City of Palo Alto
Draft FY 2026–2027 Annual
Action Plan
Community Development Block Grant (CDBG) Program
Prepared by:
City of Palo Alto
Planning & Development Services Department
Draft for Public Review
Annual Action Plan
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E
xecutive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2026-27 draft Annual Action Plan (AAP) contains the City’s plan to carry out housing and community development activities funded by Federal formula grant funds received from the U.S. Department of Housing and Urban Development (HUD), Community Development Block Grant (CDBG) program. This AAP covers the second year of the City’s five-year 2025-2029 Consolidated Plan, which was adopted by the Palo Alto City Council on June 9, 2025. The Planning and Development Services Department is the lead agency for the Consolidated Plan and subsequent 5 Annual Action Plans for the City’s CDBG program.
The City’s FY 2026-27 AAP covers the time-period from July 1, 2026, to June 30, 2027. The FY 2026-27 AAP contains the accomplishments the City expects to achieve in FY 2026-27. All the projects, programs, and activities in FY 2026-27 AAP reflect the 2025-2029 Consolidated Plan goals. CDBG-funded programs and activities principally benefit City residents that have extremely low, low, and moderate- incomes and/or populations that have special needs, such as the elderly, disabled, and homeless.
Entitlement community grantees may use CDBG funds for a range of eligible activities, including public services, public facility and infrastructure improvements, housing rehabilitation, downpayment assistance, tenant -based rental assistance, and job creati on or retention efforts. These activities are primarily intended to benefit HUD-defined low- and moderate-income (LMI) households. LMI households are those with incomes at or below 80% of the Area Median Income (AMI), adjusted for household size.
Census block groups are generally considered eligible when at least 51% of households are LMI.
Primary Needs
The City of Palo Alto is a small Bay Area community known as the birthplace of Silicon Valley’s high -tech industry. It is home to major companies and research institutions such as VMware and Hewlett-Packard, and it also hosts Stanford University. According to the 2024 American Community Survey (ACS) 5 -year estimates, the City has a population of approximately 67,237 and covers roughly 25 square miles, making it less densely populated than many peer entitlement jurisdictions.
Palo Alto is lo cated within a region c haracterized by significant income diversity, including some of the highest-earning households in the nation. The regional economy relies on a broad workforce that spans a Annual Action Plan
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wide range of income levels, including many lower- wage earners who support essential services and industries. Lower-income residents face substantial challenges related to housing affordability, driven by a highly competitive market and strong demand from higher -income households. Of the City’s 25,486 households, 43% of renters and 24% of homeowners experience housing cost burden—defined as paying more than 30% of gross income toward housing—with some paying more than 50%.
T
hroughout the consultation process for this plan, stakeholders consistently emphasized the negative impacts of high housing costs on the ability to recruit and retain workers in critical roles, including public safety, education, and essential service positions across the region.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
Priority needs identified in this Annual Action Plan (AAP) include:
• Ho
using: Increasing the supply of affordable housing and improving the condition of existing units. • Homelessness: Stabilizing people at -risk of and experiencing homelessness through housing solutions, and facilitation of supportive services including mental health and addiction recovery services.
• Community development: Enhance neighborhood safety and quality through cleanups, improved street lighting and park improvements, bolster/create public space for senior activities, and food pantries.
• Economic Development: Provide more opportunities for resident workforce development and/or build outreach campaign for existing programs, create community partnerships to address childcare access as a component of workforce participation. • Fair Housing: Improve navigation and case management services for residents needing housing, legal services (related to housing), and basic services documentation assistance.
P
alo Alto has therefore identified the following goals for the FY2026 -27 AAP through extensive data analysis and community outreach:
1. I
ncrease the supply and improve the condition of affordable housing for households with incomes ranging from 0-80% AMI.
2. Respond to homelessness and risk of homelessness through housing stabilization, supportive services, mental health services, and economic resiliency programs.
3. Strengthen neighborhoods through investing in infrastructure and public facility improvements that prioritize safety, accessibility, and community building.
4. Support projects that increase opportunities for workforce development.
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5. Provide supportive services to low-income households through bolstering case management and navigation of services including legal assistance and tenant/landlord resolution.
3. Evaluation of past performance
The City is responsible for ensuring full compliance with all rules and regulations governing the CDBG entitlement grant program. The City’s Annual Action Plans and CAPERs have documented the goals, projects, and programs completed over the past five years. A review of past CAPERs demonstrates a robust performance record in the use of CDBG funds. Palo Alto has been strategic in leveraging federal dollars and cultivating community partnerships to maximize program impact. For example, an analysis of the 2020–2024 CAPERs show:
• LMI e
lderly assisted: 711
• R
esidents who received counseling services: 672
• Homeless individuals who received shelter or assistance: 863 • Individuals that received housing complaint services: 82 • Persons with disabilities that received assistance: 6,771 • LMI homeowners that received home improvements: 19
• Workforce development program assistance: 51
4. Summary of Citizen Participation Process and consultation process [Palo Alto held a Human Relations Commission public meeting on 4/9/26 to review proposed CDBG awardees in FY2026-27. The 30-day comment period notice was posted in the Daily Post on 3/27/26 to inform residents of the AAP public comment period that will run from 5/1 to 5/31. City Council will hold a public hearing to adopt the FY2026-27 AAP on 6/1/26.]
5. Summary of public comments
[Any comments received during 30-day comment period will be summarized here]
6. Summary of comments or views not accepted and the reasons for not accepting them [Not applicable. All comments were accepted. The City attempted to incorporate feedback received from outreach efforts throughout the process.]
