HomeMy WebLinkAbout21 - FY 2001-02 CDBG Consolidated Annual Performance & Evaluation Report - CAPERCITY OF NEWPORT BEACH -
O� ?EW�'gr COMMUNITY AND ECONOMIC Hearing Date: September 24, 2002
,$DEVELOPMENT
PLANNING DEPARTMENT Agenda Item No.: 21
�= 3300 NEWPORT BOULEVARD Staff Person: Daniel R. Trimble
NEWPORT BEACH, CA 92658 (949) 644 -3230
(949) 644 -3200; FAX (949) 644 -3229
REPORT TO THE MAYOR AND CITY COUNCIL
SUBJECT: FY 2001 -2002 Community Development Block Grant Consolidated
Annual Performance and Evaluation Report (CAPER).
SUMMARY: As part of the annual Community Development Block Grant
administration process, the City must submit a CAPER for FY 2001-
2002.
SUGGESTED
ACTION: 1., Conduct public hearing, and
2. Approve the FY 2001 -2002 CAPER and direct staff to submit the
document to all appropriate parties.
Background
On April 11, 2001, the City Council approved a 2000 -2005 Consolidated Plan Document (CPD)
and a One -Year Action Plan. A One -Year Action Plan and CAPER are required for each fiscal
year within the Five -Year 2000 -2005 CPD. The CPD is a planning document that contains an
assessment of the housing and community development needs of the community and a five -year
strategy with a one year action plan to address identified needs.
During Fiscal Year 2001 -2002, the second year of the 2000 -2005 CPD, the City received $518,000
in funding. The City is currently implementing the FY 2002 -2003 One -Year Action Plan, the third
year of the FY 2000 -2005 CPD. Additionally, the Department of Housing and Urban Development
(HUD) has sent notification that the City's entitlement amount for FY 2003 -2004 will be
approximately $426,000. Development of the One -Year Action Plan for that year will begin in
January.
Public Notice and Review
The availability for public review of and comment on the Draft FY 2001 -2002 CAPER was
advertised in the Daily Pilot August 17, 2002.
Overview of Federal Eligibility Requirements and Criteria
There are a wide variety of eligible activities under the CDBG program. The following activities
were approved in the City's Five Year CPD: land acquisition, clearance, and disposition; the
acquisition, development or improvement of public services and facilities in low- income areas;
removal of architectural barriers; public /social services; relocation assistance; commercial property
rehabilitation;job creation and economic development.
CDBG program statutes establish three basic goals: 1) Provide decent housing; 2) Provide a
suitable living environment; and 3) Expand economic opportunities. Activities assisted with
CDBG funds must also accomplish at least one of the three national objectives of the program: 1)
Benefitinglow- and moderate- income persons; 2) Preventing slums and blight; or 3) Respondingto
urgent health and safety needs.
HUD regulations also require that cities spend at least 70% of their program funds to principally
benefit low- and moderate- (L/M) income persons. If an activity does not benefit L/M income
persons, it must meet specific HUD standards to qualify under one of the other national objectives.
Further details regarding program criteria and eligible activities are provided in Attachment 1.
Consolidated Annual Performance and Evaluation Report, 2001 -2002
HUD regulations also require that citizens have an opportunity to review the CAPER (Attachment
2), which measures the City's performance in relation to anticipated goals as set forth in the One
Year Action Plan. The City must make the CAPER available to the public for review prior to
receiving citizen comment, which is tentatively scheduled for public hearing on September 24,
2002. The CAPER shows that FY 2001 -2002 funds were spent in accordance with the allocations
made in the approved CPD, as summarized below. Work on Balboa Peninsula Revitalization
activities began in FY 1997 -98. Funding for this activity has been utilized during every fiscal year
since the 1997 -98 Fiscal Year.
Category
% of FY 2001-
FY 2001 -2002
Expenditures
2002 BudEet
Public Service Activities
12%
$62,121.99
Capital Improvement Projects
62%
$320,441.12
Program Administration
20%
$103,600.00
Total
94%
$486,163.11
Newport Beach Priorities
For the 2001 -2002 program year, Newport Beach has focused its CDBG program on economic
revitalization of the Balboa Peninsula. Revitalization efforts funded by 2001 -2002 CDBG funds
include revitalizationof public facilities and infrastructure in the Balboa Village area and additional
code enforcement.
In additionto economic development activities, 2001 -2002 funds supportedpublic service activities
with the maximum 15% permitted by HUD. This component of Newport Beach's CDBG program
is expected to continue at approximately the same level.
