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HomeMy WebLinkAbout06 - CAPER for Program Year 2002-2003CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 September 23, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Daniel Trimble, Program Administrator (949) 644 -3230 dtrimble(a�city. newport- beach.ca.us SUBJECT: Consolidated Annual Performance & Evaluation Report (CAPER) for Program Year 2002 -2003 SUMMARY: As part of the annual Community Development Block Grant administration process, the City must submit a CAPER for FY 2002 -2003. RECOMMENDATION: 1. Conduct public hearing, and 2. Approve the FY 2002 -2003 CAPER and direct staff to submit the document to all appropriate parties. BACKGROUND: On April 22, 2002, the City Council approved the 2002 -2003 One -Year Action Plan, a report required by the U.S. Department of Housing and Urban Development (HUD) as part of the Community Development Block Grant Program. The One -Year Action Plan details how the City proposes to use federal funds for the course of one program year. The second required report, the Consolidated Annual Performance Report (CAPER), complements the first by reporting to HUD and the general public how the City actually used the grant funds. During Fiscal Year 2002 -2003, the third year of the 2000 -2005 CPD, the City received $490,000 in funding. The City is currently implementing the FY 2003 -2004 One -Year Action Plan, the fourth year of the FY 2000 -2005 CPD. Development of the next One - Year Action Plan for that year will begin in January. CAPER September 23, 2003 Page 2 Overview of Federal Eligibility Requirements and Criteria: There are a wide variety of eligible activities under the CDBG program. The following activities were approved in the City's Five Year Consolidated Plan: land acquisition, clearance, and disposition; the acquisition, development or improvement of public services and facilities in low- income areas; removal of architectural barriers; public /social services; relocation assistance; commercial property rehabilitation; job creation and economic development. CDBG program statutes establish three basic goals: 1) Provide decent housing; 2) Provide a suitable living environment; and 3) Expand economic opportunities. Activities assisted with CDBG funds must also accomplish at least one of the three national objectives of the program: 1) Benefiting low- and moderate - income persons; 2) Preventing slums and blight; or 3) Responding to urgent health and safety needs. HUD regulations also require that cities spend at least 70% of their program funds to principally benefit low- and moderate- (L /M) income persons. If an activity does not benefit UM income persons, it must meet specific HUD standards to qualify under one of the other national objectives. Further details regarding program criteria and eligible activities are provided in Attachment 1. Consolidated Annual Performance and Evaluation Report, 2002 -2003: HUD regulations also require that citizens have an opportunity to review the CAPER (Attachment 2), which measures the City's performance in relation to anticipated goals as set forth in the One Year Action Plan. The CAPER shows that FY 2002 -2003 funds were spent in accordance with the allocations made in the approved One -Year Action Plan, as summarized below. Work on Balboa Peninsula Revitalization activities began in FY 1997 -98. Funding for this activity has been utilized during every fiscal year since the 1997 -98 Fiscal Year. Category Public Service Activities Capital Improvement Projects Program Administration Total % of FY 2002 -2003 Budget 15% 65% 20% 100% FY 2002 -2003 Expenditures $73,500 $225,140 $64,588 $363,228 CAPER September 23, 2003 Page 3 Newport Beach Priorities: For the 2002 -2003 program year, Newport Beach focused its CDBG program on economic revitalization of the Balboa Peninsula. Revitalization efforts funded by 2002- 2003 CDBG funds include revitalization of public facilities and infrastructure in the Balboa Village area, repayment of a section 108 loan, and additional code enforcement. In addition to economic development activities, 2002 -2003 funds supported public service activities with the maximum 15% permitted by HUD. This component of Newport Beach's CDBG program is expected to continue at approximately the same level. Conclusion: This action is intended to satisfy HUD regulations on the submittal of the CAPER and close out the administration of the FY 2002 -2003 grant. Administration of the FY 2003- 2004 grant began on July 1, 2003. The FY 2004 -2005 application and public participation process for the One -Year Action Plan will get underway in January. Public Notice and Review: The draft CAPER is available for public review and comment from September 9th to September 23rd, 2003. Notice of the review period and the public hearing was published in the August 30th Edition of the Daily Pilot. Environmental Review: None required for the approval of the CAPER. Prepared by: ok--- Daniel Trimble Program Administrator Submitted by: S aron Wood Assistant City Manager Attachment 1: Summary of CDBG Program Criteria and Eligible Activities Attachment 2: Consolidated Annual Performance and Evaluation Report (CAPER) CAPER September 23, 2003 Page 4 Attachment 1 Summary of CDBG Program Criteria and Eligible Activities A. NATIONAL OBJECTIVES: Summarized below are the CDBG program criteria under the three national objectives of benefiting low- and moderate - income persons, preventing slums and blight, and responding to urgent health and safety needs. 