HomeMy WebLinkAbout10 - Housing Element Implementation ReportCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 10
October 12, 2004
TO: HONARABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Planning Department
Jaime Murillo, Assistant Planner
(949) 644 -3209 imurilloacity.newoort- beach.ca.us
SUBJECT: Housing Element Implementation -Annual Progress Report
RECOMMENDATION:
Review, file and forward the Annual Housing Element Implementation
Report to the State Department of Housing and Community Development.
2. Review and approve the attached letter for submittal to the State of
California's Office of Planning and Research.
DISCUSSION:
California Government Code Section 65400 requires the City to file an annual
report every October to its "legislative body," the State Office of Planning and
Research (OPR), and the State Department of Housing and Community
Development (HCD). The report is required to provide information on the status
of the General Plan and the City's progress in implementating its programs as
well as its progress in meeting regional housing needs goals. The City must also
report on its efforts to remove governmental constraints to the maintenance,
improvement, and development of housing for all income levels.
Since the City is in the process of conducting a comprehensive update of its
General Plan, an annual review of the entire General Plan is not required at this
time. Consistent with the guidelines from OPR, the City will submit a brief letter
to the State describing the scope of work for the General Plan Update and its
anticipated completion date.
Housing Element Implementation
Annual Progress Report
October 12, 2004
As required by State Housing Element Law, staff has completed a detailed
Housing Element Implementation Report which provides the following
information: (A) a review of the City's progress in fulfilling its share of the
Regional Housing Needs Assessment; (B) a complete detailed status report on
the implementation of each of the housing programs of the City's Housing Plan;
and (C) a review of actions and programs adopted to remove or mitigate
governmental constraints on the development of housing for all income levels. In
addition, as a condition of certifying the City's Housing Element, HCD required a
progress report on the development status of the Bayview Landing, Banning
Ranch, and Avocado /MacArthur housing site, as part of the annual report. The
report is attached as Exhibit A and will be forwarded to OPR and HCD upon
review by the City Council.
A draft letter explaining the status of the comprehensive General Plan update
process to the Office of Planning and Research is also attached as Exhibit B.
Environmental Review
Not subject to CEQA, as the action is not a project as defined in Section
15378(b)(4) of the Public Resources Code.
Prepared by:
aime Murillo
Assistant Planner
by:
Patricia Temple
Planning Director
Attachments:
A. Housing Element Implementation Report
B. Draft letter to OPR on status of General Plan Update
Attachment
«A„
CITY OF NEWPORT BEACH
HOUSING ELEMENT IMPLEMENTATION REPORT
Fiscal Year 2003 -2004
The Newport Beach Housing Element was adopted in August, 2003. Since then,
City staff has been diligent in attempting to pursue successful accomplishment of
its many housing goals and programs. This report evaluates each program and
describes attempts made to pursue program and goal fulfillment.
California Government Code Section 65400 specifically mandates that the report
provide the following information: (A) a review of the City's progress in fulfilling its
share of the Regional Housing Needs Assessment; (B) a complete detailed
status report on the implementation of each of the housing programs of the City's
Housing Plan; and (C) a review of actions and programs adopted to remove or
mitigate governmental constraints on the development of housing for all income
levels. In addition, HCD has required a review of the development status of the
Bayview Landing, Banning Ranch, and Avocado /MacArthur housing projects.
A. PROGRESS IN MEETING REGIONAL HOUSING NEEDS
(RHNA GOALS)
The Southern California Association of Governments (SCAG) prepared a
Regional Housing Needs Assessment (RHNA) to identify the housing need for
each jurisdiction within the SCAG region. SCAG, through the RHNA process,
has assigned Newport Beach a certain share of housing units that it should
provide between the 1998 — 2005 planning period in an effort to satisfy housing
needs resulting from the projected growth in the region. To accommodate
projected growth in the region, SCAG estimates the City needs to target its
housing unit production to accommodate 476 new housing units.
With the annexation of Newport Coast in 2001, the City agreed to transfer 945
units from the Orange County Regional Housing Needs allocation to the Newport
Coast area. This agreement was made since the Irvine Company committed to
the County to fulfill its allocation. However, since the County is still responsible
for issuing building permits for the area, the analysis on meeting the RHNA
1
allocation does not include the 945 Newport Coast units. Data regarding the
number of issued building permits has been requested from the County of
Orange but not yet received.
The table below indicates the future need for housing in Newport Beach and its
distribution by income group as calculated through the RHNA process (excluding
Newport Coast).
The City issued a total of 1,598 new additional residential building permits during
the RHNA period 1998 -2005, well exceeding the total 476 units projected by
SCAG. It should be noted however, that none of these units are bound to long-
term affordability restrictions. Several factors lending to the lack of lower- income
housing include:
• Many existing single - family homes are situated on "Two- Family
Residential' (R -2) lots. Because of the high costs of real estate in the
City, many of these single - family homes are being demolished and
replaced with duplexes. The construction of a duplex is permitted by right
in these R -2 zoning districts and as such, the City does not have the ability
to require affordability restrictions when new duplex units are proposed. In
an effort to remedy this situation, the City is developing a new in -lieu
housing fee and ordinance. The new ordinance and the updated in -lieu
fee will be applied to duplex units when a net increase in units is
proposed. This effort will generate additional funds for the in -lieu fee
program which the City will use for the production of new affordable units
in the City.
