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HomeMy WebLinkAboutStaff Report 2302-09919.Approve Substantial Amendments to the Community Development Block Grant (CDBG) FY2021-22 and FY2022-23 Annual Action Plans and the Associated Budget Amendment and Resolution 1 7 3 8 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: April 17, 2023 Report #:2302-0991 TITLE Approve Substantial Amendments to the Community Development Block Grant (CDBG) FY2021- 22 and FY2022-23 Annual Action Plans and the Associated Budget Amendment in Various Funds and Resolution RECOMMENDATION Staff recommends City Council take the following actions: 1. Approve an amendment to the Fiscal Year 2023 Budget Appropriation for the following funds (requires 2/3 approval): a. Community Development Block Grant Fund by: i. Increasing the revenue estimate by $300,000; and ii. Increasing the transfer to the Capital Improvement Fund appropriation by $300,000; b. Capital Improvement Fund by: i. Increasing the appropriation for the Sidewalk Repairs Capital Project (PO- 89003) by $300,000; and ii. Increasing the transfer from the Community Development Block Grant Fund by $300,000. 2. Adopt a Resolution (Attachment A) approving the following Substantial Amendments to the 2021-22 and 2022-23 Annual Action Plans: a. For Fiscal Year 2021-22, reallocate funding from Ravenswood Family Health Network to Sidewalk Repairs Capital Project (PO-89003) for ADA ramp improvements. b. For Fiscal Year 2022-23, amend the text for the description of the 525 E. Charleston Road project to reflect the correct project activity. EXECUTIVE SUMMARY The City is required to process a Substantial Amendment to a previously approved Community Development Block Grant (CDBG) Annual Action Plan (AAP) when certain changes occur to the 1 7 3 8 contents of those plans. This report discusses two substantial amendments that need to be completed for compliance with the CDBG program. The two amendments are as follows: 1. FY2021-22 AAP - Reallocate $300,000 from Ravenswood Family Health Network to a City project for ADA ramp improvements. Ravenswood was not able to move forward with their project and informed the City they no longer needed the CDBG funds. 2. FY2022-23 AAP – Revise the text of the project summary for Mitchell Park Place/525 E. Charleston Road to reflect the correct project activity. The first of these amendments requires approval of an amendment to the Fiscal Year 2023 Budget Appropriation. BACKGROUND The CDBG program, administered by U.S. Department of Housing and Urban Development (HUD), provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974. The HUD regulations require all CDBG funded activities to meet one of the three national objectives: • Benefit low-and very-low-income persons; • Aid in the prevention or elimination of slums or blight; or • Meet other community development needs having urgency or posing a serious and immediate threat to the health or welfare of the community. Palo Alto’s CDBG program has been primarily directed towards housing-related work. Specifically, local CDBG funds are allocated to expanding and maintaining existing affordable housing supply; promoting housing opportunities and choices; and providing supportive services for targeted low-income groups including unhoused persons, persons with disabilities, the elderly, and others. For general information on Palo Alto’s CDBG program, please visit: https://www.cityofpaloalto.org/CDBG. Annual Action Plan Amendments As part of the CDBG program, HUD requires the preparation of a five-year strategic action plan (i.e. Consolidated Plan) to address priority housing and community development needs and to set goals for attaining identified objectives. The implementation of the Consolidated Plan is reflected in the Annual Action Plan that is prepared for every fiscal year. The Annual Action Plan (AAP) identifies the specific projects to be funded that implement the strategies identified 1 7 3 8 in the Consolidated Plan. Council adopted the updated FY2020-25 Consolidated Plan and the FY2020- 21 Annual Action Plan on June 15, 2020. When the City’s CDBG funding situation changes, amendments to the Annual Action Plan 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. 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) Council approval required for all substantial amendments. DISCUSSION This section includes information on the required Annual Action Plan amendments. The Substantial Amendments approved by the City Council will be incorporated into the FY2021-22 AAP and the FY2023-23 AAP as required by HUD. Substantial Amendment to FY2021-22 Annual Action Plan – Ravenswood Funding Reallocation The approved FY2021-22 AAP included funding of $300,000 for Ravenswood Family Health Network for eligible improvments at its Palo Alto clinic.1 The project included the rehabilitation of the existing entrance and exit ramps and conversion into ADA-accessible ramps. In an email dated November 29, 2022, Ravenswood Family Health Network informed the City that they no longer needed the funds due to the lack of contracts to bid for the project and the inability to expend the funds. With funding reallocation in mind, staff investigated other public facilities improvement projects that were CDGB-eligible activities. Due to the CDBG funding limitations, staff could not identify an eligible project from the current agencies supported by the program to reallocate funds to. In exploring eligible City projects, the Public Works Department, in consultation with the City’s ADA Coordinator, suggested adding additional ramps within an existing community-wide ADA ramp improvement project that slated for bid in Spring 2023 (Sidewalk Repairs Capital Project PO- 1 This project funding was recorded in Resolution No. 98933 adopted by Council on June 15, 2020. 1 7 3 8 89003). An ADA ramp improvement project is a CDBG public facility eligible project (Matrix Code: 03K). The staff recommendation is to reprogram the Ravenswood $300,000 to the City’s ADA ramp improvement project to better support and enhance the major curb ramp improvement project. Substantial Amendment to FY2022-23 Annual Action Plan – 525 E. Charleston Road The approved FY2022-23 AAP included funding of $356,330 for the Mitchell Park Place/525 E. Charleston Road2 project. CDBG funding was to be allocated for predevelopment costs associated with an affordable housing development. This activity supports the development of affordable housing at a Santa Clara County-owned property; Eden Housing will develop 50 affordable housing units, half of which are for people with disabilities. As the owner of the property, the County plans to execute a long-term lease with the developer, Eden Housing. In late Summer 2022, the City was informed by HUD that the Mitchell Park Place project description was incorrectly represented in the FY2022-23 Annual Action Plan. A substantial amendment is needed to amend section AP-38 Project Summary of the FY2022-23 Annual Action Plan. The text edits are detailed in Table 1 below (new text is underlined and removed text has strikeouts). Table 1: CDBG Project Description Change Project Name Mitchell Park Place 525 E. Charleston Road Target Area Citywide Goals Supported Affordable Housing Strengthen Neighborhoods Needs Addressed Affordable Housing Community Services and Public Improvements 8 Funding CDBG: $356,330 2 This project funding was recorded in Resolution No. 10056 adopted by the Council on June 20, 2022. 1 7 3 8 Description The City intends to use the CDBG Funds for public facilities improvements near the proposed Eden Housing development site. 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 regulation. Note: At the initial public comment period for the 2022 2023 AAP, the project focused on affordable housing. The City is reevaluating this project and the details are to be determined. The City will follow the Citizen Participation Plan and will proceed with protocols if a substantial amendment is required. Target Date 6/30/2023 12/30/2023 Estimate the number and type of families that will benefit from the proposed activities TBD 50 families will benefit from public improvements Location Description 525 E. Charleston Road Planned Activities TBD POLICY IMPLICATIONS The project recommended for the reallocated CDBG funds is consistent with the priorities established in the City’s adopted FY 2020-2025 Consolidated Plan. FISCAL/RESOURCE IMPACT The recommendations in this report are cost neutral. This action is a reallocation of unspent funds dedicated by HUD in the FY2021-22 CDBG cycle and does not constitute a new funding source. The CDBG program runs on a reimbursement basis. Approval of this action will reallocate existing Community Development Block Grant funding to a new project and allow for the distribution of funds. There is no impact to the General Fund. STAKEHOLDER ENGAGEMENT The draft Substantial Amendments to the FY2021-22 and FY2022-23 Annual Action Plans, reflected in red-lined versions of the AAPs, were made available on the City’s webpage for public review beginning March 7, 2023 through April 6, 2023; this was advertised in the Daily Post on March 3, 2023. This constituted the required 30-day public review period. 