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HomeMy WebLinkAbout2018-37 - Approving the 2018-2019 Action Plan for the Allocation of the Federal Community Development Block Grant for the 2018-2019 Fiscal YearRESOLUTION NO. 2018-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE 2018- 2019 ACTION PLAN FOR THE ALLOCATION OF THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FOR THE 2018-2019 FISCAL YEAR WHEREAS, the City of Newport Beach ("City") participates in the United States Department of Housing and Urban Development's ("HUD") Community Development Block Grant ("CDBG") program, WHEREAS, HUD requires the City to prepare a Five Year Consolidated Plan for the use of HUD grant programs outlining the use of the CDBG and the strategic vision for housing and community development in the City; WHEREAS, the current 2015-2019 Consolidated Plan was adopted on May 12, 2015, and was amended on May 9, 2017)- WHEREAS, 017; WHEREAS, HUD also requires the City to prepare an annual Action Plan for the appropriation of the CDBG annual grant and other available grant funds during any given fiscal year; WHEREAS, the City anticipates receiving approximately $358,444.00 in grant funds for the 2018-2019 Fiscal Year and will have an additional $12,241.00 in unallocated funds and program income to spend during the year; the draft 2018-2019 Action Plan appropriates these funds to various programs and projects consistent with the amended 2015-2019 Consolidated Plan and HUD requirements; WHEREAS, on January 13, 2018, a Notice of Funding Availability was published in the Daily Pilot newspaper and sent to known non-profit community organizations currently operating within the City requesting proposals from non-profit organizations to provide public services to low- and moderate -income residents within the City and to provide fair housing services to all residents of the community; WHEREAS, five (5) proposals to provide public services and one (1) proposal to provide fair housing services were received by the City; WHEREAS, the City prepared the 2018-2019 Action Plan in accordance with applicable sections of 24 Code of Federal Regulation Part 91; WHEREAS, on May 11, 2018, a public notice was published in the Daily Pilot newspaper indicating that the draft 2018-2019 Action Plan would be available to the public for review and comment from May 11, 2018, to June 12, 2018; and WHEREAS, on June 12, 2018, the City Council conducted a public hearing regarding the draft 2018-2019 Action Plan and a notice of this public hearing was published in the Daily Pilot on May 11, 2018, consistent with requirements of the City's Citizen Participation Plan. Resolution No. 2018-37 Page 2 of 3 NOW THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The City Council finds that the development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969 ("NEPA"), as amended. Section 2: The City Council approves the 2018-2019 Action Plan attached as Exhibit A of this resolution, which is incorporated herein by reference. Section 3: The City Council authorizes the City Manager, or his/her designee, to: 1) Proportionally adjust appropriations to specific programs and projects as necessary to conform with the final 2018-2019 formula grant allocation of CDBG funds from HUD if the appropriation is more than $358,444.00 or less than $358,444.00; 2) Submit the 2018- 2019' Action Plan to HUD; 3) Execute the Fiscal Year 2018-2019 CDBG Program Grant Agreement and all related documents on behalf of the City; 4) Execute all subrecipient agreements with the nonprofit organizations receiving allocations of CDBG funds in the Action Plan; and 5) Authorize the Community Development Department Director, or his/her designee, to be the official representative of the City to administer the program and submit required environmental documentation to HUD for CDBG projects. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. Section 6: The City Council finds the approval of the 2018-2019 Action Plan 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. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. FIA H H Resolution No. 2018-37 Page 3 of 3 ADOPTED this 12th day of June, 2018. Marshall "Duffy" Duffield Mayor ATTEST: aI. Brown u Z City Clerk y APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE I Aaron C. p City Atto Attachment: Exhibit A - 2018-2019 Action Plan 0 iFr- cif r: Ann Executive Summary AP -05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The 2018-2019 Action Plan is the fourth of five annual plans implementing the 2015-2019 Consolidated Plan Strategic Plan goals for the investment of annual allocations of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The Action Plan identifies available resources, annual goals, projects and activities for the period beginning July 1, 2018 and ending June 30, 2019. The City of Newport Beach (City) receives CDBG