Palo Alto City Council
December 9, 2024

Table
of
Contents

1. Executive
Summary
………………………...…………………………………….…..…Pg.
2 2.

Section
1:

Needs
………………………………………………………………….…..….Pg.
4 3.

Section
2:

Existing
Programs
and
Services…………………………………….…..…Pg.
9 4.

Section
3:

Literature
Review
and
Relevant
Programs
and
Services
from
Other
Municipalities………………………………………………………………………….….Pg.
22 5.

Section
4:

Summary
of
Gaps…………………..…………………….…………..…….Pg.
32 6.

Appendix
A:

Income
Categories
and
Definitions………………………..………..Pg.
33 7.

Appendix
B:

Definitions
of
Terms………………………………………………………Pg.
34 8.

Appendix
C:

Programs
and
Services
in
Other
Municipalities
(not
inclusive
of
existing
Palo
Alto
Programs).................................................................................Pg. 36 1
Executive
Summary
As
part
of
the
City
Council’s
2024
Council
Priorities
and
annual
objectives
process,
the
Council
directed
staff
to
conduct
a
gap
analysis
relating
to
the
City’s
needs
on
Housing
and
Unhoused
Services.

The
following
report
aims
to
explore
the
City’s
current
needs
relating
to
housing
and
unhoused
services,
as
well
as
its
services
and
programs,
to
outline
gaps,
and
to
provide
information
on
potential
actions
to
address
the
gaps.

Following
interviews
with
dozens
of
stakeholders
(
including
City
staff,
developers,
partner
agencies,
and
non-profit
providers),
reviews
of
relevant
social
science
research,
and
research
on
the
programs
and
services
of
other
municipalities,
the
analysis
made
the
following
conclusions
relevant
to
Palo
Alto’s
needs:
1)
Congregate
shelter
is
not
accessible
and/or
appropriate
for
many
unhoused
community
members.
2)
Income-restricted
affordable
housing
is
the
best
fit
for
many
seeking
housing,
but
there
is
not
readily
available
affordable
housing
for
many
who
are
seeking
it.
3)
Building
affordable
units
is
expensive,
but
cities
can
use
planning
programs
to
incentivize
more
affordable
units
(alongside
or
instead
of
funding
programs).
4)
Enforcement
is
unlikely
to
be
a
long-term
solution.
5)
An
overarching
strategy
and
team
is
often
needed
to
address
the
need.

Ultimately,
Palo
Alto
has
a
large
number
of
services
to
help
residents
facing
housing
crises
get
assistance,
but
also
faces
a
number
of
gaps
-
most
notably,
in
the
availability
of
temporary
shelter
and
affordable
units,
across
all
income
levels,
but
particularly
with
regards
to
affordable
units
for
unhoused
households.

For
example,
Palo
Alto
has
120
unhoused
community
members
who
have
been
assessed
to
need
“Permanent
Supportive
Housing,”
which
is
a
type
of
affordable
housing
meant
to
provide
support
to
unhoused
households
with
disabling
conditions.

But,
there
are
no
such
units
entitled
in
Palo
Alto’s
housing
pipeline.

Relatedly,
154
Palo
Altans
became
homeless
last
year,
but
there
are
only
286
affordable
housing
units
entitled
to
be
built
in
the
next
couple
of
years
-
which
means
homelessness
will
continue
to
increase,
unless
more
Palo
Altans
are
prevented
from
becoming
homeless
or
more
affordable
units
are
built.
2 Palo
Alto
has
a
number
of
opportunities
to
build
on
its
existing
programs
and
services
to
further
address
the
needs
of
those
facing
housing
crises
in
the
City.

While
the
need
for
housing-related
programs
and
services
is
high,
it
is
feasible
to
put
together
a
number
of
strategies
to
make
meaningful
change,
prevent
homelessness
and
get
Palo
Altans
into
stable,
affordable
housing.

About
Good
City
Good
City
has
a
long
track
record
of
serving
public
and
private
sector
clients.

Our
Northern
California
based
history
uniquely
positions
the
company
to
provide
technical
services
tailored
to
the
local
area.

Our
key
services
include
local
government
staffing,
current
planning,
policy
planning,
economic
development,
and
city
manager’s
office
services.

About
Micaela
Hellman-Tincher,
Good
City
Housing
Specialist
Micaela
has
extensive
experience
in
local
government
-
and
in
particular
North
Santa
Clara
County
-
largely
focused
on
housing
and
social
services.

Additionally,
she
grew
up
in
Palo
Alto,
and
currently
lives
in
Palo
Alto
with
her
husband,
daughter,
and
mother.
3 1
.

Needs
Palo
Altans
face
a
diverse
array
of
needs
relating
to
housing.

Palo
Altans
facing
housing
crises
include
homeowners,
renters,
people
living
in
cars
and
RVs,
people
living
outside,
people
living
in
shelters,
people
“couch
surfing,”
seniors,
people
with
disabilities,
families,
individual
adults,
and
transitional-aged
youth.

The
following
section
aims
to
illustrate
the
particular
characteristics,
and
the
particular
magnitude,
of
those
facing
housing
needs
in
Palo
Alto,
in
order
to
better
determine
gaps
in
the
existing
continuum
of
interventions
and
services.

On
an
issue
as
large
as
housing,
there
are
many
ways
to
consider
need.

Should
the
City
only
consider
solutions
for
those
who
have
already
lost
their
housing,
or
look
more
broadly
to
those
who
are
struggling
to
cover
their
current
housing
costs?
Is
it
wise
to
focus
on
the
City’s
current
population,
or
to
look
to
the
future,
and
estimate
needs
based
on
those
who
might
seek
to
work
or
live
in
the
City
in
the
future
as
well?
The
report
below
aims,
when
feasible,
to
give
a
range
of
data
points
to
consider.

When
considering
ways
to
address
needs,
municipalities
sometimes
come
up
with
a
definable
goal
-
for
example,
no
unsheltered
families,
shelter
for
anyone
who
desires
it,
or
a
certain
number
of
housing
units
built
in
a
five-year
period.

This
report
aims
to
give
the
City
an
understanding
of
existing
needs
and
service
gaps
with
which
to
consider
these
types
of
goals.

Unhoused
Palo
Altans
The
most
critical
need
relates
to
those
Palo
Altans
who
are
already
unhoused.

The
unhoused
population
in
Palo
Alto
is
also
diverse
in
its
needs.

For
example,
of
the
269
Palo
Alto-affiliated
households
assessed
via
the
County’s
“VI-SPDAT”
(see
footnote)
assessment
between
July
1,
2023
–
June
30,
2024,
nearly
half,
120,
need
Permanent
Supportive
Housing
(PSH).
1 Permanent
Supportive
Housing
is
housing
that
provides
subsidies,
as
well
as
case
management
and
supportive
services.

Permanent
Supportive
1 A
note
on
data:

The
two
main
ways
to
measure
the
unhoused
population
are
via
the
“Point-In-Time”
Count,
and
via
the
data
in
the
County’s
Homelessness
Information
Management
System
(HMIS).

This
report
relies
on
HMIS
data,
mainly
because
it
includes
data
on
responses
to
the

VI-SPDAT
(Vulnerability
Index
–
Service
Prioritization
Decision
Assistance
Tool),
which
assesses
the
types
of
housing
services
best
suited
for
each
unhoused
person
based
on
their
vulnerability
and
personal
history.

Both
are
useful
ways
of
understanding
the
unhoused
population.
4 Housing
is
for
households
who
face
a
disabling
condition
which
affects
their
ability
to
get
and
maintain
housing.

Forty-two
unhoused
community
members
were
members
of
a
family
with
children.

