HomeMy WebLinkAboutStaff Report 14143
City of Palo Alto (ID # 14143)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/20/2022
City of Palo Alto Page 1
Summary Title: CDBG FY 2023 Annual Action Plan & Substantial Amendment
to FY2021 Annual Action Plan
Title: PUBLIC HEARING: Adoption of the Community Development Block
Grant Funds (CDBG) Fiscal Year 2022-23 Annual Action Plan and Adoption of
a Resolution Approving Use of CDBG Funds for FY 2022-23; Approval of a
Substantial Amendment to the CDBG Fiscal Year 2020-21 Annual Action Plan
and Adoption of an Associated Resolution; and Budget Amendment in the FY
2023 Operating Budget in the CDBG Fund
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
A. The Human Relations Commission (HRC) and staff recommend City Council take the
following actions:
1. Adopt the draft Fiscal Year 2022-23 Annual Action Plan (Attachment A) and the
associated resolution (Attachment B) allocating Community Development Block
Grant (CDBG) funding for Fiscal Year 2022-23;
2. Authorize the City Manager to execute the Fiscal Year 2022-23 CDBG application to
fund the Fiscal Year 2022-23 Annual Action Plan and any other necessary documents
concerning the application, and to otherwise bind the City with respect to the
applications and commitment of funds; and
3. Authorize staff to submit the Fiscal Year 2022-23 Annual Action Plan (Attachment A)
to U.S. Department of Housing and Urban Development (HUD) by the July 12, 2022
deadline.
B. Staff recommend City Council take the following actions:
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1. Approve CDBG Substantial Amendment to the Fiscal Year 2020-21 Annual Action
Plan to reallocate $194,501 of CDBG-CV funding to two new projects;
2. Adopt a Resolution (Attachment C) reallocating CDBG-CV funding as recommended
in the above action and as described in this report; and
3. Authorize staff to submit CDBG Substantial Amendment to the Fiscal Year 2020-2021
Annual Action Plan to HUD.
4. Approve and authorize the City Manager to accept $653,168 in grant funding from
the U.S. Department of Housing and Urban Development (HUD)
5. Approve an amendment to the Fiscal Year 2023 Operating Budget Appropriation for
the Community Development Block Grant Fund (requires 2/3 approval) by:
a. Increasing the revenue estimate by $847,669; and
b. Increase expense appropriations by $761,307; and
c. Increase estimated ending fund balance by $86,362.
Executive Summary:
This report discusses two distinct actions for the CDBG program, one for the adoption for the
FY2023 Annual Action Plan and one for the approval of a Substantial Amendment to the FY2021
Annual Action Plan (AAP).
FY2023 Annual Action Plan
The City is preparing for its second year of a two-year CDBG funding cycle for FY2023. On March
10, 2022, the HRC reviewed the eligible programs and recommended the funding allocations for
each project as reflected in the draft AAP (Attachment A). The Council is requested to review
the draft FY2023 AAP and approve the recommended funding allocations identified in the
document. Council’s approval of the AAP will be recorded by Resolution, see Attachment B.
The CDBG federal appropriations for FY2023 were released by the U.S. Department of Housing
and Urban Development (HUD) on May 13, 2022. The total amount available for allocation in
FY2023 is $653,168, which includes the City’s entitlement grant ($513,168) and estimated
program income ($140,000).
FY2021 Annual Action Plan Substantial Amendment
The City was informed by the CDBG subrecipient LifeMoves that they no longer needed the
remaining funds allocated to them in fiscal year 2020-21. These funds supported a Rental
Assistance Program and specifically came from CDBG-Coronavirus (CDBG-CV) grants. The
remaining funds total $194,501 Staff investigated other funding opportunities for eligible
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CDBG-CV activities for the reallocation of the $194,501. The staff recommendation is to fund
$160,300 for Move Mountain View to support a safe parking program and $34,201for
LifeMoves to administer a COVID-19 testing program.
Background:
The CDBG program, administered by HUD, provides annual grants on a formula basis to states,
cities, and counties. These grants are allocated to develop viable urban communities by
providing decent housing, a suitable living environment, and by expanding economic
opportunities, principally for low- and moderate-income persons. The HUD regulations require
all CDBG funded activities to meet one of the three national objectives listed below:
1. Benefit low-and very-low-income persons;
2. Aid in the prevention or elimination of slums or blight; or
3. Meet other community development needs having particular urgency or posing a
serious and immediate threat to the health or welfare of the community.
The Palo Alto CDBG program has primarily been focused on meeting the first objective of
benefiting low- and very-low-income persons. The applications recommended for funding are
consistent with this objective. For general information on the CDBG program, please visit:
https://www.hudexchange.info/programs/cdbg-entitlement/.
Consolidated Plan & Annual Action Plan
HUD requirements include the preparation of a five-year strategic plan of action, referred to as
a Consolidated Plan. This plan addresses priority housing and community development needs
and sets goals for attaining identified objectives. Currently, Palo Alto’s CDBG program is guided
by the 2020-2025 Consolidated Plan1 adopted by Council in 2020. Every year, an AAP is
prepared to identify the specific projects to be funded by the CDBG program; these projects
must further the implementation of the Consolidated Plan strategies. As Council reviews the
proposed projects and recommends funding allocations, consistency with the Consolidated Plan
goals is a primary consideration.
Annual Action Plan Amendments
Under specific circumstances, when the City’s CDBG funding situation changes, amendments to
the AAP may be required. There are two types of amendments:
1. Minor Amendments: Changes to a previously adopted Consolidated Plan or
Annual Action Plan that does not meet the thresholds to qualify as a Substantial
Amendment. Minor amendments are typically processed at a staff level.
12020-2025 Consolidated Plan:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=49340.42&BlobID=79655
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2. Substantial Amendments:
(a) A change in the use of CDBG funds from one eligible activity to another;
(b) The implementation of an activity not previously identified in sufficient detail to
provide affected citizens an opportunity to submit comments; or
(c) A change in an activity’s program budget which exceeds ten percent of the
City’s latest annual entitlement grant; and
(d) Staff seeks Council approval for substantial amendments.
The recommendations for the reallocation of $194,501CDBG-CV funds require a Substantial
Amendment, which is explained in more detail in the Discussion section below.
FY2023 Application Review Process
Funding applications for “Public Improvements and Facilities” projects were made available on
December 13, 2021. A notice of funding availability (NOFA) was published in the Palo Alto
Weekly on December 13, 2021, with completed applications due by January 14, 2022. A
mandatory pre-proposal conference was conducted on January 7, 2022, to assist applicants
with program regulations and project eligibility questions. For FY2023, the second year of a
two-year funding cycle, the City did not receive any new funding applications for Public
Improvements and Facilities projects.
Typically, when new applications are received, the initial step in the review process is the
determination that the applications are compliant with HUD’s eligible activities2 and National
Objectives.3 This process involves staff reviewing the application materials and communicating
with the applicant as needed to clarify details in the application.
For FY2022 (year one of funding cycle), the City approved eight funding applications. Seven of
those projects were carried over into the 2022-23 CDBG program year. These seven projects
were reviewed on February 24, 2022, by the HRC Selection Committee who made the initial
project funding recommendations to the full HRC. At the regularly scheduled public hearing on
March 10, 2022, the HRC made the funding recommendations reflected in the draft AAP for
Council consideration. Once adopted, the AAP will be submitted to HUD by the deadline (July
12, 2022) as the last step in the process.
Annual Action Plan Citizen Participation
2 CDBG Matrix Codes:
https://files.hudexchange.info/resources/documents/Matrix-Code-Definitions.pdf
3 CDBG National Objectives:
https://www.hudexchange.info/sites/onecpd/assets/File/CDBG-National-Objectives-Eligible-Activities-Chapter-
3.pdf
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As per HUD’s regulations and the City’s adopted Citizen Participation Plan4, the City must
ensure adequate citizen participation in the CDBG funding process. Prior to the submission of
the AAP to HUD, the City must hold two public hearings; one hearing, followed by a 30-day
circulation and public comment period, followed by one more public hearing.
The HRC meeting on March 10, 2022 served as the first public hearing, and the City Council
meeting on June 20, 2022 will serve as the second public hearing. After the presentation of the
draft FY2023 AAP (Attachment A) to the HRC, the AAP was circulated for public review and
comments for a required 30-day period that began on April 2, 2022, and concluded on May 2,
2022. Due to unforeseen changes in circumstance with one subrecipient (i.e. Downtown Streets
Team), the AAP was modified and recirculated for public comment from May 20, 2022 through
June 20, 2022. At the time of this report, staff did not receive any public comments on the draft
AAP.
HRC Review - Recommended Allocation for FY2023
At the time of the HRC review, the CDBG federal appropriations for FY2023 was not known. For
budgeting purposes, staff estimated the City’s HUD Entitlement Grant for FY2023 based on a
10% reduction from the FY2022 entitlement grant. The estimated total amount available for
allocation in FY2023 was $665,459, which included the entitlement grant, program income, and
previous year’s resources. The recommended allocations continue to address housing and the
needs of housing-insecure individuals and households. For more information, please review the
associated report for the meeting.
On March 10, 2022, the HRC considered the funding recommendations of the HRC Selection
Committee and voted 4-1 to recommend Council approve the draft FY2023 AAP. The HRC
discussed the estimated funding allocations based on program budget, availability of additional
resources, the federal spending caps, and total available CDBG funds. The HRC inquired about
the criteria that was used by the Selection Committee for funding recommendations.
Additionally, since the City’s CDBG grant amount was not known at the time of the meeting,
HRC recommendations were based on estimated allocations and a funding contingency plan as
follows:
If the City receives additional funds beyond the estimated allocation, the HRC supports
the funding contingency plan to (1) allocate additional funds to projects within the
Public Services to match what was funded this year (FY2022), and (2) allocate
4 Adopted Citizen Participation Plan 2020:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=51199.36&BlobID=79447
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additional un-capped funds to the 50-unit low-income housing project at 525 E.
Charleston Road, with the following modifications:
a. For the programs in the Public Services category, Project Sentinel shall be
given first priority for full funding to match FY2022 allocation, and
b. Staff shall consider additional funding for Rebuilding Together Peninsula.
The FY2023 allocation amounts have been updated based on the HRC’s recommendations and
updated funding sources and are summarized in the Discussion section of this report. At the
time of this report no minutes were available online but a video recording is available for
viewing: HRC Meeting - March 10, 2022 - YouTube.
Discussion:
This report section is divided into the two topics, one for the FY2023 AAP and the other for the
FY2021 AAP Substantial Amendment.
FY2023 Annual Action Plan
Summaries of the FY2023 CDBG grant amount, project funding categories, and proposed
allocations are provided below.
Funds Available for Allocation in FY2023
The CDBG federal appropriations for FY2023 was received on May 13, 2022. The total amount
available for allocation in FY2023 is $653,168, which includes the entitlement grant and
estimated program income, as summarized below in Table 1. The recommended allocations
continue to address housing and the needs of housing-insecure individuals and households.
