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Palo Alto committee pauses Phase 1 nonprofit grant program, directs review of HSRAP
Summary
Policy & Services unanimously voted to pause the proposed Phase 1 nonprofit partnership funding for FY27 and directed staff to return after the summer recess with recommendations to refine the HSRAP (Human Services Resource Allocation Program) process and consider whether Phase 1 should be folded in later.
The Palo Alto Policy & Services Committee voted May 12 to pause adoption of a Phase 1 nonprofit partnership grant program for fiscal year 2027 and directed staff to return after the summer recess with recommendations to review and refine the Human Services Resource Allocation Program (HSRAP).
Assistant to the City Manager Nupita Ramos told the committee staff had presented four options on nonprofit funding at a recent study session and that the finance committee signaled support for "option C," which would shift many organizations into ongoing direct allocations. Ramos said option C included roughly $78,000 in proposed direct allocations and an additional $235,000 in direct allocations for three organizations, listing $150,000 for Magical Bridge, $40,000 for Cal Ave events and music, and $45,000 for UNAF.
Committee members said the distinctions among HSRAP grants, CDBG, ongoing service agreements and direct allocations are confusing and that the City should focus on simplifying categories, improving transparency and applying consistent performance measures to long-term service agreements. Several members argued that HSRAP should be the primary vehicle for human-service funding and that Phase 1's goals could be met by revising HSRAP rather than creating a separate program immediately.
Council Member Rekdal moved — and another member seconded — a motion to pause Phase 1 adoption for FY27 and direct staff to return with a review of HSRAP and proposed next steps; the motion passed unanimously.
Ramos and staff outlined a potential timeline that would prioritize HSRAP refinements over the summer and fall, with applications and awards timed so any adjustments would be in place by the next HSRAP funding cycle. Staff also noted the city maintains an emerging needs fund that can address urgent gaps during the year.
What happens next: Staff will schedule the HSRAP review for discussion in August/September, work with the Human Relations Commission as appropriate, and return recommendations to the committee and council before the FY28 application and award cycle.
