HomeMy WebLinkAbout0362.093•
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(J) stafJeI2'Ol1 _____ 2_0---,
.June 28, 1993
HONOR}~LE C!TY COv:lCI~
palo Alto, California
Approval of an A9reement t~ P:-o .... ide the Hid-Pel'in,sula Housing
Coalition with Community Development Block Grant (CDBG) FUods
To Assist With pre-Development Expenses for the Development
~anent Housing For Developmentally Disabled ~dults
Members of the Council:
Council action is requested to approve the 3ttached agreement
with the Hid-Peninsu~a Housing Coalition (MPHC), for the
provision of $20,000 in CDBG funds fro~ the Housing
Development Fund tor pre-development expenses, to assist MPHC
in t.."J.eir efforts to develop a ne ... apartment proj ect for
developmentally disabled adults who are capable of independent
living.
BACi<GROUND
Kid-Peninsula Housing Coalition has been working ..... ith an
informal group of Palo Alto parents of developmentally
disabled teens an_ young adults. The parent group is
concerned about the lack ~f 3ffprdable housing opportunities
within the Palo Alto area for their grown children. Their
objective is the development of a small apartment complex of
20 to 24 units with space on-site for the provision of support
services. The complex would provide affordable rental housing
for developmentally disabled adults who typically have lew
incomes. The re~idents would receive training , counseling and
ongoing support to allow them to live independently. MPHC is
now completing ~ very similar project in Belmont.
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KPHC and the parent qroup have looked at nume.ro",lS sites o''[er
the last few months, ~nd MPHC is att.empting te negotiate a
purchase option en a pessible site. Federal funding fer this
type .of housing is curr:ently available under the BUD Section
811 ·Supportive Housing for Pers~r.s ~ith Disabilities"
proqram. A~plications !0r th2 1993 fundin9 round are due on
July 8, 1993. The section 811 progra~ is very sinilar to the
Section 202 program that is beinq used to ti~ance the Lytton
IV project. rt also provides a capital advance/grant f~r
dev-el.opment costs and a f.orty year subsidy of operating costs
so that low income residents pay no more than 30 percent of
their income for rent.
As in all federal housing programs, the competiti.on is very
high and funding a .... ards are made only to projects that score
'W'ell on all !:"ating criteria. MPHC has reg·Jested $2Q~OOO in
CDBG ~unds to cover their initial out-of-pocket costs invclved
in securing a site and preparing a sch~matic design. No staff
.or administrative funds are requested. City financial support
will help their ~pplication in the funding competition.
City funding is available for activities of this nature from
the CDSG Housing Development Fund. Or. May 26, 1992, Co~ncil
aacpted Resoluti~n No. 7039 approving the use of CDSG funds
for fiscal year 1992-1993. Item 16 of that Resolution
approved an a~location of $)93,995 to a Hew Housing
Deve~opment Fund; $62,495 of those funds are still available.
PRo..TECTED PP.OJECT COSTS
MPHC's Belmcnt aevelopment, 'Which is 24 units, cost about $2
million {excluding land a~d permit fee~, which ~ere ~aived by
the City) p Belmont provided $380,000 in redevelopment funds
to subsidize the majority of the $475,000 land price~ A
comparable one acre residential site in Palo Alto is expected
to cost more, maybe two to three times as much~ In addition,
relocation may be required. Under the Section 811 program,
local funds# ~hether from the city Housing Development Fund .or
private sources, will be needed to subsidize most .of the land
cost.
FUTURE PLANNING APPLICATIONS
Approval of this contract for pre-development funds aoe5 not
commit the City in any w~y to additional funding or to future
discretionary actions in regard to the ~erits of the project
or any partL::ular site. The project's development plan will
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need to co~ply ~ith the Comprehensive Plan and Zoning
Ordinance and .i11 be !Subject to the no.nr:al City discretionary
pl~nning revie~ and p~Ymit process.
PROPOSED AGREEMENT
The agreement provides up to a ma~imum of $20 r OCC in CDBG
funds for necessary Fre-d~velopment CQsts such ~s
architecture, engineering, i~6pections, tests and appraisal
e~enses to secure a site option a:"ld cond".J.ct preliminary
design studies. The funds ~ill be loaned to MPHC at zero
interest and with no payments required. It a project moves
forward, the predevelcpm6nt loan ~ould be incorporated into
the loan structure for the ETltire project. If MPHC is not
able to secure financing and housing subsidies or i9 not able
tc secure city plar.ning approvals, then the $20,000 ~ould
convert to a grant.
ENVIRONMENTAL REVIEW
The provision ot CDBG funds for pre-davelopment costs is
exempt from CEQA under Section 15262 of the CEQA Guidelines
and is exempt fro~ NEPA under 24 CFR 58.34 (6).
RECOMMENDATIO!l
Staff recommend5 that the City Council:
1. Approve and authori~e the Mayor to execute the
attached agreement ~ith the Mid-Peninsula Housing
coalition to provide $20,000 in CDSG funds to the
Coalition for pre-development co~ts related to the
development of an ~partment project for
developmentally disabled adults,
2. Authorize the Mayor to prepare a letter of
conceptu.al s'J.flPort tor the proposed project, Sitnll .. ar
to the attached draft letter, for subrnittal with the
HUD application.
Respectfully submitted,
(,l_;;C t~ .~~'<---".J'~ -?/"~ L
CATHZRINE SIEGE.L f"" ...... /
Senior" Planner
JUNE FLEMING
City Manager
4:. /LJ' / / /~.i<-/{ .. ?:..td 7-.. /J;;/(r:.t£'I'Yi_
KENNETH R. SCHREIBER ./
Director of Planning
and C~mmunity Environment
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Attachment: 1. Agreement With Mid-Peninsula !-lousing Coalition
2. Descliption of Proposed Project 3nd Draft
Letter of Concept~al Support
cc: Mid-Peninsula Housing coalition, 648 Bair Island Road,
Suite 300, Red~ood City, CA 94063
CDBG Citizena committee
HU.mar. Relations com-.nission
Karqa~et Hauck, oisability Awareness Task Force,
1229 Tasman, 1281, Sunnyvale, CA 94089
Sue Sucher, 4094 Ben Lomond~ Pal v Alto, ~A 94306
Judy Richardson, 2503 South Court, Palo Alto, CA 94306
Chris Segerha~~er, 1165 Harker Ave, Palo Alto, CA 94301
Stan' Melinda parry, 2020 Cowper St, Palo Alto, CA 9~3Dl
Ruth Maitless, 3437 Kenneth Drive, Palo Alto, CA 9430)
Nancy Strausser, 'l,S Wallis Court, Palo Alto~ CA 94306
Marge Quackenbush, 1700 Hamilton Ave, Palo Alto, CA 9430J
Judy Ri~hardson~ 2503 South Court j Palo Alto j CA 94306
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AT~ACHi~E~H 1
BE'l'Wl!EN 'I'IIE ern OF FIoLO ALTO AWl TIJE
KID-PENINSULA ROUSING CCALITION TO ASSIST WlrB
PRE-DZVELOPM%NT EXPENSES FOR
A PDXAI\'E!IT ROOS ING COMFLEX POR INn IVIDUALS WITS
DEVELOPMENTAL DISABILITIES
THrs AGREE!>ffiN'r is made and entered into O'!J. tl".e ____ day
of" • 1993, by and bet"""een the CITY OF Pl..LO ALTO, a
muni':!ipal corporation ("CITY·), and th'2 MID-PENINSULA HOUSING
