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Home My WebLink About15 - CDBG One-Year Action Plan for 2002-2003RdEW �RJ O 6 V IS C�biOM1��' CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3229 Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL 992002 15 Daniel Trimble (949) 644 -3230 SUBJECT: Review, approval and submission of the FY 2002 -2003 Community Development Block Grant One -Year Action Plan to the U.S. Department of Housing and Urban Development (HUD). SUMMARY: As part of the annual Community Development Block Grant application process, the City must prepare and submit a One -Year Action Plan that details how the grant funds will be allocated for the upcoming fiscal year. SUGGESTED ACTION: 1. Conduct public hearing, and 2. After receiving public comments, staff recommends the Council approve the 2002 -2003 One -Year Action Plan. Background Purpose of the Action Plan The Action Plan represents the City of Newport Beach's official application to HUD for Community Development Block Grant (CDBG) Funds. The Action Plan describes the activities to be implemented during the coming fiscal year. It also provides a participatory process through which our citizens are given an opportunity to determine, provide input, and be informed about the projected use of funds. More importantly, it is the tool that verifies and assists in the implementation of the goals and strategies outlined in the Five -Year Consolidated Plan to meet our City's housing and community development needs. I Citizen Participation During the March 26, 2002 City Council meeting, the Council initiated a public hearing to solicit input from the community and to review the various projects proposed for the 2002 -2003 CDBG program year. The Newport Beach Planning Department is also entrusted by the Newport Beach City Council with the responsibility of reviewing all applications for CDBG funding by public service and fair housing agencies, and of making funding recommendations to the City Council. A draft version of the Action Plan was developed and was released for a 30 -day public review and comment period beginning on March 9, 2002. On April 9, 2002, the Newport Beach City Council will also conduct a public hearing to review any additional comments received on the draft Action Plan, and to make final funding decisions on the proposed activities. The City Council's funding decisions will be incorporated into the final Action Plan to be submitted to HUD on or about April 15, 2001 for approval. All comments received on the draft Action Plan will be summarized and included in the final Action Plan. Summary 1. Resources The first section of the Action Plan describes resources including federal, local and non - profit resources, which are expected to be available in FY 2002 to meet the community needs. For FY 2002 -2003, Newport Beach has been allocated $490,000 in CDBG funds. 2. Activities to be Undertaken This section describes the CDBG activities proposed for FY 2002 -2003 and how these activities relate to the City's 2000 -2004 Consolidated Plan priorities. Each proposed FY 2002 -2003 activity is briefly described below: Public Service Providers a. Orange Coast Interfaith Shelter (OCIS): The Orange Coast Interfaith Shelter (OCIS), the oldest and largest shelter in the County, provides temporary and emergency housing along with 24 -hour staff assistance for homeless individuals and families. Funds will be used to help cover a portion of the administrative costs of a shelter administrative staff support position. b. WISE Place: Provides temporary shelter and assistance to homeless women and children including battered, senior, and disabled women. FY 2002 -2003 CDBG One -Year Action Plan April 9, 2002 Page 2 C. FISH - HARBOR -AREA, Inc.: FISH is a Newport Beach based local service agency that assists `at -risk' households and individuals facing evictions and prevents them from becoming homeless. d. SPIN (Serving People in Need): SPIN provides temporary and transitional housing and support services to low- income, homeless, and at- risk families and individuals. Funds will be used for room and board in a recovery home and case management. e. South County Senior Services: Through the Oasis Senior Center, the agency provides three nutritious home - delivered meals per day to elderly and disabled Newport Beach residents who are unable to leave their homes. Funds will be used for food and delivery costs. Administration and Fair Housing L Administration: Approximately 20 percent of the City's CDBG allocation ($98,000) is proposed for administrative purposes. For FY 2002 -2003, the City has allocated approximately 14 percent of the administration funds ($14,000) for the Fair Housing Council of Orange County. The Council provides housing advocacy and counseling services to Newport Beach residents. FY 2002 -2003 CDBG One -Year Action Plan April 9, 2002 Page 3 Amount Funded Amount Amount Service Provider FY2001 -2002 Requested Recommended Orange Coast Interfaith $10,000 $15,000 $10,000 Shelter WISE Place $4,000 $5,000 $5,000 FISH Harbor Area $37,700 $50,000 $38,500 Homeless Prevention ($17,700- ($25,000- ($18,500 - Mobile Meals Homeless Prevention Homeless Prevention Homeless Prevention $20,000- $25,000- $20,000 - Mobile Meals) Mobile Meals) Mobile Meals) SPIN $10,000 $10,000 $10,000 South County Senior Services $16,000 $10,000 $10,000 Total Public