HomeMy WebLinkAbout16 - Community Development Block Grant Program Year 2023-24, Consolidated Annual Performance and Evaluation ReportQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
September 10, 2024
Agenda Item No. 16
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development
Director - 949-644-3232, sjurjis@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator - 949-644-
3236, Iwooding@newportbeachca.gov
TITLE: Community Development Block Grant Program Year 2023-24,
Consolidated Annual Performance and Evaluation Report
After the close of every fiscal year, the U.S. Department of Housing and Urban
Development (HUD) requires the City of Newport Beach to prepare and submit a
Consolidated Annual Performance and Evaluation Report (CAPER) regarding the
Community Development Block Grant (CDBG) program. The CAPER is an explanation
of the annual funding issued to CDBG program subrecipients and describes the progress
in meeting the goals established in the 2023-24 Annual Action Plan that was approved
by the City Council on April 25, 2023. The report must be submitted to HUD by the end
of September 2024. The Program Year 2023-24 CAPER was prepared and made
available for the HUD -required 15-day public review and comment period, which began
on August 24, 2024, and concludes with the public hearing before the City Council on
September 10, 2024.
RECOMMENDATIONS:
a) Hold a public hearing to receive comments on the Program Year 2023-24 CAPER;
b) Find this activity 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 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;
c) Approve the Program Year 2023-24 CAPER; and
d) Authorize the City Manager or her designee to submit the Program Year 2023-24
CAPER to HUD.
DISCUSSION:
On August 24, 2024, the City published a notice in the Daily Pilot informing the general
public that the Draft 2023-24 CAPER (Attachment A) would be available for review and
comment from August 24, 2024 to September 10, 2024.
16-1
Community Development Block Grant Program Year 2023-24,
Consolidated Annual Performance and Evaluation Report
September 10, 2024
Page 2
The public was informed of the opportunity to provide oral and/or written comments on
the CAPER. To date, one public comment has been received (Attachment B), and will be
included in the final report submitted to HUD. Additionally, the CDBG Citizen Participation
Plan requires that a public hearing be held to receive comments from interested parties
regarding the CAPER. This public hearing addresses the CDBG citizen participation
requirement.
The program year 2023-24 CDBG allocation from HUD was $399,099. Under the
2020 federal stimulus plan — CARES Act, the City received an additional $960,403 to fund
activities that prevent, prepare for, or respond to the impacts of COVID-19 (CDBG-CV
funds). Pursuant to a Substantial Amendment to the 2020-21 Annual Action Plan, a
portion of the CDBG-CV funds were budgeted to the Be Well OC Mobile Response
Program. Together with $400,352 of unallocated CDBG funds from prior years and the
CDBG-CV funds, the City programmed a total of $1,584,394 in CDBG funds for the
program year. Table 1 below shows the annual CDBG budget and expenditures.
Table 1
FY2023-24
Program Categories
Budget
Expenditures
Public Service Activities
$ 747,078
$719,636
Homelessness Prevention Services
$ 29,864
$ 28,364
Capital Improvement Program
$ 659,768
$ 0*
Program Administration &
Fair Housing
$ 147,684
$143,095*
Total
$1,584,394
$891,095
'Note: The funding for the `Homeless Shelter: Modifications to Shelter' and `San Miguel Park ADA
Upgrades' public facilities projects will carry forward and be drawn in the 2024-25 program year, as needed.
Any unspent program funds will be carried forward into the new fiscal year and allocated to eligible CDBG
activities.
The accomplishments for this year include, but are not limited to, a mobile meals program
serving 90 senior residents, fair housing services for 128 residents, a motel voucher
program for homeless individuals serving 19 residents, and a homeless prevention
program that assisted two Newport Beach families with vouchers, eight with
homelessness prevention support, and an additional 28 families with food pantry support.
A more detailed explanation of accomplishments can be found in the attached draft
2023-24 CAPER.
Additionally, the Be Well OC Mobile Response Program served 550 individuals during
Fiscal Year 2023-24. The program has approximately $31,607 in unspent CDBG-CV
funds, which will carry forward to pay for services for July and August of 2024. The
City Council decided not to extend the Be Well OC Mobile contract beyond August 2024.
FISCAL IMPACT:
This item is a report on accomplishments for the past year, there is no fiscal impact related
to this item.
16-2
Community Development Block Grant Program Year 2023-24,
Consolidated Annual Performance and Evaluation Report
September 10, 2024
Page 3
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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 15-day public review and comment period, a
notice of this public hearing was published in the Daily Pilot on August 24, 2024. 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).
ATTACHMENTS:
Attachment A — Draft Consolidated Annual Performance and Evaluation Report
Attachment B — Public Comments
16-3
Attachment A
Draft Consolidated Annual Performance and Evaluation Report (CAPER)
for the 2023-24 Program Year
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City of Newport Beach
Program Year 2023-2024
Consolidated Annual Performance
and Evaluation Report
(CAPER)
September 10, 2024
FDT
16-5
Table of Contents
CR-05 - Goals and Outcomes.......................................................................................................... 1
CR-10 Racial and Ethnic Composition of (person/households/families) Assisted .......................... 7
CR-15 Resources and Investments.................................................................................................. 8
CR-20 Affordable Housing............................................................................................................. 11
CR-25 Homeless and Other Special Needs....................................................................................17
CR-30 Public Housing.....................................................................................................................22
CR-35 Other Actions.......................................................................................................................24
CR-40 Monitoring...........................................................................................................................29
CR-45 CDBG....................................................................................................................................31
Appendices
AppendixA — Public Notices........................................................................................................... A
Appendix B — Summary of Citizen Participation Comments........................................................... B
AppendixC— IDIS Reports............................................................................................................... C
16-6
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.
91.520(a)
The City of Newport Beach has prepared the 2023-2024 Consolidated Annual Performance and
Evaluation Report (CAPER) as required by the U.S. Department of Housing and Urban
Development (HUD) which describes the use of federal Community Development Block Grant
(CDBG) funds during the fourth program year of the 2020-2024 Consolidated Plan period,
covering July 1, 2023, to June 30, 2024.
The City receives CDBG funds from HUD on a formula basis each year, and in turn, implements
projects and awards grants to nonprofit, for -profit or public organizations for projects in
furtherance of the adopted Consolidated Plan. The CDBG program generally provides for a range
of eligible activities for the benefit of low- and moderate -income Newport Beach residents.
For the 2023-2024 program year, the City received $399,099 of CDBG funds from HUD, and
allocated $400,352 from prior years' resources. This investment of CDBG funds was a catalyst for
positive change in the community. Together with other federal, state and local investments, HUD
resources allowed the City and its partners to:
• Provide fair housing services to 128 residents
• Provide homelessness prevention and assistance services to 27 residents
• Provide public services such as home delivered meals to 90 senior residents
Under the 2020 federal stimulus plan - CARES Act, the City received $960,403 in CDBG-CV funds
to be used for activities that prevent, prepare for, or respond to the impacts of COVID- 19. The
City Council allocated those funds to an economic development program to assist 30 small
businesses suffering from hardship due to COVID- 19, and to Be Well OC Mobile Response Clinic
to help address the increase in behavioral and mental health crisis exacerbated by COVID-19. This
year, the HUD resources allowed the City to:
• Connect 550 people experiencing homelessness (and other residents) to available resources
Table 1 provides a summary of the five-year and one-year accomplishments for the period ending
June 30, 2024, arranged by each of the Strategic Plan Goals included in the 2020-2024 Strategic
Plan of the Consolidated Plan.