Table 1: Summary of FY2023 CDBG Funding
FY2022-2023 Entitlement Grant $513,168
Estimated Program Income in FY2022-23 from Alta Housing
generated from loan repayments and rental income in excess of
expenses on specific properties acquired or rehabilitated with
CDBG funds $140,000
Total Available for Allocation $653,168
CDBG Funding Categories and Funding Applications
The CDBG program has five primary activity areas to allocate funds to: (1) Public Services, (2)
Planning and Administration, (3) Economic Development, (4) Housing Rehabilitation, and (5)
Public Improvements and Facilities. Federal regulations limit the amount that can be spent on
two categories: planning and administration and public services. No more than 20% of the City’s
entitlement grant and estimated program income for the following year can be spent on
planning and administration. Similarly, there is a maximum spending cap of 15% of the grant
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allocation and 15% of any program income received during the previous fiscal year on the
public services category. The amount available to allocate in each of the activity area is
summarized below.
Table 2: CDBG Funding Categories and Allocation Amounts
Funding Categories Allowed Allocation
Public Services (15% cap) $97,975
Planning and Administration (20% cap) $130,633
Economic Development, Housing Rehabilitation, and Public
Improvements and Facilities (un-capped) $424,560
Total Available for Allocation $653,168
Recommended Changes to “Public Services” and “Planning and Administration” Categories
In past years, the Planning and Administration funding category was used to cover both the
City’s administration cost (part-time staff and consultants) and fund Project Sentinel (Fair
Housing Services). In November 2021, the part-time CDBG position became vacant, and City
began using consultant services (Michael Baker International) to fully manage the program for
the City. With this staffing change, and because the program administration is fully funded by
the CDBG grant, additional budget is needed to maintain the program administration. In past
years, the City’s administration allocation has been approximately $99,000. For this coming
fiscal year, staff is requesting $121,816for the City’s program administration. $86,362 dollars is
programmed in the FY 2023 budget, which is subject to City Council approval through the
annual budget process.
With the City’s administration role requiring more funding, the level of funding for Project
Sentinel must be reduced from the Planning and Administration category. Because of Project
Sentinel’s program activity, fair housing services, they are also eligible to be funded from the
Public Services category, which is what is recommended. Adding Project Sentinel to the Public
Services category does, however, impact the funding for the other service providers; allocations
must be split between five providers instead of four.
Downtown Streets Team/Workforce Development Program
Since the HRC meeting and recommendation on the allocations, some concerns have arisen
about the eligibility of the Downtown Streets Team (DST) program for program funding. To
qualify for the recommended $160,477 allocation in the Economic Development category, DST
must maintain a Community Based Development Organization (CBDO) status – this is a HUD
requirement for funding in the un-capped Economic Development category (otherwise the
program could be funded from Public Services). In order to qualify as a CBDO, Downtown
Streets must meet specific characteristics required by HUD:
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1. Is an association or corporation organized under State or local law to engage in community
development activities (which may include housing and economic development activities)
primarily within an identified geographic area of operation within the jurisdiction of the
recipient; and
2. Has as its primary purpose the improvement of the physical, economic, or social
environment of its geographic area of operation by addressing one or more critical
problems of the area, with particular attention to the needs of persons of low and
moderate income; and
3. May be either non-profit or for-profit, provided any monetary profits to its shareholders or
members must be only incidental to its operations; and
4. Maintains at least 51 percent of its governing body's membership for low- and moderate-
income residents of its geographic area of operation, owners or senior officers of private
establishments and other institutions located in and serving its geographic area of
operation, or representatives of low- and moderate-income neighborhood organizations
located in its geographic area of operation; and
5. Is not an agency or instrumentality of the recipient and does not permit more than one-
third of the membership of its governing body to be appointed by, or to consist of, elected
or other public officials or employees or officials of an ineligible entity; and
6. Requires the members of its governing body to be nominated and approved by the general
membership of the organization, or by its permanent governing body; and
7. Is not subject to requirements under which its assets revert to the recipient upon
dissolution; and
8. Is free to contract for goods and services from vendors of its own choosing.
However, if an organization does not meet one of the criteria set forth by HUD, the
organization along with the City can file for an exemption. The exemption would describe how
the organization can still undertake the activities but may not meet one or more of the
requirements of a CBDO. Downtown Streets requested for the City to support an exemption.
This process takes time and based on staff’s engagement with HUD on the matter, approval is
uncertain.
The proposed FY2023 allocations still include the DST program with the provision that DST’s
CBDO status is confirmed by August 31, 2022. There is some risk to the City in making this
allocation if the CBDO status is not assured or the exemption is not granted. The risk to the City
is a potential reduction in future CBDG funding if the City is not able to disburse a specified
percentage of federal funds within a certain timeframe. For this reason, staff recommends a
deadline to DST to either comply with the CBDO program requirements or obtain an exemption
(which the City is working with DST to obtain). In the event resolution is not provided by the
deadline, staff will seek another eligible program to fund.
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In any event, staff will not provide any CBDG reimbursement payments until the CBDO status
has been validated by HUD.
Allocations
With the changes described above about the administration allocation, the strategy for funding
for the Public Service providers was to allocate funds to match the FY2022 allocations (or get as
close as possible). As recommended in the HRC motion above, priority was given to funding
Project Sentinel first. Of the five programs, with the recommendation provided in the AAP,
three would match the FY2022 allocation amounts, while two would receive a reduction. See
Table 3 for details.
The HRC included in their motion to consider additional funds for the Rebuilding Together
Peninsula program. Staff reviewed the programs existing progress and checked in with the
program representatives; additional funding for this program does not seem warranted at this
time. The program can work with the proposed allocation amount to meet their goals.
There are seven programs recommended for FY2023 allocations that are summarized in the
Table 3 below. Detailed descriptions of the funding recommendations and agencies are
provided in Attachments A and B. Please note that the City does have to apply for the
administration funding to manage the program.
Table 3: Summary of Applications and Funding Recommendations
Agency/Program Name
FY 2022
Funded
Amount
FY 2023
Recommended
Amount
Public Services
Alta Housing – SRO Resident Support $24,535 $22,413
Catholic Charities/ Ombudsman Program for the rights of
seniors in long term care facilities. $10,000 $10,000
LifeMoves (formerly Inn Vision)/Opportunity Services Center $31,545 $26,660
Silicon Valley Independent Living Center/Housing and
Emergency Services $14,020 $14,021
Project Sentinel/Fair Housing Services n/a $24,881
Public Services Total (Not to Exceed $97,975) $80,100 $97,975
Planning & Administration
City of Palo Alto/CDBG Administration $99,304 $121,816*
Project Sentinel/Fair Housing Services $33,698 $8,817
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Planning & Administration Total (Not to Exceed $130,633) $133,002 $130,633
Economic Development
Downtown Streets Team/Workforce Development Program $160,477 $160,477
Economic Development Total $160,477 $160,477
Rehabilitation
Rebuilding Together Peninsula/ Critical health and safety
related home repair needs for low-income homeowners. $73,135 $73,135
Mitchell Park – 525 E. Charleston – Affordable Housing
(Construction) n/a $190,948
Rehabilitation Total $73,135 $264,083
New CDBG-CV Allocation
MOVE Mountain View – Safe Parking Program n/a $160,300
LifeMoves – COVID-19 Testing Program n/a $34,201
New CDBG-CV Allocation Total n/a $194,501
GRAND TOTAL $847,669
*Of the total FY 2023 administration expenses, $86,362 is already programmed as salary and
benefit and allocated charge expenses in the CDBG Fund, subject to the approval of the FY 2023
Operating Budget by the City Council.
Substantial Amendment to FY2021 Annual Action Plan
This section includes information on the CARES Act, AAP amendments, and recommended
CDBG-CV funding allocations.
CARES Act
The United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) on March 27, 2020. The CARES Act expedites the use of CDBG funds to prevent
and respond to COVID-19. Through the CARES Act, the City received a total of $746,413 in
two separate grant allocations. These funds are to be used specifically for responding to the
COVID- 19 pandemic.
On June 15, 2020, Council allocated a portion of the first allocation of CARES Act funding
(CDBG-CV1) in the amount of $294,900 to LifeMoves to provide rental assistance to eligible
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low-income Palo Alto families (i.e. 80% Area Media Income and below) who have suffered
documented income loss due to COVID-19. Of this amount, LifeMoves was able to spend
$99,499.50, and is now giving the remaining $194,501back to the City to reallocate.
To ensure the expedited use of the CARES Act funds, HUD requires all grantees to expend at
least 80% of all the CDBG-CV funds by October 27, 2023; the remaining 20% funds are
available to use through FY2026. The City anticipates meeting the 80% expenditure
requirement with the funding of the two projects noted below.
The City received separate CARES Act funding from the State of California that was allocated
to areas of public safety and other department responses to the pandemic (CMR 11596).
AAP Substantial Amendments
There are two activities noted below that trigger a Substantial Amendment to the FY2021 AAP.
Project Cancelled/Funds Returned
The approved FY2021 AAP included funding of $294,000 for a project by LifeMoves. This project
was for their Rental Assistance Program that provided households that have been financially
affected by the COVID-19 pandemic with direct monetary assistance to pay for rent in order to
keep them housed. In a letter dated May 3, 2022, LifeMoves informed the City that they were
returning the funds because of a decrease in the need for COVID related rental assistance and
the inability to expend the funds in a timely manner. This project was part of Resolution No.
9893 adopted by the Council on June 15th, 2020.
In accordance with the CDBG guidelines and City’s adopted Citizen Participation Plan, the
withdrawal of a project as described above requires a Substantial Amendment to the AAP to
show that the funds have been returned on a certain project and reallocated. See Table 4 for
the recommended reallocation.
Recommended Funding Allocations
Staff communicated with two organizations under the public services category to develop new
programs to fund with CDBG-CV, MOVE Mountain View for their Safe Parking Program and
LifeMoves for their COVID-19 Testing Program. Based on the available funding and proposed
programs, staff has prepared funding recommendations described below and identified in Table
4.
MOVE Mountain View - Safe Parking Program
Staff Recommendation: Fund $160,300
MOVE Mountain View (MMV) is the lead agency operating Safe Parking Programs in Palo Alto
and Mountain View. They have been serving the homeless and marginalized vehicle-dwellers in
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the area since June 2018. The program provides reserved off-street parking for participants, as
well as permanent housing solutions through intensive case management. MMV operates four
24/7 RV Safe Parking lots and three Congregational Safe Parking locations. The total capacity of
these lots in Palo Alto and Mountain View is 109 vehicles.
The Palo Alto site associated with this funding is the Geng Road Safe Parking Lot. There are 12
RV safe parking spaces with eight spaces for client commuter car parking. A unique resource on
this lot is the presence of two buildings housing a library, laundry, kitchen, showers, and office
spaces. These services provide great benefits for the clients in the program. MMV would like
CDBG-CV funding to add staffing and help pay for utilities. The Safe Parking Program will assist
at least 100 persons over a course of a year.
The expansion of services made possible by Palo Alto CDBG-CV funding will serve clients
referred to Safe Parking in Palo Alto. The estimated 40+ client caseload will be managed by a
full-time Case Manager dedicated to Palo Alto clients. In addition, the Case Manager will be the
liaison between the Palo Alto Unified School District (PAUSD) and safe parking resources for
unhoused families. The Case Manager will also reinforce street outreach efforts to unhoused
persons in Palo Alto. The free laundry and showers supported by this grant add to available
direct services to Safe Parking clients. This increased use of the facility will require a Lot
Manager dedicated to Palo Alto clients to supervise, organize, and monitor the Safe Parking
Program at that site. Additionally, a Coordinator for Volunteers is needed to help manage and
carry out the volunteer program.
