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Home My WebLink About0316.092~"' ..... '. . , o 0 ·~o ,,:~ ". .',' July 2, 1992 HONORABLE CIT! COUNCIL Palo Alto, CalifoTl'1ia ATTENTION: Polic.''I' and Services Corrrnittee Members of the CQuncil; REPORT I~ BRIEF This report 2nd attachments provide backgrou~d informatiofi and ~taff observaticns regarding the (cmmunity Development Blo~k Grant (CDBG) Program. The report provides Counci1 with the r.ecessary information to discuss policy issues retrarding the dil"ection of the CDS{; program and the type, nUr:1ber and sile of contracts and agencies funded by the COSG program. OriGin of Policy and Senices Committee Referral In January and March of ]992~ th~ finance Committee considered and recQmm~nded approval of the expansion of the CDSG staff from 1.6 person yedr; to 2.5 person years. This expanded staffing, which was approved by the City Counci:l ~!", ~ay IS. 1992 and funded June 22, 199"2, w~s brought about by an increase in enforcement of th€ fE:dera1 reguliitions and a graduai exp~rlsion Df the number of ag~ncie5 receiving COBG fur,ds through the City's annual process. The combination of more grant recipients and increasingly complex regulations resulted in the City recei¥'lng numerous Comments and Findings from federal auditors reviewing the City's records and procedures. The Finance Committee dna Council recommended that policy issues related to the number of grant reclpients be addressed by th~ Pc1icy and Services Committee. purpose and lrttent_QJ the CD9G Progral'll The CDSG program is a federal block grant program established in 1974. The cbject1~e of the COBG program is "the deveTopment of ~iable urban communities, by providing decent housing and a sUltable ltvlng environment and exp~nding CHR,lIS,92 -, ..... , "'!if"". -, _t .. ~"'.·'""· "'-~,"" • - --. j~~; . , o economic opportunities, principally for persons of low J~d moderate income" [Code of Federal Regulitions, Part 24 {24CF"R570.2)]. luw income is d€fined as persons or I'1Qwsehclds earning belo\lf 66 ~jercent of Santr.! Clara County median ir,c.ome. ThF: ur:lbre1Ta requinmant for all CDBG ac~i ... ities is that seventy parcent ~f tota1 COeG expenditures must meet the low 4 income criteria [24CFR570.200(3J as a~nded by the Cranston-{;cPlzalel .a.ffordab'ie Housing Act]. Eligible C08G acti~ities inc1ude property acquisition for any purpose except buildings far general conduct of government; clearance, dernoiition and removal of buildings and improvements; reloclticnj removaT of architectural barriers; acquisition, construction and rehabilitation of public faCilities for the ~o~less, convalescent homes, hospitals, nursing homes: battered spouse she-Hers, halfway houses for rUn-i'Nay children, drug offenders or parC'llees, gr~up homes for mentally retarded persons and temporary housing for disaster victimsj rehabilitation of ~ublic and privately owned buildings for resid.entiai pllY'posesj and economic de· .. elcpment activities tl4CFR570.201- 570.106). PubliC service acttvities are allowed with a limit of IS percent of the oyeral1 CVBG allocation [24CFRS70.201(e)}. Provision of public service ictivities and facilities includes employment, crime pr~vention, child care, heaHh. drug abuse, educati.an~ fair hOlJsing counseling, energy conservation, welfare, or recreational needs. "-" pub1ic service must be either a I1-eW se"l'"vice or a quantifiabl! increas~ in the level of ser~ice and ~s intended as an adjunct tu CDBG-eligib1e imp~o~ement projects. Adrtinistration of the CnBG program is an eligible expense and is lir.lited to 10 percent of tne over.11 allocation (Z4CfRS70,206), lneligible activities include buildings used for tonduct of government; general government ~xpenses; political acti¥ities; new housing construction; purchase of construction equipment; furnishings and per~onal property; txpenses associated with repairing, operating or maintaining public facilities, improve~nts and serv1ces; project manag~ment ana direct income subsidies (24CfR570,101j, UP ieal Program Considering the intent, purpose and objective of the CDBG program, the following is a typical program that meets the COSG program requirements: •• •• A fair housing component w"ich addresses non-discrimination, advocacy and aY'bitratifJn issues on a local level. HQusing information, referral, counseling a~d advocacy for CDB~ income eligible groups such as low--income households, seniors, the disabled, homeless and battered spouses or other special needs groups. CMR:316:92 7/1/91 Page 1 flIf'· > > t .~ '~":~:r~ i ~, .. ' ~ • • , • I • • i I I j L i','" I - •• •• •• •• .. Property acquisition and construction of public facilities for special needs gr:llIps. Public. service programs. ser'.ing income eliglble clientele . F~nds to specIfically administer the C08G program and other federal hausin9 programs that do not contain administrati¥e funds_ Housi~g rehabilitation. remodeling and preser¥at1cn p.o~rams for both sir.gl!·fam11) i~d mult\-faml1y projects. An economic development program aimed at jC"D training and creation of jobs fer low-income persons. Pa10 Alto's COBC program has generally included all of the GbOVf progra~ areas except economic development. To help alleviate the jobs/housing imbalance, the Palo Alto COBG plan and program has plac~d an emphasis on housing and not jobs creation. The City does participate in the North Valley Job Training Consortium 1 although no General Fund or eDEG funding is required. 