funds from HUD on a formula basis each year, and in turn, awards grants to nonprofit, for-profit or public organizations for programs and projects in furtherance of the Strategic Plan. The CDBG program generally provides for a range of eligible activities which benefit low- and moderate -income Newport Beach residents, as discussed below. Community Development Block Grant (CDBG) The Housing and Community Development Act of 1974 created the CDBG Program with three primary objectives against which HUD evaluates the Consolidated Plan and the City's performance under the Plan. Those primary objectives are decent housing, suitable living environments, and expanded economic opportunities for low- and moderate -income persons. The CDBG regulations require that each activity meet one of the following national objectives: • Benefit low- and moderate -income persons; • Aid in the prevention or elimination of slums and blight; or • Meet other community development needs having a particular urgency (usually the result of a natural disaster). For the 2018-2019 program year, the City will receive $358,444 of CDBG funds from HUD. When this amount is combined with prior year unallocated funds and program income received, a total of $370,685 is available in the Action Plan. Table 1 provides the amount of CDBG funds available for the 2018-2019 program year. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 2 OMB Control No: 2506-0117 (exp. 06/30/18) (1) Ensure equal access to housing opportunities (2) Provide public services for low-income residents (3) Provide public services for residents with special needs (4) Prevent and eliminate homelessness (5) Improve public facilities and infrastructure The following five goals are identified in the Strategic Plan: (1) Fair Housing Services (2) Public Services (3) Special Needs Services (4) Homelessness Prevention Services (5) Public Facilities and Infrastructure Improvements Table 2 - Strategic Plan Summary DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 4 OMB Control No: 2506-0117 (exp. 06/30/18) 5 -Year 2018-2019 Goal Name Category Need(s) Outcome Outcome Addressed Indicator Indicator 1. Fair Housing Services Affordable Ensure equal 600 people 125 people Housing access to housing opportunities 2. Public Services Non -Housing Provide public 700 people 132 people Community services to low - Development income residents 3. Special Needs Services Non -Housing Provide public 50 people 9 people Community services to low - Development income residents 4. Homelessness Prevention Homeless Prevent and 800 people 215 people Services eliminate homelessness 5. Public Facilities and Non -Housing Improve public 8,595 people No activities Infrastructure Community facilities and Improvements Development infrastructure DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 4 OMB Control No: 2506-0117 (exp. 06/30/18) 2018-2019 Action Plan In the development of the Action Plan, the City solicited applications from eligible subrecipients including non-profit organizations and public agencies for fair housing services and a variety of public service activities. The draft Action Plan was available for public review and comment from May 11, 2018 to June 12, 2018. 5. Summary of public comments 2018-2019 Action Plan The City received [to be inserted after CC meeting] public comments during the Public Hearing meeting held on June 12, 2018: • [comments to be added after CC meeting] • [comments to be added after CC meeting] 2015-2019 Consolidated Plan In the development of the Consolidated Plan, the City convened a community meeting to discuss the housing and community development needs in the community on February 26, 2015 at the Newport Beach Civic Center. Community residents and stakeholders attended the meeting and received a presentation on the importance of the Consolidated Plan, Action Plan and the Analysis of Impediments to Fair Housing Choice. Many questions were answered concerning each of the planning documents and participants commented on the extensive efforts made to reach out to the low- and moderate -income community through traditional methods such as newspaper advertisements and flyers distributed to affordable housing sites, senior community centers, libraries, and other public places as well as new technology-based methods such as the City's News Splash email newsletter and the city website. A community meeting/hearing to discuss the housing and community development needs in Newport Beach was held on February 26, 2015 at the Community Room in the Newport Beach Civic Center. Participants and staff discussed the CDBG program and attendees were encouraged to complete the City's 2015-2019 Consolidated Plan Needs Assessment Survey. A public hearing to receive comments on the draft 2015-2019 Consolidated Plan was held before the Newport Beach City Council on May 12, 2015. One public comment was