HomeMy WebLinkAbout10 - CDBG Consolidated Plan & One-Year Action PlanCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 10
May 10, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community & Economic Development, Planning Department
Daniel R. Trimble, Program Manager
9491644 -3230. e-mail: dtrimble _ city.newport- beach.ca.us
SUBJECT: Review of the Community Development Block Grant Fiscal Year 2005-
2009 Consolidated Plan and the 2005 One -Year Action Plan to the U.S.
Department of Housing and Urban Development.
ISSUE:
The U.S. Department of Housing and Urban Development (HUD) requires the City of
Newport Beach to complete a Consolidated Plan to receive funds under the Community
Development Block Grant (CDBG) program. The Consolidated Plan is required to be
prepared every five years and contains an assessment of the housing and community
development needs of the community.
The One -Year Action Plan (Action Plan) is a component of the Consolidated Plan. This
document serves as the annual application for CDBG funding. The City's Action Plan
contains a list of activities the City will assist with CDBG funds during the upcoming
fiscal year. The City's entitlement amount for the 2005 -2006 fiscal year, July 1, 2005
to June 30, 2006, is $412,233.
RECOMMENDATION:
1. Hold a public hearing to receive comments on the 2005 -2009 CDBG
Consolidated Plan and the Action Plan; and
2. Approve the 2005 -2009 CDBG Consolidated Plan and the Action Plan; and
3. Authorize the City Manager or his designee to execute the FY 2005 -2006 CDBG
Program Grant Agreement and all related documents on behalf of the City; and
4. Adopt Resolution No. authorizing the City Manager to submit the FY
2005 -2009 application for CDBG funds, the 2005 -2009 Consolidated Plan and
One -Year Action Plan to HUD.
DISCUSSION:
The City of Newport Beach's 2005 -2009 Five -Year Consolidated Plan proposes a
strategic vision for housing and community development in the City. This plan ensures
that citizens within the community have an overview of Newport Beach's housing and
community development issues; the annual goals, objectives, and actions proposed to
address the City's needs; and the specific projects proposed to carry out those goals
and objectives. According to HUD regulations, the City must also submit an Annual
Action Plan at least 45 days prior to the beginning of the program year. The City of
Newport Beach operates on a fiscal year of July 15t through June 30tH
Citizen Participation
On November 3, 2004, the Planning Department conducted a Community Meeting with
Newport Beach residents and community based organizations to evaluate the current
level of services offered and to identify any new community needs. In addition, a
Needs Assessment survey was made available on the City's website and mailed out to
approximately 33,000 households within the City of Newport Beach and to garner
citizen comments on the needs of the community. As a result of that meeting, the
major community needs categories identified were affordable housing, special needs,
homelessness, and non - housing community development.
Funding Strategies
Funding strategies serve as the basis of the Consolidated Plan funding decisions for
the next five years (2005- 2009). The City will only allocate CDBG funds to programs
and projects that significantly contribute to the City's efforts to meet the goals and
objectives described in the following funding priorities:
1. Affordable Housing Funding Priorities:
a. Increase supply of housing units affordable to low- and moderate -
income households through new construction.
b. Maintain existing level of Section 8 housing vouchers and rent -
restricted units within the City.
c. Ensure universal access to fair housing choice within the City.
2. Special Needs Funding Priorities:
a. Increase accessibility of persons with disabilities to public facilities.
b. Improve supportive services for elderly residents.
c. Increase supportive services for persons suffering from substance
abuse.
d. Increase supportive services for persons living with HIV /AIDS.
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 2
3. Homeless Funding Priorities:
a. Preserve the supply of emergency and transitional housing.
b. Improve services for homeless persons and prevent those at -risk of
homelessness from losing their housing.
c. Improve services for women and children who are homeless
because of domestic violence.
4. Non - housing Community Development Priorities:
a. Eliminate blight, blighting influences, and prevent the deterioration of
property.
b. Improve health and safety through rehabilitation of community
facilities.
c. Preserve community infrastructure in order to provide economic
empowerment in targeted neighborhoods.
In addition to the goals and objectives noted above, the federal government also
requires that the City make every effort to address barriers to affordable housing. The
City's primary strategies to meet affordable housing needs are to:
• Increase the supply of affordable housing units for low- and moderate - income
households through new construction.
• Maintain existing level of Section 8 housing vouchers and rent - restricted units within
the City.
• Ensure universal access to fair housing choice within the City.
The City has the option to fund fair housing services as part of the public service grants
(subject to the 15% maximum allocation) or as part of the general administration funds
(subject to the 20% maximum allocation). In order to make more funds available for
public service projects, the City has elected to use administration funds to pay for these
services.
Strategies for addressing the priorities noted above can be found in the Strategic Plan
section of the attached copy of the Consolidated Plan.
Notice of Funding Availability
On December 19, 2004, the City published a Notice of Funding Availability (NOFA) in
the Daily Pilot newspaper to announce the availability of CDBG funds and solicit
proposals from tax - exempt nonprofit organizations that provide eligible CDBG services
or projects that benefit Newport Beach residents. The City also made the application
available on the City's website and mailed notices to agencies who receive funds in the
current Fiscal Year and other agencies who had expressed interest in receiving funds.
In response to the NOFA, eleven public service providers submitted applications for
CDBG grants for Fiscal Year 2004 -2005, requesting a total of $156,018. Included in
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 3
this report is a summary of the CDBG Public Service Grant Applications and staff
recommendations to the City Council.
Action Plan
The 2005 -2006 Annual Action Plan will delineate the first (1s) year of the Five -Year
Consolidated Plan. The Action Plan contains Federal, State, and Local programs
available to meet those goals and objectives that consist of: affordable housing,
homelessness, non - housing community development, removal of housing barriers,
actions to reduce lead -based paint hazards, elimination of slums and blight,
conservation and expansion of the City's housing stock, expansion and improvement of
the quantity and quality of community services, better utilization of land and other
natural resources, reduction in the isolation of income groups within communities and
geographical areas, restoration and preservation of properties of special values and
alleviation of physical and economic distress.
For fiscal year 2005 -2006, the City of Newport Beach expects to receive approximately
$412,233 in Community Development Block Grant (CDBG) funds. Attached for your
review is a draft copy of the 2005 Annual Action Plan, including all projects and
activities that the City anticipates funding in FY2005 -2006.
Copies of the plan have been made available at the City of Newport Beach Planning
Department. The public review and comment period commenced on April 1, 2005 and
will continue through May 5, 2005. The deadline for submitting the City's Action Plan to
HUD is May 15, 2005. The summary of the 2005 -2006 Annual Action Plan allocation is
as follows:
Summary of Applications
The following information includes a brief description of the proposed services activities,
including the amount of funding requested:
Program /Project Amount Requested
Assessment and Treatment Services Center $8,000
The Assessment and Treatment Services Center provides free psychotherapy services
to extremely low to moderate income children and families who reside within the City of
Newport Beach and who are referred by either personnel for the Newport Mesa Unified
School District or from the City of Newport Beach Police Department. It is anticipated
that service will be provided to 2 Newport Beach youth.
Council on Aging Orange County $10,000
The Linkages Care Management program goal is to prolong the wellness and
independence of older and dependent adults by assessing their needs, developing a
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 4
comprehensive care -plan then link them with appropriate health and social services and
monitor their progress. This program hopes to assist 13 elderly and or disabled
Newport Beach residents.
Fair Housing Council of Orange County $13,068
The program will further fair housing in Newport Beach through education,
landlord /tenant counseling, and legal action when necessary. It is anticipated the
program will assist 310 Newport Beach residents with landlord /tenant related problems
and 5 households with allegations of discrimination.
FISH Harbor Area Inc. — Mobile Meals $20,000
This program offers rental /utility assistance, supplemental groceries, and case
management to low income families. It is estimated that 70 Newport Beach residents
will be provided with emergency services and case management.
FISH Harbor Area Inc. — Mobile Meals $30,000
Mobile Meals delivers nutritional meals to individuals who are homebound due to age,
illness, or disability. This program allows clients to live independently who may
otherwise be institutionalized. It is estimated the program will serve 108 unduplicated
Newport Beach residents with 10 meals per week for the duration of the program year.
Friendship Shelter $1,250
Friendship Shelter is the only year -round emergency shelter in South Orange County
for homeless single adults. Clients receive up to 60 days each of emergency shelter,
three daily meals, other support services, and will increase their level of self- sufficiency
with the new life skills gained through the agency's Self- Sufficiency program. This
program anticipates serving 5 homeless individuals from Newport Beach.
Human Options $5,700
Human Options provides such services as: emergency shelter, 24 -hour bilingual crisis
hotline, counseling, and case management to address the needs of battered women
and their children, help them break the cycle of domestic violence and transition them
to become independent and self - sufficient. This program anticipates serving 5 clients
from the City of Newport Beach.
Mercy House $5,000
Emmanuel House, a transitional housing program for adults living with HIV or AIDS,
provides homeless adults afflicted with this disease the opportunity to live in a dignified
home environment and receive supportive services necessary to rebuild their lives.
Funds will be used for staff salaries and program supplies needed for the program. It is
estimated that 4 Newport Beach residents will be served.
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 5
Orange Coast Interfaith Shelter (OCIS) $20,000
OCIS is one of only two emergency shelters in Orange County. The program offers both
emergency shelter and transitional housing. The program anticipates providing
emergency shelter for 50 -55 homeless individuals per night and transitional housing for
14 families at a time. Funds will be used for administrative costs.
Serving People in Need (SPIN) $20,000
The SPIN Substance Abuse Recovery Program (SARP) provides access to recovery
programs to homeless and low income individuals who cannot afford it otherwise. The
program includes one month's room and board, counseling, and supplemental services
focused on employment, medical assistance, and legal assistance. Funds will be used
for case management, shelter costs, and operational costs. Funds will cover costs for
case management for 18 individuals and indirectly support the whole program that
serves 450 individuals annually.
South County Senior Services, Inc. $12,000
This program provided home - delivered meals to elderly (60 years of age and older)
residents of Newport Beach, Corona Del Mar, and Newport Coast who are homebound
due to illness, surgery or otherwise are unable to prepare meals for themselves. Each
client receives a total of 15 meals Monday through Friday. Funds will be used to
subsidize meals.
Youth Employment Services of the Harbor Area, Inc $6,000
Youth Employment Services of the Harbor Area, Inc (YES) provides employment
services to walk -in youth ages 14 -22 years who live in Newport Beach. Clients will
receive pre - employment skills training, job coaching and placement services. This
program anticipates serving 50 Newport Beach residents.
WISE Place $5,000
"Steps to Independence" provides transitional shelter, food, clothing, counseling, and
employment assistance to homeless women without children. The program handles a
variety of clientele, including victims of domestic violence, emancipated youth, seniors,
and women with developmental disabilities. The end goal is self- sufficiency. Residency
ranges from 6 to 12 months, during which supportive services such as case
management, employment counseling, psychological counseling, and life- skills classes
are offered. Funds will be used to cover the program costs for one Newport Beach
resident.
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 6
City of Newport Beach — ADA Sidewalk Improvements $50,000
Funds for the ADA Sidewalk Improvement project will provide for improvements to
public facilities to allow for greater accessibility to Newport Beach residents with
disabilities. Improvements will include curb cuts and installation of ramps throughout
the City.
City of Newport Beach — CDBG Administration $69,378
The CDBG Administration program will pay for City staff salaries and consultant fees to
administer the CDBG program, prepare required reports, monitor sub - recipients, and
ensure overall program compliance with the relevant federal regulations.
City of Newport Beach — Code Enforcement $25,000
Funds for this activity will provide the salaries for Code Enforcement officers to conduct
housing inspections in designated low- and moderate - income areas of the City to
ensure City health and safety codes.
City of Newport Beach — Section 108 Loan Repayment $186,301
Funds for this activity will be used to repay the City's Section 108 Loan. The loan was
used to partially fund public improvements to the Balboa Target Area totaling $8 million.
The scope of work includes the Balboa Village Pedestrian and Streetscape Plan,
Street Improvements to Balboa Boulevard, Pier Parking Lot, Pier Plaza and Lot A
connecting access to Main Street.
Fund Allocation
The CDBG regulations limit the amount of funding that can be used for public service
activities. The limit is based on obligations for public services and cannot exceed
fifteen percent (15 %) of the program year's entitlement grant. Additionally, no more
than twenty percent (20 %) of the program year's grant may be obligated for planning
and administrative costs. The remaining amount (65 %) can then be allocated to
support capital expenditure projects.
Given the level of funding available, the amount of funding requested, past performance
and proposed accomplishments, anticipated benefit to Newport Beach residents, and
City priorities, staff recommends that the City Council provide funding for following
activities:
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 7
FY 2005 -2oo6 PROGRAMS AND PROJECTS
REQUESTED
FUNDING
RECOMMENDED
FUNDING
ADMINISTRATION
(z0 % Max. = $82,446)
CDBG Administration
$69,378
$69,378
(City Personnel Expenses and Consultant Services)
Fair Housing Council of Orange County
$13 068
$13,o68
Fair Housing Services
Total:
$82,466
$823466
PUBLIC SERVICES PROGRAMS
(15% Max. _ $613833)
Assessment and Treatment Services Center
$o
Youth Counseling Program
$8,000
Council On Aging Orange County
$0
Linkages Care Management
$10,000
Fish Harbor
$203000
$113500
Homeless Prevention
Fish Harbor
$303000
$153000
Mobile Meals
Friendship Shelter
$o
Emergency Shelter
$1 250
Human Options
$5,700
$33333
Emergency Shelter for Battered Women
Mercy House
$53700
$43500
Emmanuel House Food Pant
Orange Coast Interfaith Shelter
$8,000
Temporary Shelter
$5,000
Serving People In Need
$203000
$83000
Substance Abuse Treatment
WISEPLACE
$203000
$43500
Steps to Independence
South County Senior Services, Inc.
$73000
Home Delivered Meals
$12,000
Youth Employment Services for the
$o
Harbor Area, Inc.
$6,000
Walk -In Services for Youth
Total:
$137,950
$61,833
CAPITAL EXPENDITURE PROJECTS
( 65 % Max = $2673934)
City of Newport Beach - Code Enforcement
$25,000
Code Enforcement
$25,000
City of Newport Beach - Public Works
$50,000
ADA Sidewalk Improvements
$50,000
City of Newport Beach - Planning
$186,301
Section 108 Loan Repayment
$186,3oi
Total:
$261,301
$261,301
The rationale for this decision is based on use of the funding criteria established in our
Consolidated Plan and described earlier in this report.
Environmental Review:
Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4).
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 8
Public Notice:
Notice of the public hearing was published in the Daily Pilot on March 14, 2005.
Funding Availability:
The City has been notified that it will be allocated $412,233 in CDBG Funds for the
2005 -2006 Fiscal Year.
Submitted by:
SHARON Z. W90 DANIE" L R. TRIMBLE
Assistant City Ndahager C & ED Program Manager
Attachments: Resolution 2005 -
Draft 2005 -2009 Consolidated Plan
Draft One -Year Action Plan
F. IUSERSIPLMShareMCDBGIFY2005- 20061Con PlanICity_Council Report 200509 4a.doc
Prepared by:
FY 2005 -2009 CDBG Consolidated Plan and One -Year Action Plan
May 10, 2005
Page 9
CITY COUNCIL RESOLUTION 05-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH APPROVING THE ANNUAL ACTION PLAN WHICH 1S PART OF
THE CONSOLIDATED PLAN, AND THE PROJECTED USE OF COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) FOR FY 2005 -2006, AND
SUPERCEDING ALL PREVIOUS RESOLUTIONS WHICH ARE
INCONSISTENT THREWITH.
WHEREAS, the City of Newport Beach participates in the Department of Housing and
Urban Development's Community Development Block Grant (CDBG); and
WHEREAS, the City of Newport Beach anticipates receiving $412,233 in CDBG funds
for fiscal year 2005 -2006. The City also had Unprogrammed Funds remaining in the CDBG
account totaling $80,254; and
WHEREAS, the Department of Housing and Urban Development (HUD) requires the
City to prepare a 5 -year "Consolidated Plan" document for the CDBG program and which a new
Consolidated Plan will be adopted by the City in 2005; and
WHEREAS, the Annual Plan is an integral part of the Consolidated Plan; and
WHEREAS, on November 3, 2004, the City of Newport Beach's Planning Department
conducted a Community Meeting with Newport Beach residents and community based
organizations to evaluate the current level of services offered and to identify any new community
needs; and
WHEREAS, on December 19, 2004, the City published a Notice of Funding Availability
(NOFA) in the Daily Pilot newspaper to announce the availability of CDBG funds and solicit
proposals for tax - exempt nonprofit organizations that provide eligible CDBG services or projects
that benefit Newport Beach; and
WHEREAS, on March 14, 2005, the City published a public notice in the Daily Pilot
newspaper indicating that the draft Action Plan would be available to the public for review and
comment from April 1, 2005, and May 5, 2005; and
WHEREAS, on May 10, 2005, the City Council reviewed the draft Action Plan and
approved the budget. The City will amend the Action Plan to include any comments and
response to the comments that are accepted at the hearing; and
WHEREAS, the City Council has considered the community needs, priorities, and
strategies set forth in the Consolidated Plan and the Housing Element of the General Plan and
concludes the proposed allocation of $412,233 in fiscal year 2005 -2006 CDBG funds plus
$80,254 of unprogrammed CDBG Funds is consistent with the Consolidated Plan and Housing
Element; and
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WHEREAS, pursuant to Section 15378 of the State Environmental Guidelines, the
proposed project is exempt from the requirements of CEQA.
NOW, THEREFORE, the City Council of the City of Newport Beach DOES HEREBY
RESOLVE as follows:
SECTION 1. The Action Plan (Exhibit A) outlining the City's housing and community
development needs, priorities and strategies for FY 2005 -2006 is hereby adopted, and the City
Council DOES HEREBY AUTHORIZE the City Manager to be the official representative of the
City of Newport Beach to submit the Action Plan and certification required to HUD.
SECTION 2. That the City Council DOES HEREBY AUTHORIZE the Planning
Manager of the Planning Department, or his designee, to be the official representative of the City
of Newport Beach to submit required environmental documentation for CDBG projects.
PASSED AND ADOPTED by the City Council of the City of Newport Beach at a regular
meeting held on the 10th day of May 2005.
MAYOR OF THE CITY OF NEWPORT BEACH
attest:
CITY CLERK OF THE CITY OF NEWPORT BEACH
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF NEWPORT BEACH )
I, LAVONNE HARKLESS, City Clerk of the City of Newport Beach, HEREBY DO
CERTIFY that the foregoing resolution was duly adopted at a regular meeting of the City
Council of the City of Newport Beach, held on the 10th day of May 2005.
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK OF THE CITY OF NEWPORT BEACH
E: \USERS \PLN \Shared \C0RG \EY 2005 -2004 \Con Plan \CC ReSO COBI.doc
2
It
ABLE OF CONTENTS
1. Executive Summary 1 -1
Overview of the Consolidated Planning Process
Strategic Planning Table
2. Strategic Plan 2 -1
Introduction
Local Objectives
HUD - Specified Objectives
3. Available Resources 3 -1
Federal Resources
State and Local Resources
HOME Match
Other Resources
4. Distribution of Resources 4 -1
Distribution Among Priority Need
Geographic Distribution
CDBG Eligible Area Map
Project Location Map
5. Program Year Activities 5 -1
Summary
Project Details
Appendices
A. SF -424 and Certifications
B. Public Participation and Public Notices
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2)05
I),
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
Chapter 1. EXECUTIVE SUMMARY
I3
1. EXECUTIVE SUMMARY
Overview of Consolidated Plan Process
Every year the City of Newport Beach receives Community Development Block Grant (CDBG) funds
from the U.S. Department of Housing and Urban Development (HUD). The grant money is to primarily
benefit the lower income residents of the City in three ways:
• By providing decent housing
• By providing a suitable living environment
• By expanding economic opportunities
To ensure that the funds are used to meet the most urgent needs in the community, the City develops a
community needs assessment. The needs assessment includes quantitative and statistical research,
resident survey results, and input from local non - profits and service agencies. Based on the needs
assessment, the City compiles a list of goals and objectives to meet the community's needs in a Strategic
Plan. The objectives address housing, homeless, and other community development needs. A summary
of the current strategic plan is included in this Plan. Together, the community needs assessment and the
Strategic Plan from the Consolidated Plan. The Consolidated Plan is developed every five (5) years.
One -Year Action Plan for 2005 -2006 Program Year
This is the One -Year Action Plan for program year 2005 -2006 and is a one element of the 2005 -09
Consolidated Plan. It describes how the City will utilize the new HUD grant funds and other available
resources to undertake programs and projects that will help the City meet the goals and objectives
outlined in its Consolidated Plan.
In the 2005 -2006 program.year, which starts July 1 ", 2005 and ends June 30th, 2006, the City of Newport
Beach will receive $412,233 in CDBG Funds. In addition, $80,254 of CDBG funds from previous year
allocations are available for reallocation to capital expenditure projects. Overall, the City will allocate
$492,487 to the following programs:
• Fish Harbor Area, Inc. Homeless & Hunger Prevention $11,500
• Fish Harbor Area, Inc.
• Human Options
• Mercy House
• Orange Coast Interfaith Shelter
• Serving People In Need
• South County Senior Serv.
• WISEPlace
• Fair Housing Council of Orange County
• City of Newport Beach
• City of Newport Beach
• City of Newport Beach
• City of Newport Beach
Mobile Meals
$15,000
Emergency Shelter for Battered Women
$3,334
Emmanuel House
$4,500
Emergency/Transitional Shelters
$8,000
Substance Abuse and Rehabilitation Program
$ 8,000
Home Delivered Meals
$7,000
Steps to Independence
$4,500
Fair Housing Services
$13,068
Code Enforcement
$25,000
ADA Sidewalk Improvements
$50,000
108 Loan Repayment
$186,301
CDBG Administration
$72,424
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 1 -1
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
Chapter 2. STRATEGIC PLAN
15
2. STRATEGIC PLAN
Overview
The following is a summary of the Five Year Strategic Plan and how the activities proposed for the
upcoming program year will work toward achieving the goals included in the Strategic Plan. The full
version of the Strategic Plan is in the City's 2005 -2009 Consolidated Plan and can be obtained from the
City's Planning Department.
The strategic goals are divided between Newport Beach program objectives and HUD - specified
objectives. The Newport Beach program goals were developed based on the specific needs found within
the community. The HUD - specified goals are mandated by the federal government and designed to meet
common needs found in communities throughout the country. An activity will appear more than once
given that some local and federal goals overlap. All activities proposed for the 2005 program year will
strive to serve low and moderate income persons. No activities will seek eligibility under the "urgent need"
eligibility.
Newport Beach Program Objectives
Affordable Housing Funding Priorities and Strategies
1. Increase supply of housing units affordable to low- and moderate - income households through
new construction.
2. Maintain existing level of Section 8 housing vouchers and rent - restricted units within the City.
3. Ensure universal access to fair housing choice within the city.
Special Needs Funding Priorities and Strategies:
1. Increase accessibility of persons with disabilities to public facilities.
2. Improve supportive services for elderly residents.
3. Increase supportive services for persons suffering from substance abuse.
4. Increase supportive services for persons living with HIVIAIDS.
Homeless Funding Priorities and Strategies:
1. Preserve the supply of emergency and transitional housing.
2. Improve services for homeless persons and prevent those at -risk of becoming homeless from
losing their house.
3. Improve services for women and children who are homeless because of domestic violence.
Non - Housing Community Development
1. Eliminate blight, blighting influences, and prevent the deterioration of property.
2. Improve health and safety through rehabilitation of community facilities.
3. Preserve community infrastructure in order to provide economic empowerment in targeted
neighborhoods.
HUD - Specified Objectives
1. Address Obstacles to Meeting Needs
5. Develop Institutional Structure
2. Foster and Maintain Affordable Housing
6. Enhance Service Delivery
3. Remove Barriers to Affordable Housing
7. Address Threat of Lead Paint
4. Reduce Poverty
8. Improve Public Housing
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 7005 PAGE 2 -1
tb
2. STRATEGIC PLAN
Newport Beach Program Objectives: Housing
1. Increase the supply of newly constructed affordable housing units to moderate - income
households
As stated in the Newport Beach Housing Element, the City's goal is to preserve and increase housing
affordability. The City set a target of adding 120 senior housing units in the Consolidated Plan. This
goal will be met with the development of 120 units of senior housing at the Lower Bayview Project.
The City has provided $1,000,000 in subsidies and waived an additional $250,000 in fees. The
project has been approved by the Planning Commission, the City Council, and the Coastal
Commission. The project is expected to be completed in January of 2005.
2. Maintain current level of Section 8 Voucher supply
Section 8 vouchers are rental assistance payments to owners of private market rate units on behalf of
very low- income tenants. This program allows the users to find their own housing which best suits
their needs. The City will continue to support this county administered program.
3. Ensure universal access to fair housing
The City is committed to ensuring the right to housing for all of its residents. Fair housing activities
undertaken this year will be carried out by the Fair Housing Council of Orange County and will include
conflict resolution, code enforcement, legal aid, and investigation into discrimination complaints. The
City will also partner with other local jurisdictions and the Fair Housing Council of Orange County to
update the regional Analysis of Impediments to Fair Housing (AI).
The Fair Housing Council provides services above and beyond what is typically considered housing
discrimination. In the coming year, the organization will address discrimination in the following areas:
Lending Practices: While data and study has not shown discrimination in lending, efforts have
not been proactive.
• Insuring Practices: Some insurance companies may be targeting certain zip codes for higher
rates of denial or different terms and conditions for insurance coverage.
• Outreach and Education: A lack of a standard in the fair housing education system may leave
gaps in communities. In addition, some immigrant populations may not be aware of the right to
fair housing.
• Public Policies/Programs: A lack of coordination among cities in the region in regards to their
planning activities may have an adverse effect on fair housing efforts on a regional basis.
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 2 -2
11
2. STRATEGIC PLAN
Newport Beach Program Objectives: Special Needs
The City's Consolidated Plan must describe the needs of persons who are not homeless but who
require supportive housing. These 'special need" populations include elderly, frail elderly, persons
with disabilities (mental, physical, developmental), persons with alcohol or other drug addiction,
persons with HIV /AIDS and their families, and public housing residents.
1. Increase accessibility to public facilities
The City will continue to provide funding for ADA Sidewalk Improvements to public facilities
throughout the City to ensure accessibility to residents with disabilities. In the upcoming program
year, the City will provide $50,000 for such improvements.
2. Improve support services to elderly residents
Seniors are the largest and fastest growing "special need" population in Newport Beach. The City will
provide support to seniors to enable them to remain independent. In the upcoming program year, the
City will provide $15,000 of CDBG funding to FISH Harbor Area, Inc. to administer their Mobile Meals
Program. The program delivers meals to homebound seniors throughout Newport Beach. This
service allows seniors who may otherwise become institutionalized remain in their homes and
maintain their self - sufficiency.
3. Improve support services to those with substance addictions
Persons suffering from substance addictions are a target population of the City's Anti- Poverty
Strategy. Once a person has begun the recovery process, there is a higher chance they will become
self- sufficient. In the upcoming program year, the City will continue to support the efforts of Serving
People In Need (SPIN) by funding their Substance Abuse Rehabilitation Program with $8,000 of
CDBG funding. This program provides access to recovery programs to homeless and low- income
individuals whom otherwise could not afford such services. The program includes one month of room
and board, counseling, and supplemental services focused on employment, medical assistance, and
legal assistance.
4. Improve support services to HIV /AIDS population.
In the 2005 -2006 program year, the City will provide $4,500 of CDBG funds to Emmanuel House, a
transitional housing program for adults living with HIV or AIDS, the only project of its kind in Orange
County. The project is administered by Mercy House. Funds will be used to provide staff salaries
and program supplies. The program expects to assist 40 clients in Orange County.
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 2 -3
2. STRATEGIC PLAN
Newport Beach Program Objectives: Homeless
�1. Preserve the supply of emergency and transitional housing
While no emergency shelter or transitional housing facilities are located within Newport Beach, the
provision of shelter is a priority for the City. The City will work with agencies in surrounding areas
address homelessness. In FY 2005 -2006 the City will fund the following activities to meet this goal:
• Human Options Emergency Shelter for Battered Women $3,333
• Mercy House Emmanuel House $4,500
• Orange Coast Interfaith Shelter Temporary Shelter $8,000
• Serving People In Need (SPIN) Substance Abuse Rehabilitation $8,000
• WISEPIace Steps to Independence $4,500
2. Assist homeless and prevent those "at- risk" of becoming homeless
Part of the City's Anti - Poverty Strategy is to assist those "at- risk" of losing their self sufficiency and
becoming more dependent on public services. The City will fund the following projects in FY 2005-
2006 to meet this goal:
• FISH Harbor Homeless and Hunger Prevention $11,500
• South County Senior Services Home Delivered Meals $7,000
3. Assist homeless battered women and children
Homelessness may not be as visible in Newport Beach as in surrounding communities, but the City
still views homelessness as an important issue that is a high priority to be addressed. The City will
continue to work with its partner agencies within the Orange County Continuum of Care to best meet
the needs of homeless persons and those at risk of homelessness.
In the 2005 -2006 program year, the City has recommended funding for the following activities to help
address the public service needs of homeless persons in and around Newport Beach:
• Human Options Emergency Shelters for Battered Women $3,333
• WISEPIace Steps to Independence $4,500
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
PAGE 2 -4
2. STRATEGIC PLAN
Newport Beach Program Objectives: Community Development
1. Eliminate blight, blighting influences, and prevent the deterioration of property.
The City is nearing completion of the work detailed in the Balboa Village Pedestrian and Streetscape
Improvement Plan. CDBG funds were used to secure a Section 108 loan, which was used in
conjunction with City parking funds to fund the improvements. The City expects the project to
stimulate private economic investment in the area- In other areas, the City will rely on code
enforcement activities to identify signs of deterioration in its early stages.
• City of Newport Beach
• City of Newport Beach
Code Enforcement
108 Loan Repayment
1 2. Improve health and safety through rehabilitation of community facilities.
$25,000
$186,301
The City will continue to provide funding for ADA Improvements to public facilities throughout the City
to ensure accessibility to residents with disabilities.
• City of Newport Beach ADA Sidewalk Improvements $50,000
3. Preserve community infrastructure to provide economic empowerment in targeted
neighborhoods
In FY 2005 -2006, the City will use CDBG to repay the loan used for the Balboa improvements, fund
code enforcement officers to identify deterioration in its early stages, and fund programs that help
persons gain a higher degree of self - sufficiency.
• City of Newport Beach
• City of Newport Beach
• Fish Harbor Area, Inc.
• Serving People In Need (SPIN)
• South County Senior Services
• WISEPlace
Code Enforcement
$25,000
108 Loan Repayment
$215,000
Homeless & Hunger Prevention
$11,500
Substance Abuse Rehabilitation
$8,000
Home Delivered Meals
$7,000
Steps to Independence
$4,500
4. Eliminate blight, blighting influences, and prevent the deterioration of property.
The City will fund code enforcement officers and repay a Section 108 loan that helped arrest the
deterioration of the Balboa Village area.
• City of Newport Beach Code Enforcement $25,000
• City of Newport Beach 108 Loan Repayment $186,301
CITY Of NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
PAGE 2 -5
�'o
2. STRATEGIC PLAN
HUD - Specified Objectives
1. Address Obstacles to Meeting Needs
The development process in housing and community development is lengthy and complex. It is often
hampered by a wide range of obstacles. HUD asks local governments to strategize a plan to mitigate
these obstacles. The City has identified the lack of developable sites, high land costs and limited
funding as obstacles to affordable housing. Other obstacles in non - housing community development
include NIMBY -ism (Not in My Backyard), lack of organizational capacity, and lack of available
funding.
In response, the City has adopted policies to overcome some of these obstacles. In regard to
affordable housing, the City encourages affordable housing production by providing density bonuses
to interested developers and through the inclusionary zoning requirements. The City will work closely
with affordable housing developers to expedite the permitting process in order to cut costs.
In regard to non - housing obstacles, the City will facilitate community involvement to increase
understanding of community needs and the possible solutions to meet those needs. The City will
maintain close partnerships with service providers and other community development professionals to
identify and correct issues such as lack of capacity and resources.
2. Foster and Maintain Affordable Housing
As stated above, the City has identified the lack of developable sites, high land costs and limited
funding as obstacles to producing affordable housing. However, within the Newport Beach Sphere of
Influence, there may be additional options for future residential development. Bay Knolls and Santa
Ana Heights are scheduled for annexation within the next four years. Once, annexed, the City will
explore opportunities for increasing the City's affordable housing supply in these areas.
The City continues to monitor and enforce affordability covenants on affordable housing projects
throughout the City. This includes not only housing units developed with federal funds, but all units
with an affordability covenant in place.
3. Remove Barriers to Affordable Housing
The City will continue to.implement the following procedures and programs:
• Monitor all regulations, ordinances, departmental processing procedures, and residential
development fees to ensure these requirements do not excessively constrain affordable
residential development.
• Continue to offer density bonus incentives for the development of affordable housing pursuant to
state density bonus requirements and the City's General Plan Housing Element.
• Partner with the Fair Housing Council of Orange County to provide tenant and landlord
counseling to provide fair housing opportunities for Newport Beach residents.
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 200$ PAGE 2 -6
OJ
2, STRATEGIC PLAN
4. Reduce Poverty
Almost all of the City's funded programs are aimed at helping a family or individual increase or
maintain their self - sufficiency. For example, the FISH Harbor Areas' Mobile Meals Project supports
self- sufficiency of seniors and persons with disabilities. The Steps to Independence Program
administered by WISEPIace provides a comprehensive program with the end goal of self - sufficiency,
including transitional shelter, food, clothing, counseling, and employment assistance to homeless
women without children. The program handles a variety of clientele, including victims of domestic
violence, emancipated youth, seniors, and women with developmental disabilities
In the 2005 -2006 program year, the City will fund the following activities that will directly contribute to
reduction of poverty levels in Newport Beach:
• FISH Harbor
• South County Senior Services
• Human Options
• Orange Coast Interfaith Shelter
• SPIN
• WISEPIace
5. Develop Institutional Structure
Homeless Prevention
$11,500
Home Delivered Meals
$7,000
Emergency Shelter for Battered Women
$3,334
Temporary Shelter
$8,000
Substance Abuse Rehabilitation
$8,000
Steps to Independence
$4,500
The City relies heavily on its community partners in order to provide needed services to area
residents. Unfortunately, the City receives a relatively small allocation of federal funds, of which only
15 percent can be provided to social service organizations for the provision of services. City staff will
work with organizations that do not receive federal funds and provide a Certification of Consistency if
the proposed project reflects the goals and objectives of the City's adopted Consolidated Plan.
6. Enhance Service Delivery (including Monitoring)
The City continues to refine its internal procedures and build its relationships with partner agencies in
order to provide the highest level of service to the targeted populations.
The City will also make efforts to ensure a high level of service from its subrecipients. These efforts
start at the beginning of the program year with a technical assistance meeting that covers program
requirements, such as record - keeping, invoicing, and procurement. Throughout the program year, the
City will review payment requests and progress reports to ensure program compliance and provide
technical assistance when needed. It is the City's goal to provide on -site monitoring to every
subrecipient at least once during the program year. The goal of the monitoring is to ensure program
compliance and improve the level of service.
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
PAGE 2.7
U'
2. STRATEGIC PLAN
In regard to capital expenditures, the City will ensure that procurements and project administration
comply with all federal, state, and local regulations, including environmental review, prevailing wage
requirements, and Section 3 requirements.
7. Address Threat of Lead Based Paint
The City will pursue other actions as well, such as monitoring lead- poisoning data maintained by
Orange County Department of Health Services, educating residents on the health hazards of lead
based paint through the use of brochures and encouraging the screening of children for elevated
blood -lead levels, and disseminating brochures through the rehabilitation program and the City's
partners in affordable and fair housing.
8. Improve Public Housing
As stated in the fourth local housing goal in the above section, the City will assist Orange County
Housing Authority (OCHA) to maximize the use of Section 8 funds and other resources within
Newport Beach.
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 2 -8
a3
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
Chapter 3. AVAILABLE RESOURCES
014
3. AVAILABLE RESOURCES
Federal Resources
The City received a total of $412,233 CDBG for the 2005 -2006 program year. In addition, $80,254 of
CDBG funds from previous year allocations are available for reallocation to capital expenditure
projects. In total, the City has $492,487 for the 2005 -06 program year.
• 2005 CDBG Entitlement $412,233
• Reprogrammed CDBG $80,254
• CDBG Program Income $0
• All other forms of CDBG $0
In addition, Section 8 Housing Vouchers and certificates will be available to Newport Beach residents
through the Orange County Housing Authority.
State and Local Resources
The City will continue to provide support, such as subsidies, general funds and fee waivers, to
activities that help meet the objectives specified in the Strategic Plan.
Other Resources
It is difficult to estimate the amount of other resources that are available for affordable housing and
community development projects in Newport Beach. Over the next program year, the City may
pursue the following available funding sources:
• Workforce Housing Grant
• BEGIN Funds
• California Housing Finance Agency (CHFA) Multi - Family Rental Housing Program
• CHFA Home Mortgage Purchase Program
• California Housing Rehabilitation Program -Owner Component
• Low Income Housing Tax Credits
• Local Housing Trust Fund Program
• Tax Exempt Housing Revenue Bond
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 3-1
;�5
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
Chapter 4. DISTRIBUTION OF RESOURCES
4. DISTRIBUTION OF RESOURCES
Distribution among Priority Needs
The funding available under the Consolidated Plan may be used to meet a wide variety of needs. The
City established local priority needs based on the housing market analysis and other research conducted
as part of the 2005 -2009 Consolidated Plan. The goals listed in the Strategic Plan section of this
document are the result of that research. The City gives priority to projects and programs that will pursue
the goals listed in the strategic plan.
Geographic Distribution
All CDBG- funded public service activities will be available to Newport Beach residents citywide based on
income and other eligibility criteria. These activities cater specifically to low and moderate income
residents or to groups presumed to be of low and moderate income instead of residents in a specific area.
Public Facility improvements and Code Enforcement activities will be targeted to the Balboa Peninsula
area. Projects that serve an identified geographic area, such as parks, facilities, community centers and
street improvements, are eligible for CDBG funding based on the percentage of low and moderate -
income residents living in the service area. In most communities, the threshold is 51 percent. However,
some communities, such as Newport Beach, have no or very few areas that meet this threshold. For
these grantees, the CDBG law authorizes an alternate method to determine a lower threshold. The
Balboa Peninsula is one of the few areas in Newport Beach that is eligible for CDBG assistance under
this alternate calculation of eligibility.
Please refer to the map on the following page for more details on the areas that will benefit from Code
Enforcement and the Public Facilities Improvements.
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 4 -1
�1
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
Chapter 5. PROGRAM YEAR ACTIVITIES
0
5. PROGRAM YEAR ACTIVITIES
2005 -2006 Program Year Sources of Funds
ID Fund Source Amount
1- 2005 CDBG Entitlement U.S. Dept of H.U.D. $412,233.00
2. Reprogrammed Funds U.S. Dept of H.U.D. $80,254.00
TOTAL SOURCES $492,487.00
2005 -2006 Program Year Uses of Funds
ID
Organization
Program /Project
Funded Amount
1.
FISH Harbor
Homeless and Hunger Prevention
$11,500.00
2.
FISH Harbor
Meals on Wheels
$15,000.00
3.
Human Options
Emergency Shelter for Battered Women
$3,333.00
4.
Mercy House
Emmanuel House
$4,500.00
5.
Orange Coast Interfaith Shelter
Emergency/Transitional Shelters
$8,000.00
6.
Serving People In Need (SPIN)
Substance Abuse Rehabilitation
$8,000.00
7.
WISEPlace
Steps to. Independence
$4,500.00
8.
South County Senior Serv.
Home Delivered Meals
$7,000.00
9.
Fair Housing Council
Fair Housing Services
$13,086.00
10.
City of Newport Beach
Code Enforcement
$25,000.00
11.
City of Newport Beach
ADA Sidewalk Improvements
$50,000.00
12.
City of Newport Beach
108 Loan Repayment
$186,301.00
13.
City of Newport Beach
CDBG Administration
$69,378.00
14.
Unprogrammed Contingency
$80,254.00
TOTAL USES
$485,852.00
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 5 -1
5. PROGRAM YEAR ACTIVITIES
Fish Harbor: Mobile Meals
Description: Mobile Meals delivers nutritional meals to
individuals who are homebound due to age, illness, or
disability. This program allows clients to live independently
who would may otherwise be institutionalized. It is
estimated the program will serve 80 unduplicated Newport Beach residents 10 meals per week for the duration of the
program year.
.
Eliglbrllty
Requested Funding
Sf:rvN.es (Or DlSabled
HUD Matrix Code: Persons (0513)
CDBG $1 1,500
Eligibility Citation:
570.201(e)
HOME
$0
National Objective:
Low Mod Clientele
ESG
$0
570.201(e)
570.208(a)(2)
$0
Accomplishment Goal:
80 Persons
HOPWA
$0
Start Date:
07/0112004
Other:
$0
End Date, 06/30/2005
Total: i $11.500
Lo6aUon / Service Area / Beneficiaries:
—
Administered By:
111
_
Available to clientele throughout City
Fish Harbor
Help the homeless? No
PO Box 15464
Help persons with HIV / AIDS? No
Newport Beach, CA 92659
Help persons with Special Needs? Yes
Dana Timmermans, Executive Director
07/01/2004
Phone: 949 -515 -3815
Fish Harbor: Homeless Prevention
Description: This prograrn offers rental / utility assistance, supplemental groceries and case management
to low
j income families. It is estimated that 78 of the 5,200 annual
client contacts will be Newport Beach residents.
lity
Requested Funding
Ys
_ i
Public Services General
HUD Matrix Code: (05)
! CDBG
$15,000
Eligibility Citation:
570.201(e)
HOME
$0
National Objective:
Low Mod Clientele
ESG
$0
570.208(a)(2)
Accomplishment Goal:
78 Households
HOPWA
$0
Start Date:
07/01/2004
Other:
$0
End Date: 06/3012005
! Total:
$15,000
Qca�n/ Service Area/ Beneficiaries:
..a
Administered By
Available to Income eligible clientele throughout City
Fish Harbor
,
Help the homeless? No
PO Box 15464
Help persons with HIV / AIDS? No
Newport Beach, CA 92659
Help persons with Special Needs? No
Dana Timmermans, Executive Director
Phone: 949 -515 -3815
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 5 -2
l y
5. PROGRAM YEAR ACTIVITIES
3 Human Options: Emergency Shelter for Battered Women I
Description: Human Options provides emergency shelter, food. clothing. counseling, and legal advocacy to battered
women and their children. Funds will be used to pay for staff salaries of those who provide counseling and case
management
anticipated that 100 Newport residents will be served throughout the year.
Eligibility
Requested Funding
Operation of Shelter
Eligibility Citation:
HUD Matrix Code: Costs (03T)
CDBG $3,333
Eligibility Citation:
570.201(e)
Low Mod Clientele
HOME
$0
National Objective:
Low Mod Clientele
ESG
$0
100 Persons
570.208(a)(2)
$0
Start Date:
07/01/2004
Accomplishment Goal:
100 Persons
End Date: 06/30/2005
HOPWA
$0
Start Date:
07/01/2005
..
. r
Orange Coast Interfaith Shelter
Other:
$0
Fnd Date: 06/30/2006
Total $3.333
i Location 1 Service Area 1 Beneficiaries:
' Adhistered By:.
Available to clien- te. le th—roug hou- t City
Human Options
Help the homeless? Yes
P.O. Box 53745
Help persons with HIV / AIDS? No
Irvine, CA 92619
Help persons with Special Needs? No
Vivian Clecak
Phone: 949-737-5242
i ..
4- Coast Interfaith Shelter:. Temporary Shelter; ....
Description. OCIS Is one of only two emergency shelters in Orange County. The program offers both emergency
shelter and transitional housing. The program goal is to provide services to up to 100 persons on any given day. It is
anticipated that 100 Newport residents will be served throughout the year.
Eligibility - Requested Funding.',,
Operation of Shelter
HUD Matrix Code: Costs (03T) CDBG $8,000
Eligibility Citation:
570.201(e)
HOME
$0
National Objective:
Low Mod Clientele
ESG
$0
570.208(a)(2)
Accomplishment Goal:
100 Persons
HOPWA
$0
Start Date:
07/01/2004
Other:
$0
End Date: 06/30/2005
Total $8,000
Location /Service Area! Beneficiaries:.
I. i S
Adi�lht4iered Bjtv5i , -rti t i
T:o. ..... n:<
Available to clientele throughout City
..
. r
Orange Coast Interfaith Shelter
Help the homeless? Yes
1963 Wallace Ave
!, Help persons with HIV / AIDS? No
Costa Mesa, CA 92627
Help persons with Special Needs? No
Diane Ashe, Fund Developer
Phone: 949-631-7213
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 5 -3
31
5. PROGRAM YEAR ACTIVITIES
r a ,
5 Serving Pedp1e In Need (SPIN): Substang$�4664plreatment
Description. SARP provides access to recovery programs to homeleaa and low incunie narvuwualb who cannot
afford it otherwise. The program includes one month's room and board, counseling, and supplemental services
focused on employment, medical assistance, and legal assistance. Funds will be used for case management, shelter
costs, and operational rosts. Program estimates Sawing 6 Newport residents and 450 Orange County residents
overall.
r
Eligibility °'' ..
Requested Funding
the cost of
_
Substance Abuse
HUD Matrix Code: Recovery Services (05F)
CDBG
$8,000
Eligibility Citation:
570.201(e)
HOME
HUD Matrix Code: Persons (0513)
$0
National Objective:
Low Mod Clientele
ESG
$0
570.208(a)(2)
National Objective:
Low Mod Clientele
570.208(a)(2)
Accomplishment Goal:
6 Persons
HOPWA
Accomplishment Goal:
$0
Start Date:
07/01/2004
Other:
$0
$0
End Date: 06/30/2005
Total
$8,000
Location / Service /1% F g9deff0ir(es:
Administered By:
End Date: 1 06/30/2006
Available to eligible clientele throughout City
Serving People in Need (SPIN)
$7,000
Help the homeless? Yes
2900 Bristol, H106
Vk - • c, -y s' —
South County Senior Services, Inc (SCSS)
Help persons with HIV / AIDS? No
Costa Mesa, CA 92626
24300 El Toro Road, Suite 2000
Help persons with Special Needs? Yes
Jean Wegener, Executive Director
Laguna Woods, CA 92637
Phone: 714-751 -1101
Help persons with Special Needs? Yes
r 5eI 4v 1 s; Inc :A e06;b IV6edd Meal Program;
i
Description: South County Senior Services, Inc. (SCSS) will provide home - delivered meals to homebound senior
citizens (ages 60 years or older) who are unable to prepare meals for themselves due to age, illness, or disability.
Participants will receive three (3) daily meals Monday through Friday. Funds will be used to subsidize
the cost of
these meals.