C0ALITION, a California non-p':"of it corporatiol1 organized and
~xi6t.ing by virtue of the la ..... s of the State of Ca:::"ifornia, with
offices at 658 Bair Island Road, Suite 300, Palo Alto, CA 94060
{ 10 GRAN'TEE ~ } ;
!fI'I'NESS!!:TBI
WHEREAS, GRM"TEE has applied to CITY for financial
assistance with pre-develDpment expenses a~sociated with a proposed
rental apartment development consist.ing of up to twenty-four (24)
units. for occ'J.pancy by adults with developmen.tal dis2.bilities who
are capable of :independent living, tD be constr.l.::ted at a location
yet to be detenmined (the ~Project·); and
'WHEREAS, pursuant to the provisions of Title I of the
fed~ral Housing and CcmrLnlnity DeVElopment JI_cl of 1.9 74, as amended,
CITY appropriated Community Development Block Grant (~CDBG~) funds
under jts fiscal year 1992-1993 budget for the purpose of
preserving, rehabilitating and constructing affordable rental
housing in Palo Alto that meets th€: requirements of the CDBG
program; and
W-rlEREAS, the project as proposed would CrE:3,te new unit!3,
at affordable rents, spEcifically deSigned to meet the t~ousing
needs of low • .:;,r income adults lfro'ith developrner .. ~al di.sabilities; arld
1I1HBREAS, there is a severe short.:.age of affordabl'E: housing
suitable for adul ts with developmental disab.11 i ties in CITY and
nearby a'ceas i and
WHBRSA.S~ expenditure of prE" development ccsts fo:::: lower
inCOlrIe housing is an eligible activity under the CDBG program, and
the Project is consistent 'With CITY's affordable b,::msing goals as
outlined in CITY'S Comprehensive Housing Affordabi 1 i ty StrateS'y;
and
W:.--rBRP.AS, GRJ'-;lfTEE and CITY desi re under this Agreement t.O
arrange for a loan from CITY to GRJUVTEE to cover a portion of the
pre-development expenses GRAl'tl'EE 'Will incur in securing control of
an appropriate sit.e for t"ne Project and in obtaining federal
subsidies and financing to dev-elop the Projo:ct;
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NOW, THEREPORE,
and agreements 8peci fie."l
provisions, the parties
tollo'llls:
in co",sir5eration of the mutual cover:.ants
herein, and subject to its terms an.:~.
to this Agreement hereby agree as
SECTION 1 -D.SnfINITIONS
L 1 CITY
Tr.e term ~City'" as used in this Agreement shall mea;'" ..
and include all the territory lying wit.hHi. t'rJ.e rr.unicipal boundaries
of the City of Palo Alto, Califorr.i~.
The ter,n "City Council II shall mea:". the duly ele::ted
City Council of the City of Palo Alto, California.
1.3 CITY !l<'A~AGE.E
The term nCity Manager" shall mean the duly
appointed City :M:anager of the City of Palo Alto, California. or her
designatEd representative.
1. 4 .G1TY CLERK
The term "City ClerkN shall mean the duly appointed
City Clerk of the City of Palo Alto, California, O~ her designated
representative.
The term -Risk Manager" shall mean the duly
appointed Risk Manage~ of the City of Palo Alto~ Califarnia r 0= his
designated representative+
2.1 CITY
The City Manager shall be represer.tative of CITY for
all purposes under this Agz-eement. CITY's Director o~ Plar..r..ing and
Community Environment ~_s designated as the PROJECT MANAGER and he
or his design'::€. 9'hall supervise t"'ne progress and execut-ion of this
~.greemen t.
The Executive Din2ctor of GR..fuYI'EE shall be
representative of GRAN'!'EE for all purposes under-this Agreement..
The Executive Director of GRANTEE is also, dl2signated as the PROJECT
DIRECTOR for GRA.."ITEE and shall supervise the progress and exeCl:t i on
of t-his Agreement:.
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The purpose of this Agreement is to get forth the
respective duties and respor:u;ibilities of ClTY and CRA .. N''YEc
regarding the CDBG funds to be provided by CITY to GF'..A."'-"1'EE
hpre~nder for GRANTEE's pre-develop~ent activities related to the
Project.
4.1 PA):'M:& .. ?fT OP FUNDS FOR..-XKE-DEVELO?MENT J:'XPENS~ __ s..
CITY shall pay to GRJl...NTBE the sum of 'I""1I'lE~'TY THOUSP.ND
DOLLAAS ($20 r OOO), to be used in a.ccorda.nce with the tern..s of this
Agreement. and the CDBG progra.."'!l. G.RANTEE shall execute and del iver
a F'romissoI)' Note in favor of CITY (the ~Note~). in the fonn
attached hereto as Exhibit A and incorporated herein by this
refere~ce, in th-':! amount of T-'N'enty Tho1Jsand D,;,llars (.$20,000), to
secure the performance of all terms and conditions of this
Agreement. The Note shall be executed pI' lor to any disbursement of
funds under this Agreement. The Note shall bear no interest and no
periodic payments shall be e~le provide:,] GRANTEE campl ies with the
terms of this Aareement. Should GP.ANTEB secu!"e a site for t~!1e
Project, upon cl-ose of escrow for the site acquisition the funds
provided \mde:r this ~_greeme-::.t and the n:;.te shall be incorporated
into a new loan, toget.her with any other funds provided by CITY r
for the pur:chase of c.he site or development of the Projec:t.. The
new loan shall be secured by a deed of trust on the Project in
favor of CITY, to the ext€nt allowed by any other funding source
GAA."ITEE may ut,i lize to purchase the site or develop the Froj ect.
If, upon expiration of the term of this Agreement,
including any extension thereof, the project cannot be developed
due to: a) the unavailabil ity of a s1,.;.itable site for the Pz'oject
within CITY; b) the lack of or denial of necessary gove:r-ni1"Lent
housi~g subsidies or public O!:" private finar.ci::g; c) GP...Al\4"'TEE's
failure to obtain the requ.ired entitlement permits to develop trLe
Project, or d} a~y other circ\l.'fJ$tances beyond GRAN'TEE' s reasonable
contr'ol as deterrdned by the PRO ... TECT r-'".ANAGER. then no repayment
shall be required of any funds provided under this Agreement and
the Note.
Not .... ·ithstanding the foregoing. should GRA..~EE at any
tilt'te fail to comply wi t.h the terms o~ this Agreement or the Note,
the entire principal balance hereunder shall become d:..;.c and payabl e
to CITY upo~ demand.
The maximum amount payabl e undet" tf~j S l'.greernent far
pre· development expenses sh-'ill be Tw-enty Thousand Dollars
($20,000). In the event, fer any ~"easont the arr.Q\mt payable by
GRANTEE to any and all sources for prE developmefit expenses for the
Project exceeds Twenty Thousand Dollars ($20, OIJO) , GRANTEE s:-,all b'2~
solely respcnsible to pay all such excess expens~s.
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The loan proceeds under this Agreement shall be
disbursed to G~1rEE as follows:
4.3.1 Prior to requ~sting the disburSEment of
any loan funds, GRP..N'I'E'8 shall s'.;.bI1".it to CITY copies of all of its
contracts and subcontracts .... i tr: consultants covering work to be
paid under this Agreement. The cont.racts and SL:bcontract.s shall
clearly stat.; the .... ·ork to be performed and the basis of payr:tent.
~~!1 such costs shall be reasonable and necessary in or-der lO secure
site control, subsidies and financing approvals for tbe Project.