MOVE Mountain View is requesting CDBG-CV funds from the City of Palo Alto in the amount
of $160,300 to cover the following costs:
Case Manager: $79,061
Facilities Manager: $32,895
Coordinator for Volunteers: $24,172
Utilities: $24,172
Total $160,300
LifeMoves - COVID-19 Testing Program (at the Opportunity Services Center)
Funding Recommended: $34,201
LifeMoves needs an effective way to test clients in a drop-in setting effectively and quickly for
COVID-19. They are requesting $34,201in CDBG-CV funding to purchase approximately 450
Cue Health Tests that test for COVID-19 and deliver accurate results in 20 minutes. Tests can
be administered to qualifying residents at any time that the Opportunity Services Center is
open, whether the client is symptomatic or asymptomatic.
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In general, Cue’s test is the most accurate COVID-19 self-test on the market. In a clinical study
with lay users, the Cue COVID-19 Test for Home and Over The Counter (OTC) Use
demonstrated sensitivity of 97% (% positive agreement) and specificity of 99% (% negative
agreement). Importantly, the study showed the test was 100% accurate in people infected
with the virus who were asymptomatic.
LifeMoves is requesting CDBG-CV funds from the City of Palo Alto in the amount of
$34,200.50 to cover the following costs:
• Purchase of CUE Tests: $34,201
Table 4: CDBG-CV Reallocation Funding Recommendations1
Agency Old CDBG-
CV Allocation
New CDBG-
CV Allocation Total Funding
Allocation
Public Services
MOVE Mountain View - Safe Parking
Program $0 $160,300 $160,300
LifeMoves - COVID-19 Testing Program $0 $34,201 $34,201
Total $0 $194,501 $194,501
Policy Implications:
All programs recommended for funding for the FY2023 AAP and FY2021 AAP Substantial
Amendment are consistent with the priorities established in the City’s adopted 2020-2025
Consolidated Plan.
Resource Impact:
FY2023 AAP - As per HUD’s regulations, up to 20% of the total CDBG funding can be used for
the CDBG program administration. The City relies on the annual grant funding to pay for the
staff that administers the CDBG program. As described above, for FY2023 staff is requesting
additional funding within the HUD allocation to support the program administration. These
additional funds are needed to pay for a consultant to manage the program. If the City does not
have enough CDBG funding to cover all of the administrative costs necessary to properly run
the program, it may require assistance from the General Fund to make up the difference and
staff would return to City Council with that request.
Additionally, staff is requesting City Council approval of a cost neutral budget amendment to
increase both revenue and expense to support FY 2023 CDBG activity of $847,669. This action
increases revenues by $847,669, which includes FY 2023 program revenue of $653,168 and
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$194,501 from FY 2020-21 allocation which was not spent. This action also increases expenses
by $761,307, which will augment $86,362 of expenses already programmed in the FY 2023
budget, which is subject to City Council approval through the annual budget process, for a total
expense appropriation in the CDBG Fund of $847,669. The actions recommended in this report
will allow for the distribution of this grant funding.
FY2021 AAP Substantial Amendment - Staff is requesting City Council reallocate existing CDBG-
CV funding from one project to two new projects to allow for the distribution of this grant
funding. There are no anticipated resource impacts associated with this action.
Timeline:
The funding recommendations made by the City Council will be incorporated into the FY2023
AAP. Subsequently, the adopted FY2023 AAP will be submitted to HUD by the July 12, 2022,
deadline. The consequence of submitting the AAP late to HUD is a delay in City receiving funds
for reimbursement to the programs.
Stakeholder Engagement:
Prior to the submission of the FY2023 AAP to HUD, the City must hold two public hearings; one
hearing, followed by a 30-day circulation and public comment period, followed by one more
public hearing.
The HRC meeting on March 10, 2022, served as the first public hearing, and the City Council
meeting on June 20, 2022 will serve as the second public hearing. After the presentation of the
draft FY2023 AAP to the HRC, the AAP was posted on the City’s webpage for public review and
comments for a required 30-day period that began on April 2, 2022 and concluded on May 2,
2022. Due to unforeseen changes in circumstances with one subrecipient (i.e. Downtown
Streets Team), the AAP was modified and reposted for public comment from May 20, 2022
through June 20, 2022. At the time of this report, staff did not receive any public comments on
the draft AAP.
The FY2021 AAP Substantial Amendment was also posted for a 30-day public comment period
from May 20 through June 20, 2022. The City Council meeting on June 20, 2022 is the
respective public hearing for this item.
For both the FY2023 AAP and the FY2021 AAP Substantial Amendment, the City published a
notice on May 2, 2022 in the Daily Post. The notice informed the public of the June 20 public
hearing and the 30-day public review comment period; information was also posted on the
City’s CDBG webpage and via email blasts to stakeholders.
Environmental Review:
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For purposes of the National Environmental Policy Act (NEPA) and the California Environmental
Quality Act (CEQA), budgeting by itself is not a project. Prior to commitment or release of funds
for each of the proposed projects, staff will carry out the required environmental reviews or
assessments and certify that the review procedures under CEQA, HUD and NEPA regulations
have been satisfied for each project.
Attachments:
Attachment A - Draft Fiscal Year 2022-23 Annual Action Plan (DOCX)
Attachment B - Fiscal Year 2022-23 CDBG Resolution (DOCX)
Attachment C - FY 2020-21 CDBG-CV Substantial Amendment Resolution (DOCX)
Attachment D - MOVE Mountain View Safe Parking Program Project Details (DOCX)
Attachment E - LifeMoves COVID-19 Testing Program Project Details (DOCX)
Attachment F - Draft FY2021 CDBG-CV Substantial Amendment (DOCX)
PUBLIC COMMENT PERIOD
May 20, 2022 – June 20, 2022
ADMINISTERED BY: PLANNING AND DEVELOPMENT SERVICES
FISCAL YEAR 2022-23
ANNUAL ACTION PLAN
DRAFT 05/27/2022
1
Table of Contents
Executive Summary ...........................................................................................................................2
AP-05 Executive Summary - 91.200(c), 91.220(b) .................................................................................... 2
The Process ................................................................................................................................................... 5
PR-05 Lead and Responsible Agencies - 91.200(b) ................................................................................... 5
AP-10 Consultation - 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(I) ............................... 7
AP-12 Citizen Participation - 91.105, 91.115, 91.200(c) and 91.300(c) .................................................. 17
Expected Resources .................................................................................................................................... 20
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) ........................................................................... 20
Annual Goals and Objectives ...................................................................................................................... 23
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)and(e) .......................................................... 23
AP-35 Projects - 91.420, 91.220(d) ......................................................................................................... 25
AP-38 Project Summary .......................................................................................................................... 26
AP-50 Geographic Distribution - 91.420, 91.220(f) ................................................................................. 32
P-75 Barriers to affordable housing -91.420, 91.220(j) .......................................................................... 33
AP-85 Other Actions - 91.420, 91.220(k) ................................................................................................ 35
Program Specific Requirements .................................................................................................................. 38
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) .......................................................... 38
Appendices
Appendix A
Appendix B
Appendix C
2
Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2022-23 One Year Action Plan contains the City’s one-
year plan to carry out housing and community development activities funded by Federal formula
grant funds received from the U.S. Department of Housing and Urban Development (HUD),
Community Development Block Grant (CDBG) program. This Action Plan covers the third of five
program years covered by the City’s 2020-2025 Consolidated Plan which was adopted by the Palo
Alto City Council on June 15, 2020.
The Department of Planning and Development Services is the lead agency for the Consolidated
Plan and submits the Annual Action Plan for the City’s CDBG program.
HUD requires entitlement jurisdictions to submit an Annual Action Plan to report the distribution
of federal entitlement grant funds over the Consolidated Plan’s five-year period identifying how
funding allocations help meet the goals covered in the Consolidated Plan.
The CDBG federal appropriations for FY2022-2023 were released by HUD on May 13, 2022. The
total amount available for allocation in FY2022-2023 is $653,168, which includes the entitlement
grant ($513,168) and program income ($140,000), and is available for funding projects and
programs during the 2022 Program Year.
The City’s Action Plan covers the time period from July 1, 2022, to June 30, 2023, (HUD Program
Year 2022). The City’s FY 2022-23 Action Plan reports on the status of needs and outcomes the
City expects to achieve in the coming year. All of the activities mentioned in this Action Plan are
based on current priorities. By addressing these priorities, the City hopes to meet those
objectives stated in the 2020-2025 Consolidated Plan. All the proposed projects and activities are
intended to principally benefit residents of the City who have extremely low-, low- and moderate-
income, and populations that have special needs, such as the elderly, disabled, and homeless.
Summary of the objectives and outcomes identified in the Plan
The City is part of the San Francisco Metropolitan Bay Area, located 35 miles south of San
Francisco and 14 miles north of San José. The City is located within the County of Santa Clara,
borders San Mateo County, and encompasses an area of approximately 26 square miles, one-
third of which consists of open space1.
________________________
1 U.S. Census Bureau:
https://www.census.gov/quickfacts/fact/table/paloaltocity
3
According to Quick facts data provided by the U.S. Census Bureau1, the City's total resident
population is 68,572, per the Census on April 1, 2020. The City has the most educated residents
in the country and is one of the most expensive cities to live in. In Silicon Valley, the City is
considered a central economic focal point and is home to over 9,483 businesses.
The Action Plan provides a summary of how the City will utilize its CDBG allocation to the meet
the needs of the City’s lower income population. According to the U.S. census data, 6.1% of all
residents within the City had incomes below the federal poverty level.
Additionally, according to the 2019 Point in Time Homeless Census2, there are 299 unsheltered
homeless individuals living within the City of Palo Alto. This number represents an increase of
17% from the 256 individuals that were counted in 2017.
As mentioned previously, a total of $653,168 is available for funding projects and programs
during FY2022-23. In FY 2022-23 the City received $513,168 from the federal CDBG program
and approximately $140,000 in program income. Table 1, “Fiscal Year 2023 CDBG Budget” below
summarizes the uses of the funds proposed during FY 2022-23.
Table 1: Fiscal Year 2023 CDBG Budget
Applicant Agency Allocation
Public Services
Alta Housing - SRO Resident Supportive Services $22,413
Catholic Charities of Santa Clara County – Long Term Care Ombudsman $10,000
LifeMoves – Case Management at Opportunity Center $26,660
Silicon Valley Independent Living Center – Case Management Services $14,021
Project Sentinel – Fair Housing Services $24,881
Sub-total $97,975
Planning and Administration
City of Palo Alto Administration $121,816
Project Sentinel/Fair Housing Services $8,817
Sub-total $130,633
Economic Development
Downtown Streets – Workforce Development Program $160,477
Sub-total $160,477
2 South County Homeless Census and Survey Comprehensive Report:
https://www.sccgov.org/sites/osh/ContinuumofCare/ReportsandPublications/Documents/2015%20Santa%20Clara%20County%20
Homeless%2 0Census%20and%20Survey/2019%20SCC%20Homeless%20Census%20and%20Survey%20Report.pdf
4
Public Facilities and Improvement
Mitchell Park – 525 East Charleston Project $190,948
Sub-total $190,948
Housing Rehabilitation
Rebuilding Together Peninsula $73,135
Sub-total $73,135
Grand Total $653,168
Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee (the City) to choose its
goals or projects.