1
16-7
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain,
if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Table 1- Accomplishments — Program Year & Strategic Plan through June 30, 2024
5-Year Strategic Plan
2023-2024 Program Year No. 4
2023-2024
Unit of
Percent
Percent
Goal
Category
Indicator
Amount
Measure
Expected
Actual
Expected
Actual
Complete
Complete
Fair Housing
Affordable
CDBG:
Other
Other
625
511
81.76%
125
128
102%
Services
Housing
$12,000
Homelessness
Homeless
Prevention
CDBG:
Homelessness
Persons
120
133
110%
25
27
108%
$29,864
Prevention
Assisted
Services
Non -Housing
CDBG:
Public Facility or
Public
Community
$659,768
Infrastructure Activities
Project
1
0
0%
2
0
0%
Facilities and
Development
other than
Section 108
Low/Moderate Income
Debt Service
Housing Benefit
Other
Other
3
3
100%
0
0
0%
Public
CDBG:
Public service activities
Persons
Services
Non -Housing
$30,000
other than
Assisted
500
544
108%
100
90
90%
Community
Low/Moderate Income
Development
Housing Benefit
CDBG-CV:
1000
1987
198%
500
550
110%
$717,078
Economic
Economic
CDBG:
Non -Housing
Development
Development
$0
Community
Business
15
2
13%
0
0
N/A
Development
Assisted
CDBG-CV:
$0
20
30
150%
0
0
N/A
Planning
Planning and
CDBG:
Administration
$67,819
Other
Other
5
4
80%
1
1
100%
CDBG-CV:
$14, 265
City of Newport Beach
2023-2024 CAPER
16-8
Assess how the jurisdiction's use of funds, particularly CDBG, addresses the priorities and
specific objectives identified in the plan, giving special attention to the highest priority
activities identified.
During the program year, the City and local nonprofit organizations made progress on several
2023-2024 activities. All CDBG funded activities addressed specific high priority objectives
identified in the 2020-2024 Consolidated Plan.
The majority of CDBG funds available in the 2023-2024 Action Plan were allocated to public
service activities carried out by nonprofit organizations during the Program Year including fair
housing services, homelessness prevention services, and other public services benefitting low -
and moderate -income residents.
All the activities funded during the program year are listed in Figure 1, including the amount of
CDBG funds allocated to the activity and the amount spent as of June 30, 2024. Figure 2 provides
the numeric accomplishment goal and the accomplishments as of June 30, 2024.
Figure 1— Use of CDBG and CDBG-CV Funds
Strategic Plan Goal / Activity Source Allocation Spent through 6/30/24 % Spent
1. Fair Housing Services
Fair Housing Services CDBG $12,000 $12,000 100.00%
2. Public Services
Age Well Senior Services: Home Delivered CDBG
$30,000
$30,000 100.00%
Meals
Be Well OC CDBG-CV
$717,078
$689,636 96%
3. Homelessness Prevention Services
Families Forward Housing Program CDBG
$15,000
$15,000 100%
Newport Beach: City Motel Voucher CDBG
$14,864
$13,364 89.9%
Program
4. Public Facilities and Section 108 Debt
Service
Homeless Shelter: Modification to Shelter
CDBG
$200,000
$0
0%
Bonita Creek Community Center Remodel*
CDBG
$50,000
$0
0%
Balboa Pier EV Charging Stations & ADA*
CDBG
$30,000
$0
0%
Curb Ramps*
CDBG
$150,000
$0
0%
San Miguel Park ADA Upgrades
CDBG
$229,768
$0
0%
S. Planning and Administration
CDBG Administration
CDBG
$67,819
$67,395
99.3%
CDBG-CV Administration
CDBG-CV
$67,865
$63,700
93.8%
Total for all Goals:
*Note: These projects will not be using CDBG funds.
$1,584,394 $891,095 65.8%
City of Newport Beach
2023-2024 CAPER
9
16-9
Figure 2 — Program Year Accomplishments by Strategic Plan Goal
Strategic Plan Goal / Activity
1. Fair Housing Services
Fair Housing Services
2. Public Services
Age Well Senior Services: Home Delivered Meals
Be Well OC
3. Homelessness Prevention Services
Families Forward Housing Program
Newport Beach: City Motel Voucher Program
4. Public Facilities and Section 108 Debt Service
Homeless Shelter: Modification to Shelter
Bonita Creek Community Center Remodel
Balboa Pier EV Charging Stations & ADA
Curb Ramps
San Miguel Park ADA Upgrades
S. Planning and Administration
CDBG Administration
CDBG-CV Administration
Unit of Measure I Expected Actual
People
125
128
People
100
90
People
500
550
People
15
8
People
10
19
Project
1
0
Project
1
0
Project
1
0
Project
1
0
Project
1
0
Other 1 1
Other 1 1
City of Newport Beach
2023-2024 CAPER
n
16-10
CR-10 - Racial and Ethnic composition of families assisted
Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
Table 2 — Assistance to Racial and Ethnic Population by Source of Funds
CDBG
White
766
Black or African American
10
Asian
8
American Indian/Alaskan Native/Black or African
American
1
Other Multi -Racial
10
Total
795
Hispanic
127
Non -Hispanic
668
*Note: The data in this table is supplied by HUD's database and reports. The figures in this
table represent the sum of the reported number of people, families, households, or housing
units reported during the fiscal year, without regard to the number of people in each family,
household or housing unit. In addition, the data in this table reflects 100 percent completed
activities only.
Narrative
Table 2 provides an aggregate of race and ethnicity data for the combined number of people,
families, households or housing units served during the program year based on accomplishment
data from all CDBG activities reported in HUD's Integrated Disbursement and Information System
(IDIS).
City of Newport Beach 2023-2024 CAPER
16-11
CR-15 - Resources and Investments 91.52O(a)
Identify the resources made available
Table 3 — Resources Made Available
Resources Made
Amount Expended
Source of Funds
Available
2023-2024
During Program Year
CDBG
$399,099
$137,759
Prior Year CDBG
$400,352
$0
CDBG-CV
$193,717
$162,109
Narrative
The CDBG and CDBG-CV resources made available included $399,099 of 2023-2024 formula
grant, $400,352 of prior year unallocated CDBG funds, and $193,717 of CDBG-CV funds. The total
amount expended during this program year was $299,868.
Identify the geographic distribution and location of investments
Table 4 — Identify the geographic distribution and location of investments
Target Area
Planned Percentage of
Actual Percentage of
Narrative
Allocation
Allocation
Description
Citywide
100%
100%
Citywide Area
Narrative
During 2023-2024, the City expended CDBG funds in a manner consistent with the National
Objectives of the program. One hundred percent of the CDBG funds expended were for activities
that benefit low to moderate income persons. The percentage includes Administration and
Planning activities.
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 special needs populations
such as individuals recovering from substance abuse.
City of Newport Beach 2023-2024 CAPER 8
16-12
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds),
including a description of how matching requirements were satisfied, as well as how any
publicly owned land or property located within the jurisdiction that were used to address the
needs identified in the plan.
