HomeMy WebLinkAbout2000-10-23 City CouncilCity of Palo Alto
C ty Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:
SUBJECT:
This is an
OCTOBER 23, 2000 CMR:382:00
CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION
REPORT (CAPER) FOR THE COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) PROGRAM FOR FISCAL YEAR 1999/00
informational report and no Council action is required.
BACKGROUND
The preparation and submittal of a Consolidated Annual Performance and Evaluation
Report (CAPER) is required by the U.S. Department of Housing and Urban Development
(HUD) for the receipt of federal Community Development Block Grant (CDBG) funds.
The attached document was submitted to HUD on September 28, 2000 following the
required 15-day public review period.It is being provided to the Council for
informational purposes only.
DISCUSSION
The CAPER provides a summary of the resources available and the programmatic
accomplishments in affordable housing and community development activities during
the 1999/00 fiscal year. The 1999/00 fiscal year is the fitch and final year of the 1995 -
2000 Consolidated Planning period.
The report includes:
An accounting of CDBG program expenditures
A summary of the actions taken to affirmatively further fair housing choice
An accounting of CDBG program beneficiaries by income category and ethnicity
The actions taken to implement the strategies and objectives described in the
City’s Consolidated Plan for the period July 1, 1995 to June 30, 2000
An evaluation of the progress made during the year and over the past five years in
addressing priority housing and community development needs and objectives
CMR:382:00 Page 1 of 2
ATTACHMENTS
Attachment A: 1999/00 CAPER
PREPARED BY: Suzanne Bayley, Senior Planner
DEPARTMENT HEAD REVIEW: ~
G. EDWARD GAWF
Director of Planning and Community Environment
CITY MANAGER APPROVAL.’-~/~, ~
EMILY-rHARRI SON
Assistant City Manager
CDBG Citizens Advisory Committee
Palo Alto Human Relations Commission
Kathy Espinoza-Howard
Palo Alto Housing Corporation
Mid-Peninsula Housing Coalition
League of Women Voters
Community Working Group
Mid-Peninsula Citizens for Fair Housing
Stevenson House
CMR:382:00 Page 2 of 2
CONSOLIDATED ANNUAL
PERFORMANCE
AND EVALUATION REPORT
(CAPER)
July 1, 1999 through June 30, 2000
CITY OF PALO ALTO
CALIFORNIA
Prepared By: Department of Planning and Community Environment
G. Edward Gawf, Director
Public Review and Comment Period: September 11 - 25, 2000
For Submittal to HUD: September 29, 2000
For information, contact:
Suzanne Bayley, CDBG Coordinator (650) 329-2428, or
Catherine Siegel, Housing Coordinator (650) 329-2108
TABLE OF CONTENTS
PART I. INTRODUCTION .........................................................................................................1
A. Description of Report ........~ ........................................................................................................2
B. Description of Public Review Process .......................................................................................2
C. Overview of Identified Needs and Priorities ..............................................................................3
D. Summary of five-year Accomplishments ..................................................................................3
1.Increase in Affordable Housing ...............................................................................3
2.Community Development Projects Completed .......................................................5
PART II. AFFORDABLE HOUSING ..........~. ............................................................................7
A. Resources ..................................................................................................................................8
1. Resources Available within the City of Palo Alto .........................................................8
a. Community Development Block Grant (CDBG) Funds .....................................8
b. Local Housing Funds .........................................................................................8
c. HOME Investment Partnership Act Funds .........................................................9
d. State of Califomia Funds ....................................................................................9
e. Redevelopment Funds ........................................................................................9
f. Public Housing ...................................................................................................9
2. Other Resources Obtained by Nonprofits and Others ..................................................10
a. HUD Section 8 - Moderate Rehabilitation Program ......................................10
b. HUD Shelter Plus Care - Section 8 .................................................................10
c. HUD Tenant Based Section 8 Rental Assistance .............................................10
The Housing Authority of the County of Santa Clara Tenant
Based Section 8 Vouchers & Certificates Issues (Table) ..........................11
B. Accomplishments .....................................................................................................................12
1. Programmatic Accomplishments ..................................................................................12
a. New Construction Rental Housing ....................................................................12
South of Forest Multi-family Housing Site
b. Preservation of Existing Affordable Rental Housing .......................................13
Palo Alto Gardens Apartments
c. Rehabilitation of Existing Rental Housing ......................................................15
Waverley Street House
Arastradero Park Apartments
Stevensen House
d. Below Market Rate Home Ownership and Rental Programs ...........................17
e. Rehabilitation of Owner Occupied Single Family Homes ................................18
2. Persons and Households Assisted with Housing ..........................................................18
Summary of Housing Accomplishments (HUD Table 1A) .........................................19
Co Assessment of Performance .....................................................................................................20
1. Evaluation of Progress in Meeting 1999/00 Goals .......................................................20
2. Evaluation of Progress in Meeting 1995-2000 Goals ...................................................20
Housing Production Assistance 1995-2000 ......................................i ....................20
3. Barriers to Fulfilling Housing Strategies ......................................................................21
a. Federal or State Barriers ......................................................................: .............21
b. Barriers Related to Local Market Conditions ...................................................22
c. Discussion of Most Serious Barriers .................................................................22
4. Actions to Address Obstacles .......................................................................................23
5. Adjustments or Improvements to Affordable Housing Strategies ................................23
a. Public Policies ...................................................................................................24
PART III: COMMUNITY DEVELOPMENT .........................................................................25
A. Resources Available .................................................................................................................26
1. City of Palo Alto Non-Housing Community Development Resources .........................26
a. Federal Funds ....................................................................................................26
b. Local Funds (Human Service Resource Allocation Process) ...........................26
c. Leveraging .........................................................................................................27
B. Accomplishments ....................................................................................................................27
1. Summary of Accomplishments with CDBG Funds .....................................................27
Summary of Comm. Develop. Accomplishments (HUD Table 3-1) ...................28
2. Summary of Accomplishments, Palo Alto General Fund Money ...............................31
3. Summary of Accomplishments with Hamilton Public Benefit Funds ..........................31
4. Actions Taken to Affirmatively Further Fair Housing .................................................32
5. Actions Taken to Address Needs of Homeless Persons ...............................................35
a. Santa Clara Collaborative on Housing and Homelessness ................................35
b. Shelter Plus Care (SPC) ....................................................................................35
c. Midpeninsula Community Working Group ......................................................36
d. Services for Homeless and at-Risk Women and Children ...............................36
e. Clara Mateo Alliance (CMA) Shelter ..............................................................36
f. Employment Opportunities ................................................................................37
g. Homeless Services ............................................................................................37
6. Other Actions ................................................................................................................38
a. Lead Based Paint Hazard Reduction .................................................................38
b. Intergovernmental Cooperation ........................................................................38
7. Changes to Annual Action Plan ....................................................................................39
C. Assessment of Performance .....................................................................................................39
1. Evaluation of Progress in Meeting Annual Community Development Goals .............39
2. Evaluation of Progress in Meeting 1995-2000 Goals ...................................................40
3. Barriers to Fulfilling Strategies .....................................................................................40
4. Adjustments to Community Development Strategies ...................................................41
PART IV: APPENDIX ...............................................................................................................42
A.Copy of Ad and Public Review Notice for CAPER
B.1999/00 Goals and Objectives
C.Grantee Performance Financial Report for Fiscal Year 1999/00
PART I.
INTRODUCTION
I. INTRODUCTION
A. Description of Report
Over the past several years, the U. S. Department of Housing and Urban Development (HUD)
has created a grants management and reporting system to implement the concept of consolidated
planning. The consolidated planning system is intended to relate and link identified needs within
a community to the federal and local resources available to meet those needs, and to strengthen
partnerships among all levels of government and the private sector. The annual reporting portion
of this system is known as the Consolidated Annual Performance and Evaluation Report
(CAPER).
Preparation and submittal of the CAPER is a condition for the City (and nonprofit organizations
within the City) to apply for federal community development and housing assistance funds such
as Community Development Block Grant (CDBG) and HOME funds. The CAPER replaces the
previously required CDBG Grantee Performance Report (GPR) and the Annual Performance
Report for the Comprehensive Housing Affordability Strategy (CHAS).
The CAPER provides a summary of the resources available and the programmatic
accomplishments in affordable housing and community development during the 1999/00 fiscal
year. It evaluates the actions taken during the year to implement the strategies and objectives
described in Palo Alto’s Consolidated Plan for the period July 1, 1995 to June 30, 2000, and the
progress made during the past year in addressing identified priority needs and objectives. Since
the 1999/00 fiscal year is the fifth and final year of the five-year period covered by the 1995-
2000 Consolidated Plan, .the CAPER also includes a summary of the progress made in meeting
objectives over the’ five-year period.
B. Description of Public Review Process
A notice regarding the draft CAPER was mailed to interested organizations and persons. Copies
of the CAPER were made available at City Hall. A notice informing the public of the
availability of the CAPER was published in the Palo Alto Weekly on Friday, September 8, 2000.
A copy of that notice is appended to this report.
The draft CAPER was available for public review and comment for a 15-day period, beginning
on Monday, September 11, 2000 and concluding at 5:00 p.m. on Monday, September 25, 2000.
No public comments were received on the draft CAPER.
C. Overview of Identified Needs and Funding Priorities
Palo Alto’s housing and community development needs were identified in the Consolidated Plan
for the period July 1, 1995 to June 30, 2000. Not surprising, the provision of affordable rental
housing units was identified as the most critical need in Palo Alto. This includes the provision of
housing affordable to persons who are homeless, or at-risk of homelessness, and persons with
special needs such as the frail elderly, developmentally disabled, physically disabled, or persons
with severe mental illnesses. While all types of housing are needed in the City, the Consolidated
Plan objectives focus on the creation and preservation of rental housing. Permanent housing for
families with children, the elderly, singles and very small households is the highest priority,
followed by transitional housing with supportive services. While the creation of additional new
units of affordable housing is the most desirable option, the preservation of existing subsidized
units which are at-risk of converting to market rate units is also a high priority need.
Non-housing community development needs in Palo Alto include public services and public
facilities and improvements. Public service needs include supportive services and employment
opportunities for lower income, at-risk, homeless, or disabled populations. There is also a need
to expand, modernize, rehabilitate, and make accessibility improvements to existing public
facilities serving the same populations. See Appendix B for a listing of the 1999/00 Goals and
Objectives.
D. Summary of Five-Year Accomplishments
The 1999 fiscal year, covering the period from July 1, 1999 through June 30, 2000, completes
year five of the five-year Consolidated Planning period. The City exceeded the five-year housing
goals identified in the Consolidated Plan and made great progress in addressing its community
development goals. A summary of the accomplishments in housing and community
development follows:
1. Increase in Affordable Housing
From 1995 - 2000, the number of units of affordable housing was increased by 373 (360
subsidized rental units, 5 BMR rental units, and 8 BMR homeownership units). The increase of
373 units exceeds the Consolidated Plan goal of a 125-unit increase.