7. Summary
This 2026–2027 AAP reflects resident feedback, demographic analysis, community stakeholder input, and an assessment of City resources, goals, and relevant plans and policies.
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department / Agency
Lead Agency Palo Alto
CDBG Administrator Palo Alto Department of Planning &
Development Services
Table 1 – Responsible Agencies
Narrative
The City of Palo Alto serves as the Lead and Responsible Agency for the U.S. Department of Housing and Urban Development’s (HUD) entitlement programs within the City.
The Department of Planning and Development Services administers the City’s Community Development Block Grant (CDBG) program. In addition, the City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnerships Program (HOME) funds through Santa Clara County.
Consolidated Plan Public Contact Information
Leif Christiansen, Senior Housing Specialist
City of Palo Alto Department of Planning and Development Services 250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
Phone: (650) 329-2195
Email: [email protected]
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. 1. Introduction
Public participation plays a vital role in the development of the Consolidated Plan and Annual Action Plans.
Palo Alto coordinated closely with Santa Clara County and other entitlement jurisdictions in stakeholder consultation and resident engagement to leverage opportunities and minimize duplication. Community outreach for this planning period included the following:
• A Consolidated Plan website—www.letstalkhousingscc.org—with information about the Planning process including a short video and presentation; a link to the resident survey and activities to prioritize housing and community development needs; and community resources. The website contains a translation feature for easy conversion into multiple languages. • A community survey, available between October and December 2024, and promoted through supportive service and public agencies that work with low - and moderate-income residents, city social media, and the Consolidated Plan website. A summary of survey findings is below. • Two virtual regional workshops open for all residents living in and stakeholders serving residents in the county. The workshops included a brief overview about the Planning process, simple activities to express priority needs, and in -depth discussions about needs in breakout rooms.
Interpretation was available in Spanish, Vietnamese, and Mandarin. • Three focus groups with stakeholders in housing, supportive services, and community development serving residents throughout the county. After a brief presentation about the Consolidated Plan process —including information on how to circulate the survey and letstalkhousingscc.org website to client -stakeholders participated in in -depth discussion about priority needs and solutions to needs. Attendees represented affordable housing developers, nonprofit housing rehabilitation providers, unhoused service providers, community organizations and advocates for special needs populations, people with lived experience, legal advocates, childcare service providers, and public housing staff.
• One-on-one interviews with the Continuum of Care and coordination with the City of San Jose, who receives HOPWA and ESG funding and distributes that funding to the County’s public service departments.
• A complete survey analysis and overview of engagement is provided in the appendix of this plan.
Engagement Promotion.
City Staff promoted the Consolidated Plan engagement opportunities through a multi -channel outreach strategy. This included targeted email announcements, updates posted on the City’s website and official social media platforms, and in-person outreach at community events such as local festivals and farmers’ markets.
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Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).
During the development of its Consolidated Plan and Annual Action Plans —and as part of its ongoing practices—the City coordinated with a wide range of housing, public health, mental health, and social service agencies to discuss community needs. These disc ussions provided opportunities for agencies to network, share information about their programs, and identify areas of collaboration. Their collective feedback was especially valuable in shaping the priorities of this Plan, particularly regarding special needs populations and general and mental health services within the City and Santa Clara County.
The City also participates in the County’s quarterly CDBG Coordinators Group meetings, where entitlement jurisdictions across the region convene to discuss proposed uses of federal funds for the upcoming program year.
In addition, the City takes part in the County’s Regional Housing Working Group, a forum for both entitlement and non-entitlement jurisdictions to coordinate responses to regional housing challenges.
The City is represented on the Continuum of Care (CoC) by its Human Services Manager. The CoC is a broad coalition of stakeholders committed to preventing and ending homelessness in Santa Clara County.
Its key responsibilities include ensuring community -wide implementation of strategies to address homelessness and monitoring both programmatic and system-level effectiveness.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless people (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and people at risk of homelessness.
The Santa Clara County Office of Supportive Housing serves as the administrator of the regional Continuum of Care (CoC). The City maintains ongoing coordination with the County CoC to support efforts to prevent and end homelessness, and City staff participate in monthly CoC meetings. The Santa Clara County CoC includes a broad range of stakeholders, including governmental agencies, homeless service and shelter providers, individuals with lived experience of homelessness, housing advocates, affordable housing developers, and representatives from the private and philanthropic sectors.
The City’s Human Services Manager represents Palo Alto on the CoC Board. The CoC meets monthly to plan programs, identify gaps in the homeless services system, establish funding priorities, and advance a coordinated, systems -level approach to addressing homelessness. City staff also meet and consult regularly with County CoC staff and peers from other jurisdictions through the quarterly countywide CDBG Coordinators Group meetings, with additional communication occurring as needed by email or phone.
The CoC is governed by the CoC Board, which uses a system-change framework to guide regional strategies to prevent and end homelessness. The Board is composed of the same members who serve on the Destination: Home Leadership Board. Destination: Home, a public -private partnership focused on collective-impact strategies to end chronic homelessness, serves as the governing body for the CoC and is responsible for implementing its bylaws and operational protocols.
Regional CoC efforts include the development of the Community Plan to End Homelessness, which outlines strategies to address the needs of individuals and families experiencing homelessness—including chronically homeless households, families with children, veterans, and unaccompanied youths as well as Annual Action Plan
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those at risk of homelessness. The CoC is currently updating its five-year strategic plan, and the City will participate in this regional planning process.