The City used CDBG funds to leverage appropriate state, local and private resources secured by
each nonprofit organization providing public services. In addition, the City will seek to leverage
other sources including but not limited to those listed below and as outlined in the Consolidated
Plan.
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
During the 2023-2024 Program Year, the City's nonprofit public service organizations used CDBG
funds in conjunction with over $8.4 million of other federal, state, and local funds to implement
their programs.
Matching Requirements
The CDBG program does not require matching funds.
City of Newport Beach 2023-2024 CAPER 9
16-13
Publicly Owned Land or Property
The City does not own any publicly owned land or property that used CDBG funds to address
needs identified in the 5-year Consolidated Plan and Action Plan.
City of Newport Beach 2023-2024 CAPER 10
16-14
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number
and types of families served, the number of extremely low-income, low-income, moderate -
income, and middle -income persons served.
Table 5- Number of Households Supported
One -Year
Actual
Goal
Number of homeless households to be provided
0
0
affordable housing units
Number of non -homeless households to be provided
0
0
affordable housing units
Number of special -needs households to be provided
0
0
affordable housing units
Total
0
0
Table 6 - Number of Households Supported
One -Year
Actual
Goal
Number of households supported through rental
0
0
assistance
Number of households supported through the
0
0
production of new units
Number of households supported through the rehab
0
0
of existing units
Number of households supported through the
0
0
acquisition of existing units
Total
0
0
City of Newport Beach 2023-2024 CAPER 11
16-15
Discuss the difference between goals and outcomes and problems encountered in meeting
these goals.
Two high priority affordable housing needs were identified in the 2020-2024 Consolidated Plan.
The City of Newport Beach will continue to use non-CDBG funding sources such as the local
Affordable Housing Fund to address the following goals:
Expand the Supply of Affordable Housing
Based on evaluation of 2013-2017 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, 8,725 are cost burdened households — meaning households paying
more than 30 percent of their income for housing. Additionally, 6,580 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 4,580 severely cost burdened households,
3,715 are renters. Of those severely cost burdened renter households, 3,805 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.
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 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. 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.
In addition, the City addressed affordable housing needs through fair housing services to ensure
equal access to housing opportunities to low- and moderate -income people and by providing
support to homelessness prevention through the following activities:
• Fair Housing Foundation — Fair Housing Services assisted 128 people
This agency addressed the priority need of ensuring equal access to housing
opportunities. They dealt with intake of discrimination complaints and investigations,
provided education and outreach activities, landlord/tenant counseling, mediations,
and affirmatively further fair housing.
• Families Forward — Housing Program assisted 8 people received prevention and stabilization
support. Additionally, they provided healthy meals for 18 families/ 60 individuals in the
fourth quarter by utilizing their Food Pantry. This year, they have served two families with a
voucher that self -reported their residence in Newport Beach before homelessness
started. Additionally, 10 families (35 individuals) have received Food Pantry support.
City of Newport Beach 2023-2024 CAPER 12
16-16
In an effort to identify more Newport Beach families that needed prevention and stabilization
services, Families Forward significantly increased the amount of outreach to Newport Beach.
This included building on our already existing outreach efforts and several new approaches.
For example, they sent a letter to any family or individual from Newport Beach who received
food pantry services since July. This letter invited them to call or come into their offices to
meet with a Family Navigator, who would assess their financial need and determine if they
were in need of and eligible for any other form of financial assistance.
Subrecipient's Community Resource Coordinator began attending several meetings in and
near Newport Beach, including Newport Mesa's resource monthly meeting. She also attended
a CalOptima Resource Fair in June in neighboring Costa Mesa, with a special mandate to look
out for and engage with any Newport Beach residents. They also connected with school
liaisons in the Newport Beach school system and reached out to partners including SPIN,
Melinda Hoag Smith Center, Newport Mesa Family Resource Center for any referrals. These
have been targeted touch bases specifically to share information on our Newport Beach grant
and seeking referrals. Additionally, they shared about their programs in general. These were
1:1 meetings between their team and staff at the various locations except the Newport Mesa
monthly meeting, this is a meeting with several partners that provide services in the Newport
Mesa area. As always, the intake specialist and prevention manager looked closely through all
service requests for any people with Newport Beach ties.
Discuss how these outcomes will impact future annual action plans.
The outcomes of this priority need will not impact future annual action plans since the City will
use other source of funds for affordable housing programs as indicated in the Consolidated Plan.
Include the number of extremely low-income, low-income, and moderate -income persons
served by each activity where information on income by family size is required to determine
the eligibility of the activity.
Table 7 — Number of Persons Served
Number of Persons Served
CDBG Actual
Extremely Low-income
615
Low-income
19
Moderate -income
117
Non Low Moderate -income
44
Total
795
Narrative Information
City of Newport Beach 2023-2024 CAPER 13
16-17
The Strategic Plan identified two high priority needs to expand the supply of affordable housing
and preserve the supply of affordable housing. The Consolidated Plan indicated that CDBG funds
will not be used for affordable housing. The City will continue to use other funding sources and
methods to create affordable housing opportunities such as the Affordable Housing Fund and the
State Density Bonus law. In addition, as outlined in the adopted 2020-2024 Consolidated Plan,
the City will continue to provide CDBG funds to support fair housing services, homelessness
prevention programs and public services.
The City continues to work to expand the supply of affordable housing through implementation
of Density Bonuses, approved projects are summarized as follows:
• In 2016, the City granted a Density Bonus that will result in 455 total units at
Uptown Newport, of which 92 units will be affordable to very low-income
households. The affordable units became available in mid-2019.
• In 2017, the Newport Crossings Mixed -Use project, a 350-dwelling unit mixed -use
development, was submitted within the Airport Area under the Residential Overlay
of the Newport Place Planned Community. In exchange for providing 78 units
affordable to low-income households, the developer requested a density bonus of
91 units (35 percent bonus), an incentive to allow for flexibility with unit mix, and
a development waiver of building height. The Environmental Impact Report (EIR)
was certified, and the project was approved by the Planning Commission on
February 21, 2019. The project is currently in plan check review for building permit
issuance.
• In December 2019, an application was submitted for a new mixed -use development
located at 2510 West Coast Highway that includes the development of 36 dwelling
units, 3 of which would be restricted for very low-income households. In exchange
for providing the very low-income units, the developer has requested a density
bonus of 9 units (35 percent bonus) and development waiver of building height.
The project was approved by the Planning Commission in February of 2021 and the
City Council in July of 2021. The project is currently in plan check review for building
permit issuance.
• In December of 2014, an application for the Newport Airport Village was filed,
requesting approval of a General Plan Amendment, Planned Community
Development Plan (PCDP), and a Development Agreement that would allow for the
future redevelopment of the 16.46-acre propertywith up to 444 dwelling units (329
base units and 115 density bonus units) and 297,572 square feet of retail, office,
and other airport supporting uses. Approvals were granted by City Council on
September 22, 2020. The property owner is actively seeking a builder to implement
and construct the project.
City of Newport Beach 2023-2024 CAPER 14
16-18
• In April of 2020, an application was submitted for Residences at 4400 Von Karman,
requesting the rezoning of nonresidential property to mixed -use land uses, including
up to 260 residential units plus an allowance for density bonus units up to a total of
312 units (13 Very -Low Income units). The project was approved by the City Council
in February 2021.
