HomeMy WebLinkAboutHousing Element _August 2003HOUSING ELEMENT
August 2003
Adopted by the Newport Beach City Council
August 13,2003
General Plan Amendment No. GP2003-004
Resolution No. 2003-45
Amended April 12, 2005
City of Newport Beach
Housing Element
City Council
Steven Bromberg, Mayor
Tod W. Ridgeway, Mayor Pro Tem
Gary Adams, Council Member
John Heffernan, Council Member
Dick Nichols, Council Member
Gary L. Proctor, Council Member
Don Webb, Council Member
Planning Commission
Steven Kiser, Chairman
Earl McDaniel, Vice Chairman
Edward Seliich, Commissioner
Michael Toerge, Commissioner
Larry Tucker, Commissioner
Affordable Housing Task Force
Mayor Steven Bromberg
Mayor Pro Tem Tod Ridgeway
Council Member Don Webb
City Staff
Sharon Wood, Assistant City Manager
Patricia Temple, Planning Director
Tamara Campbell, AICP, Senior Planner
Daniel Trimble, Program Administrator
Robert Kain, Assistant Planner
EXECUTIVE SUMMARY
The Year 2000 Housing Element is an update and revision of the 1992 Element, and
consists of new technical data, revised goals, updated policies, and a series of programs
and implementing measures. The Element is designed to facilitate attainment of the
City's Regional Housing Needs Allocation, and to foster the availability of housing
affordable to all income levels to the extent possible given Newport Beach's constraints.
Newport Beach is committed to achieving its housing goals and continues to encourage
the development of additional housing units, wherever and whenever feasible. Since the
1992 Housing Element adoption, the City collected over $2,560,000 in affordable housing
in-lieu fees. Use of these fees and the subsequent construction of new affordable units is
a high priority of the City Council. To identify the most appropriate use of these funds and
to facilitate development of new affordable housing, the City Council established an
Affordable Housing Task Force to work with developers and landowners. The Task Force
and staff continually investigate and research potential affordable housing opportunities.
RHNA and City Responsibility
The City has accepted, and is committed to meeting, its RHNA allocation of providing 476
housing units during the Housing Element planning period. Achieving the RHNA is
expected through development of 3 specific sites: 1) Newport/Banning Ranch, 2)
Avocado/MacArthur, and 3) Bayview Landing. Additional opportunities also exist on infill
sites as illustrated on Figure 4 in the document.
With the annexation of Newport Coast, an additional commitment of providing 945 units is
also part of our Housing Plan. The RHNA allocation for Newport Coast was accepted by
the City through annexation negotiations with the County of Orange. The City will fulfill its
obligation by implementing plans for Newport Coast approved by Orange County, and
monitoring newly constructed affordable units that were permitted by the County prior to
the annexation.
Constraints and Opportunities
The City is constricted in its effort to provide new housing opportunities due to many
factors beyond its control. For example, the City is almost completely built out, with very
little vacant land available for new housing construction. Not only does this situation
provide limited opportunity for new construction but, because there are no new
subdivisions anticipated, there are very few opportunities to apply inclusionary housing
requirements. Furthermore, any remaining vacant parcels are extremely expensive due
to the real estate market and the demand for coastal properties. Still another constraint
is that the City does not have a Redevelopment Agency, which in turn means that
Newport Beach does not have the resource of housing set-aside funds, nor the power to
assemble property through eminent domain.
Despite these constraints, the City will continue to research the most effective ways to
spend its $2.5 million dollars of in-lieu funds, and will continue to work with developers to
construct new affordable housing units at the Banning Ranch, Bayview Landing and
Avocado/MacArthur sites and to identify potential sites for infill or redevelopment with
affordable housing.
Focus of Housing Programs
Following are the housing programs that Newport Beach believes will be the most
effective in meeting the City's housing goals. These programs will be the focus of the
City's housing efforts during the period of this Housing Element.
1) Actively encourage the development of affordable housing on the above-
mentioned sites and will assist developers with the removal of site constraints.
2) Continue to research sites and developments that could include affordable
housing, including Newport Coast and other annexation areas and infill and
redevelopment opportunities.
3) Discuss the extension of affordability covenants with owners of existing affordable
apartments.
4) Offer incentives to developers of affordable housing, including density bonuses,
fee waivers, expedited permit processing and the use of in-lieu fees.
5) Participate with regional agencies (Orange County) to develop affordable housing
programs, including a joint powers agreement for a lease/purchase program, on a
regional basis.
CITY OF NEWPORT BEACH HOUSING ELEMENT
TABLE OF CONTENTS
INTRODUCTION
COMMUNITY HOUSING MARKET ANALYSES
HOUSING STOCK CHARACTERISTICS
HOUSING UNIT PROJECTIONS
POPULATION TRENDS
HOUSEHOLD CHARACTERISTICS
EMPLOYMENT TRENDS AND PROJECTIONS
SPECIAL NEEDS POPULATION GROUPS
HOUSING NEEDS
INVENTORY OF LAND SUITABLE FOR RESIDENTIAL DEVELOPMENT
ENERGY CONSERVATION OPPORTUNITIES
NON-GOVERNMENTAL CONSTRAINTS
GOVERNMENTAL CONSTRAINTS
HOUSING PLAN:
GOALS, POLICIES, QUANTIFIED OBJECTIVES, ANI? PROGRAMS
1992 HOUSING ELEMENT REVIEW
HOUSING ELEMENT GENERAL REVIEW
HOUSING ELEMENT COASTAL ZONE REVIEW
YEAR 2000-2005 HOUSING PLAN
APPENDIX
1
5
5
17
19
23
28
29
38
40
50
51
53
61
62
63
65
66
ApPENDIX 1: LIST OF CDBG PROJECTS (1996-2001) 79
ApPENDIX 2: SOCIAL SERVICE PROGRAMS 82
ApPENDIX 3: ORGANIZATIONS SERVING THE HOMELESS 87
ApPENDIX 4: PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR
HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES 92
ApPENDIX 5: PUBLIC AND PRIVATE NON-PROFITS 98
ApPENDIX 6: HOUSING ELEMENT AMENDMENTS 103
LIST OF TABLES
TABLE 1: NET ADDITIONAL AND TOTAL HOUSING UNITS, 1980 -2000 5
TABLE 2: HOUSING UNIT MIX (2000) 6
TABLE 3: RESIDENTIAL DENSITY By AREA 6
TABLE 4: DENSITIES OF ATTACHED HOUSING 7
TABLE 5: HOUSING TENURE 8
TABLE 6: PERCENT OF RENTER OCCUPIED UNITS 8
TABLE 7: MAJOR RENTAL PROJECTS 9
TABLE 8: CONDOMINIUM CONVERSION, 1990(5) -2000 10
TABLE 9: NEWPORT BEACH -OVERALL HOUSING UNIT
VACANCY RATE (1980-1990) 10
TABLE 10: CITY RENTAL APARTMENT VACANCY COMPARISON, 1991 -1996 11
TABLE 11: MOBILE HOME PARKS 13
TABLE 12: CITY OF NEWPORT BEACH ASSISTED HOUSING ANALYSIS 15
TABLE 13: POPULATION TRENDS, 1980 -2000 18
TABLE 14: HOUSING TRENDS, 1980 -2000 18
TABLE 15: POPULATION GROWTH, ORANGE COUNTY AND
NEWPORT BEACH: 1910 -2010 19
TABLE 16: PERSONS PER OCCUPIED UNIT (1970 -2000) 20
TABLE 17: POPULATION By AGE, CITY OF NEWPORT BEACH: 1970 -1998 21
TABLE 18: SCHOOL ENROLLMENT, 1970 -2000 21
TABLE 19: RACIAL AND ETHNIC COMPOSITION 23
TABLE 20: RACIAL AND ETHNIC COMPOSITION (NEWPORT COAST) 24
TABLE 21: HEAD OF HOUSEHOLD BY ETHNICITY -NEWPORT BEACH AND
ORANGE COUNTY, 1990 25
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TABLE 22: MEDIAN HOUSEHOLD INCOMES (1980 -1990)-
ORANGE COUNTY AND NEWPORT BEACH 25
TABLE 23: INCOME GROUP HOUSING EXPENDITURE, 1990 26
TABLE 24: EMPLOYMENT -NEWPORT BEACH AND ORANGE COUNTY 28
TABLE 25: UCI OFF-CAMPUS HOUSING OFFICE HOUSING COSTS FOR
NEWPORT BEACH -2000 30
TABLE 26: PERSONS PER HOUSEHOLD 32
TABLE 27: PROJECTED REGIONAL DEMAND IN NEWPORT BEACH, 1998 -2005 38
TABLE 28: TOTAL CONSTRUCTION NEED By INCOME, 1998 -2005 39
TABLE 28.5 TOTAL CONSTRUCTION NEED By INCOME (NEWPORT COAST) 39
TABLE 29: UNDEVELOPED RESIDENTIAL SITES 41
TABLE 30: "REPLACEMENT" AND "INFILL" HOUSING IN NEWPORT BEACH 47
TABLE 31: SUMMARY OF ZONING CODE PROVISIONS BY DISTRICT-
CITY OF NEWPORT BEACH 55
TABLE 32: COMPARISON OF PERMIT FEES-
NEARBY JURISDICTIONS -JANUARY, 2000 59
TABLE 33: RESIDENTIAL DEVELOPMENT IMPACT FEES IN NEWPORT BEACH 59
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INTRODUCTION
Newport Beach General Plan
California Stale General Plan guidelines indicate the role of a General Plan is to establish a
document that will act as a 'constitution' for development, the foundation upon which all land
use decisions are to be based. A General Plan is required to express community
development goals and to embody public policy relative to the distribution of future land use,
both public and private."
State law also requires a General Plan to include seven specific elements: Land Use;
Circulation; Conservation; Open Space; Noise; Safety; and Housing. In addition to these
seven elements, the Newport Beach General Plan includes a Growth Management Element,
a Harbor and Bay Element, and a Recreation component in the Open Space Element.
The Newport Beach General Plan is a comprehensive statement of what Newport Beach
conceives to be in its best interest. The General Plan expresses in graphic and narrative
formats the organization of physical, economic, and social resources to create a healthy and
functional living environment for City residents while managing future growth and change.
Newport Beach Housing Element
The California State Legislature has identified that the major housing goal of the State is the
attainment of a decent home and suitable living environment for every California resident. In
1980, the Legislature added Article 10.6 to the Government Code and incorporated into law
specific Housing Element Guidelines promulgated by the California Department of Housing
and Community Development. This was the second revision to the original (June 17, 1971)
Housing Element Guidelines. The 1980 revision was made in recognition of the significant
role local planning programs played (and continue to play) in pursuit of the State goal and to
assure local planning effectively implements State housing policy.
The State Government Code specifies the Legislature's intent to ensure counties and cities
are active participants in attaining the State housing goal and establishes specific
components to be contained in a housing element. These components include the following:
identification and analysis of existing and projected housing needs, resources and
constraints; a statement of goals, policies, quantified objectives, and scheduled programs for
preservation, improvement and development of housing; identification of adequate sites for
housing; and adequate provision for existing and projected needs of all economic segments
of the community.
The Newport Beach Housing Element has been composed in a consistent and mutually
dependent relationship with other Elements of its General Plan. Furthermore, the Element is
in conformance with Government Code Sections §65580 -§65589.
The year 2000 updated Housing Element is a comprehensive statement of the City's housing
policies and serves as a specific guide for implementation of these pOlicies. The Element
examines current housing needs, estimates future housing needs, and establishes goals,
policies, and programs pertaining to those needs. Housing programs are responsive to
current and future needs. They are also constructed within the context of available
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community, State and federal economic and social resources, and realistic quantified
housing objectives. State housing goals are as follows:
Availability of housing is of vital statewide importance. Early attainment of decent
housing and a suitable living environment for every California family is a priority of the
highest order.
Early attainment of this goal requires cooperative participation of government with the
private sector to expand housing opportunities and accommodate housing needs of
Californians of all economic levels.
• Provision of housing affordable to low-and moderate-income households requires
cooperation among all levels of government.
Local and State governments have a responsibility to use powers vested in them to
facilitate improvement and development of housing to make adequate provision for
housing needs of all economic segments of the community.
The Legislature recognizes in carrying out this responsibility, each local government
also has a responsibility to consider economic, environmental and fiscal factors, and
community goals set forth in its general plan. Cities must cooperate with other local
governments and the State in addressing regional housing needs.
California State law requires that Housing Elements be updated at least every five (5) years.
The City of Newport Beach has prepared the following updated Housing Element in
compliance with the established (extended) 2001 deadline for jurisdictions within the
Southern California Association of Governments region.
Newport Coast Annexation
On January 1 2002, the City incorporated over 7,700 acres of the land between its southern
boundary and the City of Laguna Beach. The updated year 2000 Housing Element was
drafted prior to the annexation of Newport Coast and therefore does not include a detailed
analysis of the area's demographics or an inventory of vacant lands suitable for new
affordable housing. Census data is not available for Newport Coast since it was developed
after the 1990 Census. However, wherever possible, data pertaining to Newport Coast has
been included in this Element. A more comprehensive update will be initiated at the time of
the next Housing Element Update. It should be noted that information on the number of
dwelling units, average household size and population as of January 2002 has been
included. In addition, the Regional Housing Needs Assessment figures for Newport Coast
have been included as well as a discussion of the proposed programs intended to achieve
affordable housing goals for the area.
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Data Sources
Various sources of information have been consulted in preparing this Housing Element. The
1990 U.S. Census provides the basis for population and household characteristics. Although
the 2000 U.S. Census has been completed, at the time this element was prepared, the most
pertinent demographic information had not yet been released to the public. Therefore, the
1990 Census remains the most comprehensive and widely accepted source of information
on demographic characteristics. Furthermore, the 1990 U.S. Census must be used in this
Housing Element to ensure consistency with Regional, State, and Federal housing plans.
The following sources of information have been used to supplement and update information
contained in the 1990 U.S. Census:
Population and demographic data from the State Department of Finance.
School enrollment information from the State Department of Education and the
Newport-Mesa Unified School District.
Housing market information, such as home sales, rents and vacancies, as updated by
City surveys and property tax assessor files.
Local and County public and nonprofit agency information on special needs
populations, available services, and systemic failures.
• Housing condition information provided by the City of Newport Beach.
Orange County Progress Report (2000) demographic information.
Organization of the Housing Element
This Housing Element has been divided into two sections as follows:
I. Community Housing Market Analyses
This section presents the most current available information pertaining to the
following seven subsections: housing stock conditions, household characteristics
including over-paying, over-crowding, and; analysis and projection of population and
employment; analysis of special population groups; analysis of housing need;
inventory of land suitable for residential development; analysis of opportunities for
energy conservation; non-governmental constraints to housing production; and
governmental constraints to housing production.
II. Housing Goals and Policies, Quantified Objectives, and Programs
This section has three primary functions: 1) to establish City housing goals and
policies; 2) to quantify the maximum number of housing units that can be constructed,
rehabilitated, and conserved over the five year period between January, 2000 and
January, 2005; and 3) to present City housing programs, which represent a five-year
schedule of actions to be implemented by the City to achieve goals, policies, and
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quantified objectives of the Housing Element. Government Code Section §65588
requires the review of the Housing Element as frequently as appropriate and to
evaluate effectiveness of housing goals, objectives, and policies in contributing to
attainment of the State housing goal. Additionally, the City is required to evaluate
effectiveness of the Housing Element in attainment of community goals and
objectives and its progress in implementation of its housing goals. This section
provides the required review and evaluaflon of the 1989 -1994 Housing Element.