Service Grants $77,700 $90,000 $73,500 Administration and Fair Housing L Administration: Approximately 20 percent of the City's CDBG allocation ($98,000) is proposed for administrative purposes. For FY 2002 -2003, the City has allocated approximately 14 percent of the administration funds ($14,000) for the Fair Housing Council of Orange County. The Council provides housing advocacy and counseling services to Newport Beach residents. FY 2002 -2003 CDBG One -Year Action Plan April 9, 2002 Page 3 Service Provider Amount Funded FY2001 -2002 Amount Requested Amount Recommended Fair Housing Council of Orange County** $14,028 $14,400 $14,400 Other Administration $89,572 $83,600 $83,600 Total Administration $103,600 $98,000 $98,000 ** 14.7% of the $98,000 that can be usedJor CDBG Public Facility Improvement Programs g. Code Enforcement: CDBG funds in conjunction with other City resources will be used to continue a code enforcement position to specifically address issues in the Balboa Village area. h. Capital Improvements: CDBG funds for the FY 2002 -03 year will be used for construction for the Balboa Village Pedestrian and Streetscape Improvement Plan, which includes improvements and street widening to Balboa Boulevard, Pier Plaza, and the Lot A connecting access to Main Street. i. Section 108 Loan: CDBG funds for the FY 2002 -03 year will be used for repayment of the recently approved Section 108 Loan. The loan is a planned funding source for the Balboa Village Pedestrian and Streetscape Improvement Plan. Public Facility Project Amount Funded FY2001 -2002 Amount Recommended Code Enforcement $25,000 $25,000 Capital Improvements $311,700 $140,500 Section 108 Loan Repayment $0 $153,000 Total Public Facility Projects $336,700 $318,500 This section also addresses the City's objectives for preserving and increasing housing affordability, the City's comprehensive homelessness strategy, actions to further fair housing and the City's anti - poverty strategy. FY 2002 -2003 CDBG One -Year Action Plan April 9, 2002 Page 4 Tables and Certifications The Action Plan includes a formally executed Application Form (Form SF -424) for the CDBG program and CDBG certifications. Table 1, FY 2002 -2003 Proposed Projects, in the Action Plan contains a detailed description of each activity proposed by City staff. It provides an estimate of accomplishments for each activity and also indicates the proposed budget for each item. This table can be seen in the Action Plan, included as Exhibit A in this report. Submitted by: Prepared by: PATRICK J. ALFORD DANIEL TRIMBLE Senior Planner Associate Planner F: I USEP SIPLNISharedlCDBGIFy2001- 20021Social Service NofaICC Report -Action Plan 4- 09- 02vl.doc FY 2002 -2003 CDBG One -Year Action Plan April 9, 2002 Page 5 City of Newport Beach 2002 -2003 Consolidated Plan One -Year Action Plan Draft April 2002 r"I LLDM Associates-Inc. City of Newport Beach • 3300 Newport Boulevard • Newport Beach, CA 92663 I EXECUTIVE TRANSMITTAL LETTER I April 15, 2002 Mr. William Barth, Director Community Planning and Development Department United States Department of Housing and Urban Development 611 West Sixth Street, Suite 800 Los Angeles, CA 90017 Dear Mr. Barth: On behalf of the City of Newport Beach, I am pleased to submit the 2002 -2003 Consolidated Plan One -Year Action Plan. Through development of the One -Year Action Plan, the City of Newport Beach has evaluated the housing and community development needs and corresponding priorities established in the 2000 -05 Consolidated Plan and has prepared a strategy to meet those needs. This evaluation shall enable the City to fully capitalize on current funding sources as well as future opportunities and financing resources, as they become available. To that end, the City will be aggressively implementing the projects, programs and activities contained within this One -Year Action Plan. With your help and partnership, we can improve our lower- income neighborhood and make all of Newport Beach an outstanding place to live and work. We look forward to your consideration of our 2002 -2003 One -Year Action Plan. Should you require additional information or clarification regarding this plan submittal, please contact Dan Trimble at (949) 644 -3230. Sincerely, Homer Bludau City Manager Cc: Lee - Samaniego, May, HUD Los Angeles Office I II. SF-424 CDBG APPLICATION 9 TABLE OF CONTENTS I. Executive Transmittal Letter ......................................... ..............................2 II. SF-424 - CDBG Application .......................................... ..............................4 2002 -2003 Consolidated Plan One -Year Action Plan .................. ..............................1 A. Activities to be Undertaken ................................................. ..............................1 B. Housing and Community Development Resources ............ ............................... 3 C. Relation to Strategic Plan ................................................... ..............................5 D. Monitoring ........................................................................... ..............................8 E. Homelessness .................................................................... ..............................9 F. Meeting Underserved Needs ............................................. ............................... 