The PROJECT MA"."U\GER resen,res the right to disallow any cost be has
not appyoved in advanc;.
4.3.2 Upon the receipt of a .... '.titten req'.J.cst from
GPJL~E, payments will be made directly by CITY to authorizec third
parties provid~d the amOU;J.ls and te:;.::Tr1S of t:r~e pa::r'ments have been
approved in advanCe by the PROJECT MANAGER.
4,3.3 Paymem:: by CITY shall be made on a
reimblJrSernent basis of actual costs incurred. Requests for
reimbursement shall be made according to CITY procedures. With
each payment :cequ.est. GRAN'!'EE shall certify in writing that: al
the service~ havt been satisfactorily performed; b) the payments
are made in accordance ~ith the applicable contracts and
subcontract{s); and c} all funds ..... ere expended Oil behalf of the
P.coject.
SBCTION 5 ~ GRANTEE' s __ ;;;:LA..J~~~'l\'T OF WORK
As express condi~ions of acceptance of payment from CITY
under this Agreement, GRJI.NTEE agrees to perform the following
st;.aternent of ",'c,rk, in accordanCE: with all applicable requirements
and regulations of the federal Department of HO'.lsing and Urban
De.ve~opffient \ ilHU"'D~} and. the CDB-G-progr:a.m. inc.luding tr.ose
regulations set forth in Titl€ 24, Co,'5e of Federal Regulations
(~CFR·) Part 57"~ as arr,ended.
Wi th the funds provided under this ~~S'reement and the
Note, GRP...NTC:E shall pay for-pre development expenslBs, including
architectural, engineering and consulting fees, inspections,
environmental and toxic studies and tests, appraisals and other
simila:r pre-development expensE's whicr~ a.re reasonable and necessary
in order to obtain an opt ion to aCg'.lire aPr-oj ec"C site and to apply
for suitabl e federal and state h:)"c.ls ir:g subsidi es and publ i.c or
private financing to develop the Project. GRANTEE shall operate
and rnaintain tne Project as a permanent ren'':'dl hOClsing complex for
occupancy by low and very low income households at affordable rents
as defined by federal regu]aticns for the CDBG p.rogra.lll. Occup-ancy
shall be limited to households of which at least: one (1) member is
developmentally disabled according to federal regul;;.tiuns for the
Section 811 pIOgr:-dIT,.
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5 .. 2 .RECQRDS A,~IL_R?PORTS
GRANTEE shall maintain OIl a current basis complete
records, including bo<::)ks of original €:J.try. so;;.rce doc1.l.r.!enta
supporting accounting transactions, service records, a general
ledger, cancelled checks, tin'.e sheets, and r91at~d docl'!'''!",er.:ts i;md
records to assure prcper accounting of funds a!"~d performance af t be
terrr.s of this Agree.rnei:1t. GRAN'l'EE shall furnish aIJ-Y e;.nd all
information. and r€ports .... hich rr.ay be !:equired by CITY a:1.d c-rUD in
connection with this Agz:eement. GRA.".'·"'l'E£ shall turther perrrit
access to its books, records a:'.d accounts by tae represe::tatives
and eznplQyee;:;; of CITY and HlJ!) during regular b..lsiness hours" fur
th8 pUrpOSe of ip..vestigat ion or audi t to ascertain ccmpliance with
all applicable laws, regulations. rules and orders and for the
purpose of e\.-oaluating and mor..itorir::.g GRANTEE's compliance with the
provisions of this Ag~eement~ All such records shall be retained
by GR.ANTEE and made available to CITY and HUD upon request for
review or audit for a period of at leas~ thret (3} years follo~ing
the termination of this Agre~rnent+
5 . 3 PROG~'LINCOME
Pr~rarn income is defined urlder t.he laws a~d
regulations govern long the CD8G program, including under 24 CFR
Section 57u. 500 \a) • GRANTBE shall maintair.. separate account ins
records and bank accounts for any progriOl1r. income ge.nera.tr;>d under
t.his Agreement or from the Froject. GRAN'TEE shall rep'Jrt and
return all progrc:un income generated under this Agreement or frQIT.
the Prcject to CITY in accorda:::.ce with all CG3G and FrJD laws and
reg-ula;:ions I including but not limited to those set forth at 24 CFP.
Section 570.504. as amended.
5.4 VNIF.9.RM ADNINISTP-ATIV.!l ",!:Qt]IREMENTS
In connection with the terrns of this Agreement,
GRA.."""'I'EE sr,all comply with the Ur.ifc~. Ad:.-nini£f.:.rativ8 Req'..::."irerr.ent.s
for Nonprofit Ol-ganizaticns (GMB Circular A--JlO and atcachments).
Cost Pri~c~ples fer Nonprofit Organizations (aME. CirclllClr A-122: ar.d
attachments), the hlJD "cmn.'TIDr.: rule~ set forth in 24 Ci:-'R Part 85,
Audit Circula.rs A+ 128 end A-133, and any other applicable federal
regulations described in 24 CFR Part 570, as amended.
GRANTEE shall comply wilh the additior.al terms and
co:r..ditions of this .A.qreement and the federal ;:,ssurarlces set :forth
in Exhibits "B~ and ;;C". respectively, both of which e_xtJibits a.re
att.ached hereto and inco~pc·rat.ed. hereir~ by t~is reference.
The term of this AgLep_'Llent shall CQt1I..-nence an t_he date oE
its execution by CITY and shall expire an Decelnber 31. 1994. CITY
rray. in it.s discretion, extend the te.nn f<)r an adcitiona.l period
not to exceed one (1) year, but the PROJECT M&~AGER shall grant
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this extension only UP0!l the submission of wr-itter: E!vidence
accs}:'ta:Cle to the PF.OJECT .MANAGER that GP~'TEE haE;: :cna.de reasonable
progress in the implerr.entatic,n of the developmer.t oE the Proj eet.
If the PROJECT MA1~AGER determines tha:: GR.ANTEE has unreas.;;nably
de-layed development". of tr.e project, no request for extension shall
be g:-anted and all funds provided to GRA. .... "TEE und.:=r this Agreement
shall, at the opt.ion of the PRo..TECT r.'A"'JAGEP, and notwithstanding any
other pruvisions of this Agreement, become due and payable to CITY
upon demand of crl'Y.
Notwithstanding the fc'!."€going, either party may tend-rLate
tbis Agreetnent for con".'€nience, in accordance ...... ith 24 CFR Part 85,
Section 85.44. CITY may also immediately st.:.spend or-ter~rdnate this
Agreeinent, in whole or in part, if CONTRACTOR materially fails to
comply with any term of this Agreement r or with any of the rules;
regulations or provisions referred to herein. In such event, CITY
may also pursue any other remedies provided by law, incL..J.ding th':.se
specified ll.jder 24 CFR Part as, Section 85.43. Should this
Agreement be terminated for convenience or cause as described in
this subparagraph, all funds provided to GRANTEE shall, at the sole
option cf the PROJECT t'-'..ANAGER and notwi thstandicg any ot.her
provisiow;: of this Agreernent, becorrto:: due and pay,~ble to CITY upon
demand of CITY.
SECTION"] -}['JP. ___ RBSTRJC710NS
No::wit.hstanding any provisions of tr-lis Agreement to the
contrary, the provisions hereof are sL<bordinate to all current. and
future applicable laws, CDEG and other applicable regulatioIJ.s and
related hUD ad..'11inistrative requirements. In the event of any
conflict betwee~ the provisions of this Agreement and the
provisions of any cur-rent and future applicable laws, CDBG and
other applicable regulations or related HUD administrative
requirements, the laws, regulations or related adIninistro.t.ive
requirements shall contro~.