Eligibilr{�}[�; yti '�'
}��yv�ya'eftedf6riding
Services for Disabled
HUD Matrix Code: Persons (0513)
CDBG
$1,000
Eligibility Citation:
570.201(e)
HOME
$0
National Objective:
Low Mod Clientele
570.208(a)(2)
ESG
$0
Accomplishment Goal:
# Persons
HOPWA
$0
Start Date:
07/01/2005
Other:
$0
End Date: 1 06/30/2006
Total
$7,000
1
Available to clientele throughout City
-
Vk - • c, -y s' —
South County Senior Services, Inc (SCSS)
Help the homeless? No
24300 El Toro Road, Suite 2000
Help persons with HIV / AIDS? No
Laguna Woods, CA 92637
Help persons with Special Needs? Yes
Dr. Marilyn Ditty, Executive Director
Phone: 949-855-8025
CITY OF NEWPORT BEACH ANNUAL ACTION PL4N FOR PROGRAM YEAR 2005 PAGE 5.4
1,
5. PROGRAM YEAR ACTIVITIES
% Mercy House: Emmanuel House Food Pantry-.
Description: I his program will provde proyidm supplies at Emmanuel House, a transitional housing program for
adults living with HIV or AIDS, the only project of its kind in Orange County. Funds will be used to provide a food
pantry that contains nutritional supplements in addition to food a-d household supplies The program expects to
assist 40 clients in Orange County
Eligibility
Requested Funding
l
Operation of Shelter
(Eligibility — — Reque§ted,Ounding
Fair Housing Activities
HUD Matrix Code: Costs (03T)
CDBG
$4,500
Eligibility Citation:
570.201(e)
National Objective:
HOME
ESG
$0
National Objective:
Low Mod Clientele
570.208(a)(2)
HOPWA
ESG
Start Date:
$0
Accomplishment Goal:
40 Persons
End Date. I06/30/2005
HOPWA
LotaU�jf Service Area t Beneficiaries:
Available to ALL Newport residents
$0
Start Date:
07/01/2004
Help persons with HIV / AIDS? No
Other:
Help persons with Special Needs? No
$0
End Date: 06/30/2005
Phone: 714-569 -0825
Total:
$4.500
Location / Service Area I Beneficiaries:
Administered By:
Available to eligible clientele throughout City
Mercy House
Help the homeless? Yes
PO Box 1905
Help persons with HIV / AIDS? Yes
Santa Ana, CA 92701
Help persons with Special Needs? No
Heather Fitzgerald, Administrative Director
Phone: 714-836-7188
Fair Housing Council: Fair Housing _ h
r
cription: The program will further fair Housing in Newport Beach through education, landlord /tenant counseling,
and legal action when necessary. It is anticipated the program will assist 355 Newport Beach residents with
landlord /tenant related problems and 5 households with allegations of discrimination.
(Eligibility — — Reque§ted,Ounding
Fair Housing Activities
HUD Matrix Code: (21 D) CDBG $13,086
Eligibility Citation:
570.206
HOME
$0
National Objective:
N/A
ESG
$0
Accomplishment Goal:
5 Households
HOPWA
$0
Start Date:
07/01/2004
Other:
$0
End Date. I06/30/2005
Total $13,086
LotaU�jf Service Area t Beneficiaries:
Available to ALL Newport residents
Admlr� e
Fair Housing Council
Help the homeless? No
201 S. Broadway
Help persons with HIV / AIDS? No
Santa Ana, CA 92701
Help persons with Special Needs? No
Dave Levy, Housing Rights Advocate
Phone: 714-569 -0825
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR YOG$ PAGE $ -$
�3
5. PROGRAM YEAR ACTIVITIES
,.:,.
9 use Place:. Steps to Indepenitenco
—
Description: Steps to Independence provides transitional shelter, food, clothing, counseling, and employment
assistance to homeless women without children. The program handles a variety of clientele, including victims of
domestic violence, emancipated youth, seniors, and women with developmental disabilities. The end goal is self -
sufficiency. Residency ranges from 6 to 12 months, during which supportive services such as case management,
employment counseling, psychological counseling, and life - skills classes are offered. The shelter is located at 1411
N. Broadway in Santa Ana. The program anticipates assisting between 75 and 90 formerly homeless women.
Eligibility iFj• . Requested Fdndtng64'
570.202 ( c)
Operation of Sheiter
HUD Matrix Code CDBG $5,000
Costs (03T)
Eligibility Citation:
570.201(e)
HOME
$0
National Objective:
Low Mod Clientele
ESG
$0
Accomplishment Goal:
570.208(a)(2)
HOPWA
$0
Accomplishment Goal:
80 Persons
HOPWA
$0
Start Date:
07/01/2004
Other:
$0
End Date: 06130/2005
Total: $5.000_
�`GCatton! Senrice Area / Beneficia ies: ; :
_Adfnlnlstered.By .
Wise Place
• Available to eligible clientele throughout City
Help the homeless? Yes
1411 N Broadway
Help persons with HIV / AIDS? No
Santa Ana, CA 92706
Help persons with Special Needs? Yes
Kathy Bowman, Executive Director
3300 Newport Blvd
Phone: 714 -542 -3577
I
Q :. CI of Na1H art 6dacfk-". a:LiitG �ro iita' ... AVOW
—
Description: Funds for this activity wdl provide the salaries for Code Enforcement officers to conduct housing
inspections in designated low- and moderate areas of the City to insure health and safety codes
ltgibllite. q {.� r ,yce;:; �'.124t:_t{iitUii
:,.v;%
HUD Matnx Code: Code Enforcement (15) 1 CDBG I
$25,000
Eligibility Citation:
570.202 ( c)
HOME
$0
National Objective:
Low Mod Area
ESG
$0
570.208(a)(1)
Accomplishment Goal:
Residents on Balboa
HOPWA
$0
Peninsula Persons
Start Date:
07/01/2004
Other:
$0
End Dale:
i 06/30 12005
i
Total $25,000
9:.. Pn Sfl /@a.BAclarjaka:
• dcr
City of Newport Beach
Balboa Peninsula
Help the homeless? No
3300 Newport Blvd
Help persons with HIV / AIDS? No
Newport Beach, CA 92658
Help persons with Special Needs? No
Dan Trimble, Program Manager
Phone: 949-644-3230
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 5 -6
A
5. PROGRAM YEAR ACTIVITIES
City of N¢*JPort Beach: ADA Sidewalk Improvements
Description: Funds will be used to make improvements to public facilities to allow for greater accessibility to
Newport Beach residents with disabilities. Improvements will include curb cuts and installation of ramps throughout
the City.
Eligibility
Requested Funding
ESG
• HUD Matrix Code Sidewalks (03L)
CDBG
$50,000
Eligibility Citation:
570.201 ( c )
HOME
07/01/2004 Other:
06/30/2005 Total,
$0
National Objective:
Low Mod Clientele
ESG
$0
570.208(a)(2)
Accomplishment Goal:
Disabled Persons
HOPWA
$0
throughout City
Start Date: 07/01/2004
Other:
$0
End Date 06130x2005
Total,
$50,000
�ocattott /SA:fvtei "Arita 1 BN.neBclaries: :,
°Administered By.
I Citywide
-
City of Newport Beach
• Help the homeless? No
3300 Newport Blvd
Help persons with HIV / AIDS? No
Newport Beach, CA 92658
Help persons with Special Needs? No
Dan Trimble, Program Manager
Phone: 949- 644 -3230
.each: 1 D8 Loan Repf y 'ent. -
'." .:.. .
Description: Funds will be used to repay the City's Section 108 Loan. The loan was used to partially fund public
improvements to the Balboa Target Area totaling $8 million. The scope of work includes the Balboa Village
Pedestrian and Streetscape Plan, Street Improvements to Balboa Blvd., Pier Parking Lot, Pier Plaza and Lot A
connecting access to Main Street.
I bil - s ,.' ' '. equested Fundln%. -
___.__x�.. _
HUD Matnx Code. 108 Loan Payment (19F) CDBG $186,301
Eligibility Citation: 570.201 ( c) HOME $0
National Objective:
Low Mod Area
570.208(a)(1)
ESG
$0
Accomplishment Goal:
N/A
HOPWA
$0
Start Date:
07/01/2004 Other:
06/30/2005 Total,
$0
End Date:
$186301
Service Area Balboa Peninsula
Help the homeless? No
Help persons with HIV/AIDS?
Help persons with Special Needs?
!Ll
jL- IIL"J ,I . .
City of Newport Beach
3300 Newport Blvd
Newport Beach, CA 92658
Dan I nimble, Program Manager
Phone: 949 - 644 -3230
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
PAGE 5 -7
35
5. PROGRAM YEAR ACTIVITIES
3 City of Newport B"H QBG Agrnl i tratf
Description: Funds will be used to administer the other
CDBG - funded programs. prepare required reports, monitor
subrec p ents, and ensure overall program compliance with the relevant federal regulalione.
Eligibility �r
ti9'sted FOhding
,-
HUD Matrix Cod" C DBAG Administration
—
CDBG
$69.398
Eligibility Citation:
570.206
HOME
$0
National Objective:
NIA
ESG
$0
Accomplishment Goal:
N/A
HOPWA
$0
Start Date:
07/01/2004
Other:
$0
End Date: 06/30/2005
Total,
$69,398
Location I Service Area I Beneflclarler,.
Adm_ i 6t ed By= ,,,
_• ::'..r'.^
N/A
City of Newport Beach
Help the homeless? No
3300 Newport Blvd
Help persons with HIV / AIDS? No
Newport Beach, CA 92658
Help persons with Special Needs? No
Dan Trimble, Program Manager
Phone: 949 -644 -3230
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005 PAGE 5 -8
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
APPENDIX A: SF -424 & CERTIFICATIONS
31
CITY OF NEWPORT BEACH ANNUAL ACTION PLAN FOR PROGRAM YEAR 2005
APPENDIX B: PUBLIC PARTICIPATION &
PUBLIC NOTICES
3l
Development of 2005 Plan
The City's Economic Development Division is responsible for developing the annual action plan and
administering the programs included in the plan. This department made the following efforts to include all
community stakeholders in the development of the action plan. This appendix has copies of the public
notices and a summary of public comments received.
Request for Proposals
The City published a Notice of Funding Availability (NOFA) in December 19, 2004 in the Daily Pilot
newspaper. The City also made the application available on the City's website and mailed applications to
agencies receiving funds in the current year as well as those that had expressed interest. Agencies were
given until January 27, 2005 to submit proposals. In response, 12 public service providers and 3 City
Departments/Sections submitted applications for CDBG grants for Fiscal Year 2005 -2006. The following
organizations were involved in this process:
• Assessment and Treatment Services Center
• Council on Aging Orange County
• Fair Housing Council of Orange County
• Fish Harbor Area, Inc.
• Friendship Shelter
• Human Options
• Mercy House
• Orange Coast Interfaith Shelter
• Serving People In Need
• South County Senior Services, Inc.
• Youth Employment Services of the Harbor Area, Inc.
• WISEPlace
• City of Newport Beach — Code Enforcement Section
• City of Newport Beach — Public Works Department
• City of Newport Beach — Planning Department
Consultation
In addition to the NOFA and the mailed applications, the City met with the Department of Public Works to
determine needs and strategies within the City's organization.
Public Review and Public Hearing
The City published a notice in the Daily Pilot on March 14, 2005 indicating that (1) the draft action plan
would be available to the public for review from April 1 to May 5, 2005, and (2) the City Council would
review public service funding recommendations on May 10, 2005 and accept comments from interested
citizens in a public hearing. The announcement encouraged comments and participation from the public
and provided instructions on how to submit written comments in the event a person could not attend.
On May 10th, the City Council reviewed the draft Action Plan and approved the budget. No public
comments were received during the hearing or in writing. The City will amend the Action Plan to include
any comments and responses to the comments that are accepted at that hearing.
J
Executive Summary
I. EXECUTIVE SUMMARY
A. What is the Consolidated Plan?
The Consolidated Plan identifies each community's priority needs, short- and long-
term goals and objectives, and strategies and timetables for achieving its goals. It
asks each community to state how it plans to achieve local objectives in accordance
with the statutory goals of all community development programs; to provide decent
housing in a suitable living environment and to expand economic opportunity for
low- and moderate- income families.
The Consolidated Plan seeks to alter the relationship between HUD, State and local
governments, and citizens. Developed with the input of citizens and community
groups, the Consolidated Plan serves four functions. One, it is a planning document
for each community, built upon public participation and input. Two, it is the
application for funds under HUD's formula grant programs. the Community
Development Block Grant (CDBG) Program. Three, it articulates local priorities.
And four, it is a five -year strategy the jurisdiction will follow in implementing HUD
programs.
A completed Consolidated Plan describes the lead agency responsible for overseeing
the development and implementation of the plan and the agencies, groups, and
organizations that participate in the process. It also includes a summary of the citizen
participation process, public comments, and efforts made to broaden public
participation in preparing the plan. In addition, all Consolidated Plans include seven
major components.
1. The Purpose of the Consolidated Plan
The City of Newport Beach 2005 -2009 Consolidated Plan is the primary method
the Planning Department, as advised by the CDBG Advisory Committee, uses to
carry out this mission. The Consolidated Plan identifies the City's needs in
housing, homelessness, community development, and economic development. It
also presents the City's strategies to address those needs. The Planning
Department develops and carries out the Consolidated Plan.
The U.S. Department of Housing and Urban Development requires Newport
Beach to complete a Consolidated Plan to receive funds under the Community
Development Block Grant (CDBG) program. Consolidated Plans are required to
be prepared every 5 years and include five Annual Action Plans (described
below) to be produced for each year.
CDBG can fund a variety of activities to help low- income people and
neighborhoods, such as planning activities, housing assistance, public services,
infrastructure, economic development, and other community development
projects.
The Consolidated Plan builds on a comprehensive consultation and citizen
participation process. The City of Newport Beach's Planning Department is the
City of Newport Beach 1 -1 2005 -2009 Consolidated Plan
Rev. 4111105
Al
lead agency for the Consolidated Plan. The Planning Department is tasked with
developing and carrying out the plan.
B. Major Components of the Consolidated Plan
The Consolidated Plan contains several major components:
• An analysis of housing, homelessness, public housing, community development,
economic development, and other related needs.
• A housing market analysis.
• A description of the priority needs selected by the City.
• Long -term strategies to address those priority needs.
• An explanation of how the City will work with organizations in the public,
private, and nonprofit sectors to help carry out those strategies.
• A description of annual projects and activities the Planning Department will
undertake to carry out those strategies.
• Certification to Affirmatively Further Fair Housing and other certifications
The City must produce five Annual Action Plans under the Newport Beach
Consolidated Plan for 2005 -2009. The 2005 Annual Action Plan is the first one.
Each Annual Action Plan must describe how the City intends to invest its CDBG
funds for the upcoming program year. Each year's Annual Action Plan contains its
own Executive Summary.
C. What's New in the Consolidated Plan
The City of Newport Beach 2005 -2009 Consolidated Plan contains several new
items and methodologies compared to the previous Consolidated Plan:
• New research using the latest data from the U.S. Census Bureau, the Bureau of
Labor Statistics, Housing Agencies, and the results of the Planning Department's
Community Needs Assessment survey.
• An improved citizen participation and consultation process to advise the City on
needs and strategies.
• A Community Profile that describes some of the characteristics of the City,
including its residents and economy.
• A performance matrix in the Strategic Plan than lays the groundwork for
measurable accomplishments in each year's Action Plan.
• A resources section that can help other organizations apply for funding to help
carry out the Consolidated Plan's goals and strategies.
City of Newport Beach 1 -2 2005 — 2009 Consolidated Plan
Rev. 4111105
D. How the Executive Summary is Organized
This Executive Summary contains 14 subsections that mirror the 14 sections of the
City of Newport Beach 2005 -2009 Consolidated Plan:
• Executive Summary— describes how Newport Beach's General Plan sets the
vision for growth and how the Planning Department, its advisory committee, and
the Consolidated Plan help carry out that vision.
• Community Profile — describes some of Newport Beach's characteristics,
including its residents and economy.
• Consolidated Plan Development— contains three items: (1) Newport Beach's
Citizen Participation Plan for 2005 -2009; (2) the Department's outreach to allow
citizens and community partners to comment on needs, proposed strategies, and
projects; and (3) Newport Beach's Anti - displacement and Relocation Plan for
2004 -2009 (which describes the City's plans to minimize the displacement of
anyone due to the use of CDBG funds).
• Housing Market Analysis and Housing Needs — presents an overview of Newport
Beach's projected housing supply and demand, and assesses housing needs.
• Public Housing Needs — describes the agencies that provide public and assisted
housing needs in Newport Beach.
• Homeless and Special Needs Populations— examines the needs of Newport
Beach's homeless and persons with special needs.
• Non - housing Community Development Needs Assessment — examines "non-
housing" community development needs in Newport Beach such as planning,
economic development, public services, and public facilities.
• Barriers to Affordable Housing - examines barriers to affordable housing and the
City's strategy for addressing those barriers.
• Fair Housing -- describes the impediments to fair housing choices in Newport
Beach.
• Lead -based Paint Needs — summarizes the lead -based paint hazards in housing.
• Housing and Community Development Institutional Structure — summarizes the
gaps in the City's housing and community development delivery system.
• Anti- poverty Strategy — describes how CDBG projects are part of the City's
efforts to move low- income families to self - sufficiency.
• Strategic Plan— presents the City's strategies to meet the housing and community
development needs found in the previous sections.
• Monitoring -- describes how the Planning Department monitors CDBG projects
as well as its progress in carrying out Consolidated Plan strategies and objectives.
City ofNe-Kport Beach 1 -3 2005 – 2009 Consolidated Plan
Rev. 4111105
q
E. Executive Summary
Newport Beach has changed profoundly in the last 20 years. Its economy has
continued to blossom as job and population growth has continued to grow. Its
population is deep rooted in the community. The quality of life issues continue to be
at the forefront.
The challenge now facing the community is meeting future demands for housing,
commercial development, public open space, and public facilities. With state and
federal governments constantly threatening Cities with a reduction of funds, the
future development of Newport Beach will increasingly depend on the efficient
development of infrastructure, remaining vacant land, and underdeveloped land.
The City's General Plan is a blueprint to guide development in the City of Newport
Beach in future years. It provides a framework for decisions regarding land use and
transportation, as well as public facilities, economic development, housing, and other
public issues that are vital to a healthy and livable community. The Planning
Department is the primary entity that carries out the vision of the General Plan.
As advised by the CDBG Advisory Committee, the Planning Department provides
funding for community -based organizations to carry out public service programs
designed to help neighborhoods achieve a high quality of life for all of the city's
residents.
F. Community Profile
The City's first inhabitants thousands of years ago were the Shoshone Indians who
lived along the Pacific coast, supported by the abundance of the seas and fertile land.
The dramatic coastline of Newport Beach and its proximity to the water have always
played a great part in the development of the City.
Newport Beach is known for its savvy corporate offices, mild Pacific coastal climate,
and the nearby airport served by a dozen major air carriers and named after
legendary resident John Wayne. Getting around the Newport Beach area is
convenient, with commute times rarely more than 15 minutes. The nearby John
Wayne /Orange County airport to the north handles nearly 70 commercial flights
daily, serving approximately 4.5 million passengers annually. Other nearby airports
include Long Beach Municipal Airport (25 miles north), Los Angeles International
Airport (40 miles north), and San Diego International Airport/Lindbergh Field (80
miles south). As in most major cities, you'll find car and limousine rentals, as well as
commuter airline, bus, and train service.
At the time of the 2000 Census, about 50.8 percent of Newport Beach's residents
were born in California-and about 49.2 percent were born elsewhere. During the
2000 Census the City of Newport Beach had a population of 70,032.
The population of Newport Beach principally is not a multi - culturally diverse
community. Racial and ethnic minorities remain a stable contributor to the growing
population. About 8 percent of the population is non - white, a lesser proportion than
the national average for metropolitan areas. Asians are the largest non -white ethnic
Ch), ojNeHpor! Beach I -4 200-5 — 2009 Consolidated Plan
Rev. 4177105
Lt
group, comprising 4.0 percent of the population. All other racial and ethnic groups
account for less than 1 percent each. Today's population is a relatively even mix of
males (50.5 percent) and females (49.5 percent).
Newport Beach has grown to over 33,071 households. Although 51.3 percent of
these households are families, non - family households have increased to 48.7 percent.
The average household size is 2.09 persons per household, whose median income is
approximately $83,455 (in 1999). The average family size is 2.71 persons per family,
whose median income is approximately $111,166 in 1999.
The 2000 U.S. Census counted 37,288 total housing units. Of these, 4,217 were
vacant. 38,316 residents were employed. The unemployment rate at that time was 2
percent, although 34.2 percent of all adults were not in the work force. The per capita
income was $63,015, and 2 percent of residents were living below the poverty level.
G. Consolidated Plan Development
The Planning Department is the lead agency for the City of Newport Beach 2005-
2009 Consolidated Plan. The Planning Department, which develops and implements
the plan, urges citizens to voice their concerns and share their ideas concerning
Federal programming. The Planning Department welcomes comments and
suggestions.
Part One of the Consolidated Plan Development section presents the City's Citizen
Participation Plan. It summarizes the citizen participation opportunities that the City
must follow whenever it makes certain changes to the Consolidated Plan. It also
summarizes how citizens can access records and make complaints.
Part Two explains how residents and local organizations could comment on needs
and strategies in the five -year plan. The Department offered numerous opportunities
for public input, comment, and review through:
• A needs survey that was distributed at all of the City facilities and posted on the
City's website for residents to communicate their comments on housing,
homelessness, community development, and economic development needs.
• A Community Meeting that examined issues related to affordable housing, public
housing, homelessness, and non - housing community development.
• A review of the needs, strategies, actions, and projects in the draft Consolidated
Plan by the CDBG Advisory Committee and other groups.
• A Public hearing to garner citizen comments on the needs, strategies, actions, and
projects in the Consolidated Plan.
• Distribution of the draft Consolidated Plan combined with a minimum 30 -day
public comment period.
Part Three describes how the City will help persons who must be temporarily
relocated or permanently displaced due to CDBG activities.
City of Newport Beach 1 -5 2005 — 2009 Consolidated Plan
Rev. 4111105
q5
Execiaive Summary
H. Housing Market Analysis and Needs Assessment
Consolidated Plan regulations require the Planning Department to conduct a housing
market analysis to serve as one of the foundations for setting priority housing needs
and strategies. The Department conducted an extensive market analysis that focused
on the following five topics:
• Existing housing supply and demand.
• Economic and development trends that will determine future supply and demand.
• Niche markets such as public housing, homeless facilities, and housing for
persons with special needs.
• HUD - specific market characteristics such as low- and moderate - income
concentrations, as well as ethnic and minority concentrations.
• Priority housing needs and strategies set by the Planning Department through the
Consolidated Plan development process.
The housing market analysis reveals a number of important findings:
• As the cost of housing in Newport Beach continues to increase at a faster rate
than the median income, the demand for more low -cost rental housing will
increase dramatically.
• The lowest income renters are in the most need of more affordable housing. A
growing demand for one and two bedroom units is driving up rents while many
of these renters are already paying more than half their wages for housing.
• Homeownership may no longer be within reach of some moderate - income
families. No longer can down payment assistance programs and housing
counseling help the dream of homeownership become a reality for these families.
• As the amount of developable land becomes smaller, the feasibility of
rehabilitation will increase.
• Newport Beach contains a small number of owner - occupied units that may need
some degree of rehabilitation based on the age of the housing stock.
I. Public and Assisted Housing
The Planning Department, as part of its mission of collaboration and leveraging, is
committed to working with public and assisted housing providers to address housing
needs. Several agencies provide public or assisted housing in the City of Newport
Beach city limits. There is one public housing agency that provides assisted housing
in the City. The Housing Authority of the County of Orange. The Housing
Authority offers one type of housing assistance programs, the Section 8 Assisted
Housing Program. This federally - funded program provides rental assistance in the
form of a voucher to very low- income families, senior citizens, disabled,
handicapped, and other individuals for the purpose of securing decent, affordable
City of Newport Beach 1 -6 2005 — 2009 Consolidated Plan
Rev. 4111105 L\
housing. The Housing Authority is currently managing 105 Section 8 vouchers units
that are located within Newport Beach.
Several additional agencies also develop affordable housing for low and moderate -
income individuals and persons with special needs. These agencies include the
Newport Beach Apartment Management Company (IAMC), a subsidiary of The
Newport Beach Company (TIC).
J. Homeless and Special Needs Assessment
Despite greater attention to the problem, there are 34,999 homeless living in the
Orange County region at any point in time. The diversity of the homeless population
continues to increase and the percentage of homeless persons suffering from mental
illness and substance abuse also continues to increase.
Many homeless have come from rural areas to the City to be near family or seek
employment. Many addicted persons have recycled in and out of homelessness with
many reporting prior episodes.
The causes of homelessness in the City include a variety of factors, including:
• Substance abuse.
• De- institutionalization of persons with mental illness.
• Lack of resources to address the needs of homeless or "near- homeless" persons
with substance abuse or mental illness, including persons with dual diagnoses.
• Unemployment/underemployment.
• Lack of job skills among persons at high risk for homelessness.
• Domestic violence.
• A large gap between the number of affordable housing units and the number of
households which need them.
Poverty and Lack of Personal Resources.
Although more people are homeless, the organizations and programs designed to
serve them are making some progress in addressing these often, multi - diagnosed
homeless needs. Studies indicate that more of the easier -to -reach "situational
homeless" in the City are being helped now compared to several years ago. Crises
such as domestic violence, unemployment, or death put these people at risk.
Helping the chronically homeless, who often have lived on the streets for years, is
harder. These people tend to be substance abusers, persons with mental illness, or
dually - diagnosed. The response by City agencies has moved toward a more effective
treatment and rehabilitation focus, instead of merely providing food and shelter.
According to the Continuum of Care (CoC) Community Forum Collaborative
survey, the number of potentially homeless and at -risk persons in transitional, group,
and nonpermanent living arrangements is increasing. Persons with special needs may
City of Newport Beach 1 -7 2005 — 2009 Consolidated Plan 'C
Rev. 4111105 `l
have a variety of mental and physical disabilities; therefore, need a variety of
housing options. Their housing needs vary depending on the type of disability and
may vary throughout an individual's life depending on the degree of disability and
individual circumstances.
Special Needs Populations
Several common subject matters and issues surfaced from the Consolidated Plan
process that provide a good starting point in understanding how to serve persons with
special needs in the City more effectively. These are as follows:
• Transportation
• Adaptable Housing
• Lack of Income
• Discrimination
• Lack of Funding
• Education
• Accessible Facilities
• Support for Organizations Serving Persons with Special Needs
K. Non - Housing Community Development Needs
The CDBG regulations categorize the types of programs and projects that are eligible
for the CDBG funds. This section provides an assessment that examines the
following need categories: Community Improvements; Community Facilities;
Community Services; Accessibility Needs; and Economic Development. Each need
category is defined below.
1. Economic Development
Activities or improvements designed to support, increase, or stabilize business
development, as well as to create or retain jobs, or expand the provision of
goods and services (e.g., small business incubators, commercial and industrial
development, loans to for -profit businesses, infrastructure improvements
specific to expanding or creating business development).
2. Community Improvements
Public improvements that support existing or future community development
that benefits an entire area or site (e.g., roads, curbs, gutters, sewer systems,
street lighting, bridges).
City of Nexport Beach 1 -8 2005 — 2009 Consolidated Plan
Rev. 4111105
3. Community Facilities
Construction or rehabilitation of structures or facilities that house a public use,
except for the general conduct of government.
4. Community Services
Activities that provide services to individuals and/or households (e.g., job
training, child care, graffiti removal).
5. Accessibility Needs
Non - housing activities or improvements that provide accessibility improvements
for persons who are physically disabled. All improvements completed must
meet the Americans with Disabilities Act (ADA) requirements.
L. Barriers to Affordable Housing
The Planning Department is committed to helping reduce barriers to affordable
housing. Despite Newport Beach's strong economy and growing housing demands,
the local market may not be responding to the needs of lower - income households to
the degree needed. The inventory of affordable housing continues to decline, while
the production rate of new affordable housing units cannot keep up with demand.
As the lead agency for housing and community development in Newport Beach, the
Planning Department is making a significant effort to identify housing problems and
reshape its policies and programs for the coming years. The Planning Department
sponsored a community meeting, distributed needs assessment surveys, and
conducted individual interviews of public service providers as part of Consolidated
Plan development (described in the Consolidated Plan Development section).
Participants in this process identified several issues that are barriers to affordable
housing.
Comments from these sources reveal a variety of barriers to affordable housing in
Newport Beach. The two primary barriers to accessing affordable housing are:
■ Lack of affordable housing.
• Lack of developable land.
Other barriers may include:
• Approval process and fees.
• Zoning.
• Land use controls.
• Citizen opposition (the "Not In My Back Yard," or NIMBY syndrome).
• Lack of political constituency.
City of Newport Reach 1 -9 2005 — 2009 Consolidated Plan '1 q
Rev. 4111105 `1 1
Executive Summary
• Lack of knowledge of available programs and resources.
• Resource fragmentation and scarcity.
• Housing acquisition finance requirements.
• Lack of financial resources by housing providers.
M. Impediments to Fair Housing
HUD requires each CDBG recipient to complete an Analysis of Impediments to Fair
Housing Choice, also known as an AT The analysis includes examining barriers to
fair housing choice. Many communities develop this analysis and planned actions as
part of a broader fair housing strategy or fair housing plan.
Housing choice is impeded when actions, omissions, or decisions are taken that
restrict a person's choice of housing because of his/her characteristics as listed
above. It is also impeded when certain residential dwellings are not made available
to a person because of his/her characteristics as listed above.
The Planning Department, as the lead agency for the Consolidated Plan, is
committed to working with its public, private, and nonprofit partners to ensure fair
housing choices for all residents. Newport Beach last conducted an Analysis of
Impediments (AI) to Fair Housing Choice in 2000. The City is currently in the
process of updating its Analysis of Impediments to Fair Housing Choice. The City,
along with a number of Cities in Orange County have created a consortia to develop
a Regional Fair Housing Analysis if Impediments that addresses county wide issues
as well as more localized issues for each participating City. The consortium has
contracted with the Fair Housing of Orange to complete the study. The study will
evaluate the nature and extent of housing segregation and discrimination in the
County as well as the City. It will serve as a framework for the City's fair housing
planning as part of its Consolidated Plan implementation.
N. Lead -based Paint Hazards
Lead poisoning is one of the most common and preventable health hazards to
American children. Research indicates that even a low -level of lead in a child's
bloodstream can have harmful affects on their physical and developmental health.
Any housing built before 1978 is at risk of containing some amount of lead -based
paint. Older housing is more likely to have lead -based paint and the amount of lead
pigment in the paint tends to increase with the age of the housing. Slightly over
28,000 housing units in Newport Beach were built before 1979. Since low- income
people often live in older housing throughout the city, they are at much higher risk.
Young children who could ingest lead -based paint are at even higher risk.
Consequently, children of very low- and low- income families are disproportionately
at risk for lead poisoning, as they tend to reside in older homes. In accordance with
the 2000 Census, the number of children in Newport Beach under the age of five
years of age is equivalent to 4.0 percent of the population of the City, or 2,832
children. This group could be at higher risk of lead -based paint poisoning.
City of Newport Beach 1 -10 2005 — 2009 Consolidated Plan
Rev. 4111105 4) Z)
O. Housing and Community Development Delivery System
As the recipients of funds from the CDBG programs, the Planning Department is
tasked with the responsibility for developing and carrying out the Consolidated Plan.
The Department uses these and other funds to provide decent housing, create a
suitable living environment, and expand economic opportunities throughout the city.
Effective program delivery would not be possible, however, without the efforts of
many other Federal, State and local partners. Leadership begins with the City's
elected officials. The Mayor and City Council members. These officials approve all
Consolidated Plan strategies, activities, substantial amendments, and contracts. Since
they represent the residents of the City, these officials also provide insight into the
needs of City residents.
The Planning Department is building strong working relationships with other
organizations and programs that support these goals. This working relationship and
its results are the City's housing and community development delivery system.
The Consolidated Plan requirements include examining how organizations in the city
"deliver" housing and community development (called the institutional structure).
This examination includes identifying the gaps in the institutional structure and
developing strategies to address the gaps. Newport Beach can only achieve its
Comprehensive Plan goals and Consolidated Plan strategies if its institutional
structure is complete.
The Consolidated Plan process also analyzed the current gaps in the local delivery
system for housing and community development. The process also looked at
preliminary components of strategies for filling the most troublesome gaps. Several
primary issues emerged that provide a foundation for developing workable,
collaborative strategies to fill the gaps:
Lack of knowledge among the public and lower income clients arose as a
common issue. The most common gap cited was limited knowledge of the
available resources, services, and programs by lower income people and persons
with special needs.
An urgent need for affordable housing, especially supportive housing for lower
income people and persons with special needs.
Need for more services for the homeless and persons with special needs.
Need for enhanced communication/coordination among private organizations
that are part of the housing and community development delivery system.
P. Analysis of Poverty
By undertaking activities funded by the CDBG programs, the Planning Department
supports the City's overall anti - poverty strategy of moving low- income people to
self - sufficiency. Census data from the year 2000 indicates that 3,075 Newport Beach
residents were living in poverty in 1999, which is 4.4 percent of the population. This
City ojNewport Beach 1 -11 2005 — 2009 Consolidated Plan
Rev. 4111105
51
number translates to 356 families, or 2.1 percent of the families in Newport Beach.
Just slightly over 19 percent of these families had a child under the age of 5 years old
The Planning Department's anti - poverty strategy and activities support the overall
effort in the State to move low- income families to economic self - sufficiency. The
City's goal is to help families that are self - sufficient yet still at -risk to increase their
financial stability. The focus of the anti - poverty strategy is three -fold: (1) to help
these families accumulate assets, (2) to help these families address issues, such as
substance abuse and domestic violence, that may threaten the family's stability, and
(3) to provide these families with employment- related supportive services such as
child -care. This focus will be incorporated into the programs and policies
undertaken by the City as part of this Consolidated Plan.
Q. Strategic Plan
Based on the community survey, the community meeting, consultation with other
organizations, individual interviews, housing market and needs study, and other
factors, the Planning Department has developed the following five -year strategies to
address the priority needs found in the Consolidated Plan:
1. Affordable Housing Funding Priorities and Strategies:
a. Increase supply of housing units affordable to moderate- income households
through new construction.
b. Maintain existing level of Section 8 housing vouchers and rent - restricted
units within the City.
c. Ensure universal access to fair housing choice within the City.
2. Special Needs Funding Priorities and Strategies:
a. Increase accessibility of persons with disabilities to public facilities.
b. Improve supportive services for elderly residents.
c. Increase supportive services for persons suffering from substance abuse.
d. Increase supportive services for persons living with HIV /AIDS.
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3. Homeless Funding Priorities and Strategies:
a. Preserve the supply of emergency and transitional housing.
b. Improve services for homeless persons and prevent those at -risk of
homelessness from losing their housing.
c. Improve services for women and children who are homeless because of
domestic violence.
4. Non - housing Community Development
a. Eliminate blight, blighting influences, and prevent the deterioration of
property.
b. Improve health and safety through rehabilitation of community facilities.
c. Preserve community infrastructure in order to provide economic
empowerment in targeted neighborhoods.
In addition, the federal regulations that govern the Consolidated Plan require the City
to address community development issues that are common to all communities
throughout the nation, including impediments to fair housing, poverty, and the threat
of lead -based paint. The Strategic Plan section describes the City's strategies to
address these specific issues.
R. Monitoring
As the lead agency for the City of Newport Beach 2005 -2009 Consolidated Plan, the
Planning Department is continually honing its standards and procedures to monitor
the performance and effectiveness of housing and community development
activities. Monitoring of the Planning Department's contractors and sub - recipient
partners is not just a regulatory process or a fact - finding mission. Rather, it involves
effective communication and cooperative, problem - solving relationships between
Planning Department and its contractors /sub- recipients.
The Planning Department undertakes two types of monitoring: project monitoring
and Consolidated Plan monitoring. Both types of monitoring ensure the success of
Consolidated Plan projects and activities.
As the lead agency, the Planning Department is refining monitoring procedures to
ensure that projects have measurable outcomes. This refinement will allow
assessment of progress toward the specified goals and objectives of the projects, as
well as ensuring long -term compliance with all applicable program regulations and
statutes. The Planning Department will publish any proposed significant changes to
monitoring standards and procedures in a future Annual Action Plan so that citizens
and grant recipients may comment on those changes.
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S. Leveraging Resources
As part of its goal of collaboration and leveraging, the Planning Department has put
together a list of resources that public agencies, neighborhoods, and nonprofit
organizations can use to further the strategies in the Consolidated Plan. The Planning
Department anticipates that the Federal, State, local, and private resources listed in
this section of the Consolidated Plan will remain available over the five -year period
of the Consolidated Plan. Some of the items listed above are potential financial
resources for both the City and local nonprofits to leverage with current funds.
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Community Profile
II. COMMUNITY PROFILE
A. City in the Past
The City's first inhabitants thousands of years ago were the Shoshone Indians who
lived along the Pacific coast, supported by the abundance of the seas and fertile land.
The dramatic coastline of Newport Beach and its proximity to the water have always
played a great part in the development of the City.
In the mid 1700's, the Spanish aristocrat and military leader Gasper de Portola led an
exposition to claim California frontier land for Spain. Portola enlisted the aid of
Father Junipero Serra and numerous European soldiers to explore previously
unmapped territory.
1800's I
Decades later in the 1800's, land holdings of the Capistrano Mission were parceled
out as Spanish and Mexican land grants to war heroes and aristocratic families.
Later, many Spanish and Mexican landowners were forced to sell large tracts of their
land. The most prominent landowners of the area, Don Sepulveda and Don Bemardo
Yorba, men whose combined holdings comprised Newport Beach's upper bay and
lower bay, sold their tracts to American entrepreneurs by the names of Flint, Bixby,
Irvine and McFadden.
Santa Ana, Tustin and Orange became new farming communities for the settlers who
arrived by steamer and covered wagon. Not long after, hide and tallow businesses
emerged. The first stirring of commerce began when in 1870, a small stem wheeler
from San Diego named "The Vaquero" made its first trip to a marshy lagoon to
exchange lumber for hides, tallow, livestock and gain. James McFadden and other
ranch owners in the Lower Bay decided from then on that the area should be called
"Newport."
In 1888 James McFadden changed the isolated settlement by building a wharf that
extended from the shallow bay of the peninsula to deeper water where large steamers
could dock. Shipping activity increased dramatically, and in two years, Newport was
known as a vibrant Southern California shipping town.
1900's
Attracted by the activity, Pacific Electric Railroad established itself in Newport in
1905, connecting the City of Los Angeles by rail. Rapid transit brought camping
families to the waterfront, and small hotels and beach cottages sprang up to cater to
the emerging tourist industry. At about the same time, the McFadden brothers sold
their holdings of Peninsula land. West Newport, East Newport, Bay Island and
Balboa became vacation communities in the beach boom decade. In 1906 with a
population of 206 citizens, the scattered settlements were incorporated as the City of
Newport Beach. These early settlements soon filled in on the Peninsula, West
1 2002 Newport Beach Conference & Visitors Bureau
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Connnunity Profile
Newport, Balboa Island and Lido Isle, developing from West to East.
Parts of Newport Heights and Corona del Mar were annexed soon after the turn of
the century. Between 1934 and 1936, the federal government and the county
undertook work around the harbor. They dredged the Lower Bay, extended jetties,
and created the present day contour of Newport Beach.
In 1936, community members dedicated the City's main harbor, named Newport
Harbor. Just six years later, during World War 11, the harbor became a vital hub as
naval ships were built and repaired in its coastal waters. Newport Beach businesses
flourished due in part to an influx of new military personnel. At the end of the war,
many service men and women decided to stay, triggering a real estate boom in
Newport Beach. Seasonal rentals became year -round housing, and the City's identity
as a summer resort location began to change.
The Santa Ana freeway, built in the 1950's, brought even more citizens to the City.
During this time, housing development began to spread northward from the
waterfront to the hills and mesa areas. Industries changed, as the fishing industry,
once the backbone of Newport Beach's economy, gradually declined to be replaced
with vibrant new businesses and commercial centers. By the 1970's, rapid
urbanization led to the building of shopping centers, hotels, high -scale restaurants,
and many new homes.
Newport Beach residents still identify closely with their respective villages. Popular
neighborhoods include Corona del Mar; West Newport; and Harbor, Lido and
Balboa islands.
B. City Today: Demographics
At the time of the 2000 Census, about 50.8 percent of Newport Beach's residents
were born in California and about 49.2 percent were born elsewhere. During the
2000 Census, the population for the City of Newport Beach had a population of
70,032.
The population of Newport Beach principally is not a multi - culturally diverse
community. Racial and ethnic minorities remain a stable contributor to the growing
population. About 8 percent of the population is non- white, a lesser proportion than
the national average for metropolitan areas. Asians are the largest non -white ethnic
group, comprising 4.0 percent of the population. All other racial and ethnic groups
account for less than 1 percent each. Today's population is a relatively even mix of
males (50.5 percent) and females (49.5 percent).
Age and School Enrollment
The median age for Newport Beach residents is 41.6 years old. About 4 percent are
young children under the age of 5. The City's school -age children (5 to 19 years old)
account for 13.1 percent of the population. Of these, 34.5 percent are enrolled in
elementary school (grades 1 through 8) and 16.3 percent are in high school (grades 9
through 12).
The majority (48.2 percent) of persons in Newport Beach are between the ages of 25
and 54 years old. Persons of age 55 and over account for 29 percent of the population
City of Newport Beach 11 -2 2005 — 2009 Consolidated Plan
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of Newport Beach. Between 1990 and 2000, the population of those aged 55 and
over increased by 75 percent. Almost 22.9 percent of the population is age 60 and
over. A small but significant segment (2.1 percent) of this group are considered to be
"frail" elderly (84 years old and over) residents.
Households
Newport Beach has grown to over 33,071 households. Although 51.3 percent of
these households are families, non - family households have increased to 48.7 percent.
The average household size is 2.09 persons per household, whose median income is
approximately $83,455 (in 1999). The average family size is 2.71 persons per family,
whose median income is approximately $111,166 in 1999.
Other Information
The 2000 U.S. Census counted 37,288 total housing units. Of these, 4,217 were
vacant. 38,316 residents were employed. The unemployment rate at that time was 2
percent, although 34.2 percent of all adults were not in the work force. The per capita
income was $63,015, and 2 percent of residents were living below the poverty level.
C. Business Climate
There are many reasons quality businesses choose Newport Beach. Amenities such
as the nearby major airport, close proximity to technologically - proclaimed
University of California at Irvine, a diversified and financially solid local economy,
and business - friendly City Hall add up to a winning location for small to large
businesses. There are many opportunities for play in Newport Beach including
nature walks or bike rides along the Upper Newport Bay Ecological Reserve, fishing
excursions or whale watching from the Balboa Pavilion on the Newport Harbor,
surfing or swimming at the many beaches, shopping at the open air Mediterranean -
style Fashion Island, or enjoying the sunset from one of the two piers over the
Pacific Ocean, where dolphins play and pelicans dive for fish. For work or for play,
the City of Newport Beach is the diamond among Orange County gems, and is the
finest of Southern California.I
Economy and Transportation
Newport Beach is known for its savvy corporate offices, mild Pacific coastal climate,
and the nearby airport served by a dozen major air carriers and named after
legendary resident John Wayne. Getting around the Newport Beach area is
convenient, with commute times rarely more than 15 minutes. The nearby John
Wayne /Orange County airport to the north handles nearly 70 commercial flights
daily, serving approximately 4.5 million passengers annually. Other nearby airports
include Long Beach Municipal Airport (25 miles north), Los Angeles International
Airport (40 miles north), and San Diego International Airport/Lindbergh Field (80
' Ciy of Newport Beach Website (http: / /www.city.newport- beach. ca.us /EconDev /EconDevMain.httnl)
City of Newport Beach 11 -3 2005 — 2009 Consolidated Plan
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miles south). As in most major cities, you'll find car and limousine rentals, as well as
commuter airline, bus, and train servicedI
Facilities
With the temperate climate and variety of water and beachfront activities, you'll find
a range of possibilities. From Newport Beach Municipal Beach and the world
famous surfers' "Wedge," to the well - sheltered, family- oriented Balboa Bay beach,
there is something for everyone. Waterfront activities abound, including yachting,
surfing, and golf And in the evening, the many clubs and diverse local restaurants
provide nightlife entertainment.
In 1906, when the City of Newport Beach was officially incorporated, the first City
Hall was located east of the Newport Pier on the Oceanfront. The Police Department
used several offices in the City Hall building until they moved to their own building
on Court Avenue. During these early years, various Marshals headed the Police
Department. The Newport Beach Fire Department is made up of 300 employees with
seasonal lifeguards.2
Utilities
Newport Beach is serviced by the Southern Cal Gas Company for gas and by San
Diego Gas and Electric for electricity. The City of Newport Beach provides water
and trash services. Telephone service is provided through Pacific Bell or Cox
Communications.
Schools
One of the primary concerns of those relocating with children is the quality of the
schools. The Newport/Costa Mesa Unified School District serves the City of
Newport Beach and the Costa Mesa area with eighteen elementary schools, two
middle schools, and five high schools. Roughly half of these are located within the
Newport Beach city limits.
Health Care
There are many health care facilities with doctors, dentists and other healthcare
professionals to choose from in Newport Beach. The hospitals that serve the city are
Hoag Memorial Hospital and Newport Bay Hospital.
' http://www.karenlynch.com/newportbeach/tmnsportation,html
2 htt p:// www. karenlynch. com/newportbeacb/activities.htm]
3 http : / /www.orangecountyufilifies.com
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Consolidated Plan Development
III. CONSOLIDATED PLAN DEVELOPMENT
A. - Introduction
The U.S. Department of Housing and Urban Development (HUD) requires the City
of Newport Beach to complete a Consolidated Plan to receive funds for the
Community Development Block Grant (CDBG) program. CDBG can fund a variety
of activities to assist low- income people and neighborhoods, such as housing
rehabilitation, community services, infrastructure, economic development, and
business assistance.
B. Purpose of the Consolidated Plan
The Consolidated Plan serves as:
A planning document which builds on a comprehensive consultation and
citizen's participation process.
An application for HUD funds.
A strategy for housing, homelessness, community development, and economic
development.
An annual business plan that presents an investment strategy for CDBG.
It contains six major components:
• A housing market analysis.
• An assessment of housing, homelessness, community development, economic
development, and related needs.
• A description of priority needs.
• Long -term strategies to address those priority needs.
• An explanation of how the City will work with its partners in the public, private,
and nonprofit sectors to carry out these strategies.
• A description of annual projects and activities the Planning Department will take
to carry out those strategies —also called an Annual Action Plan.
Each component serves a specific purpose. The housing market analysis and needs
assessment allow the Planning Department to determine existing needs. Identifying
needs helps the City set priorities for its CDBG program. Finally, assessing needs
and identifying priorities allows the Planning Department, with the advice of citizens
and partner organizations, to set five -year strategies to address the priority needs.
The Planning Department then proposes how to invest CDBG funds for projects in
the coming program year to carry out those five -year strategies.
The Annual Action Plan and CAPER:
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To receive CDBG funds, the City must produce an Annual Action Plan each year.
The Annual Action Plan describes the City's plaimed investments for the coming
program year, including proposed actions, and proposed CDBG projects.
The Annual Action Plan is similar to a yearly operating plan for a business. It
outlines the City's proposed activities in several areas and relates these activities
back to the five -year strategies to address priority needs described in the
Consolidated Plan.
