Agenda packet — East Palo Alto City Council, February 6, 2024 (part 2 of 2)

 Meets and confers with contractors, engineers, developers, architects, a variety of outside agencies, including regional and regulatory agencies, and the general public in acquiring information and coordinating utility matters.
 Serves as a liaison for the department to other City departments, divisions, elected officials, outside agencies, and the public; attends meetings in various locations; provides staff support to commissions, committees, and task forces; participates in community events and workshops that provide public information regarding departmental programs, projects, and services; explains and interprets departmental programs, policies, and activities.
 Provides highly complex staff assistance to the City Manager and Public Works Director; serves as a resource to City staff and consultants related to assigned utilities; conducts a variety of organizational and operational studies, special projects, and investigations.
 Prepares and presents concise, accurate, and compelling staff reports, presentations, graphs, charts, and other necessary materials and correspondence related to assigned activities and services to various personnel, boards, City Council, commissions, committees, and boards.  Attends and participates in professional group meetings; stays abreast of new trends and innovations in utilities; researches emerging products and enhancements and their applicability to City needs; monitors changes in regulations and technology that may affect utility programs; implements policy and procedural changes after approval.
 Responds to difficult and sensitive public inquiries and complaints and assists with resolutions and alternative recommendations.
 Performs other related duties as assigned.

JOB-RELATED QUALIFICATIONS
Knowledge of:
 Principles and practices of employee supervision, including work planning, assignment review and evaluation, discipline, and the training of staff in work procedures.  Principles and practices of leadership and supervision.  Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility.  Contract management practices and knowledge of public contracting laws in a public agency setting.  Operation of processes and equipment common to water and wastewater collection systems and treatment facilities, water treatment and distribution, stormwater collection, solid waste diversion and recycling, solid waste franchising and transport, National Pollution Discharge Eliminations System (NPDES).  Applicable federal, state, and local laws, regulatory codes, ordinances, safety regulations, and procedures relevant to water, wastewater, storm water systems, solid waste, and other utilities.  Project management practices associated with public works programs and private development projects.  Principles and practices of environmental impact assessment and related regulatory processes.  Methods, materials and techniques used in the construction of public works projects.  Practices of researching issues, evaluating alternatives, making sound recommendations, and preparing and presenting effective staff reports.
 Municipal public works activities, including engineering, water, wastewater, streets, transportation, facility, parks and public right of ways.
 General principles of risk management related to the functions of the assigned area.  Recent and on-going developments, current literature, and sources of information related to assigned programs and services.
 Applicable federal, state, and local laws, rules, regulations, ordinances, and City policies and procedures relevant to assigned area of responsibility including Title 21 and 22 of California regulations and AB 1343.  Operation and maintenance of storm water pump stations 150
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 Utility system standard plans
 Operation and maintenance of potable water well and pump systems  Principles and practices of public works contract administration and grant proposal writing.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination.
 Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
 Select, supervise and mentor staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance objectively and positively.  Provide administrative, management, and professional leadership for the division and the City.  Plan, organize, and direct effective utility services and programs.  Conduct complex utilities research projects, evaluate alternatives, make sound recommendations, and prepare effective technical reports.
 Prepare and administer large and complex budgets; allocate limited resources in a cost-effective manner.  Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Effectively administer complex projects with contractual agreements and ensure compliance with stipulations.  Conduct effective negotiations and effectively represent the City and the department in meetings with governmental agencies, contractors, vendors, and various businesses, professional, regulatory, and legislative organizations.
 Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Understand, interpret, explain, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
 Effectively represent the department and the City in meetings with governmental agencies; community groups; various business, professional, and regulatory organizations; and in meetings with individuals.  Learn and understand the organization and operation of the City and of outside agencies as necessary to assume assigned responsibilities.
 Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.  Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.  Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
 Work the hours necessary to accomplish the assigned duties, including evening and weekend hours; attend evening meetings; travel out of town and attend workshops, conferences, seminars during work and non-work hours.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Equivalent to a bachelor’s degree with major coursework related to water systems, environmental or civil engineering, biological or physical sciences, and seven years increasingly responsible experience in water systems, wastewater collection and/or other public utilities; including three years of supervisory experience and possession of a valid and appropriate California Driver’s License.

Licenses and Certifications:

Highly Desired:
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 Water Distribution Operator Grade D2 certificate issued by the California State Water Resource Control Board.  Water Treatment Operator Grade T2 certificate issued by the California State Water Resource Control Board.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer, to inspect City sites, including traversing uneven terrain, climbing ladders, stairs, and other access points, to operate a motor vehicle, and to visit various Agency and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas and to conduct inspections may be required.

Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects weighing up to 20 pounds.

ENVIRONMENTAL CONDITIONS
Employees predominately work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees will work in the field and occasionally be exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, mechanical and/or electrical hazards, and hazardous chemical substances and fumes. Employees may interact with members of the public or with staff under emotionally stressful conditions while interpreting and enforcing departmental policies and procedures.
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Senior Accounting Technician (SEIU)
Step A Step B Step C Step D Step E
Hourly 34.6288 36.3602 38.1782 40.0871 42.0915
Bi-Weekly 2,770.30 2,908.82 3,054.26 3,206.97 3,367.32
Monthly 6,002.32 6,302.43 6,617.56 6,948.43 7,295.86
Annual 72,027.82 75,629.21 79,410.67 83,381.21 87,550.27 Assistant to the City Manager (Non Bargaining- MEA)
Step A Step B Step C Step D Step E
Hourly 64.7422 67.9793 71.3783 74.9472 78.6945
Bi-Weekly 5,179.37 5,438.34 5,710.26 5,995.77 6,295.56
Monthly 11,221.98 11,783.08 12,372.23 12,990.84 13,640.38 Annual 134,663.73 141,396.92 148,466.76 155,890.10 163,684.60 Human Resources Technician I (18 Month LTD) (Non Bargaining - SEIU) Step A Step B Step C Step D Step E
Hourly 39.0416 40.9937 43.0433 45.1955 47.4553
Bi-Weekly 3,123.33 3,279.49 3,443.47 3,615.64 3,796.42
Monthly 6,767.21 7,105.57 7,460.85 7,833.89 8,225.58
Annual 81,206.50 85,266.82 89,530.16 94,006.67 98,707.00 Human Resources Technician II (18 Month LTD) (Non Bargaining - SEIU) Step A Step B Step C Step D Step E
Hourly 42.9458 45.0931 47.3477 49.7151 52.2009
Bi-Weekly 3,435.66 3,607.45 3,787.82 3,977.21 4,176.07
Monthly 7,443.94 7,816.14 8,206.94 8,617.29 9,048.15
Annual 89,327.26 93,793.62 98,483.31 103,407.47 108,577.84 Accountant I (SEIU)
Step A Step B Step C Step D Step E
Hourly 35.8622 37.6553 39.5381 41.515 43.5907
Bi-Weekly 2,868.98 3,012.42 3,163.05 3,321.20 3,487.26
Monthly 6,216.11 6,526.92 6,853.27 7,195.93 7,555.73
Annual 74,593.38 78,323.04 82,239.20 86,351.16 90,668.71 Utility Manager (6 Month LTD) (Non Bargaining - MEA)
Step A Step B Step C Step D Step E
Hourly 72.9746 76.6233 80.4545 84.4772 88.7011
Bi-Weekly 5,837.97 6,129.87 6,436.36 6,758.18 7,096.09
Monthly 12,648.93 13,281.38 13,945.45 14,642.72 15,374.86 Annual 151,787.21 159,376.57 167,345.40 175,712.66 184,498.30 153
POLICY AND ACTION ITEM 9.1

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: February 6, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Ana M Torres-Mondragon, Human Resources Manager
SUBJECT: City Attorney Salary
Recommendation
Adopt a resolution approving a salary increase for the City Attorney.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 3: Increase Organizational Effectiveness and Efficiency Background
On January 9, 2023, John D Lê began his service as East Palo Alto’s City Attorney (“City Attorney”). In December 2023, as per his contract, the City Attorney’s performance evaluation was conducted.

Per the positive evaluation, the City Attorney was granted the following:
 The same 2.5% Cost of Living Adjustment (COLA) provided to other East Palo Alto staff; and
 A 3% merit increase, bringing the total base salary to $239,979.63.

The total increase amount of the contract is $12,511 annually.

Fiscal Impact
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POLICY AND ACTION ITEM 9.1
The current budget provides for the contract compensation changes.

Environmental
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action involves a personnel contract, the Levine Act is not applicable.

Analysis of Levine Act Compliance: Not applicable.

Attachments
A. Resolution
155
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO AUTHORIZING A

SALARY INCREASE FOR THE CITY ATTORNEY
WHEREAS, the East Palo Alto City Council appointed John D. Lê as City Attorney, on December 6, 2022, effective January 9, 2023, and
WHEREAS, pursuant to the contract between the City and John D. Lê, a performance evaluation was conducted and the City Council decided upon a salary increase;

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;

2. Authorizes a three percent (3%) merit increase in salary for an annual base salary of 239,979.63;

3. Finds that the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

PASSED AND APPROVED on this 6th day of February 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Antonio Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
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POLICY AND ACTION ITEM 9.2

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: February 6, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Ana M Torres-Mondragon, Human Resources Manager
SUBJECT: City Manager Salary Increase and Contract Amendment Recommendation
Adopt a resolution:

1. Approving a salary increase for City Manager Melvin E. Gaines; and

2. Authorizing the Mayor to execute a first amendment to the employment agreement between City Manager Melvin E. Gaines and the City of East Palo Alto.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 3: Increase Organizational Effectiveness and Efficiency Background/Analysis
On January 30, 2023, Melvin E. Gaines began his service as East Palo Alto’s City Manager (“City Manager”). In December 2023, as per his current contract, the City Manager’s performance evaluation was conducted.

Per the positive evaluation, the City Manager was granted the following:
 A contract extension of one year to the current contract, extending its timeframe to January 30, 2026;
 The same 2.5% Cost of Living Adjustment (COLA) provided to other East Palo Alto staff; and
 A 3% compensation adjustment, raising his annual salary to $242,650, to counter compaction issues with senior staff.
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The total increase of the contract is $12,650 annually.

Fiscal Impact
The current budget provides for the contract compensation changes.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action involves a personnel contract, the Levine Act is not applicable.

Analysis of Levine Act Compliance: Not applicable.

Attachments
A. Resolution
B. First Amendment to City Manager Employment Agreement 158
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO

APPROVING A SALARY INCREASE FOR THE CITY MANAGER AND AUTHORIZING THE

MAYOR TO EXECUTE A FIRST AMENDMENTTO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF EAST PALO ALTO AND MELVIN E. GAINES WHEREAS, the East Palo Alto City Council appointed Melvin E. Gaines, as City Manager, commencing January 30, 2023; and
WHEREAS, upon the successful completion of his annual performance evaluation, the City Manager is being awarded a salary increase and the term of his employment agreement is being extended;

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;

2. Approves a salary increase of $12,650 annually for a new base salary of $242,650;

3. Authorizes the Mayor to execute the First Amendment to Employment Agreement First Amendment) for City Manager, attached as Exhibit B, between the City of East Palo Alto and Melvin E. Gaines, on behalf of the City Council; and

4. Finding that the proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

PASSED AND APPROVED on this 6th day of February 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

Antonio Lopez, Mayor
ATTEST: APPROVED AS TO FORM:
159
James Colin, City Clerk John D. Lê, City Attorney
160
1 FIRST AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
This FIRST AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT ("FIRST AMENDMENT"), for reference dated February 6, 2024, is by and between MELVIN E.

GAINES ("GAINES") and the CITY OF EAST PALO ALTO, a municipal corporation ("CITY"), is made with reference to the following facts:

RECITALS:

WHEREAS, on January 30, 2023, Melvin E. Gaines began his service as East Palo Alto’s City Manager; and
WHEREAS, in December 2023, the City Manager’s performance evaluation was conducted; and WHEREAS, as a result of the performance evaluation the City Council desires to extend the contract by one year and provide a three percent (3%) base salary increase.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, THE PARTIES AGREE TO AMEND SECTIONS 3 AND 4 OF THE EMPLOYMENT AGREEMENT AS FOLLOWS:

AGREEMENT:

3. Term. The term of this AGREEMENT shall commence at 8:00 am on January 30, 2023 (“Effective Date”) and shall extend for a period of three years, through January 30, 2026, unless terminated sooner in accordance with the terms in this AGREEMENT.

4. Compensation. For and in exchange for the services provided herein, GAINES shall be compensated at an annual base salary of Two Hundred Forty-Two Thousand Six Hundred Fifty Dollars ($242,650.00). GAINES shall be paid on a prorated basis bi-weekly in accordance with the CITY’s payroll practices and paid at the same time as other employees of the CITY are paid, effective the first full pay period after the Effective Date of this AGREEMENT.

All other provisions of the original AGREEMENT between the parties remain in full force and effect.

IN WITNESS WHEREOF, the parties have entered into this FIRST AMENDMENT.

CITY OF EAST PALO ALTO, MELVIN E. GAINES,
A municipal corporation An individual
161
2 BY: BY:

Antonio Lopez, Mayor Melvin E. Gaines
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
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POLICY AND ACTION ITEM 9.3

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: February 6, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Jeremy Dennis, Consultant, MRG
SUBJECT: City Attorney & City Manager Performance Evaluation Criteria Recommendation
By motion, adopt evaluation criterium and tool for the City Manager and City Attorney annual evaluation process.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority No. 3: Increase Organizational Effectiveness and Efficiency Background
The City contracted with MRG, LLC (consultant) to support the development of evaluation criteria for the City Manager and City Attorney, to be used by the City Council for its annual evaluations of each position. The City Council selected the Mayor and Vice Mayor to serve on an ad hoc committee to work with the City Manager, City Attorney and the consultant to develop these criterium.

Based on the feedback to the above and an analysis of best practices from professional organizations and current processes employed by municipalities, the ad hoc committee is proposing the following:

1. City Manager Evaluation – the ad hoc committee based its recommendation for 163
POLICY AND ACTION ITEM 9.3
evaluation criteria on the current model used by the City of Lexington North Carolina, and the criteria recommended by the International City/County Managers Association’s (ICMA) fourteen core competencies essential to local government leadership and management:
.

The tool, as recommended by the committee, is a web-based survey that each council member would be provided at the outset of the annual evaluation process. The tool provides for both narrative and ranking-style input from the Council (Attachment 1)

2. City Attorney Evaluation – the ad hoc committee based its recommendations for evaluation criteria primarily on existing models, including the City of Menlo Park’s tool, that utilizes a similar competency document as the City Manager competence discussed in the above section as informed by ICMA.

Similar to the City Manager’s tool, the City Attorney tool is a web-based survey, with narrative and ranking-style input opportunities (Attachment 2).

Fiscal Impact
There is no fiscal impact associated with the adoption of these evaluation tools.

Environmental
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POLICY AND ACTION ITEM 9.3
The proposed action does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15378(b)(4) and (5) in that it is a governmental fiscal, organizational or administrative activity that will not result in direct or indirect changes in the environment.

Government Code § 84308
Applicability of Levine Act: No, as the entitlement involves a personnel contract, the Levine Act is not applicable.

Analysis of Levine Act Compliance: Not applicable.

Attachments
A. City Manager Evaluation Tool
B. City Attorney Evaluation Tool
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DRAFT East Palo Alto City Manager
Evaluation
Overview and Instructions
Overview
This evaluation form is based on the International City Manager's Association (ICMA) "Manager Evaluations Handbook" and "Practices for Effective Local Government Management and Leadership" (links below). Specifically, ICMA developed 14 core competencies areas "critical for effective local government management" that are utilized as evaluation criteria. Each of the ranking questions be‐ low asks questions about each of these 14 areas.

Instructions
The survey consists of two sections:

1. Ten questions with three parts - an overall ranking on each evaluation criterion, and two narrative opportunities to share additional thoughts,

2. A narrative section, with seven questions, asking high-level and summary questions.

You must complete the ranking sections of all ten questions, and the narrative section. https://icma.org/page/practices-effective-local-government-management-and-leadership https://www.ca-ilg.org/sites/main/files/file-attachments/manager_evaluations_handbook.pdf? 1498671576
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MANAGEMENT OF THE ORGANIZATION
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Effectively runs the operations of the organization. Creates a collaborative, team building environment for staff. Recognizes the accomplishments of staff and other agencies working on behalf of the City. Supports a commitment to diversity/inclusion, professional growth (for himself and his team), succession planning, and opportunity within the organization. Accepts full accountability for staff and the outcome of City projects or decisions. Actively addresses mission critical services, identifies organizational problems and takes remedial action, including in areas where service delivery to the public is affected. *

1. 2. Your General Comments
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3. Improvement Comments, If Applicable
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EXECUTION OF POLICY
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Understands and complies with ordinances, policies and procedures governing the City including Federal and State legislation and directives.

Implements City policy, fairly and consistently, based upon Council decisions, initiatives, and applicable laws and regulations. Presents matters in a factual, analytical way. Coordinates Council policy decisions to staff, other organizations and the community. *

4. 5. Your General Comments
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6. Improvement Comments, If Applicable
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FISCAL MANAGEMENT
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Properly prepares and manages the budget. Demonstrates ingenuity and creativity in approaching budgetary matters, including long-range financial needs, monitoring and adaptation for the organization.

Incorporates evolving role of technology in service provision. Actively works to sustain cost-competitive government and utility services. *

7. 8. Your General Comments
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9. Improvement Comments, If Applicable
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RELATIONS WITH THE COUNCIL
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Makes an effort to be accessible to Council members. Handles issues that are brought by the Council in a consistent and timely manner. Maintains an honest, truthful and professional relationship with each Council member. Keeps a positive attitude and approach to new ideas, issues and complaints raised by Council members. *

10. 11. Your General Comments
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12. Improvement Comments, If Applicable
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RELATIONS WITH THE CITY ATTORNEY
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Maintains a professional relationship with the City Attorney and is available when needed. Respects the independent nature of the City Attorney's role, while still operating at the primary advisor to the Council.

Handles issues that are brought by the Council in a consistent and timely manner. *

13. 14. Your General Comments
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15. Improvement Comments, If Applicable
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COMMUNITY RELATIONS AND ENGAGEMENT
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Makes an effort to understand issues, concerns, and the values of the community. Meets with and listens to members of the community to discuss concerns and strives to understand their interests. Leverages public engagements and community interactions to educate and advocate on City initiatives and services. Represents the City well and in a professional and positive manner. Works proactively and maintains a nonpartisan professional approach with the media and press.

Professionally leverages social media. Works effectively and synergizes collaboration with partner agencies, neighboring jurisdictions and community organizations.
*

16. 17. Your General Comments
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18. Improvement Comments, If Applicable
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COMMUNICATIONS
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Ensures that Council members receive important information in a timely and effective manner. Provides regular updates to the Council, keeping them informed about current and critical issues. Presents the Council and community with clear and accurate reports and correspondence.

Responds to correspondence, requests and complaints, timely and appropriately. Facilitates open two-way communication and encourages mutual honesty and respect with Council, staff and the community. Staff reports are clear and useful. *

19. 20. Your General Comments
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21. Improvement Comments, If Applicable
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LEADERSHIP
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Provides the Council and the organization with real solutions and creative alternatives to issues and problems that reflect the values of the community. Anticipates and responds to issues. With his team, provides strategic planning support and suggestions in anticipation of major issues and initiatives. Assures that Council decisions are thought out, objective, consistent with past practices and are legal and ethical. Makes use of sound administrative practices. Positively leads through collaboration, mentoring, coaching and motivational techniques.

Represents the organization as a positive City ambassador. *

22. 23. Your General Comments
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24. Improvement Comments, If Applicable
182
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PROFESSIONALISM
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Deals effectively and appropriately with the public and other organizations. Devotes time and energy to the job. Demonstrates high ethical standards and integrity. Works to keep “politics” and personal perspectives out of the decision-making process. Stays abreast and active in professional organizations and current issues. *

25. 26. Your General Comments
183
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27. Improvement Comments, If Applicable
184
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VISION, INITIATIVE AND PLAN EXECUTION
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Sets an example that urges the organization and the community toward innovation, problem solving and solution oriented action. Actively works to envision a future state resisting the status quo and develops new ideas and initiatives for consideration. Adapts to evolving technological advancements and social media platforms. Offers professional recommendations and implements Council’s vision to make East Palo Alto a City of Choice. *

28. 29. Your General Comments
185
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30. Improvement Comments, If Applicable
186
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What would you identify as the City Manager’s strengths as observed during this evaluation period? *

31. What would you identify as the City Manager's opportunities for improvement as observed during this evaluation period? *

32. Are there any initiatives or projects, outside of the Council Priority process, you would like the City Manager to take on in the next evaluation period? *

33. 187
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Did the City Manager effectively address/implement/keep you abreast of any initiatives you requested he/staff evaluate? *

34. What performance areas would you identify as most critical for improvement? *

35. 36. What suggestions or assistance can you offer the City Manager? * What other comments do you have for the City Manager (for example, about priorities, expectations, or specific objectives for the next year)? *

37. 188
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189
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DRAFT East Palo Alto City Attorney
Evaluation
Overview and Instructions
Overview
This evaluation form is based on the International City Manager's Association (ICMA) Draft City Attorney Evaluation form, and the City of Menlo Park's City Attorney Evaluation form (links below).

Instructions
The survey consists of two sections:

1. Six questions with three parts - an overall ranking on each evaluation criterion, and two narrative opportunities to share additional thoughts,

2. A narrative section asking high-level and summary questions.

You must complete the ranking sections of all six questions, and the narrative section. https://icma.org/sites/default/files/301269_City%20Attorney%20Performance%20Evaluation.pdf https://www.cacities.org/UploadedFiles/LeagueInternet/e3/e358adf5-8692-4524-995bde02cd51a003.pdf 190
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PROVISION OF LEGAL SERVICES
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Provides competent legal advice in a constructive, results-oriented and useful manner. Capably represents the City's interest, as determined by the City Council, in all forums. Prepares ordinances, resolutions, contracts, and other legal documents to best reflect and implement the purposes for which they were intended. Ensures the City's codes are up-to-date, and enforces the City's laws effectively. Performs services in a timely manner, consistent with professional standards and deadlines *

1. 2. Your General Comments
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3. Improvement Comments, If Applicable
192
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GENERAL MANAGEMENT OF THE CITY ATTORNEY'S
OFFICE
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Manages the operations of the City Attorney's Office (and outside counsel) in an effective manner. Maintains effective communications with internal and external partners. Provides opportunities for staff growth and professional development. Provides a positive and constructive work environment for staff. *

4. 5. Your General Comments
193
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6. Improvement Comments, If Applicable
194
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RELATIONS WITH THE COUNCIL
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Maintains effective and timely communications with Council members. Keeps Council and staff appraised of court rulings and legislation that may affect the City. Maintains appropriate availability to Council members, as needed. Maintains a professional, objective and unbiased relationship with the Council. Maintains consistency of opinions between attorneys and his/her own opinions. *

7. 8. Your General Comments
195
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9. Improvement Comments, If Applicable
196
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CITY MANAGER RELATIONS
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Maintains an effective professional relationship with the City Manager.