• The few large residential projects that have been approved by the City
have resulted in negotiated in -lieu fee payments by the developers instead
of actual construction of the required affordable units. Three of the largest
projects developed during the RHNA period 1998 -2005 have resulted in
the payment of $1,016,000 dollars in in -lieu fees. With the adoption of the
new in -lieu fee ordinance, the City will be able to increase the amount of
the in -lieu fee reserve to assist in the production of affordable units.
The City Building Department maintains a detailed Building Activity Report for
each fiscal year. The report lists the total number of different types of
construction permits issued, as well as the number of demolition permits issued.
2
Using this data, staff has created the following table illustrating the total number
of new additional units that were permitted during the RHNA period of 1998-
2004.
1 5T 6 MONTHS OF 1998 315 180
135
1998 -1999
1018 158
860
1999 -2000
742
258
484
2000 -2001
234
168
66
2001 -2002
159
130
29
2002 -2003
162
174
-12
2003 -2004
1 198
1 162
136
TOTAL
12828
11230
11598
3
B. HOUSING PROGRAM IMPLEMENTATION STATUS
1.1.1
Improve housing quality and prevent
On -going
deterioration of existing
neighborhoods by strictly enforcing
Adopted and continually
building code regulations and abating
enforce the Uniform Housing
code violations and nuisances.
Code.
Enforcement activities will focus on
property maintenance, eliminating
The Water Quality and Code
derelict or abandoned vehicles,
Enforcement Department
outdoor storage, or other situations
continually administers an
that may constitute health, safety or
enforcement program to
fire hazards.
correct violations of
municipal codes and land
use requirements.
A quarterly report is kept on
file on code enforcement
activities throughout the City,
1.1.2
Reduce the potential for criminal
On -going
activity by providing guidelines for
maintaining the security of existing
Planning staff recommends
development with emphasis on site
design elements to maintain
design (such as security lighting,
security and coordinates
vegetation removal, electronic garage
plan review with Newport
door openers, window security and
Beach Police Department.
other crime prevention techniques).
A brochure was created and
placed in the public lobby
containing Guidelines for
Maintaining Home Security.
1.1.3
Promote the maintenance and
Out -dated and
upkeep of rental housing by
unenforceable
encouraging the California State
Franchise Tax Board to enforce the
This program will be deleted
Tax Code preventing owners of rental
from the Housing Element
housing from claiming depreciation,
during the next update cycle.
amortization, mortgage interest and
property tax deductions on State
Income Tax Reports.
1.1.4
Continue to participate with the
On -going and Pending
OCHA and HCD in their
administration of rehab loans and
Research is in progress and
4
grants for low- and moderate- income
an analysis of different
homeowners and rental property
programs and the financial
owners to encourage preservation of
feasibility of participating in
existing housing stock.
these programs will be
assessed.
1.1.5
Continue to require replacement of
On -going
housing demolished within the
Coastal Zone when housing is (or
Chapter 20.86 of the Zoning
has been) occupied by low- and
Code, "Low and Moderate
moderate households within the last
Income Housing within the
12 months). The City shall prohibit
Coastal Zone," establishes
demolition unless a Coastal
the standards and
Residential Development Permit has
requirements to implement
been issued. The specific provisions
this program.
implementing replacement unit
requirements are contained in
Within the last year, only one
Municipal Code Section 20.
development has been
proposed to demolish a
structure containing 4 units
which were occupied by low
and moderate - income
households. Consistent with
Chapter 20.86, a Coastal
Residential Development
Permit, CR2003 -002, has
been processed and
approved. A feasibility study
determined that it would be
financially infeasible to
require the applicant to
replace the 4 units. With a
finding of infeasibility, the
demolition was authorized
and the applicant was
required to pay in -lieu fees
for each affordable unit
demolished.
1.1.6
Participate in a cooperative program
On -going and Pending
with the OCHA and Community
Development program office for
Research is in progress, and
administration of the HUD Rental
an analysis of different
Rehab Program. Energy efficient
programs and the financial
products shall be required when
feasibility of participating in
appropriate.
these programs will be
assessed.
1.1.7
Should need arise, consider using a
Pending
A
portion of its CDBG funds for
establishment and implementation of
Staff will prepare a study to
an emergency home repair program.
analyze whether or not a
Energy efficient products shall be
need for this program exists.
required whenever appropriate.
If it is determined that a need
exists, a program will be
developed.
1.2.1
As part of its annual General Plan
On -going
Review, the City shall provide
information on the status of all
Due to the comprehensive
housing programs. The portion of the
General Plan Update, the
annual report discussing housing
City is not conducting an
programs is to be distributed to HCD
annual General Plan review.
in accordance with State law in
Consistent with the
January of each year via US postal
guidelines from the State
service.
Office of Planning and
Research (OPR), the City will
be presenting OPR with a
brief letter describing the
scope of work for the General
Plan Update and the
anticipated completion date.
1.2.2
Investigate availability of Federal,
Pending
State and local programs (including
in -lieu funds) and pursue these
Research is in progress, and
programs if found feasible, for the
an analysis of different
preservation of low- income housing
programs and the financial
that may increase to market rates
feasibility of participating in
during the next ten years. A list of
any of these programs (if
these programs, including sources
any) will be assessed.
and funding amounts will be identified
as part of this program and
maintained on an on-going basis.
1.2.3
As part of the annual GP review,
On -going
monitor existing programs designed
to preserve assisted housing
development for very low- and low -
income households to determine
whether additional actions are
available and should be required to
protect these developments.