The City must also submit a Consolidated Annual Performance and Evaluation
Report (CAPER) each year. The CAPER reports the City's progress in meeting its
proposed actions and projects, as well as its progress in carrying out the
Consolidated Plan's five -year strategies. The CAPER is similar to an annual report to
stockholders except, with this example, the stockholders are citizens and taxpayers.
1. Consolidated Plan Goals
Newport Beach must use its CDBG funds to provide decent housing, a suitable
living environment, and expanded economic opportunity for its residents,
particularly those earning low- to moderate- incomes. The statutes' for the
Federal grant programs covered by the Consolidated Plan set forth three basic
goals against which HUD will evaluate the City's performance:
Provide decent housing, which includes activities to:
• Help homeless people obtain appropriate housing.
• Assist people threatened with homelessness.
• Retain the affordable housing stock.
• Make available permanent housing that is accessible to job opportunities
and is affordable to low- income people and families without discrimination.
• Increase the supply of supportive housing for persons with special needs.
Provide a suitable living environment, which includes activities to:
• Improve safety and livability of neighborhoods.
• Increase access to quality facilities and services.
• Reduce isolation of income groups within an area through decentralization
of housing opportunities and revitalization of deteriorating neighborhoods.
• Restore and preserve properties of special value for historic, architectural, or
aesthetic reasons.
• Conserve energy resources.
Expand economic opportunity, which includes activities to:
• Create and retain jobs, especially for low- income people.
The Housing and Community Development Act and the National Affordable Housing Act (as amended).
City of Newport Beach Pg. 111 -2 2005 -2009 Consolidated Plan
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• Expand small businesses.
• Provide public services concerned with employment.
• Increase access to capital and credit for development activities that prompte
the long -term socioeconomic viability of the city.
• Empower low- income persons to achieve self - sufficiency to reduce
generations of poverty in federally- assisted public housing.
2. Institutional Structure
The City's Planning Department prepared this Consolidated Plan to promote
these statutory goals through a collaborative process that encourages citizen
participation and collaboration among organizations. It views these goals as an
opportunity to extend and strengthen partnerships among organizations in the
public, private, and nonprofit sectors.
3. Lead Agency
As described in the Executive Summary section, the Planning Department is one
of the primary entities that carries out the vision of the Consolidated Plan. As
advised by the CDBG Advisory Committee, the Planning Department carves
out policies and programs designed to help neighborhoods, whether they are
places or groups of citizens sharing a common goal, achieve a high quality of
life for all of the city's residents.
The City of Newport Beach 2005 -2009 Consolidated Plan is the primary way
the Planning Department, as advised by the CDBG Advisory Committee, carries
out this mission. The Planning Department, along with its housing and
community development partners in Newport Beach, carries out the five -year
strategies in the Consolidated Plan.
C. Citizen Participation & Consultation Plan for 2005 -2009
The Planning Department must develop and follow a Citizen Participation Plan to
receive Federal funds for the Community Development Block Grant (CDBG)
program. The Citizen Participation Plan covers the five -year Consolidated Plan, each
subsequent Annual Action Plan, each year's Consolidated Annual Performance and
Evaluation Report, and any Amendments to the Consolidated Plan or its five Annual
Action Plans.
1. Purpose
The City of Newport Beach is an entitlement jurisdiction receiving Community
Development Block Grant (CDBG) funds directly from the U.S. Department of
Housing and Urban Development (HUD). Pursuant to the program regulations,
the City is required to prepare a five -year Consolidated Plan and annual updates
City of Newport Beach
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to guide and report on the use of CDBG funds. Annual reviews of program
performance are also required.
This Citizen Participation Plan sets forth the City of Newport Beach's policies
and procedures for citizen participation in the development of the Consolidated
Plan Documents and any subsequent amendments. The Citizen Participation
Plan provides an opportunity for nonprofit service agencies and the community
to work in partnership with the City to identify needs and allocate CDBG funds.
While this plan encourages the participation of all citizens, special assurances
will be made to ensure the participation of the following: extremely low -, low -,
and moderate - income persons; persons living in areas where federal funds are
proposed to be used; residents of assisted housing; low income residents of
target revitalization areas; minorities; non - English speaking persons; and
persons with physical disabilities.
2. Definitions
For purposes of the CDBG program, the following definitions will apply:
Consolidated Plan Documents (CPD) - For the CDBG programs for the City of
Newport Beach, the Consolidated Plan Documents will include the following:
• Five -Year Consolidated Plan
• Five -Year Analysis of Impediments to Fair Housing Choice
• Citizen Participation Plan
• One Year Action Plan
• Consolidated Annual Performance Evaluation and Report (CAPER)
Low- and Moderate - Income Households - Pursuant to HUD regulations, the
primary beneficiaries of the CDBG program should be low- and moderate -
income households, defined by HUD as follows:
Extremely Low - Income Household - 0 -30% County Median Family Income
(MFI).
Low - Income - 31 -50% County MFI.
Moderate - Income - 51 -80% County MFI.
Low- and Moderate- Income Area - Generally defined as a census tract(s) or
block group(s) in which a minimum of 51 percent of the residents have an
income not exceeding 80 percent of the County median income.
Slum or Blighted Area - An area meeting the definition of a slum, blighted,
deteriorated or deteriorating area under State or local law, typically identified as
a Redevelopment Project Area, or where there are a substantial number of
deteriorating or dilapidated buildings and/or improvements throughout the area.
City of Newport Beach Pg. III -4 2005 -2009 Consolidated Plan
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3. Citizen Participation Strategy
The City of Newport Beach recognizes that CDBG funds are federal tax money
returned to the City to be used primarily to benefit extremely low -, low -, and
moderate - income persons. City staff and officials are stewards of this public
money and will openly discuss all records, except those confidential records
protecting a household's privacy.
4. Decision Making Bodies
The City of Newport Beach has established a CDBG Advisory Committee to
assist the City Council in making funding decisions relating to the CDBG,
programs. The functions and makeup of this group are described below.
CDBG Advisory Committee:
The CDBG Advisory Committee is comprised of the Assistant City Manager,
the Planning Director, and the Project Manager. The CDBG Advisory
Committee will perform in an advisory manner to the City Manager and City
Council concerning planning, implementing, and assessing the CDBG
programs /activities related to public service, capital expenditures, and
administration expenditures. In addition, the CDBG Advisory Committee will
review all public service grant applications for funding and will recommend
funding priorities to the City Council.
This will be accomplished through the following tasks:
• Information dissemination during the CDBG application process, and other
HUD application processes as applicable;
• Preparation of project recommendations for City Council review and final
approval; and
• Review of project/program progress.
City Council:
After reviewing the recommendations on capital outlay projects, administration,
and public service projects made by the CDBG Advisory Committee and
considering public testimony and comments, the City Council shall make the
final funding determinations for the CDBG funds.
5. Program Planning Process
The City of Newport Beach will adhere to the following citizen participation
process when conducting program planning and reporting for the CDBG
programs.
a. Citizen Participation Plan
i. Plan Development
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a) Plan Considerations
As a part of the Citizen Participation Plan process, and prior to the
adoption of the Consolidated Plan, the City will make available the
information required to perform relevant informed decisions. This
information will be made available to citizens, public agencies, and
other interested parties.
The information to be supplied will include: the amount of
funding that the City expects to receive, the range of activities that
may be undertaken, and the amount of funds that will benefit
persons of low- and moderate - income.
The City shall also: provide an assessment of community
development and housing needs, identify short- term and long -term
community development objectives directed toward the provision
of decent housing and the expansion of economic opportunities
primarily for persons of low- and moderate - income.
Additionally, the City must attest to its compliance with the
acquisition and relocation requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended, and implementing regulations at 49 CFR 24, as
effectuated by the City's adopted Residential Anti - Displacement
and Relocation Assistance Plan, as required under Section 104(d)
of the Housing and Community Development Act of 1974, as
amended.
b) Plan Review and Comment
The Draft Citizen Participation Plan shall be made available for
public review for a 30 -day period. Written comments will be
accepted during the 30 -day public review. A summary of the
comments, views, and City responses shall be attached to the
public hearing draft of the Citizen Participation Plan.
c) Public Hearing
The City Council shall conduct a public hearing to accept public
comments on the draft Citizen Participation Plan. After public
comments are heard and considered by the City Council, it shall
approve the Citizen Participation Plan.
ii. Plan Amendment
The City can make amendments to the Citizen Participation Plan
through the following amendment process:
a) Public Review and Comment
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Substantial amendments to the Citizen Participation Plan may be
made available for public review for a 30 -day period. Written
comments will be accepted during the 30 -day public review. A
summary of the comments, views, and City responses will be
attached to the public hearing draft of the Citizen Participation
Plan.
b) Public Hearing
The City Council shall conduct a public hearing to accept public
comments on the draft amended Citizen Participation Plan. After
public comments are heard and considered by the City Council, it
shall approve the amended Citizen Participation Plan.
b. Five -Year Consolidated Plan
Plan Development
During the development of the Five -Year Consolidated Plan, the City
will consult the following services /agencies to solicit their input on
housing and community development needs:
• Health Services Providers
• Social Services for: Children, Elderly, Disabled, Homeless,
Persons With AIDS
• State and Local Health Agencies
• Adjacent Local Governments
• Economic Development Interests
• Public Housing Agency
A variety of mechanisms may be utilized to solicit input from these
persons /service providers /agencies. These include telephone or
personal interviews, mail surveys, and consultation workshops.
ii. Public Review and Comment
The Draft Consolidated Plan will be made available for public review
for a 30 -day period. Written comments will be accepted during the 30-
day public review. A summary of the comments and views, and City
responses shall be attached to the Consolidated Plan.
iii. Public Hearings
The City will conduct a public hearing/meeting to accept public input
on community needs during the development stage of the Draft
Consolidated Plan. The City Council will also conduct a public hearing
City of Newport Beach Pg. 111 -7 2005 -2009 Consolidated Plan
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to accept comments on the Draft Consolidated Plan which will be
provided for public review for a 30 -day period (see above).
iv. Plan Amendment
Substantial Change
The City will formally amend its approved Five -Year Consolidated
Plan whenever a decision is made to propose a substantial change in
allocation priorities or method of distribution of funds.
For the purpose of the Five -Year Consolidated Plan, a "substantial
change" will constitute a cumulative change equal to or in excess of
20% of the City's CDBG entitlement for a program year.
For example, if the Five -Year Consolidated Plan's Priority Needs
Summary Table indicates a "Low Priority Need" for multi - family
housing rehabilitation, and during the five -year time frame, the City
changes the priority level to "High" in order to implement a multi-
family rehabilitation program using 20% or more of the City's annual
CDBG allocation; this change in would constitute a substantial change
to the Five -Year Consolidated Plan and a formal amendment to the
Plan is required.
Changes in the allocation priorities not amounting to 20% of the
entitlement will not be considered as a substantial change to the Five -
Year Consolidated Plan; therefore, no formal amendment to the Plan
requiring public review and comment will be warranted. City Council
approval of the priority changes is still required.
However, if a program or type of programs is indicated in the Five -
Year Consolidated Plan as "No Such Need," the City will need to
amend the Consolidated Plan in order to implement the program(s)
regardless of the level of funding. A change from "No Such Need" to a
Low, Medium, or High level priority is considered by HUD as a
substantial amendment to the Consolidated Plan.
v. Public Review and Comment
Substantial amendments to the Consolidated Plan will be made
available for a 30 -day public review. Written comments will be
accepted during the 30 -day public review. A summary of the comments
and views, and City responses must be attached to the amendment.
vi. Public Hearings
The City Council will conduct a public hearing/meeting to accept
public input on any amendment to the Consolidated Plan.
City of Newport Beach Pg. 111 -8 2005 -2009 Consolidated Plan
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c. One Year Action Plan
i. Plan Development
In addition to Newport Beach residents, the City will ensure that public
(including City staff) and private agencies that provide the following
services will be consulted in the development of the Action Plan:
• Health Services Providers
• Social Services for: Children, Elderly, Disabled, Homeless,
Persons With AIDS
• State and Local Health Agencies
• Adjacent Local Governments
• Economic Development Interests
• Public Housing Agency
These persons /service providers/agencies will be contacted and brought
into the process in the following manner:
Each year, the City will send a written Notice of Funding
Availability (NOFA) to each cooperating department and nonprofit
agency advising them that the planning cycle has begun for CDBG
funds, and that the City is accepting project proposals.
City staff will conduct outreach to special interest groups in
Newport Beach, such as senior citizens and the disabled, and make
presentations on the Action Plan to these groups where necessary.
The City will conduct an eligibility analysis on all project
proposals submitted and review the eligible proposals for service
provider grants. The review for funding consideration will be
conducted by the CDBG Advisory Committee.
ii. Public Review and Comment
The Draft Action Plan incorporating the City's proposed uses of CDBG
funds will be made available for public review for a 30 -day period.
Written comments will be accepted during the 30 -day public review. A
summary of the comments and views, and City responses will be
attached to the Action Plan.
iii. Public Hearings
The CDBG Advisory Committee may hold a public meeting to discuss
the eligible project proposals and funding recommendations for both
public service grant and capital outlay projects and make funding
decisions. The Council will conduct a public hearing to accept
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comments on the Draft Action Plan which will be provided for public
review for a 30 -day period (see above).
iv. Action Plan Amendment
Substantial Change:
The City will formally amend its approved Action Plan whenever a
decision is made to propose a substantial change to the Plan, either by:
• carrying out an activity not previously described in the Action
Plan;
• canceling an activity previously described in the Action Plan;
increasing or decreasing the amount to be expended on a particular
activity from the amount stated in the Action Plan by more than 20
percent; or
■ substantially changing the purpose, scope, location, or
beneficiaries of an activity.
Changes in funding for an existing activity not amounting to more than
50 percent will not be considered as a substantial change to the One
Year Action Plan; no formal amendment to the Action Plan requiring
public review and comment will be warranted. However, City Council
approval of the activity funding changes is still required.
v. Public Review and Comment
Substantial amendments to the Action Plan will be made available for a
30 -day public review. Written comments will be accepted during the
30 -day Public review. A summary of the comments and views, and
City responses must be attached to the Action Plan.
vi. Public Hearings
The City Council will conduct a public hearing/meeting to accept
public input on any amendment to the One -Year Action Plan.
d. Consolidated Annual Performance and Evaluation Report (CAPER) Plan
Development
i. Public Review and Comment
The Consolidated Annual Performance and Evaluation Report
(CAPER) will be made available for a 15 -day public review. Written
comments will be accepted during the 15 -day public review. A
summary of the comments and views, and City responses must be
attached to the CAPER.
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ii. Public Hearing
The City Council will conduct a public hearing to accept public input
on the Consolidated Annual Performance and Evaluation Report
(CAPER).
e. Five -Year Analysis of Impediments (AI) to Fair Housing Choice
Plan Development
During the development of the Five -Year Al, the City will consult the
following groups /agencies to solicit their input on fair housing issues in
the City:
• Fair Housing Organizations
• Other local governments
• Advocacy groups for special needs households
• Affordable housing providers
• Banks and other financial institutions
• Educational institutions
A variety of mechanisms may be utilized to solicit input from these
groups/agencies. These include telephone or personal interviews, mail
surveys, and consultation workshops.
ii. Public Review and Comment
The Draft Al will be made available for public review for a 30 -day
period. Written comments will be accepted during the 30 -day public
review. A summary of the comments and views, and City responses
must be attached to the Al.
iii. Public Hearings
The City will conduct a public hearing/meeting to accept public input
on fair housing issues during the development stage of the Draft Al.
The City Council will also conduct a public hearing to accept
comments on the Draft Al which will be provided for public review for
a 30 -day period (see above).
6. Public Notification
a. Public Meetings and Hearings
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Staff will ensure adequate advance notice of all public meetings and
hearings. Adequate noticing will include:
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Printing notices in the Daily Pilot and /or other newspapers of general
circulation in the City.
• Posting notices at City Hall, the Newport Public Library, and the City
Clerk's office.
Notices will be posted at least 10 days prior to the meeting date.
b. Documents for Public Review
Notices of availability of all draft Consolidated Plan Documents (CPD) for
public review and a summary of the CPD will be published in a display ad
in the Daily Pilot. Additionally, Notices of Availability will be posted at
City Hall, the Newport Beach Public Library, and the City Clerk's office.
7. Access to Meetings
All public hearings will be conducted at the following location:
City of Newport Beach
City Council Chambers
3300 Newport Blvd.
Newport Beach, CA 92658 -8915
It is the intention of the City to comply with the Americans with Disabilities Act
(ADA) in all respects. If an attendee or participant at a public hearing needs
special assistance beyond what is normally provided, the City will attempt to
accommodate these people in every reasonable manner. The City Clerk must be
notified at least 72 hours prior to the public hearing.
8. Availability of Documents for Public Review
The City will place draft copies of the Consolidated Plan Documents and
substantial amendments to these documents for public review at the following
locations:
• City of Newport Beach, Planning Department.
• City Clerk's office
• Newport Beach Public Library
The City will provide a reasonable number of free copies of the documents to
citizens and groups upon request. Notices of Availability of draft documents for
public review will be published as specified in the Citizen Participation Plan.
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9. Access to Records
The City will ensure timely and reasonable access to information and records
related to the development of the Consolidated Plan Documents (CPD), and the
use of monies for programs funded by CDBG. Information to be made available
will include budget and program performance information, meeting minutes,
and comments received by the City during the development of the CPD.
Requests for information and records must be made to the City of Newport
Beach in writing. Staff will respond to such requests within 15 working days or
as soon as possible thereafter.
10. Technical Assistance
Upon request, staff may provide technical assistance to groups representing
extremely -low, low -, and moderate- income persons to develop funding requests
for CDBG eligible activities. Technical assistance will be provided as follows:
■ Establish an annual project proposal submission and review cycle (NOFA)
that provides information, instructions, forms and advice to interested
extremely low -, low- and moderate - income citizens or representative groups
so that they can have reasonable access to the funding consideration
process.
• Provide self - explanatory project proposal forms and instructions to all
persons who request them whether by telephone or by letter. The City's
funding application form is designed to be easily understood and short,
while still addressing all key items necessary to assess the proposed project.
Statistics concerning specific areas of the City may be furnished by City
staff upon request.
• Answer, in writing, all written questions and answer verbally all verbal
inquiries received from citizens or representative groups regarding how to
write or submit eligible project proposals.
• Meet with groups or individuals as requested, to assist in identifying
specific needs and to assist in preparing project proposal applications.
• Obtain information in the form of completed project proposal forms from
citizens or non -profit agencies and assemble a list of proposals available for
public review.
Conduct a project eligibility analysis to determine, at an early stage, the
eligibility of each project. In cases where only minor adjustments are
needed to make proposals eligible or otherwise practical, City staff will
advise the applicants on the options available and desired changes to the
proposals.
• Provide foreign language translation on as needed basis.
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11. Comments and Complaints
a. Comments
Citizens or the City government, as well as agencies providing services to
the community, are encouraged to state or submit their comments in the
development of the CPD and any amendments to the CPD. Written and
verbal comments received at public hearings or during the comment period,
will be considered and summarized, and included as an attachment to the
City's final CPD. Written comments should be addressed to:
City of Newport Beach
Planning Department
3300 Newport Blvd.
Newport Beach, CA 92658 -8915
A written response will be made to all written comments within ten working
days, acknowledging the letter and identifying a plan of action, if necessary.
Every effort will be made to send a complete response within 15 working
days to those who submit written proposals or comments.
Copies of the complete final CPD and amendments to the CPD will be
available to residents at the following locations:
• City of Newport Beach Planning Department
• City Clerk's Office
• Newport Beach Public Library
b. Complaints
Complaints regarding the CPD plaiming process and CPD amendments
must be made within 30 days from the date the document is published for
comment. A written response will be made to all written complaints within
15 working days, acknowledging the letter and identifying a plan of action,
if necessary.
The City will accept written complaints provided they specify:
• The description of the objection, and supporting facts and data.
• Provide name, address, telephone number, and a date of complaint.
12. Bilingual Opportunities
Wherever a significant number of extremely low- and low- income persons speak
and read a primary language other than English, translation services at all public
hearings will be provided in such language if translation services are available
and are requested in advance at least 72 hours prior to the public meeting.
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13. Appeals
Appeals concerning the CPD, statements, or recommendations of the staff
should be made to the following persons in the order presented:
• Planning Director
• Assistant City Manager
• City Manager
• City Council
• Los Angeles Area Office of HUD (if concerns are not answered)
D. Community Involvement in the 2005 -2009 Consolidated Plan
The City of Newport Beach views the Consolidated Plan as an opportunity to invest
its CDBG resources. It urges citizens to voice their concerns and share their ideas
concerning community development, affordable housing, and homelessness. It
encourages all residents, especially those living in low- and moderate - income
neighborhoods, to participate in the planning process.
The Consolidated Plan process brings government agencies, community
organizations, service providers, and city residents together to address the larger
picture in which housing and community development programs operate. The City
encourages agencies, businesses, and community groups to share their comments on
needs, strategies, and proposed projects.
1. Summary of Citizen Participation
The Planning Department developed the City of Newport Beach 2005 -2009
Consolidated Plan using substantial citizen participation and consultation. The
process offered numerous opportunities for public input, comment, and review:
A Community meeting to garner citizen comments on the needs of the
community was held on November 3, 2005. A Needs Assessment survey was
distributed at all of the City's public facilities and on the City's website to
communicate their comments on community development needs housing, public
housing, non - housing community development, and homeless needs.
Review by the CDBG Advisory Committee of the needs, priorities, and five -
year strategies in the City of Newport Beach 2005 -2009 Consolidated Plan as
well as the proposed projects and activities in the City's 2005 Annual Action
Plan were conducted. Phone consultation was conducted with several public
service agencies and /or community based organizations regarding the needs,
priorities, and five -year strategies in the City of Newport Beach 2005 -2009
Consolidated Plan as well as the proposed projects and activities in the City's
2005 Annual Action Plan.
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A 30 -day public comment period was provided to allow residents an opportunity
to obtain and review the draft copy of the Consolidated Plan. In addition, the
City of Newport Beach 2005 -2009 Consolidated Plan was distributed at the
following places:
• City of Newport Beach Planning Department
• City Clerk's Office
• Newport Beach Public Library
2. Residents Survey
A Needs Assessment survey (see Appendix "A ") was distributed at various
public facilities and was forwarded to a number of public service and
community based organizations that serve the City of Newport Beach. In
addition, the survey was posted in the City's website to allow visitors to the
website to complete the form on line. The surveys were distributed and posted
on the website in an effort to garner citizen comments on the needs of the
community. The survey was broken down into seven sections. The sections
were Community Facilities, Community Services, Infrastructure, Neighborhood
Services, Special Needs Services, Business and Jobs, and Housing. The survey
asked the residents to rate the need level for each of the items listed in the
survey. The survey was provided in English and in Spanish in an effort to reach
the Spanish speaking residents of the City. The results of the survey are also
included in Appendix "A."
3. Community Meetings for Consolidated Plan
To gamer the opinion of Newport Beach's residents on community needs, the
Planning Department held a town meeting at the Newport Beach Council
Chambers. The time and location was selected to make it as convenient to the
public as possible, particularly actual and potential beneficiaries of program
activities. The town meeting was held on the following dates and locations:
• Wednesday, November 3, 2004 at 6:00 p.m. at the Newport Beach City
Council Chambers located at 3300 Newport Blvd. Newport Beach, CA 92658-
8915
The public meeting did not result in any resident attending and therefore, no
comments were received.
4. Citizen Participation and Consultation Opportunities
The Planning Department engaged in outreach efforts to residents,
organizations, and businesses regarding the needs and strategies in the
Consolidated Plan.
a. CDBG Advisory Committee Review
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Members of the CDBG Advisory Committee advised the Planning
Department on the needs, priorities, and five -year strategies in the
Consolidated Plan. The CDBG Advisory Committee also advised staff on
proposed projects and actions in the 2005 Annual Action Plan.
As the Department's official advisory group, the CDBG Advisory
Committee provides opinions regarding the Department's programs and
policies regarding CDBG. Therefore, the CDBG Advisory Committee
discussed needs, strategies, and projects at their meetings.
b. Consultation and Review by Community Organizations
As part of its research on the needs of low- income residents —and the
development of strategies to address these needs —the Planning Department
consulted with public, private, and nonprofit organizations in the city that
provide housing and community development resources, programs, and
services.
c. Public Comment Period
The Planning Department held a 30 -day public comment period beginning
April 1, 2005. During this comment period, it encouraged City residents to
provide their verbal or written comments about the Consolidated Plan's
proposed five -year funding goals for housing, homelessness, economic
development, and community development needs —and its strategies,
activities, and projects.
d. Distribution of Draft Consolidated Plan
To provide an easy way for citizens to comment during the public comment
period, the Planning Department put the City of Newport Beach 2005 -2009
Consolidated Plan on its Website. It also distributed copies of the draft plan
to the local library and City facilities. Finally, it made available copies to
anyone who called or wrote. The plan was available on CD -ROM for
anyone wishing a copy in digital format.
e. Public Hearing
During the public comment period, Planning Department also encouraged
city residents to attend a public hearing held by the City Council in May 10,
2005 in the Newport Beach City Hall, Council Chambers located at City
Council Chambers, 3300 Newport Blvd., Newport Beach, CA 92658 -8915.
The Planning Department placed a public notice in The Daily Pilot.
Appendix `B" contains the public notice, as well as a summary of public
comments and the City's response. These responses include comments
made at the public hearing and the City's response to comments not
incorporated into the final Consolidated Plan and 2005 Annual Action Plan.
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f. Citizen Comments
The Planning Department will summarize oral comments from public
hearings and any written comments it receives concerning the Consolidated
Plan, Annual Action Plan, or CAPER. Each document will contain a
summary. of any comments received concerning that document in an
Appendix. Newport Beach residents may obtain copies of the full version of
written or public hearing comments by contacting the Planning Department.
E. Anti - Displacement and Relocation Plan
The City's Citizen Participation Plan must include an Anti - displacement and
Relocation Plan that describes how it will help persons who must be temporarily
relocated or permanently displaced due to the use of CDBG funds. This plan takes
effect whenever the City funds projects that involve the following:
• Property acquisition.
• Potential displacement of people from their homes and the need to relocate
people (either permanently or temporarily).
• The demolition or conversion of low- and moderate- income dwelling units
1. Background
Two acts apply whenever any of the above issues are present: the Uniform
Relocation Assistance and Real Property Policies Act of 1970 (URA) and
Section 104(d) of the Housing and Community Development Act of 1974. Each
of these acts places different obligations on the City.
The URA governs the processes and procedures which the City and the Planning
Department must follow to minimize the burden placed on low- and moderate -
income tenants, property owners, and business owners who must move (either
temporarily or permanently) as the result of a project funded in whole or in part
by the CDBG program.
The URA applies to:
• Displacement that results from acquisition, demolition, or rehabilitation for
HUD - assisted projects carried out by public agencies, nonprofit
organizations, private developers, or others.
• Real property acquisition for HUD - assisted projects (whether publicly or
privately undertaken).
• Creation of a permanent easement or right of way for HUD - assisted projects
(whether publicly or privately undertaken).
• Work on private property during the construction of a HUD - assisted project
even if the activity is temporary.
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2. What is Displacement?
Displacement occurs when a person moves as a direct result of federally
assisted acquisition, demolition, conversion, or rehabilitation activities, because
he or she is:
• Required to move, or
• Not offered a decent, safe, sanitary and affordable unit in the project, or
• Treated "unreasonably" as part of a permanent or temporary move.
• A person may also be considered displaced if the necessary notices are not
given or provided in a timely manner and the person moves for any reason.
3. What is a Displaced Person?
The term displaced person means any person that moves from real property or
moves his or her personal property from real property permanently as a direct
result of one or more of the following activities:
• Acquisition of, or written notice of intent to acquire, or initiation of
negotiations to acquire, such real property, in whole or in part, for a project.
■ Rehabilitation or demolition of such real property for a project.
■ Rehabilitation, demolition, or acquisition (or written notice of intent) of all
or a part of other real property on which the person conducts a business or
farm operation, for a project.
• Newport Beach offers advisory and financial assistance to eligible tenants
(or homeowners) who meet the above definition.
4. Persons Not Eligible for Assistance
A person is not eligible for relocation assistance under the provisions of the
URA if any of the following occurs:
■ The person was evicted for serious or repeated violations of the terms and
conditions of the lease or occupancy agreement, violation of applicable
federal, state, or local law, or other good cause. However, if the person was
evicted only to avoid the application of URA, then that person is considered
displaced and is eligible for assistance.
■ The person has no legal right to occupy the property under state or local
law.
• The City determines that the person occupied the property to obtain
relocation assistance and the HUD Field Office concurs in that
determination.
The person is a tenant - occupant that moved into the property after a certain
date, specified in the applicable program regulation, and, before leasing and
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occupying the property, Newport Beach or its subgrantee provided the
tenant - occupant written notice of the application for assistance, the project's
impact on the person, and the fact that he or she would not qualify as a
"displaced person" because of the project.
• The person is a tenant - occupant of a substandard dwelling that is acquired
or a tenant - occupant of a dwelling unit to which emergency repairs are
undertaken and the HUD field office concurs that:
• Such repairs or acquisition will benefit the tenant;
Bringing the unit up to a safe, decent, and sanitary condition is not
feasible;
• The tenant's new rent and average estimated monthly utility costs will
not exceed the greater of: the old rent/utility costs or 30 percent of
gross household income; and
• The project will not impose any unreasonable change in the character
or use of the property.
• The person is an owner - occupant of the property who moves because of an
"arm's length" acquisition.
• Newport Beach or its subgrantee notifies the person that they will not
displace him or her for the project.
• The person retains the right of use and occupancy of the real property for
life following the acquisition.
Newport Beach determines that the person is not displaced as a direct result
of the acquisition, rehabilitation, or demolition for the project and the HUD
field office concurs in the determination.
5. Minimizing Displacement
The City of Newport Beach will take reasonable steps to minimize displacement
occurring as a result of its CDBG activities. This means that the Planning
Department will:
Consider if displacement will occur as part of funding decisions and project
feasibility determinations.
Assure, whenever possible that occupants of buildings to be rehabilitated are
offered an opportunity to return.
• Plan substantial rehabilitation projects in "stages" to minimize
displacement.
Meet all HUD notification requirements so that affected persons do not
move because they have not been informed about project plans and their
ri ghts.
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6. Anti- Displacement Policy:
Newport Beach's policy is to minimize, to the greatest extent feasible, the
displacement, whether permanently or temporarily, of persons (families,
individuals, businesses, nonprofit organizations, or farms) from projects funded
with CDBG involving single- or multi - family rehabilitation, acquisition,
commercial rehabilitation, demolition, economic development, or capital
improvement activities.
Projects that the City deems beneficial, but that may cause displacement, may be
recommended and approved for funding only if Newport Beach or its subgrantee
demonstrates that such displacement is necessary and vital to the project and that
they take efforts to reduce the number of persons displaced. Further, they must
clearly demonstrate that the goals and anticipated accomplishments of a project
outweigh the adverse effects of displacement imposed on persons who must
relocate.
7. Displacement Assistance
Consistent with the goals and objectives of the CDBG program, Newport Beach
will take all reasonable steps necessary to minimize displacement of persons,
even temporarily. If displacement occurs, the City will provide relocation
assistance to all persons directly, involuntarily, and permanently displaced
according to HUD regulations.
If the City of Newport Beach temporarily displaces a low- or moderate - income
household, that household becomes eligible for certain relocation payments. The
assistance applies to those persons residing in the residence at the time the
application is processed and is based on the following procedures:
If the structure and its occupants are determined eligible for temporary
relocation assistance, the owner- occupants and tenants are eligible for the
actual reasonable cost (based on fair market rent) of temporary lodging
facilities until the structure is determined habitable by Newport Beach's
housing inspector.
• Newport Beach must approve housing and the Lessor and Lessee must sign
a rent agreement before move -in. Housing must be comparable functionally
to the displacement dwelling and be decent, safe, and sanitary. This does not
mean that the housing must be in comparable size. The term "functionally
equivalent" means that it performs the same function, has the same principal
features present, and can contribute to a comparable style of living.
Approved lodging accommodations include apartments and houses.
Newport Beach does not reimburse "rental expenses" for living with a
friend or family member.
• Either Newport Beach will provide the owner - occupants and tenants a direct
payment for moving expenses (to and from temporary housing) and storage
costs, or Newport Beach will arrange moving and storage of furniture with a
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moving company. If Newport Beach makes a direct payment, complete
documentation and receipts are necessary to process claims when storage
costs exceed the amount assumed by the direct payment.
Damage deposits, utility hookups, telephone hookups and insurance costs
are not eligible for reimbursement.
The City may pay the cost of relocation assistance from Federal funds or
funds available from other sources.
8. One -For -One Replacement Dwelling Units
Newport Beach will generally avoid awarding funds for activities resulting in
displacement. However, should Newport Beach fund an activity, specific
documentation is required to show the replacement of all occupied and vacant
dwelling units demolished or converted to another use. Newport Beach will
assure that relocation assistance is provided as described in 24 CFR
570.606(b)(2).
Before obligating or expending funds that will directly result in such demolition
or conversion, Newport Beach will make public and submit to the HUD field
office the following information in writing:
• A description of the proposed assisted activity.
• The general location on a map and approximate number of dwelling units by
size (number of bedrooms) that will be demolished or converted to a use
other than as low- and moderate- income units.
A time schedule for the commencement and completion of the demolition or
conversion.
The general location on a map and approximate number of dwelling units by
size (number of bedrooms) that will be provided as replacement units.
The source of funding and a time schedule for the provision of replacement
dwelling units.
The basis for concluding that each replacement dwelling unit will remain a
low- and moderate- income unit for at least ten years from the date of initial
occupancy.
Consistent with the goals and objectives of the HOME program, Newport Beach
will take all reasonable steps necessary to minimize displacement of persons
from their homes. The City will avoid funding projects that cause displacement
of persons or businesses and will avoid funding any project that involves the
conversion of low- and moderate- income housing to non - residential purposes.
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9. Decent, Safe and Sanitary Dwelling
The basic definition is found at 49 CFR 24.2(1). The term decent, safe, and
sanitary dwelling means a dwelling that meets the following standards and any
other housing and occupancy codes that are applicable. It will:
• Be structurally sound, weather tight, and in good repair.
• Contain a safe electrical wiring system adequate for lighting and other
devices.
• Contain a safe heating system capable of sustaining a healthful temperature
for the displaced person.
• Be adequate to accommodate the displaced person. There will be a separate,
well lit, ventilated bathroom that provides privacy to the user and contains a
toilet, sink, and a bathtub or shower, all in good working order and properly
connected to appropriate sources of water and to a sewage drainage system.
There should be a kitchen area that contains a fully usable sink, properly
connected to hot and cold water and to a sewage drainage system, and
adequate space and utility service connections for a stove and refrigerator.
• Contain unobstructed egress to safe, open space at ground level.
• For a mobility- impaired person, be free of any barriers that would preclude
reasonable ingress, egress, or use of the dwelling by such person. This
requirement will be satisfied if the displaced person elects to relocate to a
dwelling that he or she selects and the displaced person determines that he
or she has reasonable ingress, egress, and the use of the dwelling.
• Comply with lead -based paint requirements of 24 CFR Part 35.
10. Real Property Policies
The City and its CDBG recipients must follow specific guidelines regarding the
acquisition and use of real property funded in whole or in part with CDBG
funds.
11. Use of Real Property
The following standards apply to real property within the recipient's control and
acquired or improved, in whole or in part, using CDBG funds. These standards
will apply from the date funds are first spent for the property until five years
after the project is audited and closed.
A recipient may not change the use of any such property (including the
beneficiaries of such use) from that for which the acquisition or improvement
was made unless the recipient gives affected citizens reasonable notice of, and
opportunity to comment on, any such proposed change, and either:
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• The use of such property qualifies as meeting a national objective and is not
a building for the general conduct of government.
• The requirements in the paragraph below are met.
• If the recipient determines, after consultation with affected citizens, that it is
appropriate to change the use of property to a use that does not qualify
under the above paragraph, it may retain or dispose of the property. The
Newport Beach CDBG program must be reimbursed in the amount of the
current fair market value of the property less any portion attributable to
expenditures of non - federal funds for the acquisition of and improvements
to the property.
• If the change of use occurs within five years of the project being audited and
closed, income from the disposition of the real property will be returned to
the Newport Beach CDBG program.
• Following the reimbursement of the federal program pursuant to the above
paragraph of this section, the property is no longer subject to any federal
requirements.
12. Real Property Acquisition
All real property acquisition activities described in this section and funded in
whole or in part with CDBG funds and all real property that must be acquired
for an activity assisted with Federal funds, regardless of the actual funding
source for the acquisition, are subject to the URA (as amended).
a. What is Real Property Acquisition?
Real property acquisition is any acquisition by purchase, lease, donation, or
otherwise, including the acquisition of such interests as rights -of -way and
permanent easements.
HUD Handbook 1378 and 49 CFR Part 24 currently contains such
regulations. These regulations detail a standard procedure for acquiring
property and methods of determining a purchase price and outline other
documents that must be provided to the City of Newport Beach before
disbursement of funds. These regulations further require the applicant to
provide relocation payments and assistance to any business or residential
occupant of the property whom the acquisition will displace.
13. Eligible Activities
The City of Newport Beach or its sub - grantee may acquire real property for a
project using CDBG funds where the proposed use of the acquired property will
be an activity that the City can demonstrate as beneficial to low- and moderate -
income persons.
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14. Environmental Review Process (24 CFR Part 58)
HUD requires that all real property acquisition projects be reviewed before the
commitment of Federal funds to assess the impact of a project on the
environment. Newport Beach will undertake this review process. The applicant
should be aware, however, that this review process may delay the date by which
CDBG funds may be available and, in case of serious adverse environmental
impacts, may effectively stop a project.
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IV. MOUSING MARKET ANALYSIS
A. Overview
The purpose of this study is to determine the availability of affordable housing in the
City of Newport Beach. It is in the City's interest to ensure its housing stock contains
decent and suitable affordable units, as affordable housing is the basis and
foundation of self - sufficiency. For the purposes of this plan, the City will define
affordable housing based on Section 215 of the National Affordable Housing Act:
Rental Housing is considered affordable if it is (A) occupied by a household
earning less than 80 percent of the area median income and (B) pays a rent no
more than the existing fair market rent established by HUD.
• Owner - occupied Housing is considered affordable if it is (A) the principal
residence of the owner, whose income is less than 80 percent of the area median
income, and (B) the purchase price is not more than 95% of the median purchase
price for the area.
In order to gauge the availability of affordable housing within the City, this study
will examine the following aspects of the current housing market:
• Supply: Current Housing Stock by Size of Units, Units in Structure, and Age of
Unit; Recent Permit Activity; Available Vacant Land.
• Demand: Number of Households by Size and "Cype, Vacancy Rates; Population
Growth; Economic Outlook and Job Growth.
• Supply vs. Demand: Sales Data; Rent Increases; Overcrowded Housing; Cost
Burdened Households.
Based on the above data, the City formulated different levels of need for three
income levels: moderate - income households, low- income households, and
extremely -low income households. These need levels will form the basis for the
City's Five -Year Strategic Plan.
Moderate- income households earn between 50 and 80 percent of the area
median income.
Low- income households earn between 30 and 50 percent of the area median
income.
Extremely -low income households earn less than 30 percent of the area median
income.
In addition to the private housing market, the City examined the inventory of public
and assisted housing to determine the level of need for the following types of
housing and services:
City of Newport Beach Pg. IV-1 2005 -2009 Consolidated Plan
Rev. 4111105
Housing Market dnalysis
Homeless Facilities and Services: includes Homeless Prevention, Emergency
Housing, Transitional Housing, Permanent Supportive Housing, and Supportive
Services
Supportive Housing: including Elderly, Persons with Disabilities, Persons
suffering from Substance Abuse, Persons living with HIV /AIDS
Public Housing and Subsidized Housing: including Low Income Housing Tax
Credit Units, Public Housing developments and Section 8, HUD multi - family
developments, and locally - funded housing
B. Housing Supply
The Planning Department reviewed several variables of the community's housing
stock in order to gain a complete understanding of the available supply of homes.
This section will address the supply, tenancy, condition, and other characteristics of
existing housing stock, as well as touch on future housing development. Note that
some of the tables reflect housing data from the 2000 U.S. census based on occupied
units and not the total number of housing units located in the City. The tables where
this occurs will contain a note denoting such.
Overall Supply
The overall number of housing units in Newport Beach grew at a slow rate
throughout the 1990's. This is due to the fact that the City is completely built out
and any increase is due to the redevelopment of low density residential
properties into a higher density development. The 2000 U.S. Census indicates
that Newport Beach's current housing stock contains 37,288 units, an increase of
7% percent, or 2,427 units, from 1990.
2. Tenure
The rate of homeownership has declined significantly in Newport Beach. The
55.7% percent homeownership rate is below the national rate of 66.2 percent. It
should be noted that while a rise in the homeownership rate increased
throughout the United States, homeownership in Newport Beach declined by 17
percent during the ten year period. Recent increases in the cost of housing have
resulted in homeownership being less attainable to families of modest income.
Low interest rates on mortgages during the prior four years have given potential
homeowners more buying power, but have not necessarily brought
homeownership within reach of families previously excluded when rates were
higher due to the higher cost of housing in the City.
Citv of Newport Beach Pg. IV-2 2005 -2009 Consolidated Plan
Rev. 4111105
Hoasine Market Analysis
Table 4 -1
Chance in Household Tenure: 1990 to 2000
Tenure
Housing Units & % of Total Units
Renter
Total
1990
2000
Change in
Units
Renter
13,653
39.2%
14,663
39.3%
1,010
Owner
17,207
49.3%
18,408
49.4%
1201
Vacant
4,001
11.5%
4,217
11.30/o
216
Total
34,861
100%
37,288
10,396
2,427
Source: 1990 and 2000 US Census
3. Housing Size
The table below provides a breakdown of the size of the housing in the City by
tenure. Note that the table reflects occupied units and not total units. The table
shows that fifty -eight percent of Newport Beach's housing units contain
between two to three bedrooms. Fifteen percent of the units are one - bedroom
units. Combine these figures and 73 percent of Newport Beach's housing units
contain from one to three bedrooms. Only four percent or 1,323 units are
considered to be efficiencies. Six percent of the units have 5 or more bedrooms.
Combined, the four and five bedroom units make up twenty -two percent of the
housing units in the City. The larger size of the units in Newport Beach reflects
the economic strength of the city.
Table 4 -2
Housing Suuulv: Size of Housing Units by Tenure
Size of Housing
Units by Tenure
Owner
Renter
Total
#
I %of total
#
%of total
#
%of total
No bedroom
45
0.14%
1,278
4%
1.323
4%
1 bedroom
592
2%
4,391
13%
4,983
15%
2 bedrooms
4,331
13%
6,065
18%
10,396
31%
3 bedrooms
6,758
20%
2.329
7%
9,087
27%
4 bedrooms
4,815
15%
580
2%
5.395
16%
5 +bedrooms
1,&41
6%
69
0.21%
1.910
6%
TOTAL
18,382
56%
14,712
44%
33,094
*Note: Numbers reflect occupied units only and do not reflect vacant units.
4. Housing Type
Single family detached units currently account for a predominant share of the
housing stock in Newport Beach. Just under forty -four percent of all units are
detached single - family units while attached single - family units, such as
townhouses and condominiums, account for 18.6 percent. As land has become
City offewport Beach Pg. IV -3 2005 -2009 Consolidated Plan
Rev. 4111105
Housinz Market Anal ysts
less available, development trends are toward single family housing with zero
lot lines or P.U.D.'s. This type of higher density development will be formalized
with the adoption of Newport Beach's Comprehensive Plan.
Existing multifamily housing is often packaged in small complexes with less
than ten units. These units account for 18.2 percent of all housing stock, while
structures with ten or more units account for 17.2 percent. Many of these
structures were built between 1940 and 1980.
Mobile homes have traditionally filled a unique and useful niche for the lower
income housing market in Newport Beach. These units are recognized as a
viable solution to the shortage of affordable housing. However, the number of
occupied mobile homes has experienced a decline in recent years and currently
account for 2.2 percent of housing in Newport Beach, or 727units. Compared to
785 units in 1990, this is a loss of 58 units, or over 7 percent. The total number
of occupied and unoccupied units in Newport Beach in accordance with the
2000 U.S. Census is 806 units.
Land in Newport Beach has become too valuable to use as mobile home parks.
Owners of existing parks are under pressure to sell their land for development,
leaving current residents no choice but to relocate. Renting, rather than owning,
a mobile home in Newport Beach is another option available to mobile home
residents who are being displaced.
Table 4 -3
Housing Supply: Units in Structure by Tenure
UNITS IN STRUCTURE BY TENURE
Total Units Owner Renter
Share Share
Number of Units in Share of of Share of of
Structure # % # Cateclor Total # Category Total
1, detached
14,441
43.6%
12,263
85%
37.1%
2.178
15%
6.6%
1, attached
6,165
18.6%
4,112
67%
12.4%
2,053
33%
6.2%
2
2,786
8.4%
578
21%
1.7%
2,208
79%
6.7%
3 or 4
5.9%
258
13%
0.8%
1,687
87%
5.1%
5 to 9
4.0%
141
11%
0.4%
1,166
89%
3.5%
10 to 19
2.6%
80
9%
0.2%
783
91%
2.4%
20 to 49
N3,553
3.8%
255
20%
0.8%
1,014
80%
3.1%
50 or more
10.8%
150
4°/
0.5°/
3,403
96%
10.3%
Mobile home
2.2%
516
71%
1.6%
211
29%
0.6%
Boat, RV, van,
etc.
38
0.1%
29
76%
0.1%
9
24%
0.0%
TOTAL:
33,094
18,382
56%
14,712
44%
Source: 2000 U.S. Census
*Note: Numbers reflect occupied units only and do not reflect vacant units.
Key Slats
City of Newport Beach Pg. IV -4 2005 -2009 Consolidated Plan ^
Rev. 4111105 �_
Housing Market Analysis
35% of all housing units are rentals with 2 bedrooms or less.
62.2% of all housing units are single- family. Over forty -three percent of all
housing units are single - family detached. This is a strength of the City.
Only fifteen percent of single family housing units (detached) are renter
occupied. This rate is only slightly higher than that of Orange County (13 %),
but less than that of Los Angeles County (21 %) and San Gabriel Valley (20 %)
■ 44% of all housing units are renter occupied compared to Orange County's 39 %.
C. Age of Housing Stock
According to the latest Census figures, the majority of housing stock in Newport
Beach was built between 1950 and 1979. This coincides with one of Newport
Beach's booming economic growth periods. During that period 21,569 units were
built, accounting for 61 percent of the city's current housing stock. Unfortunately,
many of the units were built using low quality materials that did not follow any
quality or design standards. Age has taken its toll on these units, which are
candidates for rehabilitation and in some cases demolition and reconstruction.
Concerning mobile homes, the condition of these homes has become more of an
issue as these units age and decrease in value while the residentially zoned land
where they are located becomes more valuable. When parks close, the older and
more deteriorated homes cannot be transported without renovations that are
unaffordable to the owner.