Another
significant
subset
of
the
unhoused
population
in
Palo
Alto
are
those
over
age
65,
of
which
there
are

35. Table

1.1 -
Palo
Alto
Unhoused
Population
2 Unhoused
Population
Unhoused
Population
Needing
PSH
Housing
Unhoused
Households
with
a
Population
with
Children
Unhoused
Population
Over
Age
65 269
120
42 35
Of
note,
unhoused
residents
in
Palo
Alto
were
more
likely
to
sleep
in
a
car,
or
to
couch
surf,
than
other
unhoused
people
countywide.

Over
70 Palo
Alto
unhoused
individuals
sleep
outdoors,
but
a
lower
proportion
of
unhoused
Palo
Altans
sleep
outside
compared
with
the
unhoused
population
county-wide.

In
interviews
with
service
providers,
City
staff
found
that
many
unhoused
Palo
Altans
originally
come
from
Palo
Alto,
or
fell
on
hard
times
after
moving
to
Palo
Alto
for
work.

Still
others
have
children
in
the
local
school
district.

This
aligns
with
Countywide
data
that
85%
of
unhoused
individuals
in
Santa
Clara
County
were
residents
of
Santa
Clara
County
when
they
became
homeless,
and
54%
had
been
residents
for
over
10 years.
3 As
in
other
parts
of
the
County,
unhoused
community
members
are
disproportionately
Black/African
American
or
Latinx/Hispanic.

In
August
of
2024,
32%
of
the
City’s
unhoused
population
was
Latinx,
while
7%
of
Palo
Altans
are
Latinx/Hispanic,
and
26%
of
the
City’s
unhoused
population
was
Black/African
American,
while
2%
of
Palo
Altans
are
Black.
4 Destination:

Home
reports,
“national
research
has
shown
that
people
of
color
are
dramatically
more
likely
than
their
white
counterparts
to
become
homeless
in
4 2020
Census
Data
and
August
Community
Housing
Queue
Data,
Santa
Clara
County.
3 “
Santa
Clara
County
Point
In
Time
Report,
2023.”
https://osh.sccgov.org/continuum-care/reports-and-publications/santa-clara-county-homel ess-census-and-survey-reports-point
2 Santa
Clara
County

VI-SPDAT
responses
among
“Palo
Alto
affiliated”
households,
July
1,
2023
-
June
30,
2024..
5 America,
and
that
the
legacy
of
historical
and
contemporary
structural
racism
is
at
the
root
of
who
becomes
homeless.”
5 Historical
discrimination,
including
housing
discrimination
based
on
race
6 ,,
and
current
barriers,
such
as
difficulty
obtaining
employment
and
paperwork
(for
immigrant
households),
remain
relevant
in
Palo
Alto’s
housing
crisis.

Those
At
Risk
of
Homelessness
When
trying
to
assess
the
need,
the
next
most
critical
group
is
those
who
are
at
risk
of
becoming
homeless.

There
are
a
number
of
ways
to
estimate
the
size
of
this
group.

One
way
to
understand
who
is
at
risk
of
becoming
homeless
is
by
looking
at
the
“newly
unhoused”
in
Palo
Alto
each
year.

From
July
1,
2023
to
June
30,
2024,
154
unhoused
Palo
Altans
were
entered
into
the
County
Homeless
Management
Information
System.
7 While
an
imperfect
number,
as
it
doesn’t
include
those
who
were
perhaps
unhoused
earlier,
but
not
known
to
outreach
teams,
it
helps
to
illustrate
the
number
of
Palo
Altans
who
go
from
housing
to
homelessness
in
a
given
year,
and
who
would
benefit
from
help
remaining
housed.

Table

1.2 describes
the
number
of
Palo
Altans
who
applied
for
homelessness
prevention
funds
through
the
County’s
Homelessness
Prevention
System
last
fiscal
year,
and
in
July
and
August,
2024.

Per
the
County,
“The
Homelessness
Prevention
System
provides
assistance
to
low-income
families
or
individuals
who
are
at
risk
of
losing
their
housing,
including:
temporary
financial
assistance,
legal
support,
case
management
and
other
services.”
This
demonstrates
another
way
of
understanding
the
housing
needs
of
Palo
Altans
who
are
currently
housed,
but
are
at
a
risk
of
becoming
homeless.

The
County’s
Homelessness
Prevention
System
prioritizes
funds
based
on
a
needs
assessment,
so
the
numbers
below
do
not
necessarily
represent
every
Palo
Alto
household
who
may
have
needed
these
funds
—
rather,
it
represents
those
that
qualified
given
the
available
funds.
7 Santa
Clara
County

VI-SPDAT
responses
among
“Palo
Alto
affiliated”
households,
July
1,
2023
-
June
30,
2024.
6 Palo
Alto’s
2023
Assessment
of
Fair
Housing
details
some
of
the
City’s
experience
with
historical
discrimination
regarding
housing.
5 “
Race
and
Homelessness
in
Santa
Clara
County.”
Destination:

Home.
https://destinationhomesv.org/race-homelessness-in-santa-clara-county/ 6 Table

1.2 -
Palo
Alto
Households
Enrolled
in
Santa
Clara
County
Homelessness
Prevention
System
In
Recent
Years
Time
Period
Number
of
Unduplicated
Households
Enrolled
Total
Financial
Assistance
Provided
July
2023
-
June
2024
111
$488,658
July
and
August
2024
46 $92,967
The
broadest
way
of
understanding
Palo
Altans
at
risk
of
becoming
homeless
is
by
looking
at
renters
who
spend
more
than
30%
of
their
income
on
housing
costs
—
a
level
that
is
defined
as
“cost
burdened,”
by
the
U.S.

Department
of
Housing
and
Urban
Development.
8 Households
with
a
housing
burden
greater
than
30%
struggle
to
afford
to
live
in
Palo
Alto,
and
may
be
sacrificing
other
basic
needs,
such
as
food
and
medical
attention,
in
order
to
cover
their
housing
costs.

A
single
financial
crisis
could
send
the
family
into
homelessness.

Of
11,470
renters
in
Palo
Alto,
4,425
spend
more
than
30%
of
their
income
on
housing
costs.

As
shown
in
Table

1.3,
households
facing
a
housing
cost
burden
span
income
levels.

Of
note,
of
the
4,425
cost-burdened
renters
in
Palo
Alto,
over
2,000
earn
“very
low”
or
“extremely
low”
incomes.

Spending
over
30%
of
a
very
low
or
extremely
low
income
on
housing
costs
does
not
leave
significant
additional
funds
to
cover
basic
needs.

In
real
terms,
this
would
mean
a
family
of
four
would
be
spending
over
30%
of
their
$55,300
annual
household
income
on
housing,
leaving
only
$3,225
monthly
to
cover
medical
expenses,
food,
child
care,
and
other
basic
needs.

Appendix
A
defines
the
income
levels
associated
with
Extremely
Low
Income
(ELI),
Very
Low
Income
(VLI),
Low
Income
(LI),
and
Median
Income
(MI),
per
State
and
Federal
income
limits.
8 Department
of
Housing
and
Urban
Development
Comprehensive
Housing
Affordability
Strategy
Data,
2017-2021
American
Community
Survey
data.
7 Table

1.3 -
Cost
Burdened
Renters
by
Income
Level
9 ELI
Renters
with
Housing
Cost
Burden
Greater
Than
30%
VLI
Renters
with
Housing
Cost
Burden
Greater
Than
30%
LI
Renters
with
Housing
Cost
Burden
Greater
Than
30%
MI
Renters
with
Housing
Cost
Burden
Greater
Than
30%
Total
Renters
with
Housing
Cost
Burden
Greater
Than
30%
(includes
households
earning
above
MI)
1,460
865
915
550
4,425
9 Department
of
Housing
and
Urban
Development
Comprehensive
Housing
Affordability
Strategy
Data,
2017-2021
American
Community
Survey
data.
8 2.