1.3.1
Continue to contract with the OC Fair
On -going
Housing Council for administration of
the Fair Housing Program including
The City contracts with the
updating the analysis of impediments
OC Fair Housing Authority
to fair housing. In addition, continue
annually.
A
to contract with OCHA to refer fair
housing complaints. Pamphlets
The Regional Fair Housing
containing information related to fair
Impediments Analysis was
housing complaints will continue to
completed in 2000.
be provided to the public at the
Planning Department.
Pamphlets containing
information of Fair Housing
and Dispute Resolution
Services are provided at the
public counter.
1.3.2
Support fair housing opportunities by
On -going
using CDBG funds whenever
necessary to enact Federal, State
For the 2003 -2004 Fiscal
and City fair housing policies.
Year, Newport Beach
allocated $14,976 in CDBG
funding to the Fair Housing
Council of Orange County to
assist the City in furthering
fair housing through
education, landlord/tenant
counseling, and legal action
when necessary.
1.4.1
Monitor progress on each program
On -going
and periodically report findings to the
Planning Commission and City
In conjunction with Program
Council.
1.2.1, staff will present the
Planning Commission and
the City Council with an
annual status report for their
review and approval prior to
submission to HCD.
1.4.2
Whenever land use regulations, land
On -going
use designations or Housing
Programs are proposed for adoption
This is a standard procedure
or modification, the City of Newport
for all Planning Department
Beach Planning Department shall
staff. Consistency with the
undertake an analysis to determine if
General Plan is a standard
the proposed action or regulation is
finding of approval.
consistent with the Housing Element,
all other elements. of the General
If an inconsistency exists,
Plan, and with all adopted City
staff takes the appropriate
Council policies. If the proposal is
actions to amend policies,
inconsistent, the policy, plan or
plans, or Elements to ensure
Element shall be amended in
consistency.
conjunction with approval of the
proposed regulation or action to
2.1.1
ensure consistency. Consistency
On -going
7
shall be achieved whenever a
regulation, action or project is
A vacancy rate survey is
approved.
completed every quarter to
1.5.1
Investigate the use of Federal funds
Pending
to provide technical and financial
policy.
assistance, if necessary, to all eligible
Research is in progress, and
homeowners and residential rental
an analysis of different
property owners to rehab existing
programs and financial
dwelling units through low- interest
feasibility of participating in
loans or potential loans, or grants to
these programs will be
very low, low, and mod - income owner
assessed.
occupants.
1.5.2
Periodically inform mobile home
Pending
owners of financial assistance
available from State HCD for eligible
Research is in progress, and
owner - occupants to rehab existing
an analysis of different
dwelling units through deferred
programs and financial
payment low- interest loans.
feasibility of participating in
these programs will be
assessed.
1.5.3
Per Government Code Section
On -going
65863.7, a Mobile Home Park
Conversion Permit shall be required
City staff requires special
as a prerequisite for conversion of an
permits for all proposed
existing mobile home park. In
conversions of mobile home
addition, the owner of the mobile
parks and as required by
home park shall provide a detailed
State Law, requires detailed
relocation impact report. The report
relocation impact reports.
shall be filed concurrently with filing
for any discretionary permit on such
property.
2.1.1
Maintain rental opportunities by
On -going
7
restricting conversions of rental units
to condominiums unless the vacancy
A vacancy rate survey is
rate in Newport Beach for rental
completed every quarter to
housing is 5% or higher for four (4)
monitor consistency with this
consecutive quarters, and unless the
policy.
property owner complies with
condominium conversion regulations
In 2003, a quarterly vacancy
contained in Chapter 20.83 of the
rate survey was performed for
Newport Beach Municipal Code.
the calendar year and the
vacancy rate consistently
exceeded 5% for all four
quarters.
2004
• 151 Qtr. -7.27%
• 2nd Qtr.- 6.11 %
• 3`d Qtr -6.24%
• A new survey will be
sent out at the end of
September for the 4`h
quarter of 2004.
2.1.2
Take all feasible actions, through use
On -going
of development agreements,
expedited development review, and
Planning staff continually
expedited processing of grading,
evaluates all proposed
building and other development
affordable housing projects for
permits, to ensure expedient
potential incentives, including
construction and occupancy for
expedient processing of
projects approved with low- and
permits.
moderate - income housing
requirements.
During the last year, the
Bayview Landing Senior
Affordable Housing Project
was granted a partial
entitlement fee waiver,
expedited permit processing,
and entitlement assistance.
2.1.3
The City Council and Planning
On -going
Commission shall have discretion to
review and waive planning and park
Staff continually evaluates
fees, and modify development
proposed affordable housing
standards (e.g. parking, setbacks, lot
projects to determine potential
coverage, etc.) for developments
incentives, including the
containing low- and moderate-
waiver of fees and flexibility
income housing in proportion to the
with development standards.
number of low- and moderate -
income units in each entire project.
During the last year, the
Bayview Landing Senior
Affordable Housing Project
was granted a partial fee
waiver as a financial incentive.
2.1.4
Continue to encourage the California
On -going
State Department of Real Estate and
California State Department of
The City of Newport Beach
Housing and Community
continually complies with
ce
Development to permit installation of
State Law as it applies to the
mobile homes, factory-built housing,
permitting and installation of
or other construction technology,
mobile homes and factory
provided such products comply with
built housing.
development standards of the
community and are compatible with
planning, aesthetic, and other
applicable considerations of the
specific neighborhood in which such
product is proposed.
