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MEMORANDUM
To: Chair Tucker and Housing Element Update Advisory Committee Members
From: David Barquist, AICP
Kimley-Horn and Associates, Inc.
Date: March 12, 2021
Subject: DRAFT HOUSING ELEMENT OVERVIEW
This Memorandum provides an introduction to navigating the initial Draft 6th Cycle Housing Element
that was made publicly available on March 10, 2021. The Draft Element is considered a preliminary
progress Draft document and was made publicly available to receive comments prior to preparing an
HCD review draft at a later date. This Draft document will undergo additional internal review to verify
compliance with statutory requirements related to data, analysis and policy.
An electronic version of the Draft Housing Element can be found at the following link:
www.newportbeachca.gov/DraftHEUpdate
Summary of Housing Element Content
The Housing Element contains the following sections, as required by statute:
•Section 1: Introduction
•Section 2: Community Profile
•Section 3: Housing Constraints, Resources and Affirmatively Further Fair Housing
•Section 4: Housing Plan
•Appendix A – Review of Past Performance
•Appendix B – Adequate Sites Analysis
•Appendix C - Summary of Outreach
A summary of each section is provided below to guide in your review of the Draft document. The
Table of Contents is also attached for your reference.
Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview
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Section 1: Introduction
The Introduction provides a summary of the statutory authority of the Housing Element, discussion
of the Regional Housing Needs Assessment (RHNA), relationship to other Elements of the Newport
Beach General Plan, data sources used in the analyses and provides a general summary of the
content of the Housing Element.
Section 2: Community Profile
The Community Profile provides an overview of the demographic and housing characteristics of
Newport Beach. All statutory requirements for analyzing the characteristics of Newport Beach
residents and housing units are summarized in this Chapter. Emphasis is provided to show trends
in the community, identification of overpayment and the status of existing housing stock
The analysis contained in this Chapter utilizes the most currently available data from a variety of
federal, state and local sources.
Section 3: Housing Resources, Constraints and Affirmatively Further Fair Housing
Section 3 analyzes governmental and non-governmental constraints in the production of housing in
Newport Beach and describes market conditions and land use controls governing the development
of residential lands in Newport Beach. Constraints related to infrastructure and environmental issues
are also evaluated.
Pursuant to AB 686, a needs assessment for Affirmatively Furthering Fair Housing is provided. The
new statute requires analysis of disparities and dissimilarities in the provision of housing the is
accessible to all persons regardless, of racial or ethnic or economic status. The section evaluates
local and regional policies and evaluates resources to address fair housing issues.
A summary of housing resources, including a summary of Sites available, financial resources and
opportunities for energy conservation is also provided.
Section 4: Housing Plan
The Housing Plan represents the City’s official policies related to Housing. Due to the unique
requirements in Housing Element law, these policies my be more detailed and prescriptive then other
policies in the General Plan.
The Housing Plan describes overall Housing Goals, supported by polices and Program Actions.
Each Program Action includes description of the action, a timeline for its implementation responsible
party for implementation and assumed funding source.
Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview
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Appendix A – Review of Past Performance
The Review of Past Performance evaluates 5th Cycle Housing Element programs by describing
accomplishments and summarizing status for the 6th Cycle. Many of the existing 5th Cycle programs
are continued in the 6th Cycle to provide overall consistency with the General Plan and to preserve
active and currently funded programs or policies.
Appendix B – Adequate Sites Analysis
This Appendix provides a detailed summary of sites to accommodate the City’s 2021-2029 RHNA
allocation. The analysis includes mapping and identification of sites that will constitute the inventory
of sites available for residential uses during the 2021-2029 Planning Period. All sites considered and
the rationale for their inclusion are detailed.
Appendix C – Community Engagement Summary
This Appendix provides a summary of all community engagement activities, including meetings,
workshops, HEUAC Meetings and other print and digital engagement with the community and
stakeholders.
Draft Housing Element Review Process
The initial Draft document is available for public review and comment through April 30, 2021. During
this period, the City will accept comments on the Draft from interested parties. The comments received
will be considered when the City develops a revised Draft for submission to HCD for statutory
compliance review.
