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HomeMy WebLinkAbout17 - Community Development Block Grant PlanrE.W PpR CITY OF NEWPORT BEACH Hearing Date: April 11, 2000 a� COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: 19 .= PLANNING DEPARTMENT Staff Person: Christy Teague • �,'�a,,.� 3300 NEWPORT BOULEVARD (949) 644 -3207 NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: 2000 -2004 Five Year Consolidated Plan Document and One Year Action Plan for Community Development Block Grant Funds SUMMARY: This public hearing provides the opportunity for the City Council to receive public comments on the 2000 -2004 Five Year Consolidated Plan Document and One Year Action Plan required by the Department of Housing and Urban Development for Community Development Block Grant Funds. SUGGESTED ACTION: 1. Hold public hearing to receive comments on the 2000 -2004 CDBG Five Year Consolidated Plan and One Year Action Plan; and 2. Approve the 2000 -2004 CDBG Five Year Consolidated Plan Document and begin 30 day public review period prior to submittal to HUD; and 3. Adopt Resolution No. authorizing the City Manager to submit the FY 2000 -2001 application for CDBG funds, the 2000- 2004 Five Year Consolidated Plan Document and One Year Action Plan to HUD. BACKGROUND Federal regulations establish the application process for Community Development Block Grant funds administered by the Department of Housing and Urban Development (HUD). The City's CDBG entitlement amount for the 2000 -2001 fiscal year July 1, 2000 to June 30, 2001 is $498,000. The Consolidated Plan Document contains an assessment of the housing and community development needs of the community and a five -year strategy to address identified needs. The One Year Action Plan is a component of the Consolidated Plan Document containing a list of activities the City will assist with CDBG funds during the coming fiscal year. City Council approval of the Consolidated Plan Document will begin a 30 day public review period, after which it will be submitted to HUD for review. CONSOLIDATED PLAN OUTLINE . The City Council has directed the majority of CDBG funds to be applied to the Balboa Peninsula revitalization effort for the last three fiscal years in accordance with the 1995 -2000 Consolidated Plan Document economic development goals. In addition to physical improvements in the Balboa Peninsula target area, the City funds code enforcement costs on the Balboa Peninsula and miscellaneous ADA (Americans with Disabilities Act) improvements throughout the City with CDBG funds. • Prior to the Balboa Peninsula revitalization efforts, CDBG funds were spent on affordable housing projects and extensive ADA improvements to public buildings and sidewalks throughout the City. Most ADA improvements have been completed, with only a small portion of CDBG funds being used for ADA projects in recent years. HUD places a high priority on decent housing. The City's affordable housing strategy will utilize non -CDBG resources during the next five year planning period. These resources include in lieu fees collected from the Ford development, affordable housing opportunities associated with the Banning Ranch development and units to be provided by The Irvine Company from the CIOSA development. Although CDBG funds are not focused on affordable housing in this five year planning period, the next Consolidated Plan Document developed for 2005 -2010 may include affordable housing construction as a primary goal. FUNDS ALLOCATION - 2000 -2001 ONE YEAR ACTION PLAN The City's allocation of CDBG funds is constrained by HUD. standards that limit social service assistance to a maximum of 15% and administrative expenses to a maximum of 20% of the total grant. Applying these restrictions to the City's 2000 -2001 $498,000 budget will result in the following distribution: Social services $ 74,700 Administration 99,600 Balboa Revitalization/Other programs 323.700 Total budget $498,000 A more complete funding recommendation for the 2000 -2001 fiscal year is shown as Table 1, with a more complete summary of proposed funding described in Attachment 1. FY 2000 -2004 Consolidated Plan for CDBG Funds • April 11, 2000 Page 2 CJ CJ 0 TABLE 1 PROPOSED BUDGET 2000 -2001 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS SOCIAL SERVICES (15 %) (Max. = $74,700) 1st Priority: Homeless Services FISH - Homeless Emergency Assistance $ 16,500 SPIN - Substance Abuse Rehabilitation Program (S.A.R.P) $ 10,000 Orange Coast Interfaith Shelter - Temporary Shelter $ 8,000 Olive Crest - Permanent Home Placement for Children $ 5,000 WISE Place (O.C. YWCA) — Temporary Shelter 4,000 Subtotal: $ 43,500 2nd Priority: Low Income Elderly South County Seniors $ 15,600 FISH - Mobile Meals $15,600 Subtotal: $ 31,200 Total social services: $ 74,700 ADMINISTRATION (20 %) (Max. = $99,600) Fair Housing Council of Orange County $ 13,788 Administration Expenses $ 85,812 Administration Subtotal: $ 99,600 BALBOA PENINSULA NEIGHBORHOOD REVITALIZATION AREA/ OTHER PROGRAMS (65 %) (Max. = $323,700) ADA Improvements $ 30,000 Code Enforcement — Balboa Peninsula $ 25,000 Balboa Peninsula Public Improvements $268,700 Balboa Village Pedestrian and Streetscape Improvement Plan: Improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street, Commercial Facade Improvements. Other Programs Subtotal FY 2000 -2001 TOTAL $ 323,700 $ 498,000 FY 2000 -2004 Consolidated Plan for CDBG Funds April 11, 2000 Page 3 Social Services The following guidelines have been used in developing social service program funding • recommendations. This methodology has been used for several years. First priority is given to social service programs that primarily assist the homeless. This is in conformance with Housing Element Program 12, which identifies assistance to persons and families in need of emergency shelter and transitional housing as a top priority. Organizations assisting low- income elderly are second priority, and agencies that directly benefit low- income families are third priority. Within these three groups priority is given to agencies located in or very near Newport Beach. Recommended allocations are based on the proportion of Newport Beach residents served, the agency's program budget, and the amount of funding requested. In addition, since stable program funding is important to ensuring continuity in services, staff does not recommend new social service agencies for funding unless the needs of existing programs have been satisfied. However, the funding of a new agency remains the prerogative of the City Council. By adhering to these guidelines staff has attempted to make the allocation process as fair and objective as possible. Each year, social service funding requests exceed the 15% maximum allowed by HUD. The City of Newport Beach has historically allocated the maximum to assist agencies meeting community needs according to the above goals and priorities. Staff expects the 15% allocation to be continued in the 2000 -2004 Consolidated Plan years. Administration This category includes funding for fair housing counseling, planning studies and City . administration. CDBG administration is a function of the Planning Department staff, with supporting accounting assistance by Administrative Services staff. Planning studies, such as the recently completed sign study for the Balboa Peninsula, can also be funded from the CDBG administration category. Balboa Revitalization/Other Programs Programs other than social services and administration account for 65% of the total budget, which in 2000 -2001 is $323,700. These funds have been and are proposed to be used primarily for improvements and programs identified as part of the Balboa Peninsula Revitalization efforts, code enforcement on the Balboa Peninsula and ADA improvements. One -half of a code enforcement position for the Balboa Peninsula Revitalization area is expected to continue in the 2000 -2004 Consolidated Plan. On February 22, 2000, the City Council approved the $7.5 million Balboa Village Pedestrian and Streetscape Improvement Plan, and this project is expected to be the primary expenditure of CDBG funds in this five year planning period. CDBG funds will be supplemented with City off - street parking funds and City neighborhood enhancement funds. A CDBG Section 108 loan for $1.3 million is planned to be used for Phase One improvements projected for the 2001 -2002 fiscal year. Phase One includes improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street. A Section 108 loan is repaid from future FY 2000 -2004 Consolidated Plan for CDBG Funds • April 11, 2000 Page 4 CDBG funds for up to 20 years. Until the loan is obtained, annual funds designated for Peninsula improvement projects will fund construction drawings and other pre - construction costs, a facade • improvement program, and code enforcement. Any unexpended funds from the annual grant will be designated and held for Phase One construction. The primary focus for this Consolidated Plan Document will be improvements on the Peninsula corresponding with the Balboa Village Pedestrian and Streetscape Improvement Plan approved by the City Council. 0 �J PUBLIC NOTICE AND REVIEW The public is given the opportunity to be involved in the development of the Consolidated Plan Document and the One -Year Action Plan. On January 26, 2000, grant application forms were mailed to 57 social service agencies and developers who have previously applied for or received CDBG funds from the City. Applications were also sent to neighboring cities, the County of Orange, both Chambers of Commerce, the Board of Realtors, each business improvement district, and the Orange County Affordable Housing Clearinghouse. The City also advertised the availability of funds in the Daily Pilot on January 18, 2000. A public hearing was held January 25, 2000 to obtain citizen views and comments on community needs and to review the previous year's program performance. On March 14, 2000 a public hearing was held to receive public comments on the needs of the community prior to the preparation of the 2000 -2004 Consolidated Plan Document. At the conclusion of the hearing, the City Council directed staff to prepare the Grant Application and 2000 -2004 Consolidated Plan Document and One Year Action Plan for FY 2000 -2001 and set the next public hearing for April 11, 2000 CONCLUSION Upon approval of the City Council, staff will submit the 2000 -2001 CDBG Application and 2000- 2004 Five Year Consolidated Plan and One Year Action Plan to HUD prior to the May 15, 2000 deadline. Copies of the Consolidated Plan Document will be available for public review at City libraries and in the Planning Department for 30 days prior to submittal to HUD. Submitted by: SHARON Z. WOOD Assistant City Manager �2 Prepared by: CHRISTY D. TEAGUE, AICP Senior Planner Attachments 1. Summary of Proposed 2000 -2001 Allocations 2. Resolution 3. Staff Report of March 14, 2000 4. Grant Applications Recommended for Funding in FY 2000 -2001 5. Grant Applications Not Recommended for Funding in FY 2000 -2001 6. City of Newport Beach 2000 -2004 Consolidated Plan Document FY 2000 -2004 Consolidated Plan for CDBG Funds April 11, 2000 Page 5 ATTACHMENT 1 SUMMARY OF PROPOSED FY 2000 -2001 CDBG ALLOCATIONS . I. SOCIAL SERVICES: Homeless 1'l1011ub 111 OOIYIVu LV 11U1116111Ly J1'1OL y - 'IIUmylybb LIllylrun1 Y HJS15lAl1GG. 1VLJWVVIL Beach ($16,5001 FISH is a Newport Beach based social service agency that assists the homeless and those "at- risk" of becoming homeless. FISH assists clients with rent payments for those facing eviction, provides temporary lodging at motels and provides food, gasoline, utility payments, and bus tickets to those who are homeless and/or needy. The City has funded this agency with CDBG Funds for the past fourteen years. Last year approximately 4.5% of the clients were from Newport Beach. The recommended grant amount of $16,500 is based on a program budget of $375,000 and the Newport Beach client base of 4.5 %. Serving People In Need (SPIN) - Homeless Service Programs, Newport Beach ($10.000) This agency conducts three separate programs to provide services to the homeless. The Street Services Program prepares and delivers food, blankets, hygiene kits, ponchos and job listing referrals by van to various locations in Orange County. The Guaranteed Apartment Payment Program (G.A.P.P.) assists qualified participants by providing move -in costs for their transfer from shelter to permanent housing, including first month's rent and security deposit, emergency assistance for medical treatment, school supplies for the children and bus passes when funds are available. Applicants are required to participate in housing support services counseling which provides job counseling and individual counseling as a condition of receiving assistance. The Substance Abuse Rehabilitation Program (SARP) assists homeless alcoholics/drug abusers living on the streets, beaches, and in the parks and commercial areas of Orange County through counseling, Alcoholics Anonymous meetings, and "detox" programs. SPIN is a Newport Beach based organization and has received funding for 9 years. SPIN has asked the City to fund one of their three programs described above. Staff recommends that the City fund the Substance Abuse Rehabilitation Program (SARP). Last year approximately 2.2% of their clients were from Newport Beach. The recommended grant of $10,000 is based on a program budget of $410,884 and the Newport Beach client base of 2.2 %. Orange Coast Interfaith Shelter, Costa Mesa ($8.000) The shelter provides temporary housing and financial counseling to homeless families, and helps families find permanent housing and employment. The City has funded this agency for the past twelve years. Of the total number of clients assisted last year, approximately 1.5% were from Newport Beach. The recommended grant of $8,000 is based on a program budget of $491,050 and the Newport Beach client base of 1.5 %. FY 2000 -2004 Consolidated Plan for CDBG Funds April 11, 2000 Page 6 WISEPIace (formerly YWCA Hotel for Homeless Women), Santa Ana ($4,000) WISEPIace conducts a countywide program to provide shelter and employment training for homeless women. WISEPIace feels that the employment program is essential to help the women become self - supporting. Newport Beach has funded this organization for the past thirteen years. Approximately 1% of prior years clients were from Newport Beach. The recommended grant of $4,000 is based on a program budget of $364,070 and the Newport Beach client base of 1 %. Olive Crest Abused Children's Foundation, Santa Ana ($5,000) Olive Crest funds will be used to conduct a community outreach program to recruit foster care and adoptive homes in Newport Beach. HUD has requested funds be utilized for more permanent solutions to homelessness. Permanent, or more permanent, placement of low- income and possibly homeless children is a service provided by Olive Crest. Olive Crest has been funded for special projects benefiting Newport Beach periodically over the last fourteen years. Last year, 3% of their clients were from Newport Beach. Low Income Elderly South County Senior Services, Inc., San Clemente ($15,6001 Allocation of funds to this agency will provide a meal program to low- income senior citizens residing at Seaview Lutheran Plaza in Newport Beach. The City funded this program the last seven years. Since 100% of the funds requested will be used for Newport Beach residents, the total requested and recommended funding amount of $15,600 is within the maximum funding guideline based on the level of service to Newport Beach residents. However, due to limited funding availability, staff is recommending that the remaining social service funds be equally divided between the two senior meal programs. Friends In Service to Humanitv (FISH) - Mobile Meals, Newport Beach ($15,600) This allocation will fund the making and delivery of meals to low- income senior citizens in Newport Beach. These clients are homebound residents of the City who are too elderly or frail to make their own meals. The City has assisted the agency to provide this service for several years. The recommended grant of $15,600 is based on a general budget of $200,000, and 44% Newport Beach client base. However, due to limited funding availability, staff is recommending that the remaining social service funds be equally divided between the two senior meal programs. II. ADMINISTRATION: Fair Housine Counseline -Fair Housine Council of Orange Countv ($13,788) The Fair Housing Council of Orange County