HomeMy WebLinkAboutStaff Report 10142
City of Palo Alto (ID # 10142)
City Council Staff Report
Report Type: Informational Report Meeting Date: 4/1/2019
City of Palo Alto Page 1
Summary Title: CDBG: Minor Home Repair Program Progress Report
Title: Progress Report Regarding the Community Development Block Grant
Minor Home Repair Program.
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
This is an informational report and no action is requested.
Background
A well-maintained housing stock is one of the City of Palo Alto’s most valuable resources.
The City recognizes the need to maintain and enhance the viability and character of the
community and allow for lower income households to perform necessary repairs to
maintain their housing.
The City of Palo Alto offered financial assistance to lower income households through its
Minor Repair Program in the form of grants. The assistance provided by t he program is
funded through the City’s Community Development Block Grant (CDBG) Program. Grants
are available to very low-income and low-income homeowners. Grants are used for
emergency repairs and specific projects, such as ADA accessibility. Grant maxim ums are set
at $10,000. Assistance is available to eligible owner -occupants of single- family, duplexes
and condominiums.
Discussion
Habitat for Humanity East Bay/ Silicon Valley serves as Program Administrator for the City’s
Minor Home Repair Program. H abitat has experience and capacity to administer, manage,
and oversee effective use of the City’s grant funds and has successfully done so on similar
projects. The agency was recently awarded the contract to serve as Program Administrator
for the Alameda County Measure A1 Home Preservation Loan Program. In addition,
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Habitat serves as Home Rehabilitation Program Administrator for Contra Costa County, and
the Cities of Walnut Creek, Livermore and Pleasanton. In Fiscal Year 2015, Habitat for
Humanity East Bay/Silicon Valley, Inc was awarded $1 million in CalHome funds for the
agency’s Home Repair program. In Fiscal Year 2016 -2017, Habitat was awarded funds from
City of Hayward, City of Fremont, City of Milpitas, and City of San Jose to provide grant -
and loan-based repair and rehabilitation awards to low -income homeowners in those
cities.
Given that Fiscal Year 2017 -18 (Agreement executed in May of 2017) was the first year of
the Minor Home Repair Program, Habitat focused on conducting marketing and outreach
to engage the community and increase awareness of the new program. To date, Habitat
has contacted the Veteran’s Affairs Hospital Geriatrics Department, Avenidas (the premier
senior service organization in the city), Cubberl ey Community Center, Mitchell Park
Community Center, Palo Alto City Library, Palo Alto Housing Corporation, and Santa Clara
County Department of Aging and Adult Services. Additionally, informational flyers were
made part of the utility bills in the month of January 2019 to increase awarene ss about the
program (see Attachment A). Habitat also conducted two informational sessions explaining
the program to potential participants which were promoted to the hundreds of low -
income homeowners participating in PA Housing’s Below Market Rate (BMR)
homeownership program.
Thus far, only 5 clients are verified and grants have been approved.
After contributing a significant level of marketing and outreach to engage the community
and increase awareness of the new program via the avenues outlined above, the response
has been minimal.
When the program was first introduced, asset caps of $50,000 for a younger family, and
$100,000 for families with titleholders who are over age 62 and/or disabled, were set. Due
to the lack of applications, City Staff, wit h Habitat’s recommendation, removed the asset
cap. Similar programs Habitat administer in areas with comparable income mixes do not
have an asset cap. Removing the cap allows more residents to be eligible and therefore
access the services. The asset cap also tended to penalize retired people who have limited
incomes to undertake repairs.
Despite removing the asset cap, the number of applicants expressing interest relative to
the amount of awareness-building that was undertaken in the community was relatively
slight.
The delay in expending funds for this project is a concern due to the Department of
Housing and Urban Development’s (HUD) timeliness requirement for CDBG funds. The
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annual grants the City receives from HUD remain in a line of credit until there are actual
expenditures for projects. HUD annually checks that as of April 30th no more than one and
a half times the amount of the current year’s grant remains in the line of credit. The first
year this happens, the City is sent a warning notice. I f in the following year there remains a
higher than allowable amount in the line of credit, HUD will take away the City’s grant
amount that exceeds the limit. Currently there are enough expenditures for projects other
than Habitat’s to meet the requirement in 2019. Staff will continue to work with Habitat to
market the program and increase participation.
Attachments:
Attachment A: Habitat for Humanity Final Flyer for Residents (PDF)
EAST BAY 2619 Broadway, Oakland, CA 94612 | SILICON VALLEY 513 Valley Way, Milpitas, CA 95035 | HabitatEBSV.org | 866.450.4432 | @HabitatEBSV
IS YOUR PALO ALTO HOME IN NEED OF REPAIRS?
Habitat for Humanity, a nonprofit, provides home repairs to qualified
local homeowners of single-family homes.
HOME REPAIR PROGRAM
REPAIRS OFFERED
Repairs and safety/accessibility upgrades include
but are not limited to:
+ Temporary
wheelchair ramps/lifts
+ Walk-in shower
installation
+ Electrical + Grab bars
+ Exterior Siding + Cooling & Heating
+ Water Heaters + Flooring
+ Stairs & Porches + Roofs
WHAT DO REPAIRS COST?
CITY GRANTS COVER REPAIRS UP TO
$10,000 SO THERE IS NO COST TO YOU!
Most homeowners use the program to take care of
one large-scale issue such as a roof repair, or com-
bine several smaller projects such as plumbing repair
and grab bar installation. Habitat can help older
adults identify what home modifications they may
need to age in their home safely and comfortably.
Keep your home—and keep it healthy and safe. INQUIRE TODAY.
CALL 510-803-3388
EMAIL HomeRepair@HabitatEBSV.org
TTY/TDD users can call 510-803-3388 to arrange
accommodations or call 800-735-2929 for TTY/TDD services.
REQUIREMENTS? 1. Own your home. 2. Live in your home. 3. Earn no more than the maximum income:
2018 MAXIMUM INCOME: by size of household (do not count caregivers in household size)
County 1 person 2 people 3 people 4 people 5 people 6 people 7 people 8 people
Alameda $62,750 $71,700 $80,650 $89,600 $96,800 $103,950 $111,150 $118,300
Contra Costa $62,750 $71,700 $80,650 $89,600 $96,800 $103,950 $111,150 $118,300
Santa Clara $66,150 $75,600 $85,050 $94,450 $102,050 $109,600 $117,150 $124,700