HomeMy WebLinkAboutStaff Report 12408
City of Palo Alto (ID # 12408)
City Council Staff Report
Report Type: Action Items Meeting Date: 9/20/2021
City of Palo Alto Page 1
Summary Title: CAPER for CDBG Program FY2020
Title: Consolidated Annual Performance and Evaluation Report (CAPER) for
the Community Development Block Grant (CDBG) Program for Fiscal Year
2020 (10:00 PM - 10:30 PM)
From: City Manager
Lead Department: Planning and Development Services
Recommendation
Staff recommends that the City Council hold a public hearing and take the following action:
1. Authorize staff to submit the Fiscal Year 2020-2021 Consolidated Annual Performance
and Evaluation Report (Attachment A) to the Department of Housing and Urban
Development by the September 30, 2021 deadline.
Executive Summary
The City is required to report annually to U.S. Department of Housing and Urban Development
(HUD) the accomplishments for the Community Development Block Grant (CDBG) program.
This report reviews the City’s CDBG accomplishments from July 1, 2020 to June 30, 2021 and
the expenditures for the Fiscal Year (FY) 2020-21 CDBG funding cycle. The City funded a total of
14 projects in FY2020-21.
The Council is requested to review the draft FY2020-21 Consolidated Annual Performance
Evaluation and Report (Attachment A) and authorize the staff to submit it to HUD by the
September 30, 2021 deadline.
Background
The City of Palo Alto receives funds annually from HUD as an entitlement city under the CDBG
program. As a recipient of CDBG funds, the City is required to prepare a Consolidated Annual
Performance Evaluation and Report (CAPER) at the end of the fiscal year. The CAPER describes
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the City’s progress implementing the activities identified in the annual Action Plan1 and the
goals and objectives of the Con Plan2. The FY2020-21 CAPER (Attachment A) represents the first
year of the 2020-2025 Con Plan.
For context, the City also administers the Human Services Resource Allocation Process, also
known as HSRAP. This is a typically biannual process that provides an opportunity for human
services providers in the community to apply for grant funds from the City for the delivery of
services. Though distinct in its separation from the CDBG program, the services and support
provided through these organization mirrors that of the CDBG program. In FY 2022, the City
Council authorized the addition of a supplemental allocation of funding in the amount of
$200,000 to assist with the significant financial impacts COVID-19 has resulted in. Examples of
grantees through the HSRAP process include Adolescent Counseling Services, LifeMoves, La
Comida de California, Alta Housing, and Abilities United, to name a few.
Discussion
In FY2020-21, the total CDBG funds allocated to eligible activities was $1,596,871. This included
$501,242 in entitlement funds, $136,049 in estimated program income, $213,167 from prior
year resources, and an additional $746,413 to respond to COVID-19.
Summary of Accomplishments
There are five principal categories where CDBG funding can be allocated: (1) Public Services, (2)
Planning and Administration, (3) Economic Development, (4) Housing Rehabilitation, and (5)
Public Facilities. This year, because of the additional funding made available via the CDBG-
Coronavirus (CDBG-CV) grant, HUD allowed the grantees to use the available funds to provide
rental assistance to low-income households (80% of Area Media Income and below) who have
suffered documented income loss due to COVID-19. The City allocated funds in accordance with
(1) the goals and objectives set forth in the 2020-2025 Con Plan and (2) to the activities that
helped in preventing and responding to COVID-19.
The CAPER, Attachment A, provides a detailed description of the programs and project
accomplishments. The major accomplishments include the following:
• LifeMoves, Silicon Valley Independent Living Center and YWCA provided rental
assistance to 29 low-income households who suffered documented income loss due to
COVID-19.
1 Action Plan: Document prepared on a yearly basis listing the activities the City intends to undertake with CDBG
funds to address the needs and implement the strategies identified in the Consolidated Plan.
2 Consolidated Plan (Con Plan): A five-year strategic plan that addresses the housing and non-housing community
development needs of lower income persons and establishes annual goals and objectives to meet the identified
needs.
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• Downtown Streets Team connected 26 employers with 21 individuals who were
meaningfully employed. Additionally, the organization delivered groceries to 81 Palo
Alto households categorized as vulnerable during the COVID-19 pandemic.
• Project Sentinel assisted 17 individuals in investigating their fair housing complaints; 14
residents received individual consultation relating to specific fair housing questions;
and, 17 fair housing presentations were conducted to increase awareness related to the
fair housing laws. The fair housing presentations were attended by 898 Palo Alto
residents.
• LifeMoves, at the Opportunity Services Center, provided case management services
including assistance with housing and job searches, referrals, and mentoring to 66
homeless and/or very low-income Palo Alto residents. Additionally, 43 persons received
extended hours of supports and services at the Hotel De Zink emergency shelter. The
hours of operations were increased by 55% from 9 pm through 6 am to 5 pm through 7
am.
• Catholic Charities, through the Long-Term Care Ombudsman Program, assisted 266
mostly low- or moderate- income elderly residents at the Palo Alto long-term facilities
that mainly serve low-income residents. Additionally, the Long-Term Care Ombudsman
Program resolved 45 complaints made by, or on behalf of, low-income elderly residents
of the facilities.
• Alta Housing, formerly known as Palo Alto Housing Corporation, had on-site counseling
services available for the 156 residents of the Single-Room Occupancy (SRO) Resident
Support Program at Alma Place and Barker Hotel. Intensive case management services
were provided to 28 residents.