Subsidized Rental Housing. The City increased the number of subsidized rental housing units by
360. These rental complexes, owned and operated by non-profit developers, are listed below:
Emerson House - 1996. New. 4 Units. The Palo Alto Housing Corporation developed
the one-bedroom fourplex in conjunction with the BMR contribution for the
redevelopment of the old Times Tribune site.
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Ventura Apartments - 1997. Acquisition. 12 Units. The Palo Alto Housing
Corporation acquired five units to add to the seven units provided as an off-site BMR
contribution from the Hamilton Avenue Properties senior housing development.
Alma Place - 1998. New. 107 Units. The Palo Alto Housing Corporation developed the
new Single Room Occupancy (SR0) residential hotel in the downtown area.
Page Mill Court - 1998. New. 24 units. Developed by Mid-Peninsula Housing
Coalition, the project provides affordable rental housing for 28 residents with
developmental disabilities whose incomes are less than 30 percent of the County median.
Sheridan Apartments - 1998. Acquisition. 57 units. The Palo Alto Housing
Corporation acquired the property in order to retain it as subsidized housing for seniors
and persons with disabilities. The project was at risk of converting to market rate units.
Palo Alto Gardens Apartments - 1999. Acquisition. 156 units. Midpeninsula Housing
Coalition acquired the existing subsidized housing for seniors and families in order to
retain it as subsidized housing. The property was at risk of converting to market rate
units.
Below Market Rate Program
In addition to the units described above, five units of Below Market Rate (BMR) rental housing
were built at Montage Apartments in 1998. These were the first new units of BMR rental
housing in Palo Alto in more than ten years. The project owner will manage and rent the
subsidized units to income-qualified renters at below-market rents.
The number of Below Market Rate (BMR) Homeownership units was increased by eight during
this five-year period. The Palo Alto Housing Corporation (PAHC) administers the sales and re-
sales of the City’s BMR units. These units were made available to income-qualified buyers from
the PAHC waiting list who either lived or worked in Palo Alto. The BMR units were achieved at
the following developments:
Everett 1997 1 unit
Silverwood 1999 3 units
Classics 2000 4 units
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2.Community Development Projects Completed
Community Development rehabilitation activities provided needed improvements and upgrades
to community facilities and existing subsidized housing projects. The provision of CDBG funds
for capital improvements allows the sponsoring non-profit agencies to target their existing
resources to supportive services for their at-risk clientele, such as those who are homeless, low-
income, elderly, or disabled. Fifteen projects (totaling $975,322) were completed during the
five-year period.
New County Children’s Shelter - $ 72, 500. Off-site improvements relating to the construction
of a new 76,000 square-foot children’s shelter in San Jose. The Residential facility will house
3,900 abused and/or neglected children from Santa Clara County annually.
Casa Say - $25,000. Phase I Renovations to Youth Shelter in Mountain View. Addition of a
second story to a youth shelter. Agency provides short-term shelter for run-away and at-risk
adolescents.
Peninsula Children’s Center - $55, 000. New playground equipment and play area renovations
for school which serves children with emotional and behavioral disabilities.
Stevenson House - $30,000. New Fire Alarm system for 120-unit senior residential facility for
low-income seniors.
Lytton Gardens - $56,618. Safety and accessibility improvements. Installation of elevator
smoke doors and power assist hardware to interior doorways in common area of senior
residential facility. Provides 318 units of subsidized senior housing.
Stevenson House - $21,000. Accessibility improvements. Rehabilitation of restrooms and
common area in senior residential facility for ADA compliance.
" Casa Say - $5, 000. Phase II Renovations to Youth Shelter in Mountain View.
Emergency Housing Consortium - $50,000. Construction of a 250-bed regional homeless
"Reception Center" in San Jose. Provides shelter, transitional housing and services for homeless
individuals and families in Santa Clara County.
City of Palo Alto, Rinconada Park - $45,000. Accessibility improvements to City Park to make
play structures and play area accessible to persons with disabilities.
City of Palo Alto, Ventura Community Center - $183,000. Roof repairs, electrical upgrades and
outdoor lighting, restroom accessibility, parking lot resurfacing and miscellaneous renovations
to a community center that serves a lower-income area.
5
Community Association for Rehabilitation/Swim Center - $35,000. Addition of an accessible
restroom and changing area and a new fire alarm system. Facility provides warm water
therapeutic swim opportunities for seniors and persons with disabilities.
Palo Alto Housing Corp, Arastradero Park Apartments - $286,380. Water supply system
renovations for 66 units of affordable family housing.
Veterans Workshop, Margarita St. House - $51,000. Acquisition of a shared transitional home
for low-income, disabled veterans.
Alliance for Community Care, Feasibility Study - $11,824. Feasibility study to determine
rehabilitation needs and future use of residential facility at 650 Waverley Street in Palo Alto.
Agency provides housing and supportive services for persons with mental disabilities.
Stevenson House - $48,000. New roof for Building A of a senior residential facility in Palo Alto.
3.Public Service Projects Completed
During the 1995-2000 period, the City expended $1,496,300 on public services and administration
and planning activities. Local non-profit organizations were provided with grant funds to provide
various services of benefit to low-income persons. A sampling of the activities and sub-populations
who benefited follows:
Seniors - Ombudsman services for frail, elderly persons in long-term care or nursing facilities;
subsidized minor home repair services
Basic Services - food, case-management, shelter, and counseling services for persons who are
low-income or homeless.
Employment Opportunities - Entrepreneur counseling and education program for low-income
persons who are interested in starting their own business.
Housing Services - Housing counseling and referral, information and referral services and
production of a directory of available subsidized housing
¢" Para-Transit - Transit subsidies for the frail elderly and persons with disabilities
Fair Housing - Fair housing counseling and complaint investigation, education and advocacy
services to reduce discrimination.
PART II.
AFFORDABLE HOUSING
7
AFFORDABLE HOUSING
A. Resources
1. Resources Available within the City of Palo Alto
a. Community Development Block Grant Funds
In fiscal year 1999/00, the City of Palo Alto allocated a total of $924,000 in federal Community
Development Block Grant (CDBG) funds to local projects. This amount represents $738,000 in
CDBG funds from HUD, $91,000 in reallocated funds, $45,000 in anticipated program income,
and $50,000 in excess program income from previous years. The main source of program
income is from loan payoffs from the City[]s Housing Improvement Program (HIP) single
family residential rehabilitation program. The other source of program income is from the Palo
Alto Housing Corporation, when rental income exceeds expenses on the proportionate share of
properties acquired or rehabilitated with CDBG funds.
Of the total 1999/00 CDBG allocation, 78 percent was directed toward affordable housing
activities - the preservation and rehabilitation of existing affordable housing units:
A total of $1,000,000 (including $658,550 in 1999/00 CDBG funds) was allocated to the non-
profit housing developer Mid-Peninsula Housing Coalition and expended for the purchase of
the Palo Alto Garden (PAG) Apartments. The 156-unit PAG Apartments were being
converted to market rate traits after the former owner prepaid the HUD mortgage and opted-out
of the project-based Section 8 contract.
$60,000 was allocated to Alliance for Community Care for the rehabilitation of Waverley
Street House at 650 Waverley in Palo Alto.
b. Local Housing Funds
The City of Palo Alto maintains a local housing trust fund that has two sub-funds: the
"Commercial Housing In-Lieu" fund and the "Residential Housing In-Lieu" fund. These are
the only local sources of funding and subsidies for affordable housing within the City. They are
used to provide matching funds, to pay for expenses which exceed HUD cost limits, to fund the
cost of features and amenities ineligible under federal housing programs, for pre-development
expenses, feasibility studies, site acquisition and similar purposes.
Commercial Housing In-Lieu Fund: Palo Alto requires commercial and industrial
development projects to pay a housing mitigation fee under Chapter 16.47 of the
Municipal Code. The fees are deposited in the Commercial Housing In-Lieu Fund, and
8
the accumulated fees and interest earned on the fund are made available only for the
creation of new low and moderate income housing units under the "Housing Reserve
Guidelines" adopted by the City Council. The Comm~eial Fund had a June 30, 2000
an available balance of $672,788 after collecting $776,948 in fees and interest during
the fiscal year.
Residential Housing In-Lieu Fund: Pursuant to Program H-20 (the Below Market Rate
Program) of the City’s adopted Housing Element, Palo Alto collects housing in-lieu
fees from residential developments when it is infeasible to provide below market rate
units on-site. These fees, along with interest earnings of the Fund and other
miscellaneous revenues related to housing, are placed in a special fund - the Residential
Housing In-Lieu Fund. This fund, per adopted City policy, is used mainly to provide
funding for acquisition or rehabilitation of low and moderate income housing, but may
also be used for assistance to new housing construction projects. At the end of the
1999/00 fiscal year, the Residential Fund had an available balance of $497,442, and
during the year collected $541,704 in fees and other revenues.
c. Home Investment Partnership Act (HOME) Funds
The City of Palo Alto is not an entitlement jurisdiction for the federal HOME program. Because
the City is an entitlement jurisdiction for the CDBG program, the City does not participate in the
urban county HOME program through the County of Santa Clara. The City is only eligible to
apply for HOME funds through the State of California HOME program. No applications were
submitted in fiscal year 1999/00.
d. State of Califomia Funds
There were no State housing funds available to the City of Palo Alto during the fiscal year.
e. Redevelopment Funds
The City does not have a redevelopment agency. There are no funds available.
f. Public Housing
There are no units of public housing in Palo Alto.
9
2.Other Resources Obtained by Nonprofits and Others
a. HUD Section 8 - Moderate Reahabilitation Program
Palo Alto Housing Corporation (PAHC) owns and manages a number of apartment buildings
where a portion of the units have rents subsidized under the old Section 8 Moderate Rehabilitation
program. Project-based Section 8 contracts for this rental assistance program were originally
written for terms of 5 to 15 years mad are beginning to expire. Currently, HUD only provides
extensions on a yearly basis. PAHC currently has 37 units under the Section 8 - Moderate
Rehabilitation Program (Oak Manor, 23; Curtner, 9; Emerson, 5).
In September 1998, PAHC received an award of project-based Section 8 assistance for 6 units (one
unit each in Ventura, Emerson North and Ferne Apartments and 3-units at Waldo Apartments).
The awards were for 5-years of rental assistance and required that certain rehabilitation be done.
The rehabilitation is expected to be completed in September, 2000.
b. HUD Shelter Plus Care - Section 8
The Housing Authority of the County of Santa Clara has provided twelve units of project based
Section 8 rental assistance for homeless persons participating in the County’s Shelter Plus Care
(SPC) program. Six studio units are available at Alma Place, and six single room occupancy units
are available at the Barker Hotel. As of 6/30/00, twelve units were leased to Shelter Plus Care
participants. All of the program participants are very low income. Please see a more complete
discussion of the Shelter Plus Care Program in the Community Development Section of this
report.
c. HUD Tenant Based Section 8 Rental Assistance
The Housing Authority of the County of Santa Clara administers the Section 8 Rental Assistance
Program for the City of Palo Alto. The Housing Authority opened their waiting list for Section 8
certificates and vouchers from January 21, 1999 through January 29, 1999. During that nine-day
period, 28,322 registrations were processed from throughout Santa Clara County. 304 households
with a Palo Alto address are currently on the Section 8 waiting list. Of the 304 households from
Palo Alto on the waiting list, 54 households identified themselves as homeless.