1 7 3 8 Additionally, the notice provided details of this City Council public hearing, initially scheduled for April 10, 2023. Due to changes in the Council agenda, the public hearing was moved to April 17, 2023 and a correction notice was placed in the newspaper on April 5, 2023. At the time of this report preparation, no public comments were received. ENVIRONMENTAL REVIEW 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 Resolution Attachment B: Draft Amended FY2021-22 Annual Action Plan, with red-lines on page 26 Attachment C: Draft Amended FY2022-23 Annual Action Plan, with red-lines on page 36 APPROVED BY: Jonathan Lait, Planning and Development Services Director *NOT YET APPROVED* 1 0160101_20230405_ay16 Resolution No. _____ Resolution of the Council of the City of Palo Alto Approving the Substantial Amendments to the Community Development Block Grant Annual Action Plans for Fiscal Years 2021-2022 and 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 Substantial Amendments to the Annual Action Plans for Fiscal Year 2021-2022 and 2022-2023, were subjected to public review and commentary during the period from March 7, 2023 through April 6, 2023. C. The potential uses of Community Development Block Grant 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 program, the highest priority for funding is given to activities which will benefit persons with low and moderate incomes. E. The City Council held a publicly noticed public hearing on the proposed use of the reallocated CDBG funds for Fiscal Year 2021-2022 and the text amendments for Fiscal Year 2022- 2023. F. CDBG funds allocated to the City for Fiscal Years 2021-2022 and 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 2021-2022 are hereby approved and authorized for the following program: Name of Program Amount City of Palo Alto ADA Ramp Improvement Project $300,000 TOTAL $300,000 // *NOT YET APPROVED* 2 0160101_20230405_ay16 SECTION 2. The project description changes for the Fiscal Year 2022-2023 Annual Action Plan are hereby approved and authorized for the following program: Project Name Mitchell Park Place 525 E. Charleston Road Target Area Citywide Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $356,330 Description The City intends to use the CDBG Funds for public facilities improvements near the proposed Eden Housing development site. 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. Target Date 12/30/2023 Estimate the number and type of families that will benefit from the proposed activities 50 families will benefit from public improvements Location Description 525 E. Charleston Road Planned Activities TBD SECTION 3. The total amount set forth under Section 1 of this resolution represents the proposed reallocation of $300,000 in CDBG funds from the United States Department of Housing and Urban Development (HUD) for Fiscal Year 2021-2022. SECTION 4. The City staff is hereby authorized to submit the CDBG Substantial Amendments to the Fiscal Year 2021-2022 and Fiscal Year 2022-2023 Annual Action Plans, 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. *NOT YET APPROVED* 3 0160101_20230405_ay16 SECTION 5. The funding amounts set forth in Section 1 of this resolution are based on final allocation amounts from CDBG 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 6. The City Council hereby finds that the CDBG programs authorized under Section 1 and 2 of this resolution are 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 CDBG program prior to the release of funds for any such project. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning and Development Services ____________________________ Director of Administrative Services ____________________________ CDBG Coordinator DRAFT Substantial Amendment #1 FY 2021-2022 Annual Action Plan April 17, 2023 Initially Approved on May 3, 2021 Refer to pages 3, 29, & 31 for revisions. Substantial Amendment 04/10/2023 Annual Action Plan 2021 2 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Executive Summary AP-05 Executive Summary - 91.200(c), 91.220(b) 1. Introduction The City of Palo Alto (City) Fiscal Year (FY) 2021-22 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 second 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. A total of $746,715 is available for funding projects and programs during the 2021 Program Year. The City received $536,756 from the federal CDBG program, approximately $136,049 in program income and $73,910 in reallocated funds from previous years. The City’s Action Plan covers the time period from July 1, 2021 to June 30, 2022, (HUD Program Year 2021). The City’s FY 2021-22 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. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic 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 space. According to Quick facts data provided by the U.S. Census Bureau[1] The City's total resident population is 65,364. 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. Substantial Amendment 04/10/2023 Annual Action Plan 2021 3 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 The Action Plan provides a summary of how the City will utilizes its allocation to the meet the needs of the City’s lower income population. According to the U.S. census data[2], 6.1% of all residents within the City had incomes below the federal poverty level. Additionally, according to the 2019 Point in Time Homeless Census.[3] 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 $746,715 is available for funding projects and programs during FY2021-22. The City received $536,756 from the federal CDBG program, approximately $136,049 in program income and $73,910 in reallocated funds from previous years. Table 1, “Fiscal Year 2021 CDBG Budget” below summarizes the uses of the funds proposed during FY 2021-22. Applicant Agency Allocation Public Services Palo Alto Housing Corporation – SRO Resident Supportive Services $24,535 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $10,000 Life Moves – Case Management at Opportunity Center $31,545 Silicon Valley Independent Living Center – Case Management Services $14,021 Sub-total $80,101 Planning and Administration Project Sentinel – Fair Housing Services $33,698 City of Palo Alto Administration $99,304 Sub-total $133,002 Economic Development Downtown Streets – Workforce Development Program $160,477 Sub-total $160,477 Public Facilities and Improvement Ravenswood Family Health Network – Construction of ADA ramp ADA Ramp Improvement Project-City of Palo Alto $300,000 Sub-total $300,000 Housing Rehabilitation Rebuilding Together Peninsula – Safe at Home $73,135 Sub-Total $73,135 Grand Total 746,715 Table 1: Fiscal Year 2021 CDBG Budget 3. Evaluation of past performance Substantial Amendment 04/10/2023 Annual Action Plan 2021 4 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 This is an evaluation of past performance that helped lead the grantee 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. 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. The City solicited input throughout the development of the FY 2021-22 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 11, 2021 and May 3, 2021. The Action Plan 30-day public review period occurred from March 15, 2021 through April 16, 2021. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. There were no public comments received during the public review period. 