Existing
Programs
and
Services
While
the
need
is
great,
several
existing
programs
and
services
striving
to
support
Palo
Altans
facing
housing
challenges.

There
are
a
number
of
entities
involved
in
addressing
the
housing
needs
of
Palo
Altans.

Besides
the
City
of
Palo
Alto,
involved
entities
include:
-
Santa
Clara
County.

Santa
Clara
County
coordinates
the
area’s
Continuum
of
Care,
or
CoC.

As
the
CoC,
the
County
receives
U.S.

Department
of
Housing
and
Urban
Development
(HUD)
funds,
which
it
subsequently
distributes
to
service
providers
or
uses
to
implement
programs
county-wide.

These
funds
generally
amount
to
$39
million
annually.

The
County
provides
an
approximately
$10
million
local
match.

The
County
also
applies
for
other
funding
programs
to
implement
services,
which
include
a
continuum
from
homelessness
prevention
to
shelter
to
permanent
housing.

Many
Palo
Altans
receive
services
via
this
continuum.

Sometimes
they
receive
these
services
in
Palo
Alto
-
for
example,
Palo
Altans
can
access
homelessness
prevention
funds
via
LifeMoves
at
the
Opportunity
Services
Center.

Sometimes
they
receive
these
services
outside
of
Palo
Alto,
for
example
when
they
move
into
permanent
supportive
housing
units
in
other
cities
in
the
County.

A
condition
of
HUD’s
CoC
funding
is
that
the
County
must
implement
a
“coordinated
entry”
system,
a
homeless
management
information
system
(HMIS),
no-wrong-door
services,
and
a
prioritization
system
based
on
the
vulnerability
of
various
groups.

This
means
that
when
an
unhoused
Palo
Altan
seeks
services
via
the
CoC,
they
are
entered
into
a
county-wide
system.

When
they
are
seeking
shelter,
they
are
routed
based
on
a
first-come
first-served
basis,
but
also
based
on
their
needs
(for
example,
North
County
residents
are
given
preferred
access
to
North
County
shelters).

When
they
are
seeking
housing,
they
are
given
an
assessment,
known
as
the

VI-SPDAT
(Vulnerability
Index
–
Service
Prioritization
Decision
Assistance
Tool),
to
determine
which
housing
they
might
qualify
for,
and
to
place
them
on
a
prioritization
queue
based
on
their
vulnerability.

It
is
feasible
for
cities
to
carve
out
priority
programs
for
their
residents
by
providing
funding
that
replaces
HUD
funds
for
specific
programs
-
for
example,
providing
City
funds
9 to
cover
case
management
for
specific
permanent
supportive
housing
units
for
Palo
Alto
residents.

Much
of
the
County’s
work
is
based
on
the
2020-2025
Community
Plan
to
End
Homelessness,
which
is
focused
on
three
strategies:
1)
Address
the
root
causes
of
homelessness
through
system
and
policy
change
2)
Improve
quality
of
life
for
unsheltered
individuals
and
create
healthy
neighborhoods
for
all
3)
Expand
homelessness
prevention
and
housing
programs
to
meet
the
need
-
State
of
California.

The
State
plays
a
role
in
enforcing
State
laws
relating
to
housing
development.

Most
specifically,
the
State’s
Housing
Element
process
will
monitor
the
City’s
recently
certified
Housing
Element.

State
laws,
such
as
SB
330
-
the
Housing
Crisis
Act
of
2019
-
place
requirements
on
cities
to
uphold
renter
protections
and
to
comply
with
no
net
loss
requirements
relating
to
housing
redevelopment.

The
State
also
provides
annual
funding
allocations
for
affordable
housing
and
homelessness
services,
via
a
number
of
grant
programs
that
are
both
increasing
in
number
and
in
competitiveness.

The
City
and
housing
projects
in
the
City
have
both
earned
State
funding,
including
the
City’s
upcoming
Homekey
shelter
project.
-
Non-profit
partners.

Much
of
the
“on
the
ground”
service
provision
is
provided
by
non-profits.

These
non-profits
provide
significant
expertise
and
build
community
trust
with
local
residents.

They
also
frequently
depend
on
government
funders,
including
the
City
of
Palo
Alto
and
Santa
Clara
County,
to
provide
services.
-
Funders.

In
addition
to
the
entities
listed
above,
private
entities
-
including
banks,
companies,
and
investors
-
provide
both
grant
funding
and
loans
which
support
unhoused
services
and
affordable
housing.
-
Developers.

Private
developers,
of
both
affordable
and
market-rate
housing,
are
the
ultimate
providers
of
housing.

Most
affordable
housing
developers
depend
on
a
mix
of
private
and
public
funds
to
finance
their
housing,
and
are
therefore
10 often
required
to
implement
specific
housing
programs
as
a
condition
of
the
funding.

Developers
partner
closely
with
various
suppliers,
contractors,
and
skilled
trades
to
do
the
actual
construction
of
the
units
-
and
the
price
and
availability
of
these
partners
intimately
affects
development
costs.

Palo
Alto
Programs
and
Services
And
Known
Gaps
The
existing
programs
and
services
offered
in
Palo
Alto
are
divided
below
into
the
three
strategies
that
align
with
the
Community
Plan
to
End
Homelessness,
as
listed
above.
1)
Address
the
root
causes
of
homelessness
through
system
and
policy
change
This
report
is
mostly
focused
on
programs
and
services,
but
there
are
several
strategies
in
place
in
Palo
Alto
that
do
help
address
systems
causing
homelessness.

These
include
some
of
the
City’s
renter
protections,
such
as:
-
Security
deposit
limit
of

1.5x
rent
for
unfurnished
units
-
Just
cause
eviction
protections,
expanded
to
more
recent
tenants
and
newer
buildings
-
One
year
lease
requirements
-
Project
Sentinel
Palo
Alto
Mediation
Program,
funded
by
the
City
of
Palo
Alto.

It
also
includes
anti-displacement
provisions
required
by
both
the
City
and
the
State,
including:
-
Relocation
assistance
for
no
fault
evictions
-
Housing
Crisis
Act
-
First
right
of
refusal
for
displaced
households
in
new
buildings
All
of
the
above
programs
require
households
to
be
informed
about
their
rights,
and
often
require
the
pursuit
of
a
mediation
or
court
process
to
rectify
any
wrongs.

There
is
not
a
proactive
monitoring
system
in
Palo
Alto
for
the
protections
above.

The
City
also
has
several
strategies
in
place
aimed
at
increasing
the
supply
of
market
rate
and
affordable
housing
via
planning
processes
-
which
in
addition
to
the
funding
programs
discussed
below,
are
key
for
addressing
the
underlying
issue
of
housing
scarcity.