2.1.5
Continue to participate with the
On -going
County of Orange in the issuance of
tax exempt mortgage revenue bonds
The participation with the
to facilitate and assist in financing,
County of Orange in the
development and construction of
issuance of tax exempt
housing affordable to low and
mortgage revenue bonds is
moderate - income households. City
project driven. Usually the
staff shall encourage developers of
developer applies for the tax
remaining residential sites to use
exempt bonds.
tax - exempt mortgage revenue bonds
to facilitate construction of low- and
The City will encourage and
moderate - income housing.
inform developers of the use
and availability of tax exempt
bonds.
During the last year, the
Bayview Landing Senior
Affordable Housing Project
was awarded a total of
$4,583,727 in tax credits.
(See Bayview Landing status
report for details on project)
2.1.6
Develop and implement an annual
Completed and On -going
compliance- monitoring program for
units required to be occupied by very
It has been determined by the
low -, low -, and moderate income
County of Orange, that the
households as approved with the
affordable housing obligations
development of Newport Coast and
for Newport Coast have been
in accordance with the Newport
met through the provision of
Coast Affordable Housing
off -site affordable apartments.
Implementation Program (AHIP).
The affordable units have
been included in the citywide
compliance monitoring report.
2.2.1
Continue to require a proportion of
On -going
affordable housing in new residential
ce
2.2.2
developments or levy an in -lieu fee.
The City's goal over the five -year
planning period is for an average of
20% of all new housing units to be
affordable to very low- and low -
income households. Given
considerations of proper general
planning, the California
Environmental Quality Act, project
development incentives, and
government financial assistance, the
City shall either; a) require the
production of the housing units
affordable to very low- and low -
income households, or, b) require the
payment of an in -lieu fee, depending
on the following criteria for project
size:
(See Housing Element for specific
The City shall provide more
assistance for projects that provide a
higher number of affordable units or a
greater level of affordability. More
than 20% of units shall be affordable
when assistance is provided from
Community Development Block Grant
funds or the City's in -lieu housing
fund.
For new developments proposed in
the Coastal Zone areas of the City
(comprising approximately 40% of
the area of Newport Beach), the City
shall require provision of housing
affordable to persons or families of
low- and moderate- income, where
Staff continues to enforce the
requirements for affordable
housing and /or the payment of
in -lieu fees. In addition, the
City is in the process of
updating its in -lieu fee and
affordable housing ordinance
to reflect current land costs
and to clarify existing
requirements.
On -going
The City will provide financial
assistance based on a project
by project analysis, depending
on need and overall project
merits.
The City continues to
participate in this Housing
Program and provided the
Bayview Landing Senior
Affordable housing project
with $1 million dollars from the
City's "in -lieu" housing fund
reserves. (See Bayview
Landing status report for
details on project)
On -going
Staff continues to implement
the provisions of Chapter
20.86 of the Zoning Code
(Low and Moderate Income
Housing within the Coastal
11
12
feasible in projects of 10 or more
Zone').
units. Whenever practicable, the City
shall require they be located on -site;
The most recent instance of a
alternatively, the City may permit the
development project
developer to locate units off -site but
proposing to build more than
within the Coastal Zone, or within (3)
10 units within the coastal
miles of the Coastal Zone (within
zone is the Cannery Lofts
Newport Beach). All residential
Mixed Use Development
developments of three units or more
project (PA 2001 -128). An
within the Coastal Zone shall require
affordable housing feasibility
a Coastal Residential Development
study was performed and it
Permit. Determinations of feasibility,
was determined infeasible to
and procedures relating to provision
require 2 of the 22 units
of low- and moderate - income
proposed to be reserved for
housing within the Coastal Zone,
moderate - income households.
shall be governed by Newport Beach
Because of the finding of
Municipal Code Title 20.
infeasibility, the payment of an
in -lieu fee was required.
2.2.4
All required affordable units shall
On -going
have restrictions to maintain their
affordability for a minimum of 30
Staff continues to include the
years.
affordability restriction as a
standard condition on all
affordable housing projects,
unless an otherwise longer
affordability covenant is
agreed upon.
A comprehensive affordable
housing ordinance is in the
process of being developed
which will clearly specify all
conditions for incentives,
including the minimum
affordability period of 30
years.
Bayview Landing was
required to provide a
restricted affordability
covenant of a minimum of 55
ears.
2.2.5
Attempt to ensure that existing
On -going
landowners and prospective
developers are aware of affordable
City staff continues to provide
housing development opportunities
prospective developers with
12
2.2.6
2.2.7
Banning Ranch, Bayview, and
Avocado /MacArthur properties.
The Affordable Housing Task Force
and /or City staff shall periodically
contact known local developers and
landowners to solicit new affordable
housing construction.
The Affordable Housing Task Force
shall create a program for the
expenditure of in -lieu housing funds.
2.2.8 I When it is determined to be of
benefit, the City shall participate in
other housing assistance programs
information on the City's
available land and its
incentive program.
For example, the land owner
of the Avocado /MacArthur
property was notified of the
City initiated General Plan
Amendment to change the
land use designation of the
subject property from Open
Space to Multi - Family
Residential with a specific
opportunity for affordable
The City Manager's Office and
Community and Economic
Development periodically
discuss the construction of
new affordable housing with
local developers and
landowners.