6. Summary of comments or views not accepted and the reasons for not accepting them The City accepts and responds to all comments that are submitted. As mentioned above, no public comments were received regarding the FY 2021-22 Action Plan. 7. Summary Please see above. Substantial Amendment 04/10/2023 Annual Action Plan 2021 5 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 PR-05 Lead & Responsible Agencies - 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Agency PALO ALTO CDBG Administrator PALO ALTO Department of Planning & Development Services HOPWA Administrator HOME Administrator HOPWA-C Administrator Table 1 – Responsible Agencies 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 Consolidate Plan and Annual Action Plan to HUD listing priorities and strategies for the use of its federal funds. The Consolidate 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 Consolidate 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 Substantial Amendment 04/10/2023 Annual Action Plan 2021 6 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 develop strategies to meet those needs. The FY 2021-22 Annual Action Plan represents the second year of CDBG funding of the 2020-2025 Consolidated Plan. Consolidated Plan Public Contact Information Erum Maqbool, CDBG Staff Specialist City of Palo Alto Department of Planning and Development Services 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 E-mail: erum.maqbool@cityofpaloalto.org Phone: (650) 329-2660 Substantial Amendment 04/10/2023 Annual Action Plan 2021 7 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) 1. 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 2021-22 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(l)). During Fiscal Year 2021-22, 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 continuously coordinates with the Santa Clara County CoC to end and prevent homelessness in the County. City staff attends monthly meetings. The Santa Clara County CoC is a group comprising 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. The City’s representation on the CoC Board is its Human Services Manager. 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. City staff, as well as staff of other cities, meet and consult with the County’s CoC staff during the bi-weekly countywide CDBG Coordinators Group meetings, and communicate more frequently via email and/or phone on joint efforts. 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-private partnership that is committed to collective impact strategies to end chronic homelessness. Destination Home is the governing body for the CoC and is responsible for implementing by-laws and operational protocols of the CoC. Substantial Amendment 04/10/2023 Annual Action Plan 2021 8 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 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 CoC is now in the process of updating a new plan for the next five years and the City plans to participate in these efforts. Also, during the development of the 2020-25 ConPlan, 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 for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and 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 in January 2019. The data from the 2019 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 Countyÿ¢ÿ¿ÿ¿s HMIS is used by many City service providers across the region to record information and report outcomes. 2. Agencies, groups, organizations and others who participated in the process and consultations Substantial Amendment 04/10/2023 Annual Action Plan 2021 9 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Table 2 – Agencies, groups, organizations who participated 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?Housing Need Assessment 1 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Healthier Kids Foundation Santa Clara County Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation?Housing Need Assessment 2 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization COMMUNITY SERVICES AGENCY OF MOUNTAIN VIEW AND LOS ALTOS Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation?Housing Need Assessment 3 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization San Jose Conservation Corps Charter Agency/Group/Organization Type Services-Education 4 What section of the Plan was addressed by Consultation?Housing Need Assessment Substantial Amendment 04/10/2023 Annual Action Plan 2021 10 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization CommUniverCity San Jose Agency/Group/Organization Type Services-Education What section of the Plan was addressed by Consultation?Strategic Plan 5 Briefly describe how the Agency/Group/Organization was consulted. 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. 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?Housing Need Assessment Strategic Plan 6 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Rebuilding Together, Silicon Valley Agency/Group/Organization Type Services - Housing What section of the Plan was addressed by Consultation?Housing Need Assessment 7 Briefly describe how the Agency/Group/Organization was consulted. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2021 11 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Agency/Group/Organization City of Cupertino Community Development Department Housing Division Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Economic Development Anti-poverty Strategy Lead-based Paint Strategy 8 Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency/Group/Organization City of Gilroy9 Agency/Group/Organization Type Other government - Local Substantial Amendment 04/10/2023 Annual Action Plan 2021 12 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 What section of the Plan was addressed by Consultation?Housing Need Assessment Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Market Analysis Economic Development Anti-poverty Strategy Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of Mountain View10 Agency/Group/Organization Type Other government - Local Substantial Amendment 04/10/2023 Annual Action Plan 2021 13 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 What section of the Plan was addressed by Consultation?Housing Need Assessment Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Market Analysis Economic Development Anti-poverty Strategy Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization BILL WILSON CENTER Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation?Housing Need Assessment Homeless Needs - Families with children 11 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization HEART OF THE VALLEY Agency/Group/Organization Type Services-Elderly Persons 12 What section of the Plan was addressed by Consultation?Housing Need Assessment Substantial Amendment 04/10/2023 Annual Action Plan 2021 14 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of San Jose Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 13 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization CITY OF MORGAN HILL Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 14 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of Sunnyvale Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 15 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Servant Partners16 Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization Substantial Amendment 04/10/2023 Annual Action Plan 2021 15 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 What section of the Plan was addressed by Consultation?Housing Need Assessment Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization SENIOR ADULTS LEGAL ASSISTANCE (SALA) Agency/Group/Organization Type Service-Fair Housing What section of the Plan was addressed by Consultation?Housing Need Assessment 17 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization HomeFirst Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation?Housing Need Assessment Homeless Needs - Chronically homeless 18 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Santa Clara County Office of Supportive Housing Agency/Group/Organization Type Other government - County What section of the Plan was addressed by Consultation?Housing Need Assessment 19 Briefly describe how the Agency/Group/Organization was consulted. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2021 16 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Agency/Group/Organization City of Santa Clara Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 20 Briefly describe how the Agency/Group/Organization was consulted. 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 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?Non-Homeless Special Needs 21 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Destination: Home Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation?Housing Need Assessment 22 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization COMMUNITY SOLUTIONS Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by Consultation?Housing Need Assessment 23 Briefly describe how the Agency/Group/Organization was consulted. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2021 17 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Agency/Group/Organization St Mary Parish Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization What section of the Plan was addressed by Consultation?Housing Need Assessment 24 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Community and Neighborhood Revitalization Committee - Gilroy Agency/Group/Organization Type Community Organization What section of the Plan was addressed by Consultation?Housing Need Assessment 25 Briefly describe how the Agency/Group/Organization was consulted. 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 Through the countywide development of the Consolidated Plan, AT@T was consulted regarding broadband. For Palo Alto specific information on this topic, staff in the future will contact the City of Palo Alto Utilities Advisory Commission regarding the Cityâ¿¿s Fiber Network Expansion Project. In regard to resilience specific organizations, Grid Alternatives, an environmental sustainability organization, provided a stakeholder interview during the Consolidated Plan process. Staff plans to expand outreach in this area through contact with the Santa Clara County Office of Emergency Management and the City of Palo Alto Emergency Services which has developed a local hazard mitigation plan. Substantial Amendment 04/10/2023 Annual Action Plan 2021 18 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Other local/regional/state/federal planning efforts considered when preparing the Plan 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 Pl 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 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 A 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 U 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 Substantial Amendment 04/10/2023 Annual Action Plan 2021 19 OMB Control No: 2506-0117 (exp. 09/30/2021) 8 4 9 Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? 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 Table 3 – Other local / regional / federal planning efforts Narrative Annual Action Plan 2021 20 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation - 91.401, 91.105, 91.200(c) 1. 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 11, 2021 and May 3, 2021. The Action Plan 30-day public review period occurred from March 15, 20121 through April 16, 2021. The City did not receive any public comments on the Action Plan. Citizen Participation Outreach Sort Orde r Mode of Outreac h Target of Outreac h Summary of response/ attendanc e Summary of comment s receive d Summary o f comment s not accepted and reason s URL (If applicable) 1 Public Hearing Non- targeted/ broad communi ty The Human Relations Commissi on met on March 11, 2021 to discuss the FY2021- 22 funding allocations and review the draft FY2021-22 Annual Action Plan One member of the public provided comment s on the funding allocation . Three members represent ing two funding applicant s provided comment s at the meeting. All comments were accepted. https://www.cityofpaloalto.o rg/files/assets/public/agenda s-minutes-reports/agendas- minutes/human-relations- commission/2021/03-11-21- hrc-agenda.pdf Annual Action Plan 2021 21 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Orde r Mode of Outreac h Target of Outreac h Summary of response/ attendanc e Summary of comment s receive d Summary o f comment s not accepted and reason s URL (If applicable) 2 Public Hearing Non- targeted/ broad communi ty The City Council met on May 3, 2021 to discuss the FY2021-22 funding allocations and adopt the draft FY2021-22 AAP One member of the public provided comment s on the funding allocation . All comments were accepted. https://www.cityofpaloalto.o rg/files/assets/public/agenda s-minutes-reports/agendas- minutes/city-council- agendas-minutes/2021/05- 03-21-ccm-agenda-revis 3 Newspa per Ad Non- targeted/ broad communi ty Notice of Public Hearing and Public Comment Period on the Draft AAP was published in the Daily Post on February 25, 2021. N/A N/A Annual Action Plan 2021 22 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Orde r Mode of Outreac h Target of Outreac h Summary of response/ attendanc e Summary of comment s receive d Summary o f comment s not accepted and reason s URL (If applicable) 4 Newspa per Ad Non- targeted/ broad communi ty Notice of Public Hearing and Public Comment Period on the Draft AAP was published in the Daily Post on March 6, 2021. N/A N/A 5 Newspa per Ad Non- targeted/ broad communi ty Notice of City Council Public Hearing was published in the Daily Post on April 17, 2021. N/A N/A 6 Internet Outreac h Non- targeted/ broad communi ty Draft AAP FY2021-22 for public review and comments for posted at the City of Palo Alto's CDBG webpage. N/A N/A https://www.cityofpaloalto.o rg/Departments/Planning- Development-Services/Long- Range-Planning/Community- Development-Block-Grant Annual Action Plan 2021 23 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Orde r Mode of Outreac h Target of Outreac h Summary of response/ attendanc e Summary of comment s receive d Summary o f comment s not accepted and reason s URL (If applicable) 7 Email Blasts Non- targeted/ broad communi ty Notice of City Council Public Hearing was emailed to approxima tely 55 stakehold ers. N/A N/A Table 4 – Citizen Participation Outreach Annual Action Plan 2021 24 OMB Control No: 2506-0117 (exp. 09/30/2021) Expected Resources AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) Introduction In FY 2021-22, the City will allocate $746,715 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 during the next five years for community development activities. Anticipated Resources Expected Amount Available Year 1ProgramSource of Funds Uses of Funds Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Remainder of ConPlan $ Narrative Description CDBG public - federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services 536,756 136,049 73,910 746,715 2,250,000 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 Other public - federal Other 0 0 0 0 0 Table 2 - Expected Resources – Priority Table Annual Action Plan 2021 25 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 percent matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of two sub-funds: The Commercial Housing Fund & 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 & available funding. Other State & Federal Grant Programs In addition to the CDBG entitlement dollars, the federal government has several other funding programs for community development & affordable housing activities. These include: Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Federal Home Loan Bank Affordable Housing Program (AHP) & 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 address, bills that help increase housing production, both market-rate & affordable, will be a priority. The City will continue to track & look for opportunities to leverage State resources for the City. Local Housing & Community Development Sources: Other local resources that support housing & community development programs include: Palo Alto Commercial Housing Fund & Palo Alto Residential Housing Fund. The City will continue to seek opportunities for projects that meet Annual Action Plan 2021 26 OMB Control No: 2506-0117 (exp. 09/30/2021) local bond requirements in order to bring additional resources to help the City’s affordable housing shortage. Annual Action Plan 2021 27 OMB Control No: 2506-0117 (exp. 09/30/2021) If appropriate, describe publically 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. Annual Action Plan 2021 28 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Affordable Housing 2020 2025 Affordable Housing Affordable Housing CDBG: $73,135 Homeowner Housing Rehabilitated: 6 Household Housing Unit 2 Homelessness 2020 2025 Homeless Homelessness CDBG: $56,080 Public service activities other than Low/Moderate Income Housing Benefit: 169 Persons Assisted 3 Strengthen Neighborhoods 2020 2025 Non-Homeless Special Needs Non-Housing Community Development Community Services and Public Improvements CDBG: $324,021 Public Facility or Infrastructure Activities other than Low/Moderate Income Housing Benefit: 1,200 Persons Assisted Public service activities other than Low/Moderate Income Housing Benefit: 74 Persons Assisted 4 Fair Housing 2020 2025 Non-Housing Community Development Fair Housing CDBG: $33,698 Public service activities other than Low/Moderate