HomeMy WebLinkAboutStaff Report 2401-2562CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Tuesday, June 18, 2024
Council Chambers & Hybrid
4:00 PM
Agenda Item
9.Adoption of the Community Development Block Grant (CDBG) FY 2024-25 Annual Action
Plan and the Adoption of a Resolution Approving Use of CDBG and CDBG CARES Act
(CDBG-CV) Funds for FY 2024-25, and Approval of a Budget Amendment in the
Community Development Block Grant Fund. Presentation
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 18, 2024
Report #:2401-2562
TITLE
Adoption of the Community Development Block Grant (CDBG) FY 2024-25 Annual Action Plan and
the Adoption of a Resolution Approving Use of CDBG and CDBG CARES Act (CDBG-CV) Funds for
FY 2024-25, and Approval of a Budget Amendment in the Community Development Block Grant
Fund.
RECOMMENDATION
The Human Relations Commission (HRC) and staff recommend City Council take the following
actions:
1. Adopt the draft Fiscal Year (FY) 2024-25 Annual Action Plan (AAP, Attachment A) and the
associated CDBG FY 2024-25 Annual Action Plan Resolution (Attachment B) allocating
Community Development Block Grant (CDBG) and CDBG CARES Act (CDBG-CV) funding
for FY 2024-25; and
2. Authorize the City Manager to execute the FY 2024-25 CDBG application to fund the FY
2024-25 Annual Action Plan and associated documents concerning the application, and
to otherwise bind the City with respect to the applications and commitment of funds; and
3. Authorize staff to submit the Fiscal Year 2024-25 AAP (Attachment A) to the U.S.
Department of Housing and Urban Development (HUD) by the July 6, 2024, deadline; and
4. Authorize the City Manager or designee to draft and execute a loan agreement, regulatory
agreement, and related documents necessary to implement City Council direction on the
Alma Garden Rehabilitation Project in a form consistent with the City’s affordable housing
loan documents and approved by the City Attorney.
5. Amend the Fiscal Year 2025 Budget Appropriation for the Community Development Block
Grant Fund (2/3 vote needed) by:
a. Increasing Revenue from Other Agencies by $1,157,286
b. Increasing General Expenses by $1,157,286
EXECUTIVE SUMMARY
The City is preparing for its second year of a two-year CDBG funding cycle for FY 2024-25. On
February 8, 2024, the HRC made funding recommendations for the CDBG FY 2024-25 funding
cycle and CDBG-CV funds. Given that the City’s CDBG grant entitlement amount for FY 2024-25
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was unknown at the time, the HRC also recommended the implementation of a contingency plan
to be used if CDBG FY 2024-25 funds were different than the amount estimated by staff.
On May 7, 2024, the City received HUD’s formal notification of the City’s CDBG FY 2024-25
entitlement grant amount. Subsequently, staff updated the draft FY 2024-25 AAP to:
•Include two specific Public Facilities projects; the applications for these projects were
submitted in February 2024 and funding for these projects came from the HRC’s
recommended funding in the CDBG Public Facilities category;
•Reflect updated calculations of unspent funds from past program years and associated
CDBG funding category cap amounts;
•Incorporate the City’s CDBG FY 2024-25 entitlement grant amount; and
•Update the CDBG FY 2024-25 funding allocation amounts through implementing the
HRC’s recommended contingency plan.1
The draft FY 2024-25 AAP contains proposed funding allocations to spend all available CDBG and
CDBG-CV funds. CDBG funds available for allocation in FY 2024-25 total $1,037,807.61, including
the City’s FY 2024-25 entitlement grant, estimated program income to be received in FY 2024-
25, and unspent funds from prior years. CDBG-CV funds available for allocation in FY 2024-25
total $119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing
project and unspent CDBG-CV Planning & Administration funds.
It is not possible to fully fund all CDBG applications at the levels requested by applicants
requesting funding in the CDBG Public Services and Planning & Administration categories, but the
City is able to fully fund applications in the CDBG Economic Development and Housing
Rehabilitation categories. The proposed recommendations:
•Allocate all available CDBG and CDBG-CV funds;
•Are consistent with the City’s CDBG Consolidated Plan;
•Are consistent with the City’s 6th Cycle Housing Element goals, projects, and activities as
they pertain to CDBG; and
•Will result in funding key programs, projects, and activities that benefit many low- and
very low-income Palo Alto residents.
Staff recommends that Council review and approve the draft FY 2024-25 AAP (Attachment A),
the associated draft CDBG FY 2024-25 Resolution (Attachment B), and authorize staff to submit
and execute associated documents necessary to implement the CDBG FY 2024-25 AAP.
BACKGROUND
The CDBG program, administered by HUD, provides annual grants on a formula basis.
Jurisdictions use the funds to develop viable urban communities by providing decent housing and
a suitable living environment and by expanding economic opportunities, principally for low- and
1 The City did not receive any public comments on the draft FY 2024-25 AAP. Consequently, no edits to the draft FY
2024-25 AAP were necessary due to public comment.
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moderate-income persons. The CDBG program is authorized under Title 1 of the Housing and
Community Development Act of 1974. HUD regulations require all CDBG-funded projects and
activities to meet at least one of the three national objectives:
1. Benefit low-and very low-income persons;
2. Aid in the prevention or elimination of slums or blight; or
3. Meet other community development needs that have urgency or pose a serious and
immediate threat to the health or welfare of the community.
The City's CDBG program has primarily focused on meeting the first objective to benefiting low-
and very-low-income persons.2
Consolidated Plan & Annual Action Plan
Programs, projects, and activities funded through the City’s CDBG program must be consistent
with the goals outlined in the City’s 2020-2025 Consolidated Plan,3 a five-year strategic plan of
action that addresses priority housing and community development needs. Each year, HUD
requires the submittal of an Annual Action Plan (AAP) that identifies the specific programs,
projects, and activities to be funded to implement strategies identified in the Consolidated Plan.
Following the City Council's final approval of the City’s proposed funding allocations, the specific
programs, projects, and activities are reported to HUD through the submittal of the AAP.
Citizen Participation for the Annual Action Plan
Per HUD's regulations and the City's adopted "Citizen Participation Plan"4 the City must ensure
adequate citizen participation in the CDBG funding allocation process. Prior to submittal of the
AAP each year to HUD, the City must follow the following process: hold a public hearing on the
draft AAP, subsequently hold a 30-day circulation and public comment period, and lastly hold
another public hearing on the draft AAP. The February 8, 2024, HRC meeting served as the first
public hearing, while the June 18, 2024 City Council meeting will serve as the second public
hearing required for the FY 2024-25 AAP.
Annual Action Plan Application Review and Allocation Process
CDBG funding applications were made available on October 2, 2023. A notice of CDBG funding
availability was published in the Daily Post on October 2, 2023, with completed applications due
November 17, 2023. The City hosted a pre-proposal conference on October 26, 2023.
2 For general information on the HUD CDBG program, please visit: https://www.hudexchange.info/programs/cdbg-
entitlement/.
For general information on the Palo Alto’s CDBG program, please visit:
https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Housing-Policies-
Projects/Community-Development-Block-Grant.
3 2020-2025 Consolidated Plan: https://www.cityofpaloalto.org/files/assets/public/v/3/planning-amp-
development-services/cdbg-general-information/plans-and-reports/consolidated-plans/2020-2025-palo-alto-
consolidated-plan-2020-21-aap-minor-amend1.pdf
4 Adopted Citizen Participation Plan 2022: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-
development-services/cdbg-general-information/plans-and-reports/amended-citizen-participation-plan-2022-
approved-by-city-council-9-12-22-final.pdf
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Additionally, staff provided technical assistance to applicants during the open application period
regarding program regulations and project eligibility questions.
During this application cycle, the Notice of Funding Availability (NOFA) specified that funding
would be available for projects in the CDBG Economic Development, Public Facilities and
Improvements, and Housing Rehabilitation categories. The NOFA noted that new CDBG Public
Services category applications were not being accepted in this second-year funding cycle, as two-
year Public Services category applications were already received in the prior fiscal year. However,
the NOFA specified that the City could accept new CDBG-CV applications in the Public Services
category. All applications were reviewed to determine HUD compliance in accordance with
eligible activities5 and National Objectives6.
Human Relations Commission Review
The HRC is involved in the preparation of the draft CDBG AAP each year. On January 17, 2024,
the HRC Selection Committee reviewed the applications received for FY 2024-25. The HRC
Selection Committee’s recommendations were then presented at a public hearing to the full HRC
on February 8, 2024 (Attachment C). The HRC unanimously approved a motion to recommend
that Council approve the draft FY 2024-25 AAP. Given that the City’s CDBG grant entitlement
amount for FY 2024-25 was unknown at the time, the HRC also recommended the
implementation of a contingency plan to be used if CDBG FY 2024-25 funds were different than
the amount estimated by staff.
ANALYSIS
The City received its CDBG FY 2024-25 entitlement grant amount on May 7, 2024, which is a later
date than anticipated, resulting from the overall delays in the FY 2024-25 federal budgeting
process. While the amount of CDBG-CV funds remained unchanged, the amount of CDBG funds
available for allocation in FY 2024-25 is less than the amount estimated and presented to the HRC
in February 2024. This is largely due to reconciliation of the amounts of program income received
in past program years, which has experienced declines relative to formerly estimated amounts.
Upon receipt of the CDBG FY 2024-25 entitlement grant amount, staff adjusted the proposed
funding allocations using the HRC’s contingency plan (Table 1). The updated proposed funding
allocations are also documented in the FY 2024-25 AAP (Attachment A).
CDBG funds available for allocation in FY 2024-25 total $1,037,807.61, including the City’s FY
2024-25 entitlement grant, estimated program income to be receipted in FY 2024-25, and
unspent funds from prior years. CDBG-CV funds available for allocation in FY 2024-25 total
$119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing project
and unspent CDBG-CV Planning & Administration funds (Table 1).