Public Participation
Opportunities for residents to recommend strategies for, and review and comment on the
Newport Beach Housing Element have been an important component of Housing Element
preparation. The Planning Commission conducted a study session on June 21, 2001 after
reviewing a draft of the updated element. Notification of the study session was posted at
various locations throughout the community and a Y. page ad was placed in the local
newspaper inviting the public to attend. In addition, copies of the Element were made
available for review at various locations such as City Hall, the numerous libraries and the
Newport Mesa Unified School District offices. Notification was also sent to individuals and
interest groups listed in the appendix as well as Homeowner Associations and major known
developers. A copy of the draft was sent to the State Department of Housing and
Community Development after comments from the Study Session were incorporated into the
draft.
After review and preliminary approval of the draft by HCD, the document will be circulated to
the City's General Plan Update Committee and the General Plan Advisory Committee.
Public hearings will be held before the Newport Beach Planning Commission and the
Newport Beach City Council for final adoption. The City will then submit the approved
Housing Element to HCD for certification. Prior to all public hearings, notification will once
again be published in the local newspaper and will again be provided by mail to individuals
and interest groups listed in the appendix. In addition, the City will again send notice to
Homeowner Associations and major known developers also identified in the appendix.
Copies of the Draft will again be made available for public review at Newport Beach City
Hall, all public libraries in the City and the Newport-Mesa Unified School District
administrative office. The document will also be posted on the City's website.
Time Period Covered by the Housing Element
This revised Housing Element covers the planning period between the years 2000 to 2005.
Review and Update of the Housing Element
The City of Newport Beach will review this Housing Element annually as part of its General
Plan review to evaluate appropriateness of objectives, effectiveness of programs, and
progress in implementation. The Housing Element will be revised again in 2005 in
accordance with State law.
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I. Community Housing Market Analyses
Housing Stock Characteristics
Residential Growth and Dwelling Unit Types
Between 1980 and 2000, 6,551 housing units were added to the housing inventory in the City
of Newport Beach. This indicates an average yearly increase in the housing stock of
approximately 328 housing units. Since 1990, this rate of increase has slowed. Between
1990 and 2000, an average of 271 housing units per year were added to the hOUSing stock.
Sources: City of Newport Beach
State Department of Finance, Population Research Unit
**Two
5
Total number of housing units as of January 1, 2000, was estimated to be 37,567. Mix and
number of housing of the City according to the Orange County Progress Report 2000 are
shown on Table 2.
Residential Densities
Residential densities in many older neighborhoods in the City of Newport Beach are very high,
according to City figures that were estimated by dividing residential acreage by current dwelling
unit counts. -
6
In addition, many attached housing projects in the City were developed to maximize land usage.
Existing attached projects in the City and their densities are listed in Table 4.
The Colony
The trend toward higher density development within the City also is demonstrated by building
permit data. Since 1980, multi-family permits issued have exceeded single-family permits
issued in the City. This trend is opposite to the State trend, where single-family permits have
exceeded multi-family permits in recent years.
7
Housing Tenure
Tenure of housing in Newport Beach has varied as follows since 1980:
The percentage of rental housing in Newport Beach is higher than the corresponding figure for
Orange County. The latest data comparing rentals from the 1990 Census is as follows:
8
Since 1960, (when only 36% of all occupied units were rented) the percentage of rental housing
increased due to a sizeable amount of new rental construction. New construction subsided
substantially in the 1980's. Table 7 lists the major rental projects in Newport Beach.
In addition, the City contains many rented duplex, triplex, and fourplex units in older
neighborhoods. Areas where this type of rental housing is predominant include West Newport,
Balboa Peninsula, Balboa Island and Corona del Mar.
Since 1990, two major apartment projects were completed, one of which was an apartment
project (Bonita Canyon Apartments) approved by the City of Irvine and constructed in the City of
Newport Beach subsequent to a boundary change between the two cities.
9
Condominium Conversion Ordinance
In the mid-1990s, the City of Newport Beach adopted a new ordinance to ease restrictions on
condominium conversions, Easing restrictions on condominium conversions was intended to
promote the availability of first-time home buyer opportunities and to promote the rehabilitation
and preservation of smaller, more affordable housing units, Many rental units in certain areas of
the community were overcrowded and deteriorating due to absentee owners and the renting of
units on a weekly basis, Health and safety issues were also a concern given quality of life
impacts resulting from excessive noise, pollution and traffic in areas where weekly vacation
rentals were prevalent.
The total number of condominium conversions approved since 1995 is 167 units, The following
table identifies the number of conversions each year between 1995 -2000,
Vacancy Rates
The overall housing unit vacancy rate of the City of Newport Beach varied between 1980 and
1990 as shown in Table 9,
10
The discrepancy between overall vacancy rates and vacancy rates among available units may
be due to the large number of seasonal units and second homes in Newport Beach. According
to the 1990 U.S. Census, 1,207 of 4,001 vacant units were identified as "seasonal use."
To assist in administration of its condominium conversion ordinance, the City has conducted
rental vacancy surveys since 1979. From 1991-1996, this survey included only apartment
vacancies. Results of the most recent surveys and the 2000 Census are provided on Table 10.
Housing Condition
There has not been a comprehensive survey of housing conditions in Newport Beach since the
1976 Special Census for Newport Beach. That survey indicated only 1.3% of all housing units
were deficient. Three neighborhoods in the city contained concentrations of substandard
housing. 5.1 % of all housing units on Balboa Peninsula were in substandard condition, while
2.5% and 2.6% of all units on Balboa Island and in Newport Heights respectively, were in
substandard condition. Deficient units in this regard are defined as deteriorated, dilapidated
units, as well as those units inadequate in original construction, or which were under extensive
repair.
The estimated number of substandard units will not be available to the City until the findings of
the 2000 Census are published. However, it is the consensus of City staff that the condition of
housing in Newport Beach is considered to be very good. During 2000, through its ongoing
code enforcement program, the City Building Department identified only four properties in need
of repair. Extremely high property values and the lack of code enforcement cases indicate that
property owners within Newport Beach are, for the most part, conscientious about maintaining
their properties. Substandard housing does not appear to be a problem for the community at
this point in time.
Illegal Dwelling Units
Illegal or "bootleg" dwelling units have historically been a problem in Newport Beach,
experienced most often in the older, beach-oriented areas of West Newport, Balboa
Peninsula, Balboa Island and Corona del Mar. These units are found in two typical forms:
the "splitting" of a single dwelling unit into two separate occupancies, and the conversion of
garages to living space. These units usually have a higher number of health and safety code
violations than legal units, due to conversion without proper building permits and inspections.
Illegal units continue to be a problem today, but are less prevalent than in the past, due to
increased year round owner occupancy in these areas, and inspections which occur when
properties are sold. While it is difficult to estimate the number of illegal units, code
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enforcement personnel estimate that as much as five percent of the City's housing stock
may be in the form of illegal units. While not considered to be safe and adequate housing,
these units do provide living arrangements that tend to be considered more affordable than
legal units.
Accessory Dwelling Units
The City's Zoning Code includes provisions for "granny units" (accessory, age-restricted
units) which may be approved by the Planning Commission in single and multi-family areas.
Since adoption of the City's "accessory dwelling unit" provisions, 18 age-restricted units have
been authorized and twelve constructed. Since the approval process defined by the Zoning
Code allows for little discretion to deny these requests, the Housing Element includes a
program to make this a staff-level approval in the future.
Mobile Homes
There are presently 972 mobile home spaces in ten (10) mobile home parks in Newport
Beach. Nine of these parks contain 774 spaces occupied by permanent residents. The
remaining homes are occupied by persons who use the units for vacations and weekend
visits to the area. In total, the ten parks house 1,211 permanent residents. Space rents
range from $500 to $3,000 (see Table 11).
The character of the City's ten mobile home parks varies. Three of the parks are located on
or close to Newport Harbor. These three parks appeal to retirees and a sUbstantial number of
spaces in these parks are occupied by permanent residents. Space rents depend on
location of the space in relationship to the Bay and the size of the mobile home. One of
these parks, Bayside Village, is occupied primarily by retired persons, a large portion of
whom have occupied their mobile homes for 20 years or more. It should be noted that
recently, many mobile homes in Cannery Village have been replaced with manufactured
housing that is not affordable to low-income and moderate-income individuals and families.
The State HCD is responsible for issuing permits for mobile home parks. The City of
Newport Beach has notified the State that mobile home units affordable to low-and/or
moderate-income households have been converted, or are in the process of converting to,
market rate status and thereby may lose their affordable status. To date, the State has taken
no action regarding this continuing loss of affordable housing.
Four mobile home parks are located either in West Newport on the north side of Pacific
Coast Highway, in the West Newport Triangle area. Space rents in these parks range
upward from $500 per month. Many of these mobile homes are older, having been in parks
since their development in the 1950s or 1960s.
It should be noted that one mobile home park, the Beach and Bay Mobile Home Park at 7204
W. Coast Highway, appears to be in substantial physical decline and could be subject to
redevelopment or replacement within this planning period.
12
Mobile Home
Park
Total
# of
# of Spaces
Occupied
# of by # of
#of Spacesl Permanent Permanent
Beach Planni
13
Rentl
Assisted Housing Stock
Table 12 identifies developments by project name and address, type of governmental
assistance received, earliest potential date of change from low-income uses to non low-income
uses and total number of elderly and non-elderly units that could be lost from City housing
stock during 2000 -2005. In 1997, the Newport North Apartments converted from affordable
status to market rate status, which caused the loss of affordability of fifty (50) units. Most of the
assisted units shown on Table 13 will not be lost until after 2005. The only units identified as
being a potential loss to market rate rents during the tenure of this Housing Element are the
100 (all one-bedroom) units in the Seaview Lutheran Plaza Assisted Living Apartment
complex. However, this project was approved through a Use Permit process and a condition
of approval mandates that all of these units be for low-income elderly occupants, the segment
of the special needs population most in need of affordable housing.
It is important to note that the Seaview Lutheran project was approved by the City of Newport
Beach as an affordable senior citizen housing facility only; that is, Seaview Lutheran may not
be converted to any other form of use without explicit approval (a new Use Permit or an
amendment to the existing Use Permit) of the City of Newport Beach. Furthermore, Caring
Housing Ministries, the Lutheran Church managing entity of Seaview Lutheran Plaza, has
indicated it has no intention of converting the 100 low-income units to market rate units.
No other inclusionary housing units have expiring long-term use restrictions during the tenure
of this Housing Element.
The City has had policies in effect since the mid-1980's requiring the provision of affordable
housing in association with all new residential developments where more than 4 units are
proposed. Most were provided within new or existing apartment projects. In some cases, an
in-lieu fee was assessed when the provision of housing was not feasible due to the small size
of the development. The City also facilitated the teaming of market rate and affordable housing
developers to produce required affordable housing. Over the last twenty years, this program
has resulted in the provision of 620 affordable units.
14
Housing 2011
Requirement
15
Summary
As of the writing of this Housing Element, the City is almost completely built out with very
limited opportunity for any type of new development This means that residential building
activity consists principally of remodeling and/or the total reconstruction of existing housing
units. In many cases, these projects result in a reduction in the number of rental single-family
dwelling units as residential reconstruction typically results in owner occupancy.
The housing stock within the City of Newport Beach is comprised of a mix of housing types that
cater to a wide spectrum of owners and renters. The City has housing densities and rental
opportunities that are greater than that which can be found in the County as a whole. In
addition, the housing stock is well maintained with very few housing units being classified as
deficient Vacancy rates in the city are adequate to accommodate changes in demand for
housing within the city.
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Housing Unit Projections
Ultimate residential capacity within the City of Newport Beach has been noted in Orange County
Progress Report 2000 to be 41,782 dwelling units within the City limits. The recently annexed
Newport Coast will have an ultimate residential build-out of 5,150 units. These projections are
based on the City General Plan, the City traffic model, the County of Orange, and projections
made by the Center for Demographic Research as part of its Orange County Progress Report
2000. This number will change subsequent to the anticipated annexations of Bay Knolls and
Santa Ana Heights in 2003.
Ultimate residential capacity provides the most accurate means to population projections within
the City. To project population, the following assumptions have been made:
1. Household size was 2.25 persons per household by 2000, according to the Orange
County Progress Report 2000. As housing costs continue to rise, an increasing
number of units may be occupied by unrelated persons who share housing
expenses. Additionally, younger, childless couples within the City eventually will have
children, thus providing some natural population increase and partly offsetting the
historical decline in household size.
2. Vacancy rates will decline as a result of demand for housing and increased price of
housing in Orange County. The California State Department of Finance, Demographic
Research Unit indicated in Orange County Progress Report 2000 the vacancy rate
within the City of Newport Beach was 11.48%, which may be indicative of a highly
seasonal population (vacationers and students). An overall vacancy rate of 10%
through the year 2010 has been projected. This 10% vacancy rate includes seasonal
and migratory units not available for occupancy. The, comparable overall vacancy rate
in 1980 was 12.9%.
3. The Orange County Progress Report assumes that Newport Beach will reach its
ultimate residential build-out by 2010, however some Newport Beach officials disagree.
Population growth will be affected significantly by the assumption regarding average household
size. The Center for Demographic Research has estimated the City of Newport Beach year
2000 population was 75,600. With the addition of Newport Coast. population estimates
increase by an additional 7,000. The Department of Finance estimated the population in 2000
to be 76,772. Department of Finance data for Newport Coast is not available.
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The following tables were created to demonstrate housing and population trends based on past
State Department of Finance estimates. These estimates are supplemented with housing unit
and population projections based on estimates of actual construction. Projections are for the
period covered by this Housing Element, 2000 -2005.
It should be noted that the Orange County Progress Report, 2000 estimated the total number of
households in the City of Newport Beach to be 30,860 (of which 17,207 were owner occupied
and 13,653 were renter occupied). The discrepancy in numbers from that provided by the
Census of Population and Housing may be considered to be caused by different definitions of
"household" used by the Census and the existence of vacant onits.
18
Population Trends
The decades between 1950 and 1970 were years of spectacular growth for Orange County.
In 1950, just over 216,000 persons lived in the County. By 1970, the population had grown
to over 1.4 million. During this time period, the majority of new development occurred in
northern Orange County. Since 1970, Orange County's growth rate has declined
substantially, although it still exceeds the State growth rate. In the 1970s, as vacant land
became more scarce, growth shifted southerly with the appearance of new cities, such as
Irvine, Mission Viejo and Laguna Niguel. During the 1980s, the southern portion of Orange
County experienced between a four to five percent annual grow1h rate. Orange County as a
whole had a 17.3% growth rate between 1990 and 2000, according to California State
Department of Finance estimates.
The City rate of population growth exceeded the County rate of population grow1h through 1950.
However, since 1950 the City's proportionate gain in population has been substantially less than
that of the County. Annexations of the West Newport Triangle in 1980, a portion of Santa Ana
Heights in 1987, and construction of large housing developments helped to increase City
population 6.5% between 1980 and 1990. Construction of housing developments contributed to
an increase of City population of 15.2% between 1990 and 2000. The City grow1h rate was
projected to decline by 2000 and beyond as vacant land becomes increasingly scarce.