• In June of 2021, an application was submitted for a new 193-unit apartment complex
located at 1300 Bristol Street. The project consists of 77 base units (including 24 very -
low -income units), 77 transfer of development units, and a density bonus of 39 units.
The project was recommended for approval by the Planning Commission on February
17, 2022, and approved by the City Council on March 22, 2022.
• In November of 2022, an application was submitted for a new 282-unit apartment
complex located at 1600 Dove Street. The project consists of 188 base units (including
28 very -low-income units), and a density bonus of 94 units. The project was
recommended for approval by the Planning Commission on May 23, 2024, and is
scheduled for City Council consideration in August and September 2024.
• In December 2022, an application was submitted for a new 229-unit apartment
complex located at 1400 Bristol Street. The project consists of 153 base units (including
23 low-income units), and a density bonus of 76 units. The project was recommended
for approval by the Planning Commission on December 7, 2023, and approved by the
City Council on April 23, 2024.
• In February 2023, an application was submitted for a new 78-uit condominium
complex located at 1401 Quail Street. The project consists of 52 base units (including
16 low-income units), and a density bonus of 26 units. The project was recommended
for approval by the Planning Commission on December 21, 2023, and approved by the
City Council on April 23, 2024.
• In November 2023, entitlements to refine and implement a portion of the Newport
Airport Village project were submitted for 4540, 4570, 4600, 4630 Campus Drive and
4647 MacArthur Boulevard. The Planning Commission reviewed and approved the
project on April 18, 2024.
As a result of the City's former Inclusionary Housing Ordinance, the City collected approximately $4.2
million in the Affordable Housing Fund. The fees were paid by developers of residential housing in -
lieu of providing affordable units. The purpose of the Affordable Housing Fund is to construct,
rehabilitate or subsidize affordable housing or assist other governmental entities, private
organizations, or individuals to provide or preserve affordable housing. On April 29, 2015, the City
published a Request for Proposals for the use of the Affordable Housing Fund toward affordable
housing development or programming. The City received three proposals discussed below that
ultimately were recommended for funding from an evaluation panel and the City's Affordable
Housing Task Force.
City of Newport Beach 2023-2024 CAPER 15
16-19
• Newport Shores Project: An agreement with Community Development Partners granting
$1,975,000 to assist with the acquisition, rehabilitation, and conversion of an existing 12-
unit apartment building located at 6001 Coast Boulevard for affordable housing. This
project opened as of March 2018.
• Senior Home Repair Program: The City granted up to $600,000 to Habitat for Humanity
Orange County for the purpose of establishing a critical home repair program for lower -
income seniors. This program is active, has approved fifteen project applications,
completed fourteen projects, and is continuing to accept applications.
• Seaview Lutheran Plaza Rehabilitation: The City Council approved an agreement granting
$800,000 to Seaview Lutheran Plaza to rehabilitate 100 apartment bathrooms to include
ADA toilets, removal of tubs, installation of new showers with safety grab bars, new
flooring, and paint. The project was completed during the 2017-2018 Program Year.
• Costa Mesa Bridge Shelter: The City of Costa Mesa, in partnership with the City of
Newport Beach, opened a bridge shelter in May 2021. With 72 beds, the facility provides
temporary shelter and support services to individuals experiencing homelessness in
Newport Beach and Costa Mesa, with the goal of assisting those individuals to find
permanent supportive housing in the area. The shelter is operated by a case management
provider that helps clients locate appropriate permanent housing, assists with job
searches, and other on -site services. The City contributed $1.4 million to the initial
construction costs and will spend $1 million per year to support ongoing operational
costs. The shelter has assisted dozens of homeless individuals and 14 people have been
housed from Newport Beach. The facility has been expanded and Newport Beach has 5
additional dedicated beds, at a cost of $1.25 million per year for operations. Newport
Beach will also have access to 5 additional beds, based on availability, at a daily rate of
$155.
• Travelodge motel at 1400 Bristol St. in Costa Mesa: City of Newport Beach will be
participating in a major regional project to create permanent supportive housing for those
experiencing homelessness and at risk of becoming homeless. The project is a partnership
between the County of Orange, the cities of Newport Beach and Costa Mesa and
developer American Family Housing, funded largely by a State grant. California
Department of Housing and Community Development (HCD) announced an award of $29
million in Homekey grant funds toward the $45 million total project cost. Newport Beach
will contribute $3 million in the form of a 55-year, three percent interest loan. American
Family Housing will convert an aging Travelodge motel into a residential community of 78
affordable apartment homes. Construction is expected to take one year, and the
apartments will be leased by the end of 2025.
City of Newport Beach 2023-2024 CAPER 16
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CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)
Evaluate the jurisdiction's progress in meeting its specific objectives for reducing and ending
homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs
As stated in prior years, the City of Newport Beach will continue to support the efforts of Orange
County Continuum of Care (CoC) and its member organizations that address homelessness
throughout Orange County.
According to the Ten -Year Plan to End Homelessness in Orange County adopted in 2012 (Ten -
Year Plan), the CoC is in the process of implementing several regional strategies that will enhance
local coordination to more effectively assist people in need. To rapidly identify and assess people
experiencing homelessness, the CoC is working to create regional homeless access centers that
will offer fully coordinated systems of outreach and will facilitate universal assessment, intake,
referral and transportation to resources. The CoC is also developing resources of information
(such as 2-1-1) to better serve individuals who are homeless or at risk of becoming homeless. In
addition, the CoC is working to implement a database using real time information from intake
and assessment that is housed in the Homeless Management Information System (HMIS).
Collectively these strategies will help minimize duplication of effort and better connect the most
vulnerable individuals and families, chronically homeless, and people at risk of becoming
homeless to appropriate resources.
The CoC utilizes the (CES) Coordinated Entry System that enables people to move through the
system faster by reducing the amount of time people spend moving from program to program.
Secondly, it reduces new entries into homelessness by offering prevention resources. Third, it
improves data collection and quality information to enable providing more accurate
information on what kind of assistance is needed.
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 homeless coordinator, homeless liaison police officer, and third -
party contractor partners provided information and referrals — primarilyto 2-1-1 Orange County.
Additionally, to reduce and end homelessness, the City of Newport Beach provided CDBG funds
for the following public service activities:
Families Forward — Housing Program assisted 8 people received prevention and
stabilization support. This agency helped address the priority need of preventing and
eliminating homelessness.
• City Motel Voucher Program — Assisted 19 people
The City of Newport Beach Motel Voucher program provides homeless Newport
Beach residents with financial assistance to stay in a motel, food, clothing, and
security deposits with the intention to bridge the gap between street level homeless
into permanent housing.
City of Newport Beach 2023-2024 CAPER 17
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Addressing the emergency shelter and transitional housing needs of homeless persons
The ultimate solution to ending homelessness is transitional to permanent housing closely
aligned with supportive services that ensure housing stability can be maintained. However,
because the demand for affordable housing far outpaces the region's supply, the CoC continues
to rely on its emergency and transitional housing system in order to address the immediate needs
of Orange County's homeless population.
2-1-1 CoC assists homeless residents in connecting with homeless prevention programs. 2-1-1
CoC maintains a list of homeless shelters and services in the region. City Net collects data on
homeless persons to better enable homeless service providers to fulfill their mission.