1he-Pilo AHa CDBG program has a1so varied from the above-typica.l program in that tne City has funded multiple public servic€ agencies. The 15 percent cap on public service funds is intended to prevent the (OBG program from becoming dominated by services instead of construction pngrams. 'II'Hh the requirement that p~blic services be new programs or a quantifiable increase in existing services, public ser·w'ices :;hould be limtted to specific new programs generally ass~ciated wlth CDBG-eligibTe improvement projects. Annual CDBG Funding The CHy's annual allocation under the COBG program fluctuates, but has increased over the past few y€ars dU2 to a s11ght increase i~ the ent~tlement fr~m HUD and program income from the Housi~g Improvement Program (HIP) and Palo Alto Ho"sing Corporation (PAHCj. T'. 1991·1993 .110c.tion of $840,000 includ~s $540,000 in entitlement funds, 5125,000 in HIP program income and sa2,000 in ;<AHC program income for the past five yea.n. As of this date, the City's allocution is ex~ected to decrease for 1993-94 fiscal year to below $800,000. An entitlement decrease is expected dU2 to the need for federal fur,din9 of ne ... housing programs s\Jch is HOME arod HOPE "Qnlj for spec~al programs in response to the los Angeles riots, Program income wi}l decrease due to the Tack of the one-time five year reimbursement from PAH( and decreasing returns from the HIP program. This flucttJation in th€ annual COBG allocation makes it difficlJTt to plan for on-going contracts. ThlS is particularly true in the pubiic service area \IIIhich is cappf!d at 15 percent. A redlJction of only $40,000 in the annua1 allocation means a 56 1 000 reduction in available public service funds. ~R,316:92 P: \Cl!Ir\CdbglXl 1 i, .::db .p;t-; m -$ ,-"'" 711192 Page 3 >. - o Qyarilll CPU Pro9!"ilf, Operations Specific prcgram requirements a~e established by federal regulations for the CD8G program. Every three years a (OSG plan, pro~iding specific goals for diractill9 the (06G program must be prepared. He Palo Aitc CDBG ;:-lar. .as last updated in: 19B5 'copy attached). After the ne-kI Hausing Planner is hired, staff .. ill beg'il"l pr~paratlon of iii new CDSG plan bued Qr. the po1 icy discussion by the Policy and Services Committee and input from the Cit1zens Advisory COINIIl t tee. In addit~oil to the three ::teu 'Plaf'l, the CDBG prcgra;n reQ\lires. an Cl'l''II'IIJa.i fundi ng appl1cation. review and men; toring of the oyerall program, revielAl' and monitoring of the recipient agencies, compliance with federal r€~~lations and annual reporting or: the ~rogre~s and status of thl2 program, is well is siqnific&nt book~~€pin9 ~nd tracking from the Fi"a~ce Oe~artment. At any given ti.e. appro~imately three years of COBG projects are in progress. This 1r.cludes preparatlan for the next fundin,g year+ re¥iew and m-Jnitoring of current cuntracts, and fina1ization end completion of contracts from the previous ,)Ie-ars. A~licatjQn Process for Indi¥idual Projects Just is the City must prepare an overall application for the CDB~ program, each indi~!dw3l project or program must also submit for funding. The follo~;n9 is i typical sequence of events in the application process: 1. Preparation by staff cf a Request for Proposal that reflects the pri~rit;es dS listed in the COBG pTan, 2:. Recndtment and appointment of a Citizens Ad-.. isory Committee by the Mayor to advise staff and CounCil, 3~ Submission of app1lcati~ns to the City by prospective recipi2nts, 4. App.lic.a.tions. revie'Hed bJl Citizen Ad'ilsor), Ccmm~ttee. 5 Er,vironmental re· .. i ew and preparation of staff rep::Jrt, 5. Reviay and recormtenda.tion by finance Con:mittee. 7. Rev; e.,.. and adopt i Or1 by C;ty Counc il , 8. Preparation of application ta HUD, 9. Negotiation and preparation of individual contracts, 10. Monitoring a.nd reporting to HUO on compllance of all contracts with federal regu1ations, 11. Monitoring and repolting to HUD an program status and CMR:316:92 P: \cmr\~dtl9pc 1 I ,cdb 711/92 Page 4 12. CDmp1etion of contract. Administration and monitoring continues after compTetion of a ~vntract. This ~nc'udes such 1tems as !ligihl1ity of participants y accounting for program income and other federal assurances. The after contract monitoring p~riod vari.es from fh1e te o'wer 25 years. HUD regul,;,tions req'Jire c.ompliance with nlJrnerous codes and fedeHl regulations including Divis·Bacon Tabor standards, environmental reviews, tlousing qua.lity stal1dards, procurement, bidding and contractor se;e,:tion procedtP"es. Tnis requires on-s'te inspections y construction ccnferences, administrat,ve documentation, and publ,:: notification procedures. Hlere aY'€ also KUO T€porting requirements on the use of minority·o ..... ned business,as~ the olieral' number and ethnicity of projed beneficiaries, and certified payroll rev,ews by all contracton and subcontractors who must comply R'ith federal labor standards. Contract Monitoripg The COBe contract monitoring process is essentially the same w!1,ett,er the contract is large or small. Constr~ctlon contracts require more staff and recipient time and expense than public ser~ice contracts. Small contractors and rfcipients generally require more assistance in prep~ration~ monitoring and reliiew of proposals. From samples of current contracts, the cost far the City to administer a COSr, cDnstruction contract for an agency or projett of less than $15,000 is approximately 10 to 15 percent of the total project cost. The sophistication of the nonprofit agency in dealing with contractors and bid specifications is a major factor in the staff