Page 2
Conclusion
This action is intended to satisfy HUD regulations on the submittal of the CAPER and close out the
administration of the FY 2001 -2002 grant. Administration of the FY 2002 -2003 grant began on
July 1, 2002. The FY 2003 -2004 application and public participation process for the One -Year
Action Plan will get underway in January.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
Prepared by:
DANIEL R. TRIMBLE
Associate Planner
Attachment 1: S ary of CDBG Program Criteria and Eligible Activities
Attachment 2: Consolidated Annual Performance and Evaluation Report (CAPER)
Page 3
Attachment 1
Summary of CDBG Program Criteria and Eligible Activities
A. NATIONAL OBJECTIVES:
Summarized below are the CDBG program criteria under the three national objectives of
benefiting low- and moderate- income persons, preventingslums and blight, and responding
to urgent health and safety needs.
1. Benefiting Low- and Moderate- Income Persons
Low- and moderate -(L/M) income persons are defined as persons, households or families
earning less than 80% of the HUD area median income adjusted by the number of persons.
Activities that benefit L/M income persons are grouped into four categories: l) Area benefit
activities; 2) Limited clientele activities; 3) Housing activities; and 4) Job creation or
retention activities.
Area Benefit Activities: A qualifying area benefit activity meets the identified needs of L/M
income persons residing in an area where at least 51% of the residents are L/M income
persons. For cities such as Newport Beach with fewer than 25% of its populated census
block groups containing 51% L/M income persons, the regulations allow "exception
criteria" to be used. HUD defines an "exception criteria area" as any residential area where
the proportion of L/M income persons falls within the top 25% of all residential areas of the
City. For Newport Beach, there are 20 block groups containing 29% or more L/M income
persons that qualify under the exception criteria. These 20 L/M income block groups are
located in 8 of the City's 23 census tracts.
Even though an activity occurs within an exception criteria area the activity may not
necessarily qualify as benefiting L/M income persons. In order to qualify as benefiting L/M
income persons, the activity must be located in an L/M income area that is predominately
residential and the City must demonstrate the benefit to L/M income persons.
Improvements to structures or public facilities that do not principally benefit L/M income
persons will not qualify, even though the improvement occurs in an exception criteria area.
For cities that are entirely or predominately comprised of L/M income census tracts and/or
block groups, it is assumed that activities occurring within those areas benefit L/M income
persons. For commercial districts located within eligible residential areas, activities to
improve commercial properties must show a benefit to L/M income persons.
Limited Clientele Activities: A limited clientele activity benefits a specific group of people,
at least 51% of who are L/M income persons. Generally, it is a "presumed" L/M income
benefit if the activity assists groups known to be more than 51% of L/M income persons.
HUD defines these groups as the handicapped, elderly persons, battered spouses, abused
women, homeless, illiterate persons, and migrant farm workers. If the clientele is not from
a "presumed" L/M income group, documentation must be provided or family size and
income to establish that at least 51 % are L/M income persons. Recent regulatory changes
Page 4
M
have added microenterprises (business employing 5 or fewer persons) and job training
placement to the eligible list of limited clientele activities when it is demonstrated that the
activity benefits L/M income persons and meets other conditions.
Housing Activities: Housing activities that create new housing or improve existing
residential structures that will be occupied by L/M income persons, households and families
are in this category.
Job Creation or Retention Activities: A job creation or retention activity creates or retains
permanent jobs, at least 51% of which are either taken by L/M income persons or are
considered available to L/M income persons. Only permanent jobs are eligible for
assistance. The business must use a hiring practice to assure over 51 % of the persons hired
meet L/M income criteria.
Funds can be used to assist a business in establishing or expanding its operation. To
conduct a job retention activity, the City must document that the jobs will actually be lost
without the CDBG assistance and that 51% of the jobs are held by L/M income persons.
However, any job creation or retention effort undertaken pursuant to a Neighborhood
Revitalization Strategy is considered to meet the standard CDBG L/M income area benefit
requirements and businesses that receive assistance are not required to track the specific
income of applicants they hire or interview, only account for the overall number of persons.
2. Preventing Slums and Blight
An activity that prevents slums and blight may be done on an area or spot basis. If it is
done on an area basis the activity must occur in an area that meets an adopted definition of a
slum, blighted, deteriorated or deteriorating area understate or local law. If an activity is
done on a spot basis, rather than in a defined area, the activity is limited to elimination of
conditions detrimental to public health and safety. A redevelopment area is considered to
meet the definition of slum and blight. Since the City does not have a redevelopment
agency, areas must be designated using a definition of slum, blight, and deteriorated or
deteriorating that is adopted in state or local law.
