HomeMy WebLinkAbout11 - Community Development Block Grant — 2021-2022 Annual Action PlanQ �EwPpRT
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<,FORN'P City Council Staff Report
April 27, 2021
Agenda Item No. 11
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator,
Iwooding@newportbeachca.gov
James Campbell, Deputy Community Development Director,
jcampbell@newportbeachca.gov
PHONE: 949-644-3236
TITLE: Resolution No. 2021-35: Community Development Block Grant —
2021-2022 Annual Action Plan
ABSTRACT:
The Annual Action Plan is the City of Newport Beach's grant application to the U. S.
Department of Housing and Urban Development (HUD) for Community Development
Block Grant (CDBG) funds. Based on strategies adopted as part of the 2020-2024
Consolidated Plan, the 2021-2022 Action Plan will appropriate approximately $385,974
of CDBG funds to specific programs and projects. For City Council's consideration are
the specific programs and funding proposed.
RECOMMENDATION:
a) Conduct a public hearing to receive comments on the Annual Action Plan;
b) Find the approval of the 2021-2022 Annual Action Plan exempt from the National
Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section 58.34;
c) Find the approval of the 2021-2022 Annual Action Plan exempt from the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will
not result in a direct or reasonably foreseeable indirect physical change in the
environment) and Section 15060(c)(3) (the activity is not a project as defined in Section
15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly;
d) Adopt Resolution No. 2021-35, A Resolution of the City Council of the City of Newport
Beach, California, Approving the 2021-2022 Annual Action Plan for the Allocation of
the Federal Community Development Block Grant Program Funds for Fiscal Year
2021-2022; a n d
Resolution No. 2021-35: Community Development Block Grant —
2021-2022 Annual Action Plan
April 27, 2021
Page 2
e) Authorize the City Manager to:
1. Adjust appropriations to specific programs and projects as necessary to
conform with the final 2021-2022 formula grant allocation of CDBG funds from
HUD;
2. Submit the 2021-2022 Annual Action Plan to HUD;
3. Execute the 2021-2022 CDBG Program Grant Agreement and all related
documents on behalf of the City of Newport Beach;
4. Execute sub -recipient agreements with the non-profit organizations receiving
allocations of CDBG funds in the Action Plan; and
5. Authorize the Community Development Director, or his designee, to be the
official representative of the City of Newport Beach to submit required
environmental documentation for CDBG projects.
DISCUSSION:
The City of Newport Beach (City) receives a formula grant allocation of CDBG funds each
year from the federal government, through a program run by HUD. The objective of the
CDBG program is to develop viable urban communities by providing decent housing and
a suitable living environment, and by expanding economic opportunities, principally for
low- and moderate -income persons. CDBG is authorized under Title I of the Housing and
Community Development Act of 1974. CDBG funds may be used for a wide variety of
programs, services and facilities improvements, including but not limited to:
• Community and senior services
• Fair housing enforcement and landlord/tenant mediation
• Homeless prevention and domestic violence programs
• Public facilities and infrastructure improvements
• Disabled (ADA) accessibility improvements
• Housing programs
• Section 108 loan payments
Since July 1, 1989, the City of Newport Beach has received a total direct allocation of
approximately $13.4 million of CDBG funds from HUD with annual allocations ranging
from a low of $319,676 in 2017, to a high of $534,000 in 1995. The 2021-2022 formula
grant allocation is expected to be $385,974.
According to CDBG regulations, the City may spend up to 20 percent of the annual
formula grant allocation of CDBG funds for program administration and 15 percent for
community services such as senior meal delivery, senior services or homeless prevention
programs. The remaining amount of funding may be used for projects such as street and
sidewalk improvements, disabled accessibility improvements, public facilities
improvements such as the construction or rehabilitation of park and recreational facilities,
provided the projects meet applicable CDBG regulations and national objectives.
11-2
Resolution No. 2021-35: Community Development Block Grant —
2021-2022 Annual Action Plan
April 27, 2021
Page 3
Each year, the City uses a portion of the funds reserved for program administration to
comply with Fair Housing Act requirements and make fair housing enforcement and
landlord/tenant mediation services available to the community. These services have been
provided free of cost to Newport Beach residents by the Fair Housing Foundation since
2011.
On January 16, 2021, the City published a Notice of Funding Availability (NOFA) in the
Daily Pilot newspaper and on the City website, to announce the availability of CDBG funds
and solicit proposals from tax-exempt, nonprofit organizations that provide eligible CDBG
services or projects that benefit Newport Beach residents.
In response to the NOFA, four nonprofit organizations submitted applications for CDBG
grants. In consideration of the funding available, the amount of funding requested, past
performance, anticipated benefit to Newport Beach residents, and City priorities, staff
recommends program/ project funding levels in the Action Plan as follows:
Category
Requested Recommended
Public Services subject to 15% grant cap
Limit of $57,896
Age Well Senior Services: Home Delivered Meals
$30,000
$30,000
Families Forward: Housing Program
$20,000
$16,000
Newport Beach: City Motel Voucher Program
$0
$11,896
Administration (subject to 20% grant cap)
Limit of $77,194
CDBG Program Administration
$65,194
$65,194
Fair Housing Foundation: Fair Housing Services
$12,000
$12,000
Fair Housing Council of OC
$11,500
$0
Capital Projects
$250,884
Section 108 Loan Repayment
$202,387
$202,387
Homeless Shelter: Modifications to Shelter (Costa
Mesa) as needed
$0
$48,497
Economic Development — Grant Program (carried
forward)
$0
$250,371
Total
$341,081
$636,345
*funds previously programmed under 2020-21 Substantial Amendment to Annual Action Plan
The Action Plan, found in the draft resolution (Attachment), describes each program. In
consideration of the amount of public service funding available and the amount of public
service funding requested, staff did not recommend funding the new fair housing services
provider, Fair Housing Council of Orange County, because there was not a significant
advantage to changing service providers. The current vendor provides high quality
services to residents of Newport Beach, and the past level of performance of the existing
service provider was a key factor considered by the staff committee tasked with reviewing
applications and formulating funding recommendations for City Council consideration.
