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Home My WebLink About08 - Consolidated Annual Performance & Evaluatin Report (CAPER)CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 8 September 26, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel R. Trimble, Program Manager 9491644 -3230. email: dtrimble(a)citv.newport- beach.ca.us SUBJECT: Review of the FY 2005 -2006 Community Development Block Grant Consolidated Annual Performance and Evaluation Report (CAPER) to the U.S. Department of Housing and Urban Development. ISSUE: Each year, the City of Newport Beach receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). These funds are to assist the City in meeting the affordable housing and community development needs of its residents, particularly those persons and families considered to have low or moderate levels of income. To ensure that these funds are used to meet the greatest existing need within the community, the City undertakes a planning and evaluation process that includes: 1) the Five -Year Consolidated Plan; 2) the One -Year Action Plan; and, 3) the Consolidated Annual Performance and Evaluation Report (CAPER). The subject of this public hearing is the CAPER for Fiscal Year 2005 -2006 (FY 2006), which started July 1, 2005 and ended June 30, 2006. Where the Consolidated Plan and One -Year Action Plan described what the City planned to do, the CAPER details what the City actually accomplished. RECOMMENDATION: After receiving public comments and recommendations, staff recommends Council approve the Draft Consolidated Annual Performance and Evaluation Report. DISCUSSION: A draft version of the CAPER was developed and released for a 15 -day public review and comment period beginning August 29, 2006. This public hearing is to review and receive any additional comments on the draft CAPER. The comments from the public and City Council will be incorporated into the final CAPER and submitted to HUD on or about September 28, 2006 for approval. The CDBG allocation for FY 2005 -2006 was $412,233. In addition, $80,254 of CDBG funds from previous allocations was available for this program year, for a total FY 2005- 2006 budget of $492,487. During the 2005 -2006 Program Year, the City allocated $405,580 for eligible CDBG activities, leaving $86,907 in contingency. The actual amount spent during the fiscal year was $381,266.04. The unspent $777,220.96 represents the unprogrammed contingency and unused balances from several projects. The accomplishments for this year include, but are not limited to, mobile meal program, homeless prevention programs, ADA improvements to City sidewalks, Fair Housing assistance, and Code Enforcement on Balboa Peninsula. Category FY 2005 -2006 Expenditures Public Service Activities $49,683.59 Capital Improvement Projects $50,000.00 Program Administration & Fair Housing $67,068.00 Section 108 Repayment $189,514.45 Code Enforcement- -`$25.066:00 Total $381 ,266.04 Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: Notice of the public hearing was published in the Daily Pilot on August 18, 2006. Submitted by: Prepared by: ARON WOOD DANIEL TRIMBLE Assistant City Manager C & ED Program Manager Attachments: ' Draft 2005 -2006 CAPER F IUSERSfPLMShare CDBGWY2005- 2006wewpat Beach - 200506 CAPER Staff Repoif (rev 9- "6).abc FY 2005 -2006 CDBG CAPER September 12, 2006 Page 2 City of Newport Beach FY 2005 -2006 Consolidated Annual Performance and Evaluation Report September 2006 r"I LLDM Associ ate s•Inc. City of Newport Beach • 3300 Newport Boulevard • Newport Beach, CA 92663 3 CITY OF NEWPORT BEACH 2005 -2006 Consolidated Annual Performance and Evaluation Report TABLE OF CONTENTS I. GENERAL NARRATIVE ............................................ ............................... Assessment of Five -Year Funding Objectives and Strategies .............. Affordable Housing Objectives ......................... ............................... Special Needs Objectives ................................ ............................... Homeless Objectives ............. ..............................1 ............. ..............................1 ............ ............................... 2 ............ ............................... 6 ........................................................ ............................... Non - Housing Community Development Objectives .......... ............................... Affirmatively Furthering Fair Housing ..................................... ............................... AffordableHousing ................................................................. ............................... Continuumof Care ................................................................. ............................... Other Actions Taken to Implement Consolidated Plan ............ ............................... Address Obstacles to Meeting Underserved Needs ......... ............................... Foster and Maintain Affordable Housing ........................... ............................... Reduce Numbers of Families Living in Poverty ................ ............................... Evaluate and Reduce Threat of Lead Based Paint ........... ............................... Reduce Barriers to Affordable Housing ............................ ............................... Enhance Institutional Structure and Coordination ............ ............................... Improve Public Housing and Resident Initiatives .............. ............................... Ensure Compliance with Comprehensive Planning Requirements ................. LeveragingResources ............................................................. ............................... Self - Evaluation ......................................................................... ............................... 11. CDBG NARRATIVE STATEMENT .................. ............................... III. PUBLIC PARTICIPATION ....... ........... .............................17 ........................... .............................19 L) ASSESSMENT OF GOALS AND OBJECTIVES In order to gauge the City's progress in meeting the goals and objectives included in the current Five - Year Consolidated Plan, the accomplishments of FY2006 are summarized below according to the Strategic Plan. The Strategic Plan included the following strategies: Foster and Maintain Affordable Housing • Develop 120 units of senior housing • Maintain current level of Section 8 Vouchers • Ensure universal access to fair housing Special Need Population Objectives • Increase accessibility to public facilities Improve supportive services to elderly residents • Improve supportive services to those with substance addictions • Improve supportive services to those living with HIV / AIDS Homeless Objectives • Preserve the supply of emergency and transitional units available • Assist homeless and those at risk of homelessness • Assist homeless battered women and children Community Development • Stimulate investment through alleviation of physical and economic distress • Improve health and safety through rehabilitation of community facilities • Preserve neighborhoods and provide economic empowerment to lower income residents • Eliminate blight, blighting influences, and prevent deterioration of property The Strategic Plan also addressed goals common to communities throughout the country, such as reducing the number of families in poverty and reducing barriers to affordable housing. Please note that the accomplishments regarding these goals are addressed in the 'Other Actions" section. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 7 IN FOSTER AND MAINTAIN AFFORDABLE HOUSING The City divided its efforts to foster and maintain affordable housing into three specific objectives that are described more fully below. The three objectives are: 1. Develop 120 units of senior housing 2. Maintain current level of Section 8 Vouchers 3. Ensure universal access to fair housing DEVELOP 120 UNITS OF SENIOR HOUSING Lower Bayview Project FIVP YEAR GOAL: 120 uNm ONE -YEAR ACCOMPLISHMENTS: PROJECT COUPLETW ON TARGET? YES The Lower Bayview Project was completed during this program year. The City has provided over $1,000,000 in non - federal subsidies to this development. The project is located on nearly five acres at the comer of Jamboree Road and Back Bay Drive in 'the City of Newport Beach, California. Bayview Landing provides 120 affordable, rental units for tenants aged 62 and older. Twenty -four units are offered to tenants whose annual income, does not exceed 50% of Area Median Income, while 95 units are available to those whose annual income does not exceed 60% of Area Median Income. MAINTAIN CURRENT LEVEL OF SECTION 8 VOUCHERS The Orange County Housing Authority (OCHA) administers the Section 8 rental certificate and rental voucher program for the City. The Section 8 rental program provides rental assistance to very low - income families. In FY2006, 85 households received Section 8 rental assistance. ENSURE UNIVERSAL ACCESS TO FAIR HOUSING In addition to developing a Consolidated Plan that addresses a broad range of housing and community development needs, the City also participates in the development of a regional plan with other Orange County cities called the "Analysis of Impediments to Fair Housing', or AI, to specifically address overcoming the barriers to fair housing found in the community. This study identifies impediments to fair housing and also recommended actions to take to overcome the effects of these impediments. The Citys last At was updated in 2006. The following is a list of impediments cited in the plan: The following annual service report covers Fair Housing Actions taken from July 1, 2005 through June 30, 2006 and lists some actions to be taken in the year 2006/2007 by participating jurisdictions in this regional area. 1. This region has a well - established and effective private fair housing council that provides dynamic and comprehensive educational and enforcement programs to the local jurisdictions it serves. This FY 2006 Consolidated Annual Performance and Evaluation Report Page 2 City of Newport Beach XJ example of public- private partnership continues as 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 services at their present level of effectiveness and responsiveness. Action: This local jurisdiction contracted with an effective private fair housing council, Fair Housing Council of orange County ( FHCOC), to provide comprehensive educational and enforcement programs to its residents. Milestone: Provide fair housing education, counseling and enforcement services within this local jurisdiction. Implementation During FY 2005/2006 FHCOC provided