Maintains availability, as needed. Maintains objectivity and independence in providing legal advice to the City Council, while recognizing the City Manager as the primary advisor to the City Council. *

10. 11. Your General Comments
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12. Improvement Comments, If Applicable
198
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MANAGEMENT CHARACTERISTICS
Far Exceeds Expectations
Exceeds Expectations
Meets Expectations
Below Expectations
Far Below Expectations
N/A
Is a creative thinker, interested in hearing the ideas of the Council and each member of legal issues. Always considers City Council's position/priorities before providing advice. Remains positive when tackling challenging issues or community concerns. Remains objective and decisive. Willing to provide advice, even when it is not the answer that is wanted. *

13. 14. Your General Comments
199
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15. Improvement Comments, If Applicable
200
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16. 17. Your General Comments
201
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18. Improvement Comments, If Applicable
202
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What would you identify as the City Attorney’s strengths as observed during this evaluation period? *

19. What would you identify as the City Attorney's opportunities for improvement as observed during this evaluation period? *

20. Did the City Attorney effectively address/implement/keep you abreast of any initiatives you requested he/staff evaluate? *

21. 203
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Microsoft Forms
What performance areas would you identify as most critical for improvement? *

22. 23. What suggestions or assistance can you offer the City Attorney? * What other comments do you have for the City Attorney (for example, about priorities, expectations, or specific objectives for the next year)? *

24. 204
POLICY AND ACTION ITEM 9.4

EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: February 6, 2023
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager, or John D. Lê, City Attorney BY: Amy Chen, Community & Economic Development Director Karen Camacho, Housing and Economic Development Manager Yajaira Morales, Housing Project Manager
SUBJECT: Adoption of 2024-2028 Affordable Housing Strategy Recommendation
Adopt a resolution:

1. Adopting the 2024-2028 Affordable Housing Strategy, attached hereto as Exhibit A;

2. Authorizing staff to make non-substantive changes, and directs staff, if an amendment to the Affordable Housing Strategy is required by the California Department of Housing as a condition of issuance of a Housing Element compliance letter, to make such required revisions to the 2024-2028 Affordable Housing Strategy; and

3. Finding that the action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Promote Housing, Economic and Workforce Development 205
POLICY AND ACTION ITEM 9.4
Background
On October 16, 2018, the City Council adopted an Affordable Housing Strategy, for the years of 2019 to 2023. The 2019-2023 Affordable Housing Strategy is available at the City of East Palo Alto’s Affordable Housing Strategy webpage at:
https://www.cityofepa.org/housing/page/affordable-housing-strategy. 1 This strategy guided the City of East Palo Alto in its efforts to meet East Palo Alto’s affordable housing needs. Staff have been directed to update the strategy for the next five years, to the end of 2028.

The proposed 2024-2028 Affordable Housing Strategy builds on the efforts undertaken to create the 2023-2031 Housing Element, which incorporates what staff heard at four community meetings held in East Palo Alto, one countywide community meeting on fair housing and equity issues, survey results, as well as public comment submitted online and at Planning Commission and Council meetings. In addition, the City hosted a community meeting on November 16, 2023, to hear additional input from residents. The meeting was not well attended. The City also conducted a survey from November 27, 2023 to January 5, 2024 to gather community input on housing problems and funding priorities. There were a total of 48 respondents, 52% of which were tenants, 40% of which were homeowners, and 8% of which were other (see Attachment 3 for a summary of the survey results).

In an effort that grew out of the work of 21 Elements, the Housing Endowment and Regional Trust of San Mateo County (HEART) has created a new Housing Consulting Services Program. San Mateo County communities can contract with HEART on an ongoing basis to add to communities’ housing policy and program capacity. Under the contract between HEART and the City of East Palo Alto, Tim Davis from HEART provided substantial assistance in the preparation of this strategy.

While the City Council adopted the 2023-2031 Housing Element on February 21, 2023, and later revised December 2023, the California Department of Housing and Community Development (HCD) has not yet issued a compliance letter. The draft Affordable Housing Strategy is based on the Revised Housing Element issued in December 2023. It is not expected that any additional edits, if required from HCD, would materially affect the Affordable Housing Strategy. Therefore, staff is recommending moving forward with adoption of the Affordable Housing Strategy to provide policy and budget direction for implementing the 2024- 2028 work program. If an amendment to the proposed Affordable Housing Strategy is required by HCD as a condition of issuance of a Housing Element compliance letter, staff will make such required revisions to the 2024-2028 Affordable Housing Strategy for alignment. 1 View 2019-2023 East Palo Alto Affordable Housing Strategy at:
https://www.cityofepa.org/sites/default/files/fileattachments/housing/page/20967/affordable_housing_strategy_201 903181537592675.pdf
206
POLICY AND ACTION ITEM 9.4
Analysis
The proposed 2023-2028 Affordable Housing Strategy reflects a focused approach to developing both strategic goals and tactical actions that will satisfy the unique needs and leverage the current opportunities in East Palo Alto, including the following elements:
 Need for Affordable Housing. The high cost of local housing and relatively low incomes of renter households contribute to the urgent need for increasing the supply of deed-restricted affordable housing.
 Guiding Principles. Staff have identified the core values that will guide the development of the City’s goals and implementation of the recommended actions.  Goals. Based on the local need, values, and opportunities, staff developed a set of specific goals that are good mix of both reasonably achievable and aspirational over the 5-year duration of the Strategy.
 Actions. Each goal is accompanied by policy and programmatic actions that Council may consider, if appropriate.
 Programmatic Resources and Uses. Staff has outlined current resources available for both affordable housing development and other programs that will address the housing needs of East Palo Alto residents, and detailed investments the City can make to support these programs.
 Workplan. The workplan provides information on when and how, during the fiveyear period, the proposed actions will be undertaken.

The 2024-2028 City of East Palo Alto Affordable Housing Strategy is attached as Exhibit A.

The City Council has already adopted some of the goals and actions contained in the proposed 2024-2028 Affordable Housing Strategy as part of the adoption of the 2023-2031 Housing Element. While the 2023-2031 Housing Element has target dates to achieve goals by 2031, the Affordable Housing Strategy establishes more incremental goals to make progress by 2028. The Council may adopt the specific numerical goals and recommendations for spending in whole or in part, and the City Council may add other actions that are not currently included to address existing and emerging needs not considered during the adoption of the Housing Element. Staff may also present any input or information learned from the Council’s Strategic Priorities Retreat on Saturday, February 3, 2024, which can be incorporated on the dais, as the Council deems appropriate.

Fiscal Impact
There is no fiscal impact to the General fund for adopting the Strategy. 207
POLICY AND ACTION ITEM 9.4
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.

Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.

Government Code § 84308
Applicability of Levine Act: No, as this item does not relate to an entitlement within the meaning of that term in the Levine Act.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution

2. Exhibit A: 2024-2028 City of East Palo Alto Affordable Housing Strategy

3. Affordable Housing Strategy Summary Survey Results
208
Resolution No. XX-2024 1 of 2
RESOLUTION NO. XX-2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO

ADOPTING THE CITY OF EAST PALO ALTO UPDATED AFFORDABLE HOUSING

STRATEGY
WHEREAS, the State of California is facing an unprecedented housing crisis and the housing crisis in the Bay Area is severe; and
WHEREAS, almost half of East Palo residents are housing cost burdened, meaning they pay more than 30 percent of their income to housing costs; and WHEREAS, nearly two-thirds of the City’s households earning less than 30% AMI are severely cost burdened, meaning that they pay more than 50% of their gross income on housing; and WHEREAS, data available from the Association of Bay Area Governments identifies portions of low-income residents in portions of East Palo Alto may be susceptible to economic displacement pressures, and that portions of East Palo Alto are at heightened risk of damage due to flooding or earthquakes, undermining the stability of current households; and WHEREAS, on October 16, 2018, the City Council adopted an Affordable Housing Strategy, for the years of 2019 to 2023; and
WHEREAS, building on efforts undertaken to create the 2023-2031 Housing Element, the Council considered a revision to the 2019-2023 Affordable Housing Strategy that was the product of community input obtained during four community meetings held in East Palo Alto, one countywide community meeting on fair housing and equity issues, survey results, and public comment submitted online and at Planning Commission and Council meetings; additionally, one such community meeting was held on November 16, 2023 to hear additional input from residents, and a survey was open from November 27, 2023 to January 5, 2024 to gather community input on housing problems and funding priorities; and
WHEREAS, the City of East Palo Alto staff presented to the Council on February 6, 2023 a proposed 2024-2028 Affordable Housing Strategy that serves as a roadmap to facilitate the development of 300 new affordable units and the support programs intended to make sure current East Palo Alto residents can continue to call this City their home.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action;

2. Adopts the 2024-2028 Affordable Housing Strategy, attached hereto as Exhibit A and incorporated by this reference; and
209
Resolution No. XX-2024 2 of 2

3. Authorizes staff to make non-substantive changes, and directs staff, if an amendment to the Affordable Housing Strategy is required by the California Department of Housing as a condition of issuance of a Housing Element compliance letter, to make such required revisions to the 2024-2028 Affordable Housing Strategy.

4. Finds that the action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.

PASSED AND ADOPTED this 6th day of February 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio D. Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
210
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Summary of Goals 2
Introduction 3
• Purpose 3
• Need 3
• Guiding Principles 8
• Structure of the Strategy 9
Review of the 2019-2023 Goals and Actions 10
2024-2028 Goals and Actions 12

1. Create More Affordable Housing 12

2. Promote and Preserve Homeownership 17

3. Preserve Existing Affordable and Rent Stabilized Housing 18

4. Prevent Displacement 19

5.1. Apply Environmental Justice Principles to Planning 21

5.2. Expand Fair Housing Programs and Practices 23

6. Promote Safe and Healthy Housing 23

7. Create More Opportunities for Special Needs Households 24

8. Improve Transparency 26

9. Build Capacity 26

10. Amend Zoning 27
Programmatic Resources and Uses 30
Workplan 42

CITY OF EAST PALO ALTO

AFFORDABLE HOUSING STRATEGY

TABLE OF CONTENTS
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EAST PALO ALTO AFFORDABLE HOUSING STRATEGY

SUMMARY OF GOALS
Goal 1: Create More Housing That Is Affordable to East Palo Alto Residents.

Goal 2: Create Homeownership Opportunities for East Palo Alto Residents and Stability for Existing Homeowners.

Goal 3: Preserve Existing Affordable and Rent Stabilized Housing.

Goal 4: Prevent Displacement of East Palo Alto Residents.

Goal 5.1: Apply Environmental Justice
Principles in Planning for New Housing
Development.

Goal 5.2: Expand and Establish Programs
to Promote Fair Housing Practices for
East Palo Alto Residents.

Goal 6: Promote Safe and Healthy Housing in East Palo Alto.

Goal 7: Create More Housing Opportunities for Special Needs Households, Including Large Households, People at Risk of or Experiencing Homelessness, and Individuals with Disabilities.

Goal 8: Improve Transparency and Communication Between the City and the Public on Housing Issues.

Goal 9: Build City Capacity for Long-term Housing Planning and Implementation of a Range of Housing Programs and Initiatives.

Goal 10: Amend Zoning and Other Development Regulations to Facilitate the Construction of Affordable and Special Needs Housing.
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INTRODUCTION
Purpose of the Strategy
Through the 2019-2023 City of East Palo Alto Affordable Housing Strategy, the City of East Palo Alto (the City) established a series of goals and actions to increase the availability of affordable housing to meet the needs of East Palo Alto residents. The 2024-2028 City of East Palo Alto Affordable Housing Strategy (the Strategy) builds on these past efforts, what we heard from the community during Housing Element meetings held in 2021 and 2022, and the commitments made in the 2023-2031 Housing Element.

The Strategy outlines the City of East Palo Alto’s commitment to the creation of new, deed-restricted affordable housing while also funding efforts to help East Palo Alto residents stay in their homes through programs that support renters through rent stabilization and rent supports, and homeowners through home repair programs.

In addition to the specific goals and policies articulated in the Strategy, this document also describes the recommended actions that will make it possible for staff to implement the Plan.

Background on Affordable Housing in East Palo Alto
The City’s substantial affordable housing needs result largely from two factors: 1) the high cost of housing, and 2) low incomes of East Palo Alto renter households. To better understand this need it is important to know the city’s history and the ways in which East Palo Alto has changed substantially over time. The entire Peninsula was the home of Ohlone Native Americans, whose lands were taken first by Spanish ranchers and then by Americans moving west. Prior to World War II, many Japanese flower growers and farmers had made what became East Palo Alto their home, but most were incarcerated in concentration camps for the duration of World War II. Few returned to the area after the war, and East Palo Alto’s farms were turned into housing developments in the post-World War II suburbanization of the Peninsula. In the mid-1950’s, East Palo Alto changed again, as realtors used “blockbusting” -- a scheme where real estate agents and speculators convinced White families their neighborhoods were turning into slums and property values would drop; bought their homes less than their worth; and rented or sold them at inflated prices to Black/African Americans who faced property deed restrictions, anti-Black federal lending policies, land covenants, and discrimination in other Peninsula communities. As a result, East Palo Alto became the home to the largest Black/African American community on the Peninsula, segregated from the wealthier towns in the region.1 1 Change, Julianna (2020). “A Tale of Two Cities: How racism in housing deeds, redlining and gentrification led to the stark divide 213
4 | P a g e
East Palo Alto was incorporated as a city in 1983, and soon thereafter passed rent stabilization protections. East Palo Alto remains the only San Mateo County jurisdiction with these protections for renters, though San Mateo County does provide some protections for mobile home residents.

Over time, East Palo Alto has continued to change, and because of its proximity to major high tech employers, faces significant pressures on housing costs, leading to both gentrification and displacement. There has been a precipitous decline in the Black/African American population, from 61 percent of the population in 1980, to 11 percent in 2020.2 East Palo Alto remains a diverse community, however; over 66 percent of East Palo Alto residents are Hispanic or Latino, 11 percent are Black or African American, eight percent are White, seven percent are Native Hawaiian or other Pacific Islander (mostly Tongan), five percent are Asian, three percent are of two or more races (non-Hispanic/Latino), and less than one percent are American Indian and Alaska Native or of some other race.3 While rents are lower in East Palo Alto than in San Mateo County as a whole, the median gross rent (rent and utilities paid by the tenant) is $1,791 in East Palo Alto, compared to $2,466 for San Mateo County. These 2021 rents, as measured by the American Community Survey, are based on all renters, including long-term renters with rent stabilization protections. Average advertised rents for new tenancies are higher than the median gross rents for existing tenants. Rent Café reported that the average advertised rent for East Palo Alto in July 2023 was $2,871, among the lowest of San Mateo County communities with data available. Even though rents are lower in East Palo Alto, a household would need an income of $114,840 to afford the average advertised rent, significantly higher than the median household for East Palo Alto renters of $71,494. 4 Source: Rent Café, July 2023 data, www.rentcafe.com. Data is not available for communities with a small number of rentals.
between Palo Alto and East Palo Alto. The Oracle. Accessed 9/13/2023 at The Oracle | A Tale of Two Cities: How racism in housing deeds, redlining and gentrification led to the stark divide between Palo Alto and East Palo Alto (gunnoracle.com). 2 Source: http://www.bayareacensus.ca.gov/cities/EastPaloAlto70.htm 3 US Census Bureau, Census 2020.
4 US. Census Bureau, 2021 American Community Survey, 5-year estimates, Table B25119 214
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Home values are also lower in East Palo Alto, as the 2021 median value of all homes was $955,300 in East Palo Alto, compared to $1,225,900 for San Mateo County.5 Recent sales prices reveal an even greater disparity between East Palo Alto and San Mateo County, as the median sales price in August 2023 in East Palo Alto was $870,000, compared to $1.6 million for San Mateo County.6 Homeownership is out of reach for East Palo Alto renter households—The median household income for renters is $71,494, and given today’s high interest rates, the median renter household can only afford to purchase a home priced at $204,000.7
While housing costs are lower in East Palo Alto than many other communities in the region, incomes are also lower, especially for Black/African American and Hispanic/Latino households. The median household income in East Palo in 2021 was $96,349, compared to $136,837 for San Mateo County.

While 33 percent of San Mateo County households have incomes greater than $200,000, the same is true for only 19 percent of East Palo Alto households. In addition, 41 percent of East Palo Alto households have incomes of less than $75,000, compared to only 27 percent of San Mateo County households.

Source: US Census Bureau, 2021 American Community Survey, 5-year estimates, Table S1901.

There are significant racial and ethnic disparities in income in East Palo Alto. While the median household income in 2021 for all households was $96,349, it was $75,804 for Hispanic or Latino households, $93,365 for Black or African American households, but $154,384 for White nonHispanic/Latino households and $189,615 for Asian households. 5 Source: US Census Bureau, American Community Survey, 5-year estimated, Table DP04. Gross rent includes rent paid and utilities paid directly by the renter.
6 Source: Realtor.com (https://www.realtor.com/realestateandhomes-search/San-Mateo-County_CA/overview; https://www.realtor.com/realestateandhomes-search/East-Palo-Alto_CA/overview). 7 Calculation based on 5% downpayment, 7.18% interest rate (Freddie Mac Mortgage Interest Rate Survey, 9/14/2023), PMI Rate of 0.51% (Freddie Mac), Property Tax Rate of 1.0907% (San Mateo County Assessor’s Office), homeowner property insurance rate of 0.49% (Bank Rate average CA insurance rate), and a housing debt ratio of 28%. 9% 8%
13%
10%
18%
10% 11% 10%
18% 17%
11% 13%
19%
33%
East Palo Alto San Mateo County
Household Income,
East Palo Alto & San Mateo County, 2021
Less than $25,000 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more
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Source: US Census Bureau, 2021 American Community Survey, 5-year estimates, Table S1903.

Given the combination of high housing costs and lower incomes, a high percentage of East Palo residents are housing cost burdened (paying more than 30 percent of their income to housing costs), and therefore at risk of displacement and homelessness. Of all households, 49 percent are cost burdened, with 43 percent of homeowners and 54 percent of renters being cost burdened. A household is considered severely cost burdened if they pay more than 50 percent of their income towards housing.

In East Palo Alto, 25 percent of all households are severely cost burdened, with 20 percent of homeowners and 29 percent of renters were severely cost burdened. Almost all severely housing cost burdened households have incomes of less than 50 percent of Area Median Income ($93,200 for a family of three).

Source: US Census Bureau and HUD, 2020 American Community Survey, 5-year estimates, CHAS data.
$67,039 $75,804 $81,993 $93,365 $96,349 $107,250 $109,286 $154,384
$189,615
Two or More Races
Hispanic or Latino
Some Other Race
Black or African
American
All Households
Native Hawaiian and
Other Pacific Islander
American Indian and
Alaska Native
White Alone, NonHispanic
Asian
Median Household Income, 2021
by Race & Ethnicity
63%
39%
5%
0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
<=30% of AMI >30% to <=50%
of AMI
>50% to <=80%
of AMI
>80% to <=100%
of AMI
>100% of AMI
Severly Cost Burdened Households,
by Income Tier/Percent of Area Median
Income, 2020
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The racial and ethnic disparities in income play a role in who is more likely to be cost burdened, as 58 percent of Black/African American and 63 percent of Hispanic/Latino households are cost burdened, the same is true of 29 percent of White households and 33 percent of Asian households, revealing that housing is an issue of both income and race and ethnicity.

Source: US Census Bureau and HUD, 2020 American Community Survey, 5-year estimates, CHAS data.
29%
33%
49% 52%
57% 58%
63%
White (non-Hispanic)
Asian (non-Hispanic)
All Households
Other
Hispanic or Latino
Balck or African
American (nonHispanic)
Pacific Islander (nonHispanic)
Percent Cost Burdened, 2020
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Guiding Principles
When drafting the first Strategy, Staff identified the need to articulate the values that will guide the development of the City’s goals and implementation of the recommended actions. These guiding principles have remained the same through this iteration of the Strategy:

Empathy
Every resident of East Palo Alto deserves access to decent, safe, and sanitary housing. Although East Palo Alto does not have the financial resources or developable land to build housing for every resident, our efforts to explore all potential options must be driven by a belief that all residents have the same rights to housing and a compassionate concern for their needs.

Antidisplacement
Anti-displacement/gentrification is a major concern for East Palo Alto’s residents and the City Council. The Strategy outlines several strategies and objectives that can help assure that current residents of East Palo Alto can stay in their communities.

Opportunity +
Investment
East Palo Alto has limited financial resources to invest in many of the community development and public infrastructure activities that other jurisdictions routinely fund. The development of new affordable housing may serve as a catalyst for the City to secure both Federal and State funding to improve the public infrastructure surrounding an affordable development.

Equitable,
Integrated,
and Diverse
Communities
The Strategy outlines several actions that would lead to a more integrated and diverse community.

Transparency
As the Strategy is implemented, it is imperative that the public, affordable housing developers, local non-profit organizations, and other stakeholders are kept apprised of the City’s progress and available resources. The City is committed to:
■ Providing the City Council and community with periodic updates on the Strategy’s progress and will devote a page on the City’s website that will report results in real time.
■ Being transparent with both revenues and expenditures spent so that the community can track the progress and effectiveness of the City’s affordable housing resources and development partners are aware of resources that can help them to propose and complete affordable housing developments.
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Structure of the Strategy
REVIEW OF THE 2019-2023 GOALS AND ACTIONS
The goals and actions from the 2019-2023 Affordable Housing Strategy are reviewed, providing background on recent City efforts, which inform the 2024-2028 strategy.

GOALS AND ACTIONS
The Strategy describes an ambitious set of goals that may enable the City of East Palo Alto to increase the supply of housing that is affordable to residents and improve the critical systems that make more housing available. Each goal is explained and further defined through several specific recommended actions that will lead to achieving the intended outcome.

PROGRAMMATIC SOURCES AND USES FOR HOUSING
The Strategy is based on an understanding of current opportunities in both developing affordable housing and maximizing those opportunities to meet the current need. The section outlines how funds currently available to the City of East Palo Alto can leverage federal, state, and other funding to create affordable housing. This section also outlines efforts the City of East Palo Alto is undertaking to fund programs that will help East Palo Alto residents (both renters and homeowners) stay in their communities.

WORKPLAN
The recommended actions comprise an actionable work plan that will advance the City of East Palo Alto’s affordable housing goals over a projected 5-year period. The East Palo Alto Affordable Housing Strategy Work Plan Schedule is attached to the Strategy, providing a snapshot of when these goals will be completed.
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REVIEW OF THE 2019 TO 2023 GOALS AND ACTIONS
The 2019-2023 City of East Palo Alto Affordable Housing Strategy set out a series of goals to address the affordable housing needs for East Palo Alto residents. Below are the outcomes of the major goals. ● Adopt a Housing Strategy: The City adopted the 2019-2023 housing strategy in late 2018, and the City is committed to revising the strategy for 2024-2028. ● Create New Deed Restricted Affordable Housing Units: The goal was that 500 new deed restricted affordable housing units would have been completed, started construction, or been approved during the life of the plan. From 2019 to 2022, the City approved 251 units, meeting 50 percent of the goal.