G.RP1ITEE covenants that it shal] comply ..... ith the
provisions of 24 CFR Section 57C1. 611 r as amended, cOrlcerning
conflicts of interest. Specifically, except for the use of CDBG
funds to pay salaries and clther related ad'1linistrative or perso:mel
costs, D';' person who is an employee, agent, consultant, officer or
official of GRANTEE ..... ho exercises or has exercised any functi':ms 0:::
responsibi 1 i ties concerning the activi ties under this Agre:e:r1E:nt. or
\.:ha :is in a pOSition to participate in a decisionlnaking process or
gain inside information 'Witr. regard to such activities, Inayobtain
a persor.al or finan-::ial interest or benefit from any such activity,
or have an interest in any contxact. su.bcontract, or agreement with
respect [heret Or or the proceeds thereunder, either for him or
herself or for those with .... ·hom he or she has farnily or-'business
ties, during his or her tenure or fer one year thereafter.
interest
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GRlJ>l'I'EE
and shall
further covenants that it preSEntly htiS no
not ac~~ire any interest, direct o~ indirect,
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financial or otherwise, ..... hich WOL:ld conflict in any rna.nner ,="r
degree ",,-it.J""l. the f.erfo~nc,= of the services he:.:€und-e1.". GRA. .... '"TEE
also covenants tha.t., in the periorI'llance of this Agreement. no
subcontractor cr person baving sucb interest shall be emploi'ed by
GRANTEE. In additiop., GR.~"ITBE certifies t-r.at no one -wh,:) has cr
will have any financial interest under thjs }o_greement is an officer
or employee of CITY.
Tn€. terms of t_his A9r:eeffie,~t st--.all in nc-. '-I4ay be c-:..nstl.l.'-€d
to create a partnership, joint venture cr any other join::::
relationship between CITY and GPJL~~EB.
SECTION 1 Q -INDEPENDENT CONTRb.C'I'OR
GRANTEE, its employees, officers, and agents are
independent contractors a.nd not employees of CITY. Furthermore.
GRANTEE and its officers, agents, and employees shall at no time
represent the!nselves to be or hold thert'.5elves out as emplayee8~
agent~ or other than independent contractors of CITY.
SECTnIDN 1J"_ -ASSIGNMENT PROHIBITER
This Agreement is for the personal services Qf G~~~EE
and shall not be assigned without t.he express prior written consent
of CITY. to be evidenced by resolut ion of t.he City Council. A!1Y
attempt t.o do 90 otherwise shall be void and, at the sole
discretion of CITY, a defaul t of the ter!'!'.5 of this 1'.grCEr:1€:iJ.t and
the Note.
'The terms, covenant.s, and conditions of thi.s AGreement
shall apply to, and shall bind, the t~eirs, successors, executors,
administra.tors, assigr:..s, and Sub::o:ltrClctors of both parties.
No payment, partial payment, acceptance, or partial
acceptance by CITY shall operate as a waiver on the part of CITY of
any of its rights under this Agreement.
SECTION 14 -COSTS ANQ_ATTOF~"N'EYS' FEES
The prevailing pa.r"ty in any ar:ti~n l:,.rou.gh:: to enforce tho:
terms of this Agreement or aris in3' OLlt of this AgreemE":::r"lt may
recover its reasona1:·1e costs and attorneys' fees expende-d in
connection with such an action froIT. the other party.
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All not.ices heY'eunder shall be gi-.ren in 'WritJng and
~:iled, post'3.ge prepaic, by certified mail. addressed as fol~of"'s:
To CITY:
'.1I~ith a
copy to:
To GR.A.VI'EE:
Office oE the City Clerk
250 Hamilton Av~nue
Palo Alto, CA 94301
Director ~ Department of F1ann:ing and
Community Enviror.rnent
City of Palo alto
250 Hamil ton Ayenue
Palo Alto, CA 94301
Atten~ion of the PROJSCT DIRECTOR
at the address cf GP...Af\.'TEE recited above
SECTION 16 -ALL CQJ[{::.NA.v:r_S ARE CONDITIONS
All provisions of this Agree",.er.t are ~xp.ressly me.de
conditions_
This document, together 'With the Note referenced herein.
represent the entire agreement between CITY and G~~EE and
supersede all prior negotiations. representations~ and agreements,
either written or oral.
This ao::ument rr.ay be ame::1ded only by writte<l instrume::1t~
signed hy both CITY and GRANTEE_
Time is of the essence of this Agreement.
IN WITNESS WHEREOF. the parties hereto have ex.::cuted this
Agreement thE day and year first above 'Written_
ATTEST, CITY OP PALO ALTO
By:
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APPROVED AS TO FOP.M ..
APPR-OV"ED:
Director of Fina~ce
Manager r Real Property
Direct.or of Planning and""--
Community Environment
APPROVED AS TO AOOIT l\NI)
ACCOON'I'ING
City Auditor
Attachments:
BXHIBIT "A": PROMISSORY NOTE
EXHIBIT "B":
EXHIBIT "e":
EXHIEIT -n ~ :
ADDrTIO~~ TERw~ ~~ CO~vITIONS
FEDERAL ASSURANCES
INSURANCE CERTIFICATES
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EXB"IBIT A
PROMISSORY }lQTE
$20,000.00 Date:
Pal 0 ~A-:IC;t-o-,-::C:-.. -;l:-i;-forui a
FOR VALUE RECEIVED, M:ID~PENINSULA ROUSI~G COAL!TION, a
carperation organized una,;r the Nonprofit Public Eenefit
Corporation Law of the Stat~ o~ California {~BORROWER~), p=orn~s€s
to pay to the order of the CITY OF PALO ALTO, a charter city and a
m'...lnicipal ·::;orporation ("CITY ~), the principal sum of 'lwenty
Thousand Dollars ($20 1 000.00) at· the office of Revenue Collections
of the City of" Palo Alto, 250 Har:1ilton Avenu·,:" P. O. Box 10250,
Palo Alto, California .94303, or at such other place as CITY may
from time to time designate, with ~o interest fro." the date of this
PROMISSORY NOTE ( the ~Note·), until the principal sum hereof is
paid as required hereunder or as required under the agreement
referenced below.
7his Note is l!iade in connection with an agre.;ment
entitled "AgreE'ment Between t.he City of Palo Alto and the Mid
Peninsula Housing Coal i tien to Assist With Pre-Develop!T1ent Expenses
for a Permanent. Housing Complex Fo!:' Individuals With Deve.lopme!1tal
Disabilities· ( the 1IAgreement"). The Agreement provides thi5.t
BORROWER is the reC'_ipient of certain federal Community Development
Block Grant ("CDBG") funds designated fer certain cost.S, includir:g
archi tectural, engineering and consl)l ting fees I inspections,
environmental and toxic studies and t.ests, appraisals and other
related pre-development cests n'E:'cessary to acquire a project site
for the development. of a low income housing comp1ex for adults with
devElopment",l disabilities (the lIProject-), and to apply for
suitable subsidies and financing to develop the Pr-vj ect.
As s~t forth in the Agreement. any arnm.::r.ts advanc-ed under
this NOLe shall, at the option of CITY, become immediately due and
payable upon the occurrence of the earlier of a!J.yof the followi:::tg:
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(a) EORROWER' s failure to comply witb the terms o~ the
Agreement;
(b) BORROWER's unreasonab1e dE'.lay in develop::nent of the
Project, as set fc!'"th in Sectior.. 6 of the
Agreement; or
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( c) The termination of
ccnvenience .s s set
Agror:emer:t:.
the Aqreement for
for-th in Secti')n
caus-'2 or
G 0",= the
Notwithstanding the foregoing, as se~ forth in Sectior:i.