received during the public hearing prior to the adoption of the Consolidated Plan: DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 6 OMB Control No: 2506-0117 (exp. 06/30/18) The Process PR -05 Lead & Responsible Agencies 24 CFR 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan AP The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Tahle 3 — Racnnncihla Aaanriac Agency Role Name Department/Agency CDBG Administrator Newport Beach Community Development Department, Planning Division Narrative The Community Development Department of the City of Newport Beach is the lead agency responsible for the administration of the CDBG program. The Community Development Department contracted with LDM Associates, Inc. to prepare the 2015-2019 Consolidated Plan. In the development of the Consolidated Plan, LDM Associates, Inc. developed and implemented a comprehensive citizen participation and consultation process and conducted a needs assessment and market analysis to identify levels of relative need regarding affordable housing, homelessness, special needs, and community development. This information was gathered through consultation with public officials and local agencies, public outreach and community meetings, review of demographic and economic data, and housing market analysis. In the implementation of the 2015-2019 Consolidated Plan and each of the five Annual Action Plans, the Planning Division shall be responsible for all grants planning, management and monitoring duties necessary to comply with HUD regulations and City policy. Consolidated Plan Public Contact Information City of Newport Beach Lauren Wooding Whitlinger, Real Property Administrator Community Development Department 100 Civic Center Drive Newport Beach, CA 92660 (949) 644-3236 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 8 OMB Control No: 2506-0117 (exp. 06/30/18) Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness The Continuum of Care (CoC) for Orange County guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. Orange County's homeless system of care is comprised of a network of public, private, faith - based, for-profit, and nonprofit service providers who utilize several federal, state and local resources to provide services for homeless people. The region's municipalities, including the City of Newport Beach, also provide resources for services that assist the homeless and those at risk of becoming homeless. The County's nonprofit community plays a key role in the Continuum of Care system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women. The County's nonprofit community also serves special needs populations, such as victims of domestic violence, veterans, the disabled and youth. The CoC guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. The City provided a detailed questionnaire to the CoC to identify the CoC's perceived needs in the county and its objectives to address the needs of different homeless populations, specifically chronically homeless families and individuals, families with children, veterans, unaccompanied youth and persons at risk of homelessness. Following the delivery and response to this questionnaire, the City followed up with the CoC to clarify existing needs and objectives and understand opportunities for collaboration and coordination during the five-year planning process. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS In the development of the 2015-2019 Consolidated Plan, the City of Newport Beach consulted with 25 housing, social service and other entities involved in housing, community and economic development in Newport Beach and how CDBG funds and other resources should be invested to provide decent affordable housing, a suitable living environment and economic opportunities for low- and moderate -income residents. The Orange County Continuum of Care was consulted directly by telephone and e-mail to discuss performance standards, outcomes, and policies and procedures for HMIS. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 10 OMB Control No: 2506-0117 (exp. 06/30/18) DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 12 OMB Control No: 2506-0117 (exp. 06/30/18) How was the Agency/Group/Organization consulted and what Survey, e-mail, and mail. are the anticipated outcomes of the consultation or areas for improved coordination? 4 Agency/Group/Organization Aids Services Foundation of Orange County Agency/Group/Organization Type Services -Persons with HIV/AIDS What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what Survey, e-mail, and mail. are the anticipated outcomes of the consultation or areas for improved coordination? 5 Agency/Group/Organization New Horizon Shelters Agency/Group/Organization Type Services -homeless What section of the Plan was addressed by Consultation? Homelessness Strategy Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth AP 2018-2019 How was the Agency/Group/Organization consulted and what Survey, e-mail, and mail. are the anticipated outcomes of the consultation or areas for improved coordination? 