay the cost of securing a site option pending acquisition, and then to fund a
portion of the cost of the land. Due to the value of build-able land in Palo Alto, the CDBG funds
would have to be combined with Housing Reserve funds to purchase a site of sufficient size.
As part of its strategy to maximize housing opportunities and the use of available land, the City
will also work with non-profit service providers and other entities that own or control land to
prepare plans to redevelop these properties with new service centers combined with housing.
Opportunity Center- 33/39 Encina Way, Palo Alto, CA
The Community Working Group (CWG) proposes to develop a Service Center for homeless
individuals and families that includes a transitional and permanent housing component. CWG has
obtained site control on two adjacent parcels of land at 33 and 39 Encina Way in Palo Alto. They
have partnered with the Housing Authority of the County of Santa Clara, the Palo Alto Housing
Corporation, and Inn Vision for the development and service aspects of the project.
The proposed $13 million Opportunity Center of the Midpeninsula will be a mixed-use facility that
will house multiple services for those who are homeless and those who are at-risk of becoming
homeless. It will include drop-in services, showers and laundry facilities, lockers, light snacks,
information and referral, transportation assistance, a clothes closet, rehabilitative services, and
fellowship.
It is estimated that approximately 43-55 units of permanent and transitional housing could be
accomplished on the site. The housing would accommodate both individuals and families with
children. It is most likely that a Planned Community (PC) zone will be necessary to provide the
density required. The site is currently under lease to an auto repair business until April 1, 2002.
Rehabilitation of Waverley Street House - 650 Waverley Street, Palo Alto, CA
ALLIANCE for Community Care has requested additional funding to rehabilitate their single-family
residential property at 650 Waverley Street in Palo Alto. After rehabilitation, the building will be
utilized as a board and care home for low-income persons with mental disabilities. It is intended to
serve persons who have become stable on medications and need housing and supportive services to
learn living skills, symptom management and socialization. They may have formerly been homeless
or might be at-risk of homelessness. It is estimated that the facility will serve approximately 26
people annually.
The property is a two-story residential structure built in 1904 and is eligible for listing on the
National Register of Historic Places. There is a detached garage and apartment above the garage.
It is currently vacant except for a caretaker. There is a need for extensive renovations and
maintenance including seismic and structural repairs, replacement of major systems such as roofing,
electrical, plumbing and heating, and other problems such as termite infestation. A CDBG funded
feasibility study, completed in April, 1999, identified a board and care or shared housing facility as
a viable option for the property.
The estimated cost of rehabilitation has increased to over $700,000. The City of Palo Alto allocated
$60,000 in 1999/00 CDBG funding for the project that has been committed to predevelopment costs
such as architectural and engineering fees. ALLIANCE has successfully completed a fundraising
campaign that includes an allocation of Federal McKinney Homeless funds, private foundation
grants, and other subsidies and donations. The City’s 2001/02 allocation of $52,000 will fill the
project’s funding gap. The project is expected to be completed by the end of calendar year 2002.
Non-Housing Community Development Activities
CDBG public service funds will be targeted to the following programs in fiscal year 2001/02:
Catholic Charities - Long Term Care Ombudsman Program for the frail elderly
Emergency Housing Consortium - Shelter and supportive services for homeless persons
Palo Alto Housing Corporation - Housing Information and Referral Program
Palo Alto Housing Corporation - Barker Hotel tenant counseling services
Clara-Mateo Alliance - Shelter and services for homeless individual and couples
Clara-Marco Alliance - Shelter and services for homeless families
Shelter Network - Haven Family House transitional housing and services for previously
homeless families
Human Services
In addition to the CDBG public service funds, the City will provide $1,246,63~ from the General
Fund in support of human services through its Human Service Resource Allocation Process
(HSRAP). The HSRAP funds, in conjunction with the CDBG public service funds, are distributed
to local non-profit agencies whose programs serve the needs of seniors, children, youth and families,
persons with disabilities, and those who are homeless, or at risk of homelessness. A variety of
supported programs provide fair housing activities, mental and physical health care services,
tenant/landlord mediation, housing information and referral, subsidized child care, support for
victims of domestic violence and rape, senior services, adolescent counseling, emergency food,
nutritional services, recreational activities, and subsidized para-transit services.