These
include
the
following
Housing
Element
programs
in
process:
-
Downtown
Housing
Plan
-
Housing
on
City-owned
lots
11 -
Evaluation
of
fees
and
fee
amendments
-
Developer
coordination
-
Considering
Below-Market-Rate
Program
modifications
-
Housing
Incentive
Program
-
Housing
Incentive
Program
(HIP)
and
Affordable
Housing
Incentive
Program
(AHIP)
modifications
-
Expansion
of
the
El
Camino
Real
Focus
Area
-
Streamlining
-
Allowing
more
mixed-use
development
at
commercial
sites
-
Seismic
regulations
update
-
Code
amendments
for
alternate
housing
types
In
addition
to
this
multitude
of
programs,
there
are
opportunities
for
further
planning
programs
aimed
at
increasing
housing
and
specifically,
affordable
housing
development,
further
discussed
in
Section

3. Finally,
the
City
has
staff
dedicated
to
addressing
housing
and
homelessness,
including

2.5 FTE
in
Planning,
1 FTE
in
the
City
Manager’s
Office,
and
2 FTE
in
Community
Services
(not
exclusively
working
on
unhoused
services).
2)
Improve
quality
of
life
for
unsheltered
individuals
and
create
healthy
neighborhoods
for
all
There
are
a
number
of
strategies
aimed
at
improving
the
quality
of
life
of
unhoused
Palo
Altans.

In
general,
these
kinds
of
services
draw
from
a
range
of
funding
sources.

Meals
are
largely
provided
by
private
groups.

Medical
care
is
largely
paid
for
by
federal,
state,
and
County
funds.

The
majority
of
shelter
is
funded
by
the
County
and
State,
but
there
are
two
small
shelter
programs
in
Palo
Alto
that
receive
some
funds
from
Palo
Alto,
as
well
as
private
funding.

Below
is
a
list
of
services
available
to
unhoused
Palo
Altans:
-
Medical
Services
-
Peninsula
Healthcare
Connection
and
Ravenswood
Family
Health
Center
offer
medical
services,
including
mental
health
services.

The
North
County
TRUST
Team
and
the
Psychiatric
Emergency
Response
Team
(PERT)
are
meant
to
provide
mental
health
services
on
demand
in
response
to
calls
for
assistance.

PERT
is
still
awaiting
a
clinician.

Peninsula
Healthcare
Connection,
12 Ravenswood
Family
Health
Center,
and
the
North
County
TRUST
fund
rely
on
federal,
state,
and
County
funds.

The
City
contributed
some
grant
funding
to
the
North
County
TRUST
team.

The
PERT
team
is
run
by
the
City.
-
Food
Services
-
There
are
four
food
distribution
sites
in
Palo
Alto,
including
hot
meals
and
groceries.

The
City
and
County
both
provide
support
to
La
Comida,
and
the
food
programs
also
benefit
from
private
donations.

CalFresh
and
WIC
is
also
available
via
the
County,
funded
in
part
by
County,
state,
and
federal
funds.

Palo
Altans
can
sign
up
via
the
County
at
their
North
County
Social
Services
office
in
Mountain
View,
or
via
outreach
services
at
the
Opportunity
Center
(sometimes).
-
Shelter
Services
-
Palo
Altans
can
seek
shelter
in
the
following
locations:
-
Hotel
de
Zink:
a
shelter
with
space
for
approximately
15 adults
at
rotating
locations
(generally
faith-based
institutions)
around
the
City.

LifeMoves
coordinates
the
shelter
program,
and
the
City
contributes
funds.
-
Home
and
Heart
Collaborative:
a
winter
shelter
program
with
space
for
approximately
15 women
at
rotating
locations
(generally
faith-based
institutions)
around
the
City.

The
City
contributes
funds.
-
Overnight
Warming
Location
(O.W.L.):

Last
year,
the
City
opened
the
downtown
library
for
overnight
shelter
during
cold
weather
events.

This
site
can
serve
approximately
10 people
during
a
cold
weather
event
and
was
open
for
15 nights
during
the
cold
weather
season.
-
Shelters
in
Mountain
View
and
Sunnyvale,
including
the
Mountain
View
Homekey
Shelter
(serving
adults
and
families
in
a
non-congregate
setting),
the
Sunnyvale
Shelter
(serving
families
and
adults
in
a
congregate
setting),
and
the
Mountain
View
cold
weather
shelter
hosted
at
a
Mountain
View
church
(serving
women
in
a
congregate
setting
in
the
winter
months).

These
sites
are
largely
funded
by
Santa
Clara
County,
using
a
variety
of
funds,
with
contributions
from
Mountain
View
and
the
state
for
the
start
up
of
the
Homekey
Shelter.
-
Shelters
elsewhere,
including
East
Palo
Alto
and
San
Jose.
-
Safe
Parking
-
Palo
Altans
living
in
vehicles
can
live
in
the
City’s
safe
parking
program,
run
in
partnership
with
Santa
Clara
County
and
MoveMV
at
a
variety
of
13 sites
offered
by
Palo
Alto
congregations.

There
is
also
a
recently
expanded
site
for
RVs
on
city-owned
property
at
Geng
Road
that
offers
a
variety
of
amenities
on-site,
including
showers,
bathrooms,
and
laundry
facilities..

The
congregational
sites
have
rules
limiting
the
hours
of
use
to
overnight
only,
and
to
cars
only.
-
Outreach
-
Outreach
workers
help
inform
unhoused
Palo
Altans
about
services,
and
try
to
connect
them
to
both
short-term
and
long-term
assistance,
tailored
to
their
needs.

Several
local
non-profits
perform
outreach,
including
Peninsula
Healthcare
Connection,
Downtown
Streets
Team,
Karat
School
Project,
and
LifeMoves
provide
local
outreach.

The
City,
together
with
some
funding
from
Stanford
University,
pays
for
a
two-person
outreach
team
from
LifeMoves.

The
County
also
funds
outreach
through
the
Bill
Wilson
Center.

Outreach
workers
often
struggle
to
engage
households
living
in
vehicles,
and
households
who
work
during
the
day
(these
categories
often
overlap).
-
Other
Services
-
Employment
-
Downtown
Streets
Team
has
a
model
that
aims
to
provide
employment
opportunities
for
unhoused
Palo
Altans.
-
Shower
and
Laundry
-
Dignity
on
Wheels,
run
by
WeHope
and
funded
in
part
by
the
City
as
well
as
the
County,
provides
shower
and
laundry
services,
as
does
the
Opportunity
Center
run
by
LifeMoves.

Despite
this
range
of
services,
there
are
major
gaps,
and
sometimes
insurmountable
barriers,
that
prevent
unhoused
community
members
from
using
these
services.

One
service
provider
shared,
“t
o
ask
somebody
to
go
do
these
10 steps
[to
apply
for
a
program]
over
a
six
month
period,
you
might
as
well
ask
them
to
go
get
accepted
to
Harvard
and…graduate
with
a
degree
.”
10 The
following
gaps
relating
are
most
significant
relating
to
quality
of
life
for
unhoused
individuals:
-
Inaccessibility
and
inappropriateness
of
existing
shelters.

Besides
the
City’s
two
rotating
shelters,
which
move
between
congregations,
the
Heart
and
Home
Collaborative
and
Hotel
de
Zink,
and
the
City’s
Overnight
Warming
Location
10 Interviews
with
Service
Providers,
Kathryn
Fortenberry
for
“Understanding
the
Unhoused
Community
in
Palo
Alto:

A
2024
Perspective.”
14 during
cold
weather
events,
most
Palo
Altans
seeking
shelter
need
to
do
so
elsewhere.

Families
with
children
have
nowhere
to
go
for
shelter
in
Palo
Alto
until
the
City’s
Homekey
site
opens.

In
2022,
only
24 Palo
Altans
used
the
Sunnyvale
North
County
Shelter,
and
only
122
Palo
Altans
used
other
“North
County”
shelters.
11 This
represents
less
than
half
of
the
City’s
unhoused
population.

The
rest
of
Palo
Altans
sleep
on
the
street,
in
RVs
and
cars,
couch
surf,
or
go
further
for
shelter.