Successes include the Colibri Commons project, which will bring 135 deed restricted housing units to a City-owned site at 965 Weeks Street, and Certificates of Occupancy were issued for 185 rehabilitated (94 units) and new deed restricted units (91 units) at Light Tree Apartments on East Bayshore Road.
● Establish a Local Preference for Affordable Housing: To facilitate East Palo Alto’s anti-displacement efforts, East Palo Alto created a local preference in 2020 for those who live in East Palo Alto for its affordable housing lotteries.
● Preserve Existing Affordable Units: The goal was to preserve and extend deed- restrictions on 200 units of existing affordable housing. The City took steps to preserve 201 units, and no units of affordable housing were lost between 2019 and 2023. Preservation efforts include the extension of affordability terms for 75 units at the Courtyard at Bay Road, a $7 million infusion of cash to renovate the 32 units at Nugent Square, and the rebuilding and renovation of 94 units at Light Tree, totaling 201 preserved affordable units among these three apartment complexes. ● Increase Housing Opportunities for Unhoused Individuals and Families: The City had a goal of creating 80 housing opportunities for those who have experienced homelessness. This goal was to be met through the creation of 17 safe parking spots for those living in RVs at the RV Safe Parking Program. East Palo Alto met this goal by spending $1.4 million over five years to establish and maintain the RV Safe Parking program at 1798 Bay Road that helped 116 individuals over the life of the program. The RV Safe Parking program was hosted on the city-owned site and concluded the program on October 31, 2023.
● Re-Establish the City’s Inclusionary Housing Ordinance: On November 19, 2019, the City Council adopted Ordinance No. 425, the Inclusionary Housing Ordinance, adding Chapter 18.37 to the City of East Palo Alto Development Code. The Ordinance applies to all new residential development. The updated code can be found in the City of East Palo Alto Municipal Code. This new ordinance provides direction and transparency for affordable housing developers and requires payment of in lieu fees from projects with fewer than five units. For projects with five or more units, 20 percent of the units 220
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must be deed restricted. Payout and off-site options are also available, at 25 percent of required units. The program serves an economically diverse set of households, with maximum incomes ranging from as low as 35 percent of Area Median Income for a portion of the rental units, to 100 percent of Area Median Income for a portion of the ownership units. The City has established a web page with details and guidance on the policy.
● Create Additional Accessory Dwelling Units (ADUs): The City had a goal of approving 50 ADUs between 2019 and 2023. The City exceeded this goal as 112 ADUs received building permits and/or received a Certificate of occupancy in East Palo Alto from 2019-2022. In addition, the City secured a CalHome grant to launch a new program that provides up to a $100,000 low interest loan for income eligible owners to create a deed restricted ADU on their property. ● Support Housing Rehabilitations or Solar/Electric Vehicle Installations for Single Family OwnerOccupied Homes: The City committed to using Housing Rehabilitation Programs and partnerships to assist 50 homeowners with home rehabilitations and/or installations of solar energy systems & EV charging stations. While 22 households were assisted in 2019, the county’s home repair program was discontinued in 2020.
● Add Capacity for Stewardship + Monitoring of the City’s Affordable Housing Assets: In 2019, the City contracted out the monitoring of its Below Mark Rate (BMR) homeownership units to EPACANDO. In addition to the monitoring of units, those interested in purchasing a BMR unit at resale can sign up to be notified when a unit becomes available. For more info, see https://epacando.org/bmr-home-ownership/.
● Transparency + Reporting: To demonstrate responsible stewardship and a commitment to developing the City’s potential housing resources, the City committed to a series of reporting actions that would lead to transparency and regular coordination with decision-makers, partners, and the community. The City created reports in 2019 to track the efforts toward fulfilling the last affordable housing strategy. While those reports did not continue during and after the COVID-19 pandemic, the City continued to complete State required Annual Performance Reports on housing production and efforts to meet the goals of the last Housing Element. The City also began a revision of the City’s website in 2020 with improvements to the Planning webpage that include updated fact sheets, forms, and, in 2021, the revised Inclusionary Housing Guidelines. ● Increase City’s Voice in Housing Advocacy Efforts: The City of East Palo committed to playing a larger role in policy/advocacy to expand and preserve affordable housing in East Palo Alto, and to provide constructive solutions for the larger regional problem. Actions taken from 2019 to 2023 include multiple comment letters to the California Department of Housing and Community Development (HCD) on major housing grant programs and to the California Debt Limit Allocation Committee (CDLAC) regarding tax-exempt bond allocations. The City also committed funding toward increasing tenant groups’ voices through the Measure O/Measure L Anti-Displacement Services contract. 221
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GOALS AND ACTIONS
This affordable housing strategy lays out a series of efforts the City of East Palo Alto will take over the next five years to address the needs of East Palo Alto residents, through the incentivization and creation of new deed restricted, affordable housing, the preservation of existing affordable housing, and the creation and maintenance of programs and policies that reduce the displacement of both East Palo Alto homeowners and renters. These efforts will also address fair housing concerns including the displacement of Black, Indigenous, People of Color (BIPOC) households from the city and the region, racial disparities in homeownership, and the housing needs of special needs populations.

The goals and actions outlined here closely align with the goals set out in the 2023-2031 Housing Element, though this strategy focuses on affordable housing and the needs of low- and moderateincome households, not goals related solely to overall housing production, and narrows the focus on what is achievable over the next five years, not the eight years outlined in the Housing Element.

GOAL 1 |Create More Housing that is Affordable to East Palo Alto Residents To fulfill the five-year affordable housing requirements of the Housing Element, over 260 deedrestricted, affordable housing units will need to be approved, start construction, or be completed in East Palo Alto during the 6th cycle Housing Element to meet the City’s RHNA. East Palo Alto should be able to meet or surpass this goal. There are already 148 inclusionary housing units in the pipeline, and City of East Palo has the capacity to fund up to 122 units in 100% affordable housing developments (see Resources section). While achievable, success will depend on the City of East Palo Alto reducing government barriers to construction, providing funding and city owned land, and working closely with affordable housing developers.

Implement measures to reduce overall processing times for residential development applications while maintaining robust community outreach and engagement.

By simplifying the development approval process affordable housing can be created more quickly and at lower cost.
• Policy 1.0: Track and review planning approval and building permit processes for residential projects. Establish actions for streamlining, clarifying, and simplifying the approval and permit processes, including the design review process. Seek input from developers and other stakeholders to identify ways to improve and streamline development review. Target: Strive for the following planning application processing timelines by the end of the Housing Element period:
o Ministerial/By-Right: 1-3 months from a complete application; o Discretionary - Planning Commission approval authority: 4-6 months from a complete application, not including projects appealed to City Council; and o Discretionary - City Council approval authority: 6-9 months from a complete application, not including projects with extenuating conditions (e.g., projects with an environmental 222
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impact report, development agreement, or tenant relocation plan, or during periods of reduced staffing).
• Policy 1.1: Develop objective development and design standards that will be consistent with adopted findings of approval for all single-family and multi-family developments that simplify, clarify, and improve approval certainty and reduce the time for permit processing. Establish a time schedule for expedited ministerial or administerial approval of projects that comply with objective design standards, zoning standards, and development regulations. Ensure compliance with SB35, SB330, Housing Accountability Act, and other applicable state laws for qualifying projects.
• Policy 1.2: Implement existing processing guidelines for projects that qualify for by-right, ministerial, or administrative approval and CEQA exemption under SB 25, SB 330, Housing Accountability Act, and other applicable state laws.
• Policy 1.3: Program: Review and adjust building permit review and approval procedures as needed to comply with the streamlining requirements in State law AB 2234. • Policy 1.4: Develop standards to prioritize, incentivize, and expedite processing of residential projects that commit housing units for special needs populations such as the developmentally disabled, single-female head of households, at-risk youths, large family households, extremely low-income households, and unhoused individuals.

Incentivize Affordable Housing Development
In addition to making affordable housing development easier through simplifying processes. East Palo Alto can take additional steps to incentivize affordable housing development. • Policy 1.5: Pursuant to Government Code 65583.2 (h) and (i), sites that require rezoning to meet the RHNA for lower-income households and sites carried over from the 2015-2023 Housing Element to accommodate the needs of lower-income households shall be rezoned within the statutory deadline prescribed in Government Code 65583.2 (c). The rezoning shall commit to 20% lowerincome units, minimum densities, and objective development standards, and complying projects shall not require discretionary approval. One site is carried over from the 2014-2022 Housing Element – a 0.65-acre parcel at 851 Weeks with an existing zoning of 22-40 units/acres and a pending application for a 79unit SB 35 project. If a project contains at least 20% lower-income units and complies with objective development standards, discretionary approval shall not be required.

Target: Approve 851 Weeks as SB35 project or designate site for by-right approval for a qualifying project by Spring 2024.
• Policy 1.6: Seek and support financial resources from state, regional, and county housing programs, tax credits, and other sources that provide funding assistance for affordable housing projects to cover design and development costs and off-site public facility and infrastructure improvements.

Target: Annually survey Notices of Funding Availability (NOFAs) and work with developers to apply 223
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for funds for affordable housing projects and supporting public improvements. Prioritize assistance for projects in lower-resource areas as defined by AFFH analysis (including, but not limited to, westside of State Highway 101 and south of Bay Road west of University Avenue,) Encourage smaller smaller-scale housing that is relatively more affordable, including duplexes/triplexes and accessory dwelling units (ADUs), and incentivize the creation of deed restricted units within these properties.

By reducing the barriers to the creation of smaller properties, East Palo Alto will make it easier for the creation of both deed-restricted affordable housing, as well as housing that is naturally more affordable than occupying a full single-family home.
● Policy 1.7: Develop a “next-phase” streamlining effort for ADUs and JADUs, SB 9 projects, and any future small-development ministerial approval process that builds on lessons learned from the ADU Streamlining collaboration with EPACANDO and City Systems (See also Program 10.5 pertaining to ADU zoning amendments that are necessary to comply with current state laws and for numerical/geographical targets).
● Policy 1.8: Study feasibility and desirability of waiving or reducing fees or delaying payment of permit fees and development impact fees for ADUs and small projects, e.g., two or fewer units. ● Program 1.9: Develop outreach materials targeting smaller developers aimed at informing future applicants and improving the quality of Planning and Building applications received. ● Program 1.10: Implement a preapproved and modular ADU designs program or participate in proposed 21 Elements clearinghouse to facilitate streamlined review and reduce design costs of ADUs.
● Program 1.11: Develop proposals for relaxing or allowing flexible zoning standards (e.g., building setbacks and height, open space, parking, and density) to facilitate the development of 5 SB 9 and small infill housing projects to increase housing opportunities and housing types throughout the community. Target: Assist property owners to approve eight (8) SB9 units during the 6th cycle Housing Element Period; focus on opportunities sites in lower-density residential neighborhoods (e.g., under-utilized lots over 10,000 square feet in size.) ● Program 1.12: Develop an expedited legalization process for unpermitted second units. Identify zoning amendments to reduce the impediment to building ADUs, such as setback and open space standards. Identify potential funding sources to assist. ● Policy 1.13: Support and participate in a potential county-wide initiative to create a resource center to effectively educate homeowners, provide resources, and promote the construction of ADUs.
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● Policy 1.14: Seek available public and private sources of rehabilitation/repair funding and strengthen partnership with organizations in this area, such as Habitat for Humanity, to produce ADUs. Seek assistance for correcting code compliance issues to legalize or upgrade existing ADUs.

Target: Annually research available funds and partnerships and implement incentives with the goal of approving at least 72 new or legalized ADUs in single-family zoning districts between 2024 and 2028.

Develop long-term, sustainable funding sources that are flexible and may be used for affordable housing production and preservation and to prevent displacement and homelessness.

East Palo Alto can increase the availability of affordable housing through strategic investments in new and existing affordable housing projects, while also assisting residents with other programs, such as rental relief.
• Policy 1.15: Implement the 2022 approval of Measure L which increased and expanded the City’s existing Gross Receipts Tax on rental residential properties for affordable housing and support programs.
• Program 1.16: Complete passage of this five-year strategic affordable housing plan to implement the 6th Cycle Housing Element goals, policies, and programs, and sets priorities for allocation of the City’s affordable housing revenue sources for a finite period (1 year to 5 years). Establish priorities to implement fair housing policies and programs in low resource neighborhoods per the AFFH analysis. Target: Adopt the AHS with numerical goals and place-based funding priorities to implement the goals, policies, and programs in the Housing Element. • Policy 1.17: The Planning, Public Works, and Housing Departments will collaboratively pursue state grant funds wherever possible to support affordable housing projects and programs to address homelessness in the City. Target: Annually research available funds for affordable housing projects and homelessness programs. Prioritize funds to assist lower-resource areas and the unhoused population.

Take reasonable measures to reduce the cost of development for fully affordable housing developments.

In addition to reducing zoning barriers to the construction and seeking funding for affordable housing, East Palo Alto can take steps that reduce the cost of developing affordable housing. ● Policy 1.18: Use the opportunity of the Ravenswood Business District (RBD) Specific Plan Update or initiate a city-wide study on the feasibility and desirability of fee waivers or reductions or deferred fee payments for fully affordable housing projects; additionally, consider providing City financial 225
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assistance to cover these fees.
● Policy 1.20:8Incorporate parking reductions into the City’s Transportation Demand Management Program to comply with state law AB2097 that eliminates parking minimums within one-half mile of major transit stops for affordable housing projects.

Encourage housing on sites zoned for mixed use in the Ravenswood/4 Corners Specific Plan Area.

Through the planning process for the Ravenswood/4 Corners area, additional affordability can be incentivized.
● Policy 1.21: For sites within the RBD Specific Plan Area, study feasibility and effectiveness of an RBD-specific density bonus, relaxed zoning controls, minimum densities (particularly for mixed-use sites), streamlined subdivision approvals, and by-right or ministerial approvals. Incorporate provisions into the Specific Plan Update and Development Code in summer 2024. (See also related Program 10.8)
Develop Affordable Housing on Public Property
The cost of land and limited space for affordable housing is a challenge most cities face. By providing public land, East Palo Alto could create more opportunities for deed restricted, affordable housing to be developed.
● Program 1.23:9 Work with County of San Mateo to complete land swap and determine feasibility of the County developing affordable housing at 2277 University. Comply with the Surplus Lands Act. (This project is not included in Sites Inventory but could potentially be constructed during Housing Element 6th Cycle). Target: Support the County in redeveloping the property for at least ten (10) housing units, or whatever is found feasible, encouraging the County to develop permanent supportive housing.
● Program 1.24: Work with the Ravenswood City School District to facilitate the development of the district-owned parcel at 2120-2160 Euclid Avenue as affordable housing. Comply with the Surplus Lands Act. Target: Thers is a pending application to develop 430 units of affordable housing for lower income households on the site.

Incentivize “missing middle” housing, or smaller-scale housing that is affordable to households at 80- 120% of Area Median Income.

Policy 1.25: Revise City zoning and subdivision standards to increase compatibility with SB 9 (e.g., flexible 8 Policy 1.19 was omitted from the 2023-2031 Housing Element. As such, to maintain numbering consistency with the Housing Element, there is no policy 1.19 in this document, either. 9Policy 1.22 was omitted from the 2023-2030 Housing Element. As such, to maintain numbering consistency with the Housing Element, there is no policy 1.22 in this document, as well.
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zoning standards for setbacks, open space, height, and density) and make process improvements to encourage application of SB 9 on appropriately zoned parcels. Conduct informational outreach to property owners whose properties are prime candidates for SB 9 projects, including advising them of the ministerial approval process. Target: Assist property owners to approve eight (8) SB9 units during the 6th cycle Housing Element Period with focus on opportunities sites in lower-density residential neighborhoods (e.g., under-utilized lots over 10,000 square feet in size.) Monitor progress on Housing Element Policies, Programs, and Sites Inventory.

By monitoring the progress of the 2023-2031 Housing Element goals, East Palo Alto will be able to revise policies and programs to address challenges that may arise when creating affordable housing.

Policy1.26: Annually review overall progress and effectiveness in meeting RHNA and evaluate progress in meeting Housing Element policies and programs; include information in the Annual Progress Report to HCD. Track the production of inclusionary housing units, ADUs, SB 9 units, and housing for special needs populations. If the City is not making sufficient progress in meeting its Housing Element goals and its RHNA for lower-income units by 2027 (i.e., 130 lower-income units under construction or completed by 2027), consider alternative land use strategies within six months. Possible actions include amending policies and programs, defining new actions, or identifying alternative housing sites, including rezoning if necessary, and strategies to facilitate a variety of housing choices, such as encouraging missing middle zoning (small-scale multi-unit projects), adaptive reuse, and additional ADUs and/or JADUs.

GOAL 2 | Promote and Preserve Homeownership
Homeownership provides stability for families and a means to build wealth. The City supports efforts to increase homeownership, especially for low- and moderate-income households.

Promote financial literacy as a means of encouraging homeownership and support first-time homebuyers.
● Policy 2.1: Develop a City led homebuyer support program or programs tailored to the needs of lower and moderate-income households in East Palo Alto, prioritizing outreach to neighborhoods with a proportionally higher percentage of rental households, such as the westside of Highway 101. Target: Propose a homebuyer support program with a goal of assisting a minimum of eight (8) residents during the 6th cycle Housing Element period. ● Policy 2.2: With the assistance of the City’s grant coordinator, seek and apply for funds from state and other sources to create and finance a homebuyer support program.

Create pathways to affordable homeownership opportunities. • Policy 2.3: One pathway to homeownership is through tenant purchase of their buildings. The City 227
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hopes to create a program that will facilitate a minimum of two single family and one multi-family tenant purchases between 2024 and 2028.

Advocate for homebuyer and homeownership programs at the county, regional, and state levels. • Policy 2.4: East Palo Alto will continue to work with its partners to advocate homebuyer and homeownership programs at the county, regional, and state levels.

GOAL 3| Preserve Existing Affordable and Rent Stabilized Housing To assure housing stability for existing residents, it is important to preserve housing that is affordable to East Palo Alto residents. These affordable units are community assets that cannot be replaced easily.

Ensure that the City’s deed-restricted affordable housing and Below Market-Rate (BMR) portfolio remains well-maintained and monitored.
• Program 3.1: Continue working with EPACANDO and Bay Area Affordable Homeownership Alliance (BAAHA) on the existing BMR Program contract and draft Request for Proposals (RFP) for next phase of BMR Program management, including additional rental and for-sale inclusionary housing units. Target: Maintain 53 existing BMR units and add at least eight (8) new BMR ownership or rental units during the 6th cycle Housing Element period.

Improve data on the affordability of the City’s rental housing stock outside of the Rent Stabilized portfolio.
• Program 3.2: With the allocated City Council funding, research potential rent registry program and administer Request for Proposals for potential rent registry program administrator.

Leverage County initiatives and affordable housing resources to increase public awareness of affordable housing opportunities in East Palo Alto.
• Program 3.3: Work with the County of San Mateo and landlords to list all affordable housing projects and inclusionary units on Doorway, a new regional platform for searching and applying for affordable housing and finding affordable housing resources and conduct proactive outreach to East Palo Alto residents.

Protect and preserve the City’s supply of rent-stabilized affordable housing units. • Policy 3.4 Continue to support the function of the Rent Stabilization Board to enforce the City’s Rent Stabilization Ordinance to protect tenants from unreasonable rent increases, to protect tenants from unlawful evictions, and to allow landlords sufficient rental income for maintenance 228
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and operating expenses and capital improvements. Target: The City plans to assist the approximately 2,500 registered units under the Rent Stabilization Ordinance.

GOAL 4 | Prevent Displacement of East Palo Alto Residents Given high rents and sales prices, it is crucial that the City take action to help East Palo Alto residents stay in their communities.

Connect the creation of new jobs in the City from commercial development to the creation of new housing at the appropriate affordability levels.

New jobs create the need for additional housing, at a range of price levels and affordability. City policies can assure that these new jobs help to support housing affordable to both new and existing residents. ● Policy 4.1: As part of the Ravenswood Business District (RBD) Specific Plan update, develop a requirement to build new housing at specified levels of affordability based on a numerical linkage to office/R&D square footage in the RBD. Target: This plan should allow for the creation of between 1,350 and 1,600 new housing units, of which 220 should be approved/entitled between 2024 and 2028.
● Program 4.2: Participate in countywide nexus study led by 21 Elements to update the existing Commercial Linkage Fee.

Promote the preservation of existing housing stock and rehabilitation of housing that is at-risk due to age, structural deficiencies, etc.
● Policy 4.3: Develop a preservation strategy that addresses funding sources, identification of properties, and partnerships that can lead to preservation of affordable housing in East Palo Alto. Prioritize assistance to lower-resource neighborhoods identified in the AFFH analysis (including, but not limited to, westside of State Highway 101, south of Bay Road/west of University Avenue, and multi-family housing on southside of Bay Road and east of University Avenue.) Target: Identify properties and reach out to organizations to achieve the minimum targets in Policy 4.6 during the 6th cycle Housing Element period. ● Policy 4.4: Identify and maintain a list of at-risk units and substandard buildings throughout the City. Ensure property owners comply with the State Preservation Notice Law. Actively engage with property owners to reach agreements to preserve at-risk units and properly maintain their properties. Target: Through these efforts, the City hopes to preserve or conserve the affordability of at least thirteen (13) substandard or at-risk units; set a goal to improve a minimum of thirteen (13) substandard or at-risk units between 2024 and 2028. 229
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● Policy 4.5: Study improvements to the City’s process for addressing code violations on residential properties, including, but not limited to, unpermitted second units. ● Program 4.6: Develop a City housing rehabilitation program for City Council consideration that covers both single-family homes and multi-family apartments to preserve affordable housing opportunities, encourage proper maintenance and repairs, promote renovation, and increase energy conservation. The City will prioritize neighborhoods with a concentration of units in need of rehabilitation (as outlined in the Housing Element, including, but not limited to, westside of State Highway 101, south of Bay Road west of University Avenue, and multi-family housing on southside of Bay Road east of University Avenue). Target: Propose a program with a goal of renovating a minimum of four single-family and 13 multi-family homes between 2024 and 2028.

Support housing stability of existing lower-income homeowners and enable the community’s seniors to age in place.
● Program 4.7: Research establishing and funding a City home repair program to assist low-income homeowners with major repairs and rehabilitation to address acute safety and livability issues.