The Santa Clara County Housing Authority reports that 253 households in Palo Alto received
tenant-based Section 8 rental assistance in 1999/00.
10
The Housing Authority of the County of Santa Clara
Tenant Based Section 8 Vouchers and Certificates Issued in Palo Alto FY 1999
0
bedrooms
11
1
bedroom
165
Certificate/Voucher Size
2 3 4
bedrooms bedrooms bedrooms
55 20 2
5
bedrooms
0
TOTAL
253
Caucasian
169
Black
28
Distribution by Racial Group
Native Asian/Pacific
American Islander
0 56
TOTAL
253
Hispanic
33
Distribution by Ethnicity
Non-Hispanic
220
TOTAL
253
Low
Distribution by Income
Very Low
247
TOTAL
251
Elderly
153
Distribution by Status
Disabled (Non-Elderly)Non-Elderly/Non-Disabled
37 63
Distribution by Head of Household
Male Female TOTAL
135 90 225
TOTAL
253
B. Accomplishments
1. Programmatic Accomplishments and Leveraging of Other Resources
The City of Palo Alto, by itself and in conjunction with nonprofit housing developers, undertook the
following activities to meet its priorities for affordable housing development and assistance as stated
in the FY 1999/00 Annual Action Plan of the Consolidated Plan. Although all housing activities are
multi:year in nature, one major new housing project was initiated during the year and progress
continued on two smaller projects.
a. New Construction Rental Housing
South of Forest Multi-family Housing Site
Location: Between Ramona, Bryant and Channing
On July 18, 2000, the City acquired a three year option to purchase a 1.23 acre site in a
residential neighborhood south of downtown Palo Alto. The site is a portion of about 10
acres of land vacated by the local Palo Alto Medical Foundation (PAMF) after its move to a
new facility constructed on E1 Camino Real. In late March 2000, the City Council adopted a
specific plan for the South of Forest area (SOFA Plan) including the 10 acres owned by
PAMF. The SOFA Plan includes land use designations, zoning and detailed development
standards for the 10 acres scheduled for redevelopment including the 1.23 acres affordable
housing site. The affordable housing site is designated in the plan for 40-45 units of multi-
family housing with underground parking. About half of the 1.23 acres was donated to the
City by PAMF in-lieu of providing below market priced housing within the condominiums
and single family homes being developed on the rest of its lands. The only planning
approvals needed for the affordable housing project are review of architectural design by the
City’s Architectural Review Board and review by the Historic Resources Board of the
rehabilitation plans for the vacant 4-unit residential structure that is on the housing site.
The City is currently preparing a Request for Proposals to solicit interest from affordable
housing developers. It is expected that the City Council will select a developer within the
next two-three months. The City intends to assign its option on the site to the selected
developer once the design review process is completed and the financing to construct the
new housing is in place. Because of the long-term of the purchase option (3 years), the City
paid the full purchase price ($3 million) for the portion of the 1.23 acres being sold. As
explained above, about half of the site was a developer donation in satisfaction of the City’s
Below Market Rate housing program. The $3 million used for the option price came from
the Commercial Housing In-Lieu Fund.
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b. Preservation of Existing Affordable Rental Housing
¢" Palo Alto Gardens Apartments
Location: 648 San Antonio Road, Palo Alto
This is an ~ldefly and family apartment development of 156 units constructed in 1973 with
HUD assistance under the Section 221 (d)(3) program with all of the units originally assisted
under a Section 8 contract which expired on June 30, 1998. There are 117 one-bedroom
units, 20 two-bedroom units, and 8 three-bedroom units. This project was in the process of
being converted to market-rate rentals by the prior owner when it was acquired in April 1999
with City assistance.
The following narrative was included in the City’s 1998/99 CAPER. It is repeated again because
the project was funded with 1999/00 CDBG funds under a pre-award agreement with HUD and the
expenditure of CDBG funds is reported to HUD in the CAPER for FY 1999/00.
In October 1997, the for-profit owners of Palo Alto Gardens filed a formal prepayment notice with
HUD, the City and the residents. In June 1998, HUD converted the vouchers of eligible tenants to
one-year "enhanced" Section 8 vouchers. This action provided the owners with market rents but
with no increase in the tenant-paid portion of the rent. After the one-year term of the "enhanced"
Section 8 vouchers, the owners would have been under no obligation to continue to accept the
Section 8 households as tenants. If the owners had continued to accept the Section 8 tenants, then
the tenants would have had to pay the difference between the fair market rent and the real market
rent set by the owners. For many of the elderly households, whose incomes are typically below
$10,000 per year, this would have been a great hardship.
In the summer of 1998, Mid-Peninsula Housing Coalition (MPHC) began discussions with the
project’s owners about a possible sale. By November, MPHC had finalized the purchase contract
and then submitted a formal request to the City for $1 million in financial assistance for the
acquisition. MPHC secured the principal financing for the project in February 1999 with an award
of a tax-exempt bond allocation of $11.4 million and an award of the federal housing tax credits.
In October 1998, the City submitted an application to the State for federal HOME funds in the
amount of $825,000 to assist with the costs of funding the Sheridan and Palo Alto Gardens projects.
However, that application was not funded. Under the terms of the purchase agreement and the
requirements of the tax-exempt bond financing, MPHC needed to close escrow on the purchase
before the end of May 1999. City funds in the amount of $1 million were needed to complete the
purchase, but the City, due to its expenditures for the Sheridan project, did not have sufficient
CDBG or Residential Housing In-Lieu funds available. Therefore, on February 17, 1999, the City
submitted a request to HUD for approval of pre-award costs and an amendment to the FY 1998/99
Action Plan for Palo Alto Gardens.
HUD approved the City’s request on March 5, 1999. This allowed the City to use local funds for a
portion of its $1 million loan and expend the monies in order for the deal to’ close escrow and meet
the requirements of the purchase contract and other funding. On March 15, 1999, the Council
13
approved a budget amendment to fund the Palo Alto Gardens project. An interim funding plan was
adopted using $725,000 transferred from the Commercial Housing In-Lieu Fund pending the
approval in May of CDBG funds from the 1999-00 program year CDBG budget. On April 12,
1999, Council approved the formal loan documents for the transaction, and on April 29, 1999,
escrow was closed by MPHC on the acq,uisition. On May 10, 1999, Council formally approved
1999/00 CDBG funds of $658,550 for acquisition costs of Palo Alto Gardens. The rehabilitation of
the property was completed by MPHC during 1999/00. The interim and permanent funding sources
and amounts are shown in the table below:
Palo Alto Gardens Interim & Permanent Funding of City Loan
Source
CDBG: 1990-2000 Funds
Residential Fund
Commercial Fund
Total City Funding
Interim Funding
-0-
$275,000
$725,000
$1,000,000
Permanent Funding
$658,550
$341,450
-0-
$1,000,000
14
Sources of Funds for the Palo Alto Gardens Project
Tax-exempt bond fund loan (40 years at 5.36%)
Transamerica Corp. (federal housing tax credits)
MPHC: short-term developer fee loan
MPHC: developer equity
City Loan on Land (40 years at 3% with repaymenl
from surplus cash flow)
City Loan on Improvements (40 years at 3% as a
long-term, deferred payment loan)
Total Sources of Funding
$11,435,000
3,778,367
500,000
7,819
900,000
100,000
$16,721,186
c. Rehabilitation of Existing Rental Housing
Waverley Street House Rehabilitation
Location: 650 Waverley Street, Palo Alto
In May 1999, the Alliance for Community Care (the largest nonprofit, countywide
provider of services and housing for persons with mental illness) completed a
comprehensive CDBG-funded feasibility study of the rehabilitation needs of its
property at 650 Waverley Street in downtown Palo Alto. 650 Waverley is a large,
3,198 square foot, single family residence with a separate apartment over the garage on
the rear portion of the lot. It has been vacant for several years due to the condition of
the structures. Alliance intends to rehabilitate the buildings into a 13-person
transitional housing facility for the homeless mentally ill with on-site support services.
The current budget for the rehabilitation and related costs is $711,000.
During the last year and a half, Alliance has worked to refine the project’s construction
budget and obtain other funding commitments. The City awarded $60,000 in 1999/00
CDBG funds for the project in May 1999. Alliance received an award of $184,000 in
federal McKinney funds in January 2000. In June 2000, an award of $100,000 in grant
funds and a $196,580 long term loan from the Federal Home Loan Bank’s Affordable
Housing Program (AHP) was announced. Other funding commitments recently
obtained include a $100,000 loan from the Santa Clara County Housing Bond Trust
fund. Several applications for grant funds from local foundations are pending. The
Santa Clara County Department of Mental Health has committed to providing
operating subsidies for the facility. The City Attorney’s Office has determined that the
project is an allowable use under the property’s existing zoning. The City’s CDBG
funds will be used for architecture, engineering, testing for hazardous materials and
permit fees. Now that most c;fthe funding for the construction budget has been
secured, the City will formally obligate its funds by executing a loan agreement and
contract with Alliance by the end of calendar year 2000.
Summary of Funding for Rehabilitation of 650 Waverley House
Committed or Approved:
Bay View Bank:
Mortgage: 30-Year, Fixed Rate 7.59%
Affordable Housing Program (AHP) Grant
Bank Grant:
HUD McKinney Transitional Housing Capital Grant
City of Palo Alto:
CDBG Program Loan
Feasibility Study
Santa Clara County Housing Bond Trust Fund Loan
$196,580
$100,000
$5,000
$184,000
$60,000
$11,824
$100,000
Sub-total:$657,404
Arastradero Park Apartments - Water Supply System
Location: 574 Arastradero Road
The Palo Alto Housing Corporation began work on this rehabilitation project in May of
1999. Arastradero Park is a 66-unit complex that was acquired by PAHC in 1995. HUD
and the City assisted PAHC with the purchase in order to preserve its use as affordable
housing for lower income families and to preserve the project-based Section 8 assistance.
The purpose of this CDBG rehabilitation project was to replace the project’s badly
deteriorated water supply system. Phase I included the complete replacement of the
domestic cold water system and hot water piping, including the main fire line and
irrigation lines. The hot and cold interior domestic water lines were replaced in Building
B. Three new domestic water heaters with enclosures were installed on the property.
All angle stop valves and supply lines were replaced along with shower valves. The
project was completed in March 2000.
The total cost of this portion of the project was $337,720. $286,380 in CDBG funds
were utilized, and the remaining $51,340 came from project operating funds. Phase II of
the project, which includes replacement of individual fire lines, is expected to be
completed 2001.