During the development of the Consolidated Plan, the City consulted with the CoC and the County Office of Supportive Housing to help identify community needs. The City also invited service providers and organizations serving people experiencing or at risk of homelessness to participate in Consolidated Plan and Annual Action Plan engagement meetings. These organizations included Abode Services, which administers tenant -based rental assistance; Destination: Home, which leads regional homelessness prevention and policy efforts; and LifeMoves, a shelter and homeless services provider operating in San José and Palo Alto. Destination: Home also provided input through a phone interview to help identify needs among homeless and at-risk populations.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The Santa Clara County Office of Supportive Housing serves as the administrator of the regional Homeless Management Information System (HMIS). The County and its consultant, Bitfocus, jointly operate and oversee the HMIS, with Bitfocus providing both the software platform and system administration. HMIS in Santa Clara County is funded by HUD, the County of Santa Clara, and the City of San José. The system is used by many service providers throughout the region, including those serving Palo Alto, to record client information and report program outcomes.
2. Agencies, groups, organizations and others who participated in the process and consultations
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1 Agency/Group/Organization Catholic Charities of Santa Clara County Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-homeless
Services-Health
Services-Employment
Services-Food
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Catholic Charities of Santa Clara County participated in the November 14, 2025 NOFA Kickoff meeting.
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2 Agency/Group/Organization LifeMoves
Agency/Group/Organization Type Housing
Services - Housing
Services-Children
Services-Health
Services-Employment
What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Families with children
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from LifeMoves participated in the November 14, 2025 NOFA Kickoff meeting
3 Agency/Group/Organization Next Door Solutions to Domestic Violence Agency/Group/Organization Type Services - Housing
Services-Victims of Domestic Violence
Services-Education
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Next Door Solutions to Domestic Violence participated in the November 14, 2025 NOFA Kickoff meeting 4 Agency/Group/Organization Project Sentinel
Agency/Group/Organization Type Services - Housing
Service-Fair Housing
Legal Services
What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Project Sentinel participated in the November 14, 2025 NOFA Kickoff meeting
5 Agency/Group/Organization Silicon Valley Independent Living Center Agency/Group/Organization Type Services - Housing
Services-Elderly Persons
Services-Persons with Disabilities
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What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
Market Analysis
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A Silicon Valley Independent Living Center representative attended the November 14, 2025 NOFA Kickoff meeting
6 Agency/Group/Organization Upwards WeeCare Inc.
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by Consultation? Housing Need Assessment How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Upwards attended the December 11th, 2024 Stakeholder Workshop.
7 Agency/Group/Organization Rebuilding Together Peninsula Agency/Group/Organization Type Home Rehabilitation
What section of the Plan was addressed by Consultation? Housing Need Assessment How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or areas for improved coordination?
A representative from Rebuilding Together participated in the November 14, 2025 NOFA Kickoff meeting
Table 2 – Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting Not applicable. No agency types were intentionally left out of the consultation process. Over 40 agency types were contacted during the consultation process. Details of these efforts are within the Consolidated Plan.
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Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Regional Continuum of
Care Council,
Destination: Home
Identifies housing inventory counts to facilitate the provision of housing services to those experiencing homelessness.
Community Plan to
End Homelessness
Destination: Home The Community Plan to End Homelessness in the County is a five-year plan to guide governmental actors, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This effort aligns with the Strategic Plan's goal to support activities to end homelessness.
SCCHA Moving to
Work Annual Plan
Santa Clara County
Housing Authority
Addresses housing authority updates and strategies pertaining to public housing and vouchers.
Table 3 - Other local / regional / federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) The Consolidated Plan was developed in close coordination with jurisdictional partners throughout Santa Clara County. The Santa Clara County Office of Supportive Housing (OSH) initiated this collaborative effort in spring 2024 by convening all entitlement jurisdictions. Together, the jurisdictions issued a joint RFP to select a consultant team to prepare the plans. Participating in entitlement jurisdictions included Cupertino, Gilroy, Milpitas, Mountain View, Palo Alto, the City of Santa Clara, Sunnyvale, and the Urban County.
Collaboration on stakeholder engagement and resident participation began with a joint meeting to review the proposed engageme nt strategy.
Each jurisdiction contributed lists of priority stakeholders and organizations to streamline outreach and avoid duplic ation. Regional engagement activities included two virtual evening open houses for residents and stakeholders, three stakeholder consultation workshops held on different days and times in December, and a joint community survey that was widely promoted across jurisdictions.
The jurisdictions also collaborated on a regional housing market assessment, which included jurisdiction -level data to support consistent comparisons of housing needs and ensure uniform market information across all plans.
The Association of Bay Area Governments (ABAG) was invited to participate in a meeting focused on regional housing and community development needs. ABAG provided relevant reports and data for incorporation into the Consolidated Plans.
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In addition, the County hosts regular CDBG Coordinators Group and Regional Housing Working Group meetings, which jurisdictions attend. These meetings provide a forum to discuss projects serving homeless and special -needs populations, pending legislation, and local initiatives affecting affordable housing and services for lower- income households. Jurisdiction staff also support the countywide biennial Homeless Census, which identifies homeless populations across the region and informs strategies and service priorities to address their needs.
Narrative
N/A
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting Engagement that was done in coordination with the County and was targeted to residents included:
• A C
onsolidated Plan website—www.letstalkhousingscc.org—with information about the Planning process including a short video and presentation; a link to the resident survey and activities to prioritize housing and community development needs; and community re
sources. The website contains a translation feature for easy conversion into multiple languages. • A community survey, available between October and December 2024, and promoted through supportive service and public agencies that work with low- and moderate-income residents, city social media, and the Consolidated Plan website. • Two virtual regional workshops open to all residents living in Santa Clara County and stakeholders serving residents in the county. The w
orkshops included a brief overview about the Planning process, simple activities to express priority needs, and in-depth discussions about needs in breakout rooms. Interpretation was available in Spanish, Vietnamese, and Mandarin. • Public hearings: Two public hearings were held to solicit community feedback and review funding recommendations and plan content.
