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HomeMy WebLinkAbout0541.092• "\-. . , .-:"> 11 December la, ~992 HONORABLE CITY COLfNCIL Palo Alto, california Compre.hensive HOU~9 Affgrdability St:r::.~_tegy (eBbS) Members of the council: REPORT IN BRIEF This report forwards to the City Council, for review and adoption, the -Annual CHAS Plan" for fiscal year 1993 a~d the -Annual Performance Report~. The -Annual CRAg Plan~ is required by the federal Department of Housing and Urban Development (HUD) for the City to receive federal housing and c01I1munity developr.:ent funds. The Plan m~st be submitted to HUD by December 31, 1992. BACKGROUND The City of Palo Alto has completed a draft "Annual eRAS Plan~ for the period 'Of October 1, 1992 through September 30, 1993. The -Annual CHAS Plan-is an update to the "Five Year CHAS~r which was adopted by the City Council on october 21, 1991. The. ·&~nual Plan" establishes goals for the provision of housing assistance to lo~ and very low income pe~sons, including the homeless. The "Annual Flann also describes a one-year strategy for the use of housing resources including federal, state, lecal and private resources for the production, rehabilitation and preservation of low income housing. The -Annual Performance Report" describes low income housing activities during the past year (October 1, 1991 through September 30, 1992), funds made available for housing, and the number of lo~ income houosholds which were newly aS6isted~ Preparation and adoption of the ~CHAS Annual Plan and Performance Report~ is required by the faderal government in order for the City (and n~nprofits sponsoring housing within the City) to apply CMR:5041:92 ",.- o tor federal housing assistance funds, including community Development Block Grant (CDBG) and HOME funds. Next year, the city will be required to prepare an entirely new ~Five Year C~\S· utilizing 1990 cenSU9 information and input from L~e co~unity and from housing and service providers. T~e 1994- 1999 CRAS will be completed by the end of 1993. Review and comments The draft "Annual CHAS Plan and P~rformance Report" was available fer public review for a JO day period beginning November 9, 1992 and ending December 8, 1992. Copie~ were provided to the Human Relations Commission, the COBG Citizen Advisory Committee, the Palo Alto Housi~g corporation, to other locally active no~profit housing providers and to other interested parties. The Planning commissior. reviewed ai1d discuss~d the CHAS at their November 18, 1992 meetinq. The Planning Commission suggested that one sentence be clarified. This change has been made and is included on page 5, paragraph 1 in italics. Minutes from the Planning commission are attached. Attachment 1 includes all written public comments which were received hy December 8~ 1992. B.J.:;COMJr1ENDATION staff recommends that cou:"Icil review and adopt the "Annual CHAS Plan and Performance Report" and authorize submittal of the adopted documents to HUD. Respectfully submi t.ted. (Jfh4~£esd CATHERINE SIEGEL r KENNETH R. SCHREIBER Director of Planning and Communitr Er.vironment public Comments ReceiVed and Proposed Text Changes 2. Draft Annual eHAS Plan and Annual Performance Report 3. Minutes of November 18, 1992 Planning Commission CHR:541:92 12/10/92 p~...... Page 2 .-..... --..-_---_ ... ,---............... -- ' . .:..- CC: Planning Commission Human Relations commissior. citizens Advisory Committee League of Women Vot~rs " ."-. Palo Alto Housing corporation, ~40 Covper Street, Suite G, Palo Alto, CA 94301 Hid-Peninsula Housing Coalition, 430 Sherman Avenue, Suite 203, Palo Alto, CA 94306 CMR:S41: 92 12/10/92 Page 3 Attaehaent ~~ Public ccmm2nts Rec.ive~ ah~ Propose~ Text changes (Note; comments are paraphrased for brevity) ColtUIlents by th'" palo Alto tlo\Jsi.n.g ____ Corp9rat:~on L Comment: since some of modest means. The BMR pt'ograrn should be mentioned in the eRAS the BKR units are purchased by people cf very Response: The BMR program ~as not discussed since it is dn entirely local progra~ and the CHAS focus is on housing programs that are at least partially funded fro~ federal funds. However, local programs may ba mentioned and since the BHR program is a very important part of the City's housing efforts. the eRAS will be a more complete and comprehensive document by a adding a section on the BMR program~ The last paragraph on page 2 of the CRAS Plan, which referei'lCeS the-BMR program will be ex-panded. 2. Comment: There is no strategy to provide new rental r.ousing units 'Within the [Plan] year 'other than the Barker ne"r units), thouqh this is stated as a priority~ Response: It 'Would not be feasible to create new housing units within a ~ne year time frame as new construction projects require several years of site search, planning, securing financing and GEvelopment. Over the next year, existing City r9sourCES (of both staff time and subsidy funds) will be largely devoted in keeping currently active projects on schedule~ These p~ojects are discussed in the C~'S {Barker Hotel~ Tamarack Court, Lytton IV and a nev SRO) ~ Of these. only the Tamarack court, and possibly the Barker, can e~<pect to have construction completed and units oc~upied by the end of the eRAS fiscal year, i. e. September, 1993. I~ addition to current etfort~, the City ~ill seek to identify potential development sites both through the l'evision of the Comprehensive Plan and through !Jorking ITLOre closely with private property owners and developers. 3. comment: Reference made on page 2 to the remaining balance of the commercial reserve is no longer accurate~ given approval or the Lytton IV funding. Response: Tlle correction will be made. 4. Comment: Reference made on page 5 to air rights on City owned parking lots is no longer accurate. Response; This change has already been mace in response to comments from the Planning Commissi~n. 1 ATTACHMENT 1 ·11· .. ? o Attachment 1 s~ COll1!llent: It is not clear \rIhat ttle source of the data is for Table 3B -Goals for Households ~ Pe~sons to be Assisted ~ith Housing. Response: An explanation ~il1 he added to Table 3B~ This table shows 2..ll.l.¥. households 'Who • .'ill move in to assisted hcusirJg during the 12 months of the Plan year or ~il1 have their units r-ehabilitated duri!'l9 that period. SIJrt'.e projects such as the PluCl Tree Apartments which are in process of being rented to lower income families were split into two fiscal years depending on when the units vere {or will be) rented up. This data was obt.ained from PAHe staff. Infor-eation 'Will be aJded on the BMR units sold during the year, if specific numbers can be provided by PARCo 6. Comme.nt: The City should r€::evaluate its program to subsidize three units of senior housing ~ith included services at the Palo Alto Commons project. Response: While the city intends to reevaluat~ that program together with the belov market rental program as a Whole, the purpose of the CRAS section which is referenced (see Plan, page 9) is to identify broader PQblic policy issues that have an effect on the development or preservation of afford~ble housing ~uch as zoning or planninq policies. The CHAS is not the appropriate document to analyz.e admi.nistrative and technical issues relating to particular-proqra~"s 4 COmments from Innovative Housing: 14 Comment: On page 5 of the Annual Performance Report~ add a ~ention of the Illinois Street Transitional Housing in East Palo AI"to which received COBG funding from the City of Palo Alto and ~as occupied in January~ 1992. Response: The follo~ing text ~ill be added to page 5: -2. Name: Innovative Housing Illinois st. Transitional Pr-ogram (East Palo Alto) SiZe 'Type: 4 units in single family house~ single panmt families Resources/Programs: Acquisition 'Rehab: HUD supportive Rousing Demonstration Program -$95,000, FHLB AHP - $44,280; Palo Alto COBC -$33 1 306; San Mateo county COBG -$10~OOO services & H~nage:ment: Innovative HO"\lsing 2 Attachment 1 Leveraging: l\HP bank loan Completed and Occupied: Jan. 1, 1992" 2. Comment: Add the households who occupied the Illinois Street housing to the numbers assisted in Tabl~ 1 on page 6. Response: "very low incoce. renters \o'ill be ad.ded to Table 1. 3. Comment: In the CHAS Annual Plan, page 3, se'::ond to last paragrap:"" revise the cescription of Inno;.o-ative Housing's services to read as follows: "The City also provide5 COBG funds to Innovative Housing whiCh provides sha~ed and transitional ho~sing ~ith coordinated services for 10'" income, homeless single parents and individuals and others with special needs." Response: ~he revised text will be added as requested. comments from the I&ague of Wom~n Voters: 1. Comment: The next major focus should be on the creation of permanent housing affordable to the homeless or to individuals who are movinq Ol.Jt of shlalters. That means ir;;pleme.nting the Barker Hotel and Tamarack Court. Response: The funding and completion of both the Barker and the Tamarack projects are hiqh priorities in the CHAS~ These two projects are expected to utilize most of the City's available federal housing subsidy mou~ys this fiscal year. 2. Comment: Emphasis should be placed on developing a new SR0 in downtown Palo Alto that ~ill meet a need for subsidized efficiency units for single persons and possibly very small families. Response: The new SRO project fits under the eRAS priority for creation of new rental housing. Since the eRAS ",as ",~itten, the City Council acted on November 16, 1992 to reaffirm their support for a new SRO and to instruct the Palo Alto Housing corporation to pursue possible sites. The Housing Corpora'.:.ion is under contract with the City to develop the new SRO~ It is expected that most of the project activities will occur naxt fiscal year. 3 p J o Palo Alto Housing December 4, 1992 Catherine Siegel Department of Planning and Community Erwirollmenl Cit)' of PP.lo Alte 250 Hamilton A ven t..:t;. Pale Alto, C"hfomi. 94:l0r Re: Public Comment on the Comprehensi',e Hou$ing Affordabiljty Strategy (CHAS) An ad hoc commiltee of the Palo A!to Housing Corporal ion has reviewed the Draft Annuai CtiAS P'ian fur 19C)2~93 l.."td th~ Perform.rnce Report fDr 1991-92. In gcner.J, it is pleas."ill! to note that t.'ie Hc.t.::.~ •. ~ C::.j~:-:'::o;-; i:;. dlr-,x:,iy invoh:cd ;;, many of the priority programs and projects [hat the report describes. Since the CH.o\S represents a policy statement of the City CO'Jnd. j: is useful to ha\"e very spe<.:iflc references iII the document wh{;n future p:-ojects come before the policy making bodies for review. The Housing Corporation is sorry thai il could n.)t rOlls-u!t in the formulation of the CHAS, as it did ia the "Five Year CHAS~ in 1991. The Hou5ing Corporation's data base was very usefui in the preparation of that poL'ICY document. The committee felt that the BMR progr.tm is worth mentioning in Ihe CHAS, with the attending strafegy of filling ongoing BMR unitS with pefson~ of as low an income as possible. Given the cost of ownership housir:g in this cOllllTIunity, an affordable housing program which senes the median income rdnge is actually serving people of very modest means. The cornminee noted tht! follo",'ing for spec:f;c' ":"oll1:nenl: "J i ' Though the cfC<ltinr. of r.ew rental h(1u<;.il1g l!!:l!S is st.a~ as ~ pr\';}~!~J" there is r,c existing Stidtegy to provide them wilnin the yc.c.'!'". ruer than the new units to be constructed at the Barker. The referencp. to the amount of funds :eillaining in Ihe commercial reserve of [he housing mitigation fund is no long~r aCClITate, gjven the Councd approval of the funding request for tht! Lytton lV project. Plan, p.2 The reference to coma deration of air right,S pr0jt'{:t~ ,111 city owned parkj~lg lots is no longer ac~urate. given the COlln-:il decisioll of No,,'ember 16, 1992. It was not dear 10 the comrnitt~e wll;?t the source of th.:: dal3 \'I:a> for Table 3B. Ifit is to include existin.~ propercles owned and mandgcd by the Housing Corpor;:.tion, we 540 Cowper Street, Suite G, P.lo .... 