16
Palo Alto Senior Housing Project, Inc. - Stevenson House
Location: 455 East Charleston
Stevenson House is a senior housing project with 120 low-income units. A $48,000
CDBG grant was approved in fiscal year 1997/98 to re-roof Building "A". Building A
consists of 59 units of housing as well as common areas for the entire facility, including
the administrative offices and dining and recreation rooms. The project was initiated in
December 1999 and completed by March 2000.
The entire cost of the ~oofing project was $55,822. $48,000 was paid from CDBG funds,
and the balance from Stevenson House replacement reserves.
d. Below Market Rate (BMR) Ownership & Rental Programs
BMR Home Ownership Units. The Below Market Rate Program is a City program
in the Comprehensive Plan (Program H-20) which requires developers of market rate
housing to provide a certain number of units within each residential project at
affordable prices to moderate income buyers (usually 10% of the total units). The
BMR units are sold to households on a waiting list with 59-year deed restrictions on
use, occupancy and the resale price. As of June 30, 2000, there were 151 units in the
ownership program inventory. Seven (7) newly constructed BMR ownership units
were completed and sold during the 1999/00 fiscal year. Three (3) BMR re-sale
units were purchased during the same period. Four (4) BMR units were purchased
by very low-income homebuyers whose incomes were below 50% of the HUD
median income; one (1) household had an income between 50 and 65 percent of the
median income and five (5) households were moderate income (between 65 % and
100% of the median income.
BMR Rental Units. This is the rental housing component of the City’s BMR
inclusionary housing program. There are 38 BMR rental units in four separate multi-
family rental developments in Palo Alto. These units are rented at below market
rents to eligible low and moderate-income households. The specific in’come
eligibility varies from project to project. No newly constructed rental BMR units
were added to the program inventory during FY 1999-00. However, construction
begun on the 628-unit Stanford West Apartments which will include 63 below
market rental units initially and 94 below market units after 15 years. Employees of
Stanford University, and persons working for businesses located on Stanford owned
lands, have priority for occupancy of the Stanford West project because the housing
has been developed and is owed by Stanford. It is not intended as student housing,
however.
17
e. Rehabilitation of Existing, Owner-Occupied Single Family Homes
The City may provide CDBG funds to very low-iricome owners for home repairs in cases where
there is an urgent need for City financial assistance due to serious health or safety problems. During
the year, there were no applications for this program.
2. Persons and Households Assisted with Housing
The attached Table 1A shows 147 households assisted with rental housing during the period
covered by this report. The table counts only persons or households newly occupying housing,
receiving rental subsidies for the first time, or living in newly rehabilitated, preserved or constructed
housing units regardless of when the financing or subsidies were awarded. Units receiving multiple
subsidies are only counted once. The assisted households reported in Table 1A were all at Palo Alto
Gardens (147 units).
Not included are units that are vacant or in the process of renting or units under construction or
which are in the pre-development stages. Also not included are units assisted with Shelter Plus
Care, counseling services, or homeless persons or households who receive overnight shelter. These
activities are discussed in Part III of this report.
18
Summary of Housing Accomplishments
(HUD Table 1A)
Name of Grantee: City of Palo Alto State: CA Program Year: 1999/00
Priority Need Category Actual Units
Renters
0 - 30% of Median Family Income (MFI) *138
31 - 50% of MFI 6
51 - 80% of MFI 3
Total 147
Owners
0 - 30% of MFI
31 - 50% of MFI
51 - 80% of MFI
Total
Homeless **
Individuals
Families
Total
Non-Homeless Special Needs
Total 147
Total Housing 147
Total 215 Housing 0
TOTAL HOUSING
Hispanic
Non-Hispanic
White
Black
Native American
AsiardPacific
Other
Total Racial/Ethnic
12
73
20
2
40
147
*As annually adjusted by HUD
**Homeless families and individuals assisted with transitional and permanent housing
19
C. Assessment of Performance
1.Evaluation of Progress in Meeting Annual (1999/00) Affordable Housing Goal:
Average of 25 Households to be Assisted Per Year
The 1995-2000 Consolidated Plan affordable housing goal is to assist an average of 25 units per
year over the five-year period. For 1999/00, the 147 lower income units at Palo Alto Gardens are
reported on the required HUD forms as being assisted during this fiscal year because the CDBG
funding for the project was expended during FY 1999/00. The CDBG funds were used to reimburse
the City for local funds that the City advanced to the project sponsor during 1998/99 under the pre-
award agreement approved by HUD.
Emerson North Apartments: This project will provide up to $69,300 in CDBG funds for
rehabilitation of a 6-unit apartment building that was acquired by PAHC in 1994 with $375,000 in
financial assistance from the City’s Residential Housing Fund. All of the units are occupied by
low-income households. This project was budgeted for the 1996-97 fiscal year, but staff time has
not been available, both at the City and at PAHC, to devote to the project because of other large new
construction, acquisition and rehabilitation projects underway between 1996 and 1999 (Ventura
Apartments, Alma Place, Sheridan and Palo Alto Gardens). In May 2000, PAHC ree.valuated the
proposed rehabilitation program and prepared updated cost estimates, which totaled $66,000. An
agreement between the City and PAHC will be prepared and then must be approved by the City
Council. The construction work will be bid and the rehabilitation should be started by the end of
2000 and completed by June 2001.
2. Evaluation of Progress in Meeting Affordable Housing Goals for the Period 1995-2000
As discussed above under the evaluation of progress towards the annual goal, the City has exceeded
its goal of 125 very-low and low-income rental units over the five-year period. The 237 units
assisted last year, along with the 124 units assisted in previous years, brings the total assisted to 360
units. This is an average of 72 units per year over the 5-year period of the Consolidated Plan.
Housing Production Assistance 1995-1999
Acquisition/
New Construction Rehabilitation Total
FY 95/96 4 0 4
FY 96/97 0 0 0
FY 97/98 107 12 119
FY 98/99 24 213 237
FY 99/00 0 0 0
Total 135 225 360
2O
The City’s greatest need is affordable housing, and the majority of CDBG and local housing funds
have been targeted and expended to preserve or increase the affordable rental housing stock. All of
the CDBG funds have been used to carry out activities that benefit low and moderate-income
persons.
3. Barriers to Fulfilling Housing Strategies
’i
There are many barriers that Palo Alto faces in meeting its affordable housing strategies, most of
which are beyond the control of the City. Palo Alto has one of the most expensive housing markets
in the country, due in large part to the lack of land suitable for new housing. The real estate market
in Palo Alto continued to escalate throughout the 1999/00 fiscal year, putting both for-sale and
rental properties out of the reach of many persons. Some barriers are the result of decisions and
priorities set by federal or State governments that must decide how to distribute very limited
funding. The policies and priorities set by these agencies often do not favor high cost areas. Most
federal housing resources are not readily available to the City of Palo Alto. Problems include lack
of congressional appropriations for certain programs, limitations in federal regulations that make
some programs very difficult to use in Palo A!to, lack of appropriate and available housing sites,
and a lack of interest or capabilitY on the part of for-profit and nonprofit developers in pursuing
some federal programs. The principal barriers to fulfilling the City’s affordable housing goals and
objectives are discussed below.
a. Barriers Related to Federal or State Funding Levels and Priorities:
Changes by the State’s Tax Credit Allocation Committee in the method of determining awards for
the competitive federal and State housing tax credits has made it more difficult to obtain tax credit
awards for low-income rental housing. There are also very restrictive caps that limit the total
amount of tax credit awards within certain counties including Santa Clara County. There is far
greater demand in Santa Clara County for the competitive tax credits than the amount allowed under
the allocation cap.
There are problems of utilizing federal housing programs, such as Section 202 and 811, in areas
with high construction and land costs. HUD places limitations on the amount of HUD subsidies,
which then result in the need for large local funding contributions to make projects financially
feasible. The amount of federal CDBG funds that the City receives on an entitlement basis from
HUD has not even kept pace with inflation over the last 15 years. The barrier of not being qualified
for HOME funds on an entitlement basis has affected the City’s capability to encourage and fund
affordable housing. Other barriers are:
The lack of State or federal funding for the preservation of older, HUD-subsidized and
Section 8 assisted rental housing by acquisition by nonprofit housing organizations
Reduction in the term of project-based Section 8 contract renewals from the 20-year
contracts of the 1970’s to the one-year renewals presently authorized by Congress.
21
Limited funding in HUD’s budget for the Section 8 tenant-based assistance program
(Section 8 certificates and vouchers administered by local housing authorities) since FY
1994.
b. Barriers Related to Local Hou, sing Market Conditions:
Limited vacant land suitable for housing construction and strong competition from
developers of market-rate housing and commercial projects for any available site.
Extremely high prices for sites suitable for new housing and for existing residential
properties suitable for acquisition and rehabilitation.
Limited local funding sources for affordable housing.
An extremely low vacancy rate and high housing demand means that even the most
modest rental units are occupied by households with incomes above the HUD low-
income limit. This means that acquisition and/or rehabilitation programs must
relocate existing tenants in order to utilize federal funds.
Low vacancy rates and high rental rates have made it difficult for persons to find
housing in Palo Alto using tenant-based Section 8 Certificates and Vouchers.
Section 8 Fair Market Rents (FMRs) are so far below the actual market rents that
households receiving Section 8 assistance have difficulty locating housing in the
area.
c. Discussion of Most Serious Barriers:
The most serious barrier is the lack of dependable access to HOME funds. The fact that the City
does not qualify as an entitlement jurisdiction for HOME funds is a significant barrier to meeting
the City’s housing objectives. HOME is the principal federal housing subsidy program directly
available to local governments. The City can only obtain funding on a competitive basis from the
State of California’s statewide allocation. The State holds only one competition round each year.
Palo Alto is at a disadvantage in the State’s process because of the percentage of ranking points
assigned to rural applicants, and those from jurisdictions with high poverty rates. The maximum
award from the State is usually $1 million per applicant. While the City and PAHC successfully
obtained and implemented a major acquisition and rehabilitation of the 26-unit Barker Hotel SRO
with a FY 1992 HOME grant from the State, the City has not been able to access the State’s HOME
funds since that time. The City applied for a FY 1998 HOME grant of $825,000 for the Sheridan
and Palo Alto Gardens projects, but the application was denied.
There are many obstacles that have prevented the City from obtaining HOME funds. The primary
obstacles are listed below:
Extremely high demand and competition for State HOME funds requires that
applications be near perfect to receive funding.
22
The State’s rating criteria favors rural and Community Housing Development
Organizations (CHDO) applicants, and jurisdictions with high rates of poverty. Since
Palo Alto does not fit these priorities, the City is at a great disadvantage in the
competition.
There are no qualified CHDOs operating in the Palo Alto area, and the local nonprofit
housing developers are not interested in creating CHD0s and pursuing HOME funds
directly.
The State’s once per year application process is too inflexible for use with the kind of
major rental housing projects that are usually done in Palo Alto. It is unlikely that
project timing and readiness will coincide with the State’s application schedule in a
manner that will earn maximum points.
