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HomeMy WebLinkAboutStaff Report 2412-3878CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, February 10, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     3.Housing and Homelessness in Palo Alto: Review of current efforts including the 2024 Gap Analysis Report, Update on Enforcement Work, Overview of Engagement Framework to Develop an Implementation Plan, and Discussion of Other Potential Next Steps Staff Presentation   City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: City Manager Meeting Date: February 10, 2025 Report #:2412-3878 TITLE Housing and Homelessness in Palo Alto: Review of current efforts including the 2024 Gap Analysis Report, Update on Enforcement Work, Overview of Engagement Framework to Develop an Implementation Plan, and Discussion of Other Potential Next Steps RECOMMENDATION Staff recommends that Council: 1. Receive an update on actions taken regarding unhoused services coordination in Palo Alto including discussion and feedback on the Council-directed 2024 Palo Alto Gap Analysis Report (Dec. 9, 2024 Information Report1). 2. Receive an overview of local enforcement efforts and changes in state and federal law. 3. Receive an overview of the suggested community engagement next steps related to the development of an Implementation Plan Addressing Homelessness in Palo Alto, potentially including: 3.1. Consideration of a referral to the Human Relations Commission (HRC) to discuss and review the Gap Analysis Report with the intention for the HRC to recommend areas of priority to the Council; and 3.2. Engagement and outreach to develop an Implementation Plan to Address Homelessness in Palo Alto for Council consideration and approval. 4. Discuss items 1-3 above and have an initial discussion of 3 broad topics: housing production and homelessness prevention programs, homelessness support services, and enforcement efforts related to health and safety. Refer follow-up discussions to the Policy and Services Committee (if desired) and advance the engagement efforts described above. 1 Council Information Report, December 9, 2024 https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6549&meetingTemplateType=2&comp iledMeetingDocumentId=12534 EXECUTIVE SUMMARY At the direction of Council in setting 2024 Priority Objectives, staff prepared a baseline conditions analysis of services related to housing and unhoused services in Palo Alto. Staff also prepared a report on the current unhoused population in Palo Alto. These reports were shared with the Council on Dec. 9, 2024 as an Information Report. As a next step beyond this baseline information, staff is requesting Council discussion of the report and current unhoused services coordination. Specifically, Council initial feedback is requested on 1) housing production and homelessness prevention programs, 2) homelessness support services, and 3) enforcement efforts related to health and safety. More specific questions to explore are the adequacy of homelessness prevention programs to reduce the number of people entering homelessness; the adequacy of housing production to increase the number of people exiting homelessness; what support and capacity the City can commit to unhoused support services; and what enforcement strategies would foster community health and safety. Staff will pursue a facilitated community engagement effort as a next step of information gathering to help inform the next Council discussion and subsequent next steps on this important topic. This information can be used in the creation of an implementation plan addressing homelessness in Palo Alto if such a strategy is desired as a next step to ensure balance among competing needs. BACKGROUND The City of Palo Alto has prioritized housing stability and services for the unhoused in alignment with regional efforts outlined in the Santa Clara County Community Plan to End Homelessness 2020–20252. In April 2021, City staff presented a report to the Council highlighting strategies for addressing homelessness, which served as a foundation for reviewing the County Plan and later pursuing a Homekey grant.3 On Aug. 9, 2021, the Council unanimously endorsed the Plan’s goals, including reducing the annual inflow of homelessness, increasing supportive housing, expanding prevention services, doubling shelter capacity, and addressing racial inequities among the unhoused population. The three pillars of the County Plan are to 1) Address the root causes of homelessness; 2) Improve the quality of life for unsheltered individuals and create healthy neighborhoods for all; and 3) Expand homelessness prevention and housing programs. Since endorsing the County Plan, the City has taken significant steps to advance the Plan’s housing and homelessness strategies. 2 Santa Clara County Community Plan to End Homelessness 2020-2025: https://housingtoolkit.sccgov.org/sites/g/files/exjcpb501/files/CommunityPlan_2020.pdf 3 Council Staff Report, April 5, 2021 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12133.pdf; Council Action Minutes, August 9, 2021 https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=3354&compileOutputType= 1 Key City initiatives include: •Expanding renter protections, •Piloting and later formalizing safe parking programs, •Securing State Homekey funds, and •Contributing to affordable housing projects (such as Wilton Court Apartments). In Dec. 2023,4 the Council identified a need to better understand the unhoused population in Palo Alto, subsequently elevated as a Council Priority Objective which included exploring safe parking expansion, “Initiate research to understand Palo Alto unhoused population and explore feasibility of expanding safe parking options on Geng Road.” During the 2024 Council Retreat and subsequent budget process, Councilmembers indicated an interest in a direction and plan for addressing housing