currently provides services to 11 of the 12 HUD entitlement cities in Orange County and to all the smaller cities through the County's contract. The Fair Housing Council has a well- trained staff providing a wide variety of services to member cities. The recommended grant of $13,788 is based on the proportion of fair housing services provided to the City of Newport Beach. FY 2000 -2004 Consolidated Plan for CDBG Funds April 11, 2000 Page 7 Administration ($85,812) Under the this category the City can fund administrative activities for planning in addition to overall administration of the entitlement funds. The planning must be directed at an activity that will accomplish one of the three national . objectives. The recommended allocation would defray the City's staffing costs in administering the CDBG program, Administration will be done by Planning staff. A portion of two staff member salaries will be paid with CDBG funds, which will alleviate the Planning Department budget and City General Fund. III. OTHER PROGRAMS ADA ($30,000) The City, in conjunction with the Federal Civil Rights Act and the State Title 24 Handicapped Requirements, is required to' comply with ADA requirements to provide accessibility to public facilities, senior centers, public restrooms, public piers and parks, to make them accessible to the handicapped population. The City was required to comply with the requirements during the 1994 -1995 fiscal year. The City has allocated approximately $860,478 in CDBG Funds in prior years to comply with this requirement. An additional $30,000 is needed to comply with this unfunded mandate to cover the cost of unforeseen work omitted during the initial ADA improvements. Code Enforcement ($25,000) Funds will be used to pay for Code Enforcement staff (1/2 salary) for the Balboa Peninsula as part of the continued Balboa Peninsula Revitalization efforts. Balboa Peninsula Public Improvements ($268,700) These funds are proposed to be used primarily for improvements and programs identified as part of the Balboa Peninsula Revitalization efforts. On February 22, 2000, the City Council authorized $7.5 million for the Balboa Village Pedestrian and Streetscape Improvement Plan, and this project is expected to be the primary expenditure from 2000 -2005 CDBG funds. CDBG funds will be supplemented with City off - street parking funds and City neighborhood enhancement funds. A CDBG Section 108 loan for $1.3 million is planned to be used for Phase One improvements projected for the 2001 -2002 fiscal year. Phase One includes improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street. A Section 108 loan is repaid from future CDBG funds for up to 20 years. Until the loan is obtained, annual funds designated for Peninsula improvement projects will fund construction drawings and other pre - construction costs, a facade improvement program, and code enforcement. Any unexpended funds from the annual grant will be designated and held for Phase One construction. The primary focus for this Consolidated Plan Document will be improvements on the Peninsula corresponding with the Balboa Village Pedestrian and Streetscape Improvement Plan approved by the City Council. FY 2000 -2004 Consolidated Plan for CDBG Funds April 11, 2000 Page 8 • RESOLUTION NO. 2000 - • RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING THE 2000 -2004 FIVE YEAR CONSOLIDATED PLAN DOCUMENT WITH 2000 -2001 ONE YEAR ACTION PLAN AND BUDGET AND AUTHORIZING THE CITY MANAGER TO SUBMIT THE APPLICATION AND CONSOLIDATED PLAN TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Newport Beach is making a good faith effort to implement the policies and programs contained in the City's General Plan; and WHEREAS, it is the City's desire to benefit low and moderate income households; and WHEREAS, the City is eligible to receive $498,000 for FY 2000 -2001 Community Development Block Grant (CDBG) entitlement funds which may be used for a wide variety of activities as set forth in the Statement of Community Development Objectives; and WHEREAS, the City has published a notice announcing the availability of funds that requested proposals for projects; and WHEREAS, the City has published a notice of public hearing requesting comments on the development and approval of the 2000 -2004 Five Year Consolidated Plan Document and One Year Action Plan and has made it available to the public; and WHEREAS, the Proposed 2000 -2004 Five Year Consolidated Plan Document and One Year Action Plan has been thoroughly reviewed; and WHEREAS, in the development and approval of the Proposed 2000 -2004 Five Year Consolidated Plan and One Year Action Plan the City has considered all public comments or views which have been received either in writing or at the public hearing; - 3. - q t NOW, THEREFORE, BE IT RESOLVED by the City Council of the City • of Newport Beach that the 2000 -2004 Five Year Consolidated Plan Document and One Year Action Plan and Budget is approved in order to provide for funding allocations. BE IT FURTHER RESOLVED that the City Manager is hereby identified as the official representative of the City of Newport Beach to submit the Approved 2000- 2004 Five Year Consolidated Plan Document and One Year Action Plan, budget, application, all required understandings and assurances, and such additional information as may be required. BE IT FURTHER RESOLVED that the City Manager is hereby identified as the official representative of the City of Newport Beach to sign all appropriate subagent agreements for the use of funds approved in the 2000 -2004 Five Year Consolidated Plan Document and One Year Action Plan. ATTEST CITY CLERK Adopted this day of 2000. 2 _ MAYOR 0 • 2¢wooRr CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT Hearing Date: March 14, 2000 Agenda Item No.: • PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH. CA 92658 (949) 644-3200; FAX (949) 644 -3250 Staff Person: Christy Teague (949) 644 -3207 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: 2000 -2005 Consolidated Plan Document for Community Development Block Grant Funds SUMMARY: This public hearing provides the opportunity for the City Council to receive public comments on community needs and to give direction to staff for preparation of the 2000 -2005 Five Year Consolidated Plan Document required by the Department of Housing and Urban Development for Community Development Block Grant Funds. SUGGESTED ACTION: 1. Hold public hearing to receive comments on the 2000 -2005 CDBG Five Year Consolidated Plan: and 2. Provide direction on the 2000 -2005 CDBG Five Year Consolidated Plan . Document for approval at a public hearing tentatively scheduled for April 11, 2000. BACKGROUND Federal regulations establish the application process for Community Development Block Grant funds administered by the Department of Housing and Urban Development (HUD). On April 10, 1995, the City Council approved the City's 1995 -2000 Consolidated Plan Document (CPD). A new Consolidated Plan Document must be prepared for 2000 -2005. The CPD contains an assessment of the housing and community development needs of the community and a five -year strategy to address identified needs. The One Year Action Plan is a component of the CPD containing a list of activities the City will assist with CDBG funds during the coming fiscal year. The 2000 -2005 Consolidated Plan Document is tentatively scheduled for consideration by the City Council at the April 11, 2000 meeting, prior to the HUD due date of May 15, 2000. CONSOLIDATED PLAN OUTLINE The City Council has directed the majority of CDBG funds be applied to the Balboa Peninsula revitalization effort for last three fiscal years in accordance with the 1995 -2000 Consolidated Plan Document economic development goals. HUD encourages targeted use of funds on neighborhood revitalization areas such as on the Balboa Peninsula. In addition to physical improvements in the Balboa Peninsula target area, the City funds code enforcement costs on the Balboa Peninsula and miscellaneous ADA (American Disabilities Act) improvements throughout the City with CDBG funds. Prior to the Balboa Peninsula revitalization efforts, CDBG funds were spent on affordable housing projects and extensive ADA improvements to public buildings and sidewalks throughout the City. Most ADA improvements have been completed, with only a small portion of CDBG funds being • used for ADA projects in recent years. Decent housing is a high priority to HUD. During the next five years, from 2000 to 2005, it is anticipated the City will be using other resources to achieve its housing goals rather than using CDBG funds. Existing in lieu fee resources, plus affordable housing opportunities associated with the Banning Ranch development and The Irvine Company CIOSA requirements, will be used to provide affordable housing in the City during fiscal years 2000 -2005. However, the next Consolidated Plan Document developed for 2005 -2010 may focus future CDBG funding efforts on affordable housing. FUNDS ALLOCATION The City's allocation of CDBG funds is constrained by HUD standards that limit social service assistance to a maximum of 15% and administrative expenses to a maximum of 20% of the total grant. Applying these restrictions to the City's 2000 -2001 $498,000 budget will result in the following distribution: Social services $ 74,700 Administration 99.600 Balboa Revitalization/Other programs 323.700 Total budget $498,000 Social Services The following guidelines have been used in developing social service program funding . recommendations. This methodology has been used for several years. First priority is given to social service programs that primarily assist the homeless. This is in conformance with Housing Element Program 12, which identifies assistance to persons and families in need of emergency shelter and transitional housing as a top priority. Organizations assisting low- income elderly are second priority, and agencies that directly benefit low - income families are third priority. Within these three groups priority is given to agencies located in or very near Newport Beach. Recommended allocations are based on the proportion of Newport Beach residents served, the agency's program budget, and the amount of funding requested. In addition, since stable program funding is important to ensuring continuity in services, staff does not recommend new social service agencies for funding unless the needs of existing programs have been satisfied. However, the funding of a new agency remains the prerogative of the City Council. By adhering to these guidelines staff has attempted to make the allocation process as fair and objective as possible. Each year, social service funding requests exceed the 15% maximum allowed by HUD. The City of Newport Beach has historically allocated the maximum to assist agencies meeting needs of the according to the above goals and priorities. Staff expects the 15% allocation to be continued in the 2000 -2005 Consolidated Plan years. If public comments warrant, or if the City Council would like to reconsider, amounts allocated to social services can be reduced. FY 2000 -2005 Consolidated Plan for CDBG Funds March 14,2000 Page 2 is Administration . This category includes funding for fair housing counseling, planning studies and City administration. Approximately $15,000 is allocated to the Fair Housing Council and $84,600 for planning studies and to defray the City's costs in administering the CDBG program. CDBG administration is a function of the Planning Department staff, with supporting accounting assistance by Administrative Services staff. Planning studies, such as the recently completed sign study for the Balboa Peninsula, can also be funded from the CDBG administration category. Balboa Revitalization/Other Programs Programs other than social services and administration account for 65% of the total budget, which in 2000 -2001 is $323,700. These funds have been and are proposed to be used primarily for improvements and programs identified as part of the Balboa Peninsula Revitalization efforts, code enforcement on the Balboa Peninsula and ADA improvements. One -half of a code enforcement position for the Balboa Peninsula Revitalization area is expected to continue in the 2000 -2005 Consolidated Plan. On February 22, 2000, the City Council authorized $7.5 million for the Balboa Village Pedestrian and Streetscape Improvement Plan, and this project is expected to be the primary expenditure from 2000 -2005 CDBG funds. CDBG funds will be supplemented with City off - street parking funds and City neighborhood enhancement funds. A CDBG Section 108 loan for $1.3 million is planned to be used for Phase One improvements projected for the 2001 -2002 fiscal year. Phase One includes improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street. A Section 108 loan is repaid from future CDBG funds for up to . 20 years. Until the loan is obtained, annual funds designated for Peninsula improvement projects will fund construction drawings and other pre - construction costs, a facade improvement program, and code enforcement. Any unexpended funds from the annual grant will be designated and held for Phase One construction. The primary focus for this Consolidated Plan Document will be improvements on the Peninsula corresponding with the Balboa Village Pedestrian and Streetscape Improvement Plan approved by the City Council. PUBLIC NOTICE AND REVIEW Through the process described in the City's adopted Citizen Participation Plan, the public is given the opportunity to be involved in the development of the CPD and the One -Year Action Plan. On January 26, 2000, grant application forms were mailed to 57 social service agencies and developers who have previously applied for or received CDBG funds from the City. Applications were also sent to neighboring cities, the County of Orange, both Chambers of Commerce, the Board of Realtors, each business improvement district, and the Orange County Affordable Housing Clearinghouse. The City also advertised the availability of funds in the Daily Pilot on January 18, 2000. Grant applications have been received and will be presented to the City Council as part of the One Year Action Plan and 2000 -2005 Consolidated Plan tentatively scheduled for April 11, 2000. FY 2000 -2005 Consolidated Plan for CDBG Funds March 14,2000 Page 3 N A public hearing was held on January 25, 2000 to obtain citizen views and comments on community needs and review the previous year's program performance. At the conclusion of the hearing the City Council directed staff to prepare the Grant Application and One Year Action Plan for FY 2000 -2001 and the 2000 -2005 Consolidated Plan Document and set the next public hearing for March 14, 2000. On March 4, 2000, a public notice was published in the Daily Pilot to receive public comments on the needs of the community prior to the preparation of the 2000 -2005 Consolidated Plan Document five year plan for CDBG funds. CONCLUSION After receiving comments by the community and the City Council, staff will complete a draft of the 2000 -2005 Consolidated Plan Document for review and discussion at a future City Council meeting, tentatively scheduled for April 11, 2000. As required by HUD regulations, copies of the Consolidated Plan Document will be available for public review and comments 30 days prior to the May 15, 2000 HUD deadline. Submitted by: SHARON Z. WOOD Assist t City Manager Attachment 1: Staff Report of January 25, 2000 Prepared by: CHRISTY D. TEAGUE, AICP Senior Planner FY 2000 -2005 Consolidated Plan for CDBG Funds March 14,2000 Page 4 0 • N L� • 0 ATTACHMENT 4 Funding applications for which allocations were recommended. I. FISH — Homeless Prevention 2. SPIN (Serving People In Need) 3. Orange Coast Interfaith Shelter 4. WISEPlace (formerly YWCA) 5. South County Senior Services 6. FISH - Mobile Meals 7. Fair Housing Council of Orange County 8. Olive Crest Homes and Services for Abused Children These applications are available for review in the Planning Department. ATTACHMENT 5 Funding applications for which allocations were not recommended. 