'to, C.lifornia 9430 i. (415) 321·9709 would anticipate that ten, ratllcr thaJ1 four, would be a rnore accur,He nll:r1Der for very lC\oIoi-lncome renters being scr.'cd in 92-93. Tt\~ m.J.r .. \b~r t~c fl)r B:\1R 0',1,: [1.en.bip se!Ved in very low income is prob,\bly appropriale. Tl1e Commjn~ tlelieves that the CilY should reevaluate its program to 5u~'sidize three urIits of senior noming with included ser."ice~ to aid i!"l daily living at the Palo Alto Commons proje<t. Plan, p. 9 at C.l.d. Palo Aha Housing Corporation C' lAS Committee Eller. ChrislenSerI Ror. Hall Jantt Owens ... '~<J? -.. ~ • o rOo Coiherlne Sleg</ • fax 329·22«} PROM, Dobbie Gruff DA~ Dt=nber 7, 1m JtE: Per our t:onVet"Mti'Xl this mllmlng. I. CHAS Mnll>! Perlonnanc. Report FY 92 P>.g>S l.Jnde; OI\2gOfy .~, PeIJD!lS- ~~ 'i'nmltloMJ Housing ror Homeim Families " 1. ~: tr.nonttve Housing IWnob: SfreIN TraNJt1ona..i Program. £a!-t Palo A1Io Stu &-l):pr-Stngle family .s.hll1'ed hoUIe •• units lor homeless ~jngte parent (.mlllt:5, AcqybHIpn .nd RebnhOltntJoo: MUD MelOnney SHOP (595,000); San ~L1teo C<l1Jnty CODe ($10,000); FHL~ ".fIDld,ble liOuSlni Progno'" ($U,2S01: rat, Altu CO/lG ($33.306). jeymW'lfI' H\.JD, AHP. U>(\ San Mateo Co\U1ty COlIC. Qro,pi<d, Ian 1,1992 n. Page.; Under cotogory 'LIlIltl- Add 10 \lery' low tnrorne. 'P'«-ial needs ~. hornclt!40 lam.JH~. (Do Y(IU include homr-lcR in .pedal need,!) ill. CHAS Annual PJan FY 93 Page) Vnder ca.tegory "'ActjgnS To AddreM E:~i' Sbe!tPr.!!pd TraC'!!l=lt5no,.' HO'!"nc ~ The Ctty also pmvld~ CD'PG (unda to Innovll!ive Ht>I,I;s:tng which provides ,!;hared 'I,d tr.tr'lllliUOnaI hauI!ng; ~,.ith (oordlne~ sefVic6 for low Inrome, homeless 'Ingle parents and lndividU81ls and otheN with 'pedal "eedli. p ' .. ..... '! I I , THE LEAGUE . OF WOMEN VOTERS OF PALO ALTO Kenneth R. Schreiber $ Director OepartmeTl_t of Planning and Community El'.VironlOe~t City of Palo Alto 250 Hamiltcn Avenue Palo Alto, CA 94301 December 7, 1992 RE: CRAS Annual Plan October 1,1992 to September 30, 1993 Chas Annual Performance Report 1991 -199) Dear Mr. Schreiber: The Leaque of Women Voters of Palo Alto appreciates the opportunity to review and address on an annual basis Palo Alto's affordable hCllsinq needs. After reviewing the eliAs carefully, we would like to make a few comments: We believe that the next major focus should be the creation of permanent housinq affordable to the homeless or to individuals who are moving out of homeless shelters. That means implementing the Barker Hotel and Tamarack court, p~ojects which are currently seekinq funding. The League also believes that emphasis should be placed on developing a new SRO in downtown Palo Alto that will ~eet a need for SUbsidized efficiency units for single persons and possibly very small families. There is a demonstrated need for such an SROi there are nonprofit organizations devalopinq proposals for one; and federal ~oney is now available~ Although the League believes it is important to focus on these projects now, we recognize that all priorities in the eHAS are important~ If new funding becomes available or unexpected opportunitias arise, the city should certainly consider those options as wella The city recognizes it needs affordable housing. The city and several non-prot it orqanizations have exp~nded considerable efforts to produce new units and to acquire a~d rehabilitate existing units, only to be frustrated by a lack of funding. The League is very disappointed that applications for federal and state money to develop several projects were not approved. In order to meet their fair share needs and satisfy federal and state expectations, cities must have ade~~ate funding fro~ all levels of government. }t~~~~~ Marilyn Bryant, President -,---_ ... ,.....,.,. ... -........ --- ~ .. • < \ COMPREHENSIVE HOUSING AFfORDABle!T! STRATEGY (C~AS) ANNUAL PERFORMANCE REPCRT FY 92 (October I, 1991 through SeDte.ber 30, 1992) CITY OF PALO ALTO CALIFORNIA Prepared By; Departmer1t of Planning and CO:m1unity Envir-onment Ken Scnrtibei, Director Submitted To HUO December 31, 1991 For information, contact: Catherine Siege1 (415) 329-2106 ATTAC~MENT 2 o TABLE Of CONT[NTS 1. Cover Sheet Z. Part J: Annua' P.rform.nce (10-1-91 through 9·30-92) A. Resources Mad~ ~vai1able Withln the Juri~diction C!.. Resources Rec-eilJed By the Ctty of Plla Alta b. Resources Received By Ncnprofits and Others B. lnvestment of Ava~1ab1e Resources C. HOllsel'101ds and Persons Assisted (Table 1) O. Other Actions UndertaKen L Public POI ides 2. Institutional Structure J. Inter9o'o/!;"rnmenta.l Covper,a,ti an 4. PlJblic HO'JsinS Improvements !net app1ic-abl.e.) 5. Pub1ic Housing Resident lnitiati~es (not app11cable) 6. Affirmatively Furthering Fair Housing 3. Part 1[: Assessment of Annual Performance 4. Appendix A. Description of Public Re~iew Process B.. Summary of PubHc.. C{)lliT1t:!rlts and Responses ftc be comp1,t.d) • 4 6 8 9 10 >, PART I ANNUAL PERFOR~ANCE A. RESOURCES (fUNDS) ~E AVAIlABLE WITHIN THE CITY OF PALO ALTO FOR AFFOADABLE , SUPPORTIVE HOUSING (FY 92 )0·)-9) to 9·30-92) ~SQURCES (fUNDS) AVAILABLE TO THE CITY OF ~AlTO, 1. FEDERAL FUNDS i. Total COSG Entitlement Grant, Program Income an~ Carryover Funds Av.ilable During (FY 9)·92): $2,272,876 _ow CDBG Funds Avail.ble to the City: S845,484 (excludes the carryo~er of unob'igit~d funds) b. latal HUD Rental Rehab Carryover Funds Availa~le During (FY 91-92): $105,000 2. llill.~ No State of California funds ~e~e provided to tne tity of Palo Alto l . LOCAL FUNDS i. Housing In-lieu Funds: ~ommercial Fund: During F¥ 92. the City collecte~ a tota? of S~ in payments from cOlTIM!rcial and industrial {jevelopments. as a mitigation of their impatts on housing t.lnder provisions of He City's HQIJs.ing Element. As of September 30~ 1992, there was approximately S3.300 000 in this fund available for the construction of new or additional housing units. R~sideiltial Fund: Fees are collected from residential development who cannot provide below mark.et units under the City's program. The Residentiar In-L1eu Fund can provide funding for new construction, acquisition or rehabilitation of low and moderate intome hOUSing. Ho~ever. during F~ 92, no funds were available from this SQurce. b. RedeyelQ~etlt Funds: None. the City does not ~,al/e a redevelopment agency. 4. PRIVATE FU~OS No priv.lte funds ( i.€:. funds voluntarily contributed from private founda.t1ons or individuals) were made available to the City of Palo Alto for affordable hous~n9. b. RESOURCES (FUNDS! AVAILABLE TO NONpgoFITS AND OTH[RS: I. FEDERAL FUNDS a. Secticn 202 Elcfer1y: Community Housfl'1g. Inc. a nonprofIt developer of senior housin~. was awarded a Section 202 Fund Reser~ation on March 26, 1992 for S1 units of elderly housing for their Lytton IV development at 330 .. C"' • . ",- o E'oIerett Ave. Pale Alto. The initial amour:t of the fund reser ... Uon was for $3,178.200 i~ capital advances (for construct!on costs) and for a maximum annual rental assisttnce co~tract of S190.100 or $3,802,000 in total budget authority. C. Section 8 ~oderate Rehab: Pilo Alto Housing Corporation (PAHC), a nonprofit ho~sing developer, applied for this assistance on December 31, 1991 and was awarded on August 18, 1992. a ~cmmitment of Section 8 rental assistance fOl" 20 units at the 33 unit Oak, Manor lownhome apartmer,ts that t"-ey own and operate. Re"tal assistance "ill b!!' provided to the existing lo,;er ir.comG tenants. The agreemer.t with the County Housing Authority is to be executed on October 22nd and the rental assistance should commence after completion of the rehabilitation work (seismic retrofit and major deck repair) in about six Il'\()nths. t. Section 8 Slngle Room Occupancy (SRO) Mod. Reha •. (Homeless): Mid-Peninsula Housing Corporition (MPHC) a nonprofit housing deve1oper~ was awarded, on September 3~ 1992, a commitment of Section 8 Rental A';si'Sotance for 10 years for 21 units it their pror;osed Tamarack Court apartments. Pa10 Alto Hous~ng Corp"rati{ln (PAHC} has a CPrm1itment from the State's California liousing Finance AgencY (CHFA) for lorlg term financing of their Oak Manor Townhomes mentioned above. Tne loan commitment was received In a prior fiscal year and is val id untn March, 1~93. It will prQ',Iide perm3nent, ftrst mortgage financing in the amount of S2.400,OO~ at 8.14S~ for 30 years. CHFA has. also isslled a r.:olTlTlitm~nt for secondary f;nancing of up to 5200,000 at 3% for 10 years if necessary. His financing will close when tMe rehabilitation work is compl!ted. Several applications fer state housing assistance were submltted by nonprofit deve10pers durlng the fiscal year, but tMey were all rejp.cted. PAHC applled to State Housing & Community DevelopmEnt (HCD) on March 15. 1992 for 5330,000 in CHRP-R funds for the rehabilitation o~ the 22 unit Barker Hotel. Their application was not fu~ded since the State favDred rural projects. MPHC also applied to State HCD in 19S2 for CHRP~R funds for the aCQuisition and rehabilititicn of their Tamarack Court project di$cussed abcve. MPHC's application was also turned do~n by the State due to the State's priorities for rural pro,lfcts. 3. LOCAL FUNDS See discussion of Hausir,g In·lieu funds above. 4. PRIVATE FUNDS Most of the active non-profit developers in Palo Alto have made available funds from their own resources for interim construction financing. deposits on property and pre-deveTopment costs of future housing projects. 2 --.-..----- '" \ ."",, i MPHC ~as received co~njtments of p~ivate funds fer their proposerl Tamarack Court Apartments. They have i SIOe.ODC Cowell Found~tion Grant for project development and antiripate award of bank financing under the FHlB's Affordable Housing Program {AHP) i!'l the a.mount cf $41\5,000. P~~C has rece~"ed a. letter of ir'ltent to pl"ol/ide 10ng tem, first mortgage finanCing for the acquisition and rehab of the Barker Hotel frcm First ~ationWlde Bank under the I'.HP p:"ogram. The owner of the Barker Hotel, Premier Properties, has alsO' contributed 'IIario·"s consu1tif19 services to the project , c. Comparison Witb Resources Which Had P1anrL~d To Bo: Availab1e The CHAS Plan for FY 91-92 (Table 4/SA) anticipat,d that. number of other funding sources would be available to help meet the City's hOUSing goals. The sources of funds which were not avai1~b'E are: L HOME funds: lhe state has just issued the NOF"-for F'i 92 funds on October 7, 1992. WhEn the CKAS ~as prepared, the Stdte thought they would issue ,t in the ear1y summer. 2. Mortgage Cre_dit CeTtificat€:s: MCCs were avaihble tI"lrQugh the County's program for the purchase of qualifjed residences in the Ctty. however, due to local home prices, buyers utilizing MCCs ha~e incomes above HUO's low income limit. 3~ HOPE! Elder' y Independeo.t;nE:";' No suitabl e projects have been suggested for tnis funding SOurce. 4. HUO Rental Rehab: Funding i.s still a'iailabl€: from tile City's carryovers and about $70,000 will be committ~d to the PAH('s Plum Tree Apartments by the end of calendar 1992. 5. Shelter Plus C .. ~re: Ttle PAi-iC made an appl1cation to the Cmmty Housing Authority for 22 units of assistance under the new Sn€lter Plus Care program for the Barker Hote1 SRO in spring of 19~2. lhat applit~tion ~as not funded by MUD. 6. Transitional nousj~ No applications were made as no suitable projects werf developed. 7. IIHTC (Tax Credtli.l;. No application was made since the project (a new construction of an SRO downtown was not far enough along in the planning prDee,s to apply). 8. llHPHHA {Presen-ation of histing Sllbsid-tzed_"-mnAt-Ris'K liou.D..n.gl..;. There was no need to apply for thls SOIJrce since the at~risk projects are not pro~osed for ccover~ion to market rate at this point in time. 9. SAFAH: No appiication was made since there ltrIere no suitable projects during the year. 10. famih Self SufficienC\i: The Santa Clara County recei .... ed an award of iQ{l units of assistance under F5S. This 'IIill be available on a countywide basis and it is not posslble to state how many assisted terJants win cl'1oose to locate in Palo Alto. At this date, no families have been assisted. 11. lli!&...Benta.l H.9.!Js.i.f\~truction Program (RHC~.t:_ No projects wert able to apply for these funds. 