5 CDBG Matrix Codes:
https://files.hudexchange.info/resources/documents/Matrix-Code-Definitions.pdf
6 CDBG National Objectives:
https://www.hudexchange.info/sites/onecpd/assets/File/CDBG-National-Objectives-Eligible-Activities-Chapter-
3.pdf
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Table 1: FY 2025 CDBG and CDBG-CV Funding Summary
FY 2024-25 Entitlement Grant $513,653
Program Income to be receipted in FY 2024-25 (Estimated) $60,000
Prior Year Unspent Funds $461,154.61
FY 2021-22 ($191,018.05)1
FY 2022-23 ($269,435.96)2
FY 2023-24 ($ 3,700.60)3
Estimated Total CDBG Funds Available for Allocation $1,037,807.61
Unspent Canceled Project: LifeMoves-COVID-19 Testing $34,200.50
Unspent Planning & Administration funds $85,278.24
Estimated Total CDBG-CV Funds Available for Allocation $119,478.74
1 The City has a total of $191,018.05 in unspent CDBG funds from FY 2021-22 that is available for reprogramming.
2 The City originally had $376,736.96 in unspent CDBG funds from FY 2022-23 that was available for reprogramming.
Of this amount, $107,301 was reallocated to the FY 2023-34 program budget due to lower than estimated program
income (PI) from FY 2023-24 ($107,301 had been estimated; $0 will be received by the conclusion of FY 2023-24).
Consequently, the City has a total of $269,435.96 in unspent CDBG funds from FY 2022-23 that is available for
reprogramming.
3 Due to program income (PI) reconciliation, adjustments in the FY 2023-24 Planning & Administration budget were
made to meet the Planning & Administration category 20% Cap. Staying within the 20% Cap leaves a $3,700.60
surplus.
CDBG Funding Categories and Funding Caps
The CDBG program has five primary activity areas in which to allocate funds: (1) Public Services,
(2) Economic Development, (3) Housing Rehabilitation, (4) Public Facilities & Improvement, and
(5) Planning & Administration.
Federal regulations cap the amount of CDBG funds that can be spent on Public Services and
Planning & Administration as follows (Table 2):
•Public Services (15% Cap) — The amount of any CDBG funds that may be obligated toward
Public Services during a program year is capped at 15% of the sum of the grant allocation
plus the total amount of program income received during the prior program year.
•Planning & Administration (20% Cap) — The amount of any CDBG funds that may be
obligated toward Planning & Administration during a program year is capped at 20% of
the sum of the grant allocation plus the total amount of program income received during
the current program year.
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Table 2: FY 2025 CDBG and CDBG-CV Funding Categories and Allowed Allocations
Funding Categories Allowed Allocations
CDBG Funds
Public Services 15% Maximum
15% x [entitlement grant allocation ($513,653) + prior year FY 2023-24
program income ($0.00)]
$77,047.95
Planning and Administration 20% Maximum
20% x [entitlement grant allocation ($513,653) + current year FY 2024-25 anticipated
program income ($60,000)]
$114,730.60
Un-capped Funds $846,029.06
Total Available for CDBG Allocation $1,037,807.61
CDBG-CV Funds
Public Services (No Cap)$88,623.75
Planning and Administration 20% Maximum $149,228.60
Program Income
Program Income is received from Alta Housing for loan repayments and rental income in excess
of expenses on specific properties acquired or rehabilitated with CDBG funds. Municipalities are
required to estimate anticipated program income for the activity budget for the upcoming year.
In past years, program income was estimated around $100,000. However, due to consistent
declines in actual program income received in recent years, staff reduced the estimated program
income for FY 2024-25 to $60,000 to align with historic trends.
CDBG and CDBG-CV FY 2024-25 Funding Allocations
Thirteen (13) applicants are recommended for CDBG and CDBG-CV FY 2024-25 funding
allocations (Table 3) in the in the draft FY 2024-25 AAP (Attachment A). It is not possible to fully
fund all CDBG applications at the levels requested by applicants requesting funding in the CDBG
Public Services and Planning & Administration categories (Table 3), however, the City is able to
fully fund applications in the CDBG Economic Development and Housing Rehabilitation
categories.
The draft FY 2024-25 AAP reflects the HRC’s funding recommendations. Staff was also able to
include the following two new Public Facilities projects received by the City during February 2024:
•Fire Station Sidewalk Improvement Project
•Homekey Palo Alto Recreation Project
Staff is able to include these Public Facilities projects because they were eligible, and the draft
FY 2024-25 AAP reviewed by the HRC had already earmarked a large pool of CDBG funds to be
used in the Public Facilities and Improvements funding category.
The largest funding recommendation is for rehabilitation at the Alma Garden affordable housing
project. This funding will be structured as an affordable housing loan and will include a regulatory
agreement extending the term of affordability for the property. Staff is therefore seeking
authority to draft and execute the necessary loan documents in a form substantially similar to
the City’s past affordable housing loans.
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Table 3: Summary of FY 2024-25 CDBG and CDBG-CV Applicants and Funding
Recommendations
Agency/Program Name
FY 2023-24
Funded
Amount
FY 2024-25
Recommended
Amount
FY 2024-25
Applicant
Requested
Amount
CDBG Applicants
Public Services (15% Cap = $77,047.95)
Alta Housing - SRO Resident Supportive
Services $14,000 $11,575 $24,343
Catholic Charities of Santa Clara
County – Long Term Care Ombudsman
Program
$10,000 $7,575 $10,000
LifeMoves – Case Management $23,636 $28,247 $69,919
Silicon Valley Independent Living
Center (SVILC) – Case Management $16,500 $14,075 $28,127
Project Sentinel – Fair Housing Services $18,000 $15,575 $36,393
Subtotal $77,047 $168,782
Economic Development (No Cap)
WeeCare/Upwards $114,000 $120,000 $120,000
Subtotal $120,000 $120,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula (RTP) –
Safe at Home $73,585 $73,585 $73,585
Community Work Group/Abode – Alma
Garden N/A $404,800 $404,800
Subtotal $478,385 $478,385
Public Facilities & Improvements (No Cap)
Fire Station – Sidewalk Improvement
Project N/A $62,645.61 $65,000
Homekey Palo Alto – Recreation
Project N/A $185,000 $185,000
Subtotal $247,645.61 $250,000
Planning & Administration (20% Cap = $114,730.60)
City of Palo Alto Administration $119,013 $114,730 $116,060
Subtotal $114,730 $116,060
GRAND TOTAL for CDBG N/A $1,037,807.61 N/A
CDBG-CV Applicants
Public Services CDBG-CV
MOVE Mountain View - Safe Parking
Program $110,000.00 $110,000.00 $110,000.00
Planning & Administration CDBG-CV
Planning and Administration – CV N/A $9,478.74 N/A
GRAND TOTAL for CDBG-CV N/A $119,478.74 N/A
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Should the FY 2024-25 AAP be adopted by City Council, it would be submitted to HUD prior to
the July 6, 2024 deadline.
POLICY IMPLICATIONS
The programs, projects, and activities recommended for funding in the draft FY 2024-25 AAP are
consistent with the priorities established in the City’s adopted CDBG FY 2020-2025 Consolidated
Plan.
FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with this action as CDBG and CDBG-CV funding is provided by
HUD. Associated grant funding is also used to support program administration for consultant
services and liability insurance.
STAKEHOLDER ENGAGEMENT
Prior to the submission of the FY 2024-2025 AAP to HUD, the City must follow the following
process: hold a public hearing on the draft AAP, hold a 30-day circulation and public comment
period, and hold an additional public hearing on the draft AAP.
The HRC meeting on February 8, 2024 served as the first public hearing. The City published a
notice of the HRC meeting on January 24, 2024, in the Daily Post; this constituted the required
14-day public review period for the first public hearing.
The 30-day circulation, public review, and comment period on the draft FY 2024-25 AAP began
on March 13, 2024 and ended on April 12, 2024; notice of funding availability was published in
the Daily Post on March 13, 2024, on the City’s CDBG webpage, and via email notification to
stakeholders. At the time of this report, staff did not receive public comment on the draft FY
2024-25 AAP.
The City Council public hearing on June 18, 2024 will serve as the second public hearing for review
and approval of the FY 2024-25 AAP. The City published a public notice of the City Council public
hearing on June 3, 2024, in the Daily Post. This advertisement complies with the City’s required
14-day public notice period for the second public hearing.
ENVIRONMENTAL REVIEW
For the purposes of the National Environmental Policy Act (NEPA) and the California
Environmental Quality Act (CEQA), budgeting by itself is not a project. Prior to the commitment
or release of funds for each of the proposed programs, projects, and activities, staff will carry out
the required environmental reviews or assessments and certify that the review procedures under
HUD, NEPA, and CEQA regulations have been satisfied for each activity.
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ATTACHMENTS
Attachment A: Draft FY 2024-25 CDBG Annual Action Plan, dated June 3, 2024
Attachment B: Draft Resolution CDBG FY 2024-25 Annual Action Plan
Attachment C: Human Relations Commission Review Summary
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
ANNUAL ACTION PLAN
FISCAL YEAR 2024-2025
DRAFT (June 6, 2024)
for
City Council Public Meeting:
June 18, 2024
ADMINISTERED BY: PLANNING & DEVELOPMENT SERVICES
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 1
Table of Contents
Executive Summary .................................................................................................................................................. 2
AP-05 Executive Summary - 91.200(c), 91.220(b) ................................................................. 2
The Process ............................................................................................................................................................... 6
PR-05 Lead and Responsible Agencies - 91.200(b) ................................................................ 6
AP-10 Consultation - 91.100, 91.200(b), 91.215(l) ............................................................... 8
AP-12 Participation - 91.401, 91.105, 91.200(c) ................................................................ 16
Expected Resources ................................................................................................................................................ 20
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) ......................................................... 20
Annual Goals and Objectives .................................................................................................................................. 24
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) ............................................... 24
AP-35 Projects - 91.420, 91.220(d) ................................................................................ 27
AP-38 Project Summary ............................................................................................. 28
AP-50 Geographic Distribution - 91.420, 91.220(f) ............................................................. 34
AP-75 Barriers to affordable housing -91.420, 91.220(j) ...................................................... 35
AP-85 Other Actions - 91.420, 91.220(k) ......................................................................... 38
Program Specific Requirements .............................................................................................................................. 42
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) ............................................ 42
Appendices ............................................................................................................................................................. 43
APPENDIX A ........................................................................................................... 43
Public Comments ................................................................................................. 43
APPENDIX B ........................................................................................................... 44
Public Notices ..................................................................................................... 44
APPENDIX C ........................................................................................................... 49
Application for Federal Assistance SF-424 Forms and Certifications ...................................... 49
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 2
Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2024-25 Annual Action Plan (AAP) contains the City’s 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. 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. This
Action Plan covers the fifth and final year of the City’s five-year 2020-2025 Consolidated Plan, which was
adopted by the Palo Alto City Council on June 15, 2020.