Income Housing Benefit: 13 Persons Assisted 5 Economic Development 2015 2020 Non-Housing Community Development Economic Development CDBG: $160,477 Jobs created/retained: 15 Jobs Table 3 – Goals Summary Annual Action Plan 2021 29 OMB Control No: 2506-0117 (exp. 09/30/2021) Goal Descriptions Goal Name Affordable Housing1 Goal Description Assist in the creation and preservation of affordable housing for low income and special needs households. Goal Name Homelessness2 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. Goal Name Strengthen Neighborhoods3 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. Goal Name Fair Housing4 Goal Description Promote fair housing choice by funding fair housing organizations to provide fair housing services, such as education, tenant-landlord mediation, and testing. Goal Name Economic Development5 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. Annual Action Plan 2021 30 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. #Project Name 1 Ravenswood Family Health Network: ADA Accessible Clinic Entrance and Exit at the Palo Alto Clinic ADA Ramp Improvement Project-City of Palo Alto 2 Catholic Charities of Santa Clara County: Long Term Care Ombudsman 3 Silicon Valley Independent Living Center: Housing and Emergency Housing Services. 4 Project Sentinel - Fair Housing Services 5 City of Palo Alto - Planning and Administration 6 Downtown Streets Inc. - Workforce Development Program. 7 Rebuilding Together Peninsula Safe at Home 8 LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Case Management 9 Alta Housing (Former: Palo Alto Housing Corporation Management and Services Corporation) Table 4 – Project Information 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. Annual Action Plan 2021 31 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-38 Project Summary Project Summary Information Annual Action Plan 2021 32 OMB Control No: 2506-0117 (exp. 09/30/2021) Project Name Ravenswood Family Health Network: ADA Accessible Clinic Entrance and Exit at the Palo Alto Clinic ADA Ramp Improvement Project-City of Palo Alto Target Area Citywide Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $300,000 Description ADA Accessible Clinic Entrance and Exit at the Palo Alto Clinic. Eligible Activity (Matrix Code):03P. CDBG National Objective:570.208(a)(2). CDBG Citation:24 CFR 570.201(C). Recipient Type: LMC. This project will help in rehabilitating existing ramp and convert it into a safe and accessible ADA ramp at 270 Grant Ave, Palo Alto to allow for adequate social distancing to prevent the spread of COVID-19 as well as improve patients' access to the clinic. The City intends to fund and manage a major curb ramp improvement project that will bring an estimated 70 curb ramps up to current ADA accessibility standards. CDBG Eligible Activity: Public Facilities and Improvements: Health Facilities (HUD Matrix Code). The Project meets the following Consolidated Plan Goal(s): #3 - Support provision of essential human services, particularly for special needs populations, and maintain/expand community facilities and infrastructure. Target Date 6/30/2022 12/30/2023 Estimate the number and type of families that will benefit from the proposed activities Approximately 1,200 Palo Alto residents belonging to 80% and low income bracket will benefit from the proposed activity Approximately 70 curb ramps at many intersections will be improved benefitting elderly populations and persons with disabilities. 2,283 persons in the City live with disabilities. Location Description Palo Alto, CA 94306 Street intersection locations TBD 1 Planned Activities Project activities include removal of the existing ramp and replacement with an ADA accessible ramp and a stair option. Additionally, a motion sensor door will be installed to allow safe and easy access to the clinic. The City intends to competitively bid the removal of noncompliant ADA intersections and installation of current DOT standard ADA ramp improvements to be completed in 2023. Project Name Catholic Charities of Santa Clara County: Long Term Care Ombudsman Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements 2 Funding CDBG: $10,000 Annual Action Plan 2021 33 OMB Control No: 2506-0117 (exp. 09/30/2021) Description Long-Term Care Ombudsman Program. Eligible Activity (Matrix Code):05A. CDBG National Objective: 570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2022 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. Project Name Silicon Valley Independent Living Center: Housing and Emergency Housing Services. Target Area 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:570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 24 unduplicated Palo Alto residents will benefit from one on one housing assistance. Location Description Citywide 3 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. Project Name Project Sentinel - Fair Housing Services Target Area 4 Goals Supported Fair Housing Annual Action Plan 2021 34 OMB Control No: 2506-0117 (exp. 09/30/2021) Needs Addressed Fair Housing Funding CDBG: $33,698 Description Fair Housing Services. Eligible Activity (Matrix Code):21D. CDBG National Objective:570.208(a)(2). CDBG Citation: 570.206(c). Recipient Type: LMC Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 13 unduplicated individuals will be provided with fair housing services of complaint counseling, investigation and where appropriate enforcement referral. 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. Project Name City of Palo Alto - Planning and Administration Target Area 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: $99,304 Description Planning and Administration: CDBG Citation: 570.206(a) 5 Target Date 6/30/2022 Annual Action Plan 2021 35 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. Project Name Downtown Streets Inc. - Workforce Development Program. Target Area Goals Supported Economic Development Needs Addressed Economic Development Funding CDBG: $160,477 Description Workforce Development Program. Eligible Activity (Matrix Code): 05H.CDBG National Objective: 570.208(a)(2)(A). CDBG Citation: 570.204(a)(2). Recipient Type: LMC Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 15 unduplicated homeless and unemployed persons will be placed in jobs through job training/employment readiness classes and outreach to local employers. Location Description Citywide 6 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. Project Name Rebuilding Together Peninsula ÿ¢ÿ¿ÿ¿ Safe at Home Target Area Goals Supported Affordable Housing Needs Addressed Affordable Housing 7 Funding CDBG: $73,135 Annual Action Plan 2021 36 OMB Control No: 2506-0117 (exp. 09/30/2021) Description Safe at Home Program. Eligible Activity (Matrix Code): 14A/B.CDBG National Objective: 570.208(a)(3). CDBG Citation: 570.202(b)(11). Recipient Type: LMH Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 6 households 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. Project Name LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Case Management Target Area Goals Supported Homelessness Needs Addressed Homelessness Funding CDBG: $31,545 Description Opportunity Services Center Eligible Activity (Matrix Code):03TCDBG National Objective: 570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 38 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 through the Opportunity Services Center. Location Description 33 Encina Way, Palo Alto, CA 94301 8 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. Project Name Alta Housing (Former: Palo Alto Housing Corporation Management and Services Corporation) Target Area 9 Goals Supported Homelessness Annual Action Plan 2021 37 OMB Control No: 2506-0117 (exp. 09/30/2021) Needs Addressed Homelessness Funding CDBG: $24,535 Description SRO Resident Support Program. Eligible Activity (Matrix Code):05OCDBG National Objective:570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Location Description 439 Emerson Street, Palo Alto, CA 94301 735 Alma Street Palo Alto, CA 94301 Planned Activities Palo Alto Housing Corporation 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.