12. Ca1ifornia Housina R.~.M_Q..iJ.itatiQn Program (CHRp·R): Two app1ic~tions were made for these funds as mentioned above, however neither one was fun.ded. 13. State Tax Credits: See number 1. above. 14. CHFA -Tax Exempt Bond>' As discussed abo .... e. a loan commitment was 3 received under this program during the prior fiscal year and will close during Fj 92-93. 9 Resources. and Proqra'l'l hmds Used; Acti"lli~_s Undertaker.: lever.,gi.ng The City of Pa10 Alto~ by itself and in conjunction with nonprofit housing developtrs, undertook the following activities to meet its' priorities for housing assistance as shted in the f..Jye Year (HAS (Table 3, p.33}. Due ttl ltmitations on availability Qf sites, funding and staff capacity. the City focused its' efforts and resources on the three highest priorities in th~ CH.II,S. The three highest priorities are: o low and very low income renters o Permanent ~ousing for the homeless a Permanent housing for persons witn special needs priDrity: low and Very Low Inc.cffil'i.!'nRenters Actlvity: Acquisltion and Reh3billtation of Existing ~esidential Units 1. Nam2: Plum Tree Apartments (3020 Emerson St., PalO A.lto) Si ze & Type: 10 vnits, family Resources/Programs: Acquisition -$970,255 (COBG, expended) 10,000 (prt •• t.) Rehab_ -$70,000 (HUD Rent.l R.hab, <o","itted) S70,OOO (privat., ,o""'itt,d) leveraging: COBG funds were used for almost IO~% of the purchase price so that the project rents could serve very low income tenants. The sponsor, PAHC~ is matching the rental rehab funds. ActTvity: Rehabilit~tion of Existing. Low Income Rental Units 1. Name: Stevenson House Apartments (455 E. Charleston Rd., Pilo Alto) Size & Type: 135 unit, alder1y Resources/Programs: CDBG -515,796 (~xpended) leveraging: None 2. Name: Miller R-entals Size & Typ!E: 6 units Resources/?rograms: HUO Rental Renab -$35,000 (expended) leveragin9: S65,000 (p~ivate, expended) 3. Name: Oak Manor Townhomes (630 los Robles, Palo Alto) Size & Type: 33 units (U units to receiile Sec. 8). fami1y. Resources/Programs: Section e Moderate Rehab. Rent Subsidy, (Funds ccmmi t ted) CHFA long t~rm fInancing: $2,400,000. (committed) leveraging: Jnterim private con$truction Joan -$ 250.0~O To Be Compl,ted In FY 92-93 .. -(c o P..r.i.Qr1.t.t-.:_ HQm~less Persons Activjh: Permanent r-lou,I.;ng For the Homeless 1. Hame: Tamarack Cou~t Apartments {4269 El Camino Re~1. Palo ATto) Size & Type: 22 units, fami1y, single persons Resources/Programs: Acquisition: HOME & Pri .... ate bank loa., -U M (applying for) Rehab: Private bank loan 5. pri~'ate fou"ldation: @ S500,nOO (colllllitted) Rent Subsidy: For 21 units: Section S, Mod. Rehab. SRO, Homeless (committed) Leveraging: BanK and foundation funds Support Services; To Be Provided by Urba., Ministry (corrmitted) To B. Completed in FY 92-93 Activity; Support Service~ 1. Case Management For The Homeless Urban Ministry R.sources/Pr09rams; COBG -S30,OOO (expended) Priority: PersoM_ ""itt; S?:gcial Needs ~.ctivity: Pernanent Housing For Persons With Special Needs J. Name: MO'ing On Group Home (PCC) (3836 La Se1.., Palo Alto) Size 'Type: 5 bed. gro':.Jp home, developmentally di sabTed teens Res~urces/Programs: Acquisition; CDBG -$20,000 (expended) Rehab: CnBC -113,350 (expended) Leveraging: State low interest loan for balance of (OSt3 Activity: Support Sendces For REsidents of SLlpporUve Hausir;g 1. Ombudsman Advocacy Program (for frail elderly in long term care) Catholic Cnarities COBG -S9,689 (expended) 2. Shared, Transitional Housing Placement/Counsel ing Innovative Housing (DSG -$24,000 (expended) 3. Shared Housing Place~e~t/Counseling (for seniors) Senior Coordinating Councii COBG -$10,000 (expended) Other CHAS Priorities Which Were Addressed: Prioritv: Assist~nce To Existing. Low Incom_~ ___ Hom~Q..\!!!l..lli Actjyity: Rehabilitation Of Owne.-Oc(uiJied, Single Family H{lmes 3 rehab jobs were completed Resources/Programs: CDBG: $32,591 (expended) 5 o· o CHAS AnnY~l Performance Report Tabl. [ ~cuseholds (H) l Persons (P) Assist •• Witn Housing FY 91-92 (10-1-11 to 9-30-92) Rentm Homeowngrs ~_~ci...~..1 ~e.ds Very tow J "COIle 32 6 t<!O% MAl low Income 2 3 151..s0" MAl TOTAl. 34 (HJ 3 (HJ 6 (P) NOt~5: Tot., 36 5 43 1. Counts only persons newlY cccuPY1n9 hous1ng, recet~ing rental subsidies for the first time, or livln9 in a ne~ly r~habll,tcted or constr\.icted housing unit regardless of wnen the financing or subsidie.s ... ere awarded. Not included are units which are vacant or in th! process of renting up. Also not included are units 'Jnder construction or units which are in the pre~development stages. Units r~tei~ing multiple subsidies are only count~d once. 2. ~,F. f. means median family income as adjusted by nUD. 6 o Geographic. Distribytton of rn .... e$tm.~.n! Activities. were i.md1!rtaken throughout the Cay of Palo Alto. Hou.sing activit;~s ar! undertaken where suilab1e sites are 1ccated. o l~veragjng of Hon-Federal Resources leyeri9ing i~ discussed above in relation to each parUcu1-11'" projecl or activity. o Matching Contributions There .. ere no specific matching requirements for Federal programs utihz1ng by the City during the reporting period. In future periods, the City will provide the requl!"ed match -with its' h01JSl1l9 in-lieu (m~tigatio:'1) f1.mds. o Pattern of actual in"Y~stmentS..Qmpared to piarmed in\H~s.t.rn_.ent ___ .]:att~l·n The patt~rn of in'iestment 1S not substantially di fferent than ... ha.t was anticipated in the FY 91-92 CHAS Plan. However. many funding resources which w~re ant;clpated ~ave not been ava11able, there ~a .... e not been s~it~b'~ projects to uti,ize the funding sources or applications have been rejected due to tremendous c~rpetition from other communities. C. HllUSDlQLDS Af«) PEltSQ!!S ASS 1 STEO See .tt.ohed Tabl. I. D. OTHER Ar:TIOHS UNDERTAKEN J. Publ it Pol i cies. The City of Palo Alto has strong public policies in place to encourage the development Q.f new ho.using an\! the preservatio!'1 of '!xist1ng housing especially housing for lower income per.s.ons. Palo Alto's HQ.US1NG EI EMENT was approved by the StatE Department of Housing and C.ommunity DelJelopme!it on October 21. 199i and is in full compliance with State law. In response to the priority to provide more housing for wery low ir;come persons, the City investigated revising the Building Code to encoura9~ the construction of new 5"0 type developments. It was determlned that the 15-91 Uniform Building CDde, as adopted by the City Tast year, contained sufficient prov,s1ons to facil~tate fut~fe SRQ projects. 2. Institutiqnal Structure Ouring the list year the City reorganized the staffirg and administration of its' (nBG il'ld hous.ing programs. The COSG c\lordinator was moved from the Human Services Department to the Department of Planning and Community Environment. That department no.., includes planning, building, housing and community 7 r 1, •. _1e .' o development. All staff are now in OM locatiorl to further enCOt.irilge clo~e coordination. A. new senior planner po~ition was cr-eated and funded ",,'ith COEG funds for the purpose of pro~iding in-house technical experti~e or. ~ousing iSSUES and to coordinate the implementatlon of the City's housing program including administration of HOME funds if they are rece~ied. That pOSition WH fil1ed as of :'ctober 5, 1992. The housiJ1g and commun,t,. development p~'o9ram is now fully staffed with the Housing Coordina.tor. the COBG Coordinator, a put-time ror,struct',on spech1i!.t and a part-time secr~ti.t.J undtlr the Managli:r of Planning Projects. The-se o:"ganizationa; (nanges win give the City th~ staff and institut;cn~l structure t~ pursue its' housing goals more effectively. 3. IntergovernMe_ntal_ Cooperatjon The City of P~l~ A1to ~as ~orked closely with nei9~boring cities and the County to provide funding for facilities and services located out5i~e of the City which serve city residents and ~hich meet needs in Qoth Santa Clara ana San Maten Counties. 4. Public HotJ(;ing Improvements Hot applicabJe, tn:!! City does not ta .... e iii. pubiic housing agency, ~either-tio~s it have any public housing develG~mcnts. S. PubliC Housing Resid~n.L.Jnitjativ~s See Nc. ~. 6~ Aff5rmat)~elv Fu~th~r Fair Hou~ing T~e City contracts with Mi<i-PeninslJh Citiz.efls fo,(, Fe-ir Housing (MCFH) to promote equal opportunity in housing for all peop1e. Services include infa~atian and referral. comrnunit~ outreach and education, d,scriminition complaint checking and investigation, legal referrals and assistance in resolving complaiPJts. The City also contracts separately for tenant/landlord informatfcm, referral and mediation services. The discr-iminatiof1 complaints and cases. hanaled by MHK during th!? period ]·1· ~l through 5-30-92 are summarized as follows: 23 complainants counseled; 16 Cdses operled: 4 race 4 sex/marital status S children 1 di sab 11 ity 2 arbitrary Disposition of Cases: 6 S 3 I 1 8 COrlcil iated counseled and assistfd unab1e to test referred to HUD ?end~J'J9 .. i. , < .. PART II ASSESSMENT OF ANNUAL PERFO~CE Although 'performam:.~, in meeting the objectiIJes stated in thi! H 9!-92 Annual Plan~ was net jd~al. there were many significant accomplfshments which are expected to resuH ,n greater production of lower income housing ;n th~ next two years. Oue to the complexities of the fedi!ral apd State grant application process, difficulties with site acquisition, tne time required for zoni~g chanQes and planning review and the difficulty ;11 p.uttjng together a financing p3ckage, iTIOst deveiopment projects in Palo A"rto tak:=-2 to 4 ,\le-ars or more to be completed and occupied. Major hous. i n9 efforts whi ch are uI'derw.ay at t h; s time and shou' d be camp 1 eted .ith1" the next J to 4 years ar~: 1, Lytt<ln roy Senior Housing {New, I1UD Sec. 202, 51 units} 2. Tamarack Court Apartments {Conversion, HUD Sec. S Hod Rehab, SRO) 3. Plum Tree Apartments (f.mily, ren.b, HUD Rent.l Rehab) 4. Oak Manor T~wnhomes {family, rehab, Sec. a Mod. Rehab) S. Barker Hotel \lcqulsition ar,d rehab, KOME, COBG and {ltt-e!"') 6. Downtown SRO (new ccnstruc.tion, flinding sources not known) The most important factors which affect the City's progress in meeting lowar income housing objactives are: o e.xtremely high prfce of sites sUHable for i'1e~ hCiusing or of existing reSidential properties suitabl~ for r~habi1itation o highly competitive and complex application process far the limited amount of federal anoj State nousif1g funds o problems of utilizing federal nousing programs such as Section 202 in areas with high construction and l~nd C05tS o limited amount of funds that tne City r2ceives on an entitlement basiS from the federal gCl'w'ernment. o limited ~acant land s~jtable for housing construction 9 .. APPfljDIX , .-Uescr1ption of Pytclic Be't'1elll Pro_~.tl.L . -" : . ,-: .. " <"" ->;"" o The dr~ft CHAS Annual Performance Report ~as m~iled to interest€d organizations and persons using the list of those who ~ad participatr:-d in the deyelo~nt of the 5 year CHAS Strategy. Copies of the Report were made available at publit libraries i!1d at City Hall, A r.ot;ce "informing the public of the alla1' abn i ty of the A,1nual Performance Report and of VH! date of the public hearing was published in the Palo A1to ~eekiy" The notice was a's~ m~;'ed to a larger list of persons and organizations interested in housing, planning and zoning issues. The City Council held a pub1;c hearing on DecEmber 14, 1992 to receive c~nts from the public on the City's hous~ng needs and the draft CHAS Annual Plan and Performance Report. 