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:
Alliance for Community Care: mental health outreach and service linkage for Palo Alto’s
adult homeless population. An agency casework counselor worlds in thePalo Alto area to
help low-income, disabled people access existing mental health and other community
resources
American Red Cross: homeless prevention program that provides direct assistance to families
experiencing financial difficulties. The purpose of the program is to help families remain
in their housing and avoid becoming homeless. Agency provides rental and utility assistance
as well as counseling and information and referral to eligible low-income families.
City of Palo Alto Seasonal Jobs Program: designates several temporary, seasonal
employment opportunities in various City of Palo Alto Departments, for persons who are
homeless and unemployed. The program is targeted to individuals who are motivated to
!mprove their situations and re-enter the work force.
Clara-Mateo Alliance Shelter: 60 bed year-round shelter and casework counseling and
supportive services for homeless individuals, couples and families with children who are
actively workingtoward achieving their goals and overcoming homelessness.
Emergency Housing Consortium: shelter and supportive services to homeless persons at the
National Guard Armory in Sunnyy. ale, 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 childcare center.
MayView 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 - Barker Hotel Tenant Counseling: counseling and intensive
case-management services to the low income residents of the Barker Hotel at 439 Emerson
Street in Palo Alto. Many of the residents have a history ofhomelessness and special needs.
The program plays a vital rolein 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 distributedweekly 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 area 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 of Palo Alto: services for very-low income or homeless persons including
bagged groceries, hot meals, emergency shelter, information and referral, case-management
and money management (payee) programs. The outdoor morning drop-in center is 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.
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 web-site is being developed to assist service providers and housing
seekers.
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 12 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 26 units of permanent Single Room Occupancy (SRO) housing at rents affordable
to persons with incomes between 30% and 50% of the median income. 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.
Six of the units are available with tenant based Section 8 subsidies through the "Shelter Plus Care"
program.
Alma Place. Alma Place is located at 753 Alma Street in Palo Alto, and is also owned and operated
by the Palo Alto Housing Corporation. The project, a 106-trait single room occupancy residence
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 $330 to $490 per month
and are. available to persons earning between $6,600 and $20,000 a year. Six of the units are
available with tenant based Section 8 rental subsidies through the "Shelter Plus Care" program.
Haven Family House. Shelter Network of San Mateo County owns and operates this transitional
housing facility for families with children located at 260 Van Buren Road in Menlo Park. Families
reside in one and two bedroom apartments for two to four months depending on their individual case
plans and situations. Comprehensive case management, support services, and on-site licensed
¯ childcare are available to help families break the cycle of homelessness.
Analysis of Impediments to Fair Housing. Choice
The City of Palo Alto completed an Analysis of Impediments to Fair Housing Choice on February 6,
1996. That report identified a lack of housing options affordable to persons 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.
The City of Palo Alto has joined with other Santa Clara County entitlement jurisdictions to
undertake a countywide fair housing study. The project is behind schedule, but will be revised to
include 2000 census data. The draft report that includes new census data is expected to be completed
2.3
by June of 2001. The study will include 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 a plan for the development of new strategies.
The information from the finalized survey will be the basis for pbtential revisions to the Analysis
of Impediments to Fair Hou’sing Choice.
Palo Alto plans to undertake the following actions to foster and maintain affordable housing and to
address housing discrimination during the 2001/02 fiscal year:
Provide tenant/landlord counseling and mediation services for Palo Alto through Project
Sentinel
Provide low-income housing information and referral services including the publication of a
housing booklet through the Palo Alto Housing Corporation
Support Community Technology Alliance in their efforts to create a countywide web-site of
subsidized housing opportunities, wait lists and vacancies
Provide CDBG funds to ALLIANCE for Community Care to rehabilitate the Waverley Street
House to be used as an affordable board and care facility for low-income persons with mental
disabilities.
