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HomeMy WebLinkAbout2021-35 - Approving the 2021-2022 Annual Action Plan for the Allocation of the Federal Community Development Block Grant Program Funds for Fiscal Year 2021-2022RESOLUTION NO. 2021-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE 2021- 2022 ANNUAL ACTION PLAN FOR ALLOCATION OF THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS FOR FISCAL YEAR 2021-2022 WHEREAS, the City of Newport Beach ("City") participates in the United States Department of Housing and Urban Development ("HUD") Community Development Block Grant ("CDBG") program which requires the City to prepare a Five -Year Consolidated Plan and Citizen Participation Plan outlining the use of CDBG funds, strategic vision for housing and community development in the City, and receipt of community input regarding the expenditure of CDBG funds; WHEREAS, the City Council adopted Resolution No. 2020-51 approving the current 2020-2024 Consolidated Plan and Citizen Participation Plan on May 12, 2020; WHEREAS, HUD also requires the City to prepare an annual action plan for the appropriation of the CDBG annual grant and other available grant funds for the fiscal year; WHEREAS, the City anticipates receiving approximately $385,974.00 in CDBG grant funds for Fiscal Year 2021-2022; WHEREAS, on January 16, 2021, in accordance with Section G.1(b) of the Citizen Participation Plan, a Notice of Funding Availability was published in the Daily Pilot newspaper and sent to known non-profit community organizations currently operating within the City requesting proposals to provide public services to low- and moderate - income residents and fair housing services to all residents of the community; WHEREAS, the City received two proposals to provide public services and two proposals to provide fair housing services; WHEREAS, the draft 2021-2022 Annual Action Plan appropriates the $385,974.00 CDBG annual grant funds to various programs and projects consistent with the 2020-2024 Consolidated Plan and HUD requirements including the proposals received; WHEREAS, on March 27, 2021, notice was published in the Daily Pilot newspaper that the draft 2021-2022 Annual Action Plan would be available for public review and comment from March 27, 2021 to April 27, 2021; and Resolution No. 2021-35 Page 2 of 3 WHEREAS, a telephonic public hearing was held by the City Council on April 27, 2021, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, observing restrictions due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19 regarding the draft 2021-2022 Annual Action Plan. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and 24 Code of Federal Regulations Part 91. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The City Council does hereby approve the 2021-2022 Annual Action Plan attached hereto as Exhibit "A" to this resolution, which is incorporated herein by reference. Section 2: The City Council authorizes the City Manager, or his/her designee, to: 1) proportionally adjust appropriations to specific programs and projects as necessary to conform with the final 2021-2022 formula grant allocation of CDBG funds from HUD if the appropriation is more than or less than $385,974.00; 2) submitthe 2021- 2022 Annual Action Plan to HUD; 3) execute the 2021-2022 CDBG Program Grant Agreement and all related documents on behalf of the City; and 4) execute all subrecipient agreements with the nonprofit organizations receiving allocations of CDBG funds in the 2021-2022 Action Plan. Additionally, the City Council authorizes the Community Development Director, or his/her designee, to be the official representative of the City, administer the 2021-2022 Annual Action Plan and submit required environmental documentation to HUD for CDBG projects. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared invalid or unconstitutional. Resolution No. 2021-35 Page 3of3 Section 5: The City Council finds that the development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969 ("NEPA"), as amended, in that the project involves public services that will not have a physical impact or result in any physical changes to the environment. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines set forth in California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. AUUF I tU this 2Ith day of April, 202 ATTEST: EW Leilani I. Brown HA City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE / ,,, c- ff"'—' A ron C. Harp City Attorney Attachments: Exhibit A - 2021-2022 Annual Action Plan CITY OF NEWPORT BEACH Annual Action Plan FY 2021-2022 Table of Contents Tableof Contents.............................................................................................................................................................. 2 AP -15 Expected Resources — 91.220(c)(1,2)............................................................................................................... 3 AP -20 Annual Goals and Objectives............................................................................................................................. 5 AP -35 Projects — 91.220(d)............................................................................................................................................. 