9 G. Fostering and Maintaining Affordable Housing ................... ............................... 9 H. Removing Barriers to Affordable Housing .......................... .............................10 1. Lead -Based Paint Hazard Reduction ................................. .............................10 J. Institutional Structure ....................................................... ............................... 10 K. Activities to Further Fair Housing ....................................... .............................10 L. Anti - Poverty Strategy ......................................................... .............................11 M. Coordination ...................................................................... .............................11 N. Public Housing ................................................................... .............................11 AppendixA ......................................................................... .............................12 Summary of Citizen Participation Process .................................. .............................13 AppendixB ......................................................................... .............................15 CERTIFICATIONS ...................................................................... .............................16 Specific CDBG Certifications ...................................................... .............................18 AppendixC ......................................................................... .............................20 Listing of Proposed Project ............................................. .............................20 l0 2002 -2003 Consolidated Plan One -Year Action Plan The Action Plan delineates Newport Beach's plan for the use of its FY 2002/2003 Community Development Block Grant (CDBG) funds. It describes the resources available for program implementation; activities to be undertaken during FY 200212003; a monitoring plan; the City's homeless and anti - poverty strategies; and coordination efforts that have or will be undertaken to implement the Action Plan. This Action Plan incorporates recommendations for funding by the Newport Beach Screening Committee on public services and capital outlay projects. Final funding decisions were made in a public hearing before the City Council held on April 9, 2002. A. Activities to be Undertaken 1. Summary of Activities Table I summarizes the proposed Public Service and Capital Outlay projects for the use of CDBG funds in FY 2002/2003. Table I CDBG Funding for 200212003 Pro aram Year APPLICANT PROJECT DESCRIPTION FUNDING LEVEL FISH (Friends in Service to Humanity) Homeless Emergency Assistance $18,500 SPIN (Serving People in Need) Substance Abuse Rehabilitation Program (S.A.R.P) $10,000 Orange Coast Interfaith Shelter Temporary Shelter $10,000 WISE Place (O.C. YMCA) Tem ovary Shelter $5,000 South County Senior Services Mobile Meals $10,000 FISH (Friends in Service to Humanity) Mobile Meals $20,000 SUBTOTAL — PUBLIC SERVICES $73,500 City of Newport Beach, Code Enforcement Department Code Enforcement Officer — Balboa Peninsula $25,000 City of Newport Beach, Public Works Department Balboa Peninsula Neighborhood Revitalization Project $140,500 City of Newport Beach, Planning Department Section 108 Loan Repayment $153,000 SUBTOTAL — CAPITAL IMPROVEMENTS $318,500 City of Newport Beach Program Administration Implementation of the CDBG Program (< 20% of total program award) $83,600 Fair Housing Council of Orange County Fair Housing Services $14,400 SUBTOTAL — ADMINISTRATION $98,000 TOTAL CDBG 2000101 ALLOCATION $490,000 1 of 21 The following provides a more detailed description of the projects to be funded during the fiscal year 2002/03. FISH (Friends in Service to Humanity) is a Newport Beach based social service agency that assists clients by subsidizing rent payments for "at risk" households and persons facing eviction and prevents them from becoming homeless. FISH also provides payments for temporary shelter at motels for homeless households and persons. SPIN (Serving People in Need) is a Newport Beach based social service agency that assists clients by providing substance abuse rehabilitation services. Services include counseling services, job referrals, and room and board in a recovery home. Orange Coast Interfaith Shelter is located in Costa Mesa near the City of Newport Beach boundary. Homeless households and persons from Newport Beach in need of temporary shelter (up to two months) are referred to this shelter. WISE PLACE (formerly YMCA Hotel for Women) is located in Santa Ana and has a countywide program, which provides temporary shelter (up to 60 days) for Newport Beach battered and homeless women and children. Newport Beach women in need of shelter are referred to this agency for assistance. South County Senior Services is an Orange County based social service agency that assists homebound seniors by providing nutritious meals. FISH (Friends in Service to Humanity) is a Newport Beach based social service agency that assists homebound seniors by providing nutritious meals. Fair Housing Council of Orange County is an Orange County based organization that provides tenant and landlord counseling to provide fair housing opportunities for Newport Beach residents, including many low- income and elderly residents. Code Enforcement Officer: To provide funds for code enforcement activities within the Balboa Peninsula Revitalization Area. Sect /on 108 Loan Payment: Required payment for leveraging CDBG funds. The Balboa Peninsula Project Area consists of the following projects: • Balboa Village Pedestrian and Streetscape Plan • Street Improvements to Balboa Blvd., & Pier Parking Lot, Pier Plaza and Lot A connecting access to Main Street Program Administration: Program administration funds are required for the planning, implementation and administration of the CDBG program. 