• The YWCA Support Network Program provided 25 clients with counseling, therapy,
and/or legal advocacy services. Crisis Counselors provided crisis line assistance to 33
callers from Palo Alto.
• Silicon Valley Independent Living Center (SVILC) assisted 16 adults with disabilities in
developing an independent living plan for housing that resulted in improved accessibility
to decent affordable housing.
• Ravenswood Family Health Network (former: MayView Community Health Center)
administered COVID-19 tests for 351 Palo Alto residents. Additionally, through the CDBG
grant, the organization placed a down payment for a Mobile Clinic in December 2020.
The Mobile Clinic took over six months to build due to increased demand for
Recreational Vehicles (RVs) and supply chain issues. The mobile clinic is expected to be
fully functional and operational by the end of Fall 2021. The agency plans to provide
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pop-up vaccination events and booster COVID-19 vaccines should those be
recommended by the FDA and CDC. By the end of 2021, the mobile clinic will also be
used for medical and dental services and is expected to stay in operation for 7-10 years.
Timeline
Upon receiving authorization from the City Council, the FY2020-21 CAPER will be submitted to
HUD by the September 30, 2021 deadline.
Stakeholder Engagement
An advertisement was published in The Daily Post on September 2, 2021 announcing the
availability of the draft CAPER for public review and comment. The draft CAPER was posted on
the City’s CDBG webpage3 from September 3, 2021 through September 19, 2021. At the time
this report was prepared no public comments were received.
Attachment
Attachment A: Draft FY2020-21 Consolidated Annual Performance and Evaluation Report
(CAPER)
Attachments:
Attachment9.a: Attachment A: Fiscal Year 2020-2021 DRAFT Consolidated Annual
Performance and Evaluation Report (PDF)
3 City of Palo Alto, CDBG Webpage: https://www.cityofpaloalto.org/Departments/Planning-Development-
Services/Long-Range-Planning/Community-Development-Block-Grant
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FY 2020-21 DRAFTCONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER)
JULY 1, 2020 THROUGH JUNE 30, 2021
PUBL IC COMMENT P E RIODSEPTEMBER 2, 2021 – SEPTEMBER 17, 2021
ADMI N I ST ERED BY: PLANNING AND DEV ELOPMENT SERV ICES
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Table of Contents
CR‐05 ‐ Goals and Outcomes ................................................................................................................ 1
CR‐10 ‐ Racial and Ethnic composition of families assisted. .................................................................. 5
CR‐15 ‐ Resources and Investments 91.520(a) ...................................................................................... 7
CR‐20 ‐ Affordable Housing 91.520(b) .................................................................................................. 10
CR‐25 ‐ Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................. 12
CR‐30 ‐ Public Housing 91.220(h); 91.320(j) ........................................................................................ 15
CR‐35 ‐ Other Actions 91.220(j)‐(k); 91.320(i)‐(j) ................................................................................. 16
CR‐40 ‐ Monitoring 91.220 and 91.230 ............................................................................................... 20
CR‐45 ‐ CDBG 91.520(c) ...................................................................................................................... 21
Table of Figures
Table 1 – Accomplishments – Program Year &Strategic Plan to Date ......................................................... 1
Table 2 – Racial/Ethnic Composition of Individuals Assisted in FY20‐21 Through CDBG & CDBG Funds ....... 5
Table 3 – Racial/Ethnic Composition of Individuals Assisted Through the COVID‐19 Related Activities ....... 6
Table 4 – Resources Made Available .............................................................................................................. 7
Table 5 – Identify the geographic distribution and location of investments .................................................. 8
Table 6 – Number of Households ………………………………………………………………………………………………………………10
Table 7 – Number of Households Supported……………………………………………………………………………………………..10
Table 8 – Number of Persons Served …………………………………………………………………………………………………………11
Table 9 – Housing Trust Palo Alto Projects .................................................................................................... 17
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CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a)
Below is a description of the progress the City of Palo Alto has made in achieving the goals outlined in its strategic plan and annual action plan. In
Fiscal Year 2020-21, the City achieved the majority of its annual goals & is on track to meet most of the five year goals outlined in the Consolidated
Plan.
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain,
if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Goal Category Source /
Amount
Indicator Unit of
Measure
Expected
–
Strategic Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program Year
Actual –
Program
Year
Percent
Complete
Affordable
Housing
Affordable
Housing CDBG: $0 Rental units
rehabilitated
Household
Housing Unit 107 0
0.00%
Affordable
Housing
Affordable
Housing CDBG: $0
Homeowner
Housing
Rehabilitated
Household
Housing Unit 40 0
0.00%
Economic
Development
Non-Housing
Community
Development
CDBG:
$236,000
Jobs
created/retained Jobs 150 21
14.00% 21 21
100.00%
Fair Housing
Non-Housing
Community
Development
CDBG:
$37,480
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 75 17
22.67% 15 17
113.33%
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OMB Control No: 2506-0117 (exp. 09/30/2021)
Homelessness Homeless CDBG:
$59,863
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 850 222
26.12% 167 222
132.93%
Homelessness Homeless
CDBG:
$85,000
CDBG-CV:
$294,000
Tenant-based
rental assistance
/ Rapid
Rehousing
Households
Assisted 60 29
48.33% 60 29
48.33%
Homelessness Homeless
CDBG: $ /
CDBG-CV:
$97,622
Homeless
Person
Overnight
Shelter
Persons
Assisted 100 43
43.00% 100 43
43.00%
Strengthen
Neighborhoods
Non-
Homeless
Special
Needs
Non-Housing
Community
Development
CDBG:
$342,228
CDBG-CV:
$205509
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 1345 883
65.65% 1129 883
78.21%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan,
giving special attention to the highest priority activities identified.