8 AP -38 Project Summary ................................................................................................................................................... 9 AP -50 Geographic Distribution — 91.220(f)............................................................................................................... 12 AP -55 Affordable Housing 91.220 .................................... 13 AP -60 Public Housing — 91.220(h)............................................................................................................................... 15 AP -65 Homeless and Other Special Needs Activities — 91.220(i)........................................................................ 17 AP -75 Barriers to affordable housing — 91.220(j).....................................................................................................20 AP -85 Other Actions — 91.220(k)................................................................................................................................22 AP -90 Program Specific Requirements — 91.220(1)(1,2,4)......................................................................................25 Tables: Table56 —Anticipated Resources................................................................................................................................. 3 Table57 - Goals Summary ............................................................................................................................................... 5 Table58 - Goals Description.......................................................................................................................................... 7 Table59 - Project Information....................................................................................................................................... 8 Table 60 - Geographic Priority Areas.........................................................................................................................12 Table 61 - One Year Goals for Affordable Housing by Support Requirements................................................14 Table 62 - One Year Goals for Affordable Housing by Support Type................................................................14 Newport Beach 2021-2022 Action Plan 2021-2022 Action Plan AP -15 Expected Resources - 91.220(c)(1,2) Introduction For program year 2021-2022, the City is anticipating receiving $385,974 of Community Development Block Grant (CDBG) funds from HUD. The City anticipates the availability of approximately $2.07 million of CDBG resources during the five-year period beginning July I, 2020 and ending June 30, 2025. Table 56 - Anticipated Resources Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG funds to leverage appropriate state, local, and private resources, including but not limited to those listed below. State Resources • State Low -Income Housing Tax Credit Program • Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program Newport Beach 2021-2022 Action Plan Amount Available Year 2 ExpectedExpected SourceAmount Programof of .Remainder Funds of ConPlan CDBG public - Admin and $385,974 $0 $0 $385,974 $1,157,922 The City federal Planning assumes it Economic will receive Development $385,974 Housing each year Public during this Improvements Consolidated Public Services Plan cycle. Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBG funds to leverage appropriate state, local, and private resources, including but not limited to those listed below. State Resources • State Low -Income Housing Tax Credit Program • Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program Newport Beach 2021-2022 Action Plan • Multifamily Housing Program (MHP) • Housing Related Parks Grant • CaIHFA Single and Multi -Family Program • Mental Health Service Act (MHSA) Funding Local Resources • Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program • Orange County Housing Authority (OCHA) Programs Private Resources • Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs • United Way Funding • Private Contributions • Public -Private Partnerships If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Newport Beach will comply with new State requirements under AB 1486 and AB 1255 to inventory and support developers to access and utilize surplus municipal and state land for the construction of affordable housing. If such sites are identified, the City will consider the use of CDBG or other resources to assist with site preparation. At the point of developing this Action Plan, the City does not have any publicly owned land that can be used to support the development of affordable housing within the City of Newport Beach. Matching Requirements The City of Newport Beach does not receive HOME Investment Partnerships funds as part of its entitlement allocation. The amountof matching is therefore not applicable for the 2021-2022 Annual Action Plan. Discussion Assuming continued level funding of the CDBG programs, the City expects to utilize approximately $2.07 million of CDBG funds during the five-year period beginning July I, 2020 and ending June 30, 2025 to achieve the goals of the Strategic Plan. Newport Beach 2021-2022 Action Plan AP -20 Annual Goals and Objectives Goals Summary Information I Program 2021 2022 Program Citywide