1. Stunmar¥ Qf Publ i c CQlTJTlents and Re"~pcns..u (to be rompleted) 10 • ,of AIIi/U~.L PLAN FISCAL YEAR 93 COfIPREHEHSIVE llOOSIHG AFFORllABILITY ST~HGY (CHAS) (October I, 1992 through September 30, 1993) CITY OF PALO ALTO CA LI FORNI A Prepared By: Depa~nt of Planning a~d Community Environment Ken Schreiber, Director Submitted To HUe, Docember 31, 1992 For Information, contact: Catherine Siegel (415J 329-2108 ATTACHMENT 2 .. -:-. · ." TABLE OF COIffEIffS I. ANNUAL PLAN A. Summary ~f (HAS Development Process S. Strztegy Implementation 1. Investment Plan (Activities and Programs) i. ~enhl Housi n9 b. OWnership Housing c. Hamel ess ~. Special Needs Hnusing 2 2 1 3 4 2. Geognphic: D.istribution 4 3. Service Del ivery and Management 4 4. Publicly OWned land 5 5. Support of Applications For Funding From Other EntitiEs 5 6. Table 3A lfivestment Plan 7. Table 38 Anr,u.1 Go.l s C. Other Actions To Be Taken I. Public Policies 2. InstHutional Structure 3. Public Housing Improvements ,not applicable) 4. Public Housing Resident Initiatives (not applicable) D. Certificaticns 1. Fair Housing Certification 6·7 8 9 9 3 Ie 2. Replacement Housing and Relocation Assistance Plan Certifjcatio~ L Sur.rnary of Citizen Comme;1ts and Responses (to be completed) II II. APPENDIX A. Glossary of T-erms 12 B. Notice of Public Review and Public Hearing on Palo Alto's Comprehensive Housi n9 .~ffordabil ity Strategy (CHAS) Annua1 Plan and Annual Performance Report for 1992 19 :j 'I , ! I :1 j I 1 i i I , o A. SUMMARY OF CHAS DEVELOPMENT PROCESS The deve~lJpment process for the preparation of Palo Alto's FY ~HAS D,..nnual .f.lJ.n was streamlined due to the delay in receiving fir,a' CHAS instructions, tl'"iining on the CHAS process, alld the required 30 day pub1ic re .. de~ period. City staff consult&d by teTephone and in meetings with locaTly active non­ profit housing d~¥elopers regarding ho~sir.9 needs, strategies, and deveTopment and funding plans including: a Palo Alto Housing Corporation o Mid-penlnsula HO~5i"g Coalition o Community Housing Dev2Tcpers o Santa Ctara County Housing Authority Community groups, concerned citizens and the media were notified of the process (see bp.low) and in .... ited to coment in .. riting or at the pub' ic hearing. The complete ~HAS Annual Plan was provlded to the City's Human R~lations (ommiss;on~ Planning Commission and CDBG Citiz~n Advisor, Committee for re'Jiew and' corment. Socia.l se:"vices agenCies, including supportive housing providers, which are located in Palo Alto or are locally active in serving persons and families with special housing needs, were also consulted by telephone or in meetings during the preparation of the CHAS. AgenCies which were cons~lted and provided information include: o li1n{lvatiye Housing (transitional and permanent housing f{lr very low income single parents) o C"""uni ty Huusing, Jnc. (e'6erly) c Hiramont~ Mental ~ealth {mentally ill) o Palo Alto Adolescent Ser~ices Corp. ,"at risk" homeless teens) o Community Association for the Retarded (tAR) During the process of the CHAS Annual ____ llirr preparation there "ere no problems encountered or major areas of conte~tion_ The fDl10wing schedule ~as established for the ~S Annua1 Plan and Annual Performance Report (APR) preparation, for the public review period and for the pub15c hearing_ A. copy of the public notic~ is attached as App€ndix B. SCHEDULE fOR CHAS A~NUAL PLAN & PERfORMANCE REPOra October S -November 5 Noyember 4 November 6 November 9 Dec~mber 8 Oecomber 14 (}ecember 18 December 21 December 31 Prepare Draft Plan and APR Ad runs in Palo Alto Weekly Mall CHAS Plan and Public Notice Start of 30 Day Public Review Period End of Public Review Period City Council holds Public Hearing Staff finishes responses to comme~ts, revises CHAS if necessary CHAS submttted to HUD last date for (HAS submittal r )t:j;.-M.' , ..... o .6..c_ STPATlGY IMPl[M[NJATIo;~ 1. Investaent Pl,n (Activities 'nd Progr,ms) ,or f! 92·93 a. PRIORITY; ~ENTAL HOUSING The City's strategy to address the CHAS priority for rental ~'Hlusi;Jg is to emphasis the follollting activities: o acquisition of 1and and buildings to create new rental units o conversion of buildings to residential u~e o acquisition and rehabilitation of e~isting housing occupied by low income households Households To Be Served: The emphasis in the CHy's rental housing efforts Witl be on the creation and preservation of rental hcusing to serve very low income renters. induding renters with incomes below 30'% of the merJian family incom€ and renters ·at-risk~ of becoming homeless. For the year of this (HAS Annual Phn, acti",ities r~ceiving funding will assist low income renters that are either small elderly housel101ds or small families or otl1ey' sma1l households and individuals, Prpgrams and Resources To Be Used: As part of its' rental ~ousing strategy. the City will be using CDBG funds for acquisition of existing prope~ties and for assis.tance with ,pre-development costs of low incof!le hOl..!sing, Over one­ half of the City!s FY 92-93 CDBG budget is allocated to rental housing acqui~!tion, rehabilitati,on and development. The City .... ill also be submitting an appUcation ta the State feJr Sl million in HOME funds. This source of funds will be used for acquisition a'1d rehabilitation of rental hOUS;ifg. local public funds which will be available for new rental housing '.mit.'i are the housing mitigation funds in the City's commercial reSEI've. These can be used for land acquisition and for constructlon costs. There is currentl] about $3.3 million avai1~ble from this sourCE. The City wi11 work with non­ profit housing de¥elopers to obtain the great~$t amount of private financing for rental developments, consistent w~th other objectives. The City will assist project sponsors lr1 obtaining financing from the Federal Home loan Bar.k's Affordable Housing Program (AHPj for exa~p1't? b. PRIORITY; O~ERSHIP HOUSING The City will continue to fund the rehabilitation of owner occupied, 5in~le famiTy housing "'here there is an urgent need Gr-health and safety problelTIs. This activity is targ~ted to very low income homeowners and gener~'ly the elder1y are assisted. Funding is from loan repayments on pr.eYiotlS rehabilttati{ln loans. It;s expected that two rwmes ..... '11 be rehabilitated this fiscal year. This figure is very low because of a very aggressive previous rehabilitation program. Needs for assistance in purchasing OJ home are addressed through the Cit_v's below market housing program which provides home ownership opportunities to moderate incGme households. J , 2 c. P~IORITY: HQUSING fOT HCKElESS INDIVIDUALS and FAKlllES The City's strategy to address the CHAS prior:ty fer the housing needs of the hom~less is t~ emphasize the creation of perm~nent ~ousing which is affordab1e to the ho~~less or to indi¥iduals who are moving o~t of shelters Gr transitionll i'ousing pro9rams. ~cu~eholds To ee Served: It {5 ~ssumed that most of these households have incomes bel~w 30% of median famlly inCGme. The projects which have been pr<ll1~sed fer this year will pro\lide housing t{.; individuals and to small families, Activities To Be Undertak~n: For this priority, the emphasis d~rin9 will be on prcjf:cts which involve the c.onv~rs~on of (ermer-cial space residential use and the preser-vati~n of existing residentia1 hotels. is also invc1ved in ;;. long range effort to look at the potential fQr res1tient1al hDte1 1n the downt~wn area. fj .2-,3 to 1h. City a nEW Programs and Resoyrces To Be U$e~ The City is currently ~arkin9 closely with the Pal~ Alto HGusing Corporation and the owners of the Barker Hotel to acquire and rehabilitate that building in order to pre~erve the existing units which serve very To" incerne, mostly homeless individuals, many of whom have special needs, fU:1cing whicn is being considered for that project includ.c!s CDEG, HOME, an AHP first mortgage, local commercial housing mitlgation funds (to construct 5 new handicapped accessible units] and prj \lite seller financiny, if needed. The. City is a.lso work.ing _ith the Mid·Pen'nsula Hous.ing Coalition to acquire and rehabilitate an eX1stirg commercial, tourist hotel {Tamal'"ac~ Court) into permanent housing for homeles.s or those at-risk of hornelessness. This project already has a commitment of Section S SRO, Moderate Rehab. (Homeless) rental assistance suhsidies. Private financ.ing has also been offered for a portion ~f the acquisition and rehabilitation costs. The City is looking at the possibility ~f utilizin9 COeG or HOME funds to assist the sponsor with He r~in1n9 costs. The City provides CD8G funding to the urba~ Ministry of Palo Alto for their counse1in9. fQod~ ciothing and sh€lter Sfrv;ces to the homeless. Tne City aho provided CDBG funds to Innovatf-ve Housing which provides information. referral and plac~ment of low income and homeless households regarding transitional housing and snar€d housing. Th~ City provides genera1 fund allocations to "nd-Peninsula Support Net~ork for emergency shelter and supp<n .. tive serwices to battered women and to £mer'~ency I-iousing Consortlum for emergency shelter for indi"idual S lnd famn ies-o The Tarnal--ad. Court proje-:t mentioned abo .. e ~i1l proliide permanent hOl.Lsing for the homeless, persons leavin9 transitiona1 housing and persons who are at serious risK of b~coming homeless. Due to the Section 8 rent subsidies, the housing units will be affordable to even the lowest irKome households. This project will help free up space in existing shelter faci1 ities. l If!-tV1:iIT? :l!lh4 11."-"'--- , I' ~ ~: Actions To Pre.ent Very low a.n(;l low Income H(1u$e"ol_o'_~ __ JrorTI ___ Bec0ming Homeless: The City p~ovides CDSG funding to Peninsula Area Information and Referral Servic.e (PA1RS) for their lilformation senolc.es concerning landlord and tenant issues. the Senior Coordinating Council fer housing placement programs and PAHC fer infClrmation and referral or: subsidized hOusing o~portunities lJI~thin tho City. Actiqns TQ ASSist ~_omeless p~Clns (lncl_~Lding __ Those ~ith Speci~Q~L"'ake The 'Tra.nsition 19 Permanent ~OlJsin9._!. Bath of the housing activities described above [5ar~er Hotel and Tamarack Court) will provide affordable housing to very Tow income ~ndjvidua.ls arid small families who nave been homeless or ire facing namelessness. Both projects will have supportive services pravided by the Urban Mir.~str1. d. p~IORln: HOUSING For PERSONS WITH SPECIAL NE~DS 10 mtet the housing needs of ~ersons ~ith special needs such as the disabled, the Iilentally ill, abused ~omel1 and c~dldrer. and other groups that need housing with supportive servlces, the City provides assistance with the acquisition costs of group homes and with rehabilitation expenses of existing residential facilities. During the year ~overed by this Plan, the City will be pr~viding COBG funds for the rehabilitation of a e~-jsti~,g gr'oup n(1me (Caravan !-I<Juse) for 6 abused Or nsg1ected tEenage girls. AdditiDnally. CDBG funds will be used to he1p construct a new Childrens' Shelter in Santa Clara County to temporarily house chiTdren rerno~ed from their hcmes by order of the courts. 2. Geographic Distribution The City of Palo Alto wilT consfder the proviSion of all types of housing ass1:;.tance on i citywide basis conSistent with existing policies of the CHy's Comprehensi~~ Plan. The City does not ha~e any target areas for certain types of housing activities. J_ Service Delivery and Kanagernent The City of Palo ATta's Co~unit)' Development Blad Grant program is managed by the Department of PTanning and COrm1unity EnVironment. If HOME f~Jnds are awarded by tM State, the HOME program wi 11 al so by m.maged by the staff currently in charge of CDBC. The City pl ans to subct)ntract wHh non --proflt housing developers to sponsor, develop, own and lTIanage HOME projects. The City does not directly own or operate any housing de~clop~ents. The existing supply of lower income housing within the c;t~( is all privately owned_ Palo Alto I"elies upon the private sector, both non-profits and fDr--profits, to deve1op, own and manag-e its' 'rwu5in9 s~pply_ The City also maintains all ongoing contract with the Palo Alto Housing Corporation to provide information to low income per:;ons seeking ho~sing and to operate the City'S Below Market Housing program fer o~ership and rental ~ousing. The City wor~s clo~e1y with the Santa Clara County Housing Authority which is responsible for the S.ection 8 rental assistance programs on a countywide basis_ 4 ' . .