Historically, the existing service provider has successfully accomplished its annual
performance goals.
11-3
Resolution No. 2021-35: Community Development Block Grant –
2021-2022 Annual Action Plan
April 27, 2021
Page 4
With the proposed funding levels shown in the table above, Age Well Senior Services
plans to serve approximately 100 Newport Beach residents during the 2021-2022 fiscal
year; the agency's focus on serving meals to homebound senior citizens, who make up
approximately 22 percent of Newport Beach' s population, was especially critical during
the COVID-19 pandemic. Families Forward plans to serve approximately 12 unduplicated
Newport Beach residents with the proposed funding level and will provide services to
families to address homelessness. Staff also recommends allocating funding to
supplement the City's motel voucher program — as part of the City's ongoing efforts to
address homelessness, funding will be used to provide approximately 13 individuals with
short-term lodging while working to address their long-term housing and service needs.
Lastly, staff recommends allocating $202,387 to the Section 108 Loan Repayment (which
as of April 2021 has a balance of $412,935, and will be fully repaid in August 2022), with
the balance of the Capital Project funding being allocated to the City's financial obligations
related to modification and improvements at the temporary homeless bridge shelter in
Costa Mesa. If no modifications or improvements to the shelter are required during the
2021-2022 fiscal year, the $48,497 may be carried forward to the 2022-2023 Action Plan
and may be appropriated to a new project at that time. Each of the programs/projects
recommended are contemplated within the Strategic Plan priorities of the 2020-2024
Consolidated Plan.
On March 27, 2021, staff published a notice in the Daily Pilot informing the general public
that the City had prepared the Draft 2021-2022 Annual Action Plan. The notice also
indicated the plan would be available for review and comment until April 27, 2021. The
public has been provided an opportunity to provide oral and/or written comments on the
proposed activities included in the Draft 2021-2022 Annual Action Plan. At the time this
report was prepared, no public comments had been received. Additionally, the current
Citizen Participation Plan requires that a public hearing be held to receive testimony from
interested residents or parties regarding the Action Plan. The April 27, 2021, public
hearing fulfills this requirement.
Additional CARES Act Funding & Economic Development
Under the 2020 federal stimulus plan — Coronavirus Aid, Relief, and Economic Security
Act ("CARES Act"), the City received two additional CDBG funding allocations from HUD
totaling $960,403. Under a Substantial Amendment to the 2020-2021 Annual Action Plan,
an economic development grant program was approved by City Council in July 2020.
Considering the economic impacts resulting from the global pandemic COVID-19, and
the financial hardships felt by many small businesses in Newport Beach, the economic
development grant program issues $5,000-10,000 grants to eligible small businesses that
meet the low- and moderate -income guidelines from HUD. To date, 14 businesses have
met the rigorous eligibility requirements and received funding, and another
36 applications are in the review process. Additionally, staff is working to develop
program descriptions to utilize the balance of the CARES Act funds and anticipates
making recommendations to fund activities related to preventing and responding to
homelessness. Once the programs have been developed and determined to be viable
and consistent with HUD criteria, City staff will return to City Council at a future date with
a proposal to amend the 2021-2022 Annual Action Plan with the recommended programs.
11-4
Resolution No. 2021-35: Community Development Block Grant -
2021 -2022 Annual Action Plan
April 27, 2021
Page 5
FISCAL IMPACT:
This item provides for City Council approval of the use of an estimated $385,974 of CDBG
funds for the 2021-2022 fiscal year, to be adjusted by the City Manager as necessary to
conform with the final 2021-2022 formula grant allocation from HUD. The costs
associated with staff management of the CDBG program are approximately $17,000 per
year.
ENVIRONMENTAL REVIEW:
The development of required plans and allocation of CDBG program funds is an
administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National
Environmental Policy Act of 1969 ("NEPA"), as amended.
Staff recommends the City Council find the adoption of the 2021-2022 Action Plan is not
subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title
14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
NOTICING:
In accordance with HUD requirements for a 30 -day public review and comment period,
notice of the public hearing was published in the Daily Pilot on March 27, 2021. Notice
was also sent to each of the applicants requesting funding and emailed to all parties that
signed up to receive email notifications from the Planning Division. Further, the agenda
item has been noticed according to the Brown Act (72 hours in advance of the meeting at
which the City Council considers the item).