1. Share Our Selves 2. Balboa Performing Arts Theater Foundation 3. Someone Cares Soup Kitchen 4. Youth Employment Service (YES) These applications are available for review in the Planning Department. III E • 0 City of Newport Beach, California Five Year Consolidated Plan FY 2000 - 2004 One -Year Action Plan FY 2000 - 2001 Submitted to: U.S. Department of Housing and Urban Development Los Angeles Area Office 611 West Sixth Street Los Angeles, California 90017 -3127 CITY OF NEWPORT BEACH 2000 -2004 Consolidated Plan Document l� TABLE OF CONTENTS Application for Federal Assistance I: Executive Summary II: Managing the Process Lead Agency Consultation/Coordination Institutional Structure Collaboration and Partnership Leadership III: Citizen Participation Summary of Citizen Participation Process Summary of Citizen Comments and Views Efforts Made to Broaden Public Participation Public Notices Public Hearings Technical Assistance IV: Five Year Strategic Plan Time Period Priority Needs Analysis and Strategies Housing and Community Development Resources Specific Objectives Homeless Needs Priority Homeless Needs Table 1A — Homeless Needs /Continuum of Care Gaps Analysis Homeless Strategy Special Populations Needs of Special Populations Table 1B — Needs of Special (Non- Homeless) Populations Priority Needs of Special Populations Affordable Housing V: Housing Market Analysis Background and Trends Housing Needs Priority Housing Needs Table 2A — ]Priority Housing Needs Page 6 10 13A 17A 20 21A i E 0 l� Market Analysis Specific Housing Objectives Needs of Public Housing Public Housing Strategy Lead -Based Paint Needs Barriers to Affordable Housing Fair Housing Anti - Poverty Strategy VI: Community Development 30 Priority Non - Housing Community Development Needs Table 2B — Priority Community Development Needs 30A Community Development Objectives Strategic Vision for Change Neighborhood Revitalization Strategy Areas Public Housing Mapping Data Needs of Special Populations Identifying Benchmarks VII: Consolidated Action Plan FY 2000 -2001— One Year Use of Funds 33 A. Sources of Funds B. Statement of Specific Objectives C. Descriptions of Projects D. Geographic Distribution E. Homeless and Other Special Populations F. Needs of Public Housing G. Anti - Poverty Strategy H. Lead -Based Paint Hazards I. Other Actions J. Monitoring K. Float- Funded Activities L. Locations M. Contingency N. Urgent Needs Table 3 — Action Plan Table 41 VIII: Certifications IX: Summary of Citizen Comments • 42 47 1� I: EXECUTIVE SUMMARY - 2000 -2004 CONSOLIDATED PLAN DOCUMENT The Consolidated Plan is a collaborative process to establish a unified vision for community development actions. It is an opportunity to shape the various housing and community development programs into effective, coordinated strategies. It also creates the opportunity for comprehensive strategic planning and citizen participation. The statutes for the Community Development Block Grant program set forth three basic goals against which the plan and City performance will be evaluated by HUD. 1. Decent Housing Providing decent housing includes increasing the availability of permanent affordable housing for low income households without discrimination; emergency transitional housing for homeless and "at risk" households, and housing for persons with special needs. 2. A Suitable Living Environment Providing a suitable living environment includes improving the safety and livability of neighborhoods, restoring and preserving properties of special historic or architectural value, increasing the access to public facilities and services, revitalizing deteriorated residential and commercial neighborhoods, eliminating health and safety violations and conserving energy resources. • 3. Expanded Economic Opportunities Expanded economic opportunities include job creation and retention, establishment and stabilization of small businesses, and provision of jobs to low income persons living in areas affected by those programs and activities. This Consolidated Plan Document addresses these goals throughout, but are specifically addressed in the Five Year Strategic Plan Section IV. General Priorities The City's five year Consolidated Planning Document identifies three general areas as high priorities for funding during 2000 -2004. 1. High Priority: Balboa Peninsula Public Facility Improvements The greatest priority and expenditures for this five year planning period is on Balboa Peninsula public facility improvements. In addition to physical improvements in the Balboa Peninsula target area, the City funds code enforcement costs on the Balboa Peninsula and miscellaneous ADA (American Disabilities Act) improvements throughout the City with • CDBG funds. • The Newport Beach City Council has approved a $7.5 million Balboa Village Pedestrian and Streetscape Improvement Plan, and this project is expected to be the primary expenditure from 2000 -2004 CDBG funds. CDBG funds will be leveraged with City off - street parking funds and City neighborhood enhancement funds. A CDBG Section 108 loan for $1.3 million is planned to be used for Phase One improvements projected for the 2001 -2002 fiscal year. Phase One includes improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street. 2000 -2001 funds designated for Peninsula improvement projects will fund construction drawings and other pre - construction costs, a facade improvement program, and code enforcement. Any unexpended funds from the 2000 -2001 grant will be designated and held for Phase One construction. The primary focus for this Consolidated Plan Document will be on Balboa Peninsula public facility improvements corresponding with the Balboa Village Pedestrian and Streetscape Improvement Plan approved by the City Council. One -half of a code enforcement position for Balboa Peninsula is expected to continue throughout the 2000 -2004 Consolidated Plan years. 2. High Priority: Homeless Persons and Other Persons with Special Needs First priority for social service funding is given to social service programs that primarily assist the homeless. This is in conformance with Housing Element Program 12, which . identifies assistance to persons and families in need of emergency shelter and transitional housing as a top priority. Funding includes an outreach program for homeless children to be placed into more permanent foster and adoptive homes in Newport Beach. 3. High Priority: Low Income Elderly Organizations assisting low - income elderly are the second priority for social service funding. Two agencies are providing mobile meal service to low income elderly residents of Newport Beach. Decent housing is a high priority to HUD. During the next five years, from 2000 to 2004, it is anticipated the City will be using other resources to achieve its housing goals rather than using CDBG funds. Existing in lieu fee resources, plus affordable housing opportunities associated with the Banning Ranch development and The Irvine Company CIOSA requirements will be used to provide affordable housing in the City during fiscal years 2000- 2004. The City housing objectives include the identification and construction of at least 139 senior affordable housing units. This is explained more fully in the Housing Market Analysis portion of this plan. 2000 -2001 FUNDS ALLOCATION The City's allocation of CDBG funds is constrained by HUD standards that limit social • service assistance to a maximum of 15% and administrative expenses to a maximum of 20% 2 A of the total grant. Applying these restrictions to the City's 2000 -2001 $498,000 budget will . result in the following distribution: Social services $ 74,700 Administration 99,600 Balboa Peninsula Public Facilities /Other programs 323.700 Total budget $498,000 PUBLIC NOTICE AND REVIEW Through the process described in the City's adopted Citizen Participation Plan, the public has been given the opportunity to be involved in the development of the CPD and the One -Year Action Plan. On January 26, 2000, grant application forms were mailed to 57 social service agencies and developers who have previously applied for or received CDBG funds from the City. Applications were also sent to neighboring cities, the County of Orange, both Chambers of Commerce, the Board of Realtors, each business improvement district, and the Orange County Affordable Housing Clearinghouse. The City also advertised the availability of funds in the Daily Pilot on January 18, 2000. On March 14, 2000, the City Council held a public meeting to seek input on the Consolidated Plan Document. A Public Notice was published in the Daily Pilot on March 4, 2000 to receive public comments on the needs of the community prior to the preparation of the 2000 -2004 Consolidated Plan Document. The One Year Action Plan and 2000 -2004 Consolidated Plan were reviewed by the City Council April 11, 2000. Public Notices were published in the Daily Pilot on March 31, 2000 and April 1, 2000 to inform the public of the scheduled City Council review and approval of the Consolidated Plan and to inform the public of the availability of the Consolidated Plan for public review. The Consolidated Plan is available for review at the Planning Department, located at City Hall and at public libraries. All public comments will be considered and summarized in Section IV of this Consolidated Plan Document. After receiving comments by the community and the City Council, this 2000 -2004 Consolidated Plan Document is available for review. All public comments will be incorporated into the final plan submitted to HUD. As required by HUD regulations, copies of the Consolidated Plan Document will be available for public review and comments 30 days prior to the May 15, 2000 HUD deadline. 3 �a • II: MANAGING THE PROCESS Lead Agency The City of Newport Beach Planning Department has been the lead agency coordinating the 2000 -2004 Five Year Consolidated Plan Document. Consultation/Coordination The City of Newport Beach works with the Orange County Housing Authority on its ongoing Cities Advisory Committee and with the Orange County Homeless Task Force. Each of these committees meets quarterly to identify, address and monitor the needs of the community. Social service agencies are also actively involved in the Orange County Homeless Task Force to work together with cities, non - profit groups, and other agencies. These groups, including adjacent cities, work together to ensure the housing and non - housing community development needs of the community beyond the City of Newport Beach jurisdiction are identified and addressed. The City of Newport Beach is also actively involved in the County of Orange comprehensive grant coordination process. The County and representative cities have a very well coordinated system, which has assisted in successful federal grants to serve the entire • community. The City of Newport Beach has not had instances of lead -based paint hazards or poisonings. All hospitals and schools are regulated by the State of California, and prohibit the use of lead -based paint. There is no public housing in Newport Beach. The City of Newport Beach will prohibit the use of lead -based paint for any proposed housing using federal funds. Institutional Structure The City of Newport Beach will carry out this Consolidated Plan through various organizations. Homeless and other special needs persons and low- income elderly residents will be served through social service agencies funded through CDBG grant funds. Various City of Newport Beach departments will work together to achieve the goals of this Consolidated Plan: Planning Department completes the grant administration, a Code Enforcement Officer conducts code enforcement activities on the Balboa Peninsula, and Accounting staff assists with that portion of the administration. The Public Works Department oversees public improvement contracts and construction. In addition to City staff, construction is completed using private industry contractors under federal guidelines for contracts and construction. Social service providers are non - profit organizations and are funded to the maximum extent allowable by HUD. The strengths in the system include the comprehensive City -wide desire to improve the • Balboa Peninsula public facilities. Supporters include elected officials, City departments and many established groups within the community. Another strength is the provision of social 4 Gil service providers to address the priority needs of Newport Beach, including homeless and . special needs persons and low- income elderly residents. The weaknesses in the system include the lack of funding to fully meet identified needs. Another weakness is the high cost of housing in Newport Beach. Past and current assessments of need indicate that the major problem facing the low- income residents of Newport Beach is overpayment due to the high cost of housing. There are not adequate funds to address this weakness, but the City of Newport Beach is actively attempting to address these needs through non -CDBG resources and efforts more fully described in the Housing Market analysis portion of this plan. There are no public housing units in the City of Newport Beach. Collaboration and Partnership In addition to the ongoing consultation and coordination identified above, the City of Newport Beach has had an integrated effort to develop a strategy for the Balboa Peninsula. To develop the plan for the Neighborhood Revitalization Area, known as the Balboa Village Pedestrian and Streetscape Improvement Plan, several community meetings have been conducted over the last several years. Participating groups include: monthly meetings of PROP (Promote Revitalization of Our Peninsula), regular meetings of the Balboa Merchants and Owners Association, meetings with resident associations, various other community outreach meetings and City Council meetings. The City Council approved the plan, using CDBG funds and City funds, after collaborative community efforts to address the public facility needs of the Balboa Peninsula. To address the community needs for the homeless and low- income elderly residents, ongoing communication has been maintained through participation in the Orange County Homeless Task Force and social service providers to the homeless, and with the Oasis Senior Center and social service providers to low- income elderly residents. Leadership The City of Newport Beach is led by a seven - member City Council. The City Manager, under direction of the City Council, manages City staff including the Planning Department which serves as the lead agency of this Consolidated Plan submittal. The City of Newport Beach leadership supports the Consolidated Plan, which will aid in the effective implementation of the plan and an increased commitment to the plan. s 0 � I III: CITIZEN PARTICIPATION Summary of Citizen Participation Process The City has a Citizen Participation Plan to ensure the participation of citizens, emphasizing the involvement of low, very low and extremely low- income residents, non - profit organizations and other interested parties. In accordance with the Citizen Participation Plan, the City developed and implemented a community outreach process to obtain input from the Community on the housing and non - housing community development needs of the City. The community outreach process encourages the involvement of all groups including extremely low, low and moderate income persons, members of minority groups, non - English speaking persons, persons with mobility, visual or hearing impairments, the elderly, the business community, religious organizations, public and private agencies and other local jurisdictions. The City held public hearings on January 26, 2000 and March 14, 2000 to obtain the views and comments of citizens, non - profit organizations and other interested parties prior to completion and approval of the 2000 -2004 Consolidated Plan Document. The City participates as a member of the Orange County Housing Authority Cities Advisory Committee and works in cooperation with the Orange County Housing Authority to provide housing assistance to residents of the community, including children, elderly persons, persons with disabilities, homeless persons, and other persons served by such agencies. The City consulted with the Orange County Housing Authority to ensure that activities funded under the Section 8 Program and those identified in the Consolidated Plan Document are fully coordinated to achieve comprehensive goals. The Housing Authority administers 94 Section 8 tenant -based certificates in the City. There are no public housing units within the City of Newport Beach. The City notified adjacent units of local government when preparing its description of non- housing community development needs. The City invited seven nearby cities and the Orange County Housing Authority to attend the public hearing held January 26, 2000 at Newport Beach City Hall to discuss community development needs. The City's efforts to identify lead -based paint hazards and poisonings within the City included consultation with the Environmental Health Division of the Orange County Health Department, the Newport Beach Building Department and the Hazardous Materials Division of the Newport Beach Fire Department. The City also participates as a committee member on the Southern California Association of Governments (SCAG) Regional Housing Needs Assessment (RHNA) subcommittee and the Orange County Council of Governments (OCCOG). 