1. Benefiting Low- and Moderate - Income Persons Low- and moderate -(L/M) income persons are defined as persons, households or families earning less than 80% of the HUD area median income adjusted by the number of persons. Activities that benefit L/M income persons are grouped into four categories: 1) Area benefit activities; 2) Limited clientele activities; 3) Housing activities; and 4) Job creation or retention activities. Area Benefit Activities: A qualifying area benefit activity meets the identified needs of L/M income persons residing in an area where at least 51 % of the residents are L/M income persons. For cities such as Newport Beach with fewer than 25% of its populated census block groups containing 51% L/M income persons, the regulations allow "exception criteria" to be used. HUD defines an "exception criteria area" as any residential area where the proportion of L/M income persons falls within the top 25% of all residential areas of the City. For Newport Beach, there are 20 block groups containing 29% or more L/M income persons that qualify under the exception criteria. These 20 L/M income block groups are located in 8 of the City's 23 census tracts. Even though an activity occurs within an exception criteria area the activity may not necessarily qualify as benefiting L/M income persons. In order to qualify as benefiting L/M income persons, the activity must be located in an L/M income area that is predominately residential and the City must demonstrate the benefit to L/M income persons. Improvements to structures or public facilities that do not principally benefit L/M income persons will not qualify, even though the improvement occurs in an exception criteria area. For cities that are entirely or predominately comprised of L/M income census tracts and /or block groups, it is assumed that activities occurring within those areas benefit L/M income persons. For commercial districts located within eligible residential areas, activities to improve commercial properties must show a benefit to L/M income persons. Limited Clientele Activities: A limited clientele activity benefits a specific group of people, at least 51 % of who are L/M income persons. Generally, it is a "presumed" CAPER September 23, 2003 Page 5 L/M income benefit if the activity assists groups known to be more than 51% of L/M income persons. HUD defines these groups as the handicapped, elderly persons, battered spouses, abused women, homeless, illiterate persons, and migrant farm workers. If the clientele is not from a "presumed" L/M income group, documentation must be provided or family size and income to establish that at least 51% are L/M income persons. Recent regulatory changes have added microenterprises (business employing 5 or fewer persons) and job training placement to the eligible list of limited clientele activities when it is demonstrated that the activity benefits L/M income persons and meets other conditions. Housing Activities: Housing activities that create new housing or improve existing residential structures that will be occupied by L/M income persons, households and families are in this category. Job Creation or Retention Activities: A job creation or retention activity creates or retains permanent jobs, at least 51% of which are either taken by L/M income persons or are considered available to L/M income persons. Only permanent jobs are eligible for assistance. The business must use a hiring practice to assure over 51 % of the persons hired meet L/M income criteria. Funds can be used to assist a business in establishing or expanding its operation. To conduct a job retention activity, the City must document that the jobs will actually be lost without the CDBG assistance and that 51% of the jobs are held by L/M income persons. However, any job creation or retention effort undertaken pursuant to a Neighborhood Revitalization Strategy is considered to meet the standard CDBG L/M income area benefit requirements and businesses that receive assistance are not required to track the specific income of applicants they hire or interview, only account for the overall number of persons. 