HomeMy WebLinkAboutStaff Report 2603-6082CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, June 01, 2026
Council Chambers & Hybrid
5:30 PM
Agenda Item
15.Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2026-2027
Annual Action Plan; and Approving Use of CDBG Funds for FY 2026-2027 as
Recommended by the Human Relations Commission. CEQA Status: Exempt under CEQA
Guidelines Section 15378(b)(4). Staff Presentation
CITY COUNCIL
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2603-6082
TITLE
Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2026-2027
Annual Action Plan; and Approving Use of CDBG Funds for FY 2026-2027 as Recommended by
the Human Relations Commission. CEQA Status: Exempt under CEQA Guidelines Section
15378(b)(4).
RECOMMENDATION
The Human Relations Commission (HRC) and staff recommend City Council take the
following actions:
1. Adopt the draft Fiscal Year (FY) 2026-2027 Annual Action Plan (Attachment A) and
the associated resolution (Attachment B) allocating Community Development
Block Grant (CDBG) funding for FY 2026-2027;
2. Authorize the City Manager to execute the FY 2026-2027 CDBG application to fund
the FY 2026-2027 Annual Action Plan (AAP) and any other necessary 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 FY 2026-2027 AAP to U.S. Department of Housing and
Urban Development (HUD) by the extended deadline of August 16, 2026.
EXECUTIVE SUMMARY
The CDBG Entitlement Program provides grants to entitled cities and counties to develop
viable urban communities by providing decent housing and a suitable living environment,
and by expanding economic opportunities. HUD requires entitlement jurisdictions to
prepare an Annual Action Plan (AAP) to allocate funding to specific projects within the fiscal
year timeframe (FY 2026-27). The City released a Notice of Funding Availability (NOFA) in
November 2025, requesting applications for the FY2026-27 funding cycle. The City received
a total of eleven (11) CDBG applications.
On April 9, 2026, the HRC provided funding recommendations for the CDBG FY 2026-2027
funding cycle.1
It is not possible to fund all applications at the requested amounts due to the limitations of
available funds. However, the proposed recommendations:
Allocate all available CDBG program funds;
Are consistent with the City’s CDBG Consolidated Plan (ConPlan);
Are consistent with the City’s 6th Cycle Housing Element goals and programs as
they pertain to CDBG; and
Will result in funding key services and projects that benefit many low- and
very-low-income Palo Alto residents.
Staff recommends that City Council review and approve the 2026-2027 AAP (Attachment A),
the associated Resolution (Attachment B), and authorize staff to submit and execute
associated documents necessary to implement the FY 2026-2027 AAP.
BACKGROUND
The CDBG program, administered by HUD, provides annual grants on a formula basis to
states, cities, and counties to develop viable urban communities by providing decent
housing, a suitable living environment and by expanding economic opportunities,
principally for low- and moderate-income persons. The HUD regulations require all CDBG-
funded activities meet 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 having a particular urgency or
posing a serious and immediate threat to the health or welfare of the
community.
The City’s CDBG program has primarily been focused on meeting the first objective of
benefiting low- and very-low-income persons.
Consolidated Plan & Annual Action Plan
HUD requires preparation of a five-year strategic plan, referred to as a ConPlan, which must
address priority housing and community development needs and set goals related to those
needs. The CDBG program is currently guided by the FY 2025-29 ConPlan adopted by
Council on June 9, 2025. HUD also requires the submittal of an AAP, which must identify the
specific projects to be funded to implement strategies identified in the ConPlan.
The FY 2026–2027 AAP builds on a comprehensive assessment of affordable housing and
community development needs, shaped by public participation. Staff presented the draft
1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18927
AAP to the HRC on April 9, 2026. It was also made available for a public review period
beginning May 1, 2026, through May 31, 2026, which constitutes the required 30-day
public review and comment period. Once adopted by City Council, the FY 2026-2027 AAP
will be effective July 1, 2026, through June 30, 2027.
ANALYSIS
Program Income (PI) comes from loan repayments on specific properties acquired or
rehabilitated with CDBG funds. Cities are required to estimate anticipated program income
for the activity budget for the upcoming year. Based on past years, PI for FY 2026-2027 is
estimated to be $100,000.
Table 1. FY 2026-2027 CDBG Estimated Funds Available
CDBG Funds Available Available for Funding
FY 2026-2027 Entitlement Grant $512,139
Program Income in FY 2026-2027 (Estimated)$100,000
Estimated Total CDBG Funds Available for Allocation $612,139
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 percent of the sum of
the grant allocation plus the total amount of prior year program income.
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 percent of the sum of the grant allocation plus the total amount of
prior year program income.
Table 2. FY 2026-2027 Breakdown of Capped/Un-Capped Funds
CDBG Amount
Public Services 15% Maximum
15% x [Grant allocation ($512,139) + program income ($100,000)]
$91,821
Estimated Planning and Administration 20% Maximum
20% x [Grant allocation ($512,139) + program income ($100,000)]
$122,428
Un-capped Funds $397,890
Estimated Total Available for CDBG Allocation $612,139
CDBG 2026-27 Funding Allocations
Table 3: Fiscal Year 2026-2027 CDBG Budget
Applicant Agency Requested Funding Recommended
Allocation
CDBG Applicants
Public Services (15% Cap = $91,821)
LifeMoves – Case Management at Opportunity
Center $75,000 $30,500
Silicon Valley Independent Living Center (SVILC) –
Case Management Services $21,419 $15,750
Project Sentinel – Fair Housing Services $25,000 $16,250
Next Door Solutions to Domestic Violence $10,000 $6,500
Catholic Charities – Long Term Ombudsmen
Program $14,910 $6,500
La Comida – Food Assistance Program $28,000 $6,321
RotaCare Bay Area – Mobile Clinic $16,000 $4,500
YWCA – Services for Victims of Domestic Violence $24,500 $5,500
Subtotal $91,821
Economic Development (No Cap)
Upwards – Training for Family Child Care Home $72,000 $72,000
Subtotal $72,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula – Safe at Home $73,585 $73,585
Subtotal $73,585
Public Facilities & Improvements (No Cap)
Public Works – ADA Curb Improvements N/A*$172,335
Peninsula Healthcare – Facility Rehabilitation $79,970 $79,970
Subtotal $252,305
Planning & Administration (20% Cap = $122,428)
Planning and Development Services – Program
Administration
N/A*$122,428
Subtotal $122,428
Grand Total for CDBG Budget $612,139
*“N/A” indicates that no formal application was submitted. These uncapped projects were previously awarded
funds, and additional funding was determined to be necessary through staff and HRC review based on
identified need.