\ --. , C. Publ;<ly Owned l.n~ The City h"5 beE"!'l studyifi9 a surplus, City owned property knOllln as the Tower Well Site which may be suitable for some type of affcrdablt housing development. The site is ir. the northern downtown area at the corner of All!la ilnd Hawthorne. It is 8.437 square feet and Is zoned public facility. A ~equest for Conceptual Proposa,ls is currently bf!ir,s circulated to developers to get propo~als en what type of use could be made of the property that ~ould provide I public ~nefit to the City, AffordablE residential deve'op~nt is one of the U5es being co~sidered. Proposals ar~ due on December ISl 1992. I~ addition? long term ,;Qnsiden.ticn tt.-il1 be given to vac"nt ,nr:J underuti1jzed CHy owned pr()perty through the Comprehensive P1an IJpd~te process. 5. Support of Applications For Fun"lng From Other Entiti.s As indicated in CHAS Table 3A, t~e City will support applications by other e"tities including non-profit housjng developers, supportive housing providers and the Santa Clara County Housing Authority for federal and State housing programs. The City will certify that tha applications are tonsistent ~ith its CHAS unless the proposed project cannot comply with the Cjty's Comprehensi~e Plan and Zoning Ordinmnce. The City will evaluate each proposal en its merits and wi"ll consider any respcnsible proposal for federal or State funding. 5 I r ( , ! , ~ .! ~ ~ :x: (3 a a:: c ~ Vi ~ .E • ,- j ~ f « .. - -r < ~ i Ml( I -"-<>c • 0 >-E t,.');, <I: Il i 5~ I t L - ! x -,t., I ~ , " • :< " ~ u >-z ~ 0 ~ M ~ , -1 ~ , EJ! ~ I. l:.1', ~ I ~ '0. ~ jif ,Jl~ • l • < ~ z I ~ ! ! E ~ 0 i '0 ~ ~ ~ " '" \ '',li CHAS Table 38 Goals for Households & Persons to be Assisted with Housing U.S,D~""""""WNlUtfNln ~enl 0fI\c)I M C.ornrrllMllty fIWII*'O WId ~t Comprehen.1v<i Hruslng Aflofdabllily SlrMOf/Y (CHAS) ,n",1UCI1ona for LOI'.a' Jurisdiction. ...... "',NIIIIIdDn· . .----------flY '13 CJ~ of Palo /HID !/O-l-92 In Q-3O-93 AuIII __ Prwidld ~1~0r0up ~......... ow.;o;o-' ""''''''''"---==1-''''':-.. -~--...... -r--.... '->-"t.... I ]---._ r ... "2~ AIMVId I AlMIiIId' MOlt"" Tval Ed'lIf1rg ~ lutlll I~i""" ~ 'fOUl sedDn21~ ____ >_ (A) (~ ~ 'D'-_I--~ F) (O..J"L _ ") J) .). (l) _'''I ,~), f. V.,.....-I ! 5'1 rft (0 .. _ ..... 1)" \ ;::z.q 19 1.o!"1' ::>v ~= Lj I ! 1./ ?--+-----~~t·=.r'-r---i" ~ r 6 ~ ,. co ... ~ 'lzdf--------(&t.,tmIoollMfW I i ~ i::~ ~ =til Lj 2 ~-_0!L. 19 . h __ J,i.,q~o '~ • or, e:-.d m1 HUO.:tjut-.d 1t'IOornI1tIYnI,"..,...... o ffIrrrI HU'a-.QOIO (\l.o92) f .. 'i' f' " >\",(, • /' C. Other Actions To Be Take~ I. PublIc Pollcle. Pa10 Altc has 1dentifjed seyer.l areas where the City's existing policies or ordinaru:es may have a negatiVe effect on the developme:lt or preser .... ation of affcrd'lble housing. During thE period of the CHAS Annual ?1an the fo1!owllfg studies or planning efforts will investigate the issue. iI. Comprehensive Plan revisior.; On October 19, 1992 1 the C,ty Council appro .... ed , complete re~ision of the City's C~mprehensiye Plan. As part of the revlsion process, the City will conjuct an an~lysis of how th~ Plan'~ pOlicies may affect affordable housing objecti'les. b. The City Phnning C.orrmis::ion recently established a sl.:bcammitte~ to de .... elop l'ec.olllnE!ndations on the establishm1!nt of a Planned Unit Development (PUD) lone for multi-family hou$ing. Thls zone could include more flexible development standards which would facilitate aff~rdable housing. c. Planning Department staff will co~tinue to re~iew existing zoning codes whjch affect residential hotels to determine if changes are necessary to preserve the City's existing stock of residential hote1s ar.d to facilitate the de .... elopment of new SROs. 2. Institutlon.l Structure The consolldation of housing and community de .... elopment st~ff within the Department cf Planning and Community [n~ironment and the hiring of a Housing Senior Planner has given the City the shff capacity to carry out its' hCJusi~g strategy. During the FY 92-93 year, City staff will be meetl~g ~'th the different segments of the community in~olved or concerned witM To~ income housing issues to de .... elop mechanisms which will strengthen and coordinate the City's public and private affordabTe housin9 efforts. The City will be tva1uating ways to encourage cooperation, identify ne~ds, locate appropriate hou~i~g sites and secure more resources for the development of low inccme housing. The City w~ll seek the in~olvement of the private sector (particularly for-profit developers, lOCil ienders and real estate professionals), non-profH housing developer~. pro .... "ders of supportive !"1ousing and $ervice agencies, especially those as~isting the homeless. 3. and 4. Public Housing Improvements and Publ,c Housin~ Resident Initiat1ves Not applicable as there are no publlc housing developments within the City of Palo Alto. 9 .• E. Suom.ry of Cltl:en Comments and R.5pons~5 to be t.ompieted 11 o Al'PENDIX~ GENERAL DEFINmONS USED WITH THE CHAS ~~9rdab~e HOl,Jsinq: Affordable housl.ng 1s generaHy defined as hOLJsing where the occupant is paying no more than 3D percent of gross income for gross now;ing cos~s. inc'lt.Joing utliity cosis. AiDS aDd Related Dis~ases: The disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent 10r acquired immunodeficiency syndrome, Alcohol/Other Drug Addiction: A serious and perSistent alco~ol or otrler drug addiction that significantly Ilmits a parson's abflity Ie nV€ i"dependenUy As~isted Household :x Person: For the pU~PDS,,; of specifying one-year goals for assisting households or persons, a housencid or person ;s assisted if, durJng tt1e coming Federal fiscal year, they wi!1 benefit through one or more programs included in the jurisdiction'S inveS'tment plan. A rellter is benefitted if tI-Je pei"Son taKes occupancy of affordable housing that is newly acquired, newly rehabilftated, or newly con~tructed, and/or receives rental e.ssistance. An existing homeowner 1s benefrtted during the year if the home's rehabilftation is completed. A first-time homebuyer is benefitted if a home is purchased eluring the year. A homeless person is benefitted during the year if the person becomes an occupant of transftional or permanp.nt housing. A non-homeless person witt, special needs is consJdered as being benefitted, however, only if the provision of supportive se-rvices is linked!o the acquf5~l)n, rehabilitatlon, or ilew construc<Jon of a housir,g unrt and/er the provision of renial assistance during the year. Households or persons who wm benent from more than one pr:-.gram activity must be counted only once, To be included in the goats, the housing un.it nust, a1 s minimum, satisfy "the HUD Section 8 Housing Quality Standards (see 24 CFR $ection 882.1C9}. Sp.e also, instructions to{ compieting Table 3B of the CHAS and Table 1 of the Annual Performance Report Committed: General'1y means th.ere has been a iega[~ binding commftment of furrds to e 6pecffi<: project to unoertake specific acti'/rues. ~.Qn~is.tent mil tile Cl-{AS: A d~teiminat\o!l made by the jurisdIction that a program application meets the following criterion: The Annual Pian fOf that fiscCiiI year's r:;ndrng indicates the jurIsdiction planned to apply 1m ttle prQgram or v.'2is willif1g to s.upport an application by another entity rOf tr1e program, the location of activities is consrstent wi!h the gaographic areas specmed in the plan; and the scti'>lities beneiit a cBtegQT)l d residents 10f which the jurisdiction'S five-year strategy shows a priority. Cost Bur(Jen > ;;0%: The elCtent to which gross housing costs, including utility cosls, exceed 30 per~n\ of 9rvs~ income, based on data published by the U,S. Census Bureau. Cost..Burot:!n:> 50% (Severe ___ Co!ii_L~yrden): The extent to wh'lch gross Ilousing costs, including utWty costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. 12 ._---_ ... --- • . \ ') Disabled l:1olJs_etlo'd' A hoQOld com~osed of one or more pers .... '. a: i~ast one of whom is an adC-!t{~-person 01 a! least 18 years of age) who has a disabiHty. A person ~hall be considered to nal,l€ a d,sabHii), ilthe person is determined tc havf; a phYSical, mer;tal or emotional impairmf!nt traCl.t '1l is expecte-d to be of long-contjnued and in-:Jefinite duratior, (2.1 substantially impeded his or her abllit'l to live fndependentiy. i:md 13) is of S'..lch a nature thiAt tI18' ability could be improved by more suitable housing conditions A person shari elsa be cQ.1sidered to have a disability if he or she has a deve!opmentai disabiilty as det~ned in the Developmental Disabilities AsSistance and 8111 o~ Rjgh!s Act (42 U.S,C. 6001-6.)06). The term also ~ncludes the SLJrviviilg member or members 01 any household described in the firS( $entence or this paragraph who were IlVil1g in an assisled unit with vie deceased member of the household at the time of h'ls or her death. Economrc Independence and SeH'~Suffici~D __ gy Proarams: Programs llnderlay.'Sn by Public Housing ,6,genc'les (PHAs) to promote economic independence and selt-suH1:iepcy ,0( par!:fcipatin9 families, Such program.s mal include Project Self-Swfficjel1CY and Operaticn Bootstrap programs tha1 oliginated undp.( ear~ier Section 8 rental certifica1e and rental voucher initiatlves, as wen as the Famiry Self~Suffidency program. In addition, PH,.4.s may operate locaJly-deve!oped programs or conduct a varlety of speciar projects designed to promote economic independence and s€H sLIfficiency. £Jgerly Ho_usehold: For HUD renta~ programs, a one Of two person household in ""hie, the head of the household or spouse ls a11'Zast 62 years of age. EldEtrfy Person: A person who is a1 leasl 62 years or age E'(isting Homeowner. A'1 owner-occIJpan1 of residential property who holds tegal ti~ie to th-e property and who uses the property as his/lier principar residence Family: See definition in 24 CFP. 81.2,2 rrhe National AffordabJe Housing Act definition required 10 be used in the CHAS rule drtfers from the Census definition). The Bureau of Census defines a family as a hO\.Jseholde~ (head of household) and one or more other persoriS rIVing in the same househord who are related by birth, marriage or adoption. The term ""household" is used in combination wjth the term "related'" in the CHAS 'Instructions, such as for Table 2, when compatibiHty with the Census definition of 1amHy (tor reports and data aya~a:bf(· from the-Census based upon that definHJon) is dictated. (See arso aHameless Family.") Fam~y S~.If-Sufftciency (FSS) Proqrarn: .A.. program enacted by Section 554 of the National Affordable Housing Act which directs PLJbric Housing Agencies (PKA.s) and Indian Housing Aut:i1orilics (!H.A.s) to use Section a assistance under the rental certificate and rental voucher programs, together wtlh pubnc and private resources ~o provide supportive servic8-s, to enable participating famillas to acrieve economic independence and self-suffiCiency Federa! f'r~ference 'or Admissior,: The preference given to otherwise eligl:b~e applicants under HUO's rental assistance prograrTIS wno, .at trle time they seek housing assistance, are involuntarily displaced, living i., sL;bstalldard housing, or paying more than 50 percent of family income fOf rent. {See, for e.:t.amplo::, 24 CFR 882.219,) First-Time Homebwer: An indiv,duar Of family who has not owned a home during the three­ year period preceding the HUD-ass'lsted p;,.Hchase of a home that must be used as the 13 • ~..:' . principal residence of th~'nehLJyer, except that any inOl',iduaIO is a displaced homemaker (as defined"4 CFA 92) or a single parent las defined ~n 24 CFR 92) may net be exdudcd (rom cCf'lsideration as 2: fjrst-time nom-ebuyer on the basis that the individual. whne a hc;memaker Of ma,-fied, owned a horne with his or her spC'<..Jse or resided in a home owned by the spouse, FmHA: The Farlflcrs HomE' Admmistration, or programs Jt admirtisters. For Ren!: Year round hous,ng units which are vacant and' offered/available for rent (U S Census dEfinr,iol"',) E.9@J.g: Year roUl"d hOUSing Ui,its which are vacant and offerediava:lable for sale only, (U,S. Census definitrof1) Fra.itJ~Jderly: An elderly persol! W~IO Js unable 10 per1~rm al least 3 actJvities of dafly Ilving {I,e., eating. dressing, bathing, grooming, and I'lousehola