Table 4 -4
AQe of Housing Stock: Year Unit Built by Tenure
Year Structure Built
Total Units
Owner
Renter
it
%
#
Share of
Category
Share
of
Owner
it
Share of
Category
Share
of
Rental
Built 1999 to March 2000
672
2%
459
68%
2.5%
213 1
32%
1 1.4%
Built 1995 to 1998
1,433
4%
1 798
56%
4.3%
635
44%
4.3%
Built 1990 to 1994
1,355
4%
806
59%
4.4%
549
41%
3.7%
Built 1980 to 1989
4,272
13%
2,450
57%
13.3%
1,822
43%
12.4%
Built 1970 to 1979
8,852
27%
4,425
509f°
24.1%
4,427
50%
30.1%
Built 1960 to 1969
7,931
24%
4,367
55%
23.8%
3,564
45%
24.2%
Built 1950 to 1959
4,786
14%
2,982
62%
16.2%
1,804
38%
12.3%
Built 1940 to 1949
2,209
7%
1,193
54%
6.5%
1,016
46%
6.9%
Built 1939 or earlier
1,584
1 5%
1 902
1 57%
4.9%
682
43%
4.6%
Total:
33,094
18,382
56%
14,712
44%
"Note: Numbers reflect occupied units only and do not reflect vacant units.
City of Newport Beach Pg. IV -5 2005 -2009 Consolidated Plan
Rev. 4111105 S%
Housing h/arket Analysis
Table 4 -5
Age of Housing Stock: Households in Poverty
Housing Units in Po erty by Age of Unit
Year Built
Owner Units I
Renter Units
1999 to 2000
17
31
1995 to 1998
9
17
1990 to 1994
39
70
1980 to 1989
152
105
Subtotal: After 1980
217
223
1970 to 1979
109
298
1960 to 1969
140
228
1950 to 1959
120
147
1940 to 1949
22
40
1939 or earlier
40
66
Subtotal: Before 1980
431
779
Total
648
1,002
Source: 2000 US Census
Households in Poverty at Risk of Lead
Based Paint
1,000
.......... ... ...............
.. .......
.. ... ............__......
779
800
600
..r
i `0 4001
#
217
223;
200
a
N
0
_
bw risk
bw risk
hgh rsk
hgh risk
'
ow nets
renters
ow ners
renters
*Note: Numbers reflect occupied units only and do not reflect vacant units.
Key Stalls
■ 77% of all housing units (25,362) are more than 25 years old. Units older than
25 years typically need significant repair and rehabilitation to the roof, heating
and air conditioning, and other key components.
■ Housing units built before 1980 may have lead based paint hazards, especially if
those units are occupied by households under the poverty line. 1,210 housing
units built before 1980 are occupied by households in poverty. 64 percent of
these units are rentals.
According to the latest Census figures, approximately one - quarter of the housing
stock in Newport Beach that was built between 1960 and 1979 is occupied by
seniors. Once again this coincides with one of Newport Beach's booming economic
growth periods. During that period, 16,783 units were constructed accounting for
51 percent of the city's current housing stock. Based upon 2000 Census data, 24.3
percent of the units constructed during that period are occupied by seniors. This
represents 52 percent of all senior occupied housing. Due to the likelihood that these
older senior occupied units will become candidates for rehabilitation, and in some
cases require demolition and reconstruction, diligent monitoring of these units must
be maintained.
City of Newport Beach Pg. 1V - -6 2005 -2009 Consolidated Plan (�
Rev. 4111105 1
Housine Market Analysis
Table 4 -6
Senior Occupied Housing - Age of Housing Stock
Senior Occupied Housing
owner
renter
total
a
%
a
%
a
%
Built 1999 to March 2000
24
0%
36
0%
60
1 %
Built 1995 to 1998
78
1%
93
1%
171
2%
Built 1990 to 1994
154
2%
61
1 %
215
3%
Built 1980 to 1989
676
9%
223
3%
899
12%
Built 1970 to 1979
1,436
18%
567
7%
2,003
26%
Built 1960 to 1969
1,647
21%
423
5%
2,070
27%
Built 1950 to 1959
1,090
14%
190
2%
1,280
16%
Built 1940 to 1949
507
6%
188
2%
695
9%
Built 1939 or earlier
339
4%
72
1%
411
5%
Totals
5,951
76%
1,853
24%
7,804
100%
*Note: Numbers reflect occupied units only and do not reflect vacant units.
D. Housing Permits
The City tracks the housing activity as it relates to the number of housing permits
issued during a given year. The graph and table provided below shows the recent
permit activity for both single - family and multi - family housing. The graph indicates
that since 1996, the number of building permits each year for single - family
residential has on average remained relatively constant around 200 permits, with the
highest level of permit activity taking place in 1999 with the issuance of over 400
permits. In addition, the multi - family permits went from a non - existent level in 1997
to approximately 931 permits in 1999, followed by a rapid decline to minimal levels
over the last 4 years..
1,400
1,200
1,000
c 800
3
U 600
# 400
200
0
Graph 4 -1
Housing Permits: Recent Permit Activity
Permit Activity 19962004
1996 1997 1998 1999 2000 2001 2002 2003 2004
t Single Family —a Multi Family Total
City of Newport Beach Pg. 1V - -7 2005 -2009 Consolidated Plan
Rev. 4111105 Q p
Housine Market .4nalvsis
Table 4 -7
Housing Permits: Permits by Housing Type
Units
1996
1997
1998
1999
2000
2001
2002
2003
2004
Total
Single
Family
205
242
425
326
161
163
129
140
117
1,908
Multi
Family
566
30
120
931
372
75
39
33
99
2,265
Total
771
272
545
1,257
533
238
168
173
216
4,173
Key Stats
■ 45.7 percent of permits issued in the last nine years have been for single family
housing.
■ Permits for multifamily housing units have decreased significantly in the last
four years. These permits are almost exclusively for developments with five or
more units per structure.
■ The average construction cost for a single family unit in 2004 was $527,626.
■ The average construction cost for a multifamily unit in 2004 was $215,928.
E. Available Land
Inventory of Land Suitable for Residential Development
The City of Newport Beach is not a residential developer and therefore must rely on
private developers or organizations that have the capacity to acquire and manage
affordable housing or "at -risk" housing developments. A list of such organizations is
contained in the Appendix to this Housing Element. The following section of the
Housing Element provides an inventory of land determined suitable for development
of affordable housing.
Undeveloped, Residentially -Zoned Sites
Newport Beach is a nearly built out City, with very few undeveloped sites remaining.
The only undeveloped sites suitable for residential development are discussed below.
Of the three vacant sites, two are located within the Coastal Zone and have Local
Coastal Program Land Use Plan designations consistent with their General Plan
designations. Each site currently has adjacent public facilities and services. The
sites vary in size from 3.5 to 45.2 acres, and have an approximate total capacity of
582 dwelling units. The potential residential development capacity of 582 units may
be exceeded by 25% as provided by the density bonus provision in this Element. A
density bonus does not require a General Plan Amendment. Should this provision be
used, the approximated total residential development capacity of the three sites
would become 727 units. In summary, there is sufficient space and zoning
allowance for meeting the Regional Housing Needs Assessment numbers for the City
of Newport Beach on these three sites.
City of Newport Beach Pg. IV -8 2005 -2009 Consolidated Plan
Rev. 4111105
Table 4 -8 presents a summary assessment of these vacant sites. Following are
descriptions of each site.
Table 4 -8
Undeveloped Residential Sites
Newport Banning Ranch — Approximately 45.2 buildable acres of the Newport
Banning Ranch are located within the City of Newport Beach City boundaries. The
property is located in non - contiguous parcels northerly of Pacific Coast Highway,
southerly of 15th Street, and westerly of Monrovia Avenue. This site can
accommodate 406 multiple - family residential units without the need of a change of
zone or General Plan Amendment. The Newport Banning Ranch is located within
the California Coastal Zone and therefore would require a Coastal Development
Permit issued by the California Coastal Commission.
The ultimate development of Banning Ranch is complicated by the fact that the
property owner is a company formed as a partnership of two independent oil
companies, neither of which are real estate developers. Discussions related to
development usually include a third -parry development company. Past planning
efforts have involved looking at the whole land holding, including several hundred
acres in unincorporated County territory. These planning efforts have required
coordination with a myriad of Federal, State, and local agencies, including the US
Army Corps of Engineers, the Environmental protection Agency, the US Fish and
Wildlife Service, the California Resources Agency (including the Division of Mines
and Geology and the Department of Fish and Game), the California Coastal
Commission, the California Department of Transportation, the County of Orange,
and the Orange County Transportation Authority. Conflicting goals of these various
entities sometimes create challenges to project approvals. However, the smaller
areas of the property within Newport Beach could proceed separate from the large
project area under existing entitlements in order to produce additional housing.
Avocado/MacArthur — The Avocado/MacArthur site occupies 3.5 acres located
northerly of San Miguel, southerly of San Joaquin Hills Road, easterly of Avocado
Avenue, and westerly of MacArthur Boulevard. The site would require a change of
zone to be developed as a multiple - family residential project(s) for senior citizens.
The site could accommodate at least 56 multiple - family residential units. The City
City of Newport Beach Pg. IV-9 2005 -2009 Consolidated Plan
Rev. 4111105
Estimated
=
General Plan
Zoning
Dwelling Unit
Buildable
Density
Designation
Designation
Capacity
Acres
du/acre)
Banning
(Newport)
Ranch
SFA
P -C
406
45.2
8.99
Avocado-
56
MacArthur
APF
P -C
(Senior Only)
3.5
16
Bayview
Landing
150
(PC -39)
RSC
P -C
(Senior Only)
4.5
26.7
Total
3
612
Notes:
APF = Administrative, Professional, Financial, Commercial
SFA = Single Family Attached
P -C = Planned Community
Source: The City of Newport Beach Planning Department
Newport Banning Ranch — Approximately 45.2 buildable acres of the Newport
Banning Ranch are located within the City of Newport Beach City boundaries. The
property is located in non - contiguous parcels northerly of Pacific Coast Highway,
southerly of 15th Street, and westerly of Monrovia Avenue. This site can
accommodate 406 multiple - family residential units without the need of a change of
zone or General Plan Amendment. The Newport Banning Ranch is located within
the California Coastal Zone and therefore would require a Coastal Development
Permit issued by the California Coastal Commission.
The ultimate development of Banning Ranch is complicated by the fact that the
property owner is a company formed as a partnership of two independent oil
companies, neither of which are real estate developers. Discussions related to
development usually include a third -parry development company. Past planning
efforts have involved looking at the whole land holding, including several hundred
acres in unincorporated County territory. These planning efforts have required
coordination with a myriad of Federal, State, and local agencies, including the US
Army Corps of Engineers, the Environmental protection Agency, the US Fish and
Wildlife Service, the California Resources Agency (including the Division of Mines
and Geology and the Department of Fish and Game), the California Coastal
Commission, the California Department of Transportation, the County of Orange,
and the Orange County Transportation Authority. Conflicting goals of these various
entities sometimes create challenges to project approvals. However, the smaller
areas of the property within Newport Beach could proceed separate from the large
project area under existing entitlements in order to produce additional housing.
Avocado/MacArthur — The Avocado/MacArthur site occupies 3.5 acres located
northerly of San Miguel, southerly of San Joaquin Hills Road, easterly of Avocado
Avenue, and westerly of MacArthur Boulevard. The site would require a change of
zone to be developed as a multiple - family residential project(s) for senior citizens.
The site could accommodate at least 56 multiple - family residential units. The City
City of Newport Beach Pg. IV-9 2005 -2009 Consolidated Plan
Rev. 4111105
Housing Market Analysis
will initiate the change of zone on the site within 1 year of certification of the
Housing Element. The Avocado/MacArthur site is not located within the California
Coastal Zone and therefore does not require a Coastal Development Permit.
Bayview Landing — The Bayview Landing site occupies 4.5 acres and is located at
the northwesterly comer of the intersection of Jamboree Road and Back Bay Drive.
This site can accommodate 120 multiple - family residential units (targeted for senior
citizens) without need of a change of zone or a General Plan Amendment. Bayview
Landing is located within the California Coastal Zone and therefore would require a
Coastal Development Permit issued by the California Coastal Commission to be
developed.
Staff is currently meeting with potential developers for the Bayview Landing project.
It was determined that the site, with a City provided density bonus to encourage
affordable housing, will accommodate up to 150 units. The developer is in the
process of designing a site plan to respond to the geotechnical constraints of the site.
Redevelopment and "Inf t]"
With expansion and improvement of the national and state economy and the
circulation systems in Southern California in the late 1950s, the character of
residential development in Newport Beach changed from a vacation home
community to a more equal mixture of permanent residences and vacation homes,
and then subsequently to almost exclusively a community of permanent residences.
During this period of change enough vacant land existed to meet increased demand
for housing. Housing demand had little effect on the City's older areas, other than
transforming tenure pattern from "occasional" to "permanent ". This housing
demand continued well into the 19080s because sufficient vacant land existed to
satisfy housing demand. From the mid- 1990s, development activity in terms of net
dwelling units constructed on vacant sites versus "infill" had occurred at a ratio of
nearly 10 to 1 (2,101 d.u. compared to 234 d.u. respectively). Subsequent to the
decrease in vacant residential acreage and an increase in cost of improved and vacant
land, redevelopment and "infill" activities increased.
The City of Newport Beach has identified areas with potential for redevelopment
and/or intensification of under- utilized residential properties (infill).
The City is beginning a comprehensive update to its General Plan, and it is possible
that this work will result in the identification of areas for more infill or mixed -use
development or redevelopment. t
' City of Newport Beach Housing Element; 2000 -2005
City of Newport Beach Pg. 1V - -10 2005 -2009 Consolidated Plan
Rev. 4111105
Mixed Use Zoning
In addition to traditional residential zoning standards such as R -1 (single - family
detached units) and MFR (multiple - family attached units), Newport Beach also has a
"Residential Overlay Zone" that allows mixed residential and commercial types of
developments. Many commercial properties include an "R" Overlay designation and
may integrate residential uses with commercial uses at a density of one dwelling unit
for each 2,375 square feet of land area. The mixed residential /commercial use will
allow the City additional opportunities to provide housing.
Table 4 -9
"Reulacement" and "Iniill" Housine in Newuort Beach
City of Newport Beach Pg. IV -11 2005 -2009 Consolidated Plan
Rev. 4111105 C�
x
b
o
+
(7
c
c
0."
Date of
o
�
b
Estimation
o
b
b
v
1 -Jan
a
,�
v
>
.�
w
—0
°
7
aBi
� U
o
7
4
U Gy
4
U
U
F
1981
1980
67
67
53
53
120
120
1982
1981
122
189
0
53
122
242
1983
1982
51
240
3
56
54
296
1984
1983
49
289
21
77
70
399
1985
1984
72
361
5
82
77
443
1986
1985
65
426
5
87
70
513
1987
1986
101
527
72
159
173
686
1988
1987
60
587
82
241
142
828
1989
1988
63
650
58
299
121
949
1990
1 1989
75
725
75
374
150
1099
1991
1990
75
800
75
449
150
1249
1992
1991
75
875
75
524
150
1399
1993
1992
75
980
75
599
150
1549
1994
1993
75
1025
75
674
1 150
1699
1995
Information not available
1996
1997
1998
1999
Notes:
The # of d.u. Given for "infill" represents the "NET" increase in units, and does not include "replacement' units.
The # of d.u. given, 1981 to 1989 (est. date), reflect the # submitted to DOT, based upon actual final building
permits, by the Planning Department.
The # of d.u. given, 1990 -1994 (est. date) reflects the average # estimated by the Planning Department based upon
the available land, market study and trend analysis.
Sources: The State Department of Finance and the City of Newport Beach; Newport Beach Housing Element
City of Newport Beach Pg. IV -11 2005 -2009 Consolidated Plan
Rev. 4111105 C�
Housing Market Anal s
F. Housing Demand
This analysis examines several variables on the demand side of the Newport Beach
housing market, including the housing demand by household size and tenure, and in
household type.
Table 4 -10
Housing Supply: Households by Size and Tenure
Households By Size and
Tenure
Total
Owner
Renter
#
%
#
Y. of total
#
% of total
1-person
11,700
1
35%
4,888
15%
6,812
21%
2-person
13,037
39%
7,899
24%
5,138
16%
3-person
4,177
13%
2,364
7%
1,813
5%
4-person
2,794
8%
2,052
6%
742
2%
5-person
1,051
3%
910
3%
141
0%
6-person
265
1%
220
1%
1 45
0%
7 + person
70
0%
49
0%
21
1 0%
otal:
33,094
5,338
18,382
56%
1 14,712
1 44%
Source: 2000 US Census
*Note: Numbers reflect occupied units only and do not reflect vacant units.
Table 4 -11
Housing Demand: Household Type
Households by
Type and Tenure
Total
Households
Owner
Renter
#
%
#
Share
I of HH
Type
Share
of
Owner
Share
of Total
#
Share
of HH
Type
Share
of
Renter
Share
of Total
Family households:
Married-couple family:
14,183
43%
11,125
78%
61%
34%
3,058
22%
21%
9%
Single Parent Male
846
3%
433
51%
2%
1%
413
49%
3%
1%
Single Parent Female
2,073
6%
1,006
49%
5%
3%
1,067
51%
7%
3%
Family SUBTOTAL
17,102
52%
12,564
73%
68%
38%
4,538
27%
31%
14%
Non-family households:
Male Living alone:
5,338
16%
1,922
36%
10%
6%
3,416
84%
23%
10%
Male Not living alone:
2,507
8%
508
20%
3%
2%
1,999
80%
14%
6%
Female Living alone:
6,362
19%
2,966
47%
16%
9%
3,396
53%
23%
10%
Female Not living alone:
1,78_5
5%
422
24%
2%
1%
1,363
76%
9%
4%
Non -Famil SUBTOTAL
15,992
48%
5,818
_
36%
32%
18%
10,174
64%
_
69%
_
31%
TOTAL
33,094
18,382
56%
14712
44°%
*Note: Numbers reflect occupied units only and do not reflect vacant units.
City of Newport Beach Pg. IV -12 2005 -2009 Consolidated Plan
Rev. 4111105 15
Housing Markel 9na11'sis
Key Stats
Less than one percent (207) of all occupied households (33,094) are renters that
have five or more persons in the household. There are only 2,978 rental units
with three or more bedrooms.
• 22 percent of all marred couple families are renters.
• Only 4% of all households are single parent families that rent their housing.
G. Population Growth
After leveling off throughout the late 1980s, the population of Newport Beach
rebounded in the late 1980's and has continued to grow at a modest rate. According
to Census 2000 data, the population stood at 70,022, an increase of 3,379 residents
over the 1990 total. However, the growth in the number of households was
disproportionate to the growth in population. While household tenure grew by 21
percent (6,428 units) between 1990 and 2000, the population grew by only 5 percent
(3,379 residents.)
Table 4 -12
Population Growth: By Race and Ethnicity
Race
1990 Population
2000 Population
Change
2004 Avg
Household
Size
#
%
#
%
#
%
White
63,850
95.8%
64,583
92.3 %
733
1%
2.1
Black
230
0.3%
371
0.5%
141
38%
21
Native American
170
0.3%
179
0.3%
9
5%
21
Asian
1,861
2.7%
2.804
4.0%
943
33%
2.3
Pacific Islander
66
.2%
a3
0.1%
17
20%
2.2
Some other race
466
0.7%
°
1.1 /°
1,546
76%
2.3
Mulfiracial
1,220
1.7%
2.2
Total:
66,643
70,032
3,389
4.8%
Ethnicity
1990 Po ulation
2000 Po
oulatio n
Chan a
it
%
it
%
#
%
Hispanic or Latino
2,648
4%
3.301
501.
614
19%
2.2
Not Hispanic or Latino:
63,995
96%
66,731
95%
2,765
4%
Source: US Census
Key Stats
Overall, the population grew by five percent. This represents an increase of
3,389 residents.
The Asian / Pacific Islander segment accounted for 4.1 percent of the population
in 2000, an increase of 50% compared to 1990.
City of Newport Beach Pg. IV -13 2005 -2009 Consolidated Plan
Rev. 4111105
The overall percentage of Hispanic residents remained relatively steady at 5
percent.
• All segments maintained the same relative household size.
H. Cost of Rental Housing
For the purposes of this analysis, affordable rental housing is defined as units that a
low income family can afford without incurring a housing cost burden and without
being "overcrowded." A unit is considered overcrowded when there is more than one
person per room. Rooms that are considered in this calculation include bedrooms,
living rooms, kitchens, dens, home offices and other finished rooms. This
calculation excludes bathrooms and laundry rooms.
Different sized units will have different thresholds of affordability. The adjustments
in the thresholds will mirror those made for family size in HUD's annual release of
Section 8 Income Limits.
The following table lists the cost of rental housing in Newport Beach, broken down
by bedrooms size.
Table 4 -13
Cost of Rental Housing: Rental Units by Price and Bedroom Size
Rental Units by Price and Bedroom Size 1999 rents
# of Bedrooms
Less
than
$200
$200 to
$299
$300 to
$499
$500 to
$749
$75010
$999
$1,000
or
more
No
cash
rent
Total:
# of units
0
21
42
271
518
394
32
Efficiency
% of size
0%
2%
3%
21%
41%
31%
3%
1,278
of total
0%
0%
0%
2%
4%
3%
0%
9%
# of units
74
89
51
357
1,251
2,489
80
1
Bedroom
% of size
o
2/0
0
2/0
0
1/0
0
8/0
0
28/0
0
57/0
%
2/
4,391
%oftotal
1%
1%
0%
2%
9%
17%
1%
30%
# of units
33
18
49
239
714
4.877
135
2
Bedroom
% of size
o
1/0
0%
0
1/0
0
4/0
0
12/0
0
80%
0
2/0
6,065
%oftotal
0%
0%
0%
2%
5%
33%
1%
41%
# of units
20
0
49
89
131
2.541
148
3+
Bedroom
% of size
o
1/0
°
0%
o
2/0
°
3/0
°
4/0
85%
5%
2.978
%oftotal
0%
0%
0%
1%
1%
17%
1%
20%
Subtotal
127
128
191
956
2,614
10.301
395
14,712
Share of Total
1%
1%
1%
6%
18%
70%
3%
City of Newport Beach Pg. lV - -14 2005 -2009 Consolidated Plan
Rev. 4111105
I.
Table 4 -14
Cost of Rental Housine: Fair Market Rents by Number of Bedrooms
Fair Market Rents by Number of Bedrooms
Efficiency
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
Year
FMR
Increase
FMR
Increase
FMR
Increase
FMR
Increase
FMR
Increase
2001
$774
131
$845
22°%
$1,046
$1.455
$1,619
2002
$812
5%
$887
5%
$1,097
5%
$1.527
5%
$1.699
5%
2003
$855
5%
$934
5%
$1,155
5%
$1,607
5°%
$1,788
5%
2004
$903
6%
$987
6%
$1,220
6°%
$1,698
6%
$1,889
6%
2005
$979
8%
$1,098
11%
$1,317
8%
$1,885
11%
$2,165
15%
Key Stats
39 percent of all rental units have one bedroom or less. 20 percent of units
(2,978) have three bedrooms or more.
Fair market rents have increased at least five percent each year since 2001 for
every size unit. Overall, fair market rents have increased an average of 27
percent from 2001 to 2005.
Cost of Owner- Occupied Housing
During the prior four years, the cost of single family homes in the City of Newport
Beach has increased to the point that the number of families that are able to purchase
a home has decreased substantially. The record lows for interest rates during the
same time period was part of the impetus for the surge in home prices. However,
with interest rates increasing in the past year, home prices have not followed. This
results in a decrease in the number of families being able to purchase a home. The
table below shows the median sales price for single family home in Newport Beach
for the 2004 median sales price.
Similar conditions occur for condominium or attached single family dwellings,
however not at the same level of increase during the same time period.
Table 4 -15
Cost of Owner- Occupied Housing: Single Family Dwelling
Median Home Prices by Zip Code
Zip Code
Number of Sales
Median Price
Annual Increase
92660
409
$1,271000
30%
92661
48
$1.538,000
8%
92663
191
$1310,000
39%
92657
131
$1,750,000
22°%
source: sales data in 2004; Dataquick
City offewport Beach Pg, IV -15 1005 -1009 Consolidated Tian
Rev. 4111105
Housine ASarket Analysis
Table 4 -16
Cost of Owner Occupied Housing: Condominium
Median Condominium Prices b Zip Code
Zip Code
Number of Sales Median Price
I Annual Increase
92660
152 $694,000
25%
92661
13 $750.000
8%
92663
190 $587,000
41%
92657
75 $830,000
29%
source: sales data in 2004; Dataquick
Key Stats
■ The median housing price (half the homes sold for more, half the homes sold for
less) increased by 25 percent from 2003 to 2004. The median sales price in 2004
was $1,467,750.00.
J. Vacancy
This analysis provides a comparison rate for vacancy rates for homeownership and
for rental type properties in the U.S. Metropolitan areas as well as for the three local
counties. The three counties represented are Los Angeles County, Orange County,
and San Bernardino County.
The graph shows a constant vacancy rate for both homeownership and rental
properties in the U.S. Metropolitan Areas. In comparison, the vacancy rates in the
Orange County area for homeownership have maintained around a 1% rate,
declining in 2003 to .5 %. In contrast, rental properties vacancy rate dropped from a
high of 8% in 1993 to a low of 2% in 2000. Since then, the rate has increased to 6%
in 2003.
Graph 4 -2
Vacancy Rates: Homeownership Vacancy Rates
Homeownership Vacancy Rate
4.5 -- - -- ------- ----- -- --._.... ...--
3.5 -. .. --- -- ------ -----_. .. ...._...-- ---
c3 -- --- - --- -- -- -..... . ........ - --- -- -- - - -- ---
m, 2.5
m
V ,
0 . .... ._-
1986 1988 1990 1992 1994 1996 1998 2000 2002 2003
– .–U.S. Metropolitan Areas + Los Angeles {ong Beach
I Orange County San Bemardino Riverside
City of Newport Beach Pg. IV -16 2005 -2009 Consolidated Plan
Rev. 4111105 M
Graph 4 -3
Vacancy Rates: Rental Vacancy Rates
Rental Vacancy Rates
12 r ........... ....._ ... __.._.._.__._.....
10
> V
g+ .__i ------
a4 ----- - - - --- ...- - -- - —' - -m - --
I e �
2 -. __....-T --_ .... ............ .. . ....
0
Ncb
ti ti
t U.S. Metropolitan Areas —a Los Angeles -Long Beach;
Orange County - x San Bernardino Risersidei
Key Stats
The housing vacancy rate for Los Angeles County (0.8) is far below the national
average for U.S. Metro areas (1.7).
Rental vacancy rates for Los Angeles County have been below 5% since 2000.
In 2003, the rate reached its lowest level in twenty years (3.2 %). According to
the Southern California Association of Governments, a vacancy rate below 3%
points to a severe deficit in the supply of housing.
K. Overcrowding
Overcrowding is a living condition defined by the Census as more than one person
living per dwelling room. Current Census data indicates that only 2 percent of
occupied housing units have rooms that are occupied by 1.01 persons or more. This
means that 98 percent of units have rooms that are occupied by 1 person or less.
Throughout the State and County, overcrowding is increasingly becoming a problem.
In the last decade, there has been an increase in the number of married couples,
children, and other family members living together in units to pay the rent or
mortgage. This doubling up is the result of a combination of rising housing costs,
population growth, and an inflow of new immigrants moving into the area.
This phenomenon is adding a new dynamic to the city's housing market. With the
high cost of housing in Newport Beach, there is a potential for overcrowding to
become an issue and problem. The potential for multiple families pooling income in
order to acquiring a housing unit is the most likely scenario.
City of Newport Beach Pg. IV -17 2005 -2009 Consolidated Plan
Rev. 4111105 .1 b 6
While strict code enforcement helps ensure safety, it may also mean increasing the
homeless population, placing lower income households with housing cost burden, or
housing discrimination. However, the underlying problem is a shortage of affordable
housing.
Newport Beach's residential code violation process is complaint - driven. Therefore,
residents and officials attempt to strike a balance between social understanding and
the law to address overcrowding issues. Overcrowding in a home often causes
neighbors to be concerned about their property values. Therefore, many of the city'
resident bring potential overcrowding hazards to the attention Code Enforcement
staff. Therefore, the City will need to continue weighing the benefits and drawbacks
to strict code enforcement. Note that this is often a Health Department regulation,
not a City regulation; not enforceable by Code Enforcement staff.
Table 4 -17
Overcrowding Rates: Overcrowdine By Race /Ethnicity
Overcrowded Housing Units
Race/Ethnicity
Total Households
Overcrowded
#
%
White
30,915
472
2%
Black
165
0
0%
Native American
134
7
5%
Asian
1,024
79
8%
Pacific Islander
63
0
0%
Other Race
237
26
11%
Multiracial
556
31
6%
TOTAL
33,094
615
2%
Hispanic
1,174
86
7%
source: 2000 US Census
'Note: Numbers reflect occupied units only and do not reflect vacant units.
Key Stats
■ A unit is overcrowded when the ratio of occupants to the number of rooms (not
bedrooms) is more than 1. Two percent of all units (615) are considered
overcrowded.
■ A disproportionate number of Hispanic and Other Race households respectively
live in overcrowded units. NOTE: It is presumed that most Other Race
households are Hispanic.
■ The lack of housing has created an informal housing market of illegal units,
usually consisting of garage conversion. These illegal units are not included in
many of the figures presented in this document. This means that the number of
overcrowded units is most likely understated.
City ojNewport Beach Pg. IV -18 2005 -2009 Consolidated Plan
Rev. 4111105 1
r� t
Housing Market Analysis
L. Cost Burdens
Table 4 -18 below lists the percentages of monthly income renters paid for housing
costs in 1999. Given that any household paying more than 30 percent of monthly
income is considered cost burdened, the data from the 2000 shows that:
5,098 (34 %) renter households in Newport Beach experienced a cost burden by
spending 30 percent or more of their income on housing in 1999.
■ Of population that was cost burdened: 6 percent were slightly burdened (30 to
34 percent of income spent on housing) and 12% were moderately burdened (35
to 49 percent of income spent on housing) and 16% were severely cost burdened
(50 percent or more of income spent on housing).
Table /Chart 4 -18
Cost Burdens: As a Percentage of Income
Rent Burdens as a
percent of income
0
Less than 10 percent
1.284
9%
10 to 14 percent
1.837
12%
15 to 19 percent
2,601
18%
20 to 24 percent
2,081
14%
25 to 29 percent
1,263
9%
30 to 34 percent
923
6%
35 to 39 percent
746
5%
40 to 49 percent
1,035
7%
50 ercent or more
2,394
16%
Not com uled
548
4%
Total:
14,712
100%
Cost Burdened Renters
50% or
n1c
30-
50%
other
S
In
Yo
Table 4 -19 below lists the percentages of monthly income homeowners paid for
housing costs in 1999. Given that any household paying more than 30 percent
of monthly income is considered cost burdened, the data from the 2000 shows
that:
■ 5,092 (43 %) of homeowner households in Newport Beach experienced a
cost burden by spending 30 percent or more of their income on housing in
1999.
■ Of population that was cost burdened: 8 percent were slightly burdened (30
to 34 percent of income spent on housing) and 14% were moderately
burdened (35 to 49 percent of income spent on housing) and 21% were
severely cost burdened (50 percent or more of income spent on housing).
City of Newport Beach Pg. IV -19 2005 -2009 Consolidated Plan
Rev. 4111105
I
Table 4 -19
Cost Burdens: For Owners
Owner Cost Burdens as
a percent of income
#
%
Less than 10 Percent
1,124
10°6
10 to 14 percent
1,280
110/6
15 to 19 percent
1,449
12%
20 to 24 percent
1,484
13%
25 to 29 percent
1,303
11%
30 to 34 percent
964
8%
35 to 39 percent
644
5%
40 to 49 percent
1,043
9%
50 percent or more
2,441
21%
Not computed
72
1%
Housing Market .4nalysis
Cost Burdened Owners
50% or
m �l In1 other
ore
30 -50 %
Total: 11,804 100%
*Note: Numbers reflect occupied units only and do not reflect vacant units.
than
30%
HUD is especially concerned about those households paying more than 50
percent of monthly income on housing costs. These households are considered
severely cost burdened and at high risk of homelessness. Any break in the flow
of income or unexpected expenses, such as loss of employment or
hospitalization, would severely jeopardize the household's ability to continue to
meet the housing expense. In 2000, the number of severely cost burdened
families (renter and homeowner reached 4,835.
Key Stats
A household is considered cost burdened when it pays more than thirty percent
of its gross income for housing costs. At this point the unit is considered
unaffordable for the household. Almost one -third of all renter households (34 %)
endure a cost burden. 43 percent of all owner households have a housing cost
burden.
■ A household is considered to have a severe cost burden when more than 50
percent of it gross income goes toward housing costs. Households with severe
cost burdens run a risk of losing their housing if faced with a loss of
employment, sickness, injury, or similar event that reduces income. Almost 1 of
every 6 renters have a severe cost burden.
City of Newport Beach Pg. IV -20 2005 -2009 Consolidated Plan
Rev. 4111105 t
Housing Market Analysis
M. Physical Defects and Substandard Condition
HUD considers a unit that lacks a complete kitchen or bathroom to have a physical
defect and therefore a housing problem. Current Census data indicates that 360 units
(1.1 percent of units) lacked complete plumbing or complete kitchen facilities.
Table 4 -20
Substandard Conditions: Housing Units
Lacking Plumbing or Complete Kitchen
Housing Problem
# of Housing Units
% of Housing Stock
Lacking complete plumbing facilities
125
0.4%
Lacking complete kitchen facilities
235
0.7%
Source: U.S. Census Bureau, 2000
Since substandard housing can cause serious health and safety issues, the definition
of physical defects should not be used as the only definition of substandard housing.
The City considers housing units in compliance with local building codes to be
standard units. Any housing unit that does not meet these requirements is considered
substandard.
Common housing code violations make a unit unsafe and/or unsanitary, including
problems with wiring, plumbing, windows, roofs and exterior, and heating and air
conditioning systems. Most of these units are substandard units that are suitable for
rehabilitation. These units, which do not meet local code standards for occupancy but
are still in use, though dilapidated and poorly maintained, are suitable for essential
repairs to rehabilitate the unit.
However, any property found to be structurally unsound or badly deteriorated is
considered in substandard condition, unsuitable for rehabilitation. These units may
be candidates for reconstruction. These are units that do not meet local code
standards for occupancy and are "uninhabitable" as a working residential unit
because they no longer contain an enclosed, heated residential unit with working
plumbing and electricity.
N. Housing Needs
HUD requires the following Priority Housing Needs Table to be submitted as part of
the Consolidated Plan. The table is organized first by tenancy and then by income.
Renter housing needs are further categorized by family type. The information in each
category of the Priority Housing Needs Table is defined below.
1. Relative Level of Need
A score of low, medium, or high reflects the level of need for this household
type relative to the other categories. A category that receives a "low" may in fact
have a large number of households in need of assistance, but the City
City of Newport Beach Pg. IV -21 2005 -2009 Consolidated Plan
Rev. 4111105 }t4
understands that either another agency is servicing these needs or the need is
greater for other household types.
A medium level of need indicates the City will attempt to satisfy these needs if
funding is available or pursue other funding sources to meet these needs. A low
need level indicates that the City does not consider the household type a priority
or that another organization is sufficiently serving the need.
The need level indicates where the City will spend its housing funds. A category
assigned a high need level is considered a priority and will receive funding
throughout the plan.
Unmet Need
Despite the data available from the Census and other sources, the ever changing
needs, wants, and circumstances of individuals constituting the family unit
makes it impractical to prescribe a formula to determine the exact number of
households in need of assistance. Some may need a rental subsidy while others
need a larger unit. Unmet needs for the purpose of this assessment were
estimated by calculating the number of households that spend more than 30
percent of their gross monthly income on housing expenses. Such households
are termed cost burdened. It is important to note that the City does not intend to
help only households experiencing a cost burden.
2. Goals
The Planning Department has developed the goals that have been incorporated
into this Consolidated Plan. In determining the goals, the historical participation
in housing programs by various household types and estimated level of funding
over the next five years was considered. Special attention was given to family
households as such households are more likely to consist of children further
stretching the limited resources available to low- income families. These
households are also more likely to reside within the assisted dwelling unit during
the period of affordability for these programs.
Moreover, those households between 50 % -80% of FMI are well suited to afford
the monthly owner cost of housing.
City of Newport Beach Pg. IV -22 2005 -2009 Consolidated Plan G.
Rev. 4111105 \'b ,J
V. PUBLIC HOUSING NEEDS
A. Introduction
Public housing and other assisted housing programs are crucial elements of the
City's efforts to address the affordable housing needs of low- and moderate - income
families in Newport Beach. The Orange County Department of Housing and
Community Services, acting as the Orange County Housing Authority (OCHA),
oversee the City's public housing programs.
As a standard performing housing authority, OCHA provides affordable housing for
low - income families, seniors, and disabled persons. HCS administers the Section 8
Housing Choice Voucher Program (Section 8), which provides rental assistance in
all unincorporated area of the County and in 38 participating cities.
B. Public and Assisted Housing Providers
The Planning Department, as part of its mission of collaboration and leveraging, is
committed to working with public and assisted housing providers to address housing
needs. The following section provides a summary of the various agencies that
provide public housing assistance or programs that can be used to create public
housing.
1. Housing Authority of the County of Orange
The Housing Authority of the County of Orange offers one type of housing
assistance programs, the Section 8 Assisted Housing Program. The owner is
required to provide decent, safe, and sanitary housing to tenants at a reasonable
rent. Inspections are performed initially and at least once annually thereafter to
insure that tenants and owners comply with Housing Quality Standards, and
other lease and contract provisions. A summary of the program is provided
below.
Section 8 Assisted Housing Program
The Section 8 Assisted Housing program was established by the 1974 Housing
and Community Development Act and is administered by the Housing Authority
of the County of Orange. This federally - funded program provides rental
assistance in the form of a voucher to very low- income families, senior citizens,
disabled, handicapped, and other individuals for the purpose of securing decent,
affordable housing. The Housing Authority is currently managing 105 Section 8
certificates and vouchers units that are located within Newport Beach.
Under the Housing Choice Voucher Program, subsidy payments are made by the
Housing Authority to property owners on behalf of the family. Assistance is
provided to very low- income families including senior citizens, disabled,
handicapped, and other individuals. The program uses a Payment Standard to
determine the maximum amount of assistance that will be paid on behalf of the
City of Newport Beach V -1 2005 — 2009 Consolidated Plan
Rev.4111105 Ib
family. The family's portion will be a minimum of 30% of their adjusted gross
monthly income up to a maximum of 40% if they choose.
Federally- Assisted Housing
Aside from the programs that the Housing Authority of the County of Orange
currently administers, HUD also provides funding for the construction of low -
and moderate - income rental housing as authorized under Sections 202, 241, 236,
and 811 of the National Affordable Housing Act. Many of these projects also
maintain project -based Section 8 contracts to subsidize rents for low- income
tenants.
HUD Section 236 Loans
Housing projects funded under the HUD Section 236 loan program carry 40-
year low- income use restrictions. After the first 20 years of the loan, owners
participating in this program can choose to prepay the outstanding mortgage
loan and opt out of the low- income use restriction. Until recently, prepayment of
the Section 236 loan had been regulated by the provisions of the Low Income
Housing Preservation and Resident Homeownership Act (LIHPRHA).
Under LIHPHRA, the owner of a prepayment- eligible project can choose to
retain project ownership in exchange for additional federal incentives or sell the
properties under a voluntary sale program. Where the owner chooses to sell, the
residents and non -profit organizations are provided with an exclusive 12 -month
negotiating period. Prepayment and conversion of the housing to non -low
income use can only occur if there is no willing buyer to purchase the project.
In light of the budgetary constraints at the federal level, Congress passed the
Housing Opportunities Extension Act in 1996, which limits the incentives that
can be offered to prepayment - eligible projects in exchange for extending the
low- income use restrictions and allows more flexibility for owners to prepay and
sell the projects than previously provided for under LIHPRHA. For all practical
purposes, HUD now considers all prepayment - eligible projects to be at risk of
converting to market rate housing.
HUD Section 8 Contracts
Projects with Section 8 contracts receive Section 8 rent subsidies that are tied to
the project units. Many projects financed with HUD Section 202, 221, and 236
funds also maintain Section 8 contracts with HUD. The contracts typically carry
an initial term of 15 -years with the option for five -year extensions thereafter.
However, passage of the 1996 Housing Opportunities Extension Act also
jeopardized the continued availability of project -based Section 8 assistance. The
bill allows owners of projects with Section 8 contracts to opt out of the Section 8
program with a six -month notification prior to expiration of the contracts. For
owners who elect to renew the expiring contracts, HUD is giving local HUD
City of Newport Beach V -2 2005 — 2009 Consolidated Plan
Rev.4 111105 r D
Public Housing Needr
offices the authority to renew these contracts on an annual basis pending funding
availability. For these reasons, projects with Section 8 contracts are considered
at risk of losing their affordability.
HUD Section 221 Loans
There are typically two types of Section 221 loans - loans with below- market
rate interest (221(d)(3)) and loans with market rate interest (221(d)(4)). Projects
financed under Section 221(d)(3) have a 40 -year low- income use restriction and
the long -term low- income use of these units is therefore considered fairly
secure. However, the Section 8 contracts on these projects may still expire due
to budgetary constraints at HUD.
Projects financed under the Section 221(d)(4) market rate program alone have
no binding low- income use restrictions. Typically, these projects also receive
project -based Section 8 assistance to maintain the affordability of the units.
These projects may be at risk if Section 8 funds are reduced or no longer
available.
HUD Sections 202/811
These projects are owned by non -profit organizations and low- income use
restrictions are locked -in for the full 40 -year mortgage term. The long -term low -
income use of these projects is fairly secure as they are required to be owned by
non -profit entities. However, the Section 8 contracts on these projects, if any,
may still expire due to budgetary constraints at HUD. The City's policy is to
emphasize preservation of the existing units when they become available by
leveraging funds from existing City programs with HUD resources on a project
by project basis.
C. Units at Risk of Conversion
HUD requires that the City undertake an analysis of federal, state and locally assisted
housing units that may be lost from the City's affordable housing stock. The
expiration of affordability restrictions on government assisted rental units is the
typical reason of this potential loss. Much of the housing at risk of conversion from
affordable housing to market rate housing is predominantly reserved for lower
income households.
Use restrictions, as defined by State law, means any federal, state or local statute,
regulation, ordinance or contract which as a condition of receipt of any housing
assistance, including a rental subsidy, mortgage subsidy, or mortgage insurance, to
an assisted housing development, establishes maximum limitations on tenant income
as a condition of eligibility for occupancy.
Table 5 -1 provides an inventory of the assisted units that are at risk of converting to
market rate housing. As shown, there are a total of 339 assisted, multi - family rental
units in the City, of which 46 are units that are "at -risk" of conversion to market rate.
City ojNewpon Beach V -3 2005 — 2009 Consolidated Plan C/
Rev.4 111105 ;6 b
Public Housing Needs
These units received assistance under a combination of HUD programs, Housing
Revenue Bonds, and the County of Orange Multi - family Mortgage Revenue Bond
Program.
1. Inventory of At -Risk Units
None of the projects with assisted units are at risk of losing their affordability
restrictions during the analysis period. Table 5 -1 above, inventory of assisted
units, shows each project and their potential conversion dates. At the end of this
consolidated plan period (2010), there is a potential of loosing 46 rental units
(Villa Point 1 and Villa Point 11.)
2. Cost of Preservation Versus Replacement
During this period, none of the projects listed in Table 5 -1 will be at risk.
However, two projects with 228 units (46 affordable housing units) will be at-
risk in 2010. The cost of preserving those future at -risk units is estimated to be
less in most cases to the City than replacing the units through new construction.
Replacing the units with rehabilitated units may be cost effective in some
instances.
Preservation of the units as affordable would require financial incentives to the
project owners to extend low - income use restrictions. Other scenarios for
preservation would involve purchase of the affordable units by a non -profit or
public agency, or local subsidies to offset the difference between affordable and
market rents.
Scenarios for preservation will depend on the type of project at -risk. Two
options exist for preservation of units at -risk of losing their Section 8 rental
subsidies: HUD may offer an extension of the Section 8 contract or the City may
offer rental subsidies.
City ofNeuport Beach V -4 2005 — 2009 Consolidated Plan ��
Rev. 4111105
Public Housing Needs
Table 5 -1
Inventory of Assisted Units
Project Name
Project Address
Type of
Units
Affordable
Termin.
Housing
Units
Date
Newport Sea Crest
Newport Sea Crest
Rental
65
65
11/1/2016
Apts.
Apartments
843 151h Street
Newport Seaside
1544 Placentia Avenue
Rental
25
25
8/1/2019
Apts.
Newport Seashore
849 West 15 Street
Rental
15
15
7,'112018
Apts.
Newport Harbor 1
1538 Placentia Avenue
Rental
26
26
5/7/2020
Pacific Heights
881- 887W.15 Street
Rental
16
7
9/12/2018
Apartments
Villa Point 1
Baywood Apartments
Rental
138
28
1/31/2010
28 Street Marina
2809 -11 Newport
Rental
35
4
2/28/2020
Project
Blvd.
Kirkwood (Villa Del
401 Seaward Road
Owner
18
2
4/19/2025
Este)
Villa Sienna
2102 East 15` Street
Owner
15
3
7/212022
Condominiums
Villa Point 11
Newport North
Rental
90
18
11/13/2010
2 Milano Drive @
Jamboree
Newport Harbor 11
1530 Placentia Ave
Rental
14
14
7/16/2023
28 Street Marina
Newport Harbor 11
Rental
4
7/16/2023
Project
Apts.
851 Domingo Drive
851 Domingo Drive
Rental
28
28
Permanent
Apts.
(Comity Project)
Seaview Lutheran
2900 Pacific View
Rental
100
100
Permanent
Plaza
I Dr.(FederalProjJ
3. Resources for Preservation
Funding Sources
The following summarizes financial resources available to the City for
preservation of assisted, multi - family rental housing units.
CDBG — The City is programmed to receive approximately $2,000,000 during
the next five years. This program is intended to enhance and preserve the City's
affordable housing stock. CDBG funds are awarded to the City on a formula
basis for housing activities. Eligible activities include acquisition, rehabilitation,
economic development, and public services.
Section 8 Rental Assistance Program — This program provides rental assistance
payments to owners of private market rate units on behalf of very low- income
tenants.
City of Newport Beach V -5 2005 — 2009 Consolidated Plan
Rev.4 111105 1 tb
Public Housine Needs
Section 202 — Provides grant to non -profit developers for supportive housing for
elderly. Eligible activities include acquisition, rehabilitation, new construction,
and rental assistance.
California Housing Finance Agency (CHFA) Multiple Rental Housing Programs
— This state program provides below market rate financing to builders and
developers of multiple - family and elderly rental housing. Tax exempt bonds
provide below market mortgage money. Eligible activities include new
construction, rehabilitation, and acquisition of properties with 20 -150 units.
Low Income Housing Tax Credit (LIHTC) — This state program provides tax
credits to individuals and corporations that invest in low- income rental housing.
Tax credits are sold to corporations and people with high tax liability and
proceeds are used to create housing. Eligible activities include new
construction, rehabilitation, and acquisition.