and services for the unhoused. This became a Council Priority Objective to “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.” The resulting gap analysis and related research were presented to Council as an Information Item on December 9, 20245 and are summarized in the Analysis section for Council consideration. An updated version of the Gap Analysis, revised to correct clerical errors in the final row of Table 2.3 (page 21) is included with this report as Attachment A. ANALYSIS Section 1: Status Update on Unhoused Services Coordination in Palo Alto Baseline Conditions The Dec. 9th information item provided much needed data on baseline conditions in Palo Alto, both in terms of the unhoused population and services for that population. Additionally, it clarified key terminology and roles to ensure an understanding of definitions and constraints. For example, people often suggest prioritizing Palo Altans for services or housing.6 However, most permanent supportive housing programs and services addressing homelessness leverage at least some federal funds from the U.S. Department of Housing and Urban Development (HUD). Federal funds require “coordinated entry” and a “Continuum of Care”, which in turn, require things such as no-wrong-door services and prioritization based on vulnerability.7 No- wrong-door means that individuals experiencing homelessness and in need of housing resources should be able to access those through a system that is low-barrier and provides 4 Council Meeting, December 4, 2023 https://www.youtube.com/watch?v=A-2CuhXvs84 5 Council Staff Report, December 9, 2024 https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6666&meetingTemplateType=2&comp iledMeetingDocumentId=12534 6 Council Staff Report, January 13, 2025, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6678&meetingTemplateType=2&comp iledMeetingDocumentId=12763 7 This report describes procedures in place as of the writing of this report. It does not incorporate changes that may be made by the new federal administration. multiple points of entry. This limits the feasibility of geographic preferences for permanent housing programs, though individual client preferences are taken into account whenever possible. Santa Clara County’s coordinated entry system provides a multitude of access points for individuals and families to seek services. The coordinated entry system determines eligibility for programs through an assessment of an individual or household’s vulnerability, based on factors such as disability, experience of gender-based violence, mental health challenges, and other vulnerabilities. Permanent supportive housing and rapid rehousing programs funded using HUD Continuum of Care funding must accept eligible individuals and households from the coordinated entry system regardless of their geographic affiliation within Santa Clara County. However, matchmakers within the Continuum of Care work with eligible households to review available housing options and take their geographic preferences into account whenever possible in determining among possible housing placements. The shelter referral system operates somewhat differently from coordinated entry for permanent housing programs. Shelter referrals, including for the Palo Alto Homekey site, would go through the County’s centralized Here4You call center, then would be referred to sites based on city/area affiliation (e.g., Palo Alto) and household type (e.g., single adult, family with minor children). When working with callers, the Here4You team first attempts to address a caller’s housing crisis using housing problem solving techniques and services prior to shelter placement. If housing problem solving does not resolve the housing crisis, the caller will be placed on the shelter queue. For the Palo Alto Homekey site, priority would be given to those connected to Palo Alto, followed by other North County cities. Here4You outreach staff will be available to support street outreach to unhoused Palo Alto residents to get them onto the waitlist even prior to the opening of the site. Another example relates to definitions. For example, HUD defines unsheltered homelessness as someone whose primary nighttime location is a public or private place not designated for, or ordinarily used as, a regular sleeping accommodation for people (e.g., a car, public park, bus station, campground). HUD does not consider someone to be homeless if they are “couch surfing”, sleeping in crowded situations, or temporarily staying with others due to a loss of housing/hardship—all considered common forms of housing instability among transitional-aged youth ages 18-24.8 Looking at Palo Alto baseline conditions, it is important to also understand the regional and national context. In a recent federal report, data indicates that nationally, homelessness on a single night in 2024 was 771,480 people. This is the highest number ever recorded and an 18% increase over the prior year.9 In contrast to the high national increase, California had a more modest increase of about three percent (3% or 187,084 people), which is also the highest 8 The U.S. Department of Housing and Urban Development (HUD), The 2024 Annual Homelessness Assessment Report to Congress, https://www.huduser.gov/portal/sites/default/files/pdf/2024-AHAR-Part-1.pdf 9 Ibid. historical number recorded for the state. The most recent Santa Clara County count in January 2023 was a one percent (1%) increase (9,903 people) over the prior year countywide, yet a 25% decrease (206 people) for Palo Alto.10 The next count in Palo Alto occurred January 23, 2025. Within this national context, while the City has made significant strides in addressing homelessness and housing instability, it remains a complex challenge locally. The December “Understanding the Unhoused” report highlights key data about individuals experiencing homelessness in Palo Alto. For