time ir.lio1ved in the project. The nonproflt agency must be adliised of all the relevant r~9ulations ~nd procedures, and must contractually obligate all contractors ard subcontractors on the project to ttle same standards. The discontinuance of the City's Housing Improvement Program (HIP) rrfgatively impacted the CDBG staff through th! loss of staff that could readily handle a ~ariety of technical issues related to construction. Public Ser¥ice tontracts arE normally annual contracts and all federal req~irements. except on-going monitnring. are co~plet~d during the fiscal year. Construction projects generally take two to three years. The follG~ing chart shows the contract agencies. the project and the be9inni~g a~d end of f~nded projects sin~e 1989-1990 funding_ AGENCY P~OGRAJoI/PROJECT The fol1owing are-annua1 contracrs, PMIRS Tenant/landlord Senior Senior Housing (oordi nating Home Repair (ouncil CMR;)16:91 PO: \OlIr\::dbgp(lll ,C"db -~.~'._A,:,,~_". ".~"C"'· .c' ... Ji .. "j'lill""XIO_I-' ""_. ___ , ...... _c ., ·~t;r .1(".:':' 89·90 90-91 91-91 91-93 ~nera 1?y for on-goin1..pub7 fc services SII,700 $11,000 10,000 9,500 15,000 15,000 111,000 10,000 15,000 510,000 10,000 IO,O~~ 7/1/91 Page 5 i [ i ~ ..• ~ . .. . " /-.::'-'.~~ . ,,--,'.-~ ~-.: - ~ >:. ~, I - AGENCY PROGflAM/PROJECT Urban Ministn Homeless Inru:a;ative Shared Housing: liousinq Catholic Seni'Or ~hant;es Ombudsman MCFH fair Hous.ing PAHC Housing info. d~vf1l)cment & City of Palo Administration Alto' Emergerrcy Housing Homeles~ Consortium sheTter Cor.rnunity SenTor Setvlces Agency nutrition Family Service Substance abuse Ass<iCiation P.A. Adolescent Substance abuse Services H_less Child Subsidies Care The follrMfng are one-time contracts: City of Palo landbank Alto· HIP' Rehab loans ~idpeni I'1sul a Wheelchair Support Network access Shelter rehab Innovati",e Tran~ .. \tioTla1 Housing h(lusing acq. Stevenson House Dining roor'!:] Paving Deck repairs Caroet i no CMR:316:91 L ~ __ ""_~~ .. , .......... ,::OI!"'''' ... . 89-90 90-91 91~92 92-93 30,000 30,000 30,000 33, DOC 5,000 7,500 24,000 10,000 8,78S ' s,ns S,089 9,68S 20,500 22,205 24,333 15,000 91,200 102,500 107,200 28,000 51, 100 81,000 126,606 178,300 17,000 10,S12 15,000 2,500 15,000 10,000 10,000 100,000--·198,835-··-313,000---·---- (,upplemental funding) 125.000---··---·---··--·--····-···-- 10,000----------I I 20,000--·----· 33.306---··---·- 20,000··--.. ·--· .- 17,500·--····-----·--···-- 5,000--··---·· 20,000 7/1/91 Pagp. 6 ---- AGENCY P,OGIWI/PiOJfCT 89-90 90-91 91-92 92-93 Pen; nstJl a 1 Remove: asbestos 10,405---------- Children's Cer,ter Aco. & rehab. --r 43,5l9---------- t Fire alarm l5,770 "~------- P. A. Adclescer.t Electric repair 5,971 Serw1ces (Caravan HD\Jse) Structural 39,000--------- repairs City of .Paio Park access: 40,000--------- Alto' I Senior Center 40,000--------- desigr. C.A_ R. Swi"t1 Center 64,135--------- repairs lytton Gardens Emer-qency 67,592--------- qeneratoY Second Harvi!St Dist. center 25,000--------- food Bank E~uipm.nt 25,000 Sr Coord Council Cold stora.s.e 3,400--------- Social Activit;i!s Sh~lter rehab. 10,000 fer YO!Jth N-ew Chi ldrens New ll,500 Shelter construction New ~us;n3 Misc. Projects 393,935 Oevelopment fund'" totals *(,it" 1 l 4 5 _ti:_~_~: ity - I I 13 16 21 23 The above chart does not 1nclude the man) applicants who must be assisted every yetr but do not rec€ive funding. For example, for 1992·1993, 33 applications w€re received and 16 were funded. Contracts with beth Cl ty and CDBG fi.J.nd __ ~ Fcr 1992-1993 six agencies will receh'e fl;nding from bl)th City fUl'lds arld CD8G: CMR:316:92 P: \t:a'r\c~p" 1;, ~d..'l. -.... S"!!llcIfliliiJlJillllIi ... __ •••• ,--" - .t~if'i .. ~'-:.~ .. :< 'f'~~~'; ';-'C,-: ".' , - 7/1/91 Page 7 - ORG.O.'1l ZA T ION COSG HOUS ING GE~EAAI TOTAL RESERVE FUND Catholic CMaritles Ombudsman 19,689 53, SOO 113,489 PAAIRS 10,000 34,000 44, DOC Senior C.oordlnit;rl~ Council 20,00C 332 ,000 352,000 Urbar. MinistrJ' 33, 000 17, SOD 50,500 Palo Alto Adolescent Services 10,000 36,250 46,250 Pa'o Alto HousinQ Corporati un 2B,OOO 40,000 68,000 TOTALS $110,689 $40,000 $423,550 S574,239 OPTIONS The following sec.tiuns 'Jutline filJe options that would affect the COSG program and ultimately the staffing required to administer the program: StAtus guo With the increased staffing appr!lvfd by the Council, the cose "reg ram could be left ~s it is currently structur~d, Thi~ will al1o~ staff rnir,ima1 but adequate ti~ to administer and operate the new federal housin9 programs such as HOME and HOPE, and ~ill allo" the City to bring the CDBG pr09ram into compliance witn fed~ral regul~tions. Reduce tnl!' Hlimber Q..LQy_~..ll..y.Junded Coetracts ~genc.ies tnat ilrl!' funded by both tne City and CDBG cOl11d ha .... e the; r funding adjusted to allOW f~nding from only one source. This is not as simple as it sOOlnds because of the (nSG caps. on grants ar.d other re.gulaticms. However a poss;b1e shift would r~vi$e the chart abov~ as follows: r ORGAN I ZATlIll' (DBG Catholl' Cha~ities Ombud~~an PAAIRS Senio:" CoordinatinQ Council 20,000 Urban Miflist!Y 50,500 Palo Alto Adolescent Services Palo Alto Housing Corporation 28,000 TOTALS $98,500 CHR:316:92 L HOUS ING GENERAL RESERVE FU~D SI3 ,489 44,000 332,000 45,250 40,000 540,000 $435,739 -- TOTAL SJ3,489 44,000 352,OOJ so, 500 46,250 68,000 $574,239 7(1/91 Page 8 ~':.·c,>~,;. .. , ~i ..