Develop a public outreach plan and inform homeowners of financial assistance available from other agencies such as energy conservation and electrification incentives. Assistance will be targeted to lower-resource neighborhoods outlined in the AFFH analysis (including, but not limited to, westside of State Highway 101 and south of Bay Road west of University). The City has a goal of assisting a minimum of five low-income homeowners between 2024 and 2028. ● Policy 4.8: Continue to implement public accessibility improvements in accordance with the City’s ADA Compliance Plan and allow for reasonable accommodations through Municipal Code Chapter – Reasonable Accommodations and Development Code Chapter 18.98 – Reasonable Accommodations as needed to comply with all applicable state laws. ● Policy 4.9: Study models of foreclosure prevention in similarly sized cities, whether through local investment or leveraging outside funding and evaluate establishing a mortgage assistance program for low-income households, with the goal of assisting at least three (3) homeowners between 2024 and 2028.

Promote community/cooperative ownership of land and housing in East Palo Alto. • Program 4.10: Evaluate opportunities to support and/or leverage local community land trusts (CLTs) to create community ownership of new or preserved affordable housing, e.g., through scattered-site ADUs, small inclusionary projects, or preservation projects. The City's goal is to participate in at least one annual workshop to provide outreach and education to CLTs and similar organizations to create affordable rental and ownership housing with identification of possible opportunity sites.
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Prevent displacement due to high housing cost burden and barriers to housing, such as rental deposits.
● Policy 4.11: Continue to appropriate funds and consider increasing funds for direct emergency financial assistance or rent relief to be administered by a qualified organization identified through a Request for Proposals (RFP) process. Conduct proactive public outreach, particularly to lowerincome households and neighborhoods where a high housing cost burden has been documented in the fair housing assessment. The City has a goal of providing direct emergency financial assistance or rent relief to 30 households per year, subject to funding availability. ● Program 4.12: Develop a proposal for City Council consideration for a direct financial assistance program for first and last month’s rent/security deposit assistance.

Implement an effective and fair housing compliant Local Preference Policy. • Policy 4.13: Complete and enforce guidelines on the City’s existing Local Preference Policy.

Provide access to living wage jobs to allow residents to afford to remain to live in East Palo Alto. • Program 4.14: East Palo Alto residents passed Measure HH in 2018, which created a parcel tax on large office developments. Funds from Measure HH can be used to implement a Workforce Development Program to provide job training, apprenticeships, and job placement services to residents through partnerships with community-based non-profit organizations and private companies. Programs shall include proactive outreach to East Palo Alto residents, and service agreements shall define performance goals and metrics and required deliverables. The City’s goal is to assist at least eighty (80) East Palo Alto residents through the Pilot Workforce Development Program during 2024-2025 and evaluate continuing and expanding the program beyond 2025.

GOAL 5.1 | Apply Environmental Principles in Planning for New Housing Development
East Palo Alto faces simultaneous challenges of rising sea levels and potential shortages in clean, drinkable water. These challenges directly affect the ability to build new affordable housing and protect existing housing and residents.

Adopt policies and programs to address environmental justice issues in the community. • Program 5.1: Update the Environmental Justice Element (Health and Equity) in the City’s General Plan to include a comprehensive set of policies and programs and an implementation plan to address environmental justice issues and public outreach, engagement, and transparency; scope of work to include a robust community engagement process is integrated into the preparation of the Housing Element.
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Address water and sewer system constraints to housing production, to the extent they are within the City’s control, through targeted capital and governance improvements. ● Program 5.2: Establish and implement a plan to address the San Mateo County Local Agency Formation Commission (SMCLAFCo) Municipal Service Review and to resolve the delays to housing development caused by issues with the East Palo Alto Sanitary District. ● Program 5.3: Implement the Water System Master Plan adopted in 2022 and complete the firstphase capital improvements in the plan. Update the Urban Water Management Plan to conform with the Master Plan and ensure adequate water service to parcels identified as developable in the Housing Element Sites Inventory (adequate water supply but water infrastructure upgrades may be needed for certain locations).
● Policy 5.4: Work with water and sewer service providers to adopt a policy that prioritizes water and sewer capacity allocations to affordable housing projects and low-income households in accordance with state law (SB1097).

Minimize new housing in highest-risk areas prone to flooding/sea level rise or due to environmental contamination.
● Program 5.5: Leverage community partnerships to utilize and maintain data and maps wherever possible to monitor areas subject to flooding and identify sites for future development and to comply with Government Code 65302.
● Program 5.6: Develop an environmental “overlay” map with most up-to-date data to avoid housing in at- risk areas or with prescribed mitigation measures.

Prioritize flood control, infrastructure, and transportation improvements in lower-resource areas. • Policy 5.10:10 Pursue funding and prioritize neighborhoods of concentrated need for future investment, which may include but is not limited to rehabilitation, safe routes to schools, parks, transit, and active transportation. Evaluate the distribution of infrastructure and transportation investment by higher versus lower need areas when updating the Capital Improvement Program (CIP). Assess the needs in lower-resource areas and implement actions to ensure an equitable distribution of investment. Target: Ensure that the CIP and economic redevelopment plans reflect the needs of lower-resource areas as identified in the AFFH analysis (including, but not limited to, westside of Highway 101 and south of Bay Road west of University Avenue). • Policy 5.11: Support local and regional flood control and infrastructure projects that benefit existing and future residents. Prioritize improvement projects that benefit high need and lowerresource areas as identified in AFFH analysis. Target: Support the San Francisquito Creek Joint 10 Policies 5:10 and 5:11 are grouped with Goal 5.1 for clarity. 232
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Powers Authority (SFCJPA) in completing the following flood control projects to benefit residents on the westside of the State Highway 101: Palo Reach II project – channel improvements as well as top of bank improvements to enhance the creek and increase flow/capacity; Pope Chaucer Bridge Project improvement project in Menlo Park to replace the bridge to enhance flow and capacity; and Newell Bridge Replacement Project – replace bridge to enhance flow and capacity under the bridge.

GOAL 5.2 | Expand and establish programs to promote fair housing practices for East Palo Alto residents.

East Palo Alto is a mixed-income, multi-racial community with many households that have few affordable options elsewhere in the Bay Area. Programs and policies identified as part of the City’s plan to Affirmatively Further Fair Housing (AFFH) can improve the housing choices and stability for East Palo Alto residents.
● Program 5.7: Implement fair housing and anti-eviction programs using Measure O/Measure L and other qualifying local revenue sources to fund community-based organizations to provide legal services, financial assistance, case management, referrals, proactive community outreach (social media, workshops, flyers), resource information, and a staff a citizen advocacy committee.

Contracts with organizations will specify quantified deliverables for each of these areas. Target:

See the performance metrics for this program in Section 6.4, Implementation Plan. ● Policy 5.8: Continue to support agencies such as Project Sentinel, Community Legal Services in East Palo Alto, and Legal Aid at Work that provide consultation and landlord/tenant mediation services for residents.
● Policy 5.9: Prioritize providing fair housing and support services to special needs populations such as extremely low-income households, persons with disabilities, female heads of households, large family households, seniors, at-risk youths, and households at-risk of homelessness. Target proactive public outreach to lower resource neighborhoods such as western and northern areas in East Palo Alto or projects where there is a higher presence of special needs populations based on the fair housing analysis. The City has a goal of providing fair housing and support services for minimum of 20 special needs individuals or households between 2024 and 2028.

GOAL 6 | Promote Safe and Healthy Housing in East Palo Alto A range of policies and programs can improve the health and well-being of lower-income East Palo Alto residents, whether in deed-restricted, rent stabilized, or market-rate housing.

Strengthen monitoring and enforcement of habitability issues. • Policy 6.1A: Annually review the City’s habitability complaints and the Rent Stabilization 233
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Ordinance’s rules and regulations s and forward any recommended changes or updates for enforcing habitability issues to the City’s Rent Stabilization Board. • Program 6.1B: Continue to use code enforcement to support housing preservation and neighborhood quality and identify housing maintenance issues. Refer property owners with compliance needs to the City’s programs for financial assistance on code corrections, emergency repairs, and rehabilitation. Between 2024 and 2028, the City, through code enforcement efforts, is setting a goal to correct code violations and make necessary repairs and improvements for a minimum of 13 housing units.

Incorporate amenities into multifamily housing that support households with children. • Policy 6.2: Determine the most effective means of incentivizing or requiring childcare facilities in new affordable housing developments and commercial developments.

Improve energy conservation and reduce the carbon footprint of residential buildings. • Program 6.3: Implement the East Palo Alto Reach Codes, which became effective in January 2021 and apply to all new construction and substantial rehabilitations and additions; continue to explore expanding building electrification requirements and support incentive programs for retrofitting existing buildings.

Improve earthquake readiness and resilience.
● Program 6.4: Complete and implement the recently updated Multi-Generational Local Hazard Mitigation Plan.
● Program 6.5: Update the City’s Safety Element to address earthquakes, flooding, and other natural and manmade hazards; consider policies such as establishing a seismic retrofit program to address vulnerable populations living in soft-story buildings and establishing a program for remediation of lead-based paint in older residential buildings; incorporate targeted outreach to vulnerable and special needs populations to ensure their needs are well-addressed.

Ensure implementation and enforcement of flood protection and prevention measures. ● Policy 6.6: Continue to disseminate information through onsite resources and workshops to homeowners, property owners, and developers on FEMA, state, and local regulations on floodplain construction and management practices.
● Program 6.7: Continue to participate in FEMA’s Community Rating System Program to ensure that new housing development complies with floodplain construction standards with submission of required certifications.
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GOAL 7 | Create More Housing Opportunities for Special Needs Households, including Large Households, People at Risk of or Experiencing Homelessness, and Individuals with Disabilities
East Palo Alto is committed to providing housing for our residents who are most in need of affordable housing.

Incorporate special housing needs into City-supported future affordable housing developments. • Policy 7.1: For affordable housing projects located near high-quality transit and on City-owned land, with City subsidy, or where otherwise legally defensible, require developers of affordable housing to demonstrate how they will serve people with disabilities in the development.

Provide housing solutions and support services for unhoused residents in East Palo Alto. ● Program 7.2: Finalize the Master Temporary Use Permit (MTUP) process for the temporary housing program rollout that includes City coverage of permit fees to provide housing for individuals experiencing homelessness in the community. The City has a goal of assisting a minimum of five (5) RVs through the MTUP program between 2024 and 2028. ● Program 7.3: Evaluate lessons learned and options for longer-term, holistic solutions to RVs parked in public rights of way after the conclusion of the RV Safe Parking Program. ● Program 7.4: Research all available public funding sources to address homelessness and consider City investment of funds for homeless outreach, case management and supportive housing to supplement the countywide system. Seek funds to assist at least 38 unhoused individuals between 2024 and 2028.
● Policy 7.5: Pursue expansion of support programs for unhoused residents by establishing partnerships with other public agencies, private corporations and foundations, and non-profit service providers. The City has a goal of pursuing programs and partnerships providing support services for a minimum of 38 unhoused households or individuals between 2024 and 2028. ● Policy 7.6: Continue to support the low barrier navigation center and emergency shelter operated by WeHope, a community-based non-profit organization, which provides an interim shelter and supportive services for unhoused individuals. Accommodate the special needs of at-risk youths, households with children, and persons with disabilities. The City has a goal of making available a minimum of 100 beds each night for unhoused and at-risk individuals between 2024 and 2028.

Reduce overcrowding and unsafe housing conditions related to housing affordability in East Palo Alto. ● Policy 7.7: Develop options for incentivizing deeply affordable housing units that serve larger household sizes, such as allowing additional density or other relaxed or flexible zoning 235
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regulations. The City has a goal of producing a minimum of five larger affordable housing units between 2024 and 2028.
● Policy 7.8: Continue to require residential projects to include Extremely Low-Income housing units through the City’s Inclusionary Housing Program and encourage production of deedrestricted ADUs serving Extremely Low and Very Low-Income households as an Inclusionary Housing Alternative Compliance option instead of paying in-lieu fees for fractional units. The City has a goal of producing a minimum of 43 extremely low and very low-income deed restricted units (including ADUs) between 2024 and 2028.

GOAL 8 | Improve Transparency and Communication between the City and the Public on Housing Issues and Housing Availability It is important that East Palo Alto residents are aware of how the City uses its resources to address housing affordability and stability, and that residents are aware of affordable housing units and programs that could stabilize and improve their lives.

Make the City website, social media, and newsletter a reliable source of housing information and make parallel efforts to reach residents through mailers, in-person, and virtual meetings. ● Program 8.1: Improve and maintain the Housing website as a primary means of communicating the City’s efforts around housing. Expand proactive measures to inform homeowners, landlords, and tenants about available local and County housing resources and supportive services. ● Policy 8.2: Create a budget for mailers and non-digital outreach on Housing workplan items at the start of each fiscal year.

Incorporate language accessibility/language justice into City materials and meetings. • Policy 8.3: Provide translation of materials and interpretation of City Council, Planning Commission, Rent Stabilization, and other City meetings in alignment with City’s Language Policy.

GOAL 9 | Build City Capacity for Long-term Housing Planning and Implementation of a Range of Housing Programs and Initiatives The successful implementation of this affordable housing strategy depends on having the appropriate level of staffing, either internally or through contracts and cooperation with other partners.

Maintain sufficient Housing Division staff to implement this Affordable Housing Strategy. • Policy 9.1: Regularly assess the level of staffing or contract assistance to ensure that sufficient staffing is committed to implementing the policies and programs in this Affordable Housing 236
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Strategy in a timely manner.

Seek efficiency improvements and collaborative staffing and resource opportunities to simultaneously implement this Affordable Housing Strategy programs and other Housing Division responsibilities. • Program 9.2: Along with other San Mateo County communities, access the services of the HEART of San Mateo County’s new Housing Consulting Services program, so as to access additional housing expertise and staffing.

Work in close collaboration with the Planning Division to more efficiently achieve both divisions’ goals and workplan items.
• Program 9.3: Collaboratively update the City’s Development Code to align Planning and Housing objectives, with an emphasis of resolving inconsistencies and ensuring consistency with the City’s General Plan.

Seek financing sources for affordable housing construction and preservation. • Policy 9:4: As Notices of Funding Availability (NOFA) are issued (typically annually), proactively work with the City’s grant coordinator to selectively apply for regional, state, and federal grants to finance qualifying affordable housing projects and to fund East Palo Alto housing programs, such as housing rehabilitation and first-time homebuyers program Monitor the Housing Element Implementation Plan
• Policy 9.5: Review the Housing Element’s Sites Inventory annually to assess progress in achieving the City’s RHNA affordable housing allocation and as needed, identify additional sites or adjusting development policies, programs, and priorities.

Monitor the Inclusionary Housing Ordinance
• Program 9.6: Evaluate the effectiveness of the Inclusionary Housing Ordinance (IHO) in producing affordable units and the financial impact of the inclusionary requirements and Alternative Compliance Options on residential development. Evaluate the effect of changing economic, development, and financing conditions and the cumulative financial impact of development impact fees and exactions. Following completion of the evaluation, amend the IHO to reduce constraints within six months if necessary. Continue to assess the financial impact of the IHO on individual projects and implement further measures to reduce the barriers to housing production and achieve the City’s RHNA if needed. Additionally, include the IHO requirements in the financial feasibility analysis of impact fees on residential development; these analyses are scheduled every five years for consistency with the Mitigation Fee Act (next analysis to be completed in 2024; subsequent analysis in 2029/2030).
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Goal 10 | Amend Zoning and Other Development Regulations to Facilitate the Construction of Affordable
The City of East Palo Alto will undertake changes in zoning and other development regulations that will ease the development of housing, with a particular focus on those efforts which will make it easier to create affordable and special needs housing.

Require replacement housing to be provided for applicable housing developments. • Policy 10.1: For applicable development projects that will be removing residential units, require a replacement housing program for lower-income households in accordance with State requirements (Government Code 65583.2(g)).

Update zoning and development standards as needed for Emergency Shelters. • Program 10.2: Evaluate current sites, development standards, and approval process and amend the Development Code to comply with Assembly Bill 2339 and other applicable state laws. AB 2339 adds specificity on how jurisdictions plan for emergency shelters and ensure sufficient capacity for low-income housing in their housing elements. This law requires that the identified zones for emergency shelter meet at least one of the following: (1) vacant and zoned for residential use; (2) vacant and zoned for nonresidential use if the local government can demonstrate how the sites are located near amenities and services that serve people experiencing homelessness; or (3) nonvacant if the site is suitable for use as a shelter in the current planning period. Amend the Development Code to address zoning requirements, update the definition of emergency shelters, ensure sufficient capacity for emergency shelters in zones with proximity to transportation and homelessness services, establish objective development standards, and comply with all other requirements of AB 2339.

Update zoning as needed for by-right Permanent Supportive Housing. • Program 10.3: Update zoning to so that Permanent Supportive Housing would be allowed by-right in residential and mixed-use zoning districts, as required by the State (Government Code 65651).

Update zoning as needed for Housing for Farmworkers.
• Program 10.4: Update zoning and the definition of a “housekeeping unit” to comply with the state Employee Housing Act and adopt a “barrier-free” definition that does not subject persons with disabilities to special regulations.

Update zoning as needed for Accessory Dwelling Units (ADU) • Program 10.5: Amend the ADU ordinance to comply with State law, pending formal comment from HCD by December 2023. Further actions include programs and policies to facilitate construction of ADUs (refer to Policies/Programs 1.7 to 1.14 for specifics). Consider additional measures to remove zoning impediments such as relaxing side and rear yard setback and open space standards and 238
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facilitating conversion of unpermitted accessory structures to ADUs. The City has a goal of approving at least 72 ADUs between 2024 and 2028.

Update zoning as needed for residential care facilities and group homes (7+). • Program 10.6: Update zoning regulations for residential care facilities and group homes (7+) to comply with state law and to reduce barriers for establishing facilities for special needs populations such as persons with disabilities, including revising existing spacing constraints.

Update other zoning ordinance regulations to comply with latest state law and reduce impediments for residential development.
• Program 10.7: Review zoning ordinance regulations for compliance with the current state laws and reduce development impediments or provide incentives such as standards pertaining to parking, open space, density bonuses, and objective design standards. Implement Policies/Programs 1.1 to

1.6, 1.18. 1.20, 1.21 and 1.25 for a comprehensive multi-prone approach to reduce regulatory constraints, improve development processing, create incentives for housing development, and reduce, mitigate, and not constrain housing supply, cost, and ability to achieve maximum densities.

Adopt updates to the Ravenswood Business District/4 Corners Specific Plan to include residential uses at designated locations.
• Program 10.8: Adopt an update to RBD Specific Plan to allow residential and mixed-use development at designated locations in the plan area and address provisions as noted in other Housing Element and Affordable Housing Strategy policies/programs. Concurrently, rezone parcels for residential and mixed-use development. Additionally, establish by-right approval, minimum residential densities, objective design standards, minimum residential requirements for mixed use zoning, reduce parking set flexible open space standards for affordable housing, create a transportation demand management (TDM) program, streamline subdivision approvals, and undertake other re-zoning efforts to reduce development constraints and create incentives for developments catering to special needs populations. Further, the City will resolve inconsistencies between the General Plan and current Specific Plan, (See related Policy 1.21). The City’s goal is to zone sites and define minimum densities and objective design standards to accommodate 1,350 to 1,600 housing units within the Specific Plan area.

Facilitate single-room occupancy (SRO) and transitional supportive housing. • Program 10.9: Develop procedures and review zoning regulations with the objective of encouraging and facilitating the development of SRO projects and transitional supportive housing at suitable locations. The City's goal is to streamline zoning regulations as needed, identify potential funding, and reach out to developers (e.g., through a request for proposals or qualifications) to construct an SRO or supportive housing project on a suitable site in the City with convenient transit service. 239
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Ensure General Plan and zoning consistency.
• Policy 10.10: During the 6th cycle Housing Element, ensure that the General Plan land use designation and zoning are consistent for all properties included in the City’s RHNA Sites Inventory. 240
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PROGRAMMATIC RESOURCES AND USES
This section will explore the resources available for the development of affordable housing more generally, followed by more detail on the sources and uses of funds that East Palo Alto has to support affordable housing development as well to address the need for affordable housing.

The City and affordable housing owners and developers can use a wide range of resources to build and preserve affordable housing. However, almost every affordable housing project must cobble together funds from multiple sources. This section outlines those sources, which include federal, state, regional, and local sources of funds.

Federal Resources
The main source of funding for affordable housing in the United States is the Low-Income Housing Tax Credit (LIHTC) program, which raises equity by selling tax credits to investors. These funds can be used for the acquisition, rehabilitation, or new construction of affordable housing. These credits are managed by the California Tax Credit Allocation Committee.

The U.S. Department of Housing and Urban Development (HUD) makes funds available directly to affordable housing developments for seniors through the Section 202 program. HUD also provides fund to local communities to address housing, homelessness, and a range of community development needs through three programs:
● Community Development Block Grants (CDBG) fund the creation and preservation of affordable housing, as well as programs that meet the needs of low- and moderate-income households and communities, ranging from home repair programs to job training, to public infrastructure. ● The HOME Investment Partnership Program (HOME) funds housing programs serving households with incomes less than 60% of Area Median Income, and can be used for housing acquisition, construction, or rehabilitation, as well as for tenant rental assistance and homebuyer assistance.
● The Emergency Solutions Grants Program (ESG) funds services that address homelessness. ● The Housing Opportunities for Persons with AIDS (HOPWA) program funds tenant rental subsidies and other programs intended to keep persons with HIV/AIDS stably housed.

East Palo Alto does not receive CDBG, HOME, or ESG funds directly from HUD. The County of San Mateo receives annual allocations of these funds, which may be used in East Palo Alto and other San Mateo County communities that do not receive a direct allocation. For Federal Fiscal Year 2023, the County of San Mateo received $2,449,879 in CDBG funds, $1,497,141 in HOME funds, and $228,547 in ESG funds.

The City and County of San Francisco receives an allocation of HOPWA funds each year ($7,410,761 in FFY2023), which also may be used in San Mateo County.

In addition, East Palo Alto residents can get assistance in paying their rent through HUD voucher programs including the Housing Choice Voucher (Section 8) program, and the Veterans Affairs Supportive Housing (VASH) program. Locally, these programs are administered by the Housing Authority 241
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of the County of San Mateo.

State Resources
The State of California funds a range of affordable housing programs. While many programs fund services and affordable housing developments directly through funding rounds, East Palo Alto may be eligible to apply for some funds directly. These programs are starred (*). Programs include:

Program Description
Affordable Housing &
Sustainable Communities
Program (AHSC)*
Funds land use, housing, transportation, and preservation projects that support infill development and reduced greenhouse gas emissions.

CalHome* Grants to local public agencies and nonprofits to assist first-time homebuyers become or remain homeowners through deferredpayment loans. Funds can also be used for ADU/JADU assistance (i.e., construction, repair, reconstruction, or rehabilitation) CalHFA Permanent Loan
Programs
Provides long term financing for the construction or acquisition and rehabilitation of affordable housing developments.