2. Preventinq Slums and Blight An activity that prevents slums and blight may be done on an area or spot basis. If it is done on an area basis the activity must occur in an area that meets an adopted definition of a slum, blighted, deteriorated or deteriorating area under state or local law. If an activity is done on a spot basis, rather than in a defined area, the activity is limited to elimination of conditions detrimental to public health and safety. A redevelopment area is considered to meet the definition of slum and blight. Since the City does not have a redevelopment agency, areas must be designated using a definition of slum, blight, and deteriorated or deteriorating that is adopted in state or local law. 3. Urgent Health and Safetv Need An urgent health and safety activity responds to a condition posing a serious and immediate threat to the health and welfare of the community. The condition must be CAPER September 23, 2003 Page 6 of recent origin or recently become urgent. The City must be unable to finance the activity on its own and other resources must not be available. B. ELIGIBLE ACTIVITIES: The following is a brief discussion of the activities eligible under CDBG regulations and included in the City's five -year strategy. 1. Land Acquisition Funds can be used to assist with the acquisition of land providing the activity ultimately benefits L/M income persons or meets another national objective. The City has used CDBG funds in previous years to "write down" the cost of land for development or redevelopment of properties with new housing units. Since 1985, the City has assisted developers of five housing developments using CDBG funds, resulting in over 180 new housing units. 2. Public Facilities and Improvements Funds can be used to assist with the acquisition, construction, reconstruction or rehabilitation of public improvements or facilities such as street improvements provided the activity meets a national objective such as benefiting L/M income persons. The City has used its CDBG funds in previous years to acquire a community center, remove architectural barriers and assist public service organizations. In the next few years funds are budgeted for improvements on Balboa Peninsula such as design of an entry statement, the Balboa Boulevard beautification feasibility study, and the Newport/Balboa Boulevard "Mixmaster" feasibility study. All these activities meet the national objective of benefiting L/M income persons based on "area benefit ". 3. Public /Social Services Up to 15% of the City's entitlement funds can be used to assist public and social service agencies. These activities must address the national objective of benefiting L/M income Humanity (FISH), Street People In Need (SPIN), Young Women's Christian Association (YWCA), Orange Coast Interfaith Shelter (OCIS), South County Seniors (SCS) meet the national objective of benefiting L/M income persons based on "limited clientele ". 4. Microenterprises Funds may be used to assist L/M income owners to develop, establish, stabilize, expand or generally support microenterprises. A "microenterprise" is a business employing 5 or fewer persons. Microenterprise was recently added as an eligible activity. The City has not funded any microenterprises in prior years. CAPER September 23, 2003 Page 7 5. Commercial Rehabilitation Funds can be offered in the form of grants, loans, and loan guarantees for fagade improvements to commercial buildings provided the activity benefits L/M income persons; the project is within a neighborhood revitalization area; or the area meets the criteria for slum and blight. Buildings that contain businesses offering goods and services that are not priced or accessible to L/M income persons are not eligible. The business community has expresses interest in Commercial Rehabilitation activities such as a fagade improvement program and sidewalk enhancement as part of the Balboa Peninsula Revitalization efforts. 6. Special Economic Development Funds may be used to create or retain jobs for UM income persons as part of an economic development project. Only permanent jobs are eligible, and new jobs must be taken by or considered available to L/M income persons. When creating jobs the business must use a hiring practice that will ensure that over 51% of the new positions are filled by L/M income persons. Funds can be used to assist a business in establishing or expanding its operation. To conduct a job retention activity, the City must document that the jobs will actually be lost without the CDBG assistance and that 51 % of the jobs are held by L/M income persons. The amount of assistance to a business must be proportionate to the number of jobs being created or retained, up to a maximum of $35,000 per job. The City has not specifically funded this activity but activities being funded under the category of Public Facilities and Improvements will result in the creation of jobs available to L/M income persons. 