Another serious barrier is the expiration of project-based Section 8 contracts and insufficient
funding from the Federal Government for contract renewals. Some of Palo Alto’s largest subsidized
housing developments have project-based Section 8 rental assistance contracts which have expired
or will expire in the next few years. Most of these projects are owned and operated by nonprofit
housing organizations that desire to continue the low-income use under their HUD insured financing
and regulatory agreements.
Renewal of the Section 8 rental assistance contracts for all these projects is critical in order to
preserve affordable rents for the extremely low-income tenants who occupy these units. ManY of
these projects serve elderly and disabled persons who would find it very difficult to move, and who
would be unlikely to be able to secure comparable housing even if they were provided with a
Section 8 voucher. While legislation passed by Congress in 1997 expresses a policy commitment to
continued funding of elderly units, it is not at all clear if funding will actually continue to be
provided in future years.
4.Actions to Address Obstacles to Maintain Affordable Housing, or Eliminate Barriers
to Affordable Housing
Palo Alto has been a participant in the efforts of the Santa Clara County Housing and Homeless
Committee, the Silicon Valley Manufacturing Group and the County of Santa Clara in an initiative
to establish a countywide Housing Trust Fund. Staff participated in the feasibility studies on the
fund, and the City is represented on the committee that will govern the Fund. A foundation grant
has provided funding for staffing for the fundraising campaign, and for the development of lending
criteria.
5. Adjustments or Improvements to Affordable Housing Strategies
No adjustments to the affordable housing strategies have been identified at this time.
23
a. Public Policies
On July 20, 1998, the City Council approved and adopted the 1998-2010 Comprehensive Plan,
which included a new Housing Element in compliance with State law. As part of that effort, the
City’s housing related goals, policies and programs were reevaluated. The revised Plan places an
emphasis on creating new housing opportunities by use of tools such as minimum densities,
designating higher densities near transit and services, mixed use projects and strengthening other
zoning incentives. The revised Plan also continues the former Plan’s emphasis on, and protections
for, existing rental units.
In July 2000, the Planning Commission approved a work program to completely revise and update
the Zoning Ordinance. This effort is expected to be completed in 18 months (by the end of 2001).
The new Zoning Ordinance will implement the Comprehensive Plan housing policies and
programs.
24
PART III.
COMMUNITY DEVELOPMENT
III. COMMUNITY DEVELOPMENT
A. Resources Available
1. City of Palo Alto Non-Housing Community Development Resources
a. Federal Funds
The primary federal resource in the City of Palo Alto for non-housing community development
activity is the Community Development Block Grant (CDBG) Program. The City of Palo Alto is
an entitlement jurisdiction under the CDBG regulations and receives annual funding on a
formula basis. The purpose of the CDBG program is to develop viable urban communities by
providing decent housing and a suitable living environment, and by expanding economic
opportunities, principally for low and moderate-income persons. The City receives no other
direct federal funding for community development projects.
As explained earlier in this report, the amount of CDBG funds available for allocation in 1999/00
was $924,000. This includes grant funds of $738,000, $91,000 in reallocated funds, anticipated
program income of $45,000, and $50,000 in excess program income from prior years. In fiscal
year 1999/00, the City allocated a total of $57,450, or six percent of its CDBG funds to public
service activities, and $148,000, or 19 percent to fair housing activities and CDBG program
administration.
b. Local Funds
¢" Human Service Resource Allocation Process (HSRAP)
The City of Palo Alto provided $1,245,677 in General Funds in 1999/00 to address priority
human service needs in the community. The funds were .allocated through the Human Service
Resource Allocation Process (HSRAP), and administered by the Office of Human Services in the
Community Service Department. The projects funded addressed the Human Relations
Commission’s priority needs in the following categories: nutrition, child-care, youth/teens,
seniors, homeless/low income, disability, information and referral, women, and family support.
" Hamilton Public Benefit Program for Senior Services
In 1993 the City of Palo Alto entered into an agreement with Hamilton Avenue Properties
regarding the public benefit portion of a Planned Community (PC) zone change. The PC
allowed development of a senior condominium project with 36 residential units. The agreement
called for a $500, 000 contribution to the City for the establishment of an endowment fund to
benefit seniors and senior services, payable in annual installments of $50,000. Additionally,
upon resale of all the original units, a fee of 2-½% of the sales price of the unit shall also go into
the fund. In fiscal year 1999/00, the seventh annual installment of $50,000 was collected and
disbursed to Avenidas, local provider of services for seniors.
26
c. Leveraging
All of the local non-profit agencies leverage CDBG and HSRAP funding with money from local
organizations such as the United Way, corporations, foundations, and individual donors.
Accomplishments
1. Summary of Accomplishments with CDBG Funds
The appended financial expenditure report summarizes the accomplishments of each activity ’
funded with Community Development Block Grant funds in 1999/00. The report also specifies
the number and ethnicity of persons or households who benefited from the activities. Following
is a brief recap of the accomplishments of the public service and other community development
activities that were completed during the 1999/00 fiscal year with CDBG funds.
$25,000 to the Palo Alto Housing Corporation. Provided housing information and
referral to 4,912 housirig seekers, updated, published and distributed an affordable
housing directory
$16,450 to the Palo Alto Housing Corporation. Provided counseling sessions for 34
very-low income residents of the Barker Hotel (many of whom were previously
homeless).
$8,000 to Emergency Housing Consortium. Provided 51 unduplicated homeless persons
with supportive services and 2,166 shelter nights in emergency shelter and transitional
housing programs.
$8,000 to Catholic Charities. Provided site visits to Palo Alto long-term care facilities;
742 unduplicated elderly residents were represented or assisted for various patient rights
issues; 82 resident complaint cases (including allegations of elder abuse) were
investigated and concluded.
$18,000 to Mid-Peninsula Citizens for Fair Housing. Opened and investigated 21 cases
involving allegations of housing discrimination in Palo Alto, and provided outreach and
education services.
$35,000 to the YWCA for the Women’s Entrepreneur Program. The program provided
services to 216 clients in a 10-week business academy and business forums.
The chart on the following pages reflects the accomplishments and beneficiaries served with
1999/00 CDBG expenditures:
27
Summary of Community Development Accomplishments
for Public Facilities and Improvements
(HUD Table 3-1)
Name of Grantee: Palo Alto StAte: CA Program Year: 1998/99
Priority Need Category
Public Facilities
Senior Centers
Handicapped Centers
Homeless Centers
Youth Centers
Neighborhood Facilities
Child Care Centers
Parks and/or Recreation
Facilities
Health Facilities
Parking Facilities
Abused/Neglect Facilities
AIDS Facilities
Other Public Facilities
Public Improvements
Solid Waste Improvements
Flood Drain Improvements
Water Improvements
Street Improvements
Sidewalk Improvements
Actual Number of
Projects Assisted
Actual Number of
Projects Completed
Priority Need Category Actual Number of Actual Number of
Projects Assisted Projects Completed
Sewer Improvements
Asbestos Removal
Other Infrastructure
Improvements
Other
Other
Priority Need Category Actual Number of Persons Served
Public Services
Senior Services 742
Handicapped Services
Youth Services
Transportation Services
Substance Abuse Services
Employment Training 216
Crime Awareness
Fair Housing Counseling 21
Tenant/Landlord Counseling 4,912
Child Care Services
Health Services
Other Public Services (homeless assistance)85
Accessibility Needs
Other Community Development
29
Priority Need Category Actual Number of Persons Served
Energy Efficiency Improvements
Lead Based Paint/Hazards ’
Code Enforcement
Other
Note: Numbers reflect persons assisted with CDBG funds only
30
2.Summary of Accomplishments with Palo Alto General Fund Money Allocated
through the Human Service Resource Allocation Process (HSRAP)
The City of Palo Alto Human Service Resource Allocation Process (HSRAP) provided
$1,245,677 in General Fund dollars to the following agencies for services to lower income
elderly, disabled or special needs residents of Palo Alto during the 1999/00 fiscal year.
Adolescent Counseling Services-- $89,716. ,On-campus counseling programs
Alliance for Community Care - $7,486. Homeless outreach program
American Red Cross - $10,783. Homelessness prevention services
Avenidas - 420,623. Senior services
Clara-Mateo Alliance/Salvation Army - 25,000. Homeless shelter services
Community Association for Rehabilitation (CAR) - $45,524. Services for children
with disabilities and their families
Family Service Mid-Peninsula - $12,879. Single parent support services
La Comida de California - $17,268. Senior nutrition program
MayView Community Health Center - $10,277. Health care for low income,
homeless, and uninsured residents
Outreach - $6,000. Para-transit subsidy program
Palo Alto Community Child Care - $402,005. Child care subsidies and outreach
Peninsula Association for Retarded Children & Adults - $14,594. Community
Building Project
Peninsula Center for the Blind & Visually Impaired - $10,521. Rehabilitation
services for residents with visual impairments
Project Sentinel - $61,853. Tenant/landlord counseling and mediation services
Second Harvest Food Bank - $6,744. Groceries for low-income seniors
Senior Adult Legal Assistance - $8,000. Legal assistance for seniors
Social Advocates for Youth - $7,401. CASA Say youth homeless shelter
Support Network for Battered Women - $25,001. Services for battered women
Urban Ministries of Palo Alto - 30,612. Meal and grocery program for low-income
persons
YMCA of the Mid-Peninsula - $8,000. Ventura Activity Center for teens
YWCA/Youth Community Service - $17,378. Community service and leadership
program for teens
YWCA of the Mid-Peninsula - $11,012 for the rape crisis center and the teen assault
prevention project
3. Summary of Accomplishments with Hamilton Public Benefit Funds
The $50,000 allocation supported the Retired Senior Volunteer Program ($29,000), Senior
Home Repair ($8,000), and Information and Referral Services ($13,000).
31
4. Actions Taken to Affirmatively Further Fair Housing
Two landmark fair housing laws took effect in the State of Califomia on ,Tanuary 1, 2000. Sexual
orientation and source of income were added to protected categories und~’ the California Fair
Employment and Housing Act. The inclhsion of these categories provides greater protection to
those residing in or seeking rental housing.
The City continues to support the purpose and goal of fair housing and contracts with Mid-
Peninsula Citizens for Fair Housing (MCFH) to promote equal opportunity in housing. Services
include information and referral, community outreach and education, discrimination complaint
checking and investigation, legal referrals and assistance in resolving complaints. The City also
contracts with Project Sentinel to provide tenant/landlord information, referral and mediation
services. In addition to these contracts, the following steps were taken in the 1999/00 fiscal year
to affirmatively further fair housing.
On Saturday, March 4, 2000, the Human Relations Commission sponsored a community
forum dedicated to the exploration of issues relating to housing for people with special needs.
The workshop focused on the resources available, the needs and what the community wants.
The City provided funding to Avenidas who updated and published their "Where to Live"
Guide to assist senior adults in accessing appropriate housing.
The Office of Human Services distributed a Tenant Guide which addresses the most
frequently asked questions relating to rental housing and describes Palo Alto’s rental housing
stabilization ordinance. The booklet is in the process of being updated.