City staff also introduces the
idea of constructing affordable
housing to developers who
propose large residential
projects and discuss Density
Bonuses to assist in the
construction of affordable
On -going
Upon completion of
developing an In -Lieu Fee
program and ordinance, a
meeting will be scheduled with
the Affordable Housing Task
Force to develop a program
for the expenditure of in -lieu
fees.
On -going
staff continues to
Gl-?
14
that assist production of housing.
investigate feasible housing
assistance programs.
Most recently, the City agreed
to participate in a newly
formed Joint Powers Authority
for Orange County for the
purpose of financing and
administering a lease
purchase program for first -
time homebuyers. The first
meeting was held on
September 13, 2004 and the
Board of Directors is currently
under formation.
2.3.1
Newport Beach Staff and developers
On -going
of proposed major
commercial /industrial projects shall
Staff will research the idea of
study housing impact(s) of such
developing housing impact
project(s) during the development
fees for all new commercial
review process. Prior to project
and industrial developments.
approval, a housing impact
assessment shall be developed by
Staff will monitor all new
the City with the active involvement
planning applications for
of the developer. Such assessment
applicability.
shall indicate the magnitude of jobs
to be created by the project, where
housing opportunities are expected
to be available, and what measures
(public and private) are requisite, if
any, to ensure an adequate supply
of housing for the projected labor
force of the project and for any
restrictions on development due to
the "Greenli ht" initiative.
2.3.2
As part of the comprehensive
On -going
General Plan Update, investigate the
potential of housing (including single
The General Plan Advisory
room occupancy hotel(s), and mixed
Committee continues to meet
use development in areas such as
to discuss various land use
Newport Center, Santa Ana Heights,
options, including the potential
Bay Knolls and JWA.
for these various forms of
housing.
The General Plan Update
14
process is likely to extend into
2006.
3.1.1
MM
Increase the efficienc7reviewbe
On -going
building permit process
that the initial plan
he City has an automated
completed within 4 weekracking
system in place.
all submittals. This will include an
automated tracking system allowing
If a target date is missed, an
applicants to monitor plan check
email notification is sent to all
progress via the Internet.
department supervisors.
Implementation of this program
began in September 2002 and
Efficiency of plan check
operates on an on -going basis.
review is monitored monthly
to insure a 90% success rate.
3.1.2
When a residential developer agrees
On -going
to construct housing for persons and
families of low and moderate
The City considers density
income, the City shall either (1)
bonuses and other incentives
grant a density bonus or (2) provide
on a project by project basis,
other incentives of equivalent
depending on the need and
financial value.
project merits.
3.2.1
Identify the following sites as
On -going
adequate, which will be made
available through appropriate zoning
All three of these sites have
and development standards and
been identified in the Housing
with public services and facilities
Element under, 'Inventory of
needed to facilitate and encourage
Land Suitable for Residential
development of a variety of housing
Development ".
types to meet City housing goals as
identified pursuant to Government
Bayview Landing was
Code Section §65583(b): Newport
approved on February 25,
Banning Ranch; Bayview Landing;
2003 by the City Council and
and, Avocado /MacArthur.
on November 25, 2003 by the
Coastal Commission. The
project is currently under
construction and a grading
permit was approved and
issued on May 20, 2004. (See
Bayview Landing status report
for details on project)
A General Plan Amendment
15
IN.
Initiation has been approved
for the Avocado / Macarthur site
by the City Council on April
27, 2004. An Initial Study was
completed on August 9, 2004
in conjunction with a Mitigated
Negative Declaration.
Publication of the notice to
adopt the Mitigated Negative
Declaration is temporarily on
hold until negotiations with the
property owner are completed.
3.2.2
Require the developer(s) of the 4.5-
Pending project completion
acre site located on the
southwesterly corner of the
(See Bayview Landing status
intersection of Jamboree Road and
report for details on project)
Back Bay Drive (known as the
Bayview Landing site) to provide
approximately one hundred twenty
(120) residential units for low -
income senior households. The City
shall assist the developer(s) by
streamlining the discretionary
application process and by granting
a density bonus of twenty -five
percent (25 %) for the project.
Additionally, the City may consider
using a portion of fees collected
from other projects paid in -lieu of
providing affordable residential units
to facilitate meeting the City
Affordable Regional Housing Needs
Assessment construction
requirements on said Bayview
Landing site.
3.2.3
Encourage the developer(s) of a 3.5-
Pending
acre site located northerly of San
Miguel, easterly of Avocado Avenue,
GPA Initiation Approved
and westerly of MacArthur
. PC- April 8,2004
Boulevard (known as the
. CC- April 27,2004
Avocado /MacArthur site) to provide
at least fifty -six (56) multiple - family
(See Avocado /MacArthur
residential units for Senior Citizen
status report for details on
Households. The City shall assist
project)
the developer(s) by initiating a
Change of Zone within one 1 year
IN.
3.2.4
3.2.5
of certification of this Housing
Element to allow such senior
residential units on said site, by
considering a "density bonus" and /or
other incentives, and by streamlining
the discretionary process.
Additionally, the City may consider
using a portion of fees . collected
from other projects paid in lieu of
providing affordable residential units
to facilitate meeting the City's Very
Low -, Low -, and Moderate - Income
Regional Housing Needs
Assessment construction require-
ments on the Avocado /MacArthur
site.