Population increases after 2000 generally were anticipated to be accommodated through
intensification of land uses and annexation of the Newport Coast and Santa Ana Heights areas.
Past and future populations of both Orange County and Newport Beach are presented below.
Newport Beach population will continue to constitute a decreasing percentage of the County
population.
Supply of vacant land to support new residential development in the City of Newport Beach has
diminished rapidly. Immigration, still a strong factor in population grow1h in Orange County, is a
19
small contributor to population growth in Newport Beach. Projected data for Orange County
provides additional evidence vacant land throughout the County is diminishing. County
population is projected to increase by 13.8% between 2010 and 2020. The City of Newport
Beach population is projected to increase only 5.6% during that time period, representing a
slowing of growth by almost 40%.
The California State Department of Finance estimated the vacancy rate to be 5.7% for Orange
County in 2000. This relatively high rate of vacant units was attributed to use of many housing
units as second homes for persons who had seasonal business or recreational ties to the area.
Overall vacancy of year-round units at the time of the 1990 U.S. Census was 8%.
Use of units as second homes between 1970 and 1990 did not explain the reduction in
population growth relative to increase in number of households. This trend instead was
attributable to a sizeable reduction in average size of City households. Average household size
in 1970 was 2.6; the 1980 Census reported an average household size of 2.2. Between 1980
and 1990, this rate increased to 2.3 persons per unit. Decreases in household sizes are
occurring in most communities in California. The decrease in average persons per household
between 1970 and 1980 and the increase in average persons per household between 1980 and
2000 are shown below. This trend is consistent with the trend in Orange County.
Various factors that contributed to this phenomenon include the following:
• Rental housing in most urban areas was occupied by households for which the average
size was smaller than owner-occupied housing.
• Many predominantly owner-occupied neighborhoods in the City were originally
populated by child-rearing families. These families matured; children grew and left
home. As a result, certain neighborhoods now have sizeable numbers of childless
couples in the "empty nest" stage of life, causing a general reduction in neighborhood
population.
• Following a national trend, many young couples postponed starting a family or elected
not to have children. Childless couples, supported by two professional salaries, may
have been able to afford housing in Newport Beach. Young, childless households
became common in many neighborhoods where child-rearing families had been
predominant, contributing to neighborhood population reductions.
• Many retired persons moved to Newport Beach before 1980.
20
In summary, reduction in household size in Newport Beach between 1970 and 1980 had
been the result of increased numbers of persons 65 years of age and older and reduced
numbers of child-rearing households and child population in the City. This trend is
documented by Table 17 ("Population By Age, City of Newport Beach 1970-1998"). Table 18
further indicates a general aging of the population of the City between 1990 and 1998.
However, it also shows an increase in "under 5" and "5 -13" age categories, which in part
may explain the slight increase in numbers of persons per household.
In addition, public school enrollment in the Newport-Mesa Unified School District increased at a
rate significantly greater than population growth after 1990, as indicated on Table 18.
21
Summary
The aging trend of the population in Newport Beach points to the need to focus on addressing
the housing needs for senior citizens. As outlined in the Goals section, the City of Newport
Beach will specifically focus on this growing segment of the population.
22
Household Characteristics
Ethnicity
The following information is based on the most recent information (2000 Census of
Population and Housing) available for the City of Newport Beach, as supplemented with
information from Orange County Progress Report, 2000. The City of Newport Beach was
more diverse racially and ethnically in 2000 than in 1990. Persons who classified
themselves as white in 1990 comprised 92.5% of the City population. Those classifying
themselves as Hispanic in 1990 comprised 4% of the City population; in 2000 that increased
to 6.2 %. The percentage of the City population who identified themselves as black in 1990
was .2 %; in 2000 this increased to .5 %. Table 19 shows the 1990 and 2000 racial and
ethnic composition of Newport Beach. Comparative figures for Orange County are also
provided.
23
Sources: Orange County Progress Report 2000, Cerlter
Research. U.S. Census -2000.
Numbers are rounded to nearest decimal
24
to 100%
Table 21 shows 1990 Census ethnic data for the City of Newport Beach and the County of
Orange by head of household.
American
Indian,
Eskimo &
Aleut
Household Incomes
An important component of housing affordability is household income. Upper income
households have substantial discretionary income to spend on housing; low-and moderate-
income households are more limited in terms of housing they can afford. Median household
income in Newport Beach traditionally has been greater than that of Orange County. In 1980,
City median household income was 20.7% higher than County household median income. In
1990, City median household income had become 31.5% higher than County household
median income.
25
Housing Affordability
Housing affordability is best assessed by analyzing level of payment in comparison to ability to
pay. In 1990, the majority of housing in the City of Newport Beach was priced over $200,000.
Median value of housing in the City was $500,000, according to the 1990 Census of Population
and Housing. The most recent survey data of amount of income spent on housing in Newport
Beach comes from the 1990 U.S. Census. For renters, 39% of households paying rent spent
30% or more of their income on rent. For homeowners, 34% of households paying a mortgage
spent 30% or more of their monthly income on mortgage payments. Currently, lenders are
allowing households to pay between 29% and 35% of their gross income for housing. Table 23
shows income spent on housing by income group, expressed according to rent/mortgage as a
percentage of income for households in the City of Newport Beach.
Cost of contract rental housing in the City of Newport Beach is higher than the cost of rental
housing in the County of Orange. Contract rent is monthly rent agreed to or contracted for,
regardless of furnishings, utilities, fees, meals, or other included services. Median contract
rent in Orange County was $728 in 1990. Median monthly rent in the City was $967 in 1990.
In its 1988 Regional Housing Needs Assessment, the Southern California Association of
Governments calculated that of 4,431 lower-income households, paid more than 30% of their
income for housing. According to SCAG estimates, 2,625 very low-income households and
1,806 low-income households paid more than 30% of their income for housing. In 1990, 2,583
very low-income and 4,071 low-income households paid more than 30% of their income for
housing. "Low Income" households are those households with annual incomes between 50 -80
26
percent of the County median household income. "Very Low Income" households are those
households with annual incomes of 50 percent or less of the County median household income.
State and federal standards for housing overpayment are based on an income-to-housing
cost ratio of 30% and higher. Households paying more than 30% of their incomes for
housing have less income remaining for other living necessities. Upper income households
generally are capable of paying a larger share of their incomes for housing; therefore,
estimates of housing overpayment generally focus on lower income groups. To distinguish
between renter and owner housing overpayment is important because, while homeowners
may over extend themselves financially to purchase a home, the owner always maintains the
option of selling the home. Renters are limited to the rental market and generally are
required to pay the rent established in that market.
The number of higher-income households paying more than 30% of their income for housing is
an indication of unique standards of housing affordability in Newport Beach. In addition, a
higher allocation of income toward housing was perceived as justified because of investment
qualities of housing in the City. Also, higher expenditures on housing may be justified when tax
advantages are considered and incomes are expected to increase while housing expenses
remain fixed.
Overcrowding
Overcrowded households are those in which the ratio of persons/room exceeds one (1). The
substantial reduction in the average household size in the City of Newport Beach in the last
third of the twentieth century indicates the majority of City households are not overcrowded in
terms of persons per dwelling unit. The 1990 U.S. Census figure and the estimate by the
California State Department of Finance for the year 2000 remain at 2.3 persons per dwelling
unit. These figures are well below State and regional averages.
The 1980 U.S. Census indicated that in Newport Beach 84 (0.6%) owner-occupied units and
212 (1.6%) renter-occupied units inciuded more than 1.01 persons per room. In 1990, these
figures were 66 (0.4%) for owner-occupied units and 406 (2.8%) of renter-occupied units.
County of Orange figures for 1990 show 5.2% overcrowding among owner-occupied units, and
7.8% overcrowding among renter-occupied units.
27
Employment Trends and Projections
The Califomia State Employment Development Department estimated the total labor force
among the Newport Beach population in June 2000 was 45,780, of whom 44,990 were
employed. Labor force is defined as the number of people 16 years of age and older (who
reside within the City of Newport Beach) that are employed or are seeking employment. The
Center for Demographic Research estimated that in 1997 the labor market in the City of
Newport Beach was as follows: agriculture (133); mining (39); construction (2,046);
manufacturing (2,533); transportation and public utilities (1,822); trade (13,206); finance,
insurance and real estate (9,980); services (26,657); govemment (1,902); and, self-employed
(5,661). This indicated a total of 63,979 jobs in the City of Newport Beach. Projected
employment opportunities in Newport Beach in year 2005 will be 73,241, according to the
Center for Demographic Research.
Table 24 compares Southem California Association of Governments City projected employment
growth (as presented in the Orange County Progress Report 2000) with projected employment
growth for Orange County. This reflects the number of jobs available within the City. Data
related to employment differ substantially between Center for Demographic Research and
Califomia State Employment Division Development Department estimates. The 1997 number
below is a California State Employment Development Department calculation; the 2000 -2020
projections are Center for Demographic Research estimates.
The Center for Demographic Research has indicated employment in the City is expected to
increase by 9,262 jobs (14.5%) between 1997 and 2005. The projected countywide
employment increase is 292,455 (21.7%) during that same period. The City will have about
4.4% of the jobs in Orange County by year 2005.
Summary
Although employment opportunities within Newport Beach will continue to increase, those
increases will also continue to comprise a smaller percentage of the overall job creation within
the County. Consequently, additional demand for housing within Newport Beach will be as
much a result of overall employment growth within the County, as it would be because of
employment growth within the city.
28
Special Needs Population Groups
Certain segments of the population may have a more difficult time finding decent affordable
housing due to special circumstances. The State of California defines "special needs"
households as the elderly, disabled persons, large families, female-headed households, farm
workers, and the homeless. This Housing Element has included students and people living
with HIV/AIDS in the "special needs" population. The Census Data from 1990 is not
consistent in its identification of special needs households versus individuals with special
needs. In some cases, individuals may qualify under several categories at the same time,
e.g. a woman may be the female head of household and be over 65 years of age. The best
indicators for quantifying the special needs population from the data indicate that in the City
of Newport Beach in 1990:
• 10,318 people were 65 or older.
• 1,734 households were headed by females.
• 2,117 people were disabled persons with self-care limitations.
• 171 people were farm workers.
• There existed an undetermined number of homeless.
Data from the 1990 Census of Population and Housing indicate the "special needs"
population in Newport Beach most in need of affordable housing is senior citizens (those at
least 65 years of age). A large percentage of Newport Beach senior citizens in 1990 had a
work disability with a mobility or self-care limitation. Demonstrated need for affordable senior
housing has further been supported by social service providers in Newport Beach, who
maintain in interviews that such housing and transportation are the primary needs for senior
citizens receiving social services.
Students attending the University of California, Irvine (UCI) 'or Orange Coast College (OCC)
in Costa Mesa also reside in Newport Beach. The UCI Student Housing Office has
estimated that approximately 800 UCI students reside in the City of Newport Beach. A
comparable number of OCC students are also assumed to reside in Newport Beach.
However, any numbers obtained for students should be considered with caution because
both campuses stress they neither have exact data on students living in Newport Beach, nor
can they guarantee those students who claim to live in the City actually do. The Student
Housing Offices provide information to students on locating housing but students do not
necessarily obtain housing through the offices. Also, Student Housing Offices have no way
of tracking residences of students. Contact was made with the UCI Transportation Office to
attempt to ascertain the number of students traveling between UCI and Newport Beach.
However, that shuttle service was discontinued in 1999 due to lack of riders. This may be
due to most students having autornobiles.
The most recent study on housing costs completed by the University of California, Irvine
Housing Office was in 1988. That study was based on number of rooms and made no
distinction between apartments and homes. Rents then ranged from $596 per month for a one
bedroom, one bath apartment, to $1,543 per month for a four bedroom, two-bath unit. Average
cost of housing in Newport Beach typically occupied by students has risen dramatically since
completion of that study. Those costs for year 2000, based on students helped, are as follows:
29
Most students who reside off campus live in West Newport, Balboa Peninsula or Balboa Island.
Rent prices on Balboa Island are higher than many other areas in the City of Newport Beach.
Students afford these prices by living with other students and sharing costs, a practice that may
lead to overcrowded conditions. No subsequent study of student housing has been conducted.
Persons with Disabilities
Based on the Housing and Urban Development Data Book from the 1990 U.S. Census, 4,495
persons (6.8% of the city population) had a work disability with a mobility or self-care limitation.
Over 82% of those individuals were 65 years of age or older.
The most prevalent public need for persons with disabilities is access to public places, housing
and facilities. Those with handicaps include persons who are blind, deaf, mute, confined to
bed or wheelchair, or who require crutches. A survey conducted by the Dayle Mcintosh
Center for the Disabled in 1987 questioned 14,000 disabled residents in Orange County.
The study concluded the two most prevalent housing needs for persons with disabilities are
accessibility and afford ability.
Mobility impaired individuals require special housing or structural needs. These include, but are
not limited to, wheelchair ramps, widened doorways, grab bars, and access ramps. Certain
individuals may require housing that has access to health care facilities. From available Census
data it is not possible to determine how many of these handicapped persons need housing
assistance. The City has produced two units designed for handicapped occupancy in one of its
rent restricted, financially assisted housing developments. Rental on these two units was
restricted to allow use of Section 8 rental assistance Certificates or Vouchers. These units also
are located in close proximity to the largest concentration of health care facilities within Newport
Beach.
Female Head of Household
Data from the 1990 U.S. Census indicates that there were 1,734 female-headed households in
Newport Beach at that time. The data also revealed that 3.8% (66) of the 1,734 female-headed
households were below poverty status and comprised a family of four. Of those 66 households,
51 had related children younger than 18 years of age and 5 had related children under 5 years
of age as the only children in the home.
30
Many residents in the City reside in mobile home parks. A number of long-time elderly
residents live in older parks developed in the 1950s and 1960s. Others live in mobile home
parks close to the Bay that cater to the retirement lifestyle.
Assistance for low-income elderly is a high priority for the City of Newport Beach. A portion
of the City 2000-2001 Community Development Block Grant funds were allocated to the Fair
Housing Council of Orange County, a social service agency that provides tenant and landlord
counseling to provide housing opportunities for Newport Beach residents of all age groups.
Additionally, there are many social service programs whose clients include the elderly in
Orange County. Including the Section 8 "Certificate" and "Housing Voucher" programs
administered by the Orange County Housing Authority, Meals on Wheels, and various social
service programs provided by and through the OASIS Senior Center. A more detailed
description of these programs is contained in the Appendix to this Housing Element.
Large Families
Families are defined as groups of persons related by blood, marriage or adoption. Households
represent all persons living together as groups, whether related or not. The City has identified
total households and families with five or more persons.
Table 26 shows distribution of number of persons per household as indicated in the 1990
U.S. Census and demonstrates the number of large households in the City of Newport Beach
comprises only 4% of all Newport Beach households.
The 1990 U.S. Census did not compare household size with household income, making it
difficult to assess the demand for affordable, larger housing units.
32
Homeless
Homelessness increased throughout the United States during the 1990s. Factors that
contributed to the increase in homeless ness included a lack of housing affordable to low and
moderate-income persons and families, increases in number of persons whose incomes fell
below the poverty level, reductions in public subsidies to the poor, de-institutionalization of
the mentally ill, and economic recession.