California Community Reinvestment Corporation (CCRC) — This private, non-
profit mortgage banking consortium provides long -term debt financing for
affordable multi - family rental housing. Eligible activities include new
construction, rehabilitation, and acquisition.
D. Public Housing Strategy
1. Strategy 1: Preserve and improve the supply of public housing for very low -
and low - income persons.
The preservation and improvement shall include the implementation of the
following:
a. Monitor At -Risk Units
Maintain contact with owners of at -risk units as the use restriction
expiration date approaches. Communicate to the owner the importance of
the units to the supply of affordable housing in Newport Beach as well as its
desire to preserve the units as affordable. Make every effort in using local
incentives that can be offered to property owners to preserve any at -risk
units.
b. Rental Subsidies
If other methods to preserve the at -risk units fail, determine if it can assign
financial resources to provide rental assistance to very low- income tenants
to cover the difference between their current rents and market rents.
c. Support and Assistance to Local Nonprofits
Focus on development and/or support of local nonprofit housing
organizations. If owners of the at -risk housing projects are interested in
selling to nonprofit organizations, work with the project owner(s) and
City of Newport Beach V -6 2005 — 2009 Consolidated Plan
Rev.4 111105
`I�
nonprofit(s) to maximize the possibility of purchase. Use incentives, such
as low -cost financing or payment of some of the costs associated with the
purchase, to facilitate non -profit purchase of the project in order to preserve
its affordability.
d. Inclusionary Zoning Regulations
The enactment of Inclusionary zoning regulations should be considered so
as to enhance the public welfare and assure that further housing
development contributes to the attainment of the housing goals of the City,
by increasing the production of residential units affordable by households of
very-low and low income. The regulations should assure that the limited
remaining developable land in the City's planning area is utilized in a
manner consistent with the City's housing element, policies and needs.
Similar regulations in other jurisdictions require all new residential
development projects shall include 20% of the total number of units as
affordable units.
2. Strategy 2: Continue to support the on -going efforts of the Orange County
Housing Authority to maximize the use of Section 8 subsidies and other
resources.
The City shall proactively pursue opportunities s to increase the number of
federally allocated Section 8 vouchers through the Housing Authority of the
County of Orange.
City of Newport Beach V -7 2005 — 2009 Consolidated Plan
Rev.4 111105
Homeless Needs
VI. HOMELESS NEEDS ASSESSMENT
A. Profile of the Homeless
When a low income household suffers from a personal crisis, the result can be loss of
their housing. Issues most often cited by homeless persons as the cause of
homelessness include substance abuse, loss of employment, health issues and
injuries. Substance abuse is the most commonly reported cause of homelessness.
People often have a misconception of the homeless.
Homelessness can become a significant issue in Newport Beach. To address this
problem, the Continuum of Care (CoC) Community Forum Collaborative works with
the City to lead the effort to address homelessness in Newport Beach.
The CoC Community Forum Collaborative sponsors a semi - annual Homeless
Service Providers Survey to gather demographic information on the homeless who
receive services based on a "point -in -time estimate." The survey defines
homelessness as follows, which is based on standard established by the Department
of Housing and Urban Development (HUD) California Housing Finance Agency:
Any individual who lacks a fixed, regular, and adequate nighttime residence or
has a primary nighttime residence in any facility not designed for permanent
living.
• Families, individuals, and youth residing in emergency shelter or transitional
housing.
• Persons in drug and alcohol treatment who were homeless before they entered
treatment or will be homeless after they leave.
• Family members wait - listed for public housing that are currently residing in
substandard or overcrowded housing.
• Individuals discharged from correctional institutions within 30 days of the
survey date that would meet the definition of being homeless.
B. Homeless Definitions
The definition of homelessness in the survey differs slightly from the definitions for
HUD's homeless programs (the Emergency Shelter Grant, the Supportive Housing
Program, Shelter Plus Care program, and the Section 3 Moderate Rehab for Single
Room Occupancy Units program). All organizations receiving funds under these four
programs must ensure that any homeless persons participating in any activities
funded by these programs meet HUD's homeless definitions.
City of Newport Beach Pg. Vbl 2005 -2009 Consolidated Plan ��
Rev. 4111105
HUD considers persons living in overcrowded housing to be at high risk for
homelessness, but not homeless, as in the definition in the survey. HUD also has a
requirement that people leaving institutions (such as in- patient alcohol and drug
treatment facilities )--where they have stayed more than 30 days —are only
considered to be homeless if they have no family of friends where they can stay,
have no resources to obtain housing, and did not have housing discharge planning.
Please note that HUD does not consider people staying in such institutions for more
than 30 days to be homeless just because they once were in a shelter or living on the
streets. For such people to be considered homeless, the other criteria (support
network, resources, planning) must also be absent and documented.
Finally, HUD does not consider persons living in transitional housing to be homeless
unless they leave within 30 days and previously came from the streets or emergency
shelter. In this case, documentation must exist that the person came from the streets
or emergency shelter. If a person has been in an institution for more than 30 days,
they must meet the "network, resources, planning" test described above.
C. Factors Contributing to Homelessness
Providers suggest that the growth in homeless families is due to the difficulty in
finding affordable housing options in a tightening rental market. The following
issues have been determined to be contributing factors:
• Substance abuse.
• De- institutionalization of persons with mental illness.
• Lack of resources to address the needs of homeless or "near- homeless" persons
with substance abuse or mental illness, including persons with dual diagnoses.
• Unemployment/underemployment.
• Lack of job skills among persons at high risk for homelessness.
• Domestic violence.
• A large gap between the number of affordable housing units and the number of
households which need them.
• Poverty and lack of personal resources.
A Local Homeless Population
The following are quick facts about the homeless population in Orange County:
City of Newport Beach Pg. V1 -2 2005 -2009 Consolidated Plan I
Rev. 4111105 ,, `�
Homeless Needs
• Orange County's population surged past 3 million making it the 2nd most
populous county in California.'
• In March 2004, the State reported Orange County's unemployment rate at 3.5%
- down 0.5% from a year earlier.2
• According to HUD, the 2004 median income for an Orange County family of
four equals $74,200.
• In May 2004, the median home price in the County exceeded $523,000; the
median home price increased $332 /day during the past year and the average
down payment exceeded $120,000, up 42% in the year. 9
• During the past year average rents increased 3.2% to $1,284 per month for an
average two - bedroom unit.a
• Per the 2000 Census, 7% of the County's families live in poverty - the figure
increases to 33% when housing costs are added.5
• Based on the region's 2004 homeless needs assessment, there are 34,999
homeless living in the region at any point in time.
• Between 14,861 and 23,549 county residents experience homelessness at some
point in a given year.
• Only one -fifth of the homeless population was housed in emergency or
transitional housing.
I O.C. Register, May 6, 2004
i O.C. Register March 13. 2004
3 O.C. Register, May 20, 2004
4 O.0 Register April 22, 2004
5 O.C. Register, September 27, 2003
City of Newport Bench Pg. VI -3 1005 -1009 Consolidated Plan
Rev. 4111105
Table 6-1
County of Orange
Homeless County: By Current Housing Arrangement
County Homeless Count;
Current Housing Arrangement_
family /friends 31%
outdoors
10%
28%
shelter
4 to 6 me.
23%
Car
13%
9%
9%
a a I other
3 to 5 yrs.
9%
2003 Homeless Count
4%
Current Living Arrangements
garage I
other
sh
arnly I
rends
outdoors
Table 6-1
County of Orange
Homeless County: By Duration of Homelessness
County H6ffielessi Count:
6uration of hbmelessness
< 1 month
10%
1 to 3 me.
16%
4 to 6 me.
19%
7 to 12 me.
13%
1 to 2 yrs.
21%
3 to 5 yrs.
13%
6 to 10 Yrs.
4%
10+ Yrs.
4%
source: 2003 Homeless Count
Duration of Homelessness
10 - yrs
6 to 10 Yrs.
3 to 5 yrs
1 to 2 yrs.
7 to 12 rno
4 to
I to3m
<1 month
0% 5% 10% 15% 20% 250/6
%of homeless population
City of Newport Beach Pg. VI-4 2005-2009 Consolidated Plan
Rev. 4111105 \kb
E. Homeless Needs
To most efficiently address the needs of the homeless population, HUD has tasked
local governments with developing a Continuum of Care. The Continuum of Care
(CoC) is a planning model designed to provide assistance to homeless persons at
every level of need and to move a client from homelessness to permanent housing.
The Continuum addresses both the lack of housing affordable to the lowest income
levels; it also addresses the underlying causes of homelessness such as substance
abuse, domestic violence, and mental illness.
The City of Newport Beach is part of the County of Orange Homeless Coalition
county -wide Continuum of Care. The Continuum is an umbrella organization that
brings together government agencies and community -based nonprofit agencies.
Homeless needs are presented on a regional level by the levels of service that form
the Continuum. The following are activities addressed by the Continuum:
• Prevention — Activities include income supports, rental assistance and advocacy.
Eviction prevention and crisis intervention help at -risk households maintain
their housing and side -step homelessness.
• Outreach and Assessment — Activities include walking the streets and other
places not fit for human habitation and marketing available services to homeless
persons reluctant to apply for services on their own. Once the client enters the
system, the assessment process identifies a client's needs.
• Emergency Shelter — Offers a safe, secure, temporary place (up to 90 days) for
homeless persons to reside while they prepare to move into more stable housing.
• Transitional Housing — Long term (up to 24 months) housing with supportive
services that address the underlying causes of homelessness. Transitional
housing programs enable people to successfully transition to and maintain
permanent housing.
• Permanent and Permanent Supportive Housing — Permanent housing for most is
affordable, market -rate housing. Permanent supportive housing enables persons
with disabilities to live as independently as possible. Moving previously
homeless persons into permanent housing is the primary objective of the
Continuum.
• Supportive Services — Activities that help persons address the underlying causes
of homelessness and move towards self- sufficiency and independent living.
Services include substance abuse treatment, employment education and job
readiness, budgeting workshops, parenting classes, and childcare. Services may
be part of a housing program or independently.
City ojNewport Beach Pg. VI -5 2005 -2009 Consolidated Plan
Rev. 4111105 \t
Homeless Needs
Outreach Intake Permanent
Assessment Housing
Emergency Transitional I Permanent
Shelter Housing I Supportive
I H Housing
Supportive
Services
For many Orange County residents, the first entry into the Continuum of Care is
through an emergency shelter, where individuals and families obtain emergency
housing and supportive services directed to getting people off the streets and into a
safe environment. Typically, people stay in an emergency shelter for a short period.
Usually during this time, other housing is arranged and the homeless person's
immediate social service and medical needs are addressed.
The next component of the Continuum is transitional housing, designed as short-term
housing for up to 2 years, where persons move into a more stabilized housing
arrangement than an emergency shelter. In transitional housing, persons receive
substantial supportive services that are normally directed toward long -term solutions
(i.e. employment, counseling, medical aftercare and life skills training), rather than
the immediate needs and services addressed in the emergency shelter settings.
The final component of the Continuum of Care is permanent housing, both with and
without supportive services. The goal of the Continuum of Care system is to move
people toward housing alternatives where they are able to reside permanently in safe
and sanitary housing. This housing must be available at prices they can afford and in
locations where they can receive the support services necessary for them to achieve
maximum independence based on their abilities.
The following tables were provided as part of the county's Continuum of Care. The
inventory numbers in the tables below are based off the results of a survey sent to
homeless service providers who participate in the Community Forum Collaborative.
City of Newport Beach Pg. VI -6 2005 -2009 Consolidated Plan 1 +�
Rev. 4111105
Table 6-3
County of Orange
Continuum of Care Gaps Analysis
individuals
Estimated
Current
Unmet Need/
Relative
L
Nced
I inventory
I Gap
Priority
individuals
Persons in Families with Children
Emergency Shelter
2,961
483
2,478
L
Beds /Units
Transitional Shelter
2,961
436
2,525
M
Transitional Shelter
Permanent Supportive Housing,
13,040
6,617
6,423
11
Permanent Supportive Housing
Total
18,962
8,206
10,756
Total
Job Training
4,442
1,589
2,853
1.
Supportive
Case Management
5,922
1,589
4,333
M
Service
Substance Abuse Treatment
2,961
1,372
1,589
H
Slots
Mental Health Care
2,961
1,372
1,589
H
Substance Abuse Treatment
Housing Placement
5,922
1,589
4,333
H
Mental Health Care
Life Skills Training
5,922
1,589
4,333
H
Housing Placement
Chronic Substance Abusers
2,508
958
1,550
H
Sub-
Seriously Mentally III
2,472
78
2,394
H
Populations
Duall -Dia nosed
372
23
349
H
Seriously Mentally Ill
Veterans
1,954
54
1,900
M
Duall)-Diagnosed
Persons with HIV/ AIDS
1 ,339
31
1,308
M
Veterans
Victims of Domestic Violence
592
275
317
M
Persons with HIV/AIDS
Youth (17 -21)
2,711
59
2,652
H
Victims of Domestic Violence
Other - Physical Disabilities
481
1 6
475
M
Persons in Families with Children
Source: Continuum of Care (CoC) Community Forum Collaborative
City of Newport Beach Pg. V1 -7 2005 -2009 Consolidated Plan Q
Rev. 4111105 `VA
Estimated
Need
Current
Inventory
Unmet Need/
Gap
Relative
Priority
Emergency Shelter
6,909
376
6,533
L
Beds /Units
Transitional Shelter
6,909
902
6,007
M
Permanent Supportive Housing
85,196
43,230
41,966
11
Total
99,014
44,870
54,144
Job Training
3,455
1,707
1,749
1,
Supportive
Case Management
13,819
1,707
12,112
M
Service
Child Care
4,8802
922 3
3,936
H
Slots
Substance Abuse Treatment
5,389
1,707
3,682
H
Mental Health Care
3,455
1,707
1,748
H
Housing Placement
13,819
1,707
12,112
H
Life Slaps Training
13,819
1,707
12,112
M
Chronic Substance Abusers
492
0
492
M
Sub-
Seriously Mentally Ill
288
0
288
H
Populations
Duall)-Diagnosed
12
0
12
H
Veterans
415
0
415
L
Persons with HIV/AIDS
281
0
281
M
Victims of Domestic Violence
1,042
327
715
M
Other (Physically Disabled)
691
6
685
H
Source: Continuum of Care (CoC) Community Forum Collaborative
City of Newport Beach Pg. V1 -7 2005 -2009 Consolidated Plan Q
Rev. 4111105 `VA
I. Includes permanent affordable housing available to homeless and non - homeless, and
permanent supportive housing. These numbers are not included in Orange County's count of
the homeless (only the total estimated need for emergency and transitional shelter)
2. 5% of the total estimated need
3. 5% of the total estimated slots
Table 6 -4
County of Orange
Homeless Population
Part 1: Homeless Population
Sheltered
Unsheltered
Total
— --
Emergency
1,169(N)
Transitional
787 (N )
8,544 (E )
1. Homeless Individuals
10,500
2. Homeless Families with Children
76 (E)
384 (E)
8,290 (E)
8,750
2a. Persons in Homeless Families with Children
Total (lines 1 + 2a)
214 N 1
1 1,074 N
23,211 E
24,499
Part 2: Homeless SUbpopulations
Sheltered
Unsheltered
Total
1. Chronically Homeless [2]
958 (A)
6,908 (A)
7,866
2. Severely Mentally III
51 (A)
2,167 (E)
2,218
3. Chronic Substance Abuse
1,018 (A)
5,310 (E)
6,328
4. Veterans
0 (A)
471 (E)
471
5. Persons with HIV /AIDS
33 (A)
1,996 (E)
2.029
6. Victims of Domestic Violence
375 (A)
6.613 (N)
6,988
7. Youth /Emancipated Youth
79 (A)
413 (E)
492
I. In order to ensure consistency all current inventory (i.e., "Shelter") Orange County collects
data on an individual or shelter bed basis. To estimate the number of homeless families with
children, individual/shelter Bed tallies are divided by 2.8 (i.e., the estimated number of
persons per family).
2. Chronically Homeless "Sheltered" figure includes 51 "Sheltered" individuals included in Part
2, Row 2 ("Severely Mentally 111 ").
Based on the figures provided above and local expertise from homeless service
providers, the County has derived the following priorities:
City of Newport Beach Pg. 171 -8 2005 -2009 Consolidated Plan
Rev. 4111105 ) ),6
Priority
I
Priority
2
Priority
3
iCategory A:.
Project Priority
i
• Eligible Permanent
Supportive Housing
Project
• Eligible Shelter
Plus Care Renewal
Applicant
• Eligible Supportive
Housing Program
Renewal Applicant
• Eligible
Transitional
Housing Project
• Eligible Supportive
Services Project
F. Strategy
Table 6 -5
County of Orange
Continuum of Care Priorities
�Ri t
Sub Popu�ti Pliorif
• Homeless who are Individualb
• Homeless in Families
w /Children
• Homeless Dually Diagnosed
• Homeless Who Are Mentally 111
• Homeless Chronically 111
• Homeless Who Are Physically
Disabled
• Homeless Who Couples
• Homeless Who Are Seniors
• Homeless Who Are Veterans
• l lomeless Who Are Victims of
Domestic Violence
• Homeless Who Are
Emancipated Youth
• Homeless Who Are Substance
Homeless Needs
Category C.
Supportive,Services Priorit
• Cris %Ianagemcnt Services
• Job Placement and Retention
Services
• Employment Training
• Follow Up Services For
Those Who Are Transitioning
From Shelters Into
Permanent Supportive
• Substance Abuse
Treatment/Services
• Health Related
Treatment/Services (vision,
medical, dental, alternative,
etc.)
• Life Skills Development
Services
• Mentonng
• Transportation Assistance
• Child Care Assistance
• Counseling /Therapy Services
• Innovative Services or
The City will adopt the following strategies to address homelessness:
• Preserve the supply of emergency and transitional housing.
• Improve services for homeless persons and prevent those at -risk of homelessness
from losing their housing.
• Improve services for women and children who are homeless because of domestic
violence.
In addition, the City's will work with the Continuum of Care (CoC) Community
Forum Collaborative to assist with the regional homeless priorities and strategies.
The following section provides the regional strategies that have been adopted by the
County. The text has been extracted from the Orange County Housing and
Community Services Department website.
A majority of Orange County's chronic homeless population suffers from mental
illness and substance abuse. To meet the needs of the region's chronic homeless,
City of Newport Beach Pg. VI -9 2005 -2009 Consolidated Plan
Rev. 4111105 33
and to support HUD's goal to end chronic homelessness by 2012, Orange County
has developed the following strategy:
I. Collect and analyze data regarding the number of chronic homeless in
Orange County and the resources available to serve the chronic homeless.
Action steps include:
• Gather countywide data on the target population.
• Gather countywide data on services, shelter, affordable, and subsidized
housing for the target population.
• Identify and develop a catalogue of mainstream resources and services.
• Develop and implement a reliable homeless information system to track
clients and program utilization.
• Implement HMIS and 211 throughout the region of Orange County.
• Expand the HMIS program to encompass state, federal, city, and county
programs.
• Solicit private homeless provider agencies that do not receive public funds
to participate in the HMIS process.
• Use HMIS to generate and publish outcomes and homeless success data.
• Identify factors associated with chronic homelessness and use the findings
to develop prevention and intervention protocols.
• Assist public and private homeless providers to determine what segment of
their clients are chronic homeless.
• Employ the Continuum of Care Leadership Cabinet and the Community
Forum in identifying opportunities for collaboration and integration of
prevention and intervention protocols.
• Review and adopt model programs or best practices in addressing the needs
of the chronic homeless.
2. Identify major barriers to accessing mainstream services and develop plans
to remedy the barriers.
• Identify and document the barriers in accessing services.
• Address confidentiality concerns.
City of Newport Beach Pg. VI -10 2005 -2009 Consolidated Plan
Rev. 4111105
Develop and execute memoranda of agreement for interagency
partnerships.
Identify processes and mechanisms to share information with providers and
clients on services to the homeless.
• Increase accessibility to Veterans Affairs programs.
• Provide cross training among mainstream providers and other providers.
• Identify and implement training models for outreach, case management,
and housing placement
• Establish points of contact for mainstream services.
3. Create a public relations campaign to garner support, generate awareness,
and secure partners for success.
Create a public relations campaign to publicize outcomes at regular
intervals.
• Develop and deliver presentations to targeted groups.
4. Improve discharge planning.
Work to collect and analyze discharge plan data and assess consistency
with discharge actions.
Work with applicable entities to effectuate discharge planning throughout
the region of Orange County.
5. Strengthen countywide homeless outreach.
Increase homeless outreach staff so as to increase contact with the chronic
homeless population.
Convene quarterly outreach workers meetings.
6. Develop affordable supportive housing.
• Develop new supportive housing projects.
■ Aggressively pursue funding for additional rent subsidies including, but not
limited to, project -based Section 8, assigned Section 8, Section 8
mainstream vouchers, and Shelter Plus Care funds.
City of Newport Beach Pg. VI -11 2005 -2009 Consolidated Plan
Rev. 4111105 `
I�
• Amend County Consolidated Plan to make chronic homeless a funding
priority. Work with entitlement cities to achieve this goal in the future.
Specific Actions related to the current chronic homeless strategy include:
7. 1. Implementation of AB 2034
Orange County's strategy for ending chronic homelessness by 2012 is primarily
based on the continued implementation of the County's Assembly Bill 2034
plan (AB 2034). The California State Legislature passed AB 2034 with the
intended purpose of reducing chronic homelessness throughout California. To
receive certain mental health state funding, Orange County was required to
develop a comprehensive plan and programs that provide outreach and intensive
services to the chronic homeless. Orange County's plan not only provides the
intensive one -on -one supportive services required by AB 2034, but the plan also
ensures that the chronic homeless are provided permanent supportive housing,
and ultimately attain and sustain independent living.
The County's strategy to end chronic homelessness is based on research and
data collected through the annual homeless needs assessment as well as specific
programs administered by the Mental Health Association and the OC -HCA.
This strategy is also based on proven models being implemented in neighboring
counties. Through this research, it has been determined that the region's
chronic homeless are predominately individuals with mental illness and /or
substance addiction.
During the past year, the County's Homeless Prevention Division continued to
work closely with the County's Health Care Agency and local nonprofit mental
health service providers to develop and expand outreach programs for mentally
ill /substance addicted homeless. These expanded programs linked the chronic
homeless to comprehensive services and permanent supportive housing
opportunities. The California Department of Mental Health AB 2034 Program
has awarded Orange County $1,042,000 in grant funding for FY 04 -05. These
funds will help ensure 100 additional chronic homeless individuals are linked to
services and housing. The County will also expand the permanent supportive
housing base to include more Shelter Plus Care (S +C) and supportive housing
opportunities offered by agencies such as Helping Our Mentally Ill Experience
Success (HOMES), Mercy Housing, and the John Henry Foundation. Once
situated in housing, program participants facing the challenge of maintaining
self - sufficiency will be linked to life stabilization services. Stabilization
services help participants maintain an independent living environment,
successfully integrate into the community, and break the cycle of chronic
homelessness.
City of Newport Beach Pg. VI -12 2005 -2009 Consolidated Plan
Rev. 4111105 to
8. 2. Expand Chronic Homeless Populations Served by AB 2034
The County's strategy to end chronic homelessness also includes a component
for the aggressive pursuit of additional public /private resources and services in
order to expand the AB 2034 model. Initially AB 2034 programs placed an
emphasis on assisting the mentally ill and substance addicted homeless;
however, the County's AB 2034 program can be expanded to serve other
chronic homeless sub - populations such as families with children. Homeless
families with children are especially susceptible to prolonged periods of
homelessness due to the lack of sufficient affordable housing in the county.
Many families that once experienced isolated episodes of homelessness have
fallen into a cycle of crisis and recidivism.
9. 3. Expand Services and Shelter for Chronic Homeless Veterans
In early 2004, the United Veterans Organization (UVO) funded a full time
outreach and case management position. This position is solely dedicated to
serving homeless Veterans. To facilitate appropriate linkage to mainstream
resources from the Department of Veterans Affairs, the position is housed in the
County Veterans Services Office (VSO). The VSO is located in the same
agency as the Homeless Prevention Division. Survey data confirms that many
chronic homeless are also Veterans. To address this issue, the UVO, VSO, and
County Homeless Prevention Division worked on a plan to expand the safety
net for chronic homeless Veterans. Related to these actions, a grant application
to create additional services /shelter specifically for homeless Veterans has been
proposed.
10. 4. Community Education
Orange County's strategy to end chronic homelessness also includes a
community education component. As part of the community education and
outreach process, community residents and public sector personnel receive
information regarding resources available to assist individuals that are chronic
homeless. For example, law enforcement agencies regularly receive
information regarding AB 2034 program resources. Public safety personnel are
able to utilize these resources to link homeless individuals (with mental illness
and/or substance addiction) with appropriate services rather than taking these
individuals into custody. Similarly, by educating the community at -large about
the chronic homeless and the resources available to assist them, community
members can now call an AB 2034 outreach service provider rather than law
enforcement when confronted by a homeless individual who is visibly impaired
by mental illness or substance abuse.
City of Newport Beach Pg. V/ -13 2005 -2009 Consolidated Plan
Rev. 4111105
it)
11. 5. Regional Discharge Plan
While a more detailed description of the region's Discharge Plan will be
outlined later, it is important to highlight the importance of this plan in the
strategy to end chronic homelessness. The County Homeless Prevention
Division continued to foster the partnership between Orange County Sheriffs
Department (OCSD), OC -HCA, and the shelter provider community, to
continue implementation of the regional discharge plan. This plan ensures that
inmates and patients receive adequate information and referral services prior to
being released from jail or county approved medical centers. OC -HCA staff
also works closely with OCSD to identify and treat inmates who suffer from
mental illness and substance abuse addiction prior to their release. A critical
component of this partnership program is the preparation of individual
discharge and case management plans. Individual plans are developed so that
inmates/patients suffering from these disorders are connected to supportive
housing and /or supportive services prior to discharge. This proactive program
has reduced recidivism and chronic homelessness.
12. 6. Future Goals
The following table lists Orange County's specific future- oriented goals and
action steps to be undertaken over the next 18 months to carry out its strategy to
end chronic homelessness. This table lists the entity that has the lead
responsibility for carrying out respective steps and provides specific target dates
for completion.6
6 Orange County Housing and Community Services Department website
City of Newport Beach Pg. VI -14 1005 -7009 Consolidated Plan
Rev. 4111105 1 a b
1
Table 6 -6
County of Orange
Continuum of Care Priorities
Coal: End Chronic
Action Steps
Responsible
Homelessness
Person /Or anization
Coal 1: Fully implement the
' Quarterly meetings with OC- FICA,
comprehensive regional discharge
OCSD, &partner nonprofits to review
plan involving jail inmates &
program accomplishments and issues in
. OC -HCS Homeless
hospital or medical center patients
order to expand and sustain the regional
prevention Division
as a means to prevent chronic
discharge plan.
homelessness.
• Quarterly community education
Coal 2: Educate public & private
workshops with community service
• OC Partnership
entities on the needs of the chronic
groups regarding elimination of chronic
homeless and the programs/ services
homelessness in Orange County.
available.
' Quarterly workshops with, churches, city
• OC -HCS Homeless
councils, law enforcement, & other
Prevention Division
stakeholders.
Coal 3: Obtain additional resources
• Apply for additional program funding
. OC -HCA with support
to expand the AB 2034 plan to
from federal agencies
from OC -HCS
further prevent chronic
' Apply for additional program funding
Homeless Prevention
homelessness.
from state, local, private foundations &
Division
other resources
Coal 4: Transition 100 chronic
homeless individuals off Orange
• Continue to implement AB 2034
County's streets & into supportive
Strategic Plan & related programs
• OC -HCA
permanent housing.
• Identify additional program clients
' Superior Court with
Goal 5: Assist 250 chronic
• Seek additional funds to expand and
support from DA,
homeless via the Homeless Court
Public Defender, OC-
Program
sustain program
HCS, OC -HCA &
• Expand program to entire region
homeless providas
• OC -HCS with support
• Develop MOUs & protocols for referrals,
from OC -HCA, OC-
Coal 6: Remove barriers to
service provision and a streamline
SSA, Probation,
accessing mainstream programs
mainstream application form
OCSD, Cal Optima &
Social Security
Administration
• Negotiate with U.S. Navy, City of
Newport Beach and private developers to
Coal 7: Sustain planning efforts for
identify a site
OC -HCA & OCSD
the El Toro Connection Center
• Identify resources to construct & staff
facility
• Educate & encourage providers to
replicate the Mercy House Transitional
Housing for Vets Model
' OC -HCS Veterans
Coal shelter for Chronic
• APPIY for Per Diem Reimbursement
Services Office &
le s Veterans
Homeless Veterans by 75 beds
funds from Dept of Veterans Affairs
United Veterans
• Improve count of homeless Veterans
Organization
through community education & HMIS
City gfNewport Beach Pg. VI -15 2005 -2009 Consolidated Plan
Rev. 4111105 , ��
Table 6-7
County of Orange
Continuum of Care Strategies
Goal: Other HowA ��
Action Steps
�1'erson/Orgeoizatloo.
Responsible
Complete development of 200 housing units
Goal 1: Expand the region's supply
affordable to extremely low- income families
of affordable housing by developing
• Initiate development of 200 affordable
OC-HCS
200 permanent affordable housing
housing units for very low- income
units.
households in cities & unincorporated
areas throughout Orange County
. Approve development of 17- unit/80 -bed
• OC Rescue Mission,
transitional shelter facility for homeless
HomeAid &City of
Goal 2: Add 332 beds to the
families in Buena Park
Buena Park
region's supply of transitional
• Develop 3 new transitional shelters with
• HomeAid Orange
housing.
252 beds in the cities of Orange &
County, OC Rescue
Tustin
Mission, Casa Teresa
& Mary's Shelter
Goal 3: Add 75 beds to the region's
• Develop one large or two to three small
supply of emergency shelter.
emergency shelter facilities
. St. Vincent de Paul
. Continue monthly meetings with the US
Nary regarding commit of properties to
Goal 4: Secure 166 base housing
OC nonprofit providers
units on the former El Toro Marine
• Continue communication with the City
• OC Partnership with
Base to be used/renovated as
of Newport Beach, the local city
support of OC -HCS &
emergency, transitional and
government to whom the property has
El Toro Homeless
permanent supportive housing for
been annexed
Service Providers
the homeless.
. Ensure local developers incorporate the
Collaborative
deeded properties into a master plan that
will welcome housing & supportive
services
. Conduct monthly meetings with public
& private stakeholders involved in motel
Goal 5: Finalize plans to address the
Issue
• OC Partnership, OC-
growing number of homeless
• Develop & administer a survey to obtain
HCS & the Children
families & individuals cycling in &
demographic data related to homeless
& Families
out of Anaheim motels.
living in Anaheim motels
Commission of
. Formulate findings & recommendations
Orange County
to the Children & Families Commission
& other fenders in Oran a County
City of Newport Beach Pg. V1-16 2005 -2009 Consolidated Plan
Rev. 4111105 1
Non- Housi?w Community Development Needs Assessment
VI1. NON - HOUSING COMMUNITY DEVELOPMENT NEEDS ASSESSMENT
A. Introduction
Consolidated Plan regulations require an assessment of "non- housing community
development needs.' The City of Newport Beach is committed to developing effective
investment strategies to meet these needs using the City's Community Development Block
Grant (CDBG). This section is presented in the following order:
• The City's methodology for determining priorities amongst the several
competing community needs.
• The three funding priority levels and their meaning.
• An overview of the CDBG program and eligible uses of funds.
• The City's community development needs, including infrastructure
improvements, facilities, public services, accessibility improvements, and
economic development needs.
• At the end of the section is HUD's Consolidated Plan Table 2B. This table
summarizes all of the non - housing community needs and the City's five -year
funding strategy for the City's Consolidated Plan funds.
B. Methodology
The City used several data sources to assess the non - housing community needs. 2000 U.S.
Census data was the primary source for demographic data, while Orange County and State
of California provided data on the local economic conditions. In addition, the City
consulted local service providers. The first -hand knowledge of local community
development professionals, including City staff and non -profit advocacy groups, made a
significant contribution to the assessment. And finally, the City conducted a Community
Needs Survey to gather the opinion of the public.
C. Funding Priority Levels
Consolidated Plan funds are limited and are not sufficient to meet all of a community's
needs. Therefore, it is necessary that the City assign relative priorities to each need and use
its limited resources to address the highest priorities. The City has assigned one of the
following Priority levels to each possible use of funds:
High Priority: A high priority indicates the City will use Consolidated Plan
funds to implement programs and projects to address this need.
Medium Priority: A medium priority indicates the City acknowledges a need
exists but that the need level is relatively low compared to other needs and / or
the need is being addressed by another program or funding source. The City will
partner with other agencies and organizations to apply for additional funding.
City of Newport Beach VII -1 2005 - 2009 Consolidated Plan (;
Rev. 4111105 1 a -1
Non- Housine Community Deyelopntent Needs Assessment
■ Low Priority: A low priority indicates that the City does not perceive a need for
this type of service or program.
D. The CDBG Program
This section provides a brief overview of the CDBG Program as it is the primary funding
source utilized by the City for non - housing community and economic development
activities related to this Consolidated Plan. The CDBG statute calls for program funds to be
used to develop viable communities through the provision of decent housing, a suitable
living environment, and expanded economic opportunities primarily for persons of low and
moderate income. To achieve these ends, the statute requires that activities funded through
CDBG meet one of three national objectives:
• Benefiting low- and moderate - income (LM) persons
• Preventing or eliminating slums or blight
• Meeting urgent needs
1. Activities Benefiting Low - And Moderate - Income Persons
LMA - Area Benefit Activities: An activity with benefits available to all
residents in a particular area where at least 51 percent of the residents are low- and
moderate- income persons. Typical area benefits include:
• Street Improvements
• Water and Sewer Lines
• Neighborhood Facilities
• Fagade Improvements in Neighborhood Commercial Districts
LMC - Limited Clientele Activities: An activity that provides benefits to a
specific group of persons of which at least 51 percent of the beneficiaries are low -
and moderate - income persons.
Presumed Group: An activity that benefits clientele who are generally presumed
to be principally low- and moderate - income persons. (Presumed groups: abused
children, battered spouses, elderly persons, adults who are severely disabled,
homeless persons, illiterate adults, persons with AIDS, and migrant farm workers)
Requiring Income Documentation: An activity requiring information on family
size and income to document that at least 51 percent oft he clientele are persons whose
income does not exceed the low- and moderate - income limit.
Programs Limiting Services to Low- and Moderate - Income: An activity that has
income eligibility requirements which limit the activity exclusively to low- and
moderate- income persons, or is of such a nature and location to limit services to
primarily low- and moderate - income persons.
City of Newport Beach VII -2 2005 — 2009 Consolidated Plan
Rev. 4111105 1 `�6
Non - Housing Conpnnnity Development Needs Assessment
Activities that would be expected to qualify under the LM limited clientele
presumed groups subcategory include:
• Construction of a senior center
• Public services for the homeless
• Assistance to LM persons developing a micro - enterprise
• Meals on Wheels for the elderly
• Construction of job training facilities for severely disabled adults
LMJ - Job Creation or retention: An activity that directly creates or retains
permanent, full -time equivalent jobs. Activities that could be expected to create or
retain jobs include:
Construction by the grantee of a business incubator which is designed to
offer both space and assistance to new, small businesses to help them survive and
perhaps even expand.
• Loans to help finance the expansion of a plant or factory.
Financial assistance to a business which has publicly announced its
intention to close, and to help it update its machinery and equipment
instead.
Improvement of public infrastructure as needed by a company to comply
with environmental laws to avoid closure.
2. Activities Preventing or Eliminating Slums or Blight
The second of the CDBG national objectives has its roots in the Urban Renewal
program, one of the major Federal programs that were terminated and replaced with
the CDBG program upon its formation in 1974. Although the vast majority of
persons who resided in the areas that qualified for assistance under the Urban
Renewal program were LM, the principal focus of that program lay in eliminating
major slums and other areas of blight within the community and preventing the
return of blight to treated areas.
Because of some concerns that the CDBG program might not a] low the continuance
of the type of projects that were funded under Urban Renewal, provision was made
for this through the inclusion of the national objective concerning slums and blight.
The subcategories under this national objective are:
SBA — Slum or Blighted Area Activities: An activity serving to improve an
area in which documented conditions of slums or blight exist.
SBS - Slum or Blight on Spot Basis Activities: An activity outside of a slum
and blighted area designed to address imminent safety hazards.
City of Newport Beach VII -3 2005 — 2009 Consolidated Plan
Rev. 4111105
`V
Non - Housing Community Development Needs Assessment
3. Activities Designed To Meet an Urgent Need
To comply with the national objective of meeting community development needs
having a particular urgency, an activity must be designed to alleviate existing
conditions that the grantee certifies:
• Pose a serious and immediate threat to the health or welfare of the
community.
• Are of recent origin or recently became urgent.
• The grantee is unable to finance the activity on its own, and
• Other resources of funding are not available to carry out the activity.
Example: a major catastrophe such as a flood or earthquake that threatens the
community's residents with the spread of serious disease. The community's other
resources may well be depleted and other Federal programs may not be sufficient to
cover all the costs associated with this public health threat.
E. Community Development Priority Needs
This assessment examines the level of need for each non - housing community use of funds
eligible under the CDBG regulations. The needs are grouped into the following 'categories:
Community Improvements; Community Facilities; Community Services; Accessibility
Needs; and Economic Development. Each need category is defined below.
Community Infrastructure Improvements
Public improvements that support existing or future community development that benefits
an entire area or site (e.g., roads, curbs, gutters, sewer systems, street lighting, bridges).
Community Facilities
Construction or rehabilitation of structures or facilities that house a public use, except for
the general conduct of government.
Community Services
Activities that provide services to individuals and/or households (e.g., job training, child
care, graffiti removal).
Accessibility Needs
Non - housing activities or improvements that provide accessibility improvements for
persons who are physically disabled. All improvements completed must meet the
Americans with Disabilities Act (ADA) requirements.
Economic Development
Activities or improvements designed to support, increase, or stabilize business
development, as well as to create or retain jobs, or expand the provision of goods and
services (e.g., small business incubators, commercial and industrial development, loans to
for -profit businesses, infrastructure improvements specific to expanding or creating
business development).
City of Newport Beach VII -4 2005 — 2009 Consolidated Plan
Rev. 4111105 �'�
Non- llousine Comm1117IN Development Needs Assessment
F. Community Infrastructure Improvements
The City has on -going needs for community infrastructure improvements and follows a
Capital Improvement Plan (CIP) to meet those needs. Projects in the CIP include
construction and rehabilitation of arterial highways, local streets, storm drains, bay and
beach improvements, parks and buildings, water and wastewater improvements, and some
planning programs. The FY 2004 -05 CIP totals $36.4 million and consists of over 100
projects. These projects are typically funded with non - Consolidated Plan funds. The City
has assigned a medium priority for Consolidated Plan funds to this need category. The City
will consider funding for infrastructure projects in residential areas with concentrations of
low- and moderate - income households.
In the last Consolidated Plan, the City used CDBG funds to secure a $2.4 million Section
108 loan to partially finance the Balboa Village infrastructure improvements. This loan will
be repaid over 20 years in $215,000 installments. The City plans to use CDBG funds to
repay this 1 oan.
Table 7 -1 indicates which agencies provide services to eligible census tracts located with
the City.
Table 7 -1
Infrastructure Providers In New ort Beach
Responsible Agency I Infrastructure /Services Provided
City of Newport Beach Lngineering Department
City of Newport Beach Utilities Department
City of Newport Beach Solid Waste Department
City of Newport Beach Utilities Department
Source: City of Newport Beach
Streets. sidewalks, curbs and gutters — —
Local Sewage collection
Collection of single - family residential refuse and
recyclable materials
Collection of all other refuse and recyclable materials
Domestic water service
In the Needs Assessment Survey, respondents did not indicate a need for improvements to
this type of community infrastructure.
G. Community Facilities
I. Health Care Facilities
There are several existing health care programs operating within the City and
throughout Orange County. Below is a short summary of the major programs that
serve lower income clientele and major hospitals in proximity to the City.
Ha
County Community Nursing Program
Public Health Nursing provides nursing services in the home and community with
a focus on communicable disease investigation, matemal health (high -risk and
City of Newport Beach VII -5 2005 — 2009 Consolidated Plan
Rev. 4111105 1
Non - Housing Community Development Needs Assessmen !
teen pregnancies), infant and child health (high -risk infants and children),
adolescent and adult health.
b. County Medical Services for Indigents (MSI) Program
This program pays medical costs to hospitals, clinics, physicians, ambulance
companies, home health providers, and other providers that serve eligible indigent
patients. The program covers necessary medical care for Orange County residents
ages 21 through 64 years who have no other financial resources for medical care.
The scope of the Medical Services for Indigents program is limited to services
that protect life, prevent significant disability or prevent serious deterioration of
health. Eligibility is based on Medi -Cal criteria, with an income cap at 200% of
the Federal Poverty Level.
c. Orange County Rescue Mission
This organization operates a mobile health clinic that outreaches to the homeless
living on the streets to the address health care needs in the poorest of
communities. The program provides free medical care to those with minimal or
no insurance coverage. Services include clinical evaluation, referral for diagnostic
testing, and prescription treatment services. The Clinic provides over 4,400
patient visits yearly throughout Orange County.
d. Hoag Hospital, Newport Beach
Hoag Memorial Hospital Presbyterian is a 409 -bed acute care, not - for -profit
hospital that provides advanced medical programs in many specialties. The
Hospital's quality is endorsed by several healthcare industry organizations and
continually recognized on local, regional and national levels. For eight
consecutive years, Hoag has received the Comsumer Choice Award from National
Research Corporation (NRC) and is ranked among the top five percent of
hospitals in the nation.
2. Fire Station and Equipment
The Newport Beach Fire Department is responsible for protecting city residents and
property from fire, medical, and environmental emergencies. The Department's
eight stations, 147 full -time employees, and over 170 seasonal employees provide
24 -hour protection and response to the City's residents and visitors. The City has
plans to acquire land and construct a new station for the Santa Ana Heights area to
replace the temporary facility located on County property. County Redevelopment
funds will be used.
The City has assigned a low priority to this need category, as current services are
funded through other funds and this type of activity would not be eligible in the City
due to a lack of low income areas.
City ofNexport Beach VII -6 2005 — 2009 Consolidated Plan
Rev. 4111105 t -34
Non - Housing Community Development Needs Assessment
3. Youth Centers
According to the 2000 Census, seventeen percent of the City's population was
under age 19, representing almost 12,000 persons. The City operates a dedicated
facility for youth. The Community Youth Center is located at scenic Grant Howald
Park in the heart of Corona del Mar. The facility includes athletic fields, basketball
& tennis courts along with a game room, meeting room & dance floor. In addition,
youth activities are held at other general use facilities and parks. The City considers
the development of additional facilities dedicated to youth to be a low priority
relative to other community needs.
4. Libraries
The City is currently served by the Central Library and three branches, Mariners,
Corona del Mar and Balboa. The system offers a diverse range of informational
resources, special programs, and public services such as the Literacy Program. The
system was recently rated in the top 4% of American Public Libraries in the same
population category. State Library Grant Funds and local contributions are being
used to construct a new branch library, the Donna and John Crean Mariners Branch
Library, as a joint use project with Mariners Elementary School.
Funding for the library is a combination of general funds, support from the Friends
of the Library, the Newport Beach Public Library Foundation, as well as donations
and in -kind services from businesses. The City has assigned this need category a
low priority for Consolidated Plan funds.
5. Child Care Centers
There are approximately 2,800 children under the age of five in the City, according
to the latest U.S. Census. This accounts for four percent of the total population.
Adequate and affordable child care is a key component in helping working families
succeed. During the school year, Newport Beach Recreation Services offers after -
school programs for children in grades Ist through 6th at West Newport
Community Center, Mariner's Park and the Community Youth Center. These
programs, however, have limited enrollments of fifty children per site. There are
fourteen private child care providers in the City that are licensed by the State.
Overall, these centers provide 960 child care slots. The key subsidized child care
services are described below.
a. Head Start Preschools: These preschools provide child development
services to preschool children ages 3 -5 and families. For the children, the
schools provide hot meals, along with health, social, and psychological
services. Referral services for housing and job information are provided for
the parents.
b. Avenues for Independence (GAIN) Program: This program subsidizes child
care for people who meet the low income eligibility and who are either
working or going to school. The intent of this program is to help parents
City of Newport Beach VII -7 2005 — 2009 Consolidated Plan
Rev. 4111105 J
13
Non- Housin,.i,, ConnnunitvDenelovment Needs Assessment
achieve greater financial independence by maintaining employment or
acquiring the job skills to secure employment.
Table 7 -2
Child Care Providers in Newport each
Child Care Provider
Capacity
Childtime Childrens Centcr, Inc.
40
Christ Church By The Sea Children's Center
44
Community Preschool, The
52
Eastbluff Preschool CDC
23
Kathryn C. Fishback Child Care Center
45
Newport Coast Child Development Preschool
145
Newport Harbor Lutheran Church
43
Newport Heights, CDC
19
Newport Montessori
107
Our Lady Queen Of Angels School
24
St. Andrew's Presbyterian Church Pre - School
135
St. Matthews Montessori School
48
Temple Bat Yahm
100
Tutor Time Child Care Learning Ctr.
135
TOTAL
960
6. Senior Centers
The City has assigned this category a medium priority because the existing facilities
currently meet the need, but at the same time the City recognizes the growing needs
of seniors. Newport Beach's senior population as of the 2000 census surpassed
12,000 residents and accounts for almost eighteen percent of the population. As the
senior population grows and the average lifespan increases, the need for additional
capacity and upgrades to the existing facilities will grow. The City operates the
Oasis Senior Center. This facility hosts numerous. senior activities, such as
educational classes, exercise programs, art education, health promotion,
transportation, counseling, and support functions.
Park and Recreational Facilities
Newport Beach has 47 parks that provide residents with 258 acres of open space for
recreational activities. There are over thirty playgrounds throughout the City for
children ages 2 -12. The City's parkland standard is five acres per 1,000 residents.
Based on the approximate population of slightly over 70,000, the City has 92 fewer
acres of active parkland than this standard would require. This deficit is offset by
the recreational opportunities provided by 237 acres of beach, 68 acres of school
facilities, and the recreational resources on the Back Bay. A recent addition is the
Bonita Canyon Sports Park, a 40 -acre space that provides athletic fields, courts,
City of Newport Beach W - -8 2005 -2009 Consolidated Plan `-
Rev. 4111105 1 3112
Non- Housine Community Development Needs Assessment
walking trails and playground areas. The City has assigned this category a low
priority need.
8. Community Centers
The City currently operates five community centers: Balboa, West Newport, Bonita
Creek, Carroll Beek, and the Vincent Jorgensen Community Center. These facilities
offer space for a variety of programs for all age groups and genders and available
for public use. Two new community center projects are slated for development. One
will be located in the Santa Ana Heights neighborhood and the second will be built
in Newport Coast. The City has assigned this category a low priority need.
9. Historic Preservation
An ad hoc Historic Preservation Advisory Committee identified over 60 historic
structures and compiled the City's Historic Resource Inventory in the early 1990's.
