HomeMy WebLinkAbout24 - Community Development Block Grant (CDBG) Program Year 2015-2016, Consolidated Annual Performance and Evaluation Report (CAPER)TO:
FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
September 13, 2016
Agenda Item No. 24
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Kimberly Brandt, Community Development Director - 949-644-3232,
kbrandt@newportbeachca.gov
PREPARED BY: James Campbell, Principal Planner,
Jcampbell(a�newportbeachca.gov
PHONE: 949-644-3210
TITLE: Community Development Block Grant (CDBG) Program Year 2015-
2016, Consolidated Annual Performance and Evaluation Report
(CAPER)
ABSTRACT:
The U.S. Department of Housing and Urban Development (HUD) requires the City of
Newport Beach to prepare and submit a CAPER to describe the City and its
subrecipients' progress in meeting the goals established in the Program Year 2015-
2016 Action Plan that was approved by the City Council on May 12, 2015. This report
must be submitted to HUD on or before September 28, 2016. The Program Year 2015-
2016 CAPER was prepared and made available for the HUD -required 15 -day public
review and comment period, which began on August 29, 2016, and concludes with the
public hearing before the City Council on September 13, 2016.
RECOMMENDATION:
a) Hold a public hearing to receive comments on the Program Year 2015-2016
CAPER;
b) Determine that the action is exempt from the California Environmental Quality Act
(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines
because it will not result in a physical change to the environment, directly or
indirectly;
c) Approve the Program Year 2015-2016 CAPER; and
d) Direct the City Manager or his designee to submit the Program Year 2015-2016
CAPER to HUD.
24-1
Community Development Block Grant (CDBG) Program Year 2015-2016, Consolidated
Annual Performance and Evaluation Report (CAPER)
September 13, 2016
Page 2
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
DISCUSSION:
On August 26, 2016, the City published a notice in the Daily Pilot informing the public
that the City of Newport Beach had prepared the Draft 2015-2016 CAPER and it would
be available for review and comment from August 29, 2016 to September 13, 2016. The
public was informed of the opportunity to provide oral and/or written comments on the
CAPER. To date, no public comments have been received. Additionally, the Citizen
Participation Plan requires that a public hearing be held to receive comments from
interested residents or parties regarding the CAPER. This public hearing fulfills the
requirements for the public hearing.
The CDBG allocation for Program Year 2015-2016 was $361,557. Unallocated CDBG
funds were available from prior years in the amount of $88,380. The total Program Year
2015-2016 budget was $449,937. The actual amount spent during the fiscal year is as
follows:
FY 2015-2016
Program Categories
Budget
Expenditures
Public Service Activities
$45,000
$44,813.56
Capital Improvement Project
Section 108 Loan Repayment
$207,306
$185,855.72
Commercial Facade Improvements
$125,320
$0.00
Program Administration & Fair Housing
$72,311
$67,161.78
Total
$449,937
$297,831.06
The accomplishments for this year include, but are not limited to, 1) implementation of a
senior mobile meals program serving 109 residents, 2) a homelessness prevention
program serving 243 Orange County residents, 3) fair housing services serving 145
residents, 4) special needs domestic violence prevention services serving 11 residents,
and 5) debt service payments on the Section 108 loan that funded prior public
improvements in Balboa Village. Despite no CDBG expenditures for the commercial
fagade improvement program, the program has been active in Balboa Village as it is
partially funded with parking revenues through the Balboa Village Area Benefit District
Reserve established in November 2014. The reason no CDBG funds have been utilized
is due to Federal prevailing wage requirements and the individual project's small size.
The combination of these two factors makes use of Federal funds inefficient. The funds
will be reprogrammed to other CDBG eligible capital improvement projects through City
Council consideration of an amendment to the current 2016-2017 Action Plan. The
amendment will be prepared and presented to the City Council later this year. A more
detailed explanation of accomplishments can be found in the attached Draft Program
Year 2015-2016 CAPER.
24-2
Community Development Block Grant (CDBG) Program Year 2015-2016, Consolidated
Annual Performance and Evaluation Report (CAPER)
September 13, 2016
Page 3
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING -
In accordance with HUD requirements for a 15 -day public review and comment period,
notice of the public hearing was published in the Daily Pilot on August 26, 2016.
Further, the agenda item has been noticed according to the Brown Act (72 hours in
advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A - Draft Consolidated Annual Performance and Evaluation Report
(CAPER) for the 2015-2016 Program Year
24-3
Attachment A
Draft Consolidated Annual Performance and Evaluation Report (CAPER)
For the 2015-2016 Program Year
24-4
.,, V PGl\
City of Newport Beach
Program Year 2015-2016
Draft Consolidated Annual Performance
and Evaluation Report
(CAPER)
Now
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6
Prepared by:
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LLDM
Associates - Inc.
24-5
Table of Contents
CR -05 - Goals and Outcomes.......................................................................................................... 1
CR -10 Racial and Ethnic Composition of (person/households/families) Assisted ......................... 6
CR -15 Resources and Investments.................................................................................................. 7
CR -20 Affordable Housing............................................................................................................. 10
CR -25 Homeless and Other Special Needs................................................................................... 14
CR -30 Public Housing.................................................................................................................... 18
CR -35 Other Actions...................................................................................................................... 20
CR -40 Monitoring.......................................................................................................................... 29
CR -45 CDBG................................................................................................................................... 31
Appendices (To be inserted in final submission to HUD}
AppendixA — Public Notices........................................................................................................... A
Appendix B — Summary of Citizen Participation Comments........................................................... B
AppendixC — IDIS Reports.............................................................................................................. C
24-6
CR -05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.
91.520(a)
The City of Newport Beach has prepared the 2015-2016 Consolidated Annual Performance and
Evaluation Report (CAPER) as required by the U.S. Department of Housing and Urban
Development (HUD) which describes the use of federal Community Development Block Grant
(CDBG) funds during the first program year of the 2015-2019 Consolidated Plan period,
covering July 1, 2015 to June 30, 2016.
The City receives CDBG funds from HUD on a formula basis each year, and in turn, implements
projects and also awards grants to nonprofit, for-profit or public organizations for projects in
furtherance of the adopted Consolidated Plan. The CDBG program generally provides for a
range of eligible activities for the benefit of low- and moderate -income Newport Beach
residents.
For the 2015-2016 program year, the City received $361,557 of CDBG funds from HUD, which
were combined in the Action Plan with $88,380 of unexpended CDBG funds from prior years for
a total investment of $449,937. This investment of CDBG funds was a catalyst for positive
change in the community. Together with other federal, state and local investments, HUD
resources allowed the City and its partners to:
• Provide fair housing services to 145 residents
• Provide homelessness prevention and assistance services to 243 residents
• Provide special needs services such as community domestic violence to 11 residents
• Provide public services such as home delivered meals to 109 senior residents
• Provide funds for Commercial Fagade Improvements
• Provide funds for Section 108 Loan Repayment
Table 1 provide!
ending June 30,
Strategic Plan of
City of Newport Beach
e five-year and one-year acco
each of the Strategic Plan Go I
an.