ATTACHMENT:
Attachment A— Resolution No. 2021-35 (2021-2022 Annual Action Plan included)
11-5
ATTACHMENT A
RESOLUTION NO. 2021- 35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, APPROVING THE 2021-
2022 ANNUAL ACTION PLAN FOR ALLOCATION OF THE
FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM FUNDS FOR FISCAL YEAR 2021-2022
WHEREAS, the City of Newport Beach ("City") participates in the United States
Department of Housing and Urban Development ("HUD") Community Development Block
Grant ("CDBG") program which requires the City to prepare a Five -Year Consolidated
Plan and Citizen Participation Plan outlining the use of CDBG funds, strategic vision for
housing and community development in the City, and receipt of community input regarding
the expenditure of CDBG funds;
WHEREAS, the City Council adopted Resolution No. 2020-51 approving the
current 2020-2024 Consolidated Plan and Citizen Participation Plan on May 12, 2020;
WHEREAS, HUD also requires the City to prepare an annual action plan for the
appropriation of the CDBG annual grant and other available grant funds for the fiscal year,
WHEREAS, the City anticipates receiving approximately $385,974.00 in CDBG
grant funds for Fiscal Year 2021-2022;
WHEREAS, on January 16, 2021, in accordance with Section G.1(b) of the Citizen
Participation Plan, a Notice of Funding Availability was published in the Daily Pilot
newspaper and sent to known non-profit community organizations currently operating
within the City requesting proposals to provide public services to low- and moderate -
income residents and fair housing services to all residents of the community;
WHEREAS, the City received two proposals to provide public services and two
proposals to provide fair housing services;
WHEREAS, the draft 2021-2022 Annual Action Plan appropriates the $385,974.00
CDBG annual grant funds to various programs and projects consistent with the 2020-2024
Consolidated Plan and HUD requirements including the proposals received;
WHEREAS, on March 27, 2021, notice was published in the Daily Pilot newspaper
that the draft 2021-2022 Annual Action Plan would be available for public review and
comment from March 27, 2021 to April 27, 2021; and
11-6
WHEREAS, a telephonic public hearing was held by the City Council on April 27,
2021, in the Council Chambers located at 100 Civic Center Drive, Newport Beach,
California, observing restrictions due to the Declaration of a State Emergency and
Proclamation of Local Emergency related to COVID-19 regarding the draft 2021-2022
Annual Action Plan. A notice of time, place and purpose of the public hearing was given
in accordance with California Government Code Section 54950 of seq. ("Ralph M. Brown
Act") and 24 Code of Federal Regulations Part 91. Evidence, both written and oral, was
presented to, and considered by, the City Council at this public hearing.
NOW THEREFORE, the City Council of the City of Newport Beach hereby
resolves as follows:
Section 1: The City Council does hereby approve the 2021-2022 Annual
Action Plan attached hereto as Exhibit "A" to this resolution, which is incorporated
herein by reference.
Section 2: The City Council authorizes the City Manager, or his/her designee,
to: 1) proportionally adjust appropriations to specific programs and projects as
necessary to conform with the final 2021-2022 formula grant allocation of CDBG funds
from HUD if the appropriation is more than or less than $385,974.00; 2) submitthe 2021-
2022 Annual Action Plan to HUD; 3) execute the 2021-2022 CDBG Program Grant
Agreement and all related documents on behalf of the City; and 4) execute all
subrecipient agreements with the nonprofit organizations receiving allocations of CDBG
funds in the 2021-2022 Action Plan. Additionally, the City Council authorizes the
Community Development Director, or his/her designee, to be the official representative
of the City, administer the 2021-2022 Annual Action Plan and submit required
environmental documentation to HUD for CDBG projects.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, clause or phrase hereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses and phrases be declared invalid or
unconstitutional.
11-7
Resolution No. 2021 -
Page 3 of 3
Section 5: The City Council finds that the development of required plans and
allocation of CDBG program funds is an administrative activity exempt under 24 CFR
Part 58, Section 58.34 of the National Environmental Policy Act of 1969 ("NEPA"), as
amended, in that the project involves public services that will not have a physical
impact or result in any physical changes to the environment.
Section 6: The City Council finds the adoption of this resolution is not
subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines set forth in California Code of
Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting
in physical change to the environment, directly or indirectly.
Section 7: This resolution shall take effect immediately upon its adoption
by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 27th day of April, 2021.
Brad Avery
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFF CE
C.
Aar n C. Harp
City Attorney
Attachments: Exhibit A - 2021-2022 Annual Action Plan
11-8
�n
11-9
Table of Contents
Tableof Contents..............................................................................................................................................................2
AP -15 Expected Resources — 91.220(c)(1,2)............................................................................................................... 3
AP -20 Annual Goals and Objectives............................................................................................................................. 5
AP -35 Projects — 91.220(d)............................................................................................................................................. 8
AP -38 Project Summary...................................................................................................................................................9
AP -50 Geographic Distribution — 91.220(f)...............................................................................................................12
AP -55 Affordable Housing — 91.220(g).......................................................................................................................13
AP -60 Public Housing — 91.220(h)...............................................................................................................................15
AP -65 Homeless and Other Special Needs Activities — 91.220(i)........................................................................17
AP -75 Barriers to affordable housing — 91.220(j).....................................................................................................20
AP -85 Other Actions — 91.220(k)................................................................................................................................22
AP -90 Program Specific Requirements-91.220(1)(1,2,4)......................................................................................25
Tables:
Table56 — Anticipated Resources................................................................................................................................. 3
Table57 - Goals Summary...............................................................................................................................................5
Table58 - Goals Description.......................................................................................................................................... 7
Table59 - Project Information....................................................................................................................................... 8
Table 60 - Geographic Priority Areas.........................................................................................................................12
Table 61 - One Year Goals for Affordable Housing by Support Requirements................................................14
Table 62 - One Year Goals for Affordable Housing by Support Type................................................................14
11-10
2021-2022 Action Plan
AP -15 Expected Resources - 91.220(c)(1,2)
Introduction
For program year 2021-2022, the City is anticipating receiving $385,974 of Community Development Block Grant
(CDBG) funds from HUD. The City anticipates the availability of approximately $2.07 million of CDBG
resources during the five-year period beginning July 1, 2020 and ending June 30, 2025.
Explain how federal funds will leverage those additional resources (private, state and
local funds), including a description of how matching requirements will be satisfied
Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG
funds to leverage appropriate state, local, and private resources, including but not limited to those listed below.