the following levels of service: FAIR HOUSING COMMUNITY EDUCATION Activities included conducting over 145 presentations averaging 45 participants at each one. Also, FHCOC published/distributed four fair housing newsletters, spoke at public meetings, and held training programs for consumers and professionals in the housing industry, such as real estate agents, property managers, owners, and lending institution. The agency also held a region -wide equal- housing opportunity theme contest that was open to all Orange County grade schools. FHCOC maintains a positive relationship with both local Apartment Associations providing information and education through these partnerships. FHCOC also has a relationship with the Orange County Association of Realtors (OCAR). Through this partnership FHCOC provides homebuyer education and an opportunity for participants to apply for OCAR's pro -bona program. This program was developed to assist a diverse cross population to experience the American Dream of homeownership. The only requirement to apply for this program is attendance at one of FHCOC's homebuyer education seminars. The first applicant to the program closed escrow on her home during July 2006. FAIR HOUSING ENFORCEMENT Activities included responding to more than 267 housing discrimination complaints within the region. Responses included, as appropriate, investigation, testing, "portfolio testing" evaluation of the merits of fair housing claims, and when appropriate, conciliation and /or prosecution of meritorious housing discrimination cases. TENANT LEGAL ASSISTANCE Activities included legal assistance in about 72 housing court actions within the region, which involved important housing rights, such as eviction court cases involving issues of housing discrimination, substandard conditions, or retaliation for exercising a lawful right. HOUSING DISPUTE EVALUATION & RESOLUTION • Activities included assisting more than 5,400 regional - households to objectively evaluate over 17,800 housing issues that were in dispute. FY 2006 Consolidated Annual Performance and Evaluation Report Page 3 City of Newport Beach MEDIATION PROGRAM Activities included resolving over 267 disputes through mediation or conciliation. Certified mediators assisted housing providers /consumers to reach agreements about their disputes without litigation. This program requires staffing an office in the Central Court House as well as providing mediation within the community. 2. FHCOC applied for and received FHIP funding to investigate the disparity in denial rates as evidenced by the HMDA data. The testing indicated that systemic discrimination occurs within some of the mortgage lenders within Orange County Recommendation: Local jurisdictions provide funding for a proactive educational campaign focusing on the lending industry. It is important to ensure that lenders obtain education on fair housing laws prior to beginning strong enforcement action. However, this does not preclude enforcement action in cases involving intentional discriminatory actions or practices. Action: FHCOC intends to develop and market lending industry training. Milestone: The FHCOC has developed an education program to market to the lending industry. The cost of presenting the education will be covered by lending professionals attending the seminars. Implementation: By the beginning of FY 2007 FHCOC will prepare and begin implementation of a marketing plan aimed at the lending sector. 3. Local jurisdictions do not have formal fair housing education systems in place for employees who impact fair housing issues, such as, planningizoning 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. Action: During FY 2006 FHCOC provided fair housing training sessions open to all local government staff at a non - profit rate. Flyers were distributed to local government offices. Milestone: Scheduled and held the training sessions. Implementation: FHCOC sent notices to city staff. City staff may attend the training as appropriate and receive certification of attendance. 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. Action: The FHCOC provides written materials in three languages for use by local jurisdictions and other service providers. It also had a special outreach project to immigrant populations in low- income neighborhoods to assist in informing and organizing the populations. FY 2008 Consolidated Annual Performance and Evaluation Report Page 4 City of Newport Beach Milestone: Continue to distribute written materials and community education services. Current funding does not exist to continue the outreach project. Implementation: FHCOC will continue to distribute its quarterly newsletter and other materials to service providers, the housing industry and the public. 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. Action: FHCOC is able to conduct this audit with proper funding. Currently funding for this project is not available. Milestone: Conduct an audit of selected zip codes during the next fiscal year if funding for such a project can be obtained. Implementation: Review demographic data to determine areas in which high numbers of minority populations live and conduct a testing audit of insurance carriers. Review and analyze the audit results. 