The Office of Human Services and the Planning Division sponsored three housing
information and referral coordination meetings (August 30, 1999, January 14, 2000 and June
22, 2000) for service providers. The meetings have resulted in increased networking
amongst provider agencies and the availability of shared housing wait lists and other
information to help low income, elderly, homeless, or disabled clients access affordable
housing.
The City provided CDBG funds to the Palo Alto Housing Corporation for the provision of
affordable housing information and referral services, and to publish and distribute the
"Directory of Housing Services and Subsidized Rental Housing in Palo Alto and Surrounding
Communities".
The City targeted the majority of its CDBG and local housing funds to increasing/preserving
the supply of housing affordable to persons with lower incomes and/or special needs (Palo
Alto Gardens Apartments and the Waverley Street House).
32
The City contracted with MCFH to conduct a discrimination audit to determine local
compliance with occupancy standards. Two testers contacted four Palo Alto rental property
owners who had four medium and small size properties for rent. The purpose was to find out
if the owners or managers would accept families with children as tenants and if they would
allow a single parent and child to reside in a one-bedroom unit. Three of the four property
managers showed no bias for or against the testers, regardless of whether or not they had a
child. Discrimination on the basis of familial status did seem to be present at the fourth site.
The manager at the fourth site required different terms and conditions for tenancy from the
testers depending on their profile of either having or not having a child. A complaint was
filed with the California State Department of Fair Employment and Housing based on
evidence of familial status discrimination.
The City continues to support police officials and community groups in the development of
policies and actions to deal with hate crimes.
City staff participated with other Santa Clara County CDBG entitlement jurisdictions in an
effort to conduct a countywide study of fair housing impediments. The study has been
contracted-out and has six principal parts: 1) Demographic Analysis, 2) HMDA Data
Analysis, 3) Review of Government Policies and Programs, 4) Surveys of Santa Clara
Service Organizations and Resident Households, 5) Assessment of the Delivery of Fair
Housing Services, and 6) Development of New Strategies. It is expected that the report will
be available by December 2000. Findings from the study will be used to update the City’s
Analysis of Impediments to Fair Housing Choice.
Under its contract with the City, MCFH conducted, and collaborated on a number of educational
community forums and outreach activities relating to discrimination issues, as summarized
below:
Conducted a fair housing presentation on August 26, 1999 at the North County Social
Service.Agency in Mountain View
Participated in the Abilities Expo on October 16 and 17, 1999 to discuss housing
discrimination
Conducted two tester training class for five new testers. The classes emphasize fair
housing law, testing methods and strategies.
Attended the Northern California Fair Housing Coalition meeting on December 9,
1999 with HUD staff to discuss legislation, cases and other pertinent issues of mutual
concern
33
Distributed fair housing leaflets and brochures at the Palo Alto main library and at
various other locations
Wrc~te articles for Rent Watch, a fair housing column in a local publication for
persons with disabilities ’
Participated in a women’s rights conference on February 25 and 26, 2000 in San
Francisco including topics such as the right to housing without discrimination
because of gender, or the presence of children
Participated in the Housing Action Coalition meeting on March 3, 2000 in Santa
Clara to discuss regional housing issues with other housing service agencies
Staffed a booth at Tri-Counties Apartment Association’s Expo on March 8 and 9,
2000 to disseminate fair housing information
¯ / Hosted two quarterly Fair Housing Coalition meetings (March 16 and June 8, 2000)
that focused on recent fair housing cases and laws, and fair housing testing issues
Broadcast Public Service Announcements twice a month reaching a total of 28,000
residents in Palo Alto, Atherton, East Palo Alto, Menlo Park, and Stanford
Published weekly and monthly ads in the San Jose Mercury News and the Palo Alto
Weekly
During fiscal year 1999/00, MCFH investigated 21 cases of reported discrimination in Palo Alto.
Of the 21 cases investigated, 10 cases (48%) had a positive outcome (successful conciliation,
referred to attomey, referred to HUD, or counseled/assisted); nine case (42%) had a negative
outcome (no corroboration, unable to test, unsuccessful conciliation, inconclusive evidence); and
two cases (10%) are still pending. The 21 cases were in the following categories: .
Physical Disability,9 Cases 43%
Familial Status 7 Cases 33%
National Origin 3 Cases 14%
Race 2 Cases 10%
21 Cases 100%
34
5. Actions Taken to Address Needs of Homeless Persons
a. The Santa Clara County Collaborative on Housing and Homelessness.
City staff continued to participate on.the Steering Committee of the Santa Clara County
Homeless Collaborative. The Collaborative is a partnership of representatives of the County, key
cities, service and shelter providers, affordable housing providers and other nonprofit groups
throughout the Santa Clara Valley. The mission of the Collaborative is to position the region to
attract new and existing federal funds for housing and homelessness and to improve the effective
and efficient use of these funds. The Collaborative assists in the preparation of the County’s
Continuum of Care Plan to address homelessness. During the 1990/00 year, the Collaborative
prioritized the local applications for Federal McKinney homelessness grants and updated the
Continuum of Care Gaps Analysis.
Local agencies receiving an allocation of McKinney homeless funds included a partnership
between Mountain View Community Services and Clara Mateo Alliance to provide additional
casework and counseling services for homeless indi;ciduals with mental illness. This project
received an allocation of $375,000. Additionally, Alliance for Community Care received an
allocation of $184,000 in McKinney funds to rehabilitate the Waverley Street House in Palo
Alto to provide transitional housing for low-income persons with mental illness.
b. Shelter Plus Care (SPC)
The Shelter Plus Care Program, administered by the Office of the County’s Homeless
Coordinator, provides up to five years of project based Section 8 rental assistance for previously
homeless individuals with disabilities. To qualify for the SPC program, applicants must be
living on the streets, or staying at emergency shelters. Additionally, they must have a diagnosis
of one or more of the following diseases:(1) Mental illness; (2) Alcohol or drug addiction; and
(3) HIV/AIDS. They must be clean and sober (if their diagnosis is drug or alcohol addiction),
and be willing to commit to and follow an individual service plan created with their case
manager specifically geared to their individual disability. Extensive support services are a
necessary and required component of the program. These supportive services are provided to
program participants to allow them to maintain their housing, address and resolve ongoing issues
with their particular disability, and achieve a greater level of self-determination.
Alma Place, a new 107-unit residency hotel on Alma Street, has six designated SPC units. They
are all fully occupied. The Barker Hotel, a 26-unit single-room occupancy hotel in the
downtown, also has six designated SPC units that are fully occupied. The Barker SPC program
served a total of nine extremely low- income persons during the year. Of these, seven were
Caucasian and two were Hispanic. Seven persons were served in the Alma Place SPC program
during the year. Three were Caucasian, two were Asian, and two were Hispanic. Overall, the
35
SPC program has been very successful at housing people with special needs who might not
otherwise be eligible for housing or be able to maintain their housing.
c. Community Working Group on Homeless Services
The Community Working Group (CWG) on Homeless Services consists of representatives of local
churches, homeless service providers, city officials, other interested individuals and community
organizations from Palo Alto, Menlo Park and East Palo Alto. The group has been meeting over
the past few years to establish a broad-based community response to homelessness. The main goal
of the CWG is to build a permanent center for the provision of services to the homeless and those
at risk of homelessness. It is anticipated that some housing can also.bedeveloped on the site,
consistent with the zoning
In the 1999/2000 fiscal year the CWG attained 50 lc3 non-profit status and secured site control on
two adjacent parcels of land on Encina Avenue in Palo Alto (near the downtown area).
Foundation grants and private donations provided funding for the preparation of a business plan.
An agreement was signed with the Palo Alto Housing Corporation and the Santa Clara County
Housing Authority for pre-development activities. CWG applied for and received a $25,000
allocation of fiscal year 2000/01 CDBG funds to be used to design the facility, develop a financial
plan and move the project forward.
d. Services for Homeless and At-Risk Women and Children
The City’s Office of Human Services convened several task force meetings with over 40 people
from local service agencies to develop and launch a cooperative model of service delivery for
homeless and at-risk women and children from the Mid-peninsula area. Services providers met to
discuss needs and trends relating to this sub-population of the homeless, and to identify possible
funding sources and potential sites. These efforts are on-going, and are expected to result in a day
center and services for homeless women and their children in the next fiscal year.
e. Clara Mateo Alliance (CMA) Shelter
CMA opened its doors in July 1997 in an unused portion of a hospital building on the grounds of
the Veterans Affairs campus in Menlo Park. In fiscal year 1999, the shelter provided 84 Palo Alto
households with 4,859 bed nights in temporary shelter or transitional housing. 60 males were
served and 24 females. 35% of the clients were Caucasian, 53% Afro-American, and 12%
Hispanic. The shelter provides extensive rehabilitation counseling, and employment training, and
includes a meal program.
36
f. Employment Opportunities
The City of Palo Alto Office of Human Services continued the homeless worker program during
fiscal year 1999/00. $57,000 of City funding provided short-term City employment opportunities
to homeless workers for two 12-week periods. Jobs were created in City departments such as
Public Works, Facilities Maintenance and Community Services. Selected workers were provided
with food vouchers, a voucher for clothing from the local Goodwill, and bicycle transportation.
Workers were helped with resumes and skill training. Eight persons participated in the program,
and seven of them continued on to higher paying employment.
g. Homeless Services.
in total, the City provided $197,992 in funding for the following services targeted to benefit
persons who are very low income or homeless:
,/Urban Ministr~ - $30,612 in City General Funds for a prepared meal program and
a grocery distribution program for low- income persons.
Emergency Housing Consortium - $8,000 in CDBG funds for emergency shelter
and supportive services provided by the Sunnyvale Armory, the Monterey Glen
Inn Supportive Housing Program, and the Reception Center.
Palo Alto Housing Corporation - Barker Hotel Counseling - $16,450 in CDBG
funds for casework/counseling sessions for the low-income tenants of the Single
Room Occupancy Barker Hotel. Many of the tenants were previously homeless,
and the counseling sessions help them maintain their housing stability.
American Red Cross - $10,783 in City General Funds were provided to the Red
Cross for Homeless Prevention Services.
MayView Community Clinic - $10,277 in City General Funds were provided to
the Clinic to provide health care for low-income, homeless, and uninsured
residents.
Alliance for Community Care - $7,468 in City General Funds for a homeless
outreach program targeted to those with mental health issues.
Social Advocates for Youth - $7,401 in City General Funds were provided for the
Casa SAY youth shelter and Safe Place Program for runaway and homeless youth.
37
City’s Seasonal Jobs Program - $57,000 in City General Funds were used to
sponsor the temporary employment program for homeless workers.
Clara Mateo Shelter/Salvation Army - $25,000 in funding gifted to the City by a
private donor for use on projects to aid the homeless.
Support Services for Battered Women - $25,001 in City General Funds were used
to provide shelter and supportive services for abused women and children.