• • - This example IMould increase General Fund expenditures by a ot:!'t of $12.189 an.d would reduce the ('OBG fonds a c-orresponding amount. As many is six of the eight public service agencies could be shifted to t~e General Fund from COBG funding. This would require eHher a greater apprc~rht1or. frorh tne general fund of \ltouid necessitate that t11£ agencies compet~ wit~ agencies (urre~tly funded by the general fund for the limited i\lailable funas. For the agencies shifti,1g to City funding it will pro .... ide a slight tenefit in Tess reg~latio~s. far City staff, it ~ould result in less cumbersome regulations for or;-g~ing monitori:'g and program reqlJirernE!'1ts, but ~oulj require further .ssessment of staffing requirements. COBG funds represent the only source ~f City funds for construction p~ojects such as Second Hnvest Food Bank and Stevenson !1ouse. Historfr:al1y, General Funds nave not been allocated to construction projects under Human Services contracts. Age-nc;es w(luTd haW'!! to l-t,ilize private funds 01'" minimal State and Co~nty resourc~s. l~mit the Size of Contracts Administraticr. of a COBG c(,ntrac.t is essent'iall,) the same wnether the contract budget is large or small. Because of tne ragulitions and monitoring involW'€d, tile cost to administer a contract under S20,COO is excessive compared to the staffing time required. The small c.ontract recipients are usuallf less sophisticated and require a greater degree of staff time to assist in preparing and executing a progra~. Small construction proj~cts .are particularly hea~y on administration and staff participation. By settfng a minimum size for CDBG contracts, the overill number of contracts would be reduced o'.'C'r a ti"'ansition period' and overa"il COBG funds would be made available for larger projects and c.ontracts. The list !)f pCissible large capltil projects far which CDBG funds could be ~sed might include: l· Acquisition_ rehabilitatiol'l and expansion of the Barker He-tel. b. DtrO'elopmt!nt and construction of a loltfl-inco"le hOl.!$irv~ project in the downtown and/or Ca1ifornia Avenue areas. c. Assistance in purchase of tne three federally subsiclzed projects consfdered at-risk units of becoming market rate projects. d. Buy downs to decrease the sal~s price of the Below Market Rate discount units at Birch CQurt. e. Senior Center seismic upgrade. f. Americans with Disabilities Act (ADM) accessibility req~irements for parks and other public facilities. CMR:J16:92 P'\CJI1r\,~p()l~ ~tlt. 7/1/'l2 Page 9 - g. Urban Ministry expansion/facility. h. Thro~9h nonprofits, a~quisitio~ of e~isti~g housing for conversicn to low·income projects. The savi~9s in staffing would be dependent on tne tnta! number of contracts and the nec~sstty fo~ administ~ring and monitoring ~tr.er housing ~nd federdi programs. limit the Nl!Mber of Contracts. Staffing cou1d be reduced by 1imiting the number of contracts and outside agencies t~ on1y those pr~grams that are required f~r i minimum CDBG program. Peducing the use of the City's CD6G funds from the curr~nt 15 to 15 annual contract reciplent.s to five or fe.er coul.ct il1ean reduced CDBG staffing frarn 2.5 persons to 1.5 persons with a program administration saving of appr~ximately 550,000 per year. In staff's informal su;vey that included HUO and 8ay Area COBG recipients of tomparab1e size to Pilo Alto, most cities indtcated that they 1·ecei .... ed a maximum of 10 to IS reques:ts for funding and had fewer than ten annual contracts. A program with a limited number of c.ontrac.ts might i ncl ude the following: A. fair Housing -SI5,OOO to S'O,OOO. B. Hctlsl::g information, c.uunseling and referral -S30~OOO to 535,000. L ASSistance to s,oeciai needs groups (oome1ess, substance abusers, etc.) -530,000 to 535,000. D. Capital proj.cts -$500,000. E. Housing rehabilit~tion (laYge projects would be incl~ded in t~e capital program) -SO.OO to $15,000. Approximately S125,OOO in program administration funds WOUld also be required. limiting the COSG program to no more than fhe anrlua1 contracts "auld reqiJire that the agencies currently fundej by the CnSG program be shiftec to the Geniral Fund or not funded at all by tne City. Other alternative sources of funding for agencies that would no 10nger receive C08G funds ;s not t'eadily apparent. The number of staff p€rSon required to administer the CDBG ~rogram is dependent on the goals and objectives of the CDBG plan. This jn turn ~ffects the number, type and size of CDBG contracts. Although the most effiCient (DeG program to a~minisler would nave a maximum of five annual contracts wlth the emphasis on major capital projects, it would place a hard~hip on the many agencies now recei~in9 CDBG funding. Staff CMR:316:9l 'L 7/1/92 Page 10 -) .. - \ ~ I i ·-'~.;t~ .... ·.:.:.· . ' .. ~. f , i i I , ! I I r L - bellfves, ho~eY~r. th~t the COSG pr~gra~ must make some (hanges to bring the program more in 1 ine wi th th@ i nt~flt and purpose of the program, H,e long: term d~pendence on COBG funds for public ser~ice agencies should be red~ced ind this 5110u1d be -a policy of the CDBG phn. This could be started by shifting the public service agencies Hat rece~vc booth Genertill fLind,; and CDSG fund!. to only cne City !;i)'Jrce. Staff also believes that the casts to administer and monitor COBG contracts of less than S20 ,000 is excessive compared to the benefits received. Staff rec<llm1ends that the CDSC pl an and consequent 1.1' ~uturt! COBG progrdms should encourage a cont~act minimum of $20,00Q. A recipleQt agency of a construct ton c.entract should be encouraged to group all required ""Dr~ into a single contract of a minimum S20,000. RE C GJoif1£NDA Ii Oil Staff recomrr~nds that the Council direct staff to I} separate the funding source for the CDBG and General Fund recipients in order th~t tr,ey be funded b,), either CDBG or C.en€ra1 funds, but not by both, and 2) i:'1stitute a policy that will encourage that the minimum SiZE of a CDBG contract be S20,000. Respectfu11y submitted, ~I~A~/ Manager P1annir. P ojects ---- Attachments: 1985-198B CDBG plan COBG Citizen Participation Pian t.c: Human Relations CommtssiC11 -:::itizens Advisory COlTlTlittee 1991-lg92 and 1992·1993 COBG funding recipients CMR:316:92 p, \~r"C~P<ll', cdb KENNETH R. SCHREIBER 0, rector of Planning and (omrnudty (nl/ironment 7/1/92 Page j} - •• '.