State Resources
• State Low -Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN)
• CalHome Program
• Multifamily Housing Program (MHP)
• Housing Related Parks Grant
• CaIHFA Single and Multi -Family Program
• Mental Health Service Act (MHSA) Funding
Local Resources
• Orange County Housing & Finance Agency (OCHFA) Funding
• Southern California Home Financing Authority (SCHFA) Funding
• Orange County Continuum of Care Program
• Orange County Housing Authority (OCHA) Programs
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP)
• Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
• Public -Private Partnerships
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to
address the needs identified in the plan
Newport Beach will comply with new State requirements under AB 1486 and AB 1255 to inventory and
support developers to access and utilize surplus municipal and state land for the construction of affordable
housing. If such sites are identified, the City will consider the use of CDBG or other resources to assist with
site preparation. At the point of developing this Action Plan, the City does not have any publicly owned land
that can be used to support the development of affordable housing within the City of Newport Beach.
Matching Requirements
The City of Newport Beach does not receive HOME Investment Partnerships funds as part of its entitlement
allocation. The amountof matching is therefore not applicable for the 2021-2022 Annual Action Plan.
Discussion
Assuming continued level funding of the CDBG programs, the City expects to utilize approximately $2.07
million of CDBG funds during the five-year period beginning July I, 2020 and ending June 30, 2025 to achieve
the goals of the Strategic Plan.
11-12
AP -20 Annual Goals and Objectives
Goals Summary Information
Table 57 - Goals Summary
11-13
Goal
Sort
Start
End
Geograph
Needs
Order
Goal Name
Year
Year
CategoryOutcome
Area IrAddressed
Indicator
I
Program
2021
2022
Program
Citywide
All
CDBG:
N/A
Administration
Administration
$65,194
2
Fair Housing
2021
2022
Affordable
Citywide
Ensure equal
CDBG:
Other:
Services
Housing
access to
$12,00
125 Persons
housing
Assisted
opportunities
3
Public Services
2021
2022
Non -Housing
Citywide
Provide
CDBG:
Public service
Community
public
$30,000
activities other
Development
services for
than
low- and
Low/Moderate
moderate-
Income
income
Housing
residents
Benefit:
100 Persons
Assisted
4
Homeless
2021
2022
Homeless
Citywide
Prevent and
CDBG:
Homelessness
Services
eliminate
$27,896
Prevention:
homelessness
25 Persons
Assisted
11-13
11-14
Goal
Sort
Start
End
Geographic
Needs
Order
Goal Name
Year
Year
CategoryOutcomw
Area
Addressed
Indicator
5
Public Facilities
2021
2022
Non -Housing
Citywide
Improve
CDBG:
Public Facility
and
Community
public
$250,884
or
Infrastructure
Development
facilities and
Infrastructure
Improvements
infrastructure
Activities
other than
Address
Low/Moderate
material
Income
barriers to
Housing
accessibility
Benefit:
Other: I
(Section 108
Loan)
Modification to
Shelter: 1
6
Economic
2020
2022
Non -Housing
Citywide
Economic
CDBG:
Economic
Development
Community
Development
$250,371
activities:
Assistance
Development
(2020-21)
3 Businesses
Assisted
11-14
Goal Descriptions
Table 58 — Goal Description
11-15
Goal Name
Program Administration
Goal
Efficient and cost-effective implementation of CDBG program.
Description
2
Goal Name
Fair Housing Services
Goal
Affirmatively further fair housing choice through the provision of fair housing education,
Description
counseling, anti -discrimination, and landlord -tenant mediation services. The CDBG
Administration activity funding for five years is also represented under this goal.
3
Goal Name
Public Services
Goal
Provide public services for low- and moderate -income residents including senior citizens,
Description
families and youth including but not limited to those concerned with food, essential
services, transportation, health, recreation, and employment.
4
Goal Name
Homeless Services
Goal
Provide funding to community-based organizations who offer critical services for
Description
homeless and other special needs populations as determined via a competitive
application.
5
Goal Name
Public Facilities and Infrastructure Improvements
Goal
Based on need and available resources and results of the 2020-2024 Consolidated Plan
Description
Needs Assessment Survey, the improvement of public facilities and infrastructure owned
and operated by the City of Newport Beach is rated as a high priority need for CDBG
funds. In addition, Section 108 Loan Repayment is included under this goal.
6
Goal Name
Economic Development Assistance
Goal
Provide technical assistance and additional support to small and micro businesses in the
Description
City of Newport Beach to provide job support and fulfill economic needs of low- and
moderate -income residents.
Table 58 — Goal Description
11-15
AP -35 Projects - 91.220(d)
Introduction
To address the high priority needs identified in the Strategic Plan, the City of Newport Beach will invest CDBG
funds in projects that develop provide fair housing services, provide services to low- and moderate -income
residents, prevent homelessness and strengthen economic opportunities. Together, these projects will address
the needs of low- and moderate -income Newport Beach residents.
The Fair Housing Services project will provide fair housing assistance to an estimated 125 moderate -income
people, the Public Services project will provide assistance to an estimated 100 presumed low-income elderly
people, the Homeless Services project will provide services to an estimated 24 presumed low-income people,
and the Economic Development Assistance project will technical assistance services to an estimated 3 small
businesses.
Table 59 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing
underserved needs
Based on the Strategic Plan, the City is allocating a majority of its non -administrative CDBG funds for program
year 2020-2024 to projects and activities that benefit low- and moderate -income people throughout the City.
The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack of
funding from federal, state, and other local sources and the high cost of housing that is not affordable to low-
income residents. To address these obstacles, the City is investing CDBG funds through the 2021-2022 Action
Plan in projects that provide public services to low- and moderate -income people and projects that prevent
homelessness as well as strengthen economic opportunities for the low- and moderate -income residents of
Newport Beach.