FISCAL/RESOURCE IMPACT
There is no fiscal impact to the General Fund associated with this action as CDBG funding is
provided by HUD. The Community Development Block Grant Fund is a Special Revenue Fund
that recognizes revenue provided by Housing and Urban Development (HUD) and disburses
that revenue through grants to eligible recipients. These are restricted funds that can only
be used for eligible purposes as discussed above. Associated grant funding is also used to
support program administration for consultant services and liability insurance. If approved,
corresponding appropriation actions will be taken with, or following, the adoption of the FY
2026-FY 2027 budget.
STAKEHOLDER ENGAGEMENT
Prior to the submission of the FY 2026-2027 AAP to HUD, the City must hold two public
hearings on the draft FY 2026-2027 AAP and post the FY 2026-2027 AAP for a 30-day public
review and comment period.
The HRC meeting on April 9, 2026, served as the first public hearing.
The 30-day public review and comment period on the draft AAP began on May 1, 2026, and
ended on May 31, 2026. At the time of this report staff did not receive public comment on
the 2026-2027 AAP.
The City Council meeting on June 1, 2026, serves as the second public hearing for review
and approval of the FY 2026-2027 AAP.
To inform the public of the two public hearings and 30-day public review and comment
period, a public notice was published in the Palo Alto Daily Post on March 27, 2026.
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.
ATTACHMENTS
Attachment A: FY 2026-2027 Draft Annual Action Plan
Attachment B: Draft Resolution to Adopt FY 2026-2027 Annual Action Plan
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
City of Palo Alto
Draft FY 2026–2027 Annual
Action Plan
Community Development Block Grant (CDBG) Program
Prepared by: City of Palo Alto Planning & Development Services Department Draft for Public Review
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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1.Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2026-27 draft 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. This AAP covers the second year of the City’s five-year
2025-2029 Consolidated Plan, which was adopted by the Palo Alto City Council on June 9, 2025. 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.
The City’s FY 2026-27 AAP covers the time-period from July 1, 2026, to June 30, 2027. The FY 2026-27
AAP contains the accomplishments the City expects to achieve in FY 2026-27. All the projects, programs,
and activities in FY 2026-27 AAP reflect the 2025-2029 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.
Entitlement community grantees may use CDBG funds for a range of eligible activities, including public
services, public facility and infrastructure improvements, housing rehabilitation, downpayment
assistance, tenant-based rental assistance, and job creation or retention efforts. These activities are
primarily intended to benefit HUD-defined low- and moderate-income (LMI) households. LMI households
are those with incomes at or below 80% of the Area Median Income (AMI), adjusted for household size.
Census block groups are generally considered eligible when at least 51% of households are LMI.
Primary Needs
The City of Palo Alto is a small Bay Area community known as the birthplace of Silicon Valley’s high-tech
industry. It is home to major companies and research institutions such as VMware and Hewlett-Packard,
and it also hosts Stanford University. According to the 2024 American Community Survey (ACS) 5-year
estimates, the City has a population of approximately 67,237 and covers roughly 25 square miles, making
it less densely populated than many peer entitlement jurisdictions.
Palo Alto is located within a region characterized by significant income diversity, including some of the
highest-earning households in the nation. The regional economy relies on a broad workforce that spans a
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wide range of income levels, including many lower-wage earners who support essential services and
industries. Lower-income residents face substantial challenges related to housing affordability, driven by
a highly competitive market and strong demand from higher-income households. Of the City’s 25,486
households, 43% of renters and 24% of homeowners experience housing cost burden—defined as paying
more than 30% of gross income toward housing—with some paying more than 50%.
Throughout the consultation process for this plan, stakeholders consistently emphasized the negative
impacts of high housing costs on the ability to recruit and retain workers in critical roles, including public
safety, education, and essential service positions across the region.
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.
Priority needs identified in this Annual Action Plan (AAP) include:
•Housing: Increasing the supply of affordable housing and improving the condition of existing units.
•Homelessness: Stabilizing people at-risk of and experiencing homelessness through housing
solutions, and facilitation of supportive services including mental health and addiction recovery
services.
•Community development: Enhance neighborhood safety and quality through cleanups, improved
street lighting and park improvements, bolster/create public space for senior activities, and food
pantries.
•Economic Development: Provide more opportunities for resident workforce development and/or
build outreach campaign for existing programs, create community partnerships to address
childcare access as a component of workforce participation.
•Fair Housing: Improve navigation and case management services for residents needing housing,
legal services (related to housing), and basic services documentation assistance.
Palo Alto has therefore identified the following goals for the FY2026-27 AAP through extensive data
analysis and community outreach:
1.Increase the supply and improve the condition of affordable housing for households with incomes
ranging from 0-80% AMI.
2.Respond to homelessness and risk of homelessness through housing stabilization, supportive
services, mental health services, and economic resiliency programs.
3.Strengthen neighborhoods through investing in infrastructure and public facility improvements
that prioritize safety, accessibility, and community building.
4.Support projects that increase opportunities for workforce development.
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5.Provide supportive services to low-income households through bolstering case management and
navigation of services including legal assistance and tenant/landlord resolution.
3.Evaluation of past performance
The City is responsible for ensuring full compliance with all rules and regulations governing the CDBG
entitlement grant program. The City’s Annual Action Plans and CAPERs have documented the goals,
projects, and programs completed over the past five years. A review of past CAPERs demonstrates a robust
performance record in the use of CDBG funds. Palo Alto has been strategic in leveraging federal dollars
and cultivating community partnerships to maximize program impact. For example, an analysis of the
2020–2024 CAPERs show:
•LMI elderly assisted: 711
•Residents who received counseling services: 672
•Homeless individuals who received shelter or assistance: 863
•Individuals that received housing complaint services: 82
•Persons with disabilities that received assistance: 6,771
•LMI homeowners that received home improvements: 19
•Workforce development program assistance: 51
4.Summary of Citizen Participation Process and consultation process
[Palo Alto held a Human Relations Commission public meeting on 4/9/26 to review proposed CDBG
awardees in FY2026-27. The 30-day comment period notice was posted in the Daily Post on 3/27/26 to
inform residents of the AAP public comment period that will run from 5/1 to 5/31. City Council will hold
a public hearing to adopt the FY2026-27 AAP on 6/1/26.]