3. Urgent Health and Safety Need
An urgent health and safety activity responds to a conditionposing a serious and immediate
threat to the health and welfare of the community. The condition must be of recent origin
or recently become urgent. The City must be unable to finance the activity on its own and
other resources must not be available.
B. ELIGIBLE ACTIVITIES:
The following is a brief discussion of the activities eligible under CDBG regulations and
included in the City's five -year strategy.
1. Land Acquisition
Funds can be used to assist with the acquisition of land providing the activity ultimately
benefits L/M income persons or meets another national objective. The City has used
Page 5
CDBG funds in previous years to "write down" the cost of land for development or
redevelopment of properties with new housing units. Since 1985, the City has assisted
developers of five housing developments using CDBG funds, resulting in over 180 new
housing units.
2. Public Facilities and Improvements
Funds can be used to assist with the acquisition, construction, reconstruction or
rehabilitation of public improvements or facilities such as street improvements provided the
activity meets a national objective such as benefiting L/M income persons. The City has
used its CDBG funds in previous years to acquire a community center, remove architectural
barriers and assist public service organizations. In the next few years funds are budgeted
for improvements on Balboa Peninsula such as design of an entry statement, the Balboa
Boulevard beautification feasibility study, and the Newport/BalboaBoulevard "Mixmaster"
feasibility study. All these activities meet the national objective of benefiting L/M income
persons based on "area benefit ".
Public /Social Services
Up to 15% of the City's entitlement funds can be used to assist public and social service
agencies. These activities must address the national objective of benefiting L/M income
Humanity (FISH), Street People In Need (SPIN), Young Women's Christian Association
(YWCA), Orange Coast Interfaith Shelter (OCIS), South County Seniors (SCS) meet the
national objective of benefiting L/M income persons based on "limited clientele ".
4. Microenterprises
Funds may be used to assist L/M income owners to develop, establish, stabilize, expand or
generally support microenterprises. A "microenterprise "is a business employing 5 or fewer
persons. Microenterprise was recently added as an eligible activity. The City has not
funded any microenterprisesin prior years.
5. Commercial Rehabilitation
Funds can be offered in the form of grants, loans, and loan guarantees for fagade
improvements to commercial buildings provided the activity benefits L/M income persons;
the project is within a neighborhood revitalization area; or the area meets the criteria for
slum and blight. Buildings that contain businesses offering goods and services that are not
priced or accessible to L/M income persons are not eligible. The business community has
expresses interest in Commercial Rehabilitation activities such as a fagade improvement
program and sidewalk enhancement as part of the Balboa Peninsula Revitalization efforts.
6. Special Economic Development
Funds may be used to create or retain jobs for L/M income persons as part of an economic
development project. Only permanent jobs are eligible, and new jobs must betaken by or
considered available to L/M income persons. When creating jobs the business must use a
hiring practice that will ensure that over 51 % of the new positions are filled by L/M income
persons. Funds can be used to assist a business in establishing or expanding its operation.
Page 6
To conduct a job retention activity, the City must document that the jobs will actually be
lost without the CDBG assistance and that 51% of the jobs are held by L/M income
persons. The amount of assistance to a business must be proportionate to the number of
jobs being created or retained, up to a maximum of $35,000 per job. The City has not
specifically funded this activity but activities being funded under the category of Public
Facilities and Improvements will result in the creation of jobs available to L/M income
persons.
7. Activitiesby Community Based Development Organizations
A CBDO can be either a for -profit or non - profit association or corporation that has been in
operation for at least a year and is organized under the state or local law to engage in
community development activities within an identified geographic area of operation within
the City. At least 51 % of its governing body's membership must be L/M income residents
or other individuals representative of its geographic area of operation; it may not be an
agency or instrumentality of the City, and no more than one -third of the membership of its
governing body may be appointed by, or consist of, elected or other public officials or
employees. Funds may be used to carry out neighborhood revitalization, community
economic development, or energy conservation programs. Activities must also meet one of
the national objectives. The City is not aware of any organization within the community
that qualifies or could qualify under this category.
Page 7
CITY OF NEWPORT BEACH
`iLlFOT/ CONSOLIDATED ANNUAL
PERFOR IANCK AND
EVALUATION REPORT,
(CAPER).
DRAFT
JULY 1, 2001 - JUNE 309 2002
LDM
Associates -Inc.