During program year 2020, the City’s CDBG subrecipients continued to provide vital services to extremely low, very low, low and moderate-income
households while addressing 1- the priorities and needs of the community as explained in the City’s adopted 2020-25 Consolidated Plan and 2-
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OMB Control No: 2506-0117 (exp. 09/30/2021)
the City’s funding priorities and strategies to address COVID-19 related impacts, using funds from the CDBG CARES Act(CDBG-CV).
The City was able to achieve most of its goals outlined in the 2020 Annual Action Plan (AAP) through CDBG and CDBG-CV funding. The City received
a total of $746,413 in CDBG-CV funds. Additionally, the City allocated $251,701 out of its 2020 annual formula grant to local non-profits to support
and help community residents affected by the COVID-19 pandemic.
Through the combination of CDBG and CDBG-CV funds, in total, 1,215 persons were assisted in this fiscal year. Out of the 1,217 persons assisted,
650 (66 from CDBG-CV funds and 584 from 2020 CDBG funds directed towards COVID-19 related activities) persons were assisted by allowing
access to emergency funding intended to assist in making a timely response to the impacts of the COVID-19 pandemic. Of the 1,217 (1217 persons
were assisted in this fiscal year. However, one individual from YWCA Case Management activity did not report their income level.) persons, 677
were extremely low-income, 387 were low income and 152 were moderate income. Similarly, of the 650 persons supported through the COVID-
19 related activities, 406 were extremely low-income, 198 were low income and 46 were moderate income. This includes the 66 persons assisted
through the CDBG-CV funds
With the CDBG annual formula grant, 21 individuals were able to secure meaningful employment, 266 senior residents were contacted by
Ombudsmen through visitation and phone outreach at the local long-term facilities and 66 homeless/very low-income community residents were
provided case management services including assistance with housing and job searches. Project Sentinel provided fair housing and tenant/landlord
mediation services to 17 local residents. The City also funded a local nonprofit to provide counseling, therapy and legal services to 25 lower income
local residents who are victims of domestic violence. Additionally, through the CDBG funds, a local nonprofit was able to offer on-site counseling
services to 156 residents of the Single-Room Occupancy (SRO) Resident Support Program.
The City partnered with three local nonprofits and provided rental assistance to 29 low-income households who suffered documented income loss
due to COVID-19. Of the three nonprofits, one was fully funded through the CDBG-CV funds, the other two were funded through the CDBG annual
formula grant. A local food bank was funded through the CDBG annual formula grant and delivered groceries to 217 community residents
categorized as vulnerable due to the COVID-19 pandemic. Through the CDBG-CV funding a local nonprofit overseeing the operations of an
emergency shelter, provided extended hours of supports and services to 43 homeless persons. The hours of operations of the emergency shelter
were increased by 55% from 9 pm through 6 am to 5 pm through 7 am.
A local health clinic administered COVID-19 tests for 351 community residents through the CDBG annual formula grant. Additionally, the
organization also placed a down payment for a Mobile Clinic in December 2020. This activity was funded through a combination of CDBG annual
formula grant and CDBG-CV funds. The Mobile Clinic took over six months to build due to increased demand for Recreational Vehicles (RVs) and
supply chain issues. Unfortunately, the mobile clinic that was delivered has some physical issues that are currently being addressed by the
manufacturer. It is expected that the mobile clinic will be operational by the end of Fall 2021.Through the mobile clinic, the organization plans to
provide pop-up vaccination events and booster COVID-19 vaccines.
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CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
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CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted
Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
Table 2 shows the accurate racial and ethnic categories of total individuals served in FY 2020-21 through
CDBG and CDBG-CV funds. Total number (1217) also includes 650 individuals assisted through the COVID-
19 related activities. In total, the City’s CDBG program served 1217 individuals in FY2020-21. Of those
individuals, approximately 62% were White; 13% were African American; 12% were Asian; 1% were either
American Indian/American Native, Native Hawaiian, American Indian/Alaskan Native and Black, American
Indian/Alaskan Native and White, Black or African American/White. 11% individuals reported as “Other”.
Of the 1217 individuals served, approximately, 24% were Hispanic.
Race
White 756
Black or African American 159
Asian 149
American Indian/Alaskan Native 9
Native Hawaiian 5
American Indian/Alaskan Native and White 4
American Indian/Alaskan Native and Black or African American 3
Black or African American and White 2
Others 130
Total 1217
Ethnicity:
Hispanic 297
Not Hispanic 920
Table 2 – Racial/Ethnic Composition of Individuals Assisted in FY20-21 Through CDBG &CDBG-CV Funds
Table 3 provides the breakdown of racial and ethnic categories of the 650 individuals assisted through the
COVID-19 related activities by utilizing FY20-21 CDBG and CDBG-CV funds. Of the 650 persons supported
through the COVID-19 related activities approximately 54% were White; 15% were Asian; 13% were
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CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
African American; 16% individuals reported as “Other” and 37% were Hispanic.