This
is
likely
due
to
barriers
to
shelter
use,
discussed
further
in
section
three
of
this
report.

In
short,
issues
relating
to
shelter
privacy,
shelter
rules,
and
shelter
safety
can
be
barriers,
as
is
pure
shelter
capacity.
-
Issues
with
transportation.

Despite
the
large
array
of
services
in
Palo
Alto,
some
services
-
such
as
those
related
to
confirming
one’s
identification
-
are
only
available
in
San
Jose,
which
is
over
an
hour
away
when
using
public
transportation.

Even
within
Palo
Alto,
transportation
issues
can
have
a
big
impact
on
those
seeking
services.

One
service
provider
shared
that
in
order
for
a
community
member
to
get
from
a
shelter
(at
a
rotating
location)
to
their
regular
breakfast
program,
they
would
have
to
walk
several
miles
every
morning,
as
bus
services
were
not
available
early
enough
to
get
them
to
the
breakfast
in
time.

It
would
be
more
practical
for
the
client
to
sleep
closer
to
the
breakfast
program,
even
if
that
meant
remaining
unsheltered.
12 While
the
forthcoming
Homekey
Shelter
will
offer
a
number
of
services
on
site,
its
location
far
from
main
throughways
and
the
City
center
may
be
challenging
for
unhoused
Palo
Altans
who
need
to
access
services
and
supports
located
elsewhere.
-
Access
to
communication.

Unstable
access
to
wi-fi,
computers,
and
phones
make
it
particularly
difficult
for
unhoused
community
members
to
seek
services
and
secure
housing.

It
is
difficult
to
find
out
if
you’ve
gotten
off
a
waitlist,
for
example,
if
it
is
hard
to
be
contacted.

When
applying
for
programs,
like
CalFresh
or
MediCal,
or,
as
discussed
further
in
the
next
section,
applying
for
housing,
you
often
need
to
submit
documents
and
fill
out
multiple
applications,
which
is
nearly
impossible
without
regular
computer
access.

While
both
the
library
and
the
Opportunity
Center
offer
computer
access,
and
there
are
programs
offering
cell
12 Same
as
above..
11 Santa
Clara
County
Analysis
of
Palo
Alto-Affiliated

VI-SPDAT
Responses,
2022.
15 phones,
none
of
these
ensure
stable
access
to
the
communication
systems
on
which
most
programs,
and
certainly
our
society,
run.
-
Issues
specific
to
unique
needs.

Service
providers
report
other
obstacles
facing
specific
populations
-
such
as
senior
households
who
cannot
work
and
increase
their
income,
or
undocumented
households
who
may
not
have
the
proper
paperwork
to
obtain
employment
or
needed
services.

Of
course,
the
ultimate
quality
of
life
outcome
for
unhoused
Palo
Altans
is
to
stabilize
in
permanent
housing.

The
current
options
for
permanent
housing
and
homelessness
prevention
are
discussed
further
below,
in
strategy
3,
but
an
anecdote
from
a
service
provider
helps
to
explain
how
the
lack
of
housing
options
impacts
quality
of
life
issues.

According
to
one
service
provider,
outreach
workers
helping
unhoused
community
members
often
encounter
a
lack
of
trust,
and
a
lack
of
desire
to
engage
in
services
in
shelter,
when
waiting
for
housing
becomes
demoralizing.
13 He
shared,
for
example,
that
trying
to
sign
up
seniors
for
housing
programs,
when
the
waitlist
is
likely
several
years
can
lead
to
a
lack
of
desire
to
continue
with
other
outreach
efforts.

Understandably,
the
many
barriers
faced
by
unhoused
community
members
when
seeking
services
can
make
it
very
difficult
for
them
to
stay
engaged
with
services,
especially
when
a
happy
end
result
seems
unlikely.
3)
Expand
homelessness
prevention
and
housing
programs
to
meet
the
need
Ultimately,
housing
is
the
only
permanent
stable
outcome
for
unhoused
Palo
Altans.

As
discussed
further
in
section
3,
below,
affordable
housing,
rather
than
market-rate
housing,
is
often
the
only
viable
option
for
unhoused
Palo
Altans.

The

VI-SPDAT
assesses
the
types
of
housing
needed
by
unhoused
community
members.

In
July
2023
through
June
2024,
115
unhoused
Palo
Altans
were
assessed
to
need
Rapid
Rehousing,
while
120
were
assessed
to
need
Permanent
Supportive
Housing.

Rapid
Rehousing
(RRH)
units
are
meant
to
give
unhoused
households
a
deeper
rental
subsidy
at
first,
eventually
tapering
towards
more
typical
affordable
rents
as
the
household
stabilizes.

As
described
above,
Permanent
Supportive
Housing
(PSH)
units
provide
deep
subsidies,
services,
and
case
management
for
households
who
have
a
13 Interviews
with
Service
Providers,
Kathryn
Fortenberry
for
“Understanding
the
Unhoused
Community
in
Palo
Alto:

A
2024
Perspective.”
16 disabling
condition
that
would
prevent
them
from
increasing
their
income
in
the
future.

Both
of
these
kinds
of
units
have
most
recently
been
funded
by
Santa
Clara
County’s
Measure
A
funds,
which
are
nearly
entirely
expended.

There
are
also
many
unhoused
households
who
might
be
able
to
take
advantage
of
affordable
housing
that
simply
provides
a
subsidy
based
on
income.

These
affordable
units
might
be
part
of
the
City’s
Below-Market-Rate
(BMR)
program,
which
means
they
were
provided
as
part
of
a
market-rate
development.

Or,
they
could
be
subsidized
in
a
development
built
by
an
affordable
housing
development,
which
typically
is
funded
in
part
by
state,
private,
County,
and
City
funding.

Palo
Alto
currently
has
2,336
affordable
units,
including:
-
242
Below-Market-Rate
Ownership
Units
-
345
Below-Market-Rate
Rental
Units,
ranging
from
30%
AMI
to
120%
AMI
-
1,553
subsidized
units
(not
including
the
PSH
units
listed
below),
ranging
from
30%
AMI
units
to
60%
AMI
units
for
families,
seniors,
individuals,
formerly
homeless,
and
people
with
disabilities
-
196
units
that
could
be
described
as
permanent
supportive
housing
(although
they
were
built
before
the
term
was
standardized)
Many
of
these
units
are
already
full,
and
there
are
long
waitlists,
or
even
closed
waitlists.

Looking
forward,
Palo
Alto
has
several
entitled
projects
with
affordable
housing
units
included.

Table

2.1 shows
the
number
of
currently
entitled
affordable
housing
units
at
various
income
levels,
not
including
PSH
and
RRH
units,
and
not
including
forthcoming
BMR
inclusionary
units:
17 Table

2.1:

Currently
Entitled
Affordable
Housing
Units
(not
inclusive
of
Rapid
Rehousing
and
Permanent
Supportive
Housing
Units)
14 Income
Level
ELI
VLI
LI
MI
Above
MI
Forthcoming
Units
46 90
44 36
38 Table

2.2 considers
whether
the
types
of
forthcoming
units
in
Palo
Alto
align
with
those
needed
for
unhoused
residents
currently
'in
the
queue'
for
housing.

It
compares
the
number
of
unhoused
individuals
in
Palo
Alto,
assessed
by
the

VI-SPDAT
as
needing
rapid
rehousing
or
permanent
supportive
housing,
with
the
number
of
newly
approved
affordable
units
in
Palo
Alto
that
will
include
these
services.