11-16
I
Program Administration
2
Fair Housing Services
3
Public Services
4
Homeless Services
5
Public Facilities and Infrastructure
Improvements
6
Economic Development Assistance
Describe the reasons for allocation priorities and any obstacles to addressing
underserved needs
Based on the Strategic Plan, the City is allocating a majority of its non -administrative CDBG funds for program
year 2020-2024 to projects and activities that benefit low- and moderate -income people throughout the City.
The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack of
funding from federal, state, and other local sources and the high cost of housing that is not affordable to low-
income residents. To address these obstacles, the City is investing CDBG funds through the 2021-2022 Action
Plan in projects that provide public services to low- and moderate -income people and projects that prevent
homelessness as well as strengthen economic opportunities for the low- and moderate -income residents of
Newport Beach.
11-16
AP -38 Project Summary
Project Summary Information
I
Project Name
Program Administration
Target Area
Citywide
Goals Supported
All
Needs Addressed
All
Funding
CDBG: $65,194
Description
Effective and cost-efficient implementation of the CDBG program.
Target Date
6/30/22
Estimate the number and type offamilies
that will benefit from the proposed
activities
N/A
Location Description
Citywide
Planned Activities
Program Administration: $65,194
2
Project Name
Fair Housing Services
Target Area
Citywide
Goals Supported
Fair Housing Services
Needs Addressed
Ensure equal access to housing opportunities
Funding
CDBG: $12,000
Description
Affirmatively further fair housing choice through the provision of
fair housing education, counseling, anti -discrimination and landlord -
tenant mediation services.
Target Date
6/30/2022
Estimate the number and type of families
that will benefit from the proposed
activities
Approximately 125 people will benefit from the proposed activity.
Location Description
Citywide.
Planned Activities
Fair Housing Services: (125 people) $12,000
11-17
3
Project Name
Public Services
Target Area
Citywide
Goals Supported
Public Services
Needs Addressed
Provide public services for low- and moderate -income residents
Funding
CDBG: $30,000
Description
Provide public services for low- and moderate -income residents.
Target Date
6/30/2022
Estimate the number and type offamilies
that will benefit from the proposed
activities
Approximately 100 people will benefit from the proposed
activities.
Location Description
Citywide.
Planned Activities
Age Well Senior Services: Home Delivered Meals (100 people)
$30,000
4
Project Name
Homeless Services
Target Area
Citywide
Goals Supported
Homeless Services
Needs Addressed
Prevent and eliminate homelessness
Funding
CDBG: $27,896
Description
Provide funding to community-based organizations who offer
critical services for homeless and other special needs populations
as determined via a competitive application.
Target Date
6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
Approximately 25 people will benefit from the proposed activities.
Location Description
Citywide.
11-18
11-19
Planned Activities
City Motel Voucher Program (13 people) $11,896
Families Forward: (12 people) $16,000
5
Project Name
Public Facilities and Infrastructure Improvements
Target Area
Citywide
Goals Supported
Public Facilities and Infrastructure Improvements
Needs Addressed
Address material barriers to accessibility and improve public
facilities and infrastructure
Funding
CDBG: $250,884
Description
Section 108 Debt Service and Modifications to Shelter.
Target Date
6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
Other: I
Modifications to Shelter: I
Location Description
Citywide
Planned Activities
Section 108 Loan Repayment - $202,387
Shelter - $48,497
6
Project Name
Economic Development Assistance
Target Area
Citywide
Goals Supported
Economic Development Assistance
Needs Addressed
Economic Development
Funding
$250,371 (2020-21 funds)
Description
Economic development assistance
Target Date
6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
Businesses assisted: 3
Location Description
Citywide
Planned Activities
Economic Development Assistance (TBD)
11-19
AP -50 Geographic Distribution - 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income
and minority concentration) where assistance will be directed
Based on evaluation of CPD Maps data, there are no areas within the City exhibiting a greater level of need
for affordable housing or services for low- and moderate -income residents and there were no areas of the
City containing minority concentrations; therefore, no geographic priorities were established within the
Consolidated Plan and allocation priorities will be driven by citywide need. All CDBG funds will be directed
toward activities benefitting low- and moderate -income residents citywide.
The only exception to this approach would be for CDBG projects that are qualified on a low- and moderate -
income area basis where a specific proportion of the residents within the service area must be low- and
moderate -income residents.
Geographic Area
Table 60 - Geographic Priority Areas
Citywide Newport Beach will allocate resources across the
City based on need and eligibility
Rationale for the priorities for allocating investments geographically
The City's investments in Fair Housing Services, Public Services and Homelessness Prevention Services projects
are based on a citywide geography because individuals in need of these services may live anywhere within the
jurisdiction—particularly services for seniors and homeless individuals.
Discussion
Based on the Strategic Plan, the City is allocating 100 percent of its non -administrative CDBG funds for program
year 2021-2022 to projects and activities that benefit low- and moderate -income people.
11-20
AP -SS Affordable Housing - 91.220(g)
Introduction
The City of Newport Beach will look at using non-CDBG local, state, and federal funding sources to develop
new housing units. Preservation of the physical and functional integrity of existing housing units occupied by
low- and moderate -income households is a cost-effective way to invest limited non-CDBG resources to retain
existing housing units that are already affordable to low- and moderate -income households in the community.
Additionally, rehabilitation will assist in resolving housing problems that residents face throughout Newport
Beach. Addressing substandard housing conditions through housing preservation activities ensures that all
economic segments of the community have the opportunity to live in decent housing that meets local standards.