Draft 2015-2016 CAPER
hments for the period
d in the 2015-2019
1
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-7
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and
explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Table 1- Accomplishments — Program Year & Strategic Plan to Date
City of Newport Beach
Draft 2015-2016 CAPER
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-8
5 -Year Strategic Plan
2015-2016 Program Year No. 1
2015-2016
Unit of
Percent
Percent
Goal
Category
Indicator
Amount
Measure
Expected
Actual
Expected
Actual
Complete
Complete
Commercial
Non -Housing
Facade
CDBG:
Facade
Community
treatment/business
Business
9
0
0.00%
6
0
0.00%
$125,320
Improvements
Development
building rehabilitation
Fair Housing
Affordable
CDBG:
Other
Other
1,175
145
12.00%
235
145
62.00%
Services
Housing
$12,000
Homelessness
CDBG:
Homelessness
Persons
Prevention
Homeless
800
243
30.00%
165
243
147.00%
$15,000
Prevention
Assisted
Services
Public Facility or
Infrastructure Activities
Persons
other than
8,595
0
0.00%
1
1
0.00%
Public Facilities
Non -Housing
CDBG:
Low/Moderate Income
Assisted
and Section 108
Community
$207,306
Housing Benefit
Debt Service
Development
Other
Other
5
1
20.00%
1
1
100.00%
rvice activities
Non -Housing
C
othe an
Persons
Public Services
Community
700
109
15 °
112
109
97.32%
$ 0
Low/Moderate Inc
sted
Development
Housing Benefit
Jfa
City of Newport Beach
Draft 2015-2016 CAPER
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-8
City of Newport Beach
Draft 2015-2016 CAPER
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-9
5 -Year Strategic
Plan
2015-2016 Program Year No. 1
2015-2016
Unit of
Percent
Percent
Goal
Category
Indicator
Amount
Measure
Expected
Actual
Expected
Actual
Complete
Complete
Public service activities
Special Needs
Non -Homeless
CDBG:
other than
Persons
50
11
22.00%
10
11
110.00%
Services
Special Needs
$5,000
Low/Moderate Income
Assisted
Housing Benefit
Planning
Planning and
CDBG:
Other
Other
N/A
N/A
N/A
N/A
N/A
N/A
Administration
$60,311
City of Newport Beach
Draft 2015-2016 CAPER
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-9
Assess how the jurisdiction's use of funds, particularly CDBG, addresses the priorities and
specific objectives identified in the plan, giving special attention to the highest priority
activities identified.
During the program year, the City and local nonprofit organizations made progress on several
2015-2016 activities. All CDBG funded activities addressed specific high priority objectives
identified in the 2015-2019 Consolidated Plan.
The majority of CDBG funds were allocated to the Commercial Fagade Improvement activity
and Section 108 Loan Repayment activity. The City successfully utilized its CDBG funds allocated
for public services meeting or exceeding the majority of the annual goals established for the
program year. Such public services included fair housing services, homelessness prevention
services, special needs services and other public services benefitting low- and moderate -income
residents. Public service activities were carried out by nonprofit organizations with oversight
from Planning Division of the Community Development Department.
All the activities funded are listed in Figure 1, including the amount of CDBG funds allocated to
the activity and the amount spent as of June 30, 2016. Figure 2 provides the numeric
accomplishment goal and the accomplishments as of June 30, 2016.
Figure 1— Use of CDBG Funds 2015-2016
Spent Percent
Strategic Plan Goal / Activity Source Allocation through Spent
6/30/16
1. Fair Housing Services
Fair Housing Services CDBG $12,000.00 $12,000.00 100.00%
2. Public Services
Age Well Senior Services: Home Delivered Meals
CDBG
3. Special Needs Services
Human Options: Community Domestic Violence Services CDBG
4. Homelessness Pre
Families Forward Hou Program
S. Commercial Fa4ade Improvements
Commercial Fagade Improvements
6. Public Facilities and Section 108
Section 108 Loan Repayment
7. Planning and Administration
CDBG Administration
Servi
$25,000.00 $25,000.00 100.00%
$5,000.00 $4,813.56 96.27%
An
,000.0015 000.00
1
.00 $0.00
1306.00 $185,855.72
CDBG $60,311.00 $55,161.78
Total for all Goals: $449,937.00 $297,831.06
100.00%
0.00%
89.65%
100.00%
66.44%
City of Newport Beach Draft 2015-2016 CAPER 4
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-10
The City did not utilize the Commercial Fagade Improvements CDBG funds during the program
year because the City's local funds were utilized first. The funds allocated to Commercial Fagade
Improvements will either be used during the next program year or reallocated in an Action Plan
amendment.
The Section 108 Loan Repayment funds were not fully utilized because the amortized loan
payment amount was reduced as a result of HUD and the City refinancing the Section 108 Loan
subsequent to approval of the Action Plan on May 8, 2015. The Section 108 Loan was
refinanced because HUD's public offering provided an opportunity to obtain a reduced interest
rate. The new loan amortization payment amounts will be reflected in subsequent program
year Action Plans.
Figure 2 — Program Year Accomplishments by Strategic Plan Goal 2015-2016
Strategic Plan Goal / Activity Unit of Measure Expected Actual
1. Fair Housing Services
Fair Housing Services People 235 145
2. Public Services
Age Well Senior Services: Home Delivered Meals People 112 109
3. Special Needs Services
Human Options: Community Domestic Violence People 10 11
4. Homelessness Prevention Services
Families Forward Housing Program People 165 243
5. Commercial Fa4ade Improvements
Commercial Fagade Improvements Businesses 6 0
6. Public Facilities and Section 108 Debt Service
Section 108 Loan Repayment Other _ 1 1
Planning and Ad istration
DBG Administrati N/A
C
City of Newport Beach Draft 2015-2016 CAPER 5
OMB Control No: 2506-0117 (exp. 07/31/2015)
24-11
CR -10 - Racial and Ethnic composition of families assisted
Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
Table 2 — Assistance to Racial and Ethnic Population by Source of Funds
*Note: The data in this table is supplied by HUD's database. The figures in
this table represent the sum of the reported number of people, families,
households or housing units reported during the fiscal year, without regard
to the number of people in each family, household or housing unit.
Narrative
Table 2 provides an aggregate of race and ethnicity data for 1
families, househ or housing units served during
accomplishment d from all CDBG activities re
wrted in
Information Syste DIS).