7. Activities by Community Based Development Organizations A CBDO can be either a for - profit or non - profit association or corporation that has been in operation for at least a year and is organized under the state or local law to engage in community development activities within an identified geographic area of operation within the City. At least 51 % of its governing body's membership must be L/M income residents or other individuals representative of its geographic area of operation; it may not be an agency or instrumentality of the City, and no more than one -third of the membership of its governing body may be appointed by, or consist of, elected or other public officials or employees. Funds may be used to carry out neighborhood revitalization, community economic development, or energy conservation programs. Activities must also meet one of the national objectives. The City is not aware of any organization within the community that qualifies or could qualify under this category. Executive Summary The City of Newport Beach receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The purpose of these funds is to assist the City in meeting the affordable housing and community development needs of its residents, particularly those of persons and families considered to have low or moderate levels of income. In order to use these funds to meet the greatest existing need within the community, the City undertakes a planning process known as the Consolidated Planning Cycle. This process is documented by three reports: (1) The Consolidated Plan, (2) The One -Year Action Plan, and (3) the Consolidated R rt CAPER Annual Performance and Evaluatlon epo ( ). This report is a CAPER for the 2003 Program Year (PY2003), which started July 1, 2002 and ended June 30, 2003. Where the Consolidated Plan and One -Year Action Plan described what the City planned to do, the CAPER details what the City actually accomplished. In PY2003, the City had the following federal resources available to administer its Consolidated Plan: FY 2003 CDBG $490,000.00 CDBG Program Income $0.00 CDBG Reallocation* $79,870.32 TOTAL CDBG $569,870.32 Not all reallocated funds were available at beginning of 2002- 2003 and were not available to be budgeted for the program year. With these funds, the City administered 10 programs / projects and made substantial progress on most of the objectives included in the Five -Year Strategic Plan. Accomplishments for the year are summarized on the table on the following page. Some highlights include: What is the Consolidated Plan? Every five years the City determines the different levels of need within its jurisdiction through public hearings, consultations with local social service providers, and quantitative research. The result is a Needs Assessment that the City uses as the basis for its Strategic Plan. The Strategic Plan is a compilation of goals and objectives the City will pursue in order to alleviate and satisfy the community's affordable housing and community development needs. Together, the Needs Assessment and the Strategic Plan form the Consolidated Plan. The City adopted their latest Consolidated Plan in May of 2000. The Plan will stay in effect until June 2005. What is the 1 -Year Action Plan? In addition to the Consolidated Plan, which plots a general course of actions, the City also develops a One -Year Action Plan each year that the City utilizes federal grant funds. The One -Year Action Plan describes specific projects and activities the City will undertake, as well as the different financial resources it will use to meet the affordable housing and community development needs. • Assisted 1 Newport resident, 10 persons overall, with substance abuse treatment to help them regain a level of self - sufficiency (SPIN). • Provided an average of 16 nights of temporary shelter per month to Newport residents (OCIS). • Assisted 179 homeless women with temporary shelter and supportive services (WISEPLACE). • Provided meals to 43 homebound seniors to maintain level of self - suffiency and avoid institutionalization (FISH HARBOR). • Assisted 66 households avert eviction and homelessness (FISH HARBOR) • Made fair housing services universally available to all Newport Beach residents (FAIR HOUSING COUNCIL) 2002 -2003 Consolidated Annual Performance and Evaluation Report Page i City of Newport Beach ASSESSMENT OF GOALS AND OBJECTIVES In order to gauge the City's progress in meeting the goals and objectives included in the PY2000 -2004 Five -Year Consolidated Plan, the accomplishments of PY2002 are summarized below according to the Strategic Plan. The Strategic Plan included the following strategies: Foster and Maintain Affordable Housing • Develop 139 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 Obiectives • 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. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 1 ry City of Newport Beach "I 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 139 units of senior housing 2. Maintain current level of Section 8 Vouchers 3. Ensure universal access to fair housing DEVELOP 139 UNITS OF SENIOR HOUSING Lower Bayview Project ONE -YEAR GOAL: 10 UNITS ONE - YEAR ACCOMPLISHMENTS: 9UNTTS ON TARGET? 