All CDBG: N/A Administration Administration $65,194 2 Fair Housing 2021 2022 Affordable Citywide Ensure equal CDBG: Other: Services Housing access to $12,00 125 Persons housing Assisted opportunities 3 Public Services 2021 2022 Non -Housing Citywide Provide CDBG: Public service Community public $30,000 activities other Development services for than low- and Low/Moderate moderate- Income income Housing residents Benefit: 100 Persons Assisted 4 Homeless 2021 2022 Homeless Citywide Prevent and CDBG: Homelessness Services eliminate $27,896 Prevention: homelessness 25 Persons Assisted Newport Beach 2021-2022 Action Plan Sort Start End hic Needs Goal Order Goal Year Year Area Addressed Outcome CDBG: Indicator Public Facility 5 Public Facilities 2021 2022 Non -Housing Citywide Improve and Community public $250,884 or Infrastructure Development facilities and Infrastructure Improvements infrastructure Activities other than Address Low/Moderate material Income barriers to Housing accessibility Benefit: Other: I (Section 108 Loan) Modification to Shelter: 1 6 Economic 2020 2022 Non -Housing Citywide Economic CDBG: Economic Development Community Development $250,371 activities: Assistance Development (2020-21) 3 Businesses Assisted Newport Beach 2021-2022 Action Plan Goal Descriptions I Goal Name Program Administration Goal Efficient and cost-effective implementation of CDBG program. Description 2 Goal Name Fair Housing Services Goal Affirmatively further fair housing choice through the provision of fair housing education, Description counseling, anti -discrimination, and landlord -tenant mediation services. The CDBG Administration activity funding for five years is also represented under this goal. 3 Goal Name Public Services Goal Provide public services for low- and moderate -income residents including senior citizens, Description families and youth including but not limited to those concerned with food, essential services, transportation, health, recreation, and employment. 4 Goal Name Homeless Services Goal Provide funding to community-based organizations who offer critical services for Description homeless and other special needs populations as determined via a competitive application. 5 Goal Name Public Facilities and Infrastructure Improvements Goal Based on need and available resources and results of the 2020-2024 Consolidated Plan Description Needs Assessment Survey, the improvement of public facilities and infrastructure owned and operated by the City of Newport Beach is rated as a high priority need for CDBG funds. In addition, Section 108 Loan Repayment is included under this goal. 6 Goal Name Economic Development Assistance Goal Provide technical assistance and additional support to small and micro businesses in the Description City of Newport Beach to provide job support and fulfill economic needs of low- and moderate -income residents. I able 58 — Goal Description Newport Beach 2021-2022 Action Plan Introduction To address the high priority needs identified in the Strategic Plan, the City of Newport Beach will invest CDBG funds in projects that develop provide fair housing services, provide services to low- and moderate -income residents, prevent homelessness and strengthen economic opportunities. Together, these projects will address the needs of low- and moderate -income Newport Beach residents. The Fair Housing Services project will provide fair housing assistance to an estimated 125 moderate -income people, the Public Services project will provide assistance to an estimated 100 presumed low-income elderly people, the Homeless Services project will provide services to an estimated 24 presumed low-income people, and the Economic Development Assistance project will technical assistance services to an estimated 3 small businesses. Table 59 - Project Information # Project Name I Program Administration 2 Fair Housing Services 3 Public Services 4 Homeless Services 5 Public Facilities and Infrastructure Improvements 6 Economic Development Assistance Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating a majority of its non -administrative CDBG funds for program year 2020-2024 to projects and activities that benefit low- and moderate -income people throughout the City. The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack of funding from federal, state, and other local sources and the high cost of housing that is not affordable to low- income residents. To address these obstacles, the City is investing CDBG funds through the 2021-2022 Action Plan in projects that provide public services to low- and moderate -income people and projects that prevent homelessness as well as strengthen economic opportunities for the low- and moderate -income residents of Newport Beach. Newport Beach 2021-2022 Action Plan AP -38 Project Summary Project Summary Information I Project Name Program Administration Target Area Citywide Goals Supported All Needs Addressed All Funding CDBG: $65,194 Description Effective and cost-efficient implementation of the CDBG program. Target Date 6/30/22 Estimate the number and type offamilies that will benefit from the proposed activities N/A Location Description Citywide Planned Activities Program Administration: $65,194 2 Project Name Fair Housing Services Target Area Citywide