TABLE OF CONTENTS
Section I Summary of Resources and Programmatic Accomplishments
A. Resources ..................................................... ..............................4
B. Accomplishments .......................................... ............................... 5
Section 11 Narratives — Status of Actions to Implement Overall Consolidated
Plan Strategy and to Address Various Federal Requirements
A.
Assessment of Strategic Plan Goals and Objectives ...................
8
B.
Affirmatively Furthering Fair Housing ............ .............................11
18
C.
Affordable Housing ........................................ .............................11
18
D.
Continuum of Care ........................................ .............................11
E.
Other Actions ................................................. .............................12
18
F.
Leveraging Resources .................................. .............................14
G.
Citizen Participation ....................................... .............................14
H.
Self - Evaluation .............................................. .............................16
Section III Specific Program Performance in Addressing the Priority Needs and
Objectives of the Consolidated Plan
A.
CDBG Program ............................................. .............................17
B.
Nature and Reasons for Change ................. ...............................
18
C.
Efforts in Implementing Planned Actions ..... ...............................
18
D.
Compliance with National Objectives ............ .............................18
E.
Displacement and Relocation Activities ....... ...............................
18
Section IV IDIS Reports
Section V Maps
2
CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT
FEDERAL FISCAL YEAR 2001 -2002
EXECUTIVE SUMMARY
As required by the United States Department of Housing and Urban Development (HUD),
the City of Newport Beach has prepared the Consolidated Annual Performance and
Evaluation Report (CAPER) for public review and comment prior to its submittal to HUD.
This document contains an assessment of the City's performance in meeting Fiscal Year
2001 -02 housing and community development goals as outlined in the previously adopted
Fiscal Year 2001 -2002 One Year Action Plan. Additionally, the CAPER discusses changes
the City anticipates making in the upcoming year as a result of the assessmentof FY 2001-
02 annual performance. To the greatest extent feasible, the data collection efforts required
by the CAPER reflects information for housing and community development projects that
occurred in the City's jurisdiction, even if the City was not the lead agency.
INTRODUCTION
The Consolidated Annual Performance and Evaluation Report for the City of Newport
Beach is divided into the following Sections:
Section I Summary of Resources and Programmatic Accomplishments
Section II Narratives — Status of Actions to Implement Overall Consolidated Plan
Strategy and to Address Various Federal Requirements
Section IIISpecific Program Performance in Addressing the Priority Needs and Objectives
of the Consolidated Plan
Section IV IDIS Reports
Section V Maps
SECTION I SUMMARY OF RESOURCES & PROGRAMMATIC
ACCOMPLISHMENTS
A. RESOURCES
The City of Newport Beach directly participates in only one federally funded program, the
Community Development Block Grant (CDBG) program. For Fiscal Year 2001 -02, the City
received $518,000 in CDBG funds. The following table illustrates the funding level of the
CDBG budget:
Table 1
2001102 CDBG Funding
Applicant
Project Description
Funding Request
FISH (Friends in Service to
Homeless Emergency Assistance
Humanity)
$17,700
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)
Temporary Shelter
$4,000
South County Senior Services
Mobile Meals
$16,000
FISH (Friends in Service to
Mobile Meals
Humanity)
$20,000
Subtotal:
$77,700
City of Newport Beach, Code
Code Enforcement Officer — Balboa
Enforcement Department
Peninsula
$25,000
City of Newport Beach, Public
Public Facilities and Improvements
Works Department
$311,700
Subtotal:
$336,700
Economic Development Division
Program Implementation
Implementation of the CDBG Program (<
20% of total program award)
$89,572
Fair Housing Council of Orange
Fair Housing Council — Tenant and
County
Landlord Counseling
$14,028
Subtotal:
$103,600
TOTAL CDBG 2001/02 Allocation
$518,000
B. PROGRAMMATIC ACCOMPLISHMENTS
HOUSING, HOMELESS & SPECIAL NEEDS ACCOMPLISHMENTS
As identified in the 2000 -2005 Consolidated Plan, the City of Newport Beach places a high
priority on meeting the needs of homeless families, those at risk of becoming homeless
and special needs populations. Four priorities were established:
Priority 1): Preserve the availability of housing for persons and families in need of
emergency shelter and transitional housing,
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.
Below, please find the 2001 -02 accomplishments based upon the established priorities.
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. 135 households
received subsidized rental assistance and /or emergency and temporary shelter.
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. 8 individuals
received substance abuse rehabilitation services assistance.