City of Newport Beach
Draft 2015-2016 CAPER
tuber of people,
ear based on
sbursement and
0
OMB Control No: 2506-0117 (exp. 07/31/2015)
24-12
CDBG
White
250
Black or African American
56
Asian
11
American Indian or American Native
0
Native Hawaiian or Other Pacific Islander
0
Total
317
Hispanic
72
Non -Hispanic
245
*Note: The data in this table is supplied by HUD's database. The figures in
this table represent the sum of the reported number of people, families,
households or housing units reported during the fiscal year, without regard
to the number of people in each family, household or housing unit.
Narrative
Table 2 provides an aggregate of race and ethnicity data for 1
families, househ or housing units served during
accomplishment d from all CDBG activities re
wrted in
Information Syste DIS).
City of Newport Beach
Draft 2015-2016 CAPER
tuber of people,
ear based on
sbursement and
0
OMB Control No: 2506-0117 (exp. 07/31/2015)
24-12
CR -15 - Resources and Investments 91.520(a)
Identify the resources made available
Table 3 — Resources Made Available
Narrative
The CDBG resources include $361,557 of CDBG formula grant funds and $88,380 of
unexpended CDBG funds from prior years for a total CDBG investment of $449,937. The grand
total was allocated to projects in the 2015-2016 Action Plan.
The City did not utilize the Commercial Fagade Improvements CDBG funds during the program
year because the City's local funds were utilized first. The funds allocated to Commercial Fagade
Improvements will either be used during the next program year or reallocated in an Action Plan
amendment.
The Section 108 Loan Repayment funds were not fully utilized because the amortized loan
payment amount was reduced as a result of HUD and the City refinancing the Section 108 Loan
subsequent to approval of the Action Plan on May 8, 2015. The Section 108 Loan was
refinanced because HUD's public offering provided an opportunity to obtain a reduced interest
rate. The new loan amortization payment amounts will be reflected in subsequent program
year Action Plans.
Identify the geographic distribution and location of investments
Table 4 —ire,,geographic distribution and location#investments
Target Area
Resources Made
Allocation Allocation
Citywide
Amount Expended
Source of Funds
Available
Citywide Area
During Program Year
2015-2016
CDBG
$449,937
$297,831
Narrative
The CDBG resources include $361,557 of CDBG formula grant funds and $88,380 of
unexpended CDBG funds from prior years for a total CDBG investment of $449,937. The grand
total was allocated to projects in the 2015-2016 Action Plan.
The City did not utilize the Commercial Fagade Improvements CDBG funds during the program
year because the City's local funds were utilized first. The funds allocated to Commercial Fagade
Improvements will either be used during the next program year or reallocated in an Action Plan
amendment.
The Section 108 Loan Repayment funds were not fully utilized because the amortized loan
payment amount was reduced as a result of HUD and the City refinancing the Section 108 Loan
subsequent to approval of the Action Plan on May 8, 2015. The Section 108 Loan was
refinanced because HUD's public offering provided an opportunity to obtain a reduced interest
rate. The new loan amortization payment amounts will be reflected in subsequent program
year Action Plans.
Identify the geographic distribution and location of investments
Table 4 —ire,,geographic distribution and location#investments
Target Area
Planned Percentage of Actual Percentage of
Narrative Description
Allocation Allocation
Citywide
0009
r la 100%
Citywide Area
Narrative Lmomif I " I L
During the 2015-2016 fiscal year, the City expended CDBG funds in a manner consistent with
meeting the National Objectives of the program. 100 percent of the CDBG funds expended
were for activities that benefit low to moderate income persons. The percentage includes
Administration and Planning activities.
City of Newport Beach Draft 2015-2016 CAPER 7
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-13
The City's investments in Fair Housing Services, Public Services, Special Needs Services and
Homelessness Prevention Services projects are based on a citywide geography because
individuals in need of these services may live anywhere within the jurisdiction—particularly
services for special needs populations such as victims of domestic violence.
The only exception to this approach was for CDBG projects that were qualified on a low- and
moderate -income area basis where a specific proportion of the residents within the service
area must be low- and moderate -income residents, such as the 2015-2016 Commercial Fagade
Improvements project.
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds),
including a description of how matching requirements were satisfied, as well as how any
publicly owned land or property located within the jurisdiction that were used to address the
needs identified in the plan.
The City used CDBG funds to leverage appropriate state, local and private resources from each
nonprofit organization providing public services. In addition, the City will continue to leverage
other sources including but not limited to those listed below and as outlined in the
Consolidated Plan.
State Resources
• State Low -Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN)
• CalHome Program
• Multifamily Housing Program (MHP)
• Housing Related Parks Grant
• CaIHFA Single and Multi -Family Program
• Mental Health Service Act (MHSA) Funding
Local Resources
• Orange County Housing & Finance Agency (OCHF un
• Southern California Home Financing AuthoriJam
Fu g• Orange County Continuum of Care Program
• Orange County Housing Authority (OCHA) P
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP)
• Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
City of Newport Beach Draft 2015-2016 CAPER 8
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-14
During the 2015-2016 program year, the City's nonprofit public service organizations used
CDBG funds in conjunction with over $4 million of other federal, state and local funds to
implement their programs throughout Orange County.
Matching Requirements
The CDBG program does not require matching funds.
Publicly Owned Land or Property
The City owns one property in Balboa Village known as the Balboa Theater. The property was
acquired in the 1990s with CDBG funds as part of an economic revitalization strategy in place at
that time. The City is in the process of selling this property. In consultation with the HUD Los
Angeles Field Office, the City is authorized to use the proceeds of the sale of the Balboa Theater
to address the needs of the Consolidated Plan. The Consolidated Plan will be amended to
reflect this resource upon completion of the property sale in the fall of 2016.
City of Newport Beach
Draft 2015-2016 CAPER
0
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-15
CR -20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the
number and types of families served, the number of extremely low-income, low-income,
moderate -income, and middle-income persons served.
Table 5- Number of Households Supported
Table 6 - Number of Households Supported
One -Year Goal
Actual
Number of homeless households to be provided
0
0
affordable housing units
0
0
Number of non -homeless households to be provided
0
0
affordable housing units
0
0
Number of special -needs households to be provided
0
0
affordable housing units
0
0
Total
0
0
Table 6 - Number of Households Supported
City of Newport Beach Draft 2015-2016 CAPER 10
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-16
One -Year Goal
Actual
Number of households supported through rental
assistance
0
0
Number of househol' ted through the
production of new units
0
0
Number of households suppor th t e ab of
existing units
0
0
Number of households supported th gh th
acquisition of existing units
0
Total
0
0
City of Newport Beach Draft 2015-2016 CAPER 10
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-16
Discuss the difference between goals and outcomes and problems encountered in meeting
these goals.
Two high priority affordable housing needs were identified in the 2015-2019 Consolidated Plan.