Homelessness is a regional problem throughout Southern California. Homeless persons and
families exist in every city and populated unincorporated area of Orange County. Various
organizations, institutions and agencies often generate strikingly different calculations of
homeless individuals/families. This Element relies on calculations contained in the Orange
County "2000 -2004 Consolidated Plan," which indicate in year 2000 there are 18,604
homeless individuals in Orange County. The County has developed and assists in funding a
housing and service delivery system -the Continuum of Care -that responds to the needs of
the region's homeless. The Continuum of Care was established through a community-based
process to ensure the region's residents and homeless are empowered to affect changes in
the existing social services system. The Orange County Community Forum, Orange County
Leadership Cabinet, and Orange County Department of Housing and Community
Development have shared responsibility for planning and implementing the regional
Continuum of Care. Orange County's 33 cities and various County agencies have committed
more than $22,800,000 in "mainstream" funds to meet the needs of the region's homeless.
Although programs are available to shelter and serve the homeless, service gaps remain in
the County Continuum of Care service delivery system. Gap identification and establishment
of priority needs were based on data from a needs assessment survey, Community Forum
and Assessment Groups meetings, and a survey of current and former homeless individuals.
According to the "Year 2000 Continuum of Care Gaps Analysis Chart," Orange County has a
total homeless shelter bed inventory of 2,374, comprised of emergency shelter and
transitional shelter beds for individuals and persons in families with children. The current
inventory of 2,374 beds/units for 18,604 individuals in need of emergency shelter, transitional
shelter, and permanent supportive/affordable housing leaves an unmet need (gap) of 16,230
beds/units. There is a current inventory of 1,135 supportive service slots (job training, case
management, substance abuse treatment, mental health care, housing placement, life skills
training) for 5,581 individuals in need of such services, which leaves an unmet need (gap) of
4,446 supportive service slots. Additionally, there are current unmet needs (gaps) for
individuals in the following categories (expressed as estimated need/current inventory/un met
need (gap)): chronic substance abusers (1,842/720/1,122); seriously mentally ill
(2,177/150/2,027); those diagnosed with more than one of the identified needs categories
(1,395/75/1,320); veterans (1,395/568/828); persons with HIV/AIDS (662/400/262); victims of
domestic violence (558/275/283); youth (2,797/275/2,522); and, other-physical disabilities
(837/568/270).
There also are current unmet needs (gaps) for persons in families with children in the
following categories (expressed as estimated need/current inventory/unmet need (gap)):
chronic substance abusers (1,302/46/1,256); seriously mentally ill (651/0/651); dually-
diagnosed (651/0/651); persons with HIV/AIDS (662/550/112); victims of domestic violence
(1,302/290/1,012); and other-physically disabled (1,953/620/1,334). There is a surplus
inventory for veterans in families with children (estimated need, 391/current inventory,
620/surplus, 229). Please note that homeless sub-populations do not total 18,604 because
there are homeless who fall into more than one sub-population category and/or not all
homeless fall within the federal Department of Housing and Urban Development designated
33
sub-populations listed (e.g., homeless families who are under-employed and unable to afford
housing would not be captured under the sub-population categories listed, but would be
captured in the total homeless count of 18,604).
The County of Orange Housing and Community Development in 2000 made application to the
federal Housing and Urban Development Department for two Shelters Plus Care and ten
Supportive Housing Programs, totaling $8,010,818. Renewal Supporting Housing Program
applications will preserve 43 transitional housing beds and 966 service slots annually. The
nine new programs will add 59 permanent units for homeless with special needs. Additionally,
60 new transitional beds and 2,837 supportive service slots will be added annually to the
Orange County Continuum of Care. Top priority projects/needs for the 2000 Continuum of
Care Homeless Assistance Grant application were eligible permanent housing for homeless
with special needs, eligible renewal projects, transitional housing, and supportive services
programs.
In June 1999, the Board of Supervisors established a County Homeless Coordinator position
within the County Executive Office. The County Homeless Coordinator has numerous
responsibilities, including participating on the Leadership Cabinet and coordinating regional
resources to address homeless ness. In October 1999, the Homeless Coordinator, Orange
County Homeless Issues Task Force, and Shelter and Hunger Partnership of Orange County
formed a partnership to ensure the Continuum of Care planning process was not dominated by
government representatives. This partnership is called the Community Forum Collaborative,
and shares responsibility for sustaining the Continuum of Care planning process by hosting
quarterly Continuum of Care Community Forum meetings and monthly Assessment Group
meetings. The Community Forum has an open membership; that is, any individual or group
who wants to contribute to efforts to eliminate homelessness in Orange County are
encouraged to participate. Approximately 75% of Community Forum participants are nonprofit
agencies.
Assessment Groups assisted the Community Forum to develop preliminary identification of
priority projects and gaps. Community Forum Assessment Groups were established to
improve the existing care system by focusing efforts on specific needs and/or interest areas
related to homelessness and affordable housing and to identify needs/services gaps and
resources for respective homeless populations. The five Orange County Assessment Groups
and their primary foci are as follows:
• Homeless Prevention/Outreach Assessment Group -develops and expands programs
to prevent homelessness through crisis intervention, mobile outreach, and assessment
services; identifies and coordinates linkages in systems of care. Its lead agency is the
Continuum of Care Coalition, which is a formal partnership of four service agencies
that provides a variety of services and shelter programs for the homeless.
Emergency Shelter Assessment Group -addresses issues such as shelter based
support services, availability of emergency beds, development of additional emergency
beds, and development of long-term solutions to the Cold Weather Armory program.
Its lead agency is the Emergency Shelter Expansion Task Force, which is an alliance
of service agencies that provides emergency shelter and homeless service programs.
Transitional Shelter Assessment Group -addresses shelter-based support services,
availability and development of additional transitional beds, and development of
intake/exit guidelines and processes for successful transition to permanent affordable
housing. Its lead agency is the Shelter Provider Program, which is an association of
homeless shelter program directors and program staff.
34
• Permanent Affordable Housing Assessment Group -addresses development of
affordable housing provision of supportive services in a permanent housing setting,
and other appropriate issues; addresses barriers to expansion of affordable housing
opportunities to individuals and families earning less than $10 per hour. Its lead
agency is the Kennedy Commission, a group of diverse community stakeholders,
including residential developers, health and human service providers, low-income
housing advocates, government agencies, businesses, and other groups.
Advocacy Assessment Group -addresses issues such as zoning, legislation, shelter
provider standards, and increased funding for homeless programs. Its lead agency is
the Partnership of Responsible Public Policy, which consists of a wide variety of
community leaders who represent service providers and advocates.
The current Orange County Continuum of Care is comprised of certain systemic components.
These Components are as follows: the Prevention Component; the Outreach/Assessment
Component; the Emergency Shelter Component; the Transitional Component; the Permanent
Housing Component; the Permanent Supportive Housing Component; and the Supportive
Services Component.
The Orange County Continuum of Care system has been designed to facilitate movement of
homeless persons and families between and among components of the system by
constructing links between components. Since each homeless case is unique, the case
manager becomes key to moving a client between components. Local governments act as a
means to bring the homeless into shelter/service programs. Orange County homeless also
are moved through the Continuum of Care system via regional collaborations.
The Housing and Urban Development Department has identified six (6) homeless sub-
populations that require special consideration in the regional Continuum of Care system.
Those six sub-populations are as follows: veterans; seriously mentally ill; substance abusers;
people living with HIV/AIDS; victims of domestic violence; and, youth. Additionally, the County
of Orange has provided information regarding outreach efforts for homeless individuals with
disabilities.
The 1990 U.S. Census did not identify any homeless persons in the City of Newport Beach.
However, according to the Newport Beach Police Department, a few homeless and transients
are occasionally observed traveling through the City, and several have been observed staying
in the area overnight in drainage channels overgrown with vegetation. Although homeless and
transients only are occasionally found in Newport Beach, State law requires each jurisdiction
provide adequate sites to facilitate development of emergency and transitional shelters. In
addition, the homeless situation in the County results in part from lack of suitable affordable
housing. Therefore, a comprehensive solution to homeless problems requires every
jurisdiction in the County address needs of the homeless.
Shelter and service programs available to homeless people in Orange County are of very good
quality. However, there is a need for increased services. Presently, there are approximately
2,374 permanent shelter beds in the County, or a deficit of approximately 16,230 beds. The
majority of these shelters are located in northern Orange County. However, there are a variety
of homeless and related service shelters located throughout Orange County (see Appendix).
Research of local agencies consisted of contacting those groups that provided assistance to
persons in need of emergency shelter and assistance. The City has been requiring Social
Service agencies receiving CDBG funds to provide information regarding the most recent
35
permanent residence(s) of persons helped. This requirement was established as part of a
Housing Element program implementation action. In many cases better information has been
provided; in other cases improved counting is still required. Agencies without expanded reporting
requirements could not provide better information than in 1986. These agencies that provide
housing and other services for the homeless inciude the Orange County Housing Authority, the
Orange Coast Interfaith Shelter, Saddleback Community Outreach, the YMCAfYWCA, Friends in
Service to Humanity, and the American Red Cross. Detailed descriptions of services offered by
these agencies are contained in the Appendix to this element.
Newport Beach allows emergency shelters and transitional housing subject to a Use Permit in
all multi-family and commercial zones. In terms of discretionary review, these uses are
considered "group homes" in the City's Zoning Code. Housing Program 5.1.6 promotes the
City's practice of continuing to allow emergency shelters and transitional housing subject to
the provisions in the Zoning Code. It should be noted that the Use Permit requirement is not
considered a constraint since it is no more restrictive than Use Permit requirements for other
potentially conflicting land uses in those zones. It should be noted that if the shelter has fewer
than 7 individuals, then the shelter is a permitted use in single-family zones.
Farm Workers
The special housing needs of farm workers result from low wages and the seasonal nature of
their employment. The 1990 Census of Population and Housing estimated farm workers
comprised less than .2% of the population in Newport Beach and approximately 1 % of the
County population. Therefore, demand for housing generated by farm workers in the City was
nominal and could be addressed adequately by overall housing afford ability programs in the
City and the County. This remains the case in the City of Newport Beach.
People Living with HIV/AIDS
This Housing Element includes a brief narrative pertaining to an additional special needs
population not yet identified in State or Federal legislation -people living with HIV/AIDS.
Information contained herein has been taken from a report entitled Orange County HIV/AIDS
Housing Plan, prepared by AIDS Housing of Washington for the City of Santa Ana, and
adopted by the Orange County Planning Council on December 8,1999. This population is
regional in nature rather than concentrated in a particular city. As of June 30, 1999, a total
5,295 cases of AIDS had been reported in Orange County, and an estimated 2,392 people
were believed to be living with AIDS. Communities throughout Orange County have persons
affected by AIDS; ten cities had 80 or more people living with AIDS. Percentage of AIDS
cases reported annually among Caucasians in Orange County decreased steadily during the
late 19905; percentage of AIDS cases among people of color increased during this time
period. Additionally, while the United States was experiencing a rise in AIDS cases reported
among those younger than 25 years of age, reported AIDS cases in 1998 in Orange County
indicated a slight shift toward those 30 years of age and older. Prior to 1993, most people
diagnosed with AIDS in Orange County were reported to have been infected through
homosexual or bisexual activity; by 1998, other causes of infection, including heterosexual
activity and injection drug use, had become prevalent. Orange County is experiencing a
disproportionate increase in AIDS cases among the Hispanic, African American and Southeast
Asian populations, women, injection drug users, and those who contracted the disease
through heterosexual contact.
36
AIDS Housing of Washington estimated local need for housing for people living with HIV/AIDS
in Orange County in 1999 included 20 percent of people living with AIDS, 10 percent of people
living with HIV, and 2 percent of homeless individuals. Such estimates yielded a total of 1,144
persons in need of housing in Orange County in 1999. Many respondents to a 1999 survey of
people living with HIV/AIDS clearly were in very precarious housing situations and were
overburdened by rent/housing costs. Over 80 percent of respondents reported spending more
than 30 percent of their incomes on rent and over 50 percent reported spending more than 50
percent of their incomes on rent. Additionally, 38 percent of respondents indicated they would
need to relocate should their rent increase by $50 monthly. Thirty percent of respondents
earned less than $700 monthly. Nearly 40 percent of respondents had relocated since
learning of their HIV status and one-third of respondents had slept outdoors, in an automobile
or at a friend's house. An evident conclusion from this survey was that respondents were
experiencing "housing problems" and were at risk of homelessness.
Various agencies provided HIV/AIDS-dedicated housing resources to 410 people living with
HIV/AIDS in Orange County in 1999. The Orange County Emergency Housing Program
provided emergency housing assistance for 234 people. The Gerry House West, START
House, and Transitional Housing Program provided transitional housing assistance for 57
people. Hagan Place, Annie's House, and the Rental Assistance Program provided
assistance to 119 people. These resources will be supplemented in 2001 with Emmanuel
House providing housing assistance to 21 people and a new transitional housing program
providing housing assistance to 12 -16 people (6 -10 traditional housing units in a new
location and 6 set-aside residences in existing facilities). Federal funding (through the Super
NOFA Fund) dispersed by the Orange County Housing Authority, provides assistance for
people living with HIV/AIDS. As of October 2000, two households in the City of Newport
Beach received such assistance.
Housing units dedicated for people living with HIV/AIDS are_occupied and have long waiting
lists. The Orange County HIV/AIDS Housing Plan indicates conservative estimates are that
approximately 737 people living with HIV/AIDS in Orange County require housing assistance
in addition to those served by current resources specifically dedicated to this population.
There currently are resources to serve approximately 410 people living with HIV/AIDS with
some form of emergency, transitional, or permanent housing assistance. Additionally, due to
the high (and unmet) demand for affordable housing in Orange County, landlords are able to
increase rents (rents throughout Orange County rose 23% between 1996 and 1999), refuse to
accept subsidies, demand large security deposits and other move-in costs, and require
extensive background information and documentation, which has caused housing instability for
many living with HIV/AIDS. Furthermore, according to the Orange County HIV/AIDS Housing
Plan people living with HIV/AIDS in Orange County have experienced discrimination in their
searches for housing due to race/ethnicity, sexual orientation, health status, and status as a
rent subsidy holder. This has resulted in difficulties for many people who live with HIV/AIDS to
find housing with their subsidies and also has made many people unwilling to live in an AIDS
housing facility.
Additional emergency, transitional, and permanent housing resources and supporting services
are requisite to meet the multiple needs of people living with HIV/AIDS. Existing resources
cannot serve all people living with HIV/AIDS. Service gaps exist in eligibility, provision of
emergency and transitional housing, provision of housing for chemically dependent, housing
information and referral, life skills instruction, and systemic administration.
37
Summary
The housing needs of the Special Needs population will be addressed through Goal 5 of this
element. The needs of the senior population are particularly recognized by the City and are
addressed by each goal of the Housing Element.
Housing Needs
In accordance with State Housing Element law, the Southern California Association of
Governments (SCAG) has prepared a Regional Housing Needs Assessment (RHNA) to
identify the housing need for each jurisdiction within the SCAG region. This model was
prepared for the five-year period 2000 -2005. The RHNA allocates Newport Beach's share of
housing units required to satisfy housing needs resulting from 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.
State law requires SCAG to distribute new units on basis of income to avoid further impaction
of localities with relatively high proportions of low-income households. It also is required that
existing housing need be identified. SCAG identified this need by using the Department of
Housing and Urban Development (HUD) standard of overpayment. Households overpaying
are households with incomes below 80% of the County median household income and paying
more than 30% of their income toward housing! shelter. SCAG estimated existing need by
applying percentage of overpaying households enumerated in the 1990 Census to current City
population. Using this method of estimation, existing need in Newport Beach is 476 dwellings.