Orange Coast Interfaith Shelter is located in Costa Mesa nearthe 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. 77 Newport Beach households
received temporary 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. 1 Newport Beach homeless women and children
household received temporary shelter assistance.
FISH (Friends in Service to Humanity) is a Newport Beach based social service agency
that assists homebound seniors by providing nutritious meals. 76 Newport Beach
households received meal service through this program.
5
South County Senior Services is an Orange County based social service agency that
assists homebound seniors by providing nutritious meals. 156 Newport Beach households
received meal service through this program.
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. 395 households received
fair housing services.
The Orange County Housing Authority (OCHA) administers the Section 8 rental
certificate and rental voucher program for the city. The Section 8 rental program provides
rental assistance to very low- income families. 85 households received Section 8 rental
assistance.
150 UNIT SENIOR HOUSING PROJECT
The City has identified the site and developer for a 150 unit low- income senior housing
project. The City has identified Lower Bayview Landing as the site for an affordable
housing project for seniors, the special needs group identified as the highest priority in the
City's 1 -Year Action Plan. "The Related Companies" has been selected as the developer.
This project will bring The Irvine Company into compliance with the City's Housing Element
in relation to their recent development of market rate housing. All three parties have
worked on site plan, resolution of site geological issues and gap financing.
NONHOUSING AND COMMUNITY DEVELOPMENT NEEDS ACOMPLISHMENTS
It is the intent of the City to provide for the needs of "at risk" and homeless persons and low
and moderate - income persons and families in the area of job creation and development.
To createjobs to serve this population requires design modifications and improvements to
existing commercial districts to promote the revitalization of the area and neighborhood
economy. The five (5) priorities are as follows:
Priority 1): Alleviate physical and economic distress through the stimulation of
private investments and Community revitalization in areas with stagnating or
declining tax base,
Priority 2): Eliminate conditions, which are detrimental to health, safety, and public
welfare through the rehabilitation of neighborhood and community facilities,
Priority 3): Preserve the surrounding neighborhood and include the economic
empowerment of the lowerincome residents, forextremely low, very low and lower
and moderate income persons, households and families,
0
Priority 4): Provide incentives and direct assistance for commercial buildings
throughout the City within the limitations of available resources, to facilitate the
provision of neighborhood revitalization and economic empowerment for lower
income families, and
Priority 5): The elimination of slums and blight, the prevention of blighting influences
and the deterioration of property.
Below, please find the 2001 -02 accomplishments based upon the established priorities.
A Code Enforcement Officer was partially funded to provide assistance in the Balboa
Peninsula Neighborhood Revitalization area. $ 25,000 dollars were expended.
The Balboa Peninsula Project Area initiated the following projects and expended
$285,00 dollars:
• Balboa Village Pedestrian and Streetscape Plan
• Street Improvements to Balboa Blvd.
CDBG Administration - Provided $89,572 in CDBG funds for CDBG administration.
Funds were expended to pay reasonable costs associated with the overall management,
coordination, monitoring and evaluation consistent with local objectives in an effective and
timely manner. $14,028 was expended for tenant and landlord counseling services
provided by the Fair Housing Council of Orange County.
FA
SECTION II STATUS OF ACTIONS TAKEN TO IMPLEMENT THE OVERALL
CONSOLIDATED PLAN
A. ASSESSMENT OF FIVE -YEAR GOALS
In establishing five -year priorities, the City of Newport Beach has taken two concerns into
consideration: 1) those categories of lower and moderate income households most in need
of housing and community development assistance; and 2) which activities will best meet
the needs of those identified households.
The City of Newport Beach has made progress towards many of its short and long term
housing and community development goals over the past year. The 2001 -02 Action Plan
outlined a number of projects and programs that the City was successful in implementing.
These projects and programs were designed to increase the availability of affordable
housing, expand economicopportunities, providefor important infrastructure improvements
and expand the capabilities of public service programs and projects.
Table II below identifies priorities, goals and accomplishments.
Table II
Objectives & Accomplishments
PRIORITY
Agency
PROGRAM YEAR 2001.02
PROPOSED 2001/02
ACTUAL
ACCOMPLISHMENTS
ACCOMPLISHMENTS
Preserve the
Orange Coast Interfaith Shelter
To assist 19 households with
77 households were assisted
availability of
temporary shelter.
with temporary shelter.
housing for persons
& families in need of
emergency shelter
& transitional
housing.