Most
notably,
there
are
no
new
permanent
supportive
housing
units
expected
in
Palo
Alto
in
the
next
few
years,
despite
there
being
120
unhoused
people
affiliated
with
Palo
Alto
who
have
been
assessed
to
need
this
kind
of
housing
and
will
have
to
seek
it
outside
of
Palo
Alto.

Table

2.2:

Palo
Alto
Unhoused
Assessed
to
Need
Rapid
Rehousing
or
Permanent
Supportive
Housing
vs.

Forthcoming
Units
15 Service
Needs
Rapid
Rehousing
Permanent
Supportive
Housing
Forthcoming
(entitled)
Units
32 0
Palo
Alto
Unhoused
Residents
Assessed
to
Need
Various
Services
115
120
There
are
a
number
of
funding
programs
aimed
at
increasing
the
supply
of
affordable
housing,
including
rapid
rehousing
and
permanent
supportive
housing,
including:
-
City
funds
15 Same
as
above.
14 The
forthcoming
units
are
drawn
from
the
expected
income
levels
of
units
being
built
at
the
following
entitled
projects:
525
E.

Charleston,
3001
El
Camino
Real,
231
Grant
Ave.

Forthcoming
below-market-rate
inclusionary
units,
and
non-entitled
projects
are
not
included.

The
needs
of
unhoused
residents
is
from
the
County’s
VI-SPDAT..
18 -
City
Affordable
Housing
Fund,
including
funds
from
the
City’s
business
tax,
and
development
fees
-
CDBG
Funds
-
Local
Housing
Trust
Fund
-
Permanent
Local
Housing
Allocation
Funds
-
County
Funds
-
Measure
A
(nearly
expended)
-
Stanford
Affordable
Housing
Fund
-
State
Funds
-
State
SuperNOFA
Funds
-
Homekey
-
Tax
Credits
All
of
these
funds
face
scarcity
compared
to
demand.

The
City
released
a
Notice
of
Funding
Availability
in
September
2024
to
solicit
proposals
for
affordable
housing
developments
that
could
receive
local
affordable
housing
funds.

Additional
funds
are
expected
to
be
needed
to
address
the
planned
pipeline
of
affordable
housing
projects
in
Palo
Alto.

County
Measure
A
funds
are
nearly
all
expended.

And,
increasingly,
many
state
funds
are
more
competitive
and
are
harder
to
obtain
at
the
levels
a
project
needs.

Many
projects
have
had
to
apply
for
funding
in
multiple
rounds,
or
seek
alternative
funding,
due
to
the
increased
competition
for
state
funding.

As
demonstrated,
there
simply
aren’t
enough
forthcoming
affordable
units
of
any
type
to
meet
the
needs
of
unhoused
Palo
Altans.

Exacerbating
the
issue
is
that
each
household
has
their
own
unique
needs
relating
to
affordable
housing.

For
example,
some
households
may
face
unique
challenges,
such
as
major
credit
issues,
that
could
stymie
their
affordable
housing
efforts.

Others
have
unique
households
sizes,
that
make
it
difficult
to
find
a
unit
-
for
example,
there
are
several
unhoused
Palo
Alto
households
with
multiple
children
who
will
need
larger
units.

While
much
of
the
focus
of
this
report
is
on
the
currently
unhoused,
one
of
the
easiest
ways
to
address
homelessness
is
to
prevent
people
from
losing
their
housing
in
the
first
place.

The
following
homelessness
prevention
programs
are
available
in
Palo
Alto:
19 -
Homelessness
Prevention
System.

This
program
is
funded
by
the
County,
and
funds
are
distributed
based
on
need.
111
Palo
Altans
used
this
program
last
year.

Some
cities
contribute
additional
funds
to
the
program.

LifeMoves
is
one
of
several
distributors
of
these
funds.
-
Housing
Problem
Solving.

This
County-funded
program
allows
service
providers
to
provide
counseling
to
try
to
address
housing
issues
creatively
and
quickly.

It
is
associated
with
flexible
funds
available
for
practical
problem
solving
that
prevents
homelessness
(for
example,
furniture
that
might
make
it
feasible
to
stay
with
family).

Several
service
providers
offer
this
service,
and
it
can
also
be
accessed
by
calling
the
shelter
hotline.
-
Rental
subsidies.

When
the
vouchers
are
available,
Palo
Altans
can
access
federally-funded
Section
8 vouchers
to
make
market-rate
units
affordable.

These
vouchers
are
often
associated
with
long
or
closed
waitlists.

All
of
these
homelessness
prevention
programs
are
limited
in
capacity,
compared
to
need.

There
are
not
enough
homelessness
prevention
funds
to
meet
the
need,
nor
affordable
units
to
serve
all
the
households
facing
crisis.

Affordable
housing
itself
can
also
be
a
homelessness
prevention
program,
in
that
households
can
move
from
unaffordable
market-rate
housing
to
subsidized
housing,
rather
than
falling
into
homelessness
when
a
financial
crisis
or
an
increase
in
rent
forces
them
out
of
their
housing.

In
Palo
Alto,
the
number
of
cost-burdened
renters
(those
spending
over
30%
of
their
income
on
housing)
at
various
income
levels
is
compared
to
entitled
and
proposed
affordable
and
market-rate
units
in
table

2.3. While
only
a
small
portion
of
all
cost-burdened
renters
will
become
homeless
in
any
given
year,
by
definition,
all
of
them
would
benefit
from
help
affording
their
housing,
either
via
an
affordable
housing
unit,
rent
subsidies,
income
assistance
or
some
other
program.
20 Table

2.3:

Currently
Entitled
and
Proposed
Housing
Units
(not
inclusive
of
Rapid
Rehousing
and
Permanent
Supportive
Housing
Units)
Compared
to
Cost
Burdened
Renters
Income
Level
ELI
VLI
LI
MI
Above
MI
Entitled
Units
46 96
49 60
331
Proposed
Units
(not
yet
entitled)
3 22
408
51 1,973
Cost-Burdened
Renters
1,625
795
820
460
4,220
21 3.

Literature
Review
and
Relevant
Programs
and
Services
from
Other
Municipalities
The
following
section
summarizes
key
findings
in
the
literature
and
highlights
promising
solutions
to
address
the
known
gaps
and
known
needs
in
housing
and
unhoused
services
in
Palo
Alto.

The
key
findings
touch
on
the
limits
of
congregate
shelter,
the
high
demand
for
and
low
availability
of
affordable
housing,
the
high
cost
of
building
new
affordable
units,
and
the
limits
of
enforcement.

Congregate
s
helter
is
not
accessible
and/or
appropriate
for
many
unhoused
community
members.

In
Palo
Alto,
a
majority
of
unhoused
residents
are
unsheltered,
16 living
in
an
RV,
car,
on
the
street,
or
on
a
couch.
17 This
is
reflective
of
a
larger
statewide
trend
that
unsheltered
homelessness
is
increasing
faster
than
sheltered
homelessness.
18 In
addition
to
inherent
safety
issues
related
to
remaining
unsheltered,
unsheltered
households
in
Palo
Alto
are
less
likely
to
access
services,
ranging
from
basic
support
services
like
healthcare
and
food,
to
support
applying
for
housing
or
overcoming
barriers
to
housing.

As
the
City’s
safe
parking
provider
explained,
unhoused
residents
often
have
to
spend
much
of
their
time
ensuring
that
they
have
a
safe
place
to
sleep.

Once
they
are
in
a
program
like
safe
parking,
they
have
the
space
and
stability
to
make
longer-term
plans
relating
to
their
housing
and
livelihoods.

And
despite
the
best
efforts
of
outreach
workers,
it
is
easier
for
households
to
work
with
case
managers
and
service
providers
when
they
can
do
so
at
the
same
place
where
they
are
staying.