Expand the Supply of Affordable Housing
Based on evaluation of 2011-2015 ACS and CHAS data, there is a need for additional rental housing units
affordable for households earning less than 50 percent of AMI. Of the households earning 0-80 percent of
AMI, 8,943 are cost burdened households — meaning households paying more than 30 percent of their income
for housing. Additionally, 6,614 of the cost burdened households are considered severely cost burdened
households — meaning that they pay more than 50 percent of their income for housing. Of the 4,410 severely
cost burdened households, 3,580 are renters. Of those severely cost burdened renter households, 3,320
households earn less than 50 percent of AMI and are considered the most at risk of becoming homeless. The
City will continue to use its Affordable Housing Trust Fund and other available options under the State Density
Bonus law to create additional affordable housing. The City is also currently working to update its General
Plan Housing Element for the 6th Cycle Regional Housing Needs Assessment (RHNA) allocation, which is
4,845 new housing units. Of that number, 70 percent are required to be affordable to very -low, low- and
moderate -income households. In order to accommodate that requirement, the City is exploring new
policies to encourage production of affordable housing in the 2021-2029 planning period.
Preserve the Supply of Affordable Housing
As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to allow them
to remain safe and habitable. The situation is of particular concern for low- and moderate -income homeowners
who are generally not in a financial position to properly maintain their homes.
The age and condition of Newport Beach's housing stock is an important indicator of potential rehabilitation
needs. Commonly, housing over 15 years of age will exhibit deficiencies in terms of paint, weatherization,
heating / air-conditioning systems, hot water heaters and finish plumbing fixtures. Housing over 30 years of age
will typically some form of major rehabilitation, such as roof replacement, foundation work and plumbing
systems. According to CHAS data showing the year that housing units were built categorized by owner and
renter tenure:
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• 5,680 or 27 percent of the 20,920 owner -occupied housing units built between 15 and 34 years ago
(built between 1980 and 1999).
• 11,905 or 57 percent of the 20,920 owner -occupied housing units in Newport Beach were built 34
or more years ago (built prior to 1980).
• 4,745 or 28 percent of the 17,160 renter -occupied housing units in Newport Beach were built
between 15 and 34 years ago (built between 1980 and 1999).
• 10,930 or 63 percent of the 17,160 renter -occupied housing units in Newport Beach were built 34
or more years ago (built prior to 1980).
Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate -
income households is a cost-effective way to invest limited resources to retain existing housing units that are
already affordable to low- and moderate -income households in the community. Addressing substandard
housing conditions through housing preservation activities ensures that all economic segments of the
community have the opportunity to live in decent housing that meets local standards.
Table 61 - One Year Goals for Affordable Housing by SuDDort Reauirements
One Year Goals for the Number of Households to be
Supported
Rental Assistance
0
Non -Homeless
0
Special -Needs
0
Acquisition of Existing Units
0
Table 62 - One Year Goals for Affordable Housing by Support Type
One ..Households...
Rental Assistance
0
The Production of New Units
0
Rehab of Existing Units
0
Acquisition of Existing Units
0
Total
0
Discussion
The Strategic Plan identifies a high priority need to expand the supply of affordable housing. However, the City will use
other funding sources and methods to create affordable housing opportunities such as the Affordable Housing Trust
Fund and the State Density Bonus law. As mentioned previously, the City is also exploring new affordable housing
policies as part of its Housing Element update that would encourage the production of new affordable units.
11-22
AP -60 Public Housing - 91.220(h)
Introduction
The Newport Beach Housing Authority does not administer Section 8 and does not own HUD Public Housing.
Newport Beach is within the service area of the Orange County Housing Authority (OCHA) for the purposes
of Section 8 and Public Housing. The data presented in the tables below is for Newport Beach and the narrative
responses address the needs for the entire county, with specific references to the City of Newport Beach.
Actions planned during the next year to address the needs to public housing.
In the upcoming five years, OCHA's goals are
• Apply for additional housing assistance funding and programs that may become available.
• Explore the use of Project -Based Housing Choice Vouchers or other housing funds to promote the
construction or acquisition activities that will result in additional units or developments that will serve
special needs populations.
• Ensure consistent quality of assisted housing services by maintaining high performer status in Section
Eight Management Assessment Program (SEMAP) scores.
• Promote Family Self -Sufficiency incentives and homeownership opportunities for Housing Choice
Voucher participants in partnership with local programs and related service providers.
• Expand assisted housing choices by conducting outreach efforts to increase the number of property
owners and their participation in housing assistance programs.
• Identify and utilize technology to enhance operational effectiveness and efficiency in delivery of
housing assistance services.
Actions to encourage public housing residents to become more involved in management and participate in
homeownership.
OCHA supports resident councils and actively seeks input from PHA residents on the management and
implementation of OCHA policies and procedures.
Housing prices in Orange County are so high that homeownership opportunities are limited for OCHA
residents. On a limited basis, OCHA has partnered with Habitat for Humanity to provide two affordable
homeownership units, but these types of efforts are limited.
OCHA also manages a Housing Choice Voucher Homeownership Program that it markets to all OCHA
program tenants.
11-23
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other
assistance
Not applicable. OCHA is designated as a High Performing PHA.
Discussion
Newport Beach continues to support OCHA in effective administration of its limited affordable housing
resources. The City also continues to work with OCHA to include the residents with Section 8 Housing Choice
Vouchers in the federally funded programs administered by the City, including any homeownership programs.
11-24
AP -65 Homeless and Other Special Needs Activities - 91.220(i)
Introduction
The City will invest CDBG funds during the 2021-2022 program year to address high priority needs identified
in the 2020-2024 Consolidated Plan including preventing homelessness and providing public services to
homeless populations.