Race:
White 354
Black or African American 82
Asian 98
American Indian/Alaskan Native 6
Native Hawaiian 2
American Indian/Alaskan Native and Black or African American 2
Others 106
Total 650
Ethnicity:
Hispanic 241
Not Hispanic 409
Table 3 – Racial/Ethnic Composition of Individuals Assisted Through the COVID-19 Related Activities in FY20-21 Through CDBG &CDBG-CV Funds
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CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal 850,458
Other public - federal 746,413
Table 4 - Resources Made Available
Narrative
Almost all of the City’s CDBG subrecipients were able to utilize all of their grant funds in FY2020-21 with
the exception of Silicon Valley Independent Living Center (SVILC)- Rental Assistance Program. There are
$47,085 remaining in this grant. SVILC has continued to face challenges with the shutdown due to the
Covid-19 pandemic and their inability to provide in-person services to residents at the Palo Alto
Opportunity Services Center. Additionally, the State’s extended eviction moratorium has postponed many
residents’ acute concerns about being behind on rent. The City has worked with SVILC and provided them
an extension of 6 additional months, through December 2021, to utilize the remaining grant funds
because the agency expects that after final moratorium extension ends, there will be an increase demand
for rental assistance.
In the case, that the agency is not able to spend the remaining funds, these funds will be added to the
City’s unused funds from previous years and will be allocated as part of the 2022-23 Notice of Availability
of Funding (NOFA) to be published in Winter 2021.
The City staff received CDBG-CV funding in two rounds. $294,909 was allocated in April 2020 and $451,504
was allocated in September 2020. The first round of funding was provided to LifeMoves for their rental
assistance program. As of June 2020, the City has reimbursed $85,000 to the organization. The City has
worked with the organization and provided an extension of 6 additional months, through December 2021,
to utilize the remaining grant funds because the agency expects that after final moratorium extension
ends, there will be an increase demand for rental assistance. In the case, that the agency is not able to
spend the remaining funds, staff will look for additional projects/activities to reallocate the remaining
CDBV-CV funds to an eligible COVID-19 related CDBG activity.
In October 2020, Staff published NOFA for the second round of available CDBG-CV funds ($451,504) and
received two applications 1- Ravenswood Vaccination Van 2- LifeMoves Hotel De Zink Program (To provide
emergency shelter to homeless clients from Jan 2021 through June 2021). After fully funding the two
requests, the City still had $43k to allocate to an activity/project. In Feb 2021, staff re-published NOFA for
the remaining $43k and received only one application from LifeMoves for the same Hotel De Zink program
(To provide emergency shelter to homeless clients from July 2021 through December 2021). Staff
amended the original contract and added $43k and extended the term of performance from June 2021 to
December 2021. We are confident that the organization will fully utilized the additional $43k by December
2021.
Ravenswood Vaccination Van was funded through a combination of CDBG annual formula grant
($149,950) and CDBG-CV ($204,600) funds. The City has reimbursed $293,717 to the organization which
was used to place a down payment for a Mobile Clinic in December 2020. The Mobile Clinic took over six
months to build due to increased demand for Recreational Vehicles (RVs) and supply chain issues.
Unfortunately, the mobile clinic that was delivered has some physical issues that are currently being
304,548.12
423,521.36 (867,207.4 Total)
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CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
addressed by the manufacturer. It is expected that the mobile clinic will be operational by the end of Fall
2021. The City and the organization agreed on reimbursing the remaining $60,832 after the vaccination
van is functional and the activity goals are achieved.
Identify the geographic distribution and location of investments
Target Area Planned Percentage of
Allocation
Actual Percentage of
Allocation
Narrative Description
N/A N/A N/A N/A
Table 5 – Identify the Geographic Distribution and Location of Investments
Narrative
The City considers the provisions of all types of housing assistance on a citywide basis consistent with the
policies of the Comprehensive Plan. Palo Alto does not have specific target areas for housing activities;
instead the City attempts to provide affordable housing to lower-income persons throughout the City.
Minority concentration includes areas in the City where the concentration of racial and ethnic minority
population is 10% or higher than their total citywide representation. There are only a few areas that are
considered to have a concentration of minority populations or low-income residents in Palo Alto. The
CDBG Program defines low-income concentration as any census block group where 51% or more residents
earn 80% of Median Family Income (MFI) or less. An exception exists for a jurisdiction that does not have
any areas meeting this definition, such as Palo Alto, which includes the highest quartile of all areas in the
City in terms of degree of concentration, is used. However, Palo Alto does not qualify activities under the
low- and moderate- income (LMI) area benefit category.
The City considers the provisions of all types of housing assistance on a citywide basis consistent with the
policies of the Comprehensive Plan. Palo Alto does not have specific target areas for housing activities;
instead the City attempts to provide affordable housing to lower-income persons throughout the City.
Minority concentration includes areas in the City where the concentration of racial and ethnic minority
population is 10% or higher than their total citywide representation. There are only a few areas that are
considered to have a concentration of minority populations or low-income residents in Palo Alto. The
CDBG Program defines low-income concentration as any census block group where 51% or more residents
earn 80% of Median Family Income (MFI) or less. An exception exists for a jurisdiction that does not have
any areas meeting this definition, such as Palo Alto, which includes the highest quartile of all areas in the
City in terms of degree of concentration, is used. However, Palo Alto does not qualify activities under the
low- and moderate- income (LMI) area benefit category.