90% This program rehabilitated 9 mobile homes, all owner occupied by seniors, located in The Groves and The Meadows Trailer Parks. 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. 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 called the "Analysis of Impediments to Fair Housing ", or Al, 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 City's last Al was updated in December of 2001. The following is a list of impediments cited in the plan: • 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. • Outreach and Education A lack of a standard fair housing education system may leave gaps in communities. In addition, some immigrant populations may not be aware of the right to fair housing. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 2 City of Newport Beach 0 I • 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 address these impediments and to ensure that all Newport Beach residents have access to fair housing services, the City continues to partner with the Fair Housing Council of Orange County ( FHCOC). Some of the work FHCOC has accomplished on behalf of the City include: • FHCOC assisted 329 Newport Beach households throughout the program year with fair housing counseling and enforcement activities, including landlord / tenant disputes and complaints of discrimination. • FHCOC was recently awarded a grant from HUD under the Fair Housing Initiatives Program (FHIP) and will use these funds to analyze Home Mortgage Disclosure Act (HMDA) data analysis in order to determine if there is a correlation between loan denial rates and concentrations of immigrant populations. • FHCOC has created and aired two public service announcements in the Southern California media. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 3 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 did not undertake any activities during the program year that address this objective. Funds will be used to address this objective in future program years of this Consolidated Plan. For example, $50,000 has been budgeted to ADA Compliance in the 2003 -2004 program year. IMPROVE SUPPORTIVE SERVICES TO ELDERLY RESIDENTS South County Senior Services ONE -YEAR GOAL: 115 ELDERLY ONE -YEAR ACCOMPLNILVENTS: # ## ELDERLY ON TARGET? 90% This social service agency provided meals on site and also 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. FISH Harbor Mobile Meals ONE- YEARGO.4L: 75ELDERLY ONE - FEARACCOMPLfsifmENTS: 43ELDERLY ONTARGET ?57% 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- YEARGOAL: IRES/DENT ONE - YEAR ACCOUMSHMENTS: I RESIDENT 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. One Newport Beach resident benefited from services during the program year at a cost of $10,000. Funds were used operational costs and therefore benefited non - resident clientele as well. 2002 -2003 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 4 1?- IMPROVE SUPPORTIVE SERVICES TO THOSE LIVING WITH HIV / AIDS The City did not undertake any activities during the program year that address this objective. Funds will be used to address this objective in future program years of this Consolidated Plan. For example, $5,400 has been budgeted to Emmanuel House, a transitional housing program for persons living with HIV /AIDS, in the 2003 -2004 program year. HOMELESS OBJECTIVES The Strategic Plan must address 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. The City partnered with agencies serving the Orange County region to address this issue. WISEPIace Steps to Independence, Orange Coast Interfaith Shelter, and SPIN Substance Abuse Rehabilitation Program provided emergency or transitional shelter as part of their funded program. ASSIST HOMELESS AND THOSE AT RISK OF HOMELESSNESS WISEPIace — Steps to Independence Program ONE -YEAR GOAL: /RES IDENT ONE - YEAR ACCOMPLISHMENTS: ORES /DENTS ON TARGET? 0% The "Steps to Independence" Program provided transitional shelter, food, clothing, counseling, and employment assistance to homeless women without children. In the 2002 -2003 program year, the program did not serve any Newport Beach residents but nonetheless served 179 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. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 5 City of Newport Beach 1 3 Orange Coast Interfaith Shelter (OCIS) ONE -YEAR GOAL: 50 PERSONS ONE- YEARACCOMPMSHMEN7S: 47PERSONS ON TARGET? 94% OCIS is one of only two emergency shelters in Orange County. The program offers both emergency shelter and transitional housing. The program provided emergency shelter for an average of 55 homeless individuals per night and transitional housing for 18 families at any given time. Funds were used for operational costs. FISH Harbor Homeless Prevention ONE -YEAR GOAL: 135 PERSONS ONE -YEAR ACCOMPLISHMEN7S: 186 PERSONS ON TARGET? YES This program provided rental / utility assistance, supplemental groceries, and case management to 186 persons in 66 low income households. 