When requested by property
owners, the City of Newport Beach
shall continue to approve rezoning
of developed or vacant property
from non - residential to residential
uses when appropriate. These
rezoned properties shall be added to
the list of sites for residential
development.
The .City shall consider a potential
reduction of commercial zoning
within some of its village commercial
areas within the Coastal Zone to
allow for additional residential
development. Economic feasibility
studies to support such a reduction
will be evaluated concurrently with
the City's General Plan Update
projected for completion in 2005.
On -going
The City continually monitors
requests for zone changes of
vacant and developed
properties from non-
residential to residential and
approves when determined to
be compatible and feasible.
When approved, these sites
are mapped for residential
uses on both the zoning
district map and General Plan
Land Use Map.
Pending
The General Plan Advisory
Committee (GPAC) has been
evaluating various areas for a
reduction in commercial
zoning to allow for residential
development. A Fiscal Impact
Analysis and Economic
Feasibility study will be used
to evaluate the GPAC's
recommendations.
The General Plan Update is
17
it
expected to be completed in
early 2006.
3.2.6
Encourage the participation in a
On -going
Joint Powers Authority of Orange
County jurisdictions for the purpose
On September 24, 2002, the
of financing and administering a
City Council authorized the
lease purchase program for first-
City Manager to execute a
time homebuyers.
Joint Powers Agreement for
membership in the Agency
and attend Agency meetings
and take any and all actions
necessary to coordinate the
City's voting membership in
the Agency and participation
in the Lease -to- Purchase
Program.
However, due to extreme rises
in home prices in the last two
years, the program was
deemed infeasible and never
executed. In December of
2003, the program was
updated to respond to
changes in the housing bond
market.
The Joint Powers Agreement
was recently executed in
August of 2004.
The City has posted
information on the program on
the website and plans to
create an informative
flyer /brochure to advertise the
program to the public.
3.2.7
Continue to participate as a member
On -going
of the Orange County Housing
Authority Advisory Committee and
City Staff regularly attends the
work in cooperation with the Orange
quarterly meetings of the
County Housing Authority to provide
Cities Advisory Committee.
Section 8 Rental Housing Assistance
to residents of the community. The
In addition, staff continually
City shall, in cooperation with the
works in cooperation with the
Housing Authority, recommend and
County to provide Section 8
it
request use of modified fair market
rent limits to increase number of
housing units within the City that will
be eligible to participate in the
program. The Newport Beach
Planning Department shall prepare
and implement a publicity program to
educate and encourage landlords
within the City to rent their units to
Section 8 Certificate holders and to
make very low- income households
aware of availability of the Section 8
Rental Housing Assistance Program.
rental housing assistance to
residents.
A link to the Orange County
Housing Authority website has
been placed on our City
website to provide information
on the Section 8 program.
4.1.1
Periodically contact owners of
On -going
affordable units for those
developments listed on Table 29 to
Staff is currently updating the
obtain information regarding their
contact list for affordable
plans for continuing affordability on
units. A survey maybe
their properties.
developed and sent out
annually to each contact.
4.1.2
Consult with property owners
Pending
regarding CDBG funds and in -lieu
funds to maintain affordable housing
Will be discussed during the
opportunities in those developments
AHTF meeting in conjunction
listed in Table 29.
with Program 2.2.7.
4.1.3
Prepare written communication for
On -going
tenants and other interested parties
about OCHA Section 8 renewals to
Information pamphlets
assist tenants and prospective
informing prospective tenants
tenants to acquire additional
and landlords about the
understanding of housing law and
OCHA Section 8 program
related policy issues.
have been made available in
the public lobby.
In addition, information about
the Section 8 program has
been posted on the City
website.
4.1.4
Continue to pursue Community
Pending
Development Grant Funds to facilitate
construction of housing for very low-
1 The use of CDBG funds for
19
and low- income households. Use of the purpose of facilitating
CDBG funds may include but shall construction of housing for
not be limited to site acquisition, 'off- very low- and low- income
setting" of land and /or construction households will be
costs. discussed in conjunction
with Program 2.2.7 and
4.1.2 at the next AHTF
meeting.
5.1.1
Apply for US Department of Urban
On -going
Development CDBG funds and
allocate a portion of such funds to
The Action Plan for Fiscal
sub - recipients who provide shelter
year 2004/2005 has been
and other services for the homeless.
approved and the City will
provide funding to the
following organizations to
preserve the supply of
emergency and transitional
housing: Orange Coast
Interfaith Shelter, Serving
People In Need (SP W,.
WISEPIace, and Mercy
House.
The following organization is
funded to assist homeless
individuals and to prevent
those "at -risk" of become
homeless: FISH Harbor
The following organization
has been funded to assist
homeless battered women
and children: WISEPIace
5.1.2
As a condition of receiving housing
On -going
funding through the City, the City
shall require social service agencies
Reports are submitted on a
receiving such funds record
quarterly basis with each
information on clients they serve and
invoice from CBDG recipients.
provide an annual audit of their
These records are kept on file
activities.
at the grant administrators
office (MDG).
5.1.3
!Cooperate with OCHA to pursue!
Pendin
21
establishment of a Senior /Disabled
or Limited Income Repair Loan and
Research is in progress, and
Grant Program to underwrite all or
an analysis of different
part of the cost of necessary housing
programs and the financial
modifications and repairs. Loans
feasibility of participating in
would be repaid or forgiven on an
these programs will be
ability to pay basis. Health and
assessed.
safety deficiencies would receive
priority. Modifications for
accessibility also would be
appropriate. Administration of funds
would be the responsibility of the
OCHA. Cooperation with OCHA will
include continuing City of Newport
Beach participation in the OC
Continuum of Care and continuing to
provide CDBG funding.