Cleanup Loans and
Environmental Assistance
to Neighborhoods
(CLEAN) Program*
Department of Toxic Substances Control program that provides low-interest loans to investigate, cleanup, and redevelop abandoned and underutilized urban properties.

California Emergency
Solutions and Housing
(CESH)
Grants for activities to assist persons experiencing or at-risk of homelessness.

California Self-Help
Housing Program*
Grants for sponsor organizations that provide technical assistance for low- and moderate-income families to build their homes with their own labor.

Emergency Housing
Assistance Program
(EHAP)*
Funds for emergency shelter, transitional housing, and related services for the homeless and those at risk of losing their housing.

Golden State Acquisition
Fund (GSAF)*
Golden State Acquisition Fund (GSAF)
Homekey* Grants to acquire and rehabilitate a variety of housing types (e.g., hotels, motels, vacant apartment buildings) to serve people experiencing homelessness or who are also at risk of serious illness from COVID-19.

Homeless Emergency Aid
Program (HEAP)
$500 million block grant program designed to provide direct assistance to large cities, counties, and Continuums of Care (CoCs) to address the homelessness crisis.

Homeless, Housing
Assistance and Prevention
(HHAP) Program
Provides grants to large local jurisdictions and to CoCs to support regional coordination and expand or develop local capacity to address immediate homelessness challenges.

Housing for a Healthy Funding for supportive housing opportunities intended to create 242
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California (HHC) supportive housing for individuals who are recipients of or eligible for health provided through Medi-Cal.

Housing Navigators
Program
$5 million in funding to counties for the support of housing navigators to help young adults aged 18 to 21 secure and maintain housing, with priority given to young adults in the foster care system.

Housing-Related Parks
Program*
Funds the creation of new park and recreation facilities or improvement of existing park and recreation facilities that are associated with rental and ownership projects that are affordable to very low- and low-income households.

Infill Infrastructure Grant
Program (IIG)
Grant funding for infrastructure improvements for new infill housing in residential and/or mixed-use projects.

Local Early Action
Planning
(LEAP) Grants*
Assists cities and counties to plan for housing through providing one-time, non-competitive planning grants.

Local Housing Trust Fund
Program (LHTF)
Provides loans for the acquisition, predevelopment expenses and development of affordable rental housing projects, transitional housing projects, emergency shelters and homeownership projects, including down payment assistance to qualified first-time homebuyers, and for rehabilitation of homes owned by incomeeligible homeowners.

Mobile-home Park
Rehabilitation
and Resident Ownership
Program (MPRROP)*
Low-interest loans for the preservation of affordable mobile-home parks.

Multi-Family Housing
Program (MHP)
Low-interest, long-term deferred-payment permanent loans for new construction, rehabilitation, and preservation of permanent and transitional rental housing for lower-income households.

No Place Like Home Invests in the development of permanent supportive housing for persons who need mental health services and are experiencing homelessness or chronic homelessness, or at risk of chronic homelessness.

Permanent Local Housing
Allocation Program
(PLHA)*
Grants (competitive for non-entitlement jurisdictions) available to cities to develop new multifamily affordable rental housing, to substantially rehab and deed restricted existing rental housing, or to assist persons at risk of homelessness through rental assistance, rapid rehousing, or transitional rental housing.

Predevelopment Loan
Program (PDLP)*
Short-term loans to cities and non-profit developers for the continued preservation, construction, rehabilitation, or conversion of assisted housing primarily for low-income households.

Regional Early Action
Planning (REAP) Grants
Grant funding intended to help COGs and other regional entities collaborate on projects that have a broader regional impact on housing.

SB 2 Planning Grants
Program*
One-time funding and technical assistance to help local governments adopt and implement plans and process
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improvements that streamline housing approvals and accelerate housing production.

Supportive Housing MultiFamily Housing Program
(SHMHP)
Low-interest loans to developers of permanent affordable rental housing that contain supportive housing units.

Transformative Climate
Communities (TCC)
Program*
Competitive grants for planning and implementation of
community-led development and infrastructure projects that achieve major environmental, health, and economic benefits in the state’s most disadvantaged communities.

Transit Oriented
Development Housing
Program (TOD)
Low-interest loans and grants for rental housing that includes affordable units near transit.

Transitional Housing
Program (THP)
Funding to counties for child welfare services agencies to help young adults aged 18 to 25 find and maintain housing, with priority given to those previously in the foster care or probation systems.

Veterans Housing and
Homelessness Prevention
Program (VHHP)
Long-term loans for development or preservation of rental housing for very low- and low-income veterans and their families.

Workforce Housing
Program*
Government bonds issued to cities to acquire and convert marketrate apartments to housing affordable to moderate-/middleincome households, generally households earning 80% to 120% of AMI.
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Regional Resources
While we cannot predict how much, if any funding will become available from the following sources, there a range of other local sources that can be used in East Palo Alto, including:
● The Bay Area Preservation Pilot (BAPP) is a Metropolitan Transportation Commission (MTC) program that provides loans for the preservation of existing, unsubsidized, affordable multi-family properties near high-frequency transit service. ● The Bay Area Transit-Oriented Affordable Housing Fund (TOAH) is funded by the Great Community Collaborative. TOAH provides pre-development and acquisition financing for affordable housing projects located in transit rich “priority development areas.” ● The Enterprise Equitable Path Forward Fund is a five-year, $3.5 billion nationwide initiative to counter racial inequities rooted in housing, and focuses on supporting Black, Indigenous, and People of Color and housing providers who create and preserve affordable homes. ● The Housing for Health Fund (HFHF) is a collaboration among Enterprise Community Partners, Kaiser Permanente, and JP Morgan Chase, and provides $85 million to promote health and the preservation of affordable housing.
● The Silicon Valley Community Foundation (SVCF) Special Revenue Fund helps to encourage the development of affordable housing through a $2 million allocation to East Palo Alto to purchase certain water rights, and $500,000, for an affordable housing manager position over a minimum period of five years.
● The Partnership for the Bay’s Future Bay’s Future Fund (BFF) and Community Housing Fund (CHF) is a $500 million initiative to bridge funding gaps throughout the region’s rental housing market and address critical housing needs. The funds are managed by LISC and originated by the San Francisco Foundation, Bay Area LISC, the Corporation for Supportive Housing (CSH), Capital Impact Partners, and other public-private partners.

In addition to these resources, there are efforts to substantially increase the funds available for affordable housing programs and development in the Bay Area. In 2019, the Bay Area Housing Finance Agency (BAHFA) was created by the California legislature. BAHFA is placing a $10 or $20 billion regional housing bond on the November 2024 ballot.

Efforts Funded by the City of East Palo Alto
In both the Housing Element and in this Housing Strategy, the City has set numeric goals and has committed to a range of housing programs, including, but not limited to the development of new affordable housing units. These efforts can be organized by programmatic area and the types of families and individuals served, including:
• Developing Affordable Housing
• Addressing Homelessness
• Supporting Housing Quality and Stability
• Encouraging Homeownership
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Developing Affordable Housing
East Palo Alto has three methods of creating deed restricted, affordable housing:
• The City’s Inclusionary Housing Ordinance;
• The City’s Commercial Linkage Policy; and
• Funding of 100% affordable housing developments.

The Inclusionary Housing Ordinance requires the inclusion of Below Market Rate (“BMR”) units within new market rate developments. Under the Inclusionary Housing Ordinance, 20 percent of units must be deed restricted. The maximum income for these BMR units varies by tenure type but range from as low as 35% of Area Median Income for a portion of the rental units, up to 120% of Area Median Income for a portion of the ownership units. There are options for the creation of off-site units or the paying of a fee in lieu of providing the units. These fees can then be used for 100% affordable housing developments. There are currently 24 BMR units in entitled or approved projects.

The City of East Palo Alto has a Commercial Linkage Policy that requires that new office, medical, and research and development projects fund or create deed restricted housing. While most developers are likely to pay a fee, which is used to fund 100% affordable housing developments, a developer can chose to directly fund the creation of units, however, the Landing proposal for lab uses on Bay Road and Weeks Street has proposed the creation of 95 deed restricted units as part of the project.

The City can also directly fund the development of 100% affordable housing projects. These funding sources have different funding requirements and restrictions that the City must adhere to and enforce. Most funds must be used on capital expenses, or the administrative costs associated with delivering affordable housing. These sources include:
● Inclusionary Housing In-Lieu Fees: The City collects these funds when a developer pays a fee in lieu of providing deed restricted units on-site. In November 2019, the City Council adopted Ordinance No. 425, the Inclusionary Housing Ordinance, adding Chapter 18.37 to the City of East Palo Alto Development Code replacing the previous housing in-lieu fee ordinance. To date, developers have agreed to place their units on-site, and therefore the City has not collected any fees associated with the new ordinance. The City has $6,813,682 in funds available as of June 30, 2023. All these funds would be used for affordable housing development.11
● Low- and Moderate-Income Successor Agency Funds: These funds are related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for those with low- and moderate-incomes. As of June 30, 2023, the City has $683,775 of these funds available, of which $114,000 are proposed to be used for foreclosure prevention, 11 The current fund balance of $6,813,682 in inclusionary housing in-lieu fee fund consists primarily in-lieu fees and settlement funds from developers in exchange for releases from obligations under Owner Participation Agreements to build affordable units.
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and the remaining $569,775 for housing development.
● Measure HH Housing Funds: Measure HH was approved by East Palo Alto voters at the November 2018 election and generates ongoing resources from large commercial buildings to be spent on affordable housing and job training programs. Measure HH raises approximately $1.6 million annually of which a minimum of 35 percent of funds must be used for housing. In addition, a percentage of Measure HH funds are set aside for workforce development, funding the Measure HH Pilot Workforce Development Program. While not a housing program, improving a household's economic conditions will also improve their housing outcomes. As of June 30, 2023, there is $4,352,127 in Measure HH Housing Funds available, and over the next four years, approximately $2.3 million in additional funds is projected to become available, for a total of $6.7 million in funds, all of which would be used for affordable housing development.
● Transient Occupancy Tax (TOT) Housing Funds: Each transient (hotel, motel, or short-term occupant) is subject to and must pay a tax in the amount of twelve percent (12%) of the rent charged by the operator. Ten percent of TOT revenues collected is dedicated and used exclusively for affordable housing development, acquisition and/or rehabilitation. An attempt to increase the fee from 12 percent to 14 percent failed at the 2020 ballot. As of June 30, 2023, the City holds $2.369,951 in TOT Housing funds. Over the next four years, approximately $1.1 million in additional funds is projected to be available, for a total of $3.5 million in potential funds. Of these, up to $3 million will be used for the purchase and/or rehab of housing affordable to low- and moderate-income households, and the remaining $500,000 would be available for affordable housing development. ● Commercial Linkage Fees: The City Council initiated a commercial linkage fee in 2016, and formally and permanently adopted the program in 2020. Currently, the fee is set at $13.19 per square foot for office, research & development, and medical office uses. There is no fee for retail, restaurants, services, or hotels. Fees are periodically updated based on changes in program and associated costs. As of June 30, 2023, the City has not collected any fees associated with Commercial Linkage. While the City may not have any commercial linkage fees to fund affordable housing developments at present, it may be a viable funding source in the future.

Altogether, East Palo Alto will have approximately $14.6 million available for developing 100% affordable housing projects. To understand this proposed cost, it is important to understand the overall costs of affordable housing development and how these developments are financed. It now costs upwards of $1 million per unit to build a new, 100% affordable housing development in San Mateo County. The unit cost includes pro-rated land cost at average fair market value, along with development and construction costs. These developments all rely on a range of federal, state, regional, and local funding sources, as well as debt financing. As such, a local city’s contribution towards these developments represents only a percentage of the overall cost. 247
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In October 2023, the City of East Palo Alto funded the Colibri Commons (965 Weeks Street) project, which has a financing structure that is typical of such projects. In addition to the land, East Palo Alto provided $12,500,000 in affordable housing funds, and fee waivers worth another $3,330,452, for a total of over $15.8 million in local funding. Given that the development had 135 deed restricted units, the City’s contribution was $116,400 per unit, or 11% of the total costs. Therefore, it is expected that East Palo Alto’s contribution to building affordable housing would range from $120,000 per unit on public land, and $180,000 on private land.12 Given this per unit cost, the City’s $14.6 million in funding can support the creation of anywhere from 81 units on privately owned land to 122 units on publicly owned parcels.

Possible Funds Available for Affordable Housing Development Source of Funds
Current
Funds
Available
Probable
Additional
Funding*
Other
Housing
Programs
Total Funding
Available for
Development Programs Funded
Inclusionary Housing
In-Lieu Fees $6,813,682
None
Anticipated $0 $6,813,682 Housing Development
Low Mod Successor
Agency $683,775 $0 -$114,000 $569,775
Housing Development;
Foreclosure Prevention
Measure HH* $4,352,127 $2,348,17113 $0 $6,700,298 Housing Development Transient Occupancy
Tax $2,369,951 $1,100,000 -$2,957,000 $512,951
Housing Development,
Purchase and Rehab of
Existing Housing
Total $14,219,535 $3,448,171 -$3,071,000 $14,596,706
*Additional funding is based on four additional years of minimum income.

Addressing Homelessness
To support the unhoused, East Palo Alto has committed to the following efforts that require the use of City resources:
• The City is waiving permit fees for non-profits applying for Master Temporary Use Permits. The Master TUP for Temporary Housing is a streamlined process that consists of a single application containing all applicable site standards and conditions for different types of temporary housing, including safe overnight parking, on a variety of properties. Applicants can apply for a single property or for a multi-site program, such as a rotating shelter, for up to 12 months at a time. 12 At the time of writing, 760 Weeks Street was on the market for $2,500,000, which could accommodate approximately 42 units, for a cost per unit of $60,000.
13 Given that expected revenue for 2023/2024 for Measure HH funds was $1,677,265, and that at least 35% would be for housing, approximately $587,043 per year would be available. Over four years, it would total over 2.3 million in additional resources.
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The goal is to assist five RV owners between 2024 and 2028. While waiving fees is not a financial outlay for the City, it does represent a $30,000 reduction in fee income to the City. • The City has a goal of assisting 38 unhoused individuals. There are a range of programs that can help the City meet this goal. from the creation of permanent supportive housing to workforce development programs. The City expects to access external funds, such as the State’s Homekey program, to support this goal.
• WeHOPE’s emergency shelter is an important resource for East Palo Alto’s unhoused residents.

East Palo Alto will work with WeHOPE to secure external funding, such as San Mateo County Measure K funds, to assure that this shelter continues to be available.

Supporting Housing Quality and Stability
The City of East Palo Alto is committed to helping families, both renters and owners, stay in their homes, and that the quality of those homes are maintained and improved.

For renters, East Palo Alto’s rent stabilization ordinance is an important tool in stabilizing tenants, but additional programs are needed to stabilize East Palo Alto Renters that require City financial support. • The City has a goal of supporting 30 households a year (for a total of 150 households between 2024 and 2028) with rental assistance. For year one, the City has committed $100,000 in operating funds for the program, which will be operated by the Samaritan House. Each household would receive one-time assistance of approximately $1,900 to $3,000. • The City is providing $280,000 a year for two years (a total of $560,000) for tenant stability programs including tenants’ rights and fair housing outreach and education, case management services, and legal aid. Rent Stabilization program fees pay for $116,000 of the annual costs, with the remaining $164,000 coming from the City’s General Fund Reserves. Services are provided by Community Legal Services in East Palo Alto (CLSEPA), Nuestra Casa, and Youth United for Community Action (YUCA).

Home repair programs will assist both homeowners and renters to stay in their homes, while also increasing the quality of housing. The City has set a goal of providing major repairs for three singlefamily homes and 13 units in multi-family homes (for a total of 16 units) between 2024 and 2028. The City is allocating up to $50,000 per unit in TOT Housing Funds, for a total program cost of $800,000. The City will also seek San Mateo County managed federal CDBG funds to offset or match the City’s investment. If awarded, the City will help low-income homeowners, through referrals to existing home repair programs funded with San Mateo County CDBG funds. This program will enhance the ability to identify opportunities for physical rehabilitation and thus preserve affordable housing units.

The City also has set a goal of assisting three homeowners facing potential displacement due to foreclosure. The cost of such an effort could cost approximately $114,000 in Low Mod Successor Agency funds, to include counseling services and mortgage assistance. Some homeowners may be able to access the Federal Homeowner Assistance Fund, allowing East Palo Alto to assist additional 249
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homeowners.

Workforce development programs also address household stability by improving individuals’ and families’ financial stability. The City of East Palo Alto has committed $775,215 in Measure HH funds for an 18 month pilot program. If successful, Measure HH funds are a recurring source of income that could continue to fund the program though the remainder of this strategy.

Encouraging Homeownership
Homeownership is the primary way that moderate- and middle-income families build wealth, 14 and the
long-term gap in homeownership rates between White, non-Hispanic/Latino households and Black/African American and Hispanic/Latino households has contributed to racial wealth gaps. 15 Given
the high sales prices in East Palo Alto and San Mateo County, it has gotten very difficult to for East Palo Alto residents to buy their first home, and the City is hoping to encourage homeownership through homebuyer financial assistance and support for tenant purchases of their homes. • Homebuyer Financial Assistance: The Housing Assistance Fund was created specifically to provide financial assistance for first-time homebuyers. Currently there are $474,742 in these funds available, and the City has committed to helping eight (8) households purchase a home between 2024 and 2028. While City staff are still developing this program, the funds available could support downpayment assistance of up to $50,000 per household. • Tenant and Non-Profit Purchase of Rental Properties: The City is committed to assisting tenants and/or non-profits purchase their home to secure long-term stability. The City’s goal is to assist with the purchase of two single-family homes and one four-to-six-unit multi-family home. Total program costs are expected to be approximately $2,157,000, funded by City TOT fund Housing funds.
14 Schuetz, Jenny (December 9, 2020). "Rethinking Homeownership Incentives to Improve Household Financial Security and Shrink the Racial Wealth Gap.” The Brookings Institution. Accessed 12/15/2023 at https://www.brookings.edu/articles/rethinking-homeownership-incentives-to-improve-household-financial-security-and-shrinkthe-racial-wealth-gap/ 15 According to 2018-2022 American Community Survey Estimates for San Mateo County, 66% of White, non-Hispanic/Latino households were homeowners, compared to 63% for Asian households 58% for Black/African American households, and 42% for Hispanic/Latino households.
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Summary: Housing Program Costs and Sources
Program Amount Source of Funds Proposed Outcomes
Master
Temporary Use
Permits
$30,000 Fee waivers Assist 5 RVs with waivers
Rental Assistance $500,000 Operating Funds Assist 150 households Tenant Stability
Programs
$1,400,000 Measure O/L Funds Annual grants to nonprofits for legal services, tenant outreach, and case
management.

Major Home
Repairs
$800,000 Measure HH Housing Funds,
County CDBG Funds
Repair 3 single family and
13 multi-family units
Minor Home
Repairs
$25,000 County CDBG Funds Assist 5 homeowners
Foreclosure
Prevention
$114,000 Low Mod Successor Agency
Funds
Assist 3 homeowners
Workforce
Development
$775,215 Measure HH Workforce
Development Funds
Assist 80 individuals
Homebuyer
Financial
Assistance
$474,742 Housing Assistance Fund Assist 8 homebuyers
Tenant & NonProfit Property
Purchases
$2,157,000 Transient Occupancy Taxes Assist purchase of 2 single family homes and 1 multifamily home
Affordable
Housing
Development
$14,596,706 Inclusionary Housing In-Lieu
Fees, Low Mod Successor
Agency Funds, Measure HH
Housing Funds. Transient
Occupancy Taxes
Build 80 to 120 affordable
housing units, depending
on land costs
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WORKPLAN
The City of East Palo Alto is committed to fulfilling the goals of this affordable housing strategy between 2024 to 2028. Some will be addressed in the next two years, and some will take longer to implement, or are ongoing efforts.

Policy/
Program
Number
Affordable Housing Strategy Action Timelines
2024 2025 2026 or
later
ongoing
Goal 1: Create More Housing that is Affordable to East Palo Alto Residents.

Incentivize affordable housing development.

1.0 Policy 1.0: Track and review planning approval and building permit processes for residential projects. Establish actions for streamlining, clarifying, and simplifying the approval and permit processes, including the design review process. Seek input from developers and other stakeholders to identify ways to improve and streamline development review.
x x

1.1 Develop objective development and design standards that will be consistent with adopted findings of approval for all single-family and multi-family developments that simplify, clarify, and improve approval certainty and reduce the time for permit processing.

Establish a time schedule for expedited ministerial or administerial approval of projects that comply with objective design standards, zoning standards, and development regulations. Ensure
compliance with SB35, SB330, Housing Accountability Act, and other applicable state laws for qualifying projects.
x x

1.2 Implement existing processing guidelines and checklists for projects that qualify for by-right, ministerial, or administrative approval and CEQA exemption under SB 35, SB330, Housing Accountability Act, and other applicable state laws.
x

1.3 Review and adjust building permit review and approval procedures as needed to comply with the streamlining
requirements of State law AB 2234.
2027

1.4 Develop standards to prioritize, incentivize, and expedite processing of residential projects that commit housing units for special needs populations such as the developmentally disabled, single-female head of households, at-risk youths, large family households, extremely low-income households, and unhoused individuals.
x x x

1.5 Pursuant to Government Code 65583.2 (h) and (i), sites that require rezoning to meet the RHNA for lower-income households x
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and sites carried over from the 2015-2023 Housing Element to accommodate the needs of lower-income households shall be rezoned within the statutory deadline prescribed in Government Code 65583.2 (c). The rezoning shall commit to 20% lower-income units, minimum densities, and objective development standards, and complying projects shall not require discretionary approval.

One site is carried over from the 2014-2022 Housing Element – a

0.65-acre parcel at 851 Weeks with an existing zoning of 22-40 units/acres and a pending application for a 79-unit SB 35 project.

If a project contains at least 20% lower-income units and complies with objective development standards, discretionary approval shall not be required.

1.6 Seek and support financial resources from state, regional, and county housing programs, tax credits, and other sources that provide funding assistance for affordable housing projects to cover design and development costs and off-site public facility and infrastructure improvements.
x
Encourage smaller smaller-scale housing that is relatively more affordable, including duplexes/triplexes and accessory dwelling units (ADUs).

1.7 Develop a “next-phase” streamlining effort for ADUs and JADUs, SB 9 projects, and any future small development, ministerial approval process that builds on lessons learned from the ADU Streamlining collaboration with EPACANDO and City Systems. (See Program 10.5 pertaining to ADU zoning amendments that are necessary to comply with current state laws and for numerical geographical targets.)
x

1.8 Study feasibility and desirability of waiving or reducing fees or delaying payment of permit fees and development impact fees for ADUs and small projects, e.g., two or fewer units.
x

1.9 Develop outreach materials targeting smaller developers aimed at informing future applicants and improving the quality of Planning and Building applications received.
x

1.10 Implement a preapproved and modular ADU designs program or participate in proposed 21 Elements clearinghouse to facilitate streamlined review and reduce design costs of ADUs.
x

1.11 Develop proposals for relaxing or allowing flexible zoning standards (e.g., building setbacks and height, open space, parking, and density) to facilitate the development of 5 SB 9 and small infill housing projects to increase housing opportunities and housing types throughout the community.
x

1.12 Develop an expedited legalization process for unpermitted second units. Identify zoning amendments to reduce the impediment to building ADUs, such as setback and open space standards. x

1.13 Support and participate in a potential county-wide initiative to create a resource center to effectively educate homeowners, x
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provide resources, and promote the construction of ADUs.