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CAPER 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds),
including a description of how matching requirements were satisfied, as well as how any
publicly owned land or property located within the jurisdiction that were used to address the
needs identified in the plan.
Palo Alto leverages federal and private housing funds to the greatest extent feasible consistent with the
goals identified in the 2020-2025 Consolidated Plan. Moreover, the City continues to encourage non-profit
organizations to seek other local, state, and federal funding for both housing and non-housing community
development activities.
HUMAN SERVICES RESOURCE ALLOCATION PROCESS (HSRAP): The City of Palo Alto provided $549,306
General Funds during FY2020-21 to address primary human service needs in the community. These funds
include multi-year agreements allocated by HSRAP and administered by the Office of Human Services in
the Community Services Department. Funded projects addressed the Human Relations Commission’s
priority needs in the following categories: early childcare and education, youth programs, senior nutrition
and social services, homelessness, and basic needs such as health care and mental health.
An additional $50,000 was provided through HSRAP under the emergency needs funds to local nonprofits
to assist community members impacted due to the COVID-19 pandemic.
HOUSING IN-LIEU: The City of Palo Alto maintains a local housing fund consisting of two sub funds: the
“Commercial Housing Fund” and the “Residential Housing Fund.” Palo Alto, under Chapter 16.65 of the
Municipal Code, requires commercial and industrial development projects to pay a housing mitigation fee.
The fees are deposited in the “Commercial Housing Fund”, and the accumulated fees and interest earned
on the fund are made available for the creation of new low and moderate-income housing units under
the “Affordable Housing Fund Guidelines” adopted by the City Council. As of June 30, 2021, the
Commercial Housing Fund had a preliminary available balance of approximately $278,321.36
Pursuant to Program H-3.1.2, the Below Market Rate Program of the City’s Housing Element, Palo Alto
collects housing in-lieu fees from residential development when it is infeasible to provide below market
rate units on-site. The accumulated fees and interest earned on the fund and other miscellaneous
revenues related to housing, are placed in a special fund; “The Residential Housing Fund”. This fund is
used to provide funding for acquisition or rehabilitation of low and moderate-income housing but may
also be used for assistance to new housing construction projects. As of June 30, 2021, the Residential
Housing fund had a preliminary available balance of approximately $974,396.86.
These are the only local sources of funding and subsidies available for affordable housing within the City.
They are used to provide matching funds, pay for expenses which exceed HUD income and cost limits, to
fund the cost of features and amenities classified as ineligible under federal housing programs,
predevelopment expenses, feasibility studies, site acquisition, and other similar purposes.
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CAPER 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the
number and types of families served, the number of extremely low-income, low-income,
moderate-income, and middle-income persons served.
One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 0 0
Number of Special-Needs households to be
provided affordable housing units 0 0
Total 0 0
Table 6 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 0 0
Number of households supported through
Acquisition of Existing Units 0 0
Total 0 0
Table 7 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting
these goals.
In FY2020-21, the City allocated $149,950 to Alta Housing for rehabilitation of a 4-story building consisting
of 106 single rom units. All the units were occupied by extremely low and very low income residents.
However, in Fall of 2020, the organization returned the funds because they were unable to find a qualified
contractor who is willing to do the work under the Davis Bacon Act.
The City Staff published NOFA for the returned funds as well as the second round of the CDBG-CV funds
and received application related to COVID-19 activities and reallocated the available $149,950 to an
activity to help the community residents to prevent the COVID-19 pandemic.
However, through the combination of CDBG and CDBG-CV funds, the City partnered with three local
nonprofits and provided rental assistance to 29 low-income households who suffered documented
income loss due to COVID-19. Of the three nonprofits, one was fully funded through the CDBG-CV funds,
the other two were funded through the PY2020 CDBG annual formula grant.
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CAPER 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
Additionally, the City continues to fund a fair housing service provider through the CDBG grant. The fair
housing service provider exceeded it annual fair housing goals in FY 2020-21 and provided fair housing
and tenant/landlord mediation services to 17 local residents.
Discuss how these outcomes will impact future annual action plans.
Although, the City will no longer be providing rental assistance through the CDBG funds in the coming
years. However, in FY2021-22, the City has partnered with Rebuilding Together - Peninsula and introduced
a “Safe at Home” Program. Through this program, critical health and safety related home repair needs to
5 low-income homeowners will be provided. Depending on the success of the program, the City may
increase funding and accomplishments for this activity in the coming years.
Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.
Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 0 0
Low-income 0 0
Moderate-income 0 0
Total 0 0
Table 8 – Number of Households Served
Narrative Information
As mentioned above, in FY2020-21, the City partnered with three local nonprofits and provided rental
assistance to 29 households. Of the 29 households, 26 were extremely low income; 2 were low income;
and 1 was moderate income household.
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CAPER 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)
Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending
homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs
The City’s entitlement amount for FY 2020-21 was $501,242. The City had estimated $136,049 in program
income and $213,167 in uncommitted funds from previous years. In total, the City provided $850,458 in
direct CDBG funding, additional $746,413 in CDBG-CV funding and $549,306 in HSRAP funding. The
following details the accomplishments of the CDBG funded subrecipients targeted to benefit persons who
are low income, homeless, or at risk of homelessness.