One hearing was conducted with the City’s Human Relations Commission, and the second with the Palo Alto City Council. • Public comment on the 2025-2029 Consolidated Plan was open from May 5, 2025 through June 4, 2025. A link to the Consolidated Plan draft document was provided on the Letstalkhousingscc.org website and on the City of Palo Alto website.
A fu
ll survey analysis and summary of resident engagement activities is included in the appendix of this plan. The survey was distributed by all participating entitlement jurisdictions and made available on the Let’s Talk Housing website, individual city websites, and in printed form— offered in both English and Spanish—at community events.
Fr
om the North County area, 876 residents completed the survey, including 79 respondents who also identified as stakeholders working in various housing and community development roles.
S
urvey respondents were asked to identify their priority housing, community development, and economic development outcomes. The results below reflect responses from Palo Alto residents only, ranked by frequency of selection:
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• The top housing outcomes were more affordable rental housing and supportive housing for the unhoused (both at 35%), followed by more affordable homeownership (29%), increased shelter capacity (26%), and security deposit assistance for low to moderate income renter households (24%);
• The top community development outcome in Palo Alto was affordable childcare (41%), followed by supportive services for the unhoused (38%), access to reliable public transit (35%), supportive services for low-income residents, people living with disabilities (32%), and mental health services (26%);
• The top economic development outcome selected by respondents in Palo Alto was job training programs (62%), followed by revitalization of neighborhood businesses/commercial areas (47%), improved transportation to areas with job opportunities (41%), more opportunities for small or start-up businesses 41%), and center for seasonal and day laborers (35%).
Citizen Participation Outreach
1 Public
Meeting
Non-
targeted/broad
community
4/9 public meeting
of Human Relations
Commission to
review proposed
awardees
[no comments
received]
[no comments
received]
N/A
2 Newspaper
Ad
Non-
targeted/broad
community
30-day comment
period notice posts
5/
1, for 5/1 to 5/31
comment period
[no comments
received]
[no comments
received]
N/A
3 Internet
Outreach
Non-
targeted/broad
community
Draft 26-27 Annual
Action Plan available
for public review
and comments
[no comments
received]
[no comments
received]
N/A
4 Other:
Public
Hearing
Non-
targeted/broad
community
On 6/1/26, City
Council held a public
hearing to adopt 26-
27 Annual Action
Plan.
[no comments
received]
[no comments
received]
N/A
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY 2026-27, the City will allocate a total of $612,139 CDBG funds to eligible activities that address the needs identified in the Consolidated Plan. These CDBG funds reflect the sum of a $512,139 FY2026-27 Entitlement Grant and $100,000 Program Income (estimated) to be receipted in FY 2025-26. The City acknowledges that program income receipts may vary and endeavors to forecast future income while implementing necessary adjustments to the ongoing program budget. It should be noted that while the HUD CDBG allocations are critical, the allocations are not sufficient to overcome barriers and address all needs that low- income individuals and families face in attaining self- sufficiency. The City efforts include leveraging local county, regional, state, and federal funds estimating $5.3 million, that align with goals Annual Action Plan
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outlined in the Consolidated Plan.
Anticipated Resources
Program Source Uses of Funds Expected Amount Available Year 1 Expected Narrative Description of Annual Program Prior Year Total: Amount
Funds Allocation: Income: $ Resources: $ Available
$ $ Remainder
of ConPlan
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 512,139.00 100,000.00 0.00 612,
139.00 1, 500,000.00
CDBG funds will be used for the
creation and preservation of
affordable rental units,
improvements in low-income
neighborhoods, and public
services that benefit low-income
and special needs households.
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Other State and Federal Grant Programs
A
dditional federal programs that fund community development and affordable housing activities include:
• S
ection 8 Housing Choice Voucher Program;
• Section 202;
• Section 811; and
• Affordable Housing Program (AHP) through the Federal Home Loan Bank.
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These programs would not be provided to the City but rather to the Santa Clara County Housing Authority (SCCHA) and affordable housing developers.
C
ounty and Local Housing and Community Development Sources H
OME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. The City joined the Santa Clara County HOME Consortium in 2015 and does not receive federal HOME funds on an entitlement basis from HUD. The HOME Consortia consists of the cities of Cupertino, Gilroy, Palo Alto, and the Urban County. Developers of affordable housing projects are eligible to competitively apply through an annual request for proposal process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. If the City receives HOME dollars from this process, the City is required to provide a 25 percent match, which will be provided by the City’s Affordable Housing Fund. Certain non-profit organizations known as Community Housing Development Organizations (CHDOs) may also apply for funding from the State Department of Housing and Community Development for housing projects located within Palo Alto.
O
ther local resources that support housing and community development programs include:
• P
alo Alto Commercial Housing Fund, which is for the development of workforce units and paid by mitigation fees on commercial and industrial projects; and
• Palo Alto Residential Housing Fund, which is for the development of below market rate (BMR) housing units and paid by miscellaneous funding sources.
T
he City will continue to seek opportunities for projects that meet local bond requirements in order to bring additional resources to help the City’s affordable housing shortage.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City of Palo Alto's 2023–2031 Housing Element includes a strategic initiative to redevelop city-owned surface parking lots, particularly in the downtown area, to support affordable housing development. This approach aims to utilize underutilized public land to meet the city's housing goals. The City plans to issue requests for information (RFIs) to explore public-private partnerships for redevelopment, conduct parking studies Annual Action Plan
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to assess current usage, and evaluate opportunities for reconfiguring or replacing parking as needed. A schedule of actions will be developed to guide implementation, with clear milestones to ensure accountability and progress toward the City's RHNA goals.