Provide CDBG funds to the Community Working Group to commence development of the
Opportunity Center to benefit homeless and very low-income persons.
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 by MCFH 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 finalize a
countywide study of fair housing issues, and to implement any recommended improvements to
the delivery of services on a regional basis.
Provide funding to the local fair housing agency, Mid-Peninsula Citizens for Fair Housing
(MCFH) to reduce discrimination in housing by:
a.Investigating a minimum of 15 cases of housing discrimination "
b.Conducting 25 consultations with persons who believe they have been discriminated
against
c.Maintaining a pool of 50 testers for investigations and conducting 3 trainings
d.Maintaining a panel of 10-15 attomeys for referral and coordinating an annual meeting
for participating attorneys
e.Running biweekly ads in the Palo Alto Weekly and daily ads in the San Jose Mercury
News; and running one display ad promoting fair housing
f.Distributing 100 fair housing brochures
g Running 20 public service announcements for local radio/TV broadcasts
h.Making 7 educational presentations to the community
i. Monitoring and reporting on four rental sites
j Showing the educational video on housing discrimination produced by MCFH on local cable
TV
Geographic Distribution
Housing Activities: The City will consider the provision of all types of housing assistance on a
citywide basis consistent with the policies of the City’s 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.
Community Development Activities: Specific efforts have been coordinated in the Community
Services and Police Departments to focus on activities and services in the Yentura neighborhood.
A number of City sponsored programs and activities serving low and very low-income persons have
either been undertaken or are proposed. A police substation was opened in the area with the.goal
of improving contact with the community. The Ventura Neighborhood (Census tract 5107, Block
Group 2) has a large proportion of modest rental housing, a relatively high proportion of minority
and ethnic groups, and 48.46 % of the households are below the CDBG income eligibility limits.
Amendments to Plan
Prior to the submission of any substantial change in the proposed use, of funds, citizens will be
provided reasonable notice of, and the opportunity to comment on, the proposed Action Plan
amendments(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.
Lead-Based Paint
The City will continue to require testing and lead hazard reduction in housing rehabilitation efforts
funded with Federal funds. The City ofPalo Alto,.along with the other CDBG entitlement cities in
Santa Clara County, are working to establish adequate capacity to comply with the new Lead-Based
Paint Regulations (24 CFR Part 35) that were effective September 15, 2000. The City has requested
an extension from the U.S. Department of Housing and Urban Development for implementation of
the new regulations until August 2001 in order to address the capacity issue.
3_5
Monitoring of Activities
The City of Palo Alto follows the monitoring requirements for the use of Federal funds as directed
by HUD. They 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 annual performance
reports outlining the extent to which program goals have been achieved, and the 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, Gilroy, Milpitas,
San Jose), and the Urban County of Santa Clara continue to meet to discuss issues of mutual concem
and to share information and strategies foraddressing housing, homeless, 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.
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 southem
San Mateo County. The City actively participates in the Santa Clara County Housing and Homeless.
Collaborative.
The "Quality Housing and Work Responsibility Act of 1998" requires that public housing authorities
(PHA) to develop and implement five-year plans that describe their long range goals and a strategy
for achieving the identified goals. These plans provide details about the PHA’s operations, program
p .articipants, 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, the CDBG
Coordinator and the Administrator of Human Services 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. The CDBG and housing staff attend and
participate in the semi-annual Human Services Provider Network meetings coordinated by the
Human Services Division to promote understanding and collaboration among the local public service
agencies.