1.14 Research all available public and private sources of rehabilitation/repair funding and strengthen partnership with organizations in this area, such as Habitat for Humanity. x
Develop long-term, sustainable funding sources that are flexible and may be used for affordable housing production and
preservation and to prevent displacement and homelessness.

1.15 Implement the 2022 approval of Measure L which increased and expanded the City’s existing Gross Receipts Tax on rental residential properties for affordable housing and support programs.
x

1.16 Update the City’s five-year Affordable Housing Strategy (AHS) to implement the 6th cycle Housing Element goals, policies, and programs and to sets priorities for allocation of the City’s affordable housing revenue sources for a finite period (1 year to 5 years). Establish priorities to implement fair housing policies and programs in low resource neighborhoods per the AFFH analysis. x

1.17 The Planning and Housing Departments will collaboratively pursue state grant funds wherever possible to support affordable housing projects and programs and to address homelessness in the City.

Target: Annually research available funds for affordable housing projects and homelessness programs. Prioritize funds to assist lower-resource areas and the unhoused population.
x x
Take reasonable measures to reduce the cost of development for fully affordable housing developments.

1.18 Use the opportunity of the Ravenswood Business District (RBD) Specific Plan Update or initiate a city-wide study on the feasibility and desirability of fee waivers or reductions or deferred fee payments for fully affordable housing projects; additionally, consider providing City financial assistance to cover these fees. x

1.20 Incorporate parking reductions into the City’s Transportation Demand Management Program including compliance with AB2097 and related state laws that eliminates parking minimums within one=half mile major transit stops and radius and parking maximums for affordable housing projects.
x
Encourage housing on sites zoned for mixed use in the
Ravenswood/4 Corners Specific Plan Area.

1.21 For sites within the RBD Specific Plan Area, study feasibility and effectiveness of an RBD-specific density bonus, relaxed zoning controls, minimum densities (particularly for mixed-use sites), streamlined subdivision approvals, and by-right or ministerial approvals. Incorporate provisions into the Specific Plan Update and Development Code in summer 2024. (See also related
Program 10.8)
x
Develop affordable housing on public property
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1.23 Work with County of San Mateo to complete land swap and determine feasibility of the County developing affordable housing, encouraging permanent supportive housing development, at 2277 University. Comply with Surplus Lands Act. (This project is not included in Sites Inventory but could potentially be constructed during Housing Element 6th Cycle.)
x x x

1.24 Work with Ravenswood City School District to facilitate the development of the district-owned parcel at 2120-2160 Euclid Avenue as affordable public school employee housing. Comply with Surplus Lands Act.
x x x
Objective: Incentivize “missing middle” housing, or smaller-scale housing that is affordable to households at 80-120% of Area Median Income.

1.25 Revise City zoning and subdivision standards to increase compatibility with SB 9 (e.g., flexible zoning standards for setbacks, open space, heights, and density) and make process improvements to encourage application of SB 9 on appropriately zoned parcels. Conduct informational outreach to property owners whose properties are prime candidates for SB 9 projects, including informing them of the by-right or ministerial approval process.
x
Monitor progress on housing element policies, programs, and sites inventory.

1.26 Annually review overall progress and effectiveness in meeting RHNA and evaluate progress in meeting Housing Element policies and programs; include information in Annual Progress Report to HCD. Track the production of inclusionary housing units, ADUs, SB 9 units, and housing for special needs populations. If the City is not making sufficient progress in meeting its Housing Element goals and its RHNA for affordable units by 2027 (i.e., at least 130 lower-income units under construction or completed by 2027), consider alternative land use strategies within six months. Possible actions include amending policies and programs, defining new actions, or identifying alternative housing sites, including rezoning if necessary, and strategies to facilitate a variety of housing choices, such as encouraging missing middle zoning (small-scale multi-unit projects), adaptive reuse, and additional ADUs and/or JADUs.
x x x x
Goal 2: Create Homeownership Opportunities for East Palo Alto Residents and Stability for Existing Homeowners.

Promote financial literacy as a means of encouraging
homeownership and support first-time homebuyers.

2.1 Develop a City led homebuyer support program or programs tailored to the needs of lower and moderate-income households in East Palo Alto. Prioritize outreach to neighborhoods with a proportionally higher percentage of rental households such as the westside of State Highway 101.
x x
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2.2 With the assistance of the City’s grant coordinator, seek and apply for funds from state and other sources to create and finance this program.
x
Create pathways to affordable homeownership opportunities.

2.3 One pathway to homeownership is through tenant purchase of their buildings. The City hopes to create a program that will facilitate a minimum of two single family and one multifamily tenant purchases between 2024 and 2028. x
Advocate for homebuyer and homeownership programs at the county, regional, and state levels.

2.4 Advocate for the homebuyer and homeownership programs at the county, regional, and state levels.
x
Goal 3: Preserve Existing Affordable and Rent Stabilized Housing Ensure that the City’s deed-restricted affordable housing and Below Market-Rate (BMR) portfolio remain well-maintained and monitored.

3.1 Continue working with EPACANDO and Bay Area Affordable Homeownership Alliance (BAAHA) on the existing BMR Program contract and draft a Request for Proposals (RFP) for the next phase of BMR Program management, to maintain the 53 existing BMR units and add 8 rental or for-sale inclusionary housing units. x x
Improve data on affordability of the City’s rental housing stock outside of the rent stabilized portfolio.

3.2 With the allocated City Council funding, research potential rent registry program and administer Request for Proposals (RFP) for potential rent registry program administrator.
x
Leverage County initiatives and affordable housing resources to increase public awareness of affordable housing opportunities in East Palo Alto.

3.3 Work with the County of San Mateo and landlords to list all affordable housing projects and inclusionary units on Doorway, a new regional platform for searching and applying for affordable housing and finding affordable housing resources and conduct proactive outreach to East Palo Alto residents.
x
Protect and preserve the City’s supply of rent-stabilized affordable housing units.

3.4 Continue to support the function of the Rent Stabilization Board (RSB) to enforce the City’s Rent Stabilization Ordinance to protect tenants from unreasonable rent increase, to protect tenants from unlawful evictions, and to allow landlords sufficient rental income for maintenance and operating expenses and capital
improvements.
x
Goal 4: Prevent Displacement of East Palo Alto Residents.

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development to the creation of new housing at the appropriate affordability levels.

4.1 As part of the Ravenswood Business District/4 Corners (RBD) Specific Plan update, develop a requirement to build new housing at specified levels of affordability based on a numerical linkage to office/R&D square footage in Ravenswood Business District (RBD). x

4.2 Participate in countywide nexus study led by 21 Elements to update the existing Commercial Linkage Fee.
x
Promote the preservation of existing housing stock and
rehabilitation of housing that is at-risk due to age, structural deficiencies, etc.

4.3 Develop a preservation strategy that addresses funding sources, identification of properties, and partnerships that can lead to preservation of affordable housing in East Palo Alto. Prioritize assistance to lower resource neighborhoods identified in the AFFH analysis (including, but not limited to, westside of State Highway 101, south of Bay Road west of University Avenue, and multifamily housing on southside of Bay Road east of University Avenue.)
x

4.4 Identify and maintain a list of at-risk units and substandard buildings throughout the City. Ensure property owners comply with the State Preservation Notice Law. Actively engage with property owners to reach agreements to preserve at-risk units and properly maintain their properties. Through these efforts, the City hopes to improve 13 substandard or at-risk units between 2024 and 2028.
x x

4.5 Study improvements to the City’s process for addressing code violations on residential properties, including, but not limited to, unpermitted second units.
x

4.6 Create and fund a City housing rehabilitation program for City Council consideration that covers both single-family homes and multi-family apartments to preserve affordable housing
opportunities, encourage proper maintenance and repairs, promote renovation, and increase energy conservation. Prioritize neighborhoods with a concentration of units in need of
rehabilitation per Housing Element, Section 2.12.2.D (including, but not limited to, westside of State Highway 101, south of Bay Road west of University Avenue, and multi-family housing on southside of Bay Road east of University Avenue).
x x
Support housing stability of existing lower-income homeowners and enable the community’s seniors to age in place.

4.7 R Research establishing and funding a City home repairs program to assist low-income homeowners with major repairs and
rehabilitation to address acute safety and livability issues. Develop a public outreach plan and also inform homeowners of financial assistance available from other agencies such as energy x x
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conservation and electrification incentives. Prioritize assistance to lower-resource neighborhoods identified in AFFH analysis (including, but not limited to, westside of State Highway 101 and south of Bay Road west of University Avenue.)

4.8 Continue to implement public accessibility improvements in accordance with the City’s ADA Compliance Plan and amend Municipal Code Chapter 14.10 – Reasonable Accommodations and Development Code Chapter 18.98 – Reasonable Accommodations as needed to comply with applicable state laws.
x

4.9 Study models of foreclosure prevention at the local level in similarly sized cities, whether through local investment or leveraging outside funding; evaluate establishing a mortgage assistance program for low-income households.
x x
Promote community/cooperative ownership of land and housing in East Palo Alto.

4.10 Evaluate opportunities to support and/or leverage local community land trusts (CLTs) to create community ownership of new or preserved affordable housing, e.g., through scattered-site ADUs, small inclusionary projects, or preservation projects. x x
Prevent displacement due to high housing cost burden and barriers to housing, such as rental deposits.

4.11 Continue to appropriate funds and consider increasing funds for direct emergency financial assistance or rent relief to be administered by a qualified organization identified through a Request for Proposals (RFP) process. Conduct proactive public outreach, particularly to lower-income households and
neighborhoods where a high housing cost burden has been documented in the fair housing assessment.
x

4.12 Develop a proposal for City Council consideration for a direct financial assistance program for first and last month’s rent/security deposit assistance.
x
Implement an effective and fair housing compliant Local Preference Policy.

4.13 Complete and enforce guidelines on City’s existing Local Preference Policy.
x
Provide access to living wage jobs to allow residents to afford to remain to live in East Palo Alto.

4.14 Through Measure HH, a parcel tax on large office developments approved by East Palo Alto residents in 2018, implement a Pilot Workforce Development Program to provide job training,
apprenticeships, and job placement services to residents through partnerships with community-based non-profit organizations and private companies. Programs shall include proactive outreach to East Palo Alto residents, and service agreements shall define performance goals and metrics and required deliverables. x
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Goal 5.1: Apply Environmental Justice Principles in Planning for New Housing Development.

Adopt policies and programs to address environmental justice issues in the community.

5.1 Update the Environmental Justice Element (Health and Equity) in the City’s General Plan to include a comprehensive set of policies and programs and an implementation plan to address
environmental justice issues and public outreach, engagement, and transparency; scope of work to include a robust community engagement process is integrated into the preparation of this Element.
x
Address water and sewer system constraints to housing
production, to the extent they are within the City’s control, through targeted capital and governance improvements.

5.2 Establish and implement a plan to address the San Mateo County Local Agency Formation Commission (SMCLAFCo) Municipal
Service Review and to resolve the delays to housing development caused by issues with the East Palo Alto Sanitary District. x

5.3 Implement the Water System Master Plan adopted in 2022 and complete the first-phase capital improvements in the plan. Update the Urban Water Management Plan to conform with the Master Plan and ensure adequate water service to parcels identified as developable in the Housing Element Sites Inventory (adequate water supply but water infrastructure upgrades may be needed for certain locations.)
x x

5.4 Work with water and sewer service providers to adopt a policy that prioritizes water and sewer capacity allocations to affordable housing projects and low-income households in accordance with state law (SB1097).
x
Minimize new housing in highest-risk areas prone to
flooding/sea level rise or due to environmental contamination.

5.5 Leverage community partnerships to utilize and maintain data and maps wherever possible to monitor areas subject to flooding and identify sites for future development and to comply with Government Code 65302.
x

5.6 Develop environmental “overlay” map with most up-to-date data to avoid housing in at-risk areas or with prescribed mitigation measures.
x
Prioritize flood control, infrastructure, and transportation improvements in lower-resource areas.

5.10 Pursue funding and prioritize neighborhoods of concentrated need for future investment, which may include but is not limited to rehabilitation, safe routes to schools, parks, transit, and active transportation. Evaluate the distribution of infrastructure and transportation investment by higher versus lower need areas when updating the Capital Improvement Program (CIP). Assess the needs in lower-resource areas and implement actions to ensure an x x
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equitable distribution of investment.

5.11 Support local and regional flood control and infrastructure projects that benefit existing and future residents. Prioritize improvement projects that benefit high need and lowerresource areas as identified in AFFH analysis. x x x
Goal 5.2: Expand and establish programs to promote fair housing practices for East Palo Alto residents.

5.7 Implement fair housing and anti-eviction programs using Measure O and other qualifying local revenue sources to fund communitybased organizations to provide legal services, financial assistance, case management, referrals, proactive community outreach (social media, workshops, flyers), resource information, and a staff a citizen advocacy committee. The City Council has allocated over $200,000 toward anti-displacement and fair housing programs. x

5.8 Continue to support agencies such as Project Sentinel, Community Legal Services in East Palo Alto, and Legal Aid at Work that provide consultation and landlord/tenant mediation services for residents. x

5.9 Prioritize providing fair housing and support services to special needs populations such as extremely low-income households, persons with disabilities, female heads of households, large family households, seniors, at-risk youths, and households at-risk of homelessness. Target proactive public outreach to lower resource neighborhoods such as western and northern areas in East Palo Alto or projects where there is a higher presence of special needs populations based on the fair housing analysis. The City has a goal of providing fair housing and support services for minimum of 20 special needs individuals or households between 2024 and 2028. x
Goal 6: Promote Safe and Healthy Housing in East Palo Alto.

Strengthen monitoring and enforcement of habitability issues.

6.1A Annually review the City’s habitability complaints and the Rent Stabilization Ordinance’s rules and regulations and forward any recommended changes or updates for enforcing habitability issues to the City’s Rent Stabilization Board.
x

6.1B Continue to use code enforcement to support housing preservation and neighborhood quality and identify housing maintenance issues. Refer property owners with compliance needs to the City’s programs for rehabilitation assistance. x
Incorporate amenities into multifamily housing that support households with children.

6.2 Determine the most effective means of incentivizing or requiring childcare facilities in new affordable housing developments and commercial developments.
x
Improve energy conservation and reduce the carbon footprint of residential buildings.

6.3 Implement the East Palo Alto Reach Codes, which became x 260
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effective in January 2021 and apply to all new construction and substantial rehabilitations and additions; continue to explore expanding building electrification requirements and support incentive programs for retrofitting existing buildings
Improve earthquake readiness and resilience.

6.4 Complete and implement the recently updated Multi-Generational Local Hazard Mitigation Plan.
x

6.5 Update the City’s Safety Element to address earthquakes, flooding, and other natural and manmade hazards; consider policies such as establishing a seismic retrofit program to address vulnerable populations living in soft-story buildings and establishing a program for remediation of lead-based paint in older residential buildings; incorporate targeted outreach to vulnerable and special needs populations to ensure their needs are well-addressed.
x
Ensure implementation and enforcement of flood protection and prevention measures.

6.6 Continue to disseminate information through onsite resources and workshops to homeowners, property owners, and developers on FEMA, state, and local regulations on floodplain construction and management practices.
x

6.7 Continue to participate in FEMA’s Community Rating System Program to ensure that new housing development complies with floodplain construction standards with submission of required certifications.
x
Goal 7: Create More Housing Opportunities for Special Needs Households, Including Large Households, People at Risk of or Experiencing Homelessness, and Individuals with Disabilities.

Incorporate special housing needs into City-supported future affordable housing developments.

7.1 For affordable housing projects located near high-quality transit, on City-owned land, with City subsidy, or where otherwise legally defensible, require developers of affordable housing to demonstrate how they will serve people with disabilities in the development.
x x
Provide housing solutions and support services for unhoused residents in East Palo Alto.

7.2 Finalize the Master Temporary Use Permit (MTUP) process for the temporary housing program rollout that includes City coverage of permit fees to provide housing for individuals experiencing homelessness in the community.
x

7.3 Evaluate lessons learned and options for longer-term, holistic solutions to RVs parked in public right of way with the conclusion of the RV Safe Parking Program.
x x

7.4 Research all available public funding sources to address homelessness and consider City investment of funds for homeless x
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outreach, case management and supportive housing to
supplement the countywide system.

7.5 Pursue expansion of support programs for unhoused residents by establishing partnerships with other public agencies, private corporations and foundations, and non-profit service providers. x x

7.6 Continue to support the low barrier navigation center and emergency shelter operated by WeHope, a community-based non-profit organization, which provides an interim shelter and supportive services for unhoused individuals. Accommodate the special needs of at-risk youths, households with children, and persons with disabilities.
x
Reduce overcrowding and unsafe housing conditions related to housing affordability in East Palo Alto.

7.7 Develop options for incentivizing deeply affordable housing units that serve larger household sizes, such as allowing additional density or other relaxed or flexible zoning regulations. x

7.8 Continue to require residential projects to include Extremely LowIncome housing units through the City’s Inclusionary Housing Program and encourage production of deed-restricted ADUs serving Extremely Low and Very Low-Income households as an Inclusionary Housing Alternative Compliance option instead of paying in-lieu fees for fractional units.
x
Goal 8: Improve Transparency and Communication between the City and the Public on Housing Issues.

Make the City website, social media, and newsletter a reliable source of housing information and make parallel efforts to reach residents through mailers and in-person meetings.

8.1 Improve and maintain the Housing website as a primary means of communicating the City’s efforts around housing. Expand proactive measures to inform homeowners, landlords, and tenants about available local and County housing resources and supportive services.
x

8.2 Create a budget for mailers and non-digital outreach on Housing workplan items at the start of each fiscal year.
x
Incorporate language accessibility/language justice into City materials and meetings.

8.3 Provide translation of materials and interpretation of City Council, Planning Commission, Rent Stabilization, and other City meetings in alignment with City’s Language Policy.
x
Goal 9: Build City Capacity for Long-term Housing Planning and Implementation of a Range of Housing Programs and Initiatives.

Maintain sufficient Housing Division staff to implement this Affordable Housing Strategy.

9.1 Regularly assess the level of staffing or contract assistance to ensure that sufficient staffing is committed to implementing the policies and programs in this Affordable Housing Strategy in a x
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timely manner.

Seek efficiencies and collaborative staffing and resource opportunities to simultaneously implement this Affordable Housing Strategy programs and other Housing Division
responsibilities.

9.2 Along with other San Mateo County communities, access the services of the HEART of San Mateo County’s new Housing Consulting Services program, so as to access additional housing expertise and staffing.
x
Work in close collaboration with the Planning Division to more efficiently achieve both divisions’ goals and workplan items.

9.3 Collaboratively update the City’s Development Code to align Planning and Housing objectives, with an emphasis of resolving inconsistencies and ensuring consistency with the City’s General Plan.
x x
Seek financing sources for affordable housing construction and preservation.

9.4 As Notices of Funding Availability (NOFA) are issued (typically annually), proactively work with the City’s grant coordinator to selectively apply for regional, state, and federal grants to finance qualifying affordable housing projects and to fund East Palo Alto housing programs, such as housing rehabilitation program and first-time homebuyers’ program
x
Monitor the Housing Element Implementation Plan

9.5 Review the Housing Element’s Sites Inventory annually to assess progress in achieving the City’s RHNA affordable housing allocation and as needed, identify additional sites or adjusting development policies, programs, and priorities.
x
Monitor the Inclusionary Housing Ordinance

9.6 Evaluate the effectiveness of the Inclusionary Housing Ordinance (IHO) in producing affordable units and the financial impact of the inclusionary requirements and Alternative Compliance Options on residential development. Evaluate the effect of changing economic, development, and financing conditions and the cumulative financial impact of development impact fees and exactions. Following completion of the evaluation, amend the IHO to reduce constraints within six months if necessary. Continue to assess the financial impact of the IHO on individual projects and implement further measures to reduce the barriers to housing production and achieve the City’s RHNA if needed.
x x x
Goal 10: Amend Zoning and Other Development Regulations to Facilitate the Construction of Affordable and Special Needs Housing
Require replacement housing to be provided for applicable housing developments.
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10.1 For applicable development projects that will be removing residential units, a replacement housing program for lowerincome households in accordance with State requirements (Government Code 65583.2(g)).
x
Update zoning and development standards as needed for
Emergency Shelters.

10.2 Emergency Shelters - Evaluate current sites, development standards, and approval process and amend the Development Code to comply with Assembly Bill 2339 and other applicable state laws. Amend the Development Code to address zoning
requirements, update the definition of emergency shelters, ensure sufficient capacity for emergency shelters in zones with proximity to transportation and homelessness services, establish objective development standards, and comply with all other requirements of AB 2339.
x
Update zoning as needed for by-right Permanent Supportive Housing.

10.3 Update zoning to so that Permanent Supportive Housing would be allowed by-right in residential and mixed-use zoning districts, as required by the State (Government Code 65651).
x
Update zoning as needed for Housing for Farmworkers.

10.4 Update zoning and the definition of a “housekeeping unit” to comply with the state Employee Housing Act and adopt a “barrierfree” definition that does not subject persons with disabilities to special regulations.
x
Update zoning as needed for Accessory Dwelling Units (ADU)

10.5 Amend the ADU ordinance to comply with State law, pending formal comment from HCD by December 2023. Further actions include programs and policies to facilitate construction of ADUs (refer to Policies/Programs 1.7 to 1.14 for specifics). Consider additional measures to remove zoning impediments such as relaxing side and rear yard setback and open space standards and facilitating conversion of unpermitted accessory structures to ADUs. The City has a goal of approving at least 72 ADUs between 2024 and 2028.
x
Update zoning as needed for residential care facilities and group homes (7+).

10.6 Update zoning regulations for residential care facilities and group homes (7+) to comply with state law and to reduce barriers for establishing facilities for special needs populations such as persons with disabilities, including revising existing spacing constraints
x
Update other zoning ordinance regulations to comply with latest state law and reduce impediments for residential development.

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current state laws and reduce development impediments or provide incentives such as standards pertaining to parking, open space, density bonuses, and objective design standards.

Implement Policies/Programs 1.1 to 1.6, 1.18. 1.20, 1.21 and 1.25 for a comprehensive multi-prone approach to reduce regulatory constraints, improve development processing, create incentives for housing development, and reduce, mitigate, and not constrain housing supply, cost, and ability to achieve maximum densities.