5.Summary of public comments
[Any comments received during 30-day comment period will be summarized here]
6.Summary of comments or views not accepted and the reasons for not accepting them
[Not applicable. All comments were accepted. The City attempted to incorporate feedback received from
outreach efforts throughout the process.]
7.Summary
This 2026–2027 AAP reflects resident feedback, demographic analysis, community stakeholder input, and
an assessment of City resources, goals, and relevant plans and policies.
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan
The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant
program and funding source.
Agency Role Name Department / Agency
Table 1 – Responsible Agencies
Narrative
The City of Palo Alto serves as the Lead and Responsible Agency for the U.S. Department of Housing and Urban Development’s (HUD) entitlement
programs within the City.
The Department of Planning and Development Services administers the City’s Community Development Block Grant (CDBG) program. In addition,
the City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnerships Program (HOME) funds through Santa Clara
County.
Consolidated Plan Public Contact Information
Leif Christiansen, Senior Housing Specialist
City of Palo Alto Department of Planning and Development Services
250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
Phone: (650) 329-2195
Email: leif.christiansen@paloalto.gov
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. 1. Introduction
Public participation plays a vital role in the development of the Consolidated Plan and Annual Action Plans.
Palo Alto coordinated closely with Santa Clara County and other entitlement jurisdictions in stakeholder
consultation and resident engagement to leverage opportunities and minimize duplication. Community
outreach for this planning period included the following:
• A Consolidated Plan website—www.letstalkhousingscc.org—with information about the Planning
process including a short video and presentation; a link to the resident survey and activities to
prioritize housing and community development needs; and community resources. The website
contains a translation feature for easy conversion into multiple languages.
• A community survey, available between October and December 2024, and promoted through
supportive service and public agencies that work with low- and moderate-income residents, city
social media, and the Consolidated Plan website. A summary of survey findings is below.
• Two virtual regional workshops open for all residents living in and stakeholders serving residents
in the county. The workshops included a brief overview about the Planning process, simple
activities to express priority needs, and in-depth discussions about needs in breakout rooms.
Interpretation was available in Spanish, Vietnamese, and Mandarin.
• Three focus groups with stakeholders in housing, supportive services, and community
development serving residents throughout the county. After a brief presentation about the
Consolidated Plan process—including information on how to circulate the survey and
letstalkhousingscc.org website to client-stakeholders participated in in-depth discussion about
priority needs and solutions to needs. Attendees represented affordable housing developers,
nonprofit housing rehabilitation providers, unhoused service providers, community organizations
and advocates for special needs populations, people with lived experience, legal advocates,
childcare service providers, and public housing staff.
• One-on-one interviews with the Continuum of Care and coordination with the City of San Jose,
who receives HOPWA and ESG funding and distributes that funding to the County’s public service
departments.
• A complete survey analysis and overview of engagement is provided in the appendix of this plan.
Engagement Promotion.
City Staff promoted the Consolidated Plan engagement opportunities through a multi-channel outreach
strategy. This included targeted email announcements, updates posted on the City’s website and official
social media platforms, and in-person outreach at community events such as local festivals and farmers’
markets.
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Provide a concise summary of the jurisdiction’s activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health and
service agencies (91.215(l)).
During the development of its Consolidated Plan and Annual Action Plans—and as part of its ongoing
practices—the City coordinated with a wide range of housing, public health, mental health, and social
service agencies to discuss community needs. These discussions provided opportunities for agencies to
network, share information about their programs, and identify areas of collaboration. Their collective
feedback was especially valuable in shaping the priorities of this Plan, particularly regarding special needs
populations and general and mental health services within the City and Santa Clara County.
The City also participates in the County’s quarterly CDBG Coordinators Group meetings, where
entitlement jurisdictions across the region convene to discuss proposed uses of federal funds for the
upcoming program year.
In addition, the City takes part in the County’s Regional Housing Working Group, a forum for both
entitlement and non-entitlement jurisdictions to coordinate responses to regional housing challenges.
The City is represented on the Continuum of Care (CoC) by its Human Services Manager. The CoC is a
broad coalition of stakeholders committed to preventing and ending homelessness in Santa Clara County.
Its key responsibilities include ensuring community-wide implementation of strategies to address
homelessness and monitoring both programmatic and system-level effectiveness.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless people (particularly chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth) and people at risk of homelessness.
The Santa Clara County Office of Supportive Housing serves as the administrator of the regional
Continuum of Care (CoC). The City maintains ongoing coordination with the County CoC to support efforts
to prevent and end homelessness, and City staff participate in monthly CoC meetings. The Santa Clara
County CoC includes a broad range of stakeholders, including governmental agencies, homeless service
and shelter providers, individuals with lived experience of homelessness, housing advocates, affordable
housing developers, and representatives from the private and philanthropic sectors.
The City’s Human Services Manager represents Palo Alto on the CoC Board. The CoC meets monthly to
plan programs, identify gaps in the homeless services system, establish funding priorities, and advance a
coordinated, systems-level approach to addressing homelessness. City staff also meet and consult
regularly with County CoC staff and peers from other jurisdictions through the quarterly countywide CDBG
Coordinators Group meetings, with additional communication occurring as needed by email or phone.
The CoC is governed by the CoC Board, which uses a system-change framework to guide regional strategies
to prevent and end homelessness. The Board is composed of the same members who serve on the
Destination: Home Leadership Board. Destination: Home, a public-private partnership focused on
collective-impact strategies to end chronic homelessness, serves as the governing body for the CoC and is
responsible for implementing its bylaws and operational protocols.
Regional CoC efforts include the development of the Community Plan to End Homelessness, which
outlines strategies to address the needs of individuals and families experiencing homelessness—including
chronically homeless households, families with children, veterans, and unaccompanied youths as well as
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those at risk of homelessness. The CoC is currently updating its five-year strategic plan, and the City will
participate in this regional planning process.