instance, a higher percentage of people experiencing homelessness in Palo Alto (91%) are unsheltered compared to the countywide average (75%), with a significant portion (88%) living in vehicles. This report complements the Gap Analysis by providing detailed demographic, housing, and service utilization data, serving as a foundation for identifying opportunities and service gaps. Key Facts from Gap Analysis Report The Gap Analysis identifies a mismatch between demand and availability of certain programs and interventions. For example, in 2023 during a single-day count of unhoused vehicle dwellers in Palo Alto, there were 181 individuals in 102 vehicles, including 69 RVs. However, there are only 40 safe parking spots in Palo Alto. Of those, 18 are restricted to passenger vehicles and overnight parking, with only 22 spaces for RVs and 24-hour parking.11 While there is frequently excess capacity at the overnight, passenger vehicle, congregational sites, there has been a waiting list for 24-hour RV parking. Another example is related to people who could benefit from affordable housing and the amount of affordable housing available. In terms of affordable housing with supports in place explicitly for people experiencing homelessness: Table 1: Palo Alto Unhoused Assessed to Need Rapid Rehousing or Permanent Supportive Housing vs. Forthcoming Units12 Service Needs Rapid Rehousing Permanent Supportive Housing Forthcoming (entitled) Units 32 0 Palo Alto Unhoused Residents Assessed to Need Various Services 115 120 10 HUD Exchange, CoC Homeless Populations and Subpopulations Reports, https://www.hudexchange.info/programs/coc/coc-homeless-populations-and-subpopulations- reports/?filter_Year=2024&filter_Scope=CoC&filter_State=CA&filter_CoC=CA-500&program=CoC&group=PopSub. Santa Clara County 2023 PIT Report, https://public.tableau.com/views/PIT2023v2/Exec?:showVizHome=no&embed=true&. 11 In 2023, this number was 16 passenger vehicle spots and 12 RV spots. 12 See Attachment A “Housing and Unhoused Services Gap Analysis in Palo Alto”, updated January 8, 2025, page 18. There are also current Palo Altans who are cost-burdened—or spend more than 30% of their income on housing costs—many of whom would be eligible for an affordable unit if one were available: Table 2: Currently Entitled and Proposed Housing Units (not inclusive of Rapid Rehousing and Permanent Supportive Housing Units) Compared to Cost Burdened Renters13 Income Level Extremely Low Income Very Low Income Low Income Median Income Above Median Income Entitled Units 46 96 49 60 331 Proposed Units (not yet entitled) 3 22 408 51 1,973 Cost- Burdened Renters14 1,460 865 915 550 635 Structure of Gap Analysis Report The Gap Analysis report, which aligns with the Santa Clara County Community Plan to End Homelessness, organizes its findings into three core categories: •Addressing the root causes of homelessness through system and policy changes: Current renter protections and anti-displacement provisions exist but lack proactive enforcement mechanisms. While there are ongoing efforts to increase affordable housing, additional strategies and internal organizational alignment could enhance the City’s capacity to meet local needs. •Improving the quality of life for unsheltered individuals and creating healthy neighborhoods for all: Despite available services, barriers such as shelter capacity, safety concerns, and transportation limitations prevent some individuals from accessing resources. •Expanding homelessness prevention and housing programs to meet demand: While the City has over 2,300 affordable housing units, most are occupied and there are long (in some cases, closed) waitlists, and the pipeline for new units remains insufficient. For example, there are no permanent supportive housing units in development, despite significant demand. 13 See Attachment A “Housing and Unhoused Services Gap Analysis in Palo Alto”, updated January 8, 2025, page 21. 14 This row’s data was updated from the December 2024 “Housing and Unhoused Services Gap Analysis in Palo Alto”. It now includes updated data on cost burdened renters, as well as corrects the cost-burdened renter data under “Above Median Income” which previously had shown the total number of cost-burdened renters instead of the subset which are “Above Median Income”. Gaps and Opportunities Several gaps and opportunities for improvement were identified in the two reports, and in subsequent discussions among staff and community stakeholders15: •Affordable Housing Pipeline: While the pipeline for affordable housing is encouraging, it remains insufficient relative to demand. For example, in Palo Alto there are no permanent supportive housing units in development to address the needs of over 120 individuals currently waiting. •Homelessness Prevention: There is a countywide homelessness prevention program, however the need for additional funding and outreach limits the City’s ability to reduce any inflow of individuals into homelessness. •Internal Coordination and Resource Allocation: The City’s current structure for addressing homelessness spans multiple departments, with no unified plan. This makes it challenging to coordinate efforts effectively, allocate resources efficiently, and act on Council direction to prioritize focus areas. •Enforcement and Public Concerns: Community members have expressed confusion about where to report issues related to encampments or RV dwellers and how the City will respond once issues are reported. A clear plan coupled with public education on how various concerns can be reported and addressed could help bridge this gap. •Case Management: Limited resources for case management present a critical barrier to supporting unhoused individuals effectively. High caseloads and ongoing demand for permanent supportive housing strain the system and limit the capacity to deliver meaningful assistance. Addressing these gaps and opportunities with a clear policy direction will enable Palo Alto to better meet the needs of unhoused residents while improving outcomes for the broader community. This is further discussed in the Next Steps subsection of this staff report. Section 2: Enforcement: Law Changes and Current Efforts In addition to the above, enforcement of conduct laws, especially regarding health and safety matters, is one part of the City’s response to address the health and safety impacts related to homelessness while mitigating impacts on the wider community. The City recognizes the complexity of enforcing laws while ensuring compassionate outreach to individuals experiencing homelessness. Palo Alto employs a nuanced approach that balances public health, safety, and cleanliness with respect for the dignity and rights of unhoused individuals. 