---- PALO ALTO COMXU~I7Y DE-.,rllOPY.ENT BLOCK GRA..~T PLAN -NF.:EDS~ STR.-\TEGIES A.."f'U FUNDING GOAl.S AND PROPOSAl SELECTION CRITERIA 1985-1988 Iutroduct:1on the Com=.unity De\'~lci'tilent Block Grant (CtBG) Program is enuring tbe third year of the 1985-1988 TO'l"ee-Ye.ar Program. Ov-er the. pas ~ t\.-ehe years of the program~ Palo Alto has beeo .allocated iifprox1tta.tely $7.3 million for hO'-lsir:g and cO!!Jll'Hlnity d·I!'Ie.lopme;n~ projects directly benefiting lOTol-8nd ret'derate-in come persons. For the 1986-87 Program Year, Palo Alto receh'ed $524~O'JD.~ although this level of funding could be reduced in the future. Annually. the City rece!vu 10-15 p!"oposals for fut-.dir.g. The CDEG Prog-:'alOt has prov:i1ec funds to increase th"" supply of affordable housi!'lg~ iTI:lprove the condition of e)(isting housing. redu(t:! the level c-f discd:l!;ination in nOl • .l,sing, a71d cor.scru'Ct and im prove ccmmunity faci~ities for handicapped/~isabled persons~ s~ni0r citi~ens, and others~ Tbrough the support f~lr these projects and services., the CDBG Program h.e_s ilDproved the qti~lity of life f<n persu!":5 living and lo.'Orking -in Palo Alto. Tbe purpose of this plan is to provide. a framewnk for the Citiz2ns Advisery Committee .. Staff .. and City Council in making funding recOimlJencat:ions anc decisions on CDBG projects over thE three prcgtam years (1985-86. 1986-87. 1987-88). The Plan estz,bHshes a funding allocation goal of BlJt for hou:s.ing rela";.ed act.ivit"les. 15% for community faciUties a:<d i:nprovement's~ and 5': fo!' administration. An additional purpose of i:.le Plan is to servl! as a gt..ide to prc~pective applicants i~ sele~~ing p!'oje~ts and p!'eparing proposals. The Plan is divided Into two p!'imary sections. S_ect!or. Or.e sets forth tr.e major hous1ng and cOmtlul".ity development ne-eds in-P-alo Ale" that can be a,ddre:.sed b)' thE CDBG Pr-cgra:zJ. At:tach~en"'.: 1 lists the :;oources of infcn,,~tion used in establishing the needs. Specific strategies are suggest~d to adcr~ss each need. Ihis Section alsc establishes a fuading goal for tbe main categories. The Plan plac~s emphasis on funding projects directed toward the housIng needs of lo'it'-.3nd moderate-income persons 'living in Palo Alto. ~ __ [io __ =!. ~ conta:fn~ a set: of criteria to be t:sed in selecting proposals for f.mding. SECTION ONE N~eds. Strates1~s 8nd Funding Goals During the t'it'elve years of the CDBG Program, housing has been a top priority (or funding, Allocations for housing-related project; !nclude hO'LJsir.g S'UPFly, Tehabilitation. discrimination and emer8en~y housing. Of the $7.3 milli~D of CDBG funds allocated to the Progr<~m during the first t;.;elve years. $6.4 million. or 88%. hAs been allocated to housing-related proj~ces. I~ the twelve years of the Program. the amount of funds allo<"_ated to Heusing has varied from 76% to 100:::. " ., This high level of c~mmit~ent to housing should continut. The recently ad~pted 1985,,2000 Bo',:s1ng Element Crf the Palo Alto COlIlprehenEiv~ Plan emphasizes the cr1tic~1 housing problems in the City. Two of the major obj~ctives included io the Houstna Zleme~t ar~ to maintain & dive~5ity of housing opportunities 1n Palo Alto and to increase the supply of housing, espec1~11y for pe~sons of lo~ bnd ~oderate income. This emph3s1s is consistent with the needs identified by the Bwman Relations Co~ission in making their recommenda~ions for HumAn Services Funding. These needs identify support services to Single-parent house hold5~ support se ..... 1cli!S to t.hE. dis5bled~ and housir.g s~rvices to f.:ulll11e:s, 2S the highest p~iority ~eeds. The Department of Housing and U~ban Development (HUD). the State Depart~ent of Sousing end Community Developoent~ and the Association of Bay Area Governments (ABAG)) each has commended the ~ity on its higb level of CDBG commitment to housing and ~ncoura~ed the City to continue this ~ommitllent. thE seco~d priority for funding is for eo~unity-v1de facilities 2nd ~prove ments. Dtlring the first t.en years of the prograru~ ov~r $£41)000 has been allocated to this category. ~h1ch 15 11: of the total al1~catioD Typical community-vide facilities and improvements include construction or r'RhabilHatlon of buildings provi~1ng Hrvices for handicapped/disabled persons and .senior ~iti%ens. There is a continuing need to assist ~ommunity organiza tions in making capital improvem~nt5 to th~1r facilities. Inis ~eed is espe cially iwporta~t witn respect to Palo Alto's child care-eligible popula~ion~ An increase in Pale Alto's Senior population and female heae-cf-household populat.i~u from 1970-1980 was i-ie!l.!:ifi~d in 1980 C.S. Cens\.!s data. The final category of funding is fpr th~ adruin!strator of ~he progra~. Adminis tration funds have been allocated for the last four y~ar5 and have aver&ged 3% ~$21,900) of the total allocat1oll for each of tbose yeats. These