During the development of the Consolidated Plan, the City consulted with the CoC and the County Office
of Supportive Housing to help identify community needs. The City also invited service providers and
organizations serving people experiencing or at risk of homelessness to participate in Consolidated Plan
and Annual Action Plan engagement meetings. These organizations included Abode Services, which
administers tenant-based rental assistance; Destination: Home, which leads regional homelessness
prevention and policy efforts; and LifeMoves, a shelter and homeless services provider operating in San
José and Palo Alto. Destination: Home also provided input through a phone interview to help identify
needs among homeless and at-risk populations.
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 Santa Clara County Office of Supportive Housing serves as the administrator of the regional Homeless
Management Information System (HMIS). The County and its consultant, Bitfocus, jointly operate and
oversee the HMIS, with Bitfocus providing both the software platform and system administration. HMIS
in Santa Clara County is funded by HUD, the County of Santa Clara, and the City of San José. The system is
used by many service providers throughout the region, including those serving Palo Alto, to record client
information and report program outcomes.
2. Agencies, groups, organizations and others who participated in the process and
consultations
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1 Agency/Group/Organization Catholic Charities of Santa Clara County
Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-homeless
Services-Health
Services-Employment
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Catholic Charities of Santa Clara County
participated in the November 14, 2025 NOFA Kickoff meeting.
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2 Agency/Group/Organization LifeMoves
Agency/Group/Organization Type Housing
Services - Housing
Services-Children
Services-Health
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from LifeMoves participated in the November 14, 2025
NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
Services-Victims of Domestic Violence
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Next Door Solutions to Domestic Violence
participated in the November 14, 2025 NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
Service-Fair Housing
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Project Sentinel participated in the November 14,
2025 NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
Services-Elderly Persons
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What section of the Plan was addressed by Consultation? Housing Need Assessment
Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A Silicon Valley Independent Living Center representative attended the
November 14, 2025 NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Upwards attended the December 11th, 2024
Stakeholder Workshop.
Agency/Group/Organization
Agency/Group/Organization Type
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Rebuilding Together participated in the
November 14, 2025 NOFA Kickoff meeting
Table 2 – Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting
Not applicable. No agency types were intentionally left out of the consultation process. Over 40 agency types were contacted during the
consultation process. Details of these efforts are within the Consolidated Plan.
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Other local/regional/state/federal planning efforts considered when preparing the Plan
Continuum of Care Regional Continuum of
Care Council,
Destination: Home
experiencing homelessness.
End Homelessness 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.
Work Annual Plan Housing Authority vouchers.
Table 3 - Other local / regional / federal planning efforts
Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local
government, in the implementation of the Consolidated Plan (91.215(l))
The Consolidated Plan was developed in close coordination with jurisdictional partners throughout Santa Clara County. The Santa Clara County
Office of Supportive Housing (OSH) initiated this collaborative effort in spring 2024 by convening all entitlement jurisdictions. Together, the
jurisdictions issued a joint RFP to select a consultant team to prepare the plans. Participating in entitlement jurisdictions included Cupertino, Gilroy,
Milpitas, Mountain View, Palo Alto, the City of Santa Clara, Sunnyvale, and the Urban County.
Collaboration on stakeholder engagement and resident participation began with a joint meeting to review the proposed engagement strategy.
Each jurisdiction contributed lists of priority stakeholders and organizations to streamline outreach and avoid duplication. Regional engagement
activities included two virtual evening open houses for residents and stakeholders, three stakeholder consultation workshops held on different
days and times in December, and a joint community survey that was widely promoted across jurisdictions.
The jurisdictions also collaborated on a regional housing market assessment, which included jurisdiction-level data to support consistent
comparisons of housing needs and ensure uniform market information across all plans.
The Association of Bay Area Governments (ABAG) was invited to participate in a meeting focused on regional housing and community development
needs. ABAG provided relevant reports and data for incorporation into the Consolidated Plans.
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In addition, the County hosts regular CDBG Coordinators Group and Regional Housing Working Group meetings, which jurisdictions attend. These
meetings provide a forum to discuss projects serving homeless and special-needs populations, pending legislation, and local initiatives affecting
affordable housing and services for lower-income households. Jurisdiction staff also support the countywide biennial Homeless Census, which
identifies homeless populations across the region and informs strategies and service priorities to address their needs.
Narrative
N/A
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. 1. Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal setting
Engagement that was done in coordination with the County and was targeted to residents included:
•A Consolidated Plan website—www.letstalkhousingscc.org—with information about the Planning process including a short video and
presentation; a link to the resident survey and activities to prioritize housing and community development needs; and community
resources. The website contains a translation feature for easy conversion into multiple languages.
•A community survey, available between October and December 2024, and promoted through supportive service and public agencies
that work with low- and moderate-income residents, city social media, and the Consolidated Plan website.
•Two virtual regional workshops open to all residents living in Santa Clara County and stakeholders serving residents in the county. The
workshops included a brief overview about the Planning process, simple activities to express priority needs, and in-depth discussions
about needs in breakout rooms. Interpretation was available in Spanish, Vietnamese, and Mandarin.
•Public hearings: Two public hearings were held to solicit community feedback and review funding recommendations and plan content.
One hearing was conducted with the City’s Human Relations Commission, and the second with the Palo Alto City Council.
•Public comment on the 2025-2029 Consolidated Plan was open from May 5, 2025 through June 4, 2025. A link to the Consolidated Plan
draft document was provided on the Letstalkhousingscc.org website and on the City of Palo Alto website.
A full survey analysis and summary of resident engagement activities is included in the appendix of this plan. The survey was distributed by all
participating entitlement jurisdictions and made available on the Let’s Talk Housing website, individual city websites, and in printed form—
offered in both English and Spanish—at community events.
From the North County area, 876 residents completed the survey, including 79 respondents who also identified as stakeholders working in
various housing and community development roles.