FISH (Friends in Service to
To provide 223 households with
135 households received rental
Assist homeless
Humanity)
rental assistance and /or
assistance and /or emergency
persons and to
emergency shelter.
shelter.
prevent those "at
risk" of becoming
homeless from
SPIN (Serving People in Need)
To assist 1D individuals with
8 individuals received
becoming
substance abuse rehabilitation
assistance.
homeless.
services.
Orange County Housing
Maintain /increase Section 8
Authority
certificates in the City from 94.
85 Section 8 certificates were
provided to Newport Beach
households.
WISE PLACE (Former YMCA
Assist 3 families with temporary
Hotel for Women)
shelter and services.
1 family received shelter and
Assist battered and
services.
homeless women and
children.
-
South Count Senior Services
Y
125 meals provided to seniors.
156 meals were provided to
Provide assistance to
seniors.
the elderly.
FISH (Friends in Service to
65 meals provided to seniors.
Humanity)
76 meals were provided to
seniors.
Fair Housing Council of Orange
Provide Newport Beach
residents with tenant/landlord
4D5 Newport Beach residents
County
counseling, including many low-
received tenant/landlord
income elderly residents.
counseling.
PRIORITY
Agency
PROGRAM YEAR 2001 -02
PROPOSED 2001102
ACTUAL
ACCOMPLISHMENTS
ACCOMPLISHMENTS
Balboa Peninsula
Code Enforcement
No goals established.
Provide part time code
Neighborhood
the Consolidated Plan and
in compliance with HUD
enforcement services in the
Revitalization area
update the Action Plan and
regulations.
Balboa Peninsula
goals:
other components as
neighborhood.
1) Alleviate physical
necessary.
& economic
distress,
Public Works
Balboa Village Pedestrian &
Prepared Annual Action Plan for
Rehabilitate
Streetscape Plan.
In Progress, Phase 1
neighborhood and
construction completed.
community
facilities, 3)
Economic
public Works
Balboa Blvd., street
empowerment for
improvements.
extremely low to
In Progress, Phase t
moderate income
construction completed.
families, 4)
Commercial
rehabilitation and 5)
the elimination of
slums and blight.
Table II
Objectives & Accomplishments (Continued)
PRIORITY
AGENCY
PROGRAM YEAR 2001 -02
PROPOSED 2001/02
ACTUAL
ACCOMPLISHMENTS
ACCOMPLISHMENTS
Administration
Annually review application of
Administer the CDBG program
Administered the CDBG
the Consolidated Plan and
in compliance with HUD
program in accordance with
update the Action Plan and
regulations.
HUD regulations.
other components as
necessary.
Prepare Annual Action Plan for
Prepared Annual Action Plan for
FY 2001 -2002.
expenditure of FY 2001 -2002.
10
B. AFFIRMATIVELY FURTHERING FAIR HOUSING
The City continues to contract with the Fair Housing Council of Orange County to provide
fair housing opportunities for all persons. An analysis of Impediments to Fair Housing (AI)
was conducted on a regional area to include Newport Beach and found that by far, the vast
majority of housing transactions in the Orange County regional area do not involve a
violation of fair housing laws. There was, however, sufficient evidence that some violations
do occasionally occur, and when discovered, referred to the Fair Housing Council of
Orange County.
It is the desire and goal of the City to continue to work with the Fair Housing Council of
Orange County to eliminate impediments to fair housing throughout the City of Newport
Beach.
C. AFFORDABLE HOUSING
The City of Newport Beach expended funds to assist homeless, prevent homelessness and
towards serving the needs of the elderly. SECTIONS B, "Housing, Homeless and Special
Needs Accomplishments," outline the agencies funded and services provided. Services
included temporary and emergency shelter, transitional housing programs, Section 8
certificates and meals for seniors.
D. CONTINUUM OF CARE
The County of Orange has formed a countywide committee (Orange County Steering
Committee), which includes Orange Countyjurisdictions, 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 2001 -02, Newport Beach allocated 15 percent of its CDBG funds for
public service programs to address the needs of the homeless.
11
Programs funded include temporary and emergency shelters, transitional housing
programs, Section 8 certificates and meals for seniors.
In addition, the City of Newport Beach is working towards creating jobs in the Balboa
Peninsula Revitalization area to provide opportunities to low and moderate - income
persons.
Other countywide agencies provide additional services to include job training, substance
abuse counseling, transportation, food and other services specifically addressed to serve
the needs of Orange County's homeless.