6 �S Summary of Citizen Comments and Views 1 . A summary of citizen comments is attached as Section IV of this Consolidated Plan Document. Efforts Made to Broaden Public Participation The City's efforts to broaden public participation and encourage the involvement of extremely low, low and moderate income persons, were performed by reaching out to other local jurisdictions, specific groups, social service agencies and organizations with a specific interest in affordable housing, homeless shelters and "at risk" populations. This outreach was accomplished through a mailed notice to 57 groups and through a consolidated effort conducted by the Orange County Homeless Issues Task Force. Public Notices On January 26, 2000, notices were mailed to 57 social service agencies and developers who have previously applied for or received CDBG funds from the City. Notices were also sent to neighboring cities, the County of Orange, both Chambers of Commerce, the Board of Realtors, each business improvement district, and the Orange County Affordable Housing Clearinghouse. A Public Notice was published in the Daily Pilot on January 15, 2000 to notify the public of the first hearing and to receive public comments for the Consolidated Plan at the City Council Meeting of January 25, 2000. A Public Notice was published in the Daily Pilot on March 4, 2000 to notify the public and to receive public comments on the needs of the community prior to the preparation of the 2000 -2004 Consolidated Plan Document at the City Council Meeting of March 14, 2000. Public Notices were published in the Daily Pilot on March 31, 2000 and April 1, 2000 to inform the public of the scheduled City Council review and approval of the Consolidated Plan at the City Council Meeting of April 11, 2000 and to inform the public of the availability of the Consolidated Plan for public review. Public Hearings Three public hearings have been held to obtain comments from the public for this Consolidated Plan: January 25, 2000, March 14, 2000 and approval of this Consolidated Plan on April 11, 2000. All public comments will be considered and summarized in Section IV of this Consolidated Plan Document. Access to Information Public Notices have included anticipated grant amounts, HUD goals, and areas to be addressed with CDBG funds. All public notices have included phone numbers for more information or to make public comments to include in the development of the Consolidated Plan Document. The approved Consolidated Plan Document is being made available upon approval by the City Council at the Planning Department in City Hall and at City libraries. Technical Assistance According to the City's Citizen Participation Plan, technical assistance to complete the City's application form will be provided to groups representative of persons of low and very low income upon request. Statistics concerning specific areas of the City will also be furnished upon request. Anti- Displacement Although the City of Newport Beach expects no displacement to occur, the citizen participation plan must set forth the jurisdiction's plans to minimize displacement of persons and to assist any persons displaced, specifying the types and levels of assistance the jurisdiction will make available to persons displaced. In the unlikely and unforeseen event that displacement occurs, the City of Newport Beach working closely with representatives from HUD, will minimize displacement of persons and assist any persons displaced to the level necessary to minimize the effects of displacement. Publishing the Plan and Availability to the Public The Consolidated Plan Document summary is published by a notice in the Daily Pilot newspaper on March 31, 2000 and again on April 1, 2000 containing a summary of the Plan describing its content and purpose and advises the public of the availability of the plan. The notice also advises the public of the required 30 day comment period and the locations where copies of the entire plan may be examined, in order to provide a means for citizens to review the proposed Consolidated Plan and submit comments. The Consolidated Plan Document is available at the Planning Department at City Hall and at the City libraries. All comments received prior to submittal will be incorporated into the Plan submittal to HUD. Access to Meetings Public notices were published in the local newspaper, the Daily Pilot, on January 15, 2000, March 4, 2000, March 31, 2000 and April 1, 2000, and gave citizens sufficient information about the subject of the hearings to discuss the development and review of the 2000 -2004 Consolidated Plan Document. In addition, separate notices were mailed to interested agencies, groups and persons, including other local jurisdictions, inviting them to participate in public hearings. Amendments The City shall provide for citizen participation in any amendments to an approved application, except those for disaster activities. If the nature of the amendment is such that a 8 a public hearing is required prior to HUD approval, the City shall hold a public hearing on the amendment. Access to Records The City shall make available adequate information to ensure full public access to program information. The City shall provide for full and timely disclosure of its program records and information consistent with program guidelines. Complaints A written response will be made to all written complaints and grievances within 5 working days, acknowledging the letter and identifying a plan of action, if necessary. A complete response to the concerns will be sent within 15 working days, if practical. 0 9 A� . IV: FIVE YEAR STRATEGIC PLAN General: As a part of the federal application process for the CDBG Program, the City of Newport Beach is required to produce a five year strategic plan that brings needs and resources together into a coordinated strategy. The strategy must be developed to achieve the statutory goals, shown below, while principally benefiting low and moderate income residents. The three primary goals are to: • Provide decent housing • Create suitable living environments, and • Expand economic opportunities Additionally, the CDBG program requires all activities meet a national objective of: • Benefiting low and moderate income persons; or • Aiding in the prevention of slums or blight; or • Urgent Need In compliance with federal regulations, national objectives and eligible activities, the City's Five Year Strategic Plan was developed to achieve the following general objectives: • Public Facilities and Improvements • Removal of Architectural Barriers • Public Services — homeless assistance, temporary shelter, assistance for "at risk" homeless, senior meals, counseling • Commercial or Industrial Rehabilitation — elimination of conditions that are detrimental to health, safety and public welfare, improvement of the quality of buildings. • Special Economic Development • Acquisition of Land for Affordable Housing Time Period This Consolidated Plan Document covers five fiscal years: 2000 -2001, 2001 -2002, 2002- 2003, 2003 -2004, and 2004 -2005. A fiscal year is July 1 to June 30'. This Consolidated Plan Document covers July 1, 2000 to June 30, 2005. Priority Needs Analysis and Strategies The priorities and programs identified in the Five Year Strategic Plan have been developed . based on 1) Successful programs previously administered with CDBG funds 2) Information contained in Community Development Needs section of this Consolidated Plan and other 10 h d' City of Newport Beach reports regarding affordable housing needs and programs and 3) • discussions with public and private sector groups and individuals. Accomplishing the priorities over the next five years is an ambitious objective that will challenge the commitments of all sectors of the community. The collective ability to meet these objectives as described in the Five Year Strategic Plan will depend not only on the effective implementation of "programs" but also on the following: 1. Availability of sufficient Federal, State, local and private resources and funding. 2. Coordination of various and often competing activities. 3. Availability of sites for development of affordable housing. 4. Citizen participation. HOUSING AND COMMUNITY DEVELOPMENT RESOURCES Federal Programs The following Federal Programs will be made available to address priority needs: 1. Community Development Block Grant Program: Removal of Architectural Barriers — CDBG funds to eliminate architectural barriers to . provide a suitable living environment for persons with disabilities. Public Services/Homeless Assistance Activities Grants to non -profit homeless shelters and homeless assistance programs improve the quality of existing emergency shelters and increase the number of persons assisted through these shelters. Commercial or Industrial Rehabilitation — Grants to investors to eliminate area or spot blight for commercial or industrial buildings and eliminate conditions which are detrimental to health, safety and public welfare through the rehabilitation of neighborhood and community facilities. Special Economic Development — Grants and incentives to assist business to alleviate economic distress and create jobs for lower income persons through the stimulation of private investments and community revitalization in areas with a stagnating or declining tax base. Community Development Block Grant Section 108 Loan Guarantees — The Section 108 Program allow Newport Beach to use their CDBG funds to guarantee loans /notes for activities. This program is a subset of the CDBG entitlement program discussed above. The City pledges current and future CDBG funds as principal security for the loan guarantee. 2. Section 8 Rental Certificates Program The Orange County Housing Authority administers this program which provides rental • assistance payments to private owners who lease their units to eligible very -low income I 3() . families. A tenant receives a certificate from the Orange County Housing Authority and may rent any unit in the City that meets Section 8 housing quality and rent rate standards and meets that household's family size requirements. The tenant must pay 30% of their household income and the Orange County Housing Authority pays the difference between the tenant's payment and the permitted rent, but no more than the Fair Market Rent established by HUD, to the landlord. Once a household obtains this certificate assistance, they may continue to receive assistance providing they remain eligible based on income. This program has a waiting list which exceeds the number of available Section 8 certificates. The City of Newport Beach currently has 94 households receiving Section 8 certificate assistance. State Programs There are two State agencies, the California Housing Finance Agency (CHFA) and the California Department of Housing and Community Development (HCD), which offer resources to assist Cities with funding of affordable housing programs. CHFA offers Mortgage Credit Certificates through an annual application process which provides a federal tax credit for low and moderate income home buyers who have not owned a home in the past three years. CHFA financing for rental housing can often be combined with Federal low income tax credits (which are allocated by the State) in order to help facilitate the development of projects that can benefit low income renter households. Financing assistance to low and moderate income homeowners can also be provided by the • CHFA. HCD is a State agency identified as a resource to help the City fund affordable housing programs, focuses less on debt financing and more on the subsidy requirements necessary for the development of low and moderate income housing. The particular programs available from HCD tend to change over time depending upon the needs within the State and approved voter passed propositions. The City does not expect to utilize these state resources at this time. Local Programs The City will be using other resources to achieve its housing goals rather than using CDBG funds for housing during the planning period of this Consolidated Plan. Existing in lieu fee resources, affordable housing opportunities associated with the proposed Banning Ranch development and an affordable housing requirement from The Irvine Company from the CIOSA development agreement will be used to provide affordable housing in the City during fiscal years 2000 -2005. Also, programs such as density bonuses, waivers of fees and relaxation of development standards are made available to developers of affordable housing. These supplemental City programs enable the City and developers to leverage housing funds to encourage the production of affordable housing units. 12 31 Private Resources . For - Profit resource investment comes mostly through developers who agree to participate in the CDBG program or with local housing funds, and supplemental programs such as density bonuses, waiver of fees and relaxation of development standards which are made available to developers of affordable housing. This permits the developers to leverage housing funds when obtaining private and commercial sources of capital. Non - Profit organizations receive tax deductible contributions, grants and nominal user fees for their on -going affordable housing and supportive service activities. New construction activities may occur with non - profit resource investment with non - profit developers who receive funding from other public and private sources. Specific Obiectives The housing objectives for the City of Newport Beach during this five year planning period are: • To identify one or more projects with at least 139 affordable housing units for low - income senior citizens by the end of the 2000 -2001 fiscal year. • To complete construction of at least 139 units, prior to the end of the 2004 -2005 fiscal year. The Regional Housing Needs Assessment, more fully described in the Housing Market Analysis Section, targets 139 units of very low and low- income units needed in the planning period through 2005. These units are expected to be constructed using the local programs described above. HOMELESS NEEDS Priority: Homeless Needs This section is a general overview of the factors reviewed when determining prioritization of need groups and activities as identified on HUD Table 1A — Homeless Needs. Activities must meet the following HUD criteria to be placed in a priority group: High Priority: Activities to address this need will be funded by the City during the five year period. Medium Priority: If funds are available, activities to address this need may be funded by the City during the five year period. Also, the locality will take other actions to help this group locate other sources of funds. 13 z ✓�1 TABLE 1 -A Continuum of Care: Gaps Analysis - Individuals - Beds /Units Estimated Current Unmet Need/ Relative Needs Inventory Gap Priority Emergency Shelter �g Transitional Housing �g Permanent Housing �g Total 0 0 0 LJaIIliawu VY'/'/a/o a1 V0 VO.•wc.