Goals Supported Fair Housing Services Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $12,000 Description Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti -discrimination and landlord - tenant mediation services. Target Date 6/30/2022 Estimate the number and type offamilies that will benefit from the proposed activities Approximately 125 people will benefit from the proposed activity. Location Description Citywide. Planned Activities Fair Housing Services: (125 people) $12,000 Newport Beach 2021-2022 Action Plan 3 Project Name Public Services Target Area Citywide Goals Supported Public Services Needs Addressed Provide public services for low- and moderate -income residents Funding CDBG: $30,000 Description Provide public services for low- and moderate -income residents. Target Date 6/30/2022 Estimate the number and typeoffamilies that will benefit from the proposed activities Approximately 100 people will benefit from the proposed activities. Location Description Citywide. Planned Activities Age Well Senior Services: Home Delivered Meals (100 people) $30,000 4 Project Name Homeless Services Target Area Citywide Goals Supported Homeless Services Needs Addressed Prevent and eliminate homelessness Funding CDBG: $27,896 Description Provide funding to community-based organizations who offer critical services for homeless and other special needs populations as determined via a competitive application. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Approximately 25 people will benefit from the proposed activities. Location Description Citywide. Newport Beach 2021-2022 Action Plan Newport Beach 2021-2022 Action Plan Planned Activities City Motel Voucher Program (13 people) $11,896 Families Forward: (12 people) $16,000 5 Project Name Public Facilities and Infrastructure Improvements Target Area Citywide Goals Supported Public Facilities and Infrastructure Improvements Needs Addressed Address material barriers to accessibility and improve public facilities and infrastructure Funding CDBG: $250,884 Description Section 108 Debt Service and Modifications to Shelter. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Other: I Modifications to Shelter: I Location Description Citywide Planned Activities Section 108 Loan Repayment - $202,387 Shelter- - $48,497 6 Project Name Economic Development Assistance Target Area Citywide Goals Supported Economic Development Assistance Needs Addressed Economic Development Funding $250,371 (2020-21 funds) Description Economic development assistance Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Businesses assisted: 3 Location Description Citywide Planned Activities Economic Development Assistance (TBD) Newport Beach 2021-2022 Action Plan AP -50 Geographic Distribution - 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Based on evaluation of CPD Maps data, there are no areas within the City exhibiting a greater level of need for affordable housing or services for low- and moderate -income residents and there were no areas of the City containing minority concentrations; therefore, no geographic priorities were established within the Consolidated Plan and allocation priorities will be driven by citywide need. All CDBG funds will be directed toward activities benefitting low- and moderate -income residents citywide. The only exception to this approach would be for CDBG projects that are qualified on a low- and moderate - income area basis where a specific proportion of the residents within the service area must be low- and moderate -income residents. Geographic Area Table 60 - Geographic Priority Areas Citywide Newport Beach will allocate resources across the City based on need and eligibility Rationale for the priorities for allocating investments geographically The City s investments in Fair Housing Services, Public Services and Homelessness Prevention Services projects are based on a citywide geography because individuals in need of these services may live anywhere within the jurisdiction—particularly services for seniors and homeless individuals. Discussion Based on the Strategic Plan, the City is allocating 100 percent of its non -administrative CDBG funds for program year 2021-2022 to projects and activities that benefit low- and moderate -income people. Newport Beach 2021-2022 Action Plan AP -55 Affordable Housing - 91.220(g Introduction The City of Newport Beach will look at using non-CDBG local, state, and federal funding sources to develop new housing units. Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate -income households is a cost-effective way to invest limited non-CDBG resources to retain existing housing units that are already affordable to low- and moderate -income households in the community. Additionally, rehabilitation will assist in resolving housing problems that residents face throughout Newport Beach. Addressing substandard housing conditions through housing preservation activities ensures that all economic segments of the community have the opportunity to live in decent housing that meets local standards. Expand the Supply of Affordable Housing Based on evaluation of 2011-2015 ACS and CHAS data, there is a need for additional rental housing units affordable for households earning less than 50 percent of AMI. Of the households