HCD is required by statute to provide an initial 60-day review of the Housing Element. As part of the
review process, HCD will verify compliance with statutory provisions, including recently adopted
statutes. Any discrepancies or failure to fully address statutory provisions will be identified by HCD.
HCD will afford the City interim discussions during the review period to address any necessary
amendments to the Draft Housing Element. At the conclusion of the 60-day period, HCD is obligated
by statute to provide a Letter of Substantial Compliance or a review letter with findings that detail the
required amendments necessary to comply with state law.
HCD will also consider comments from the public and stakeholders during their review.
Housing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview
City of Newport Beach ii
City of Newport Beach
DRAFT HOUSING ELEMENT
2021-2029
DRAFTHousing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview
Table of Contents (DRAFT MARCH 2021) ii
Table of Contents
SECTION 1: INTRODUCTION
A. Role of the Housing Element ....................................................................................................................... 1-2
B. State Policy and Authorization .................................................................................................................... 1-2
1. Background ................................................................................................................................................... 1-2
2. State Requirements ...................................................................................................................................... 1-2
3. Regional Housing Needs Assessment ........................................................................................................... 1-4
4. Relationship to Other Community Plan Elements ......................................................................................... 1-5
5. Public Participation ....................................................................................................................................... 1-5
6. Data Sources (To be updated in final draft) .................................................................................................. 1-6
7. Housing Element Organization ..................................................................................................................... 1-7
SECTION 2: COMMUNITY PROFILE
A. Population Characteristics .......................................................................................................................... 2-2
1. Population Growth ....................................................................................................................................... 2-2
2. Age Characteristics ....................................................................................................................................... 2-3
3. Race/Ethnicity Characteristics ...................................................................................................................... 2-4
B. Economic Characteristics ............................................................................................................................. 2-6
1. Employment and Wage Scale ....................................................................................................................... 2-6
C. Household Characteristics .......................................................................................................................... 2-10
1. Household Type and Size ............................................................................................................................ 2-10
2. Household Income ...................................................................................................................................... 2-12
D. Housing Problems ...................................................................................................................................... 2-15
1. Overcrowding ............................................................................................................................................. 2-16
2. Overpayment (Cost Burden) In Relationship to Income .............................................................................. 2-18
E. Special Needs Groups ................................................................................................................................. 2-19
1. Seniors ........................................................................................................................................................ 2-20
2. Persons with Physical and Developmental Disabilities ............................................................................... 2-20
3. Large Households ....................................................................................................................................... 2-23
4. Single-Parent Households ........................................................................................................................... 2-24
5. Farmworkers ............................................................................................................................................... 2-24
6. Extremely Low-income Households and Poverty Status ............................................................................. 2-25
7. Persons Experiencing Homelessness ........................................................................................................... 2-27
8. Students ...................................................................................................................................................... 2-28
F. Housing Stock Characteristics ..................................................................................................................... 2-28
1. Housing Growth .......................................................................................................................................... 2-29
2. Housing Type .............................................................................................................................................. 2-29
3. Housing Availability and Tenure ................................................................................................................. 2-30
4. Housing Age and Condition ........................................................................................................................ 2-32
5. Housing Costs and Affordability ................................................................................................................. 2-34
Extremely Low-income Households ................................................................................................................. 2-35
Very Low-income Households .......................................................................................................................... 2-35
Low-income Households .................................................................................................................................. 2-35
Moderate income Households ......................................................................................................................... 2-35 DRAFTHousing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview
Table of Contents (DRAFT MARCH 2021) iii
SECTION 3: HOUSING CONSTRAINTS, RESOURCES, AND AFFIRMATIVELY FURTHERING FAIR HOUSING
A. Nongovernmental Constraints .................................................................................................................... 3-2
Land Costs and Construction Costs ............................................................................................................... 3-2
Availability Financing .................................................................................................................................... 3-3
Economic Constraints ................................................................................................................................... 3-5
B. Governmental Constraints .......................................................................................................................... 3-5
Land Use Controls ......................................................................................................................................... 3-6
Local Coastal Program and Land Use Plan ........................................................................................................ 3-7