4.1 of th,= Agreem8!lt, upon close of e8cro ..... for toe acquisition of
the site for the Project, the funds provided under this :fete and
tr.e Agreement shall b€ incorporated into a r::e ... · loan, together witr.
an.y other fu.:r.ds provided by CIT"i, for thE pl.,acnase of the Ei te or
the development of the Project. The ne .... loan shall be s€cH':."ed by
a deed of tru:!=!t on the Proj <zct in favor of CITY, to the exte!1t
allowed by any other funding SGurce BDRROWER may 'ltilize to
p'lrchase the si te or develop the Proj eet.
BORROWER, all:" endorser ot this NCJ'ce. and any others who
may become liable for all or any part of the obligations evidenced
by this Note, may prepay all o~ any portion of the principal sum of
this Note~ without penalty.
BORROWER, any endorser of this Not-e, ar:d any others who
n~y become liable fo~ all or-part of the obligations evidenced by
this Note, or this Not-e as amended, hereby individua1.1y ..... aive
demand, presentment for payment, derr.and and protest, notice of
protest. demand, and of dishonor and nonpayment, and consent to any
number of extensions or rer.ewals of time hereof. Any such
extensions or renewals may be made without notice to any of the
oblig-ated parties and withol.1t affecting their liability. The
pleading of any statute of limitations as a defense to any demand
against BOR.~OWER is expressly waived by BORROWER. If BORROWER
consists of more than one persDn or individual, each person or
individual shall be jointly and severally liable under this Note.
If ar.y defaul t is made r.creuI".der. BORP.CWER promises to
pay reasonable attorneys' fees a:""d ccsts a ... d exper.Jses inc'Jrred by
CITY in cO:"!r!ection .. dth any s:.lch default or any oti"1er-action or
other proceeding brought:. tc enfcr"..::e any of the provisions of this
Note. CITY's right to such fees shall not be limited to or by its
representation by staff attorneys of CITY's Office of the City
Attorney, and such representation shall be valued at the cust.omaq'
a.'1d reasonable rates for private sector legal services.
The relationship of CITY and BORROWER evidence1j by this
Note shall be deemed to be one o~ creditor a."ld debtc~, and r.ot of
partnership or j Qint venture.
This Note may not be m~dified or amended, except by an
instrument in writing which express~s such int0ntion of the parties
sought to be bOUIld thereby. and such \Io-riting sh-311 be firmly
attached to thi3 Note and made a pa .. rt hereof.
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A11y fail:.lre of CITY cr other [wIder to exercise an.y
rights ~.:.nder this Note shall no~ constitute a ..... aiv-et" of sl. .. ch rights
or of any other rights under this Note.
This Note '3hall be governed by and construed in
accordance with the laws of the Btate of California.
To the extent assigl1l1'.ent of this Note is pen;,itted by
CITY, the terro~ of this Note shall apply to. inure to the benefit
of, and bind all of the parties thereto, their heirs, successors
and assigns.
EXECUTED EY BORROh~R O~ Lhe date first above written.
Phone:
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ADDITIONAL TERMS AND CONDITIONS
A. Nonprpfit Status
GRAJ.i'rEE
defined
arne-nded,
shall rna.int~ir. its :l.onp"!:"Q!:it corporate sta~us
"by Calif::lrnia Corporat ions Code Section 506(:',
during the ter~ cf this Agree~ent.
S. Indemnit:icatj.on
as
as
GRANTEE !Shall pro':.ect, indeTTl .. llify r defend and hold t.armless
CITY from and against any and all clairr.s, actions, s"<.lits,
liability, charges, and judgments \Ilrlatsoever that arise out
of, or are caused by. GRA.'fl'EE's performance Or' nonperf orm2!nc"2.
of the services or subject ~atter called for in this
Agreement.
GRANTEE at its sole cost shall at all tirr,es, during the term
of this Agreement, r.laintain comprehensive general liability,
automobile liabi 1 i ty and per;:o~al i!1j'..lr}· a7'::.d property
insurance with per occurrence lind t.S of not less than One
Million Dollars ($1,000, ODD). insuring against all liability
of GRANTEE and its authori~ed representatives arising o~t of
or in conn~ction with GRA..,\TTE~·s performance or failure to
perform :.mder this Agreement. GRAl'ITEB shall <:1.1 so maintain
workers' compensation insurance as requi red by law. S\.O.ch
insurance shall insure performance by GEA1,,n'ES of the indemnity
prO"J"isions of Section B of the Additicnal Terms and Conditions
hereof. CITY r its officers, agents and employees, shall be
named as additional insureds under the pol icy or pol icies. If
said policy or p::ll icies are cancelled o.c changed during the
term of this Agreel'l"Ient in such a Ina:1r,.t;'r as affectS' this
ceverage, thirty (3D} d3.ys advance \Arritten notice t.~~erec:
shall be provided to CITY. GRANTEZ shall d~~liver certificates
of insurarJce evidencing all such coverage in a form
satisfactoI'j" to CITY's Risk M.:tnager prior to execution of this
Aareement. Such certificates shall be attached to this
Agreement as Ex.. ... ibit II'DII' and sha11 be incorporated herein by
this reference.
1. GRAt""'ITEE. shall d,':)C)";"'T1ent all costs by maintaining complete
and a,:;curate records of all finar:!::ial transactions,
including, but not limited to, contracts, invoices, time
cards I cash receipts, vouchers, can·::elled checks I ba.nk
statements, and/or other official documer_tatic-n
evidencing in pn .. )per detail the nature and propriety of
all crJa rges .
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CRANTEE shall b.:; Ii,a.ble for the r~payment of disallowed
costs. Dit:!allowej c,:.sts rr.a.y be ident ified thro:lgh
audits, monitoring, or ot.her BOL:rce:8. GRANTEE: shall be
afforded the opportunity to respond t.o any a'overse
findings which may lead to a deteL~ination of disallowed
cost.s. CITY sha.ll mak.e the final determination of
disallowed costs.
3. GkA:.V-rEE a.gree3 that .. at any time d1.:>rir.g nC'I."':!'al busi:;.ess
hours, and as orten as n-ay be deemed necessary, CI~Y
a:'ln/or any duly authorized representativo:s shall, until
e.) . .-piration of: (a) three (3) years after final pa:y;:nE:!:1t
under this Agreement; 0:::-(b) such longer period as !nay be
prescribed, have access to and the right to examine all
of its records 'With respect to all !t'atters covered by
this Agreement. GRA..-r.rl'EE also agrees that CITY, or any
duly authorized rep;rese-nt.atives, have the right to audit,
examine and make excerpt s or !::ranscripts of and from,
such records, and to n'1.ake audits of all contracts and
subcontract5 1 invoices .. payrolls, records of personnel,
conditions of employment .. materials and all other data
relating to matters covered by this Agre~ment.
E~ G.n8r&1 Provisions
1. This Agreement shall Dot be construed or deemed t.o be an
agreement for the benefit of any third party or parties,
and no third party or parties sha.ll have a.ny clairrL Cir
right of action hereunder fo~ any cau~e whatsoever.
2. In case any cne or more of the prov-isions contain'C,d
herein shall, for any reason, be held invc.li,:j .. illegal,
.or unenforceable in any respect .. it shall not affect t.he
validity of the other provisions which shall rEr.~in in
full force a~d effect.