Adopt updates to the Ravenswood Business District/4 Corners Specific Plan to include residential uses at designated locations.

10.8 Adopt an update to RBD Specific Plan to allow residential and mixed-use development at designated locations in the plan area and address provisions as noted in other Housing Element and Affordable Housing Strategy policies/programs. Concurrently, rezone parcels for residential and mixed-use development.

Additionally, establish by-right approval, minimum residential densities, objective design standards, minimum residential requirements for mixed use zoning, reduce parking set flexible open space standards for affordable housing, create a
transportation demand management (TDM) program, streamline subdivision approvals, and undertake other re-zoning efforts to reduce development constraints and create incentives for developments catering to special needs populations. Further, the City will resolve inconsistencies between the General Plan and current Specific Plan, (See related Policy 1.21). The City’s goal is to zone sites and define minimum densities and objective design standards to accommodate 1,350 to 1,600 housing units within the Specific Plan area.
x
Facilitate single-room occupancy (SRO) and transitional supportive housing.

10.9 Develop procedures and review zoning regulations with the objective of encouraging and facilitating the development of SRO projects and transitional supportive housing at suitable locations.

The City's goal is to streamline zoning regulations as needed, identify potential funding, and reach out to developers (e.g., through a request for proposals or qualifications) to construct an SRO or supportive housing project on a suitable site in the City with convenient transit service.
x
Maintain General Plan and zoning consistency.

10.10 During the 6th cycle Housing Element, ensure that the General Plan land use designation and zoning are consistent for all properties included in the City’s RHNA Sites Inventory. x
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SUMMARY SURVEY RESULTS

AFFORDABLE HOUSING STRATEGY
The following are summary survey results of the Affordable Housing Strategy open between November 27, 2023 and January 5, 2024. There were a total of 48 respondents, 52% of which were tenants, 40% of which were homeowners, and 8% of which were other.

Disclaimer: The following are direct quotes from the survey responses, and may contain misspellings. Please omit any misrepresentations in survey responses.

Question 1: What housing problems have you experienced? | ¿Qué problemas de vivienda ha experimentado?
 Rent to expensive
 Seeing friends struggle. We've had to help out a few folks in need of short term housing.
 Poor management of affordable housing, overcrowded streets with no parking, dirtyness, crime.
 Landlords that don't maintain properly the property, or don't want to fix issues in the property (due to property old age), or if they fix them, thry want to pass the cost directly to the tenant
 Lack of affordable housing options. When homes are listed for sale they're immediately purchased and flipped and turned into airbnb units or sold for millions of dollars.
 illegal foreclosure when bank created fake documents and sold my house  No parking, crowded streets, cars parked on sidewalks which makes the neighborhood unwalkable and dangerous for drivers and pedestrians.  Housing repair cost issues
 Woodland being terrible corporate landlords.
 Por el momento no he tenido ningun problema pero si es muy dificil pagar una renta alta por que la rwnta wsta mas alta cada dia
 Denied affordable housing for being middle income but not able to afford housing in the city because its still to expensive
 Landlords that are renting their homes have no regulations and there are like 20+ people living in the same home causing the streets overcrowded and sometimes people double park or block part of driveways.
 none personally but have seen friends struggle
 Ha sido dificil encontrar vivienda a buen costo y cuando encuentro casa, me suben la renta cada año
 Mold, water problem, cockroaches, no maintence and not getting rent money back.
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 affordability
 Ive experienced many in the past, but from what I can remember as of now are no hot water, roaches, stove randomly not working, and Random power outages without warning.
 Woodland ignores their residents.
 I have seen cockroaches & when moved in the painting was bad,  cock roaches
 homeownership opportunities
 Inability to pay mortgage. Almost lost home.
 Displacement and lack of affordable housing possibilities to move out of my mom's home
 Rent burden
 Parking and not enough to match the ADU and amount of double up and rental homes. Housing for Young Adults who are in community college  The electrical lights turn off very often when to many things are plugged in at once.
 I can't extend my home or build an ADU because it's in a flood zone. I have to wait until the Menlo Park levee is complete and FEMA changes its map. I could produce more housing if this were done.
 Affordable home improvement ie-solar installation, new roof for senior homeowners
 Poor management by various landlords, over many years. Problems from crowded housing, lack of parking. Witnessing the tragic increase in housing insecurity and homelessness.
 Landlord harassment
 Maintenance.
 We rented a house that was very poorly maintained. It had no heat,, no insulation, the roof leaked, and I’m pretty sure there was mold that caused my son to have asthma and be hospitalized at 5 years old. Due to high rents and competition for renting single family homes in EPA, landlords take advantage to overcharge for miserable living conditions and feel no pressure to update dilapidated residences. When we moved out he immediately rented the same home to another family without making any repairs.
 Tengo 2 años en Península Park Apartments y me han incrementado la renta cada año
 ha sido dificil encontrar una vivienda de tamaño adecuado para mi familia de 7 a un precio accesible. Además que los pocos landlords que nos han tocado son hostiles
 overcrowding
 Scarce units
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Question 2: What do you see as the City's funding priorities for affordable housing | ¿Dónde deben priorizarse recursos?
Summary: 42 respondents listed “Protect from displacement | Proteger contra el desplazamiento” as Most Important or Important; 6 respondents listed it as Least Important
Summary: 39 respondents listed “Preserve and rehabilitate housing | Preservar e rehabilitar viviendas” as Most Important or Important; 9 respondents listed it as Least Important
Summary: 40 respondents listed “Produce affordable housing | Crear más viviendas asequibles” as Most Important or Important; 8 respondents listed it as Least Important
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Question 3: What is the City's most important funding priorities for affordable housing? (Please rank). | ¿Dónde deben priorizarse recursos?
Summary
Graph 1: Protection: Provide tenant assistance | Proveer asistencia para inquilinos  38 Respondents listed it as Very Important, Fairly Important or Important  9 Respondents listed it as Slight Important or Not at all Important  1 Respondent had No Opinion
Graph 2: Protection: Support population experiencing homelessness | Proveer asistencia para personas sin vivienda  39 Respondents listed it as Very Important, Fairly Important or Important  8 Respondents listed it as Slight Important or Not at all Important  1 Respondent had No Opinion
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Graph 3: Preservation: Acquire, rehabilitate and repair affordable housing | Adquirir, rehabilitar y reparar viviendas asequibles  38 Respondents listed it as Very Important, Fairly Important or Important  7 Respondents listed it as Slight Important or Not at all Important  3 Respondents had No Opinion
Graph 4: Preservation: Create affordable homeownership opportunities | Crear oportunidades de compra de viviendas asequibles  32 Respondents listed it as Very Important, Fairly Important or Important  12 Respondents listed it as Slight Important or Not at all Important  4 Respondents had No Opinion
Graph 5: Preservation: Earthquake, flooding, and other natural disaster preparedness | Preparación para terremotos, inundaciones y otros desastres naturales
 37 Respondents listed it as Very Important, Fairly Important or Important  6 Respondents listed it as Slight Important or Not at all Important  5 Respondents had No Opinion
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Graph 6: Production: Provide Accessory Dwelling Unit (ADU) loans | Proveer préstamos para crear segundas unidades (ADUs)  36 Respondents listed it as Very Important, Fairly Important or Important  9 Respondents listed it as Slight Important or Not at all Important  3 Respondents had No Opinion
Graph 7: Production: Develop housing for lower income households | Crear más viviendas asequibles para residentes de bajos ingresos
 34 Respondents listed it as Very Important, Fairly Important or Important  10 Respondents listed it as Slight Important or Not at all Important  4 Respondents had No Opinion
Graph 8: Production: Develop housing for middle income households | Crear viviendas para personas de ingresos medios  31 Respondents listed it as Very Important, Fairly Important or Important  12 Respondents listed it as Slight Important or Not at all Important  5 Respondents had No Opinion
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Question 4: Why did you rate that way? ¿Por qué calificaste de esa manera? Not seeing any movement in these areas
The city has placed far too much emphasis on low income housing. we need both long term and short term solutions - but without the long term solutions nothing will really change.

Because of the results I see of East Palo Alto. Ithe city is becoming a dump, with individuals using and selling drugs on the street.

We need more housing overall, and the market forces will settle things naturally.

Government intervention tends to make things worse, aka bureaucracy and corruption I am from this community and was able to get a job that pays enough for me to afford rent in this community but more than the low low income thresh hold. I am still considered low income but it is important that opportunities are produced for folks who are from this community and can not afford to live here but make more that low low income.
easier to preserve or repair and keep existing residents than to create new housing and choose residents by lottery
Because we need more low income housing
The city has so many problems and yet it's spending WAY TOO MUCH time on COPA/TOPA/OPA. We live in one of the most expensive areas in the country. The time spent on COPA (and it's other forms) will help SO FEW PEOPLE if it's even passed. At the expense of ALL the other problems the city could have been tackling.

Why are the roads crumbling? Why can't city infrastructure be maintained? Why do I drive down the roads with trash littered and litterally dumped on the sides of roads? It's absolutely shameful. We're a real city. Let's act like one.

We need to protect existing low income residents in EPA who are the most in need of assistance and the greatest at risk of displacement.

We need more housing production at all income levels for all residents, present and future!
Housing is important is East Palo Alto especially since it's really expensive.

Por que es importante que aiga programas para que uno pueda comprar o rentar algo que este mas
We need affordable housing in East Palo Alto for low and middle income people We must create more affordable homes for renters of middle and lower income residents.
i think to get to the long term solution, there needs to be more housing (and infrastructure to support it)
Es importante que toda persona tenga un lugar para vivir sin preocuparse que al día siguiente pueda ser botado por no poder 1 o 2 meses de renta. Al igual que deben hacer recursos e información para la gente que está en riesgo de perder su hogar. 272
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As per a presentation at a recent city council meeting, bracing on foundations need to completed, otherwise thousands of people will be homeless in the next big earthquake.

Because these are issues that the city should already be priortizing these issues in the first place. We as the community member should have to speak about it multiple times and theres still no change from the city. I hope to see some kind of change in EPA soon.

Accessibility for affordable housing for extremely low income as most residents are in East Palo Alto needs to be considered and addressed asap I rated this way because I think in east palo alto homeless people get neglected a lot in society. Also I think the preservation of affordable housing is very important; It’s important to know how to better the community.

Because i did and i think what i picked is correct
Because east palo alto struggles with these issues and we should be propitiating low income because that’s what makes up epa
Residents who aren’t low income but also not moderate or higher levels of income are not addressed in the City’s housing stock.

There are more people/higher demand for homes than available homes. Preserving existing homes is important, but long term affordability won't occur if demand continues to outweigh supply. More housing is needed.

Prefer Mixed-Income housing for a balanced community
Personal opinion
Protection, creation, and perservation is a human right Priority needs to be allocated to low-income community members and especially the majority renter households that are extremely rent burdened. More affordable housing needs to be built. The highest priority ought to be assigned to the highest need in our City.

We are characterized as low income but need mid-income opportunities. Individuals are coming back and need housing due to getting degree etc.

I rated that way because everything on the list is very important and well needed here in East Palo Alto. We need to provide a safe and well costing living spaces for the community and families.

Production of all kinds of housing is the most effective way out.

We need housing for all , not just the lowest income families.

The survey question says “What is the City’s” my response is based on what I see City doing and not what I think the city should be doing.

As majority tenant city, a city on the SF Bay on earthquake country.

I believe the City has enough policies in place around development of affordable housing. To take this city to the next phase - a place where the quality of life is good for families and neighbors, the town needs to develop more well-rounded access to retail, entertainment and other life-fulfilling services. Not just affordable housing. Encourage 273
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development of new market housing with some set aside for low-income so developers want to come to EPA and develop housing and service provider locations (restaurants, hair salons, retail stores, etc.).

Keeping people who have housing in their housing is the most cost-effective way to address homelessnes
Rated based on what's not currently being addrrsses or funded.

There actually are currently a lot of supports available in San Mateo county for the most low income families and individuals. Those who make just above the cutoff for these programs are the ones struggling the most.

Porque las rentas están muy altas y los salarios no suben tanto Muchas de estas opciones deben ser tomadas en cuenta en conjunto para cualquier residente.

The housing conversation has always been supportive of lower income residents or market rate residents and the middle-income residents get the short end of the stick.

The city only provides housing for extremely low-income individuals and does little to provide housing for those in the 50 -60% AMI
Question 5: How can the City better meet the housing needs of East Palo Alto residents? | ¿Cómo puede la Ciudad satisfacer mejor sus necesidades de vivienda?
Stop letting landlords raise the rent to amounts that our community cannot afford rezone east palo alto to eliminate Single Family Home zoning, allow for apartments in all neighborhoods, and eliminate parking requirements, setbacks, height limitations, and implement parking restrictions.
take over EPASD, build more housing, get more transit options here.

Keep the city clean, safe and stop implementing sociallism policies which only affect the city growth. Let's encourage people to be law-abiding citizens or residents who are accountable. The City should focus on making EPA beautiful! Give incentives to developers, and get out of the car way By allowing some of the new development projects to build housing units and getting grants to help create affordable units for lower/ middle incomes but with some parameters around the housing so it does not become unsafe like some of the low income apartments in the city are.
1) Reverse the loss of home ownership from 2006-2012: Help EPA residents to BUY single-family houses or 2-3-4plexes currently owned by non-EPA residents, and facilitate coops to buy mobile home parks and apartment buildings. 2) The OPA/COPA/DOPA meetings were confusing, tightly controlled (in a bad way) and exhausting -- all for an ordinance that will not help many people. Future meetings should be concise, with super-clear explanations (in readable text), AND a very clear, open, informative Q&A.
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It has to be care about the people in this residents,
Why doesn't the city act in the best interest of our residents? Why not focus on problems that can be fixed and that will make our city more enjoyable? For example, why can't we have smooth roads? Why is our city like a dump? It's absolutely shameful.

Continue prioritizing low income housing priorities.

Hearing from the East Palo Also residents and holding events/ workshops that we can benefit from. As well as being opening for many solutions/ ways to help with housing needs.

Rentas mas bajas y programas para comprar casa
More housing for not only low income but middle income households Providing information about affordable housing opportunities. Providing a class about financial services and stock to our community. A Policy that will make a change to our community.

Educating the citizens about opportunities and by creating a program where the city assist the buyers with the down payment.
make it easier to build housing, ADU's, expand house capacity, etc. the permitting process, etc is too big of an obstacle.

La ciudad debería tener más información para los residentes en sus redes sociales y hacer juntas virtuales para que esta información llegue a todos. También podrían pedir fondos $$ para que se les den asistencia (con los tramites necesarios) a aquellos que han perdido su trabajo y no pueden pagar la renta
More focus group meetings, but publicize them readily and spread out the timing and locations. Make sure there is enough parking available. If the city wants to encourage ADU's, make the permitting process much easier and publish easy to read guidelines on the process and requirements. Don't encourage people to make ADUs and then penalize them for having them later on.

The city can support EPA residents by passing policies that are benefecial to residents.

Create policies like OPA to allow for a smoother pipeline to home ownership for it's residents that have every intention to stay in East Palo Alto until their dying day. We need to even the oppressive and discriminatory playing field that does not create access for all
I think the city council can better meet the housing need of East Palo Alto by actively going on and asking residents. Listening to the youth is mainly important. I think that the city sometimes makes decisions without the actual input of the city.

By making houses / apartments more affordable.

Use the money to make housing better
meet with residents more often, push for affordable housing programs, homeless shelters
Create housing opportunities for all residents.
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Promote opportunities that result in more housing for people. Ideally, housing for people at various income levels; as opposed to 100% market rate or 100% affordable.

Support building housing more than building commercial structures Less protocolo
Extremely low income housing access and options both renter and home ownership We have no youth homeless shelters in EPA and that is a huge problem. There are no transition group homes either. I work with youth who experience homelessness or as systems impacted and are trying to reintegrate into society but it's extremely hard with no stable housing option available. There is also an acute and ongoing need for rental assistance. The core agencies in the county are not able to support all the people who need the help and it would be great to explore how the City can supplement that effort to fill in the gaps where needed.

Create a policy for single family rental homes Homeowners who own SEVERAL houses but not keeping them up for rentors or doing scams. Its a gap in ALL of the housing policies
Ways that the City can help with meeting the housing needs of East Palo Alto is by hearing our community out for real and understanding what their saying is not just a small problem that they have but knowing that this is a big problem here in East Palo Alto and it's not just one person but it's a lot of EPA's residents who deal with having to leave where they grew up just to be able to afford somewhere to live. Please come up with ways to make housing affordable here in East Palo Alto.

Help us get out of FEMA flood zone ASAP by pushing levee/flood protection projects fast and ALSO ensuring we have the fastest possible FEMA map update at each step.

By providing housing for those in the 50-60% of AMI.

Host interactive town halls quarterly on different housing related issues. And survey’s before to get the temperature of concerns/issues.

What up, rogue?! Increase staffing with passionate, knowledgeable people. Don’t let misinfo, as happened w/OPA, to be so influential. Prevent nonresident landlords from having as much influence as residents. Always keep sight of how EPA isn’t typical of Sili Valley. Factor in our community values, ensure we have managers like Melvin Gaines, partner with nonprofits to educate residents on basic housing knowledge - the different kinds of housing, terminology, some of EPA’s housing history. Residents can recognize their rights, responsibilities and be grounded in the broader knowledge of our history that we’re all part of.

By adopting a more well-rounded policy about housing development that encourages development of higher end (approrpriate for the neighborhood) and low-income.

Make it easier to create ADUs (not require separate utility connections; expand to smaller lots)
Have more voices at the table reflective of the City's residents.

Find a better alternative to OPA that actually helps long time EPA residents stay in EPA, whether that be rental assistance or buyer assistance programs. 276
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Control de renta,renta accesible
Debería haber un control de precio de renta en la comunidad y revisión de la ciudad a hogares donde se sospeche que estan violando y poniendo en riesgo la seguridad de alquilinos. Muchos renteros abusan con los precios y aparte ofrecen garages que no son apropiados para que viva gente ahí
The housing conversation has always been supportive of lower income residents or market rate residents and the middle-income residents get the short end of the stick.

Housing for those who are in the 50-60% AMI. Provide down payment assistance to residents who wish to purchase. Help prevent housing discrimination.

Make more ubits
Question 6: Anything else? ¿Algo más?
Use the vacant lots for more affordable housing such as across the street from city hall.

Build single family homes, that's what makes w city flourish! Expensive cities like SF has a history of lots of regulations to help for affordable housing, yet prices are very high.

Which tells that more government intervention just makes things worse.

It is important that any housing program that the city comes up with is fair not be partial to one race or ethnic group.

The ranking section above was hard to complete-- too long, and too wide, with too many questions and choices. My screen required sliding left and right to see all the choices and up/down for the column headings, so my answers are not super-accurate.

AND Thank you for the survey. But... I do not like surveys where I am 'forced' to complete questions. What if I do not have the time or energy or simply do not want to answer-- does that mean I should quit and not send ANY answers to you? we do really really low income housing in East Palo Alto We should priorities some funding for youth homeless shelters since we don't have one here in East Palo Alto.

Landlords should care about the neighborhood and check that their renters are creating a safe space for everyone.

We need to be responsive and not reactionary for housing opportunities that is deserved by all.

Making youth shelters.
push for youth homeless sheltie
Keep up transparency by City Council, Planning Dept, etc. It's great! 277
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No tengo casa renta es muy cara en California. Su rentals no tienen reglamentacion Talk to CLSEPA. We also need funds to keep up houses or incentives/tax break for those who support families with breaks on the rent. Also, home owner work (it needs to be comprehensive)
Down payment assistance, first time home buyer program, financial literacy for home buyers
Include advocacy orgs, faith community and nonprofits to help spread the word and host housing events.

Keep up the good fight!
Cada cuanto tiempo deben incrementar la renta y que porcentaje The city needs to look for ways to build ownership housing and provide opportunities for those who have been pushed out of EPA to return.

Question 7: Housing Situation
Of the 48 respondents, 21% are tenants in 4+ multi-family buildings; 31% are tenants in a single -family home, duplex, or triplex; 31% are homeowners; 8% are single-family home landlords with tenants; 0% are larger property owners with tenants; and 8% just work in East Palo Alto and live elsewhere.
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EAST PALO ALTO

CITY COUNCIL

STAFF REPORT
DATE: February 6, 2024
TO: Honorable Mayor and Members of the City Council
VIA: Melvin E. Gaines, City Manager
BY: Tomohito Oku, Finance Director
SUBJECT: Mid-year Budget Amendment for Fiscal Year 2023-24 Recommendation
Adopt a resolution approving amendments to the Fiscal Year 2023-24 budget.

Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:

Priority: Ensure Our Financial and Organizational Health Background
The City Council approved the FY 2023-24 Adopted Budget on June 20, 2023. The Adopted Budget (excluding Successor Trust) reflects total revenues of $52.4M and total expenditures of $49.4M resulting in positive net change in fund balance of $3.0M across all funds. 279
POLICY AND ACTION ITEM 9.5
Description
General
Fund /
General
Reserves
Restricted
Funds
Capital
Funds
Enterprise
Funds

TOTAL CITY
FUNDS
Total Revenues 34,743 9,330 2,469 5,880 52,422
Total Expenditures (33,456) (11,290) (561) (4,079) (49,386) Net Sources / (Uses) 1,287 (1,960) 1,908 1,801 3,036
Net Transfers (1,139) 1,139 - - (0)
Change in Fund Balance 147 (821) 1,908 1,801 3,035
(In 000's)
FY 23-24 Adopted - Citywide Funds
The Mid-year Budget Amendment report provides an assessment of the City’s budget condition in the current fiscal year as compared to the adopted budget based on the actual performance during the first six months of the fiscal year 2023-24 ensuring that ongoing operating revenues will be sufficient to cover operating expenses.

The Mid-year Budget Amendment update includes adjustments that have resulted from past council meeting agenda items since the adoption of the budget. Additionally, it contains adjustments related to encumbrances and capital expenditures carried forward from the prior fiscal year that were previously approved by the City Council, but not included in the adopted budget. The update also proposes and recommends adjustments to certain revenue and expenditure categories, as well as transfers based on staff analysis of current economic trends, program and capital project needs, and alignment with Council strategic priorities.

However, these adjustments are subject to Council approval through the attached resolution.

Analysis
Economic Condition and Fiscal Outlook
Financial Results for FY2022-23:

Staff recently reported that the City concluded FY2022-23 in a robust financial position. The General Fund recorded a $5.3 million change in fund balance, resulting in an unassigned fund balance of $22.4 million at the end of the fiscal year. As discussed during the related Council meeting, this positive outcome was primarily attributed to one-time factors such as the backfill of Property Tax VLF revenue and salary savings.