The City is responsible for ensuring compliance with all rules and regulations associated with the
CDBG entitlement grant program. The City’s Annual Action Plans and Consolidated Annual
Performance and Evaluation Reports (CAPER) have provided many details about the goals,
projects and programs completed by the City. A review of past CAPERs reveals a strong record of
performance in the use of CDBG funds. For example, during the 2015-2020 Consolidated Plan
period, 244 affordable rental units were rehabilitated, 130 jobs were created or retained, and
nearly 2,600 households were assisted through public service activities for low- and moderate-
income housing.
The City evaluates the performance of subrecipients on a semiannual basis. Subrecipients are
required to submit semiannual progress reports, which include client data, performance
objectives, as well as data on outcome measures. Prior to the start of the program year, program
objectives are developed collaboratively by the subrecipient and the City, ensuring that they are
aligned with the City's overall goals and strategies. The City utilizes the semiannual reports to
review progress towards annual goals.
Summary of citizen participation process and consultation process
The City solicited input throughout the development of the FY 2022-23 Annual Action Plan. As
required by HUD, the City provides multiple opportunities for public review and comment on the
Action Plan and on any substantial amendments to it. Per the City’s adopted Citizen Participation
Plan, the City held a 30-day public review comment period for the Action Plan. The City published
notifications of upcoming public hearings and the 30-day public review comment period in a local
newspaper of general circulation, on the City’s CDBG webpage and via email blasts to stake
holders. The City held two advertised public hearings on March 10, 2022, and May 20, 2022. The
Action Plan 30-day public review period occurred from May 20, 2022, through June 20, 2022.
Summary of public comments [To be updated after close of comment period]
There were no public comments received during the public review period.
5
Summary of comments or views not accepted and the reasons for not accepting them [To be
updated after close of comment period]
There were no public comments received during the public review period. The City accepts and
responds to all comments that are submitted. As mentioned above, no public comments were
received regarding the FY2022-23 Action Plan.
Summary
Please see above.
6
The Process
PR-05 Lead and Responsible Agencies - 91.200(b)
Describe agency/entity responsible for preparing the Consolidated Plan and those responsible
for administration of each grant program and funding source
The following are the agencies/entities responsible for preparing the Consolidated Plan and those
responsible for administration of each grant program and funding source.
Table 2: Responsible Agencies
Agency Role Name Department/Agency
CDBG Administrator Palo Alto City of Palo Alto: Department
of Planning and
Development Services
Narrative
The City is the Lead and Responsible Agency for the United States Department of Housing and
Urban Development’s (HUD) entitlement programs in Palo Alto. The Department of Planning and
Development Services is responsible for administering the City’s CDBG program. The City joined
the HOME Consortium in 2015 and receives federal HOME Investment Partnership (HOME) funds
through the County.
Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from
HUD. HUD requires the City to submit a five-year Consolidated Plan and Annual Action Plan to HUD
listing priorities and strategies for the use of its federal funds.
The Consolidated Plan helps local jurisdictions to assess their affordable housing and community
development needs and market conditions to meet the housing and community development
needs of its populations. As a part of the Consolidated Plan process for 2020-2025, the City
collaborated with the County of Santa Clara (County) as the Urban County representing the cities
of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga; the
cities of Cupertino, Gilroy, Mountain View, Sunnyvale, San José, and Santa Clara; and the Santa
Clara County Housing Authority (SCCHA) to identify and prioritize housing and community
development needs across the region, and to develop strategies to meet those needs. The FY
2022-23 Annual Action Plan represents the third year of CDBG funding of the 2020-2025
Consolidated Plan.
7
Consolidated Plan Public Contact Information
Clare Campbell, Manager of Long Range Planning
City of Palo Alto
Department of Planning and Development Services
250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
E-mail: clare.campbell@cityofpaloalto.org
Phone: (650) 617-3191
8
AP-10 Consultation - 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(I)
Introduction
The Action Plan is a one-year plan which describes the eligible programs, projects, and activities
to be undertaken with funds expected during FY 2022-23 and their relationship to the priority
housing, homeless and community development needs outlined in the 2020-25 Consolidated
Plan.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health, and
service agencies (91.215(I)).
During Fiscal Year 2022-23, the City will continue to work with non-profit organizations to provide
programs and services for low-income households; private industry, including financial and
housing development groups, to encourage the development of affordable housing
opportunities regionally and within the City; and other local jurisdictions, including the County of
Santa Clara, in carrying out and monitoring regional projects in a coordinated and cost-effective
manner. The City will provide technical assistance to the public service agencies it funds with
CDBG dollars and will continue to attend the biweekly Regional CDBG/Housing Coordinators
meetings.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless persons (particularly chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth) and persons at risk of homelessness
The Santa Clara County Office of Supportive Housing is the administrator of the regional
Continuum of Care (CoC). The City’s Office of Human Services Manager is in contact with the
Santa Clara County Office of Supportive Housing and Destination Home regarding issues of
homelessness in the community. The Santa Clara County CoC is a group comprising of
stakeholders throughout the County, including governmental agencies, homeless service and
shelter providers, homeless population, housing advocates, affordable housing developers, and
various private parties, including businesses and foundations.
City staff attend a bi-weekly CDBG/Housing Coordinator meeting. Members of the CoC meet
monthly to plan CoC programs, identify gaps in homeless services, establish funding priorities,
and pursue a systematic approach to addressing homelessness.
The CoC is governed by the CoC Board, which takes a systems-change approach to preventing
and ending homelessness. This same CoC Board is comprised of the same individuals who serve
on the Destination: Home (Destination Home) Leadership Board. Destination Home is a public-
9
private partnership that is committed to collective impact strategies to end chronic
homelessness.
Regional efforts of the CoC include the development of The Community Plan to End
Homelessness, which identifies strategies to address the needs of people experiencing
homelessness in the County, including chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth. The plan also addresses the needs of persons at
risk of homelessness. The new community plan to end homelessness can be viewed at
https://destinationhomesv.org/community-plan.
Also, during the development of the 2020-25 Consolidated Plan, the City consulted both the CoC
and County Office of Supportive Housing for their expertise and experience for identifying
community needs.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in
determining how to allocate ESG funds, develop performance standards and evaluate
outcomes, and develop funding, policies, and procedures for the administration of HMIS
The City is not an ESG entitlement jurisdiction and therefore does not receive ESG funds.
However, the City does administer federal grant programs that help homeless and low-income
families in Santa Clara County. The City also helps fund and conduct the Point in Time (PIT) count,
the biennial regional collaborative effort to count and survey people experiencing homelessness.
The latest count and survey were conducted on February 24, 2022. The data from the 2022
County of Santa Clara PIT count is used to plan, fund, and implement actions for reducing chronic
homelessness and circumstances that bring about homelessness.
The Santa Clara County Office of Supportive Services takes the role of Homeless Management
Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly
to operate and oversee HMIS. Both software and HMIS system administration are now provided
by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara,
and the City of San Jose. The County’s HMIS is used by many City service providers across the
region to record information and report outcomes.
Describe Agencies, groups, organizations, and others who participated in the process and
describe the jurisdictions consultations with housing, social service agencies and other entities
Table 3: Agencies, Groups, Organizations Who Participated
1 Agency/Group/Organization Boys and Girls Clubs of Silicon Valley
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
10
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Santa Clara focus group
meeting on 11/7/19 as part of the 2020-25
Consolidated Plan process.
2 Agency/Group/Organization Healthier Kids Foundation Santa Clara County
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Santa Clara focus group
meeting on 11/7/19 as part of the 2020-25
Consolidated Plan process
3 Agency/Group/Organization Community Services Agency
Agency/Group/Organization Type Services-Elderly Persons
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation
conference call on 11/15/19 as part of the
2020-25 Consolidated Plan process
4 Agency/Group/Organization San Jose Conservation Corps Charter
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Gilroy focus group meeting
on 11/18/19 as part of the 2020-25
Consolidated Plan process
11
5 Agency/Group/Organization CommUniverCity San Jose
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation
conference call on 11/25/19 and regional
forum meeting in San Jose on 11/20/19 as part
of the 2020-25 Consolidated Plan process.
6 Agency/Group/Organization The Health Trust
Agency/Group/Organization Type Services-Persons with Disabilities
Services-Persons with HIV/AIDS
Services-Health
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation on
11/21/19 as part of the 2020-25 Consolidated
Plan process
7 Agency/Group/Organization Rebuilding Together, Silicon Valley
Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Strategic plan and needs assessment
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation
conference call on 11/21/19 and San Jose
regional forum on 11/20/19 as part of the
2020-25 Consolidated Plan process
8 Agency/Group/Organization City of Cupertino
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was contacted for consultation as a
partner in addressing the needs of the County
as part of the 2020-25 Consolidated Plan
process
12
9 Agency/Group/Organization City of Gilroy
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was consulted and provided emailed
feedback as part of the 2020-25 Consolidated
Plan process
10 Agency/Group/Organization City of Mountain View
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Palo Alto on 11/7/19 as part of the 2020-25
Consolidated Plan process
11 Agency/Group/Organization Bill Wilson Center
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Santa Clara focus group
meeting on 11/7/19, community meetings on
11/4/19 at Morgan Hill and 11/20/19 at
Roosevelt as part of the 2020-25 Consolidated
Plan process
12 Agency/Group/Organization Heart of the Valley
Agency/Group/Organization Type Services-Elderly Persons
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was consulted through interview
questions. Agency provided emailed feedback
as part of the 2020-25 Consolidated Plan
process
13
13 Agency/Group/Organization City of San Jose
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency was contacted for consultation as a
partner in addressing the needs of the County
as part of the 2020-25 Consolidated Plan
process
14 Agency/Group/Organization City of Morgan Hill
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 as part of the 2020-25
Consolidated Plan process
15 Agency/Group/Organization City of Sunnyvale
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Palo Alto on 11/7/19 and provided emailed
feedback as part of the 2020-25 Consolidated
Plan process
16 Agency/Group/Organization Servant Partners
Agency/Group/Organization Type Neighborhood Organization
Neighborhood Organization
What section of the Plan was addressed by
Consultation?
Needs Assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Attended community meeting on 11/13/19 at
Hillview library as part of the 2020-25
Consolidated Plan process
14
17 Agency/Group/Organization Senior Adults Legal Assistance (SALA)
Agency/Group/Organization Type Service-Fair Housing
Legal
What section of the Plan was addressed by
Consultation?
Needs assessment and strategic plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended Palo Alto and San Jose public
engagement meeting on 11/17/19 and
11/19/19, regional forum meeting on 11/4/19
at Morgan Hill and 11/7/19 at Palo Alto as part
of the 2020-25 Consolidated Plan process
18 Agency/Group/Organization HomeFirst
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 as part of the 2020-25
Consolidated Plan process
19 Agency/Group/Organization Santa Clara County Office of Supportive
Housing
Agency/Group/Organization Type Other government - County
Continuum of Care
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 and at Palo Alto on
11/7/19 as part of the 2020-25 Consolidated
Plan process
20 Agency/Group/Organization City of Santa Clara
Agency/Group/Organization Type Other government - Local
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
15
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended regional forum meeting at
Morgan Hill on 11/4/19 and provided emailed
feedback as part of the 2020-25 Consolidated
Plan process
21 Agency/Group/Organization Vista Center for the Blind and Visually Impaired
Agency/Group/Organization Type Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation on
12/9/19 as part of the 2020-25 Consolidated
Plan process
22 Agency/Group/Organization Destination: Home
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended stakeholder consultation on
11/11/19 as part of the 2020-25 Consolidated
Plan process
23 Agency/Group/Organization Community Solutions
Agency/Group/Organization Type Services-Victims of Domestic Violence
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended the AFH and ConPlan joint
meeting on 12/11/19 at the Gilroy Council
Chambers as part of the 2020-25 Consolidated
Plan process
24 Agency/Group/Organization St Mary Parish
Agency/Group/Organization Type Neighborhood Organization
Neighborhood Organization
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
16
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency attended the AFH and ConPlan joint
meeting on 12/11/19 at the Gilroy Council
Chambers as part of the 2020-25 Consolidated
Plan process
25 Agency/Group/Organization Community and Neighborhood Revitalization
Committee - Gilroy
Agency/Group/Organization Type Community Organization
What section of the Plan was addressed by
Consultation?