The Planning and Development Services Department is the lead agency for the Consolidated Plan and
subsequent 5 Annual Action Plans for the City’s CDBG program. HUD requires entitlement jurisdictions to
submit a Consolidated Annual Performance and Evaluation Report (CAPER) that describes the distribution
of federal entitlement grant funds over the Consolidated Plan’s five-year planning period and identifies how
funding allocations help meet the goals covered in the Consolidated Plan.
The City received its CDBG FY 2024-25 entitlement grant amount on May 7, 2024,CDBG funds available for
allocation in FY 2024-25 total $1,037,807.61, which includes the entitlement grant ($513,653), anticipated
program income ($60,000) to be receipted in FY 2024-25, and unspent funds from prior years ($461,154.61).
The City is aware that program income receipts can be inconsistent and makes its best effort to estimate
future income and execute ongoing program budget adjustments as necessary. The City is also reallocating
$119,478.74 in CDBG CARES Act (CDBG-CV) funds, including unspent funds from the canceled LifeMoves-
COVID-19 Testing project ($34,200.50) and unspent CDBG-CV Planning & Administration funds ($85,278.24)
The City’s FY 2024-25 AAP covers the time period from July 1, 2024, to June 30, 2025. The FY 2024-25 AAP
contains the accomplishments the City expects to achieve in FY 2024-25. All the projects, programs, and
activities in the FY 2024-25 AAP reflect the 2020-2025 Consolidated Plan goals. CDBG-funded programs and
activities principally benefit City residents that have extremely low, low, and moderate- incomes and/or
populations that have special needs, such as the elderly, disabled, and homeless.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 3
Fiscal Year 2024-25 CDBG and CDBG-CV Budget Summary
Applicant Agency Allocation
Public Services (15% Cap = $77,047.95)
Alta Housing - SRO Resident Support Services $11,575
Catholic Charities of Santa Clara County – Long Term Care Ombudsman
Program $7,575
LifeMoves – Case Management $28,247
Silicon Valley Independent Living Center (SVILC) – Case Management $14,075
Project Sentinel – Fair Housing Services $15,575
Subtotal $77,047
Economic Development (No Cap)
WeeCare/Upwards $120,000
Subtotal $120,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula (RTP) – Safe at Home $73,585
Community Work Group/Abode – Alma Garden $404,800
Subtotal $478,385
Public Facilities & Improvements (No Cap)
Fire Station – Sidewalk Improvements Project $62,645.61
Homekey Palo Alto – Recreation Project $185,000
Subtotal $247,645.61
Planning & Administration (20% Cap = $114,730.60)
City of Palo Alto Planning & Administration $114,730
Subtotal $114,730
Grand Total for CDBG Budget $1,037,807.61
Public Services CDBG-CV
CDBG-CV MOVE Mountain View - Safe Parking Program $110,000
Planning & Administration CDBG-CV (20% Cap)
CDBG-CV City of Palo Alto Planning & Administration $9,478.74
Grand Total for CDBG-CV Budget $119,478.74
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
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 4
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 the U.S. Census Bureau, 2022 ACS Census, the City's total resident population is 66,021 and
has a density of 2,745 persons per square mile. Between 2020 and 2021 the City’s median household income
grew from $174,003 to $194,782, a 11.9% increase. According to the U.S. Census data, 6.1% of all residents
within the City had incomes below the federal poverty level. The City has the most educated residents in
the country and is one of the most expensive cities to live in. According to the 2020 Palo Alto Business &
Economic Activity Report in 2020, the City has between 4,100 and 7,000 for-profit and not for profit
businesses and 92,000 to 114,000 employees.
Additionally, according to the 2023 Point in Time (PIT) homeless count, there were 187 unsheltered
homeless individuals and 19 sheltered. The 2022 PIT homeless count revealed there were 263 unsheltered
homeless individuals and 11 sheltered homeless individuals in Palo Alto in 2022. This reflects an overall
estimated 24.5% decrease in homelessness in Palo Alto.
The FY 2024-25 Annual Action Plan provides a summary of how the City will utilize its CDBG allocation to
meet the needs of the City’s lower-income and special-needs populations. In FY 2023-24, the City received
$514,242 from the federal CDBG program and utilized $80,825 of program income. In FY 2024-25, they City
has available a total of $1,037,807.61 CDBG funds. This higher amount is largely due to activities identified
in past AAPs that were canceled and previously unspent funds from completed activities. Canceled CDBG
activities included Downtown Streets Inc. and Mitchell Park Place. Completed activities with remaining
FY2021-22 funds were Catholic Charities, Rebuilding Together Peninsula, and City of Palo Alto Planning and
Administration; remaining FY2022-22 funds were Catholic Charities, Life Moves, Project Sentinel, and City
of Palo Alto Planning and Administration; remaining FY2023-24 funds were City of Palo Alto Planning and
Administration. The City also intends to reallocate $119,478.74 in CDBG-CV funds. The canceled CDBG-CV
was LifeMoves-COVID-19 Testing.
3. Evaluation of past performance
An evaluation of past performance helps City leaders allocate funds to priority activities, as well as select
projects that are more aligned with its priority needs and goals. The City is responsible for ensuring
compliance with all rules and regulations associated with the CDBG entitlement grant program. Prior Annual
Action Plans (AAPs) and Consolidated Annual Performance and Evaluation Reports (CAPERs) provide many
details about the accomplishment goals, projects, and programs completed by the City and its subrecipients.
A review of the FY 2022-23 CAPER reveals that 310 persons and/or employers were assisted. Specifically:
• LMI elderly were assisted: 62
• Residents that received counseling services: 148
• Homeless individuals received shelter: 49
• Individual that received housing complaint services: 22
• Persons with disabilities receiving assistance: 24
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 5
• LMI homeowners receiving home improvements: 5
• Workforce development program assistance: 0
The City evaluates the performance of subrecipients on a quarterly basis. Subrecipients submit required
quarterly progress reports that include client data, performance objectives, and data on outcome measures.
Prior to the start of the program year, subrecipients and the City collaboratively develop program objectives,
ensuring that they are aligned with the City's overall goals and strategies. The City then utilizes the quarterly
reports to review progress toward achievement of annual goals.
4. Summary of Citizen Participation Process and consultation process
The City solicited input throughout the development of the FY 2024-25 Annual Action Plan (AAP). As
required by HUD, the City provides multiple opportunities for public review and comment on the AAP, as
well as any substantial amendments. Per the City’s adopted Citizen Participation Plan, the City holds a 30-
day public review comment period for the AAP. The City also publishes the required notification 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 stakeholders. The City held two advertised public
hearings on the AAP, HRC meeting on February 8, 2024, and the City Council meeting on June 18, 2024. The
AAP 30-day public review period began on March 13, 2024 and ran through April 12, 2024.
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.
Public comments received by the City will be reported here.
6. Summary of comments or views not accepted and the reasons for not accepting them
The City accepts and responds to all submitted public comments. As noted above, all public comments were
reported and addressed as part of this FY 2024-25 Annual Action Plan.
7. Summary
No further discussion
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 6
The Process
PR-05 Lead and 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
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 (PDS) 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.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 7
The Consolidated Plan helps local jurisdictions to assess their affordable housing and community development needs and market conditions. 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 2024-25 AAP represents the fifth year
of CDBG funding of the 2020-2025 Consolidated Plan.
Consolidated Plan Public Contact Information
Rebecca Atkinson, Planner
City of Palo Alto
Department of Planning and Development Services
250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
E-mail: rebecca.atkinson@cityofpaloalto.org Phone: (650) 329-2596
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 8
AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. Introduction
The Annual Action Plan is a one-year plan that describes the eligible projects, programs, and activities to
be undertaken with funds expected during FY 2024-25 and their relationship to the priority housing,
homeless, and community development needs outlined in the 2020-25 Consolidated Plan. Consultation
with the City and region’s social services, Human Relations Commission (HRC), Santa Clara Housing
Coordinators group, City Departments, and City Council occurred in the development of the AAP.
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)).
The projects, programs, and activities identified in the Annual Action Plan were shaped through a detailed
collaborative process. The City CDBG program administrators performed technical assistance, as well as
interviewed and monitored subrecipients. They also conducted consultations with the City’s Public Works,
Planning, Housing, Human Services, and Economic Development staff. The City continues to work with
and consult with city departments, non-profit organizations that provide programs and services for low-
income households, private industry, homeless providers, and housing development groups. The City
supports the development of affordable housing opportunities both regionally and within the City. City
staff provides technical assistance to awarded public service subrecipients and new CDBG applicants, as
well as attends monthly Santa Clara County Continuum of Care and Housing Coordinators meetings.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons
(particularly chronically homeless individuals and families, families with children, veterans, and
unaccompanied youth) and persons at risk of homelessness.