The City of Newport Beach will continue to use non-CDBG funding sources such as the local
Affordable Housing Fund to address the following goals:
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, representing the City's worst case housing need. 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 Fund and other available options under the State Density Bonus law to
create additional affordable housing.
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. 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.
In addition, at the point of adoption of the 2015-2016 Action Plan, the City addressed
affordable housing needs through fair housing services to ensure equal access to housing
opportunities to I ate -income people and by provi rt to homelessness
prevention and sp I -needs s es throu h the following activ s:
• Fair Housin undation it sing Se ices as ed 1 peop
This agen addressed e rity uri equ access to housing
opportuniti
• Families Fo ng Pro m assi le
This agency addressed the priority need of preventing and eliminating homelessness
• Human Options - Community Domestic Violence program assisted 11 people
This agency addressed the priority need of public services for residents with special
needs.
City of Newport Beach Draft 2015-2016 CAPER 11
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-17
Discuss how these outcomes will impact future annual action plans.
The outcomes of this priority need will not impact future annual action plans since the City will
use other source of funds for affordable housing programs as indicated in the Consolidated
Plan.
Include the number of extremely low-income, low-income, and moderate -income persons
served by each activity where information on income by family size is required to determine
the eligibility of the activity.
Table 7 — Number of Persons Served
Number of Persons Served
CDBG Actual
Extremely Low-income
0
Low-income
0
Moderate -income
0
Total
0
Narrative Information
The Strategic Plan identified two high priority needs to expand the supply of affordable housing
and preserve the supply of affordable housing. The Consolidated Plan indicated that CDBG
funds will not be used for affordable housing. The City will continue to use other funding
sources and methods to create affordable housing opportunities such as the Affordable
Housing Fund and the State Density Bonus law. In addition, as outlined in the adopted 2015-
2019 Consolidated Plan, the City will continue to provide CDBG funds to support fair housing
services, homeless . n programs and special needs service
_qW. 9
During the progra year, the City worked to expand the supply of affordable housing by
granting a Density nus that will result in 455 total units at Uptown wport, of which 92
units will be affor le to very w income households. is project i xpected to receive
building permits in ptember and affordable units ma be availabl soon as 2018.
As a result of the City's former Inclusionary ousing Ordinance, t e City collected
approximately $4.2 million in the Affordable Housing Fund. The fees were paid by developers of
residential housing in -lieu of providing affordable units. The purpose of the Affordable Housing
Fund is to construct, rehabilitate or subsidize affordable housing or assist other governmental
entities, private organizations or individuals to provide or preserve affordable housing. On April
City of Newport Beach Draft 2015-2016 CAPER 12
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-18
29, 2015, the City published a Request for Proposals for the use of the Affordable Housing Fund
toward affordable housing development or programming. The City received three proposals
discussed below that ultimately were recommended for funding from an evaluation panel and
the City's Affordable Housing Task Force.
• Newport Shores Project: An agreement with Community Development Partners granting
$1,975,000 to assist with the acquisition, rehabilitation and conversion of an existing 12 -
unit apartment building located at 6001 Coast Boulevard for affordable housing. This
project is currently in the process of securing additional financing.
• Senior Home Repair Program: The City granted up to $600,000 to Habitat for Humanity
Orange County for the purpose of establishing a critical home repair program for lower-
income seniors. This program is active and is now accepting applications. One
homeowner request has been approved and is in the process of receiving assistance.
• Seaview Lutheran Plaza Rehabilitation: The City Council approved an agreement
granting $800,000 to Seaview Lutheran Plaza to rehabilitate 100 apartment bathrooms
to include ADA toilets, removal of tubs, installation of new showers with safety grab
bars, new flooring and paint.
City of Newport Beach
Draft 2015-2016 CAPER
13
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-19
CR -25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c)
Evaluate the jurisdiction's progress in meeting its specific objectives for reducing and ending
homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs
The City of Newport Beach supports the efforts of Orange County Continuum of Care (CoC) and
its member organizations that address homelessness throughout Orange County.
According to the Ten -Year Plan to End Homelessness in Orange County adopted in 2012 (Ten -
Year Plan), the CoC is in the process of implementing several regional strategies that will
enhance local coordination to more effectively assist people in need. To more rapidly identify
and assess people experiencing homelessness, the CoC is working to create regional homeless
access centers that will offer fully coordinated systems of outreach and will facilitate universal
assessment, intake, referral and transportation to resources. The CoC is also developing
resources of information (such as 2-1-1) to better serve individuals who are homeless or at risk
of becoming homeless. In addition, the CoC is working to implement a database using real time
information from intake and assessment that is housed in the Homeless Management
Information System (HIMS). Collectively these strategies will help minimize duplication of effort
and better connect the most vulnerable individuals and families, chronically homeless, and
people at risk of becoming homeless to appropriate resources.
To reach out to unsheltered homeless persons and assess their individual needs for the purpose
of connecting them with available emergency shelter and transitional housing resources, the
City of Newport Beach, through its Planning Division provided information and referrals —
primarily to 2-1-1 Orange County. Additionally, to reduce and end homelessness, the City of
Newport Beach provided CDBG funds for the following public service activities:
Families Forward – Housing Program assisted 243 people
This agency helped addressing the priority need of
homelessn
preventing and eliminating
• Human Op s - Commu D i a ople
This agenc elped addr ing priori need pub servi for residents with
special nee
LJ I L
Addressing the emergency shelter and transitional housing needs of homeless persons
The ultimate solution to ending homelessness is transitional to permanent housing closely
aligned with supportive services that ensure housing stability can be maintained. However,
because the demand for affordable housing far outpaces the region's supply, the CoC continues
City of Newport Beach Draft 2015-2016 CAPER 14
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to rely on its emergency and transitional housing system in order to address the immediate
needs of Orange County's homeless population.
In 2013, the CoC and County identified $4.5 million in local funds to support the development
of year-round emergency shelters and multi -service centers in Orange County. Over the next
five years the CoC and the County will continue to search for an appropriate location for this
new shelter.
For transitional housing, the Ten -Year Plan recognizes a need to maintain a level of transitional
housing for the target populations that benefit most from a staged approach to housing, such
as mentally ill and chronically homeless individuals. While the CoC continues to support
transitional housing in special circumstances, the CoC is currently examining ways to shorten
stays in emergency shelters and transitional housing so that resources may be used for rapid re-
housing or placement in permanent supportive housing.