0 2. Geographic Distribution It is the City's intent to fund activities in areas most directly impacted by the needs of low and moderate- income residents and those with special needs. Projects either fall within a designated low to moderate- income census tract or serve a low to moderate- income clientele. B. Housing and Community Development Resources Available Resources The City of Newport Beach has access to a variety of federal, state, and local resources to achieve its housing and community development priorities. Specific funding sources will be utilized based on the opportunities and constraints of each particular project or program. Table II on the following page summarizes the major sources of funding available to carry out housing and community development activities in Newport Beach. 1� Table II Public and Private Resources Available for Housing and Communitv Development Activities PROGRAM NAME DESCRIPTION ELIGIBLE ACTIVITIES 1A. FEDERAL PROGRAMS — FORMULAIENTITLEMENTS Community Development Block Grants awarded to the City on a formula basis for • Acquisition Grant (CDBG) housing and community development activities. • Rehabilitation • Home Buyer Assistance • Economic Development • Homeless Assistance • Public Services 18. FEDERAL PROGRAMS — COMPETITIVE Section 8 Rental Assistance Rental assistance payments to owners of private market • Rental Assistance Program rate units on behalf of very low- income tenants. Section 202 Grants to non -profit developers of supportive housing for • Acquisition the elderly. • Rehabilitation New Construction Section 203(k) Provides a single long -tens, tow interest loan at a fixed • Acquisition — dwellings and land rate to finance both acquisition and rehabilitation of a Rehabilitation one to four unit property. • Relocation of unit to another site on new foundation on the mortgage property • Refinance existing indebtedness Section 811 Grants to non-profit developers of supportive housing for • Acquisition persons with disabilities, including group homes, • Rehabilitation independent living facilities and intermediate care • New Construction facilities. • Rental Assistance HOPE VI Acquisition, Rehab and resale to low /moderate income • Home Buyer Assistance buyers. Section 108 Loan Provides loan guarantee to CDBG entitlement • Acquisition jurisdictions for pursuing large capital Improvements or • Rehabilitation other projects. The Jurisdictions must pledge it to future • Home Buyer Assistance CDBG allocations for repayment of the loan. Maximum • Economic Development loan amount can be up to five times the entitlement . Homeless Assistance jurisdiction" most recent approved annual allocation. Public Services Maximum loan term is 20 years. Mortgage Credit Certificates Income tax credits available to first time homebuyers for . Home Buyer Assistance (MCC) the purchase of new or existing single -family homes. Local agencies make certificates available. Low Income Housing Tax Tax credits are available to individuals and corporations • New Construction Credit (LIHTC) that invest in low- income rental housing. The tax credits . Acquisition provide developers with equity for the project. • Rehabilitation Shelter Plus Care Program Grants for rental assistance that are offered with support • Rental Assistance services to homeless individuals with disabilities. • Homeless Assistance • Support Services Supportive Housing Program Grants for development of supportive housing and • Transitional Housing (SHP) support services to assist homeless persons in the • Permanent Housing for Disabled transition from homelessness. Supportive Housing • Support Services • Safe Havens Job Training Partnership Act Grants to provide job - training skills to adults. • Job Training Skills (JTPA) 4 q Table II (continued) Public and Private Resources Available for Housing and Community Development Activities PROGRAM NAME I DESCRIPTION ELIGIBLE ACTIVITIES 2. STATE PROGRAMS Proposition 1A Proposition 1A includes provisions to establish a down • Down Payment Assistance payment assistance program and a rental assistance • Rental Assistance program based on school fees collected from affordable housing projects. Emergency Sheller Program Grants awarded to non -profit organizations for shelter . Support Services (ESG) support services. California Housing Finance Provides below market rate financing through the . New Constriction Agency (CHFA) Multifamily issuance of tax -exempt bonds to builders and Rehabilitation Housing Rental Program. developers of multifamily and elderly rental housing. . Acquisition (20 —150 units) California Housing Finance CHFA sells tax - exempt bonds to make below market • Home Buyer Assistance Agency (CHFA) Home interest rate loans to first time homebuyers. Program Program Mortgage Purchase Program operates through participating lenders who originate loans for CHFA purchase. California State Department of Low interest loans multifamily rehabilitation. • Multifamily rehabilitation Housing and Community Development 3. LOCAL PROGRAMS In lieu fee for, affordable Affordable Housing. • New Construction housing opportunities Acquisition associated with market rate • Rent Subsidy housing development. Density bonuses, waiver of Affordable housing. • New Construction fees and relaxation of development standards. 