earning 0-80 percent of AMI, 8,943 are cost burdened households — meaning households paying more than 30 percent of their income for housing. Additionally, 6,614 of the cost burdened households are considered severely cost burdened households — meaning that they pay more than 50 percent of their income for housing. Of the 4,410 severely cost burdened households, 3,580 are renters. Of those severely cost burdened renter households, 3,320 households earn less than 50 percent of AMI and are considered the most at risk of becoming homeless. The City will continue to use its Affordable Housing Trust Fund and other available options under the State Density Bonus law to create additional affordable housing. The City is also currently working to update its General Plan Housing Element for the 6Lh Cycle Regional Housing Needs Assessment (RHNA) allocation, which is 4,845 new housing units. Of that number, 70 percent are required to be affordable to very -low, low- and moderate -income households. In order to accommodate that requirement, the City is exploring new policies to encourage production of affordable housing in the 2021-2029 planning period. Preserve the Supply of Affordable Housing As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to allow them to remain safe and habitable. The situation is of particular concern for low- and moderate -income homeowners who are generally not in a financial position to properly maintain their homes. The age and condition of Newport Beach's housing stock is an important indicator of potential rehabilitation needs. Commonly, housing over 15 years of age will exhibit deficiencies in terms of paint, weatherization, heating / air-conditioning systems, hot water heaters and finish plumbing fixtures. Housing over 30 years of age will typically some form of major rehabilitation, such as roof replacement, foundation work and plumbing systems. According to CHAS data showing the year that housing units were built categorized by owner and renter tenure: Newport Beach 2021-2022 Action Plan • 5,680 or 27 percent of the 20,920 owner -occupied housing units built between 15 and 34 years ago (built between 1980 and 1999). • 11,905 or 57 percent of the 20,920 owner -occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). • 4,745 or 28 percent of the 17,160 renter -occupied housing units in Newport Beach were built between 15 and 34 years ago (built between 1980 and 1999). • 10,930 or 63 percent of the 17,160 renter -occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate - income households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable to low- and moderate -income households in the community. Addressing substandard housing conditions through housing preservation activities ensures that all economic segments of the community have the opportunity to live in decent housing that meets local standards. Table 61 - One Year Gnats fnr Affnrrlahla Hni mina by Ci innnrt Rani iir-tc One Year Goals for the Number of Households to be Supported Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 0 Acquisition of Existing Units 0 Table 62 - One Year Gnals fnr Affnrdnhla Hniicina by r ­ rt Tvna One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 0 Rehab of Existing Units 0 Acquisition of Existing Units 0 Total 0 Discussion The Strategic Plan identifies a high priority need to expand the supply of affordable housing. However, the City will use other funding sources and methods to create affordable housing opportunities such as the Affordable Housing Trust Fund and the State Density Bonus law. As mentioned previously, the City is also exploring new affordable housing policies as part of its Housing Element update that would encourage the production of new affordable units. Newport Beach 2021-2022 Action Plan AP -60 Public Housing - 91.220(h) Introduction The Newport Beach Housing Authority does not administer Section 8 and does not own HUD Public Housing. Newport Beach is within the service area of the Orange County Housing Authority (OCHA) for the purposes of Section 8 and Public Housing. The data presented in the tables below is for Newport Beach and the narrative responses address the needs for the entire county, with specific references to the City of Newport Beach. Actions planned during the next year to address the needs to public housing. In the upcoming five years, OCHA's goals are • Apply for additional housing assistance funding and programs that may become available. • Explore the use of Project -Based Housing Choice Vouchers or other housing funds to promote the construction or acquisition activities that will result in additional units or developments that will serve special needs populations. • Ensure consistent quality of assisted housing services by maintaining high performer status in Section Eight Management Assessment Program (SEMAP) scores. • Promote Family Self -Sufficiency incentives and homeownership opportunities for Housing Choice Voucher participants in partnership with local programs and related service providers. • Expand assisted housing choices by conducting outreach efforts to increase the number of property owners and their participation in housing assistance programs. • Identify and utilize technology to enhance operational effectiveness and efficiency