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 of government funds for housing related programs to assist the jurisdiction to affirmatively further fair housing. Action: This local jurisdiction monitored and reviewed its policies to insure compliance with fair housing laws. The jurisdiction required all potential recipients of government funds for housing related programs to assist the jurisdiction affirmatively further fair housing. Milestone: Local governments will include a requirement for all recipients of federal funds to assist in affirmatively furthering fair housing. Implementation: Local governments will include the requirement in all contracts involving federal money. ADDITIONAL ACTIVITIES During FY 2006 FHCOC implemented its FHIP project. Activities focused on immigrant populations, especially those with limited English proficiency. The recently begun activities focused on discrimination effecting persons with disabilities, which was an area that did not receive much focus during the preparation of the 2000 A.I. FY 2666 Consolidated Annual Performance and Evaluation Report Page 5 City of Newport Beach SPECIAL NEEDS POPULATION OBJECTIVES The Strategic Plan must address the needs of persons who are not homeless but require supportive housing, including the elderly, frail elderly, persons with disabilities, persons with alcohol or other drug addiction, persons with HIV/AIDS and their families. The Strategic Plan specifically calls for the City to: 1. Increase accessibility to public facilities 2. Improve supportive services to elderly residents 3. Improve supportive services to those with substance addictions 4. Improve supportive services to those living with HIV/ AIDS INCREASE ACCESSIBILITY TO PUBLIC FACILITIES The City budgeted and expended $50,000 for ADA improvements to public sidewalks. This project provided greater mobility to persons in wheelchairs and other mobility impairments. Improvements included the installation of 22 ADA access ramps citywide. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 6 �G IMPROVE SUPPORTIVE SERVICES TO ELDERLY RESIDENTS FISH Harbor Mobile Meals ONE YEAR GOAL: 31 PEOPLE ONE - YEAR ACCOMPLISHMENTS: 46ELDERLY ON TARGET? 148% This social service agency delivered 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. IMPROVE SUPPORTIVE SERVICES TO THOSE WITH SUBSTANCE ADDICTIONS Serving People in Need (SPIN) — Substance Abuse Rehabilitation Program ONE YEAR GOAL: 6 PEOPLE ONE -YEAR ACCOMPLISHMENTS: 6 PEOPLE ON TARGET? 100% This program provided access to recovery programs to homeless and low income individuals who 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. Six (6) Newport Beach residents benefited from services during the program year at a cost of $8,000. Funds were used operational costs and therefore benefited non - resident clientele as well. The program serves approximately 570 individuals overall. IMPROVE SUPPORTIVE SERVICES TO THOSE LIVING WITH HIV / AIDS Emmanuel House — Food Pantry ONE -YEAR GOAL: 40 PEOPLE ONE -YEAR ACCOMPLISHMENTS: I PERSON ON TARGET? 2.5% This program provided program supplies and nutritional supplements to a transitional housing residence that caters to persons living with AIDS. This is the only shelter of its kind in Orange County. Overall, 65 Orange County residents were served during the program year. One (1) of the participants was from Newport Beach. FY 2008 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 7 I, HOMELESS OBJECTIVES The Strategic Plan addresses the needs of persons who are homeless and are at risk of homelessness. 1. Preserve the supply of emergency and transitional units available 2. Assist homeless and those at risk of homelessness 3. Assist homeless battered women and children PRESERVE THE SUPPLY OF EMERGENCY AND TRANSITIONAL UNITS AVAILABLE While no emergency shelter or transitional housing facilities are located in Newport Beach, the provision of shelter is a priority for the City. Five (5) of the eight (8) public service agencies receiving CDBG funds from the City provided emergency or transitional housing for homeless persons. These funded programs were: WISEPiace Steps to Independence, SPIN Substance Abuse Rehabilitation Program, Fish Harbor Homeless Prevention, Orange Coast "Interfaith Shelter, and Emmanuel House. ASSIST HOMELESS AND THOSE AT RISK OF HOMELESSNESS WISEPlace — Steps to Independence Program ONE -YEAR GOAL: 80PEoPLE ONE- YEARACCOMPLISHMEIM. I PERSON ON TARGET? 1.25% The "Steps to Independence" Program provided transitional shelter, food, clothing, counseling, and employment assistance to homeless women without children. In FY 2006, the program served a total of 57 women in need. 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 Gasses are offered. The shelter is located at 1411 N. Broadway in Santa Ana. FISH Harbor Homeless Prevention ONE -YEAR GOAL: 40PEOPLE ONE- YEARACCOMPLISHMENTS: 21PEOPLE ON TARGET? 52.5% This program provided rental and/or utility assistance, supplemental groceries, and case management to 21 low- income households in Newport Beach. The program helps residents maintain their current level of self - sufficiency when they may otherwise become homeless or go hungry. Serving People In Need (SPIN) — Substance Abuse Rehabilitation Program ONE -YEAR GOAL: 6PEOPLE ONF-YEARAccowLISHMENTS: 6PEOPLE ON TARGET ? 