The City’s entitlement amount for FY 2020-21 was $501,242. The City had estimated $136,049 in program
income and $213,167 in uncommitted funds from previous years. In total, the City provided $850,458 in
direct CDBG funding, additional $746,413 in CDBG-CV funding and $549,306 in HSRAP funding. The
following details the accomplishments of the CDBG funded subrecipients targeted to benefit persons who
are low income, homeless, or at risk of homelessness.
Addressing the emergency shelter and transitional housing needs of homeless persons
The following activity received funding from the City of Palo Alto to provide emergency shelter and/or
transitional housing for homeless persons
LifeMoves – Hotel De Zink, CDBG-CV $ 97,622: Through the Hotel de Zink activity, LifeMoves, offered
longer hours of support to the homeless population of Palo Alto. The hours of operations of the Hotel de
Zink emergency shelter were extended by 55% from 9 pm through 6 am to 5 pm through 7 am. This
allowed these vulnerable clients to have a greater portion of their day in a safe and supportive
environment where they could receive the assistance they so desperately needed. The longer Hotel de
Zink hours; and increased communication via the electronic signage are a few factors attributed to not
having a widespread outbreak of COVID-19 within the Opportunity Services Center and/or Hotel de Zink
emergency shelter. The organization is continuing the extended hours of operations.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: likely to become homeless after being
discharged from publicly funded institutions and systems of care (such as health care facilities,
mental health facilities, foster care and other youth facilities, and corrections programs and
institutions); and, receiving assistance from public or private agencies that address housing,
health, social services, employment, education, or youth needs
The following agencies received funding from the City of Palo Alto to help low income individuals and
families avoid becoming homeless.
Palo Alto Housing Corporation; CDBG $29,931: Alta Housing, formerly known as Palo Alto Housing
Corporation, had on-site counseling services available for the 156 residents of the Single-Room Occupancy
(SRO) Resident Support Program at Alma Place and Barker Hotel. Majority of the residents are low-
income, disabled, elderly, veterans, and formerly homeless adults. Many residents have difficulty
managing daily living skills, such as managing finances, maintaining their heath (mental and physical) and
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CAPER 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
apartments, and getting along with others. Without onsite support, such issues can become so severe
that tenants risk losing their housing.
LifeMoves; Case Management; CDBG $29,932: The organization provided 1:1 case management service
including assistance with housing and job searches, referrals, and mentoring to 66 unduplicated homeless
and/or very low-income Palo Alto residents.
LifeMoves; Rental Assistance Program; CDBG-CV $294,000: LifeMoves provided financial assistance to
eligible households for rent, utilities, and similar types of financial needs to 23 households who were
unable to meet these financial obligations as a result of the COVID-19 emergency. Eligible households in
danger of becoming homeless or losing their homes, utilities or other basic needs were able to remain in
their homes with utilities and other basic services intact through this grant.
Silicon Valley Independent Living Center; Rental Assistance Program; CDBG $75,000: Through this
grant, the organization addressed the short-term needs of four Palo Alto households, at risk of being
displaced by rent increases, utility payments, emergency situations, and other market forces due to Covid-
19. The target population of this activity were the lower income (80% or less AMI) residents with
disabilities, veterans and older adults, aged 55 and over.
YWCA; Rental Assistance Program; CDBG $10,000: Through this grant, the organization promoted safety
and prevent homelessness by providing financial assistance to two Palo Alto households impacted by
domestic violence.
Helping homeless persons (especially chronically homeless individuals and families, families
with children, veterans and their families, and unaccompanied youth) make the transition to
permanent housing and independent living, including shortening the period of time that
individuals and families experience homelessness, facilitating access for homeless individuals
and families to affordable housing units, and preventing individuals and families who were
recently homeless from becoming homeless again
The following agencies received funding from the City of Palo Alto to help homeless persons make the
transition to permanent housing and independent living.
YWCA; Case Management; CDBG $5,000: The YWCA Support Network Program provides domestic
violence support services including counseling, case management, crisis counseling, and legal assistance.
During the program year the Support Network Program provided 25 unduplicated clients with counseling,
therapy and/or legal advocacy services. Crisis Counselors provided crisis line assistance to 33 callers from
Palo Alto that received crisis counseling services.
Silicon Valley Independent Living Center; Case Management; CDBG $11,232: SVILC is highly recognized
for its Housing Workshops. The Housing Workshops cover many important topics such as: credit readiness
and credit repair; types of low-income housing and eligibility; application and interview preparation;
tenant and landlord rights and responsibilities; fair housing and home modifications laws and resources;
security deposit and rental assistance programs; long term services and supports. Through the FY2020-21
CDBG funding, 16 unduplicated Palo Alto residents with disabilities received one-on-one assistance and
developed an independent living plan for housing which resulted in improved accessibility to decent
affordable housing.
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CAPER 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
Project Sentinel; Fair Housing Services; CDBG $37,480: Project Sentinel provided community education
and outreach regarding fair housing law and practices, investigation, counseling and legal referral for
victims of housing discrimination. In total, 17 fair housing complaints were investigated by Project
Sentinel. Twenty One (21) residents were provided individual consultation relating to specific fair housing
questions.
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CAPER 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
Not applicable. The Housing Authority of the County of Santa Clara (HACSC) owns and manages four (4)
public housing units, which are all located in the City of Santa Clara. There is no public housing in Palo
Alto.