Application for Federal
Assistance
1. Type of Submission:
Application:Non - Construction
~reapplication:
2. Date Submitted
05/15101
3. Date Received by State
4. Date Received by Federal Agency
Applicant Identifier
B-O1-MC-06-0020
State Application Identifier
F~=.deral Identifier
5. Applicant Information
Legal Name
CITY OF PALO ALTO
Address
250 Hamilton Avenue
Palo Alto, CA 94301
Santa Clara County
6. Employer Identification Number (EIN):
8.Type of Application:
Type: Continuation
10. Catalog of Federal Domestic Assistance Number:
Catalog Number: 14218
Assistance Title: Community Development Block Grant
12. Areas Affected by Project:
The City of Palo Alto, County of Santa Clara, State of
California
Organizational Unit
Department of Planning & Community Environmen
Contact
Suzanne Bayley
(650) 329-2428
7. Type of Applicant:
Municipal
9. Name of Federal Agency:
U.S. Dept. of Housing & Urban Development
11.Descriptive Title of Applicant’s Project:
The City of Palo Alto’s Community Development Block
Grant (CDBG) Program for Fiscal Year 2001/2002
13. Proposed Project:
Start Date End Date
07/01/00 06/30/01 "
15. Estimate~d Funding:
a. Federal $771,000
b. Applicant $0
c. State $0
d. Local $0
e. Other $0
f. Program Income $259,256
g. Total
$1,030,256
14. Congressional Districts of:
a. Applicant | b. Project
12th Congressional DistrictJ 12th Congressional District
16. Is Application Subject to Review by State Executive Order 12372 Process?
Review Status:Program not covered
17. Is the Applicant Delinquent on Any Federal Debt?
No
18. To the best of my knowledge and belief, all data in this application/preapplication are true and correct, the document has been duly authorizedby the governing body of the applicant and the applicant will comply with the attached assurances if the assistance is awarded.
a. Typed Name of Authorized Representative b. Title c. Telephone Number
Frank Benest City Manager (650) 329-2483
d. Signature of Authorized Representative e. Date Signed
05/11101
Funding Sources
Entitlement Grant (includes reallocated funds)
CDBG
ESG
HOME
HOPWA
Total ,~
$771,000
$0
$0
$0
Prior Years’ Program Income NOT previously programmed or reported
CDBG ~$219,256
ESG $0
HOME $0
HOPWA $0
Total
Reprogrammed Prior Years’ Funds
CDBG
ESG
HOME
HOPWA
Total
$0
$0
$0
$0
Total Estimated Program Income
Housing Improvement Program
Palo Alto Housing Corp
Total
$20,000
$20,000
Section 108 Loan Guarantee FUnd
$771,000
$219,256
$0
$40,000
$0
TOTAL FUNDING SOURCES $1,030,256
Other Funds $0
Submitted Proposed Projects Totals $1,030,256
Un-Submitted Proposed Projects Totals $0
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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 andrelocation requirements of the
Uniform Relocation Assistance and Real Property Acquisition Polidies Act 0f 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 cominue 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 actionsthat 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 theperformance 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;
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;
¯ 6o 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 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
Name: Frank Benest
Title: City Manager
FO~"COMI~
APPENDIX TO CERTIFICATIONS
INSTRUCTIONS CONCERNING LOBBYING AND DRUG-FREE WORKPLACE REQUIREMENTS:
A, 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 ~br making or
entering into this transaction imposed by ~ection 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.
B. Drug-Free Workplace Certification
1. ~By signing and/or submitting this application or grant agreement, the grantee
is providing the certification.
2. The certification is a material representation of fact upon which reliance is placed when the
agency awards the grant. If it is later determined that the grantee knowingly rendered a false
certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in
addition to any other remedies available to the Federal Government, may take action authorized
under the Drug-Free Workplace Act.
3. Workplaces under grants, for grantees other than individuals, need not be
identified on the certification. If known, they may be identified in the grant application.
If the grantee does not identify the workplaces at the time of application, or upon award,
if there is no application, the grantee must keep the identity of the workplace(s) on file in
its office and make the information available for Federal inspection. Failure to identify
all known workplaces constitutes a violation of the grantee’s drug-free workplace
requirements.
4. Workplace identifications must include the actual address of buildings (or parts of
buildings) or other sites where work under the grant takes place. Categorical descriptions
may be used (e.g., all vehicles of a mass transit authority or State highway department
while in operation, State employees in each local unemployment office, performers in
concert halls or radio stations).
5. If the workplace identified tothe agency changes during the performance of the
grant, the grantee shall inform the agency of the change(s), if it previously identified the
workplaces in question (see paragraph three).
