HomeMy WebLinkAboutStaff Report 13702
City of Palo Alto (ID # 13702)
City Council Staff Report
Report Type: Action Items Meeting Date: 11/1/2021
City of Palo Alto Page 1
Title: City Council receive an update on Homekey, adopt an amended
resolution (Attachment A) authorizing the City Manager to apply for
California Project Homekey Funds in conjunction with LifeMoves for an 88-
unit emergency shelter project at a portion of the LATP site (1237 North San
Antonio Road), and related direction to staff as appropriate
From: City Manager
Lead Department: City Manager
Recommendation
Staff recommends that City Council adopt an amended resolution (Attachment A) authorizing
the City Manager to apply for California Project Homekey Funds in conjunction with LifeMoves
for an 88-unit emergency shelter project at a portion of the LATP site (1237 North San Antonio
Road).
Background
On September 27, 2021, the City Council adopted a series of actions which enabled staff to
prepare necessary materials with LifeMoves in order to submit an application to the State of
California Housing and Community Development Department for Homekey 2.0 to create an
interim housing shelter in Palo Alto. CMR 13595; Actions taken:
A. Adopt Resolution 9992 declaring an emergency shelter crisis with a one-year deadline
and return to City Council for discussion on renewal;
B. Adopt a resolution authorizing the City Manager to apply for California Project Homekey
funds in conjunction with LifeMoves for an 88-unit emergency shelter project at a
portion of the LATP site (1237 North San Antonio Road);
C. Direct Staff to complete due diligence necessary for the application;
D. Direct Staff to return with necessary actions related to capital and operating costs for
the project and include the City’s portion of the operating expenses as part of the City’s
Long Range Financial Forecasting, taking into account the funding from LifeMoves as a
partner as well as financial support from other agencies (e.g., the State, and Santa Clara
County);
E. Direct Staff to identify the costs associated with moving Green Waste operations within
LATP Area C and to work with LifeMoves to identify funding sources for the relocation;
and
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F. Direct Staff to continue to partner with Valley Water to identify a staging area in
preparation for a purified water plant.
On August 30 and August 9, the City Council discussed services for unhoused residents in Palo
Alto and provided staff direction. Staff report CMR 13521; Minutes for August 30 and CMR
13453; Minutes for August 9.
On April 5, the City Council conducted a study session (no action taken) to review the services
and partnerships currently offered in partnership with the City for unhoused residents and
discussed future potential needs. CMR 12133; Minutes.
Discussion
Staff continues to work diligently with the City’s partner on this project, LifeMoves, to prepare
all materials needed for the Homekey 2.0 application. The California Department of Housing
and Community Development (HCD), which administers the Homekey program, is requiring
additional information to be submitted with the application in contrast to the process last year
for Homekey 1.0. Staff is in regular communication with HCD and has conducted the pre-
application meeting with them which allows the City to submit an application once all of the
materials are ready.
In continuing the application preparation process, staff and LifeMoves continue to get more
granular with the project costs as well as the projected operating costs. Staff received the
updated operating and capital expenses and will be reviewing them with LifeMoves and will
supplement this report with an updated spreadsheet of operating and capital expenses no later
than October 28. For the operating expenses, the City will establish a path to set a target of
funds to commit over the seven (7) year period and will work with LifeMoves on a fundraising
and cost management strategy.
Staff included an amended resolution (Attachment A) for consideration by the City Council
reflecting the updated capital expense total of up to $26 million, of which $21.1 million is
anticipated from the Homekey grant. A private donor has pledged support for LifeMoves’
Homekey projects with $5 million to the capital costs of such projects as well. The increased
capital expenses from the previous resolution are from:
- Added contingency funding ($2.5 million) for various construction and design
- Added solar to the project (estimated at $1 million)
- Recalculation of the capital cost for the family units. Given the size, the family units
should have been costed as the equivalent of two single units. This equates to
approximately $4.8 million additional capital expenses.
- Added funds for the relocation of GreenWaste to another part of the parcel.
Also noteworthy, in continuing fundraising for this project, LifeMoves has been in touch with
the Palo Alto Community Fund, which has committed $100,000 over 2 years towards operating
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expenses (Attachment B). This is a great example of community partners eager to participate
on this large project for the residents of Palo Alto.
Attachments:
• Attachment14.a: Attachment A: Updated Resolution to Apply for Project Homekey
2021
• Attachment14.b: Attachment B: PA Community Fund Letter, 2021
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*NOT YET APPROVED*
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0160056_20211021_ay16
RESOLUTION NO. ______
A RESOLUTION OF THE CITY OF PALO ALTO AUTHORIZING JOINT
APPLICATION TO THE PROJECT HOMEKEY PROGRAM (REVISED)
R E C I T A L S
A. WHEREAS, the Department of Housing and Community Development (Department) has
issued a Notice of Funding Availability (NOFA), dated September 9, 2021, for the Homekey
Program (“Homekey” or “Homekey Program”). The Department has issued the NOFA for
Homekey grant funds pursuant to Health and Safety Code (HSC) Section 50675.1.3
(Assembly Bill No. 140 (2021-2022 Reg. Session)); and
B. WHEREAS, the City of Palo Alto (Co-Applicant) desires to jointly apply for Homekey grant
funds with LifeMoves (Corporation). Toward that end, Co-Applicant is joining Corporation
in the submittal of an application for Homekey funds (Application) to the Department for
review and consideration; and
C. WHEREAS, the City Council for the City of Palo Alto adopted Resolution No. 9993 on
September 27, 2021, authorizing a joint application with LifeMoves for Homekey grant
funds and now wishes to update the projected grant request and budget based on new
information; and
D. WHEREAS, the Department is authorized to administer Homekey funds pursuant to the
Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of
Division 31 of the Health and Safety Code). Homekey funding allocations are subject to
the terms and conditions of the NOFA, the Application, the Department approved STD
213, Standard Agreement (Standard Agreement), and all other legal requirements of the
Homekey Program;
NOW, THEREFORE, the City Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Co-Applicant is hereby authorized and directed to submit a joint Application
to the Department in response to the NOFA, dated September 9, 2021, and to jointly apply for
Homekey grant funds in a total amount not to exceed $26 million. That amount includes $21.1
million for capital expenditures (as allowed under Health and Safety Code, Section 50675.1.3 and
$3.52 million for a capitalized operating subsidy (as allowed under Health and Safety Code,
Section 50675.1.3).