15 The RV Dwellers Group, consisting of service providers, City staff, a representative of Stanford University, members of the faith-based community, a Councilmember, and a Human Relations Commission member, met in December and discussed the two reports. A. New Developments in 2024 In 2024, there were two legal developments regarding the enforcement of criminal laws regulating conduct sometimes engaged in by unhoused persons, particularly camping on public property. Grants Pass v. Johnson. First, in Jun. 2024 the U.S. Supreme Court issued a decision in the case of City of Grants Pass v. Johnson.16 In Grants Pass the Court held that the enforcement of laws prohibiting camping17 on public property does not constitute “cruel and unusual punishment” prohibited by the Eighth Amendment. The Grants Pass decision reversed the prior rule in the Ninth Circuit, established in 2018 in the case of Martin v. City of Boise.18 In Martin the Ninth Circuit had held that cities may not constitutionally enforce “no camping" laws when a city’s homeless population exceeds available shelter beds. The Circuit reasoned that homelessness is an involuntary status if alternative shelter is not available, and that criminal punishment under those circumstances is “cruel and unusual” in violation of the Eight Amendment of the U.S. Constitution. Because most cities and counties were unable to show adequate shelter beds for everyone unhoused in the jurisdiction, under Martin, most were effectively barred from issuing criminal citations for camping in public places. Between 2018 when Martin was decided and June 2024 when it was overruled by Grants Pass, federal courts throughout the Ninth Circuit enjoined cities and counties from enforcing many local criminal laws, particularly relating to clearing large encampments. The Grants Pass decision removed this constraint, allowing cities to pursue enforcement of their laws against public camping regardless of shelter availability without risk of a legal challenge under the Eighth Amendment. An easy infographic on the Grants Pass decision can be found here: https://bcsh.ca.gov/calich/documents/grants_pass_fact_sheet.pdf. Governor’s Executive Order. One month after the Grants Pass decision was announced, Governor Newsom issued an Executive Order19 instructing state agencies under the Governor’s authority to begin taking action to remove encampments on state property, prioritizing those that present an imminent threat to life, health, safety or infrastructure. The Executive Order describes procedures for advance notice to persons living in encampments, the importance of offering shelter and services, and processes for retaining removed belongings. The Order was mandatory for agencies under the Governor’s control (this does not include Palo Alto). The Order also included non-mandatory language encouraging local government entities, including 16 https://www.supremecourt.gov/opinions/23pdf/23-175_19m2.pdf 17 Camping is not defined in federal law. Each local jurisdiction that regulates camping defines the conduct that is prohibited. To take one example, the local law at issue in the Grants Pass case defined camping as setting up or remaining in or at a campsite, which is any place where bedding, sleeping bags, or other material used for bedding purposes or any stove or fire is placed for the purpose of maintaining a temporary place to live. 18 https://cdn.ca9.uscourts.gov/datastore/opinions/2018/09/04/15-35845.pdf. 19 https://www.gov.ca.gov/wp-content/uploads/2024/07/2024-Encampments-EO-7-24.pdf cities like Palo Alto, to adopt similar policies and use their resources to remove encampments under their jurisdiction that present an imminent threat to life, safety, or infrastructure. Challenges that Remain after Grants Pass and the Governor’s Executive Order. The Grants Pass decision acknowledges that the root causes of homelessness in the U.S. are multi-faceted and complex, and that local officials need to use a variety of tools in pursuit of solutions. While Grants Pass removed a significant constraint on cities taking enforcement action when no- camping and other laws are broken by unhoused persons, the decision does not address or resolve many other challenges that impede fundamental change. As discussed in other parts of this report, these challenges include lack of affordable housing, limited availability of supportive services, and insufficient shelter beds or shelter options that are incongruous to individuals’ needs. In addition, enforcement activities are constrained by significant resource limitations throughout the criminal justice system (including local police, county jail facilities, prosecutors, public defenders, superior court judges, and probation officers). Finally, the Grants Pass decision does not mean that state and local criminal laws cannot be further challenged under a variety of statutory and constitutional provisions. B. The Criminal Justice System and the Unhoused: Where We Are Now State and local laws prohibit a variety of conduct that can have negative