Survey respondents were asked to identify their priority housing, community development, and economic development outcomes. The results
below reflect responses from Palo Alto residents only, ranked by frequency of selection:
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•The top housing outcomes were more affordable rental housing and supportive housing for the unhoused (both at 35%), followed by
more affordable homeownership (29%), increased shelter capacity (26%), and security deposit assistance for low to moderate income
renter households (24%);
•The top community development outcome in Palo Alto was affordable childcare (41%), followed by supportive services for the unhoused
(38%), access to reliable public transit (35%), supportive services for low-income residents, people living with disabilities (32%), and
mental health services (26%);
•The top economic development outcome selected by respondents in Palo Alto was job training programs (62%), followed by
revitalization of neighborhood businesses/commercial areas (47%), improved transportation to areas with job opportunities (41%), more
opportunities for small or start-up businesses 41%), and center for seasonal and day laborers (35%).
Citizen Participation Outreach
1 Public
Meeting targeted/broad
community
of Human Relations
Commission to
review proposed
received] received]
Ad targeted/broad
community
period notice posts
5/1, for 5/1 to 5/31
received] received]
Outreach targeted/broad
community
Action Plan available
for public review
received] received]
Public
Hearing
targeted/broad
community
Council held a public
hearing to adopt 26-
27 Annual Action
received] received]
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY 2026-27, the City will allocate a total of $612,139 CDBG funds to eligible activities that address the needs identified in the Consolidated
Plan. These CDBG funds reflect the sum of a $512,139 FY2026-27 Entitlement Grant and $100,000 Program Income (estimated) to be
receipted in FY 2025-26. The City acknowledges that program income receipts may vary and endeavors to forecast future income while
implementing necessary adjustments to the ongoing program budget. 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
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outlined in the Consolidated Plan.
Anticipated Resources
CDBG public -
federal Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 512,139.00 100,000.00 0.00 612,139.00 1, 500,000.00
creation and preservation of
affordable rental units,
improvements in low-income
neighborhoods, and public
services that benefit low-income
and special needs households.
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
Other State and Federal Grant Programs
Additional federal programs that fund community development and affordable housing activities include:
•Section 8 Housing Choice Voucher Program;
•Section 202;
•Section 811; and
•Affordable Housing Program (AHP) through the Federal Home Loan Bank.
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These programs would not be provided to the City but rather to the Santa Clara County Housing Authority (SCCHA) and affordable housing
developers.
County and Local Housing and Community Development Sources
HOME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. The City joined the Santa
Clara County 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. Developers of affordable housing projects are eligible to
competitively apply through an annual request for proposal process directly to the County for HOME funds to help subsidize affordable housing
projects in Palo Alto. If the City receives HOME dollars from this process, the City is required to provide a 25 percent match, which will be
provided by the City’s Affordable Housing Fund. Certain non-profit organizations known as Community Housing Development Organizations
(CHDOs) may also apply for funding from the State Department of Housing and Community Development for housing projects located within
Palo Alto.
Other local resources that support housing and community development programs include:
•Palo Alto Commercial Housing Fund, which is for the development of workforce units and paid by mitigation fees on commercial and
industrial projects; and
•Palo Alto Residential Housing Fund, which is for the development of below market rate (BMR) housing units and paid by miscellaneous
funding sources.
The City will continue to seek opportunities for projects that meet local bond requirements in order to bring additional resources to help the
City’s affordable housing shortage.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs
identified in the plan
The City of Palo Alto's 2023–2031 Housing Element includes a strategic initiative to redevelop city-owned surface parking lots, particularly in the
downtown area, to support affordable housing development. This approach aims to utilize underutilized public land to meet the city's housing
goals. The City plans to issue requests for information (RFIs) to explore public-private partnerships for redevelopment, conduct parking studies
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to assess current usage, and evaluate opportunities for reconfiguring or replacing parking as needed. A schedule of actions will be developed to
guide implementation, with clear milestones to ensure accountability and progress toward the City's RHNA goals.
Discussion
HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the
City will continue to leverage other funding sources to provide services to populations in need.
Currently, the City is not eligible to receive direct funding under the HOME Investment Partnership Act, Emergency Solutions Grant, or Housing
Opportunities for Persons with AIDS.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e)
Goals Summary Information
Affordable housing
supply and
condition
Housing Housing $73,585.00 rehabilitated: 5 units
2
Homelessness and
Risk of
Homelessness
$35,000.00 other than Low/Moderate
Income Housing Benefit:
450 Persons Assisted
3
Neighborhoods Special Needs
Non-Housing
Community
Development
Services and
Public
Improvements
$396,983.15 other than Low/Moderate
Income Housing Benefit: 74
Persons Assisted
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
6,681 Persons Assisted
Other: 2 Other
4
Opportunities for
Workforce
Development
Community
Development
Development $72,000.00 businesses
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Supportive Services
for Low Income
Households
Special Needs
Non-Housing
Community
Development
Services and
Public
Improvements
Tenant Assistance
Services
$34,570.85 other than Low/Moderate
Income Housing Benefit:
112 Persons Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Affordable housing supply and condition
Goal
Description
Assist in the creation and preservation of affordable housing for low-income and special needs households.
2 Goal Name Respond to Homelessness and Risk of 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 Increase Opportunities for Workforce 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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5 Goal Name Supportive Services for Low Income Households
Goal
Description
Provide supportive services to low-income households through bolstering case management and navigation of services
including legal assistance and tenant/landlord resolution.
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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 and serve as the basis for the strategic actions the City
undertakes to meet these needs.
# Project Name
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City awards CDBG funding to projects and programs that primarily benefit low-income, homeless, and special needs households. Projects
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are only considered for funding within the Consolidated Plan period if they address the goals cited in the plan.
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AP-38 Project Summary
Project Summary Information
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1 Project Name 2026 Project Sentinel - Fair Housing Services
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $16,250.00
Description Fair Housing Services. Eligible Activity (Matrix Code): O5J, Fair Housing Activities CDBG National
Objective: LMC 24 CFR 570.208(a)(2)
Target Date 6/30/2027
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 will provide comprehensive fair housing services of investigation, counseling, and legal
referrals for victims of housing discrimination; community education and outreach regarding fair
housing law; and analyses for City staff and officials regarding fair housing practices and trends. We
provide proactive fair housing education to housing providers to avoid costly violations and reactive
enforcement investigations when violations are alleged.