Discussion
HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the City will continue to leverage other funding sources to provide services to populations in need.
C
urrently, the City is not eligible to receive direct funding under the HOME Investment Partnership Act, Emergency Solutions Grant, or Housing Opportunities for Persons with AIDS.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Affordable housing
supply and
condition
2025 2029 Affordable
Housing
Citywide Affordable
Housing
CDBG:
$73,585.00
Homeowner units
rehabilitated: 5 units
2 Respond to
Homelessness and
Risk of
Homelessness
2025 2029 Homeless Citywide Homelessness CDBG:
$35,000.00
Public service activities
other than Low/Moderate
Income Housing Benefit:
450 Persons Assisted
3 Strengthen
Neighborhoods
2025 2029 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Community
Services and
Public
Improvements
CDBG:
$396,983.15
Public service activities
other than Low/Moderate
Income Housing Benefit: 74
Persons Assisted
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
6,681 Persons Assisted
Other: 2 Other
4 Increase
Opportunities for
Workforce
Development
2025 2029 Non-Housing
Community
Development
Citywide Economic
Development
CDBG:
$72,000.00
Businesses Assisted: 9
businesses
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Supportive Services
for Low Income
Households
2025 2029 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Community
Services and
Public
Improvements
Tenant Assistance
Services
CDBG:
$34,570.85
Public service activities
other than Low/Moderate
Income Housing Benefit:
112 Persons Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Affordable housing supply and condition
Goal
Description
Assist in the creation and preservation of affordable housing for low-income and special needs households. 2 Goal Name Respond to Homelessness and Risk of Homelessness Goal
Description
Prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless individuals, and support for tenants of single-room occupancy units. 3 Goal Name Strengthen Neighborhoods
Goal
Description
Provide community services and public improvements to benefit low-income and special needs households. This includes assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long- term care facilities, and supporting individuals experiencing domestic violence. 4 Goal Name Increase Opportunities for Workforce Development Goal
Description
Support economic development activities that promote employment growth and help lower-income people secure and maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless individuals.
Annual Action Plan
2026
21 OMB Control No: 2506-0117 (exp. 09/30/2021)
5 Goal Name Supportive Services for Low Income Households Goal
Description
Provide supportive services to low-income households through bolstering case management and navigation of services including legal assistance and tenant/landlord resolution.
Annual Action Plan
2026
22 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals represent high priority needs for the City of Palo Alto and serve as the basis for the strategic actions the City undertakes to meet these needs.
# Project Name
1 2026 Project Sentinel - Fair Housing Services
2 2026 Upwards
3 2026 Rebuilding Together Peninsula - Safe at Home
4 2026 SVILC Case Management
5 2026 Next Door Solutions to Domestic Violence
6 2026 Catholic Charities Long Term Care Ombudsman Program 7 2026 LifeMoves Case Management
8 2026 Rotacare Bay Area Mobile Clinic
9 2026 YWCA
10 2026 Planning and Administration
11 2026 ADA Curbs Ramps
12 2026 Peninsula Healthcare Connection Rehabilitation
13 2026 La Comida Food Assistance
T
able 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City awards CDBG funding to projects and programs that primarily benefit low-income, homeless, and special needs households. Projects Annual Action Plan
2026
23 OMB Control No: 2506-0117 (exp. 09/30/2021)
are only considered for funding within the Consolidated Plan period if they address the goals cited in the plan.
Annual Action Plan
2026
24 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
Annual Action Plan
2026
25 OMB Control No: 2506-0117 (exp. 09/30/2021)
1 Project Name 2026 Project Sentinel - Fair Housing Services Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $16,250.00
Description Fair Housing Services. Eligible Activity (Matrix Code): O5J, Fair Housing Activities CDBG National Objective: LMC 24 CFR 570.208(a)(2)
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
12 unduplicated low and moderate income individuals will be provided with fair housing services of complaint counseling, investigation, and where appropriate enforcement referral.
Location Description Citywide
Planned Activities Project Sentinel will provide comprehensive fair housing services of investigation, counseling, and legal referrals for victims of housing discrimination; community education and outreach regarding fair housing law; and analyses for City staff and officials regarding fair housing practices and trends. We provide proactive fair housing education to housing providers to avoid costly violations and reactive enforcement investigations when violations are alleged. 2 Project Name 2026 Upwards
Target Area Citywide
Goals Supported Increase Opportunities for Workforce Development Needs Addressed Economic Development
Annual Action Plan
2026
26 OMB Control No: 2506-0117 (exp. 09/30/2021)
Funding CDBG: $72,000.00
Description WeeCare/Upwards assists Family Childcare Home microenterprise businesses and will provide business improvement services to such businesses in the City. Eligible Activity (Matrix Code): 18C Economic Development: Micro-Enterprise Assistance. CDBG National Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
9 daycare microenterprises will benefit from this project.