</ Annual Action Plan 2021 38 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 Target Area Percentage of Funds Table 5 - Geographic Distribution Rationale for the priorities for allocating investments geographically Not applicable. Discussion Please see discussion above. Annual Action Plan 2021 39 OMB Control No: 2506-0117 (exp. 09/30/2021) Affordable Housing AP-55 Affordable Housing - 91.420, 91.220(g) Introduction One Year Goals for the Number of Households to be Supported Homeless Non-Homeless Special-Needs Total Table 6 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance The Production of New Units Rehab of Existing Units Acquisition of Existing Units Total Table 7 - One Year Goals for Affordable Housing by Support Type Discussion Annual Action Plan 2021 40 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-60 Public Housing - 91.420, 91.220(h) Introduction Actions planned during the next year to address the needs to public housing Actions to encourage public housing residents to become more involved in management and participate in homeownership If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Discussion Annual Action Plan 2021 41 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-65 Homeless and Other Special Needs Activities - 91.420, 91.220(i) Introduction Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Addressing the emergency shelter and transitional housing needs of homeless persons Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. Discussion Annual Action Plan 2021 42 OMB Control No: 2506-0117 (exp. 09/30/2021) 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: •Context-Based Design Codes: The City adopted form-based codes in 2006 to ensure and encourage residential development by following context-based design guidelines to incentivize increased density needs. •Density Bonus Ordinance: The City adopted a Density Bonus Ordinance in January 2014 to allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided, the regulations also allow for exceptions to applicable zoning and other development standards, to further encourage development of affordable housing. •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 Annual Action Plan 2021 43 OMB Control No: 2506-0117 (exp. 09/30/2021) development. The City updated its Commercial and Residential Impact Fee Nexus Studies 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 Implementation Ordinance (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. Annual Action Plan 2021 44 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 $78,000 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 used primarily to increase the number of new affordable housing units for Palo Alto’s work force. It is funded with mitigation fees required from developers of commercial and industrial projects. • The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from residential developers and money from other miscellaneous sources, such as proceeds from the sale or lease of City property. The 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 Annual Action Plan 2021 45 OMB Control No: 2506-0117 (exp. 09/30/2021) stock of BMR ownership units. • The Commercial Housing Fund is used primarily to increase the number of new affordable housing units for Palo Alto’s work force. • 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 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 2021-2022, 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. •Palo Alto Housing Corporation 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 Annual Action Plan 2021 46 OMB Control No: 2506-0117 (exp. 09/30/2021) 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: •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. Annual Action Plan 2021 47 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 0 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:0 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. Specify the years covered that include this Annual Action Plan.100.00% Annual Action Plan 2021 48 OMB Control No: 2506-0117 (exp. 09/30/2021) Please see discussion above. Annual Action Plan 2021 49 OMB Control No: 2506-0117 (exp. 09/30/2021) Attachments Annual Action Plan 2021 50 OMB Control No: 2506-0117 (exp. 09/30/2021) Citizen Participation Comments Annual Action Plan 2021 51 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan 2021 52 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan 2021 53 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan 2021 54 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan 2021 55 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan 2021 56 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Action Plan 2021 57 OMB Control No: 2506-0117 (exp. 09/30/2021) DRAFT Substantial Amendment #1 FY 2022-2023 Annual Action Plan April 17, 2023 Initially Approved on June 20, 2022 Refer to page 37 for revisions. Substantial Amendment 04/10/2023 Annual Action Plan 2022 28 5 0 Executive Summary AP-05 Executive Summary - 91.200(c), 91.220(b) 1. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 38 5 0 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. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic 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. According to Quick facts data provided by the U.S. Census Bureau[1], 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 Census[2], 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 48 5 0 Table 1: Fiscal Year 2023 CDBG Budget 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 58 5 0 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. 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. 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. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. There were no public comments received during the public review period for both public hearings. However, six (6) members of the public provided comments during the Human Relations Committee meeting regarding the CDBG funding recommendations. Refer to Appendix A for a summary of comments. 6. Summary of comments or views not accepted and the reasons for not accepting them Refer to Appendix A for a summary of comments. The City accepts and responds to all comments that are submitted. 7. Summary Please see above. Substantial Amendment 04/10/2023 Annual Action Plan 2022 68 5 0 PR-05 Lead & Responsible Agencies - 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Agency PALO ALTO CDBG Administrator PALO ALTO Department of Planning & Development Services HOPWA Administrator HOME Administrator HOPWA-C Administrator Table 1 – Responsible Agencies 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 78 5 0 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. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 88 5 0 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) 1. 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(l)). 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 Citys 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 98 5 0 Destination: Home (Destination Home) Leadership Board. Destination Home is a public- 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 for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and 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 Countys HMIS is used by many City service providers across the region to record information and report outcomes. 2. Agencies, groups, organizations and others who participated in the process and consultations Substantial Amendment 04/10/2023 Annual Action Plan 2022 108 5 0 Table 2 – Agencies, groups, organizations who participated 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?Housing Need Assessment 1 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Healthier Kids Foundation Santa Clara County Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation?Housing Need Assessment 2 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization COMMUNITY SERVICES AGENCY OF MOUNTAIN VIEW AND LOS ALTOS Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation?Housing Need Assessment 3 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization San Jose Conservation Corps Charter Agency/Group/Organization Type Services-Education 4 What section of the Plan was addressed by Consultation?Housing Need Assessment Substantial Amendment 04/10/2023 Annual Action Plan 2022 118 5 0 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization CommUniverCity San Jose Agency/Group/Organization Type Services-Education What section of the Plan was addressed by Consultation?Strategic Plan 5 Briefly describe how the Agency/Group/Organization was consulted. 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. 