2 Project Name 2026 Upwards
Target Area Citywide
Goals Supported Increase Opportunities for Workforce Development
Needs Addressed Economic Development
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Funding CDBG: $72,000.00
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): 18C Economic
Development: Micro-Enterprise Assistance. CDBG National Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
9 daycare microenterprises will benefit from this project.
Location Description Citywide
Planned Activities WeeCare/Upwards is a for-profit organization. Project activities would support their specific 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. Training
includes the utilization of the Child Management System (CCMS), aimed at helping providers create
work plans, set goals, enhance capacity, and generate revenue to achieve service and operational
objectives. The BOOST program addresses various aspects such as family matching, children's program
enrollment, tuition collection, weekly curriculum, licensing regulations, program expansion, and staff
recruitment. The intent is to assist small businesses in implementing best practices for organizational
growth and sustainability, ultimately supporting low to moderate-income families served by FCCH.
3 Project Name 2026 Rebuilding Together Peninsula - Safe at Home
Target Area Citywide
Goals Supported Affordable housing supply and condition
Needs Addressed Affordable Housing
Funding CDBG: $73,585.00
Description Eligible Activity (Matrix Code): 14A, Objective LMH
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Target Date 6/30/2027
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.
4 Project Name 2026 SVILC Case Management
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $15,750.00
Description Case Management. Eligible Activity (Matrix Code): 05B, Handicapped Service, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
24 unduplicated Palo Alto residents will benefit from one-on-one housing assistance.
Location Description Citywide
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Planned Activities The Housing Assistance and Emergency Services for Persons with Disabilities program assists very low-
income Palo Alto residents with disabilities or chronic health conditions and their families in their
housing search for affordable, accessible housing. The program provides education and 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 available funding allows), information, and
referral, to ensure long-term sustainability of housing.
5 Project Name 2026 Next Door Solutions to Domestic Violence
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05G, Services for victims of domestic violence, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
20 unduplicated Palo Alto residents will benefit from client centered services.
Location Description Citywide
Planned Activities Assist Palo Alto residents identifying as victims/survivors of domestic/intimate partner violence (DV) will
receive client-centered services through Community Support Advocacy: crisis intervention counseling,
risk assessment, safety planning, legal advocacy and attorneys, restraining order assistance, case
management, other support services through walk-in or virtual; Support Groups; Emergency Shelter and
24/7 Crisis Hotline.
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6 Project Name 2026 Catholic Charities Long Term Care Ombudsman Program
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05A, Senior Services, Objective: LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The program will provide advocacy and complaint investigation for 50 elderly residents of long-term
care facilities in Palo Alto.
Location Description Citywide
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.
7 Project Name 2026 LifeMoves Case Management
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness
Needs Addressed Homelessness
Funding CDBG: $30,500.00
Description Eligible Activity (Matrix Code): 03T, Operating Costs of Homeless/AIDS Patients Programs, Objective
LMC
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Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
350 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
Location Description Citywide
Planned Activities LifeMoves project activities include continuing and expand case management and supportive day
services for individuals experiencing homelessness in Palo Alto at the Opportunity Services Center
(OSC), in alignment with the City of Palo Alto’s Consolidated Plan and funding priorities. The project will
provide intensive, client-centered case management to support participants in accessing permanent
housing, increasing income and benefits, and achieving long-term self-sufficiency. In addition, the OSC
will offer essential day services including food, clothing, shower(s), and laundry (dryer) that address
immediate basic needs, reduce barriers to engagement, and provide a stable point of access to housing-
focused services for unsheltered and highly vulnerable residents.
8 Project Name 2026 RotaCare Bay Area Mobile Clinic
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness
Needs Addressed Homelessness
Funding CDBG: $4,500.00
Description Eligible Activity (Matrix Code): 03T: Homeless Programs, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
100 individuals assisted
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Location Description Citywide
Planned Activities This project provides free, accessible medical services to under and uninsured individuals to reduce
barriers to essential care. Services will be delivered through our RotaCare Rotary Mobile Medical Clinic,
with follow up care available at our San Jose clinic when the unit is not deployed within the Palo Alto
area to ensure continuity of care. Project activities include adult primary care such as evaluation of
acute medical concerns and preventative health services, along with prescription refills and laboratory
testing at Quest Diagnostics. The project will also provide referrals for imaging studies, specialist
consultations, diabetic retinal screening, and connections to additional community resources. Diabetic
patients will have access to diabetic self-management classes to support long term health outcomes.
9 Project Name 2026 YWCA
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $5,500.00
Description Eligible Activity (Matrix Code): 05G, Services for Victims of Domestic Violence, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
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Planned Activities YWCA Golden Gate Silicon Valley (YWCA GGSV) provides essential domestic violence (DV) services,
including a 24-hour English & Spanish Support Line (250+ additional languages through interpretation
service), crisis counseling and support groups for adults and children, emergency shelter and housing
services, over the phone response to law enforcement calls, personal advocacy, individual therapy,
transportation, criminal justice and social services advocacy, temporary restraining orders, court
accompaniment, household establishment assistance, children’s programming, and workforce
development services. Our services are survivor-centered, trauma-informed, culturally responsive, and
coordinated.
10 Project Name 2026 Planning and Administration
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Affordable Housing
Homelessness
Community Services and Public Improvements
Tenant Assistance Services
Economic Development
Funding CDBG: $122,427.80
Description Eligible Activity (Matrix Code): 21A, General Program Administration Planning and Administration
Target Date 6/30/2027
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 CDBG program administration
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11 Project Name 2026 ADA Curb Ramps
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $172,335.35
Description Eligible Activity (Matrix Code): 03L, Sidewalks, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
6,681 severely disabled adults assisted
Location Description Citywide
Planned Activities This Public Works project will provide ADA curb ramps within the City for the benefit of severely
disabled adult residents.
12 Project Name 2026 Peninsula Healthcare Connection Rehabilitation
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $79,970.00
Description Eligible Activity (Matrix Code): 03E, Neighborhood Facilities, Objective LMC
Target Date 6/30/2027
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Estimate the number and
type of families that will
benefit from the proposed
activities
TBD once completed
Location Description Citywide
Planned Activities This project will refurbish and transform PHC’s newly acquired house at 51 Encina Avenue into a
dedicated facility for behavioral health, therapy, and addiction treatment services. This historic
property, located in the heart of Palo Alto, presents an opportunity to expand essential healthcare
services for our unhoused, low-income, and undocumented neighbors. Funding requested here is
focused on pre-construction phase activities.