Other organizations in the CoC also address the emergency shelter and transitional housing
needs of homeless persons which include Orange Coast Interfaith Shelter, Orange County
Rescue Mission and WISEPlace.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: likely to become homeless after
being discharged from publicly funded institutions and systems of care (such as health care
facilities, mental health facilities, foster care and other youth facilities, and corrections
programs and institutions); and, receiving assistance from public or private agencies that
address housing, health, social services, employment, education, or youth needs
An individual or family is considered to be at -risk of becoming homeless if it experiences
extreme difficulty maintaining their housing and has no reasonable alternatives for obtaining
subsequent housing. Homelessness often results from a complex set of circumstances that
require people to choose between food, shelter and other basic needs. Examples of common
circumstances that can cause homelessness include eviction, loss of income, insufficient
income, disability, increase in the cost of housing, discharge from an i itution, irreparable
damage or deterioration to housi
an . fleein fro violence. �
Orange County's current CoC system encourages services aimed at r cing incidences of
homelessness for those receiving public assistance and individuals likel become homeless
after being discharged from publicly funded institutions and systems of ca including:
r �N& �
• Emergency Rental and Utility Assistance: Short-term financial assistance to prevent
eviction and utility shut-off.
• Credit Counseling: Financial counseling and advocacy to assist households to repair
credit history.
• Legal/Mediation Services: Tenant -landlord legal/mediation services to prevent eviction.
City of Newport Beach Draft 2015-2016 CAPER 15
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• Food Banks and Pantries: Direct provision of food, toiletries and other necessities.
• Transportation Assistance: Direct provision of bus vouchers and other forms of
transportation assistance.
• Clothing Assistance: Direct provision of clothing for needy families and individuals.
• Prescription/Medical/Dental Services: Direct provision of prescription, medical and
dental services.
• Workforce Development: Direct provision of job training services designed to develop
and enhance employment skills, as well as to help clients secure and retain living wage
jobs.
• Information & Referral Services: Direct provision of 24-hour/7-days-a-week call center
services to provide health and human service information to at -risk populations.
• Recuperative care for homeless individuals who become ill or injured.
In addition, the City provided CDBG funds to nonprofit organizations to meet the goals of the
Consolidated Plan. The following is a detailed description of services provided by each
organization per activity and according to the Action Plan:
Families Forward — Housing Programs
The Families Forward Housing Program transitions homeless families from crisis to stability and
self-sufficiency. Services include housing, counseling, food, career coaching, life -skills,
education and acquisition of permanent housing. Individualized self-sufficiency plans are
developed with case managers, and progress is monitored on a regular basis at monthly case
management meetings. Depending on financial capacity, families will pay 0-30% of their income
in rent. Transitional housing ranges from 1-24 months. Case managers conduct pre and post
program surveys to document this data. Additionally, services provided through this program
are mentioned through ClientTrack, our HMIS-compliant client data system, at regular intervals.
Families Forward assisted 243 people.
Human Options - Community Domestic Violence
Human Options offers a wide variety of services to help victims heal and find a way forward
from the effects of domestic violence. The Human Options Family Healing Center is an on-site
short-term transiti program with five self-containefa ent for abused women
and their children o ave ssfully completed the 30-45r cy shelter program
and are eligible to rtici pate i e al' r po three months.
Human Options as ed 11 peop
Helping homeless ially ronica o ins amilies, families
with children, vet eir fami s, and un mp em the transition to
permanent housing and independent living, including shortening the period of time that
individuals and families experience homelessness, facilitating access for homeless individuals
and families to affordable housing units, and preventing individuals and families who were
recently homeless from becoming homeless again
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In support of CoC efforts, the 2015-2019 Strategic Plan provided for the use of CDBG funds to
support activities implemented by local nonprofit organizations that provide services to help
prevent and eliminate homelessness, including families at risk of homelessness. To address the
needs of homeless families, families with children, veterans and their families, the City provided
funds to support the Families Forward Housing Program, which provides transitional housing,
counseling and case management to families at risk of homelessness. When paired with
financial counseling, career coaching and other available case management services, Families
Forward makes certain that families are ready to succeed in their transition to permanent
housing.
City of Newport Beach
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CR -30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The Newport Beach Housing Authority does not administer Section 8 and does not own HUD
Public Housing. Newport Beach is within the service area of the Orange County Housing
Authority (OCHA) for the purposes of Section 8 and Public Housing. The data presented below is
for Newport Beach and the narrative responses address the needs for the entire county, with
specific references to the City of Newport Beach.
Actions planned during the next year to address the needs to public housing
During the current five-year planning period, OCHA's goals are:
• Apply for additional housing assistance funding and programs that may become
available.
• Explore the use of Project -Based Housing Choice Vouchers or other housing funds to
promote the construction or acquisition activities that will result in additional units or
developments that will serve special needs populations.
• Ensure consistent quality of assisted housing services by maintaining high performer
status in Section Eight Management Assessment Program (SEMAP) scores.
• Promote Family Self -Sufficiency incentives and homeownership opportunities for
Housing Choice Voucher participants in partnership with local programs and related
service providers.
• Expand assisted housing choices by conducting outreach efforts to increase the number
of property owners and their participation in housing assistance programs.
• Identify and utilize technology to enhance operational effectiveness and efficiency in
delivery of housing assistance services
Actions taken t public housing residents to a more involved in
management and :imite
ate meownership
OCHA supports res ouncils arhas
input PH esid on the
management and i entatio f 0cies and produr
Housing prices in re so meownship port s are limited for
OCHA residents. On a basis, OCartn wit�i Habl aft Humanity to provide
two affordable homeownership units, but these types of efforts are limited.
OCHA also manages a Housing Choice Voucher Homeownership Program that it markets to all
OCHA program tenants.
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Actions taken to provide assistance to troubled PHAs
Not applicable. OCHA is designated as a High Performing PHA.
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CR -35 - Other Actions 91.220(j) -(k); 91.320(i) -(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as
barriers to affordable housing such as land use controls, tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
return on residential investment. 91.220 (j); 91.320 (i)
Based on the Consolidated Plan Needs Assessment Survey, the 2013-2021 Housing Element and
market analysis, the primary barriers to affordable housing in Newport Beach are housing
affordability and the lack of monetary resources necessary to develop and sustain affordable
housing.
The City evaluated significant public policies affecting affordable housing development such
as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and
charges and growth limitations. Based on this evaluation, the City determined that it has taken
all appropriate and necessary steps to ameliorate the negative effects of public policies that
may have been a barrier to affordable housing.
Moreover, to address housing affordability and the lack of monetary resources for affordable
housing, the City will continue to invest Affordable Housing Fund resources to incentivize the
development of affordable housing 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.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j)
The primary obstacles to meeting the underserved needs of low- and moderate -income people
include lack of funding from federal, state and other local sources, and the high cost of housing
that is not affordable to low-income people.
To address these obstacles, the City invested CDBG funds through the 2015-2016 Action Plan in
projects that provide assistance to those with special needs, projects that prevent
homelessness, and strengthen economic opportunities for low- and moderate -income
residents. Additionally, the City allocated 100 percent of its non -administrative CDBG
investments for program year 2015-2016 to projects and activities that benefit low- and
moderate -income people or people presumed under HUD regulations to be low- and moderate -
income. The following are the activities funded this program year:
Fair Housing Foundation — Fair Housing Services
The Fair Housing Foundation provided fair housing and landlord/tenant mediation to ensure
universal access to fair housing to low and moderate income residents. This agency assisted 145
people.