The Santa Clara County Office of Supportive Housing is the administrator of the regional Continuum of
Care (CoC). The City’s Office of Human Services Manager is in contact with the Santa Clara County Office
of Supportive Housing and Destination Home regarding issues of homelessness in the community. The
Santa Clara County CoC is a group comprising of stakeholders throughout the County, including
governmental agencies, homeless service and shelter providers, homeless population, housing advocates,
affordable housing developers, and various private parties, including businesses and foundations.
City staff continues to attend monthly CoC Housing Coordinator meetings. The CoC plans and prepares
significant reports supported by its CDBG entitlements and cities. Reports adopted by the CoC strive to
improve conditions for the homeless, record data related to homelessness, develop a system for volunteer
assistance that helps identify gaps in homeless services, establish funding priorities, and pursue a
systematic approach to addressing homelessness.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 9
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.
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 Reports and Publications - Office of Supportive Housing - County of Santa
Clara (sccgov.org).
As part of the development of the 2020-25 Consolidated Plan, the City directly consulted both the CoC
and County Office of Supportive Housing for their expertise and experience in 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 uses its CDBG-CV funds to support safe parking lots that house non-sheltered homeless
persons and families. Annually the City funds its homeless shelter for its supportive case management
services. Over the last several years the City has developed funding and building plans for its new Homekey
Shelter. Homekey Palo Alto is a planned modular interim housing shelter with the capacity to serve over
200 individuals annually with on-site support services. This project will be constructed by 2025.
The City provides local funds for the County to conduct its annual Point in Time (PIT) count, an annual
regional collaborative effort to count and survey sheltered and unsheltered people experiencing
homelessness. The data from the County of Santa Clara PIT count is used to plan, fund, and implement
actions for reducing chronic homelessness and circumstances that bring about homelessness. For 2023,
the PIT count was conducted on January 26, 2023. The CoC reported there were 275 persons placed in
transitional housing, 1,480 persons sheltered, and 5,904 persons unsheltered. There were 187
unsheltered homeless individuals and 19 sheltered in the City of Palo Alto. The City’s 2022 PIT homeless
count was 263 unsheltered homeless individuals and 11 sheltered homeless individuals. This reflects an
overall estimated 24.5% decrease in homelessness in Palo Alto.
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
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 10
HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The
County’s HMIS is used by many City service providers across the region to record information and report
outcomes.
2. Agencies, groups, organizations and others who participated in the process and
consultations
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 11
Agencies, groups, organizations who participated
1 Agency/Group/Organization REBUILDING TOGETHER PENINSULA
Agency/Group/Organization Type Housing
What section of the Plan was addressed by Consultation? Affordable Housing Preservation
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
2 Agency/Group/Organization SILICON VALLEY INDEPENDENT LIVING CENTER
Agency/Group/Organization Type Services - Housing
Services-Elderly Persons
Services-Persons with Disabilities
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
3 Agency/Group/Organization PROJECT SENTINEL
Agency/Group/Organization Type Services - Housing
Fair Housing and mediation services
What section of the Plan was addressed by Consultation? Fair Housing
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
4 Agency/Group/Organization ALTA HOUSING
Agency/Group/Organization Type Services - Housing
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 12
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
5 Agency/Group/Organization LIFEMOVES
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs – Veterans
Strengthening Neighborhoods – Public Facilities
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
6 Agency/Group/Organization CATHOLIC CHARITIES
Agency/Group/Organization Type Services-Housing
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
7 Agency/Group/Organization WEECARE/UPWARDS
Agency/Group/Organization Type Business and Civic Leaders
What section of the Plan was addressed by Consultation? Economic Development
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 13
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
8 Agency/Group/Organization COMMUNINITY WORK GROUP/ABODE
Agency/Group/Organization Type Housing
What section of the Plan was addressed by Consultation? Affordable Housing Preservation
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
9 Agency/Group/Organization MOVE MOUNTAIN VIEW
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Attended pre-application workshop. Stakeholder
communications and application submission and
project selection.
10 Agency/Group/Organization PEARL TRANSIT CORP.
Agency/Group/Organization Type Business and Civic Leaders
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 14
Briefly describe how the Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved
coordination?
Stakeholder communications and application
submission and project not selected.
Table 2 - Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting
There were no gaps in the consultation process.
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.
Housing Element 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.
2019 & 2020 STD/HIV
Annual Report Santa Clare County This report provides a summary of findings for Santa Clara County HIV surveillance data.
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.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 15
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Palo Alto's
Infrastructure: Catching
Up, Keeping Up
City of Palo Alto
Infrastructure Blue Ribbon
Plan. Accessibility
Summary
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 2 - Other local / regional / federal planning efforts
Narrative
No additional content needed.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 16
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
published notifications of 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 February 8, 2024, and June 18, 2024. The Action Plan 30-day public
review period began on March 13, 2024 and ran through April 12, 2024. The City has not received any public comments to date. (Any comments
to be inserted here once public hearings are completed)
Citizen Participation Outreach
Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
1
Newspaper Ad
& Internet
Outreach
Non-
targeted/broad
community
Email Blast to
interested
organizations,
persons
Accepted NOFA
application between
October 3 –
November 17, 2023.
4 new CDBG
applications were
received; 6 applications
were received in
Program Year 1 and
applied to Year 2 of the
two-year funding cycle.
And 2 new CDBG-CV
applications.
All comments
accepted
https://www.cityofpaloalto.org/files
/assets/public/v/1/planning-amp-
development-services/cdbg-general-
information/py-2024-2025-cdbg-
nofa-application-package-
10.02.23.pdf.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 17
Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
2 Consultation
Listing
Social Service,
City Departments,
Area Housing
developers
Pre-Application
Conference on
October 26, 2023
Application description,
stakeholder
consultation
All comments
accepted
https://cityofpaloalto.zoom.us/rec/s
hare/OEnSZX1HwWN6fKv2PHYowU
myEheUO0GEkAA3_grogQrkP0mzJn
EB9x4C6eVDipHo.zOLaGzGCkZuWtP
SE
https://www.cityofpaloalto.org/files
/assets/public/v/1/planning-amp-
development-services/cdbg-general-
information/plans-and-
reports/action-plans/py-2024-25-
pre-proposal-conf-pres-10-26-23.pdf
3 Newspaper Ad
Non-
targeted/broad
community
Notice of Human
Relations
Commission & City
Council Public
Hearings announced
FY2024-25 CDBG
Funding Allocations,
published in the
Daily Post on January
24, 2024.
No comments received All comments
accepted
https://www.cityofpaloalto.org/Dep
artments/Planning-Development-
Services/Housing-Policies-
Projects/Community-Development-
Block-Grant
4 Public Hearing
Non-
targeted/broad
community
HRC met on Feb 8,
2024, to discuss
FY2024-25
Applications and AAP
activities.
No comments received
All comments
will be
accepted
https://www.cityofpaloalto.org/City-
Hall/Boards-Commissions/Human-
Relations-Commission
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 18
Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
5 Newspaper Ad
Non-
targeted/broad
community
Notice of City Council
Public Hearing
announcing FY2024-
25 CDBG Funding
Allocations,
published in the
Daily Post on March
13, 2024.
CORRECTION NOTICE
of City Council Public
Hearing Date
published in Daily
Post on June 3, 2024.
Not yet completed
All comments
will be
accepted
6 Public Hearing
Non-
targeted/broad
community
The City Council held
its second public
hearing on June 18,
2024, to discuss
Draft AAP. Council
members
recommended
approval.
Not yet completed
All comments
will be
accepted
7 Internet
Outreach
Non-
targeted/broad
community
Webpage postings
for both hearings
Jan 24th No comments
received
March 13th No
comments received
All comments
will be
accepted
https://www.cityofpaloalto.org/Dep
artments/Planning-Development-
Services/Housing-Policies-
Projects/Community-Development-
Block-Grant
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 19
Sort Or
der
Mode of Outr
each
Target of Outre
ach
Summary of
response/attenda
nce
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL (If applicable)
8 Internet
Outreach
Non-
targeted/broad
community
Email Blast to
interested
organizations,
persons
3 Email Blasts were
sent on January 24
and March 13, 2024,
and June 3, 2024, to
all documented
contacts, interested
agencies, and
individuals.
Jan 24th No comments
received
March 13th No
comments received
June 3rd No comments
received
All comments
will be
accepted
Table 3 – Citizen Participation Outreach
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 20
Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY 2024-25, the City will allocate a total of $1,037,807.61 CDBG funds to eligible activities that address the needs identified in the Consolidated
Plan. These CDBG funds reflect the sum of a $513,653 FY 2024-25 Entitlement Grant, $60,000 Program Income (estimated) to be receipted in FY
2024-25, and $464,154.61 in unspent funds from prior years that are reallocated. The City acknowledges that program income receipts may vary
and endeavors to forecast future income while implementing necessary adjustments to the ongoing program budget. In FY 2024-25, the City
reallocated a total of $119,478.74 in CDBG CV funds to eligible activities to prevent and respond to the spread of coronavirus. The total reallocated
CDBG-CV funds is the sum of $34,200.50 unspent funds from the canceled LifeMoves-COVID-19 Testing Project and $85,278.24 unspent funds
from Planning & Administration funds. 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 efforts include
leveraging local county, regional, state and federal funds estimating $5.3 million, that align with goals outlined in the Consolidated Plan.
The City continues to leverage additional resources, as described below, to provide support and services to the communities' populations in need.
The following section discusses the anticipated resources available for community development activities during the remaining year of the City’s
5-Year Consolidated Plan.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 21
Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 5 Expected
Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation
: $
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
513,653 60,000
(estimate
d)
464,154.61
CDBG
$119,478.74
CDBG-CV
1,037,807.61
CDBG
$119,478.74
CDBG-CV
1,037,807.61
CDBG
$119,478.74
CDBG-CV
This is the 5th year of the 2020-2025 ConPlan.