Location Description Citywide
Planned Activities WeeCare/Upwards is a for-profit organization. Project activities would support their specific BOOST program for low-income Family Child Care Home (FCCH) providers in Palo Alto. The BOOST program provides specialized technical assistance and business support for income qualifying FCCH’s. Training includes the utilization of the Child Management System (CCMS), aimed at helping providers create work plans, set goals, enhance capacity, and generate revenue to achieve service and operational objectives. The BOOST program addresses various aspects such as family matching, children's program enrollment, tuition collection, weekly curriculum, licensing regulations, program expansion, and staff recruitment. The intent is to assist small businesses in implementing best practices for organizational growth and sustainability, ultimately supporting low to moderate-income families served by FCCH. 3 Project Name 2026 Rebuilding Together Peninsula - Safe at Home Target Area Citywide
Goals Supported Affordable housing supply and condition Needs Addressed Affordable Housing
Funding CDBG: $73,585.00
Description Eligible Activity (Matrix Code): 14A, Objective LMH Annual Action Plan
2026
27 OMB Control No: 2506-0117 (exp. 09/30/2021)
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
5 LMI households will benefit from home improvements.
Location Description Citywide
Planned Activities RTP project activities preserve affordable housing by transforming homes at no cost to the service recipient. The majority of the low-income homeowners served will be elderly seniors and/or people with disabilities, who are physically and/or financially unable to maintain safe living conditions for themselves and their families. Funding covers the costs of home repair, such as construction materials and payment of subcontractors.
4 Project Name 2026 SVILC Case Management
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $15,750.00
Description Case Management. Eligible Activity (Matrix Code): 05B, Handicapped Service, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
24 unduplicated Palo Alto residents will benefit from one-on-one housing assistance.
Location Description Citywide
Annual Action Plan
2026
28 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities The Housing Assistance and Emergency Services for Persons with Disabilities program assists very low- income Palo Alto residents with disabilities or chronic health conditions and their families in their housing search for affordable, accessible housing. The program provides education and training on all aspects of how to conduct a housing search to transition from homelessness, health care facilities, or unstable, temporary housing into safe, long-term community-based housing. It includes group workshops, one-on-one service training, and access to IL (Independent Living) services, including emergency food assistance, security deposits/rent (as available funding allows), information, and referral, to ensure long-term sustainability of housing. 5 Project Name 2026 Next Door Solutions to Domestic Violence Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05G, Services for victims of domestic violence, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
20 unduplicated Palo Alto residents will benefit from client centered services.
Location Description Citywide
Planned Activities Assist Palo Alto residents identifying as victims/survivors of domestic/intimate partner violence (DV) will receive client-centered services through Community Support Advocacy: crisis intervention counseling, risk assessment, safety planning, legal advocacy and attorneys, restraining order assistance, case management, other support services through walk-in or virtual; Support Groups; Emergency Shelter and 24/7 Crisis Hotline.
Annual Action Plan
2026
29 OMB Control No: 2506-0117 (exp. 09/30/2021)
6 Project Name 2026 Catholic Charities Long Term Care Ombudsman Program Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05A, Senior Services, Objective: LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The program will provide advocacy and complaint investigation for 50 elderly residents of long-term care facilities in Palo Alto.
Location Description Citywide
Planned Activities Catholic Charities’ Long-Term Care Ombudsman Program (LTCOP) project activities include regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care and handle and resolve issues regarding residents’ rights, unmet needs, allegations of abuse, and complaints effectively, thus promoting resident well-being.
7 Project Name 2026 LifeMoves Case Management
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness Needs Addressed Homelessness
Funding CDBG: $30,500.00
Description Eligible Activity (Matrix Code): 03T, Operating Costs of Homeless/AIDS Patients Programs, Objective LMC
Annual Action Plan
2026
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
350 unduplicated individuals (homeless and/or very low-income individuals per year) will receive case management services, including assistance with housing/job searches, referrals, and mentoring Location Description Citywide
Planned Activities LifeMoves project activities include continuing and expand case management and supportive day services for individuals experiencing homelessness in Palo Alto at the Opportunity Services Center (OSC), in alignment with the City of Palo Alto’s Consolidated Plan and funding priorities. The project will provide intensive, client-centered case management to support participants in accessing permanent housing, increasing income and benefits, and achieving long-term self-sufficiency. In addition, the OSC will offer essential day services including food, clothing, shower(s), and laundry (dryer) that address immediate basic needs, reduce barriers to engagement, and provide a stable point of access to housing- focused services for unsheltered and highly vulnerable residents. 8 Project Name 2026 RotaCare Bay Area Mobile Clinic
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness Needs Addressed Homelessness
Funding CDBG: $4,500.00
Description Eligible Activity (Matrix Code): 03T: Homeless Programs, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
100 individuals assisted
Annual Action Plan
2026
31 OMB Control No: 2506-0117 (exp. 09/30/2021)
Location Description Citywide
Planned Activities This project provides free, accessible medical services to under and uninsured individuals to reduce barriers to essential care. Services will be delivered through our RotaCare Rotary Mobile Medical Clinic, with follow up care available at our San Jose clinic when the unit is not deployed within the Palo Alto area to ensure continuity of care. Project activities include adult primary care such as evaluation of acute medical concerns and preventative health services, along with prescription refills and laboratory testing at Quest Diagnostics. The project will also provide referrals for imaging studies, specialist consultations, diabetic retinal screening, and connections to additional community resources. Diabetic patients will have access to diabetic self-management classes to support long term health outcomes. 9 Project Name 2026 YWCA
Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $5,500.00
Description Eligible Activity (Matrix Code): 05G, Services for Victims of Domestic Violence, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
Annual Action Plan
2026
32 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities YWCA Golden Gate Silicon Valley (YWCA GGSV) provides essential domestic violence (DV) services, including a 24-hour English & Spanish Support Line (250+ additional languages through interpretation service), crisis counseling and support groups for adults and children, emergency shelter and housing services, over the phone response to law enforcement calls, personal advocacy, individual therapy, transportation, criminal justice and social services advocacy, temporary restraining orders, court accompaniment, household establishment assistance, children’s programming, and workforce development services. Our services are survivor-centered, trauma-informed, culturally responsive, and coordinated.