Actions taken to encourage public housing residents to become more involved in management
and participate in homeownership
While the majority of their units have been converted to affordable housing stock, HACSC is proactive in
incorporating resident input into the agency’s policy-making process. An equitable and transparent policy-
making process that includes the opinions of residents is achieved through the involvement of two tenant
commissioners, one being a senior citizen, on the HACSC board.
Actions taken to provide assistance to troubled PHAs
Not applicable.
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CAPER 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as
barriers to affordable housing such as land use controls, tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
return on residential investment. 91.220 (j); 91.320 (i)
The City of Palo Alto has undertaken a number of actions to eliminate barriers to the development
of affordable housing including participation in a county-wide effort to provide additional
affordable housing units; programs in the 2014-2023 Housing Element Update to increase the supply of
affordable housing; and the development impact fees for housing.
Housing Trust Silicon Valley (Housing Trust):The Housing Trust, formerly the Housing Trust Fund of Santa
Clara County (HTSCC), was created to provide additional financial resources to address the County’s
affordable housing deficit. The Housing Trust’s mission is to make Silicon Valley a more affordable place
to live. Loans and grants are issued to increase the supply of affordable housing, assist first-time home
buyers, prevent homelessness and stabilize neighborhoods. Palo Alto was among the contributors during
its founding and has continued to allocate funding. A provision was added to ensure the City’s funds be
used exclusively for qualifying affordable housing projects within the City of Palo Alto. The most recent
included $200,000 from the City’s Residential Housing Fund for Fiscal Year 2014/2015.
Participation in the Housing Trust has increased the available housing funding for a number of Palo
Alto Projects as summarized in the table below. In addition, the Housing Trust has invested over
$100,000 assisting 16 households to purchase homes in Palo Alto through its first-time homebuyer
program.
2015-2023 Housing Element Update: The Palo Alto Housing Element, which is part of the
City’s Comprehensive Plan is the chief policy document describing the City’s housing needs and the
policies and programs the City will use to meet those needs. The 2015-2023 Housing Element Update has
been certified by the California State Department of Housing and Community Development.
Development Impact Fees for Housing: The City’s impact fees are comprised of four categories: Housing,
Traffic, Community Facilities, and Parkland Dedication. The City has completed Nexus Studies for
Residential and Commercial Development. The studies served as a basis for an update to both residential
and non-residential housing fees and became effective on June 19, 2017. The housing fee for non-
residential development is $22.69 per square foot for retail and hotel uses. The fee for commercial uses
increased to $39.70 per square foot. The fee rate applies to all net new commercial square footage on a
site. Full payment is required at building permit issuance with some exemptions including hospitals and
convalescent facilities, private education facilities, public facilities and private clubs, lodges and fraternal
organizations.
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CAPER 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table 9: Housing Trust Palo Alto Projects
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j)
The City’s CDBG program diligently works with other purveyors of funding to provide the most value
per dollar. This is actualized by partnering with other City resources such as HSRAP and leveraging
dollars invested in site acquisition for low-income housing with a multitude of other funding sources.
However, Palo Alto is at a disadvantage in removing or eliminating obstacles to meeting underserved
needs due to the consistently shrinking amount of CDBG funds available in recent years. To address this,
the City supplements its CDBG funding with other resources and funds, such as:
• During FY2020-21, the City’s Human Service Resource Allocation Process (HSRAP) provided
approximately $549,306 from the General Fund in support of human services. The HSRAP funds,
in conjunction with the CDBG public service funds, are distributed to local non-profit agencies.
• The Palo Alto Commercial Housing Fund is used primarily to increase the number of new
affordable housing units for Palo Alto’s work force. It is funded with mitigation fees required from
developers of commercial and industrial projects.
• The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s
BMR housing program from residential developers and money from other miscellaneous sources,
such as proceeds from the sale or lease of City property.
• The City’s Below Market Rate Emergency Fund was authorized in 2002 to provide funding on
an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation
and preservation of the City’s stock of BMR ownership units.
• HOME Program funds are available on an annual competitive basis through the State of California
HOME program, and the County’s HOME Consortium.
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j)
Lead poisoning can cause permanent damage to the brain and many other organs, and can result
in reduced intelligence and behavioral problems in young children. More than 80,000 children
younger than 6 years old living in the United States have lead in their blood that is above the level of
concern set by the Centers for Disease Control and Prevention (CDC). A significant number of these
children are in families of low income and are living in old homes with heavy concentration of lead-based
paint and lead-contaminated dust and soil in the environment.
The City’s housing and CDBG staff provides information and referrals to property owners, developers,
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CAPER 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
and nonprofit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house
to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP
hazards. The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated
with City funding. The City also requires that contractors are trained and certified in an effort to decrease
the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated
according to HUD’s Lead Safe Housing Rule 24 CFR Part 35.[1]
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j)
The City, in its continuing effort to reduce poverty, prioritized funding agencies that provide
direct assistance to the homeless and those in danger of becoming homeless. In FY 2020-2021, these
programs included the following:
The Workforce Development Program provided transition from unemployment and homelessness
to regular employment and housing through case management, job training, mentoring, housing,
and transportation assistance. Downtown Streets Team is a nonprofit in the City that works to reduce
homelessness through a “work first” model. Downtown Streets Team utilized their community
connections to provide training and job opportunities to homeless people, specifically in the downtown
area. The Downtown Streets Team connected 26 employers with 21 individuals who were meaningfully
employed.