6. Other Actions
a. Lead-Based Paint Hazard Reduction
Lead poisoning can cause permanent damage to the brain and many other organs, and can result
in reduced intelligence and behavioral problems in young children. More than 800,000 children
younger than 6 years old living in the United States have lead in their blood that is above the
level of concern set by the Centers for Disease Control and Prevention (CDC). A significant
number of these children are in families of low income and are living in old homes with heavy
concentrations of lead-based paint. The most common sources of childhood exposure to lead are
deteriorated lead-based paint and lead-contaminated dust and soil in the environment.
The City housing and CDBG staff provide information and referral to property owners,
developers and non-profits rehabilitating older housing about lead-based paint hazards. There is
no information that indicates lower income households are more likely to be exposed to lead
paint hazards in Palo Alto than are families in the general population [see the discussion in the
City’s Consolidated Plan]. The City currently requires that any housing to be rehabilitated with
City financial assistance to be inspected for the existence of lead paint and lead paint hazards.
The City will provide financial assistance for the abatement of such hazards in units rehabilitated
with City funding.
In accordance with a new Federal regulation, "Requirements for Notification, Evaluation and
Reduction of Lead-Based Paint Assistance", published in the Federal Register on September 15,
1999, the City is preparing a Lead-Based Paint Management Plan. The Plan, to be prepared by
the September 15, 2000 deadline, will incorporate a comprehensive review of the regulation and
its effect on City programs. The Plan will also include a compliance implementation strategy.
b. Intergovernmental Cooperation
The City of Palo Alto has worked closely with neighboring cities and the County during the
period to collaborate on area-wide solutions to issues and problems. Under the direction of the
38
County Executive’s Office, the County of Santa Clara established a new Housing Coordinator
position. This position will help address housing issues on a regional basis.
As part of the effort to update Palo Alto’s Consolidate Plan, City staff arranged and participated
in a collaborative meeting with the Santa Clara County Housing Authority, and area non-profit
housing providers on January 27, 2000. The purpose of the meeting was to assure coordination
of housing services, and to identify gaps in services and areas of concern. Identified concerns
are being addressed, and a follow-up meeting is planned.
City staff participates in the following:
The Housing Bond Advisory Committee that oversees the Mortgage Credit
Certificate program and all County bond financing
The Housing Trust Fund Committee that has been administering a campaign to
capitalize a ~ountywide housing trust fund. The trust fund program would
provide an ongoing source of money for affordable housing in Santa Clara
County. One- third of the money will be targeted to homeownership activities,
one-third to multi-family rental housing, and one-third to activities and projects
that assist persons who are homeless or at-risk of homelessness.
The Santa Clara County Housing and Homeless Collaborative that addresses
issues of homelessness on a regional basis. The Collaborative prioritizes county
applications for McKinney funding, and establishes the County’s Continuum of
Care program.
The CDBG and HOME Program coordinators of entitlement jurisdictions from
throughout Santa Clara County that address multi-jurisdictional funding, and
other issues of common interest.
7. Changes to Annual Action Plan
No changes were made to Palo Alto’s 1999/00 Action Plan.
C. Assessment of Performance
1. Evaluation of Progress in Meeting Annual Community Development Goals
The City has made progress in meeting its community development goals in the past year,
especially in the area of services for lower income residents. The local safety net of services for
lower income persons is being strengthened with the creation of more shelter and supportive
39
services. These efforts contribute significantly to a local continuum of care. All of the public
service agencies funded with CDBG funds address the identified needs of providing a variety of
human services to low-income, at risk populations.
2. Evaluation of Progress in 1V~eeting Overall Goals for the Period 1995-2000
The City has made significant progress in meeting its identified community development goals
for the period 1995 - 2000. Efforts to strengthen the Shelter Plus Care Program have
successfully provided 12-units of housing with Section 8 subsidies available to previously
homeless persons with disabilities. The Clara-Mateo Alliance homeless shelter was created on
the grounds of the Veterans Affairs Hospital in Menlo Park in direct response to the lack of
emergency and transitional beds in North County. This collaborative effort is also responsible
for the first successful round of McKinney funding in northern Santa Clara County, as well as the
creation of a six bed family shelter wing, and the establishment of a day center for homeless
women and their children.
The Community Working Group is moving forward in their efforts to create a day center with
supportive services and a housing component for very low-income or homeless persons. CWG
has created a collaborative community alliance, established a corporate identity, secured a site,
identified a service provider, and is diligently working toward project implementation.
The low-income previously homeless residents of the Barker Hotel are receiving increased
supportive services through the Palo Alto Housing Corporation’s Service Coordinator and
Housing Counseling programs initiated over the past few years. These programs have
successfully stabilized the housing situations for many residents, and dramatically lowered the
turnover rate at the Barker.
A Housing Directory and Tenant Guide have been being updated annually to assist residents find
and/or retain affordable rental housing. Shelter beds and services have been provided as well as
services to very low-income seniors and persons with disabilities. Employment training and
entrepreneur programs have been established and targeted to persons who are unemployed and/or
underemployed. CDBG public service funds have been to those who are homeless, elderly or
who have disabilities.
The City pursued all resources it indicated it would, provided requested certifications of
consistency for HUD programs in a fair and impartial manner, and did not hinder Consolidated
Plan implementation by action or willful inaction.
3. Barriers to Fulfilling Strategies
The continually increasing cost of land in the Bay Area has not only created a housing crisis, but
a rental crisis for non-profit agencies that serve the vulnerable, at-risk populations. The cost of
4O
office space in northem Santa Clara County is now among the highest in the nation, and is
slowly driving service providers from the area. Many resident renters have been forced into
homelessness or forced to leave the area as the result of dramatic increases in rental rates over the
past few years. People already in shelters or sub-standard housing find it increasingly difficult to
improve their living situations, and tend to stay in the shelters or sub-standard housing longer.
The increase in the cost of residential real estate has also kept many renters from making the step
to first time homebuyers.
4. Adjustments or Improvements to Community Development Strategies
No adjustments to the community development strategies have been identified at this time.
41
PART IV.
APPENDIX
42
No,
AFFIDAVIT OF PUBLICATION
IN THE
PALO ALTO WEEKLY
703 High St., Palo Alto, California 94301
(650) 326-8210
IN THE
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF SANTA CLARA
u, t co
STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
SS
I, the undersigned, state that I am, and at all times herein mentioned was, a citizen of the
United States of America, over the age of eighteen years, and not a party to or interested in
the above entitled matter, that I was at and during all said times and still am the principal clerk
of the publisher of the Palo Alto Weekly, a newspaper of general circulation published weekly
in the city of Palo Alto in said County of Santa Clara, State of California; that said is and was
at all times herein mentioned a newspaper of general circulation as that term is defined by
Section 6008 of th~~. Government Code of the State of California; that said was adjudged as
such by Superior Court of the County of Santa Clara, State of California, under date of
November 2, 1982, Case Number P41989; that the notice of which the annexed is a true
printed copy, was set in type not smaller than r~onpareil and was preceded with words
pdnted in black-face type not smaller than nonpareil, describing and expressing in general
terms, the purport and character of ~he notice intended to be given; that said notice was
published and printed in said newspaper on the following dates, to wit:
Date of first publication in the Palo Alto WeekJy
I declare under penalty of perjury that the foregoing is true and correct.
Executed on
at Palo Alto, California.
NOTICE OF PUBLIC REVIEW AND
COMMENT PERIOD FOR
PALO ALTO’S CONSOLIDATED
ANNUAL PERFORMANCE AND
EVALUATION REPORT
FOR THE PERIOD
JULY 1, 1999 TO JUNE 30, 2000
The City of Palo Alto has completed a Draft Consolidated An-
nual Performance and Evaluation Report (CAPER) for the pe-
riod July 1, 1999 through June 30, 2000. Preparation and
submittal of the report is required by the Department of Hous-
ing & Urban Development (HUD) in order for the City (and
nonprofit organizations within the City) to apply for federal
community development and housing assistance funds such
as Community Development Block Grant (CDBG) and HOME
funds. The CAPER provides a summary of the programmatic
accomplishments in affordable housing and community devel-
opment during the 1999-2000 fiscal year.
Public Review and Comment Pedod: The draft CAPER will be
available for public review and comment for a 15-day period,
beginning on Monday, September 11, 2000 and concluding at
5:00 p.m. on Monday, September 25, 2000. Wdtten com-
ments may be submitted during the review period and should
be sent to the City of Palo Alto, Department of Planning and
Community Environment, Attention: Suzanne Bayley, 250
Hamilton Avenue, 5th F~oor, l=alo Aito, CA 94301; 650/329-
2428; e-mail "suzanne_bayley@city.palo-alto.ca.us".
To Obtain a Copy of the Report: Copies are available at the
Department of Planning and Community Environment, City
Hall, 5th Floor, 250 Hamilton Avenue, between 8:00 a.m. and
5:00 p.m. or by telephoning 650/329-2428.
Persons with disabilities who require auxiliary aids or services
in using City facilities, services or programs, or who would like
information on the City’s compliance with the Americans with
Disabilities Act (ADA) of 1990, may contact:
Fred Herman, ADA Director, City of P.alo Alto,"
650-329o2550 (Voice) or 650-329-1199 (TDD)
SUMMARY OF CDBG FUNDING PRIORITIES*
FISCAL .YEAR 199912000
*Note: Priorities are shown in order of importance
¯ I.AFFORDABLE HOUSING (Goal: 60% of Budget)
A. NEW CONSTRUCTION, CONVERSION & ADDITION OF NEW UNITS
o
Permanent housing for families with children
Other permanent housing including group homes, seniors, the disabled,
shared housing, etc.
Transitional housing with supportive services
Permanent housing for the homeless or at-risk ofhomelessness
B.PRESERVATION OF EXISTING, LOWER INCOME RENTAL HOUSING
Preservation of existing, federally subsidized multi-family housing owned
by profit motivated investors
.kcquisition and/or rehabilitation Of existing multi-family rental hi,using,
including improvements to common areas
¯ Acquisition and/or rehabilitation of existing buildings for special needs
populations including shared housing and group homes
II. PUBLIC FACILITIES AND IMPROVEMENTS (Goal: 5% of Budget)
III.
Rehabilitation of existing facilities for use as shelters for the homeless or
other special needs groups
PUBLIC SERVICES (Goal: 15% of Budget)
Services directly related to the housing needs of low income persons
Homeless shelter opei’ating costs and the provision of auxiliary or related
services
Services which address other needs of low income, elderly or special
needs persons
IV.ADMINISTRATION (Goal: 20% of Budge0
Fair housing education, information, referral, advocacy, counseling and
complaint resolution
2.CDBG program administration and planning costs
COVER PAGE
Grantee Performance
Community Developl~
Department of Housing & Urban Development
Office of Community Planning
"~ort
Block Grant Program
OMB Approval No. 2502-0006 (exp. 3/31/93)
3. NAME & ADDRESS OF GRANTEE
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
NAME & TELEPHONE NUMBER
OF PERSON MOST FAMILIAR
WITH INFORMATION IN THIS
REPORT
Ms. Suzanne Bayley
(650) 329-2428
Program Year End
6/30/00
2.Grant Number
B99MC060020
NAME & ADDRESS OF C.D. DIRECTOR
Mr. G. Edward Gawf
Dept. of Planning & Community Environment
250 Hamilton Avenue
Palo Alto, CA 94301
NAME & TELEPHONE NUMBER OF PERSON
TO CONTACT ABOUT DISCLOSURES
REQUIRED BY THE HUD REFORM ACT OF
1989
Ms. Suzanne Bayley
(650) 329-2428
Have these Community Development Block Grant (CDBG) funds been used:
a. to meet the community development program objectives in the final statement for this
program year? If no, explain, in narrative attachment, how: (1) the uses did not relate to
program objectives; and (2) future activities or program objectives might change as a result
of this year’s experiences.