funds are used to plan for and ~plement the program. A minimal 8~o~nt of funds -~y have to be set aside out of the total 411ocation for the CnBG Contingency account if the existing a~counc becomes dep12ted. Th~s amount~ at th~ maximue~ ~ould be 3-5% of the CDBG allocat1on~ F"Unding Coals The plan est:a.blishes goals fGr allocating CDBC funds bn:.oog thre~ maIn categories. Tne funding goals arc no~ intended to be rigid, but rather serve 8S guidelines consiste.nt with the need. The funciing goals ari!: Housing Communl~acilities a~d Improvements Administra t ion 80% of CDBG AllocalioD lSI of CDBG Allocation 5% of CDBG Allocation Outlined bela..,-ere the spe.ciffc needs,' follclo'ed by the strategies of the three main eat~gories. The individual need categories arc ~ in any order or priority. <L .:--. t I i , . , \ , L ROUSING (A11oc,ltior. Goal: 80:: of CDBG Allocation) Increase the n~be[ of housing un1ts affordable to lo~-aud moderate incOttle persotts, including ref/tal 'U~its for f.amilies, senior citizens. and bandicapp~d/d1s~bled persons. 1. Ar.quire suitable parcels through landbank1ng. 2. Site improv~me~ts for assisted ho~sing. 3. Acquire housing to be rented to lov-and moderate-1nCdoe peTsans. 4. Support housing developlilent ccrpoTa~1ons c::"d other organizations working toward the provision of affordable housing. Housing Rehabilitation Servi~es & Flnan~ing -Owner Occupied AEsist loye~ income households 1n meeting the h~gh cost of rehabilitation finonc.ing wh)..cn limit.s. thf!ir abilit.,. t-o \Ilil.koe. necessaTy ho~e imjy,:cvt'_ments atld repairs without financial assistance. There is a special need to aS5is~ se.nior citi::ens and s-:i:r'gle-parent 1'loUleo"",1Jers with Te'habilit;a;tion services "and finan~ing. 1. Provide peloY-market-rate rehabilitat1an financing to loy and moderate incoce hom€o.~ers. 2~ Provide hOl!.e reh<,,_bilitation .services to lO'loT-aod !'loceTate-income home Ollners. Housing _Rehabilitation Serv;tce.;; & FitlanciflL-=--_~l!lti-Familv Housing Assist 5ponsor~ of non-profit and subsioized ~ental housiog developments fer lov and moderate income ~ersons ~th necessazy maint2nanc~ and repair costs that cannot bt:. reasonably paid for out of t.heh on-going budget. Palo Alto currently has ove: 900 ~ssis~ed housing units. 1. Provide belolJ-!!a:t'ket-rate financing or grants fc,r re'":<obili::ction. Tepair j or i~provem~nt of existing ~ulti-family rental bousing fer lov and moderate income pe.Soos. 2. Provide rehabilitation services to eligible lo~and moderate-incone housing develo~ments. FlOtlS-i.Il:&""p_!SCTimination and Other Rousing Services Reduce or eliminate discri~ination in ~o~sing bas~d on rB~e~ r~ligion, sex, family size and statl!S~ disabilities, age, Ot aey oth~r arbitra:ry factor. Education programs~ counseling, referral, and legal &ssistance services are n~cessary. 1. Fund fair housing ,services -which .:i.o.sist personS vho have experien~ed discrimination in hou5ing. :ll~.····r","'''''J~]li ... "~rllllli'''''''''''---'---.--" .~.,. ---." 2. fund nousing p~DgTam8 providing t~u&ntl lan~lord and housing s~rvices to persons experiencing hou~lr.g conflicts. ~ergency Housins Acquisit1cn and I~~~ Agsist sponSO:'5 of temporary or int""rim hoasing facilities serving thoe needs of lov-and moderate-income batte~ed p~rsonSJ d1stres~ed juveniles, handic8pped/d1sa~l~d p~rsons. and cch~rs serving a variety of individuals. l~ Fund agencies and organ1zationa 5eeking to acquire e~Ergency housing facilities. 2. Provide belov-market-rate financing ~r graots for rehabilitation of e~er8ency h~u5in&. 3. Pro\'ide rehabilitation services to eligihle emergimcy housing projects. 4. Provide relocation assistance to persons d!$placed froc housing. II. COKMtrNITY-\rlIDE 1"ACILIT:tES & IMPROVEKEN!S (Alloc:.at!o~ Coal: L5% of CDBG Allocation) Facilities for the HRndicapp~d/Disabled Persons Increase the accessibility of facilit:ies serving ha •• dlcapped/dis.a~led p~rsons~ in bQtb publi~ and priv&te dev~1~pment6. Additionally~ assist organizations in providing new or improved fac1!ties to serve the specific needs of the handicapp~d/oisabl~d population in the co~unity. 1. Prov1de funds to re~ove a~chitectuyal barriers !=om buildings and majo"t intersections throus:hout thE: city. 2.. Provide funds to .aid in the const1"uction or a.cqw.isitioD of facilities serving hSDdicapped/disabled persons. ). Provide below-marl:.et-r.ate financicg or grants: to imp .. ':l\re existing facilities serving handicapped/disable~ persons. 4. P=ovide rehabilitation Se~·ices to eligible facilities 5erving hacdic&pped/d1sabled persons. Child Care Facilities Assist non-profit and community-based organi28tioDS in providing adequate child ~ar~ facilities serving lower-1~co~~ families. 1. Provide funds for the ~onst~uct1on Ot .acquisitio~ of child cace !ac!licies serving lov-and m~derate-income persons. 2. Provide below-market-rate finanCing or grants to improve existing child care facilities. 3. :Provide rehabilitation service> to eligible: d,Hd cal!! facilities. 111. Ad~inistrat1on (Allocation Gosl: 5: ~f CD5G Allo<ati~n) Provida necessary funds co pay for planning and impleQer.taticn of the CDBG program, anrl to pay for nec~ssa.y overhead costs. SECtION TWO ~roposal Selection Criteria Proposals for CDBG funding are evaluated accarding to tn~ falloving set of cr1hr1a. Each of the first five items are not lOeighted o. prioritized, although Item 1 must first be satisfied befor;-further prvposal review. The last c..riterlotl is an oVE.!'al1 -evaluation t'D dete-nline if the recommend€d program satisfies the establ!shed funding goals. 