Additionally, Homeless Shelter Directory is a non-profit organization that provides a directory for
resources in the City of Newport Beach.
The CoC is improving the efficacy of emergency shelters and the access system until a year-round
permanent emergency shelter can be established to replace various seasonal emergency shelters
and the County's Armory Cold Weather Shelter program. The Cold Weather Shelter program
provides up to 400 beds for homeless along with showers, warm clothing, and free nutritious
meals during cold weather. These beds are located in Fullerton and Santa Ana.
For transitional housing, the CoC recognizes a need to maintain a level of transitional housing for
the target populations that benefit most from a staged approach to housing, such as mentally ill
and chronically homeless individuals. While the CoC continues to support transitional housing in
special circumstances, the CoC is currently examining ways to shorten stays in emergency
shelters and transitional housing so that resources may be used for rapid re -housing or placement
in permanent supportive housing.
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. In addition, the City supports a City -
run motel voucher program to assist 33 homeless individuals.
Costa Mesa Bridge Shelter: The City of Costa Mesa, in partnership with the City of Newport Beach,
opened a bridge shelter in May 2021. With 72 beds, the facility provides temporary shelter and
support services to individuals experiencing homelessness in Newport Beach and Costa Mesa,
with the goal of assisting those individuals to find permanent supportive housing in the area. The
shelter is operated by a case management provider that helps clients locate appropriate
permanent housing, assists with job searches, and other on -site services. The City contributed
$1.4 million to the initial construction costs and will spend $1 million per year to support ongoing
operational costs. The shelter has assisted dozens of homeless individuals and 8 people have
been housed from Newport Beach.
Other organizations in the CoC also address the emergency shelter and transitional housing needs
of homeless persons, including Orange Coast Interfaith Shelter, Orange County Rescue Mission
City of Newport Beach 2023-2024 CAPER 18
16-22
and WISEPlace.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: likely to become homeless after 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); and, receiving assistance from public or private agencies that address housing,
health, social services, employment, education, or youth needs
An individual or family is considered to be at -risk of becoming homeless if it experiences extreme
difficulty maintaining their housing and has no reasonable alternatives for obtaining subsequent
housing. Homelessness often results from a complex set of circumstances that require people to
choose between food, shelter, and other basic needs. Examples of common circumstances that
can cause homelessness include eviction, loss of income, insufficient income, disability, increase
in the cost of housing, discharge from an institution, irreparable damage, or deterioration to
housing, and fleeing from family violence.
Orange County's current CoC system encourages services aimed at reducing incidences of
homelessness for those receiving public assistance and individuals likely to become homeless
after being discharged from publicly funded institutions and systems of care, including:
• Emergency Rental and Utility Assistance: Short-term financial assistance to prevent
eviction and utility shut-off.
• Credit Counseling: Financial counseling and advocacy to assist households to repair credit
history.
• Legal/Mediation Services: Tenant -landlord legal/mediation services to prevent eviction.
• Food Banks and Pantries: Direct provision of food, toiletries, and other necessities.
• Transportation Assistance: Direct provision of bus vouchers and other forms of
transportation assistance.
• Clothing Assistance: Direct provision of clothing for needy families and individuals.
• Prescription/Medical/Dental Services: Direct provision of prescription, medical and
dental services.
• Workforce Development: Direct provision of job training services designed to develop and
enhance employment skills, as well as to help clients secure and retain living wagejobs.
• Information & Referral Services: Direct provision of 24-hour/7-days-a-week call center
services to provide health and human service information to at -risk populations.
• Recuperative care for homeless individuals who become ill or injured.
In addition, the City provided CDBG funds to nonprofit organizations to meet the goals of the
Consolidated Plan. The following is a detailed description of services provided by each
organization per activity and according to the Action Plan:
Families Forward — Housing Program
The Families Forward Housing Program transitions homeless families from crisis to stability and
self-sufficiency. Services include housing, counseling, food, career coaching, life -skills, education
City of Newport Beach 2023-2024 CAPER 19
16-23
and acquisition of permanent housing. Individualized self-sufficiency plans are developed with
case managers, and progress is monitored on a regular basis at monthly case management
meetings. Depending on financial capacity, families will pay 0-30 percent of their income in rent.
Transitional housing ranges from 1-24 months. Case managers conduct pre and post program
surveys to document this data. Additionally, services provided through this program are
mentioned through ClientTrack, HMIS-compliant client data system, at regular intervals. This
year, they have served two families with a voucher that self -reported their residence in Newport
Beach before homelessness started. Additionally, 8 individuals received prevention and
stabilization support.
City Motel Voucher Program
The City Motel Voucher Program provide motel rooms to bridge the gap between living on the
street and permanent supportive housing for individuals experiencing homelessness. Motel
rooms were secured to bridge the gap between living on the street and having access to available
shelter beds and/or detox/rehabilitation rooms. In addition, funds assist with the transition to
supportive housing including: clothing, food and travel to necessary housing -related
appointments. The Program assisted 19 people.
Be Well OC Mobile Response Program
Be Well OC help address the increase in behavioral and mental health crises exacerbated by
COVID-19. The Be Well Newport Beach team is prepared to help with a variety of non -emergency
and non -medical situations, which may include: mental health / behavioral crisis, suicidal
ideation, public assistance including lack of basic needs (food, shelter, water, clothing), engage
homeless individuals and families living on the street, prevent families and individuals from
becoming homeless, reach out to unsheltered homeless people; connect them with emergency
shelter, housing, or critical services; and provide urgent, non -facility -based care to unsheltered
homeless people who are unwilling or unable to access emergency shelter, housing, or an
appropriate health facility. The Program assisted 550 people.
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
The City of Newport Beach continues to support CoC efforts. The 2020-2024 Strategic Plan
prioritized the use of CDBG funds to support activities implemented by local nonprofit
organizations that provide services to help prevent and eliminate homelessness, including
families at risk of homelessness. To address the needs of homeless families, families with
children, veterans and their families, the City provided funds to support the Families Forward
Housing Program, which provides transitional housing, counseling, and case management to
families at risk of homelessness. 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.
City of Newport Beach 2023-2024 CAPER 20
16-24
The City supports a number of programs to assist low-income individuals and families to avoid
becoming homeless, including Section 8 Housing Choice vouchers. Other support services, such
as job and training assistance, food assistance, and counseling are also available to help
individuals recover from homelessness and to avoid becoming homeless. Case management
services are offered to help prevent individuals from falling back into homelessness.
2-1-1 CoC maintains a list of homeless shelters and services in the region that homeless residents
or at -risk residents can utilize. Additionally, Homeless Shelter Directory is a non-profit
organization that provides a directory for resources in the City of Newport Beach.
In support of CoC efforts, the Strategic Plan provides for the use of CDBG funds to support
activities implemented by local nonprofit organizations that provide services to help prevent and
eliminate homelessness, including families at risk of homelessness, veterans, victims of domestic
violence and emancipated foster youth. The City also leverages CDBG funds to expand the supply
of affordable housing in Newport Beach.