100% This program provided access to recovery programs to homeless and low income individuals who 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. Six (6) Newport Beach residents benefited from services during the program year at a FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 8 cost of $8,000. Funds were used operational costs and therefore benefited non - resident clientele as well. The program serves approximately 570 individuals overall. Orange Coast Interfaith Shelter — Temporary Shelter ONE -YEAR GOAL: 100 PEOPLE ONE -YEAR ACCOMPLTSHMENPS: 11 PEOPLE ON TARGET? I I% This program provided emergency shelter and transitional housing. The program goal is to provide services to up to 100 persons on any given day. This program received $8,000 in CDBG funding for FY 2006. OCIS is one (1) of only two (2) emergency shelters in Orange County. 11 Newport Beach residents were served by this program during FY 2006. ASSIST HOMELESS BATTERED WOMEN AND CHILDREN Human Options — Emergency Shelter for Battered Women a, ONE -YEAR GOAL: S PEOPLE OAF—YEAR ACCOMPLISHMENTS: 2 PEOPLE I ON TARGET? 40016 This program provided emergency shelter, food, clothing, counseling, and legal advocacy to battered women and their Children. Funds will be used to pay for the staff salaries of those who provide counseling and case management services. This program received $3,333 in CDBG funds for FY 2006. The WISEPiace Steps to Independence Program is also designed to serve homeless women, including those who are homeless due to domestic violence. Please refer to the section above for this program's accomplishments. FY 2996 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 9 '3 COMMUNITY DEVELOPMENT GOALS The Strategic Plan calls for the City to pursue the following community development objectives: 1. Stimulate investment through alleviation of physical and economic distress 2. Improve health and safety through rehabilitation of community facilities 3. Preserve neighborhoods and provide economic empowerment to lower income residents 4. Eliminate blight, blighting influences, and prevent deterioration of property STIMULATE INVESTMENT THROUGH ALLEVIATION OF PHYSICAL AND ECONOMIC DISTRESS Public Facility Improvements - Balboa The Balboa Village Improvement Project continued to make progress throughout FY 2006. This comprehensive improvement plan includes the reconstruction of streets; replacement and improvement to existing landscaping, paving, street lighting, signage, and street furniture; the reconstruction of public restrooms; and the construction of storm drains in Balboa Boulevard and Washington Street. The area affected is from Coronado Street on the west to A Street on the east, with Edgewater along, the northern boundary and Ocean Front along the southern boundary. The total project cost is approximately $7.5 million. The City has committed and spent $920,900 of CDBG.entitlement funds through the course of the project. In addition, the City has secured a Section 108 loan with CDBG funds as collateral in the amount of $2.4 million. The City will use future allocations of CDBG to repay the principle and interest owed on the loan. The loan will be repaid over the next twenty years. Other funding sources include the Off- Street Parking Fund, Neighborhood Enhancement Fund, the Gas Tax. Fund, and general funds. The improvements have been implemented in 3 phases. The City recently began work on the third and final phase in September, 2005. The City expects the improvements made to the targeted area will stimulate private investment from local businesses and those local businesses will create new jobs. Code Enforcement Funds for this activity paid for the portion of a code enforcement officers salary. The officer conducted housing inspections in designated low and moderate areas of the City, areas of the Balboa Peninsula in particular, to insure that buildings were in compliance with local health and safety codes. In total, $25,000 was expended for this program. All residents of the CDBG eligible areas on Balboa Peninsula, approximately 5,000 residents, indirectly benefit from this program. IMPROVE HEALTH AND SAFETY THROUGH REHABILITATION OF COMMUNITY FACILITIES Public Facility Improvements — Balboa Please refer to the previous objective, "Stimulate Investment Through Alleviation of Physical and Economic Distress ", for the project details and accomplishments for the Balboa Village Improvement Project. FY 2006 Consolidated Annual Performance and Evaluation Report Page 10 City of Newport Beach /y PRESERVE NEIGHBORHOODS AND PROVIDE ECONOMIC EMPOWERMENT TO LOWER INCOME RESIDENTS Public Facility Improvements - Balboa Please refer to the previous objective, "Stimulate Investment Through Alleviation of Physical and Economic Distress ", for the project details and accomplishments for the Balboa Village Improvement Project. Code Enforcement Please refer to the previous objective, "Stimulate Investment Through Alleviation of Physical and Economic Distress ", for the project details and accomplishments for the Code Enforcement activity. Serving People in Need (SPIN) — Substance Abuse Rehabilitation Program ONE -YEAR GOAL: 6 PEOPLE ONE - YEAR ACCOMPLISHMENTS: 6PEOPLE ON TARGE7710000 This program provided access to recovery programs to homeless and low income individuals who 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. Six (6) Newport Beach residents benefited from services during the program year at a cost of $8,000. Funds were used operational costs and therefore benefited non - resident clientele as well. The program serves approximately 570 individuals overall. WISE Place — Steps to Independence Program ONE -YEAR GOAL: 80 ONE - YEAR ACCOMPLISHMENTS: 1 PERSON ONTARGET? 