The tables below indicate future need for housing in Newport Beach and its distribution by
income group as calculated by the RHNA.
The "special needs" population in Newport Beach most numerous and in need of affordable
housing is senior citizens (age 65 and older). Thirty-six percent of this population has a
disability and a significant percentage live near or below the Federal poverty level.
38
Newport Coast
The Newport Coast area, annexed to the City on January 1, 2002, is a planned community that
was approved by the County of Orange and built by The Irvine Company. The City was not
involved in the approval of the community and all land uses were decided prior to its annexation.
The City agreed to the transfer of a portion of the County's Regional Housing Needs allocation for
the area since The Irvine Company made a commitment to the County to fulfill its allocation. The
City will work with the County of Orange and the Irvine Company to ensure that affordable
housing commitments are satisfied.
39
Inventory of Land Suitable for Residential Development
The City of Newport Beach is not a residential developer and therefore must rely on private
developers or organizations that have the capacity to acquire and manage affordable housing or
"at-risk" housing developments. A list of such organizations is contained in the Appendix to this
Housing Element. The following section of the Housing Element provides an inventory of land
determined suitable for development of affordable housing.
Undeveloped, Residentially-Zoned Sites
Newport Beach is a nearly built out City, with very few undeveloped sites remaining. The only
undeveloped sites suitable for residential development are discussed below. Of the three vacant
sites, two are located within the Coastal Zone and have Local Coastal Program Land Use Plan
designations consistent with their General Plan designations. Each site currently has adjacent
public facilities and services. The sites vary in size from 3.5 to 45.2 acres, and have an
approximate total capacity of 582 dwelling units. The potential residential development capacity
of 582 units may be exceeded by 25% as provided by the density bonus provision in this
Element. A density bonus does not require a General Plan Amendment. Should this provision
be used, the approximated total residential development capacity of the three sites would become
727 units. In summary, there is sufficient space and zoning allowance for meeting the Regional
Housing Needs Assessment numbers for the City of Newport Beach on these three sites.
The three vacant sites identified as potential sites to meet the City's RHNA allocation for lower-
income individuals are all zoned "PC" or "Planned Community." As the Municipal Code indicates,
"It is the intent of the PC District to provide for the classification and development of parcels of
land as coordinated, comprehensive projects so as to take advantage of the superior
environment that can result from large-scale community planning." The provisions of the PC
zoning district are intended to provide the maximum amount of flexibility in site design. Therefore,
regulations pertaining to setbacks, building heights, lot coverage, parking and other design
elements are not specified in the Municipal Code, but are included in the Development Plan for
each Planned Community.
Table 29 presents a summary assessment of these vacant sites. Following are descriptions of
each site. Figures 1-III identifies the location of each site.
Mixed Use Zoning
In addition to traditional residential zoning standards such as R-1 (single-family detached units)
and MFR (multiple-family attached units), Newport Beach also has a "Residential Overlay Zone"
that allows mixed residential and commercial types of developments. Many commercial
properties include an "R" Overlay designation and may integrate residential uses with commercial
uses at a density of one dwelling unit for each 2,375 square feet of land area. The mixed
residential/commercial use will allow the City additional opportunities to provide housing.
40
Thi dwelling unit per acre GClIGUICllI{JIl is only an average,based on the acreage of the entire
site within the City's boundary. Actual density may be greater depending on the specific
I
Newport Banning Ranch -Approximately 45.2 buildable acres of the Newport Banning Ranch
are located within the City of Newport Beach City boundaries. The property is located in non-
contiguous parcels northerly of Pacific Coast Highway, southerly of 15th Street, and westerly of
Monrovia Avenue. This site can accommodate 406 multiple-family residential units without the
need of a change of zone or General Plan Amendment. The Newport Banning Ranch is located
within the California Coastal Zone and therefore would require a Coastal Development Permit
issued by the California Coastal Commission.
The ultimate development of Banning Ranch is complicated by the fact that the property owner is
a company formed as a partnership of two independent oil companies, neither of which are real
estate developers. Discussions related to development usually include a third-party development
company. Past planning efforts have involved looking at the whole land holding, including several
hundred acres in unincorporated County territory. These planning efforts have required
coordination with a myriad of Federal, State, and local agencies, including the US Army Corps of
Engineers, the Environmental Protection Agency, the US Fish and Wildlife Service, the California
Resources Agency (including the Division of Mines and Geology and the Department of Fish and
Game), the California Coastal Commission, the California Department of Transportation, the
County of Orange, and the Orange County Transportation Authority. Conflicting goals of these
various entities sometimes create challenges to project approvals. However, the smaller areas
of the property within Newport Beach could proceed separate from the large project area under
existing entitlements in order to produce additional housing.
AvocadolMacArthur-The Avocado/MacArthur site occupies 3.5 acres located northerly of San
Miguel, southerly of San Joaquin Hills Road, easterly of Avocado Avenue, and westerly of
MacArthur Boulevard. The site would require a change of zone to be developed as a multiple-
family residential project(s) for senior citizens. The site could accommodate at least 56 multiple-
41
family residential units. The City will initiate the change of zone on the site within 1 year of
certification of the Housing Element. The Avocado/MacArthur site is not located within the
California Coastal Zone and therefore does not require a Coastal Development Permit.
Bayview Landing -The Bayview Landing site occupies 4.5 acres and is located at the
northwesterly corner of the intersection of Jamboree Road and Back Bay Drive. This site can
accommodate 120 multiple-family residential units without need of a change of zone or a General
Plan Amendment. Bayview Landing is located within the California Coastal Zone and therefore
would require a Coastal Development Permit issued by the California Coastal Commission to be
developed
Staff is currently meeting with potential developers of the Bayview Landing project. It was
determined that the site, with a City provided density bonus to encourage affordable housing, will
accommodate up to 150 units. The developer is in the process of designing a site plan to respond
to the geotechnical constraints of the site.
42
SFA (Single-Family Attached)
(Vacant)
53.36 acres
HOUSING ELEMENT
FIG. I
BANNING (NEWPORT) RANCH SITE
43
FIG. II
AVOCADO/MacARTHUR SITE
44
FIG III
BAYVIEW LANDING SITE
45
Redevelopment and "Infill"
With expansion and improvement of the national and state economy and the circulation
systems in Southern California in the late 1950s, the character of residential development in
Newport Beach changed from a vacation home community to a more equal mixture of
permanent residences and vacation homes, and subsequently to almost exclusively a
community of permanent residences. During this period of change enough vacant land
existed to meet increased demand for housing. Housing demand had little effect on the City's
older areas, other than transforming tenure pattern from "occasional" to "permanent." This
housing demand continued well into the 1980s because sufficient vacant land existed to
satisfy housing demand. From the mid-1990s, development activity in terms of net dwelling
units constructed on vacant sites versus "infill" had occurred at a ratio of nearly 1 0 to 1 (2,101
d.u. compared to 234 d.u. respectively). Subsequent to the decrease in vacant residential
acreage and an increase in cost of improved and vacant land, redevelopment and "inti II"
activities increased.
The City of Newport Beach has identified areas with potential for redevelopment and/or
intensification of under-utilized residential properties (infill). These properties, depicted in
Figure IV, typically are located in older sections of the City, constructed prior to 1950 when
Newport Beach was primarily a weekend and/or summer "vacation home" community. These
residential developments usually involved less intense parcel utilization than currently occurs.
According to the City's Planning Department, total acreage of the infill properties is
approximately 478 acres, and approximately 1,100 additional housing units could be built on
the infill properties. It should be noted that these are individual properties, not large
landholdings. Therefore, they are not likely to produce a large number of units at one time.
Because the City's General Plan and Zoning Code already provide for this infill development,
it can occur without discretionary permits, an election pursuant to Measure S (as discussed on
Page 53), or the provision of additional infrastructure.
The City is beginning a comprehensive update to its General Plan, and it is possible that this
work will result in the identification of areas for more infill or mixed-use development or
redevelopment.
46
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48
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I
IS Proposed for Annexation
Within the Newport Beach Sphere of Influence (the ultimate incorporated City limits), there may
be additional options for future residential development. For example, "Bay Knolls," and "Santa
Ana Heights" are scheduled for annexation within the next five years. Once annexed, the City will
explore opportunities for increasing the City's housing supply in these areas.
Most of the property known as the Newport Banning Ranch (a large undeveloped parcel north
and north east of the existing City boundary) is also located within the City's Sphere of Influence.
Since it is currently undeveloped, it includes land that may be available for future development of
affordable housing. However, the City does not anticipate successful annexation of this area
within the next five years due to property owner opposition and current State Annexation Law
pertaining to the protests of proposed annexations.
49
Energy Conservation Opportunities
The City of Newport Beach fully enforces provisions of Title 24 of the California Administrative
Code, which require energy conservation in new residences. Standards in Title 24 create energy
savings of approximately 50% over residential construction practices utilized prior to the Title 24
enactment.
The City of Newport Beach Building Department is aware of energy conserving design
innovations and solar technology. The department utilizes the Solar Systems Code Review
Manual and its companion document, the Pool and Spa Solar Systems Code Review Manual,
published by the International Conference of Building Officials (ICBO), to facilitate installation of
appropriate solar systems.
Under existing State law (the California Resources Code), local jurisdictions may adopt structural
energy conservation standards in excess of the existing State standard. Such an increase in
standards would be of dubious value because of the moderate climate of the City of Newport
Beach. Additionally, increases in conservation standards generally increase housing costs and
therefore exacerbate the existing housing affordability concern.
The City of Newport Beach has a small remaining amount of land available for residential
development. Therefore, land use standards that require subdivisions take advantage of solar
energy would be of limited value. The City may wish to explore this option; however, care should
be taken to insure density and affordability are not affected.
A major concern pertaining to energy conservation is the relationship of housing to employment
and related affected transportation modes. Although specific energy savings are difficult to
quantify because of the myriad of variables involved in a transportation system, it is generally true
that physical proximity between home and work saves transportation energy. Existing
afford ability concerns in Newport Beach increase energy use by forcing workers employed within
the City to seek less expensive housing outside the City. It should be noted the small amount of
land remaining for residential development cannot singularly mitigate this concern. The
jobs/housing imbalance in the City cannot be totally mitigated by increased residential
development within the City.
Newport Beach is not in an area of geothermal or significant wind activity and consequently
cannot take advantage of these "alternative" energy sources.
It appears that the City, through enforcement of Title 24 and sensitivity to innovative design, is
maximizing residential energy conservation opportunities.
50
Non-Governmental Constraints
Community Attitudes
The citizenry in Newport Beach is well-organized through neighborhood homeowners
associations and community environmental groups. There exists strong public sentiment in favor
of preserving the suburban environment in the City. Opposition has been voiced against
increased commercial and office uses, expansion of the adjacent John Wayne Airport, and higher
density residential development due to concerns about traffic congestion and limitations on
infrastructure.
Public sentiment is a constraint because of its influence on local officials and because of the
ability of citizens to establish development policies and zoning through the initiative process. In
November 2000, an initiative passed in the City of Newport Beach that requires a general election
be conducted to approve General Plan Amendment applications that include increases of 100 or
more dwelling units or that would generate more than 100 peak hour trips. See Governmental
Constraints for additional discussion of this initiative.
Financing Constraints
Financing costs largely are not subject to local influence. Control of interest rates is
determined by national policies and economic conditions. Interest rates directly influence
purchasing power of home-buyers and cost of home construction through construction loans.
Currently, interest rates are at a level that enables many of the upper and middle economic
classes to afford a home purchase. However, the banking industry has adopted more
conservative lending criteria for construction loans, especially for multiple-family housing.
These factors have influenced housing supply throughout Southern California.
High interest rates substantially reduce home purchasing potential of households. New
homebuyers find the housing product they can afford is substantially less than their expectation.
Difficulty in producing housing affordable to first-time homebuyers thusly is compounded.
While cost of production has increased, purchasing power of some customers has decreased due
to inflation, interest rate fluctuations, and limited choices for housing types. Because
development costs in Newport Beach are higher than in other areas of the State, housing is even
further out of the reach of first-time homebuyers.
With savings and loan institutions and other home loan lenders experiencing higher costs in
attracting funds, it is extremely difficult for the fixed rate, long-term mortgage to be used as the
primary mortgage instrument for housing finance purposes. Consequently, variable rate
mortgages, equity appreciation mortgages, and other techniques are being promoted. This
smorgasbord of "creative financing" helps to maintain a higher level of capital for housing than
might otherwise be available.
51
Land and Construction Costs
Land costs and construction costs are significant components in housing cost Land costs are
a function of the private market and are relatively high due to the City's location near major
employment centers and the Pacific Ocean. Due to the built out nature of the City, vacant land
that is available for development of any kind, and for affordable housing projects in particular,
is nearly nonexistent, and cannot be compared to surrounding jurisdictions. Construction
costs also are set by the private market and are influenced by a variety of factors including
availability and price of materials and labor, quality of construction, and amenities offered.
Cost factors (per square foot) used to estimate cost of new housing in 1999 are as follows:
Apartment Houses
Wood Frame $57.90 (average quality); $74.40 (good quality)
Single Family Dwellings
Masonry $68.70 (average quality); $88.00 (good quality)
Wood Frame $61.10 (average quality); $83.90 (good quality)
Product design and consumer expectations also influence types and styles of units. New
homes in year 2000 are different from those produced in the 1970s. Interior and exterior
design features (e.g., larger master bedroom suites, microwave ovens, trash compactors,
dishwashers, wet bars, decorative roofing materials, exterior trim, architectural style) make
cost comparisons over time difficult. .
Growing market demand for housing in Newport Beach and little remaining vacant land in the City
has had a strong impact on financial aspects of residential development in the City. The greatest
impact of this market demand on cost of new housing is seen in the price of residential land in the
City.
Density increases often are used to offset high construction and land costs. Density increases
may decrease land costs on a per unit basis, but sales prices of units in Newport Beach indicate
density increases do not necessarily bring the cost of housing to consumers to a level that is
affordable to lower or even moderate-income households.
In addition, high residential densities involving buildings taller than three stories will greatly
increase unit marketability in many areas of the City because of the addition of a view factor.
Regardless of square footage or density, a unit with a blue water or white water view can be
marketed as a lUXUry condominium and command an extremely high price.
Higher land costs in the City are the main factor in higher square footage costs for housing
provision. High land costs also trigger higher costs in other areas of development. To balance
land prices, developers must increase amenities within the housing unit as well as within the
community area. Thus, a higher land price is the factor that triggers increased development
costs.
52
Governmental Constraints
This section of the Housing Element addresses actual and potential City governmental
constraints on development of housing for all income levels. Such constraints include land
use controls (zoning), building codes and their enforcement, site improvements, fees and local
processing, and permit procedures. In many of these areas, localities have varying degrees of
discretion to modify State standards for local implementation and/or conditions. Included in
this analysis are constraints created by specific State regulations.
As previously mentioned, there is a relatively limited supply of vacant land remaining for
development in the City of Newport Beach. This limitation on the supply of land and
accompanying existing urban development patterns of the City shape City land use regulations.