Additional efforts are underway at the regional level to shorten the period of time that individuals
and families experience homelessness and to prevent individuals and families who were recently
homeless from becoming homeless again. Many transitional housing providers are working with
the Commission to End Homelessness to evaluate strategies to lower program threshold
requirements and improve outcomes including shorter shelter stays and more rapid transitions
to permanent housing.
2-1-1 CoC assists homeless residents in connecting with homeless prevention programs. City Net
collects data on homeless persons to better enable homeless service providers to better fulfill
their mission.
City of Newport Beach 2023-2024 CAPER 21
16-25
CR-30 - Public Housing 91.22O(h); 91.32O(j)
Actions taken to address the needs of 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 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.
As of January 10, 2024, OCHA administered 94 Housing Choice Vouchers utilized by Newport
Beach residents, including 21 for families, 8 for households with disabled members, and 65 for
elderly households.
Actions planned during the next year to address the needs to public housing
During the current five-year planning period, 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 taken 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.
City of Newport Beach 2023-2024 CAPER 22
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Actions taken to provide assistance to troubled PHAs
Not applicable. OCHA is designated as a High Performing PHA.
City of Newport Beach 2023-2024 CAPER 23
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CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken 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. 91.220 (j); 91.320 (i)
Based on information gathered during community meetings, the Consolidated Plan Needs
Assessment Survey, the 2021-2029 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.
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.
On March 9, 2021, the City Council adopted Resolution No. 2021-18 adding City Council Policy K-4
(Reducing the Barriers to the Creation of Housing). Council Policy K-4 recognizes that the City has
several major constraints on existing lands that severely limit or totally restrict the City's ability to
accommodate growth to the extent identified in the 6t" Cycle Regional Housing Needs Allocation
("RHNA"). As a result, new and flexible land use and zoning regulations and strategies should be
developed in order to reasonably and practically accommodate this ambitious State housing
mandate while protecting the character and maintaining a quality of life that makes Newport
Beach a special place to live, work, and visit.
The policy focuses on the three distinct housing -related efforts recommended by the Council:
• Production of ADUs — Sets forth directives to further encourage and incentivize the
development of ADUs beyond the minimum State law requirements as an important
strategy to accommodate future growth in combination with other strategies to meet the
RHNA Allocation. To implement this policy, the City has completed the following: 1)
developed a fee waiver program for new ADU development; 2) contracted design services
to develop pre -approved ADU plans that property owners can utilize at no -cost to construct
ADUs and to expediate the approval process; 3) created a user-friendly website dedicated
to inform property owners on the benefits of ADU development, clear instructions and a
comprehensive guidebook, incentives for ADU development, and development standards
(www.newportbeachca.gov/adu); and 4) formed an ADU Planning Commission Ad -Hoc
Committee and held community meetings to development more flexible development
standards to encourage ADU development. On February 14, 2023, the City Council adopted
Ordinance No. 2023-2 updating Newport Beach Municipal Code Section 20.48.200
City of Newport Beach 2023-2024 CAPER 24
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(Accessory Dwelling Units) for consistency with 2022 updates to State ADU law and to
incorporate the recommendations of the Ad -Hoc Committee.
• Planning Commission Review and Recommendations for Mixed -Use Designations —Despite
the new mixed -use housing opportunities that were created in the 2006 Comprehensive
General Plan Update, a majority of these sites remain underutilized with a single, non-
residential use, such as retail or office. It is evident the City's existing development
standards related to mixed -use development may create constraints to the redevelopment
of these properties. Therefore, the policy directs staff and the Planning Commission to
review annually the established mixed -use zones in the City and recommend code changes
or policy ideas to the City Council that reduce regulatory barriers and incentivize mixed -use
residential development. To implement this policy, the City has adopted Housing Policy
Action 4H (Review Mixed -Use Zones) as part the 6` Cycle Housing Element update. The City
has been focused on implementing the rezoning program (Policy Actions 1A through 1G) to
accommodate new residential development projects on the Housing Opportunity Sites.
Once these are completed, focus will shift to other Housing Policy Actions, including 4H.
Completion of the initial review and recommendations are anticipated to be completed in
2025.
• Mixed -Use Resort Opportunities —Mixed-use resorts provide an opportunity to revitalize
older resort hotels by incorporating accessory residential units. The policy affirms the City
Council's direction to interpret ambiguities in code provisions to allow for limited
residential units as an accessory use to the principal use of a hotel and to pursue any needed
amendments to accommodate such uses. To implement this policy, the City Council upheld
Director's Determination No. DD2021-001 on August 24, 2021 finding that accessory
residential is an allowed use within resort hotels. On May 12, 2022, the Planning
Commission approved the Ritz -Carlton Residences located at 900 Newport Center Drive and
involved the conversion of 159 hotel rooms into hotel branded residences. The project was
conditioned to require the payment of $100,000 per unit fee as the means determined
appropriate by the Community Development Director to address potential impacts to
public services, public safety, public access, and affordable housing. Of the $100,000 per
unit fee, $65,000 per unit would be reserved for a future affordable housing project.
Moreover, to address housing affordability and the lack of monetary resources for affordable
housing, the City will continue to invest Affordable Housing 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.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j)
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 invested CDBG funds through the 2023-2024 Action Plan in
projects that provide assistance to those with special needs, projects that prevent homelessness,
City of Newport Beach 2023-2024 CAPER 25
16-29
and strengthen economic opportunities for low- and moderate -income residents. Additionally,
the City allocated 100 percent of its non -administrative CDBG investments for program year
2023-2024 to projects and activities that benefit low- and moderate -income people or people
presumed under HUD regulations to be low- and moderate -income. The following are the
activities funded this program year:
Fair Housing Foundation — Fair Housing Services
The Fair Housing Foundation provided fair housing and landlord/tenant mediation to ensure
universal access to fair housing to low- and moderate -income residents. This agency assisted 128
people.
Age Well Senior Services Home - Delivered Meal Program
Provided home delivered meals to seniors and disabled persons to reduce the possibility of
institutionalization. This agency assisted 90 seniors.
City Motel Voucher Program
The City Motel Voucher Program provides motel rooms to bridge the gap between living on the
street and permanent supportive housing for individuals experiencing homelessness. Motel
rooms were secured to bridge the gap between living on the street and having access to available
shelter beds and/or detox/rehabilitation rooms, family reunification, and other permanent
housing solutions. In addition, funds assist with the transition to supportive housing including:
clothing, food, and travel to necessary housing -related appointments. The Program assisted 19
people.
Families Forward - Housing Programs
This program provided assistance to transit homeless families and at risk to become homeless
families from crisis to stability and self-sufficiency. Services include housing, counseling, food,
career coaching, life -skills, education, and acquisition of permanent housing. Housing Program
assisted 8 people received prevention and stabilization support. Additionally, they provided
healthy meals for 18 families/ 60 individuals in the fourth quarter by utilizing their Food Pantry.
This year, they have served two families with a voucher that self -reported their residence in
Newport Beach before homelessness started. Additionally, 10 families (35 individuals) have
received Food Pantry support.
Be Well OC Mobile Response Program
Be Well OC help address the increase in behavioral and mental health crises exacerbated by
COVID-19. The Be Well Newport Beach team is prepared to help with a variety of non -emergency
and non -medical situations. This agency assisted 550 people.