10 Project Name 2026 Planning and Administration
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Affordable Housing
Homelessness
Community Services and Public Improvements
Tenant Assistance Services
Economic Development
Funding CDBG: $122,427.80
Description Eligible Activity (Matrix Code): 21A, General Program Administration Planning and Administration Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The City will provide general administrative support to the CDBG program.
Location Description Citywide
Planned Activities CDBG program administration
Annual Action Plan
2026
33 OMB Control No: 2506-0117 (exp. 09/30/2021)
11 Project Name 2026 ADA Curb Ramps
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $172,335.35
Description Eligible Activity (Matrix Code): 03L, Sidewalks, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
6,681 severely disabled adults assisted
Location Description Citywide
Planned Activities This Public Works project will provide ADA curb ramps within the City for the benefit of severely disabled adult residents.
12 Project Name 2026 Peninsula Healthcare Connection Rehabilitation Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements Funding CDBG: $79,970.00
Description Eligible Activity (Matrix Code): 03E, Neighborhood Facilities, Objective LMC Target Date 6/30/2027
Annual Action Plan
2026
34 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and
type of families that will
benefit from the proposed
activities
TBD once completed
Location Description Citywide
Planned Activities This project will refurbish and transform PHC’s newly acquired house at 51 Encina Avenue into a dedicated facility for behavioral health, therapy, and addiction treatment services. This historic property, located in the heart of Palo Alto, presents an opportunity to expand essential healthcare services for our unhoused, low-income, and undocumented neighbors. Funding requested here is focused on pre-construction phase activities.
13 Project Name 2026 La Comida Food Assistance
Target Area Citywide
Goals Supported Supportive Services for Low Income Households Needs Addressed Community Services and Public Improvements Funding CDBG: $6,320.85
Description Eligible Activity (Matrix Code): 05W, Food Banks, Objective LMC Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
Annual Action Plan
2026
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities La Comida provides healthy meals, resources, and a warm environment each weekday. We will also engage and energize Palo Alto residents to support and volunteer for senior needs, causes, and projects. This project will support the needs of the growing population of seniors who are now accessing the services of La Comida.
Annual Action Plan
2026
36 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not have any designated target areas. Instead, the City focuses CDBG funds on public services, housing preservation, economic development-business assistance, and capital improvements across the City as a whole.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically N/A
Discussion
N/A
Annual Action Plan
2026
37 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
The City of Palo Alto is committed to providing equitable opportunities to all residents of Palo Alto in order to expand access to housing and increase housing mobility. The City will take action to overcome patterns of segregation, address disparities in housing needs and access to opportunity, and foster inclusive communities. The City’s Housing Element contains a list of actions established to reduce the barriers to affordable housing, including but not limited to racial inequities, high housing and land costs, regulatory constraints, and public resistance.
Currently the City is experiencing a constrained housing supply market, so when housing developments produce housing units that are considered “relatively” affordable, higher-income buyers and renters outbid lower-income households. Subsequently, a home’s final sale or rental price may exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low- and moderate-income households.
T
he City wants to ensure adequate planning is undertaken to provide its “fair share” of affordable and market-rate housing, demonstrating a strategy for removing barriers to increase housing production that addresses today’s housing shortage.
To address the requirements of AB 686, the City participated in the 2025-30 Santa Clara County Consolidated Plan (ConPlan). The County’s ConPlan identifies five goals for the County and each of its participating jurisdictions, including Palo Alto. Additionally, the ConPlan identifies regional and local barriers to fair housing around the region, with heavy emphasis on racial and economic disparity, land use and zoning, and lack of assistance and resources. Programs were identified to reduce barriers in the City, including adjusting zoning amendments to expand affordable and alternative housing opportunities and increasing accessibility to information.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Palo Alto is addressing the barriers to affordable housing through:- Density Bonus Ordinance: City lowered eligibility requirements, allowing up to an 80% density bonus and provided more exceptions to applicable zoning and development standards. Notably, if 100% affordable development is within half a mile of a major transit stop, City cannot impose any density limits and is entitled to a maximum height increase of Annual Action Plan
2026
38 OMB Control No: 2506-0117 (exp. 09/30/2021)
three additional stories or 33 feet.
-R
emove Density requirements in certain zoning districts. -Be
low Market Rate (BMR) Housing Program: 1974 Developers must allocate a percentage of units as BMR housing in approved project of 3 units or more. The program originally required that for developments on sites of less than 5 acres, the developer must provide 15% of the total housing units as BMR housing units. If the site was larger than 5 acres, the developer was required to provide 20% of the units as BMR housing.
The City of Palo Alto has historically used in-lieu fees & development impact fees charged on new, market-rate housing and/or commercial d
evelopment to finance 100% affordable developments. Updated Commercial and Residential Impact Fee Nexus Studies and adopted two ordinances making changes to its BMR program and adopted a new fee structure, effective 06/19/2017. -F
air Housing: Protect tenants from displacement through more robust tenant protections and better access to legal services. City provides CDBG funding to Project Sentinel, a non-profit entity that provides expertise in fair housing law and tenant-landlord disputes. Program services include information, referrals, community outreach, and education. Project Sentinel resolves fair housing complaints via investigation, mediation, education, and outreach to both property owners and tenants about fair housing policies. Increase access to lending opportunities for residents of historically low-income communities of color. -H
ousing Incentive Program (HIP): Effective 05/02/2019, an alternative to the State Density Bonus law and provides development incentives including no housing density restrictions, increased floor area ratios, and increased lot coverage. HIP is available to specific areas of the City where higher-density development is encouraged. - Affordable Housing (AH): 2018, City Council adopted Affordable Housing Combining District to provide flexible development standards beyond the State Density Bonus Law to allow 100% affordable housing projects located in a commercially zoned area.