3. PnGer no circu."nstances shall G.?ANTSE have the a;J.th::.yi t}'
or power to pledge the credit of CITY or incur a~y
obligation in the na:.ne of CITY +
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EXBIBIT ·C·
""DF:RAL ASSUlIANCES
A. GP~7EE hereby assures and certifies that:
(1) It possesses le'3al authority to receive federal grant funds
and 1':.0 carry out the propo.aed progrc3m{s) assisted thereby.
(:i.) Its governing body has duly acquaint-2d itself ...... ith the funds
application. including all understandingE'o and as'=;UraT!c:'es
contained therein, and directed an.oj au~horized the perso!"l
id~ntified as the official r"?presentative of GRPNl'EE: co
provide such additional information as may be required
hereunder.
(3) It consents to accept the jurisdiction of the federal or
California courts for the purpose of eDforcement of its
responsibilities imposed hereund~r.
(4 ) The prop:lsed pr0'::Jrarn (s) t~as been deve:loped so as to qive
maximum feasible priority to activities -wr.icr. "\I.·ill ben8fit-lo·""
and moderate income persons.
(5) The receipt of a::J.Y progra.rr. income.. as defined in 24 CFR
570.500(a). as amended 1 gen'2.rated by the use of grant funds
under this Agreement J \IIi 11 be recol·ded, r"eported and returI:.led
to the City of Palo Alto (1!GRA,.l>ITOR"') "in accordance .... ith 24 CPR
570.504, as amended.
(6) rt will comply with the provisions set forth in 24. CFR 85+43
and 2-4 CFR 85.44 regarding the suspension or terrnination of a
grar.t agreement for cause 0":' convenienc~.
('7} It will maintair~ and z"etain all books, aocl..L'ncnts, papers,
fina~cial, or other records which are perticenc to the grant
for a period of not less than tnrEE (~) years follo~ing tLe
expiration cf this Agreement. G.R..AJ'>j'TEE will al 1 0"'" GRANTOR and
the U.S. Department. of Housing and Urban Development~ t.hro;:gh
any authorized representatives, access to such documents,
papers and re~ords.
(a} If GRAh"TE£ is a primarily religiQus er.tity. in connectir:m with
the provision of services required under this Agreement,
GRANTgE agrees to comply with federal regulatio;-u:; specifio:-o in
24 C'rR 570. 2{){) (j). GRANTEE further:
raj ",ill not discrimir.at e against any emploj.'f.;-e or app1 icar:t.
for employment on the basis of re1igiorl and will not
limit employment or give pre.ference in emploYlnE:nt to
persons on the basis of religion;
(b) .... ill nat discriminate d9ainst any persorl applying fer
such services on tbor: basis of religiDr. and .... 'ill n-:;,t lirr.:i.t
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such ~enrices or gi \Ie preference to persons on tho: ba3lis
of !:'eligion;
(c:) will provide no religio'...l.s ir.struction or ,:ounseling,
conduct no r~ligio'Js ~orsr~ip or .::er'\dces, E:ngage in no
rel igioU9 proselytizing, and exert nc other reI ig:ous
influence in the pr-ovision of sucb ser.rlc,=,s; and
(d) 'WiIill E'n~u're tr..at the portion c-f GRA."-"TES's facility 1.l3ed
to previae t-he services Shill 1 contain n;:' religi<:ll.ls
s}rmbols or cecorations r othe:r than th·.:;se perrnanently
affixed to or are part of the stD!ctur~.
B~ GRA."ITEE' also hereby assll..!res that it shall:
(1) CcmpI), with ~he nondiscrimination proYisions of p"J.blic law 88-
352 (Title VI of the Civil Rights Act of 1964}, and the fair
r.ousing ·provisi~ns of public lew 90-284 (Title VII! of the
Civil Rights Act. of 1968) and Executive Order 11063; as
~~ended by Executive Order 12259, with re5p2~t to sale, lease
o~ tra.nsfer o~ land acgtlired r cleared or i!':'Cproved with grant
assistance.
(2) Comply with the provisio:1s of SE'ction 1050 of Title I of the
Housing and Community Development Act of 1974 which prohib:!t
dis..:.rimiLation.
(3)
(4 !
Comply with the Fair Housing Act of 1989 (42 USC 3601~2C),
-which prohibits discr-iminatory housing pract.ices based on
race; color, religion, sex, national origir:, disabilitj~ or
familial status.
Comply with the DaviS-Bacon Act, as amended, Federal I,abor
Standards provisions with respect to all construc1:ion
c,:)ntracts in excess of Twa ThO"l.lsand Dollars ($2. OO{)) •
r5} Comply ..... ith the req'.;irens::-.. t c!: the F}ood Disaster:-Prc':.e(:tion
.~.ct of 15073 and the !;at:i,:::;r.ill Flood Ins..::::-ance Act of 1S-6S
applicable to acqulsitiQ~ or c~nstr~ction projects.
(6) Comply with the relocation and displacement reguiremer.ts of
the Uniform Relocation Assistanr:::e and Real Property
Acquisition Policies Act cf 197D; as amended.
('7) Comply with proviSions of ExecJ.tive Order 11246, as arner.ded 'by
Executive Orders 11375 and 12086, on equal employment
opportunitir:s and affirrr..a~ivE: action rel-a.tive to enployees a!1d
appl icants and nonexernp':. contI-acts and subccnera,::ts.
{8] Comply with 42 USC 4831f,b). and 24 CFR 570.605 and 24 C!:'R Part
35 of the HUD reGulations, prOhibiting the use of lead-baso::d
paint in the cons:.ruction or rehabilitati:Jn of residential
structures.
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Comply .... itt .. the provisions of 24
the utilizatio~ 0: debarred I
contractors or subrecipierrts.
CFrt Pa::.-t 24 .... hich pro!iit.i.t
suspended, or jl1eligible
(10) Comply ..... ith the uniform ad..."!1ini.strative .req'...:.irerr.cnts and ccst
principals of 24 CFR :Part 85 and OMB circ'..11ars A-87, A-110, A-.
~22. and A-128 and A-133 as they relate to the acceptance acd
use of federal fur.ds by :;.onprafit organizations, and as ot"her
vise may be requ. red under 24 CFR 57Q.502, as ~ended.
(11) Comply '"ti tn the req-Ilire:nents of 24 CFR 85.36 ar:d QMB circular
A-110 \Idth respect to conflict of ir:::te1:""est, and as otherwise
may be requ:ired !,lnder 24 CFR 570.611~ as arn~nded.
(12} COl'i\ply ...,ith the provisions of the Hatch Act which p.l-ohibi t the
use o{ fe,J:eral funds for lobbying activities.
(13) Comply with Section 319 of public law 101-121, which generally
prohibits recipients of fede.ral contracts. grants or loans
from using approp:riated funds for lobbying the eXEcutive or
the legislati-,re branches of the fe':leral government in
cOIl..?J.ection with a specific contract, grant Dr loan_
Accordingly f GRANTEE hereby certifies to the best of its
knowledge and belief, that:
(a} No federal appropriated funds have been ,paid or will be
paid, by or en behalf of GRANTEE, to any person for
influer:cing or attemptins to influence an officer or
employ~e of any agency, a Member of Congress, an officer
or Er"ployee of Congress, or an employee of a Me!t'ber of
Congress in connection with the awardi ng of any federal
contract. the making of any federal gl'ant. the making of
any federal loan, the entering into of .:my cooperative
agreement, or tbe extension, continuation, renewal.
amendment. or m:x:U ficatio:J. of any federal cor:tra::t,
grant, loan. or cooperative o..greerr.enti ar"~d
(hi If any funds other than federal appropriat.E!d funds have
been paid or will he paid to any person for influencing
or attempting to influence an officer or employee of any
agency. 3. Member of Congress, an officer or employee of
Congress, or an employee of a Member of" Congress in
connection with this federal contract, grant, loan or
cocpe~ative agree~ent. GRANTEE shall complete a~d subm~t
Standard Form-LLL, "Disclos-.:r-e Farm to RepQrt Lobbying"
in accordance with its instructions.