6 Agency/Group/Organization 211 Orange County Agency/Group/Organization Type Services -homeless What section of the Plan was addressed by Consultation? Homelessness Strategy Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth AP 2018-2019 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 12 OMB Control No: 2506-0117 (exp. 06/30/18) 11 Agency/Group/Organization Irvine Company Agency/Group/Organization Type Housing Business Leaders What section of the Plan was addressed by Consultation? Housing Need Assessment AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? 12 Agency/Group/Organization Vocational Visions Agency/Group/Organization Type Services -Persons with Disabilities What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? 13 Agency/Group/Organization Women Helping Women Agency/Group/Organization Type Services -Victims of Domestic Violence Services -Employment What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? 14 Agency/Group/Organization Mariposa Women and Family Services Agency/Group/Organization Type Services -Health What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 14 OMB Control No: 2506-0117 (exp. 06/30/18) DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 16 OMB Control No: 2506-0117 (exp. 06/30/18) What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what Survey, e-mail, and in person are the anticipated outcomes of the consultation or areas for improved coordination? 18 Agency/Group/Organization Serving People in Need, Inc. (SPIN) Agency/Group/Organization Type Services - Housing Services -Victims of Domestic Violence Services -homeless What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what Survey, e-mail, and in person are the anticipated outcomes of the consultation or areas for improved coordination? 19 Agency/Group/Organization Youth Employment Services of The Harbor Area Agency/Group/Organization Type Services -Education Services -Employment What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what Survey, e-mail, and in person are the anticipated outcomes of the consultation or areas for improved coordination? 20 Agency/Group/Organization Rebuilding Together Orange County Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Housing AP 2018-2019 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 16 OMB Control No: 2506-0117 (exp. 06/30/18) 23 Agency/Group/Organization Wise Place Agency/Group/Organization Type Services -Victims of Domestic Violence What section of the Plan was addressed by Consultation? Public Services AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? 24 Agency/Group/Organization Seaview Lutheran Plaza Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Housing Needs AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? 25 Agency/Group/Organization Habitat for Humanity of Orange County, Inc. Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Housing Need Assessment AP 2018-2019 How was the Agency/Group/Organization consulted and what are Survey, e-mail, and mail. the anticipated outcomes of the consultation or areas for improved coordination? Identify any Agency Types not consulted and provide rationale for not consulting The City maintains comprehensive list of local agencies, organizations and other stakeholders and invited representatives from each entity to participate at multiple points in the planning process. If an agency did not attend to the meeting or participate in surveys, it was done so by the agency's choice. If an agency or organization was not consulted and would like to be included in the City's list of stakeholders, the agency or organization may contact the Community Development Department, Planning Division at (949) 644-3200. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 18 OMB Control No: 2506-0117 (exp. 06/30/18) AP -12 Citizen Participation — 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal -setting The City established and followed a process for the development of the five-year Consolidated Plan that included broad participation from the community. To assist in the identification of priority needs in the City, the 2015-2019 Consolidated Plan Needs Assessment Survey was prepared and distributed to residents of the City to solicit resident input in the prioritization of needs related to community services, community facilities, infrastructure, neighborhood services, special needs services, businesses and jobs, and housing. The surveys were available online and also were made available at various public facilities. A community meeting to discuss the housing and community development needs in the community was held on February 26, 2015. The public hearing took place on May 12, 2015 to receive comments on the draft 2015-2019 Consolidated