13 Project Name 2026 La Comida Food Assistance
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $6,320.85
Description Eligible Activity (Matrix Code): 05W, Food Banks, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
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Planned Activities La Comida provides healthy meals, resources, and a warm environment each weekday. We will also
engage and energize Palo Alto residents to support and volunteer for senior needs, causes, and
projects. This project will support the needs of the growing population of seniors who are now
accessing the services of La Comida.
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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
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
N/A
Discussion
N/A
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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 list 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 2025-30 Santa Clara County Consolidated Plan (ConPlan). The County’s
ConPlan identifies five 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: City lowered eligibility requirements, allowing up
to an 80% density bonus and provided more exceptions to applicable zoning and development standards. Notably, if 100% affordable
development is within half a mile of a major transit stop, City cannot impose any density limits and is entitled to a maximum height increase of
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three additional stories or 33 feet.
-Remove Density requirements in certain zoning districts.
-Below Market Rate (BMR) Housing Program: 1974 Developers must allocate a percentage of units as BMR housing in approved project of 3 units
or more. The program originally required that for developments on sites of less than 5 acres, the developer must provide 15% of the total
housing units as BMR housing units. If the site was larger than 5 acres, the developer was required to provide 20% of the units as BMR housing.
The City of Palo Alto has historically used in-lieu fees & development impact fees charged on new, market-rate housing and/or commercial
development to finance 100% affordable developments. Updated Commercial and Residential Impact Fee Nexus Studies and adopted two
ordinances making changes to its BMR program and adopted a new fee structure, effective 06/19/2017.
-Fair Housing: Protect tenants from displacement through more robust tenant protections and better access to legal services. City 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. Project Sentinel resolves fair housing complaints via investigation,
mediation, education, and outreach to both property owners and tenants about fair housing policies. Increase access to lending opportunities
for residents of historically low-income communities of color.
-Housing Incentive Program (HIP): Effective 05/02/2019, 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. HIP is available to specific areas of the City
where higher-density development is encouraged. - Affordable Housing (AH): 2018, City Council adopted 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): 2018, Encourages housing near rail transit by modifying development standards by modifying flexible development
standards for the public facilities (PF) zoning district. The average Palo Alto home, as of 02/01/2023, costs about 8 times the national average
home price, and the monthly rent is about 2.5 times the national average.
-Accessory Dwelling Units and Junior Accessory Dwelling Units: City 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,
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nor shall they require Architectural Review pursuant to other sections of Chapter 18.
-City Amended Chapter 9.68 (Rental Housing Stabilization) of the Municipal Code to expand just cause eviction protections to renters, including
reducing the minimum time period required for renters to qualify for just cause eviction protections.
Discussion
NA
Annual Action Plan
2026
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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: To address this, the City supplements its CDBG funding with other resources and
funds, such as:
•Support social services entities including RotaCare and Catholic Charities that provide needed
supportive services for extremely low-income and or elderly residents.
•In FY 2025-26, the City’s Human Service Resource Allocation Process (HSRAP) provided about
$600,000 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
•The Housing Authority of the County of Santa Clara (HACSC) administers the federal Section 8
program countywide. The program provides rental subsidies and develops affordable housing
for low-income households, seniors and persons with disabilities living within the County.
Actions planned to foster and maintain affordable housing
The City will foster and maintain affordable housing by continuing the following programs and
ordinances:
•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.
•Annual CDBG allocations to Rebuilding Together Peninsula to preserve existing affordable
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housing stock.
•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 is collaborated 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. This development opened in winter of 2025.
•The City awarded $5M to Charities Housing in 2025 to support the development of a 100%
affordable housing development (130-units) serving low-income households.
•The City’s participation in the County's HOME Consortium will allow developers of affordable
housing projects to be eligible to competitively apply through an annual RFP process directly to
the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including
acquisition, construction, and rehabilitation.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides 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 2026-27, all CDBG
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programs will work at reducing the number of poverty-level families in Palo Alto.
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
drawdown 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
service agencies
City will continue participation in HOME consortium meetings with County, consortium members, and
other local service and housing providers to discuss housing and community development topics.
Discussion
NA
Annual Action Plan
2026
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OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4)
Introduction
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.
program year and that has not yet been reprogrammed 0
address the priority needs and specific objectives identified in the grantee's strategic plan.0
been included in a prior statement or plan 0
Total Program Income:0
Other CDBG Requirements
1.The amount of urgent need activities 0
2.The estimated percentage of CDBG funds that will be used for activities that
benefit persons of low and moderate income. Overall Benefit - A consecutive
period of one, two or three years may be used to determine that a minimum
overall benefit of 70% of CDBG funds is used to benefit persons of low and
Discussion
NA
Resolution No. _______________
Resolution of the City Council of the City of Palo Alto Approving
The Use of Community Development Block Grant Funds for
Fiscal Year 2026-2027
A. On June 9, 2025, 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, 2025, to June 30, 2030.
B. The Fiscal Year 2026-2027 Annual Action Plan, the annual funding update to the Consolidated Plan,
was subjected to public review and commentary during the period from May 1, 2026, through May
31, 2026.
C. The potential uses of Community Development Block Grant (CDBG) funds were evaluated in light of
the needs and objectives identified in the Consolidated Plan and reflected in the recommendations
and comments of the Human Relations Commission Selection Committee, Human Relations
Commission, and other interested citizens.
D. Under the CDBG program, the highest priority is given to activities which will benefit persons with low
and moderate incomes.
E. The City Council and the Human Relations Commission have held publicly noticed public hearings on
the proposed uses of the CDBG funds for Fiscal Year 2026-2027.
F. CDBG funds allocated to the City for Fiscal Year 2026-2027 are proposed to implement the programs
described in this resolution.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The uses of CDBG funds for Fiscal Year 2026-2027 are hereby approved and
authorized for the following programs:
Name of Program Amount
1. 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.
$6,500
2. LifeMoves – Opportunity Services Center. Provide case management
services to Opportunity Services Center clients, specifically with locating
housing and/or employment and benefits counseling.