Homelessness Prevention Services
According to the results of the most recent data available from the bi-annual Point -In -Time Homeless Count
(PIT Count) held on January 22, 2019, on any given night in Orange County, approximately 6,860 people are
homeless. To address incidences of homelessness in Newport Beach and to prevent extremely -low income
Newport Beach families from becoming homeless, the City places a high priority on programs that work to
prevent homelessness or rapidly assist homeless individuals living in the community. To address this need, the
City will support CDBG public service activities that help prevent homelessness and that provide a structured
path to stable housing for individuals and families who become homeless.
Services for Residents with Special Needs
Analysis of available data and consultation with organizations providing services for special needs populations
revealed a need for a range of additional services including, but not limited to, those concerned with domestic
violence, human trafficking, mental disabilities, physical disabilities, developmental disabilities, substance
abuse/alcoholism and HIV/AIDS that may be addressed by non-profit organizations. Non-profit organizations
currently exist to fulfill some of these needs of individuals. Organizations such as Human Options, an Orange
County -based non-profit that provides assistance to individuals experiencing domestic violence. Laura's House
provides emergency shelter to women and children fleeing domestic violence situations. Radiant Health Centers
provides services for those with HIV/AIDS such as free HIV and Hepatitis C testing.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching
out to homeless persons (especially unsheltered persons) and assessing their individual needs
To reach out to unsheltered homeless persons and assess their individual needs for the purpose of connecting
them with available emergency shelter and transitional housing resources, the City of Newport Beach, through
its Planning Division will provide information and referrals — primarily to 2-1-1 Orange County. Additionally,
to reduce and end homelessness, the City of Newport Beach will provide CDBG public service funds to the
following activities:
• Families Forward: Housing Program (12 people)
• Newport Beach Motel Voucher Program (13 people)
11-25
Addressing the emergency shelter and transitional housing needs of homeless persons
To address the emergency shelter and transitional housing needs of homeless persons, the City supports the
Families Forward Housing Program that provides transitional housing, counseling, and case management to
families at risk of homelessness. Each year, Families Forward serves approximately 12 additional unduplicated
people because of CDBG funding. In addition, the City will support a City -run motel voucher program to assist
13 homeless individuals.
Other organizations in the Continuum of Care (CoC) addressing the emergency shelter and transitional housing
needs of homeless persons include City Net, Orange Coast Interfaith Shelter, Orange County Rescue Mission
and WISEPlace.
Helping homeless persons (especially chronically homeless individuals and families, families with children,
veterans and their families, and unaccompanied youth) make the transition to permanent housing and
independent living, including shortening the period of time that individuals and families experience homelessness,
facilitating access for homeless individuals and families to affordable housing units, and preventing individuals
and families who were recently homeless from becoming homeless again.
To address the needs of homeless families, families with children, veterans and their families, the City supports
the Families Forward Housing Program, which provides transitional housing, counseling, and case management
to families at risk of homelessness. Each year, Families Forward serves approximately 12 unduplicated people
through its transitional housing program. When paired with financial counseling, career coaching and other
available case management services, Families Forward makes certain that families are ready to succeed in their
transition to permanent housing.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income
individuals and families and those who are: being discharged from publicly funded institutions and systems of
care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections
programs and institutions); or, receiving assistance from public or private agencies that address housing, health,
social services, employment, education, or youth needs
The Orange County CoC Ten Year Plan to End Homelessness included a goal to establish countywide
protocols and procedures to prevent people from being discharged from public and private institutions of care
into homelessness that will help decrease the number of persons being discharged into homelessness. The
CoC is seeking improve coordination among publicly and privately funded institutions of care and local service
agencies in the County of Orange in order to decrease the number of persons being discharged into
homelessness annually.
City Net is an organization that coordinates outreach among homeless service providers in the county with
vulnerable homeless neighbors. City Net collects data for a Homeless Services Dashboard Report with frequent
11-26
meetings on how to improve public services that enables organizations in Newport Beach to better coordinate
their efforts and leverage key synergies.
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional
strategies carried out locally by government agencies and a wide variety of community-based organizations and
faith -based groups. Consistent with this approach, the City of Newport Beach supports the efforts of Orange
County Continuum of Care (CoC) and its member organizations that address homelessness throughout
Orange County. In alignment with this strategy, the City will use CDBG funds to support local service providers
with programs to prevent homelessness and to expand the supply of affordable housing in Newport Beach
for low- and moderate -income residents.
Discussion
The City of Newport Beach considers ending and preventing homelessness a high priority and will support
CDBG public service activities that help prevent homelessness and that provide a structured path to stable
housing for individuals and families who become homeless.
11-27
AP -75 Barriers to affordable housing - 91.220(j)
Introduction:
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development
or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage
requirements, environmental protection, cost of land and availability of monetary resources. Barriers to
affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are
lawful and impediments to fair housing choice are usually unlawful.
Based on information gathered during community meetings, the Consolidated Plan Needs Assessment Survey,
the 2014-2021 Housing Element and market analysis, the primary barriers to affordable housing in Newport
Beach are housing affordability and the lack of monetary resources necessary to develop and sustain affordable
housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and
insufficient resources are available to increase the supply of affordable housing to meet demand.
For low- and moderate -income households, finding and maintaining decent affordable housing is difficult due
to the high cost of housing in Newport Beach and throughout the region in general. Over 20 percent of the
City's 38,075 households experience a cost burden or severe cost burden, meaning that they pay more than 30
or 50 percent of their income for housing, respectively. Consistent with available data, responses to the
2020-2024 Consolidated Plan Needs Assessment Survey indicate a high need for additional affordable housing
in Newport Beach.