impacts on the health and safety of others, impair property rights, or compromise public order. People often mistakenly associate unlawful behaviors they observe with homelessness, even though the behavior itself—not the person's housing status—is the crime or nuisance. This distinction highlights the importance of addressing two related but separate issues: homelessness (e.g., prevention, services, housing) and crime or nuisance. With limited exceptions (e.g., special laws that only apply to minors), state and local criminal laws apply to conduct, regardless of the subject’s personal characteristics or housing status. This section discusses various state and local laws that apply to everyone who engages in the prohibited conduct, regardless of whether they are housed or unhoused. The Palo Alto Police Department staffs a Special Problems Detail (SPD) made up of officers assigned to work on a variety of issues, including but not limited to quality of life issues, collaborating with community partners, the City’s outreach team, and City departments, traffic enforcement, and any other critical issues affecting our community such as crime trends or major crimes. The SPD and other officers engage in enforcement action on a regular basis. In addition, City Code Enforcement and Public Works personnel issue administrative citations, manage clean-ups, and abate nuisances. Relevant state and local laws include, for example: •Closing parks and community centers between 10:30 pm and sunrise •Prohibiting outdoor fires •Barring open alcohol containers in public places •Prohibiting urination or defecation in a public place •Prohibiting public nuisances •Prohibiting vehicles from being abandoned or stored on City streets (defined as failing to move at least ½ mile within a 72-hour period) While the following behaviors may sometimes generate concern, they do not, by themselves, violate federal, state or local law: •Sleeping on the sidewalk, provided public access is not blocked •Sleeping in a vehicle •Sleeping outside or in a tent in a park between sunrise and 10:30pm •Carrying around large amounts of personal property in bags or carts •Hanging around on sidewalks or public benches •Being present in a public parking garage that is otherwise open to the public •Asking others for money •Being without a home or shelter How enforcement works. The SPD and other police officers respond to complaints and proactively patrol sensitive areas. Officers are trained in communicating with persons with mental health and other disabilities and utilize assistance from non-enforcement community partners to gain compliance with the law when appropriate and possible. Officers engage individuals displaying behavior that violates state or local law, with a goal of gaining compliance with legal requirements. Officers make contact, educate individuals on what the law requires, seek voluntary compliance, and offer resources. Where needed and appropriate, officers will take applicable enforcement action with a citation or other necessary action. To issue a criminal citation for a misdemeanor offense, officers must either: (a) directly observe violations of state or local law, or (b) identify a complaining victim or eyewitness to the conduct who is willing to testify on the record. Where serious or violent conduct is involved, officers will make a custodial arrest, transporting the individual to the County Jail in San Jose. At the jail, County Sheriff personnel make decisions regarding processing and detention, in conjunction with the District Attorney and Superior Court. Commonly, individuals delivered to the jail are processed and released within several hours or a few days, pending further action by the District Attorney and Superior Court. Once released, the individuals are free to return to their community if desired. For non-violent misdemeanors, which are the great majority of matters in Palo Alto, officers issue the subject a criminal citation and do not transport to the jail. The citation requires the subject to appear in court at a specified time, subject to a further decision by the District Attorney’s Office regarding charging and calendaring the matter in court. For non-critical offenses, the District Attorney’s Office typically places the matter on the Superior Court calendar when a pattern of repeated citations demonstrates a continuing problem. When a pattern of citations results in a court appearance, the most common outcome is a period of community service. Where applicable, the court may also order substance abuse or behavioral treatment (if applicable), or fines. Custodial detention is rare. It is common for cited individuals to remain in or return to the locations and communities that they consider their home. Returning to the Community. Some residents and business owners have expressed frustration at the visible signs of homelessness around the city, such as individuals spending long periods of time in parks, libraries, public garages, and sidewalks, and individuals displaying worrisome behaviors. While some concerning conduct violates state or local law and can be cited, enforcement does not often fully resolve the issue. For all these reasons and those shared in the Gap Analysis, enforcement should not be thought of as a comprehensive solution to homelessness or a way to resolve all community impacts from large numbers of individuals living without adequate housing. At best, enforcement functions as a tool to mitigate health and safety concerns and reduce behaviors that have a negative impact on others. However, enforcement may not be the most effective or cost- efficient tool to mitigate such impacts, even where it is a legally available option. Enforcement is most effective when used in conjunction with other strategies, such as access to appropriate shelter, housing, and services. Vehicles and Parking. The state legislature has