1.25% The "Steps to Independence" Program provided transitional shelter, food, clothing, counseling, and employment assistance to homeless women without children. In FY 2006, the program served a total of 57 women in need. 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. ELIMINATE BLIGHT, BLIGHTING INFLUENCES, AND PREVENT DETERIORATION OF PROPERTY Code Enforcement Please refer to the previous objective, "Stimulate Investment Through Alleviation of Physical and Economic Distress ", for the project details and accomplishments for the Code Enforcement activity. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 11 �c FURTHER FAIR HOUSING The City's efforts to further fair housing are discussed in depth under the heading entitled "Ensure Universal Access to Fair Housing" of the "Assessment of Goals and Objectives" section of this report. Please refer to this section for more details. AFFORDABLE HOUSING The City did not fund any housing programs with CDBG funds in FY2006. The City supported the development of affordable senior housing project, the "Lower Bayview Project', described above and the administration of Section 8 vouchers. The City also addressed the needs of "worst -case" households through W6 funding of non - profit public service agencies. "Worst -case" households are defined as households that do not receive on -going rental assistance and pay more than one -half of their income for rent or live in severely inadequate housing. These households face the greatest risk of becoming homeless. The City provided public service funds to FISH Harbor to serve these households with one -time financial assistance to prevent eviction and counseling to help the household increase their budgeting skills. The City fosters and maintains affordable housing with local resources such as the in -lieu fee associated with market -rate development and local regulations such as density bonuses, waiver of processing and permitting fees, and the relaxation of development standards. The City continues to look for potential developers of affordable housing for seniors and families to use these available funds. In addition, City staff continued to monitor the number of affordable housing units and enforce the affordability covenants. of units in Newport Beach. Four affordable housing projects funded with CDBG, with a total of 130 units, and a 100 -unit Section 202 funded senior housing project were monitored. CONTINUUM OF CARE In order to address homelessness in an effective, comprehensive manner, HUD asks cities to form Continuums of Care. A Continuum of care refers to an overall plan to coordinate the efforts of all involved parties to meet the needs of homeless persons and persons at risk of homelessness. The components of a continuum Include homeless prevention, emergency shelter, transitional shelter, permanent supportive housing, and supportive services. The overall objective is to move homeless persons and families outside the service delivery system into emergency housing, then to transitional housing, and finally to self - sufficiency or permanent supportive housing. The City of Newport Beach actively participates in the Orange County Continuum of Care, a collaboration of other city jurisdictions, non -profit organizations, and local groups and charities The City is involved with FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 12 the Steering Committee and has assisted in the development of strategies to meet homeless needs. The City also funded several non - profits involved at different stages of the Continuum: Prevention: FISH Harbor Emergency Shelter: Orange Coast Interfaith Shelter (OCIS) Transitional Housing: WISE Place, Serving People In Need (SPIN), and OCIS Permanent Supportive Housing: none Supportive Services: FISH Harbor, WISE Place, and SPIN OTHER ACTIONS ADDRESS OBSTACLES TO MEETING UNDERSERVED NEEDS According to the Consolidated Plan, one of the most undeserved needs in the- Cityis affordable housing to families of extremely low, very low and low income. The City has identified the lack of developable sites, high land costs and limited funding as obstacles to affordable housing. The City has previously adopted policies to overcome these obstacles and to encourage affordable housing production by providing density bonuses and fee waivers. FOSTER.AND MAINTAIN AFFORDABLE HOUSING The City's efforts to foster and maintain affordable housing were addressed in the section above entitled "Affordable Housing ". Please refer to this section for details. REDUCE NUMBERS OF FAMILIES LIVING IN POVERTY The City funded a number of programs that sought to maintain or increase the client's level of self - sufficiency and ability to escape poverty. These programs include: • Wise Place Steps to Independence: helped homeless and other dependent women gain self - sufficiency • SPIN Substance Abuse Rehabilitation Program: administered a substance abuse recovery program so persons may regain their self - sufficiency • FISH Harbor Mobile Meals: provided home delivered