CDBG funds are used for public services that benefit low income and special needs
households, economic development, housing
rehabilitation through preservation of owner-
occupied homes, and public facilities &
improvement projects. A total of $464,154.61
in unspent funds from prior years are
reprogrammed in the FY2024-25 AAP. The
following canceled projects required a
substantial amendment for their
corresponding program years:
-PY 2021-22 Downtown Streets Inc. -
Workforce Development Program project
$133,068.07. In total, $191,018.05 of unspent
funds from PY2021-22 are available for
reprogramming.
-PY 2022-23 Mitchell Park Place project
$356,330. Reconciliation of PI receipted
resulted in total $269,435.96 unspent funds
from PY2022-23 are available for
reprogramming.
In total, $3,700.60 of unspent funds from
PY2021-22 are available for reprogramming.
All prior years’ resources were reallocated to
PY2024-25 Housing Rehabilitation projects.
Table 4 - Expected Resources – Priority Table
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 22
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
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 are 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 California Department of
Housing and Community Development (HCD) for housing projects located within Palo Alto. The City has only received one HOME grant from 1992
HOME funding for the Barker Hotel project. Proceeds from HOME loan repayments are deposited into a HOME Program Income Fund and used in
accordance with the HOME program regulations.
In addition, the County funds only projects that has the local support of the City. If the City receives HOME dollars from its participation in the
HOME consortium, the required 25% matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of two sub-
funds: the Commercial Housing Fund and the Residential Housing Fund. To date, no projects within the City have been funded through the HOME
Consortium. Moving forward, the City plans to increase outreach to developers in the City to provide additional information on the HOME
Consortium and available funding.
Other State and Federal Grant Programs
In addition to the CDBG entitlement dollars, the federal government has several other funding programs for community development and
affordable housing activities. These include Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Federal Home Loan Bank
Affordable Housing Program (AHP), and others. It should be noted that in most cases, the City would not be the applicant for these funding sources
as many of these programs offer assistance to affordable housing developers rather than local jurisdictions. The projects funded leverage private,
HSPAP, and County funds estimated 1.6 million to support their programs.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 23
In September 2022, multiple State bills were signed, including SB 6 (Middle-Class Housing Act) and AB 2011 to advance housing development
progress. These two bills streamline the regulatory process and ensure that workers building homes are being paid a fair wage. The bill helps
generate new housing units plus general thousands of jobs. The California Housing Accelerator provided funding for shovel-ready projects in 2022
whose financing was stalled because of the difficulty in receiving tax credits. The City continues to track and look for opportunities to leverage
State resources for the City.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs
identified in the plan
The City has no surplus public land.
Discussion
Local Housing and Community Development Sources. Other local resources that support housing and community development programs include:
• Palo Alto Commercial Housing Fund provides assistance for the development of below market rate (BMR) housing units which are, in part,
funded by mitigation fees obtained from commercial and industrial development projects.
• ADA coordinator and city-wide ADA capital improvement listing.
• The Housing Element outlines the City’s detailed housing priorities and needs.
• Rebuilding Together Peninsula assists 4-6 low-to moderate income homeowners with home improvements.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 24
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: $478,385
Homeowner Housing
Rehabilitated: 5 Households
Rehabilitating rental housing
units for extremely low income
households: 10
2 Homelessness 2020 2025 Homeless Homelessness CDBG: $28,247
CDBG-CV:
$110,000
Public service activities other
than Low/Moderate Income
Housing CDBG Benefit: 158
Persons Assisted
CDBG-CV Benefit: 150 Persons
Assisted
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Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator
3 Strengthen
Neighborhoods
2020 2025 Non-Homeless
Special Needs
Non-Housing
Community
Development
Community Services
and Public
Improvements
CDBG: $
$252,717.61
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 435 households
Assisted
Public service activities other
than Low/Moderate Income
Housing Benefit: 75 Persons
Assisted
4 Fair Housing 2020 2025 Non-Housing
Community
Development
Fair Housing CDBG: $15,575 Public service activities other
than Low/Moderate Income
Housing Benefit: 12 Persons
Assisted
5 Economic
Development
2015 2020 Non-Housing
Community
Development
Economic
Development
CDBG: $120,000 Jobs created/retained: 0 Jobs
Businesses assisted: 15
Businesses Assisted
Table 5 – Goals Summary
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 26
Goal Descriptions
The goal of the City of Palo Alto, with funding from CDBG, is to increase self-sufficiency, housing opportunities and economic opportunity for
lower-income residents and individuals so that they can achieve a higher quality of life. In 2020, the City has established the following goals as a
guide for allocating CDBG funding during the 5-year consolidated planning period:
1 Goal Name Affordable Housing
Goal Description Assist in the creation and preservation of affordable housing for low income and special needs households.
2
Goal Name Homelessness
Goal Description Prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless
individuals, and support for tenants of single-room occupancy units
3
Goal Name Strengthen Neighborhoods
Goal Description
Provide community services and public improvements to benefit low-income and special needs households. This includes
assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long-
term care facilities, and supporting individuals experiencing domestic violence.
4
Goal Name Fair Housing
Goal Description Promote fair housing choice by funding fair housing organizations to provide fair housing services, such as education,
tenant-landlord mediation, and testing.
5
Goal Name Economic Development
Goal Description
Support economic development activities that promote employment growth and help lower-income people secure and
maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless
individuals.
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AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals represent high priority needs for the City of Palo Alto (City) and serve as the
basis for the strategic actions the City undertakes to meet these needs. The projects, listed in no particular
order are:
# Project Name CDBG and CDBG-CV
1 2024 Alta Housing SRO Resident Support Services
2 2024 Catholic Charities of Santa Clara County: Long Term Care Ombudsman Program
3 2024 LifeMoves: Case Management
4 2024 Silicon Valley Independent Living Center (SVILC): Case Management
5 2024 Project Sentinel – Fair Housing Services
6 2024 WeeCare/Upwards
7 2024 Rebuilding Together Peninsula (RTP) – Safe at Home
8 2024 Community Work Group/Abode – Alma Garden
9 2024 Fire Station – Sidewalk Improvements Project
10 2024 HomeKey Palo Alto – Recreation Project
11 2024 Planning & Administration
12 2024 CDBG-CV MOVE Mountain View - Safe Parking Program
13 2024 CDBG-CV Planning & Administration
Table 6 – Project Information CDBG
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City awards CDBG funding to projects and programs that primarily benefits 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.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 28
AP-38 Project Summary
Project Summary Information
1 Project Name 2024 Alta Housing SRO Resident Support Services Program
Target Area Citywide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $11,575
Description SRO Resident Support Services Program.
Eligible Activity (Matrix Code): 05O, Mental Health Services
CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
Case management and support counseling services will be provided to
an estimated 131 residents of Barker Hotel and Alma Place.
Location Description 439 Emerson Street, Palo Alto, CA 94301
735 Alma Street Palo Alto, CA 94301
Planned Activities Alta Housing’s Resident Support Services program project activities
include case management and counseling services to residents at the
Barker Hotel (25 units) and at Alma Place (106 units). Funding would
support a SRO Service Coordinator services to assist residents with
managing daily living skills, maintaining their mental and physical
health, one-on-one support counseling, and crisis intervention.
2 Project Name 2024 Catholic Charities of Santa Clara County: Long Term Care
Ombudsman Program
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services
Funding CDBG: $7,575
Description Long-Term Care Ombudsman Program.
Eligible Activity (Matrix Code): 05A, Senior Services
CDBG National Objective: LMC
Target Date 6/30/2025
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 Catholic Charities' Long-Term Care Ombudsman Program (LTCOP)
project activities include regular contact with Palo Alto Residential Care
Facilities to observe and monitor conditions of care and handle and
resolve issues regarding residents' rights, unmet needs, allegations of
abuse, and complaints effectively, thus promoting resident well-being.
Funding would support Program services.
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3 Project Name 2024 LifeMoves: Case Management
Target Area Citywide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $28,247
Description Opportunity Services Center/Hotel De Zink
Eligible Activity (Matrix Code):- 03T, Operating Costs of Homeless/AIDS
Patients Programs
CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
27 unduplicated individuals (homeless and/or very low-income
individuals per year) will receive case management services, including
assistance with housing/job searches, referrals and mentoring at the
Opportunity Services Center and Hotel De Zink.
Location Description 33 Encina Way, Palo Alto, CA 94301
Planned Activities LifeMoves project activities include case management services to
Opportunity Services Center and Hotel De Zink clients in locating
housing and/or employment and be connected to benefits. Additionally,
activities include provision of services at the Opportunity Services
Center, such as showers, restrooms, laundry facilities, benefits
enrollment assistance, transportation vouchers, and referrals for
medical and dental care for residents of Palo Alto and surrounding areas
who are homeless or at risk of homelessness.
4 Project Name 2024 Silicon Valley Independent Living Center (SVILC): Case
Management
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $14,075
Description Case Management.
Eligible Activity (Matrix Code): 05B, Handicapped Services
CDBG National Objective: LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
25 unduplicated Palo Alto residents will benefit from one-on-one
housing assistance.
Location Description Citywide
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 30
Planned Activities Silicon Valley Independent Living Center (SVILC) project activities assist
very low income Palo Alto residents with disabilities and their families
with their housing search for affordable, accessible housing. Funding
would support the Housing and Emergency Services for Persons with
Disabilities Program and case management services. The Program
provides education & training on all aspects of how to conduct a housing
search to transition from homelessness, health care facilities, or
unstable, temporary housing into safe, long-term community-based
housing. It includes group workshops, one-on-one service training, and
access to IL (Independent Living) services, including emergency food
assistance, security deposits/rent (as funding allows), information &
referral to ensure the long-term sustainability of housing.
5 Project Name 2024 Project Sentinel – Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing
Needs Addressed Fair Housing
Funding CDBG: $15,575
Description Fair Housing Services.
Eligible Activity (Matrix Code): O5J, Fair Housing Activities
CDBG National Objective: LMC 24 CFR 570.208(a)(2)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
12 unduplicated low and moderate income individuals will be provided
with fair housing services of complaint counseling, investigation, and
where appropriate enforcement referral.