management act'villes), (~ee 24 CFR 889.105.) ~rotJP Qu_a.rlers: FaciHtJes provicing riving quarters that are not classified as housing units. (U.S. Census definition). Examples include: prisons, nursing homes, dormitories, mi!Jlary barrac,",s, and shelters. HOME: The HOME lnvestment Partnerships Program, which is authorized by Trtle II of 1.1e National Affordable Housing Act HOMeJl:l'lif.Cil!1it:D Famiiy that inciuGas at reast one parent or gLJardian and one chHd under the age of 18, a homeless pregnant woman, or a homeiess person in tile process of securing legal custody of a pe rso n u noer the age of 1 e, Homeless h)divj.pual: An unaccompanied youth (~7 years Of lounger) or an adu:l (18 years Of older) without chUdren. Homel6S$ YOU1,I}: ,U;1accompanied person i 7 years of age or younger....mo is riving in situations described by terms ·sheftered" or "un~heltered~_ b'OPI;..1: The HOPE for Public and IncJ'tan Housing Homeownership Piogram, which is authorized by TftJe rv. Subtrtie A of the ~atfonal Affordable Housing Act HOP~.,g: Tne HOPE for Homeownership of Mutti1amily Uni!.s Program, which is authorized by Trtle IV, Subtitie B of the National Affordable Housing Act. !:iQ~: The HOPE for Homeownership of S·rngte Family Homes Program, which is authorized by TJtle IV, Subtitle C of the NalJonal Affordable Housing Act Househord: One O{ more persons occupying a houSing iJnit (U.S Census definition). See also ~Family". Housing Problem5 HOi.Js-eholds with housing pJOblems include those tllat. (1) occupy units meeting the definition of Physical Defects; (2} mee1 the definition of O'Ifercrowded; and (3) meet the definition of cost burden greater than 30%, Table 1 C requests nondup~icatlve 14 I , 1 I ! ,-' counts of households tna$t one Of more or th€'se criter~a HOusi0..9....!"InI!: An occupied or vacant house, apartment or a single room (SRO housing) that is intended as sepa.rate living quarters. (U.S. Census de~nitjon) !m.,tilutlOl1slli1stj!utionai: Group quarters for pefsons ur'lder care or ct..Jstody. (U S Census doflnltion) 1{l.rge Aerated: A hou!";ehc!d cf 5 or more persons which includes at loast one pe~son related to the householder by blood, marriage or adoptioil. !J.IjTC: (Federal) low Income HOUSH19 T'ax Credit. low-Income: Household'S whose incomes do not exceed 8-Cl percent of the medlan income fOf the area, as determined by HUD wfth adjustmef1ts for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80 percent of the median for the area on ttle bss1s of HUO's findings tnat such variations are necessary becawse oi prellaHing levels of constrvction costs Of fair market rents, or unusualry high or low family incomes. NOTE: HUD mcome limits are updated annuany and are available from local HUO offices (ThIS term corresponLis to low-and mOderate-income households in the COSG Program.) Moderate Income: Householda whose incomes are between 81 percent and 95 percent of the median inccme for th~ area, as de1e;mrned by HVD, wl'th adjustments for smaner Of larger families, e)(cept that HUD may estabfish Income caifings higher or kJwer than 95 percen.t of the medl:iim 'or the area on the basis of HUD's findings that such variations are necessary because of prevailing levels or construction costs or fair market re;rts, or unusually high or low family Incomes. (This definrtion is different than that for the COSG Program.) Non-Elderly Household: A household which does not meet the definition of "Elderly Household,· as defined above. Non-Homeless Persons with .. Spec:al Needs: Includes fra.l elderly persons, persc,ns with AIDS, disabled families, and fammes participating in organized programs to achieve economic setr-sufficiency. Non-mstitutlona!; Group quartej"s for persons not under c.:are or custody. (U.S, Census definilion used} Occupi.ed __ Housing Unit· A hOLlslng unit that is t:'"le usual place of residence of the occupant(s), Other Household: A household or one or more persons that docs not meet the definition of a Sman Related household, large Related household or Elderly Hous-ahold. Other..lfl~; Households whose incomes exceed 80 percent of the medlan ir1come for the area, as determined by the Secretary, with adjustments for smaller and laiger famiHes OtJ1er Low-Income: Households whose incomes are between 51 percent and eo percent of the median income for the ares. as determined by HUO, with adiustments for smaner and larger families, except mal HLJO may estabnsh income cemngs higher or ;Ower than eo 15 .' percent of the median f~ area on the basis of HUO's fir,din0t such variations are necessaf)l because of pMH,ng levels Of construdon costs Of fair market rents, or unusuaHy high or law family incomes, (This term correspondS 10 moderate"income in the COBG Program.) Other Vacant' Vacant year round housing uf1its th~t are not For Rent Dr For Sde ThIs category wou'd include Awa'ting Occupancy Df Held, Overcl'!:;wded: A housing unit contalnlng more than one person per room, (U,S. Cen:;,u5 o efirtltionJ Owner: A household tl1at owns the housing unjt it occupies (U.S, Census definition) ~ica1 Defects. A housfr.g unit lacking cnmplete k[1chen o. bathroom {U.S, Census c'3finition). Jurisdictiot1s rna,.' expand upon the Census definition. Primary Housing Activity: A means of providing or producing affordabie housir.g -such as rental assiSi:,..nce, production, renabili!ation or acquis~iOr. -that wW be allocated s~gnmcani resources and/or pursued intensively for addressing a particular housing need. (See alSO, ·Secondary Housing AClivrty'.) Project--Based (Rental} Assistarrce: Rental Assistance provided for a project. not for a specific tenanl Teroants receiving project-based rental assistance give up the right to that assistance l.o-pon mOving from the project Public Housing ClA.E: Public Houslng Cornpreheflsive Improverr.enl Assistance Program. PubliC Hous}ng MROP: Pub:ic Housing Major Reconstruction of ObSOlete Projects. Rent Burden> 30% (CQst Burden): The extent to wt1ich gross rents, including utility costs, exceed 30 percen~ c~ gross income, based on data published by ihe US Census Sureau Rent Burden> 5O':lb {Severe Cost burden): The e;..1ent to ",,'1ich gross rents. incJuding utility costs. exceed 50 percent of gro3s income, based nn data publ'lshed by the U,S Census Bureau. &!-nt~J AsSistance" Rental assistance payments provfded as e'rtr.er project-based rental assistance or tenan!-b2-sed rental assis1aroce. Renter: A nouseho'd that rents the hous1ng unit n: occupies, ~nclj~dlng both unns rented for ~h and units occupied without cash payment of rent. (U.S, Census definWor1) ~.nter Occupied Ur.i~; Any occupied housing unit that is not owner occupied, including units rented for cash and lt10se occupied without payment of cash rent Secondary Hous.1DSnActivity. A means 0' providing or producing affordable housing -such as rental asSistance, production, rehabilitation or acquisit~on -thal will receive few&r resources and less emphasis than primary hous''''g activities for a-jdressing a pan.cular housing need. (See also, "Primary' HotJsing Activ·ity".) 16 -.--._---- .. I I q , .' o Section ,21 5" Section 215 of Title n of the Nationa' AffordabJe Housing Act Se :tion 215 d6fines ~.affordable~ housing proje,,1s under the HOME program. Servj_~ .. ~ .... t.,j~: The particular ser'lices ioentified for special needs populations, which typicalry may illclude transportation, ~ersonal care, housekeeping, counscoring. meals, case management, personal emergency response, and other services tD prevent premature institutionalization and assist indivfduals to continue Irving lndependi?r,tiy Severe Cost Burden', See Cost Burden> 50'%, SeverE!J"le,,_tai Illness. A serious and persFstent mentar or emotionallmpafrmenl that ~ignificant~ frmfts a person's ability to rive independently. Shl:!'_lter~: Famines and persons whose primary nlghttfme residence is a supervised public'y or privatery operated shelter, including emergency shelters, transitioilal housing for me homeless, domestic violence shefters, residential she1ters 'or runaway and homeless youth, and any hotetrmoteJ/apartment voucher arrangeml:nt paid because the person r5 hOr.lejess, This term does not incll..ldz persons livIng doubled up or in overcrowded or substandard conventlona' housing. Ar"1Y facilrty offering permanent housing is no1 a shelter, nor are rts residents hom eless, Small Re!ateq: A household of 2 to 4 persoli5 which includes at teast one person reiated to the householder by birth, marriage, or adoption_ Substandard Condition and not Suftabfe for Rehab: By jocal definition, dwelling units that are in such poor condmon as to be nett~er st\Jcturally nor financiaJ!y feasible for r€'habijitat~on. Subslar.dard Condition but S.hJ.!table for Rehab: By locaJ definition, dwelling units that do not meet st..andard conditions bu1 are both ffnancially and structurally feasible for rehabHitation. This does r)ot inolude units that require onfy cosmetic work, correction or minor rNabirity prooiems or maintenance work. The jurisdiction must define this term (i.e" standard condrtion, financially and structuraHy fE:aslb~e for rehab} and incfl.!de tM!s definition in the AppendIx (GJossery of Terms) portiorl of Its CHAS submission. Substanti~LAmendment: A major change in a", approved housing strategy. It involves c; change to the five 4 year strategy, wnicl1 may be occasioned by a decision to ur:denake activities Of programs inconsistent wit~ t~at strategy SubstCI.ntial Reh<abilrtatior;: Rehabilitation of reSidential propelty at an average cost for the project in excess 0' $2::,,000 per dwelling unit. Supportive Ijou$ing: Housing, including HouSing Unit~ .md Group Quarters, that halle a supportive environment and includes a planned servfce componerLt. SUDpcrti'{.e_Servfce Need in. F.?S Plan: The pran mat PHAs administerir"lg a Famil)' Self­ Sufficiency program are required to develop to identify the services 1hey will provide to participating families and the source of funding for tl10se services. The supportive services may include ch~ld care; transportation; remedial ed\.Jcation; educa!iol'l for completion of seconc"ary or post secol1da~ schooling; job training, preparalion a.'1d counseling; substance abuse trea1me[)t and counseling: training in homemaking aild parenting skills; money 17 .-~ . management, and hOi.Jse/1o~d management; counseljng in hOmE.'?~erShip; lob developr:1ent and placement; fCiiOw~uOistarlce after Job placement. a<ld OIj1"~pproprlate se-rvices SUPPOrtive Services: Services provided to res[dents 01 supportive housinG fOt b1e purpo$e 01 facmtating the k'ldependence of residents. Some e)(amples are case management, medicar or psycho(Qg1cal counseling and supervi::;ion, child care, transportation, and job training Ienaf'\t·Based_l.f3~n~?-Jl Assistance: A rorm of ren~al assi'S'.~Jl('~ !n , .. :!"-kh the assis~~cI tenarlt may mo .... e from a dwemng unil wil~ a right to cvntinued assistance The assis1a.nce is provided for the ten ant, ·'"lot for the project Total Vacant HousiQ9....Vni1:s:, Unoccupieoj year round tJol!sing units. (U,S. Censl.JS definition) Unsh~tt€'reQ: Famillt)s and ind:vidua!s whose primary r"'1igrrttim€ residence is a pub'ic or private place not designp.d for, or ordin3rily used as, a regUlar slee~ing accommodation for numan beings {e.g., st1ee-ts, parks, alleys). Vacant Aw~itin9 Occ1Jpc.ncv or Held Vacant year round housing units thai have beerl rented or sold and are currently awaiting occupancy, and vacant year round housing un~s that· held by owners or renlers tor occasional use, (U.S. Census definibon) Vacant Housing Unft: Unoccupied year~roL1nd housing units that are available Of intended kn occupancy at any ti me during lhe year. ~I"gw·incom.