Some residents consider the inventory outdated and limited in scope, and want a
new inventory to be compiled. Protection of the City's historic villages and their
unique character, such as Corona del Mar, Balboa Island, Mariner's Mile, and Lido
Marina should be addressed. The City may address these issues by limiting the
permitted uses, establishing design guidelines, and establishing a design review
process. The City has assigned a medium priority to this need category.
H. Community Services
The City is placing a high priority on public services that can contribute to the regional
homeless Continuum of Care. Specifically, these services are: homeless services,
counseling, substance abuse services, domestic violence services, and employment related
supportive services such as job training. The City is also placing a high priority on senior
services.
1. Homeless Services
The threat of homelessness continues to rise as local property values and rents
continue to increase at high rates. The City partners with local non -profit agencies
and the regional Continuum of Care to provide homeless services to the area. The
City considers the provision of homeless services a high priority and will support
programs that contribute to the regional Continuum of Care's framework of service.
Please refer to Homeless Needs section for additional information on the existing
homeless facilities and services and the unmet need in the area.
2. Substance Abuse Services
The County is the primary provider of substance abuse services. The County
provides a range of outpatient and residential treatment programs, including crisis
intervention, assessment and evaluation, and counseling. Specialized programs
provide services for pregnant and parenting women, persons who require
methadone maintenance and detoxification, adolescents, persons who have been
City of Newport Beach VII -9 2005 — 2009 Consolidated Plan I
Rev. 4 1II 105 13
Non - Housing Community Development Needs Assessmein
dually diagnosed with substance abuse and mental health problems, and individuals
referred by the Orange County Drug Court.
The City is served by an outpatient clinic at in Aliso Viejo. In addition, there are 21
residential treatment facilities throughout the county. The City has assigned a high
priority to this need category based on its role as a key supportive service in the
Continuum of Care homeless plan.
3. Senior Services
The City's Senior Services Division is responsible for the operation of the OASIS
Senior Center as well as numerous senior activities. Programs include educational
classes, exercise programs, art education, health promotion, transportation,
counseling, and support functions for seniors. A staff of 7 professionals coordinates
OASIS Senior Center programs with the intent to enrich the lives of older adults
and their family members. OASIS enjoys the assistance of over 100 volunteers who
dedicate an average 1200 hours of service a month.
The City places a high priority on supportive senior services that help maintain
independence. Services such as Meals on Wheels allow seniors to remain in their
homes when they may otherwise be institutionalized at a high cost to both the senior
and the public.
4. Health Services
As health care costs rise and an increasing number of residents go without health
insurance, this category is an increasing concern. The City has assigned a high
priority to health services and will look to partner with local non -profit agencies and
local health care providers to meet this need.
This category also includes mental health services. The County currently provides a
range of services including emergency crisis intervention, acute and long -tern
hospitalization, short-tern outpatient services, and longer -term rehabilitative and
recovery outpatient mental health services. Outpatient programs emphasize
individual needs and strengths while developing rehabilitation and recovery goals
chosen by the consumer. Supportive services are provided to those able to live
independently as well as to those in need of shelter and residential rehabilitation
programs.
5. Employment/ Job Training
The two primary agencies responsible for employment and job training in the area
are at the county level. The Orange County Workforce Investment Board (OCWIB)
administers state and federal funds available through the Workforce Investment Act
(WIA) and coordinates a network of One -Stop Career Centers that offer a wealth of
training, information and assistance for businesses and job seekers.
The Orange County Social Services Agency administers the local Welfare -to -Work
Program. Under the California Work Opportunities and Responsibility to Kids
City of Newport Beach VII -10 2005 — 2009 Consolidated Plan
Rev. 4 111105
Non - Housing Community Development Needs Assessment
(CalWORKS) Act, welfare recipients must comply with work requirements in order
to receive assistance. The program offers a number of employment assistance
activities, such as work preparation and vocational training, job search and
readiness activities, study, on-the-job training, vocational training, adult basic
education, and other supportive services.
The City recognizes the need for employment and job training services and will
consider support for programs that seek to complement the existing services.
6. Youth Services
The City administers several recreational programs and two after- school programs.
For elementary school -aged children, KidsScene, an After- school Recreation for
grades 1 -6, meets at West Newport Community Center, Mariners Park, and
Community Youth Center at Grant Howald Park. For Junior High students (grades
7 -8), "Ensign X- perience" is a drop -in after - school program at Ensign Middle
School.
Local non - profits, such as the CSP Youth Shelter, offer programs and counseling to
at -risk youth in the area. Other non - profits, such as Operation School Bell, provide
suitable school clothes to low - and moderate income children. While the City
recognizes that there is a significant need for funds to serve at -risk youth, the City
has a assigned this need category a medium priority relative to other community
needs.
7. Child Care
Affordable child care is an essential component to a low- income working family's
ability to rise out of poverty. Although there are a large number of licensed child
care facilities in Newport Beach, the cost of these facilities is often unaffordable to
the families who most need it. According to a set of 2004 community indicators
published by Orange County, child care costs increased three times as fast as the
median family income. The local Welfare -to -Work program meets some of the
existing need, as it includes subsidies for child care. The City has placed a medium
priority on meeting the community's child care needs.
8. Services for the Disabled
The Dayle McIntosh Center, located in Garden Grove, is the primary provider of
services to the disabled in the area. The Center receives funding from the State
Department of Rehabilitation and is designated as a one of the twenty -nine
Independent Living Centers (ILCs) in the state. These centers are dedicated to the
ideal that communities become fully accessible and integrated so that all persons
with disabilities can live, work, shop, and play where they choose, without barriers.
Dayle McIntosh provides a variety of services including advocacy, counseling, and
vocational services.
City of Newport Beach V11 -11 2005 — 2009 Consolidated Plan
Rev. 4111105 `�
Non - Housing Connnunity D v to meat Needs Assessment
Residents of Orange County with developmental disabilities, such as mental
retardation, cerebral palsy, epilepsy, and autism, are also served by the Regional
Center of Orange County.
In addition, the State administers the In -Home Supportive Services Program that
helps pay for services so that clients can remain safely at home as an alternative to
expensive out -of -home care, such as nursing homes or board and care facilities.
Types of services include housecleaning, meal preparation, and personal care
services.
Given the existing level of service and funding, the City has set this need category
as a medium funding priority, where it will consider supporting programs that
complement existing services.
9. Transportation Services
The county transportation authority operates ACCESS, a shared -ride service for
people who are unable to use the regular, fixed -route bus service because of
functional limitations caused by a disability. This need category received a low
priority.
10. Crime Prevention
The City does not have a significant issue with clime. Residents in general feel safe
in their neighborhoods. Based on the availability of other funding sources, the City
has assigned this category of need a low priority relative to other community needs.
I. Accessibility Needs
Persons who are physically disabled, including blindness, and persons who suffer from
brain impairments due to diseases or accidents, often face accessibility issues. The
American Disabilities Act of 1991 provides comprehensive civil rights protection to
persons with disabilities in the areas of public accommodation, employment, state and local
government services, and telecommunications. The design, implementation, and
maintenance of all park facilities must comply with ADA; persons of all abilities must have
the opportunity to participate in recreation activities.
Under the Americans with Disabilities Act (ADA), the City is charged to ensure that
individuals with disabilities are not excluded from services, programs, and activities
because existing buildings are inaccessible. ADA compliance is a concern of the
Consolidated Plan as many persons with disabilities qualify as low and moderate income.
The City is working to assure compliance with this important legislation and has assigned
this category of need a high priority.
J. Economic Development
Overall, the need to use Consolidated Plan funds for economic development in Newport
Beach is low. The city is an attractive place to do business. It is located in the heart of
Southern California's "technology Coast" with immediate access to interstate highways,
City of Newport Beach VII -12 2005 — 2009 Consolidated Plan
Rev. 4111105 14 6
Non - Housing Community Development Needs Assessment
railways, seaports, the John Wayne Airport, and a highly educated and skilled labor force.
Professional services are a strong factor in the city's economy. The high salaries in this
sector support the City's retail and restaurant sectors and the travel demand generated by
this sector also supports local hotels. Tourism and retail are also important sectors.
Together, tax revenues from these two sectors account for almost a third of the City's
general fund revenue. Major contributors to this revenue are Fashion Island, automobile
dealers and restaurants. Automobile sales are responsible for about 15% of sales tax
revenue, while restaurants contribute about 18 %. Geographically, the top sales tax revenue
producing areas are Fashion Island, the airport area, Mariner's Mile, and Corona del Mar.
The ratio of jobs per dwelling unit is often used to gauge employment opportunities for
residents in the community. The ratio for the City is close to 1.94 jobs per dwelling unit.
The projection for 2020 is 1.88 according to the Orange County Center for Demographic
Research. This is a high jobs/housing ratio, with almost two jobs for every dwelling unit.
The average occupancy per household is 2.25, suggesting that there are more jobs in the
City than people in the workforce.
Recent economic development initiatives have been aimed at improving the City's older
commercial villages. Under the last Consolidated Plan, CDBG funds and a Section 108
loan were used to make infrastructure improvements to the Balboa Village area in order to
spur private investment. Other potential redevelopment sites include Mariner's Mile, Old
Newport Boulevard, Cannery Village, Central Balboa Peninsula, McFadden Square, the
West Newport industrial area, the mixed residential/industrial area above Hoag Hospital,
and the Airport Business Area.
There are several other existing economic development programs available to residents and
local businesses funded from other agencies. Descriptions of these programs are provided
below.
Orange County Small Business Development Center (SBDC):
The Orange County SBDC offers complimentary, personalized business assistance
through individual consultations and low -cost seminars. The SBDC is an economic
development program of Rancho Santiago Community College District and is
supported by the U.S. Small Business Administration (SBA) and the California State
University in Fullerton.
Small Business Administration (SBA) Programs:
• Basic 7(a) Loan Guaranty: This is the SBA's primary business loan program.
It helps qualified small businesses obtain financing when they might not be
eligible for business loans through normal lending channels. Funds can be used
for most business purposes including working capital, machinery and
equipment, furniture and fixtures, land and building, and debt refinancing. These
loans are processed through local commercial lenders.
• Express Loans: This program offers term loans and lines of credit up to
S150,000.
• Microloan Program: Local intermediary for U.S. Small Business
Administration's Microloan program is Valley Economic Development
City of Newport Beach VII -13 2005 — 2009 Consolidated Plan
Rev. 4111105 0
Non- Housing Community Development Needs Assessment
Corporation, located in Van Nuys, serves Los Angeles and Orange County. The
Mieroloan program loans up to $35,000 for a term of six years to start -up and
growing small businesses.
■ Certified Development Company (504) Loan Program: The CDC /504 loan
program is a long -term financing tool for economic development within a
community. The 504 Program provides growing businesses with long -term,
fixed -rate financing for major fixed assets, such as land and buildings.
Maximum loans are $1.3 million. Local intermediaries: La Habra Local
Development Company, Inc., Santa Ana
Other Programs:
■ ACCION: This nonprofit organization is dedicated to helping micro
entrepreneurs grow their businesses by providing small loans and business
training. As a community lender, they provide small loans ranging from $300-
$25,000. The average loan size is approximately $4,500. About 40% of
ACCION clients are women and over half are Hispanic or African- American.
Bankers Small Business Community Development Corporation of Orange
County: Bankers CDC administers loan programs for financing under $50,000.
This loan pool is a consortia of small business lenders that pull together to make
these loans available for businesses. The CDC focuses on small business owners
that do not meet criteria for conventional bank loans or SBA financing.
Businesses over one year old that can demonstrate professionalism, satisfactory
credit, and positive cash flows, but may not have profit levels that are available
for conventional banking, meet the general qualifications. The loan pool is made
available by over 20 banks as an effort to "give back" to our local communities.
Women, minority and businesses in low to moderate - income levels comprise
75% of Bankers CDC borrowers.
City of Newport Beach VII -14 2005 — 2009 Consolidated Plan
Rev. 4111105 4 X
1
Nor- Housing Community Development Needs Assessment
Table 7 -3
HUD Consolidated Plan Table 2B
PUBLIC FACILITY NEEDS _
\DA lampnrcnnvnl.
Ilameless Facdales
Priority Need
Level
HIGH
} medium
Five Yi4 r-
f�ja
Fstirretcd Fuming
$0
Non- Residential Historic Preservation
medium
$0
Child Care Centers
low
$0
Senior Centers
low
$o
Handicapped Centers
low
$0
Youth Celli ers
low
so
Health Facilities _
low
$0
Neighborhood Facilities
low
$0
Parking Facilities
low
$0
Parks and/or Recreation Facilities low
PuhhC I.ICiLl, SuhloLd
$0
52501910
INFRNI RUCfURE
tiUCd Ingvtcrn,.'nL,'
Flood Dram Improvements
Priority N,vl Five Year Cmal
Level (Proiccb):
Estinratcd Fwditrg'
_
S0
So
umdmni
low
Water /Sewer Improvements
low
$0
Solid Waste Disposal Improvements
low
$0
Other infrastructure Needs
low
$0
Infrastructure Subtotal $0
- �treA Impr, n anenin nx lude adewalk,.md aucel ht!hring
PUBLIC SERVICE NEEDS
Ih -mrle , �,a' .
Suh,,la l,.. Abmc
Prionty Nood
I.ev21 ...
HIGH
HIGH
, Five YtatCoa)
(Pe 50051
SW
25(1
pyjimatal F' .
_
51591x11)
$50,000
Senior Services
HIGH
9.000
$100,000
Health Services
medium
$0
Employment Training
medium
$0
Youth Services
medium
$0
Child Care Services
medium
$0
Services for the Disabled
medium
$0
Transportation Services
low
$0
Gmftili Removal
low
$0
Anti-Crime
low
$0
Public Set, Tres Subtotal $309,000
" I vad Ilarenl 5aecumg 1, uxiuded wider Alfurdahle Housing.
ECONOMIC DEVEI APMEIJ1
Ulher AVnm log kou Rcpaymenl
CA Infrastructure Development
Prirxity Need
I.eveF
HIGH
medium
Fivn, ,*'Gw
tB¢gljgpx}
Fstirtratod FuodO+R
$0
ED Assistance to For - Profits
low
$0
CornmerciaVhtdustrial Rehab
low
$0
Micro- Enterprise Assistance
low
$0
ED Technical Assistance
low
$0
Economic Development Subtotal
$968,000
PLANNING/ ADMINISTRATION
HIGH
nia
$408,000
TOTAL NON - HOUSING FUNDING:
$1,935,000
CDBG HOUSING FUNDING (Code Enforcement) $125,000
TOTAL CDBG FUNDING $2,060,000
City o(Newport Beach Y71 -15 2005 — 2009 Consolidated Plan
Rev. 4111105 , j
Barriers to Affordable Housm
VIII. BARRIERS TO AFFORDABLE HOUSING
A. What is a Barrier to Affordable Housing?
As defined by the Consolidated Plan regulations, a barrier to affordable housing is a
public policy, such as land use controls, property taxes, zoning ordinances, building
codes, fees and charges, growth limits, and other policies. Since cost reduction
opportunities in housing can also be found in areas other than public policy, the
Planning Department chose to look at all potential barriers. To distinguish a barrier
to affordable housing from an impediment to fair housing choice, is to think of a
barrier as not unlawful necessarily (i.e., the lack of affordable housing stock, in and
of itself, is a barrier to affordable housing).
B. Analysis of Barriers
The Planning Department is committed to helping reduce barriers to affordable
housing. Despite Newport Beach's strong economy and housing demands, the local
market may not be responding to the needs of lower- income households to the
degree needed. The inventory of affordable housing continues to decline, while the
production rate of new affordable housing units cannot keep up with demand.
As the lead agency for housing and community development in Newport Beach, the
Planning Department is making a significant effort to identify housing problems and
reshape its policies and programs for the coming years. The Planning Department
sponsored a community meeting to discuss the needs of the community as it relates
to the CDBG Program. In addition, the Department distributed needs assessment
surveys at a number of public facilities and distributed the surveys to community
based organizations and public service providers. And finally, interviews of the
public service providers and community based organizations was conducted as part
of Consolidated Plan development process (described in the Consolidated Plan
Development section).
Comments from these sources reveal a variety of barriers to affordable housing in
Newport Beach. The two primary barriers to accessing affordable housing are:
Lack of affordable housing
■ Lack of developable land
Other barriers may include:
• Approval process and fees
• Zoning
• Land use controls
• Citizen opposition (the "Not In My Back Yard," or NIMBY syndrome)
• Lack of constituency
City ofNexport Beach Pg. V111-1 2005 -2009 Consolidated Plan
Rev. 4112105
Barriers to Affordable Housine
• Lack of knowledge of available programs and resources
• Resource fragmentation and scarcity
• Housing acquisition finance requirements
• Lack of financial resources by housing providers
• Lack of coordination of resources
In addition, some families and individuals face barriers to fair housing choice. For
more information on impediments to fair housing choice, consult the Impediments to
Fair Housing section of this document.
1. Primary Barrier: Lack of Affordable Housing
Since affordable housing is becoming more difficult to find, many low- income
households must pay more than they should for a home, or live in less -than-
desired conditions. As reported in the housing needs section, approximately
5,098 (34 %) renter households and approximately 5,521 (43 %percent) of the
owner households in the Newport Beach are experiencing a cost burden.
What is a Housing Cost Burden?
When a household pays more than 30 percent of its income on housing and
utilities, HUD considers the household to be experiencing a cost burden. When a
household pays more than 50 percent of its income on housing, the household
experiences a severe cost burden.
2. Primary Barrier: Lack of Developable Land
The most important land use planning issue for the City is room to grow —not
only for homes, but also for businesses, industry, and public uses. The City is
reaching a major crossroads as the amount of remaining undeveloped land
continues to decrease, and older developed areas continue to age. Lack of land
for housing could create higher housing prices and rents.
3. Other Barriers
a. Approval Process and Fees: Getting government approvals for affordable
housing projects requires an increasing amount of time and money. The
length of time involved in the permit approval process itself can be a barrier
to affordable housing. Sometimes the process of obtaining all required
permits and approvals may add months or even years to a project's
development time. During this period the developer must pay the explicit
costs of funds borrowed to finance the development and staff retained to
design it, as well as the implicit cost of revenues foregone as a result of the
approval process delay. Often such delays are due to the needs for
submission revisions in accordance with permit requirements. However,
whether the delays are due to government officials or developers, they still
reduce the financial return on the development of affordable housing.
Approval fees also may constitute a significant barrier to the development
City of Newport Beach Pg. V111-1 2005 -1009 Consolidated Plan
Rev. 4112105 `
b
Barriers to Affordable Housin
of affordable housing depending on the type, size, and location of the
proposed development. The fees and charges necessary for approval of a
residential development include subdivision fees, building and other permit
fees, and charges for access to sewers and other public infrastructure,
among others. Prospective developers may be required to prepare market
analyses, environmental or economic impact analyses, or infrastructure
requirements analyses and engineering plans to accompany particular
development proposals. In many cases, the aggregate cost of these fees,
charges, and required submissions can amount to a significant share of the
total cost of a residential development. These costs are passed on to the
homebuyers making the homes less affordable for low- and moderate -
income families.
b. Zoning: Local zoning is the primary system used by the City to maintain
control over the pattern of land development within its borders. Zoning
regulations allocate parcels of land to different classifications with certain
uses being permitted, while others are proscribed. Zoning regulations often
restrict density and limit housing types in locations that might otherwise be
suitable for affordable housing. Such restrictions therefore exclude lower
income household from many neighborhoods.
Zoning regulations prescribing minimum lot sizes, minimum setbacks, and
other requirements may necessitate the need for larger lots, which drive up
the cost of housing making it less affordable. In addition, zoning is
occasionally used to "zone out" mobile/manufactured homes, which are an
important source of affordable housing for many low - and moderate - income
citizens in Newport Beach.
Zoning regulations may also prohibit the development of ancillary dwelling
units, even if such units do not impose a significant cost on other
community residents. Ancillary dwelling units — sometimes called "in -law
apartments" or "grandparent apartments' - -are an important tool to increase
the supply of affordable housing for moderate - income households,
particularly single people who require minimal space.
Zoning practices often have the intended or unintended effect of increasing
housing costs, and effectively excluding prospective moderate- income
households from locating affordable housing for purchase or rent.
Separation of residential from non - residential uses exacerbates traffic
problems since most employees must then drive to work. Higher- income
residents may bid up the price or rent of housing units that are near places
of employment thereby forcing lower- income residents to live farther from
their places of employment or other amenities.
c. Citizen Opposition: The "Not In My Back Yard" (NIMBY) syndrome can
be a barrier to affordable housing. There is a reluctance to have any
additional affordable housing in neighborhood due to the perception of
housing design, absentee landlords, and crime associated with such housing.
There is the misperception that there will be a decrease in property value.
City of Newport Beach Pg. V111-3 2005 -2009 Consolidated Plan
Rev. 9112105 , i
`1
Barriers to A/%rdable Housing
Public hearings concerning proposed affordable housing projects bring
objections galore, mostly from neighbors who cite adverse effects on traffic,
infrastructure, public services schools, the environment, properly values,
and crime rates. Frequently unstated is the desire to maintain a
neighborhood's socioeconomic homogeneity and exclusivity.
d. Lack of Constituency: Despite statistics showing affordable housing
shortages, there is little effective public support for new affordable housing
initiatives, and little support for measurable increased public funding. Lack
of public support often translates into a lack of political support and thus
serves as a barrier to the development of both new affordable rental housing
units and affordable housing rental subsidies.
e. Lack of Knowledge of Available Programs and Resources: A lack of
knowledge among organizations and lower income clients is not uncommon
and contributes to a barrier to affordable housing.
f Resource Fragmentation and Scarcity: To finance affordable housing,
sponsors must now bundle together many Federal, State, City, and private
programs providing capital funds, operating subsidies, and investment tax
incentives. Funding fragmentation is administratively onerous, with
sometimes conflicting program constraints
Even with the availability of a variety of programs, affordable housing
resources remain scarce. Like most jurisdictions, the City still has
insufficient resources to meet the need for affordable rental and
homeownership housing. The need for increased revenue for housing on the
Federal, State, and local levels competes with other legitimate public
priorities, such as education, transportation, health, and welfare.
g. Housing Acquisition Finance Requirements: Mortgage down payment
requirements constitute perhaps the most significant barrier to the purchase
of otherwise affordable housing by moderate- income households.
Moderate - income households may have little difficulty in making monthly
mortgage payments, particularly as household incomes increase with
increasing self - sufficiency and real wage growth. However, these
households may have difficulty accumulating the total amount required for
the up -front down payment on a home purchase.
h. The lack of a "one- stop - shop" for housing finance is considered to be a
significant barrier to homeownership for low- income people in the City.
i. Finally, rental security deposits may also constitute a significant barrier to
the acquisition of otherwise affordable rental housing by low- and
moderate- income households, although security deposits are generally small
compared with mortgage down payment requirements.
j. Similarly, environmental review procedures result in barriers to affordable
housing. Environmental regulations provide positive public benefits to all
citizens and communities, however, different environmental reviews, rather
than a uniform review process shared by all departments, prolong the
City of Newport Beach Pg. VIII -4 2005 -2009 Consolidated Plan
Rev. 4112105 I
Bamiers to Allordable Housing
affordable housing development process, increase costs, create confusion,
reduce affordability, and impose undue administrative burdens.
Additionally, many low- income households and most special needs
populations usually need access to a variety of supportive services.
C. Strategy and Objectives
The primary barrier to affordable housing in Newport Beach —as cited through the
citizen participation and consultation process —is the lack of affordable rental and
homeownership units. Many low- and moderate - income persons and households,
especially the very low- income households, the homeless, the physically and
mentally disabled, the frail elderly, and other persons with special needs, have
problems finding and obtaining affordable housing.
Therefore, the City's primary strategies for helping reduce barriers to affordable
housing are the same as its strategies to meet affordable housing needs:
• Increase supply of housing units affordable to moderate- income households
through new construction.
• Maintain existing level of Section 8 housing vouchers and rent - restricted units
within the City.
• Ensure universal access to fair housing choice within the City.
The City, with the help of the Planning Department, will work with its Consolidated
Plan partners throughout Newport Beach to further examine ways to ameliorate the
conditions that can prevent residents of from obtaining quality, affordable housing.
The City of Newport Beach 2005 -2009 Consolidated Plan contains several
objectives that address some of the above barriers to affordable housing.
City of Newport Beach Pg. VIII -5 2005 -2009 Consolidated Plan U
Rev. 9112105 \ -j 0
I
Impediments to Fair Housine
IX. IMPEDIMENTS TO FAIR HOUSING
A. Introduction
Consolidated Plan requirements include completing an Analysis of Impediments to
Fair Housing Choice. As part of a mandate to affirmatively further fair housing,
Newport Beach must take appropriate actions to overcome the effects of the
impediments to fair housing choice it identifies in its analysis.
As the lead agency for the City of Newport Beach 2005 -2009 Consolidated Plan, the
Planning Department is committed to working with the public, private, and nonprofit
sectors in Newport Beach to ensure fair housing choice for all residents. This
commitment includes incorporating fair housing needs and strategies into the Consolidated
Plan.
This section on Fair Housing includes the following:
■ Overview of fair housing, with background on the Fair Housing Act.
Impediments to Fair Housing Choice in Newport Beach, as identified in the
City's Analysis of Impediments to Fair Housing Choice (Al).
A strategy for the City of Newport Beach to affirmatively further fair housing by
addressing current impediments.
B. Overview of Fair Housing
1. What is Fair Housing Choice?
The ability of persons, regardless of race, color, religion, sex, handicap, familial
status, national origin, of similar income levels to have available to them the
same housing choices.
Consolidated Plan requirements include completing an Analysis of Impediments
to Fair Housing Choice. As part of a mandate to affirmatively further fair
housing, the City of Newport Beach must take appropriate actions to overcome
the effects of the impediments to fair housing choice it identifies in its analysis.
What is an Analysis of Impediments to Fair Housing?
HUD requires each CDBG recipient to complete an Analysis of Impediments to
Fair Housing Choice, also known as an Al. The analysis includes examining
barriers to fair housing choice. Many communities develop this analysis and
planned actions as part of a broader fair housing strategy or fair housing plan.
3. What is an Impediment to Fair Housing Choice?
Housing choice is impeded when actions, omissions, or decisions are taken that
restrict a person's choice of housing because of his/her characteristics as listed
above. It is also impeded when certain residential dwellings are not made
available to a person because of his/her characteristics as listed above.
City of Newport Beach IX-1 2005- 2009Consolidatd Plan
Rev 4111105
C. Fair Housing in Context
Title VIII of the Civil Rights Act of 1968 (and a subsequent Amendment in 1988)
made it unlawful to discriminate in any aspect related to the sale, rental, or financing
of dwellings (or in the provision of brokerage services or facilities) in connection
with the sale or rental of a dwelling because of:
• Race • Sex • Persons with handicaps
• Color ■ National • Families with children
origin
• Religion
1. Application of the Fair Housing Act
Application of the Fair Housing Act is not limited to situations involving
Federal funds. It provides for fair housing throughout the United States in the
private and public sectors.
When Congress first passed the Housing and Community Development Act in
1974, HUD instructed recipients of the Community Development Block Grant
(CDBG) funds to "affirmatively further fair housing." However, it did not
provide specific guidance for implementing programs to affirmatively further
fair housing.
Some CDBG recipients fund nonprofit groups to provide direct assistance to
victims of housing discrimination. Others fund educational programs for
consumers and industry about their rights and responsibilities under Federal,
State, or local fair housing laws. Other CDBG recipients take actions such as
holding special events during the National Fair Housing Month in April each
year. Other CDBG recipients do nothing specific to affirmatively further fair
housing.
2. Analysis of Impediments to Fair Housing Cboice
To help remedy this situation, when HUD published the Consolidated Plan Final
Rule in 1995, it required each CDBG recipient to complete an Analysis of
Impediments to Fair Housing. The Al is part of the mandate to affirmatively
further fair housing. This mandate also includes planning and taking annual
actions to overcome the effects of any identified impediments. A jurisdiction
must also maintain records reflecting the Al and the actions it takes to address
fair housing impediments.
The City is in the process of updating its Analysis of Impediments to Fair
Housing Choice. The City, along with a number of Cities in Orange County
have created a consortia to develop a Regional Fair Housing Analysis of
Impediments that addresses county wide issues as well as more localized issues
for each participating City. The consortium has contracted with the Fair
Housing of Orange to complete the study. The study will evaluate the nature
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Impediments to Fair Housin¢
and extent of housing segregation and discrimination in the County as well as
the City. It will serve as a framework for the City's fair housing planning as
part of its Consolidated Plan implementation.
D. Discrimination
Discrimination in the sale or rental of housing has diminished significantly since the
1960s. However, there is evidence that housing discrimination persists in Newport
Beach despite being illegal. Discrimination affecting home sales appears to occur
most commonly when potential buyers are hoping for approval of their mortgage
application by the lender. Discrimination in apartment rentals is no longer simply a
matter of White landlords refusing to rent to minority tenants. Members of many
ethnic groups, often immigrants, own or manage apartment complexes, and their
own ethnic biases clearly affect their treatment of prospective tenants.
Populations that are particularly impacted by discrimination and face higher levels of
fair housing violations are large families with children, female- headed families,
formerly homeless persons, disabled persons and persons with HIV /AIDS. Many of
these groups face housing restrictions imposed by property owners /managers
working under misperceptions or stigmas about these population groups.
Many families with children often face housing discrimination by landlords who fear
that children will cause property damage or have cultural issues with children of
opposite sex sharing a bedroom. Female- headed families may be discriminated
against in the rental housing market because some landlords are concerned about the
ability of these households to make regular rent payments.
Formerly homeless persons may encounter fair housing issues when landlords refuse
to rent to them based on the perception that homeless persons are more
economically, and sometimes mentally, unstable. Persons with disabilities may face
discrimination in the housing market because of the need for wheelchairs, home
modifications to improve accessibility, or be refused housing based on the stigma of
mental disability. Many persons living with HIV /AIDS face illegal eviction from their
homes when their illness is exposed.
Discriminatory advertising is also issue that inhibits fair housing choice. When
looking for a home to purchase or rent, some of the main sources of information are the
classified advertisements in local newspapers, word of mouth, signs, apartment guides, the
Internet, and apartment brokers. The language in these types of advertisements has
become an issue in that it can contain discriminatory references such as the use of words
describing conditions like "adults preferred," `perfect for empty nesters," or "ideal for
married couples without kids." Further, if advertisements are limited to one language it can
be targeted to specific ethnic groups, excluding others, such as when "for rent" and "for
sale" signs and advertisements for housing are in Spanish or languages other than English.
This can exclude English speaking -only residents and also make certain groups feel
unwelcome.
Discrimination can also play a role when deciding where to live. Realtors can act
unintentionally by steering potential buyers or renters to particular neighborhoods by
City of Newport Beach IX -3 2005 -2009 Consolidated Plan
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Impediments to Fair Housing
encouraging the client to look into certain areas; others may choose not to show
clients all of the choices available. Further, agents may also discriminate by their
choices in whom they agree to represent, whom they turn away, and the comments
they make about their clients. Instances of steering by realtors to certain
neighborhoods occur in many communities. The homeownership market lends itself
to potential increases in discrimination by the very nature of stakeholders involved.
While the City understands that limited housing is not a fair housing issue, it also
understands that this condition can exacerbate fair housing problems as housing becomes
increasingly scarce and competition for housing increases. When the housing market is
tight, with high demand, low vacancies, and rising costs, the potential for discriminatory
housing practices also increases.
E. Summary of Issues and Key Findings
The City last conducted an Analysis of Impediments to Fair Housing Choice in 2000.
At that time, the City along with 13 Cities and the Urban County Cities and the
unincorporated section of the County completed Regional Fair Housing Analysis of
Impediments to Fair Housing Choice. As of the writing of this document, the
Planning Department has contracted with the Fair Housing of Orange to conduct a
new Al to more accurately understand needs and develop effective strategies to
address them.
This section will discuss the issues and finding that were made in the 2000 Al.
However, rather than continue using 2000 data from the last Al, the Planning
Department plans to incorporate additional fair housing analysis and strategies into
this Consolidated Plan in the coming year. It will use the amendment process
described in the Citizen Participation Plan to incorporate the impediments found by
the new Al along with the strategies developed to overcome them.
The 2000 Al provides information for use in Orange County's Regional Fair
Housing Analysis of Impediments (AI). It includes most of the data that HUD
suggests should be in an Al. More specifically, the Report includes the following
information in both a narrative statement and 13 technical appendices.
■ Jurisdictional Background Data: population and housing characteri stics,
minority and legal immigrant population characteristics, and employment and
transportation profiles.
■ Local Housing Authorities' Policies: overview of local housing authorities'
plans, polices and procedures pertaining to and furthering fair housing.
■ Overview of Lender Loan Underwriting Criteria: loan- underwriting criteria are
explained for Fannie Mae, Freddie Mac, FHA and VA.
Community Reinvestment Act (CRA) and Home Mortgage Disclosure Act
(HMDA)i summary explanation of the basic requirements of these two statutes.
■ Mortgage Lending Discrimination: summary statements from major studies
completed on the subject of potential and actual mortgage lending
discrimination.
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■ HMDA Data Analysis: analysis of the disposition of loans by census tract for
entitlement cities and Urban County jurisdictions.
An additional purpose of this Report is to provide a resource and database to enable
the cities and County to analyze and interpret the information unique to their
communities. Consequently, 13 Technical Appendices are included as apart of the
Report, many of which contain detailed data at the census tract level. The
Appendices are as follows:
• Technical Appendix A —
Orange County Minority Population by Census Tract
• Technical Appendix B —
Recent Legal Immigration to Orange County by City,
1990 -96
• Technical Appendix C —
Orange County Employment Data
• Technical Appendix D
— Lending Policies and Practices: An Update of
Underwriting Criteria from State Department of Real Estate Publications
• Technical Appendix E
— FFIEC Home Mortgage Disclosure Act (HMDA)
Aggregate Reports
• Technical Appendix F
— Home Mortgage Disclosure Act (HMDA) Data:
Overview of HMDA Data and Loan Denial Rates
• Technical Appendix G —
HMDA Data for Entitlement Cities
• Technical Appendix H —
HMDA Data for the Urban County
■ Technical Appendix I — 1999 Federal Financial Institutions Examination
Council (FFIEC) Census Report Population Information by Census Tract for
Orange County, CA
• Technical Appendix J — FFIEC Definitions of Census Information
• Technical Appendix K — 1999 FFIEC Census Report Income Information by
Census Tract
• Technical Appendix L — 1999 FFIEC Census Report Summary Census Tract
Demographic Information by Census Tract
• Technical Appendix M — 1999 FFIEC Census Report Housing Census
Information by Census Tract
• Technical Appendix N — Orange County HMDA Data by Race and Type of
Loan
• Technical Appendix O — Fair Housing Enforcement
• Technical Appendix P — Maps
■ Technical Appendix Q — Fair Housing Council of Orange County Data &
Information. This study examined the status of fair housing in the municipality,
as well as issues and impediments to fair housing choice. It currently serves as a
framework for the Community Development Division's fair housing planning as
part of its Consolidated Plan implementation.
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Impediments to Fair Housing
The analysis entitled Orange County Regional Fair Housing Impediments Analysis
was completed and is available for review by the public. The analysis revealed the
following six (6) findings and provided the recommendations to address these findings.
The Findings and recommendations are as follows:
This region has a well established and effective private fair housing council that
has provided dynamic and comprehensive educational and enforcement
programs to the local jurisdictions it serves. This example of public - private
partnership continues to be a model for other areas and is considered one of the
best in the nation.
Recommendation: Local jurisdictions continue to support or operate fair
housing set-vices at their present level of effectiveness and responsiveness.
2. This region has not maintained a pro- active position regarding fair lending
practices within the region. Efforts over the past four years have been limited to
establishing partnerships with universities and other organizations to effect a
study of the HMDA data. These activities, though essential, have not had the
desired effect of explaining or eliminating the disparity by race and National
Origin evidenced by the HMDA data.
Recommendation: Local jurisdictions study the HMDA data available more
closely to determine the appropriate course oj'action, if any. This can be done
individually or by contract with their local fair housing provider or other
outside consultant.
3. Local jurisdictions do not have formal fair housing education systems in place
for employees who impact fair housing issues, such as, planninglzoning staff,
housing authority staff and code enforcement staff.
Recommendation: Local jurisdictions implement a policy that requires all
employees whose positions impact fair housing issues attend formal fair
housing training on an annual basis.
4. Recent immigrant populations may not have adequate information regarding
their basic housing rights, leading to increased opportunities for discrimination
to go undetected. This will be an ongoing issue due to Orange County's high
percentage of new immigrant populations.
Recommendation: Local Governments should provide education and outreach
to service organizations that specifically assist new immigrant populations.
This outreach should consist of educational opportunities as well as written
information to educate staff members and pieces that can be provided to their
clients.
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5. Insurance Companies may be targeting certain zip codes for higher rates of
denial or different terms and conditions. This issue was beyond the scope of
this Al and as such, no verifiable evidence of differential treatment exists.
Recommendation: Local jurisdictions may choose to conduct an audit of local
insurance carriers to determine if this is a problem, and if so, isolate the basis
for the higher denial rates.
6. Local entitlement jurisdictions have distinct and independent policies and
programs affecting housing development.
Recommendation: Local governments continue to monitor and review their
local policies and programs in regard to fair housing concerns. Jurisdictions
should consider requiring all potential recipients ofgovernment funds for
housing related programs to assist the jurisdiction to affirmatively further fair
housing.
F. Fair Housing in Newport Beach
The City of Newport Beach has worked in conjunction with the Fair Housing of
Orange to affirmatively further fair housing opportunities in this community. The
Fair Housing of Orange "actively supports and promotes freedom of residence
through education, advocacy and litigation to the end that all persons have the
opportunity to secure the housing they desire and can afford, without regard to their
race, color, religion, gender, sexual orientation, national origin, familial status,
marital status, disability, ancestry, age, source of income or other characteristics
protected by law."
The Fair Housing of Orange provides a wide array of programs and services to its
clients free of charge and which are available in a number of different languages to
residents, housing professional and community service providers under contracts
with the City of Newport Beach, an many other communities throughout the County.
G. Fair Housing Strategy
The Planning Department, as the lead agency for the Consolidated Plan, is
committed to working with its public, private, and nonprofit partners to ensure fair
housing choice for all residents. This commitment includes incorporating fair
housing needs and strategies into the Consolidated Plan. In conjunction with the
Orange County Regional Fair Housing Impediments Analysis (2000 Edition) and the
subsequent 2005 Analysis of Impediments the Planning Department will develop
measurable actions that it will undertake each year to carry out this strategy. The
Annual Action Plan for each program year will describe these actions.
For a copy of the Orange County Regional Fair Housing Impediments Analysis, write
to the City of Newport Beach, Planning Department, 3300 Newport Blvd., P.O. Box
1768, Newport Beach, CA 92658 -8915
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X. LEAD -BASED PAINT HAZARDS
A. Introduction
Lead -based paint poisoning among children is increasing nationwide. Research
indicates that even a low level of lead in a child's blood can have harmful effects on
physical and developmental health. The Center for Disease Control has designated
lead exposure as the primary environmental health hazard facing American children.
The most common source of exposure is deteriorating lead based paint and lead -
contaminated dust found in the home.
Fortunately, lead poisoning is preventable. To adequately protect children, the Federal
government streamlined, modernized, and consolidated all lead -based paint
requirements in Federally- assisted housing. New HUD regulations (24 CFR Part 35)
took affect implementing these sweeping changes in 2000, and the City is ensuring
that its programs comply with these new regulations.
B. Lead Hazards
Lead can cause severe damage in young children. It attacks the central nervous system
and the neurological system, and can cause brain damage, 1Q reduction, learning
disabilities, decreased attention span, hyperactivity, growth inhibition, comas, seizures,
and in some cases, death. Fetuses may also experience significant adverse effects
through prenatal exposure.
In 1991, the Center for Disease Control issued guidelines for identifying children with
lead poisoning. It recommended that jurisdictions screen all young children for lead in
their blood. Children identified with blood lead poisoning would receive intervention
to remove the source of the poisoning and reduce the blood lead level.
The problem of lead poisoning has increased so dramatically that the Center has
reduced the standard regarding the blood level that demarcates lead poisoning by more
than half. By reducing the standard from 25 micrograms to 10 micrograms of lead in a
deciliter of blood (µgl&), it expanded the number of people considered to be poisoned
and in need of help.
A level of 10 µgfdL or above is now considered an "elevated blood lead level." If a
child's blood lead level is 20 µgfdL or remains at 15 µgfdL after two tests, the Center
for Disease Control requires case management by local health professionals. Even a
low level of lead in a child's blood can have harmful effects on physical and
developmental health.
C. Sources of Lead Hazards
The most common source of child lead poisoning is exposure to lead -based paint (and
lead - contaminated dust) in the child's home. Housing built before 1978 may contain
some lead -based paint since the use of lead -based paint became illegal that year. Since
City of Newport Beach X -1 2005 - 2009 Consolidated Plan
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the amount of lead pigment in the paint tends to increase with a home's age, older
housing is more likely to have lead -based paint hazards.
Lead exposure occurs when children ingest chips of lead -based paint, paint
contaminated dust, or paint - contaminated soil. It also occurs if they inhale dust
particles from lead -based paint (usually occurring due to deterioration, abrasion, home
renovation, or maintenance). Children are also exposed to lead through a variety of
other sources besides lead -based paint, such as gasoline, air, food, water, soil, dust, and
parental hobbies such as pottery and stained glass making.
Occupational lead exposure accounts for approximately 90 percent of adult lead
poisoning cases. Occupations in which a worker is potentially exposed include
smelting and refining industries, battery manufacturing plants, gasoline stations,
construction and residential painting.
D. What is a Lead -based Paint Hazard?
Lead -based paint hazards consist of any condition that causes exposure to lead from
the following sources that would result in adverse human health effects:
• Lead -based paint dust
• Lead -based paint contaminated soil
• Lead- contaminated paint that is deteriorated or present in accessible surfaces,
friction surfaces, or impact surfaces
E. Effects of Lead Hazard
Lead poisoning is one of the most common and preventable health hazards to
American children today. Research indicates that even a low level of lead in a child's
blood can have harmful effects on their physical and developmental health.
Lead poisoning is the most serious environmental threat to children's health. If
harmful levels of lead are not detected early, children could suffer from:
Decreased growth
• Learning problems
• Impaired hearing
• Behavior problems (such as hyperactivity.
• Nerve and /or brain damage
Children are more susceptible to the effects of lead, because their growing bodies
absorb more lead and young children often put their hands and other objects in their
mouths. In addition, their brains and nervous systems are more sensitive to the
damaging effects of lead.
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Lead -based Paint Hazard
Most children do not have any symptoms, even if a blood test shows that they have an
elevated blood lead level. If a child does have symptoms, the symptoms may be
mistaken for the flu or other illnesses. If symptoms occur, they might be:
• Irritability
• Fatigue
• Constipation
• Frequent vomiting
• Headache
• Sleep disorders
Poor appetite
Stomach ache and
cramps
Lead can cause severe damage in young children. It attacks the central nervous system
and the neurological system, causing brain damage, 1Q reduction, learning disabilities,
decreased attention span, hyperactivity, comas, seizures, and in some cases, death.
There may also be significant adverse effects to fetuses through prenatal exposure.
Who is At Risk?
Residents of any housing built before 1978 are considered to be at risk of containing
some amount of lead -based paint. Older housing is more likely to have lead -based
paint and the amount of lead pigment in the paint tends to increase with the age of the
housing. A small amount of Newport Beach's housing stock (24.4 %) was built after
1979, eliminating the residents of these homes from risk of lead -based paint hazards.
An additional 26.4 % of the City's housing stock was built between 1970 and 1979,
which has a somewhat low risk of lead -based paint hazards.
Since low- income people often live in older housing, they are at higher risk for
exposure to lead -based paint. It is estimated that a small fraction of the units
constructed before 1978 are occupied by low- to moderate- income households and
potentially have lead -based paint. However, empirical evidence gathered through the
testing of pre -1978 housing done in conjunction with the City's various housing
rehabilitation programs suggests that a smaller percentage of the City's housing stock
has paint containing lead. Young children who live in housing built before 1978 could
ingest lead -based paint and are thus at higher risk. The following children in Newport
Beach could be at higher risk:
• Children under 5 years old: about 4.0 % of the population of Newport Beach, or
2,832 children.1
• Approximately 68 families (or 2.9 % of the total number of families below the
poverty level) have related children under six years old are living below
poverty.2
F. Number of Children with Elevated Blood Levels of Lead
The Center for Disease Control mandates lead screening for all children who
participate in Federally- funded health programs. Screening typically occurs when a
Source: U.S. Census Bureau, 2000 Census data.
Z Source: U.S. Census Bureau, 2000 Census data.
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Lead -based Paint Hazard
child is between 12 and 72 months old. An elevated blood level (EBL) is recorded
when the blood level is 10 µg/dL.
In accordance with the Centers for Disease Control and Prevention, A "case" is
defined as a child having a blood lead level equal to or greater than 20 µg/dL once, or
blood lead levels between 15 -19 pg/dL for at least two tests. Once a case is reported, the
CDC is involved in the case, as described below the heading, Childhood Lead
Poisoning Prevention Program (CLPP).
The Center for Disease Control records the number of reported annual screenings, the
number of children with elevated blood levels and the number of reported cases for the
cities within County. The chart below shows the number of screenings, EBLs, and cases in
the City of Newport Beach.
Table 10-1
Elevated Blood Lead Levels
Year
# Children less than 16 years old
w/ BLL greater than 10 mcg/dL*
includes children who are cases
# Children less than 16
years old meeting case
definition **
2000
0
0
2001
0
0
2002
1
0
2003
0
0
2004
2
0
5- ear total
3
0
BLL = blood lead level; CDC = Centers for Disease Control and Prevention;
mcg /dL = micrograms per deciliter
'The CDC has determined the "level of concern" or "elevated" BLL to be 10 mcg /dL or greater.
* *A "case" is defined as a child who has had one BLL of 20 mcg /dL or greater or two BLLs between
15 mcg /dL —19 mcg /dL drawn at least 30 days apart.
Source: Childhood Lead Poisoning Prevention Program Response And Surveillance System for
Childhood Lead Exposure (RASSCLE) Database.
G. Strategies and Objectives
The City's strategy for lead -based paint falls under:
H. Strategies to Address Specific Issues — Lead Based Paint
The following describes the programs and activities to support this strategy and more
specifically to address lead -based paint in federally assisted housing. The strategy requires
the City to implement programs that protect children living in older housing from lead
hazards. To reduce lead -based paint hazards, the City takes the following actions:
Work with agencies in a collaborative effort to secure funding and provide low -
cost training to testing and abatement contractors and workers.
■ Monitor the lead - poisoning data maintained by the Orange County Department
of Health Services.
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Educate residents on the health hazards of lead -based paint through the use of
brochures and encourage screening children for elevated blood -lead levels.
I. City Compliance and Activities
The City will take the necessary action to ensure compliance with HUD's
Consolidated Lead -Based Paint Regulations. Table 10 -2 displays the process and
procedures that the City will use to address lead -based paint in CDBG funded
Rehabilitation Programs. This table is broken into three categories— rehabilitation
under $5,000, rehabilitation $5,000 to $25,000, and rehabilitation over $25,000 —and
describes the approach to lead hazard evaluation and reduction, application to the
program, scope of work, notification, lead hazard evaluation, relocation requirements,
lead hazard reduction, clearance, and options.