� vww Job Training ow Case Management ow Substance Abuse Treatment ig Mental Health Care Housing Placement ow Life Skills Training ow - Estimated Sub - Populations Chronic Substance Abusers �g Seriously Mentally III ow Dually- Diagnosed Veterans Persons with HIVIAIDS Victims of Domestic Violence ig Youth 13 -A 3S Low Priority: The City will not fund activities to address this need during the five year period. No Such Need: The City finds that there is not need or the City shows that this need is already substantially addressed. Homeless Strategy As stated in the City's Housing Element goals and policies, it is the intent of the City to provide for the needs of persons and families in need of emergency shelter and transitional housing. No emergency shelters or transitional housing units are located in the City of Newport Beach at this time. However, the City may assist agencies which have the capacity to identify and assist the homeless population. Coordination with appropriate social service agencies is required in order to provide other associated services to this population. The City of Newport Beach has been working with the Orange County Continuum of Care Committee to identify and address the unmet needs of Orange County homeless persons. The City, working with the Continuum of Care Committee, is continually seeking needed ways to address the needs of homeless persons in the community. The "at risk" population in Newport Beach is defined as the families and individuals threatened with loss of their place of residence. This population includes those low income families with incomes below 30 percent of median income who are in imminent danger of • residing in shelters or being unsheltered because of a lack of access to permanent housing. According to the HUD Data Book, there are 6,747 low- income renters with incomes below 80% of median and paying more than 30% of their income for housing. of these, 5,134 are cost burdened and 1,613 are severely cost burdened. Any interruption of income could put them at imminent risk of homelessness. The City has assigned a High Priority to emergency shelters. Over the next five years the City may fund social service agencies that assist with the special needs of the homeless and those "at risk" to minimize the homeless problem throughout the City. Objective: To preserve the availability of housing for persons and families in need of emergency shelter and transitional housing. Objective: To assist homeless persons and to prevent those "at risk" from becoming homeless. Objective: To assist battered and homeless women and children. Activity: The City will coordinate the operation of housing programs with County, other cities, and local social service agencies, including participation as a member of the Orange County Housing Authority Cities Advisory Committee . 14 �q and work with Orange County Housing Authority to continue Section 8 rental assistance to residents. Activity: The City of Newport Beach participates in the Orange County Continuum of Care Committee, working with the county, other cities and social service agencies to recognize and serve the needs of the homeless in the community. Activity: The City may assist with facility development and improvements for shelters needing rehabilitation or expansion. Activity: The City may provide funds to emergency or homeless facilities with community social services assistance for needy Newport Beach residents. Activity: The City may continue to provide funds to social service agencies who provide shelter to homeless and "at risk" by providing move -in costs for their transfer from shelter to permanent housing, including first month's rent and security deposit. Activity: The City may allocate a portion of its social service and/or non social service CDBG funds to assist agencies that provide shelter to battered and homeless women and children. Activity: The City may allocate a portion of its social service and/or non social service CDBG funds to assist agencies that provide more permanent housing to low - income and/or homeless children through foster and adoptive home provision. Obstacles: The assistance for homeless and "at risk" is dependent on continued funding. SPECIAL POPULATIONS Needs of Special Populations HUD Guidelines state that this Consolidated Plan should include a description of special housing needs that exist in the community, such as those of the elderly, handicapped, disabled, persons with alcohol or other drug addiction, persons with HIV /AIDS and their families and public housing residents. Elderly and Handicapped: According to the HUD Data Book, 4,495 persons, or 6.8% of the City population had a work disability with a mobility or self -care limitation. Over 52% of those individuals were 65 years of age or older. The two most prevalent housing needs . for persons with disabilities are accessibility and affordability. The most prevalent public need is access to public places and facilities. Further, Newport 15 �5 Beach is a community with significant public resources in the form of the upper and lower bay, ocean, public beach and public piers which also attract many visitors. The City has assigned a high priority to providing accessibility improvements to increase accessibility for handicapped persons to public buildings, piers and restrooms. Since the improvements are City -wide, it is estimated that a majority of disabled persons with mobility limitations will benefit. Objective: The City intends to provide $30,000 in CDBG funds for removal of architectural barriers during the 2000 -2001 program year to provide handicapped accessibility to public buildings, parks, piers and restrooms in compliance with the Americans with Disabilities Act (ADA). The City will consider future funding of this category on an annual basis during the next five year period. Objective: To provide assistance to the elderly. Activity: In order to address the non - housing special needs, the City will consider allocating funds to assist persons with disabilities to become mobile and accessible to public buildings and resources. The costs shall include building modifications, elevators and curb cuts. Activity: While the family environment is the ideal situation to provide for the needs of the elderly, this is not always possible. Therefore, the City may continue to fund social service agencies that provide meals to frail elderly and needy homebound persons and families. Obstacles: Limitations on funding prohibit fully supporting mobile meals programs to the elderly. ADA requirements do not have accompanying funding, costs of compliance are high and significant design constraints may exist. Persons with Alcohol or Drug Addiction: Persons with alcohol and other drug addictions often need supportive counseling after their initial rehabilitation in order to practice their rehabilitated lifestyle. Many require job referral services and educational guidance. Objective: To provide social service funds which benefit low and moderate income persons within the community. Activity: The City may continue to fund social service agencies that provide counseling, therapy and support services to low and moderate income persons who suffer from alcohol and drug addiction. 16 w 36 . Obstacles: The availability of funding and social service agencies that can provide the services are the major obstacles in assisting these persons. Persons with AIDS: At last report, there were 150 cumulative AIDS cases reported in Newport Beach. Of the cases reported in the survey, 4.2% were Newport Beach residents. Persons who are HIV positive are a serious "at risk" population in the Orange County metropolitan area. As stated in the City's Housing Element Implementation Actions, the City shall allocate a portion of its CDBG funds to provide services for the homeless. Objective: To provide social service funds which may assist the needs of persons and families with AIDS within the community. Activity: The City may continue to fund social service agencies that provide shelter and support services to extremely low, low and moderate income persons who may suffer from AIDS. Activity: The City may continue to fund social service agencies that provide counseling, therapy and support services to low and moderate income persons who suffer from AIDS. Public Housing: There are no public housing units located in the City of Newport Beach. See Table 1B — Special Needs/Non- Homeless AFFORDABLE HOUSING Priority Analysis and Strategy Development As stated in the City's Housing Element goals and policies, it is the intent of the City to preserve and increase housing affordability through rental housing for the very low and lower income persons, households and families and provide incentives and direct assistance to the housing industry, within the limitations of available resources, to facilitate the provision of housing for the extremely low, low and moderate income. The desirability of Newport Beach as a residential community and the lack of developable land have resulted in extremely high land cost. The utilization of CDBG and other housing funds help to produce additional housing in the City for the extremely low, low and moderate income persons and families. Priorities are based on the housing needs identified in the 17 31 Special Needs /Non- Homeless Elderly Frail Elderly Severe Mental Illness Developmentally Disabled Physically Disabled Persons with Alcohol /Other Drug Addiction Persons with HIV /AIDS Table'1 -B Priority Need �g ig E�X�1�1�A�1�U1• E�71�1�DA�1�1�>• 17 -A 0 Y • Housing Market Analysis portion of this Consolidated Plan, the high cost of land in Newport Beach and information contained in the 1990 Census. Objective: To identify one or more projects with at least 139 affordable housing units for low - income senior citizens by the end of the 2000 -2001 fiscal year. Objective: To complete construction of at least 139 affordable housing units for low - income senior citizens prior to the end of the 2004 -2005 fiscal year. Objective: To continue to assist approximately 94 households with Section 8 Certificates through the Orange County Housing Authority. Objective: To ensure that all landlords and tenants have access to fair housing information and all inquiries are answered or correctly referred. Activity: The City of Newport Beach may use local housing funds to enable the construction of new housing units by facilitating the development and construction of housing for the extremely low, low and moderate income households by acquisition of land, "writing down" the cost of land or assisting with financing or the construction of improvements for developers who agree to develop housing for the extremely low, low and moderate income households. All affordable housing projects will have affordable housing . restrictions which are recorded against the property. Activity: The City of Newport Beach will work with major landowners and developers of market rate housing to ensure that housing for low and moderate income households is provided. Activity: The City will continue the use of density bonuses as an indirect source of subsidy providing significant financial incentives to private developers. Activity: The City will continue to participate as a member of the Orange County Housing Authority Cities Advisory Committee and work in cooperation with the Orange County Housing Authority to provide Section 8 rental housing assistance to residents of Newport Beach. Activity: Fair housing education and outreach will continue to help landlords and tenants limit discrimination in housing on the basis of race, color, national origin, handicap, gender or creed. The City of Newport Beach contracts with the Fair Housing Council of Orange County to resolve tenant and landlord conflicts and to investigate and document housing discrimination complaints. Bilingual counselors are on staff to provide education, counseling and legal referrals to residents who have experienced discrimination in violation of State and Federal fair housing laws. 18 �9 Obstacles: The development of affordable housing is dependent on continued funding . and the availability of developable sites. Very few vacant sites remain in the City, and some have environmental constraints or may not be suitable locations for low and moderate income housing. • 0 19 q6 • V: Housing Market Anal • General Characteristics 1. Background and Trends Between 1970 and 1980, 8,919 housing units were added to the housing inventory in the City of Newport Beach. This is an average yearly increase of 892 housing units. Since 1980, the annual increase slowed significantly. Between 1980 and 1990, 3,642 housing units were added, an average of 364 units per year. Between July 1990 and February 2000, 2,441 new housing units were added, an average of 244 per year. Of the 2,441 units construct from July 1990 to February 2000, 643 (26 %) were single family units, 192 (8 %) were duplex units, and 1,606 (66 %) were multi - family units. The percentage of rental housing has increased in the City since 1960, when only 36% of all occupied units were rental. According to the 1990 Census, 46.5% of the housing units were rental. In addition to multi - family housing projects constructed throughout the City, the City has many duplex, triplex and fourplex rental units in its older neighborhoods. Areas where this type of rental housing is predominant include West Newport, Balboa Peninsula, Old Corona del Mar and Balboa Island. 2. Demographics: Low Income and Racial/Ethnic Concentrations Area of low- income concentration is defined as an area of the City where 51% of households have incomes that do not exceed 80 percent of the median income as determined by HUD with adjustments for smaller and larger families. According to the 1990 Census, there are no "low- income" census tracts within the City of Newport Beach. However, according to block and census tract information provided by HUD, there are eight census tracts within the City of Newport Beach where the concentration of low and moderate persons exceeds the City's first quartile threshold of 29 %. Housing problems: HUD defines the existence of housing problems as households occupying units that: 1) meet the definition of physical defects or; 2) meet the definition of overcrowded or; 3) meet the definition of cost burdened greater than 30 %. Households with housing problems are identified below. The housing needs identified include all low income owner and renter households in need of assistance and all low- income minority owner and renter households in need of assistance, as identified in the HUD Data Book. The following is a discussion of those households in need of assistance. 20 1) Housina Needs The Regional Housing Needs Assessment (RHNA) is a determination of needs through a deliberate effort required by the State and conducted by the Southern California Association of Governments and the Orange County Council of Governments to meet the California demand for housing over the next five years. Each City is required to plan for its "fair share" of housing for a planning period of seven and one half years from 1998 to 2005. Each jurisdiction is to use this target for planning purposes for the State - required Housing Element of the City's General Plan. The RHNA determination recommends the following for the City of Newport Beach: VERY LOW LOW MODERATE ABOVE MODERATE TOTAL INCOME INCOME INCOME INCOME UNITS (0 -50% median) (50 -80 %) (80- 120 %) (120 % +) 0- $34,150 $34,150- $54,640 $54,640- $81,960 $81,960+ 86 53 83 254 456 E There is an increasing need for affordable housing for senior citizens. Citizens throughout the City have notified the City Council through, letters and by speaking at City Council • meetings, in addition to the continual requests received by the City's Oasis Senior Center. Due to the overwhelming call for this type of affordable housing in Newport Beach, the City will focus its affordable housing provision efforts on the needs of low - income seniors. Priority Housing Needs See Table 2A — Priority Housing Needs Market Analysis 1. Homeowners Based on the HUD Data Book, there are 293 extremely low - income elderly owner occupied households paying more than 30% of their income for housing, 223 extremely low - income elderly owner occupied households paying more than 50% of their income for housing, 176 low- income elderly owner occupied households paying more than 30% of their income for housing, 77 low- income elderly owner occupied households paying more than 50% of their income for housing, 70 moderate income elderly owner occupied households paying more than 30% of their income for housing, 25 moderate income elderly owner occupied households paying more than 50% of their income for housing, 126 middle income elderly owner occupied households paying more than 30% of their income for housing and 66 middle income elderly owner occupied households paying more than 50% of their income for housing. 21 �� Housing Needs TABLE 2A - Renter Need Level Units Estimated $ Small Related 0 - 30% of MFI © (� 31 - 50% of MFI 51 - 80% of MFI Large Related 0 - 30% of MFI 31 - 50% of MFI 51 - 80% of MFI Elderly 0 - 30% of MFI 31 - 50% of MFI 51 - 80% of MFI All Other 0 - 30% of MFI 31 - 50% of MFI 51 - 80% of MFI n.. 0 - 30% of MFI 31 - 50% of MFI 51 - 80% of MFI 21 -A -I3 Based on the HUD Data Book, there are 522 extremely low- income owner occupied . households paying more than 30% of their income for housing, 429 extremely low income owner occupied households paying more than 50% of their income for housing, 395 low income owner occupied households paying more than 30% of their income on housing, 261 low- income owner occupied households paying more than 50% of their income for housing, 249 moderate income owner occupied households paying more than 30% of their income for housing, 154 moderate income owner occupied households paying more than 50% of their income for housing, 308 middle income owner occupied households paying more than 30% of their income for housing and 192 middle income owner occupied households paying more than 50% of their income for housing. 