£:: Households V'mose incomes do not exceed 50 percent of the median area income fOf the area, as determined by HUD, with adjustments for smaller and larger families and fVf areas with unusually high or low incomes or where needed because of prevailing IEWels of construction costs Of fail market rents. (This term corresponds 10 low· income households in the CDBG Program.) ~FOf lt1e purpose of further distinguishing needs wrt'lrn this category, two subgroups (0 to 30% and 31 to 50% ot MF1J have been established ir. tile CHAS tables and narratives.) Worst-Case Needs: Unassis.ted, very low·irlcomc renter households who pay more than haff of their income 101" rent, ~\le in serioLJsjy substandard hous:ng (whlch includes homeress people) Of have been Involuntarily dlsplaced Year Round Housing Units: Occupied and vacant housing units int'9nded for year round use (U.S. Census definition.) Housing units for seasonal or migratofY '.Jse are e)'cluded NOTE: Tenns no! defined above may be defined In the specific mstructions for eacn 1able. If 8 1ef"ii'l Is not. defined, the jurisdTctlon is to provide its own definition.. 18 APPlNDD 8 HOTlC( OF PUBLIC RE~I£lI PERIOO AND PUBLIC HEliRIHC ON PALO ALTO'S COMPREHENSIVE HOUSING AfFOROAB!LITY STRATEGY (CWAS) ANNUAL PLAN AKD ANNUAL PE~FORNANCE REPORT FOR 1992 CWAS AHHUAL PLAN The City of Palo A1tc hos completed a Draft Annual CHAS Plan for the peri~d of October J, 1991 through September 30, 1993. Tne Annual CWAS Plan is an update to the F1ve Yen CHAS )ri\'l;ch was adopted by the Clty Counei1 on October 21, J991. The Annual Plan estaoiisne:; goals for the provision of housing assistance t{) low ind 'Iery low income persons 'nc1l.idin9 the hcmel ess. "The­ Annual Plan also describes i one year strategy for the use of housing reso~rces including federal, St&te. local and priyat~ r~sawrces far the production, rehabilitation and preservation of low income housing. AftHUAl PERFORMANCE ~£PORT The Annual Perfcrunce Re-port describes Jow incom<e housing activities during the past year (October l, 1991 through September 30, 1992), funds made available for houSlng and the number of low income households whlch were new',y ~ss.isted. Preparation and adoption of the CHAS Ann~al Plan and Performance Report is reQ~ired by the federal government in order for the City to ap?1y for federal housing assistance funds, including Community Development STock Grant (CDBG) funds and HOME funds. PUBLIC REVIEW PEAIOD: The draft Annual CHAS Pia. and Perfocm.nce Report will be available for public review, for i 30 day peri~d. beginnir,g on November 9, 1992 and ,oncTuding on Dece.ber 8, 1992. ~ritten comments may be submitted during the 30 ~ .. :; revlew period and should be sent to the Falo AHa Oepartment ~f Planning and Community Environment y 250 HamiTton A~enue, Pila Alto, CA. 94301. PUlllC HEAliNG: Tne City Council ~ill nolo a Public Hearing on the draft Annual CHAS Plan and Performance Report on Monday, December 14. 1992. Tne public hearir,g win be held It 7:30 PM or IS soon 1S posslble thereafter, in the Council Chambers of Citl Hall, 250 ~amilton Av~nue, Palo Alto. to~ments on the (HAS Plan may be pr~sentej orally ~t the p~blic hearing. LOCATIONS TO REVIEW THE ANNUAL CHAS PlAN AhD REPORT: Copies of the (HAS or. available for revif~ at City libraries, and at the Department of Planning and Community E"~ironment located on the 5th Floor of City Hall, 250 Hamilton Aven~e~ Palo Alto, ~tween 8:00 AM ~ 12:00 noon and 1:00 PM ~ 5:00 PM. For questions Dr more infcrmation concerning the CHAS Annual Plan and Pe!'"'formance Report, please call Catherine Siegel at (415) 329-2679. KENNETH R. SC~RfIBER Director of Planning and COrJVTlunity fnvi ronment 19 PLANNING COMMe501< EXCERPT MINTJES Of NOVE'iBER _~8. 1992 AGEND4 ITEM, (O~PREH[NSI" HOUSING AFfO,"O,;enlTY STRATEGY (tHAS), Revie\oi and CQr.m\€.nt en ttle f~d.q.ra' 1y requ'ire<j eMS AMya1 Plan for t~e periCi,j from Octob~~ 1, 1992 through Septe:;;be; 30, 1993 ar,d the Annua1 Performance Peport fOI" the period from f\ctober 1, 1~91 thrtiDgh SE'pterrber 30, 1991, Cholirm.?:n Beecham: Under-tnl$ Hem, we have our opportunHy to r'2view and comment. Are there any staff cGmroent~' Ms, Lyt)e: Yes, I would like to tak:: this opportunity to intr(l~uce to .vou Cathy Siegel. who is our nelof ~enior planner for hQusing. Ca.thy was hired on October 5. She was formerly a specialist for Housir.g and CCllmlunity ~eve1opment with the County of San Mateo, having held that position for fi~e years. She administered the county's CD3G projects and initiated a cQuntY-lilide, first~time home buyer program. She has a degree in urban planring from San Jose State University_ She has 14 years of e:..perience in city p1.anl"1ing. housing and community {levelopment. It 15 our pleasure to ha. .... e her on board. Sh~ prepared tf,.e CHAS for this an.r.ua.l report. Chairman Be@cham; Do you: have any comments for tJs 011 this item? ~iifgti: His is i! somewhat technical dc.(ument, not very readable, so I apologize for that. The content of it is prescribed by I1UD guidel i nas that you have to follo'W hi~ly prec)se1y if yOlJ 'Jiant them to appro\'e the- documeni. It is required 1n order for the cit,)' to receive corr.munity .cjevelopment blod. grant funds and also, hop~fu1iy, tie 'ity will be rece1ving HOME fundS. A]so, it is a required document for nonprofits delfeioping hous1r..9 ..... ithin the city, su.ch as the lytton. IV project, to receive federal funds. Sa even thaugn it is not very readable, jt is very important. It has to te stJ~itted to HUO by December 31st to co~tinue the important programs we have i~ plac~. CO!'f!'l'1issioner Carrasco: OrJ Page 4, under ·S~rvice Delivery alld Man~gement,· I reed!} when I wa~ on the Palo Alta Housing Corporation board that it was brought to our attention by staff t~at HUD had some concerns that tne hOIJsirlg corporctiol'l had too close a relationship with the city. One of the sentences here says, "The city also fl101intains an ongOing contract with. the Palo Alto Housing Cc:r~cration to provide information to low-income persons ...• Has this rDle been decreased stgnifica..'1t1y since past Ol~.Ss? If 50, 1 would like to speak to that. Hs,~_.ll~.9..d: It is my urlders.tanding that the ro1e of the ~ousing corpor.aUcrt h.as been re;duced fro", what 1 t \lias in the pa:;;t. In the PHt. belie\le they ilcted, at hast in part, in iI consulting relationsh~p ",Hl1 the 'ity. That was the main ~spe(t that created prob1ems under tre federal reg~latio~s. Now, their contract is much more specific, whereby the city pays them for certain serv1ces re~dered. Among these serVlces are the administration of the below-mad:.et-rate t,alls.ing pro~)""<iro and th.e inform3tion alld referral sen-ic!2's for low+incor.1p. rel'1tal hOU:5in9_ Also, the city pays them to develop specific lo~-i~come housing de~elopments, such. a.s. the Bad:.~r Hot~1 ,"h\e!'. th-ay an~ nnw workir.g (Jr.. Also, thi"y,.il1 be working on the develop~ent of a n2W single-rocm occupancy (SRD) rental location. So those concerns of h'UU have been addressed adequately. ~.n the audit f~nd'ings tnat ,,'ere madr: have been ciean:d up_ Corrmi~s_ioner f.arrasco: It is astounding hnw many hours that board put& in and the kind of expertl:>E-th>?j have. ! am cc·ncerned thOit whne HUn might have th.eir I"'ules, it is a b19 lo:.s to tne cH)" c.o~stdering the kir\ds of free time that tho~e board members p~t in. I am wondering if there is J 1/18/92 -33- " ') , " ,- / /" s'Ome way to I]et that expertise and still fulfill rlUD's bureaucratic requirements. ~_s. Siegel: I believe we may still be getting it, Maybe WE: are just not payi.,g for-it 1';0'..... I have attended some of the hOL.:sing c\)rporation board meetings and na'ie spOKen to a number of the board members sincE: 1 ha\ie been working here. They do seerl1 to be 'fii(lrking VErJ hal'd, putting in an ir.credi~le amount or time ~.,J effort in their activities. ComlTdssjoner Cullen: I agree with the housing specialist has just said. I do know most of the board members, and they are conttnuing their work. I t!1ink. this tWO requirement \lias mostTy c: financial requirement, whe're money just got cut of one pocket and we~t ; nto al1Other. I do ha~e a couple of questions regarding t~at same page and paragraph. -Toe city plans to subcontract \jIith J'1o~-pr'ofit housing developers to sponsor, develop, own and lIlanage HOME projects.· I assume that inciudes the ~ousing corporation as one of th"se non-profit hous:lng developers. Is that correct? Ms. Siegei: Yes, they hal,le applied to the city for HOME flJnds for the Barker Hotel. We are work; ng with them r,OI/ll and "ah the state as regards exactly ho,"' the funds could be used for that project. Commissioner Cullen: How about the next senter~ce: "H.e city does flOt d~rectly own or operate any housing developments,-They are leased, J guess, but the land on a 1 at (} f these hous i ng deve 1 op~erlt sis at.tua ~ 1 Y owned by the city and leased for a dollar a year to the housing c<Jrporat"lon. Does trds sentence speak to U,at, or include that, or exclude that? Ms. Siegel: No, In the instructions fer the CHAS, they emphasize addressing the issues of traditional Dublic housing. This is meant to distinguish that the city does not nal,le a public housing aIJU"\I)rity, so does not ha~e the kind of responsibility that many other cities do. Commission~r Cullen: ~od bless HUD. I have one other question. know you C'IMot do anything abollt this, btlt on Page 13 of the gF.nercil definitions, I assume these ar~ the definitions that HUD is usjng that have to go \!lith the CKAS. In this era of gro\fdng youngness, 1 find the definition of an elderly person as a person who is at le-2!st ~2 years of age. J am starling to look in the mirror and wonder if I am included in this definition. Is this a MUD definition? Cormniss ione:.l:_Jull en: Well, t.hey should change it, because all of the materiaT that com€s out indicates that there is a growing middle age group and an early old age! Commission-er Diakian: On Page 5, in the section "Publicly Owred land,-is it still appropriate) in light of some recent decisions, to have the sentence that reads, "In addition, long-term consideration is being given to possible air rights projects on city-owned parking lots in Uie downtown area .• ll!l8!92 -J4 - ." . , 1 1 .> o Ms. Siegel: This .. as IIIritter! be~or€! the cit,. council decisilJn on Monday night . ~9~issioner Diakian: So is it $ti11 a phrase that shou'tl be Teft i~ there? In light of w~at t~€y said the other night. is this a sentence that should b~ removed? Ms. lytle: Or pel'hap~ modified. We can loo~, at that. COlTlTlission€r Ojakian: The only other comment J ha\le is that regard',ess of what you said at the beginning, I found this to be sa~what fascinating reading. I a1so liked the facl that in the latte~ sections, you have spelled out specifically some of the praj€r:ts that we are cOl'mnitted to. Whether HUD requires that or does not require th~t, it is a good yardsticK for all of us to f1aye available. I par'ticular1y like a couple of the projects rooted in here that the nousing corporation is involved with, such as mo¥ing ahead ~ith the Barker Hotel and also still ~a~;ng it clear that we are interested in downtown SROs~ regardless ~hether they are going to be in a specific site versus another specific site, anc a150 delineating se¥eral of these other projects in here that makes it cTear that these are things that, as ~ city, we are interested in and concerned with, and saying that these are things we are goi11g to be adrlressing down the road. That was the main impression I was Teft with after reading this, so I ~as very appreciative of having the report. h~mmi~sioner Marsh: This report accurateTy reflects what the city has been doing and is planning to do in terms of housing, But I would like to use the report as an opp~rtunity to raise an issue that r am becoming i~creasing uncomfortable ~ith. It does relate to an issue thlt is raised in the report~ that is, the que~tion of geographic distribution of priority housing within the city. Within the past year, it has become increastngly evident that ~hat I believe to be a disproportionate ~mownt of the special needs housing is being focused in the downtown area of Pal c Alto. We have the lyttan IV project. that is apparently on its .. ay to development; we have the Barker Hotel project; we have an SRO ~hat is planned for th2 downtown area; the only pubTicly-c\o/ned land whic~ we target in this entire report is this teeny, weeny tower well site on the corner of rJawt,"-orne and Alma. "'hen you look at the in .... entory of city-owned land acrQSS the city, it is a r i dicu10us site to put much effort into de'.leloping. In the mealltim,:;, we haye throughout Vre city, at least on a couole of parcel<.i that come tD mind 'immediately, some beautiful sites that are probab1y four times as big as the tower well site that sit undeveloped neal' transit lines. Nobody is e'.len taH::ino;:! about putting housing on those sites. Contrary to what one council member said when they considered the Lytton IV project, we do not introdu~e di'.lersity into the COlJll'ltH1ity if w€ put a'l1 of our special needs housing into one neighborhood. 