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 - }EAR GOAL: 1RES7DENT 0:1'E- YEARACCObfPLISHttEN7S1 1 RESIDENT 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. One Newport Beach resident benefited from services during the program year at a cost of $10,000. Funds were used operational costs and therefore benefited non - resident clientele as well. ASSIST HOMELESS BATTERED WOMEN AND CHILDREN The WISEPlace Steps to Independence Program is 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. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 6 City of Newport Beach I 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 final stage of the improvements was completed in the 2002 -2003 year. The City will continue to make Section 108 loan repayments with CDBG funds in the upcoming years. Code Enforcement Funds for this activity paid for the portion of a code enforcement officer's 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 eligible areas indirectly benefit from this program. IMPROVE HEALTH AND SAFETY THROUGH REHABILITATION OF COMMUNITY FACILITIES Public Facility Improvements - Balboa The final stage of the improvements was completed in the 2002 -2003 year. The City will continue to make Section 108 loan repayments with CDBG funds in the upcoming years. PRESERVE NEIGHBORHOODS AND PROVIDE ECONOMIC EMPOWERMENT TO LOWER INCOME RESIDENTS Public Facility Improvements - Balboa The final stage of the improvements was completed in the 2002 -2003 year. The City will continue to make Section 108 loan repayments with CDBG funds in the upcoming years. Code Enforcement Funds for this activity paid for the portion of a code enforcement officer's 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 eligible areas indirectly benefit from this program. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 7 City of Newport Beach J Serving People in Need (SPIN) — Substance Abuse Rehabilitation Program ONE -YEAR GOAL: IRESIDENT ONE - YEAR ACCOAIRLISHAIENTS: I RESIDENT 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. One Newport Beach resident benefited from services during the program year at a cost of $10,000. Funds were used operational costs and therefore benefited non - resident clientele as well. WISEPlace — Steps to Independence Program ONE -YEAR GOAL: I RESIDENT ONE -YEAR ACCOAIRLISHAIENTS: 0 RESIDENTS ON TARGET? 0% The "Steps to Independence" Program provided transitional shelter, food, clothing, counseling, and employment assistance to homeless women without children. In the 2002 -2003 program year, the program did not serve any Newport Beach residents but nonetheless served 179 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 Funds for this activity paid for the portion of a code enforcement officer's 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 eligible areas indirectly benefit from this program. 2002 -2003 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 8 t~ 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 funded affordable housing projects listed under the heading entitled "Foster and Maintain Affordable Housing" of the "Assessment of Goals and Objectives" section of this report. Please refer to this section for more details. CONTINUUM OF CARE In order to effectively address homelessness in a 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 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: WISEPIace, Serving People In Need (SPIN), OCIS Permanent Supportive Housing: none Supportive Services: FISH Harbor, WISEPIace, SPIN 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 9 City of Newport Beach 11 OTHER ACTIONS ADDRESS OBSTACLES TO MEETING UNDERSERVED NEEDS According to the Consolidated Plan, one of the most undeserved needs in the City is 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 In addition to the funded projects listed in the similar named section in the "Assessment of Goals and Objectives ", the City continues to monitor and enforce affordability covenants on four affordable housing projects (totaling 130 units) developed with CDBG funds and a 100 unit (202 HUD funded) senior housing project. The City has also secured approximately $2,500,000 for the development and /or preservation of affordable housing units as part of market rate residential development. The City is in discussion with developers or affordable housing in an effort to use these funds as an incentive for affordable housing development. REDUCE NUMBERS OF FAMILIES LIVING IN POVERTY The City funded a number of programs that sought to maintain or increase the clients level of self - sufficiency and ability to escape poverty. These programs include: • WisePlace 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 and South County Senior Services: 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 will continue to provide information to City staff and to its residents in regard to this issue. 