exerted preemptive authority over vehicle movement and parking regulations. Local jurisdictions may regulate parking to the extent authorized by the state. Enforcement of parking restrictions or other conduct related to vehicles raises a number of special issues, including, for example, a requirement to provide adequate notice through comprehensive posting or individualized notice, and in some circumstances constitutional limits on towing. The Police Department conducts periodic monitoring for parking compliance and responds to complaints, scaled to available resources. One common complaint involves cars, trailers or RVs that are parked without moving for an extended period of time. State law allows cities to adopt a local ordinance authorizing removal of a vehicle that has been parked in the same place for more than 72 hours. Palo Alto has adopted such an ordinance. Prior to removing a vehicle, the ordinance requires City staff to affix a notice to the vehicle advising that the vehicle will be removed for violation of the ordinance after 72 hours unless it is moved at least five tenths of a mile. If the vehicle is moved, there is nothing in the law that prevents the owner from re-parking in the same location. The public has also reported concerns about use of generators, storage of belongings outside of the vehicle, and dumping of waste. Local law has requirements related to all of these issues, and City staff from multiple departments respond, as resources allow, and work with vehicle owners to achieve compliance. For example, for cleanup efforts when personal belongings or encampments accumulate in public spaces, the City provides advance notice and ensures individuals have opportunities to gather and relocate their belongings before clearing the area. With respect to parking and vehicles, staff has identified several areas where additional local ordinances would enhance staff’s ability to address conduct having a negative impact on others. These include, for example, prohibiting the ”renting” of public parking spaces and regulating use of parking spaces for trailers or other non-vehicles. A detailed discussion of parking and vehicles is beyond the scope of this item. Staff recommends referring further work on this topic to the Policy and Services Committee. Property. Special rules apply to the handling of property. In general, seizure of property without consent requires a judicial warrant. While there is an exception for abandoned property, courts stringently review the facts and circumstances to determine whether property is truly abandoned as opposed to merely unattended. Accordingly, City staff post notice before taking control of property that is not trash and not clearly abandoned. Further, with the exception of material that is clearly trash, seized property must be retained for a period of time to allow the owner to retrieve it. At this time, Palo Alto does not have a facility or staffing to handle storage of seized property (with the limited exception of small valuable property held by the Police Department under appropriate circumstances). Cities that store seized property invest considerable resources in procuring a storage location and needed equipment, in addition to personnel, procedures, and training required to constitutionally handle this type of activity. C. What the Public Can Do to Support Effective Enforcement The Police Department encourages the public to promptly report suspicious behavior or criminal activity to our 24-hour dispatch center at (650) 329-2413, or 9-1-1 if it is an emergency. To request cleanup of garbage or other materials left in the public right-of-way (streets and sidewalks), a park, or a City parking garage, the Palo Alto 311 application can be used.20 A request can also be made by calling the Public Works Department at 650-496-6974. 20 https://www.cityofpaloalto.org/Residents/Services/Report-an-Issue Section 3: Engagement Next Steps Description The reports collectively emphasize the importance of developing a cohesive and targeted strategy to address homelessness in Palo Alto. By offering a comprehensive overview of baseline conditions, enforcement practices, and areas for improvement, they provide a foundation for advancing Council discussions and engaging stakeholders to craft a tailored plan for the City. An implementation plan is essential to determine whether strategies should prioritize incentives and supportive measures ("carrots"), enforcement and regulatory approaches ("sticks"), or a balanced combination of both. Without this clarity, efforts may lack focus, and resources may not be deployed in a manner that reflects Council priorities and community expectations. In order to develop a policy direction it will be important to take the pulse of the community through meaningful, inclusive engagement. While the Council often receives communications from residents and business owners who are frustrated, staff also receives communications from residents reaching out to learn how to help people experiencing homelessness or to ask for help to stay housed or find safe shelter. These communications are less frequently items sent directly or “escalated” up to Council. Staff proposes initiating engagement with key stakeholders, including Councilmembers, Palo Alto Unified School District, businesses, the downtown community, faith-based organizations, Stanford University, the medical community, community-based organizations/service providers, and people with lived experience of homelessness. These groups are highly motivated to address homelessness due to their roles in the community, the impacts they experience, and/or their specific expertise. A neutral facilitator with relevant expertise should be engaged to help ensure thoughtful and balanced discussions that build trust and result in an implementation plan that reflects the values and priorities of the