'He dIversify that neighborhDod, 'which a1so happens to already be the neighborhood wit,"-the highest proportion of seniors and the highest rate of po .... ert). So I am actuaTly quite concerned about this. I think we really need to look at the fact that we need to be djstriDutiilg this hOlIsing t.hroughout the city. We nHd to be looking at SRCs around California A~enuE, [1 Camino R~al, and other locations within the city, so that the needs are not focused a1J within tMis one very small dowr.lown area. (omissioner Cy.JJen: I am glad you brcught that up, as I had it in mind, ll/l8/92 -35 - ~-~.'" ...,. .. ••• ... -iiIII •• Sllltll· fliTiiI·llrrMty· .... -.-,-, .. o too, One thing we need is a map shQwing where the housing is in the dty. There was a tilT.: when people in south Pal-) Alto said, you are giving us all of tMs law-to moderate-income hausing. That is no longer true. M.,st of it is now going into the dowrltowr. a'rea. It i:; true that there are a lot of s~rvices there, but in th~ Califcrnfa Avenue area, there are .a lot of sen-ices, a!. well, We dtd Dut in there about family housing near the rai1road t!'"ads, and that wa::;' a .... ery good project. But am sure there must be as much demand for an SRO in that area as there is downto.,;n. Farther south, we II/iped out the housing tnat was 5RO for the people who worked in the hotels and in the restaurants when \ole converted some of those little ra~bit warrens into condomini~ms. So that is no longer all area wnere people who work there can live anywhere near it. We really shou1d loo~ at some of these other areas of town. r feel that the downtown is being asked to carry p~~haps more than tts fatr share at this po into Commissioner CarrascQ: ~hile r agree ~ith Pat that downtown is carrying more than its fair share, there hal,ie bee., projects in south Palo Altc that have come in under the below-market-rate (BMR) housing programs. The last en! was just soutt1 {If Loma Verde, and there is orle on Ba:--r.on Avenue that the housing corporation acquired. They are both large projects. Ms. lyt1e: Tam~rack Court ;s the most recent one that we have reviewed. Thi! opportunity to nlap infof';!latlon su-:h as this is going to be very much available to us through the Comprehensive Plal'1 program. That mapping function was emphasized. He ~ave neglected ou, spatial analysis for awhile, and we are going to appreciate being able to get some of this informat~crl mapD"?d out and looked at un a citywide basis so that .-e can analyze it more fully from that perspective. COmmissioner Marsh: In ~eJation to that. one of the pieces of information tM~t will be ~ery helpful during the Comprehen~ive Plan process is not only the mapping of existing housing but also an in~entory of cfty-owned property, inclucing parking 10ts and vacant property. That was done a few years ago when they wound up doing the California A¥enue process. I don't know that it has been updated since then) but t~ere is a fair inventory? and if we are actually SHious about loo;<.ing at and de¥elopirg housing, we should ha¥e that information av~iTable to us. Ms. lytl~: 1 agree. ~.mmissioner Q~.~~an: I hear what Pam ;s Hying, and I understand where she is coming frorr;. being a lor,g-time resi.dent of the downto ..... n area and being part ~f a neighborhood group that consistently argu~d fo~ the fact that they were having nonconforming uses in H.eir neighborhood in a disproportionate number to other areas. I am sensitive, a little bit. and agree with Pam in some ways, but on the one side of the coin, I ha¥e been one of those pe0ple who nave always called this area the UniverSity Avenue area. I do tn.at becalIs~ I think tnat people, by using thp. semantics {If calling it a downtown, justify certain things happening here that might not normally go on nere. 1 do f'lOt consider it a traditiorlal downtown. The way I deflne downtown is a comrr.ercial strip many blocks wide that runs from E1 (amino Real across to "ighwa:l 101, something lik.e an area in Sal1 Mateo's downtown, Third Avenue and several others. i -;uess the reason I helve always thought that way is that some people seem to then think that by envisioning this as a traditional downtown, they can therefore: .do lI/l8/92 -36- l I I I o several thillgs here that you might not rlorma"l1y be able to do in an area eq~i¥alent t~ this set sQmewh~re else that is not call€c a downto~n, also think tnere is a driiing need to have thi~g$ like SkOS. I also realize that the way we are g~ing to get those is throug:, the cOllvenion of such thing'> ~s exist~n9 'Smal1 hotels. I a:rl not Dlie who is going to tak.e a position to iocl'Jde or exclude anything based on where it is sltuated. If ~ good hotel comes up in the downtown arEi that meets a housin~ need othe p than the way it is being used as a hotel. I th1nk we shol.l1d 5ta)l open and sa)" ma)'b~ that is a place where "-Ie should put '\to If that happens to come cpen on [1 (ami~o Real or San Antor.i~ ~o4d or somewhere else, again, I am going to lock at Hat and askl is thera a driving need for that, regardle::;s of its 1ocation? If there is. 1 am going to try and mah a. forcef'u1 argument for ac.cept 11'i9 that sort of a pr.1ji!Ct. So an the one hand. I .am sympatheti c to 'What Pam is saying~ but on the other hand, I want ta leave SOrTie of ::lur options ope:'!, even if thi:.t means, in my own particular 1;"1"1.'19 situation, it is going to hav-e some imp~ct on me. Corrmi ssioner-,"larsh: I totally agree 'Wi th you, Vi c, that we ~ave to bt! f1exible enough to seize opportu~ities as they come alcng. However, the projects we were talking abQ~t most recentlY, with the exception of the 8arker Hotel downtown, have ,Ill been projects that did oat take advantage of any conversion. Tney are new projects planned on new pieces of property from the ground up tnat could l1ave bee~ p1aced in a variety of locations. So in thes~ case~, it is not that we are takfng advantage of some 'great con ... ersion opport'Jrity, it is tnat we are bUilding projects from the ground up and na ... e tne opportunity to consider whe~e they best fit w~thin the community. It is those kinds of projects that 1 think .~ need to think carefully about in distributing them 'Where they ire needed. Commiss~oner Ojakian: Just to add one thing. It is interesting because somE: were having a 1ittle b)t of '\.he same concern when 'We got to 651 Ham~lton. I called up a couple of pe~ple whom r used to wo~k with when r was in ... oT ... ed ir') putting in the downtown farmer'S market. That I'Jas a Senior Coordinating Cou~cil project. r asked them the same sort of question, Pam, because e ... e-n thou9~' 651 HamiHon .. as not the typical typ.e of senior housing we had been p~tting in do~ntDwn. again, having some of the same sensiti ... ities t~at you have, and 1 didn't bring this up before because 1 didn't wart ,t on the record because 1 ~e ... er asked those people if ! could" put them lJli ths record, so I ~in lec'ie: th~~r !"lames unlTl~ntioned. Hf!?y said. in looking at t~e downto~'n. do we reach a saturation point in terms of senior housing. because on the Dne side of the coin, again, we are using an argumel"lt that sa/s, gee, this is a great ~1ace to h~ve sen'or hQUS1ng. What tel1s us that \s the fact that it is already 20 percent senior housing. rt is a1most a cyclical argument. You keep using the argument to feed itself ar.d add to the increase in senior housing. So I asked them the question, do you r~ach a saturation point? Tliey s.aid, il\ respcn5e, net really. The1r opiniol1 was that this 'Was ODe of those ideal areas in the city where, because of the servic~s and the transportation and the medical facilitv. etc., dt least in terms of the quantity you cau1d have, to the.ll, adding some additiona1 housing even like that at 551 HamiHGn ~as not going to ha,>'e any impact. In fact, it was a good place to put it. r did not necessarily ~gree, or maybe we will see 651 Hamilton again, and I am not saying that that was necessarlly an argu~ent that convinced me to say that 'fo'e should go ahead and apprcve it as a project. But it also left ~e wlth an im?r~sslon that w~~n we look 11/18/92 -37- ..:. " o iround the cit" ~e have to real ize t~at certain things might fit in certain places, g1ven its surroundings. may be forced to make a decision that maybe I personally WQuld not always wa~t to make, but the best place to put something. ; t ; 5 COlTlTlissioner Schmidt: Back to the report, r thought it was quite readable. t,ast year was the first yelr t~at WE had the (HAS plan, &nd it was a bit mor~ confusing. The HUe rules were unclear, etc .. so this shows me that somet~in3 has happened. It is interesting to see that some of th~ projects tnat actually happened wp,re conversio~s of hoteis. motels. etc. and those that are just going to be coming on li:le that '3ctl.la"ITy made some of this new t}ous"ing happen. It is interestir.9 to note in the performance that there were lets and 70ts of sources of funds that djd not happen, for one rea30~ or another, ~nd chat a lot of the money that we used the city already had prior to that. It ~ill be interesting to see what r.appens next year~ and what we ~il1 be able to accomplish within that next time frame. Chai rmalLBeecham: official action to we have done that. That seems to be all the comments. We do not have any take on this item, ot~er than ctJmme:"lts~ and I belje .... e \lfe will move to the ne>:t item. AGENDA ITEM 6 Selection of tnree planni~g (ommission members to serve on the Compreliensive Pl an Citizens MVlsory COrTillittee. Chairman Beecham: This is certainly the: most important item for tonight, and for a long time to co~e. We ne~d to select tnre€ p1anning commission members for the Citizens Advisor-y Committee. I am sure you all know tnat the responsibiiity will last a long time, i.JntiJ late in 1995. W'noe\ler is on it must be wiPing to cOMit sufficier,t effort ~nd attention and energy for it. We do not have any farmar process for selecting members. Do€s anyone have any suggestions? MOTION: Commissioner tunen: r have a few nominations. I have not actually consuited tnese peop~e, but I have been looking at this, and having served on se .... eral of these long-range committees 1 ike the California Avenue Study and t~e downtown stud)', r know that 'What ""e nee.::! is continuity. So w€ need people who ar~ going to be here tnrough most of the time period. We a'iso need cumitme-nt to be able to go tc the meetings, and we need CI fresh point of ... ·iew. 1 f..:-el. So without further ado, and these people may respond as the)" wish, I would like to nominate Convr.issioner Schmidt, COrmlissioner Ojakian and Chalrperson Beedam. CQmmissioner Schmidt: I w~ll accept that assignment. for most of that time. should be here Commis:si_or1~.r Ojdkian: If my fellow commissioners want me, I will take the Ross Perot apDrDach and say, if the people want me to do it, I would be more tn~n happy to do so. 1 would say, however, that J also think Commissioner CarrasctJ would be an excellent person to have on the corrrnittee, as he:-has a tremendous amount of experience from a flumber of different levels~ not just He pTanning CDmmission. He provides a little geographical balance, in comparison to the three people you have brought up, which is interesting following what we wer~ just commenting on. The three names you n~ve mentioned all 1 ive in the downtown area. I think ..