HomeMy WebLinkAboutStaff Report 2409-3465 City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORT
Lead Department: City Manager
Meeting Date: December 9, 2024
Report #:2409-3465
TITLE
Housing and Unhoused Services Gap Analysis Report
RECOMMENDATION
This is an informational report, no City Council action is needed on this Housing and Unhoused
Services Gap Analysis report. This report is in response to City Council Priority Objective #52
(“Conduct a gap analysis of housing and services for the unhoused in Palo Alto, considering
Council direction, City activities and work, and County activities and work”).
EXECUTIVE SUMMARY
The City Council directed staff through the City Council Priority Objectives to (1) conduct a gap
analysis of housing and unhoused services in Palo Alto, considering City Council direction, City
activities and work, and County activities and work, and (2) explore clearer data on the
population and condition of unhoused people in Palo Alto. This staff report provides a high-
level summary of the gap analysis report and incorporates relevant contextual information
from data on unhoused Palo Altans. This information provides a foundation for City Council
discussion staff will bring forward in 2025.
BACKGROUND
When speaking of housing in tandem with services for the unhoused, the key efforts are
focused on housing stability to help people stay housed through renter protections and
homeowner assistance programs in addition to achieving consistent housing for those that are
unhoused. Efforts towards housing stability for homeowners would include homeowner
assistance services such as temporary financial support, legal services, and case management
for those at risk of losing their homes. For unhoused individuals, housing stability is distinct
from less stable housing such as couch surfing or staying in overcrowded conditions with
friends or family. Housing stability also requires adequate available affordable housing.
The City of Palo Alto increased its focus on housing stability and services for the unhoused in
recent years. In April 2021 staff provided a report1 to the City Council that included the City’s
efforts on unhoused services using the strategies found in the Santa Clara County Community
Plan to End Homelessness 2020-2025.2 This discussion was a foundation for the City Council to
review the Santa Clara County Community Plan and later to pursue a Homekey grant. The City
Council unanimously voted on August 9, 2021 to adopt a resolution endorsing the Santa Clara
County Community Plan to End Homelessness with the Plan’s goals to achieve countywide:
•A 30% reduction in the annual inflow of people becoming homeless,
•Housing 20,000 people through the supportive housing system,
•Expanding the homelessness prevention system and other early interventions to serve
2,500 people annually,
•Doubling temporary housing and shelter capacity to reduce the number of people
sleeping outside, and
•Addressing the racial inequities present among unhoused people and families and track
progress toward reducing disparities.
This plan consists of three high level strategies, which are shown below in bold, together with
related City efforts in the past several years on housing and unhoused services in support of the
Plan’s strategies:
1. Address the root causes of homelessness
•Renter Protections – In 2023, the City Council expanded a variety of renter
protections. This included a lower security deposit limit for unfurnished rental units
as well as an extension of just cause eviction protections and decreasing the amount
of time a renter must be in a property to qualify for renter protections. After City
Council approval, a new renter registry program launched October 1, 2024 to assist
with supporting data-informed policies and future programs and resources.
2. Improve the quality of life for the unsheltered individuals and create healthy
neighborhoods for all
•Safe Parking – The City piloted an interim safe parking ordinance and a three-year
lease with Santa Clara County for RV safe parking. The City Council approved the
permanent ordinance in 2023 and the RV safe parking expansion in 2024.
1 City Council Staff Report, April 5, 2021 Attachment D-Stories from Providers (cityofpaloalto.org)
2 City Council Action Minutes, August 9, 2021
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=3354&compileOutputType=
1
•Shelter – The City applied for and was awarded State Homekey funds in late 2022.
Milestones included: a cost reduction redesign and additional funding secured in
2023, permit approval and construction in 2024 and opening scheduled for 2025.
•Resources – A new position (Assistant to the City Manager) was added in 20223 to
provide support on housing projects and programs and coordinate multi-
departmental efforts related to unhoused services. The City’s work in this area has
advanced, including contributing to the release of a comprehensive status report4
and leveraging State Permanent Local Housing Allocation funds to pilot an outreach
worker program in 2023. Improved communication and coordination relating to
vehicle dwellers and the Caltrans El Camino Real Bikeway project. Staff also
managed a federal earmark/grant to augment North County TRUST program
(Trusted Response Urgent Support Team), an alternative response program, by
providing case management, outreach and Mental Health First Aid training.
3. Expand homelessness prevention and housing programs
•Housing – The City contributed $20.5 million to the 59 affordable housing unit
Wilton Court Apartments (opened in 2022), held the first affordable housing
resource fair, and established a temporary Housing Ad Hoc Committee in 2023. In
2024, the City received Housing Element certification and worked to advance the
development plan to maintain affordability and improve conditions at the Buena
Vista Mobile Home Park as affordable housing.
Recently, at the December 2023 City Council meeting, during City Council discussion5 of safe
parking, Councilmembers indicated a desire to better understand the Palo Alto unhoused
population. City Council directed staff to “explore clearer data on the population and condition
of unhoused in Palo Alto.” This direction was elevated into a City Council Priority Objective that
also included exploring safe parking expansion, “Initiate research to understand Palo Alto
unhoused population and explore feasibility of expanding safe parking options Geng Road.”