E. OTHER ACTIONS
During Program Year 2001 -02, Newport Beach had also undertaken a variety of activities
to:
Address Obstacles to Meeting Undeserved Needs:
According to the Consolidated Plan, one of the most undeserved needs in the City is
affordable housing to families of extremely low, very low and low income. The City has
identified the lack of developable sites, high land costs and limited funding as obstacles to
affordable housing. The city has previously adopted policies to overcome these obstacles
and to encourage affordable housing production by providing density bonuses and fee
waivers.
Foster and Maintain Affordable Housing:
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 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 approximately $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 in discussion with
developers or affordable housing in an effort to use these funds as an incentive for
affordable housing development.
Eliminate Barriers to Affordable Housing:
Continue to monitor all regulations, ordinances, departmental processing procedures, and
residential development fees to ensure these requirements do not excessively constrain
affordable residential development.
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Continue to offer density bonus incentives for the development of affordable housing
pursuant to state density bonus requirements and Newport Beach Housing Element.
In its effort to eliminate barriers to affordable housing, the City is updating its Housing
Element to provide incentives to developers of affordable housing. The City has offered a
25% bonus density to the developer of senior affordable housing at Lower Bayview
Landing. The City has also offered fee waivers to developers of affordable housing.
Continue to offer increased density bonus incentives for senior housing projects where
findings can be made to demonstrate no adverse impacts on adjacent properties.
Overcoming Gaps in Institutional Structures:
The City of Newport Beach continued to work with Orange County, the Orange County
Housing Authority and various non - profit organizations to provide services to the City's
residents. Through the cooperative efforts of these organizations, a variety of housing and
community development programs were implemented throughout the community.
The City participated with the County as part of their Continuum of Care Steering
Committee and continues to expend CDBG funds on various homeless, transitional and
permanent housing programs. .
Enhancing Coordination:
Maintained close contact with social service organizations funded by the City as well as
other local service providers.
Continued to evaluate the qualifications of non - profit organizations, with the intent of
working with these organizations in the future to preserve and develop service programs.
Collaborated with a variety of County service agencies, such as Fair Housing Council of
Orange County, Orange County Steering Committee and the Orange County Housing
Authority.
Improving Public Housing and Resident Initiatives:
(Newport Beach does not contain any public housing projects.)
Ensuring Compliance with Program and Comprehensive Planning Requirements:
The City has made all efforts to ensure compliance with the 2000 -2005 Consolidated Plan
and subsequent One -Year Action Plans. The City has utilized IDIS and HUD Community
2020 software for preparation of the Consolidated Plan and Action Plans. The City has
included all necessary HUD reports as part of its CAPER submittal. In addition, the City
continues to consult with HUD for technical assistance on projects when necessary.
In an effort to take corrective action on timeliness issues related to the City's submittal of
it's Consolidated Annual Performance and Evaluation Report (CAPER), the City has
contracted with a firm with knowledge and experience in the implementation of the
Community Development Block Grant Program.
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Reducing the Number of Persons Living Below the Poverty Level.
In Program Year 2001 -02, the City provided CDBG funding to support a number of projects
and programs to reduce the number of persons living below the poverty level. These
programs included transitional housing, Section 8 and a revitalization strategy for the
Balboa Peninsula Revitalization area.
F. LEVERAGING RESOURCES
As a City with substantial housing and community development needs, Newport Beach
needs to leverage its CDBG entitlement grants with a variety of funding resources in order
to maximize the effectiveness of available funds. These resources include private
donations, general fund dollars and in -lieu fees for affordable housing.
The City anticipates spending $5.5 million in non - federal funds for redevelopment of the
public infrastructure and facilities in the Balboa Peninsula Revitalization area overthe next
several years. In addition, the City has leveraged its CDBG funds in the form of a Section
108 loan (2.4 million dollar loan) to provide additional dollars to completethe improvements
within the Balboa Peninsula area.
In addition, there is approximately $2,500,000 in non - federal funds available for the
development and/or preservation of affordable housing units, which was negotiated bythe
City as part of market rate residential development.
G. CITIZEN PARTICIPATION
A notice advertising the 15 -day public review period for the CAPER was published.
Copies of the draft CAPER were made available for review at the Newport Beach
Library, the City's Clerk's Office and the Economic Development Department of the
City. A public hearing was held on September 24, 2002 to approve the CAPER and
receive comments. No public comments were received.
A copy of the notice can be found of the following page.