5.1.4
Continue to permit development of
On -going
senior citizen housing facilities in all
residential and commercial zoning
Bayview Landing is a senior
districts pursuant to Zoning Code
affordable housing project
Sections 20.10.020 and
consisting of 120 units. All
20.15.020(b).
units are age restricted to
those 62 years of age and
older. (See Bayview Landing
status report for details on
project).
5.1.5
Continue to permit, where
On -going
appropriate, development of
"granny' units in single - family areas
Code Amendment No. 2003 -
of the City. Consider amending the
001 (PA 2003 -054) was
zoning code to allow approval of
approved by City Council
"granny units' at the staff level
May 13, 2003 to grant the
instead of by the Planning
Planning Director approving
Commission.
authority over Second Unit
Use Permits, rather than the
Planning Commission.
To date, one application has
been approved and one
application is pending.
5.1.6
Consistent with the development
On -going
standards in residential and
commercial areas, continue to permit
Emergency shelters and
emergency shelters and transitional
transitional housing are
housing under group housing
monitored for compliance with
21
22
provisions in its Zoning Code.
the development standards
regulations contained in the
Zoning Code.
5.1.7
The City of Newport Beach shall
Pending
investigate State Housing
Opportunities for Persons With AIDS
Research is in progress and
(HOPWA).
an analysis of different
programs and the financial
feasibility of City participation
will be assessed.
5.1.8
Notify residential developers (upon
On -going
application for a discretionary permit)
and to interested individuals and
Project planners regularly
families, the following Table, entitled
inform developers about
"Public and Private Resources
affordable housing
Available for Housing and
opportunities and programs.
Community Development Activities.
Table included in Appendix 4
5.1.9
By December 2003, the City shall
Completed
analyze and determine whether
there are constraints on the
As required by SB520, a
development, maintenance and
Constraints Analysis report
improvements of housing intended
was completed in January
for persons with disabilities,
2004, however due to
consistent with SB 520 enacted Jan.
anticipated changes to the
1, 2002. If any constraints are
Zoning Code pertaining to
found, the City will take subsequent
"Residential Care Facilities ",
actions within 6 months of the
the report was postponed until
completion of the evaluation. The
a resolution was adopted.
analysis will include an evaluation of
The City has adopted
existing land use controls, permit
amendments to the Zoning
and processing procedures and
Code which includes the
building codes. If any constraints
addition of a Federal
are found in these areas, the City will
Exception Permit process as
initiate actions to address these
a mechanism for persons to
constraints, including removing the
request a reasonable
constraints, or providing reasonable
accommodation pertaining to
accommodation for housing intended
residential care facilities for 7
for persons with disabilities.
or more persons within
residential zones. Changes
have been made to the
SB520 Constraints Analysis
consistent with the
amendments and the report
was submitted to HCD on July
20, 2004.
22
C. MITIGATING GOVERNMENTAL CONSTRAINTS
In accordance with Senate Bill SB520 and Newport Beach Housing Program
5.1.9, a thorough analysis of constraints on the development, maintenance and
improvement of housing for persons with disabilities was conducted in January of
2004. The analysis specifically addresses constraints related to zoning and land
use controls, permit and processing procedures, and building codes. Although a
potential constraint was recognized, the City of Newport Beach complies with
both the federal Fair Housing Act (FHA) and the California Fair Employment and
Housing Act (FEHA) in providing reasonable accommodations through the use of
existing regulatory procedures not specially designed for people with disabilities.
A potential constraint may exist at times when there are conflicts between the
California Building Code requirements pertaining to access and adaptability for
persons with physical disabilities and the Newport Beach Zoning Code
requirements. The City recognizes that a person with disabilities may require
special accommodations for retrofitting their existing residential units for
purposes of accessibility and safety. A remedy for dealing with these conflicts
between building code requirements for accessibility and adaptability, and the
City Zoning Code would be to amend Zoning Code Section 20.60, "Site
Regulations ", to incorporate a subsection which would allow the City to utilize a
"Director/ Staff Approval ". This type of approval is an existing administrative
review process and is intended to allow the review and analysis of conflicts and
requests for accommodations at the staff level. Staff expects to prepare this
proposed amendment within the next six months.
Additionally, the City Council approved an amendment to the Zoning Code that
includes the addition of a Federal Exception Permit process as a mechanism for
persons to request a reasonable accommodation pertaining to residential care
facilities for 7 or more persons within residential zoning districts. The application
for a Federal Exception Permit shall be approved when requested unless the
evidence in the administrative record establishes one (or more) findings for
denial. The request must be related to the accommodation for individuals with
disabilities and must not require a fundamental alteration in the nature of the
program affected by the Federal Exception Permit nor impose an undue financial
or administrative burden on the City which creates an undue hardship on the
City.
D. SPECIFIC PROJECT STATUS
Consistent with conditions placed on the Newport Beach Housing Element by the
State Department of Housing and Community Development (HCD), the
development status of the Bayview Landing and Banning Ranch projects, as well
as the progress in rezoning the Avocado/MacArthur site are described below:
23
Bavview Landing
As required by Housing Program 3.2.2 of the Newport Beach Housing
Element, the City has successfully assisted the developer of the 4.2- acre
Bayview Landing site to obtain approval for development of the site. The
project consists of 120 -units in two, 3 -story buildings with a community
center, administrative offices, pool /patio area, and 144 parking spaces.