There
are
a
range
of
reasons
that
an
unhoused
person
may
be
unsheltered.

The
Department
of
Housing
and
Urban
Development
(HUD)
discusses
the
following
18 “Five
Recent
Trends
in
Homelessness
in
California.”
Terner
Center
for
Housing
Innovation,
UC
Berkeley.
https://ternercenter.berkeley.edu/wp-content/uploads/2023/10/Five-Trends-in-CA-Homeless ness_Oct-2023-5.pdf
17 Santa
Clara
County

VI-SPDAT
responses
among
“Palo
Alto
affiliated”
households,
July
1,
2023
-
June
30,
2024..
16 In
counts
of
unhoused
households,
unsheltered
typically
means
living
outside
of
a
shelter
or
transitional
housing
program
-
including
living
in
an
RV
or
car,
living
on
the
street,
and
couch
surfing.
22 shortcomings
in
the
shelter
system
that
contribute
to
households
living
in
encampments.
19 While
these
shortcomings
examine
the
reason
households
choose
encampments
instead
of
shelter,
they
remain
true
in
Palo
Alto,
where
many
households
instead
choose
the
relative
privacy
of
living
in
a
car
or
RV,
couch
surfing,
or
living
on
one’s
own
on
the
street.

HUD
lists
the
reasons
households
remain
outside
of
shelters
as
follows:
-
Lack
of
available
shelter
space.

This
is
particularly
relevant
in
Palo
Alto,
where
most
sheltered
unhoused
Palo
Altans
need
to
seek
shelter
in
other
towns.

The
distance
to
available
shelters
is
a
barrier
to
seeking
shelter.

In
fact,
most
Palo
Altans
in
emergency
shelter
are
in
shelters
in
San
Jose,
which
can
be
over
one
hour
away
by
public
transit.
-
Concerns
about
shelter
safety
and
privacy.

Many
families
and
single
women
choose
to
remain
outside
of
traditional
shelter
systems
because
the
communal
settings
feel
unsafe
for
themselves
or
their
families.

Many
families
with
children,
especially,
prefer
living
in
vehicles,
where
they
can
have
a
semblance
of
privacy
and
control,
rather
than
a
communal
shelter
setting.

Many
single
women
prefer
women’s
only
shelters.
-
Shelter
rules
that
would
separate
individuals
from
members
of
a
family,
a
partner,
or
a
pet.
-
Rules
relating
to
entry
and
exit
times,
sobriety
or
other
difficult
to
follow
restrictions.

While
there
are
some
specialized
programs
for
those
facing
issues
of
sobriety,
most
shelters
will
not
allow
continued
disruptions
due
to
lack
of
sobriety.

A
local
service
provider
describes
the
issue
as
follows,
“I
f
we're
lucky
[after
calling
the
shelter
hotline]...clients
will
be
accepted
and
taken
into
shelter
right
there
and
then.

But
sometimes,
it's
difficult
because
the
waiting
list
is
so
long…Sometimes
there's
clients…so
used
to
living
out
in
the
outdoors
that
that's
where
their
comfort
zone
is
at
and
being
in.

Being
in
a
shelter
is
abnormal
to
them.
”
20 20
Interviews
with
Service
Providers,
Kathryn
Fortenberry
for
“Understanding
the
Unhoused
Community
in
Palo
Alto:

A
2024
Perspective”
19 The
referenced
report
defines
encampments
as
“groups
of
people
experiencing
unsheltered
homelessness
together.”
From:
“Understanding
Encampments
of
People
Experiencing
Homelessness
and
Community
Responses:

Emerging
Evidence
as
of
Late
2018,”
U.S.

Department
of
Housing
and
Urban
Development.
https://www.huduser.gov/portal/sites/default/files/pdf/Understanding-Encampments.pdf 23 Other
municipalities
have
offered
the
following
to
address
this
issue:
1)
Increasing
non-congregate
shelter
21 options.

Per
the
Terner
Center
at
UC
Berkeley,
“Research
suggests
that
non-congregate
shelters
can
provide
more
stability
and
more
effective
services
than
congregate
shelters
can
to
support
residents’
steps
to
move
back
into
housing,
such
as
working
with
case
managers,
applying
for
housing
assistance,
and
searching
for
an
available
housing
unit.”
22 The
City’s
safe
parking
program
is
a
good
first
effort
at
providing
a
sheltering
program
that
is
more
attractive
to
unsheltered
households.

Similarly,
the
City’s
upcoming
Project
Homekey
will
also
offer
non-congregate
sheltering
options.

That
said,
the
City
may
find
that
there
is
more
demand
for
non-congregate
shelter
than
spaces
available.

If
that
is
the
case,
the
following
option
may
be
of
consideration.
2)
Using
Hotels
as
Temporary
or
Permanent
non-congregate
shelters.

The
City
also
has
a
number
of
underutilized
hotels
along
El
Camino
Real,
at
least
one
of
which
was
used
for
non-congregate
sheltering
during
the
COVID-19
pandemic.

These
hotels
may
be
a
particularly
cost-effective
option
for
offering
shelter
to
households
who
are
facing
immediate
homelessness,
and
are
unable
to
access
shelter
due
to
shelter
capacity
issues.

The
County
of
Santa
Clara,
the
City
of
Santa
Clara,
and
the
City
of
San
Jose
have
all
begun
work
on
sheltering
options
in
hotels.

Motel
vouchers
are
also
a
common
option
offered
by
agencies
serving
those
whose
homelessness
is
caused
by
domestic
violence.

This
would
not
necessarily
need
to
be
something
the
City
took
on
by
itself,
but
rather,
through
partnerships
with
funders,
other
municipalities,
and
non-profits,
in
order
to
address
a
desire
to
provide
non-congregate
shelter
to
those
actively
seeking
it.
22 “Five
Recent
Trends
in
Homelessness
in
California.”
Terner
Center
for
Housing
Innovation,
UC
Berkeley.
https://ternercenter.berkeley.edu/wp-content/uploads/2023/10/Five-Trends-in-CA-Homeless ness_Oct-2023-5.pdf
21 HUD
defines
non-congregate
shelters
as
one
or
more
buildings
that
provide
private
units
or
rooms
for
temporary
shelter,
serve
individuals
and
families
that
meet
one
or
more
of
the
qualifying
populations
[generally,
homeless,
at
risk
of
becoming
homeless,
or
fleeing
abuse],
and
do
not
require
occupants
to
sign
a
lease
or
occupancy
agreement.
24 Income-restricted
affordable
housing
is
the
best
fit
for
many
seeking
housing,
but
there
is
not
readily
available
affordable
housing
for
many
who
are
seeking
it.

There
is
often
a
well-intentioned
misunderstanding
that
if
unhoused
households
would
only
accept
help,
they
would
move
to
housing.

This
misunderstanding
is
often
particularly
discussed
when
assuming
throughput
for
shelters
and
transitional
housing
programs.

It
is
not
appropriate
to
assume
that
sheltered
households
willI
exit
the
shelter
into
permanent
housing.

In
fact,
in
Santa
Clara
County
from
May
2022
through
April
2023,
only
38%
of
households
in
shelters
exited
the
shelter
into
permanent
housing,
and
only
28%
of
households
in
transitional
housing
exited
the
transitional
housing
into
permanent
housing.
23 This
lack
of
exit
to
permanent
housing
reflects,
among
other
things,
the
critical
lack
of
affordable
permanent
housing
options
compared
to
the
need,
as
illustrated
above
in
Section

2. It
is
also
worth
noting
that
it
is
extraordinarily
difficult
for
a
household
to
look
to
employment
as
their
only
solution
for
their
housing
crisis.