Actions taken to reduce lead -based paint hazards. 91.220(k); 91.320(j)
The City of Newport Beach does not currently implement a Residential Rehabilitation Program
with CDBG funds; however, if such a program is implemented 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
City of Newport Beach 2023-2024 CAPER 26
16-30
paint is present, appropriate abatement procedures are implemented as part of the
rehabilitation contract consistent with the requirements of 24 CFR Part 35.
Actions taken to reduce the number of poverty -level families. 91.220(k); 91.320(j)
The implementation of CDBG activities meeting the goals established in the 2020-2024
Consolidated Plan -Strategic Plan and this Annual Action Plan helped to reduce 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;
• 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. 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 taken to develop institutional structure. 91.220(k); 91.320(j)
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. 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 Public Works Department will work together
with contractors to implement public facility improvement projects in subsequent program years
implementing the 2020-2024 Consolidated Plan Strategic Plan.
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, and individuals or
City of Newport Beach 2023-2024 CAPER 27
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families at risk of homelessness with CDBG public service grants.
Actions taken to enhance coordination between public and private housing and social service
agencies. 91.220(k); 91.320(j)
To enhance coordination between public and private housing and social service agencies, the City
invested CDBG funds and 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.
In the implementation of the 2023-2024 Action Plan, the City invested CDBG resources to public
service agencies to assist low- and moderate- income residents in Newport Beach such as Fair
Housing Foundation, Families Forward, City Motel Voucher Program, and Age Well Senior
Services.
Identify actions taken to overcome the effects of any impediments identified in the
jurisdictions analysis of impediments to fair housing choice. 91.520(a)
Consolidated Plan regulations require CDBG recipients to (1) examine and attempt to alleviate
housing discrimination within their jurisdiction; (2) promote fair housing choice for all persons; (3)
provide opportunities for all persons to reside in any given housing development, regardless of race,
color, religion, sex, disability, familial status, or national origin; (4) promote housing that is accessible
to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements
of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate
metropolitan wide area fair housing planning. The Analysis of Impediments (AI) to Fair Housing
Choice is the primary document utilized for this purpose.
Consistent with HUD's directive, the City partnered with 15 Orange County jurisdictions to prepare
an updated Al in 2015. The Al summarizes regional and local fair housing impediments and an action
plan to address impediments.
During the 2023-24 reporting period, the City funded the Fair Housing Foundation (FHF), which
provides fair housing services to City residents, including low- and moderate -income and special
needs populations. Services provided by FHF include outreach, education, and fair housing
enforcement. A total of 128 households were assisted during the reporting period.
City of Newport Beach 2023-2024 CAPER 28
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CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of
the plan and used to ensure long-term compliance with requirements of the programs
involved, including minority business outreach and the comprehensive planning requirements
To ensure that CDBG funds are used efficiently and in compliance with applicable regulations,
the City provides technical assistance to all subrecipients at the beginning of each program year
and monitors subrecipients throughout the program year.
Technical Assistance
To enhance compliance with federal program regulations, the City made technical assistance
available to prospective applicants for CDBG Notice of Funding Availability (NOFA) upon request
to review the Strategic Plan goals, program requirements and available resources with potential
applicants. After the approval of the Annual Action Plan, a mandatory subrecipient workshop was
held to review program regulations in detail, to provide useful forms and resources for
documenting compliance and to review the City's compliance procedures and requirements.
Additionally, individualized technical assistance was provided on an as -needed basis throughout
a program year.
Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to
determine eligibility, conformance with a National Objective and conformance with a Plan goal.
This review also examines the proposed use of funds, eligibility of the service area, eligibility of
the intended beneficiaries and likelihood of compliance with other federal requirements such as
the National Environmental Policy Act, the System for Award Management (SAM) debarment list,
prevailing wage, Minority and Women Business Enterprise, Section 3 and federal acquisition and
relocation regulations, as applicable.
Subrecipients are required to submit an audit and other documentation to establish their
capacity, and anyfindings noted in the audit are reviewed with the applicant. Eligible applications
are then considered for funding. Once funded, desk monitoring includes ongoing review of
required quarterly performance reports.
For CDBG public service activities, an on -site monitoring is conducted at least once every two
years, or more frequently as needed to ensure compliance. These reviews include both a fiscal
and programmatic review of the subrecipient's activities. The reviews determine if the
subrecipient is complying with the program regulations and City contract. Areas routinely
reviewed include overall administration, financial systems, appropriateness of program
expenditures, program delivery, client eligibility determination and documentation, reporting
systems, and achievement toward achieving contractual goals. Following the monitoring visit, a
written report is provided delineating the results of the review and any findings of non-
compliance and the required corrective action. Subrecipients normally have 30 days to provide
the City with corrective actions taken to address any noted findings. Individualized technical
assistance is provided, as noted above as soon as compliance concerns are identified. For CDBG
City of Newport Beach 2023-2024 CAPER 29
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capital projects, monitoring also includes compliance with regulatory agreement requirements.
All agencies were determined to be in compliance with the CDBG requirements. Technical
Assistance was provided at the beginning of the program year in a congregate workshop setting
as well as 1:1 technical assistance as needed during the program year. Desk monitoring conducted
of all subrecipientsthroughout the program year did not reveal any instances of noncompliance.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment
on performance reports.
In accordance with the City's adopted Citizen Participation Plan, a public notice was published in
the Daily Pilot on August 24, 2024, notifying the public of the availability of the Consolidated
Annual Performance and Evaluation Report for a 15-day public review and comment period
beginning August 24, 2024, and ending September 10, 2024. A copy of the public notices is
included in Appendix A.
The draft CAPER was available on the City website and at the following locations:
Community Development Department
100 Civic Center Drive
Newport Beach, CA, 92660
(949) 644-3200
City Clerk's Office
100 Civic Center Drive
Newport Beach, CA 92660
(949) 644-3005
Central Library
1000 Avocado Ave
Newport Beach, CA 92660
(949) 717-3800
City Website
http://www.newportbeachca.gov/CDBGreports
A public hearing was conducted before the City Council on Tuesday, September 10, 2024, to
solicit comments from residents and interested parties. A summary of any written or oral
comments received during the public hearing are included in Appendix B of the CAPER document.
City of Newport Beach 2023-2024 CAPER 30
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CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction's program objectives and
indications of how the jurisdiction would change its programs as a result of its experiences.
The City amended its 2020-2021 Annual Action plan to include CARES Act funds. Under the 2020
federal stimulus plan - CARES Act, the City received $960,403 in CDBG-CV funds to be used for
activities that prevent, prepare for, or respond to the impacts of COVID- 19. The City Council
allocated those funds to an economic development program to assist small businesses suffering
from hardship due to COVID- 19, and to Be Well OC Mobile Response Clinic to help address the
increase in behavioral and mental health crisis exacerbated by COVID-19.
CDBG and CDBG-CV funds are making a significant impact on strategies to address the high
priority needs identified in the 2021-2022 Consolidated Plan Strategic Plan. As shown in Figure 1
in section CR-05 of this document, CDBG funds contributed to all six Strategic Plan goals as
indicated below:
Fair Housing Services — Fair Housing Foundation - $12,000
The Fair Housing Services project provided fair housing assistance to 133 people. The estimated
outcome was 128 moderate -income people. The agency utilized the full amount of its grant.