Yes
b. exclusively to either benefit low-and-moderate (low/mod) income persons, aid in the
prevention or elimination of slums or blight, or meet community development needs having a
particular urgency? If no, explain in a narrative attachment.
Yes
c. such that the grantee has complied with, or will comply with, its certification to expend not
less than 70% of its CDBG funds, during the specified period, on activities which benefit
low/mod income persons? If no, explain in a narrative attachment.
Yes
8.Were citizen comments about this report and/or the CDBG program received? If yes, attach a
summary.
No
This form may be reproduced on office
copiers. Previous editions are obsolete.
Retain this record for 3 years.
Page 1 of 2
Form HUD-4949.1 (11/20/92)
ref Handbook 6510.2
Department of Housing & Urban Development
Office of Community Planning
COVER PAGE
Grantee Performance Report
Community Development Block Grant Program
OMB Approval No. 2502-0006 (exp. 3/31/93)
Indicate how the Grantee Performance Report was made available to the public:
a. BY PRINTED NOTICE: Advertisement in Palo Alto Weekly September 8, 2000
b. BY PUBLIC HEARING: A Public Hearing was held on April 20, 2000 to discuss allocation
recommendations
A Public Hearing was held on May 8, 2000 to determine final
funding allocations.
c.OTHER: A notice regarding the public review period for the draft CAPER was mailed to a list
of interested individuals and organizations.
10. The following forms must be completed and attached:
a. Activity Summary, form HUD 4949.2 d. Rehabilitation, form HUD 4949.5
b. Financial Summary, form HUD 4949.3 e. Displacement, form HUD 4949.6
c. 1-4-1 Replacement, form HUD 4949.4
I hereby certify that: This report contains all required items identified above; Federal assistance made
available under the Community Development Block Grant Program (CDBG) has not been utilized to
reduce substantially the amount of local financial support for community development activities below
the level of such support prior to the start of the most recently completed CDBG program year; all the
information stated herein, as well as any information provided in the accompaniment herewith, is true
and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in
criminal and/or civil penalties (18 U.S.C. 1001, 1010, 1012, U.S.C. 3729, 3802)
Typed Name & Title of Authorized
Official Representative
FRANK BENEST
City Manager
Signature
This form may be reproduced on office
copiers. Previous editions are obsolete.
Retain this record for 3 years,
Page 2 of 2
Form HUD-4949,1 (11/20/92)
ref Handbook 6510.2
H:/vb/reports/gprcoverpage.doc
FI ClAL ARY
FORM
FY 1999-2000
Financial Summary
Grantee Performance Report
Community Development Block Program
U.S. Department of Housing and Urban Development
Office of Community Planning & Development
0MB Approval No. 2506-0006(Exp. 3/31/93)
i.Name of Grantee
City of Palo Alto
2. Grant Number
B99MCO60020
3. Reporting Period
From 07/01/99 To 06/30/00
Part I: Summary of CDBG Resources
I.Unexpended CDBG funds at end of previous period
2.Entitlement Grant from form HUD-7082
3.Surplus Urban Renewal Funds
4.Section 108 Guaranteed Loan F~nds (Principal ~mount)
508,823.00
738,000.00
Program income received by:
a.Revolving Funds
b.Other (identify below)
Grantee
(Column A)
66,782.07
0.00
Subrecipient
(Column B)
30.783.00
0.00
Total Program Income (sum of columns a and b)
6. Prior Period Adjustments (if negative, enclose in brackets)
7. Total CDBG Funds available for use during this report period
97,565.07
1,344,388.07
Part II: Summary of CDBG Expenditures
8.Total expenditures reported on Activity Summary
9.Total expended for Planning & Administration 14t,213.60
I0.Amount subject to Low/Mod Benefit Calculation 940,912.00
ii.CDBG funds used for Section 108 principal & interest payments
12.Total expenditures (line 8 plus line ii)
13.Unexpended balance (line 7 minus line 12)
1,082,125.60
0.00
1,082,125.60
262,262.47
Part III:Low/Mod credit This Reporting Period
14.Total Low/Mod credit for multi-unit housing expenditures
15.Total from all other activities qualifying as low/mod
expenditures
16. Total (line 14 plus line i5)
17. Percent benefit to low/mod persons
(line 16 divided by line i0 this reporting period)
Part IV: Low/Mod Benefit for Multi-Year Certifications (Complete
only if certification period includes prior years)
Program years (PY) covered in certification PY 99
18. Cumulative net expenditures subject to program benefit
calculation
19.Cumulative expenditures benefiting low/mod persons
20.Percent benefit to low/mod persons
(line 19 divided by line 18)
940,912.00
940,912.00
100%
This form may be reproduced
on local office copiers
Previous editions are obsolete
Retain this record for 3 years.
form HUD-4949.3(II/24/92)
ref Handbook 6510.2
08/21/00 2
Financial Summary
Grantee Performance Report
Community Development Block ProgXam
U.S. Department of Housing and Urban Development
Office of Community Planning & Development
0MB Approval No. 2506-0006(Exp. 3/31/93)
Part V: For Public Service (PS) Activities Only:
Public Service CAP Calculation
21.
22.
23.
24.
25.
26.
27.
28.
29.
Total PS expenditures from column h, form HUD4949.2a
Total PS unliquidated obligations from column r, from HUD 4949.2a
Sum of line 21 and line 22
Total PS unliquidated obligations reported at the end of the
previous reporting period.
Net obligations for public services (line 23 minus line 24)
Amount of Program Income received in the preceding program year
Entitlement Grant Amount (from line 2)
Sum of lines 26 and 27
Percent funds obligated for Public Service Activities
(line 25 divided by line 28)
92,450.00
92,450.00
92,450.00
t18,184.07
738,000.00
846,184.07
11%
Part VI: Planning and Program Administration Cap Calculation
30.
31.
32.
Amount subject to planning and administrative cap 835,565.07
(grant amount from line 2 plus line 5)
Amount expended for Planning & Administration (from line 9 above) 141,213.60
Percent funds expended (line 31 divided by line 30) 17~
NE 5a: PROGRAM INCOME NARRATIVE
The Housing Improvement Program (HIP) was a residential loan program for qualified low-
income residents. Program income is generated by the repayment of principal and
interest on the outstanding loans.
The Palo Alto Housing Corp. (PA~C) pays a proportional amount of program income on rental
properties purchased or rehabilitated with CDBG funds where the net income exceeds
expenses.
Other Program Income
Activity No.Description Grantee Subrecipient
*HIP Low-interest loans $66,782.07
iPAHC Various rental properties $30,783.00
Tom]$66,782.07 $30,783.00
Activity Numbers Starting with ~*" are old Activities
not on this program year’s Activity Summary.
This form may be reproduced
on local office copiers
Previous editions are obsolete
Retain this record for 3 years.
form HUD-4949.3(II/24/92)
ref Handbook 6510.2
08/21/00 3
Financial Summary
Grantee Performance Report
Community Development Block Program
U.S. Department of Housing and Urban Development
Office of Community Planning & Development
OMB Approval No. 2506-0006(Exp. 3/31/93)
GPR HANDBOOK APPENDIX 3: ITEM D UNRECONCILED DIFFERENCE EXPLANATION
Difference due to rounding.
GPR HANDBOOK APPENDIX 3: ITEM E CALCULATION OF BALANCE OF UNPROGRAMMED FUNDS
R~CONCILIATIONOF LINE (S) OF CREDIT (LOC) AND CASH BALANCES
TO UNEXPENDED BALANCE OF CDBG FUNDS SHOWN ON GPR
Complete the following worksheet and submit with the attachment:
UNEXPENDED BALANCE SHOWN ON GPR
(line 13 of HUD 4949.3)
262,262.47
ADD:
LOC balance(s) as of GPR Date
Cash on Hand:
Grantee Program Account
Subrecipients Program Accounts
262,262,78
0.00
0.00
Revolving Fund Cash Balances
Section 108 Accounts
(in contract)
0.00
0.00
SUBTRACT:
Grantee CDBG Program Liabilities
(include any reimbursements due to
the Grantee from program funds)
0.00"
Subrecipient CDBG Program Liabilities
(same instructions as above)
0.00"
TOTAL RECONCILING BALANCE:
UNRECONCILED DIFFERENCE:
262,262.78
.31
*When grantees or subrecipients operate their programs on a
reimbursement basis, any amounts due to the grantees or
subrecipients should be included in the Program Liabilities.
This form may be reproduced
on local office copiers
Previous editions are obsolete
Retain this record for 3 years.
form HUD-4949.3 (11/24/92)
ref Handbook 6510.2
08/21/00 4
U.S. Department of Housing & Urban Development Office of
Community Planning and Development
REHABILITATION ACTIVITIES
Grantee Performance Report
Community Development Block Grant Program
0MB Approval No. 2506-0006(exp. 3/31/93)
Name of Grantee
City of Palo Alto
Grant Number
B99MC060020
Program Year
From 07/01/99 To 06/30/00
All grantees must submit this form,
whether or not they have CDBG funded
rehabilitation programs.
I
II
Single-unit I Multi-unit
Actlvities I Activities
(i Unit)~(2+ Units)
i. Check box only if grantee has no CDBG
rehabilitation activities:X
2. Staffing: number of Staff-Years
(FTE staff years to tenths).i0
3. Current Program Year Expenditures:
Activity delivery costs from CDBG funds
a.Staff costs: Amount expended in 2 above
b.Other direct costs (not included in 4)
1,350
4.Current Program Year Expenditures:
For all projects (a+b+c below)
a.CDBG funds expended
b.Other public (Federal,State,local) funds exp’d.
c.Private funds expended
189,912
5.Project/Units Rehabilitated/Committed
a.Number of projects committed (multi-unit only)
b.Number of units committed
6. Obligations: Amount obligated for
projects/units committed in 5aand 5b
a.CDBG funds obligated
b.Other public(Fed.,State,local) funds obligated
c.Private funds obligated
7. Projects/Units Rehabilitated/Completed
a. Number of projects completed(multi-unit only).2
Projects
So Number of units completed 123
Units
8.Cumulative Expenditures:
a.CDBG funds expended
b.Other pzblic(Federal,State,local) funds exp’d.
c.Private funds expended
189,912
59,163
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