Voter Initiatives
In November, 2000, the voters of the City of Newport Beach approved a ballot proposition
(Measure S) called the "Greenlight Initiative." The initiative was designed to provide for voter
approval of any project that significantly increases density or intensity provided for in the Newport
Beach General Plan. The definition of significance is quantified as 100 or more dwelling units,
over 100 peak hour trips, or 40,000 or more square feet of non-residential floor area. Thereby,
Measure S applies exclusively to General Plan amendments. For projects with a General Plan
amendment, Measure S could delay the effective date(s) of discretionary approval(s) until the
approval(s) are submitted to the Newport Beach electorate. The time frame for the potential
delay(s) is controlled by the normal election cycle (every two years) or a developer(s) willingness
to fund a special election(s).
Measure S may prove to be a constraint to development if a development proposal exceeds
current General Plan levels, which may deter builders who look: at increasing density levels as a
way of making housing more affordable. However, the initiative should have no impact on the
City's ability to provide density bonuses of up to 25% for affordable housing projects on sites
already deSignated for residential development, as the Land Use Element includes 200 units of
"Miscellaneous Residential" that may be used anywhere in Newport Beach and was included
expressly to support the density bonus requirement.
It is important to note, however, that Measure S will note have any impact on the allowed density
established for the vacant, affordable housing sites identified to meet the City's Regional Housing
Needs Allocation. As indicated in the above paragraph, the Voter Initiative is only applicable
when a change to the existing General Plan is proposed.
Zoning
The City Zoning Code is complex but typical for an already highly urbanized community. The
Code uses a "district" concept appropriate to the diverse urban patterns and topography found
in the City. The Zoning Code contains five basic zoning districts (excluding Planned
Community districts and other specialized districts) to regulate residential uses within the City.
These zoning districts are R-A (Residential Agricultural), R-1 (Single Family Residential),
R-1.5 (Restricted Two-Family Residential), R-2 (Two-Family Residential), and MFR
(Multi-Family Residential). Table 31 summarizes Zoning Code provisions for residential
density, height, set-backs, and parking. Parking requirements are also set forth by the
California Coastal Commission.
53
Zoning Code requirements could be considered constraints to development because they
place demands on the land that limit space that could be utilized for dwelling units. However,
zoning standards are designed to protect the quality of life and provide, at a minimum, some
access to sunlight and fresh air. Access to air and sun are guaranteed through building
setbacks, open space requirements, maximum building heights and floor area ratios.
The Newport Beach Zoning Code controls density for each zoning district thru development
regulations pertaining to land required per dwelling unit. In the older neighborhoods of the City,
density standards have not changed since 1936. Densities in the amount of approximately
thirty dwelling units per acre are still allowed in these areas. In the newer neighborhoods,
developed since the 1960's, single-family densities are generally less than 10 dwelling units
per acres.
The City's Codes contain many procedures to grant relief from certain development standards
which can be of assistance in allowing higher densities. However, even if the City is willing to
approve reductions in some of the zoning regulations, (such as parking), the California Coastal
Commission has similar development requirements which would still need to be complied with
for properties in the Coastal Zone.
Maximum density in the multifamily zone (MFR) is a function of the size of the lot. For
example, a minimum lot area per dwelling unit of 1,200 square feet applies, which translates to
a maximum density of 36 units per net acre.
The following hypothetical example shows how the various zQning requirements interact on an
MFR zoned lot. This example is intended for informational purposes, not as a typical probable
outcome.
Assume a flat site of one-acre (43,560 square feet) square. The 1,200 square feet per
dwelling unit requirement would allow the construction of 36 units. These 36 units would have
to be placed in a building, not exceeding yard setback requirements. Required setbacks leave
a buildable area of about 33,230 square feet. A minimum of 90 off-street parking spaces is
required. If parking is provided at grade, about 15, 320 square feet of area would remain for
the 36 units.
54
The City Zoning Code provides for a modifications committee comprised of the Planning
Director, the Public Works Director, and the Building Director or their designated
representative(s). Whenever an interpretation of the Zoning Code or its application to any
specific case or situation would preclude a use of a parcel not otherwise allowed under zoning
regulations, the modifications committee is authorized to modify requirements relating to
building setbacks, size and location of parking spaces, lot line adjustments, and related
matters. This procedure is in addition to variance procedures as set forth by State law.
55
Notwithstanding established density limits, California State law supercedes local land use
regulation and allows certain increases to residential development, such as mandatory density
bonuses for provision of affordable housing, and the ability to add "granny units" in single
family residential areas, subject to approval of the City.
Residential zones may also carry a special designation or overlay. Development requirements
and special considerations may differ from area to area.
The Subdivision Process
Basic proVisions of the City of Newport Beach Subdivision Code are similar to those of most
jurisdictions of similar size to Newport Beach. The Subdivision Code contains design
standards that provide minimum criteria for development. In some cases, the Code allows
flexibility in application of its provisions and thereby potentially could reduce development
costs. Examples of such cases are allowances for the development of non-conforming lots and
park fee waivers. The Subdivision Code also addresses improvements (e.g., street trees,
placing utilities underground, street lighting) that add to development costs. Additionally, the
Newport Beach Subdivision Code requires dedication of parkland and/or payment of in-lieu
fees concurrently to recordation of a final subdivision map. This requirement is made in
compliance with State law, but also adds to costs of development.
Local Coastal Program
The City of Newport Beach has a (California Coastal Commission) certified Land Use Plan for
its coastal zone but does not have a certified Local Coastal Program. Therefore, developers
and/or property owners must apply for coastal development permits to the California Coastal
Commission for improvements, demolition or construction of any structure located within the
Newport Beach Coastal Zone boundary, except those tilat are exempted from Coastal
Development Permit requirements.
The Land Use Plan requirement of the Local Coastal Program might be a constraint to
providing affordable housing. The Land Use Plan consists of Citywide policies and land use
designations, detailed area descriptions for each area of the Coastal Zone, and land use maps
for the entire Coastal Zone. The Land Use Plan policies demonstrate consistency with the
California Coastal Act in the following Areas: shoreline access; recreation and visitor-serving
facilities; water and marine resources; diking, dredging, filling, and shoreline structures;
commercial fishing and recreational boating; environmentally sensitive habitat areas; hazard
areas; locating and planning new development; coastal visual resources and special
communities; and, public works. In particular, the Land Use Plan contains restrictions
applicable to twelve sensitive habitat areas that limit potential residential development areas
and that control and regulate locations on new buildings and structures to ensure (to the extent
practical) preservation of unique natural resources and to minimize alteration of natural land
forms along bluffs and cliffs. Furthermore, the Local Coastal Program Land Use Plan
indicates that areas within the Coastal Zone designated for residential use are to be used
primarily for residences, but indicates certain incidental uses that (with proper location and
design) are appropriate within coastal areas with a residential designation. These uses are to
be governed by requirements of the Newport Beach Municipal Code and include senior citizen
housing facilities (whose occupancy is limited to elderly persons, as defined by State or
Federal law).
56
The City of Newport Beach has a defined procedure for applying for coastal development
permits. Those applications may be obtained from, and filed with, the California Coastal
Commission. The initial step in the coastal development permit application process of
Newport Beach is that development proposals be reviewed and conceptually approved by the
City prior to submittal to the California Coastal Commission.
By its adoption by the City and certification by the California Coastal Commission, the Land
Use Plan of the Newport Beach Local Coastal Program establishes land use designations for
the following undeveloped residential parcels within the Newport Beach Coastal Zone
applicable to this Housing Element; Banning Ranch and Bayview Landing.
In 1981, the California Legislature enacted SB 626 (Mello), which added Government Code
Section §65590 and eliminated certain provisions of the California Coastal Act that required
local coastal programs to include housing policies and programs; Section §65590 mandates
coastal communities require inclusion of low-and moderate-income housing as part of new
residential developments and replacement of low-and moderate-income housing eliminated
as a result of demolition of existing housing within coastal zones of those communities. On
August 19, 1982, the Newport Beach City Council adopted Council Policy P-1, establishing
administrative guidelines and implementation procedures to administer Section §65590 within
the coastal zone areas of the City. This Policy now is in the Zoning Code in Chapter 20.86
which establishes the requirement of a Coastal Residential Development Permit for certain
activities involving dwelling units within the Coastal Zone. This permit ensures compliance
with State law by maximizing low and moderate-income housing opportunities within the
Newport Beach Coastal Zone.
A Coastal Residential Development Permit is required in Newport Beach to demolish or
convert eleven or more dwelling units in two or more structures, to demolish or convert three
or more dwelling units in one structure, or to construct ten or more dwelling units. A Coastal
Residential Development Permit is not required for demolition or conversion of a residential
structure to establish a nonresidential use that is "coastal related" or "coastal dependent" and
that is consistent with provisions of the City of Newport Beach Local Coastal Program Land
Use Plan. In addition, a Coastal Residential Development Permit is not required to demolish a
residential structure declared a public nuisance or to reconstruct a nonconforming building
damaged by fire, earthquake, or other calamity when a use permit is not required.
The Newport Beach Municipal Code indicates replacement affordable units in the Coastal
Zone shall be provided on a one-for-one basis when demolition or conversion activities involve
low and moderate-income dwelling units. Also, a feasibility study is required for new dwelling
unit construction of ten or more units when low and moderate-income dwelling units are not
proposed at affordability standards contained in this Housing Element. The test of feasibility
shall be initially conducted at the Housing Element standard and subsequently at progressively
higher standards contained in California State Health and Safety Code Section 50093.
Furthermore, the City of Newport Beach and the owner of the low and moderate-income
dwelling units provided are required to enter into an affordable housing agreement (to be
recorded against the property) governing the dwelling units.
Senior citizen housing facilities may require higher dwelling unit limits than normally allowed in
the Municipal Code. Such higher dwelling unit limits are allowed and are consistent with the
Local Coastal Program when a finding can be made that the use is a particular benefit to the
City and that traffic generated by the project is not greater than the predominant use allowed in
the area. Senior citizen housing facilities must conform to floor area limits of applicable
residential zone(s).
57
In an effort to mitigate the potential constraint to developers of securing approval from the City
and the Coastal Commission, the City is working diligently to gain LCP certification by June
2003. Once certified, the City will be the issuing agency for Coastal Development Permits and
a developer would not be required to obtain separate Coastal Commission approval.
Building Codes and Enforcement
Building codes regulate new construction and rehabilitation, and are designed to ensure
adequate protection against fire, structural collapse, unsanitary conditions and other safety
hazards. Newport Beach has adopted and enforces the Uniform Building Code (UBC), and
has adopted local amendments to State codes. The City Council of the City of Newport Beach
adopted by ordinance the 1998 edition of the "California Building Code," and also adopted and
incorporated by reference the 1998 edition of the "California Building Code" volumes 1, 2, and
3, including all national codes and standards based on the 1997 Uniform Building Code, as
published by the International Conference of Building Officials. These Codes establish
minimum construction standards for all residential buildings. Cities can adopt stricter
standards but cannot reduce standards. Thus, the City of Newport Beach is precluded from
revising its Building Codes as a means of reducing construction costs. However, building
costs do not appear to be unduly increased through local building codes. State energy
conservation regulations, which are cost effective in the long term, may add to construction
costs. There does not appear to be a need to expand present code enforcement activities as
indicated by few significant housing quality problems.
Permit Processing and Impact Fees
The role fees play in constraining production of housing is difficult to measure, although fees
can affect housing prices in certain markets. The theory behind fees is that new development
should bear its own costs and these costs should be spread equitably. State law requires fees
bear a reasonable relationship to actual costs incurred by a city. However, fees may add
significantly to the cost of a housing unit. To offset the cost of constructing housing units, the
Newport Beach City Council adopted a program that allows for the waiver of all application and
park fees when affordable housing units are proposed. In addition the Municipal Code allows
for the waiver of fair share trip fees.
The City's permitting procedures are considered efficient with typical zone change requests
reaching completion in as few as 60 days if no environmental impact report is required. An
environmental impact report may require up to one year before a decision is rendered, which
is within the time frame established by State law. Conditional Use Permits and subdivision
maps typically can be approved in six to eight weeks, provided an environmental impact report
is not required. Planning Commission decisions on maps, and conditional use permits are
final unless appealed within 14 days of the date of decision to the City Council, or unless a
member of the City Council within 14 days of the date of decision requests to review the
Planning Commission decision. Zone Changes require City Council action.
It should be noted that the City does not impose a design review process and/or compliance
with any architectural design guidelines. The lack of this procedure further lends to an
expeditious approval process.
City of Newport Beach fees for discretionary applications are compared to discretionary
application fees of various nearby cities in Table 33.
58
Fee Detached
$1,559
California Environmental Quality Act
Single-Family
Attached
$1.148
Elderly
$567
Mobile Home
$850
The California Environmental Quality Act (CEQA) was enacted in 1970, and requires
governmental agencies that propose to approve projects to undertake analysis of environmental
impacts resulting from that project.
59
The CEQA process can be lengthy, and project delays can increase costs to developers.
Likewise, costs to prepare environmental documentation necessary to satisfy CEQA can be quite
high, and traditionally is borne by the project applicant.
The CEQA process particularly affects Newport Beach due to rich natural resources in the area.
Concern for protection of natural resources within Newport Beach has in the past required, and
will continue to require, modifications to intensity of residential development and design of
projects. The City environmental review process is responsive, well coordinated, and meets
CEQA requirements. Review of this environmental reporting process for purposes of preparation
of this Element illustrates it is not excessive or overly restrictive according to State law.
Summary
In response to the forgoing constraints, both governmental and non-governmental, the City of
Newport Beach is setting as its first goal "to maintain quality residential development through the
application of sound planning principles and policies ... " This goal realizes the level of constraints
and opportunities presented and will make every effort to use this regulations and policies to
create quality projects that both meet the requirements of the law and that meet the needs of the
City's population and various groups in need.
60
II. Housing Plan: Goals, Policies,
Quantified Objectives, and Programs
Analyses contained in previous sections of this Housing Element provide the basis for the
Newport Beach Housing Plan, which is comprised of housing goals, policies, and programs.
The plan places em phasis on providing appropriate opportunity for satisfaction of the Regional
Housing Needs Assessment (RHNA) requirement of 476 units. Additionally, the plan places
emphasis on providing housing opportunities for special needs populations in local Qurisdictional)
and regional contexts.
The special needs populations most evident within Newport Beach and most easily quantifiable
by United States Census of Population and Housing are the elderly, the challenged
(handicapped), and female-headed households. Many of those Policies and Programs in this
Housing Plan focus on providing housing opportunities for the dominant Special Needs
population-senior citizens (those 65 years of age and older). Senior citizens comprise
approximately 72% of the total special needs population and have, as a group, many who are
disabled as well as live at or below the poverty level. Special needs populations less evident and
less easily quantifiable by the Census are the homeless and people living with HIV/AIDS. The
City of Newport Beach recognizes the homeless, in particular, exist in every community but may
be transient and therefore may more accurately be ciassified as a regional special needs
population rather than as a "City" special needs population. This is done in acknowledgement
that many categories of special needs populations are regional in nature rather than confined to
jurisdictional boundaries, and that the City of Newport Beach has approximately 48 acres of
primary sites suitable for residential development.
Goals and policies contained in this Housing Plan address the City of Newport Beach's
anticipated housing needs during the tenure of this Housing_Element (2000 -2005) and are
implemented by a series of Housing Policies and Programs. These Policies and Programs
prescribe specific actions the City of Newport Beach will take during the tenure of this Housing
Element. The Housing Plan set forth in this Housing Element contains an annotated description
of future actions for each Housing Program policy, the Program funding source, responsible
agency, and time frame for implementation.