Needs assessment and Strategic Plan
How was the Agency/Group/Organization
consulted and what are the anticipated
outcomes of the consultation or areas for
improved coordination?
Agency co-hosted the AFH and ConPlan joint
meeting on 12/11/18 at the Gilroy Council
Chambers as part of the 2020-25 Consolidated
Plan process
Identify any Agency Types not consulted and provide rationale for not consulting
Not applicable.
Other local/regional/state/federal planning efforts considered when preparing the Plan
Table 4: Other Local / Regional / Federal Planning Efforts
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with
the goals of each plan?
Continuum of Care Regional Continuum
of Care Council
Identifies housing inventory count to facilitate the
provision of housing services to those experiencing
homelessness.
City of Palo Alto
Housing Element
(2015-2023)
City of Palo Alto Identifies barriers to affordable housing, such as land-
use controls, inefficiencies of the development review
process, and strategies to alleviate such barriers.
2012-2014
Comprehensive HIV
Prevention and Care
Plan
Santa Clara County
HIV Planning
Council for
Prevention and
Care
This plan provides a roadmap for the Santa Clara
County HIV Planning Council for Prevention and Care to
provide a comprehensive and compassionate system of
HIV prevention and care services for the County. This
effort aligns with the Strategic Plan's goal to support
activities that strengthen neighborhoods through the
provision of community services and public
improvements.
17
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with
the goals of each plan?
SCCHA Moving to
Work Annual Plan
Santa Clara County
Housing Authority
Addresses housing authority updates and strategies
pertaining to public housing and vouchers.
Regional Housing
Need Plan for San
Francisco Bay Area
Association of Bay
Area Governments
This plan analyzes the total regional housing need for
the County and all of the Bay Area. This effort aligns
with the Strategic Plan's goal to assist in the creation
and preservation of affordable housing.
Community Plan to
End Homelessness in
Santa Clara
Destination: Home The Community Plan to End Homelessness in the
County is a five-year plan to guide governmental actors,
nonprofits, and other community members as they
make decisions about funding, programs, priorities and
needs. This effort aligns with the Strategic Plan's goal to
support activities to end homelessness
Palo Alto's
Infrastructure:
Catching Up, Keeping
Up, and Moving
Ahead
City of Palo Alto
Infrastructure Blue
Ribbon Plan
This plan details recommendations for infrastructure
maintenance and replace, as well as identifies potential
sources of funding. This effort aligns with the Strategic
Plan's goal to support activities that strengthen
neighborhoods through the provision of community
services and public improvements
City of Palo Alto
Comprehensive Plan
(2030)
City of Palo Alto This plan is the primary tool for guiding future
development in Palo Alto. It provides a guide for long-
term choices and goals for the City future. This effort
aligns with the Strategic Plan's goal to support activities
that strengthen neighborhoods through the provision
of community services and public improvements
Narrative
Please see above.
18
AP-12 Citizen Participation - 91.105, 91.115, 91.200(c) and 91.300(c)
Summary of citizen participation process/Efforts made to broaden citizen participation.
Summarize citizen participation process and how it impacted goal-setting
The Planning and Development Services Department is the lead agency for overseeing the
development of the Consolidated Plan and Action Plan. Per the City’s adopted Citizen
Participation Plan, the City is to allow a 30-day public review and comment period for the Action
Plan. The City has published notifications of upcoming public hearings and the 30-day public
review comment period in the local newspaper of general circulation, on its CDBG webpage and
via email blasts. The City held two advertised public hearings on March 10, 2022, and June 20, 2022.
The Action Plan 30-day public review comment period occurred from May 20, 2022, through June
20, 2022. The City has not received any public comments to-date.
Citizen Participation Outreach
Table 5: Citizen Participation Outreach
Mode of
Outreach
Target of
Outreach
Summary of
response
Summary of
comments
received
Summary of
comments not
accepted/reason
Public Hearing Nontargeted/ The Human Two members of All comments
broad Relations the public were accepted.
community Commission met provided
on March 10, comments on the
2022 to discuss funding
the FY2022-23 allocation. Three
funding members
allocations and representing three
review the draft funding
FY2022-23 applicants
Annual Action provided
Plan comments at the
meeting.
Public Hearing Nontargeted/
broad community
The City Council
met on June 20,
2022, to discuss
the FY2022-23
funding
allocations and
adopt the draft
FY2022-23 AAP.
Update After
Meeting
Update After
Meeting
19
Mode of
Outreach
Target of
Outreach
Summary of
response
Summary of
comments
received
Summary of
comments not
accepted/reason
Newspaper Ad Nontargeted/
broad community
Notice of Human
Relations
Commission Public
Hearing and Public
Comment period
on the First Draft
FY2022-23 CDBG
Funding
Allocations was
published in the
Daily Post on
February 24,
2022.
Two members of
the public
provided
comments on the
programs being
funded.
Newspaper Ad Nontargeted/
broad community
Notice of Public
Hearing and Public
comment period
on the Second
Draft AAP was
published in the
Daily post on April
2, 2022 and May
20, 2022
Update if
comments
received
Website Nontargeted/
broad
community
Draft AAP
FY2022-23
posted at:
Update if
comments
received
https://www.cityofp
aloalto.org/CDBG
20
Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY2022-23, the City will allocate $653,168 to eligible activities that address the needs identified
in the Consolidated Plan. It should be noted that while the HUD CDBG allocations are critical, the
allocations are not sufficient to overcome barriers and address all needs that low- income
individuals and families face in attaining self-sufficiency. The City will continue to leverage
additional resources as described below to provide support and services to the populations in
need within the community. The following section discusses the anticipated resources available
for community development activities during the next remaining three years of the City’s 5-Year
Consolidated Plan.
Anticipated Resources
Table 6: Expected Resources FY2022-23 – Priority Table
Source
of
Funds
Uses of
Funds
Expected Amount Available Year 2 Narrative
Description Program: CDBG
Annual
$
Program
Income:
$
Prior
Year: $
Total:
$
Public -
Federal
Admin and
Planning
Economic
Development
Housing
Public
Improvement
Public
Services
513,168
140,000
0
653,168
CDBG funds will
be used for the
creation and
preservation of
affordable
rental units,
improvements
in lower income
neighborhoods,
and public
services that
benefit low
income and
special needs
households
21
Explain how federal funds will leverage those additional resources (private, state, and
local funds), including a description of how matching requirements will be satisfied
Entitlement Funds
Leverage, in the context of the CDBG and HOME Investment Partnerships Program (HOME),
means bringing other local, state, and federal financial resources to maximize the reach and
impact of the City’s HUD Programs. HUD, like many other federal agencies, encourages the
recipients of federal monies to demonstrate that efforts are being made to strategically leverage
additional funds in order to achieve greater results.
The City joined the Santa Clara County's HOME Consortium in 2015 and does not receive federal
HOME funds on an entitlement basis from HUD. The HOME Consortia consists of the cities of
Cupertino, Gilroy, Palo Alto, and the Urban County. HOME funds can be used to fund eligible
affordable housing projects for acquisition, construction, and rehabilitation. Starting in FY 2015-
16 developers of affordable housing projects were eligible to competitively apply through an
annual RFP process directly to the County for HOME funds to help subsidize affordable housing
projects in Palo Alto. Applications will be directly submitted through the County's request for
proposal process for available HOME funds. Certain nonprofit organizations known as
Community Housing Development Organizations (CHDOs) may also apply for funding from State
HCD for housing projects located within Palo Alto. The City received one HOME grant from 1992
HOME funding for the Barker Hotel project. Proceeds from HOME loan repayments must be
deposited into a HOME Program Income Fund and used in accordance with the HOME program
regulations.
In addition, the County will only fund a project that has the local support of the City. If the City
receives HOME dollars from its participation in the HOME consortium, the required 25%
matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of
two sub-funds: The Commercial Housing Fund and the Residential Housing Fund. To date, no
projects within the City have been funded through the HOME Consortium. Moving forward, the
City plans to increase outreach to developers in the City to provide additional information on the
HOME Consortium and available funding.
Other State and Federal Grant Programs
In addition to the CDBG entitlement dollars, the federal government has several other funding
programs for community development and affordable housing activities. These include Section 8
Housing Choice Voucher Program, Section 202, Section 811, the Federal Home Loan Bank
Affordable Housing Program (AHP), and others. It should be noted that in most cases the City
would not be the applicant for these funding sources as many of these programs offer assistance
to affordable housing developers rather than local jurisdictions.
The State of California has recently passed approximately 20 bills with the intent of increasing or
preserving affordable housing with the State. According to the Governor’s State of the State
22
address, bills that help increase housing production, both market-rate and affordable, will be a
priority in 2020. The City will continue to track and look for opportunities to leverage State
resources for the City.
Local Housing and Community Development Sources
Other local resources that support housing and community development programs include:
• Palo Alto Commercial Housing Fund, which is for the development of below market rate
(BMR) housing units and paid by mitigation fees on commercial and industrial projects;
and
• Palo Alto Residential Housing Fund, which is for the development of below market rate
(BMR) housing units and paid by miscellaneous funding sources.
The City will continue to seek opportunities for projects that meet local bond requirements in
order to bring additional resources to help the City’s affordable housing shortage.
If appropriate, describe publicly owned land or property located within the jurisdiction that
may be used to address the needs identified in the plan
The City has no surplus public land. However, in 2019, the Governor Newsome signed Executive
Order N-06-19 that ordered the California Department of General Services (DGS) and the
California Department of Housing and Community Development (HCD) to identify and prioritize
excess state-owned property and aggressively pursue sustainable, innovative, cost-effective
housing projects. There is no excess state property in the City of Palo Alto.
Discussion
Please see information provided in previous sections.
23
Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) and(e)
Goals Summary Information – FY2022-23
Table 7: Goals Summary
Goal Name Start End Category Area Needs
Addressed
Fund Goal Outcome
Indicator
Affordable
Housing
2020 2025 Affordable
Housing
Citywide Affordable
Housing
CDBG:
$264,083
Homeowner
Housing
Rehabilitated: 6
Household
Housing Units
Low/Moderate
Income Housing
Benefit: 2077
Persons
Assisted
Homelessness 2020 2025 Homeless Citywide Homelessness CDBG:
$49,073
Public service
activities other
than
Low/Moderate
Income Housing
Benefit: 119
Persons Assisted
Strengthen
Neighborhoods
2020 2025 Non-
Homeless
Special
Needs
Non-Housing
Community
Development
Citywide Community
Services and
Public
Improvements
CDBG:
$24,021
Public service
activities other
than
Low/Moderate
Income Housing
Benefit: 50
Persons
Assisted
24
Fair Housing 2020 2025 Non-Housing
Community
Development
Citywide Fair Housing CDBG:
$33,698
Public service
activities other
than
Low/Moderate
Income Housing
Benefit: 15
Persons Assisted
Economic
Development
2020 2025 Non-Housing
Community
Development
Citywide Economic
Development
CDBG:
$160,477
Jobs
created/retained:
14 Jobs
25
Goal Descriptions
1 Goal Name Affordable Housing
Goal
Description
Assist in the creation and preservation of affordable housing for low income and
special needs households.