1. Prop-oul Elisibility The propo~al must be eligible according to Federal regulations established for the CDliC program {Staff and Dep,Htment of Housing an:! Ueban DevelQpm.eut dec1sion)~ 2. Need Verification There should b~ reliabl.e data t:.",,-v'Hifies the I1ee~ for che proj ect or activity proposed. 3. Feasibility The applicant must have the ca:pability t.7J implement the p::oject Dr activity in a timely manner ~!:Ee avail~l~ r_esources. 4. Cost/Benefit Analysis There should be e\'idence n.at the impact upon ider:t:ified !1€ed of the project or activity ju~tifie5 the potenti~l cost incurred. 5. Long-Range Funding Implications There sbould be !nfortllatiotl available which indiciltes the long-range ~plication5 of funding 8 De~ ac~iv1ty or increasi~g the level of funding for aQ existing activity. 6. Overall Program Evaluation The recommended CDEG Program should meet the established needs and funding goal~ included in the Needs. Strat~es. and Goals section of this plan. • • - COMMUNITY DEV!:LGPMEN'T BLOCK GAANT PROGRr..M CITIZEN PARTICIPATION PIAN It: troduc.ti.:>n A primary aspect of the Housing and community Develop~ent ~ct, as required by 24 Ci"R Part 510. Sub-part 0, Secti~n 570~303~ is the provision of adequate opportunity .for citizens, particularly those who will be affected by the program, to participate in an advisory role in planning, implementinq, and assessing the program~ On August 23, 1979, the city Council adopted a citizen participation component consisting of a permanent City-vide committee which will be advisory to the staff in fulfilling the citizen participation requirements. citizen involvement will apply to present as well as future activities~ ~ll aspects of the Citi~en Participation Plan will be open to ~~e general public. The Citizens' ~dvisory Committee ~il1 review the Citizen Participation Plan with input from the general public. The plan will be updated as needed4 Objectives of the P~ __ lln 1. To involve citizens in the planning, ir.:plementinq and assessing of the program by encouraging the submission of views and proposals~ :2. To include 10 ..... and moderate incolIie persons, members of minority groups, residents of areas 'Where funds 'iii11 be spent., the elderly I the handicapped I the b'..:.siness co:m:rr.uni ty and civic qroups in the citizen participation plan. 3. To make information about the community Development Block Grant programs available. 4. To make social and demographic data, cost estimates and local ordinance information available to n~ighborhcod groups and organizations so that they may participate in the program process~ components or the Plan 1. The Housing and Community DeY~lopment citizens' Adviso~y committee a) Membership: The Housing and community Develop~ent Citizens' Advisory Committee is advisory to staff. Each member's tenure on the Committee is for two year~. Members :may serve more than one term. The co:m.mittee tJas fifteen members, including ltine mer:thers from agencies. who represent persons of law and JI'loderate income, members of minority g~QUPS, the elderly. handicapped and business community. Eight of the nine agency members ~ill be - 1 - - appointed by the Mal-or from nominations made by any community non-profit cr-ganiz:ations oriented tOWi.src. the goals of the community Development Block Gr:emt Plan~ The ninth agency member will be a representative of the H~an Rel~tlons commission. Six members from the general public will be appointed by the nine agency members. bJ ~ctiCDS: The Co~ittee will assist in the identification of community oevelopment and housing needs and the setting of priorities. They will be involved in developing the three year Community Developnlent Plan., the annual Community Development Plan, and the Housing Assistance Plan, and programming of funds and amendments to t,he Plah. To this end, the Committee 'Will solicit and evaluate proposals to be submitted to the Human services Division of the Social and Community SErvices Oepartment~ The committee ""ill have an advisory x·ole in the implementation of the progra~ by acting as a conduit to further define citizen needs and recomme~ding project criteria~ They will also have an advisory role in policy decisions regarding program implementati.on ~ The committee will assess projects and activities to determine if the objectives ('Jf the CO~l.lnity Develo~w€Tlt Plan are being met. In addition, committee members will be informed of implementation strategies and the progress of planned activities. cJ process: The committee will hold pe~i~ic meetings to carry cut the above functions~ These meetings will be held in January, February, and March, generally in city Hall. Information on the Co'tlti"tlunity Development Bloc:k Gra~t Program will be available at the meetings. The general public, neighborhood qroups and private agencies will be encouragec to submit their views, co~ents, and project propos~ls to the Com.'llittee, ~:rhe meetings ... -ill be open to the public. All applicants submitting their proposals will be encol.lrag~d to attend the meeting at which their proposal is to be reviewed by the committee. During the application development stage of the program, special notices of the :tl.eetings will be made in the TJmes Tribune and other appropriate local publications. ----- All recomll!endations, cOInl'llents, a~sessments and proposals from the Conmittee viII be recorded and forwarded to the city Council ~or their review. The committee ~ill aid in the dissemination of information abo~t the Block Grant progra~ and will aid in soliciting comments and views f~om the general public. 