61
1992 Housing Element Review
California State law requires the City Housing Element be reviewed as frequently as
appropriate and that it be revised appropriately, but not less than every five (5) years, to reflect
results of the review. The last revision of the Newport Beach Housing Element occurred in
1992. All the following must be evaluated during a review of the Housing Element:
• Appropriateness of housing goals, policies and programs in contributing to attainment
of the State housing goal.
• Effectiveness of the Housing Element in attainment of the community housing goals.
• Progress of the City in implementation of the Housing Element.
When a City has land within the California Coastal Zone, review of its Housing Element must
consider housing pursuant to coastal requirements. This evaluation must include the
following.
• Number of new housing units approved for construction within the Coastal Zone after
January 1, 1992.
• Number of housing units required to be provided in new housing developments within
the Coastal Zone or within three (3) miles of the Coastal Zone for persons and families
of low-or moderate-income, as they are defined in Section §50093 of the Health and
Safety Code.
• Number of existing residential dwelling units in the Coastal Zone that have been
authorized to be demolished or converted since January 1, 1992 that were occupied by
persons or families of low or moderate income, as defined in Section §50093 of the
Health and Safety Code.
• Number of residential dwelling units required for replacement of units authorized to be
demolished or converted that were occupied by persons or families of low or moderate
income, as defined in Section §50093 of the Health and Safety Code. Location of
replacement units on site, elsewhere within the locality's jurisdiction within the Coastal
Zone, or within three (3) miles of the Coastal Zone within the locality's jurisdiction, must
also be designated in the review.
62
Housing Element General Review
In the course of administering the Newport Beach Housing Element and preparing the 2000
Housing Element review and revision, the City of Newport Beach determined that the
previously adopted goals and policies continue to contribute to the attainment of California
State housing goals as well as the housing goals of Newport Beach. As a result, most of
those goals and policies have been retained to facilitate attainment of the 2000-2005 City
housing goals. Specific Housing Programs that have not been effective have been revised or
deleted. New Housing Programs have been added.
According to the Regional Housing Needs Assessment for 1989 -1994 produced by the
Southern California Association of Governments, the projected regional need for additional
housing units in the City of Newport Beach was 2,062 total new units. The distribution of these
new units according to income was as follows: Very Low-Income (299 units); Lower-Income
(408 units); Moderate-Income (359 units); and, High-Income (996 units). According to City of
Newport Beach Building Department records, 216 net units were produced in the City of
Newport Beach during the period between January 1,1989 and January 1,1994, and 1,050
net units were produced in Newport Beach during the period between January 1, 1994 and
January 1, 2000.
The City of Newport Beach's adopted quantified objectives (which included an adjustment to
RHNA) for the period between January 1, 1989 and January 1, 1994 were to provide 2,371
total new units during that time period, distributed as follows: Very Low-Income (272 units);
Lower-Income (284 units); Moderate-Income (647 units); and, High-Income (1,168 units).
Development of new residential units in projects considered to be major projects by the City of
Newport Beach between January 1, 1989 and January 1, 1994 totaled 240 units. The
projected new construction was not achieved because the City over projected development on
some sites and the owner of large parcels (The Irvine Company) did not construct new units in
the prescribed affordable range. The City currently is working with the Irvine Company and a
non-profit organization to develop a senior affordable project of up to 150 units at Bayview
Landing. The applicant is in the process of preparing a site plan and a development
application.
New units constructed in small projects, including second units and "granny" units, and
rehabilitated units were estimated to be approximately 421 for the period January 1, 1989 -
January 1, 1994. The total number of units identified for rehabilitation was 3,016. Incomes of
occupants of these units cannot be determined by the City.
The City of Newport Beach uses building permits as its sole source for quantitative records of
housing rehabilitation. However, it is impossible to ascertain which of the 2,521 building
permits issued for remodeling between January 1, 1989 and January 1, 1994 were for
rehabilitating substandard units. The City does not have a substantial incidence of
substandard dwelling units. According to the 1990 Census of Population and Housing, there
were:
• 231 dwelling units lacking complete kitchen facilities
• 111 dwelling units with no source of heating fuel
• 91 dwelling units lacking complete plumbing facilities
These units qualify as substandard dwelling units in the City of Newport Beach, although the
City does not keep statistics on such types of units. The City defines "substandard" in terms of
63
code enforcement issues, such as garage conversions, Most rehabilitation in the City was
accomplished without involvement of the City because of the high land and unit values in
Newport Beach, The City was not involved in any property condemnation cases between
January 1, 1989 and January 1, 1994,
The City of Newport Beach indicated in its 1992 Housing Element that 9,172 total units would
be conserved between 1989 and 1994 by applying the City Mobile Home Park Zone
Ordinance, applying the Condominium Conversion Regulations, and by applying Title 20 of the
Municipal Code regarding replacement housing, Title 20 permitted demolition of 241 dwelling
units between January 1, 1989 and January 1, 1994, It is not possible to determine incomes
of occupants of those units demolished,
The vacancy rate provision of the City Condominium Conversion Regulations prohibited
applications for conversion of rental units to condominiums, and there were no conversions
during 2001, Between the years of 1995 and 2000, a total of 167 apartment units were
converted to condominiums, In addition, a 140-unit apartment project located on Sea Lane
was demolished in 2000 and is being replaced by 92 condominiums,
Subsequent to the tenure of the Housing Element of 1989-1994, the City of Newport Beach
took the following actions to implement its Program objectives: Details regarding the
expenditures of these programs are provided in Appendix A
The City of Newport Beach received and spent $1,457,240 of Community Development Block
Grant funds between 1996 and 1999, The details on expenditures/programs for the funds are
explained in Appendix A
• The City of Newport Beach, between 1989 to 1994 and 1996 to 1999, participated in
County of Orange programs that provided housing -and social services for special
needs populations,
• The City of Newport Beach, during 1996-2002 was involved in continuing negotiations
with the Irvine Company and other residential developers for a senior residential
project.
• The City of Newport Beach collected $2,560,000 in-lieu fees for affordable housing
from developers of market-rate residential projects,
• The City established an Affordable Housing Task Force to work with the Irvine
Company and other parties to develop affordable housing projects,
The task force was instrumental in the Irvine Company's agreement to provide for
development of the Lower Bayview Landing site with up to 150 units for very low-and
low-income senior citizens,
The City Council issued Request for Proposals for projects on which to use the City's
affordable housing in-lieu fund, The three proposals received were either premature or
infeasible, and the City Council declined them, The Task Force continues to look for
potential housing sites and to work with potential developers of affordable housing, for
families as well as senior citizens,
64
Housing Element Coastal Zone Review
The City of Newport Beach uses Section 20.86 of the Municipal Code to implement
Government Code Section 65590 et. seq. Between January 1, 1989 and January 1, 1994,
190 new residential units were approved for construction within the California Coastal Zone.
Of these 190 new units, 24 were required to be developed and maintained as housing
affordable to low-income and moderate-income individuals and/or families pursuant to Section
§65590. During the same time period, the City permitted landowners to demolish 189
residential units within the Coastal Zone. Of the 189 units demolished, none were occupied by
low-income and/or moderate-income persons and/or families. Newport Beach approved
construction of 190 residential units in new housing developments in the California Coastal
Zone, which represents a total net increase of 1 residential unit and a total net increase of 24
residential units affordable to low-income and moderate-income individuals and/or families.
65
Year 2000 -2005 Housing Plan
Quantified Objectives
The Year 2000 Regional Housing Needs Assessment (RHNA) determined the City of Newport
Beach had a construction need for 476 residential units between January 1998 and January
2005. The total need for each target income group is as follows: Very Low-Income (86 units);
Low-Income (53 units); Moderate-Income (83 units); and, Above Moderate-Income (254 units).
The Year 2000 Housing Plan for Newport Beach has identified Goals, Policies, and Programs
that fulfill this construction need. The three potential sites identified in this Housing Element
(Newport Banning Ranch, Bayview Landing, and Avocado/MacArthur) could feasibly
accommodate as many as 727 residential units using the City's 25% density bonus allowance
for affordable projects.
The Newport Banning Ranch site has sufficient capacity (space and existing zoning) to allow
for the construction of at least 406 residential units (without applying a 25% density bonus).
Furthermore, the Bayview Landing site has sufficient capacity (space and existing zoning) to
allow for construction of up to 150 residential units. The Avocado/MacArthur site would
require a change of zone (to add a multiple-family residential use) to allow proposed
construction of 56 residential units (without density bonus) targeted for senior citizens.
The Newport Coast annexation area has a RHNA allocation of 945 units. Of these 945 units,
95 units are to be for low-income residents and 850 are to be for above-moderate income
residents. Achievement of the allocation will be through implementation of the Affordable
Housing Implementation Program (AHIP) established between the County of Orange and The
Irvine Company. The City will coordinate and oversee enforcement of the AHIP.
Following is a matrix indicating the maximum number of housing units that should be
constructed, rehabilitated, and conserved during the tenure of the Year 2000 Newport Beach
Housing Element.
* See discussion on page 63 regarding rehabilitation
66
Newport Beach Housing Element: Goals, Policies, and Programs
Goals for Housing Element success include the following: promoting quality residential
development through application of sound planning principles and policies that encourage
preservation, conservation, and appropriate redevelopment of housing stock; providing a
balanced residential community that contains a variety of housing types, designs and
opportunities for all economic segments of the community; extending ownership opportunities
to as many households as possible, particularly those of moderate and upper incomes
because these comprise the greatest demand; preserving and increasing housing affordability,
through rental housing, for very low-and low-income households; and, providing housing for
special needs groups. The policies and programs described below focus on providing
appropriate and affordable housing opportunities and related services to the special needs
populations most in need of such in Newport Beach, that is, in particular to senior citizens.
Additionally, the policies and programs (particularly under Goals 3, 4 and 5) will ensure that
the City will meet its RHNA of 476 total new units for Newport Beach and 945 total new units in
Newport Coast.
For purposes of defining income groups, the Housing Element follows the regulations of
Title 25 (Housing and Community Development) of the California Code of Regulations,
§6910 through 6932. The income groups are defined as follows:
Very Low-income: 50% or less of the area median income, as adjusted for family size
by the United States Department of Housing and Urban Development.
Low-income: 50%-80% of the area median income, as adjusted for family size by the
United States Department of Housing and Urban Development.
Moderate-income: 80%-120% of the area median income, as adjusted for family size
by the United States Department of Housing and Urban Development.
Above Moderate-income: 120% + of the area median income, as adjusted for family
size by the United States Department of Housing and Urban Development.
The following affordability standards shall apply to rental and ownership housing:
• Maximum household income shall be determined by number of persons in a
family or household.
• Income shall be in conformance with the limits set forth in 25 C.C. R. §6932.
• An efficiency unit as if occupied by one person; a one bedroom as if occupied by
two persons; a two bedroom as if occupied by four persons; a three bedroom as if
occupied by six persons; and a four bedroom as if occupied by eight.
• Rents for very low-, low, and moderate-income households shall be no more than
30% of the income limits set forth in §6932. The selling price of an ownership unit
shall be no more than 3 times the buyer's income. Units may be sold to buyers
with qualifying incomes for the limited sales price without regard to the number of
persons in the family.
67
GOAL 1:
Specific Goals, Policies, and Programs of the Year 2000 Newport Beach Housing
Plan follow.
MAINTAIN QUALITY RESIDENTIAL DEVELOPMENT THROUGH
APPLICATION OF SOUND PLANNING PRINCIPLES AND POLICIES THAT
ENCOURAGE PRESERVATION, CONSERVATION, AND APPROPRIATE
REDEVELOPMENT OF THE NEWPORT BEACH HOUSING STOCK.
Policy 1.1 Support all reasonable efforts to preserve, maintain, and improve
availability and quality of existing housing and residential neighborhoods,
and ensure full utilization of existing City housing resources for as long
into the future as physically and economically feasible.
Housing Program 1.1.1 --Improve housing quality and prevent deterioration of existing
neighborhoods by strictly enforcing Building Code regulations and abating Code
violations and nuisances. Enforcement activities will focus on property
maintenance, eliminating derelict or abandoned vehicles, outdoor storage, or
other situations that may constitute health, safety or fire hazards.
Responsibility for realization of this program is that of the Planning Department,
Building Department and the City Attorney.
Housing Program 1.1.2 --Reduce the potential for criminal activity by providing guidelines for
maintaining the security of existing development with emphasis on site design
(such as security lighting, vegetation removal, electronic garage door openers,
window security, and other crime prevention techniques).
Responsibility for realization of this program is that of the Planning Department
and Police Department
Housing Program 1.1.3 --Promote the maintenance and upkeep of rental housing by
encouraging the California State Franchise Tax Board to enforce the California
Revenue and Taxation Code Sections §17299 and §24436.5, preventing
owners of rental housing from claiming depreciation, amortization, mortgage
interest, and property tax deductions on State Income Tax reports.
Responsibility for realization of this program is that of the City Attorney.
Housing Program 1.1.4 --Continue to participate with the Orange County Housing Authority
and Housing and Community Development Division in their administration of
rehabilitation loans and grants for low-and moderate-income homeowners and
rental property owners to encourage preservation of existing City housing stock.
Responsibility for realization of this program is that of the Planning Department.
68
Housing Program 1.1.5·· Continue to require replacement of housing demolished within the
Coastal Zone when housing is (or has been occupied by low-and moderate
income households within the preceding 12 months). The City shall prohibit
demolition unless a Coastal Residential Development Permit has been issued.
The specific provisions implementing replacement unit requirements are
contained in Municipal Code Section 20.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 1.1.6·· Participate in a cooperative program with the Orange County
Housing and Community Development Program Office for administration of the
Housing and Urban Development Rental Rehabilitation Program. Energy
efficient products shall be required when appropriate.
Responsibility for realization of this program is that of the Planning Department
and Building Department.
Housing Program 1.1.7 .. Should need arise, consider using a portion of its Community
Development Block Grant funds for establishment and implementation of an
emergency home repair program. Energy efficient products shall be required
whenever appropriate.
Policy 1.2
Responsibility for realization of this program is that of the Planning Department.
Monitor development proposals for opportunities to maintain, increase, or
enhance affordable housing opportunities.
Housing Program 1.2.1 •• As part of its annual General Plan Review, the City shall provide
information on the status of all housing programs. The portion of the Annual
Report discussing Housing Programs is to be distributed to the California
Department of Housing and Community Development in accordance with
California State law prior to October 1 st of each year by US Postal Service.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 1.2.2·· Investigate availability of Federal, State, and local programs
(including in-lieu funds) and pursue these programs if found feasible, for the
preservation of existing low-income housing, especially for preservation of low-
income housing that may increase to market rates during the next ten (10)
years. A list of these programs, including sources and funding amounts, will be
identified as part of this program and maintained on an on-going basis.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 1.2.3 •. As part of the annual General Plan review, monitor existing
programs designed to preserve assisted housing developments for very low-
and low-income households to determine whether additional actions are
available and should be required to protect these developments.
Responsibility for realization of this program is that of the Planning Department
69
Policy 1.3 Support the intent and spirit of equal housing opportunities as expressed
in Title VII of the 1968 Civil Rights Act, California Rumford Fair Housing
Act, and the California Unruh Civil Rights Act.