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?Housing Need Assessment Strategic Plan 6 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Rebuilding Together, Silicon Valley Agency/Group/Organization Type Services - Housing 7 What section of the Plan was addressed by Consultation?Housing Need Assessment Substantial Amendment 04/10/2023 Annual Action Plan 2022 128 5 0 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of Cupertino Community Development Department Housing Division Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Economic Development Anti-poverty Strategy Lead-based Paint Strategy 8 Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Agency/Group/Organization City of Gilroy9 Agency/Group/Organization Type Other government - Local Substantial Amendment 04/10/2023 Annual Action Plan 2022 138 5 0 What section of the Plan was addressed by Consultation?Housing Need Assessment Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Market Analysis Economic Development Anti-poverty Strategy Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of Mountain View10 Agency/Group/Organization Type Other government - Local Substantial Amendment 04/10/2023 Annual Action Plan 2022 148 5 0 What section of the Plan was addressed by Consultation?Housing Need Assessment Public Housing Needs Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Market Analysis Economic Development Anti-poverty Strategy Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization BILL WILSON CENTER Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation?Housing Need Assessment Homeless Needs - Families with children 11 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization HEART OF THE VALLEY12 Agency/Group/Organization Type Services-Elderly Persons Substantial Amendment 04/10/2023 Annual Action Plan 2022 158 5 0 What section of the Plan was addressed by Consultation?Housing Need Assessment Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of San Jose Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 13 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization CITY OF MORGAN HILL Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 14 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of Sunnyvale Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 15 Briefly describe how the Agency/Group/Organization was consulted. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 168 5 0 Agency/Group/Organization Servant Partners Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization What section of the Plan was addressed by Consultation?Housing Need Assessment 16 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization SENIOR ADULTS LEGAL ASSISTANCE (SALA) Agency/Group/Organization Type Service-Fair Housing What section of the Plan was addressed by Consultation?Housing Need Assessment 17 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization HomeFirst Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation?Housing Need Assessment Homeless Needs - Chronically homeless 18 Briefly describe how the Agency/Group/Organization was consulted. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 178 5 0 Agency/Group/Organization Santa Clara County Office of Supportive Housing Agency/Group/Organization Type Other government - County What section of the Plan was addressed by Consultation?Housing Need Assessment 19 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization City of Santa Clara Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation?Housing Need Assessment 20 Briefly describe how the Agency/Group/Organization was consulted. 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 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?Non-Homeless Special Needs 21 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Destination: Home Agency/Group/Organization Type Services-homeless 22 What section of the Plan was addressed by Consultation?Housing Need Assessment Substantial Amendment 04/10/2023 Annual Action Plan 2022 188 5 0 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization COMMUNITY SOLUTIONS Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by Consultation?Housing Need Assessment 23 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization St Mary Parish Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization What section of the Plan was addressed by Consultation?Housing Need Assessment 24 Briefly describe how the Agency/Group/Organization was consulted. 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 Agency/Group/Organization Community and Neighborhood Revitalization Committee - Gilroy Agency/Group/Organization Type Community Organization What section of the Plan was addressed by Consultation?Housing Need Assessment 25 Briefly describe how the Agency/Group/Organization was consulted. 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 198 5 0 Identify any Agency Types not consulted and provide rationale for not consulting Through the countywide development of the Consolidated Plan, AT@T was consulted regarding broadband. For Palo Alto specific information on this topic, staff in the future will contact the City of Palo Alto Utilities Advisory Commission regarding the City's Fiber Network Expansion Project. In regard to resilience specific organizations, Grid Alternatives, an environmental sustainability organization, provided a stakeholder interview during the Consolidated Plan process. Staff plans to expand outreach in this area through contact with the Santa Clara County Office of Emergency Management and the City of Palo Alto Emergency Services which has developed a local hazard mitigation plan. Other local/regional/state/federal planning efforts considered when preparing the Plan 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 Pl 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 SCCHA Moving to Work Annual Plan Santa Clara County Housing Authority Addresses housing authority updates and strategies pertaining to public housing and vouchers Substantial Amendment 04/10/2023 Annual Action Plan 2022 208 5 0 Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Regional Housing Need Plan for San Francisco Bay A 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 U 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 Table 3 - Other local / regional / federal planning efforts Narrative Substantial Amendment 04/10/2023 Annual Action Plan 2022 21 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation - 91.401, 91.105, 91.200(c) 1. 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 did not receive any public comments. Substantial Amendment 04/10/2023 Annual Action Plan 2022 22 OMB Control No: 2506-0117 (exp. 09/30/2021) Citizen Participation Outreach Sort Or der Mode of Out reach Target of Out reach Summary of response/atten dance Summary of comments rec eived Summary of com ments not accepted and reasons URL (If applicable) 1 Public Hearing Non- targeted/broa d community The Human Relations Commission met on March 10, 2022 to discuss the FY2022-23 funding allocations and review the draft FY2022-23 Annual Action Plan. Six members of the public provided comments on the Cityÿ¢ÿ¿ ÿ¿s funding allocations. Refer to Appendix A for detailed summary All comments were accepted. 2 Public Hearing Non- targeted/broa d community The City Council met on June 20, 2022, to discuss the FY2022-23 funding allocations and adopt the draft FY2022-23 AAP. No comments were received. No comments were received. Substantial Amendment 04/10/2023 Annual Action Plan 2022 23 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Or der Mode of Out reach Target of Out reach Summary of response/atten dance Summary of comments rec eived Summary of com ments not accepted and reasons URL (If applicable) 3 Newspaper Ad Non- targeted/broa d 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. No comments were received. No comments were received. 