meals to seniors to reduce the possibility of institutionalization • FISH Harbor Homeless Prevention: provided rental assistance so households could avoid homelessness and sinking deeper into poverty. EVALUATE AND REDUCE THREAT OF LEAD BASED PAINT The City does not administer a housing rehabilitation program and therefore has no method of directly reducing the threat of lead paint in the community. However, the City has joined into a collaborative with other jurisdictions and the regional housing authority to address the issue of lead based paint. The FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 13 12 purpose of the collaborative is to secure funding to provide low-cost training to testing and abatement contractors and workers. The City pursued other actions as well. City staff monitored lead- poisoning data maintained by Orange County Department of Health Services, educated residents on the health hazards of lead based paint through the dissemination of brochures by City staff and the City's partners in affordable and fair housing. REDUCE BARRIERS TO AFFORDABLE HOUSING The City undertook the following actions to reduce barriers to affordable housing: • Continued to monitor all regulations, ordinances, departmental processing procedures, and residential development fees to ensure these requirements do not excessively constrain affordable residential development. • Continued to enforce the Inclusionary Housing Ordinance that requires market -rate developers to — allocate between 10. and 20 percent of new units for low and moderate -- income households. Developers can also opt for the in -lieu fee. Over $2.5 million of in -lieu fees have been collected to date. In -lieu fees are reserved for the development or preservation of affordable housing. • Continued to offer density bonus incentives for the development of affordable housing pursuant to state density bonus requirements and Newport Beach Housing Element. • Offered a 25% bonus density to the developer of senior affordable housing at Lower Bayview Landing. • Offered fee waivers to developers of affordable housing. ENHANCE INSTITUTIONAL STRUCTURE The City of Newport Beach continued to work with Orange County, the Orange County Housing Authority and various non - profit organizations to provide services to the City's residents. Through the cooperative efforts of these organizations, a variety of housing and community development programs were implemented throughout the community. The City maintained dose contact with social service organizations funded by the City as well as other local service providers to coordinate efforts and reduce duplication of services. IMPROVE PUBLIC HOUSING AND RESIDENT INITIATIVES There are no public housing projects located within the City. ENSURE COMPLIANCE WITH COMPREHENSIVE PLANNING REQUIREMENTS There are no public housing projects located within the City. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 14 1f LEVERAGING RESOURCES The City used its CDBG allocations as collateral to secure a $2.4 million Section 108 loan in the 2001- 2002 program year. These additional funds are being used to a portion of the Balboa Village Improvement Project. The 108 loan will be repaid over the next . twenty years. The City also supported the Continuum of Care Homeless Assistance Grant applicatlon submitted by the Orange County Housing & Community Development Department. SELF - EVALUATION In an effort to identify strengtlis, weaknesses, and opportunities for improvement in the administration of future programs, the City of Newport Beach has responded to following questions suggested by HUD: 1. Are the City's activities and strategies making an impact on identified needs and what indicators would best describe the results? The Executive Summary Table clearly demonstrates that the City is meeting many of the quantifiable goals it proposed in the Consolidated Plan and the One -Year Action Plan. However, the City feels many of its programs have indirect benefits that are difficult to measure. For example, the full benefits of the Balboa Public Facility Improvements will not be realized . until private businesses capitalize on the public investment and expand their operations and hire new staff. 2. What barriers may have a negative impact on fulfilling the strategies and the overall vision? The City cannot identify any barriers at this time. 3. What is the status of the City's grant programs and are any activities or types of activities falling behind schedule? All activities and programs are operating in a timely manner. 4. Are grant disbursements timely, and do actual expenditures differ substantially from letter of credit disbursements? In regard to the CDBG program, the City is considered be timely in expenditures if it has less than 150% of its allocation amount available to spend 60 days before the close of the fiscal year. The City does not foresee any problems in meeting this target. FY 2006 Consolidated Annual Performance and Evaluation Report Page 15 City of Newport Beach /9 5. What, If any, adjustments or improvements to strategies and activities might meet your needs more effectively? In FY 2007, the City will work more closely with its funded subrecipients in developing more meaningful measurements. The City would like to focus more on outcomes than outputs. For example, if the subrecipient is administering a job training program, the City is more interested in knowing how many clients graduate and find a job as a result than how many people took one course. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 16 �U CDBG NARRATIVE STATEMENT a) Assessment of final use of funds to priorities identified in Consolidated Plan, especially those Identified as high priority. The City indicated a number of high priorities in its Consolidated Plan, including commercial / industrial infrastructure development, street and sidewalk improvements, tree planting, privately owned utilities, public facilities (general), parks and recreational facilities, and parking facilities. In FY 2006, the City continued to make progress on the Balboa Village Improvement Project. This project will address many of the needs listed above, such as commercial / in infrastructure development, street and sidewalk Improvements, tree planting, parking facilities, and public facilities (general). b) Analysis of how funds were distributed among different categories of housing needs identified in Consolidated Plan The City did not use CDBG funds to meet any of the housing needs established by the Consolidated Plan. The City used in-lieu fees generated from market -rate developers to fund affordable housing projects. c) Evaluate the extent CDBG funds were used to benefit low and moderate income persons. According to the CDBG Financial Summary Report (PR26) generated by HUD's Integrated Disbursement and Information System (IDIS), 100 percent of the City's CDBG expenditures went toward satisfying the national objective of serving persons of low and moderate income. d) Describe the nature and reasons behind any changes In program objectives. There were no changes to the overall program objectives in FY2006. e) Describe how the jurisdiction will change its programs as a result of its experiences. The City will evaluate its performance measurement system to ensure that data submitted by subrecipients is meaningful. f) Other Statements The City pursued all resources described in the FY 2006 One -Year Action Plan. The City provided certifications of consistency to non - profits that were pursuing activities and projects that worked toward meeting the strategic objectives and national objectives found in the Consolidated Plan. The City did not hinder the implementation of any portion of the Consolidated Plan through any action or willful inaction. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 17 C-1/ g) National objective / Overall benefit certification According to the CDBG Grantee Performance Report generated by HUD's Integrated Disbursement and Information System (IDIS), all CDBG funded activities, with the exception of Administration, fair housing, and section 108 repayments, satisfied the LowlModerate Income National Objective. In the FY2006 One -Year Action Plan, the City certified that at least 70 percent of all CDBG funded activities would primarily benefit low and moderate - income persons. According to the CDBG Financial Summary Report (PR26) generated by HUD's Integrated Disbursement and Information System (IDIS), 100 percent of the City's CDBG expenditures went toward satisfying the national objective of serving persons of low and moderate income. h) Displacement / Relocation The City did not undertake any CDBG- funded activities that involved displacement or relocation. i) Economic Development t/ Job Creation The City did not undertake any CDBG - funded activities that involved economic development or job creation. j) Low and Moderate Clientele Activities The City funded several activities on the basis that at least 51 percent of the beneficiaries of the service would be of low or moderate income. All funded services that qualified as a Low /Mod Clientele activity either served homeless persons, who qualify as a presumed benefit sub - population, or verified the income of the beneficiary upon intake. At least 51 percent of beneficiaries for each CDBG- funded activity were documented or presumed to be of low and moderate income. k) Program Income The City did not receive any CDBG program income in FY 2006. 1) Neighborhood Revitalization Strategy Area The City did not have a Neighborhood Revitalization Strategy Area in FY 2006. FY 2006 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 16 2? PUBLIC PARTICIPATION The City encourages input and feedback on its performance in meeting the objectives of the Five -Year Strategic Plan from concerned residents and local advocacy groups. The City provides a public review and comment period for a draft version of this document, the CAPER, and also holds a public hearing to solicit input. A draft copy of the CAPER covering FY 2006 was made available from August 29 to September 12, 2006. To date, no public comments have been received. The public hearing to solicit public input and comment on the CAPER and the City's performance during FY 2006 was held at the Newport Beach City Council Chambers at 3300 Newport Blvd, Newport Beach, California. No public comments were made. Notice of both the public comment/review period and the public hearing was published in the Daily Pilot, a newspaper of local circulation. A copy of the Notice appears below. FY 2666 Consolidated Annual Performance and Evaluation Report Page 19 City of Newport Beach