community. Without this inclusive engagement, there may be reduced community input and a less responsive implementation plan, which could erode trust, reduce buy-in from the community, and potentially require a more costly redesign later as unforeseen challenges and community concerns arise. Similarly, postponing engagement and a plan could lead to missed opportunities and efficiencies. Acting now allows engagement to build on the relationships initiated during the Gap Analysis research and to draw from recent data. However, postponement may require re-establishing relationships and/or conducting new or additional research and data collection. Staff also recommends that Council refer the Gap Analysis and related staff report to the HRC for conversation and input on which themes and strategies should be prioritized. Given the HRC’s charge to promote the just and fair treatment of all people, particularly vulnerable populations, their perspective will be vital in ensuring that the Implementation Plan is inclusive and equitable. The Commission’s work in addressing disparities related to housing, employment, and access to community resources positions it as an essential partner in identifying approaches that consider the full range of needs and potential barriers for marginalized groups within Palo Alto. Ultimately, staff will bring an implementation plan back to Council stemming from the Council and HRC discussions and co-created by stakeholders during engagement. Section 4: Discussion Staff seeks Council initial feedback about 3 broad topics: housing production and homelessness prevention programs, homelessness support services, and enforcement efforts related to health and safety. Council input will help staff to refine and prioritize the focus areas for further development. Specifically, staff seeks guidance on any themes or considerations Council would like prioritized during the comprehensive engagement described above. As staff prepares for this engagement, Council feedback can be on the broad topics listed above or on these specific questions: 1) if the homelessness prevention programs are adequate enough to reduce the number of people entering into homelessness, 2) the adequacy of housing production to increase the number of people exiting homelessness; 3) what support and capacity the City can commit to unhoused services, and 4) what enforcement strategies the City would like to emphasize related to community health and safety. With this being such a complex topic and a vast amount of information in this report, Council can also choose to bring back further discussion to the full Council or Policy and Services Committee on any of the topics within this report. FISCAL/RESOURCE IMPACT The recommended next steps require new funding. Based on preliminary research, a budget of not-to-exceed $50,000 is proposed for targeted stakeholder engagement and developing an implementation plan, anticipated to take three to six months. This would be drawn from the existing operating budget. Staff would request informal bids from qualified firms and individuals with relevant expertise (i.e., community engagement, facilitation, projects relating to homelessness and/or housing stability). Additional efforts in any of these areas are likely to require additional resources. In some cases significant resources may be needed. Consideration of resource requirements and prioritization must be a part of any implementation plan. STAKEHOLDER ENGAGEMENT Staff consulted with colleagues and professionals with experience locally and regionally. Additionally, the “RV Dwellers Group” of service providers, a representative of Stanford University, members of the faith-based community, people from the faith-based community, City staff, a Councilmember, and a Human Relations Commission member, met in December and discussed the two reports. ENVIRONMENTAL REVIEW Not a project. ATTACHMENTS Attachment A: Housing and Unhoused Analysis – Updated January 8, 2025 APPROVED BY: Ed Shikada, City Manager HOUSING AND HOMELESSNESSIN PALO ALTO Study Session Presenters: Chantal Cotton Gaines, Deputy City Manager Melissa McDonough, Assistant to the City Manager Chief Andrew Binder, Palo Alto Police Department Hilary Armstrong, Santa Clara County Office of Supportive Housing FEBRUARY 10, 2025 www.cityofpaloalto.org TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 10, 2025 www.cityofpaloalto.org 1.Current Efforts on Unhoused Services Coordination in Palo Alto 2.Response and Enforcement: Current Efforts Related to Conduct and Law Changes 3.Engagement Next Steps and Implementation Plan 4.Discussion •Homelessness prevention programs and housing production •Homelessness support services •Enforcement efforts related to health and safety OVERVIEW TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 10, 2025 www.cityofpaloalto.org Receive: 1.An update on actions taken regarding unhoused services coordination in Palo Alto including discussion and feedback on the Gap Analysis Report. 2.An overview of local enforcement efforts and changes in state and federal law. 3.An overview of the suggested community engagement next steps related to the development of an Implementation Plan Addressing Homelessness in Palo Alto, including: •Consideration of an assignment to the Human Relations Commission (HRC) to discuss and review the Gap Analysis Report. •Engagement and outreach to develop an Implementation Plan to Address Homelessness in Palo Alto for Council consideration and approval. RECOMMENDATION TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 10, 2025 www.cityofpaloalto.org Discuss: 4. The information shared and have an initial conversation about 3 broad topics: •Homelessness prevention programs and housing production •Homelessness support services •Enforcement efforts related to health and safety Advance the engagement efforts described and, if desired, refer follow-up