Maintaining the Status Quo:
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Despite the positive financial trends over the past few years, recent forecasts and analyses indicate a slowdown in the City's major tax revenues, contrasting with the continued growth in operating expenditures, leading to a projected budget deficit in the General Fund for the next several years. As a reminder, the General Fund Adopted Budget for FY2023-24 remained balanced by reducing additional spending through departmental initiatives. Given this economic outlook, there is a compelling argument for maintaining a status quo budget for the current and upcoming fiscal years. While it may be challenging to introduce new projects and positions that increase ongoing operational costs, the City's robust financial position can support one-time projects and programs. This underscores the importance of carefully considering any new initiatives to ensure long-term financial sustainability.

General Fund
The General Fund Amended net change in fund balance decreased a total of $8.3M; from $0.1M to negative $8.1M. The table below summarizes the General Fund budget amendments from the adoption to the Mid-year.

Description FY 23-24
Adopted
Amended/
Carry -
Forward
Proposed Total General
Fund/Reserves
Total Revenues 34,743 - - 34,743
Total Expenditures (33,456) (4,806) (100) (38,362)
Net Sources / (Uses) 1,287 (4,806) (100) (3,619)
Net Transfers (1,139) (433) (2,927) (4,500)
Change in Fund Balance 147 (5,240) (3,027) (8,119)
(In 000's)
FY 2023-24 Q2 - General Fund and Reserves
General fund revenues:

There have been no changes in General Fund revenue projection at this point. The table below shows comparison by revenue source between FY23 audited, FY24 adopted and FY24 Midyear amended. 281
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FY 2022-23
AUDIT
FY 2023-24

ADOPTED
FY 2023-24 MID
YEAR
Property Tax $ 19,892,870 $ 17,010,000 $ 17,010,000
Sales Tax $ 6,394,903 $ 6,030,000 $ 6,030,000
Transient Occupancy Tax $ 1,778,986 $ 2,200,000 $ 2,200,000 Business License Tax $ 1,768,500 $ 2,601,135 $ 2,601,135 Other Revenues $ 7,959,852 $ 5,361,443 $ 5,361,443
Subtotal $ 37,795,111 $ 33,202,578 $ 33,202,578
Pass-Through Development $ 889,875 $ 1,540,000 $ 1,540,000 Total Revenues $ 38,684,986 $ 34,742,578 $ 34,742,578
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General fund expenditures:

The increase in General Fund expenditures, excluding transfers, amounts to $4.9 million. This change can be divided into two components: 1) Amended and Capital Projects carry-forwards, and 2) Proposed items. The former has already received approval from the Council, while the latter consists of new items that require Council approval. These changes are described in the later sections. The table below reflects expenditure amendments by department. It’s worth noting that the former Administrative Services Department budget, including IT, Community Services and Senior Services budget, is now under the City Manager’s Office budget subject to Council approval in a separate item in this Council meeting agenda.

DEPARTMENT
FY 2022-23

AUDITED
FY 2023-24

ADOPTED
FY 2023-24 MIDYEAR AMENDED $ Chg%
Chg
City Council 153,818 171,150 181,350 10,200 6.0%
City Attorney 655,371 1,031,428 1,045,933 14,505 1.4%
City Clerk 261,418 361,068 443,882 82,814 22.9%
City Manager 3,491,766 4,252,629 4,913,883 661,254 15.5% Finance 1,013,694 1,278,852 1,426,329 147,477 11.5%
Community Development 4,008,802 5,270,014 7,022,611 1,752,598 33.3% Public Works 3,736,336 4,700,398 6,320,954 1,620,556 34.5% Police 11,807,322 15,407,077 15,649,158 242,081 1.6%
Non-Departmental
Capital/Technology 4,364,818 - 101,878 101,878 #DIV/0!
Insurance and Settlements 806,858 854,684 854,684 - 0.0% Other Non-Departmental 1,258,035 1,041,965 1,314,703 272,738 26.2% Overhead Allocation (861,730) (913,434) (913,434) - 0.0% Sub-total 30,696,508 33,455,831 38,361,932 4,906,100 14.7% Transfers 5,274,098 1,139,438 4,499,865 3,360,427 294.9% Total Expenditures $ 35,970,606 $ 34,595,269 $ 42,861,797 $ 8,266,527 23.9% Amended and carry forward changes:

The net amended/carryforward change of negative $5.2 million comprises two primary components: firstly, adjustments resulting from Council-approved amendments arising from meetings subsequent to the budget adoption, totaling $0.9 million; and secondly, encumbrances carried forward from the prior fiscal year. These encumbrances, amounting to $4.3 million, encompass ongoing contractual commitments and purchase orders, with funds appropriated from the assigned fund balance.

Proposed changes:

The proposed and recommended adjustments are primarily resulted from a proposed capital transfer of $2.4 million from the General Fund reserves to the CIP Fund to support unfunded capital projects. It's worth noting that the Council adopted the budget in June 2023 without planned general capital funding due to a budget deficit. Ending FY2022-23 with a strong 283
POLICY AND ACTION ITEM 9.5
financial position reported in December 2023, staff now recommend restoring the capital funding to make up for the loss. The following table presents a list of unfunded projects scheduled for later in the current fiscal year or at the beginning of FY2024-25.

No. Upcoming Unfunded Projects Project
Number
Estimated
Project Cost
Estimated
Unfunded
Amount
Note
1 Library Design FA-16 $ 3,200,000 $1,300,000
Funds secured from $1.5M State Grant
and $400K from GF committed balance
from ARPA saving
2 Police Department Facility Improvements FA-17 400,000 400,000 Improvement of existing PD modular 3 Tate Stree Office Improvement FA-02 120,000 120,000 Roof improvement 4 O'Connor Pump Station Design SD-06A/B 1,000,000 200,000 $800k USEPA Grant 5 Full Trash Capture Device Installation FA-02 350,000 350,000 Full Trash Capture is mandated by the
State Water Resources Control Board by
2025.

Total - 5,070,000 2,370,000
Furthermore, staff are aware of additional unfunded capital projects, including the third tranche of SFCJPA REACH II funding ($1.5 million), marking the last of the three recommended contributions, and the Pulgas Ave. Mini Roundabouts Project ($1.0 million). Staff is seeking grant funds for these projects and intends to revisit the Council in an upcoming meeting to deliberate on the scope of these projects, a contractual approval and seek funding.

The proposed and recommended adjustments also include a proposed transfer of $157K from the General Fund reserves to the Silicon Valley Community Foundation to correct overcharges of housing personnel costs.

In addition to those proposed amendments funded through the General Fund reserve, staff are seeking an additional appropriation in the amount of $100K to support ongoing ERP implementation efforts from the committed General Fund IT reserves. As a reminder, the funds for the ERP implementation were initially committed by Council at $900K in the IT reserve. The current balance of the reserves is approximately $750K before this recommendation leaving unused funds for $650K. Furthermore. staff are also seeking an additional transfer of $400K from the General Fund committed ARPA saving funds to the CIP Fund to support the Library Design project mentioned above. It’s important to highlight that the funds were created from the savings in the General Fund resulted from the uses of ARPA fund for the general government purposes and committed by Council in April 2023.

The table below is a summary of the General Fund proposed amendments by funding source. 284
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IT Committed
GF Reserve
ARPA Saving
Committed GF
Funds
Unassigned GF
Reserve Total
1 Capital transfer for unfunded projects $ - $ - $ 2,370,000 $ 2,370,000 2 Transfer to SVCF - - 157,000 157,000
3 Support ERP implementation 100,000 - - 100,000
4 Transfer for Library Design (excluding the $1.3M) - 400,000 - 400,000 Total $ 100,000 $ 400,000 $ 2,527,000 $ 3,027,000
No. Proposed Items
Funding Source
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POLICY AND ACTION ITEM 9.5
Restricted Funds
The Restricted Funds Amended net change in fund balance decreased $7.4M from negative $0.8M to negative $8.2M. The change is primarily attributable to a $6.5M loan disbursement to Midpen Housing to support 965 Weeks affordable housing projects appropriated from the $8M State HCD received in the previous fiscal year. The amended/carryforward changes also relate to encumbrances carried forward from the prior year including Measure HH Pilot Workforce Development ($320K) and City-wide sweeping service contract ($138K). The following table summarizes the amended changes in restricted funds.

Description FY 23-24
Adopted
Amended/
Carry -
Forward
Proposed Total
Restricted
Total Revenues 9,330 3 60 9,393
Total Expenditures (11,290) (7,986) 390 (18,886)
Net Sources / (Uses) (1,960) (7,984) 450 (9,494)
Net Transfers 1,139 157 - 1,296
Change in Fund Balance (821) (7,827) 450 (8,198)
(In 000's)
FY 2023-24 Q2 - Restricted Funds
The proposed changes totaling $450,000 include a $390,000 expenditure reduction related to the Encampment Resolution Funding Program, which will be reinstated in the next fiscal year upon the award of a related grant application.

Capital Funds
The Capital Funds Amended net change in fund balance increased $3.2M from $1.9M to $5.1M. The increase is primarily due to the proposed capital transfers of $2.8M explained in the General Fund discussion above. The amended/carryforward changes relate to carryforward capital balances for the major capital projects including University Avenue Interchange and POC Highway 101 ($15.5M), Signage and Bus Shelter Improvements Project ($0.8M) and Joel Davis Park Restroom Improvement Project ($0.4M) which are all primarily grant-funded projects reflecting both grant revenues and capital expenditures for the same amount except for the local match portion. The following table summarizes the amended changes in Capital funds.
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POLICY AND ACTION ITEM 9.5
Description FY 23-24
Adopted
Amended/
Carry -
Forward
Proposed Total
Capital
Total Revenues 2,469 20,091 - 22,560
Total Expenditures (561) (19,649) - (20,210)
Net Sources / (Uses) 1,908 443 - 2,351
Net Transfers - - 2,770 2,770
Change in Fund Balance 1,908 443 2,770 5,121
(In 000's)
FY 2023-24 Q2 - Capital Funds
Enterprise Funds
The Enterprise Funds Amended net change in fund balance decreased $6.8M from $1.8M to $5.0M negative. The amended/carryforward changes relate to carryforward capital balances including University Avenue and Weeks Street 12-inch Watermain Project ($6.7M), Water Meter Installation Project ($0.4M), Woodland Avenue Waterline and City of Palo Alto Interconnect Project ($0.4M), and Capital water system improvements by Veolia ($0.3M). The $2.0M revenue amendment is directly related to State earmark grant for University Avenue and Weeks Street 12-inch Watermain Project. The rest of the funding for the project had already been secured through the transfers made in the previous fiscal year.

Description FY 23-24
Adopted
Amended/
Carry -
Forward
Proposed Total
Enterprise
Total Revenues 5,880 2,000 - 7,880
Total Expenditures (4,079) (9,149) (111) (13,340)
Net Sources / (Uses) 1,801 (7,149) (111) (5,460)
Net Transfers - 433 - 433
Change in Fund Balance 1,801 (6,716) (111) (5,026)
(In 000's)
FY 2023-24 Q2 - Enterprise Funds
The proposed change totaling $111K is related to the limited-term (6 months) Utility Manager position in a separate agendized item.
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POLICY AND ACTION ITEM 9.5
Fiscal Impact
Total proposed amended budget is as follows for the fiscal year 2023-24:

Description
General
Fund /
General
Reserves
Restricted
Funds
Capital
Funds
Enterprise
Funds
TOTAL
CITY
FUNDS
Total Revenues 34,743 9,393 22,560 7,880 74,576
Total Expenditures (38,362) (18,886) (20,210) (13,340) (90,798) Net Sources / (Uses) (3,619) (9,494) 2,351 (5,460) (16,222) Net Transfers (4,500) 1,296 2,770 433 -
Change in Fund Balance (8,119) (8,198) 5,121 (5,026) (16,222) FY 23-24 Mid Year Amended - Citywide Funds
(In 000's)
Public Notice
The public was provided notice by making the agenda and report available on the City’s website and on a bulletin board located at City Hall: 2415 University Avenue, East Palo Alto.

Government Code § 84308
Applicability of Levine Act: No, as the proposed action does not involve an entitlement.

Analysis of Levine Act Compliance: Not applicable.

Attachments

1. Resolution.

2. Mid-Year Budget Summary
288
RESOLUTION NO. XX – 2024

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF EAST PALO ALTO
APPROVING AMENDMENTS TO THE FISCAL YEAR 2023-24 BUDGET
WHEREAS, the City Council, from time to time, reviews the annual spending plan for the City of East Palo Alto General, Special Revenue, Capital, Enterprise, and Trust Funds in order to account for anticipated revenues and to appropriate projected expenditures; and
WHEREAS, the East Palo Alto Municipal Code section 3.08.110 requires the adoption of an annual budget no later than June 30th prior to the beginning of the fiscal year; and
WHEREAS, the City Council adopted the Fiscal Year (“FY”) 2023-24 Budget on June 20, 2023, and has approved amendments of the budget since adoption; and WHEREAS, City staff propose amendments to the budget based upon noted midyear trends and information.

WHEREAS, upon consideration of the information presented, the City Council desires to make amendments to the FY 2023-24 Budget.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF EAST PALO ALTO HEREBY:

1. Finds the foregoing recitals are true and correct, and are incorporated by this reference into this action; and

2. Approves amendments to the FY 2023-24 Budget, attached hereto as Exhibit A and incorporated by this reference; and

3. Finds that the action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment. 289
PASSED AND ADOPTED this 6th day of February 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Antonio Lopez, Mayor
ATTEST: APPROVED AS TO FORM:

James Colin, City Clerk John D. Lê, City Attorney
290
Exhibit A
Revenues Expenditures In Out
10 General Fund $ 33,002,578 $ (32,833,495) $ - $ - $ (6,964,791) $ (6,795,708) 11 IT Replacement Fund $ - $ (1,823,808) $ - $ 1,226,742 $ - $ (597,066) 12 Equipment & Vehicles $ - $ (491,865) $ - $ 328,500 $ - $ (163,365) 13 Self Insurance $ - $ (909,684) $ - $ 909,684 $ - $ - 16 Community Benefit Fund $ - $ - $ - $ - $ - $ -
17 Com Dev Pass Thru $ 1,540,000 $ (2,290,980) $ - $ - $ - $ (750,980) 99 Emergency Fund $ 200,000 $ (12,100) $ - $ - $ - $ 187,900 $ (2,464,926) $ 2,464,926 $ -
$ 34,742,578 $ (38,361,932) $ - $ - $ (4,499,865) $ (8,119,219) 201 State Gas Tax $ 1,496,600 $ (1,246,322) $ (550,000) $ 64,500 $ - $ (235,222) 202 Measure A $ 720,400 $ (3,459) $ (550,146) $ - $ - $ 166,795 203 NPDES $ 248,300 $ (770,801) $ (138,000) $ 531,244 $ - $ (129,257) 204 Rent Stabilization $ 614,860 $ (880,300) $ - $ - $ - $ (265,440) 206 Park In Lieu $ 4,800 $ - $ - $ - $ - $ 4,800
207 Housing In Lieu $ 1,134,000 $ (9,422,920) $ - $ - $ - $ (8,288,920) 209 Housing Assistance Program $ 4,800 $ (9,025) $ - $ - $ - $ (4,225) 213 Police Grants $ 163,520 $ (176,229) $ - $ - $ - $ (12,709) 215 Misc Federal and State Grants $ 495,611 $ (289,994) $ - $ - $ - $ 205,617 218 Affordable Housing TOT $ 313,400 $ (28,917) $ - $ - $ - $ 284,483 219 Measure HH $ 1,747,400 $ (1,376,398) $ - $ - $ - $ 371,002 220 Lo-Mod Housing Successor $ 92,000 $ (1,311,810) $ - $ 397,410 $ - $ (822,400) 221 Lighting District $ 862,700 $ (226,906) $ (141,363) $ - $ - $ 494,432 222 Drainage District $ 163,040 $ (347,952) $ - $ 146,284 $ - $ (38,628) 230 Local Grants $ 730,500 $ (727,930) $ - $ - $ - $ 2,570 231 CYSFF Grant Fund $ 289,400 $ (322,997) $ - $ - $ - $ (33,597) 232 Measure C $ 2,880 $ (124,242) $ - $ - $ - $ (121,362) 233 Silicon Valley Community $ - $ - $ - $ 157,027 $ - $ 157,027 234 County Measure W $ 308,000 $ (1,689) $ (238,190) $ - $ - $ 68,120 301 Capital Improvement Fund $ 610,400 $ (422,849) $ (2,565,908) $ 2,770,000 $ - $ 391,643 303 Capital Grant $ 20,091,496 $ - $ (17,054,859) $ - $ - $ 3,036,637 305 Parks & Trails $ 441,779 $ - $ - $ - $ - $ 441,779
306 Public Facilities $ 774,906 $ - $ - $ - $ - $ 774,906 307 Transportation $ 278,251 $ (83,333) $ - $ - $ - $ 194,918 308 RBD-I Storm D $ 360,352 $ (83,333) $ - $ - $ - $ 277,019 309 RBD-O Storm D $ 3,200 $ - $ - $ - $ - $ 3,200
510 Water Service Fund $ 524,720 $ (608,396) $ - $ - $ - $ (83,676) 511 Water Capital Fund $ 3,264,000 $ (326,918) $ (8,515,505) $ 433,400 $ - $ (5,145,023) 512 Water Meter Fund $ 22,400 $ (10,000) $ (448,640) $ - $ - $ (436,240) 513 Water Capacity Fee Fund $ 785,863 $ (83,333) $ - $ - $ - $ 702,530 520 Garbage Service Fund $ 3,283,200 $ (3,346,715) $ - $ - $ - $ (63,515) $ 74,575,355 $ (60,594,699) $ (30,202,611) $ 4,499,865 $ (4,499,865) $(16,221,955) FY 2023-24 AMENDED GENERAL FUND SUMMARY
Fund Description
Operating Capital
Improvement
Plan
Operating Transfers Net Change
Fund Balance

ELIMINATING ENTRY

TOTAL GENERAL FUND

CITY OPERATING FUNDS
291
Adopted Amended Proposed Amended 12/31/2023 12/31/2022 FY 2022-23 Revenues 2024 Changes Changes 2024 Actual YTD % Actual YTD Audited % Property Tax 17,010,000 - - 17,010,000 6,777,159 40% 11,239,746 19,892,870 57% Sales Tax 6,030,000 - - 6,030,000 2,288,616 38% 2,462,700 6,394,903 39% Utility Users Tax 1,726,043 - - 1,726,043 776,879 45% 773,046 1,936,239 40% Transient Occupancy Tax 2,200,000 - - 2,200,000 898,279 41% 827,490 1,778,986 47% Business License Tax 2,601,135 - - 2,601,135 142,123 5% 46,207 1,768,500 3% Fees and Permits 1,590,600 - - 1,590,600 817,346 51% 698,555 1,749,358 40% Fines and Forfeitures 225,000 - - 225,000 191,370 85% 73,534 278,019 26% Use of Money and Property 652,000 - - 652,000 1,698,128 260% 1,635,814 1,197,445 137% Grants and Intergovernmental 342,600 - - 342,600 59,281 17% 86,185 2,082,546 4% Charges for Current Services 965,200 - - 965,200 367,244 38% 326,380 630,596 52% Other Miscellaneous 1,400,000 - - 1,400,000 56,491 4% 15,021 975,524 2% Total Revenues 34,742,578 - - 34,742,578 14,072,916 41% 18,184,678 38,684,986 47% Expenditures
City Council 171,150 10,200 - 181,350 74,745 41% 71,376 153,818 46% City Attorney 1,031,428 14,505 - 1,045,933 295,500 28% 286,760 655,371 44% City Clerk 361,068 82,814 - 443,882 181,962 41% 14,714 261,418 6% City Manager 1,465,567 178,756 - 1,644,323 583,874 36% 488,881 1,042,229 47% Human Resources 926,727 301,767 50,000 1,278,494 430,770 34% 233,284 676,570 34% Formerly Adminstrative srvs 813,482 41,360 - 854,842 266,785 31% 337,440 626,501 54% Community Programs 741,947 73,795 - 815,743 394,627 48% 346,770 856,828 40% Senior Services 304,907 15,575 - 320,482 99,678 31% 514,498 289,638 178% Finance 1,278,852 97,477 50,000 1,426,329 613,604 43% 141,878 1,013,694 14% Community Development 578,693 90,423 - 669,117 269,233 40% 325,404 880,004 37% Building Services 1,729,629 1,053,373 - 2,783,002 516,095 19% 505,830 1,176,389 43% Planning 2,512,720 442,750 - 2,955,470 714,895 24% 557,055 1,763,980 32% Housing 448,971 166,051 - 615,023 87,102 14% 73,012 188,429 39% Public Works 480,968 - - 480,968 25,678 5% 72,864 136,829 53% Engineering Services 1,148,553 1,054,197 - 2,202,751 587,035 27% 463,780 1,143,704 41% Maintenance 2,916,938 506,359 - 3,423,296 1,087,628 32% 923,872 2,222,656 42% Environmental Services 153,939 60,000 - 213,939 85,049 40% 96,570 233,147 41% Police 5,093,581 242,081 - 5,335,662 2,263,252 42% 2,548,198 4,453,510 57% Operations 8,233,352 - - 8,233,352 4,077,765 50% 3,054,441 6,359,513 48% Investigations 2,080,144 - - 2,080,144 597,009 29% 450,604 994,299 45% Non-Departmental:

Capital Outlay - 101,878 - 101,878 0% - 4,364,818
Insurance and Settlements 854,684 - - 854,684 814,687 95% 806,859 806,858 100% Other Non-departmental 1,041,965 272,738 - 1,314,703 776,018 59% 636,300 1,258,035 51% Overhead Allocation (913,434) - - (913,434) (380,598) 42% (430,865) (861,730) 50% Total Expenditures 33,455,831 4,806,100 100,000 38,361,932 14,462,392 38% 12,519,527 30,696,508 41% Revenues Over / (Under) 1,286,746 (4,806,100) (100,000) (3,619,354) (389,476) 5,665,151 7,988,478 Other Financing Sources/Uses Transfers In - - - - - - 2,600,140 0% Transfers Out (1,139,438) (433,400) (2,927,027) (4,499,865) (569,719) 13% (559,180) (5,274,098) 11% Net Operating Transfers (1,139,438) (433,400) (2,927,027) (4,499,865) (569,719) 13% (559,180) (2,673,958) 21% Change in Fund Balance 147,308 (5,239,500) (3,027,027) (8,119,219) (959,195) 5,105,971 5,314,520 Other Reserve Changes 1,857,000 5,199,040 100,000 7,156,040 - (719,042) Projected Operating Reserves*
Beginning Balance 22,430,105 - - 22,430,105 22,430,105 17,834,627 Ending Balance 24,434,413 - - 21,466,926 21,470,910 22,430,105 * Projected Reserve Fund Balance is restated based on the most recent audited financial statements and include only unassigned fund balance without contingency reserve.

City of East Palo Alto
GENERAL FUND BUDGET FY 2023-24
For Second Quarter Ended December 31, 2023
292

East Palo Alto City CouncilFebruary 6, 2024

East Palo Alto City Council
February 6, 2024