2 Goal Name Homelessness
Goal
Description
Support activities to prevent and end homelessness, such as funding affordable
housing opportunities, resource centers for homeless individuals, and support for
tenants of single-room occupancy units.
3 Goal Name Strengthen Neighborhoods
Goal
Description
Provide community services and public improvements to benefit low-income and
special needs households. This includes assisting those with disabilities to
transition from unstable housing to permanent housing, supporting residents of
long-term care facilities, and supporting individuals experiencing domestic
violence.
4 Goal Name Fair Housing
Goal
Description
Promote fair housing choice by funding fair housing organizations to provide fair
housing services, such as education, tenant-landlord mediation, and testing.
5 Goal Name Economic Development
Goal
Description
Support economic development activities that promote employment growth and
help lower-income people secure and maintain jobs. This includes funding
nonprofits working toward developing the skills of low-income and homeless
individuals.
26
AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals below represent high priority needs for the City of Palo Alto (City)
and serve as the basis for the strategic actions the City will use to meet these needs. The goals,
listed in no particular order, are:
1. Assist in the creation and preservation of affordable housing for low income and special
needs households.
2. Support activities to end homelessness.
3. Support activities that strengthen neighborhoods through the provision of community
services and public improvements to benefit low income and special needs households.
4. Promote fair housing choice.
5. Expand economic opportunities for low-income households.
It is important to note, Project Sentinel, whom will be providing fair housing services will be under
two categories, Planning and Administration and Public Services.
Table 8: Project Information
No. Project Name
1. Catholic Charities of Santa Clara County - Long Term Care Ombudsman
2. LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Case Management
3. Alta Housing - Single Room Occupancy (SRO) Support Services
4. Silicon Valley Independent Living Center- Housing and Emergency Services for Persons with
Disabilities
5. Project Sentinel - Fair Housing Services
6. City of Palo Alto - Planning and Administration
7. Downtown Streets Inc. - Workforce Development Program.
8. Rebuilding Together Peninsula – Safe at Home
9. Mitchell Park Place – 525 E. Charleston – 50 Unit Development of Affordable Housing
Describe the reasons for allocation priorities and any obstacles to addressing underserved
needs
The City awards CDBG funding to projects and programs that will primarily benefit low-income,
homeless, and special needs households. The City operates on a two-year grant funding cycle for
CDBG public service grants and a one-year cycle for CDBG capital housing rehabilitation and
public facilities and improvement projects. Projects are only considered for funding within the
Consolidated Plan period if they address the goals discussed above.
27
AP-38 Project Summary
Project Summary Information
1 Project Name Catholic Charities of Santa Clara County: Long Term Care Ombudsman
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $10,000
Description Long-Term Care Ombudsman Program. Eligible Activity (Matrix
Code):05A. CDBG National Objective: LMC
Target Date 6/30/2023
Estimate the
number and type of
families that will
benefit from the
proposed
activities
The program will provide advocacy and complaint investigation for 50
elderly residents of long-term care facilities in Palo Alto.
Location Description Long-term care and skilled nursing facilities throughout the City.
Planned Activities Regular contact with Palo Alto Residential Care Facilities to observe and
monitor conditions of care.
2 Project Name LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Case
Management
Target Area Citywide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $26,660
Description Opportunity Services Center Eligible Activity (Matrix Code):03T CDBG
National Objective: LMC
Target Date 6/30/2023
28
Estimate the number
and type of families
that will benefit from
the proposed
activities
30 unduplicated individuals (homeless and/or very low-income
individuals per year) will receive case management services including
assistance with housing/job searches, referrals and mentoring at the
Opportunity Services Center and Hotel De Zink.
Location Description 33 Encina Way, Palo Alto, CA 94301
Planned Activities Case management services will be provided to Opportunity Services
Center and Hotel De Zink clients in locating housing and/or employment
and be connected to benefits.
3 Project Name Alta Housing
Target Area Residents of Barker Hotel (25 units) and Alma Place (106 units)
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $22,413
Description SRO Resident Support Program. Eligible Activity (Matrix Code):05O
CDBG National Objective: LMC
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
Case management and support counseling services will be provided
to residents of Barker Hotel and Alma Place
Location Description 439 Emerson Street, Palo Alto, CA 94301
735 Alma Street Palo Alto, CA 94301
Planned Activities Alta Housing engages a service coordinator to provide 40 hours weekly
services to provide case management and support counseling services
to residents at Alma Place and Barker Hotel to help them maintain
housing stability. Activities include financial counseling, health
maintenance, information and referral, problem solving, employment
assistance, crisis intervention and case management. Both
Alma Place and Barker Hotel are single-room occupancy facilities.
4 Project Name Silicon Valley Independent Living Center: Housing and Emergency
Housing Services
Target Area Citywide
29
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $14,021
Description Housing and Emergency Housing Services. Eligible Activity (Matrix
Code):05B. CDBG National Objective: LMC
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
27 unduplicated Palo Alto residents will benefit from one-on-one
housing assistance.
Location Description Citywide
Planned Activities Silicon Valley Independent Living Center provides assistance for
individuals with disabilities and their families to transition from
homelessness, health care facilities, unstable or temporary housing to
permanent affordable, accessible, integrated housing with emergency
assistance, security deposits, rent, information, and referral, and other
basic essentials.
5 Project Name Project Sentinel - Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing
Needs Addressed Fair Housing
Funding CDBG: $33,698 ($24,881 Public Services & $8,817 Planning &
Administration)
Description Planning & Administration - Fair Housing Services. Eligible Activity
(Matrix Code):21D. CDBG National Objective: LMC .
Public Service - Fair Housing Services. Eligible Activity (Matrix
Code):05J. CDBG National Objective: LMC.
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
15 unduplicated individuals will be provided with fair housing
services of complaint counseling, investigation, and where
appropriate enforcement referral.
30
Location Description Citywide
Planned Activities Project Sentinel will provide community education and outreach
regarding fair housing law and practices, investigation, counseling, and
legal referral for victims of housing discrimination, and analyses for City
staff and officials regarding fair housing practices. California and federal
fair housing laws assure specific protected classes the right to be treated
in terms of their individual merits and qualifications in seeking
housing. Unfortunately, some people are not aware of the law or their
rights.
6 Project Name City of Palo Alto - Planning and Administration
Target Area Citywide
Goals Supported Affordable Housing
Homelessness
Strengthen Neighborhoods
Fair Housing
Economic Development
Needs Addressed Affordable Housing
Homelessness
Community Services and Public Improvements
Fair Housing
Economic Development
Funding CDBG: $121,816
Description Planning and Administration: CDBG Citation: 570.206(a)
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City will provide general administrative support to the CDBG
program.
Location Description Citywide
Planned Activities Administer the Administrative costs for the overall management,
coordination, and evaluation of the CDBG program, and the project
delivery costs associated with bringing projects to completion.
7 Project Name Downtown Streets Inc. - Workforce Development Program.
Target Area Citywide
Goals Supported Economic Development
31
Needs Addressed Economic Development
Funding CDBG: $160,477
Description Workforce Development Program. Eligible Activity (Matrix Code):
05H. CDBG National Objective: LMC
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
14 unduplicated homeless and unemployed persons will be
placed in jobs through job training/employment readiness
classes and outreach to local employers.
Location Description Citywide
Planned Activities The Workforce Development Program will provide a transition from
unemployment and homelessness to regular employment and housing
through case management, job training, mentoring, housing, and
transportation assistance. Downtown Streets Team will screen and
prepare applicants and will use their community connections to provide
training and job opportunities.
8 Project Name Rebuilding Together Peninsula – Safe at Home
Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $73,135
Description Preserves affordable housing by transforming homes through critical
repairs and accessibility modifications, at no cost to the service
recipient. The majority of the low-income homeowners served will be
elderly seniors and/or people with disabilities, who are physically and
financially unable to maintain safe living conditions for themselves and
their families
Eligible Activity (Matrix Code):14A. CDBG National Objective: LMC
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
4 households
32
Location Description Citywide
Planned Activities Provide home safety repairs, mobility, and accessibility improvements
for low- income households in Palo Alto with the primary consideration
being the correction of safety hazards.
9 Project Name Mitchell Park Place – 525 E. Charleston Road
Target Area N/A
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $190,948
Description Eden Housing is developing 50 units of affordable housing. Approximately
half the units are for persons with disabilities. The parcel is owned by the
County and will be a long-term lease with the developer. The City intends
to use CDBG funding for predevelopment costs as per HUD regulations.
Eligible Activity (Matrix Code):12. CDBG National Objective: LMC
Target Date 6/30/2023
Estimate the number
and type of families
that will benefit from
the proposed
activities
50 Low-Income Households
Location Description 525 E. Charleston Road
Planned Activities Provide affordable housing for persons with disabilities.
33
AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and
minority concentration) where assistance will be directed
The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not
have target areas. Instead, the City focuses its services and capital improvements across the City
as a whole.
Geographic Distribution
Table 9: Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Rationale for the priorities for allocating investments geographically
Not applicable.
Discussion
Please see discussion above.
34
AP-75 Barriers to affordable housing -91.420, 91.220(j)
Introduction
The incorporated and unincorporated jurisdictions within the County face barriers to affordable
housing that are common throughout the Bay Area. High on the list of market barriers is the lack
of developable land, which increases the cost of available lands and increases housing
development costs. Local opposition is another common obstacle as many neighbors have strong
reactions to infill and affordable housing developments. Their opposition is often based on
misconceptions, such as a perceived increase in crime; erosion of property values; increase in
parking and traffic congestion; and overwhelmed schools. However, to ensure a healthy economy
the region must focus on strategies and investment that provide housing for much of the region’s
workforce – for example, sales clerks, secretaries, waiters, baristas, teachers, and health service
workers – whose incomes significantly limit their housing choices.
It should be noted that in a constrained housing supply market, when housing developments
produce housing that is relatively affordable, higher income buyers and renters generally outbid
lower income households. A home’s final sale or rental price will typically exceed the projected
sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low-
and moderate-income households.
Actions it planned 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
Palo Alto is addressing the barriers to affordable housing through:
• Density Bonus Ordinance: The City recently updated its Density Bonus ordinance which
lowered the eligibility requirements to qualify for a higher density bonus percentage up
to 80% as well as providing more exceptions to applicable zoning and development
standards. One significant update is if a 100% affordable development is located within a
half a mile of a major transit stop, the City cannot impose any density limits and entitled
to a maximum height increase of three additional stories or 33 feet.