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Table 10-2
Addressing Lead -Based Paint in
CDBG and HON'Ilrfunded Rehabilitation Programs
Requirements
<$5,000
$5,000- $25,000
>$25,000
Approach to Lead
IN) no harm,
Identity :red control lead hazards
Identify and abate lead hazards
Hazard Evaluation
and Reduction
Application reviewed and
Application reviewed and
Application reviewed mid approved;
Application to
approved; agreement
approved: agreement determines
agreement determines commitment
Program
determines commitment
commitment
Scope of Work
Scope of work to determine if
Scope of work to determine if
Scope of work to determine if painted
painted surfaces will be
painted surfaces will be disturbed:
surfaces will be disturbed; begin to
disturbed; begin to identify
begin to identify lead hazards
identify lead hazards
lead hazards
Notification
Lead hazard pamphlet;
Lead hazard pamphlet; notification
Lead hazard pamphlet; notification to
notification to buyers; notify.
to buyers; notification of
buyers; notify. of evaluation;
of evaluation; notify. of
evaluation; notification of reduction
notification of reduction
reduction
Lead Hazard
Paint testing required by
Paint testing required by certified
Paint testing required by certified
Evaluation
certified paint inspectors* or
paint inspectors* for surfaces
paint inspectors* for surfaces
risk assessors* for surfaces
disturbed during rehab; risk
disturbed during rehab; risk
disturbed during rehab.
assessment on entire dwelling and
assessment on entire dwelling and soil
soil
Relocation
Relocation from work area
Relocation from unit may be
Relocation from unit may be required
Requirements
required when extensive rehab.
when extensive rehab. occurs in
occurs in kitchens, bathrooms, etc.
kitchens, bathrooms, etc.
IFLEAD IS
Repair lead -based paint
Interim Controls on lead -based
Abatement to lead -based paint
PRESENT OR
disturbed during rehab. and
paint include addressing friction
involves permanently removing lead -
PRESUMED: Lead
apply a new coat of paint; Safe
and impact surfaces, creating
based paint hazards, often through
Hazard Reduction
Work Practices (SWP) that
smooth and cleanable surfaces,
paint and component removal, and
restrict types of paint removal
encapsulation, removing or
enclosure and interim controls on
methods, provide for occupant
covering lead -based paint and
exterior surfaces not disturbed by
protection, and require
paint stabilization through -out unit;
rehab; SWP
cleaning after lead hazard
SWP
reduction activities.
Clearance
Clearance testing on repaired
Clearance testing performed unit-
Clearance testing performed unit -
surfaces by certified
wide and on soil
wide and on soil
professional*
Options
Presume lead -based paint;
Presume lead -based paint; use
Presume lead -based paint; abate all
SWP
standard treatments
applicable surfaces
Contractor
SEP- contractors familiar with
Interim Controls or Standard
Abatement contractors- trained and
Qualifications
Safe Treatment Methods and
Treatments- accredited lead -based
state- certified abatement supervisors
Prohibited Treatment Methods
paint worker course or lead -based
and accredited lead abatement worker
paint abatement supervisors course
training
*Certified Paint Inspectors must successfully complete an Environmental Protection Agency (EPA) or state - accredited training program
and receive state certification; Certified Risk Assessors must successfully complete an Environmental Protection Agency (EPA) or state -
accredited training program, receive state certification, and have related experience.
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Lead -based Paint Hazai
J. Activities of Other County Agencies
Other County agencies administer various programs and engage in various activities to
address lead hazards or lead -based paint issues. These programs and activities are
listed below.
Orange County Health Care Agency
The Orange County Health Care Agency through the Public Health Services — Family
Health Division implements the Childhood Lead Poisoning Prevention Program
( CLPPP). The program is a court ordered program which implements a multifaceted
approach to preventing childhood lead poisoning which includes screening,
surveillance, risk reduction, primary prevention activities, interagency coordination,
and services for children affected by lead. The mission of the County CLPPP is to
reduce children's blood lead levels below 10 µg/dl through primary prevention
activities.
The Family Health Division of the Orange County Health Agency administers a
Childhood Lead Poisoning Prevention ( CLPPP) program with the following mission:
Forming alliances with the community, schools, public and private agencies,
local print and broadcast media and businesses to promote healthy eating and
physical activity;
Empowering families and individuals to choose and prepare nutritious foods and
to be physically active;
Providing referrals to emergency food resources to those in need of food
assistance and raising community awareness about food security.
"To prevent lead poisoning in children by pro- active action to educate the public
regarding the hazards of lead poisoning, and to provide a comprehensive response to
support lead burdened children, their families and the community."
The Division has four units to carry out the mission of the CLPP: the Case
Management, Environmental Health, Epidemiology, and Health Education Units. The
Case Management Unit has Public Health Nurses who assist primary care providers
with identification, follow -up and management of lead- poisoned children considered to be
a case.
Once a child has been identified as a case, a Public Health Nurse visits the child's home to
provide a general physical assessment of the child. The nurse also educates the family
on the effects of lead poisoning, explains how to prevent it, and helps link the family to
any needed health and social services.
' Information on the Childhood Lead Poisoning Prevention Program was received from the Orange
County Health Care Agency web site at www.ocheakhinfo.cor /mcahiclilono.htrn
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Lead -based Paint Hazard
The Environmental Health Unit sends Registered Environmental Health Specialists to
visit a lead- poisoned child's environment to identify hazards, interview parents and
take environmental samples. These specialists investigate, evaluate and analyze lead
hazards, including source identification. The inspectors may issue corrective notices to
eliminate lead hazards as well as monitor home repair, corrective notices, or compliances.
The Epidemiology Unit maintains a lead poisoning database, which includes
demographic, geographic, laboratory and clinical information on all reported
screenings, and identified cases throughout the County. The Epidemiology staff plans,
directs, and evaluates original epidemiological studies, analyzes lead poisoning data
and responds to data requests from interested parties.
Finally, the Health Education Unit maintains a library of information on lead and lead
poisoning prevention, available to the community in several languages. The unit also
provides presentations, information booths, and trainings upon request.
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Table 10-3
More Local Sources for Information
on Lead -Based Paint
Air Quality Management District
Hazardous Waste Roundups
To report the spread of lend dust due to
Disposal of hazardous materials (i.e, paint, oil.
construction
construction
batteries, etc.) w>w.ladpw.orelepd
vonstru
1- 800 -288 -7664
1-888-CLEAN-LA; 1-888-253-2652
California Department of Health Services
Healthy Families
Occupational Lead Poisoning Prevention
State's low -cost health insurance for children ages 1 -19
Program
wtivw.healthvfamilies.ca.
(510) 622 -4332
1 -800- 880 -5305
National Safety Council/Environmental Health
National lead service Provider's Listing System
Center
[URL: ww•w.leadlistine.org]
[URL: www.nsc.org/ehc /lead.htm]
Child Health and Disability Prevention Program
Lead - Related Construction Information Line
CHDP - provides no cost health examination, including
List ofcertified workers and contractors
blood lead test, for children under 21
wmv.dhs.caPoi /childlead
1"t rg. dhs .cahwnet.QOV /Dcfh/cros/ht7nUchdy. htm
1 -800- 993 -CHDP ;1- 800 - 993 -2437
1- 800 - 597- LEAI);1- 800 -597 -5323
Consumer Nutrition Information Center
Office of Lead Hazard Control/Department of
Suggestionsforhealthvfoodsuww .eaadeht.orn
Housing and Urban Development
1- 800 - 366 -1655
[URL: www.hud. og vilea'J
Consumer Product Safety Commission Hotline
Medi -Cal
For information on lead in consumer products
This program provides no -cost or low -cost medical
AMWw sc ¢OV
care for families. For more information, call
1 -800- 638 -2772
mtwmedi- cal.ca.QOV 1 -888- 747 -1222
Environmental Protection Agency EPA -
National Lead Information Center Information on
Home repairs and renovations wzvw.epa.eov
protecting children, during home repairs and renovations
1 -415 -744 -1124
wzuryv.epa ove Ileac(
I- 800- LEA1)+YI; 1- 800424 -LEAD
EPA's Safe Drinking Water Hotline
Occupational Lead Poisoning Prevention Program
Information on lead in drinking water
Lead concerns in the workplace
wanv.fVa.,govlOGlf'DW 1- 800426 4791
www.dhs.cahwneteovlohblolppp 1 -510- 6224332
Poison Control System
CDC Childhood Lead Poisoning Prevention Program
For Poison Emergencies hwj calpoison.og
[ URL: www.cdc.yov /nceh/leadr'leadhtmJ
1 -800- 876 -4766
National Center for Lead Safe Housing
URL: www3cadsafeh2usin¢.ore/1
City of Newport Beach X -9 7005 —7009 Consolidated Plan
Rev. 4112105
1�1
Housing and Community Development Delivery System
XI. HOUSING AND COMMUNITY DEVELOPMENT DELIVERY SYSTEM
A. Housing and Community Development Delivery System
State agencies, local governments, nonprofit organizations, businesses, and financial
institutions are all vital players in Newport Beach's housing and community
development delivery system. This section examines the effectiveness of the housing
and community development system in the City and possible strategies to enhance
collaboration.
Institutional Structure:
The institutional structure is comprised of the private, public, and nonprofit
organizations that help carry out the Consolidated Plan for the City. The
relationships and interaction of these organizations as they deliver programs and
undertake activities is known as the City's housing and community development
delivery system.
1. Lead Agency
The City's Planning Department is the lead agency for the Consolidated Plan. It
administers the City's CDBG program. As the City's affordable housing and
community development agency, its intent is to build better lives and better
neighborhoods by strengthening communities, empowering families, supporting
local economies, and promoting individual achievement.
The Planning Department plans, administers, implements, and monitors projects
funded through the Citys formula entitlement funds from the U.S. Department of
Housing and Urban Development. These entitlements include the Community
Development Block Grant (CDBG) program. As the recipient of these funds, the
Planning Department is tasked with the responsibility for developing and carrying out
the Consolidated Plan
The City uses these and other funds to provide decent housing, create a suitable living
environment, and expand economic opportunities throughout the City.
2. Community Development Block Grant (CDBG) Program
The CDBG program was initiated by the Housing and Community Development Act
of 1974. Although the Act has been amended in recent years, the primary objective
continues to be the development of viable urban communities by providing decent
housing, a suitable living environment, and expanding economic opportunities,
principally for persons of low and moderate - income.
Each year the City program is designed to achieve this primary objective. Regulations
governing the Program also require that each activity undertaken with CDBG funds
meet one of three broad national objectives as follows:
Benefit low - and moderate- income persons.
Aid in the prevention or elimination of slums and blight.
City ojNewport Beach X1-1 2005 — 2009 Consolidated Plan
Rev.4 112105 5
I�
Housine and Community Development Delivery Svstem
■ Meet other community development needs having a particular urgency.
The City certifies that its Annual Action Plan has been designed to give maximum
feasible priority to activities, which meet the first and second objectives above.
Additionally, the City certifies that no less than 70 percent of the CDBG funds
received, over a three -year certification period, will be designed to benefit low- and
moderate - income persons.
3. Home Investment Partnerships Program (HOME)
On November 28, 1990, the Cranston - Gonzalez National Affordable Housing Act
was enacted (P.L. 101 -625). The HOME Investment Partnerships (HOME) program
was created as a result of this legislation. It affords states and local governments the
flexibility to fund a wide range of low- income housing activities through housing
partnerships among states, localities, private industry, and nonprofit organizations.
This program provides federal funds for the development and rehabilitation of
affordable rental and homeownership housing, replacing a series of programs
previously funded by HUD. Funds are allocated by HUD to qualifying "Participating
Jurisdictions" (PJs), such as the County of Orange, based upon a variety of
demographic and housing factors. With the exception of a waiver granted for disaster -
related funding, HOME funds are subject to a 25 percent match of non - federal funds
or in -kind contributions. The Orange County Department of Housing and
Community Development administers the HOME program for various Orange
County cities, including Newport Beach, as well as unincorporated areas of the
County.
4. Homeless Services Programs (Including ESG Program)
The Emergency Shelter Grant (ESG) program began on November 7, 1989, as part of
the Stewart B. McKinney Homeless Assistance Act. The program is designed to
improve the quality of existing emergency shelters, make available additional
emergency shelters, help meet the cost of operating emergency shelters, and provide
essential social services to homeless individuals. The ESG program ensures that the
homeless have access not only to safe and sanitary shelter but also to supportive
services and other kinds of assistance needed to improve their situations. The program
is also intended to reduce homelessness through the funding of preventive programs
and activities.
Orange County's homeless system of care is comprised of a network of public,
private, faith- based, for - profit, and non -profit service providers. County agencies such
as the County Executive Office, Health Care, Social Services, Community Services,
and Housing and Community Development provide direct services for the homeless
and/or significant resources for agencies serving the homeless. The region's
municipalities also provide substantial resources for services that assist the homeless
and those at risk of becoming homeless. The County's non -profit community is a
critical player in the current Continuum of Care system. Hundreds of agencies
throughout the County provide programs ranging from feeding the homeless on the
street to creating permanent supportive housing opportunities. These services are
City of Newport Beach X1 -2 2005 — 2009 Consolidated Plan
Rev.4112105
l�
Housing and Community Development Delivery System
available to homeless families with children and single men and women. The
County's non -profit community also serves special need populations, such as victims
of domestic violence, veterans, the disabled and youth.
In 1998 the Orange County Board of Supervisors approved the establishment of the
Continuum of Care Leadership Cabinet. The mandate of the Leadership Cabinet is to
provide direction to the Director of Housing and Community Development and to
assist in the development and maintenance of the countywide comprehensive
continuum of care planning process for the delivery of services to homeless men,
women, and children. The goal of the Leadership Cabinet is to coordinate the
involvement of three primary groups: private industry, homeless experts, and the
public sector in the continuum of care planning process. The Leadership Cabinet is
also responsible for working with H &CD staff to design the planning process for each
year's Supportive Housing Program homeless competition and to provide direction
on the organization of the application review and evaluation processes.
Programs and initiatives operated Orange County Continuum of Care fall into the
following categories:
Homelessness Prevention
Outreach
Emergency Shelter
Transitional Housing
Permanent Supportive and Permanent Affordable Housing
Service Coordination
Orange County Continuum of Care funds programs according to the need and in
keeping with the Continuum of Care. The Orange County Department of Housing
and Community Development administers the ESG program for various Orange
County cities, including Newport Beach, as well as unincorporated areas of the
County.
5. Orange County Housing Authority (OCHA)
The Orange County Housing Authority (OCHA) is a division of the County's
Housing and Community Services Department that administers rental assistance
programs throughout Orange County. Currently, OCHA helps more than 9,700
households through tenant based rental assistance programs. Persons receiving
assistance include those over 62 years of age or who have disabilities, and low -
income households residing in 31 participating cities and the unincorporated areas of
Orange County. According to the OCHA's 2004 Annual Plan, 105 of these assisted
households reside in Newport Beach. Such programs allow income - qualified
households to receive rental assistance in a variety of apartments, houses, and other
rental dwellings owned by private landlords. Funding for tenant -based rental
assistance programs is provided by the Department of Housing and Urban
Development (HUD).
City of Newport Beach h7 -3 2005 — 2009 Consolidated Plan
Rev.4 112105
1� I
Housing and Community Development Delivery System
6. Other Housing and Community Development Organizations
Other public agencies, for -profit entities, and nonprofit organizations all play a part in
the provision of affordable housing and community services in the City. The City
strives to coordinate with these organizations in the development of the Consolidated
Plan and in the delivery of the programs covered by it.
City Departments
City staff coordinates with various City departments to carry out the City's housing
and community development strategies and to allocate CDBG funds to provide
funding support to achieve community development goals. These departments
include:
• Planning Department
• Public Works Department
• Parks and Recreation Department
Organizations
Major players in the City's institutional structure for housing and community
development include nonprofit organizations. The City contracts directly with a
number of nonprofit community -based organizations to provide public services to
City residents, including a wide range of programs for persons with special needs,
homeless, seniors, youth, and other low- and moderate - income populations. For
production of affordable housing, the City supplements its own efforts by entering
into partnerships with private sector and nonprofit developers and housing
development corporations.
Additionally, the City participates in die Orange County Continuum of Care planning
process for the delivery of services to homeless men, women and children.
Orange County Housing Authority — administers the public housing units and
the Section 8 rental assistance programs in Newport Beach;
Orange County Area Housing & Finance Agency (OCHFA) — Newport
Beach is a member of the Orange County Area Housing & Finance
Agency (OCHFA), which sponsors the Public Lease - Purchase Home Ownership
Program in the member cities. Through its Public Lease - Purchase
program, OCHFA offers moderate- income home buyers offers a mortgage for
100% of the purchase price of the home with no closing costs. During the lease
period the home is owned by a non - profit governmental agency.
Southern California Home Financing Authority (SCHFA) - a joint powers
authority between Los Angeles and Orange Counties formed in June 1988 to
issue tax - exempt mortgage revenue bonds for low and moderate income First
Time Homebuyers. The program is administered by the Community
Development Commission of The County of Los Angeles and County Executive
City of Newport Beach N-4 2005 — 2009 Consolidated Plan
Rev.4 112105 '^
II
Housinz and Community Development Delivery System
Office of the County of Orange on behalf of the SCHFA. The Authority has
helped thousands of individuals and families.
California Department of Health Services (CDHS), Childhood Lead
Poisoning Prevention Branch ( CLPPB) - complies information, identifies
target areas and analyzes information to design and implement a program of
medical follow -up and environmental abatement to reduce childhood lead
exposure. Programs operated by the CLPPB include: 1) accreditation of training
providers and certification of individuals involved in construction related
activities; 2) reporting of elevated blood lead levels by medical laboratories; 3)
lead exposure screening; 4) real estate disclosure of known LBP hazards upon
sale of property; and 5) lead related activities in construction work, as well as
other various other childhood and occupational lead poisoning prevention
programs.
7. Faith -Based Organizations
Recently, there has been great recognition and value given to the contributions of
faith -based organizations (FBOs) in providing social services. In the past, FBOs have
been particularly visible in providing food, clothing, and shelter to individuals and
families in need. More recently. however, faith -based organizations have also taken
on a (new) role in helping encourage housing and community development; consider.
fourteen percent of community development corporations (CDCs) are faith -based.
Moreover, the significance of faith based organizations in the United States is
underlined by President George Bush's creation of the Office of Faith -Based and
Community Initiatives. This initiative expands the role of faith based organizations,
by requiring Cabinet agencies to create their own Center for Faith -Based and
Community Initiatives to work in tandem with the White House OFBCI, to make
federal grants available to Faith -Based and Community Initiatives nationwide.
Agencies include the following Federal Departments: Health and Human Services;
Housing and Urban Development; Department of Labor; Justice; and Education.
B. Gaps in the Institutional Structure
Consolidated Plan requirements include an examination of how organizations in the
City that "deliver" housing and community development (called the institutional
structure). This examination includes identifying the gaps in the institutional
structure and developing strategies to address the gaps. Newport Beach can only
achieve its Comprehensive Plan goals and Consolidated Plan strategies if its
institutional structure is complete.
As the lead agency for the City of Newport Beach 2005 — 2009 Consolidated Plan,
the Planning Department desired to gain a better understanding of the gaps and
potential strategies needed for collaborative long -term planning. The ideas of the
City's housing and community development organizations are crucial to an accurate
gaps analysis of the institutional structure. They are even more important to the
development and implementation of strategies to overcome the gaps. Therefore
City of Newport Beach XI -5 2005 — 2009 Consolidated Plan
Rev.4 112105 q
�� 1
Housing and Community Development Delivery System
interviews and town meetings included questions or comments concerning the
current gaps in the local delivery system for housing and community development.
They also discussed preliminary components of strategies for filling the most
troublesome gaps.
Gap in the Institutional Structure: A missing component, such as an organization, a
relationship, a service, a project, or an activity.
1. Common Themes
Several primary themes and issues emerged from the Consolidated Plan process.
These themes and issues provide a good starting point in understanding the gaps in
the housing and community development delivery system. They also provide a
foundation for developing workable, collaborative strategies to fill the gaps.
a. Public Education Gap: The lack of knowledge among the public and lower
income clients arose as a common need. The most common gap cited was
knowledge of the available resources, services, and programs for lower
income people and persons with special needs. This lack of knowledge
occurred among clients, employers, and service providers.
b. Unmet Housing Needs: An urgent need for affordable housing, especially
supportive housing for lower income people and persons with special needs.
Under -served housing needs include persons with both substance abuse and
mental illness, including the dually diagnosed, persons needing assisted or
supportive living arrangements, and former offenders.
c. Need for More Services for Persons with Special Needs and the Homeless:
Such needs include mental health and substance abuse treatment services
and facilities, long -term care facilities and services for low- income persons,
transportation for the low- income elderly and low- income residents,
transitional housing with supportive services for homeless persons with
multiple diagnoses, and homeless shelters with services for children.
d. Comm unication/Coordination among Organizations: The lack of
communication between specific groups and the overall community of
service providers, such as the need for stronger relationships between all
types of organizations involved in housing and community development
(neighborhood groups, church groups, nonprofit agencies, and government
agencies). There are many reasons for this lack of communication and
coordination, such as the division of City programs and the division of
Federal, State, and local grant programs as a barrier. In addition,
confidentiality laws reduce information sharing between service providers
and contribute to a lack of good referrals.
City of Newport Beach XI -6 1005 —1009 Consolidated Plan
Rev.4 112105 U
Housing and Communi"evelooment Delivery System
C. Housing and Community Development Delivery System Strategy
As lead entity for Newport Beach's Consolidated Plan, the Planning Department's
focus on the institutional structure should be a broad strategy of coordination,
empowerment, and communication with the public, private, and nonprofit sectors.
D. Priority Strategy for the Housing and Community Development Delivery
System:
The City will implement the strategies outlined in the Administrative Strategies
Section of the Consolidated Plan, specifically the section under Development of
Institutional Structure in Section 13 — Strategic Plan, of the Consolidated Plan.
City offewport Beach
Rev. 4112105
X1-7
2005 — 2009 Consolidated Plan
`1'
.4nti- Pollen, StrateeY
X11. ANTI - POVERTY STRATEGY
A. Poverty in Context
The U.S. Census Bureau follows the Office of Management and Budget's Directive
14 to define poverty. It therefore uses a set of income thresholds that vary by family
size and composition to detect who is "poor." If the total income for a family or
unrelated individual falls below the relevant poverty threshold, then the family or
unrelated individual is classified as being "below the poverty level." The official
poverty definition counts money income before taxes and does not include capital
gains and noncash benefits (such as public housing, Medicaid, and food stamps).
Poverty is not defined for people in military barracks, institutional group quarters, or
for unrelated individuals under age 15 (such as foster children). They are excluded
from the poverty universe —that is, they are considered neither as "poor" nor as
"nonpoor."
Since this Housing and Community Development Plan covers programs designed to
help primarily low- income people and neighborhoods, it must also include an anti-
poverty component. By undertaking activities funded by the CDBG program, the
Planning Department supports the State's overall anti - poverty strategy of moving
low- income people to self - sufficiency. The Planning Department consults with
many public, private, and nonprofit organizations to help ensure that its goals,
programs, and policies for activities such as producing and preserving affordable
housing are effectively coordinated to best reduce the number of poverty level
families.
B. Analysis of Poverty in City
Poverty is the condition of having insufficient resources or income. In its extreme
form, poverty is a lack of basic human needs, such as adequate and healthy food,
clothing, housing, water, and health services. Even modest levels of poverty can
prevent people from realizing their goals and dreams.
Census data from the year 2000 indicates that 3,075 Newport Beach residents were
living in poverty in 1999, which is 4.4 percent of the population. This number
translates to 356 families, or 2.1 percent of the families in Newport Beach. Almost
19 percent of these families had a child under the age of 5 years old.
Although most of Newport Beach's households have higher incomes, a significant
number are living at or near poverty. The housing section stated that this division of
wealth has significant social consequences and implications for Newport Beach's
market segmentation, housing demand, and affordability.
Female headed households make up 47 percent of families living in poverty. More
than 51 percent of these families included a child under the age of 18; almost 27
percent of these families included a child under the age of 5.
City of Newport Beach M - -1 1005 -1009 Consolidated Plan
Rev.4111105
I1?-
Anti -Poverty Strateev
C. The State's Welfare -to -Work Program
The City's anti - poverty strategy and activities support the overall effort in the State
to move low- income families to economic self - sufficiency. The California
Department of Health and Social Services is the nexus of the State's welfare -to -work
program and is thus the lead anti- poverty agency in the State.
D. Existing Programs
In California, the primary programs for assisting families in poverty are CalWORKS,
Food Stamps, and Medi -Cal. Together, these programs combine to provide clients
with employment assistance, discounted food, medical care, child care, and cash
payments to meet basic needs such as housing and transportation. A short description
of each is provided below.
CaIWORKs
The California Work Opportunities for Kids (CalWORKS) program is a time - limited
program that provides financial assistance and Welfare -to -Work services to families
with children who are deprived of support or care due to the death, incapacity,
unemployment/underemployment, or continued absence of one or both parents.
Homeless Assistance is included in this program. CalWORKS is administered
following Federal and State regulations.
Food Stamps
The Food Stamp Program is a nutritional assistance program designed to help single
people and families with little or no income to buy food. Food Stamp benefits are
issued on an EBT Card that is used just like a bank card at most local food stores.
The Food Stamp Program is a Federal State funded program.
Medi -Cal
The Medi -Cal program pays for health care for certain needy residents of California,
including public assistance recipients. Medi -Cal is supported by federal and state
taxes. Pregnant women and children have been the focus of outreach efforts by the
State of California for enrollment in the Medi -Cal program.
General Relief
The County General Relief (GR) program provides loan assistance to indigent
individuals and families in temporary need of housing, food, and/or transportation.
General Relief is the only program that is totally funded, as well as administered, by
the County of Orange.
Child Care
The County operates a number of child care programs funded by the California
Department of Social Services or the Department of Education. These programs
provide child care payments to providers on behalf of CaIWORKs recipients in
approved work or training programs, former CalWORKS recipients, parents in child
City of Newport Beach AW -2 2005 — 2009 Consolidated Plan
Rev.4111105
��3
protective services cases, and the working poor. Payments are reimbursements for
child care provided and are paid directly to the provider.
Also available are services designed to treat persons suffering from substance abuse,
domestic violence, and mental illness. These programs are administered through the
County.
E. Anti- Poverty Strategy
The City's goal is to help families that are self - sufficient yet still at -risk to increase
their financial stability. The focus of the anti - poverty strategy is three -fold: (1) to
help these families accumulate assets, (2) to help these families address issues, such
as substance abuse and domestic violence, that may threaten the family's stability,
and (3) to provide these families with employment- related supportive services such
as child -care. This focus will be incorporated into the programs and policies
undertaken by the City as part of this Consolidated Plan.
1. Programs
The City has yet to finalize any specific programs at this stage in the
development of the Consolidated Plan. Any definite activities will be described
in detail in the City's Annual Action Plan. Potential programs may include:
Family Stability
• Counseling:
• Substance Abuse Services:
• Domestic Violence Services:
Employment Related Supportive Services
• Job Training
• Child Care
2. Policies
The City will fully comply with Section 3 of the Housing and Community
Development Act. Section 3 helps foster local economic development,
neighborhood economic improvement, and individual self - sufficiency. This
set of regulations require that to the greatest extent feasible, the City will
provide job training, employment, and contracting opportunities for low- or
very-low income residents in connection with federally funded housing and
public construction projects.
Public services funded through the Consolidated Planning process that
promote the self - sufficiency of families in poverty (extremely low- income)
will be encouraged.
City of Newport Beach XII -3 2005 — 2009 Consolidated Plan
Rev.4111105 Ili
When evaluating economic development aid packages and incentives
offered to firms in exchange for relocating to the City, the City will
incorporate a benchmark measure called the Stability Index when reviewing
the income level of potential jobs. The Stability Index determines the wage
required, based on family size and composition, a family needs to (A) meet
their basic needs without subsidies of any kind and (B) save 5% of their
income. This index is based on the Self- Sufficiency Standard developed by
Wider Opportunities for Women.
Table l2 -1
Stability Index
City of Newport Beach XII - -4 2005 — 2009 Consolidated Plan
Rev.4111105 l5
Stability Index
One Adult
One Adult, One
Preschooler
One Adult, One
Pre-Schooler, One
School -A te Child
Two Adults, One Pre-
Schooler, One school -
A e Child
Monthly
Costs
Costs
%
Costs
I %
Costs
%
Costs
%
Housing
$1,098
50%
$11098
31%
$1,317
29%
$1,124
23%
Child Care
$o
0%
$672
19%
$1,056
23%
SID%
22%
Food
$193
9%
$293
8%
$436
10%
$599
12%
Transportation
$266
12%
$273
8%
1 $273
6%
1 $523
11%
Health Care
$72
3%
$219
b%
$238
5%
$276
6%
Misc.
$130
6%
$244
7%
$297
7%
$339
7%
Taxes
$330
IS%
$525
IS%
$678
15%
$734
15%
Total
$2,199
100%
$3,498
100%
$4,521
100%
US%
100%
Savings (5%)
$110
5%
$175
5%
$226
5%
$245
5%
Wage Needed
Hourly-
1 $13.19
1 $20.99
$27.12
$14.69
Monthly
$2,199
$3,498
$4,521
$4,896
Pmnual
$26,387
$41975
$54,247
$58,746
Footnote: Hourly
wage for two adult household assumes both adults work forty hour work weeks.
City of Newport Beach XII - -4 2005 — 2009 Consolidated Plan
Rev.4111105 l5
XIII. STRATEGIC PLAN
The affordable housing and development needs of a community will always outweigh the
resources available to address those needs. Therefore, it is necessary for the city to
develop a strategy that will guide the use of available funds to the highest and best use
and toward meeting the most pressing needs. This Strategic Plan forms the basis for the
City's Consolidated Plan funding decisions for the next five years. The Strategic Plan
also details administrative strategies the City will pursue to meet the national goals of the
Consolidated Plan. This section is divided into three parts:
(A) Funding Strategies to Meet High- Priority Needs: This section discusses the strategies
the City will use as guidance when making funding decisions over the next five years.
(B) Strategies to Meet Specific Issues: This section discusses the programs and policies
the City will pursue to meet HUD- mandated priorities, such as the threat of lead -based
paint and impediments to fair housing.
(C) Administrative Strategies: This section discusses specific, administrative actions the
City will undertake over the course of the plan to improve service delivery and enhance
coordination with other service providers in the area.
A. Funding Strategy to Meet High - Priority Needs
The Funding Strategy serves as the basis of Consolidated Plan funding decisions for
the next five years (2005 - 2009). The city will only provide Consolidated Plan funds
to programs and projects that significantly contribute to the City's efforts to meet the
goals and objectives described below. The city prioritized needs based on the
information in the needs assessment and housing market analysis sections of this
plan. The city recognizes that priority needs may change over time and may need to
amend the funding strategies in the Consolidated Plan and Action Plans.
In addition to prioritizing among the different categories of need, the City will focus
CDBG assistance on specific target areas within its jurisdiction, specifically the
Balboa Peninsula. The ability to identify target areas within Newport Beach is
restricted based on the limited number of neighborhoods that qualify for assistance
under the CDBG regulations. Normally, at least 51% of the residents in a
neighborhood must be of low- and moderate- income in order for that neighborhood
to qualify for CDBG assistance. Under CDBG rules, "exception" cities that do not
have large populations of low- and moderate - income persons can lower the 51%
threshold percentage so that one fourth of the census tracts or block groups with the
highest percentage of low and moderate income persons qualifies for CDBG
assistance. Newport Beach qualifies as an "exception" community. Based on this
lowered threshold, the City has identified Balboa Peninsula as an eligible target area
and one that has a higher need of assistance than other neighborhoods.
City of Newport Beach
Rev.4 1I 1/05
A711-1
2005 — 2009 Consolidated Plan
I1(,P
The Funding Strategy identifies Newport Beach's funding priorities and strategies in
the following categories: affordable housing, homelessness, supportive housing, and
non - housing community development. For each high - priority need, the city proposed
a set of programs and policies to address the need and established measurable goals
for the five year period. This information is summarized in Table 13.1 at the end of
this section.
The high- priority needs are also identified in the HUD - prescribed tables in earlier
sections of this document, including the Priority Housing Needs Table (HUD Table
2A), Homeless Gaps Analysis Table (HUD Table IA), the Special Needs Table
(HUD Table 113), and the Priority Community Development Needs Table (HUD
Table 2B).
1. Affordable Housing Funding Priorities and Strategies:
a. Increase supply of housing units affordable to moderate- income households
through new construction.
b. Maintain existing level of Section 8 housing vouchers and rent - restricted
units within the City.
c. Ensure universal access to fair housing choice within the City.
2. Special Needs Funding Priorities and Strategies:
a. Increase accessibility of persons with disabilities to public facilities.
b. Improve supportive services for elderly residents.
c. Increase supportive services for persons suffering from substance abuse.
d. Increase supportive services for persons living with HIV /AIDS.
3. Homeless Funding Priorities and Strategies:
a. Preserve the supply of emergency and transitional housing.
b. Improve services for homeless persons and prevent those at -risk of
homelessness from losing their housing.
c. Improve services for women and children who are homeless because of
domestic violence.
4. Non - housing Community Development
a. Eliminate blight, blighting influences, and prevent the deterioration of
property.
b. Improve health and safety through rehabilitation of community facilities.
c. Preserve community infrastructure in order to provide economic
empowerment in targeted neighborhoods.
City of Newport Beach
Rev. 4111105
1711 -2
2005 — 2009 Consolidated Plan
10
B. Strategies to Address Specific Issues
The federal regulations that govern the Consolidated Plan require the City to address
community development issues that are common to all communities throughout the
nation, including impediments to fair housing, poverty, and the threat of lead -based
paint. This section describes the City's strategies to address these specific issues.
Impediments to Fair Housing
In conjunction with the development of this Consolidated Plan, the City has
partnered with other local jurisdictions and the Fair Housing Council of Orange
County to update the regional Analysis of Impediments to Fair Housing (AI). When
the updates are finalized, the City will include those updates into this section to
ensure that the City coordinates its efforts with the regional fair housing initiatives.
The current Al identifies the following impediments to fair housing:
1. Lending Practices: While data and study has not shown discrimination in
lending, lending efforts have not been proactive.
2. Insuring Practices: Some insurance companies may be targeting certain zip
codes for higher rates of denial or different terms and conditions for insurance
coverage.
3. Outreach and Education: A lack of a standard in the fair housing education
system may leave gaps in communities. In addition, some immigrant
populations may not be aware of the right to fair housing.
4. Public Policies/Programs: A lack of coordination among cities in the region in
regard to their planning activities may have an adverse effect on fair housing
efforts on a regional basis.
To combat these impediments and to work toward universal access to fair housing,
the City will partner with the Fair Housing Council of Orange County ( FHCOC) to
provide a variety of fair housing and tenant/landlord services. Services offered
include counseling and information on potential discrimination and landlord/tenant
problems, special assistance for ethnic minority and single- headed households,
bilingual housing literature and video -tape presentations, and housing assistance
counseling. The City will provide grant funding to FHCOC on an annual basis to
provide these services.
The City will also work with the property managers of rent - restricted housing
throughout the City to ensure these affordable units are managed in accordance with
fair housing law.
Anti- Poverty Strategy
The goal of the Anti- Poverty Strategy is to provide a coordinated offering of services
to help households rise out of poverty to a level of long -term, self - sufficiency. The
City's available funding sources are miniscule in comparison to other existing anti-
City of Newport Beach
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poverty programs. Given this, the City's efforts will seek to complement the existing
programs.
In California, the primary programs for assisting families in poverty are CaIWORKS,
Food Stamps, and Medi -Cal. Together, these programs combine to provide clients
with employment assistance, discounted food, medical care, child care, and cash
payments to meet basic needs such as housing and transportation. Also available are
services designed to treat persons suffering from substance abuse, domestic violence,
and mental illness.
While these programs have succeeded in weaning poor families off of the public
dole and assisted with entry into the job market, many of the families that find
employment remain poor. Jobs taken by former welfare recipients are often low
paying and have little room for advancement. In addition, as a recipient's income
increases, the cash assistance decreases. This prevents the family from saving any
income. While a family may achieve self - sufficiency, it will remain at -risk. A
sudden loss of income from unemployment, illness, or other personal crises would
push the family back into poverty and perhaps into homelessness.
Therefore, it is the City's goal to supplement the existing programs and help families
move to the next level of self - sufficiency. The City's anti - poverty strategy will focus
on moving families beyond mere self - sufficiency and to a level where it can
accumulate savings, establish a stable lifestyle, and rise above poverty. The
remainder of this section will discuss the programs and policies the City will pursue
over the next five years that will advance this purpose.
Programs
The City has yet to finalize any specific programs at this stage in the development of
the Consolidated Plan. Any definite activities will be described in detail in the City's
Annual Action Plan. Potential programs may include:
Micro - enterprise Loans: Creating a small business is a great source of potential
income and provides a high level of job satisfaction. Through a micro - enterprise
loan program, the City can provide technical assistance and accept a portion of the
risk normally associated with starting a new business.
Policies
The City will fully comply with Section 3 of the Housing and Community
Development Act. Section 3 helps foster local economic development, neighborhood
economic improvement, and individual self - sufficiency. This set of regulations
require that to the greatest extent feasible, the City will provide job training,
employment, and contracting opportunities for low- or very -low income residents in
connection with housing and public construction projects.
Firms that accept City contracts must adopt an affirmative hiring policy that gives
preference to participants in the county's Welfare to Work Program.
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When evaluating economic development aid packages and incentives offered to
firms in exchange for relocating to the City, the City will incorporate a benchmark
measure called the Stability Index when reviewing the income level of potential jobs.
The Stability Index determines the wage required, based on family size and
composition, a family needs to (A) meet their basic needs without subsidies of any
kind and (B) save 5% of their income. This index is based on the Self- Sufficiency
Standard developed by Wider Opportunities for Women.
Lead -Based Paint
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X)
emphasizes prevention of childhood lead poisoning through housing -based
approaches. This strategy requires the City to implement programs that protect
children living in older housing from lead hazards. To reduce lead -based paint
hazards, the City takes the following actions:
• Work with neighboring jurisdictions in a collaborative effort to secure
funding and provide low -cost training to testing and abatement contractors
and workers.
• Monitor the lead - poisoning data maintained by the Orange County
Department of Health Services.
• Educate residents on the health hazards of lead -based paint through the use of
brochures and encourage screening children for elevated blood -lead levels.
C. Administrative Strategies
In addition to strategies that will help guide funding decisions, the City has
developed administrative strategies to ensure that the planning process is one that
adapts to a changing environment and continually improves over time.
Administrative strategies include identifying and overcoming obstacles to meeting
community needs, developing the capacity and coordination of the local institutional
structure, and implementing a performance measurement and monitoring system.
Identifying and Overcoming Obstacles to Meeting Underserved Needs
Throughout the administration of the Consolidated Plan, the city must identify
obstacles to meeting underserved needs in the community and develop methods for
overcoming the obstacles. Affordable housing and community development projects
face a broad array of obstacles, ranging from residents opposed to new developments
in their neighborhoods to government policies and programs that have unintended,
adverse effects. Through the performance measurement process, the city will be able
to identify obstacles early on. Performance measurement is described later in this
section. Through the development of this plan, the City has identified three obstacles
to meeting underserved needs to date: (1) Regulatory barriers to affordable housing,
(2) the administrative cost of programs, and (3) lack of public service funding.
Below, the City has outlined strategies to overcome or mitigate these obstacles:
City of Newport Beach
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Regulatory Barriers to Affordable Housing: There is no litmus test that indicates
when a state or local policy is a regulatory barrier to affordable housing. Many local
laws and policies, such as conservation of open space, have direct and adverse
effects on affordability of housing but cannot be considered a barrier because they
are worthy goals. A policy, rule, process, or procedure is considered a barrier when it
prohibits, discourages, or excessively increases the cost of new or rehabilitated
affordable housing without sound compensating public benefits. The City will to
implement the following procedures and programs to reduce the adverse effects of
local policy on affordable housing:
Monitor all regulations, ordinances, departmental processing procedures, and
residential development fees to ensure these requirements do not excessively
constrain affordable residential development.
Continue to offer density bonus incentives for the development of affordable
housing pursuant to state density bonus requirements and the City's General Plan
Housing Element.
Partner with the Fair Housing Council of Orange County to provide tenant and
landlord counseling to ensure fair housing rights for Newport Beach residents.
Administrative Costs: The City incurs significant expense in staff hours for each
funded public service program administered in order to comply with all applicable
federal regulations and reporting requirements. To address this issue, the city will
limit the number of public service programs funded each year. The city will also
explore developing partnerships with neighboring grantees to conduct joint
monitoring and other collaborations that serve to lessen administrative burdens.
Lack of Public Service Funding: Per the federal regulations, the City may budget up
to 15 percent of its CDBG allocation to public service activities. Each year the city
receives applications and proposals from local public service providers for more than
the allowed amount. Priority will be given to proposals where funds will be used to
expand long -term service capacity and will not need future grant funds to maintain
that capacity.
Development of Institutional Structure
The city partners with a network of local service providers, advocacy groups,
neighboring jurisdictions, local developers and businesses, and other public agencies
to form the institutional structure that undertake affordable housing and community
development initiatives. It is essential that the efforts of these varying organizations
are coordinated in order to efficiently use the limited amount of resources available.
There are a number of existing networks and collaborations that help these varying
organizations work together, such as the Continuum of Care. Throughout the
duration of the Consolidated Plan, the City will continue to collaborate with partner
organizations and will survey the institutional structure for gaps or areas where
organizational capacity is insufficient to the community's need. Below is a
discussion of how the City currently partners with other agencies and strategies to
strengthen and improve these relationships.
City of Newport Beach W11 -6 2005 — 2009 Consolidated Plan
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Is\
Public Housing Authority:
The city is under the jurisdiction of the Orange County Housing Authority (OCHA).
OCHA is a distinct and separate entity from the City and the City has no controlling
influence over OCHA decisions or policy, including those related to hiring,
contracting and procurement. The Orange County Board of Supervisors acts as the
Board of Commissioners of OCHA and the Housing and Community Development
Commission serves as an advisory board. OCHA is a division within the county's
Housing and Community Services (HCS) Department.
There are no public housing developments within the city. Instead, the housing
authority provides affordable units in the city through the Section 8 rental subsidy
program. This program provides residents the ability to locate their own housing and
then pays for a portion of the rent to make the unit affordable to the resident.
The city will work with the housing authority to include the residents with Section 8
vouchers in the federally funded programs administered by the City, including any
homeownership programs. By moving these residents to homeownership, the
resident gains a higher level of self - sufficiency and begins to generate assets. In
addition, the rental subsidy voucher is available to serve another resident.
In addition, the city participates in the regional homeless coalition known as the
Continuum of Care. Please refer to the homeless needs section of this document for
more information.
Performance Measurement and Monitoring
To ensure that the federal funds are used correctly and efficiently, the City will
monitor its subrecipients and its own programs to track performance and to
document compliance with the relevant federal regulations.
Performance measurement is an important too] the city will utilize to ensure that
funded projects are effective at generating expected outcomes. Tracking performance
also helps staff determine if projects are administered correctly. It can help identify
problems and indicate where adjustments need to be made.
The performance measurement process includes goal formulation, resource
allocation, and program evaluation. The goals are set forth above in the Funding
Strategy. When the city seeks project proposals in preparation for each program year,
each proposed project will be rated according to its ability to meet the high- priority
needs and its potential contribution to meeting the City's goals. At the end of the
program year, city staff will analyze the productivity of each project in terms of costs
vs. benefits, timeliness, and quality. The results of this analysis will help the city
make adjustments in a project's structure and form a basis for future funding
decisions.
The city recognizes the value of monitoring the use of these public funds to ensure
all funded projects comply with applicable federal laws and regulations. The city will
budget a portion of each year's grant allocation to program administration that will
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pay for staff time and consultants to monitor all aspects of funded programs.
Monitoring will include the following review:
• Eligibility of proposed and actual uses of funds
• Eligibility of partnering organizations and contractors
• Environmental review
• Labor law compliance
• Relocation and displacement review and mitigation
The City will place an emphasis on assisting subrecipients with compliance. Some
subrecipients are not familiar with all applicable laws and regulations. To address
this, the city will host a pre -award training workshop to review guidance such as the
OMB circulars and necessary documentation requirements. Subrecipient attendance
is mandatory. Before entering into agreements with subrecipients, the city will
require proof of a financial review and other documentation that indicates a level of
professionalism and organization.
D. Goals, Strategies, and Objectives Matrix
1. The following tables summarize the City's five -year strategies and objectives in
relation to the national goals for the Consolidated Plan. The city will update this
table in each year's Annual Action Plan and annual performance report to reflect
actions and accomplishments. Such updates will allow citizens and other
organizations to track the city's performance.
City of Newport Beach
Rev.4 111105
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2005 — 2009 Consolidated Plan
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Monitoring Standards and Procedures
XIV. MONITORING STANDARDS AND PROCEDURES
A. Project Monitoring
Monitoring of the City's contractors and subrecipient partners is not just a regulatory
process or a fact - finding mission. Rather, it involves effective communication and
cooperative, problem - solving relationships between the City's Planning Department
and its contractors /subrecipients.
What is a Subrecipient?
A subrecipient is an organization receiving CDBG funds from the City of Newport
Beach. The City's Planning Department monitors all CDBG programs. Each
program requires a written agreement between the recipient and the subrecipient.
The requirements demand that the agreement remain in effect throughout the period
that the subrecipient has control over funds. In addition, regulations prescribe the
provisions that the agreement must contain. These provisions include a statement of
work (description of work, budget, and time schedule); records and reports, program
income, uniform administrative requirements, other program requirements such as
fair housing, labor, displacement, employment opportunities, lead -based paint,
debarred contractors, conflict of interest, restrictions for certain resident aliens (as
described in 24 CFR Part 49); provisions for Community Housing Development
Organizations, religious entities, the Architectural Barriers Act, and the Americans
with Disabilities Act.
1. Project Monitoring Process
When it awards a grant, the Department develops an individual monitoring
schedule for each contractor /subrecipient that includes the following items:
• Desk monitoring
• Performance reports
• Annual onsite reviews
These three items combine to provide a clear and timely picture of each
contractor /subrecipient's progress. The following narrative explains each of
these three items in more detail.
Desk Monitoring
Planning Department staff reviews copies of case files to ensure complete and
accurate documentation regarding the following items:
• Client eligibility
• Property eligibility
• Appropriate funding levels for the activity
• Compliance with all program requirements (i.e. environmental review)
City of Newport Beach X7V -1 2005 — 2009 Consolidated Plan
Revision 4112105
Monitoring Standards and Procedures
Performance Reports
The City's Planning Department requires performance reports so it can assess a
project's progress and better ensure timeliness. For capital projects and public
service grants, reports are required on a quarterly basis. Housing program
reports are obtained based upon specifics of the programs' operations.
Annual Onsite Reviews
The Planning Department, as appropriate, also provides annual on -site reviews
of a project so it can assess capabilities of staff and review case files.