$30,500
3. Silicon Valley Independent Living Center – Housing and Emergency Services.
Provide case management services to low-income individuals with disabilities
to secure affordable and accessible housing.
$15,750
4. Project Sentinel – Fair Housing Services. Provide fair housing services
including complaint investigation, counseling, advocacy and community
education
$16,250
5. La Comida – provide food assistance, resources and social engagement
opportunities for the older adult community. $6,320.85
6. Next Door Solutions to Domestic Violence – assist residents identifying as
victims of domestic violence by providing crisis intervention counseling and
other critical services.
$6,500
7. YWCA – provide essential domestic violence services, including crisis
counseling and emergency shelter and housing services. $5,500
8. RotaCare Bay Area Mobile Clinic – provide case management services for
individuals experiencing homelessness. $4,500
9. Peninsula Healthcare Connection Rehabilitation – funds will refurbish a
facility dedicated to providing behavioral health, therapy and addiction
treatment services.
$79,970
10. ADA curb cut-City of Palo Alto – major curb ramp improvement project that
will bring many ramps up to current ADA accessibility standards. $172,335.35
11. WeeCare/Upwards - a micro-enterprise project that will provide Palo Alto
home childcare business improvement services. $72,000
12. Rebuilding Together Peninsula – Safe at Home. Provision of critical health
and safety related home repair needs for low-income Palo Alto
homeowners.
$73,585
13. CDBG Program Planning and Administration. $122,427.80
$612,139
SECTION 2. The total amount set forth under Section 1 of this resolution represents the
proposed allocation of $512,139, in CDBG funds from the United States Department of Housing and Urban
Development (HUD) for Fiscal Year 2026-2027, and $100,000, in anticipated program income for Fiscal
Year 2025-2026 from Alta Housing.
SECTION 3. The City staff is hereby authorized to submit the Fiscal Year 2026-2027 Annual
Action Plan, update and appropriate funding to HUD for the Fiscal Year 2026-2027 CDBG funds, and such
money shall be spent as set forth in this resolution. The Mayor, City Manager, and any other designated
City staff or officials are hereby authorized to execute such application forms and any other necessary
documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant
agreements with the program providers set forth in Section 1.
SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on
final allocation amounts from the Federal Fiscal Year 2026-27 HUD appropriations; City Staff is authorized
to adjust increasing or decreasing the funding amounts set forth herein as consistent with the adopted
Citizen Participation Plan.
SECTION 5. The City Council hereby finds that the Fiscal Year 2026-2027 CDBG program
authorized under Section 1 of this resolution is not a project under the California Environmental Quality
Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that
may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under
the Fiscal Year 2026-2027 CDBG program prior to the release of funds for any such project.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Sr. Assistant City Attorney Director of Planning and
Development Services
APPROVED AS TO CONTENT:
Director of Administrative Services
CDBG Program Manager
June 1, 2026 www.paloalto.gov
City Council
2026-2027 Annual Action Plan
Public Hearing
Presenter: Leif Christiansen, Senior Housing Specialist
Meeting Purpose
▪City Council review and approval of
the draft Community Development
Block Grant (CDBG) Fiscal Year (FY)
2026-27 Annual Action Plan (AAP)
Brief Overview
▪CDBG program funding administered by Department of Housing and
Urban Development (HUD):
▪City receives approximately $500k/year
▪Funded activities must benefit low and very low -income persons
▪Program Requirements:
▪Five-Year Consolidated Plan:identifying community needs and
goals (approved by City Council in June 2025)
▪Annual Action Plan:outlining projects to be funded
CDBG Funds Available for Allocation in FY 2026 -27
Funding Sources Amount
FY 2026-27 Entitlement Grant $512,139
Program Income in FY 2025-26 (Estimated) $100,000
Estimated Total CDBG Funds Available for Allocation $612,139
Funding
Categories
&
Proposed
Grantees
•Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program $6,500
•LifeMoves – Case Management $30,500
•Silicon Valley Independent Living Center (SVILC)– Case Management $15,750
•Project Sentinel – Fair Housing Services $16,250
•Next Door Solutions to Domestic Violence: $6,500
•La Comida – Food Assistance Program: $6,321
•YWCA – Domestic Violence Services: $5,500
•RotaCare Bay Area – Mobile Clinic: $4,500
CDBG Public Services – 15% Cap
•WeeCare/Upwards $72,000
CDBG Economic Development
•Rebuilding Together Peninsula (RTP) – Safe at Home $73,585
CDBG Housing Rehabilitation
•Public Works - ADA Curb Ramp Improvements: $172,335
•Peninsula Healthcare – Facility Rehabilitation : $79,970
CDBG Public Facilities and Improvements
•City of Palo Alto $122,428
CDBG Planning & Administration – 20% Cap
FY 2026-27 AAP Funding Recommendations
Timeline
*HUD allocations are expected in mid-May
HRC Selection
Committee
March 27
HRC
Meeting/Public
Hearing
April 9
Public Review
and Comment
Period
May 1 to May 31
City Council
Meeting/Public
Hearing
June 1
Submission to
HUD
By July 1
▪The Human Relations Commission (HRC) reviewed the draft AAP on April 9, 2026.
▪The HRC voted 4-0 to recommend Council approval of the Plans, with the following
direction:
–Increase allocation to La Comida by the largest allowable amount within cap
–Increase recommended funding to YWCA to $5,500 by decreasing funding from
LifeMoves, Silicon Valley Independent Living Center and Project Sentinel
–Direct additional available funds to public facility projects
▪Staff updated the Plans to reflect the HRC's recommendations.
HRC Review and Recommendation
The Human Relations Commission (HRC)and staff recommend City Council take the
following actions:
1.Adopt the draft FY 2026-2027 Annual Action Plan (Attachment A) and the associated
resolution (Attachment B)allocating Community Development Block Grant (CDBG) funding
for FY 2026-2027;
2.Authorize the City Manager to execute the FY 2026-2027 CDBG application to fund the FY
2026-2027 Annual Action Plan (AAP)and any other necessary 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 FY 2026-2027 AAP to U.S. Department of Housing and Urban
Development (HUD) by the extended deadline of August 16, 2026.
RECOMMENDATION
Leif Christiansen
Senior Housing Specialist
Leif.Christiansen@paloalto.gov