2. Renters Based on the HUD Data Book from the 1990 Census, there were 13,490 rental households in the City of Newport Beach. Of those 13,490 rental households, 7,467 of all rental households were experiencing cost burdens of greater than 30% and severe cost burdens of greater than 50 %. Based on the HUD Data Book,', there were 30,866 total households in the City of Newport Beach. Of these, 3,912 were extremely low- income households, 1,728 are low- income households and 1,884 are moderate income households. As identified in the HUD Data Book, there were 5,134 rental households paying 30% or more of their income for housing, 2,785 were low- income. Of the 2,333 rental households paying 50% or more of their income for housing, 2,069 were low- income. 77.2% of all extremely low income rental . households, 91.9% of all low income rental households and 85.1% of all moderate income rental households are identified as having housing problems. According to the 1990 Census, 53.7% of all renter households spend 25% or more of their income on rent. 3. Elderly and Handicapped According to the 1990 Census, the growth rate of population in Newport Beach from 1980 to 1990 was 6.5% compared to a 24% growth rate in Orange County. Since 1960, the elderly population in Newport Beach has grown steadily, and there is no indication of this trend reversing. In 1970, 4,859 persons, or 9.8% of all City residents were 65 years of age or older. In 1980, 7,288 persons, or 11.6% of Newport Beach residents were 65 years of age or older. In 1990, 10,315 persons, or 15.5% of the City population, were 65 years of age or older. Newport Beach has desirability as a retirement community and continued aging of the existing population contributing to the growth of the senior population. According to the HUD Data Book, 7,484 (21.5 %) total owner and rental households in the City of Newport Beach were elderly one and two member households in 1990. Of the 7,484 total elderly owner and rental occupied households, 2,445 households have rental problems as defined by HUD. Of the 2,445 households with housing problems, 1,178 have cost burdens greater than 30% and 1,267 have severe cost burdens greater than 50 %. 22 1 According to the HUD Data Book, 805 low to moderate income elderly occupied rental households and 539 low to moderate income elderly occupied owner households in Newport Beach have unmet housing needs (overpaying) as defined by HUD. Of the 1,880 elderly rental occupied households, 1,223 households have housing problems. Of the 1,233 rental households with housing problems, 1,205 have cost burdens of greater than 30% and 695 have severe cost burdens of greater than 50 %. Of the 5,604 elderly owner occupied households, 1,222 have housing problems. Of the 1,222 households with housing problems, all 1,222 have cost burdens of greater than 30 %. Of the 1,222 households, 572 households have severe cost burdens of greater than 50 %. 4. Overcrowding According to the 1990 Census, only 435 occupied housing units have more than 1.0 persons per room. Given the fact that Newport Beach has a significant student population attending the local community college and the local university, this level of overcrowding is not considered significant. According to a 1994 inquiry of local higher education institutions, approximately 7,500 students reside in Newport Beach. 5. Area of Racial/Ethnic Minority Concentration Area of racial /ethnic minority concentration is defined as a specific region of the community having a concentration of minorities greater than 20 %. According to the 1990 Census, there are no census tracts within the City with a concentration of minorities. 6. Market and Inventory Conditions According to the 1990 Federal Census there were 34,681 housing units in the City of Newport Beach, of which 30,860 are occupied units. Of the occupied units, 17,207 (55.8 %) were owner occupied units and 13,653 (44.2 %) were renter occupied units. Of these 34,861 total units, 4,001 units were vacant. This represents an 11.5% vacancy rate for all housing units in the City regardless of affordability. According to the 1990 Census, of the 4,001 vacant units, 294 were vacant and for sale, 1,533 were vacant and available for rent, 1,207 were for seasonal, recreational or occasional use, and 967 were other vacant units. According to the 1990 Census, the median value of owner- occupied housing was over $500,001 (maximum value measured by the Census) and the median contract rent for renter - occupied housing units was $961. Since 1990, prices of owner- occupied housing and renter - occupied housing units have increased dramatically. These high costs are largely attributed to the value of the land. The high cost of land creates adverse market conditions for the production of low- income rental housing, low- income new home ownership opportunities, and low- income senior housing. It requires the use of substantial incentives to produce affordable housing to meet the needs of under served populations. 23 �{ 5 7. Substandard Housing 0 The City of Newport Beach housing stock is primarily in good to superior condition. The definitions of substandard and substandard suitable for rehabilitation are listed below: Substandard is defined as any unit which does not meet or exceed existing Section 8 Housing Quality Standards or local building codes, whichever is stricter. Substandard Suitable for Rehabilitation is defined as any units which are structurally sound and which may be rehabilitated at a cost not to exceed 90% of the projected market value after rehabilitation. Based on the 1990 U.S. Census, the City has substandard and substandard suitable for rehabilitation housing units within its jurisdiction. According to the Census, less than 1.0% of the City's housing stock is substandard or substandard suitable for rehabilitation. According to the 1990 Census, out of 50 substandard rental housing units and 8 substandard ownership units in Newport Beach, only 5 substandard rental housing units and 1 substandard ownership unit were not suitable for rehabilitation. 8. Public and Assisted Housing Inventory There are no public housing units located in the City of Newport Beach. 9. Tenants with Section 8 Certificates and Vouchers According to the Orange County Housing Authority, there are 94 units with Section 8 Certificates and Vouchers in the City of Newport Beach. Elderly persons, single individuals with dependent children, handicapped persons and owners of manufactured homes are assisted with Section 8 Vouchers or Certificates through the Orange County Housing Authority. 2. Section 202 Approximately 100 units were constructed for low- income seniors through the Section 202 housing program. The City does not anticipate an early loss of these units. 11. Affordable Units The City has 332 controlled affordable units to provide housing for lower income families. A variety of resources were used to accomplish affordable housing, including: write -down of land costs using CDBG funds, density bonuses, waivers of fees and relaxation of development standards. 24 Ll The City does not anticipate the loss of assisted units during the next five year period. However, 296 units have been lost in the last six years due to completion of their terms of affordability. 12. Homeless Facilities There are no known emergency shelters in Newport Beach. The nearest shelter providing assistance to homeless people from Newport Beach is the Orange Coast Interfaith Shelter in Costa Mesa, near the Newport Beach boundary. Orange Coast Interfaith Shelter provides shelter for up to 130 persons per night. It also provides food, mental health assessment referrals and transportation assistance. The homeless population served by this organization was 1,857 persons in 1999. In 1999, 19 persons from Newport Beach were assisted by the Orange Coast Interfaith Shelter. Another nearby Costa Mesa agency serving Newport Beach is SPIN (Serving People in Need). SPIN provides shelter for homeless and low- income substance abusers . SPIN provides room and board in a recovery home for up to one month while clients seek employment and receive substance abuse treatment. SPIN provided these services to 282 clients in 1999, including 11 persons from Newport Beach. WISEPIace, formerly known as the South Orange County YWCA, is located in Santa Ana and provides assistance to the homeless population including women over 60, disabled women, and women escaping domestic violence. This agency provides transitional housing and support services including shelter, food, clothing, counseling services, life skills training and employment assistance to clients. WISEPIace served 350 clients in 1999, including 3 persons from Newport Beach. Share Our Selves is a Costa Mesa agency near the Newport Beach border. It is an emergency services program serving homeless and low - income individuals with financial aid, food, rent assistance, utilities assistance, motel payments, child care, prescriptions, eye glasses, work related expenses and transportation. It served 110,703 clients in 1999, 2,849 persons were from Newport Beach. The City of Newport Beach participates in the extensive Orange County Continuum of Care system. This is a countywide effort, led by the County of Orange to meet community needs. This system, through participation with non - profit agencies and cities throughout Orange County, has become more integrated and productive in recent years. Through the successful coordination of participants throughout Orange County, a successful Super NOFA grant award of $6.8 million dollars was made to the County in 1999. Although none of the agencies selected for Super NOFA funding are located in Newport Beach, the agencies serve the greater Orange County community homeless needs. There are several organizations serving the needs of the approximately 14,086 homeless individuals and families in Orange County. The organizations described above are those located nearest or in Newport Beach who are most likely to serve local needs. 25 q In addition to the organizations discussed above, other volunteer groups and a variety of local religious organizations serve Newport Beach and the surrounding communities in numerous ways. These agencies offer assistance to both homeless individuals and needy persons by providing temporary shelter, bus fares to reach pre - planned destinations, rental assistance, medical assistance, food and clothes. The American Red Cross provides temporary assistance to Newport Beach residents in case of disasters such as fire, flood or earthquake. Located in Santa Ana, the Salvation Army provides a hospitality house, with 50 beds for the homeless to use on a nightly basis. Several motels in the Newport Beach/Costa Mesa area are utilized by various agencies to accommodate homeless people. These agencies pay all or a portion of the costs. 13. Persons Threatened with Homelessness FISH — Harbor Area is a Newport Beach agency which provides homeless prevention and support services. FISH services include rent assistance to prevent eviction, food, utility payments, move -in costs, and budgeting assistance. In 1999, FISH served 5,431 clients, 223 of which were Newport Beach residents. Someone Cares Soup Kitchen serves meals to lower income persons. It serves meals 5 days per week and distributes care packages of food each week. In 1999, 6,848 individuals were served, 536 were from Newport Beach. Agencies described in the Homeless Facilities section above, including SPIN, WISEPlace, and Share Our Selves also assist persons threatened with homelessness. Two homeless assistance agencies funded by the City, FISH and SPIN provide direct payments to landlords for rental assistance and vouchers for utility payments for those "at risk" of becoming homeless. 14. Special Need Facilities and Services/Inventory of Supportive Housing for Non - Homeless Persons with Special Needs According to the Orange County Health Care Agency, Newport Beach and greater Orange County special needs populations include adults with serious and persistent mental disorders and impairment in their ability to function in the community or who have a history of recurring functional impairment. Another special needs population identified by the Orange County Health Care Agency is that of persons affected by alcohol and drug abuse. The last category of identified need is for children and youth services. Other special needs identified within Newport Beach include low- income elderly and disabled persons. There are various agencies in Newport Beach and the surrounding community to serve these needs, including rehabilitation homes, adolescent care facilities, and medical - related facilities. In addition to the above resident -type facilities, agencies serving the populations with identified special needs include: 26 � _/ • FISH — Provides food, utility payments and rent assistance for "at risk" and low- income persons and meals for homebound seniors. Share Our Selves — Provides food and medical services for the "at risk" and low- income persons. Someone Cares Soup Kitchen — Provides nutritious meals for the "at risk" and low- income persons. Newport Beach Assistance League — Provides dental care and child day care for low- income families. South County Senior Services — Provides nutritious meals to low- income seniors. South Coast Institute for Applied Gerontology — provides adult day care and nutritious meals for disabled elderly persons. Dayle McIntosh Center - Assists persons with disabilities. Specific Housing Objectives . The housing objectives for the City of Newport Beach during this five year planning period are: E • To identify one or more projects with at least 139 affordable housing units for low - income senior citizens by the end of the 2000 -2001 fiscal year. • To complete construction of at least 139 units prior to the end of the 2004 -2005 fiscal year. The Regional Housing Needs Assessment targeted 139 units of very low and low- income units needed in the planning period through 2005. Needs of Public Housing There are no public housing units located in the City of Newport Beach. The City works with the Orange County Housing Authority on its Cities Advisory Committee to assist in the provision of low- income rental assistance to Newport Beach including the 94 Section 8 Certificates and Vouchers currently in place. 