-W
orkforce Housing (WH): 2018, Encourages housing near rail transit by modifying development standards by modifying flexible development s
tandards for the public facilities (PF) zoning district. The average Palo Alto home, as of 02/01/2023, costs about 8 times the national average home price, and the monthly rent is about 2.5 times the national average. -A
ccessory Dwelling Units and Junior Accessory Dwelling Units: City amended its Ordinance Title 18, which included “the development of a single-family home, ADU, and/or a JADU on a lot that allows for single-family development shall not be considered a multifamily development, Annual Action Plan
2026
39 OMB Control No: 2506-0117 (exp. 09/30/2021)
nor shall they require Architectural Review pursuant to other sections of Chapter 18. -C
ity Amended Chapter 9.68 (Rental Housing Stabilization) of the Municipal Code to expand just cause eviction protections to renters, including r
educing the minimum time period required for renters to qualify for just cause eviction protections.
Discussion
NA
Annual Action Plan
2026
40 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The following provides a description of today's obstacles and or barriers to meeting LMI or underserved populations, including vulnerable populations, housing preservation needs, lead -paint issues, increased earning capacity for LMI households, city delivery structure for supporting needed services, and regional approaches to serving and helping the homeless populations.
Actions planned to address obstacles to meeting underserved needs The City collaborative works with social service providers, affordable housing developers, housing preservation entities, fair housing, and homeless assistance agencies to address obstacles to permanent housing for all residents. To address this, the City supplements its CDBG funding with other resources and funds, such as: To address this, the City supplements its CDBG funding with other resources and funds, such as:
• S
upport social services entities including RotaCare and Catholic Charities that provide needed supportive services for extremely low-income and or elderly residents. • In FY 2025-26, the City’s Human Service Resource Allocation Process (HSRAP) provided about $600,000 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. • Support low income persons with disabilities. Provide CDBG funds to Silicon Valley Independent Living Center (SVILC) with case management needs.
• Support the city’s homeless population through CDBG awards and other funding sources to LifeMoves Shelter
• The Housing Authority of the County of Santa Clara (HACSC) administers the federal Section 8 p
rogram countywide. The program provides rental subsidies and develops affordable housing for low-income households, seniors and persons with disabilities living within the County.
Actions planned to foster and maintain affordable housing The City will foster and maintain affordable housing by continuing the following programs and ordinances:
• S
upport low income homeowners through annual CDBG allocations for housing rehabilitation.
Provide CDBG funds to Rebuilding Together Peninsula to preserve existing affordable housing stock. The City is also planning an affordable housing rehabilitation and replacement project, Buena Vista Mobile Home Park that will benefit approximately 270 residents. • A
nnual CDBG allocations to Rebuilding Together Peninsula to preserve existing affordable Annual Action Plan
2026
41 OMB Control No: 2506-0117 (exp. 09/30/2021)
housing stock.
• The Below Market Rate Emergency Fund, which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units.
• Apply to both the State of California HOME program, and the County’s HOME Consortium to fund supported affordable housing projects.
• The Commercial Housing Fund and Residential Housing Fund are used by the City to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing.
• The Density Bonus Ordinance regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided.
• The City is collaborated with Santa Clara County and Eden Housing in the development of Michell Park Place, a new affordable housing development project providing 50 affordable units located in one of the City’s LMI census tracts. This development opened in winter of 2025. • The City awarded $5M to Charities Housing in 2025 to support the development of a 100% affordable housing development (130-units) serving low-income households. • The City’s participation in the County's HOME Consortium will allow developers of affordable housing projects to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including ac
quisition, construction, and rehabilitation.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides technical assistance, information, and referrals to property owners, developers, and non-profit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors be trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35.
Rebuilding Together Peninsula, through its housing rehabilitation program, ensures each rehab includes lead-based paint assessment and mitigation on impacted areas for each housing case.
Actions planned to reduce the number of poverty-level families The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2026-27, all CDBG Annual Action Plan
2026
42 OMB Control No: 2506-0117 (exp. 09/30/2021)
programs will work at reducing the number of poverty-level families in Palo Alto.
Actions planned to develop institutional structure
The administration of the City’s CDBG program requires collaboration between several departments including the finance department, administration, Human Services, and Planning and Development Services Department staff. The Planning and Development Services Department assigns critical staff to manage project development, subrecipient contracting and technical assistance, consultant management, collaboration with public works department staff, and fund draws and activity spending.
The Finance Department assists in the process by reconciling CDBG and City budget accounts and drawdown approvals. The Human Relations Commission and Council hold public hearings and recommend recommendations and final approvals of annual CDBG project activities and projects.
T
he City strives to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and affordable housing production.
Collaborative efforts include:
• R
egular meetings between entitlement jurisdictions at the CDBG Housing Coordinators meetings and Regional Housing Working Group.
• Joint jurisdiction Request for Proposals and project review committees. • Collaborations between the City’s housing and public works departments. • Coordination on project management for projects funded by multiple jurisdictions. • HOME Consortium meetings between member jurisdictions for affordable housing projects.
Actions planned to enhance coordination between public and private housing and social service agencies
City will continue participation in HOME consortium meetings with County, consortium members, and other local service and housing providers to discuss housing and community development topics.
Discussion
NA
Annual Action Plan
2026
43 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) P
rojects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be completed.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
O
ther CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% D
iscussion
NA