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Age Well Senior Services Home -Delivered Meal Program
Provided home delivered meals to seniors and disabled persons to reduce the possibility of
institutionalization. This agency assisted 109 seniors.
Families Forward — Housing Programs
Provided assistance to transit homeless families and at risk to become homeless families from
crisis to stability and self-sufficiency. Services include housing, counseling, food, career
coaching, life -skills, education and acquisition of permanent housing. This agency assisted 243
people.
Human Options — Community Domestic Violence Program
Provided a wide variety of counseling and educational programs to help victims and their family
members deal with the effects of domestic violence. Services also include emergency shelters
and transitional housing if needed. This agency assisted 11 people.
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j)
The City of Newport Beach does not currently implement a Residential Rehabilitation Program,
however if they are to implement such a program in the future, the City will disseminate
brochures provided by the U.S. Environmental Protection Agency to all applicants as part of the
transmittal of the program application. Any unit receiving assistance through the program that
was built prior to January 1, 1978 will be tested for lead-based paint. If lead-based paint is
present, appropriate abatement procedures are implemented as part of the rehabilitation
contract consistent with the requirements of 24 CFR Part 35.
Actions taken to reduce the number of poverty -level families. 91.220(k); 91.320(j)
The implementation
Consolidated Plan
poverty -level fami
of CDBG
activities meeting the goals established in the 2015-2019
dthis Annual Action Plan help reduce the number of
City of Newport Beach
Draft 2015-2016 CAPER
21
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-27
• 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 units;
• 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 CaIWORKs, 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 taken to develop institutional structure. 91.220(k); 91.320(j)
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 Divis munity Development Departm tructure
rship with other
agencies. Public s ce activit ill be carried out b nonprofi �tg
as to achieve the
Strategic Plan goal he Plannin ivisl h rk ill work together
with contractors t mplement lic cility i rovem pr s equent program
years implementin e 2015-20 on
id
is PI
One of the key is dev ping a gin utito 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.
Actions taken to enhance coordination between public and private housing and social service
City of Newport Beach Draft 2015-2016 CAPER 22
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agencies. 91.220(k); 91.320(j)
To enhance coordination between public and private housing and social service agencies, the
City invested CDBG funds in will continue consulting with and inviting the participation of a
wide variety of agencies and organizations involved in the delivery of housing and supportive
services to low- and moderate -income residents in Newport Beach.
In the implementation of the 2015-2016 Action Plan, the City invested CDBG resources to public
service agencies to assist low- and moderate- income residents in Newport Beach such as Fair
Housing Foundation, Human Options, Families Forward, and Age Well Senior Services.
Identify actions taken to overcome the effects of any impediments identified in the
jurisdictions analysis of impediments to fair housing choice. 91.520(a)
In Orange County, 16 entitlement cities have elected to prepare a regional Analysis of
Impediments to Fair Housing Choice to affirmatively further fair housing choice for all their
residents. The City of Newport Beach is one of the 16 Entitlement Cities included in the Orange
County Regional Al. This analysis of impediments was built upon the previous analysis,
summarized conclusions and presented a list of recommendations to help address the
impediments.
A. REGIONAL PRIVATE SECTOR IMPEDIMENTS
Impediment A-1: Housing Discrimination
Housing discrimination continues to exist throughout Orange County, as evidenced by the
number of complaints and fair housing cases opened by the Fair Housing Foundation and Fair
Housing Council of Orange County. An average of 85 cases were opened in the participating
cities over the past three years, with the leading bias based on disability (physical and mental),
followed by familial status, national origin and race.
Actions for All Jurisdictions:
• In partnership with each city's fair housing provider, conduct multi -faceted fair
housing outreach to tenants, landlords, property owners, realtors, and property
management companies. Methods of outreach should include workshops, informational
booths at community events, presentations to civic leaders and community groups, staff
trainings, and distribution of multi-lingual fair housing literature.
• Conduct focused outreach andoucation to small property own andlords on fair
housing, and race, reasonable accommodation and familial status issues in particular.
Conduct property manager trainings on a regular basis, targeting managers of smaller
properties, and promote fair housing certificate training offered through the fair housing
providers.
City of Newport Beach Draft 2015-2016 CAPER 23
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• Provide general counseling and referrals to address tenant -landlord issues through
each city's fair housing contractor, and provide periodic tenant -landlord walk-in
clinics at City Halls and other community locations.
• Include testing/audits within the scope of work for each city's fair housing provider.
Support enforcement activity and publicize outcomes of fair housing litigation as a
means to deter discriminatory practices and to encourage reporting.
Impediment A-2: Racial and Ethnic Segregation
Residential segregation refers to the degree in which groups live separately from one another.
Within the County there are areas of racial/ethnic concentrations, such as in Santa Ana where
over three-quarters of the population is Hispanic and ten percent Asian. Approximately ten
percent of households in the County are considered to be limited English-speaking households.
Actions for All Jurisdictions
• Coordinate with fair housing providers to focus fair housing services,
education/outreach, and/or additional testing in identified areas of racial/ethnic
concentrations.
• Offer a variety of housing opportunities to enhance mobility among residents of all
races and ethnicities. Facilitate the provision of affordable housing throughout the
community through: 1) available financial assistance; 2) flexible development standards;
3) density bonuses; and 4) other zoning tools.
• Promote equal access to information on the availability of affordable housing by
providing information in multiple languages, and through methods that have proven
successful in outreaching to the community, particularly those hard -to -reach groups.
• Affirmatively market first-time homebuyer and/or housing rehabilitation programs to
low and moderate income areas, and areas of racial/ethnic concentration.
• Work coil
marketing
Impediment A-3: I
Denial of reasonal
to fair housing chi
participating jurisd
•ativelyy"with local housing
s and de-concentratiON,
ial of Reasonable Modific
modification or reasonab
Actions for All Jurisdictions:
nts over or
r
authorities en e affirmative fair
1
nab ccommodations
om atio s a continuing impediment
ged criminatory acts in the 16
• Through each city's fair housing contractor, continue to provide fair housing education
City of Newport Beach Draft 2015-2016 CAPER 24
OMB Control No: 2506-0117 (exp. 07/31/2015) 24-30
and information to apartment managers and homeowner associations on why denial of
reasonable modifications/accommodations is unlawful.
• Provide information on the unlawful practice of denying reasonable
modifications/accommodations at fair housing seminars conducted by the Apartment
Association of Orange County.