Location Description Citywide
Planned Activities Project Sentinel’s project activities include fair housing counseling and
investigative services for Palo Alto residents through casework, increase
knowledge of fair housing laws and individual counseling on the fair
housing laws to improve understanding of residents' and housing
providers' rights or obligations. Funding would provide operating
expenses for these fair housing services.
6 Project Name 2024 WeeCare/Upwards
Target Area Citywide
Goals Supported Economic Development
Needs Addressed Economic Development
Funding CDBG: $120,000
Description WeeCare/Upwards assists Family Childcare Home microenterprise
businesses and will provide business improvement services to such
businesses in the City.
Eligible Activity (Matrix Code): 18B Economic Development-Technical
Assistance. CDBG National Objective LMCSV
Target Date 6/30/2025
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 31
Estimate the number
and type of families
that will benefit from
the proposed activities
15 daycare microenterprises will benefit from this project. Plus, the
possibility of new full-time jobs will be created by WeeCare/Upwards.
Location Description Citywide
Planned Activities WeeCare/Upwards, a for-profit organization, project activities support
their BOOST program for low-income Family Child Care Home (FCCH)
providers in Palo Alto. The BOOST program provides specialized
technical assistance and business support for income qualifying FCCH’s.
7 Project Name 2024 Rebuilding Together Peninsula (RTP)– Safe at Home
Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $73,585
Description Eligible Activity (Matrix Code): 14A
National Objective LMH 24 CFR 570.202(a)(1)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
5 LMI households will benefit from home improvements.
Location Description Citywide
Planned Activities RTP project activities preserve affordable housing by transforming
homes 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 or financially unable to maintain safe
living conditions for themselves and their families. Funding covers the
costs of home repair, such as construction materials and payment of
subcontractors.
8 Project Name 2024 Community Work Group/Abode – Alma Garden
Target Area 2024 Alma Garden Apartments 2507-2533 Alma Street, Palo Alto, CA
94306
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $404,800
Description Eligible Activity (Matrix Code): 14B
National Objective LMH 24 CFR 570.202(a)(1)
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
10 LMI households will benefit from apartment unit improvements.
Location Description Citywide
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 32
Planned Activities Community Work Group/Abode project activities include rehabilitating
rental housing units in Alma Garden, an affordable multi-family housing
complex for extremely low income households, to address existing
health and safety concerns. Funding would be spent on a project
manager, bathroom upgrades, exterior repairs, and electrical and water
utility upgrades.
9 Project Name 2024 Fire Station – Sidewalk Improvements Project
Target Area City-Wide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $62,645.61
Description This project will focus on renovations of sidewalks, curbs, and curb
ramps located at 3600 Middlefield Road.
Eligible Activity (Matrix Code): 03L, Sidewalks
National Objective LMC
Target Date 9/30/2025
Estimate the number
and type of families
that will benefit from the proposed activities
331 LMI households
Location Description 3600 Middlefield Rd, Palo Alto, CA 94303, Fire Station No.4
Planned Activities Plan, design and reconstruct the sidewalk, curbs and curb ramps at the
intersection area of Meadow Drive and Middlefield Road. The
anticipated project requires a contractor bidding process and has an
estimated completion timeframe of 18 months.
10 Project Name 2024 Homekey Palo Alto – Recreation Project
Target Area City-Wide
Goals Supported Homelessness
Needs Addressed Homeless
Funding CDBG: $185,000
Description This project will provide an on-site play structure and area at the
HomeKey Palo Alto shelter.
Eligible Activity (Matrix Code): 03C, Homeless Facilities
National Objective LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
104 households annually
Location Description 1237 San Antonio Road
Planned Activities LifeMoves, this homeless service provider will manage the design and
construction of recreation area and recreation equipment within the
Homekey Palo Alto shelter property. The anticipated project
completion timeframe is 12 months.
11 Project Name 2024 Planning & Administration
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Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $114,730
Description Eligible Activity (Matrix Code): 21A, General Program Administration
Planning and Administration: CDBG Citation: 570.206(a)
Target Date 6/30/2025
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.
12 Project Name 2024 CDBG-CV MOVE Mountain View – Safe Parking Program
Target Area City-Wide
Goals Supported Homelessness
Needs Addressed Homelessness
Funding CDBG: $110,000
Description MMW operates and provides homeless services at multiple approved
Safe Parking Lots in Palo Alto. Case managers helping assist homeless
individuals staying on approved parking lots.
Eligible Activity (Matrix Code): 03T, National Objective LMC
Target Date 6/30/2025
Estimate the number
and type of families
that will benefit from
the proposed activities
150 individuals will be assisted through the safe parking program.
Location Description Citywide
Planned Activities CDBG funds will be used for case management staff salaries working
with the MMV Safe Parking Program. Establishing housing partnership
with property owners and landlords. Rather than solely referring
clients to existing housing opportunities, MOVE MV case managers and
or housing specialists forge direct connections by facilitating client
sponsorship in rental placement. Beneficiaries include vehicle dwellers
and other homeless persons living in Palo Alto parking lots.
13 Project Name 2024 CDBG-CV Planning & Administration
Target Area City-Wide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $9,478.74
Description Planning and Administration: CDBG Citation: 570.206(a)
Target Date 6/30/2025
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 34
Estimate the number
and type of families
that will benefit from
the proposed activities
The City will provide general administrative support to the CDBG-CV
program.
Location Description Citywide
Planned Activities Administer the administrative costs for the overall management,
coordination, and evaluation of the CDBG-CV program, and the project
delivery costs associated with bringing projects to completion.
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 any
designated target areas. Instead, the City focuses CDBG funds on public services, housing preservation,
economic development-business assistance, and capital improvements across the City as a whole.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Table 7 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
This question is not applicable to Palo Alto’s program.
Discussion
See discussion above.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 35
AP-75 Barriers to affordable housing -91.420, 91.220(j)
Introduction
The City of Palo Alto is committed to providing equitable opportunities to all residents of Palo Alto in order
to expand access to housing and increase housing mobility. The City will take action to overcome patterns
of segregation, address disparities in housing needs and access to opportunity, and foster inclusive
communities. The City’s Housing Element contains a listing of actions established to reduce the barriers
to affordable housing, including but not limited to racial inequities, high housing and land costs, regulatory
constraints, and public resistance. Currently the City is experiencing a constrained housing supply market,
so when housing developments produce housing units that are considered “relatively” affordable, higher-
income buyers and renters outbid lower-income households. Subsequently, a home’s final sale or rental
price may exceed the projected sales or rental costs. Public subsidies are often needed to guarantee
affordable homes for low- and moderate-income households. The City wants to ensure adequate planning
is undertaken to provide its “fair share” of affordable and market-rate housing, demonstrating a strategy
for removing barriers to increase housing production that addresses today’s housing shortage.
To address the requirements of AB 686, the City participated in the 2020-2025 Santa Clara County
Consolidated Plan (ConPlan). The County’s ConPlan identifies eight housing goals for the County and each
of its participating jurisdictions, including Palo Alto. Additionally, the ConPlan identifies regional and local
barriers to fair housing around the region, with heavy emphasis on racial and economic disparity, land use
and zoning, and lack of assistance and resources. Programs were identified to reduce barriers in the City,
including adjusting zoning amendments to expand affordable and alternative housing opportunities and
increasing accessibility to information.
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% and
provided more exceptions to applicable zoning and development standards. One significant
update is if a 100% affordable development is located within half a mile of a major transit stop,
the City cannot impose any density limits and is entitled to a maximum height increase of three
additional stories or 33 feet.
• Remove Density requirements in certain zoning districts.
• 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
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 36
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 has historically used in-lieu fees and 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 making changes to its BMR program and adopted a new fee
structure. The ordinances became effective on June 19, 2017.
• Fair Housing: Protect tenants from displacement through more robust tenant protections and
better access to legal services. The City annually provides CDBG funding to Project Sentinel, a non-
profit entity that provides expertise in fair housing law and tenant-landlord disputes. Program
services include information, referrals, community outreach, and education. In addition, Project
Sentinel resolves fair housing complaints via investigation, mediation, education and outreach to
both property owners and tenants about fair housing policies.
• Fair Housing: Increase access to lending opportunities for residents of historically low-income
communities of color.
• Housing Incentive Program (HIP): Effective May 2, 2019, the HIP was enacted as an alternative to
the State Density Bonus law and provides development incentives including no housing density
restrictions, increased floor area ratios and increased lot coverage. The HIP is available to specific
areas of the City where higher-density development is encouraged.
• 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 commercially 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.
• The average Palo Alto home, as of February 1, 2023, costs about 8 times the national average
home price, and the monthly rent is about 2.5 times the national average.
• Title 18 (Zoning) Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units:
The City recently updated amended its Ordinance Title 18, which included “the development
of a single-family home, ADU, and/or a JADU on a lot that allows for single-family
development shall not be considered a multifamily development pursuant to PAMC Section
18.04.030, nor shall they require Architectural Review pursuant to other sections of Chapter
18. In addition to addressing the square footage height restrictions, 18.09.040
• The City Amended Chapter 9.68 (Rental Housing Stabilization) of the Municipal Code to expand
just cause eviction protections to Palo Alto renters, including reducing the minimum time period
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 37
required for renters to qualify for just cause eviction protections.
Discussion
Please see above.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 38
AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The following provides a description of today's obstacles and or barriers to meeting LMI or underserved
populations, including vulnerable populations, housing preservation needs, lead-paint issues, increased
earning capacity for LMI households, city delivery structure for supporting needed services, and regional
approaches to serving and helping the homeless populations.
Actions planned to address obstacles to meeting underserved needs
The City collaborative works with social service providers, affordable housing developers, housing
preservation entities, fair housing and homeless assistance agencies to address obstacles to permanent
housing for all residents. To address this, the City supplements its CDBG funding with other resources and
funds, such as:
• Support social services entities including Alta Housing and Catholic Charities that provide needed
supportive services for extremely low-income and or elderly residents.