Public Services:
Age Well Senior Services: Home Delivered Meals Program - $30,000
This Public Service project provided assistance to 90 people. The annual goal was 100 presumed
low-income elderly people. The agency utilized the full amount of the grant.
Be Well OC Mobile Response Program - $717,078
Be Well OC help address the increase in behavioral and mental health crises exacerbated by
COVID-19. The Be Well Newport Beach team is prepared to help with a variety of non -emergency
and non -medical situations. This agency assisted 550 people.
Homelessness Prevention:
Families Forward: Housing Program - $15,000
Housing Program assisted 8 people received prevention and stabilization support. Additionally, they
provided healthy meals for 18 families/ 60 individuals in the fourth quarter by utilizing their Food
Pantry. This year, they have served two families with a voucher that self -reported their residence in
Newport Beach before homelessness started. Additionally, 10 families (35 individuals) have received
Food Pantry support.
City Motel Voucher Program - $14,765
The City Motel Voucher program provided motel rooms to bridge the gap between living on the
street and permanent supportive housing for 19 individuals experiencing homelessness. The
Police Department utilize the full amount of the grant.
City of Newport Beach 2023-2024 CAPER 31
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Public Facilities and Infrastructure Improvements:
Homeless Shelter — Modification to Shelter (Costa Mesa) - $200,000
This project has not started.
Bonita Creek Community Center Remodel
This project will not be using CDBG funds.
Balboa Pier EV Charging Stations & ADA Upgrades
This project will not be using CDBG funds.
Curb Ramps
This project will not be using CDBG funds.
San Miguel Park ADA Improvement Project - $229,768
The City will start this project in PY 2024-25.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI)
grants?
The City does not receive Brownfields Economic Development Initiative grants.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.
N/A
City of Newport Beach 2023-2024 CAPER 32
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APPENDICES
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APPENDIX "A"
PUBLIC NOTICE
To Be Inserted in Final CAPER
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►A
C
APPENDIX "B"
SUMMARY OF CITIZEN PARTICIPATION
COMMENTS
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SUMMARY OF CITIZEN PARTICIPATION COMMENTS
In compliance with the City's approved Citizen Participation Plan and implementing regulation 24
CFR 91.105, a public notice was published on (see attached proof of publication) to solicit public
comments from interested citizens regarding the draft 2023-2024 CAPER. The draft CAPER was
made available to the public for a period of 15 days in order to provide an opportunity for the
public to review the document.
Insert written or verbal comments received.
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To Be Inserted in Final CAPER
APPENDIX "C11
IDIS REPORTS
PR01 - HUD Grants and Program Income
PR03 - CDBG Activity Summary
PR06 - Summary of Consolidated Plan Projects
PR23 - Summary of Accomplishments
PR26 - CDBG Financial Summary
PR26 — CDBG-CV Financial Summary
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Attachment B
Public Comments
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From: Adriana Fourcher
To: Drisciladh(ci)vahoo.com; Wooding, Lauren
Cc: Weigand, Erik
Subject: FW: City of Newport Beach: Public Hearing & 15-Day Review for FY 2023-2024 Draft Consolidated Annual
Performance and Evaluation Report
Date: August 24, 2024 4:51:26 PM
[ EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is
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I have two public comments and some basic questions.
1. Comment: The 2023-24 action plan CBDG has a line -item expense of approximately
$68,000 for the CBDG Program Administration. That plan contains substantial coordination
with organizations and government agencies to support services that assist low income and
the homeless. The 2024-25 Action Plan increased that line item to over $128,000, while
streamlining the services to working with just a few organizations. If the city is running out of
COVID relief money it should be tightening its belt and reducing administration costs not
increasing them. Questions: How many people are part of CBDG Program Administration or
is that an allocated expense? Is the city increasing personnel and is the city re -focusing on the
areas that are facing the most urban development?
2. Comment: Spending Block Grant and HUD funds on a park (San Miguel Park) that is located
adjacent to two affluent neighborhoods — the Port Streets and Big Canyon, is objectionable and
inappropriate considering the high -density development plans approved by the city. Moreover,
the actual bids that have come in for the San Miguel Park "renovation" are considerably higher
(See City Staff Report Agenda Item No.9, August 27, 2024). Question: Wouldn't it be more
appropriate for the City to allocate park funds to the airport district and require development
plans for high density apartments (30-50 u/acre) to include adequate open space and
recreational amenities? The City should match urban development money with the objectives
of the CDBG regulations. Urban planning requires.... PLANNING.
Attention Councilman Eric Weigand - I do not know how city infrastructure funds are distributed
between districts. The airport district needs to be allocated substantially more going forward based
on the city's intention of targeting most of the low income and high -density housing in that area.
There will be a devasting socio-economic impact to our community fabric and quality of living if the
city allows development plans to result in urban deserts (large apartment complexes that lack
convenient access to retail and recreational infrastructure and do not relate to the surrounding
uses).
According to the Executive Summary:
Community Development Block Grant (CDBG)
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The Housing and Community Development Act of 1974 created the CDBG Program with three
primary objectives against which HUD evaluates the Consolidated Plan and the City's performance
under the Plan. Those primary objectives are decent housing, suitable living environments, and
expanded economic opportunities for low- and moderate -income persons. The CDBG regulations
require that each activity meet one of the following national objectives:
• Benefit low- and moderate -income persons;
• Aid in the prevention or elimination of slums and blight; or
• Meet other community development needs having a particular urgency (usually the result of a
natural disaster).
It is a giant stretch to say that San Miguel Park qualifies.
I have nothing against parks I just think the city should find the money somewhere else for San Miguel
and spend the block grants more appropriately. Also, the CBDG Administration costs should be
reviewed as the increase exceeds the rate of inflation while the scope of services has been
streamlined.
Thank you for your inclusion of my public comments in the record.
Adriana Fourcher
Resident of Newport Beach
From: City of Newport Beach News <noreply@newportbeachca.gov>
Date: Saturday, August 24, 2024 at 8:00 AM
To: Adriana Fourcher <adriana@fourcher.com>
Subject: City of Newport Beach: Public Hearing & 15-Day Review for FY 2023-2024 Draft
Consolidated Annual Performance and Evaluation Report
Public Hearing & 15-Day Review for FY 2023-2024 Draft Consolidated Annual
Performance and Evaluation Report
Post Date: 08/24/2024 7:30 am
U
NOTICE IS HEREBY GIVEN that on Tuesday, September 10, 2024, at 4:00 p.m., or soon
thereafter as the matter shall be heard, a public hearing will be conducted in the City
Council Chambers at 100 Civic Center Drive, Newport Beach, and the City Council of the
City of Newport Beach will receive public comments and consider this matter.
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DRAFT CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER)
2023-2024 — The City prepared the draft CAPER for the Fiscal Year, beginning July 1, 2023,
and ending June 30, 2024, as required by the U.S. Department of Housing and Urban
Development. The draft CAPER provides a detailed account of how the City utilized its
Community Development Block Grant (CDBG) funds in Fiscal Year 2023-24 to pursue the
strategies, goals, and objectives proposed in the 2023-2024 Action Plan to address the
housing and community development needs identified in the 2020-2024 Consolidated
Plan. The purpose of the Public Hearing for the CAPER is to allow the public the
opportunity to comment on the draft CAPER.
Please see full Public Notice Here.
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