Impediment A-4: Discriminatory Advertising
Regionally, there were incidents of discriminatory advertising that have the potential to
discourage a certain type of renter or buyer from pursuing a housing opportunity. Ads
indicating a preference for a certain type of tenant or buyer, such as "no pets", "no
children", or "Ideal for single adult" have the effect of housing discrimination.
Actions for All Jurisdictions:
• Through each city's fair housing contractor, periodically monitor local newspapers and
online media outlets to identify potentially discriminatory housing advertisements.
When identified, make contact with the individual or firm and provide fair housing
education.
• Take steps to encourage both the Los Angeles Times and Orange County Register to
publish a Fair Housing Notice and a "no pets" disclaimer that indicates rental housing
owners must provide reasonable accommodations, including "service animals" and
"companion animals" for disabled persons.
Impediment A-5: Hate Crimes
Hate crimes committed at a residence are an impediment to fair housing choice because they
impact the lives of an average of 35 households per year in the 16 participating Orange County
cities. Of the total 169 hate crime incidents reported between 2010 and 2014, 57 incidents
were related to race, 38 to religion, 37 to sexual orientation, 33 to ethnicity, 2 to disability and
2 to gender identity. Nearly 60 percent of these incidents occurred within the following four
jurisdictions: Hunt' 00h (36 incidents), Santa Ana (31 in s)Newport Beach (18
incidents), and Ga .ncidents).
Actions for All JuriMctions: I
I
• Continue to monitor Fit;
taVetaken
er 4ia hate crimes are housing related
and if there are actions ma by the City or its fair housing service provider
to address potential discriminatd to the bias motivations of hate crimes.
• Continue to coordinate with various City and County housing, building and safety,
health and sanitation, law enforcement and legal aid offices to maintain a
comprehensive referral list of support services for victims of hate crimes or other
violent crimes — inclusive of housing resources.
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Impediment A-6: Unfair Lending
Disparities in the home purchase loan denial rates experienced by Hispanic and Black/African
American applicants within the 16 Orange County cities creates an impediment to fair housing
choice as they have loans denied at rates 1.5 to 1.6 times greater than White applicants. In
addition, Hispanic residents, which comprise 34 percent of Orange County's population,
account for just 10 percent of applications for home purchase loans. Examples of the disparity
between Hispanic residents and Hispanic applicants for home purchase loans include:
Anaheim has a 53 percent Hispanic population, with 20 percent of purchase loan applicants
comprised of Hispanics; La Habra has a 60 percent Hispanic population, with 23 percent
Hispanic mortgage loan applicants; and Santa Ana has a 79 percent Hispanic population, with
just 30 percent of home purchase loan applications made by Hispanics. In addition, the
proportion of Hispanics to the total pool of mortgage loan applicants in the 16 Orange County
cities has decreased in each of the past five years, from 16 percent in 2008 to 10 percent in
2013.
Actions for All Jurisdictions:
• As resources permit, monitor HMDA data annually using the 2013 HMDA analysis
as a benchmark.
• As resources permit, monitor the top 10 lenders in Orange County to compare and
contrast loan denial rates and percentage of loans completed to minority populations.
• Both of the Orange County fair housing service contractors should assist in identifying
potential issues regarding redlining, predatory lending and other illegal lending
activities. In addition, each city should review their agreements annually to make sure
that increased and comprehensive services are being provided, and that education and
outreach efforts are expanded and affirmatively marketed in low and moderate income
and racial concentrated areas.
• Each city should explore ways to collaborate with local lenders and support lenders'
efforts to work with community groups to help minority households purchase their
homes. Co orative efforts should ensure that minority groups have access and
knowledge City programs, supportive services, and provide for networking
opportuniti ith these groups
• Coordinate ders t xpan treach or, effort firs homebuyers in
minority ne oo s. M 4V
• Affirmatively market first-time homebuyer and/or housing rehabilitation programs in
neighborhoods with high denial rates, high minority population concentrations and
limited English speaking proficiency to help increase loan approval rates.
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B. PUBLIC SECTOR IMPEDIMENTS
Impediment B-1:Housing Element Compliance
According to HCD, of the 16 participating jurisdictions, 15 Housing Elements were in
compliance, and San Clemente had submitted a draft Housing Element for the current 2014-
2021 period in early 2016.
Actions for Specific Jurisdictions:
• San Clemente should pursue State certification of its Housing Element.
Impediment B-2: Housing for Persons with Disabilities
Disability is the greatest cited basis for discrimination, comprising over half of the fair housing
cases opened by the Orange County Fair Housing Council and Fair Housing Foundation in the
16 cities over the past three years. With the exception of the City of San Clemente, all
participating jurisdictions have adopted formal policies and procedures in the Municipal Code
to reasonably accommodate the housing needs of disabled residents. However, three cities
charge a fee (Anaheim, Tustin and La Habra), and one city requires a public hearing (Newport
Beach). Imposing a fee or a requirement for a public hearing could serve as an impediment to
persons with disabilities seeking reasonable accommodation.
Actions for Specific Jurisdictions:
• The City of San Clemente should adopt formal Reasonable Accommodations policy
and procedure in 2016.
• The cities of Anaheim, Tustin and La Habra should consider eliminating the processing
fee for reasonable accommodation requests.
• The City of Newport Beach should consider amending its Reasonable Accommodation
procedures to eliminate the requirement for a public hearing, and to approve
administrat
Impediment B-3: ZTlad
g Regulations
The analysis of the use controls an ning es ide ied t folio g potential issues:
Second Units: The City of Newport Bea es nurrently pr e for second units
in its Zoning Code for single-family zoneope but does al or "granny units"
(accessory, age -restricted units) subject t ng mir`i`strator oval of a Minor
Use Permit. The City's age restrictions, combined with the requirement for non -
ministerial approval, may serve to impede housing choice.
- Single -Room Occupancy Housing: The majority of the 16 participating cities either
contain specific provisions for SROs in their Zoning Ordinances, or have clarified in their
City of Newport Beach Draft 2015-2016 CAPER 27
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Housing Elements how SROs are provided for under other zoning classifications. The
cities of Buena Park, Orange and Santa Ana, however, do not currently specify zoning for
SROs, or otherwise clarify how such uses would be provided for, though Buena Park has
indicated SROs could currently be accommodated through a development agreement.
Buena Park and Orange both include programs in their 2014-2021 Housing Elements
to amend the Zoning Code to specifically address the provision of SRO units. Lack of
clarity on provision for SROs can serve to limit housing choice to extremely low income
households, including persons with disabilities and veterans.
Transitional/Supportive Housing: In all participating jurisdictions, with the exception of
the cities of Fountain Valley and Orange, transitional and supportive housing is
permitted in the manner prescribed by State law, regulated as a residential use and
subject to the same permitting and standards as similar residential uses of the same
type in the same zone. The City of Orange Zoning Code currently only addresses
transitional and supportive housing structured in the form of group housing, and the
City of Fountain Valley Zoning Code contains a definition of supportive housing but
doesn't specify how such uses are to be regulated.