• Below Market Rate (BMR) Housing Program: Established in 1974, the City’s BMR
requires developers to provide a certain percentage of units as BMR in every approved
project of three units or more. The program originally required that for developments on
sites of less than five acres, the developer must provide 15 percent of the total housing
units as BMR housing units. If the site was larger than five acres, the developer was
required to provide 20 percent of the units as BMR housing. The City of Palo Alto have
historically used in-lieu fees and the use of development impact fees charged on new,
market-rate housing and/or commercial development to finance 100% affordable
developments. The City updated its Commercial and Residential Impact Fee Nexus Studies
35
and adopted two ordinances to make changes to its BMR program and adopted a new fee
structure. The ordinances became effective on June 19, 2017.
• Fair Housing: The City provides funding to Project Sentinel. Project Sentinel provides
expertise in fair housing law and tenant-landlord disputes. Services include information,
referrals, community outreach and education. In addition, Project Sentinel resolve fair
housing complaints via investigation, mediation, education and outreach to both property
owners and tenants about fair housing policies.
• Housing Incentive Program (HIP): Effective May 2, 2019, this Ordinance adopted changes
to the following zoning districts: Citywide – where multifamily uses are permitted,
Multifamily Residential Districts (RM), Downtown (CD-C), California Avenue (CC ((2)), and
El Camino Real (CS and CN).
• Affordable Housing (AH) Combining District: In 2018, The City Council adopted the
Affordable Housing Combining District to provide flexible development standards beyond
the State Density Bonus Law to allow 100% affordable housing projects located in a
commercial zoned area.
• Workforce Housing (WH) Combining District: The City Council also adopted in 2018 the
Workforce Housing Combining District to encourage the development of housing within
half-mile of major fixed rail transit by modifying flexible development standards for the
public facilities (PF) zoning district.
Discussion
Please see above.
36
AP-85 Other Actions - 91.420, 91.220(k)
Introduction
This section discusses the City’s efforts in addressing the underserved needs, expanding, and
preserving affordable housing, reducing lead-based paint hazards, and developing institutional
structure for delivering housing and community development activities.
Actions planned to address obstacles to meeting underserved needs
The diminishing amount of funds continues to be the most significant obstacle to addressing the
needs of underserved populations. To address this, the City supplements its CDBG funding with
other resources and funds, such as:
• In FY2020-21, The City’s Human Service Resource Allocation Process (HSRAP)
provided $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.
Additionally, approximately $50,000 was provided to nonprofit organizations serving Palo Alto
residents with short-term and/or urgent funding to address emergency, critical or emerging
human services needs through the Emerging Needs Fund.
• The Palo Alto Commercial Housing Fund is funded with mitigation fees provided
under Palo Alto’s BMR housing program from developers of commercial and industrial projects
and used to assist new housing development or the acquisition, rehabilitation, or the preservation
of existing housing for affordable housing
• 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 Residential
Housing Fund is used to assist new housing development or the acquisition, rehabilitation, or the
preservation of existing housing for affordable housing.
• 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.
• The Housing Authority of the County of Santa Clara (HACSC) administers the federal
Section 8 program countywide. The program provides rental subsidies and develops affordable
housing for low-income households, seniors and persons with disabilities living within the County.
Actions planned to foster and maintain affordable housing
The City will foster and maintain affordable housing by continuing the following programs and
ordinances:
• The Below Market Rate Emergency Fund which provides 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.
37
• The Commercial Housing Fund and Residential Housing Fund are used to assist new
housing development or the acquisition, rehabilitation, or the preservation of existing housing
for affordable housing.
• The Density Bonus Ordinance adopted by the City Council in January 2014. The
density bonus regulations allow for bonuses of 20 to 35 percent, depending on the amount and
type of affordable housing provided.
• The City’s participation in the County's HOME Consortium will allow developers of
affordable housing projects to be eligible to competitively apply through an annual RFP process
directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto,
including acquisition, construction, and rehabilitation.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides information and referral to property owners,
developers, and non-profit 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 and 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.
Actions planned to reduce the number of poverty-level families
The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide
direct assistance to the homeless and those in danger of becoming homeless. In FY 2022-2023,
these programs will include the following:
• LifeMoves provides basic necessities for persons who are homeless or at risk of becoming
homeless. The Opportunity Services Center is a comprehensive, one-stop, multi-service,
day drop-in center that provides critical services for homeless Palo Alto residents.
Specifically, the facility provides showers, laundry, clothing, snacks, case management,
and shelter/housing referral services.
• Alta Housing will provide counseling and supportive case management services for low-
income residents of single-room occupancy facilities to help them maintain housing
stability. Activities include financial counseling, health maintenance, information and
referral, problem solving, employment assistance, crisis intervention, and case
management.
• Downtown Streets Team works to reduce homelessness through a “work first” model.
Downtown Streets Team uses its community connections to provide training and job
opportunities to homeless people, specifically in the downtown area.
Actions planned to develop institutional structure
The City is striving to improve intergovernmental and private sector cooperation to synergize
efforts and resources and develop new revenues for community service needs and the
production of affordable housing. Collaborative efforts include:
38
• Regular bi-weekly meetings between entitlement jurisdictions at the CDBG Coordinators
Meeting and Regional Housing Working Group.
• Joint jurisdiction Request for Proposals and project review committees.
• Coordination on project management for projects funded by multiple jurisdictions.
• HOME Consortium meetings between member jurisdictions for affordable housing
projects.
Actions planned to enhance coordination between public and private housing and social
service agencies
The City benefits from a strong jurisdiction and region-wide network of housing and community
development partners, such as the County and the Continuum of Care. To improve
intergovernmental and private sector cooperation, the City will continue to participate 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 human
services funding efforts to comprehensively address community needs.
Discussion
Please see discussions above.
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4)
Introduction
The following provides additional information about the CDBG program income and
program requirements.
Community Development Block Grant
Program (CDBG) Reference 24 CFR
91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are
identified in the Projects Table. The following identifies program income that is
available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the
start of the next program year and that has not yet been reprogrammed
$140,000
2. The amount of proceeds from section 108 loan guarantees that will be used
during the year to address the priority needs and specific objectives identified
in the grantee's strategic plan.
0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the
planned use has not been included in a prior statement or plan
0
5. The amount of income from float-funded activities 0
Total Program Income: $ 140,000
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that
benefit persons of low and moderate income. Overall Benefit - A consecutive
period of one, two or three years may be used to determine that a minimum
overall benefit of 70% of CDBG funds is used to benefit persons of low and
moderate income. 100 %
Discussion
Please see discussion above.
APPENDIX A
PUBLIC COMMENTS
The Draft FY2022-23 Annual Action Plan was circulated for Public
Comments and Review from May 20, 2022, through June 20, 2022.
During the 30 days public comment
and review period time, no comments were received
APPENDIX B
PUBLIC HEARING NOTIFICATIONS
APPENDIX C
CDBG APPLICATION FORMS
SF-424 and SF-424D
Certifications
Resolution No. XXXX
Resolution of the City Council of the City of Palo Alto Approving
The Use of Community Development Block Grant Funds for
Fiscal Year 2022-2023
A. On June 15, 2020, the Palo Alto City Council approved and adopted a document entitled
“Consolidated Plan” which identified and established the Palo Alto housing and non-housing community
development needs, objectives and priorities for the period July 1, 2020, to June 30, 2025.
B. The Fiscal Year 2022-2023 Annual Action Plan, the annual funding update to the
Consolidated Plan, was subjected to public review and commentary during the period from May 20,
2022, through June 20, 2022.
C. The potential uses of Community Development Block Grant (CDBG) funds were
evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the
recommendations and comments of the Human Relations Commission Selection Committee, Human
Relations Commission and other interested citizens.
D. Under the CDBG program, the highest priority is given to activities which will benefit
persons with low and moderate incomes.
E. The City Council and the Human Relations Commission have held publicly noticed public
hearings on the proposed uses of the CDBG funds for Fiscal Year 2022-2023.
F. CDBG funds allocated to the City for Fiscal Year 2022-2023 are proposed to implement
the programs described in this resolution.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The uses of CDBG funds for Fiscal Year 2022-2023 are hereby approved and
authorized for the following programs:
Name of Program Amount
1. Alta Housing – SRO Resident Support. Provide in-house
case management and counseling services to residents at
Barker Hotel and Alma Place.
$22,413
2. Catholic Charities of Santa Clara County – Long Term Care
Ombudsman Program. Advocate for the rights of seniors
and disabled residents in long term care facilities.
$10,000
3. LifeMoves – Opportunity Services Center. Provide case
management services to Opportunity Services Center
and Hotel De Zink clients in locating housing and/or
employment and be connected to benefits.
$26,660
4. Silicon Valley Independent Living Center – Housing and
Emergency Services. Provide case management services
to low-income individuals with disabilities to secure
affordable and accessible housing.
$14,021
5. Project Sentinel – Fair Housing Services. Provide fair
housing services including complaint investigation,
counseling, advocacy and community education
$33,698
6. City of Palo Alto Department of Planning and
Development Services– CDBG Program Administration.
$121,816
7. Downtown Streets – Workforce Development Program.
Provide comprehensive support services for homeless/
unemployed to secure employment.
$160,477
8. Rebuilding Together Peninsula – Safe at Home. Provision of
critical health and safety related home repair needs for
low-income Palo Alto homeowners.
9. Mitchell Park Place – 525 E. Charleston Road – Funds are
requested for predevelopment costs for a 50-unit
affordable housing complex. Approximately half of the
units are for persons with disabilities. The parcel is owned
by the County and will be a long-term lease with the
developer, Eden Housing.
$73,135
$190,948
TOTAL $653,168
SECTION 2. The total amount set forth under Section 1 of this resolution represents
the proposed allocation of $513,168, in CDBG funds from the United States Department of Housing and
Urban Development (HUD) for Fiscal Year 2022-2023, and $140,000 in anticipated program income for
Fiscal Year 2022-2023 from Palo Alto Housing Corporation.
SECTION 3. The City staff is hereby authorized to submit the Fiscal Year 2022-2023 Annual
Action Plan, update and appropriate funding to HUD for the Fiscal Year 2022-2023 CDBG funds, and such
money shall be spent as set forth in this resolution. The Mayor, City Manager and any other designated
City staff or officials are hereby authorized to execute such application forms and any other necessary
documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant
agreements with the program providers set forth in Section 1.
SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on
final allocation amounts from the Federal Fiscal Year 2022-23 HUD appropriations; City Staff is
authorized to adjust increasing or decreasing the funding amounts set forth herein as consistent with
the adopted Citizen Participation Plan.
SECTION 5. The City Council hereby finds that the Fiscal Year 2022-2023 CDBG program
authorized under Section 1 of this resolution is not a project under the California Environmental Quality
Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that
may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under
the Fiscal Year 2022-2023 CDBG program prior to the release of funds for any such project.
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INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Sr. Assistant City Attorney Director of Planning and
Development Services
APPROVED AS TO CONTENT:
Director of Administrative Services
CDBG Coordinator
Resolution No. XXXX
Resolution of the Council of the City of Palo Alto
Approving the Substantial Amendment for the use of
Community Development Block Grant Coronavirus Funds for
Fiscal Year 2020-2021
A. On June 15, 2020, the Palo Alto City Council approved and adopted a document entitled
“Consolidated Plan” which identified and established the Palo Alto housing and non-housing community
development needs, objectives, and priorities for the period July 1, 2020 to June 30, 2025.
B. The Substantial Amendment to Fiscal Year 2020-2021 Action Plan, was subjected to
public review and commentary during the period from May 20, 2022 through June 20, 2022.