4. PRIVATE RESOURCESIFINANCING PROGRAMS Developer equity, private Leverage CDBG and local housing funds to develop • New construction financing. affordable housing. 1 • Acquisition • Rehabilitation C. Relation to Strategic Plan The City's FY 2000 -2005 Consolidated Plan identifies priority housing and community development activities to be pursued in order to provide decent and affordable housing, as well as needed community services and facilities for its residents. For FY 2002/2003, the City will focus its CDBG resources and efforts On several programs, as described in the Listing of Proposed Projects. As a means of showing the relationship of these proposed activities with the priority needs identified in the Consolidated Plan, the following summarizes the City's Consolidated Plan Priorities and identifies those proposed 2002/2003 CDBG activities, which address these needs. As identified in the 2000 -2005 Consolidated Plan, the City of Newport Beach established three (3) high priorities: Homeless Persons and Others with Special Needs, Low Income Elderly, Public Facility Improvements — Balboa Peninsula Revitalization Area. In establishing goals to meet the high priority need of the Homeless and Other with Special Needs, and the Low- Income Elderly, the City established the following four (4) additional priorities: Priority 1): Preserve the availability of housing for persons and families in need of emergency shelter and transitional housing, 15 Priority 2): Assist homeless persons and to prevent those "at risk" of becoming homeless from becoming homeless, Priority 3): Assist battered and homeless women and children and Priority 4): Provide assistance to the elderly. Proposed 2002/2003 Homeless Persons and Other Persons with Special Needs Implementing Programs: FISH (Friends in Service to Humanity) Description: To provide funding to FISH (Friends in Service to Humanity), a Newport Beach based social service agency, that assists clients by subsidizing rent payments for "at risk" households and persons facing eviction and prevents them from becoming homeless. Recommended Amount: $15,000 Proposed Accomplishment: Provide domestic violence services to 135 families in need of temporary shelter. SPIN (Serving People in Neeo7 Description: SPIN is a Newport Beach based social service agency that assists clients by providing substance abuse rehabilitation services. Services include counseling, job referrals, and room and board in a recovery home. Recommended Amount: $9,500 Proposed Accomplishment. Provide counseling services to 10 people. Orange Coast Interfaith Shelter Description: Orange Coast Interfaith Shelter is located in Costa Mesa near the City of Newport Beach's boundary. Homeless households and persons from Newport Beach in need of temporary shelter (up to two months) are referred to this shelter. Recommended Amount: $10,000 Proposed Accomplishment: Provide temporary shelter to 20 households. WISE PLACE (formerly YMCA Hotel for Women) Description: WISE PLACE is located in Santa Ana which provides temporary shelter (up to 60 days) homeless women and children. Newport Beach referred to this agency for assistance. Recommended Amount: $4,000 and has a countywide program, for Newport Beach battered and women in need of shelter are Proposed Accomplishment: Provide 3 households with temporary shelter assistance. ((° Proposed 2002/2003 Low Income Elderly Implementing Programs: South County Senior Services Description: South County Senior Services is an Orange County based social service agency that assists homebound seniors by providing nutritious meals. Recommended Amount: $15,000 Proposed Accomplishment: Provide 115 meals to Newport Beach seniors. FISH (Friends in Service to Humanity) Description: FISH is a Newport Beach based social service agency that assists homebound seniors by providing nutritious meals. Recommended Amount: $20,000 Proposed Accomplishment: Provide 75 meals to Newport Beach seniors. Fair Housing Council of Orange County Description: The Fair Housing Council of Orange County is an Orange County based organization that provides tenant and landlord counseling to provide fair housing opportunities for Newport Beach residents, including many low- income elderly residents. Recommended Amount: $14,000 Proposed Accomplishment: Provide tenant and landlord counseling to Newport Beach residents. As identified in the 2000 -2005 Consolidated Plan, the City of Newport Beach has placed a high priority on implementing Public Facility Improvements to the Balboa Peninsula Revitalization Area. Proposed 2002/2003 Public Facility Improvements Implementing Programs: Code Enforcement Department, Code Enforcement Officer Description: To provide funds for code enforcement activities within the Balboa Peninsula Revitalization Area. Recommended Amount: $25,000 Proposed Accomplishment: Correction of code violations within this neighborhood. Public Works Department, Balboa Peninsula Revitalization Project