6. The grantee may insert in the space provided below the site(s) for the performance of
work done in .connection with the specific grant:
Place of Performance (Street address, city, county, state, zip code)
250 Hamilton Avenue, Palo Alto, CA 94301
Check __ if there are workplaces on file that are not identified here.
The certification with regard to the drug-free workplace is required by 24 CFR part 24, subpart F.
7. Definitions of terms in the Nonprocurement Suspension and Debarment common rule
and Drug-Free Workplace common rule apply to this certification. Grantees’ attention is
called, in particular, to the following definitions from these rules:
"Controlled substance" means a controlled substance in Schedules I through V of the
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 dru~ statute" means a Federal or non-Federal criminal statute involving the
manufacture, distribution, dispensing, use, or possession of any controlled substance;
"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).
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 needsand 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:
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) 2000 - 2003 (a period 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;
o 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
publi~c improvements financed by a source other than CDBG funds.
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:
1.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
2.A policy 0f 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 notification, inspection, testing and abatement procedures concerning lead-based paint
will comply with the requirements of 24 CFR §570.608;
Compliance with Laws -- It will comply with applicable laws.
Signature/Authorized Official
Date
Name: Frank Benest
Title: City Manager
19. ~881 1 : 10PM
Attachment C
Community Working Group, Inc.
555 Bryant Street, PMB #321 * PMo Alto, CA 94801 , Voice (650) 562-~1888 * Fax (650) 325-7991
SuzanneBailey April 19, 2001D~p~t of PI~ and Co~i~ ~n~ro~m
CiW of P~o
2~0 H~l~n Aw.
Pale Alto, CA
Jim Burklo, ~i~ Pr~/tient
F~rst l~sbyter~ (~lmreh
Lithe luderg~nd, Tr~eurer
¯ John B~rton
Clara
Tern ~onn
Cy~m, lnu,
Larry
Paul Gghert
Toni Wallace
Tom Wasow
Dear 1~..Bailey,
I request that the amount allocated to the Community Working Group from
CDBG funds be in~re~sed to $480,000, This amount represents an increase of
$130.000 f~om the level initially recommended to the COuncil by staffand by the
CAC. We request this increase to assist us with expenditures we will be required to
make in the 2001/2002 fiscal year that were not inck~led in our original application,
Our initial application requested $1,000,000 to fund estimated predevelopment
costs for the Opportunity Center. 0f these costs, we had estimated that ba~ween
$350,000 and $400,000 would be ~x-pended in the next fiscal year, We did not
include in our request a~y funds for land acquisition, as we wished to avoid incurring
the expense of tenant relocation thatwould have been triggered by using CDBG
funds to pay for acquisition.
After submitting our applicafion, and at~r review of our application by the CAC,
we re0eived informatio~ ~rom HUD that, in using any federal funds in any phase of
the project, we are required to pay for tenant relocation. Our legal cotmsel has
estimated the cost of that relocation process could be as high as $100,000. In
addition, since we will need to provide recant relocation regardless, we wishnow to
include a request for funds to assist with site acquisition in our CDBG application.
In March 2002 we will pur~ase the property at 3.9 Enci~a Way for inclusion in
the Opportunity Center projec, The purchase price will be $460,000. Of this price,
we have been recommended to receive $I00,000 from County of San Mateo CDBG
funds, and we have a ~ommitment from th~ Peninsula Community Foundation to
provide $125,000. Thus we WiI| face a liability of $235,000 for sire aCXluisition that
we will have to cover from other sources. While we have received a $1 million grant
from the Packard Foundation, these funds are reserved for the actual oonsmmion
phase due to the unrestricted nature of the grant.
Accordingly we request that up to $I00,000 ~ ~nant relocation expense and
$235,000 in site acquisition be included in our appheation as being eligible for
payment ~om CDBG funds, and.that the amount of our CDBG grant be increased
from $350,000 to $480,000 to assist in meeting these expenses.
Donald A. Bart
President
88
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