• In FY 2022-23, the City’s Human Service Resource Allocation Process (HSRAP) provided $622,377
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.
• Support low income persons with disabilities. Provide CDBG funds to Silicon Valley Independent
Living Center (SVILC) with case management needs.
• Support the city’s homeless population through CDBG awards and other funding sources to:
LifeMoves Shelter and proposed Homekey Palo Alto shelter development project.
• 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.
• Continue to locally support, through General City Funds, the Downtown Streets Team to reduce
homelessness through a “work first” model. Downtown Streets Team uses its community
connections to provide training and job opportunities to homeless people, specifically in the
downtown area.
Actions planned to foster and maintain affordable housing
The City will foster and maintain affordable housing by continuing the following programs and ordinances:
• Support low income homeowners through annual CDBG allocations for housing rehabilitation.
Provide CDBG funds to Rebuilding Together Peninsula to preserve existing affordable housing
stock. The City is also planning an affordable housing rehabilitation and replacement project,
Buena Vista Mobile Home Park that will benefit approximately 270 residents.
• Support Community Work Group (Abode) with CDBG funds to preserve 10 affordable housing
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 39
units.
• Annual CDBG allocations to Rebuilding Together Peninsula to preserve existing affordable housing
stock.
• A Business Tax was approved in late 2022 to fund affordable housing, public safety, homeless
services, rail crossing safety, and general city services.
• 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.
• Apply to both the State of California HOME program, and the County’s HOME Consortium to fund
supported affordable housing projects.
• The Commercial Housing Fund and Residential Housing Fund are used by the City to assist new
housing development or the acquisition, rehabilitation, or the preservation of existing housing for
affordable housing.
• The Density Bonus Ordinance 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.
• The City is collaborating with Santa Clara County and Eden Housing in the development of Michell
Park Place, a new affordable housing development project providing 50 affordable units located
in one of the City’s LMI census tracts.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides technical assistance, information, and referrals 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 be 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.
Rebuilding Together Peninsula, through its housing rehabilitation program, ensures each rehab includes
lead-based paint assessment and mitigation on impacted areas for each housing case.
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 2024-25, these programs will
include the following:
• LifeMoves provides basic necessities for persons who are homeless or at risk of becoming
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 40
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.
• Homekey Palo Alto, although not CDBG funded, is supported by the City and other state and
federal resources to build a new interim housing shelter that will serve over 200 individuals
annually. This new facility includes 88 rooms with interior shows and restrooms.
• Alta Housing provides 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.
• WeeCare provides business services and best management practices for small daycare businesses
in the City. Many of which provide childcare for LMI families.
• Buena Vista Mobile Home Park development project, although not CDBG funded, is supported by
the City to replace, and increase the number of residential units in the development. Plus improve
neighborhood amenities include walking trails, bulk trash removal, new water/sewer
infrastructure.
Actions planned to develop institutional structure
The administration of the City’s CDBG program requires collaboration between several departments
including the finance department, administration, Human Services, and Planning and Development
Services Department staff. The Planning and Development Services Department assigns critical staff to
manage project development, subrecipient contracting and technical assistance, consultant
management, collaboration with public works department staff, and fund draws and activity spending.
The Finance Department assists in the process by reconciling CDBG and City budget accounts and draw
approvals. The Human Relations Commission and Council hold public hearings and recommend
recommendations and final approvals of annual CDBG project activities and projects.
The City strives to improve intergovernmental and private sector cooperation to synergize efforts and
resources and develop new revenues for community service needs and affordable housing production.
Collaborative efforts include:
• Regular meetings between entitlement jurisdictions at the CDBG Housing Coordinators meetings
and Regional Housing Working Group.
• Joint jurisdiction Request for Proposals and project review committees.
• Collaborations between the City’s housing and public works departments.
• 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
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 41
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 continues to participate with other local jurisdictions and
developers in sharing information and resources.
In FY 2024-25, the City awarded CDBG funds to the Alma Garden project for the preservation of 10
residential very low income rental units.
The City is collaborating with Santa Clara County and Eden Housing in the development of Michell Park
Place, a new affordable housing development project providing 50 affordable units located in one of the
City’s LMI census tracts.
In addition to the actions listed above, the City continues to coordinate with the City’s Human Relations
Commission on funding efforts to address community needs comprehensively.
Discussion
Please see discussions above.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 42
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4)
Introduction
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
completed.
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 60,000
2. The amount of proceeds from section 108 loan guarantees that will be used during the year
to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has
not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 60,000
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that
benefit persons of low and moderate income. Overall Benefit - A consecutive period
of one, two or three years may be used to determine that a minimum overall benefit
of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify
the years covered that include this Annual Action Plan. 100.00%
Discussion
Please see the discussion above.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 43
Appendices
APPENDIX A
Public Comments
The City held two Advertised public hearing on February 8, 2024, and June 18, 2024. The draft CDBG
FY2024-25 Annual Action Plan dated February 1, 2024 was circulated for public comments and reviewed
from March 13, 2024, through April 12, 2024. No public comments were received during this 30-day public
comment and review period time. No public comments were received to date, June 3, 2024. All comments
will be accepted and recorded once received. Any written comments received will be in the public
participation document.
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 44
APPENDIX B
Public Notices
• Publication October 2, 2023: Notice of CDBG and CDBG-CV Funding Availability (NOFA)
• Publication January 24, 2024: Notice of Public Review, Comment Period, and Public Hearing for the
FY 2024-25 Community Development Block Grant (CDBG) Annual Action Plan
• Publication March 13, 2024: Notice of Public Review, Comment Period, and Public Hearing for the
Fiscal Year (FY) 2024-25 Community Development Block Grant (CDBG) Annual Action Plan
• Publication June 3, 2024: Correction Notice - Public Hearing Date Change, Notice of Public Review
and Public Hearing for the Fiscal Year (FY) 2024-25 Community Development Block Grant (CDBG)
Annual Action Plan
•
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 45
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 46
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 47
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 48
FY2024-25 ANNUAL ACTION PLAN DRAFT Page | 49
APPENDIX C
Application for Federal Assistance SF-424 Forms and Certifications
(to be completed and signed after City Council action on the CDBG FY 2024-25 Annual Action Plan)
*NOT YET ADOPTED*
ATTACHMENT B
0160144_KB2_20240529_AY16
Resolution No. _______________
Resolution of the City Council of the City of Palo Alto Approving the Use of Community
Development Block Grant for Fiscal Year 2024-25 and Substantial Amendments for the Use of
Community Development Block Grant Fiscal Year 2021-22, Fiscal Year 2022-23 & CDBG CARES
Act Funds for Fiscal Year 2020-21
R E C I T A L S
A. On May 1, 2020, the Palo Alto City Council approved and adopted a document entitled
“Consolidated Plan” which identified and established the Palo Alto housing and non-
housing community development needs, objectives, and priorities for the period July 1,
2020, to June 30, 2025.
B. The Fiscal Year 2024-2025 Annual Action Plan, Substantial Amendments, and the annual
funding update to the Consolidated Plan, was subjected to public review and commentary
during the period from March 13, 2024 through April 12, 2024.
C. The potential uses of Community Development Block Grant (CDBG) and CDBG CARES Act
(CDBG-CV) funds were evaluated in light of the needs and objectives identified in the
Consolidated Plan and reflected in the recommendations and comments of the Human
Relations Commission Selection Committee, Human Relations Commission, and other
interested citizens.
D. Under the CDBG program, the highest priority is given to activities which will benefit
persons with low and moderate incomes. As an extension, under the CDBG-CV program,
the highest priority is given to activities which prevent, prepare for, and respond to
coronavirus.
E. The City Council and the Human Relations Commission held publicly noticed public
hearings on the proposed uses of the CDBG and CDBG-CV funds for Fiscal Year 2024-25,
as well as the proposed Substantial Amendments for the proposed reprogramming of
Community Development Block Grant funds from Fiscal Year 2021-22, Fiscal Year 2022-
23 funds & CDBG-CV funds for Fiscal Year 2020-21.
F. CDBG and CDBG-CV funds allocated to the City for Fiscal Year 2024-2025 are proposed to
implement the programs described in this resolution.
*NOT YET ADOPTED*
ATTACHMENT B
0160144_KB2_20240529_AY16
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. The uses of CDBG funds for Fiscal Years: 2024-25, 2021-22, 2022-23,
2023-24, and CDBG-CV funds for Fiscal Year 2020-21 are hereby approved and authorized for
the following programs:
Name of Program Amount
1. Alta Housing – SRO Resident Support Services Program. Provide in-
house case management and counseling services to residents at Barker
Hotel and Alma Place.
$11,575
2. Catholic Charities of Santa Clara County – Long Term Care Ombudsman
Program. Advocate for the rights of seniors and disabled residents in
long term care facilities.
$7,575
3. LifeMoves – Case Management. Provide case management services to
Opportunity Services Center and Hotel De Zink clients in locating housing
and/or employment and be connected to benefits.
$28,847
4. Silicon Valley Independent Living Center – Case Management. Provide
case management services to low-income individuals with disabilities to
secure affordable and accessible housing.
$14,075
5. Project Sentinel – Fair Housing Services. Provide fair housing services
including complaint investigation, counseling, advocacy, and community
education
$15,575
6. WeeCare/Upwards - a microenterprise business that will provide Palo
Alto childcare business improvement services. $120,000
7. Rebuilding Together Peninsula – Safe at Home. Provision of critical
health and safety related home repair needs for low-income Palo Alto
homeowners.
$73,585
8. Community Work Group/Abode – Alma Garden. 10 LMI households will
benefit from apartment unit improvements. $404,800
9. Fire Station – Sidewalk Improvements Project. Reconstruct the
sidewalk, curbs, and curb ramps to current ADA accessibility standards
at the intersection area of Meadow Drive and Middlefield Road.