C. The potential uses of Community Development Block Grant Coronavirus Funds (CDBG-
CV) funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and
reflected in the recommendations and comments of interested citizens.
D. Under the CDBG-CV program, the highest priority is given to activities which will
benefit persons with low and moderate incomes.
E. The City Council have held a publicly noticed public hearing on the proposed uses of the
CDBG-CV funds for Fiscal Year 2020-2021.
F. CDBG-CV funds allocated to the City for Fiscal Year 2020-2021 are proposed to
implement the programs described in this resolution.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The uses of CDBG and CDBG-CV funds for Fiscal Year 2020-2021 are hereby
approved and authorized for the following programs:
Name of Program Amount
1. MOVE Mountain View Safe Parking Program
$160,300
2. LifeMoves COVID-19 Testing Program $34,200.50
TOTAL $194,500.50
SECTION 2. The total amount set forth under Section 1 of this resolution represents
the proposed reallocation of $194,500.50 in CDBG-CV (Coronavirus) funds from the United States
Department of Housing and Urban Development (HUD) for Fiscal Year 2020-2021.
SECTION 3. The City staff is hereby authorized to submit the CDBG-CV Substantial
Amendment to the Fiscal Year 2020-2021 Annual Action Plan, and such money shall be spent as set
forth in this resolution. The Mayor, City Manager and any other designated City staff or officials are
hereby authorized to execute such application forms and any other necessary documents to secure
these funds. The City Manager or designee is authorized to sign all necessary grant agreements with the
program providers set forth in Section 1.
SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on
final allocation amounts from the CARES Act (CDBG-CV) HUD appropriations; City Staff is
authorized to make adjustments increasing or decreasing the funding amounts set forth herein as
consistent with the adopted Citizen Participation Plan.
SECTION 5. The City Council hereby finds that the Fiscal Year 2020-2021 CDBG program
authorized under Section 1 of this resolution is not a project under the California Environmental Quality
Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that
may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under
the Fiscal Year 2020-2021 CDBG and CDBG-CV program prior to the release of funds for any such
project.
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INTRODUCED AND
PASSED: AYES:
NOES:
ABSTENTI
ONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Sr. Assistant City Attorney Director of
Planning and
Development
Services
APPROVED AS TO CONTENT:
Director of Administrative Services
CDBG Coordinator
MOVE Mountain View Safe Parking Program at Geng Road Lot
Overview of MOVE Mountain View
MOVE Mountain View (MMV) is the lead agency operating Safe Parking Programs in
Palo Alto and Mountain View , California. We have been serving the homeless and
marginalized vehicle-dwellers in the area since June 2018.
MMV collaborates with local municipalities, the Office of Supportive Housing Santa
Clara County, local faith communities, and other area social services providers. The
program provides reserved off-street parking for participants, as well as permanent
housing solutions through intensive case management. MMV operates four 24/7 RV
Safe Parking lots and 3 Congregational Safe Parking locations. The total capacity of
these lots in Palo Alto and Mountain View is 109 vehicles. 159 vehicle dwellers are
currently enrolled in the program.
Since the Geng Road lot in Palo Alto opened in February of 2021, 50% of client
households have been placed in safe housing or other interim housing. MMV expects
this percentage to rise as more safe housing options are developed by the state of
California.
The Geng Road Safe Parking Lot is where MMV will utilize the grant. There are 12 RV
safe parking spaces with 8 spaces for client commuter car parking. A unique resource
on this lot is the presence of two buildings. A library, laundry, kitchen, showers, and
office spaces will create many options for service to the clients in the program.
Congregations in Palo Alto have been enthusiastic about collaborating with MMV in
the safe parking program. Since the Geng Road lot opened, the Highway Community
Church and the Unitarian Universalist Church in Palo Alto have opened their lots to
provide safe parking for 4 cars each. Currently, two more Palo Alto congregations are
in process for permits to provide safe parking.
The Impact of this Grant
The expansion of services made possible by this grant will serve clients referred to Safe
Parking in Palo Alto. The estimated 40+ client caseload will be managed by a full-time
Caseworker dedicated to Palo Alto clients. In addition, the caseworker will be the
liaison between PAUSD and safe parking resources for unhoused families. The
Caseworker will also reinforce street outreach efforts to unhoused persons in Palo Alto.
The free laundry and showers supported by this grant add to available direct services
to Safe Parking clients. This increased use of the facility will require a Lot Manager
dedicated to Palo Alto clients to supervise, organize, and monitor the Safe Parking
Program at that site. MOVE Mountain View plans to assist at least 100 Palo Alto
persons through the Safe Parking Program.
Metrics
MMV’s goals for the upcoming program year are to continue to place clients into safe
permanent housing. MMV projects a 10% increase in the number of placements. MMV
will report client demographic data such as age, ethnic self-identification, income level,
language preference, number of shelter nights provided, and statistics about
placement outcomes. In addition, MMV tracks and will continue to record the impact
of COVID-19 on the clients we serve. Vehicle dwellers in our community are impacted
by reduced access to PPEs, inadequate sanitation, and infrequent medical care. Many
vehicle dwellers have lost employment due to COVID shutdowns of businesses. Their
school-aged children have been challenged by lack of internet access and special needs
resources. All MMV programs are administered under the COVID protocols for shelters
as directed by the Santa Clara Health Department. As a result, there is low incidence of
COVID-19 infections among the clients on the lots.
Budget
MOVE Mountain View will use CDBG-CV funds from the City of Palo Alto in the
amount of $160,300 to cover the following costs:
• Case Manager: $79,061
• Facilities Manager: $32,895
• Volunteer Coordinator: $24,172
• Utilities: $24,172
Total $160,300
LifeMoves COVID-19 Testing Program at their Opportunity Services
Center
LifeMoves needs an effective way to test clients and staff that work in a drop-in setting
effectively and quickly for COVID-19. They are requesting $34,200.50 in CDBG-CV
funding to purchase approximately 450 CUE Health Tests that test for COVID-19 and
deliver accurate results in 20 minutes. They can be administered to anyone at any time
that the Opportunity Services Center is open, whether the client is symptomatic or
asymptomatic.
In general, Cue’s test is the most accurate COVID-19 self-test on the market. In a clinical
study with lay users, the Cue COVID-19 Test for Home and Over The Counter (OTC) Use
demonstrated sensitivity of 97% (% positive agreement) and specificity of 99% (%
negative agreement). Importantly, the study showed the test was 100% accurate in
people infected with the virus who were asymptomatic.
LifeMoves will use CDBG-CV funds from the City of Palo Alto in the amount of
$34,200.50 to cover the following costs:
• Purchase of CUE Tests: $34,200.50
Page 1 of 3
CITY OF PALO ALTO - CDBG
ANNUAL ACTION PLAN FY2020-21: CDBG-CV SUBSTANTIAL AMENDMENT
City Council Approved Date, 2022
INTRODUCTION:
The City of Palo Alto’s Annual Action Plan details the funding strategy for the Community
Development Block Grant (CDBG) program each year. Through the Annual Action Plan, the
City implement its Five-Year Consolidated Plan. The City’s Citizen Participation Plan (CPP)
describes the efforts that the City will take to encourage its residents to participate in
developing these plans. It also provides requirements for public process when a “substantial
amendment” to the Annual Action Plan is proposed. The following changes constitute a
substantial amendment and require public notice as described in the CPP:
• A change in the use of CDBG funds from one eligible activity to another;
• The implementation of an activity not previously identified in sufficient detail to
provide affected citizens an opportunity to submit comments; or
• A change in an activity’s program budget which exceeds ten percent of the City’s
latest annual entitlement grant.
The information provided in this attachment qualifies as a substantial amendment because
it meets all three criteria of a substantial amendment as described in the City’s CPP.
BACKGROUND:
The United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) on March 27, 2020. The CARES Act expedites the use of CDBG funds to prevent
and respond to COVID-19. Through the CARES Act, the City received a total of $746,413 in
two separate grant allocations. These funds are to be used specifically for responding to the
COVID- 19 pandemic.
On June 15, 2020, Council allocated a portion of the first allocation of CARES Act funding
(CDBG-CV1) in the amount of $294,900 to LifeMoves to provide rental assistance to eligible
low-income Palo Alto families (i.e. 80% Area Media Income and below) who have suffered
documented income loss due to COVID-19. Of this amount, LifeMoves was able to spend
$99,499.50, and is now giving the remaining $194,500.50 back to the City to reallocate.
The purpose of this substantial amendment to the City of Palo Alto’s FY 2020-21 Annual
Action Plan is to reallocate a portion of the CDBG-CV funds that was returned by a
subrecipient to two new COVID-19 related projects and provide a summary of the
recommended projects/activities.
DISCUSSION:
The City will re-allocate $194,500.50 in CDBG-CV funds that was returned from LifeMoves
Rental Assistance Program. The LifeMoves Rental Assistance Program was funded in FY 2020-
Page 2 of 3
21 under the CDBG public services category to provide eligible households who are unable
to meet their monthly financial obligations as a result of the COVID-19 emergency with rental
assistance. Individuals and families in danger of becoming homeless or losing their homes,
will be able to remain in their homes. LifeMoves informed the City that they would be unable
to spend the remaining funds that they received for this program and are therefore returning
the funds to the City to be reallocated towards different COVID-related activities. Table 1
provides an overview of the recommended re-allocation of the $194,500.50 from the FY
20/21 program year.
Table 1. Staff Recommendation for the Reallocation of CDBG-CV Funds
Agency – Name of Program Amount
1. MOVE Mountain View – Safe Parking Program
$160,300
2. LifeMoves – COVID-19 Testing Program $34,200.50
TOTAL $194,500.50
Public Outreach Process for the Reallocation of CDBG-CV Funds
The City circulated the amendment to the FY 2020-21 Annual Action Plan for a 30-day public
comment period from May 20, 2022 through June 20, 2022. After the public comment period
concludes, the City Council will hold a public hearing on June 20, 2022.
A brief description of programs that will be funded with the City’s reallocated CDBG-CV funds
is provided below. The CDBG-CV funds will provide a valuable funding source for the City and
its non-profit partners to address the community needs in the wake of the COVID-19
pandemic.
Project Name MOVE Mountain View – Safe Parking Program
Goals Supported and Needs
Addressed
COVID-19 Response
Funding Amount CDBG-CV: $160,300
Description The program provides reserved off-street parking for
participants, as well as permanent housing solutions through
intensive case management. The Geng Road Safe Parking Lot
is where MMV will utilize the grant. There are 12 RV safe
parking spaces with eight spaces for client commuter car
parking. A unique resource on this lot is the presence of two
buildings. A library, laundry, kitchen, showers, and office
spaces will create many options for service to the clients in
the program.
Page 3 of 3
Estimate the number and type
of families that will benefit from
the proposed activities
Approximately eight Palo Alto residents will be served.
Location Description Citywide (Palo Alto)
Project Name LifeMoves – COVID-19 Testing Program
Goals Supported and Needs
Addressed:
COVID-19 Response
Funding Amount CDBG-CV: $34,200.50
Description LifeMoves will use this funding to purchase CUE Health Tests
that test for COVID-19 and deliver accurate results in 20
minutes. They can be administered to anyone at any time
that the Opportunity Services Center is open, whether the
client is symptomatic or asymptomatic.
Estimate the number and type
of families that will benefit
from the proposed activities
Approximately 450 Palo Alto residents will be served.
Location Description Citywide (Palo Alto)