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NOTICE OF PUBLIC HEARING
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
DRAFT CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT
(CAPER) FOR FISCAL YEAR 2001 -2002
Pursuant to the United States Department of Housing and Urban Development (HUD)
regulations, the City of Newport Beach has prepared the draft Consolidated Annual
Performance Evaluation Report (CAPER) for the 2001 -2002 Community Development
Block Grant Program Year. The CAPER provides an assessment of the City's
performancein meeting Fiscal Year 2001-2002 housing and comm unity development goals
as outlined in the previously adopted Fiscal Year 2001 -2002 One Year Action Plan.
Additionally, the CAPER discusses changes the City anticipates making in the upcoming
year as a result of the assessment of FY 2001 -2002 annual performance.
Notice is hereby given that the City of Newport Beach has prepared the CAPER for FY
2001 -2002. A copy of the CAPER is required to be made available to the public for
review and comment for a fifteen (15) day period. The CAPER draft will be available for
public review from August 30, 2002 to September 16, 2002, at the following locations:
Newport Beach Planning Department
Newport Beach City Clerks Office
Newport Beach Public Library
A Public Hearing to solicit public comment from interested citizens will be held on
September 24, 2002, 7:00 p.m. at Newport Beach City Council Chambers, located at
3300 Newport Boulevard. The purpose of the Public Hearing for the CAPER is to allow
the public the opportunity to comment on the manner in which the City utilized federal
and non - federal funds for the one -year period that ended on June 30, 2002.
The City of Newport Beach encourages citizen participation in the CDBG process. If
you are interested, please attend the September 24, 2002 hearing. If you are unable to
attend the hearing, written comments will be accepted up to the date of the hearing. If
you have any questions, please contact Dan Trimble, Associate Planner at (949) 644-
3230.
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H. SELF EVALUATION
The City of Newport Beach set three (3) primary goals as part of its 2001 -02 One —Year
Action Plan:
• Public Facility Improvements — Balboa Peninsula Neighborhood Revitalization
• Homeless Persons and Other Persons with Special Needs
• Low Income Elderly
Through the expenditure of CDBG funds, the City of Newport Beach accomplished all of its
priorities in providing programs, projects and services (please see Table II Objectives &
Accomplishments).
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SECTION III SPECIFIC PROGRAM PERFORMANCE
A. CDBG PROGRAM
The primary objective of the Community Development Block Grant Program (CDBG) is the
development of viable urban communities, including decent housing, a suitable living
environment and expanding economic opportunities, principally for persons of low and
moderate income.
Accordingly, the City of Newport Beach developed the Consolidated Plan — One Year
Action Plan that gave priority to meeting community housing, public service, fair housing,
public facilities /improvements, ADA Accessibility programs, code enforcement, and
economic development needs.
Through public meetings, public hearings, and one on one consultations with various non-
profits and the Housing Authority, the City provided residents and service providers an
opportunity to help identify the City's major needs and thereby assist in the establishment
of long and short term community development objectives.
During the 2001 -2002 fiscal year, the City expended CDBG funds in a manner consistent
with meeting the National Objectives of the program. 100% of the CDBG funds were
expended for activities that benefit low to moderate income persons. The following is a list
of CDBG public service programs that were implemented:
• Homeless Emergency Assistance
• Substance Abuse Rehabilitation
• Temporary/transitional Shelter
• Battered Women Shelter
• Mobile Meals for Seniors
• Senior Services
The following is a list of CDBG capital improvement projects that were implemented:
• Balboa Peninsula Revitalization
Other Services:
Code Enforcement Officer — Balboa Peninsula
Fair Housing Council of Orange County
Refer to Section I, Programmatic Accomplishments, for further program detail.
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B. NATURE AND RESONS FOR CHANGES IN PROGRAM OBJECTIVES
The City did not make any changes to its program objectives.
C. EFFORTS IN IMPLEMENTING THE PLANNED ACTIONS
Refer to Section 1, Summary of Resources and programmatic accomplishments.
D. COMPLIANCE WITH NATIONAL OBJECTIVES
Under HUD regulations, CDBG- funded activities must meet at least one of the following
three national objectives:
• activities benefiting low- and moderate- income persons
• activities which aid in the prevention or elimination of slums or blight
• activities designed to meet community development needs having a particular
urgency
In Program Year 2001 -02, all of the CDBG- funded activities comply with the national
objective requirements under the benefits to low- and moderate - income persons criteria.
E. DISPLACEMENT AND RELOCATION ACTIVITIES
The City did not undertake any CDBG- funded activities that involved acquisition,
rehabilitation, or demolition of occupied property during Program Year 2001 -02. No
displacement or relocation activities took place as a result of the CDBG program.
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