Actions for Specific Jurisdictions:
• The City of Newport Beach should consider pursuing a Zoning Code amendment to
eliminate the current age restriction on second units and establish a ministerial review
process.
• The cities of Buena Park, Orange and Santa Ana should amend their Zoning Codes to
specify provisions for SRO units.
• The cities of Fountain Valley and Orange should amend their Zoning Codes to
regulate transitional and supportive housing as a residential use, subject to the same
standards as other residential uses of the same type in the same zone.
Impediment B-4: Density Bonus Incentives
All 16 jurisdictions have adopted local density bonus ordinances which implement state density
bonus law, providing density and other development incentives and concessions for the
provision of affordable housing. However, with the recent addition of anti -displacement
provisions under AB 2222, and modified parking standards for transit -accessible projects
under AB 744, jurisdictions sho Id update their ensity bon s ordinances to reflect these new
State requirements.
Actions for All Jurisdictions:
• All 16 jurisdictions should amend the Zoning Code to reflect current State density bonus
law.
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CR -40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance
of the plan and used to ensure long-term compliance with requirements of the programs
involved, including minority business outreach and the comprehensive planning
requirements
To ensure that CDBG funds are used efficiently and in compliance with applicable regulations,
the City provides technical assistance to all subrecipients at the beginning of each program year
and monitors subrecipients throughout the program year.
Technical Assistance
To enhance compliance with federal program regulations, the City made technical assistance
available to prospective applicants for CDBG Notice of Funding Availability (NOFA) upon request
to review the Strategic Plan goals, program requirements and available resources with potential
applicants. Subsequent to the approval of the Annual Action Plan, a mandatory subrecipient
workshop was held at City Hall to review program regulations in detail, to provide useful forms
and resources for documenting compliance and to review the City's compliance procedures and
requirements. Additionally, individualized technical assistance was provided on an as -needed
basis throughout a program year.
Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to
determine eligibility, conformance with a National Objective and conformance with a Plan goal.
This review also examines the proposed use of funds, eligibility of the service area, eligibility of
the intended beneficiaries and likelihood of compliance with other federal requirements such
as the National Environmental Policy Act, the System for Award Management (SAM) debarment
list, prevailing wage, Minority and Women Business Enterprise, Section 3 and federal
acquisition and relocation regulations, as applicable.
Subrecipients are required to submit an audit and other documentation to establish their
capacity, and any findings noted in the audit are reviewed with the applicant. Eligible
applications are t Bred for funding. Once funded, dfKtoring includes ongoing
review of required rmance reports.
For CDBG public s ce activitie n o o ring nn very two (2) years,
or more frequentl s needed t nsu compliance rc e both a fiscal and
programmatic revi of the sub ipie s activ' a ieif the subrecipient
is complying with ro r ulatl s and con . ti reviewed include
overall administra syste appro ss a itures, program
delivery, client eligibility determination and documentation, reporting systems, and
achievement toward achieving contractual goals. Following the monitoring visit, a written
report is provided delineating the results of the review and any findings of non-compliance and
the required corrective action. Subrecipients normally have 30 days to provide the City with
corrective actions taken to address any noted findings. Individualized technical assistance is
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provided, as noted above, as soon as compliance concerns are identified. For CDBG capital
projects, monitoring also includes compliance with regulatory agreement requirements.
This program year two of the public service providers were selected to be monitored on-site
based on prior year assessment which include Families Forward and Human Options. Both
agencies were in compliance and were cleared on March 21, 2016. The other two agencies, Fair
Housing Foundation and Age Well Senior Services, will have on-site monitorings the following
program year. Desk monitoring for all subrecipients was conducted throughout the program
year. No findings were identified during 2015-2016 subrecipient monitoring.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to
comment on performance reports.
In accordance with the City's adopted Citizen Participation Plan, a public notice was published
in the Daily Pilot on August 26, 2016 notifying the public of the availability of the Consolidated
Annual Performance and Evaluation Report for a 15 -day public review and comment period. A
copy of the public notices is included in Appendix A.
The draft CAPER was available on the City website and at the following locations:
Community Development Department
100 Civic Center Drive
Newport Beach, CA, 926660
(949) 644-3200
Central Library
1000 Avocado Ave
Newport Beach, CA 92660
—
A public hearing was conducteMefor he Cis
solicit comments from residents and ereste
comments received during the public hearing is inc
City of Newport Beach
Inch I uesaay,
summary
ed in Appendix B.
Draft 2015-2016 CAPER
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r written or oral
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CR -45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction's program objectives
and indications of how the jurisdiction would change its programs as a result of its
experiences.
CDBG funds are making a significant impact on strategies to address the high priority needs
identified in the 2015-2019 Consolidated Plan Strategic Plan. As shown in Figure 1 in section CR -
05 of this document, CDBG funds contributed to all six Strategic Plan goals as indicated below:
Fair Housing Services — Fair Housing Foundation - $12,000
The Fair Housing Services project provided fair housing assistance to 145 people, the estimated
outcome was 235 moderate -income people. The agency utilized the full amount of its grant.
Public Services — Age Well Senior Services: Home Delivered Meals Program - $25,0000
The Public Services project provided assistance to 109 people, the estimated outcome was 112
presumed low-income elderly people. The agency utilized the full amount of its grant.
Special Needs — Human Options: Community Domestic Violence - $5,000
The Special Needs project provided domestic violence services to 11 people, the estimated
outcome was 10 presumed low-income people. The agency utilized 96% of its grant.
Homelessness Prevention — Families Forward: Housing Program - $15,000
The Homelessness Prevention project provide supportive services to 243 people; the estimated
outcome was 165 presumed extremely -low income homeless people. The agency utilized the
full amount of its grant.
Commercial Facade Improvements - $125,320
The Commercial Fagade Improvements activity will provide an area benefit to the 20,750
residents (according to HUD -published 2014 Low- and Moderate -Income Summary Data) of the
City's eligible low- and moderate -income Census Tract Block Groups shown in maps located in
Appendix C to the ConPlan during the subsequent fiscal year.
Section 108 Loan Debt - $207,3
The City completed its obligatio it ction asor
pay nt as planned in the Action
Plan.
The City has met or exceeded the majorityal g s for the aforementioned
objectives. Although, there were no accomplishmommercial Fagade Improvements
during this program year due to local sources being spent first, the City anticipates spending
and reallocating the funds during the subsequent program year. More accomplishment levels
will be realized in the 2016-2017 CAPER.
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Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI)
grants?
The City does not receive Brownfields Economic Development Initiative grants.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.
N/A
City of Newport Beach
Draft 2015-2016 CAPER
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