4 Newspaper Ad Non- targeted/broa d 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. No comments were received. No comments were received. Substantial Amendment 04/10/2023 Annual Action Plan 2022 24 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Or der Mode of Out reach Target of Out reach Summary of response/atten dance Summary of comments rec eived Summary of com ments not accepted and reasons URL (If applicable) 5 Internet Outreach Non- targeted/broa d community Draft AAP FY2022-23 for public review and comments for posted at the City of Palo Alto's CDBG webpage. No comments were received. No comments were received. https://www.cityofpaloalto.org/Departm ents/Planning-Development- Services/Long-Range- Planning/Community-Development- Block-Grant Table 4 – Citizen Participation Outreach Substantial Amendment 04/10/2023 Annual Action Plan 2022 25 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 26 OMB Control No: 2506-0117 (exp. 09/30/2021) Anticipated Resources Expected Amount Available Year 1ProgramSource of Funds Uses of Funds Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ Expected Amount Available Remainder of ConPlan $ Narrative Description CDBG public - federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services 513,168 140,000 0 653,168 1,026,336 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 Other public - federal Other 0 0 0 0 0 Table 5 - Expected Resources – Priority Table 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 27 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 28 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 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 publically 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 29 OMB Control No: 2506-0117 (exp. 09/30/2021) Please see information provided in previous sections. Substantial Amendment 04/10/2023 Annual Action Plan 2022 30 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Affordable Housing 2020 2025 Affordable Housing Affordable Housing CDBG: $424,560 Homeowner Housing Rehabilitated: 4 Household Housing Unit 2 Homelessness 2020 2025 Homeless Homelessness CDBG: $49,073 Public service activities other than Low/Moderate Income Housing Benefit: 161 Persons Assisted 3 Strengthen Neighborhoods 2020 2025 Non-Homeless Special Needs Non-Housing Community Development Community Services and Public Improvements CDBG: $24,021 Public service activities other than Low/Moderate Income Housing Benefit: 77 Persons Assisted 4 Fair Housing 2020 2025 Non-Housing Community Development Fair Housing CDBG: $33,698 Public service activities other than Low/Moderate Income Housing Benefit: 15 Persons Assisted 5 Economic Development 2015 2020 Non-Housing Community Development Economic Development CDBG: $0 Other: 0 Other Table 6 – Goals Summary Substantial Amendment 04/10/2023 Annual Action Plan 2022 31 OMB Control No: 2506-0117 (exp. 09/30/2021) Goal Descriptions Goal Name Affordable Housing1 Goal Description Assist in the creation and preservation of affordable housing for low income and special needs households. Goal Name Homelessness2 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. Goal Name Strengthen Neighborhoods3 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. Goal Name Fair Housing4 Goal Description Promote fair housing choice by funding fair housing organizations to provide fair housing services, such as education, tenant-landlord mediation, and testing. Goal Name Economic Development5 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 32 OMB Control No: 2506-0117 (exp. 09/30/2021) Substantial Amendment 04/10/2023 Annual Action Plan 2022 33 OMB Control No: 2506-0117 (exp. 09/30/2021) 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.Support activities to end homelessness. 2. Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low income and special needs households.Promote fair housing choice.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. #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 SRO Resident Support Program 4 Silicon Valley Independent Living Center: Housing and Emergency Housing Services 5 Project Sentinel - Fair Housing Services 6 City of Palo Alto - Planning and Administration 7 Rebuilding Together Peninsula Safe at Home 8 Mitchell Park Place 525 E. Charleston Road Table 7 – Project Information 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 34 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-38 Project Summary Project Summary Information Substantial Amendment 04/10/2023 Annual Action Plan 2022 35 OMB Control No: 2506-0117 (exp. 09/30/2021) Project Name Catholic Charities of Santa Clara County: Long Term Care Ombudsman Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000 Description Long-Term Care Ombudsman Program. Eligible Activity (MatrixCode):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 Citywide 1 Planned Activities Regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care. Project Name LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Case Management Target Area 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 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 Citywide 2 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 36 OMB Control No: 2506-0117 (exp. 09/30/2021) Project Name Alta Housing SRO Resident Support Program Target Area 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 Residents of Barker Hotel (25 units) and Alma Place (106 units) 3 Planned Activities 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. Project Name Silicon Valley Independent Living Center: Housing and Emergency Housing Services Target Area 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 4 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 37 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. Project Name Project Sentinel - Fair Housing Services Target Area Goals Supported Fair Housing Needs Addressed Fair Housing Funding CDBG: $33,698 Description Description Planning & Administration - Fair Housing Services. Eligible Activity (Matrix Code):21D - $13,722. CDBG National Objective: LMC. Public Service - Fair Housing Services. Eligible Activity (Matrix Code):05J - $19,976. 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. Location Description Citywide 5 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. Project Name City of Palo Alto - Planning and Administration6 Target Area Substantial Amendment 04/10/2023 Annual Action Plan 2022 38 OMB Control No: 2506-0117 (exp. 09/30/2021) 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: $116,911 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. Project Name Rebuilding Together Peninsula Safe at Home Target Area 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: LMH 7 Target Date 6/30/2023 Substantial Amendment 04/10/2023 Annual Action Plan 2022 39 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities 4 households 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. Project Name Mitchell Park Place 525 E. Charleston Road Target Area Citywide Goals Supported Affordable Housing Strengthen Neighborhoods Needs Addressed Affordable Housing Community Services and Public Improvements Funding CDBG: $356,330 Description The City intends to use the CDBG Funds for public facilities improvements near the proposed Eden Housing development site. 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 regulation. Note: At the initial public comment period for the 2022 2023 AAP, the project focused on affordable housing. The City is reevaluating this project and the details are to be determined. The City will follow the Citizen Participation Plan and will proceed with protocols if a substantial amendment is required. Target Date 6/30/2023 12/30/2023 Estimate the number and type of families that will benefit from the proposed activities TBD 50 Families will benefit from public improvements Location Description 525 E. Charleston Road 8 Planned Activities TBD Substantial Amendment 04/10/2023 Annual Action Plan 2022 40 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 Target Area Percentage of Funds Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically Not applicable. Discussion Please see discussion above. Substantial Amendment 04/10/2023 Annual Action Plan 2022 41 OMB Control No: 2506-0117 (exp. 09/30/2021) Substantial Amendment 04/10/2023 Annual Action Plan 2022 42 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 clerkssalesclerks, 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 43 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 44 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 45 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. •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 Substantial Amendment 04/10/2023 Annual Action Plan 2022 46 OMB Control No: 2506-0117 (exp. 09/30/2021) 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. Actions planned to develop institutional structure •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. Substantial Amendment 04/10/2023 Annual Action Plan 2022 47 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 0 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:0 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. Specify the years covered that include this Annual Action Plan.70.00% Substantial Amendment 04/10/2023 Annual Action Plan 2022 48 OMB Control No: 2506-0117 (exp. 09/30/2021) Discussion Please see discussion above. 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