The research piece of that objective became what is Attachment B to this staff report,
“Understanding the Unhoused Community in Palo Alto (Understanding the Unhoused).” During
the January 2024 City Council retreat and the spring budget hearings, Councilmembers
indicated an interest in having a direction and plan for housing and services for the unhoused.
The resulting City Council Priority Objective, as approved March 25, was to, “conduct a gap
analysis of housing and services for the unhoused in Palo Alto, considering City Council
direction, City activities and work, and County activities and work.” The resulting report is
included with this staff report as Attachment A, “Housing and Unhoused Services Gap Analysis
in Palo Alto (Gap Analysis).”
3 City Council Staff Report, October 25, 2021 20211025pccsm-linked-w-times.pdf (cityofpaloalto.org)
4 City Council Staff Report March 20, 2023
https://url.usb.m.mimecastprotect.com/s/OePKCXYG6Dhj5kMF7Spb6?domain=cityofpaloalto.primegov.com
5 City Council Meeting https://www.youtube.com/watch?v=A-2CuhXvs84
ANALYSIS
Undertaken concurrently, the Gap Analysis examines the City and County work being done to
address needs relating to housing, housing stability, and homelessness, while the
“Understanding the Unhoused” report provides data on people currently experiencing
homelessness in the community. This data provides context for the Gap Analysis. For example,
the “Understanding the Unhoused” report notes that “More people in Palo Alto experiencing
homelessness are unsheltered (91%) than countywide (75%) and are more likely to be
sheltering in a vehicle in Palo Alto (88%) than countywide (32%).” Complimentary to this data,
the Gap Analysis discusses the role of shelter options such as hotel vouchers, and how more
affordable housing improves shelter and safe parking throughput.
The below infographic from the “Understanding the Unhoused” report provides insight into
people experiencing homelessness in Palo Alto in 20246. This illuminating data, together with
the Gap Analysis, are foundational to future effectiveness on this topic. Together, these two
reports document the baseline conditions, providing an understanding of:
•Who is currently experiencing homelessness,
•What services are available to both prevent and address homelessness, and
•Whether there is enough affordable housing in the pipeline for people to achieve
housing stability.
This understanding of baseline conditions can be used to inform a strategy for addressing
homelessness in Palo Alto, which staff anticipate advancing for City Council discussion in 2025.
The City of Palo Alto offers a variety of services and programs to people experiencing
homelessness, as well as those in danger of becoming homeless. As described in the
attachments, the City of Palo Alto has both opportunities and challenges relating to housing
and unhoused services.
The Gap Analysis organized Palo Alto‘s current programs and services in the same categories as
described in the County‘s Community Plan to End Homelessness. These categories, as shown
above are: 1) addressing the root causes of homelessness through system and policy change; 2)
improve quality of life for unsheltered individuals and create healthy neighborhoods for all; and
3) expand homelessness prevention and housing programs to meet the need. The Gap Analysis
notes where there are gaps and/or opportunities for additional or alternative approaches. The
Gap Analysis key considerations and ideas are summarized below:
1.Addressing the root causes of homelessness through system and policy change
•While there are a variety of renter protections and anti-displacement provisions,
they all require households to be informed as to their rights and require pursuing
6 Infrographic from “Understanding the Unhoused Community in Palo Alto”, see attachment. Data from Palo Alto
affiliated individuals taking an assessment to receive services between July 1, 2023 and June 30, 2024. Veteran
data was gathered from September 1, 2022 to August 31, 2024.
mediation or a court process. There is not a proactive monitoring system related
to the protections or provisions.
•The City is employing several strategies to increase the supply of affordable
housing, including a dozen Housing Element programs. There are also additional
strategies the City could consider.
•The City has staff working on housing, housing stability, and homelessness,
located in three different departments. This reflects the range of city functions
that intersect with homelessness issues. Development of a primary
organizational unit in the City responsible for housing stability and homelessness
could develop specific goals tailored to the City’s needs, lead to a focus on
getting affordable units built, and apply for funding opportunities and develop
funding strategies, among other things.
2. Improve quality of life for unsheltered individuals and create healthy neighborhoods
for all
•There are a variety of services available in Palo Alto, yet many seeking shelter
find it outside of Palo Alto or remain unsheltered (i.e., in a vehicle, on a couch, or
outdoors). The barriers potentially leading to this include shelter capacity /
availability and concerns about privacy, rules, and safety while within congregate
shelter.
•Transportation can be difficult when services and programs are not nearby. For
example, some services are only available in San Jose, an hour’s commute via
public transit.
•Timely communication is necessary to leverage services and gain housing, but
access to wi-fi, computers and phones may be inconsistent.
3.Expand homelessness prevention and housing programs to meet needs
•The City has 2,336 affordable units; however, many are already full and there are
long (and, in some cases, closed) waitlists.
•The pipeline for affordable housing is encouraging but still lower than and not
matching to the existing need. For example, for 120 people waiting for
permanent supportive housing, there are currently no such units in the pipeline.