(4) Co;nply with the Age D.iscrimination Act of IS7S, as amended,
which states that n0 persons in the United Sr-J.tes 5f'.all, on
the basis of age, be dt"!n~ed the benefits of, or be subjected
to discrimination under, any progr-am or activity r€ceiving
federal financial assistance.
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(15) Comply \l'ili';. Section 504 of th~ Rehat:,i.lita~ioL. Act ot
which prohibits dis,::rirninatior::. against people
disabilities 1:'1 any feder-ally assisted program.
1973.
with
(16) Comply with the ~ericans with Disabi!ities Act of 1990. as
amended, a Tld implemc>nting regulations ... ,-hen publisb.ed_
(17) Transfer to GRANTOK any CDBG funds on hand, and any a~counts
receivablE' attrihutc;.ble to the use of CDBG funas, at the timoe
of expiration of this Agreement. In addition, GRANTEE shall
ensure that any real property '"lnder GR.AN?EE' 5 control that was
acquired -or improved in .....-hole or in F"a:c-t with CDBG funds i~
excess of $25,000 is either:
{a) used to meet one of the national objec.tives in 24 CFR
570.208 unttl five years after expira::ion of this
Agreement, or for such longer period of time as
determil:.ed al)propriate hereunder b)' GRANTOR; or
(bl is disposed of in a manner which resul ts in GRANTOR being
reimbursed in the amount of the then current fair market
value of the property less an:t portion thereof
attributable to expenditures of noc-CDBG funds for
acquisition of, or imp~ovement to, the property.
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HAND DELIVERED
21 June, 1993
Mayor Jean McO>wn and
Members of the Palo Alto Cit;,,, CouncU
250 Hamilton Avenue
Palo Alto, California 9430 I
A Palo Alto P~nt Group. working with L'le Mid-Pen[nsu!J. Housing Coalition to dc\'elop
affordable, permanent, housing for a broad range of de"'elopmemally disabled adults has
prePLred a Statemen~ of Suppon for you. consideration. The statement was prepared at LlJ.e
urging of two council members, Joe Simirian and Liz Kniss. Our des[re is to inc~ude some
vernon of this statement, as evidence of Ciry Council £upport. in our applicatio!J to HUD
fQC Sct.'rion 811 funding for subsidized rental housing ir1 Palo Alto. The application must be
submitted to HUD by 4:00 PM, July 8th.
This packet includes the following:
(1) A CoverL-etter providing an ov-erview of our Housing Project and ils objectives
{2) Atta!: hIDent 1, a Concept Paper. which outlines our goals for affordable housing
in Palo Alto
(3) Attachment 2, a representative Statement of SupPOrt. which we hope you 9,111
discuss at Li.e next City Council meeting
We urgently request your consideration of the enclosed Stalement of Support. One of the
criteria for acceptance of a Section 811 project by mID is e'tri.dence of local b3sed support
and the potentia] availability of funding outside that provided by HUD.
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:JUdith F. Richardson
for tht:: Palo )'Jlo Par~nt Group
(415) 322 1291 (nome); (415) 859 2888 (work)
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21 ;u:ae, 1993
Mayor Jean McCown
and Members of the Pelo Alto City C.ouncil
250 Hamilton A venue
Palo Alto. California 94301
~ar Mayor McCown and Ciry COl.lnC=J Members,
'This letter comes to you frcom a group of concerned Palo Alto parents of young adults
'Q,ith a wid~ variety "f de\'elopmel'Hal disabilitie~. We sc·e a need in the Palo A.ho
community for permanent, affordable, and appropria~c housing for this group of adults
and we ask you to lend your support for ou! proposal to develop such housing.
Vole are enclosing.a one-page. concept paper which outlines in bro.1d terms our goal,
which is to secure HUD Section 811 funding to provide subs.idized rental housing in Palo
Alto for a broad range of developmentally disabled adults. We have also enclosed a
sample draft of a letter of support for your consideration. Provision of such a letter is a
key element in securing fed{:ral funding for this project.
Several factors underlie the groowing need for independent liviIlg housIng for di:;3bled
adults. Notably, in b'1e past twenty years the expectations among this gTOUp for increased
per5O:1al independence and integration into the life of the community have ri~n greatly.
Disabled youngsters are being educated, trained, and encouraged in our own ~ublic
school system to develop their academic, vccati.:mal, and social capabilities to the fullest.
Fun inclusion in the least restrictive classroom environment is becoming tlle standard.
Transition planning is now a federally mandated part of each sroldem's education in high
school, providing long rango: planning for success.ful adul~ life. Increased integration ar"Jd
inclusion have res.u1ted in changing attitudes and greater acceptance ",~~thin the
cornmuruty. Clearly. appropriate a.."'ld affordable housing is a key component in the
realiution of inde~rld~m adulti100d by tIl(~. disabled.
The fact is that the availabirity of sush housing in OUT local area has not kept up with the
increasing nero. According to client recoro~ of the San Andre.i!!i Re,gion:li Center, the
~tate-funded advocacy agency for the developmentally di:mb1e.d, there are at least 67
developmentally disabled adults living in Palo Alto and 403 in the north Santa Clara
County L'"C".a. A.-. additional number of others whD are nO{ SARC clients could also
qualify for the housing we propose. The neares. ;apartment facility designed for this
populath)n is Vivie-nte n, a 29 unit compiex in South San Jose housing 36 resider.t:.. This
fadlit:.· is administered by Housing for Independent Pe-ople. Inc., whkh reports a current
waiting list of i5. A similar prvject presentIy under construction in Belmont and
administered by Peninsula Association for Retarded Children and Adults will house 24-
30 residents and has a. referrallist of over 80 applicants. The City of PaJo Allo Housing
staff repom that no such federally subsidlzed hous!ng for the developmentalJy or
physically disabled presently exists in Palo Alto. As parents, we are concerned about this
gap, as it direclly affects the opportunity for our children and other disabled adults to
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contnu.e to r:.side in their own community, which provides such a high q'J.1lity of life for
its re$idents.
In the past few nxmths we have had e:lcouraging dis.cussio:ms with
?o>fid Peninsula Hou'§ing Coalidon (!-,1PHC" a local, non·pwfit huusing developer with a
successflll, record of developing housing for tile disabied on the Pcr.illsula. We have also
met with City of Palo .iJto Hous;ing staff members and these discussions bave indkarcd
the feas~bility and desirability of the project we propose. Neiilit':r a sire nor financial
needs have yet beeI1 identified, although lr.vc:stigation ofpvss~ble sites and efforts to
prepa.re a HUD grant appricaticn ha .... e been initiated by MPHC. ';Ole understand that any
site purthases would be subject 10 all City planning re.'lew regulat~ons, Alscr, this project
has be.en ide"tified by City housing staff as fitting within the Ciry's Compreher.sive
Housing and Affor.lability SlTategy (ClJAS),
Tbank you for your consid.eration of this request Your suppon is cnldal to the
realizativn of this goal.