27 Public Housine Strateev 0 There are no public housing units located in the City of Newport Beach. Lead -Based Paint Needs There are no lead -based paint needs in the City of Newport Beach. The City has determined there is not a problem of lead based paint poisonings or contamination in Newport Beach after working with the Hazardous Materials Division of the Fire Department, the Building Department, and the Orange County Health Department. Barriers to Affordable Housine Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing within the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may have a role in altering the cost and availability of housing. In many of these areas, localities have varying degrees of discretion to modify state standards for local implementation and/or conditions. While these regulations may in some cases add cost to the development of housing and may act as a • constraint to the production of low cost housing, the City of Newport Beach has taken actions to waive or reduce requirements as an incentive to produce low cost housing. In Newport Beach, there is a very limited supply of vacant land remaining for development. This limitation on the supply of land, the desirability of the Newport Beach and the nearby community create market pressures that greatly increase the cost of land. Land costs are generally much higher than land costs in other areas of Orange County. The growing market demand for housing in Newport Beach and the small supply of developable land has had a strong impact on the financial aspects of residential development in the City. The greatest impact of this market demand on cost of new housing is seen in the price of residential land in the City, making it difficult to produce low cost housing. The lack of remaining land and the high cost of land are the most significant constraints to low cost housing. Density increases are often a method used to decrease land cost on a per unit basis. The City offers density bonus incentives to encourage the production of affordable housing. As described in the housing analysis section above, the City does have a high percentage of multi - family housing density. Another barrier to the development of housing in Newport Beach is the California Coastal Act of 1976. Approximately 3,800 of the 10,000 acres of land within Newport Beach (or almost 40% of the City's land area) are within the coastal zone and subject to the California Coastal Act of 1976. The California Coastal Act of 1976 requires each municipality to . prepare a Local Coastal Program, including a Land Use Plan, for those areas of the City 28 56 . which are within the coastal zone, for submission to and certification by the California Coastal Commission. The Land Use Plan, as required, sets forth sensitive habitat areas and unique coastal resources, new development of visitor serving facilities and coastal dependent uses, and land use designations for residential, commercial, public (including semi - public and institutional), and industrial uses within the coastal zone. Given that the Land Use Plan of the Newport Beach Local Coastal Program has been certified, land use designations may not be modified without the approval of the California Coastal Commission. Sensitive areas such as coastal bluffs are not developable at all. Consequently, the City does not have complete authority to redesignate land uses on much of the undeveloped land in the City. Fair Housing The City of Newport Beach provides fair housing education, counseling, housing dispute resolution services and enforcement working with tenants, landlords homeowners and home seekers through the Fair Housing Council of Orange County. The City uses CDBG funds to contract with the Fair Housing Council of Orange County. Over 70% of households served by the Fair Housing Council have incomes below 80% of the area median. Anti - Poverty Strategy The City of Newport Beach seems to have a growing population of low- income elderly • residents. Results of the 2000 Census are expected to confirm this trend, recognized by the City's Oasis Senior Center. The strategy to address this need in Newport Beach includes a plan to provide nutritious meals through CDBG funded agencies such as South County Senior Services and FISH - Harbor Area. Also, the provision of affordable housing for low - income seniors is a priority identified in the Five Year Strategy and in the Specific Housing Objectives described above. 29 5 VI: Community Development . Priority Non - Housing Community Development Needs In addition to providing a suitable living environment with decent housing, the Community Development Block Grant Program is intended to encourage and support the development of a balanced, diverse community by expanding economic opportunities, principally for persons of low and moderate income levels, elimination of slums and blight, the prevention of blighting influences and the deterioration of property It is the intent of the City to provide for the needs of "at risk" and homeless persons and low and moderate income persons and families in the areas of job creation and development. Correctly serving this population requires design modifications and improvements to existing commercial districts, improvements to arterial streets and improved circulation and access to commercial districts to promote the revitalization of the economy. These activities provide an opportunity to create jobs for low and moderate income persons, "at risk" homeless and homeless persons to make them self - sufficient and eliminate poverty within the community. Based on extensive community input, the following is a summary of the non - housing objectives and activities which may be pursued by the City of Newport Beach in the next five year period. Objective: To alleviate physical and economic distress through the stimulation of private • investment and community revitalization in areas with stagnating or declining tax base. Objective: To eliminate conditions which are detrimental to health, safety and public welfare through the rehabilitation of neighborhood and community facilities. Objective: To preserve the surrounding neighborhood and include the economic empowerment of the lower income residents, for low and moderate income persons, households and families. Objective: The elimination of slums and blight, the prevention of blighting influences and the deterioration of property. Activity: To improve public facilities to stimulate economic revitalization in areas of low and moderate income residents. Obstacles: The assistance for non - housing community development needs is dependent on continued funding. See Table 2B — Priority Community Development Needs 30 5� TABLE 2 -B Community Needs r— Anti-Crime Programs • Overall Sub - Categories Crime Awareness (051) Overall Sub - Categories Rehab; Publicly or Privately -Owned Commer (14E) Cl Land Acquisition /Disposition (17A) Cl Infrastructure Development (17B) CI Building Acquisition, Construction, Re (17C) Other Commercialllndustrial Improvements (17D) ED Direct Financial Assistance to For -Pro (18A) ED Technical Assistance (18B) Micro - Enterprise Assistance (18C) Infrastructure Overall Sub - Categories Flood Drain Improvements (031) Water /Sewer Improvements (03J) Street Improvements (03K) Sidewalks (03L) Tree Planting (03N) Removal of Architectural Barriers (10) Privately Owned Utilities (11) Need Level Units 0 U Estimated $0 Need Level Units Estimated High 0 $10,000,000 -- 0 $0 — 0 $0 High 0 $10,000,000 — 0 $0 — 0 $0 — 0 $0 — 0 $0 — 0 $0 Need Level Units Estimated -- 0 $4,000,000 — 0 $0 — 0 $0 High 0 $1,000,000 High 0 $800,000 High 0 $200,000 — 0 $0 High 0 $2,000,000 rice m u a Admmiscracnvn Need Level Units Estimated Overall High 0 $0 Sub-Categories' 30A 55 Community Needs (Page 2) Overall Sub - Categories Public Facilities and Improvements (Gener (03) Handicapped Centers (03B) Neighborhood Facilities (03E) Parks, Recreational Facilities (03F) Parking Facilities (03G) Solid Waste Disposal Improvements (03H) Fire Stations /Equipment (030) Health Facilities (03P) Asbestos Removal (03R) Clean -up of Contaminated Sites (04A) Interim Assistance (06) Non - Residential Historic Preservation (16B) Overall Sub - Categories Public Services (General) (05) Handicapped Services (05B) Legal Services (05C) Transportation Services (05E) Substance Abuse Services (05F) Employment Training (05H) Health Services (05M) Mental Health Services (050) Screening for Lead -Based Paint/Lead Hazar (05P) Need Level Units Estimated 1 High 0 $5,500,000 High 0 $1,000,000 -- 0 $0 -- 0 $0 High 0 $1,000,000 High 0 $2,000,000 -- 0 $0 -- 0 $0 — 0 $0 — 0 $0 -- 0 $0 -- 0 $0 High 0 $1,500,000 Need Level Units Estimated 1 0 $0 -- 0 $0 — 0 $0 — 0 $0 — 0 $0 — 0 $0 -- 0 $0 -- 0 $0 -- 0 $0 -- 0 $0 . Vlllwl rwy�ama Need Level Units Estimated Overall — 0 $0 Sub - Categories Senior Centers (03A) -- 0 $0 Senior Services (05A) -- 0 $0 30 -B 0 • ��I Community Develonment Objectives The primary expenditure for this Consolidated Plan Document will be on Balboa Peninsula public facility improvements corresponding with the Balboa Village Pedestrian and Streetscape Improvement Plan approved by the City Council. CDBG funds will be leveraged with City off - street parking funds and City neighborhood enhancement funds. Phase One includes improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street. 2000 -2001 funds designated for Peninsula improvement projects will fund construction drawings and other pre - construction costs, a facade improvement program, and code enforcement. In the five year planning period of this Consolidated Plan, the City of Newport Beach will facilitate public facilities improvements associated with the City Council approved Balboa Village Pedestrian and Streetscape Improvement Plan In FY 2000 -2001, engineering construction documents will be significantly completed for Phase One improvements including the Balboa Boulevard street widening, Pier Parking lot improvements, Pier Plaza improvements and the Lot A Connecting access to Main Street. In FY 2001 -2002, Phase I Construction will begin. In FY 2002 -2003, Phase I Construction will be completed. 0 Strategic Vision for Change The community, through extensive public meetings, homeowner association meetings, business group meetings and other outreach meetings has worked to develop and accept the Balboa Village Pedestrian and Streetscape Improvement Plan. The City is planning to leverage public facility CDBG funds for a strategic economic vision for the Balboa Peninsula area. Private funds from area businesses are collected through the Balboa Village Business Improvement District assessments and reinvested in the area through promotional activities, special events and improvements. A non - profit group, Balboa Performing Arts Theater Foundation is fundraising to reopen a historic theater in the heart of Balboa Village. It is expected this will stimulate economic renewal in the area. Neighborhood Revitalization Strategy The City does not have a neighborhood revitalization strategy area. Public Housing There are no public housing units in the City of Newport Beach. 0 31 Needs of Special Populations The community development needs of special populations will be met through continued location and funding for ADA (Americans with Disabilities Act) improvements to promote increased accessibility. Identifvine Benchmarks Improvements to public facilities, combined with local funding and private investment is expected to reduce the high vacancy rate in Balboa Village and create new job opportunities for low and moderate income residents of Newport Beach. 0 0 32 5'° VII: CONSOLIDATED ACTION PLAN FY 2000 — 2001 One Year Use of Funds A. Sources of Funds Federal Programs The federal resources the City will use during the 2000 -2001 Fiscal Year are listed below. Community Development Block Grant Program - Economic Development: CDBG funds to stimulate economic growth on the Balboa Peninsula. Community Development Block Grant (CDBG) Program - Homeless Assistance Activities. Grants to non- profit homeless shelters and homeless assistance programs improve the quality of existing emergency shelters and increase the number of persons assisted through these shelters. Community Development Block Grant (CDBG) Program - Homeless Prevention. Grants to non - profit "at risk" homeless assistance program prevent homeless persons and families by providing temporary rental assistance. Community Development Block Grant (CDBG) Program - Elderly and Handicapped Assistance. Grants to non - profit organization to provide meals to elderly and homebound persons. Community Development Block Grant (CDBG) Program - Counseling for Persons with Alcohol and Drug Abuse. Grants to non - profit organization to provide counseling to persons with alcohol and drug dependency. Section 8 Rental Certificates Program and Rental Voucher Program. The Orange County Housing Authority (OCHA) administers this program which provides rental assistance payments to private owners who lease their units to eligible very-low income families. A tenant receives a certificate from OCHA and may rent any unit in the City that meets Section 8 housing quality and rent rate standards and meets that household's family size requirements. The tenant must pay 30% of their household income and OCHA pays the difference between the tenant's payment and the permitted rent, but not more than the Fair Market Rent (FMR) established by HUD, to the landlord. Once a household obtains this certificate assistance, they may continue to 33 5'� receive assistance providing they remain eligible based on income. This program has a waiting list which exceeds the number of available Section 8 certificates. The City of Newport Beach currently has 94 households receiving Section 8 rental certificates and vouchers. Non - Federal Public Programs: Local Programs The City has received $2,020,000 as a result of development of the Ford/Loral site for the provision of affordable housing in Newport Beach. The City is currently analyzing housing rehabilitation or new affordable housing opportunities to get the most leveraged benefit with these funds. On March 14, 2000, the City Council established an Affordable Housing Task Force to determine best use of these and other City resources to provide affordable housing in Newport Beach. Programs such as density bonuses, waiver of fees and relaxation of development standards are made available to developers of affordable housing. These supplemental City Programs enable the City and developers to leverage housing funds when developers seek private and commercial sources of capital. The City of Newport Beach shall maintain its policy to waive or reduce requirements and offer density bonuses as an incentive to produce low cost housing. These are the City's actions to remove the negative effects on the production of low cost housing. City funding sources will be used to assist the economic stimulation efforts on the Balboa Peninsula and to provide more flexibility in use of these funds. City funds include off - street parking funds, established neighborhood enhancement funds and Business Improvement District matching funds. Private Resources: For - Profit New Construction Activities: For - profit resource investment comes mostly through developers who agree to participate in the CDBG Program, and CDBG supplemental programs such as density bonuses, waiver of fees and relaxation of development standards which are made available to developers of affordable housing. This permits the 34 • developers to leverage funds to obtain private and commercial sources of capital. Non - Profit All Social Service Activities: Non - profit organizations receive tax deductible contributions, grants, and nominal user fees for their on- going affordable housing and supportive services activities. New Construction Activities: Non - profit resource investment comes mostly through non - profit developers who receive funding from other public and private sources. The Balboa Village Business Improvement District has been formed, allowing businesses to assess themselves and invest in collective promotion and improvements for the area. B. & C Statement of Specific Obiectives/Description of Projects General Priorities • The City's five year Consolidated Planning Document (CPD) identifies three general areas as high priorities for funding during 2000 -2004. 1. High Priority: Public Facility Improvements — Balboa Peninsula Neighborhood Revitalization Area. Activities and Program Programs other than social services and administration account for 65% of the total budget, which in 2000 -2001 is $323,700. These funds have been and are proposed to be used primarily for improvements and programs identified as part of the Balboa Peninsula Revitalization efforts, code enforcement on the Balboa Peninsula and ADA improvements. One -half of a code enforcement position for the Balboa Peninsula Revitalization area is expected to continue throughout the 2000 -2004 Consolidated Planning period. The City Council approved the $7.5 million Balboa Village Pedestrian and Streetscape Improvement Plan, and this project is expected to be the primary expenditure of 2000 -2004 CDBG funds. CDBG funds will be leveraged with City off - street parking funds and City neighborhood enhancement funds. Phase One includes improvements and street widening to Balboa Boulevard, Pier Parking Lot, • Pier Plaza, and the Lot A connecting access to Main Street. This fiscal year, funds designated for Peninsula improvement projects will fund construction drawings and 35 �j other pre - construction costs, a facade improvement program, and code enforcement. . Any unexpended funds from the annual grant will be designated and held for Phase One construction. As stated in the Non - Housing and Community Development Needs portion of the Housing Market Analysis, it is the intent of the City to provide for the needs of "at risk" and homeless persons and low and moderate income persons and families in area of job creation and development. Correctly serving this population requires design modifications and improvements to existing commercial districts, improvements to arterial streets and improved circulation and access to commercial districts to promote the revitalization of the economy. These activities provide an opportunity to create jobs for L/M income, "at risk" homeless and homeless persons to make them self - sufficient and eliminate poverty within the Community. 