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Home My WebLink About15 - Community Development Block Grant - Amended Attachment CC2"Received After Agenda Printed" May 12, 2015 Item No. 15 Amended Attachment CC2 SP -70 Anti - Poverty Strategy — 91.215(j) Jurisdiction Goals, Programs and Policies for reducing the number of Poverty -Level Families Similar to other communities in Orange County and across the nation, poverty continues to be a significant challenge. According to the 2007 -2011 American Community Survey 5 -Year Estimates, there are 6,007 Newport Beach residents living in poverty. In an effort to meaningfully address this challenge, all nine goals of the 2015 -2019 Strategic Plan are aligned to support activities that promote the availability of affordable housing and provide essential services that directly benefit low- and moderate - income residents. In the implementation of the Plan, the City will prioritize funding for activities that most effectively address the Plan goals over the next five years. This strategy will emphasize using CDBG funds to help individuals and families rise out of poverty to long -term self- sufficiency. The implementation of CDBG activities meeting the goals established in this Plan will help to reduce the number of poverty -level families by: • Supporting activities that expand the supply of housing that is affordable to low- and moderate - income households, including proiects approved under the State Density Bonus law and other projects undertaken with the City's Affordable Housing Trust Fund .t of eveFy ..I.... 641...ted side..t:-.I p ..t OR the City; • Supporting a continuum of housing and public service programs to prevent and eliminate homelessness; • Supporting housing preservation programs through the County that assure low income households have a safe, decent and appropriate place to live; • Supporting public services through the nonprofits funded by CDBG that serve the community's youth, seniors, families and those with special needs; and • Promoting economic opportunity for all residents working for employers doing business with the City of Newport Beach through the City's Commercial Facade Program. In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide a pathway out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi -Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs Consolidated Plan NEWPORT BEACH 141 OMB Control No: 2506 -0117 (exp. 07/31/2015) Affordable Housing AP -55 Affordable Housing- 91.220(g) Introduction Although there are two high priority affordable housing needs that have been identified in the 2015 -2019 Consolidated Plan, the City of Newport Beach will attempt to leverage other funding sources such as the Affordable Housing Trust Fund to address the priority needs associated with affordable housing needs identified below. Expand the Supply of Affordable Housing Based on evaluation of 2007 -2011 ACS and CHAS data, there is a high need for additional rental housing units affordable for households earning less than 50 percent of AMI. Of the households earning 0 -80 percent of AMI, 7,790 are cost burdened households — meaning households paying more than 30 percent of their income for housing. Additionally, 5,805 of the cost burdened households are considered severely cost burdened households — meaning that they pay more than 50 percent of their income for housing. Of the 5,805 severely cost burdened households, 3,580 are renters. Of those severely cost burdened renter households, 2,945 households earn less than 50 percent of AMI and are considered the most at risk of becoming homeless. The City will continue to use its Affordable Housing Trust Fund and other available options under the State Density Bonus law the Gi.•'.. i..,-i„S;^..aFy 9,...i.,,. ^.a,..-..,.-, •' E4L0 create additional aaa#es— affordable housing, an iAtegFal .,.t ,.r evelty newly rAngtFarted sideRtial p ...-t i.. the Git., to FURd f-Al-11P @ffAF.J..131.. h86l Si Rg P ...-tom Preserve the Supply of Affordable Housing As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to allow them to remain safe and habitable. The situation is of particular concern for low- and moderate - income homeowners who are generally not in a financial position to properly maintain their homes. The age and condition of Newport Beach's housing stock is an important indicator of potential rehabilitation needs. Commonly, housing over 15 years of age will exhibit deficiencies in terms of paint, weatherization, heating / air - conditioning systems, hot water heaters and finish plumbing fixtures. Housing over 30 years of age will typically some form of major rehabilitation, such as roof replacement, foundation work and plumbing systems. According to CHAS data showing the year that housing units were built categorized by owner and renter tenure: Consolidated Plan NEWPORT BEACH 155 OMB Control No: 2506 -0117 (exp. 07/31/2015) • 5,363 or 26 percent of the 20,950 owner - occupied