These three items combine to provide a clear and timely picture of each sub -
recipient's progress. For housing projects, the Planning Department has
additional monitoring procedures that provide the following assurances:
• Ensure consistency with primary objective —not less than 70 percent of
CDBG funds used during the program year must be for activities that
benefit low- and moderate- income persons.
• Ensure each activity meets the criteria for one or more of the national
objectives.
• Compliance with all other regulatory eligibility requirements for each
activity.
• Compliance with the Consolidated Plan regulations regarding displacement.
• Compliance with all other applicable laws and program requirements.
• Ensure production and accountability.
Evaluate organizational and project performance.
The Planning Department achieves success through:
• Pre -award screening, risk assessment, and orientation.
• Strong written agreements.
• Performance standards and program objectives.
• Defined monitoring visits for each subrecipient partner: quarterly, semi-
annually, and/or annually.
Monitoring Staff
The Planning Department periodically reports on the progress of each project.
The Department's staff has the following monitoring duties:
• Oversee the planning and budgeting process to ensure that projects and
programs are consistent with the Consolidated Plan's identified high- and
possibly medium -priority objectives and grant requirements. Staff will also
provide technical guidance regarding Affirmative Marketing and Fair
Housing practices.
City ofNewpon Beach XIV -2 2005 — 2009 Consolidated Plan
Revision 4112105 ��
1
Monitoring Standards and Procedures
• Provide technical guidance with each subrecipient partner regarding:
program structure, income requirements, and document compliance. Staff
will review the City's monthly expenditure reports. At a minimum, staff
will perform quarterly drawdowns in HUD's Integrated Disbursement and
Information System (1D1S) against the appropriate grant. For 1D1S, staff
will gather quarterly program statistical reports from the subrecipient
partners and update all necessary fields from setup to completion of each
project and activity. Regular updating and draws will ensure meeting the
CDBG timeliness deadline. As needed, staff will perform environmental
reviews and Davis Bacon monitoring.
• Review the invoices from each subrecipient and ensure timeliness with
expenditures.
Provide technical guidance regarding all housing construction, demolition,
and rehabilitation projects ensuring the correct number of units, timeliness
in build -out, and approval of payments. For new construction, ensure
compliance with all applicable local codes, ordinances, and zoning
ordinances at the time of project completion.
Provide monitoring orientation with all subrecipient partners and establish
monitoring visits. The monitoring orientation includes the timing for
monitoring visits. Subrecipient partners without problems or significant
findings receive annual or semi - annual monitoring visits, while new
subrecipients and subrecipients with significant problems or complex
projects receive quarterly visits.
Community Based Organizations
Community -Based organizations (CBOs) are funded for a wide variety of
CDBG funded activities, especially public services. However, their experience
and training in implementing these activities in compliance with applicable
statutory and regulatory requirements vary widely.
In addition, some projects are a one -time City effort while others are ongoing
activities. Based on this diversity, the City has determined that some of these
projects can represent the highest potential for risk, while others represent a very
low risk. Therefore, completed projects will be candidates for the full range of
monitoring tools. Monitoring of CBOs has been augmented by mid -year
technical assistance visits that are provided to every CBO in an effort to enhance
programmatic compliance. Further, ongoing CBO projects receive annual on-
site monitoring visits.
B. Consolidated Plan Monitoring
The Planning Department understands that monitoring the Consolidated Plan and the
annual activities must be carried out regularly to ensure that statutory and regulatory
requirements are met and that, where appropriate, information submitted to HUD is
correct and complete.
City of Newport Beach XYV - -3 2005 — 2009 Consolidated Plan
Revision 4112105
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Monitoring Standards and Procedures
To ensure that the City's CDBG program further meets the Consolidated Plan goals,
the Planning Department incorporates the Consolidated Plan's strategies, objectives,
and activities into its work plan. The Planning Department will measure its
achievement of Consolidated Plan goals by the same standards used to evaluate all
programs and activities.
The Planning Department will appraise its diverse operations and controls and
determine whether: risks are identified and reduced; acceptable policies and
procedures are followed; established standards are met; resources are used efficiently
and economically; and ultimately, its objectives are achieved.
The Planning Department prepares documentation and reports as required by HUD,
including the Consolidated Annual Performance and Evaluation Report (CAPER).
Using a substantial citizen participation and consultation process, the CAPER
describes each year's performance regarding Consolidated Plan strategies,
objectives, actions, and projects
Monitoring Strategy
As the lead agency for the CDBG programs, the Planning Department is refining
monitoring procedures to ensure that projects have measurable outcomes. This
refinement will allow assessment of progress toward the specified goals and
objectives of the projects, as well as ensuring long -term compliance with all
applicable program regulations and statutes. The Planning Department will publish
any proposed significant changes to monitoring standards and procedures in a future
Annual Action Plan so that citizens and grant recipients may comment on those
changes.
City of Newport Beach XIV -4 2005 — 2009 Consolidated Plan
Revision 4112105 o
XV. LEVERAGING
A. Federal Resources
Funds from the U.S. Department of Housing and Urban Development (HUD), which
operates in excess of 100 programs and a variety of other Federal sources are
available to address the Consolidated Plan's priority needs, such as grants and other
revenues that provide funding to Newport Beach or other organizations within the
City.
1. Homeless Programs — The Continuum of Care
The Continuum of Care is a set of three competitive programs based on the law
of the McKinney - Vento Homeless Assistance Act to address the problems of
homelessness in a comprehensive manner in concert with other federal agencies.
a. Supportive Housing Program (SHP)
SHP helps develop housing and related supportive services for people
moving from homelessness to independent living. Program funds help
homeless people live in a stable place, increase their skills or income, and
gain more control over the decisions that affect their lives. Eligible
applicants include States, local governments, other government agencies
(such as public housing agencies), private nonprofit organizations, and
community mental health associations that are public nonprofit
organizations. After HUD publishes a Notice of Funding Availability
(NOFA) for Continuum of Care Homeless Assistance in the Federal
Register, applicants must submit specific information about a proposed
project, along with their Continuum of Care application. Each application
must include a certification that the project is consistent with the
Consolidated Plan of the jurisdiction where each proposed project is found.
b. Shelter Plus Care (S +C)
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Rev.4 112105
Shelter Plus Care (S +C) provides rental assistance that, when combined
with social services, provides supportive housing for homeless people with
disabilities and their families. The program allows for a variety of housing
choices such as group homes or individual units, coupled with a range of
supportive services (funded by other sources). Grantees must match the
rental assistance with supportive services that are at least equal in value to
the amount of HUD's rental assistance. States, local governments, and
public housing agencies may apply for Shelter Plus Care grants.
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2005 — 2009 Consolidated Plan
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c. Single Room Occupancy Program (SRO)
The Single Room Occupancy (SRO) Program provides Section 8 rental
assistance for moderate rehabilitation of buildings with SRO units- single-
room dwellings, designed for the use of an individual, that often do not
contain food preparation or sanitary facilities. A public housing authority
snakes Section 8 rental assistance payments to the landlords for the
homeless people who rent the rehabilitated units. SRO units are less
expensive to rent than regular apartments, so they often serve as the only
affordable housing option for many low- income individuals and homeless
persons. Such units are in short supply, however, since they yield negligible
profits for building owners. Public housing agencies and private nonprofit
organizations may apply. Nonprofit organizations must subcontract with
public housing agencies to administer the rental assistance.
2. Supportive Housing for the Elderly (Section 202):
This competitive Federal program funds nonprofit organizations to develop
housing designed to accommodate the special needs of elderly persons and
provide a range of services tailored to their needs. Assistance is in the form of
capital advances and rental assistance. Recipients can use the funds for
acquisition, rehabilitation, new construction, rental assistance, and supportive
services. Private nonprofit sponsors apply directly to HUD in response to a
Notice of Funding Availability (NOFA) published in the Federal Register each
fiscal year. Applications must be submitted to the Los Angeles HUD field
office. Awards are usually announced in September.
3. HUD Assisted Living Conversion Program
This program provides nonprofit owners of eligible developments with a grant
to convert some or all of the dwelling units in the project into an assisted living
home for the frail elderly. The state must license and regulate the assisted living
home. This program provides funding for the physical costs of converting some
or all of the units of an eligible development into an assisted living home,
including the unit configuration, common and services space, and any necessary
remodeling, consistent with HUD or state statute /regulations (whichever is more
stringent). There must be sufficient community space to accommodate a central
kitchen or dining facility, lounges, recreation, and other multiple -areas available
to all residents of the project, or office /staff spaces. The owners either directly or
through a third party must provide funding for the supportive services. Only
private nonprofit owners of Section 202, Section 8 project -based housing
developments that are designated primarily for occupancy by the elderly for at
least five years are eligible for funding. A private nonprofit of an
unused /underutilized commercial property is also eligible. For more
information, contact the Los Angeles HUD Office at 213/894 -8000.
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4. Supportive Housing for Persons with Disabilities (Section 811):
This competitive Federal program funds nonprofit organizations to develop
housing designed to accommodate the special needs of persons with disabilities.
It also provides supportive services that address the individual health and other
needs of such persons. Houses may be group homes, independent living
facilities, or intermediate care facilities. Assistance is in the form of capital
advances and rental assistance. A set -aside exists under this program for persons
disabled due to HIV. Eligible applicants are private nonprofit organizations.
Private nonprofit sponsors apply directly to HUD in response to a Notice of
Funding Availability (NOFA) published in the Federal Register each fiscal year.
Applications must be submitted to the Los Angeles HUD field office. Awards
are usually announced in September.
5. Housing Opportunities for Persons with AIDS (HOPWA):
This program provides both entitlement and competitive grants for housing
assistance and supportive services for low- income persons with AIDS and
related diseases. It can be used for acquisition, rehabilitation, conversion, lease,
repair of facilities, new construction, project -based or tenant -based rental
assistance, planning, support services, operating costs, short-term payments
(rent, mortgage, utility), and administrative expenses.
6. HUD Service Coordinators in Multi - Family Housing:
The purpose of this Service Coordinator program is to allow non - profit
multifamily housing owners to assist elderly individuals and people with
disabilities living in HUD- assisted housing and in the surrounding area to obtain
needed supportive services from the community, in order to enable them to
continue living as independently as possible in their own homes. Eligible
programs include HUD Sec. 202, 221/236, and Section 8: Project -based
assistance. The number of units in the property and a 1:5 staffing ratio
determines the maximum grant. Service Coordinator grants are awarded
competitively each year, with priority going to Assisted Living Conversion
Program sites. For more information, contact the Los Angeles HUD Office.
7. Emergency Food and Shelter Program:
The Emergency Food and Shelter Program, formerly known as FEMA, is
another source of Federal formula funds that are awarded annually to local
jurisdictions to aid the homeless and near homeless. With the exception of major
shelter development, the eligible activities for this program are essentially the
same as ESG (i.e. essential services, shelter operating support and homeless
prevention.) Funds are generally distributed through local United Way.
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8. Low - Income Housing Preservation Program:
This competitive program provides financial incentives to retain subsidized
housing projects when Federal assistance is expiring. The owner may apply for
incentives or sell to another entity that will maintain low- income affordability
restrictions.
9. VA Homeless Providers Grant and Per Diem
The Veteran's Administration's Homeless Providers Grant and Per Diem
Program is offered annually, as funding permits, by the Department of Veterans
Affairs Health Care for Homeless Veterans Programs to fund community
agencies providing services to homeless veterans. The purpose is to promote the
development and provision of supportive housing and/or supportive services
with the goal of helping homeless veterans achieve residential stability, increase
their skill levels and/or income, and obtain greater self - determination. Only
programs with supportive housing (up to 24 months) or service centers (offering
services such as case management, education, crisis intervention, counseling,
etc.) are eligible for these funds. The program has two levels of funding: the
Grant portion and the Per Diem portion. Currently grants of up to 65 percent of
the project are awarded for the construction, acquisition, or renovation of
facilities or to purchase vans to provide outreach and services to veterans. The
program may provide partial operating funds for programs through per diem
payments. Priority in awarding the Per Diem funds goes to the recipients of
Grants. Non -Grant programs may qualify if they meet these criteria: (1) at least
75 percent of those receiving supportive services are veterans, and (2) provide
supportive housing or a homeless service center.
10. Lead -Based Paint Abatement Program:
This program provides competitive grants to State and local governments for the
development of cost effective community strategies for lead -based paint
abatement. Recipients may use the funds for rehabilitation, planning and
operating costs. Funding match is required for this program.
11. Surplus Housing to Assist the Homeless:
This program leases suitable Federal properties, rent free, to organizations
serving the homeless. The organizations must pay operating and any
rehabilitation and/or renovation costs.
12. Section 108 Loan Guarantee (Section 108):
Through Section 108, HUD guarantees notes issued by units of general local
government. Funds finance economic revitalization and development activities
that include housing and rehabilitation of privately owned buildings for
residential purposes; expansion of for - profit businesses; financing and
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rehabilitation of low- income and public housing; acquisition, construction, or
rehabilitation of neighbor -hood and community facilities; site improvement on
community-owned land leased to a developer for a commercial or industrial
development project; site development; purchase of land or buildings for
economic development; and infrastructure development that includes street
reconstruction and /or sewer system repairs.
13. Community Services Block Grant (CSBG):
This program can fund activities to implement anti - poverty activities such as
housing counseling, emergency assistance and other supportive services.
14. Youthbuild:
This program provides assistance for activities and services to assist
economically disadvantaged youth to obtain education and employment skills
and to expand the supply of permanent affordable housing. It may be used for
planning grants or implementation grants that may be used for architectural and
engineering work, acquisition, rehabilitation, construction, relocation,
administrative costs, and education and job training services. Activities may also
include counseling, leadership skill development, support services, wages,
stipends and benefits to participants, operating expenses, replacement reserves,
legal fees, and training and technical assistance for the applicant.
15. Community Outreach Partnership Center (COPC) Program:
This HUD program provides funding for universities to become more involved
in community development activities.
16. Department of Energy:
The U.S. Department of Energy provides funds to carry out weatherization and
energy assistance programs for low- income homeowners and tenants.
17. Brownfields Economic Development Initiative (BEDI) Grants:
BEDI grants target Economic Development Initiative funds to Brownfields
projects. BEDI grants are made to local governments for use in supporting
brownfield redevelopment activities and projects financed in whole or in part
with Section 108 loan guarantees.
18. Economic Development Initiative (EDI):
The Economic Development Initiative provides grants to be used in tandem with
Section 108 guaranteed loans for economic revitalization projects. These grants
will enhance the viability of such projects (through interest rate subsidies and
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debt service /operating reserves) and increase the likelihood that the Section 108
loans can be repaid from project revenue.
19. HOPE VI (Public Housing Revitalization)
The HOPE VI (Public Housing Revitalization) Program was developed as a
result of the National Commission on Severely Distressed Public Housing. The
Commission recommended revitalization in three general areas: physical
improvements, management improvements, and social and community services
to address resident needs. Any public housing authority (PHA) that operates
public housing units with severe problems -such as crime, maintenance, and
safety problems is eligible to apply for HOPE VI. HOPE V1 permits
expenditures for the capital costs of demolition, construction, rehabilitation and
other physical improvements, development of replacement housing, planning
and technical assistance, and planning and implementation of self - sufficiency
programs. It encourages PHAs to seek new partnerships with private entities to
create mixed - finance and mixed - income affordable housing that is radically
different from traditional public housing "projects." PHAs administer the
program, and can use the grants in conjunction with modernization funds or
other HUD funds, as well as municipal and State contribution, public and private
loans, and low- income tax credit equity. While most of the funds are to be used
for capital costs, a limited amount may be used for self - sufficiency programs.
Appropriations are distributed through an annual national competition. PHAs
respond to a Notice of Funding Availability (NOFA) published in the Federal
Register by submitting an application to HUD. Each year's NOFA and
application kit are automatically mailed to each eligible PHA upon publication.
20. Federal Tax Credit and Tax Exempt Programs
The U.S. Department of the Treasury and the Internal Revenue Service oversees
several useful and important Federal housing and related programs. Most of
these programs are administered by State agencies.
a. Low Income Housing Tax Credits
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Rev. 4112105
The Low Income Housing Tax Credit Program (L1HTC) is an Internal
Revenue Service program (1RC Section 42) that provides federal income
tax credits to owners of rental housing where a number of units are set -aside
for low and moderate - income families. The California Tax Credit
Allocation Committee (TCAC) administers the Federal, as well as a State,
Low - Income Housing Tax Credit Program (see State programs for a
discussion of the State Low - Income Housing Tax Credit Program. Under
the Program, owners "sell" the tax credit to investors and use the proceeds
to support the development cost of the project. Developments that are
financed with the proceeds of tax - exempt bonds may also receive federal
tax credit (See Tax- Exempt Private Activity Bond Program). In this
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2005 — 2009 Consolidated Plan
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instance, the developer /owner of a tax - exempt development must apply to
TCAC and must conform to the federal and state statutory and regulatory
requirements, but there is no annual "cap" on the amount of credit that may
be awarded by the state to such developments. The credit available is based
on approximately 4% (instead of 9 %) of the "qualified basis" of the
development.
b. Tax - Exempt Private Activity Bond Program
The Tax Exempt Private Activity Bond Program is an Internal Revenue
Service program (IRC Section 146) that permits the issuance of tax - exempt
bonds to finance certain activities, including single- and multi - family
housing development and rehabilitation. The California Debt Limit
Allocation Committee (CDLAC) administers Tax Exempt Private Activity
Bond Program in California.
c. Federal Rehabilitation Tax Credit (a/k/a Historic Tax Credit)
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Rev.4 112105
The Rehabilitation Tax Credit is a two - tiered program, because there are
two tax credit rates based on the status or age of the buildings. The 20%
credit is available for income - producing buildings that are considered
certified historic structures (Historic Tax Credit). Federal historic tax credits
are available for buildings listed in the National Register of Historic Places
or located in certain historic districts that are substantially rehabilitated for
income - producing purposes according to standards set by the Secretary of
the Interior. The 10% credit is available for non - residential income
producing buildings originally used before 1936, which are not certified
historic structures. Consequently, the two credits are mutually exclusive.
i. Federal New Markets Tax Credit (NMTC) Program
The New Markets Tax Credit (NMTC) Program, which is administered
by the U.S. Department of the Treasury's Community Development
Financial Institutions (CDFI), permits taxpayers to receive a credit
against Federal income taxes for making qualified equity investments
in designated Community Development Entities (CDEs). Substantially
all of the qualified equity investment must in turn be used by the CDE
to provide investments in low- income communities. The credit
provided to the investor totals 39% of the cost of the investment and is
claimed over a seven -year credit allowance period. In each of the first
three years, the investor receives a credit equal to five percent of the
total amount paid for the stock or capital interest at the time of
purchase. For the final four years, the value of the credit is six percent
annually. Investors may not redeem their investments in CDEs prior to
the conclusion of the seven -year period. NMTCs will be allocated
annually by the Fund to CDEs under a competitive application process.
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2005 — 2009 Consolidated Plan
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These CDEs will then sell the credits to taxable investors in exchange
for stock or a capital interest in the CDEs. To qualify as a CDE, an
entity must be a domestic corporation or partnership that: 1) has a
mission of serving, or providing investment capital for, low- income
communities or low- income persons; 2) maintains accountability to
residents of low- income communities through their representation on a
governing board of or advisory board to the entity; and 3) has been
certified as a CDE by the CDFI Fund. The Fund is currently accepting
applications from entities seeking CDE certification. A listing of
current CDEs may be found at http://www.cdfi.orp/resource.asi).
21. Public Works and Development Facilities Program
Grants are provided to help distressed communities attract new industries,
encourage business expansion, diversify local economies, and generate long-
term, private- sector jobs. Projects funded include water and sewer facilities
primarily serving industry and commerce, access roads to industrial parks or
sites, port improvements, and business incubator facilities. A proposed project
must be located within or provide a substantial direct benefit to an area in severe
economic distress, that is, one that is experiencing high unemployment, low per
capita income, or sudden economic changes such as those caused by a military
base closure.
22. Rebuild America
Rebuild America helps community and regional partnerships improve the
energy efficiency of commercial and multifamily buildings. Partners may
include government agencies, economic development organizations, energy
services companies, financial institutions, utilities, private businesses, and
nonprofit organizations. Rebuild America provides technical assistance and
helps identify sources for financial assistance but does not provide funding or
financing for building projects.
23. Technology Opportunity Program
This program provides matching grants to nonprofit organizations such as
schools, libraries, hospitals, public safety entities, and state and local
governments. Grants fund projects that improve the quality of, and the public's
access to, education, healthcare, public safety, and other community -based
services. The grants are used to purchase computer equipment and software,
train staff and users, and provide connections to the Internet. Funds also support
evaluation and dissemination of project findings.
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2005 — 2009 Consolidated Plan
Leveraging
24. Housing Preservation Grant Program
This program also makes available funds to repair housing. Non - profits receive
grants and they in turn make funds available to homeowners that cannot afford
to make needed repairs.
25. Multifamily Housing and Health Care Facilities Mortgage Insurance
Programs
The Federal Housing Administration (FHA), part of the U.S. Department of
Housing and Urban Development (HUD), provides mortgage insurance
programs that make capital available for, and facilitate the development of,
multifamily rental housing and healthcare facilities. FHA insures loans that are
originated by private, HUD - approved lenders. Project sponsors are responsible
for finding a HUD - approved lender to write the loan and for submitting an
application for commitment to the local HUD office.
26. Head Start/Early Head Start
This program awards grants to local public and private nonprofit and for - profit
agencies for comprehensive child development services for children and
families. Intended primarily for low- income families, the program fosters the
development of children and enables them to deal more effectively with both
their present environment and later responsibilities in school and community
life.
Programs and funds at the State level are available to address the Consolidated
Plan's priority needs, such as grants and other revenues that provide funding to
the City or other organizations within Newport Beach.
B. State Public Resources
Programs and funds at the State level are available to address the Consolidated
Plan's priority needs, such as grants and other revenues that provide funding to the
City or other organizations within Newport Beach.
1. California Department of Housing and Community Development Programs
a. Building Equity and Growth in Neighborhoods Program
The Building Equity and Growth in Neighborhoods Program (BEGIN)
seeks to reduce local regulatory barriers to affordable ownership housing
and to provide downpayment assistance loans to qualifying first -time low -
and moderate - income buyers of homes in BEGIN projects. BEGIN
provides grants to cities and counties to make deferred - payment second
mortgage loans to qualified buyers of new homes, including manufactured
City ofNewpon Beach XV -9 2005 — 2009 Consolidated
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1,
homes on permanent foundations, in projects with affordability enhanced by
local regulatory incentives or barrier reductions.
b. CalHome Program
The CalHome Program, via grants to local public agencies and nonprofit
developers, assists low and very -low income households to become or
remain homeowners. CalHome provides grants to local public agencies or
nonprofit corporations for first -time homebuyer downpayment assistance,
home rehabilitation, including manufactured homes not on permanent
foundations, acquisition and rehabilitation, homebuyer counseling, self -help
mortgage assistance programs, or technical assistance for self -help
homeownership. All funds to individual homeowners will be in the form of
loans. CalHome also provides loans for real property acquisition, site
development, predevelopment, construction period expenses of
homeownership development projects, or permanent financing for mutual
housing and cooperative developments. Project loans to developers may be
forgiven as developers make deferred payment loans to individual
homeowners. CALHOME assistance (indirect) to individual households
will be in the form of deferred - payment loans, payable on sale or transfer of
the homes, or when they cease to be owner - occupied, or at maturity.
CalHome grant and loan applications are invited through the issuance of
Notices of Funding Availability (NOFAs).
c. Emergency Housing and Assistance Program Operating Facility Grants
The Emergency Housing and Assistance Program Operating Facility Grants
(EHAP) program provides facility operating grants to local government
agencies and nonprofit corporations that shelter the homeless on an
emergency or transitional basis. Funds are used for support services for
emergency shelters, transitional housing projects, and supportive services
for homeless individuals and families. Each county receives a formula
grant allocation. Grants may be used to provide: 1) direct client housing,
including facility operations and administration, residential rent assistance,
leasing and renting of rooms for provision of temporary shelter, capital
development activities of up to $20,000 per site, and 2) administration of
the award (limited to 5 percent).
d. Emergency Housing and Assistance Program Capital Development
The Emergency Housing and Assistance Program Capital Development
(EHAPCD) program funds capital development activities for emergency
shelters, transitional housing, and safe havens that provide shelter and
supportive services for homeless individuals and families. Funds may be
used to acquire, construct, convert, expand and/or rehabilitate emergency
City of Newport Beach X[! 10 2005 — 2009 Consolidated Plan
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aQ'
shelter, transitional housing, and/or safe haven housing and administration
of the award (limited to 5 percent).
e. Mobile Home Park Resident Ownership Program (MPROP)
The Mobilehome Park Resident Ownership Program (MPROP) provides
financial assistance for the preservation of affordable mobile home parks by
conversion to ownership or control by resident organizations, nonprofit
housing sponsors, or local public agencies. The program provides for 1)
Short -term conversion loans at three percent simple annual interest for up to
3 years to enable a resident organization, nonprofit sponsor or local public
agency to purchase a mobile home park; 2) Long -term blanket loans at three
percent simple annual interest for up to 30 years for long -term financing of
a park purchase, or for a resident organization, nonprofit or local public
agency that has purchased a park to help low- income residents finance the
purchase of shares or spaces in the park; and 3) Long -term individual loans
at three percent simple annual interest, to low- income residents of a mobile
home park that has been converted, to ensure housing affordability when
the resident buys a cooperative interest, a share, a planned unit development
space, or a condominium space in the park.
f. Multi- family Housing Program (MHP)
The Multi- family Housing Program (MHP) assists the new construction,
rehabilitation and preservation of permanent and transitional rental housing
for lower income households. Eligible applicants include local public
entities, for -profit and nonprofit corporations, limited equity housing
cooperatives, individuals, Indian reservations and rancherias, and limited
partnerships in which an eligible applicant or an affiliate of an applicant is a
general partner. Applicants or their principals must have successfully
developed at least one affordable housing project. The 55 year deferred
payment loans may be used for new construction, rehabilitation, or
acquisition and rehabilitation of permanent or transitional rental housing,
and the conversion of nonresidential structures to rental housing. Projects
are not eligible if construction has commenced as of the application date, or
if they are receiving 9% federal low income housing tax credits. MHP funds
will be provided for post - construction permanent financing only. Eligible
costs include the cost of child care, after- school care and social service
facilities integrally linked to the assisted housing units; real property
acquisition; refinancing to retain affordable rents; necessary onsite and
offsite improvements; reasonable fees and consulting costs; and capitalized
reserves.
City of Newport Beach X[! 11 2005 — 2009 Consolidated Plan
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g. Predevelopment Loan Program (PDLP)
The Predevelopment Loan Program (PDLP) provides predevelopment
capital to finance the start of low- income housing projects. Predevelopment
loans are provided at three percent simple annual interest loans for up to
two years. Maximum loan amount for purposes other than site option or site
purchase is $100,000. The maximum amount committed to any one
borrower at any point in time is announced in each Notice of Funding
Availability (NOFA). PDLP funds may be use construct, rehabilitate,
convert or preserve assisted housing, including manufactured housing and
mobilehome parks. Eligible project costs include, but are not limited to, site
control, site acquisition for future low - income housing development,
engineering studies, architectural plans, application fees, legal services,
permits, bonding and site preparation. Priority will be given to
developments, which are rural, located in the public transit corridors, or
which preserve and acquire existing government- assisted rental housing at
risk of conversion to market rents. Eligible applicants under the PDLP
Program include local government agencies, nonprofit corporations,
cooperative housing corporations, and limited partnerships or limited
liability companies where all the general partners are nonprofit mutual or
public benefit corporations. Applications are accepted and evaluated, and
funds awarded, on a continuous basis as funds are available.
h. Preservation Interim Repositioning Program
The Preservation Interim Repositioning Program (PIRP) loan proceeds will
be used to finance the acquisition of at -risk rental housing for the purpose of
preserving affordability. California HCD has committed all available funds
to Mercy Housing California, which expects to use them itself to acquire
qualified properties. Potential property sellers should contact Mercy
Housing.
i. Exterior Accessibility Grants for Renters
The Exterior Accessibility Grants for Renters (EAGR) helps lower income
rental tenants with disabilities make exterior modifications to their rental
housing to make it accessible. The program provides grants to local
government or nonprofit recipients, to make grants to lower income renters
with disabilities. Grant funds may be used to make exterior modifications to
entryways or common areas of rental housing structures or property to make
the housing accessible to persons with disabilities. Applications are invited
through issuance of Notices of Funding Availability (NOFAs).
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j. Workforce Housing Reward Program
The Workforce Housing Reward Program (WHRP) provides financial
incentives for their issuance of building permits for new housing affordable
to very low or low- income households. Grant amounts are based on the
numbers of bedrooms in units restricted for very low and low- income
households for which final land use approval is issued during the 12 -month
reporting period. Qualifying rental units must be rent - restricted for at least
55 years. Ownership units must be initially sold to qualifying households at
affordable cost. Any public funds used to achieve affordability in ownership
units must be recovered on resale and reused for affordable housing for at
least 20 years. WHRP grants for very low income units will be greater than
grants for low- income units. WHRP funds may be use for the construction
or acquisition of capital assets such as traffic improvements, neighborhood
parks, bike paths, libraries, school facilities, play areas, community centers,
police or fire stations.
k. Joe Serna, Jr. Farmworker Housing Grant (JSJFWHG) Program
The Joe Serna, Jr. Farmworker Housing Grant (JSJFWHG) Program
provides financing for the new construction, rehabilitation and acquisition
of owner - occupied and rental units for agricultural workers, with a priority
for lower income households. The JSJFWHG program provides: 1)
homeowner grants for rehabilitation or new home construction and 2) rental
rehabilitation and new construction grants. Grant and loan funds may be
used for costs in the development of homeowner or rental housing for
agricultural workers, including land acquisition, site development,
construction, rehabilitation, design services, operating and replacement
reserves, repayment of predevelopment loans, provision of access for the
elderly or disabled, relocation, homeowner counseling, and other reasonable
and necessary costs. JSJFWHG applicants may include local government
agencies, nonprofit corporations, cooperative housing corporations, limited
partnerships where all the general partners are nonprofit mutual or public
benefit corporations, and federally recognized Indian tribes. Eligible
beneficiaries of the grants are households with at least one person who
derives, or prior to retirement or disability derived, a substantial portion of
their income from agricultural employment.
2. California Housing Finance Agency Programs
The California Housing Finance Agency (CalHFA) operates several single -
family, multi - family and special housing programs.
Ci[v of Newport Beach AV-13 2005 — 2009 Consolidated Plan
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a. Single - Family Programs
Ca1FHA more than ten single - family programs providing mortgage loans,
mortgage loans with downpaymeut assistance, and standalone
downpayment assistance programs. A complete directory and description
of each of their programs may be found at
http:// wwGv .calhfa.ca.g_ov[homeownershii)/ programs /index.htm.
b. Multi- family Programs
Multi- family Programs provide permanent financing for the acquisition,
rehabilitation, and preservation or new construction of rental housing that
includes affordable rents for low- and moderate- income families and
individuals. Ca1HFA multi - family programs include:
The Permanent Financing Program provides permanent loan financing for
new multi - family construction projects and existing affordable housing
multi - family projects.
The Special Needs Financing Program offers low interest rate financing for
the development of rental housing to serve a broad range of special needs
tenants in need of supportive services.
The Tax - Exempt Bridge Financing Program offers tax- exempt bridge loans
for projects receiving 4% tax credits at an amount necessary to ensure the
award of tax credits.
The Preservation Acquisition Program is designed to preserve at -risk
affordable housing developments by providing low -cost acquisition
financing. The fund is comprised of monies authorized by Proposition 46
( "Bond Funds ") and funds from Ca1HFA ( "Agency Funds "). Assisted
housing developments eligible for Program include: Section 8 assisted,
BMIR 221 (d)(3), Section 236, Section 202, Programs under Rent
Supplement Assistance, Section 515, and Section 42 of the Internal Tax
Revenue Code.
The 202 Refinance Program offers owners of existing Section 202
developments the opportunity to refinance their direct HUD loans through
Ca1HFA under more favorable terms and conditions. Owners must agree to
maintain affordable occupancy restrictions, comply with HUD
requirements, and undertake appropriate rehabilitation of the property.
The Construction Loan Program is designed to provide construction loans at
commercially competitive rates and terms to developments approved for
Ca1HFA permanent financing that are otherwise subject to State prevailing
wage requirements.
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c. Special Programs
The Small Business Development Loan Program is designed to assist small
developers whose projects would not otherwise be funded through
conventional sources given the developer's experience, capital, project size
and/or location. This program provides up to $300,000, on a 50%
reimbursement basis, for soft costs incurred in connection with a
development that will be financed by Ca1HFA.
The HELP Program offers a 3% interest rate loan to local government
agencies for their locally determined affordable housing activities and
priorities. HELP Program funds must be used to directly produce affordable
housing units, however, there is virtually unlimited flexibility for the local
agency to determine the specific housing activity and use of the funds in
providing for the acquisition, development, rehabilitation, or preservation of
affordable rental or ownership housing.
3. California Office of the Treasurer Programs
The Office of the Treasurer oversees several important program initiatives
available to address the Consolidated Plan's priority needs.
a. Low Income Housing Tax Credits
City of Newport Beach
Rev. 4112105
As previously noted (See Federal Programs. Tax Credit and Tax Exempt
Bond Programs), the California Tax Credit Allocation Committee (TCAC)
administers a Federal and State Low - Income Housing Tax Credit Program.
The Federal Program is an Internal Revenue Service program (Section 42)
that provides federal income tax credits to owners of rental housing where a
number of units are set -aside for low and moderate - income families.
Owners "sell" the credit to investors and use the funds to support the
development cost of the project. Developments that are financed with the
proceeds of tax- exempt bonds may also receive federal tax credit (See Tax -
Exempt Private Activity Bond Program). In this instance, the
developer /owner of a tax - exempt development must apply to TCAC and
must conform to the federal and state statutory and regulatory requirements,
but there is no annual "cap" on the amount of credit that may be awarded by
the state to such developments. The credit available is based on
approximately 4% (instead of 9 %) of the "qualified basis" of the
development.
Recognizing the high cost of developing housing in California, the State
legislature authorized a state low income housing tax credit program ( "State
Program ") to augment the Federal Program. The State credit is only
available to a project which has previously received, or is concurrently
receiving, an allocation of federal credits. The state program does not stand
alone, but instead, supplements the federal tax credit program. California's
X[! 15
2005 — 2009 Consolidated Plan
�G�P
tax credit program was structured to mirror the federal program with certain
exceptions. In addition to the state credit only being available to projects
that also receive a federal credit, other major differences include:
TCAC gives priority for state credit allocations to projects not located in a
designated high cost area and those using HOME funds to finance eligible
costs.
The applicable percentage to be applied to the qualified basis for
determining the amount of state credits is 30% for projects which are not
federally subsidized, and 13% for projects which are federally subsidized,
in contrast to 9% and 4% for the federal credit.
State credits are not available for acquisition costs, except for already
assisted projects that qualify as "at -risk" of being converted to market rate.
The State program has a rate of return limitation. Any surplus revenues
generated above the limitation must be used to reduce rents.
Additional information and regulations for both the Federal and State
Programs may be found at http : / /www.treasurer.ca.gov /ctcac.
b. Tax - Exempt Private Activity Bond Program
The California Debt Limit Allocation Committee (CDLAC) administers the
tax - exempt private activity bond program available annually for California.
Federal and state revenues are not utilized in this program. The maximum
issuance amount, which is set by the Federal government, for calendar year
2004 was over $2.8 billion. The bonds issued are purchased by the private
sector and the repayment is not an obligation of the state or of the federal
government. Agencies and organizations authorized to issue tax - exempt
private activity bonds or mortgage credit certificates must receive an
allocation from CDLAC. For additional information on the bond allocation
process, visit htg2: / /www.treasurer.ca. gov /cdlac.
Three of the six programs tax - exempt private activity bond programs may
be used for housing activities. The three housing programs are:
Qualified Residential Rental Project Program
State and local governmental agencies and joint powers authorities can
issue tax - exempt housing revenue bonds. These bonds assist developers of
multifamily rental housing units to acquire land and construct new units or
purchase and rehabilitate existing units. The tax - exempt bonds lower the
interest rate paid by the developers. The developers in turn produce market
rate and affordable rental housing for low and very low- income households
by reducing rental rates to these individuals and families. Projects that
receive an award of bond authority have the right to apply for non-
competitive 4% tax credits. See Low Income Housing Tax Credits.
City of Newport Beach X[%16 2005 — 2009 Consolidated Plan
Rev. 4112105
a61
Leveraging
Bond authority for Rental Projects is awarded in three allocation rounds and
to three sub - pools: the General Pool (Projects having more than 50% of
total units designated as Restricted Rental Units); the Mixed Income Pool
(Projects having 50% or fewer of total units designated as Restricted Rental
Units); and the Rural Project Pool (Projects located in a rural area as
defined by California Health and Safety Code Section 50199.21 but shall
not include a Mixed Income Project).
Single - Family Housing Program
State and local governmental agencies and joint powers authorities can
issue tax - exempt mortgage revenue bonds (MRBs) or mortgage credit
certificates (MCCs) to assist first -time homebuyers to purchase homes.
These agencies and authorities may issue MRBs, the proceeds of which
back below market interest rate mortgages. As an alternative to issuing
MRBs, state and local governmental agencies and joint powers authorities
may issue MCCs. Homebuyers use the MCC to reduce their federal tax
liability by applying the credit to their net tax due. Homebuyers may
purchase single - family homes, either freestanding detached, condominiums
or townhouses. Program participants must meet program income limits and
must purchase a home that falls within the program's purchase price
limitations.
Extra Credit Home Purchase Program
State and local governmental agencies and joint powers authorities can
issue tax - exempt mortgage revenue bonds (MRBs) or mortgage credit
certificates (MCCs) to assist teachers, principals and other credentialed
school staff purchase homes. These agencies and authorities may issue
MRBs, the proceeds of which back below market interest rate mortgages.
As an alternative to issuing MRBs, state and local governmental agencies
and joint powers authorities may issue MCCs. Homebuyers use the MCC to
reduce their federal tax liability by applying the credit to their net tax due.
Homebuyers may purchase single- family homes, freestanding detached
homes, condominiums or townhouses. Participants must be employed at a
low- performing school (a California K -12 public school that is ranked in the
bottom 50% of all the schools based on the most recent Academic
Performance Index (API), i.e. schools receiving an API Statewide Ranking
of 1, 2, 3, 4 or 5) and make a commitment to work at a low performing
school for at least three years. In addition, Program participants must meet
program income limits and must purchase a home that falls within the
program's purchase price limitations.
City of Newport Beach XV-17 2005 — 2009 Consolidated Plan
Rev. 4112105
�b
C. Local Public Resources
Local funds and programs are also available to address the Consolidated Plan's
priority needs.
1. County of Orange
The County of Orange offers a Mortgage Credit Certificate (MCC) program
throughout Orange County, including the City of Newport.
2. Orange County Area Housing & Finance Agency ( OCHFA):
Newport Beach is a member of the Orange County Area Housing & Finance
Agency ( OCHFA), which sponsors the Public Lease - Purchase Home Ownership
Program in the member cities. Through its Public Lease - Purchase
program, OCHFA offers moderate - income home buyers offers a mortgage for
100% of the purchase price of the home with no closing costs. During the lease
period the home is owned by a non - profit governmental agency
3. Southern California Home Financing Authority (SCHFA)
SCHFA is a joint powers authority between Los Angeles and Orange Counties
formed in June 1988 to issue tax - exempt mortgage revenue bonds for low and
moderate income First Time Homebuyers. The program is administered by the
Community Development Commission of The County of Los Angeles and
County Executive Office of the County of Orange on behalf of the SCHFA. The
Authority has helped thousands of individuals and families.
4. Orange County Continuum of Care
Orange County's homeless system of care is comprised of a network of public,
private, faith - based, for - profit, and non -profit service providers. County
agencies such as the County Executive Office, Health Care, Social Services,
Community Services, and Housing and Community Development provide direct
services for the homeless and /or significant resources for agencies serving the
homeless. The region's municipalities, including the City of Newport Beach,
also provide substantial resources for services that assist the homeless and those
at risk of becoming homeless. The County's non - profit community is a critical
player in the current Continuum of Care system. Hundreds of agencies
throughout the County provide programs ranging from feeding the homeless on
the street to creating permanent supportive housing opportunities. These services
are available to homeless families with children and single men and women. The
County's non - profit community also serves special need populations, such as
victims of domestic violence, veterans, the disabled and youth.
In 1998 the Orange County Board of Supervisors approved the establishment of
the Continuum of Care Leadership Cabinet. The mandate of the Leadership
City of Newport Beach NV 18 2005 — 2009 Consolidated Plan
Rev.4 112105 (�
�O 1
Cabinet is to provide direction to the Director of Housing and Community
Development and to assist in the development and maintenance of the
countywide comprehensive continuum of care planning process for the delivery
of services to homeless men, women and children. The goal of the Leadership
Cabinet is to coordinate the involvement of three primary groups: private
industry, homeless experts, and the public sector in the continuum of care
planning process. The Leadership Cabinet is also responsible for working with
H &CD staff to design the planning process for each year's Supportive Housing
Program homeless competition and to provide direction on the organization of
the application review and evaluation processes.
Programs and initiatives operated Orange County Continuum of Care fall into
the following categories:
• Homelessness Prevention
• Outreach
• Emergency Shelter
• Transitional Housing
• Permanent Supportive and Permanent Affordable Housing
• Service Coordination
Orange County Continuum of Care funds programs according to the need and in
keeping with the Continuum of Care, described in Section 4.2.2 of the Consolidated
Plan.
5. Orange County Housing Authority (OCHA)
The Orange County Housing Authority (OCHA) is a division of the County's
Housing and Community Services Department that administers rental assistance
programs throughout Orange County. Currently, OCHA helps more than 9,600
households through tenant based rental assistance programs. Persons receiving
assistance include those over 62 years of age or who have disabilities, and low -
income households residing in 31 participating cities, and the unincorporated
areas of Orange County. According to the OCHA, 615 of these assisted
households resided in Newport Beach as of June 30, 2004. Such programs
allow income - qualified households to receive rental assistance in a variety of
apartments, houses, and other rental dwellings owned by private landlords.
Funding for tenant -based rental assistance programs is provided by the
Department of Housing and Urban Development (HUD).
D. Private Resources
Funds from private sources are also available to address the Consolidated Plan's
priority needs from partners such as private lenders, nonprofit organizations, and
citizens.
City ofNewpon Beach
Rev.4112105
Ivy -19
2005 — 2009 Consolidated Plan
p
1. Federal Home Loan Bank Affordable Housing Program (AHP):
The Affordable Housing Program is designed to finance housing for low and
moderate- income families. The Federal Home Loan Bank System makes the
funds available by setting aside a percentage of net earnings as subsidy. Federal
Home Loan Banks are sources of wholesale credit and lend only to financial
institutions that are member stockholders of the Federal Home Loan Bank.
Nonprofits, local governments, community development corporations,
individuals, and others seeking the fimding should establish a relationship with a
member institution. Housing developers can use the funds in a variety of ways to
fund new construction, purchase and /or rehabilitation of owner - occupied and
rental housing for very low -, low -, and moderate- income households. Funds are
available to member institutions as below market rate loans or direct loans.
Generally, recipients are required to match direct grants with an equal
contribution of funds from other sources. Application deadlines are April and
October each year.
2. Community Reinvestment Act Programs:
Special programs promoted by local financial institutions designed to assist low
and moderate - income buyers and/or target low and moderate- income
neighborhoods.
3. United Way:
The United Way provides funding to local social service organizations, many of
which are involved in housing or supportive services.
4. Private Contributions:
Many nonprofit organizations rely heavily on private contributions. In addition
to cash, contributions may include donated labor and materials. Habitat for
Humanity is one nonprofit organization that receives sponsorships that include
donated labor and materials.
City ojNewport Beach XY -20 2005 — 2009 Consolidated Plan
Rev.4112105
�11
CITY OF NEWPORT BEACH
COMMUNITY DEVELOPMENT BLOCK GRANT
Three - Year Funding Allocation History
FY 2002 -03 through FY 2004 -05
PROGRAM
5 _ L0 -105
*Proposed.
F: \USERSTLN\Shared \CDBG\FY 2005 -
2006\CC Meeting05102005,fund
historyPubSm.doc
Page 1 of 1
2002 -03
1 2003 -04
2004-05
2005 -06•
•NON -PROFIT AGENCIES
Public Service Projects
Fish Harbor
Homeless Prevention
18,500
15,000
15,000
11,500
Fish Harbor
Mobile Meals
20,000
20,000
20,000
15,000
Mercy House
Emmanuel House Food Pantry
0
5,400
5,550
4,500
Orange Coast Interfaith Shelter
10,000
10,000
10,000
8,000
Ternporary Shelter
Serving People In Need
10,000
9,500
10,000
8,000
Substance Abuse Treatment
South County Senior Services
10,000
0
0
7,000
Mobile Hone Delivered Meals
WISEPIACE
Steps to Independence
5,000
4,000
5,000
4,500
Human Options
0
0
0
3,333
Emer ene Shelter or Battered Women
*Proposed.
F: \USERSTLN\Shared \CDBG\FY 2005 -
2006\CC Meeting05102005,fund
historyPubSm.doc
Page 1 of 1
'In—, n,
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P R
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"'BEIRT MAYER
CORPORATION �5 ,; -4 r19 40
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May 5, 2005
Mayor Steven Bromberg
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Dear Mayor Bromberg,
As a member of the Board of Directors of SPIN and resident of the City
(and /or position within Company located in Newport Beach), I am
contacting you to urge your support of the CDBG finding recommendation
for SPIN. The Board would like to note that SPIN is one of the few
agencies supported by the City that has consistently met or exceeded its
goals, as stated in the City's reports to HUD.
We were sorry to receive $1,000 less than last year, although we are aware
that all CDBG funding was cut this year. Unfortunately, in a year when
CDBG funds were being cut to most cities, Newport also chose to take on
additional agencies, which made it impossible to continue to support
previously funded agencies at their prior levels, even if they had obtained or
exceeded their goals.
Again, the Board thanks you for your past support and hopes that you will,
at mininnon, support the staff's current recommendation.
Sincerely,
Robert (L. yep, J�
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FRANK USTI
SENIOR E.<ECOTIVE VICE ?RESIDENT
May 4, 2005
Mayor Steven Bromberg
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Dear Mayor Bromberg,
I,
18301 Von Kerman Avenue. Su to 1100 (949) 252 -2000
Irvine, California 92612 FAX (949) 252 -2040
As a member of the Board of Directors of SPIN and resident of the
City (and/or position within Company located in Newport Beach), I
am contacting you to urge your support of the CDBG funding
recommendation for SPIN. The Board would like to note that SPIN
is one of the few agencies supported by the City that has consistently
met or exceeded its goals, as stated in the City's reports to HUD.
We were sorry to receive $1,000 less than last year, although we are
aware that all CDBG funding was cut this year. Unfortunately, in a
year when CDBG funds were being cut to most cities, Newport also
chose to take on additional agencies, which made it impossible to
continue to support previously funded agencies at their prior levels,
even if they had obtained or exceeded their goals.
Again, the Board thanks you for your past support and hopes that you
will, at naininua n, support the staffs current recommendation.
Sincerely,
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