2. High Priority: Homeless Persons and Other Persons with Special Needs Activities and Program s As stated in the City's Housing Element, it is the intent of the City to provide for the needs of persons and families in need of emergency shelter and transitional housing. Further, as stated in the Housing Element, it is the intent of the City to provide for the development of a variety of housing types,and products for all income levels of the Community. The City intends to provide for persons with special needs through social service providers funded with CDBG social service funds and continuing to contract with the Orange County Fair Housing Council. The City shall continue to determine the extent of homelessness in Newport Beach and promote the collection of data on homeless persons. The City shall continue to participate on the Orange County Homeless Issues Task Force. The City has allocated a portion of its 2000 -2001 Community Development Block Grant (CDBG) funds to social service agencies that provide services to homeless persons and "at risk" of becoming homeless. These funds were allocated in conformance with the procedures prescribed by the CDBG Program. The following social service agencies were allocated a portion of the City's 2000 -2001 CDBG funds to provide emergency and temporary shelter, food and services and housing assistance to homeless and "at risk" of becoming homeless households and persons. FISH (Friends in Service to Humanity) is a Newport Beach based social service agency that assists clients by subsidizing rent payments for "at risk" households and persons facing eviction and prevents them from becoming homeless. FISH also provides payment for temporary shelter at motels for homeless households and persons. Based on past experience, an estimated 223 Newport Beach households and "at risk" households may receive subsidized rental assistance and/or emergency and . temporary shelter. 36 S1 • SPIN (Serving People in Need) is a Newport Beach based social service agency that assists clients by providing first and last months rent and security deposits for homeless households and persons to make the transition to permanent housing and independent living. SPIN also subsidizes rent payments for "at risk" homeless households and persons "at risk" homeless households. Based on past experience, it is estimated that an estimated 11 Newport Beach households may receive substance abuse recovery. ORANGE COAST INTERFAITH SHELTER is located in Costa Mesa near the City of Newport Beach boundary. Homeless households and persons from Newport Beach in need of temporary shelter (up to 2 months) are referred to this shelter which provides them temporary shelter. Based on past experience an estimated 19 homeless households from Newport Beach will receive temporary shelter in the new fiscal year. WISE PLACE (formerly YWCA Hotel for Women) is located in Santa Ana and has a countywide program which provides temporary shelter (up to 60 days) for Newport Beach battered and homeless women and children. Newport Beach women in need of shelter are referred to this agency for assistance. Based on past experience, it is estimated that approximately 3 homeless women and children households from Newport Beach will be assisted with temporary shelter during the new fiscal year. OLIVE CREST is located in Santa Ana and serves low income children through provision of foster and adoptive family connections. OLIVE CREST will use CDBG funds on an outreach program to seek long term and permanent homes for abused, abandoned and neglected children and youth in Newport Beach. 3. High Priority: Low Income Elderly The following two social service agencies were allocated a portion of the City's 1999- 2000 CDBG funds to provide meals for seniors and one social service agency was allocated a portion of the City's 2000 -2001 CDBG funds to provide fair housing. FISH (Friends in Service to Humanity) is a Newport Beach based social service agency that assists homebound seniors by providing nutritious meals. SOUTH COUNTY SENIOR SERVICES (formerly SAN CLEMENTE SENIORS) is a Orange County based social service agency that assists homebound seniors by providing nutritious meals. FAIR HOUSING COUNCIL OF ORANGE COUNTY is an Orange County based organization that provides tenant and landlord counseling to provide fair housing opportunities for Newport Beach residents, including many low- income elderly • residents. 37 �b Q Geoeraphic Distribution • In Newport Beach there is a limited supply of vacant land remaining for development and as identified in the Market Inventory of the CPD there is not a significant number of substandard housing units in the City. Therefore the City will utilize its resources to best assist housing development as opportunities are discovered throughout the City. Funds used to address the need for public improvements, job creation and retention will be utilized on the City's Balboa Peninsula Area. E. Homeless and Other Special Populations Outreach and assessment of homeless is an ongoing effort through the Countywide Homeless Issues Task Force, which the City of Newport Beach participates in. Additionally, CDBG funds will be used' to support the Orange Coast Interfaith Shelter, located near the Newport Beach boundary in Costa Mesa. Emergency shelters and services supported with CDBG funds include FISH, who provides payment for temporary shelter at motels for homeless persons. Also, WISE Place for women provides temporary shelter for homeless and battered women, and is supported with Newport Beach CDBG funds. Transitional housing needs are primarily addressed by the Orange Coast Interfaith Shelter, a subrecipient of Newport Beach CDBG funds. This service agency assists homeless persons and families for up to 60 days. WISE Place also provides temporary shelter for up to 60 days. Permanent supportive housing is an identified need being addressed this fiscal year through the support of Olive Crest. Olive Crest provides foster homes and adoptive homes for abused, abandoned and neglected children and youth. This is a more permanent housing solution for Orange County children in need. Activities to assist homeless persons make the transition to permanent housing and independent living include'transitional programs funded with CDBG funds including Orange Coast Interfaith Shelter and Wise Place. Olive Crest also assists children with more permanent placement into homes through foster care and adoption. Activities to prevent low- income individuals and families from becoming homeless include a FISH program to assist individuals and families "at risk" of becoming homeless through rent subsidation and utility payments., Also, SPIN has a program which provides first and last months rent and security deposits for homeless persons and those at risk of becoming homeless. . 38 In • Special Population needs identified in Orange County include adults with mental health problems, alcohol and drug abuse, and children who are affected by mental health, alcohol and drug abuse issues. These special needs are served through the social service agencies identified as CDBG social service subrecipients. One such agency, located in Newport Beach, is SPIN. SPIN specializes in substance abuse recovery. F. Needs of Public Housine Since the City of Newport Beach does not have any public housing units located within the City, it does not propose to undertake any activities to increase the involvement of public housing residents to become more involved in the management of public housing, nor to develop other homeownership opportunities for these residents. G. Anti - Poverty Strategy As funding permits, the City shall continue to use its CDBG social service money to fund agencies that provide housing for the homeless and elderly, counseling programs for drug and alcohol abusers, and provide shelter for homeless and abused women and children. The City shall continue to use its CDBG social service money to fund agencies providing assistance to these families and individuals, especially those with incomes below the poverty line, and those "at risk" of becoming homeless. The City shall continue to participate in the Section 8 Rental Assistance program to provide Section 8 Rental Assistance Certificates and Vouchers to persons or households with incomes below the poverty line. The City shall utilize CDBG funds for public improvement for the creation and retention of jobs for L/M income persons to make them self - sufficient to eliminate poverty within the community. H. Lead Based Paint Hazard Reduction The City of Newport Beach shall require the abatement of lead based paint hazards in all units assisted with federal funds. I. Other Actions: Reduction of Barriers to Affordable Housine The City of Newport beach shall maintain its policy to waive or reduce requirements and offer density bonuses and financial assistance as an incentive to produce low cost housing. These are the City's actions to encourage the production of low cost housing and to reduce the barriers to affordable housing. I Monitorine . Annual Monitoring will assure compliance within the CDBG Program. The City receives quarterly reports or annual performance reports from all CDBG 39 �P subrecipients. The City reviews the performance reports and selects subrecipients for • periodical detailed site visit monitoring. These monitoring visits are documented and placed in the City's files. K. Float- Funded Activities The City of Newport Beach will not participate in any Float- Funded activities for this fiscal year. L. Locations Funds used to support social service agencies and the Orange County Fair Housing Council will be utilized for residents throughout Newport Beach. Funds used to address the need for public facilities will be mostly utilized on the Balboa Peninsula. M. Contingency Contingency funds for cost overruns on CDBG related projects have been factored into the cost estimates. Also, Balboa Peninsula public improvements projects are being funded with City Neighborhood Enhancement Funds and City Offstreet Parking Reserve Funds to leverage CDBG funding. N. Ureent Needs The City of Newport Beach does not anticipate funding for urgent needs other than those already identified in this Action Plan. 0 ao 0 • 0 TABLE 3 ACTION PLAN TABLE - PROPOSED PROJECTS 2000 -2001 COMMUNITY DEVELOPMENT BLOCK GRANT SOCIAL SERVICES (15 %) (Max. = $74.700) 1 st Priority: Homeless Services FISH - Homeless Emergency Asst. SPIN - Substance Abuse Rehabilitation Program (S.A.R.P) Orange Coast Interfaith Shelter - Temporary Shelter Olive Crest - Permanent Home Placement for Children WISE Place (O.C. YWCA) — Temporary Shelter Subtotal: 2nd Priority: Low Income Elderly South County Seniors FISH - Mobile Meals Subtotal: Total social services: ADMINISTRATION (20 %) (Max. = $99.600) $ 16,500 $ 10,000 $ 8,000 $ 5,000 4,000 $ 43,500 $ 15,600 $15,600 $ 31,200 $ 74,700 Fair Housing Council of Orange County $ 13,788 Administration Expenses $ 85,812 Administration Subtotal: $ 99,600 BALBOA PENINSULA NEIGHBORHOOD REVITALIZATION AREA/ OTHER PROGRAMS (65 %) (Max. = $323.700) ADA Improvements Code Enforcement — Balboa Peninsula 3rd Priority: Balboa Peninsula Neighborhood Revitalization Area $ 30,000 $ 25,000 $268,700 Balboa Village Pedestrian and Streetscape Improvement Plan: Improvements and street widening to Balboa Boulevard, Pier Parking Lot, Pier Plaza, and the Lot A connecting access to Main Street, Commercial Facade Improvements. Other Programs Subtotal FY 2000 -2001 TOTAL $323,700 $ 498.000 41 (P(-1 VIII: Certifications • In accordance with the applicable statues and the regulations governing the consolidated plan regulations, the City of Newport Beach certifies that: Affirmatively Further Fair Housing The City of Newport Beach will affirmatively further fair housing„ which means it will conduct an analysis of impediments to fair housing choice within the City, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain record reflecting that analysis and actions in this regard. Anti - displacement and Relocation Plan The City of Newport Beach will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implement regulations at 49 CFR24; and the jurisdiction has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104 (d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG program. Drug Free Workplace The City of Newport Beach will or will continue to provide a drug -free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug -free awareness program to inform employees about — (a) The dangers of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug -free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; aand (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 1. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 2. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will — (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five • calendar days after such conviction; 42 0 1. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 2. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted — (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 1. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Anti - Lobbying To the best of the City of Newport Beach's knowledge and belief: . 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the continuation, renewal amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; u 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instruction; and 3. It will require that the language of paragraph 1 and 2 of this anti - lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 43 � 0 Authority of Jurisdiction • The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulation. Consistency with Plan The housing activities to be undertaken with CDBG funds are consistent with the strategic plan. Section 3 It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulation at 24 CFR Part 135. Specific CDBG Certifications The City of Newport Beach certifies that: Citizen Participation It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan Its consolidated housing and community development plan identifies community development and housing needs and specifies both short -term and long -term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. Following a Plan It is following a current consolidated plan that has been approved by HUD. Use of Funds It has complied with the following criteria: Maximum Feasible Priority — With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give a maximum feasible priority to activities which benefit low and moderate income 44 �1 families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available. 2. Overall Benefit — The aggregate use of CDBG funds including Section 108 guaranteed loans during program years 2000, 2001, 2002, 2003, and 2004, shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 3. Special Assessments — It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. . The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate- income (not low - income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. CJ Excessive Force It has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance or to exit from a facility or location which is the subject of such non - violent civil rights demonstrations within its jurisdiction. 45 6C Compliance with Anti - discrimination Laws The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601 - 3619), and implementing regulations. Lead -Based Paint Its notification, inspection, testing and abatement procedures concerning lead -based paint will comply with the requirements of 24 CFR S570.608. Compliance with Laws It will comply with applicable laws. Homer Bludau, City Manager Date 46 u • IX: Summary of Citizen Comments January 26, 2000 City Council Meetine There were no public comments, either orally presented or written. March 14, 2000 City Council Meeting David Levy, representing the Orange County Fair Housing Council, spoke to the City Council requesting the primary focus of CDBG funds in the Consolidated Plan Document be on constructing affordable housing in Newport Beach. April 11 2000 City Council Meeting Comments from the April 11, 2000 City Council meeting, plus any comments received during the required 30 day public review period, will be added to this section and submitted with the final Consolidated Plan Document to be submitted to HUD. 47 16