Sincerely yours.,
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Christine A, Segerhammar,
1165 Harker Ave" Palo Alto, CA 94301
for the Parent Group
Ruth Maitless, 3437 Kenneth Dr., Palo Alto, CA 94303
Stan and Melinda Parry, 2020 Cowper St., Palo Alto, CA 94301
Judith Richardson, 2503 South Coun. Palo Alto, CA 9430 I
Nancy Strausser, 4178 Wallis Ct" Palo Alto, CA 94306
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Attachment 1
Palo Arto Parent Group Concept Paper
Housing lor Developmenlally Disabled Adults In Palo AIIO
Vw'e. a group cfPaltJ AI:o parentS of dis-able-..d yOl:ng adults, beli("!ve there is a need in the
Palo Alto area for affordable, perrnanenl housLn.g 1n a safe and Sllpf'G • ..ive envliunment
where adults with a bro,cl_d range of devdopmental disabtlities can lead fu.Il. indepc:ndent
lives. We intend to ~ure an appropriate arno!.!nt of land in Palo Allo for a.i. apartm:::m
buiki.L.l.g or rental complex. wuli up to twCrHy·fCUI (2~) low-inco,-rJc units and common
areas suitable for use in trai.ning residents in [ndo::pendent living ski!1~ and as a center for
tenant social eve:nts.
In COl'ljuncticn with the Mid-Peninsula Hou:;ing Coalition (1'.-1PHC), a nonprofit housing
developer based tr. Palo Aho, we an: proposing to develop rentll housing to serve
developmentally disable;:l adults in Palo Alto. MPHC has. developed approximately 1600
units of housing serving low-income families, seniors., disabled and homeiess persons..
MPHC will be seeking a Section 811 SupporJve Housing Capital Adva."1ce from the
DepartmMt of Housing and Urban Development as well as a commiunent for a Project
Assistance Contract which would provide renLal subsidies to tenants of this project.
Appropriate sites ~ potentially avail:!ble in Palo Al:o and \iii': are LnVes.tigatiJ."1g thetr
feasibility. To ensWl: tlle affordability of this project M?HC will be requesting financial
assistance from the City ofPa1o Alto's through their-Community Development Btock
Grants (CDBG) and CommercisJ Housing Reserve Fund.
Although we have not yet reached me arcnitectural design phase, it is our plan that the
project will have a mix of studio, single, and double bedroom apartments as w~D as
common kitchen and meeting areas suitable for trainlng a.nd recreation. w~ .mticipate
that one apartment will be set &side for a live-in manl!ger~faci1itator sirmlar to regular
apartment complexes.
Th~s project will be managed by II suitable nonprofit organi.:.ation with experience in
low~income housing management and an experienced Services Provider that Mil prodde
e-.ducation. counseling and advocacy programs fo::, the ten;lllts. Tr.uning aIld .o;uppo:t will
be provided as needed to tenants to deveiop the necessary skills. and attitudes fer
independent living and work.
Our goal is affordabte. housing for developmental~y disabled aU\llts. Howe\'er, thes.e
adults need housing wich easy access to public transportation, opportunities for
recreation, and a safe accepting community. Our yOUllg adults have spen! most of their
lives learning. playing, and 'horking in Palo Alto. The)' know that Palo Alto can provide
this unlql!c community environment
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To:
Reference:
At:..achmem 2
Draft Statement of Support
Jayne Hulbert Humphrey
Housing Development Division
U.S. Department of Housing and Urban De .... elopment (HUD)
San Francisro Regional Office, RegLon IX
4:50 GlJlden Gate A venue
San Francisco, CA 94102-3448
Proposal Requesting Section gIl Funding for L'1e Devfiopment of
Housing for DeyelopmentaU,' Disabled Adult.; in Palo Alto;
Mid-Peninsula Housiflg Coalition Spon&o:-
Dear Ms. Humphrey:
The Mayor and City Coun(:L of Palo Alto strongly support the development of special needs
housing for a broad range of developmentally disableJ adults who live and work in ti"!e Palo
Alto area. We urge the Department of Housing and Urban Development (HiJD} to approve ll1e
Mid-Peninsula Housing CoaIitio[1's (MPHC) proposaj for development of pennanent housing in
Palo Alto for developmental I)' disabled adults. The City of Palo Alto has long recognized its
responslbilhy to provide affordable housing, and \:nows that the supply of such housing for
developmentally di2bled adults does not now meet the demand in the North Santa Clara County
area. We are committed to working with MPHC, their parent advisory group, and HUD, to
develop ~ousing that meets the needs of t'r-tese citizens. This type of project has alread}" been
identified by City Staff as fitting within the City's Comprehensive Housing and AffordabiJity
Strategy (CHAS).
A recent, in[ormaJ survey documented t.he need for affordable housing for de\,elopmentally
disabled adults who live or work in this a..o-ea and caTllive independentiy. TIle San Andreas
Regional Center {SARC) alone provides s.enrices, including training for independent li...-ing. to
over 400 developmentally disabled adults in North County. The project proposed will provide
housing to an even broader population than is seen by SARC. Presently lhe nearest affordable,
pennanent housing site in Santa Clara is in San Jose. It bas 29 completely subscribed units with
a waiting list of 15. A similar project, recently completed in Belmont, San }'Iateo COUrtty.
reported an 8O--person referral list for 24-30 openings, and had to cease accepting applicauons
beyond this number. Appro,..imately a third of the 70 developmentaliy disabled a.dults who
panicipate in a social club sponsored by the Palo Alto Recreation Department have been unable
to find affordable, ~i':inanent housing anywhere in the &y Area outside their family homes.
The City of Palo Alto has not yet idcnllfied a site, nor the exact tiilaIlcial needs, required to
support the development of housing in Palo Aho. Tne City Staff have supported investigation
of possible sites, and understand effort.<. to identify a site have been initiated by MPHC. Ar.y
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Attachment 2
Drat'.: Statemen: of Suppon
site purchases ,",'iL1 be subject to all city planning revie ..... ' regulation<;. as. appropriate for this
hO!lsing project. The City c.an provide site and zoning expertise as necessary to ensure the
selection of a sile and development of h')using that m~t u"le nee.ds of the identitied population,
and alSo:! fit into the broader Palo Alto community.
The City Council re--...ognius that the su-ccess of this project will depend on financial as wen as
moral suppon from the Palo Alto community. The City Staff h2.S. approved slJme initial funulng
rn the amount of $20,OCO for ~lected predevelopment costs. Additional CHy fundii'!g may be
available when the precise need i:s documented and the project plans are approved. Two local
sources for tbese additional funds are th: Community Development Block Grants (eDBG) and a
Commerdal Housing Reserve, Palo Alto will have over $2.1 Mimon available from these
sources in the next fiscal year (July I, 1993).
The City CouncU is particu1arty pleased with the evidence of local suppon fonn the parent
advisory group fonned to initiate work: on this. housing project The parent advisor) group
selected 'MPHC after e:'ttensive discussions with them and other local developers of affordabre
housing. The City CoundI is also familiar with otl1er p~ojccts like this de\l'e1oped by ~i!FHC
and finds thelr record for implementing special neerls housing projects ex.emplary. rne Oty
Council of Palo Alto war.ts to ensure HUD and the City is committed to supporting MPHC,
their parent advisory group, and the adults who require housing, and \\OiU work cooperatively to
make sure this project is a. success.
}.iayor Jean McCow~
For the Palo Alto City Council
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