discussions to Policy and Service Committee RECOMMENDATION, cont. STATUS UPDATE Unhoused Services Coordination in Palo Alto FEBRUARY 10, 2025 www.cityofpaloalto.org TITLE 40 FONT BOLD Subtitle 32 font www.cityofpaloalto.org KEY CONTEXT | UNHOUSED DEMOGRAPHICS FEBRUARY 10, 2025 From the 2023 PIT count, people experiencing homelessness in Palo Alto differ from those countywide in two significant ways: PALO ALTO COUNTYWIDE 91% unsheltered 75% unsheltered 88% living in a vehicle 32% living in a vehicle Source: Understanding the Unhoused Community in Palo Alto, report accompanying the 2024 Gap Analysis. Link below. SANTA CLARA COUNTY SUPPORTIVE HOUSING SYSTEM AND HOMELESSNESS IN PALO ALTO Presented by County of Santa Clara Office of Supportive Housing Palo Alto City Council February 10, 2025 2020-2025 COMMUNITY PLAN 9 2020-2025 Community Plan to End Homelessness 17,483 2,517 Goal: Housing 20,000 People by 2025 PROGRESS ON COMMUNITY PLAN GOALS 87 Percent to Countywide Goal of Housing 20,000 People by the End of 2025 10 87% to Goal Housing Placements from Jan. 2020 to Dec. 30, 2024 3,321 4,098 4,744 Goal: Reduction of Baseline Inflow by 30% Inflow over the Past One Year (Jan. 1, 2024 to Dec. 31, 2024) Baseline: Inflow of Individuals in 2019 Goal: Achieve a 30% Reduction in Annual Inflow of People Becoming Homeless (Inflow = Number of Households Completing Their First Assessment) HOUSING PLACEMENTS AND INFLOW INTO HOMELESSNESS Countywide & Palo Alto: Calendar Year 2024 11 211 176 237 213 206 270 167 150 149 210 134 132 393 322 354 341 371 331 369 309 344 400 266 291 0 50 100 150 200 250 300 350 400 Housing Placements (Household) Inflow: PSH Score Range Inflow: RRH Score Range Inflow: Minimal Intervention 65 127 0 20 40 60 80 100 120 140 Housing Placements Inflow Palo Alto Households Calendar Year 2024 PSH = Permanent Supportive Housing | RRH = Rapid Rehousing Santa Clara County Supportive Housing System 12 HOMELESSNESS PREVENTION SYSTEM 13 TEMPORARY HOUSING 14 14 PERMANENT HOUSING 78% of households remained housed 2 years later 96% of household remained housed for first year 15 15 www.cityofpaloalto.org Work over the years PALO ALTO RECENT PROGRESS FEBRUARY 10, 2025 20 2 0 Interim safe parking ordinance 20 2 1 County Plan endorsed 20 2 2 Homekeyaward Wilton Court opened 20 2 3 Outreach worker pilot Renter protections expanded Permanent safe parking ordinance Affordable housing resource fair OWL pilot SPD fully staffed 20 2 4 HousingElement certification RV safe parking expanded Rental registry launched Gap Analysis completed OWL launched www.cityofpaloalto.org KEY CONTEXT | HOUSING FEBRUARY 10, 2025 Source: Palo Alto Gap Analysis Report, Updated January 2025 TITLE 40 FONT BOLD Subtitle 32 font Table 1: Palo Alto Unhoused Assessed to Need Rapid Rehousing or Permanent Supportive Housing vs. Forthcoming Units Service Needs Rapid Rehousing Permanent Supportive Housing Forthcoming (entitled) Units 32 0 Palo Alto Unhoused Residents Assessed to Need Various Services 115 120 TITLE 40 FONT BOLD Subtitle 32 font www.cityofpaloalto.org KEY CONTEXT | HOUSING (continued) FEBRUARY 10, 2025 Source: Palo Alto Gap Analysis Report, Updated January 2025 Table 2: Currently Entitled and Proposed Housing Units (not inclusive of Rapid Rehousing and Permanent Supportive Housing Units) Compared to Cost Burdened Renters Income Level Extremely Low Income Very Low Income Low Income Median Income Above Median Income Entitled Units 46 96 49 60 331 Proposed Units (not yet entitled) 3 22 408 51 1,973 Cost-Burdened Renters 1,460 865 915 550 635 GAP ANALYSIS | KEY CONSIDERATIONS •Addressing the need for non-congregate shelter in Palo Alto by using hotel voucher programs or converting hotels into shelters. •Contributing funds to the County’s Homelessness Prevention System as well as increasing awareness of its resources to stem the inflow of new people into homelessness. •Increase affordable housing production by 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. RESPONSE & ENFORCEMENT Current Efforts FEBRUARY 10, 2025 www.cityofpaloalto.org TITLE 40 FONT BOLD Subtitle 32 font www.cityofpaloalto.org Police Response to Calls for Service Enforcement of State and Local Laws Connecting, Collaborating,& Co-Response RESPONSE & ENFORCEMENT FEBRUARY 10, 2025 www.cityofpaloalto.org Grant’s Pass v. Johnson Governor's Executive Order CARE Court initiated in Santa Clara County NEW IN 2024 –Grant’s Pass,Executive Order, CARE Court FEBRUARY 10, 2025 ENGAGEMENT Inclusive Engagement and Implementation Plan FEBRUARY 10, 2025 www.cityofpaloalto.org TITLE 40 FONT BOLD Subtitle 32 font www.cityofpaloalto.org We’ve learned that effective strategies addressing homelessness include comprehensive engagement to provide guidance for City Council decision-making. The engagement effort would include: •Intentional conversations from stakeholders with different experiences related to homelessness •Information sharing about the efforts the City already does within resources •Gathering ideas on how we can continue to move the needle and potential partnerships •On a parallel track, the Human Relations Commission (HRC) could lead discussions on the Gap Analysis Report and community feedback. ENGAGEMENT PLAN FEBRUARY 10, 2025 DISCUSSION Homelessness Prevention Programs, Housing Production, Homelessness Support Services and Enforcement Efforts FEBRUARY 10, 2025 www.cityofpaloalto.org TITLE 40 FONT BOLD Subtitle 32 font FEBRUARY 10, 2025 www.cityofpaloalto.org Discuss the information shared and have an initial conversation about: •Homelessness prevention programs •Housing production •Homelessness support services •Enforcement efforts related to health and safety Advance the engagement efforts described and, if desired, refer follow-up discussions to Policy and Service Committee DISCUSSION Melissa McDonough Assistant to the City Manager melissa.mcdonough@cityofpaloalto.org 650-329-2533