As mentioned previously, the City provided LifeMoves with $29,932 in CDBG funds in FY2020-21. During
the program year 66 homeless and/or very low-income Palo Alto residents received case management
services including assistance with housing/job search, referral and mentoring
Actions taken to develop institutional structure. 91.220(k); 91.320(j)
The City continues to participate with other local jurisdictions in sharing information and resources
regarding CDBG and other housing programs. Meetings take place on a biweekly basis. Additionally, when
projects are funded by multiple jurisdictions, the jurisdictions involved cooperate in an effort to reduce
duplication of work and reduce project monitoring costs. City staff will continue the following
collaborative efforts to improve institutional structure:
• Joint jurisdiction RFP and project review committees
• Coordination on project management for projects funded by multiple jurisdictions
• HOME Consortium between member jurisdictions for affordable housing projects
Actions taken to enhance coordination between public and private housing and social service
agencies. 91.220(k); 91.320(j)
The City benefits from a strong jurisdiction and region-wide network of housing and community
development partners, such as Regional Housing Working Group and the Continuum of Care (CoC). To
improve intergovernmental and private sector cooperation, the City participated with other local
jurisdictions and developers in sharing information and resources. In addition to the actions listed above,
the City will continue to coordinate with the City’s HSRAP funding efforts to comprehensively address
community needs.
Identify actions taken to overcome the effects of any impediments identified in the
jurisdictions analysis of impediments to fair housing choice. 91.520(a)
The City makes every effort to affirmatively further fair housing in compliance with the adopted
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CAPER 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
Analysis of Impediments. The following is a list of actions taken to affirmatively further fair housing:
• The Department of Housing and Community Development has certified the City’s 2015-2023
Housing Element update.
• The City targeted the majority of its local housing funds to increase and preserve the supply of
affordable housing.
• The Office of Human Services regularly met with the County of Santa Clara Housing Authority to
place homeless individuals with section 8 vouchers.
• Affordable housing information and referral services were provided by the Office of Human
Services
• In a joint effort with the County of Santa Clara and Cities, the City is currently updating its
Assessment of Fair Housing (AFH) Plan. The Palo Alto AFH Plan Is expected to be completed in
Winter/Spring 2021.
During Fiscal Year 2020-21, the City continued to support actions to affirmatively further fair
housing choice through a subrecipient agreement with Project Sentinel, a non-profit organization
dedicated to assisting individuals with housing problems. Project Sentinel responded to and investigated
17 cases of housing discrimination in Palo Alto during the fiscal year. Additionally, 898 Palo Alto residents
and service providers through outreach presentations were provided information relating to fair housing
laws. Finally, 21 low-income Palo Alto residents and/or housing providers were provided extended fair
housing consultation sessions to tenants. In addition, 789 brochures were distributed throughout the City
of Palo Alto to create awareness and information relating to fair housing laws.
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CAPER 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of
the plan and used to ensure long-term compliance with requirements of the programs
involved, including minority business outreach and the comprehensive planning requirements
The City continues to actively monitor all subrecipients and projects ensuring compliance with program
and comprehensive planning requirements. Monitoring involves review of semiannual and annual
performance reports, review of reimbursement requests and submitted backup documentation, agency’s
audit reports etc. Biennial on-site monitoring is carried out for all CDBG subrecipients and consists of
reviewing client files, project objectives and conformance with agreement, administrative management,
financial management/internal controls.
In FY 2020-21, the City completed on-site monitoring of four subrecipients. Since the City operates under
a two-year funding cycle there are some subrecipients that receive funding for two years and are only
required to have one on-site monitoring during this time. However, starting FY2017-18 the City Staff is
conducting annual monitoring of the Downtown Streets Team; Workforce Development Program due to
the large funding amount that the organization receives annually. Typically, subrecipients who have had
trouble implementing projects or have been identified as having compliance issues in a previous
monitoring are selected for the annual monitoring. There were no major deficiencies identified during the
previous monitoring. The City will be conducting on-site monitoring of four subrecipients in Winter 2021.
Additionally, City staff plans to conduct on-site monitoring of three subrecipients funded through 2020
annual formula grant for COVID-19 related activities. Other than the typical monitoring plan that staff
follows, for COVID-19 related activities specifically, review of additional documentation such as self-
certification forms to determine client eligibility, rental application packets etc. will also be reviewed.
The City plans to conduct on-site monitoring of the remaining four subrecipients funded through CDBG
and CDBG-CV, for COVID-19 related assistance, upon completion of the activities. It is expected that the
activities will be completed by Summer 2022 and monitoring will be scheduled in Fall 2022.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to
comment on performance reports.
PY2020 Draft CAPER was made available on the City website:
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Long-Range-
Planning/Community-Development-Block-Grant
for the required 15 days public comment period from September 2 through September 17, 2021. An
advertisement was placed in The Daily Post, a newspaper of general circulation, on September 1, 2021,
advertising the availability of the CAPER for public review and comment. The draft CAPER was posted on
the City’s website on September 1, 2021. Due to COVID-19, copies of the CAPER were made available
electronically. The Palo Alto City Council held a virtual public hearing on September 20, 2021 to discuss
the CAPER and to allow the public an opportunity to comment on the CAPER.
CR-45 - CDBG 91.520(c)
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CAPER 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and
indications of how the jurisdiction would change its programs as a result of its experiences.
Not applicable. The City does not plan to change the CDBG program objectives.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI)
grants?
No
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