Plan. At each step in the process, the City was careful to ensure that low- and moderate -income residents, members of minority groups, agencies involved in the provision of services to these populations, and others who are directly impacted by the programs and activities supported by the Consolidated Plan programs had the opportunity to be actively involved. In the preparation of the 2015-2019 Consolidated Plan, the City followed the process established for citizen participation set forth in the Citizen Participation Plan. To promote greater public accessibility to program documents, the Citizen Participation Plan, Consolidated Plan, Action Plans, CAPERS and the Analysis of Impediments to Fair Housing Choice are posted on the City website at: https://www.newportbeachca.gov/index.aspx?page=1871 In the preparation of the 2018-2019 Action Plan, the City made the draft Action Plan available for public review and comment from May 11, 2018 to June 12, 2018. 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O O N N 00 0 r.{ Z O o N ,L, Ho LL U = m 00 AP -15 Expected Resources — 91.220(c)(1,2) Introduction The projects and activities included in the 2018-2019 Action Plan are based on resources that are reasonably anticipated to be available to the City from federal, state, local and private sources from July 1, 2018 through June 30, 2019. The City will receive $358,444 of CDBG funds from HUD. In addition, this Action Plan allocates $9,174 of prior year unprogrammed CDBG funds and $3,067 of prior year program income received. The actual resources available to support activities during the implementation of the remainder of the 2015-2019 Consolidated Plan may vary significantly due to factors outside of the City's control. For example, HUD formula grant allocations are subject to change each year based on a number of factors such as the amount of the national appropriation, changes in ACS population data applied to the CPD grant formulas, statutory changes to the CPD grant formulas, the addition or removal of entitlements receiving a particular CPD grant and the availability of reallocated funds. Additionally, state, local and private resources will vary significantly depending on economic conditions. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 29 OMB Control No: 2506-0117 (exp. 06/30/2018) Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The City and its development partners may continue to seek new opportunities to leverage federal funds, such as the Low -Income Tax Credit program and U.S. Department of Housing and Urban Development Section 202 and 811 for the Elderly Program, as well as a host of State resources to be made available following the passage of several affordable housing bills in late 2017. Depending on the financing structure of a given activity, the City may use CDBG funds to leverage appropriate state, local and private resources, including but not limited to those listed below. 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 (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program • Orange County Housing Authority (OCHA) Programs Private Resources • Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs • United Way Funding • Private Contributions DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 31 OMB Control No: 2506-0117 (exp. 06/30/18) _a W M V O N N l"I Q1 O N Rl a -i cu U a O C C O m to _H E m L /O 0 V = L a E r_ E Q � O N N '^ a f6 Q 0 L F + O ua d Q a "O -O p 00 O0 L _ O +-� m >> + a m u cu Q a E 00 a Q .V o '~ y 0 Q a U O J v� vii (U a O J — +� U -S-1 7 Ln M 7 N > C O C a _U > C O V) a, O ca O LL ri a n3 2 Q N O_ a) co 2 o2f I— +� a O a O a +� O V L E Q a Q U L Q a u a +' i N O � t O u O = u O O a +� O E M r-1 S -1 N a ,� O a Q + O cn 11 O_ O C O C,6 w O 'a Lo a >- O 'n `� O O O —_ a 00 N � N v d. 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E bA dr co 7 O C 7 O a O C O O C O ca •� 2 a 2 O 2 O v E> E c E> � E> o o o p a O o Q S z u Q 2 z cps o z u o L mrn rn rn m r- 1 c -i O r -I O IH O r1 O LU >-O ` L OO OO 00 OO OO N O N O N O N O N O N \ 00 ar E Ln 'n� N v O z 04 S u > C C cu + — a C U in N O .0 U E > m 0 =3 Ln vi a +� c a z — a a > .� U v Q 2 U U a a U UV N 0 a L) cn + ) LL Ln a 2 a Lai cn VCL a ca O L O ei N M U1 of O M m 2 u Q LU m O a LU LU z LL O H U 00 Z O o o LL U <m O o Estimate the number of extremely low-income, low-income, and moderate -income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b) During the 2018-2019 Action Plan period, the City does not anticipate creating any affordable housing units that will meet the HOME Investment Partnerships (HOME) program definitions of affordable housing found at 24 CFR 92.252 for rental and 24 CFR 92.254 for homeownership. Any new affordable housing that is made available to Newport Beach residents will be as a result of other local, state or federal investment or as part of a density bonus agreement. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 35 OMB Control No: 2506-0117 (exp. 06/30/18) that is not affordable to low-income residents. To address these obstacles, the City is investing CDBG funds through the 2018-2019 Action Plan in projects that provide public services to low - and moderate -income people, prevent homelessness and address special needs populations to strengthen economic opportunities for the low- and moderate -income residents of Newport Beach. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 37 OMB Control No: 2506-0117 (exp. 06/30/2018) 2 Project Name FAIR HOUSING SERVICES Target Area Citywide Goals Supported Fair Housing Services Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $12,000 Description Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti -discrimination and landlord -tenant mediation services. Target Date 6/30/2019 Estimate the number and Approximately 125 people will benefit from the proposed activity. type of families that will benefit from the proposed activities Location Description Citywide Planned Activities Fair Housing Foundation: Fair Housing Services (125 people) - $12,000 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 39 OMB Control No: 2506-0117 (exp. 06/30/2018) 4 Project Name SPECIAL NEEDS SERVICES Target Area Citywide Goals Supported Special Needs Services Needs Addressed Provide public services for residents with special needs Funding CDBG: $6,266 Description Provide special needs services including, but not limited, to those concerned with disabilities, domestic violence, substance abuse and HIV/AIDS. The Second Chance Orange County — More Second Chances for those in Recovery activity will provide supportive services to recovering addicts in Newport Beach. Supportive mentorship and counseling services are designed to help individuals for a period of one year to maintain sobriety, secure employment and / or further their education. Target Date 6/30/2019 Estimate the number Approximately 9 people will benefit from the proposed activity. and type of families that will benefit from the proposed activities Location Description Citywide Planned Activities Second Chance Orange County: More Second Chances for those in Recovery (9 people) - $6,266 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 41 OMB Control No: 2506-0117 (exp. 06/30/2018) 6 Project Name SECTION 108 LOAN REPAYMENT Target Area Citywide Goals Supported Section 108 Debt Service (Public Facilities) Needs Addressed Improve public facilities and infrastructure and economic opportunity Funding CDBG: $177,561 Description Section 108 Loan Repayment Target Date 6/30/2019 Estimate the number and type of families that will benefit from the proposed activities Not applicable. Location Description Not applicable. Planned Activities Section 108 Loan Repayment - $177,561 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 43 OMB Control No: 2506-0117 (exp. 06/30/2018) AP -50 Geographic Distribution — 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Based on evaluation of CPD Maps data, there are no areas within the City exhibiting a greater level of need for affordable housing or services for low- and moderate -income residents and there were no areas of the City containing minority concentrations; therefore, no geographic priorities were established within the Consolidated Plan and allocation priorities will be driven by citywide need. All CDBG funds will be directed toward activities benefitting low- and moderate -income residents citywide. The only exception to this approach would be for CDBG projects that are 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 new community public facility and community infrastructure. Geographic Distribution Table 12 - Geographic Distribution Target Area Percentage of Funds Citywide 100% Rationale for the priorities for allocating investments geographically For the 2018-2019 program year, the City's investments in Fair Housing Services, Public Services, Homelessness Prevention Services, and ADA Improvements projects are based on a citywide geography because individuals in need of these services may live anywhere within the jurisdiction—particularly services for seniors with needed assistance and people that are homeless or at -risk of becoming homeless. Discussion Based on the Strategic Plan, the City is allocating 100 percent of its non -administrative CDBG funds for program year 2018-2019 to projects and activities that benefit low- and moderate - income people. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 45 OMB Control No: 2506-0117 (exp. 06/30/2018) According to CHAS data showing the year that housing units were built categorized by owner and renter tenure: • 5,363 or 26 percent of the 20,950 owner -occupied housing units built between 15 and 34 years ago (built between 1980 and 1999). • 12,619 or 61 percent of the 20,950 owner -occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). • 3,934 or 23 percent of the 17,098 renter -occupied housing units in Newport Beach were built between 15 and 34 years ago (built between 1980 and 1999). • 11,655 or 68 percent of the 17,098 renter -occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). Preservation of the physical and functional integrity of existing housing units occupied by low - and moderate -income households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable to low- and moderate -income households in the community. Addressing substandard housing conditions through housing preservation activities ensures that all economic segments of the community have the opportunity to live in decent housing that meets local standards. Table 13 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless 0 Non -Homeless 0 Special -Needs 0 Total 0 Table 14 - One Year Goals for Affordable Housine by Sunoort Tvne One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 0 Acquisition of Existing Units 0 Total 0 DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 47 OMB Control No: 2506-0117 (exp. 06/30/2018) AP -60 Public Housing — 91.220(h) Introduction 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. As of January 2018, OCHA administered a total of 9,794 housing vouchers throughout the County. The 145 housing vouchers in use in the City of Newport Beach include: • 14 Veterans Affairs Supportive Housing (VASH) vouchers; • 3 Continuum of Care Program Permanent Supportive Housing Certificates; • 3 Family Unification Program vouchers; and • 125 Housing Choice Vouchers (Section 8). OCHA monitors all units to ensure they are in adequate condition, meeting the Section 8 Housing Quality Standards (HQS). Actions planned during the next year to address the needs to public housing OCHA's stated goals include: • 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. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 49 OMB Control No: 2506-0117 (exp. 06/30/2018) AP -65 Homeless and Other Special Needs Activities — 91.220(i) Introduction The City will invest CDBG funds during the 2018-2019 program year to address high priority needs identified in the 2015-2019 Consolidated Plan including preventing homelessness and providing public services to homeless populations. Homelessness Prevention Services According to the most recent bi-annual Point -In -Time Homeless Count (PIT Count) data available from the PIT Count held on January 28, 2017, on any given night in Orange County, approximately 4,792 people are homeless. To address incidences of homelessness that may occur in Newport Beach and to prevent extremely low-income families from becoming homeless, the City places a high priority on programs that work to prevent homelessness or rapidly assist homeless individuals living in the community. To address this need, the City will support CDBG public service activities that help prevent homelessness and that provide a structured path to stable housing for individuals and families who become homeless. Services for Residents with Special Needs Analysis of available data and consultation with organizations providing services for special needs populations revealed a high need for a range of additional services including, but not limited to, those concerned with domestic violence, human trafficking, mental disabilities, physical disabilities, developmental disabilities, substance abuse/alcoholism and HIV/AIDS. To address the needs of those residents addicted to drugs and/or alcohol, the City is providing CDBG funds to the following activity: • Second Chance Orange County: More Second Chances for Those in Recovery (9 people) Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs 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 will provide information and referrals — primarily to 2-1-1 Orange County. Additionally, to reduce and end homelessness, the City of Newport Beach will provide CDBG public service funds to the following activity: • Families Forward: Housing Program (215 people) DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 51 OMB Control No: 2506-0117 (exp. 06/30/2018) being discharged into homelessness. The CoC is seeking improve coordination among publicly and privately funded institutions of care and local service agencies in the County of Orange in order to decrease the number of persons being discharged into homelessness annually. Discussion The City of Newport Beach considers addressing homelessness a high priority need for the CDBG program and will support public service activities that help prevent homelessness and that provide a structured path to stable housing for individuals and families who become homeless. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 53 OMB Control No: 2506-0117 (exp. 06/30/2018) Discussion: To address housing affordability and the lack of monetary resources for affordable housing, the City has invested available Affordable Housing Trust Fund resources to incentivize the development of new affordable housing units and the preservation of existing affordable housing. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 55 OMB Control No: 2506-0117 (exp. 06/30/2018) Housing Assistance Repair Program (SHARP) in 2016, operated in partnership with Habitat for Humanity Orange County (Habitat OC). Initial program funding of up to $600,000 was granted by the City Council from the City's Affordable Housing Trust Fund. This two-year program to perform critical home repairs for lower-income seniors was extended for an additional two years so that assistance will be available into 2020. To date, seven projects have been approved and two applications were denied. Of the seven total projects, four have been completed at a total cost of $129,897. As of this writing, three applications are under contract for rehabilitation and two additional projects are in the application phase. The scope of work for SHARP projects generally includes some combination of the following repairs: roofing, painting, plumbing, electrical, structural/accessibility (repairing and modifying hazardous steps and landings), landscaping (when in violation of City codes), installation of smoke detectors and addressing "hoarding" conditions. It is anticipated that the City (OASIS Senior Center) and Habitat OC will complete three additional projects in the coming program year. The City of Newport Beach is registered as a Qualified Preservation Entity with the California Department of Housing and Community Development (HCD). When notification is received of the expiration of a prior affordable housing agreement—whether monitored by the City or as part of a different affordable housing program not sponsored by the City—staff evaluates the potential use of local Affordable Housing Trust funds to preserve the affordable units, subject to funding availability. The City also continues to consider Density Bonuses and other incentives on a project -by - project basis to encourage the construction of housing for persons and families of very low, low, and moderate income. Actions planned to reduce lead-based paint hazards In the implementation of any future Residential Rehabilitation Programs, 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 planned to reduce the number of poverty -level families The implementation of CDBG activities meeting the goals established in the 2015-2019 Consolidated Plan -Strategic Plan and this Annual Action Plan will help to reduce the number of poverty -level families by: DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 57 OMB Control No: 2506-0117 (exp. 06/30/2018) service agencies To enhance coordination between public and private housing and social service agencies, the City 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. Discussion: In the implementation of the 2018-2019 Annual Action Plan, the City will invest CDBG resources to address obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional structure and enhance coordination between public and private social service agencies. DRAFT 2018-2019 Action Plan CITY OF NEWPORT BEACH 59 OMB Control No: 2506-0117 (exp. 06/30/2018) 2018-2019 ANNUAL ACTION PLAN JULY 1, 2018 THROUGH JUNE 30, 2019 APPENDIX A Citizen Participation • Proof of Publication — Public Hearing and Adoption • Proof of Publication — NOFA Process • Summary of Comments Received \tr J, ,f TRACT: 063010 Block Group:2 wa,, 46% TRACT: 063103 Block Group:2 Residential Area: 98% 42.35% t No. of Units:70 in the City of Newport Beach (437 units outside jurisdiction) OArea: Residential Area: 100% No. of Units:1304 J '\ Residential Area: 28% No. of Units:627 TRACT. 063004 Block Group:3 67.94% TRACT: 063004 Block Group:2 65.23% MAP 2 Community Development Block Grant (CDBG) Target Areas Low / Moderate Income (Portion of) Census Block Groups Greater than 42.27 % CDBG_T-get_A,eos8.5X I I_Mop_2—d Residential Area: 85% No. of Units:509 TRACT."'062800 Block Group:4 49.12% Residential Area: 97% No. of Units:918 eL V° TRACT: 062800 Block Group. -3 . 42.44% Residential Area: 63% No. of Units:1024 Balboa Village MAP 4 Community Development Block Grant (CDBG) Target Areas Low / Moderate Income (Portion of) Census Block Groups Greater than 42.27 % CDBG_T.,gel_A,—,8.5X1 I_Map_4. d STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2018-37 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 12th day of June, 2018; and the same was so passed and adopted by the following vote, to wit: AYES: Council Member Herdman, Council Member Kevin Muldoon, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Brad Avery, Mayor Pro Tem Will O'Neill, Mayor Duffy Duffield NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 13th day of June, 2018. )10i4,hW_ Leilani I. Brown City Clerk Newport Beach, California