Description: To provide funds to continue with ongoing efforts to revitalize this neighborhood. Recommended Amount: $140,500 Proposed Accomplishment: To complete street, parking lot and fagade improvements. II Planning Department, Section 108 Loan Repayment Description: Required payment for leveraging CDBG funds. Recommended Amount: $153,000 Proposed Accomplishment: Completion of Section 108 Loan Project. To ensure the effective use of limited CDBG resources, the City needs to understand its housing and community development needs, and monitor progress in program performance. Preparation of the Five -year Consolidated Plan, annual updates and performance reports in compliance with federal law allows the City to address its changing affordable housing and community development needs. CDBG funds in an amount not to exceed 20% of the City's annual allocation may be used to fund program administration. Proposed 2002/2003 CDBG Administration Implementing Programs: CDBG Administration Description: Funds used to administer the City CDBG program. Recommended Amount: $84,000 Proposed Accomplishment: Administration of the City's CDBG funding, timely submittal of the One -Year Action Plan and CAPER and monthly oversight and review of all CDBG expenditures. D. Monitoring The City of Newport Beach has recently hired a consultant to assist with the monitoring, implementation and administration of the CDBG program. The following procedures have been established for monitoring activities undertaken with funds received from the U.S. Department of Housing and Urban Development (HUD): 1. An in -house review of progress reports and expenditures. 2. On -site visits of subrecipients to ensure compliance with federal regulations. 3. Implementation of a standard monitoring program to include a review of all subrecipients and their documented compliance with federal regulations. Technical assistance is provided where necessary. 4. Project and financial data on CDBG- funded activities will be maintained using the HUD software -- IDIS (Integrated Disbursement Information System). Use of this system will allow HUD staff easy access to local data for review and progress evaluation. 5. Timely submission of the Consolidated Annual Performance and Evaluation Report (CAPER). 1Y E. Homelessness The County of Orange has formed a countywide committee (Orange County Steering Committee), which includes Orange County jurisdictions, non - profit organizations, and local groups and charities to address the needs of homeless, "at -risk" homeless and to identify gaps in the Continuum of Care process. The City of Newport Beach actively participates in the countywide Continuum of Care Steering Committee and has developed and adopted strategies for the homeless. This strategy is comprised of activities to address the following priorities: • emergency and transitional housing • persons at risk of becoming homeless • persons in transition from homelessness to permanent housing • job creation for persons of low and moderate income In Program Year 2000 -01, Newport Beach allocated significant CDBG funds for public service programs to address the needs of the homeless. F. Meeting Underserved Needs According to the Consolidated Plan, one of the most undeserved needs in the City is affordable housing to families of extremely low, very-low and low income. The City has identified the lack of developable sites, high land costs and limited funding as obstacles to affordable housing. The City has adopted policies to overcome some of these obstacles and to encourage affordable housing production by providing density bonuses and fee waivers. In addition, the City continues to fund organizations that assist the homeless, "at -risk" homeless and the elderly. G. Fostering and Maintaining Affordable Housing As stated above, the City has identified the lack of developable sites, high land costs and limited funding as obstacles to producing affordable housing. The City continues to support the Orange County Housing Authority to maintain and increase the level of available Section 8 Certificates (95) to be utilized in the City. In addition, the City continues to monitor and enforce affordability covenants on four affordable housing projects (totaling 130 units) developed with CDBG funds and a 100 unit (202 HUD funded) senior housing project. In addition, there is over $2,500,000 in non - federal funds available for the development and /or preservation of affordable housing units, which was negotiated by the City as part of market rate residential development. The City is working with potential developers of affordable housing for seniors and families, and these funds may be used to make such projects feasible. i H. Removing Barriers to Affordable Housing The City will continue to implement the following procedures and programs: Monitor all regulations, ordinances, departmental processing procedures, and residential development fees to ensure these requirements do not excessively constrain affordable residential development. • Continue to offer density bonus incentives for the development of affordable housing pursuant to state density bonus requirements and the City's General Plan Housing Element. Continue to contract with the Fair Housing Council of Orange County to provide tenant and landlord counseling to provide fair housing opportunities for Newport Beach residents. I. Lead -Based Paint Hazard Reduction Prior to the use of federal funds, all existing units are inspected for lead -based paint hazards. Units identified as having lead -based paint hazards are treated so as to abate the lead -based paint hazards in accordance with federal requirements. J. Institutional Structure The City of Newport Beach will carry out this Consolidated Plan through various organizations. Homeless and other special needs persons and low- income elderly residents will be served through social service agencies funded through CDBG grant funds. Various City of Newport Beach departments will work together to achieve the goals of this Consolidated Plan: Planning Department completes the grant administration, a Code Enforcement Officer conducts code enforcement activities on Balboa Peninsula, and Accounting staff assists with administration. The Public Works Department oversees public improvement contracts and construction. In addition, the City contracts with private industry construction contractors, non - profit organizations and social service providers to provide community, housing and social service programs and projects. K. Activities to Further Fair Housing The City of Newport Beach provides fair housing education, counseling, housing dispute resolution services and enforcement working with tenants, landlords, homeowners and home seekers through the Fair Housing Council of Orange County. Over 70% of households served by the Fair Housing Council have incomes below 80% of the area median. The City will continue to fund the Fair Housing Council of Orange County. 10 �a L. Anti - Poverty Strategy The City has implemented a number of programs to address the needs of the homeless, the "at -risk° homeless, special needs population, and the elderly. The City has given a high priority to addressing these needs and continues to fund organizations that provide services to the homeless, special needs population and the elderly. As part of the City's strategy, activities are underway to revitalize /redevelop the Balboa Peninsula with the goal of improving the commercial environment and creating additional jobs for the community. Additionally, the City continues to look for opportunities to create affordable housing through density bonuses and in lieu fees collected. M. Coordination The City will coordinate and implement its strategies through the following actions: Activity 1: Target programs to those areas and populations exhibiting the greatest need as indicated in the Consolidated Plan. Activity 2: Encourage public service providers to coordinate and work together to maximize services and limit duplication of efforts. Activity 3: Coordinate projects and programs within the City to maximize efficiency. Activity 4. Work closely with the CDBG Screening Committee to determine the best expenditures of public services money to meet the needs outlined in the 2000 -05 Consolidated Plan. Activity 5. Coordinate the expenditure of other federal and non - federal funds to maximize the efficiency of program delivery. N. Public Housing The City of Newport Beach does not have any public housing units. The Orange County Housing Authority administers the Section 8 CertificateNoucher Program for the City. The Housing Authority currently administers 95 vouchers and certificates Citywide. 11 aI Summary of Citizen Participation Process On March 26, 2002 the City Council held a public hearing to provide interested citizens with the opportunity to express their views concerning the use of CDBG funds for Fiscal Year 2002/03. The hearing was held in compliance with the City's Citizen Participation Plan and CDBG implementing regulation 24 CFR 92.105. The comments received during the public hearing have been incorporated into the public review draft of the 2002 -03 Consolidated Plan One -Year Action Plan. The mandated 30 -day public review of the Draft Action Plan began on March 8, 2002 and ended April 8, 2002. The City advertised in the Daily Pilot for the availability of the Draft 2002/2003 Action Plan for public review and comment. Copies of the draft Action Plan were made available for review at the Newport Beach Library, the City's Clerk's Office and the Planning Department of the City. No comment on the Action Plan was received during the 30 -day public review. On April 9th, the Newport Beach City Council conducted a public hearing to receive public comments on the Draft Plan, including the funding recommendations. Public comments were received from the following organizations and or individuals David J. Levy of the Fair Housing Council of Orange County indicated that he was grateful for the support the City had provided his organization in the past and hoped that the Council would continue funding his organization. Jean Wegener of Serving People in Need (SPIN) also indicated that the organization was thankful for the funding the City has provided in the past and looked forward to working with the City in the future. Greg Compton of FISH - Harbor Area asked the City Council for continued support of his program that provides much needed assistance to Newport Beach residents who are at risk of becoming homeless. 