John Wayne Airport Environs Land Use Plan (AELUP) ....................................................................................... 3-8
Overlay Districts ................................................................................................................................................. 3-8
State Density Bonus Law .................................................................................................................................. 3-10
Residential Development Standards ................................................................................................................ 3-13
Variety of Housing Types Permitted ................................................................................................................ 3-19
Growth Management Measures ...................................................................................................................... 3-26
Specific Plans ................................................................................................................................................... 3-27
Housing for Persons with Disabilities ............................................................................................................... 3-29
Development Fees ............................................................................................................................................ 3-31
On-/Off-Site Improvements ............................................................................................................................. 3-35
Local Processing and Permit Procedures ......................................................................................................... 3-35
Infrastructure Constraints........................................................................................................................... 3-40
Dry Utilities ...................................................................................................................................................... 3-41
Water Supply ................................................................................................................................................... 3-43
Fire and Emergency Services ............................................................................................................................ 3-46
Police Services .................................................................................................................................................. 3-48
Environmental Constraints ......................................................................................................................... 3-48
Coastal Hazards ............................................................................................................................................... 3-48
Geologic Hazards ............................................................................................................................................. 3-50
Seismic Hazards ............................................................................................................................................... 3-50
Flood Hazards .................................................................................................................................................. 3-51
Fire Hazards ..................................................................................................................................................... 3-52
C.Affirmatively Furthering Fair Housing (AFFH) ............................................................................................... 3-52
Affirmatively Furthering Fair Housing ........................................................................................................ 3-52
Needs Assessment ...................................................................................................................................... 3-53
Fair Housing Issues .......................................................................................................................................... 3-53
Fair Housing Enforcement and Outreach Capacity .......................................................................................... 3-54
Analysis of Federal, State, and Local Data and Local Knowledge ............................................................... 3-55
Integration and Segregation Patterns and Trends .......................................................................................... 3-55
Racially or Ethnically Concentrated Areas of Poverty (R/ECAP) ....................................................................... 3-56
Disparities in Access to Opportunity ................................................................................................................ 3-59
Discussion of Disproportionate Housing Needs ............................................................................................... 3-65
Displacement Risk ............................................................................................................................................ 3-66
Assessment of Contributing Factors to Fair Housing Issues in Newport Beach ............................................... 3-67
Analysis of Sites Pursuant to AB 686 .......................................................................................................... 3-68
Analysis of Fair Housing Priorities and Goals ............................................................................................. 3-71
D. Housing Resources ..................................................................................................................................... 3-72
1. Regional Housing Needs Allocation ............................................................................................................ 3-72 DRAFTHousing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview
Table of Contents (DRAFT MARCH 2021) iv
Residential Sites Inventory ............................................................................................................................... 3-72
Above Moderate- and Moderate-Income Sites ................................................................................................ 3-72
Development of Non-Vacant Sites and Converting to Residential Uses .......................................................... 3-75
Sites Suitable for Lower Income Housing ......................................................................................................... 3-76
Summary of Sites Inventory and RHNA Obligations ........................................................................................ 3-82
Financial Resources .................................................................................................................................... 3-82
Section 8 Housing Choice Voucher ................................................................................................................... 3-82
Community Development Block Grants (CDBG) ............................................................................................... 3-83
HOME Investment Partnership Program (HOME) ............................................................................................ 3-83
Opportunities for Energy Conservation ...................................................................................................... 3-84
SECTION 4: HOUSING PLAN
A. Regional Housing Needs Assessment ........................................................................................................... 4-2
A.Housing Goals ............................................................................................................................................... 4-2
B.Housing Policies and Program Actions ......................................................................................................... 4-3
Summary of Quantified Objectives .................................................................................................................. 4-26
APPENDICES
Appendix A: Review of Past Performance………………………………………………………………………………………………………..A-1
Appendix B: Adequate Sites Analysis……………………………………………………………………………………………………………….B-1
Appendix C: Summary of Outreach………………………………………………………………………………………………………………….C-1 DRAFTHousing Element Update Advisory Committee - March 17, 2021 Item No. V(c) - Attachment 3 Initial Draft Housing Element Overview