An adjacent 10 -acre parcel will contain a passive park and a wetlands
restoration area. The project has a residential density of 28.57 units per
acre. The project is required to remain affordable for a minimum of 55
years for seniors 62 years or older. The project includes 24 units
affordable to very low- income seniors and 95 units affordable to low -
income seniors.
Project feasibility was made possible through a tax credit award to the
developer in the amount of $4,583,727. The City assisted by granting
partial fee waivers of entitlement fees and committing $1 million dollars
from the in -lieu fee reserve to the developer. In addition, City staff has
provided the developer with expedited permit processing and contributed
a substantial amount of time for entitlement assistance through the City
and Coastal Commission approval processes.
The project was approved by the City Council on February 25, 2003. City
staff immediately began providing the developer with permit processing
assistance through the California Coastal Commission application
process. The project was reduced from 150 units, which included a
density bonus, to 120 units by the Coastal Commission due to site
constraints and landform alteration concerns. The parking ratio of 1.2 was
maintained and the incorporation of a wetland restoration area was
included for the project. On November 25, 2003, the Coastal Commission
granted the Bayview Landing project approval. The Coastal Development
Permit was issued in June, 2004.
Permits were issued for grading and erosion control on May 20, 2004 and
are now complete. Building permits are expected to be issued by the end
of September and project completion is expected by October, 2005.
Banning Ranch
The development of the Newport Banning Ranch area remains inactive at
this time. The City has not received any recent proposals or interest for
development.
24
Avocado /Macarthur
As required by Housing Program 3.2.3 of the Housing Element, the City
initiated a General Plan Amendment for the proposed 3.2 -acre site. On
April 8, 2004, the Planning Commission voted unanimously to recommend
that the City Council initiate the proposed General Plan Amendment and
Planned Community Development Plan Amendment to change the land
use designation from Open Space to Multi - Family Residential and to
establish specific development standards for the development of an
affordable housing project. On April 27h, 2004, the City Council approved
the initiation of the General Plan Amendment and the initiation of an
amendment to the Planned Community Development Plan.
Staff conducted an environmental assessment and prepared an Initial
Study in conjunction with a Mitigated Negative Declaration. Publication of
the notice to adopt the Mitigated Negative Declaration has been
postponed until negotiations with the property owner are completed.
The Planned Community Development Plan is anticipated to contain
specific development standards to require that development of the site
contain a minimum of 56 units, with a potential for 70 units through the use
of a density bonus, affordable to either very low or low- income
households, or a combination of the two, for a minimum of 55 years.
However, specific development standards related to parking, setbacks,
landscaping, and open space will be subject to the approval of a Use
Permit once a speck project is proposed.
25
Attachment
«B„
CITY OF NEWPORT BEACH
PLA PMG DEPARTMENT
Patricia L. Temple, Director
October 13, 2004
State of California Office of Planning and Research
Clearinghouse and Planning Unit
P.O. Box 3044
Sacramento, CA 95812 -3044
Subject: General Plan Annual Progress Report
Dear Sir /Madam:
In conformance with the Governor's Office of Planning and Research (OPR)
"Guidelines for the submission of General Plan Annual Progress Reports," the
City of Newport Beach is submitting this letter to inform you that the City is in the
process of a comprehensive update of the General Plan and will not be
submitting an Annual General Plan Report this year. However, the City will still
be providing the State Department of Housing and Community Development
(HCD) with the housing portion of the annual report illustrating the progress of
meeting our Regional Housing Needs and demonstrating the effectiveness of the
Housing Element in attainment of the community's housing goals and objectives.
The first phase of the General Plan Update, the "Visioning Process" was
completed in January of 2003. The Visioning Process brought together hundreds
of residents and business owners in the community to examine and discuss
crucial issues and provide direction for future policy decisions. Through a variety
of Visioning events, community members have spoken on how best to
characterize the City's identity, how to address pressures of physical
development, and how to balance environmental conservation with the need to
maintain and improve infrastructure and services. The community's deliberations
related to these issues will ultimately be considered as part of the General Plan
Update and policy formation.
The City is now in the second phase of the General Plan Update process
consisting of the preparation and review of several technical studies as well as
the continuing participation of a 37- member General Plan Advisory Committee
(GPAC). Four technical studies, which focus on traffic and circulation, biological
resources, hazards, and the City's fiscal conditions have been completed and
reviewed by the GPAC. Results from the technical studies will guide the policy
development phase of the General Plan Update.
3300 Newport Boulevard - Post Office Box 1768 - Newport Beach, California 92658 -8915
Telephone: (949) 644 -3200 - Fax: (949) 644 -3229 - www.city.newport- beach.ca.us
The General Plan Advisory Committee (GPAC) will continue to meet and discuss
these technical studies, planning issues, potential land use and circulation
alternatives, and policies to guide future land use and development over the
course of the next year and a half. Completion of the General Plan Update is
expected in early 2006.
If you have any questions or need further information, please contact Senior
Planner Tamara Campbell, AICP at (949) 644 -3238 or by email at
tcampbell@city.newport-beach.ca.us.
Sincerely,
Patricia Temple
Planning Director