That
is,
while
employment
may
help
a
household
to
pay
the
rent
in
a
subsidized
affordable
unit,
in
Palo
Alto,
where
market-rate
units
are
particularly
expensive,
it
is
difficult
to
get
enough
employment
to
move
from
being
cost-burdened
or
homeless
into
being
able
to
afford
a
market-rate
unit.

Joint
Venture
Silicon
Valley’s
2024
Silicon
Valley
Index
reports
that
the
median
service
worker
earns
$46,500,
while
a
household
of
four
needs
$30/hour,
or
$62,400
annually,
to
meet
the
index’s
“self-sufficiency”
wage
(defined
as
“a
no-frills,
bare-bones
minimum
for
affording
basic
human
needs
such
as
housing,
childcare,
food,
transportation,
and
healthcare”
in
Silicon
Valley).
24 That
is,
for
the
median
service
worker
to
be
able
to
afford
housing
for
their
family
of
four
in
Palo
Alto
without
being
cost-burdened,
they
need
affordable
housing
with
a
subsidized
below-market
rent.

When
affordable
housing
is
lacking
compared
to
demand
(as
discussed
in
section
2),
there
are
few
solutions
for
these
households,
other
than
leaving
the
area.
24 “2024
Silicon
Valley
Index.”
Joint
Venture
Silicon
Valley.
https://jointventure.org/images/stories/pdf/index2024.pdf 23 ”Supportive
Housing
System
in
Santa
Clara
County.”
Santa
Clara
County
Office
of
Supportive
Housing.

Report
to
County
Housing,
Land
Use,
Environment
and
Transportation
Committee,
June
20,
2023.
https://osh.sccgov.org/sites/g/files/exjcpb671/files/documents/SH%20Dashboard%20and%20 TemporaryHousing_PSH_Report_June_2023_Final.pdf
25 One
potential
opportunity
involves
increasing
homelessness
prevention
programs.

There
are
several
cities
that
contribute
to
the
County’s
Homelessness
Prevention
program,
with
the
aim
of
preventing
households
from
falling
into
homelessness
in
the
first
place.

If
the
City
were
to
consider
this
option,
it
would
need
to
work
with
the
County
to
determine
an
appropriate
funding
amount
that
would
augment
the
County’s
program,
in
hopes
of
better
meeting
the
need.

Building
affordable
units
is
expensive,
but
cities
can
use
planning
programs
to
incentivize
more
affordable
units
(alongside
or
instead
of
funding
programs).

For
the
past
several
years,
affordable
housing
in
Santa
Clara
County
has
benefitted
from
a
mix
of
state
funding,
the
County’s
Measure
A
program,
and
local
funds.

State
funding
has
become
considerably
more
competitive,
and
the
County’s
Measure
A
funds
are
close
to
depleted.

While
a
regional
funding
measure
25 was
recently
on
the
ballot,
it
has
since
been
pulled.

The
City
of
Palo
Alto
already
appropriates
a
portion
of
its
business
tax
towards
affordable
housing
and
unhoused
services.

The
City
also
contributes
specific
development
impact
fees
and
in-lieu
fees
towards
affordable
housing.

Per
the
City’s
Housing
Element,
the
City
expects
$20
million
to
be
set
aside
for
these
uses
over
the
next
eight
years,
which
the
City
estimates
could
provide
gap
funding
for
55 affordable
housing
units.

As
noted
in
section
2,
the
City
is
already
planning
to
undergo
nexus
studies
relating
to
impact
fees.

The
City
also
has
existing
planning
programs,
as
well
as
planning
programs
currently
under
review
(as
noted
in
section
2),
meant
to
incentivize
affordable
housing.

For
example,
the
Affordable
Housing
Incentive
Program
(AHIP)
specifically
provides
for
major
flexibility
for
affordable
housing
developers
to
increase
density,
and
waive
certain
development
regulations.

The
Housing
Impact
Program,
provides
greater
flexibility
for
residential
development
in
commercial
zones
and
allows
for
increased
density,
both
for
market-rate
and
affordable
housing
developers.
25 The
Bay
Area
Housing
Finance
Authority
had
originally
authorized
a
large
funding
measure,
meant
to
provide
affordable
housing
funds
across
the
Bay
Area.

This
measure
has
since
been
removed
from
the
ballot.
26 In
order
to
continue
to
build
affordable
housing
in
Palo
Alto,
the
City
can
build
on
its
work
by
:
-
increasing
available
funding,
-
making
the
development
of
affordable
housing
more
affordable,
and/or,
-
requiring
or
incentivizing
the
creation
of
affordable
housing.

The
following
are
options
for
each
of
these
possibilities:
1)
Increasing
available
funding.

Several
local
municipalities
have
sought
alternative
sources
of
funding
for
affordable
housing
via
ballot
measure.

To
augment
currently
available
funding,
the
City
may
consider
engaging
analysts
to
evaluate
the
potential
of
additional
funding
sources,
such
as
a
transfer
tax
(as
in
the
City
of
San
Jose)
or
a
vacancy
tax
(as
in
the
City
of
Berkeley)
to
provide
the
City
with
funding
exclusively
for
affordable
housing.

In
addition
to
simply
making
affordable
housing
development
more
feasible,
the
City’s
ability
to
offer
affordable
housing
funds
makes
it
possible
for
the
City
to
require
developments
to
meet
the
City’s
housing
needs
—
for
example,
more
ELI
units.
2)
Making
the
Development
of
Affordable
Housing
More
Affordable.

Many
local
cities,
including
Palo
Alto,
have
used
publicly-owned
land
and
institutionally-owned
land
for
affordable
housing,
which
in
turn
reduces
the
affordable
housing
development’s
funding
needs
by
the
price
of
the
land,
which
is
significant.

Recently,
the
City
of
Palo
Alto
requested
refined
proposals
for
a
public-private
partnership
to
develop
affordable
housing
on
a
downtown
city-owned
surface
lot.

The
County
of
Santa
Clara’s
two
affordable
housing
developments
in
Palo
Alto
are
on
County-owned
land.

Palo
Alto
also
has
partnered
with
local
institutions
in
the
past
—
such
as
Stanford
University
—
to
use
land
contributions
to
meet
City
requirements
and
needs.

There
are
possibilities
for
building
on
this
example
to
create
more
opportunities
for
land
donations
for
affordable
housing
—
including
City-owned
parking
lots,
privately-owned
parking
lots
(with
incentives
offered
for
development
on
other
parts
of
the
land),
and
institutional
sites
(such
as
places
of
worship
or
schools)
facing
redevelopment.
27 3)
Requiring
or
Incentivizing
the
Creation
of
Affordable
Housing.

Inclusionary
Rental
Housing.

Requiring
inclusionary
affordable
units
in
rental
housing
may,
depending
on
how
the
inclusionary
requirement
affects
the
costs
of
development,
significantly
increase
the
supply
of
affordable
units
in
Palo
Alto.

Many
cities
in
the
Bay
Area,
including
Menlo
Park,
Mountain
View,
Morgan
Hill,
Los
Gatos,
Campbell,
San
Jose,
San
Francisco,
and
others
have
inclusionary
housing
requirements
for
rental
projects.

Many
cities
fine-tune
their
inclusionary
requirements
to
1)
prevent
the
inclusionary
requirement
from
meaningfully
decreasing
development,
and
2)
incentivize
the
creation
of
units
of
the
specific
size
and
income
levels
that
meet
their
needs
(for
example,
requiring
less
ELI
units
or
more
MI
units
to
meet
the
same
requirement).