$62,645.61
10. Homekey Palo Alto – Recreation Project. This project will provide a
recreation area and recreation equipment at the HomeKey Palo Alto
shelter.
$185,000
*NOT YET ADOPTED*
ATTACHMENT B
0160144_KB2_20240529_AY16
11. CDBG Program Planning and Administration $114,730
Total CDBG Funds $1,037,807.61
12. CDBG-CV MOVE Mountain View – Safe Parking Program $110,000.00
13. CDBG-CV Program Planning and Administration $9,478.74
Total CDBG-CV Funds $119,478.74
SECTION 2. The total amount set forth under Section 1 of this resolution represents
the proposed allocation of $513,653 in CDBG funds from the United States Department of
Housing and Urban Development (HUD) for Fiscal Year 2024-2025, $60,000 in anticipated
program income to be receipted in Fiscal Year 2024-25 from Alta Housing (previously known as
Palo Alto Housing Corporation), and a total of $464,154.61 in prior years' resources (FY 2021-22
$191,018.05, FY 2022-23 $269,435.96, FY 2023-24 $3,700.60) from canceled projects and
remaining unspent funds of closed completed projects. Substantial Amendments are required
for FY 2021-22 CDBG, FY 2022-23 CDBG, and CDBG-CV Funds. Available CDBG-CV funds total
amount of $119,478.74, including unspent funds from the canceled LifeMoves-COVID-19 Testing
project ($34,200.50) and unspent CDBG-CV Planning & Administration funds ($85,278.24).
SECTION 3. The City staff is hereby authorized to submit the Annual Action Plan to
Fiscal Year 2024-2025, CDBG Substantial Amendment to Fiscal Year 2021-22 & CDBG Substantial
Amendment to Fiscal Year 2022-23 and CDBG-CV Substantial Amendment to Fiscal Year 2020-21
Annual Action Plan, update and appropriate funding to HUD, and such money shall be spent as
set forth in this resolution. The Mayor, City Manager, and any other designated City staff or
officials are hereby authorized to execute such application forms and any other necessary
documents to secure these funds. The City Manager or designee is authorized to sign all
necessary grant agreements with the program providers set forth in Section 1.
SECTION 4. The City staff is hereby authorized to draft and execute loan documents
and a regulatory agreement to secure a $404,800 loan to Community Working Group/Abode for
the Alma Gardens Rehabilitation project.
SECTION 5. The funding amounts set forth in Section 1 of this resolution are based on
final allocation amounts from the Federal Fiscal Year 2024-25, Fiscal Year 2021-22, Fiscal Year
2022-23 & Fiscal Year 2023-24 & CARES Act (CDBG-CV) Fiscal Year 2020-21, HUD appropriations;
City Staff is authorized to adjust increasing or decreasing the funding amounts set forth herein as
consistent with the adopted Citizen Participation Plan.
//
//
//
//
//
*NOT YET ADOPTED*
ATTACHMENT B
0160144_KB2_20240529_AY16
SECTION 6. The City Council hereby finds that the Fiscal Year 2024-25, Fiscal Year 2021-
22, Fiscal Year 2022-23 & Fiscal Year 2023-24 & CARES Act (CDBG-CV) Fiscal Year 2020-21, CDBG
& CDBG-CV program authorized under Section 1 of this resolution is not a project under the
California Environmental Quality Act (CEQA). However, the Council further authorizes and
directs City staff to prepare certifications that may be required, under CEQA and the National
Environmental Policy Act (NEPA), for each project under the Fiscal Year 2024-25 CDBG & CDBG-
CV program prior to the release of funds for any such project.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
__________________________ __________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
__________________________ __________________________
Assistant City Attorney City Manager
__________________________
Director of Planning and
Development Services
1
Attachment C: Human Relations Commission Review Summary
The CDBG federal allocations for FY 2024-25 were not known at the time of the HRC public
hearing on February 8, 2024. For budgeting purposes, staff estimated the City’s HUD entitlement
grant for FY 2025 as a 0.8% reduction from the entitlement grant amount from previous year FY
2023-2024. Therefore, the total amount considered by the HRC as available for CDBG allocation
FY 2024-25 was $1,122,415.01, including the estimated FY 2024-25 entitlement grant ($510,000),
estimated program income ($60,000), and estimated unspent funds from prior years
($552,415.01). The estimated total available in CDBG-CV funding for FY 2024-25 is $119,478.74,
including unspent funds from the canceled LifeMoves-COVID-19 Testing project ($34,200.50) and
unspent CDBG-CV Planning & Administration funds ($85,278.24).
The HRC considered the funding recommendations of the HRC Selection Committee1 and voted
unanimously to recommend Council approval of the draft FY 2024-25 AAP.
The HRC discussed proposed funding allocations based on the program budget, availability of
additional resources, HUD spending caps, and the total available CDBG and CDBG-CV funds. Key
points of the HRC discussion included:
•A summary of the application selection process, reasons for selection, and agency
capacity;
•A summary of HRC Selection Committee deliberations;
•A summary of the HRC Selection Committee’s recommended Contingency Plan and
clarification of the desire to support LifeMoves at a level closer to half their requested
amount, if feasible;
•Information on the definitions of income levels and income limits, which are influenced
by family size, varying by county (Palo Alto uses HUD’s FY 2023 Income Limits Area for
Santa Clara County Metropolitan area2, effective May 15, 2023, with HUD's acronym for
low-income limits being LMI);
•Consideration of increasing funding toward homelessness services in future funding years
if it could be learned if CDBG funds directly resulted in the reported 25% decrease in
homelessness in Palo Alto in 2023 year;
•Clarifications on unspent funds, which are the result of applicants cancelling approved
projects, not using all of their available allocation, no longer needing their available
allocation, or remaining funds being left due to the lifting of COVID-19 mandates; and
•Clarifications on the reduction of funds to CDBG Program Administration resulting from
the interplay of the 20% spending cap on this funding category combined with a
forthcoming reduction in program income receipts for FY 2024-25.
1 February 8, 2024 Human Relations Commission staff report:
https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=d37a6bbc-0569-4d6b-91db-05b16a3dabc0
2 Source: https://www.huduser.gov/portal/datasets/il/il2023/2023summary.odn
2
The HRC’s recommended contingency plan is as follows:
A. If more funds are received than estimated:
1.Ensure funding caps are met for Public Services and Planning & Administration
categories;
2.Increase LifeMoves' FY 2024-25 allocation to $34,960, or as near as feasible;
3.Retain the currently recommended funding for Project Sentinel;
4.If there are surplus funds available, allocate additional funding proportionally to
other Public Services applications based on their recommended shares, provided
they are not fully funded;
5.Allocate any remaining un-capped funds to the Public Facilities project(s).
B. If less funds are received than estimated:
1.Ensure funding caps are met for Public Services and Planning & Administration
categories;
2.Decrease funding across each of the Public Services applications proportionate to
the overall decrease in funding;
3.If possible, maintain full funding for both Housing Rehabilitation projects and the
Economic Development project; and
4.Decrease un-capped funds from the Public Facilities project(s).
FY 2024-25
Community Development Block Grant
Annual Funding Allocations
Public Hearing #2
City Council –June 18, 2024 www.cityofpaloalto.org1
Presenters:
Rebecca Atkinson, Planner, City of Palo Alto
Tina Roseberry, Manager, Michael Baker International
2
Meeting Purpose
Hold a Public Hearing on the
draft Community Development
Block Grant (CDBG) FY 2024-25
Annual Action Plan
City Council review and approval
of the CDBG FY 2024-25
Annual Action Plan
3
Funding Categories
&
Proposed Subrecipients
•Alta Housing -SRO Resident Support Services $11,575
•Catholic Charities of Santa Clara County –Long Term Care Ombudsman Program $7,575
•LifeMoves –Case Management $28,247
•Silicon Valley Independent Living Center (SVILC)–Case Management $14,075
•Project Sentinel –Fair Housing Services $15,575
CDBG Public Services –15% Cap
•WeeCare/Upwards $120,000
CDBG Economic Development
•Rebuilding Together Peninsula (RTP) –Safe at Home $73,585
•Community Work Group/Abode –Alma Garden $404,800
CDBG Housing Rehabilitation
•Fire Station –Sidewalk Improvement Project $62,645.61
•Homekey Palo Alto –Recreation Project $185,000
CDBG Public Facilities and Improvements
•City of Palo Alto $114,730
CDBG Planning & Administration –20% Cap
•MOVE Mountain View –Safe Parking Program $110,000
CDBG-CV Public Services –No Cap
•City of Palo Alto $9,478.74
CDBG-CV Planning & Administration –20% Cap
4
Recommendations
The Human Relations Commission (HRC) and staff recommend that the City Council:
1.Adopt the draft Fiscal Year (FY) 2024-25 Annual Action Plan (AAP, Attachment A) and the associated CDBG FY 2024-25 Annual
Action Plan Resolution (Attachment B) allocating Community Development Block Grant (CDBG) and CDBG CARES Act (CDBG-
CV) funding for FY 2024-25, as amended to include funding for Life Moves at $28,247;
2.Authorize the City Manager to execute the FY 2024-25 CDBG Application to fund the FY 2024-25 Annual Action Plan and
associated documents concerning the application, and to otherwise bind the City with respect to the applications and
commitment of funds;
3.Authorize staff to submit the Fiscal Year 2024-25 AAP (Attachment A) to the U.S. Department of Housing and Urban
Development (HUD) by the July 6, 2024, deadline;
4.Authorize the City Manager or designee to draft and execute a loan agreement, regulatory agreement, and related documents
necessary to implement City Council direction on the Alma Garden Rehabilitation Project in a form consistent with the City’s
affordable housing loan documents and approved by the City Attorney; and
5.Amend the Fiscal Year 2025 Budget Appropriation for the Community Development Block Grant Fund (2/3 vote needed) by:
a.Increasing Revenue from Other Agencies by $1,157,286
b.Increasing General Expenses by $1,157,286.