Actions 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
In the development of the 2014-2021 Housing Element, the City evaluated significant public policies affecting
affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building
codes, fees and charges and growth limitations. Based on this evaluation, the City determined that it has taken
all appropriate and necessary steps to ameliorate the negative effects of public policies that may have been a
barrier to affordable housing. Moreover, the City will continue to use its Affordable Housing Trust Fund to
fund future affordable housing projects. These public policies will also be evaluated for the 2021-2029
Housing Element and new policies may be introduced.
Discussion:
To address housing affordability and the lack of monetary resources for affordable housing, the City will invest
Affordable Housing Trust Fund resources to incentivize the development of affordable housing during the five-
year period of the Consolidated Plan. In addition, the City will continue to work with the County and refer
low- and moderate -income residents for participation in their Housing Rehabilitation Program. City Net has
11-28
supported resident referrals by coordinating connections between low- and moderate -income residents and
applicable support networks.
11-29
AP -85 Other Actions - 91.220(k)
Introduction:
In the implementation of the 2021-2022 Annual Action Plan, the City will invest CDBG resources to address
obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional
structure and enhance coordination between public and private social service agencies.
Actions planned to address obstacles to meeting underserved needs
The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack of
funding from federal, state, and other local sources, and the high cost of housing that is not affordable to low-
income people. To address these obstacles, the City is investing CDBG funds through the 2021-2022 Action
Plan in projects that provide assistance to those with special needs, projects that prevent homelessness, and
strengthen economic opportunities for low- and moderate -income residents. To address underserved needs,
the City is allocating 100 percent of its non -administrative CDBG investments for program year 2021-2022 to
projects and activities that benefit low- and moderate -income people or people presumed under HUD
regulations to be low- and moderate -income.
Actions planned to foster and maintain affordable housing
In the implementation of the 2021-2022 Annual Action Plan, the City will continue to look at alternate funding
sources and programs to preserve and maintain existing affordable housing such as the County's Residential
Rehabilitation Program.
Actions planned to reduce lead-based paint hazards
The City of Newport Beach does not currently implement a Residential Rehabilitation Program, however if
they are to implement such a program in the future, the City will disseminate brochures provided by the U.S.
Environmental Protection Agency to all applicants as part of the transmittal of the program application. Any
unit receiving assistance through the program that was built prior to January 1, 1978 will be tested for lead-
based paint. If lead-based paint is present, appropriate abatement procedures are implemented as part of the
rehabilitation contract consistent with the requirements of 24 CFR Part 35.
Actions planned to reduce the number of poverty -level families
The implementation of activities funded with other non-CDBG federal, state and local resources will support
the City's effort in reducing the number of poverty -level families by:
• Supporting activities that expand the supply of housing that is affordable to low- and moderate -
income households, including investment of the City's Housing Trust Fund resources and using the
State Density Bonus law to incentivize the development of additional affordable housing units;
11-30
• Supporting a continuum of housing and public service programs to prevent and eliminate
homelessness;
• Supporting housing preservation programs that ensure low income households have a safe, decent
and appropriate place to live; and
• Supporting public services through various nonprofits funded by CDBG that serve the community's
youth, seniors, families and those with special needs.
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number
of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start
provide a pathway out of poverty for families who are ready to pursue employment and educational
opportunities. Additionally in California, the primary programs that assist families in poverty are CaIWORKs,
CalFresh (formerly food stamps) and Medi -Cal. Together, these programs provide individuals and families with
employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such
as housing, nutrition and transportation. Other services are available to assist persons suffering from substance
abuse, domestic violence and mental illness.
Actions planned to develop institutional structure
The institutional delivery system in Newport Beach is high -functioning and collaborative — particularly the
relationship between local government and the nonprofit sector comprised of a network of capable
community-based organizations that are delivering a full range of services to residents. Organizations such as
City Net coordinate housing support groups to increase coordination and leverage key synergies to improve
resident outcomes. Affordable housing development and preservation activities will be carried out by the
Planning Division of the Community Development Department in partnership with other agencies. Public
service activities will be carried out by nonprofit organizations to achieve the Strategic Plan goals. The Planning
Division and the Engineering Department will work together with contractors to implement public facility
improvement projects.
One of the keyways the City is developing and expanding institutional structure to meet underserved needs is
by funding a wide variety of services targeted to seniors, special needs populations and individuals or families at
risk of homelessness with CDBG public service grants.
Actions planned to enhance coordination between public and private housing and social service agencies
To enhance coordination between public and private housing and social service agencies, the City will continue
consulting with and inviting the participation of a wide variety of agencies and organizations involved in the
delivery of housing and supportive services to low- and moderate -income residents in Newport Beach.
11-31
Discussion
In the implementation of the 2020-2024 Consolidated Plan, the City will invest CDBG resources to address
obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional
structure and enhance coordination between public and private social service agencies.
11-32
AP -90 Program Specific Requirements - 91.220(1)(1,2,4)
Introduction:
In the implementation of programs and activities under the 2021-2022 Annual Action Plan, the City of Newport
Beach will follow all HUD regulations concerning the use of program income, forms of investment, overall low -
and moderate -income benefit for the CDBG program.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(1)(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
Other 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%
11-33
Discussion:
In the implementation of programs and activities under the 2021-2022 Annual Action Plan, the City of Newport
Beach will follow all HUD regulations concerning the use of program income, forms of investment, overall low -
and moderate -income benefit for the CDBG program.
11-34
2021/2022 ANNUAL ACTION PLAN
JULY 1, 2021 THROUGH JUNE 30, 2021
APPENDIX A
Citizen Participation
11-35
rc``
11
\Lr�FORN%
2021/2022 ANNUAL ACTION PLAN
JULY 1, 2021 THROUGH JUNE 30, 2022
APPENDIX B
SF 424 Forms and Certifications
11-36