SECTION 2. If the Application is approved, the City Manager, on behalf of Co-Applicant,
is hereby authorized to ensure that any funds awarded for capital expenditures are spent within
8 months of the date of award and that any funds awarded for capitalized operating subsidies
are spent by June 30, 2026.
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*NOT YET APPROVED*
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0160056_20211021_ay16
SECTION 3. If the Application is approved, Co-Applicant is hereby authorized to enter
into, execute, and deliver a Standard Agreement in a total amount not to exceed $26 million, any
and all other documents required or deemed necessary or appropriate to secure the Homekey
funds from the Department and to participate in the Homekey Program, and all amendments
thereto (collectively, the “Homekey Documents”).
SECTION 4. Co-Applicant acknowledges and agrees that if the Application is approved, it
shall be subject to the terms and conditions specified in the Standard Agreement, and that the
NOFA and Application will be incorporated in the Standard Agreement by reference and made a
part thereof. Any and all activities, expenditures, information, and timelines represented in the
Application are enforceable through the Standard Agreement. Funds are to be used for the
allowable expenditures and activities identified in the Standard Agreement.
SECTION 5. Ed Shikada, City Manager, or their designees, are authorized to execute the
Application and the Homekey Documents on behalf of Co-Applicant for participation in the
Homekey Program.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ _____________________________
Assistant City Attorney City Manager
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BOARD OF DIRECTORS
Bruce Gee, President
Susan Bailey
Becky Beacom
Diane Downend
Leonard Ely
Steve Emslie
Kristine S. Erving
Masha Fisch
Anne Frahn
Karen French Neuman
Peter Gifford
Sheryl Klein
Kully Kooner
Fred Mondragon
Eliane Neukermans
Sigrid Pinsky
Missy Reller
Rob Roskoph
Jane Rytina
Diana Walsh
Anna Waring
Lanie Wheeler
Lauren Williams
ADVISORY BOARD
Mandy Lowell, Co-Chair
Michael Trigg, Co-Chair
Pastor Paul Bains
Melissa Baten Caswell
Annette Bialson
Enoch Choi
Catherine Crystal Foster
Anne Dauer
Ann DeBusk
Karen Douglas
Peter Fortenbaugh
Carol C.Friedman
Susie Hwang
Scott Joachim
Mark Johnsen
Wissy Ludwick
Beth Martin
Cindy Miller
Karen Nierenberg
Steve Player
Karen Ross
Lynne Russell
Anne Taylor
Dave Thorton
Cammie Vail
October 14, 2021
City of Palo Alto
Attn: Ed Shikada, City Manager, Mayor Tom DuBois and City Council members
250 Hamilton Avenue
Palo Alto, CA 94301
Dear Mr. Shikada, Mayor DuBois and City Council members:
We are writing today on behalf of the Palo Alto Community Fund (PACF) Board of Directors to
express our full support of the application of the City of Palo Alto and LifeMoves for Project
Homekey Palo Alto (supportive interim housing). PACF has committed $100,000 in funding to
be distributed to LifeMoves at $50,000 per year over two years in 2022 and 2023.
This funding is contingent upon approval of the application by the State of California.
The mission of PACF is to focus on the unique needs of our community and channel the
charitable giving of local donors to effective organizations that improve the quality of life for
everyone in Palo Alto, East Palo Alto and Menlo Park.
In 2020, PACF launched our inaugural Dave Mitchell Impact Grants in memory of longtime
community leader, Dave Mitchell. In 2021, PACF proactively awarded grants to local nonprofit
organizations focused on youth mental health, extremely affordable housing, and COVID-19
vaccine equity. This multi-year grant will be a PACF Dave Mitchell Impact Grant.
Since the start of the pandemic, the City of Palo Alto has worked diligently to collaborate with
key community partners to respond quickly to provide for the health and safety of residents
and employees. At PACF, we are grateful to the City staff for their leadership on Project
Homekey Palo Alto. We will continue to support the City and LifeMoves in their efforts
however possible.
Our Board of Directors is honored and eager to join this effort to respond to the homelessness
and housing crisis exacerbated by the COVID-19 pandemic. PACF strongly supports Project
Homekey Palo Alto and looks forward to partnering with the City of Palo Alto and LifeMoves on
this critical project.
Sincerely,
DIRECTORS EMERITI
Marti deBenedetti
Betsy Gifford
Bill Reller
Charles Schulz
Roger Smith
Maddy Stein
EXECUTIVE DIRECTOR
Lisa Van Dusen
Lisa Van Dusen
Executive Director
Bruce Gee
President, Board of Directors
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