in delivery of housing assistance services. Actions to encourage public housing residents to become more involved in management and participate in homeownership. OCHA supports resident councils and actively seeks input from PHA residents on the management and implementation of OCHA policies and procedures. Housing prices in Orange County are so high that homeownership opportunities are limited for OCHA residents. On a limited basis, OCHA has partnered with Habitat for Humanity to provide two affordable homeownership units, but these types of efforts are limited. OCHA also manages a Housing Choice Voucher Homeownership Program that it markets to all OCHA program tenants. Newport Beach 2021-2022 Action Plan If the PHA is designated as troubled, describe the manner- in which financial assistance will be provided or other assistance Not applicable. OCHA is designated as a High Performing PHA. Discussion Newport Beach continues to support OCHA in effective administration of its limited affordable housing resources. The City also continues to work with OCHA to include the residents with Section 8 Housing Choice Vouchers in the federally funded programs administered by the City, including any homeownership programs. Newport Beach 2021-2022 Action Plan 15 AP -65 Homeless and Other Special Needs Activities - 91.220(i Introduction The City will invest CDBG funds during the 2021-2022 program year to address high priority needs identified in the 2020-2024 Consolidated Plan including preventing homelessness and providing public services to homeless populations. Homelessness Prevention Services According to the results of the most recent data available from the bi-annual Point -In -Time Homeless Count (PIT Count) held on January 22, 2019, on any given night in Orange County, approximately 6,860 people are homeless. To address incidences of homelessness in Newport Beach and to prevent extremely -low income Newport Beach families from becoming homeless, the City places a high priority on programs that work to prevent homelessness or rapidly assist homeless individuals living in the community. To address this need, the City will support CDBG public service activities that help prevent homelessness and that provide a structured path to stable housing for individuals and families who become homeless. Services for Residents with Special Needs Analysis of available data and consultation with organizations providing services for special needs populations revealed a need for a range of additional services including, but not limited to, those concerned with domestic violence, human trafficking, mental disabilities, physical disabilities, developmental disabilities, substance abuse/alcoholism and HIV/AIDS that may be addressed by non-profit organizations. Non-profit organizations currently exist to fulfill some of these needs of individuals. Organizations such as Human Options, an Orange County -based non-profit that provides assistance to individuals experiencing domestic violence. Laura's House provides emergency shelter to women and children fleeing domestic violence situations. Radiant Health Centers provides services for those with HIV/AIDS such as free HIV and Hepatitis C testing. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs To reach out to unsheltered homeless persons and assess their individual needs for the purpose of connecting them with available emergency shelter and transitional housing resources, the City of Newport Beach, through its Planning Division will provide information and referrals — primarily to 2-1-1 Orange County. Additionally, to reduce and end homelessness, the City of Newport Beach will provide CDBG public service funds to the following activities: • Families Forward: Housing Program (12 people) • Newport Beach Motel Voucher Program (13 people) Newport Beach 2021-2022 Action Plan Addressing the emergency shelter- and transitional housing needs of homeless persons To address the emergency shelter and transitional housing needs of homeless persons, the City supports the Families Forward Housing Program that provides transitional housing, counseling, and case management to families at risk of homelessness. Each year, Families Forward serves approximately 12 additional unduplicated people because of CDBG funding. In addition, the City will support a City -run motel voucher program to assist 13 homeless individuals. Other organizations in the Continuum of Care (CoC) addressing the emergency shelter and transitional housing needs of homeless persons include City Net, Orange Coast Interfaith Shelter, Orange County Rescue Mission and WISEPlace. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. To address the needs of homeless families, families with children, veterans and their families, the City supports the Families Forward Housing Program, which provides transitional housing, counseling, and case management to families at risk of homelessness. Each year, Families Forward serves approximately 12 unduplicated people through its transitional housing program. When paired with financial counseling, career coaching and other available case management services, Families Forward makes certain that families are ready to succeed in their transition to permanent housing. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The Orange County CoC Ten Year Plan to End Homelessness included a goal to establish countywide protocols and procedures to prevent people from being discharged from public and private institutions of care into homelessness that will help decrease the number of persons being discharged into homelessness. The CoC is seeking improve coordination among publicly and privately funded institutions of care and local service agencies in the County of Orange in order to decrease the number of persons being discharged into homelessness annually. City Net is an organization that coordinates outreach among homeless service providers in the county with vulnerable homeless neighbors. City Net collects data for a Homeless Services Dashboard Report with frequent Newport Beach 2021-2022 Action Plan meetings on how to improve public services that enables organizations in Newport Beach to better coordinate their efforts and leverage key synergies. Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith -based groups. Consistent with this approach, the City of Newport Beach supports the efforts of Orange County Continuum of Care (CoC) and its member organizations that address homelessness throughout Orange County. In alignment with this strategy, the City will use CDBG funds to support local service providers with programs to prevent homelessness and to expand the supply of affordable housing in Newport Beach for low- and moderate -income residents. Discussion The City of Newport Beach considers ending and preventing homelessness a high priority and will support CDBG public service activities that help prevent homelessness and that provide a structured path to stable housing for individuals and families who become homeless. Newport Beach 2021-2022 Action Plan AP -75 Barriers to affordable housing - 91.220(, Introduction: A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful. Based on information gathered during community meetings, the Consolidated Plan Needs Assessment Survey, the 2014-2021 Housing Element and market analysis, the primary barriers to affordable housing in Newport Beach are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand. For low- and moderate -income households, finding and maintaining decent affordable housing is difficult due to the high cost of housing in Newport Beach and throughout the region in general. Over 20 percent of the City's 38,075 households experience a cost burden or severe cost burden, meaning that they pay more than 30 or 50 percent of their income for housing, respectively. Consistent with available data, responses to the 2020-2024 Consolidated Plan Needs Assessment Survey indicate a high need for additional affordable housing in Newport Beach. Actions planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In the development of the 2014-2021 Housing Element, the City evaluated significant public policies affecting affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges and growth limitations. Based on this evaluation, the City determined that it has taken all appropriate and necessary steps to ameliorate the negative effects of public policies that may have been a barrier to affordable housing. Moreover, the City will continue to use its Affordable Housing Trust Fund to fund future affordable housing projects. These public policies will also be evaluated for the 2021-2029 Housing Element and new policies may be introduced. Discussion: To address housing affordability and the lack of monetary resources for affordable housing, the City will invest Affordable Housing Trust Fund resources to incentivize the development of affordable housing during the five- year period of the Consolidated Plan. In addition, the City will continue to work with the County and refer low- and moderate -income residents for participation in their Housing Rehabilitation Program. City Net has Newport Beach 2021-2022 Action Plan supported resident referrals by coordinating connections between low- and moderate -income residents and applicable support networks. Newport Beach 2021-2022 Action Plan AP -85 Other Actions - 91.22iC'_" Introduction: In the implementation of the 2021-2022 Annual Action Plan, the City will invest CDBG resources to address obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional structure and enhance coordination between public and private social service agencies. Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack of funding from federal, state, and other local sources, and the high cost of housing that is not affordable to low- income people. To address these obstacles, the City is investing CDBG funds through the 2021-2022 Action Plan in projects that provide assistance to those with special needs, projects that prevent homelessness, and strengthen economic opportunities for low- and moderate -income residents. To address underserved needs, the City is allocating 100 percent of its non -administrative CDBG investments for program year 2021-2022 to projects and activities that benefit low- and moderate -income people or people presumed under HUD regulations to be low- and moderate -income. Actions planned to foster and maintain affordable housing In the implementation of the 2021-2022 Annual Action Plan, the City will continue to look