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 10 City of Newport Beach ' ( 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 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 close 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. 2002 -2003 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 11 19 LEVERAGING RESOURCES 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 12 City of Newport Beach V SELF- EVALUATION In an effort to identify strengths, 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. The Lower Bayview Senior Housing Project is being delayed while under review by the Coastal Commission, but the targeted 139 senior units should be complete and available to tenants before the term of the Consolidated Plan is over. 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 the fiscal year. The City does not foresee any problems in meeting this target. 5. What, if any, adjustments or improvements to strategies and activities might meet your needs more effectively? In the 2003 -2004 program year, 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. 2002 -2003 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 13 A CDBG NARRATIVE STATEMENT a) Assessment of final use of funds to priorities identified in Consolidated Plan, especially those identified as high priority. b) Analysis of how funds were distributed among different categories of housing needs identified in Consolidated Plan c) Evaluate the extent CDBG funds were used to benefit low and moderate income persons. d) Describe the nature and reasons behind any changes in program objectives. e) Describe how the jurisdiction will change its programs as a result of its experiences. i) City did not require income documentation for SEAL Program. The City inaccurately qualified participants of the program based on the income level of the census tract in which they lived. In program year 2003, the City will document the income of each program participant to ensure that at least 51 % of the participants are of low or moderate income. f) Describe how the jurisdiction ... i) Pursued all resources indicated in Action Plan. ii) Provided requested certifications of consistency to those that the jurisdiction indicated it would. iii) Did not hinder Consolidated Plan implementation by action or willful inaction. g) If necessary, explain why funds did not meet national objective or jurisdiction did not satisfy overall benefit certification. h) If necessary, describe actions taken to ... i) Minimize displacement in acquisition, rehabilitation, and demolition. ii) Steps taken to identify households subject to URA, whether they were displaced, the level of their needs, and steps taken to ensure timely dissemination of information If economic development activities created jobs but were not filled by low and moderate income persons, describe actions taken to ensure first consideration was given to such persons and a listing of job titles created /retained and which were made available to low and moderate income persons. If jurisdiction undertook low and moderate clientele activities that did not serve one of the categories of presumed benefit, explain how by the nature and location of the activity one could 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 14 City of Newport Beach a� assume at least 51 percent of the beneficiaries were low and moderate income or other actions the jurisdiction took to ensure the activity met the national objective. k) Describe any program income received by the City. For any rehabilitation completed, describe the programs, the number of projects completed for each, the total amount of CDBG funds and other funds involved. m) NRSA performance according to benchmarks. . 2002 -2003 Consolidated Annual Performance and Evaluation Report City of Newport Beach Page 15 a3 PUBLIC PARTICIPATION n) Information required to be made available to public (available in IDIS reports) : i) Federal funds made available to meet Con Plan objectives ii) For each CPD program: (1) Total funds available (including program income). (2) Total amount committed in program year. (3) Total amount expended in program year. iii) Geographic Distribution of funds iv) Summary of community accomplishments by priority need v) Number of persons served by public services in program year. vi) Number of public facility improvement projects assisted and number of projects completed in program year. vii) Number of businesses assisted, jobs created /retained, and number of low and moderate income beneficiaries of economic development programs. o) Summary of Public Participation Process p) Summary of Comments Received q) Response to Comments 2002 -2003 Consolidated Annual Performance and Evaluation Report Page 16 City of Newport Beach a