•There are a variety of funding options from the City, County, and State, however,
the competition for this money is high and demand outnumbers available funds.
In addition to reviewing existing programs and services in Palo Alto, the Gap Analysis also
considered the literature and work being done in other communities. From this, the Gap
Analysis made some key findings, noting the limits of congregate shelter, the high demand for
and low availability of affordable housing, the high costs associated with building new
affordable housing, and the limits of enforcement. In terms of roles, while the County holds the
ultimate responsibility for the “Continuum of Care,” overseeing the services and programs that
help people experiencing homelessness to attain housing, the City stills plays several important
and distinct roles. Besides supporting the County’s work by funding a variety of services and
programs relating to housing, housing stability, and homelessness, the City is also responsible
for maintaining order and public safety in the community and enforcing the rule of law where
violations exist.
Enforcement:
In other agencies, encampment clearing and cleaning is an unavoidable dimension of
addressing homelessness. Palo Alto's approach to encampment clearing and cleaning involves a
combination of compassionate outreach and regulatory measures aimed at addressing the
complexities of homelessness in the city. Overall, Palo Alto's approach aims to be both humane
and practical, recognizing the need to enforce state and local health and safety laws while
prioritizing the well-being of individuals experiencing homelessness, recognizing that the state
of being homeless is not a crime or violation of the law.
Site Cleanups: The City enforces state and local laws to maintain public safety and cleanliness.
This can include laws addressing public nuisances and regulations about camping in public
spaces, with the goal of balancing the needs of homeless individuals and the wider community.
When there is a need to clear an accumulation of items (e.g., from parking garages), the City
provides advance notice before clearing a site, ensuring that individuals are offered the
opportunity to gather and relocate their belongings.
Law Enforcement: While the primary focus is on supportive services, law enforcement may be
involved when there are issues related to individual behavior which impacts overall public
safety. Police officers take enforcement action where necessary, using a variety of state and
local code provisions and respecting the rights and dignity of persons experiencing
homelessness. The Police Department includes a special detail unit / team that regularly
interacts with unhoused community members to offer assistance and works with local
businesses and residents to address impact issues.
Most enforcement involves misdemeanor offenses, which are typically resolved by the issuance
of a citation with a court date. Prosecution relies on the District Attorney, Public Defender and
Superior Court.
Lastly, California voters in the 2024 Election approved Proposition 36 which could have
unknown impacts on Palo Alto’s unhoused population. The Proposition creates a new process
for some drug possession crimes, and also allows for felony prosecution of certain drug
possession and petty theft offenses which are otherwise misdemeanors. These changes could
impact some unhoused individuals in Palo Alto and more broadly.
Considerations:
In terms of methods for addressing the above summarized gaps and opportunities for
alternative approaches, the Gap Analysis highlighted that Palo Alto could consider some or all
of the following:
•Understanding the limits of congregate shelter: addressing the need for shelter in Palo
Alto by increasing non-congregate shelter using hotel voucher programs or converting
hotels into shelters.
•Contributing funds to the County’s Homelessness Prevention System7 as well as
increasing awareness of its resources to stem the inflow of new people into
homelessness.
•Increasing the throughput from shelters and safe parking to permanent housing and
increasing affordable options for cost-burdened renters as a form of homelessness
prevention. Pursuing additional new funding sources for affordable housing and
considering additional programs to require and/or incentivize affordable housing.
•Increasing alignment and efficiencies, adding staff to increase ability to advance
priorities, identify and utilize new funding opportunities, and pursue goals tailored to
community needs by establishing a housing stability team.
Pursuing any of these methods would require further examination of feasibility and resource
considerations. As previously mentioned, these observations from the Gap Analysis, together
with the data from the “Understanding the Unhoused Community in Palo Alto” report, staff
plan to use to inform a strategy for addressing homelessness in Palo Alto, which staff anticipate
bringing to City Council in 2025.
FISCAL/RESOURCE IMPACT
This report is for information sharing only as the foundation for future discussions. No
additional funding is requested with this item. The Gap Analysis work was funded with $50,000
from the fiscal year 2024 City Manager Contingency Fund.
STAKEHOLDER ENGAGEMENT
Staff consulted with colleagues and professionals with experience locally and regionally.
Additionally, as noted in the attachments, the Gap Analysis and the “Understanding the
7 The Homelessness Prevention program provides financial assistance, legal support, and case management to
people at risk of losing their homes. It is funded by both private sector and public agencies, including the State,
Santa Clara County, and the Cities of Morgan Hill, San Jose, and Santa Clara. https://preventhomelessness.org/
Unhoused” report both relied on meeting with community partners, service providers, City
staff, and other subject matter experts.
ENVIRONMENTAL REVIEW
Receipt of this report is not a project for the purposes of the California Environmental Quality
Act.
ATTACHMENTS
Attachment A: Housing and Unhoused Services Gap Analysis
Attachment B: Understanding the Unhoused Community in Palo Alto
APPROVED BY:
Ed Shikada, City Manager