at alternate funding sources and programs to preserve and maintain existing affordable housing such as the County's Residential Rehabilitation Program. Actions planned to reduce lead-based paint hazards The City of Newport Beach does not currently implement a Residential Rehabilitation Program, however if they are to implement such a program in the future, the City will disseminate brochures provided by the U.S. Environmental Protection Agency to all applicants as part of the transmittal of the program application. Any unit receiving assistance through the program that was built prior to January I, 1978 will be tested for lead- based paint. If lead-based paint is present, appropriate abatement procedures are implemented as part of the rehabilitation contract consistent with the requirements of 24 CFR Part 35. Actions planned to reduce the number of poverty -level families The implementation of activities funded with other non-CDBG federal, state and local resources will support the City's effort in reducing the number of poverty -level families by: • Supporting activities that expand the supply of housing that is affordable to low- and moderate - income households, including investment of the City's Housing Trust Fund resources and using the State Density Bonus law to incentivize the development of additional affordable housing units; Newport Beach 2021-2022 Action Plan Supporting a continuum of housing and public service programs to prevent and eliminate homelessness; • Supporting housing preservation programs that ensure low income households have a safe, decent and appropriate place to live; and • Supporting public services through various nonprofits funded by CDBG that serve the community's youth, seniors, families and those with special needs. In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide a pathway out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and Medi -Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence and mental illness. Actions planned to develop institutional structure The institutional delivery system in Newport Beach is high -functioning and collaborative — particularly the relationship between local government and the nonprofit sector comprised of a network of capable community-based organizations that are delivering a full range of services to residents. Organizations such as City Net coordinate housing support groups to increase coordination and leverage key synergies to improve resident outcomes. Affordable housing development and preservation activities will be carried out by the Planning Division of the Community Development Department in partnership with other agencies. Public service activities will be carried out by nonprofit organizations to achieve the Strategic Plan goals. The Planning Division and the Engineering Department will work together with contractors to implement public facility improvement projects. One of the keyways the City is developing and expanding institutional structure to meet underserved needs is by funding a wide variety of services targeted to seniors, special needs populations and individuals or families at risk of homelessness with CDBG public service grants. Actions planned to enhance coordination between public and private housing and social service agencies To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate -income residents in Newport Beach. Newport Beach 2021-2022 Action Plan Discussion In the implementation of the 2020-2024 Consolidated Plan, the City will invest CDBG resources to address obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional structure and enhance coordination between public and private social service agencies. Newport Beach 2021-2022 Action Plan AP -90 Program Specific Requirements - 91.220(l) (1,2,4 ) Introduction: In the implementation of programs and activities under the 2021-2022 Annual Action Plan, the City of Newport Beach will follow all HUD regulations concerning the use of program income, forms of investment, overall low - and moderate -income benefit for the CDBG program. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(1)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5. The amount of income from float -funded activities 0 Total Program Income: 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one,two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100.00% Newport Beach 2021-2022 Action Plan Discussion: In the implementation of programs and activities under the 2021-2022 Annual Action Plan, the City of Newport Beach will follow all HUD regulations concerning the use of program income, forms of investment, overall low - and moderate -income benefit for the CDBG program. Newport Beach 2021-2022 Action Plan n Tv ��LIFORN�1 2021/2022 ANNUAL ACTION PLAN JULY 1, 2021 THROUGH JUNE 30, 2021 APPENDIX A Citizen Participation 2021/2022 ANNUAL ACTION PLAN JULY I, 2021 THROUGH JUNE 30, 2022 APPENDIX B SF 424 Forms and Certifications STATE OF CALIFORNIA COUNTY OF ORANGE ss. CITY OF NEWPORT BEACH I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2021-35 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 27th day of April, 2021; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 28th day of April, 2021. dw�a,sovll_� Leilani I. Brown City Clerk Newport Beach, California