housing units built between 15 and 34 years ago (built between 1980 and 1999). • 12,619 or 61 percent of the 20,950 owner - occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). • 3,934 or 23 percent of the 17,098 renter - occupied housing units in Newport Beach were built between 15 and 34 years ago (built between 1980 and 1999). • 11,655 or 68 percent of the 17,098 renter - occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). Preservation of the physical and functional integrity of existing housing units occupied by low - and moderate - income households is a cost - effective way to invest limited resources to retain existing housing units that are already affordable to low- and moderate - income households in the community. Addressing substandard housing conditions through housing preservation activities ensures that all economic segments of the community have the opportunity to live in decent housing that meets local standards. One Year Goals for the Number of Households to be Supported Homeless 165 Non - Homeless 0 Special -Needs 10 Total 175 Table 61- One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 0 Acquisition of Existing Units 0 Total 0 Table 62 - One Year Goals for Affordable Housing by Support Type Discussion The Strategic Plan identifies a high priority need to expand the supply of affordable housing. However, the City will use other funding sources and methods to create affordable housing opportunities such as the Affordable Housing Trust Fund and the State Density Bonus law.6ity s ..................., _.-. ....o �..... ......, _, ................_.. _..... _......._ ...- ........o --- ...- _a.... r--- -.. _._. , .._..., ,-..R5#llGtPd FegideRtial PF9jeGt OR the Qt., W FURd 41WIPP -.F APPI-.L.I.. hA'-'qi.... PF9jeGt6 Consolidated Plan NEWPORT BEACH 156 OMB Control No: 2506 -0117 (exp. 07/31/2015) Discussion: To address housing affordability and the lack of monetary resources for affordable housing, the City will invest athe. Weal, state and fedeFal funds eh as the City's Affordable Housing Trust Fund resources and the r-,.,' . Re 61509..-..., Z,..,;..,, r,.,,,..-..,,., . hiGh makes ageFdah a he , - ..n integlcal pa Ft ,.r ,..,,,_., newly ,.,...g....,..,.,, FPqil4Pl#ial PlFejest iA the &ty to incentivize the development of fi -Rd affordable housing pFe}eets during the five -year period of the Consolidated Plan. In addition, the City will continue to work with the County and refer low - and moderate income residents for participation in their Housing Rehabilitation Program. Consolidated Plan NEWPORT BEACH 163 OMB Control No: 2506 -0117 (exp. 07/31/2015) • Supporting activities that expand the supply of housing that is affordable to low- and moderate - income households, including investment of the City's Housing Trust Fund resources and using the State Density Bonus law to incentivize the development of additional affordable housing unitsl..Gl„siaF;.>„ Zoning QFdii,,..,.,, (whirl; m;;k^° rr{� {``..11...IRL.I.. IRA USiRg ..tee Fal Pak ..F a .,I.. G ..4tr1 tPd gm.�I....tm-.I .. eet O.. the &9 ; • Supporting a continuum of housing and public service programs to prevent and eliminate homelessness; • Supporting housing preservation programs that ensure low income households have a safe, decent and appropriate place to live; • Supporting public services through various nonprofits funded by CDBG that serve the community's youth, seniors, families and those with special needs; and • Promoting economic opportunity for all residents working for employers doing business with the City of Newport Beach through the Commercial Fagade Improvement Program. In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide a pathway out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and Medi -Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence and mental illness. Actions planned to develop institutional structure The institutional delivery system in Newport Beach is high- functioning and collaborative — particularly the relationship between local government and the nonprofit sector comprised of a network of capable community -based organizations that are delivering a full range of services to residents. Affordable housing development and preservation activities will be carried out by the Planning Division of the Community Development Department in partnership with other agencies. Public service activities will be carried out by nonprofit organizations to achieve the Strategic Plan goals. The Planning Division and the Engineering Department will work together with contractors to implement public facility improvement projects. One of the key ways the City is developing and expanding institutional structure to meet underserved needs is by funding a wide variety of services targeted to seniors, special needs populations and individuals or families at risk of homelessness with CDBG public service grants. Consolidated Plan NEWPORT BEACH 165 OMB Control No: 2506 -0117 (exp. 07 /31/2015)