13 J PUBLIC NOTICE CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT IS INVITING PUBLIC REVIEW AND COMMENT ON A DRAFT 2002 ACTION PLAN PLUS THE 200212003 PROPOSED EXPENDITURE OF COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) FUNDS Notice is hereby given to the general public that the City of Newport Beach has prepared a Draft 2002 Action Plan in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD). Preparation of a Consolidated Plan is required whenever funding is received under any of the following programs: Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), Housing for People with AIDS (HOPWA), and Emergency Shelter Grant (ESG). The City of Newport Beach receives funding under the CDBG. The Purpose of the Plan is to 1) assess the housing and community development needs of low- and moderate- income residents of Newport Beach, 2) develop and describe a strategy to meet those needs, 3) describe the City's programs and projects, and the funding sources to meet those for the 2002 -2003 Program Year, and 4) describe the geographic distribution of resources and activities. The funding sources for Consolidated Plan projects and programs include CDBG, Section 108, HOME, Section 8, and Housing Set Aside. The goal of programs and projects to meet the needs of low- and moderate - income residents are summarized as follows: 1) preservation of the City's existing affordable housing stock through rehabilitation, 2) assist low -to- moderate income households secure affordable housing through rental and home ownership through a variety of programs, 3) provide assistance and housing options through the public service programs 4) continue to further fair housing, and 5) continue to develop and improve economic opportunity. The City anticipates receiving an annual allocation of CDBG funds in the amount of $490,000. In compliance with the City's approved Citizen Participation Plan and the CDBG implementing regulation 24 CFR 92.105, this notice is given to invite public review and comment of the City of Newport Beach's Draft 2002 Action Plan. This document can be reviewed at the following locations: • City of Newport Beach, City Clerks Office • City of Newport Beach, Planning Department • City of Newport Beach, Public Library Individuals wishing to express their views concerning the above - referenced documents and proposed activities may provide oral or written comments to the City on or before 4:30 p.m. on April 9, 2002 to the City of Newport Beach, Community and Economic Development Department, 3300 Newport Beach Blvd., Newport Beach, CA 92658, or phone (949) 644- 3230. The City Council will hold a public hearing on April 9, 2002, at 7:00 p.m. at City Council Chambers, 3300 Newport Beach Blvd., Newport Beach, CA to hear public comments and review these documents and the proposed CDBG expenditures. 14 a CERTIFICATIONS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti - displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential anti - displacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug -free workplace by: Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition. 2. Establishing an ongoing drug -free awareness program to inform employees about: (a) The dangers of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug -free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1. 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will: (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction. 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a 16 a 6 central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant. 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted: (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency. 7. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Anti - Lobbying — To the best of the jurisdiction's knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, 'Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph 1 and 2 of this anti - lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with Plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Homer Bludau Date City Manager 17'� Specific CDBG Certifications The Entitlement Community certifies that Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan — Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long -term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate- income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds — It has complied with the following criteria Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities that benefit low and moderate - income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); 2. Overall Benefit. The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s)2001 2002, 2003 (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; 3. Special Assessments. It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate - income (not low - income) families, an assessment or charge may be made against the property for public 18 improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Excessive Force — It has adopted and is enforcing: A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non - violent civil rights demonstrations within its jurisdiction. Compliance with Anti - discrimination Laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601- 3619), and implementing regulations. Lead -Based Paint — Its notification, inspection, testing and abatement procedures concerning lead -based paint will comply with the requirements of 24 CFR §570.608. Compliance with Laws -- It will comply with applicable laws. Homer Bludau City Manager Date 19 q1 Appendix C Listing of Proposed Projects 20 31)