2. City Council aJ The City Council liets policy, priorities, and approves the overall C~Qmunity Development Elock Grant Program. 2 - '. s 44n£i ,-~' ..'''-'-> ,'~" - b) The City Cotmcil ... i11 hold two public hearings prior to the submission of the application to HUD. After the co::nmitte2: and Cit}" staff have reviewed proposals and made their recommendations to the City council# two public hearings will be held, one before the Finance and Public Works committee and the second before the full city Council. The public hearings will be held to obtain views from citizens on. the performance of the prog~am and to obtain vie",'s on the proposed program for the coming year. c) The city council ... ill also hold one public hearing thjrty to sixty days prior to the start of planning for the next year's program in order to revie .... · the progr'am's performance and progress. d) Actions of the City council will direct the implementation of Commurlity Development BloCK Grant projects. J. General PUblic a} T"hs general public may participate in the various stages of the program by attending the citizens' Advisory Committ~e meetings and the City Council public hearings. They ~ay also express their views and comments directly to the Human services staff. At any time, citizens may submit views concerning Palo Alto's performance in the progr~m to the Housing and Urban Development [HUD) Area Office, 450 Golden Gate Avenue, Box 3600J, Ninth Floor, San Francisco, ~. 94102~ Citizens can avail themselves of the Community Development information in the H~man Services Department, city Hall, 250 Hamilton Avenue, "A~ Level, Palo Alto, CA 94301. 4. City Sta~~ Report a) The Human S~rvices Division of the Department of Social and COlM"l.unity Service.~ hos pl:imary responsibility for the administration and coordination of the community Development Block Grant program. b) At the beginning of the planning process for the program, the Human Services staff will provide the Citizens' Advisory Committee and the gene~al public with the following information: the total amount of block grant funds available, the range of activities that ~ay be undertaken, the previously funded activities, the process that will be follo~ed in drawing up and app~oving the local applicatio~, the schedule of meetings and hearings, the role of the citizens in the program, and a summary of other program requirements. The Th~ee-Year and Annual Cor.~unity Development Elock Grant Program will also be publi~ized and distributed. Proposed activities -.ill be d~scribed in sufficient -3 - - detail, including location, to allo~ citizens to determine the degree to 'Wr.ich tt.ey may be affected~ Citizens will also be provided infcrmation on the proposed amount of funds to be used for actiyities benefitinq low and moderate income persons, and a plan fer minimizing displacement of persons aMd assisting those displaced. c, The Human Services staff ~ill maintain the citizen Participation Plan, the proposed and approved application and the Annual Performance Report iil addition to the program records, documents and other information {as rec:uire-d by federal requlations) within the Human Services Department for public view during normal working hours (S a~m~ to 5 p~m. on weekdays). These documents include contracting proced'.lres, environmental policies, fair housing and other equal opportunity requirem~nts, and relocation provisions. d) Technical assistance will also be provided by the staff to citize~ groups, qroups of low and moderate income and neighborhood groups requesting such assistance so that they may adequately participate in the planning, implementing and assessing of the program. Program information viII be p40vided in all assisted housing developments, neighborhood service centers and other public facilities where residents can learn of such programs. e) The staff "Will solicit participation from qroups · .. ho are concerned with the program and may provide information in a bilingual fashion whenever a significant number of residents do not speak English as their primary language. fJ Periodically, reports ~ill be presented to the Citizens' Advisory committee as to the progress of each project and activity to access if objectives are being achieved~ Citizens ~ill be ~ncouraged to submit vie~s and co~~ents concsrning the program. All vieW's and proposals · ... ill be forwarded to the Citizens' Advisory Committee. Minutes of their meetings will be sent to all ~pplicants in addition to a separate response a~dressin9 specific proposals submitted by applicants. 9) The staff will receive all complaints concerning the program, make a written response to all correspondents ~ithin fifteen working days, and relay complaints and responses to the Committee at the next meeting. h) The staff will schedUle all required public hearings and arrange for the Citizens' Advisory Committee meetings. Notice of the time, place and agenda of the public hearings will be made ten days prior to the t.earing and will :be in the non-legal section of the Times Tribu}le. In addition, a schedu.le of meetings of the Citizens'~~ Advisory Committee will be published in the non-legal -4 - L • CDBGCAC 1/89 sect.ion of the Times Tribune at least te.n (10) days prior to the first meeting. Records of all public hearings are kept in the 8uman services Department, City Hall, 25Q Hamilton Avenue, ·A~ Lev~l, Palo Alto, CA ~41014 -5 - \