Housing Program 1.3.1 --Continue to contract with the Orange County Fair Housing Council
for administration of the Fair Housing Program including updating the analysis
of impediments to fair housing. In addition, continue to contract with the
Orange County Housing Authority to refer fair housing complaints. Pamphlets
containing information related to fair housing complaints will continue to be
provided to the public at the Planning Department.
Responsibility for realization of this program is that of the Planning Department
and City Attorney.
Housing Program 1.3.2 --Support fair housing opportunities by using Community
Development Block Grant funds whenever necessary to enact Federal, State,
and City fair housing policies.
Policy 1.4
Responsibility for realization of this program is that of the Planning Department.
Review the Housing Element on a regular basis to determine
appropriateness of goals, policies, programs, and progress of Housing
Element implementation.
Housing Program 1.4.1 --Monitor progress on each of the programs in the Housing Plan and
periodically report findings to the Planning Commission and City Council.
Propose recommendations for amendments if necessary.
Responsibility for re"jj",,,,;;v,, .:.: ~:-:~ orogram is that of the Planning Department.
Housing Program 1.4.2 --Whenever land use regulations, land use designations, or Housing
Programs are proposed for adoption or modification, the City of Newport Beach
Planning Department shall undertake an analysis to determine if the proposed
action or regulation is consistent with the Housing Element, all other elements
of the General Plan, and with all adopted City Council Policies. If the proposal
is inconsistent, the policy, plan or Element shall be amended in conjunction with
approval of the proposed regulation or action to ensure consistency.
Consistency shall be achieved whenever a regulation, action or project is
approved.
Responsibility for realization of this program is that of the Planning Department
and Planning Commission.
Policy 1.5 Maintain and preserve existing City housing stock and improve energy
efficiency of all housing unit types (including mobilehomes)
Housing Program 1.5.1 --Investigate the use of Federal funds to provide technical and
financial assistance, if necessary, to all eligible homeowners and residential
rental property owners to rehabilitate existing dwelling units through low-
interest loans or potential loans, or grants to very low, low-and moderate-
income, owner-occupants of residential properties to rehabilitate existing units.
Responsibility for realization of this program is that of the Planning Department.
70
Housing Program 1.5.2 --Periodically inform mobile home owners of financial assistance
available from the State of California Department of Housing and Community
Development for eligible owner-occupants to rehabilitate existing dwelling units
through deferred payment low-interest loans.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 1.5.3 --Per Government Code Section §65863.7, a Mobile Home Park
Conversion Permit shall be required as a prerequisite for conversion of an
existing mobile home park. In addition, the owner of the mobile home park
shall provide a detailed relocation impact report. The report shall be filed
concurrently with filing for any discretionary permit on such property.
GOAL 2
Policy 2.1
Responsibility for realization of this program is that of the Planning Department
and the State of California. (The State will determine acceptability of the permit
for conversion).
PROVIDE A BALANCED RESIDENTIAL COMMUNITY, COMPRISED OF A
VARIETY OF HOUSING TYPES, DESIGNS, AND OPPORTUNITIES FOR
ALL SOCIAL AND ECONOMIC SEGMENTS, INCLUDING VERY LOW-,
LOW-, MODERATE-, AND UPPER-INCOME INDIVIDUALS AND
HOUSEHOLDS.
Encourage preservation of existing, and provision of new housing
affordable to very low-and low-income households.
Housing Program 2.1.1 --Maintain rental opportunities by restricting conversions of rental
units to condominiums unless the vacancy rate in Newport Beach for rental
housing is 5% or higher for four (4) consecutive quarters, and unless the
property owner complies with condominium conversion regulations contained in
Chapter 20.83 of the Newport Beach Municipal Code.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 2.1.2 --Take all feasible actions, through use of development agreements,
expedited development review, and expedited processing of grading, building and
other development permits, to ensure expedient construction and occupancy for
projects approved with low-and moderate-income housing requirements.
Responsibility for realization of this program is that of the Planning Department
and the City Council.
Housing Program 2.1.3 --The City Council and Planning Commission shall have discretion to
review and waive planning and park fees, and modify development standards
(e.g. parking, setbacks, lot coverage, etc.) for developments containing low-and
moderate-income housing in proportion to the number of low-and moderate-
income units in each entire project.
Responsibility for realization of this program is that of the City Council.
71
Housing Program 2.1.4 --Continue to encourage the California State Department of Real
Estate and California State Department of Housing and Community
Development to permit installation of mobile homes, factory-built housing, or
other construction technology, provided such products comply with
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.
Responsibility for realization of this program is that of the Planning Department
and the Building Department.
Housing Program 2.1.5 --Continue to participate with the County of Orange in the issuance of
tax-exempt mortgage revenue bonds to facilitate and assist in financing,
development and construction of housing affordable to low and moderate-income
households. City staff shall encourage developers of remaining residential sites to
use tax-exempt mortgage revenue bonds to facilitate construction of low-and
moderate-income housing.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 2.1.6 -Develop and implement an annual compliance-monitoring program for
units required to be occupied by very low-, low-, and moderate-income
households as approved with the development of Newport Coast and in
accordance with the Newport Coast Affordable Housing Implementation Program
(AHIP).
Responsibility for realization of this program is that of the Planning Department.
Policy 2.2 Encourage the housing development industry to respond to housing
needs of the community and to the demand for housing as perceived by
the industry, with the intent of achieving the Regional Housing Needs
Assessment construction goals within five (5) years.
Housing Program 2.2.1 --Continue to require a proportion of affordable housing in new
residential 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-, low-, and moderate-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-, low-,
and moderate-income households, or, b) require the payment of an in-lieu fee,
depending on the following criteria for project size:
1. Projects where ten or fewer housing units are proposed shall be required to pay
the in-lieu fee (s).
2. Projects where the proposal is for more than ten housing units, but fewer than
fifty, shall have the option of providing the units or paying the in-lieu fee (s).
3. Projects where more than fifty units are proposed shall be required to provide
the units.
72
All required very low-, low-, and moderate-income units shall be provided on-site
unless at an off-site location approved by the City. Implementation of this program
will occur in conjunction with City approval of any residential discretionary permits
or Tentative Tract Maps. To insure compliance with the 20% affordability
requirements, the City will include conditions in the approval of discretionary
permits and Tentative Tract Maps to require ongoing monitoring of those projects.
Responsibility for realization of this program is that of the Planning Department,
Planning Commission and City Council.
Housing Program 2.2.2 --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. Responsibility
for realization of this program is that of the Planning Department, Planning
Commission and City Council.
Housing Program 2.2.3 --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 feasible in projects of 10 or more units. Whenever
practicable, the City shall require they be located on-site; alternatively, the City
may permit the developer to locate units off-site but within the Coastal Zone, or
within three (3) miles of the Coastal Zone (within Newport Beach). All residential
developments of three units or more within the Coastal Zone shall require a
Coastal Residential Development Permit. Determinations of feasibility, and
procedures relating to provision of low-and mqderate-income housing within the
Coastal Zone, shall be governed by Newport Beach Municipal Code Title 20.
Responsibility for realization of this program shall be that of the Planning
Department and the City Council.
Housing Program 2.2.4 --All required affordable units shall have restrictions to maintain their
affordability for a minimum of 30 years.
Responsibility for realization of this program is that of the Planning Department,
City Attorney and City Council.
Housing Program 2.2.5 -. Attempt to ensure that existing landowners and prospective
developers are aware of affordable housing development opportunities
available within the Newport Banning Ranch, Bayview, and Avocado/MacArthur
properties.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 2.2.6 •. The Affordable Housing Task Force and/or City staff shall
periodically contact known local developers and landowners to solicit new
affordable housing construction.
Responsibility for realization of this program is that of the Planning Department.
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Housing Program 2.2.7 --The Affordable Housing Task Force shall create a program for the
expenditure of in-lieu housing funds.
Responsibility of this program shall be the Affordable Housing Task Force and the
Planning Department.
Housing Program 2.2.B --When it is determined to be of benefit, the City shall participate in
other housing assistance programs that assist production of housing.
Respons'lbility for realization of this program is that of the Planning Department.
Policy 2.3 Approve, wherever feasible and appropriate, mixed residential and
commercial/industrial use developments that improve the balance
between housing and jobs.
Housing Program 2.3.1 --Newport Beach Staff and developers of proposed major
commercial/industrial projects shall study housing impact(s) of such project(s)
during the development review process. Prior to project approval, a housing
impact assessment shall be developed by the City with the active involvement
of the developer. Such assessment 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 "Greenlight" initiative.
Responsibility for realization of this program is that of the Planning Department
and Planning Commission.
Housing Program 2.3.2 -As part of the comprehensive General Plan Update, investigate the
potential of housing (including single room occupancy hotel(s)) and mixed use
development in areas such as Newport Center, Santa Ana Heights, Bay Knolls
and John Wayne Airport.
GOAL 3
Policy 3.1
EXTEND HOUSING OPPORTUNITIES TO AS MANY RENTER AND OWNER
OCCUPIED HOUSEHOLDS AS POSSIBLE IN RESPONSE TO THE DEMAND
FOR HOUSING IN THE CITY.
Mitigate potential governmental constraints to housing production and
affordability by increasing the City of Newport Beach role in facilitating
construction of moderate-and upper-income ownership housing.
Housing Program 3.1.1 --Increase the efficiency of the building permit process by insuring
that the initial plan review be completed within 4 weeks for 90% of all
submittals. This will include an automated tracking system allowing applicants
to monitor plan check progress via the Internet. Implementation of this program
began in September 2002 and operates on an on-going basis.
Responsibility for realization of this program is that of the Planning and Building
Department
74
Housing Program 3.1.2 --When a residential developer agrees to construct housing for
persons and families of low and moderate income, the City shall either (1) grant a
density bonus or (2) provide other incentives of equivalent financial value.
Responsibility for realization of this program is that of the Planning Department.
Policy 3.2 Enable construction of new housing units sufficient to meet City
quantified goals by identifying adequate sites for their construction.
Housing Program 3.2.1 --Identify the following sites as adequate, which will be made
available through appropriate zoning and development standards and with
public services and facilities needed to facilitate and encourage development of
a variety of housing types to meet City housing goals as identified pursuant to
Government Code Section §65583(b): Newport Banning Ranch; Bayview
Landing; and, Avocado/MacArthur.
Responsibility for achieving this program is that of the Planning Department and
City Council.
Housing Program 3.2.2 --Require the developer(s) of the 4.5-acre site located on the
southwesterly corner of the intersection of Jamboree Road and 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. -
Responsibility for implementation of this program is that of the Planning
Department and City Council.
Housing Program 3.2.3 --Encourage the developer(s) of a 3.5-acre site located northerly of
San Miguel, easterly of Avocado Avenue, and westerly of MacArthur Boulevard
(known as the Avocado/MacArthur site) to provide at least fifty-six (56) multiple-
family residential units for Senior Citizen Households. The City shall assist the
developer(s) by initiating a Change of Zone within one (1) year 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 requirements on said
Avocado/MacArthur site.
Responsibility for implementation of this program is that of the Planning
Department and City Council.
Housing Program 3.2.4 --When requested by property owners, the City of Newport Beach
shall continue to approve rezoning of developed or vacant property from non-
75
residential to residential uses when appropriate. These rezoned properties shall
be added to the list of sites for residential development.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 3.2.5 -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.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 3.2.6 --Encourage the participation in a Joint Powers Authority of Orange
County jurisdictions for the purpose of financing and administering a lease
purchase program for first-time homebuyers.
Responsibility for realization of this program is that of the Planning Department
and City Council.
Housing Program 3.2.7 --Continue to participate as a member of the Orange County Housing
Authority Advisory Committee and work in cooperation with the Orange County
Housing Authority to provide Section 8 Rental Housing Assistance to residents of
the community. The City shall, in cooperation with the Housing Authority,
recommend and 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 'Vithin 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.
GOAL 4
Responsibility for realization of this program is that of the Planning Department.
PRESERVE AND INCREASE AFFORDABILITY OF THE CITY'S HOUSING
STOCK FOR VERY LOW-, LOW-, AND MODERATE-INCOME
HOUSEHOLDS.
Policy 4.1 Encourage the extension of the affordability contracts for the ten (10)
developments listed in Table 12 (City of Newport Beach Assisted Housing
Summary) of this Housing Element beyond the years noted.
Housing Program 4.1.1 --Periodically contact owners of affordable units for those
developments listed in Table 29 to obtain information regarding their plans for
continuing affordability on their properties.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 4.1.2 --Consult with the property owners regarding utilizing CDBG funds
and in-lieu housing funds to maintain affordable housing opportunities in those
developments listed in Table 29.
Responsibility for realization of this program is that of the Planning Department.
76
Housing Program 4.1.3 --Prepare written communication for tenants and other interested
parties about Orange County Housing Authority Section 8 renewals to assist
tenants and prospective tenants to acquire additional understanding of housing
law and related policy issues.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 4.1.4 --Continue to pursue Community Development Grant Funds to facilitate
construction of housing for very low-and low-income households. Use of CDBG
funds may include but shall not be limited to site acquisition, "off-setting" of land
and/or construction costs.
GOAL 5
Responsibility for realization of the program is that of the Planning Department.
PROVIDE HOUSING OPPORTUNITIES FOR SPECIAL NEEDS
POPULATIONS.
Policy 5.1 Encourage approval of housing opportunities for senior citizens and other
special needs populations.
Housing Program 5.1.1 --Apply for United States Department of Urban Development
Community Development Block Grant funds and allocate a portion of such
funds to SUb-recipients who provide shelter and other services for the
homeless.
Responsibility for realization of this program is that of the Planning Department
and the City Council.
Housing Program 5.1.2 --As a condition of receiving housing funding through the City, the
City shall require social service agencies receiving such funds record
information on clients they serve and provide an annual audit of their activities.
Responsibility for realization of this program is that of the Planning Department.
Housing Program 5.1.3 --Cooperate with the Orange County Housing Authority to pursue
establishment of a Senior/Disabled or Limited Income Repair Loan and Grant
Program to underwrite all or part of the cost of necessary housing modifications
and repairs. Loans would be repaid or forgiven on an ability to pay basis.
Health and safety deficiencies would receive priority. Modifications for
accessibility also would be appropriate. Administration of funds would be the
responsibility of the Orange County Housing Authority. Cooperation with the
Orange County Housing Authority will include continuing City of Newport Beach
participation in the Orange County Continuum of Care and continuing to provide
CDBG funding
Responsibility for realization of this program is that of the Planning Department
and the City Council.
77
Housing Program 5.1.4 --Continue to permit development of senior citizen housing facilities
in all residential and commercial zoning districts pursuant to Zoning Code
Sections 20.10.020 and 20.15.020(b).
Responsibility for realization of this program is that of the Planning Department.
Housing Program 5.1.5 --Continue to permit, where appropriate, development of "granny"
units in single-family areas of the City. Consider amending the zoning code to
allow approval of "granny units" at the staff level instead of by the Planning
Commission.
Responsibility for realization of this program is that of the Planning Department.
1-lousing Program 5.1.6 --Consistent with development standards in residential and
commercial areas, continue to permit emergency shelters and transitional
housing under group housing provisions in its Zoning Code.
Responsibility for realization of this Program is that of the Planning Department.
Housing Program 5.1.7 --The City of Newport Beach shall investigate State Housing
Opportunities for Persons with AIDS (HOPWA).
Responsibility for realization of this Program is that of the Planning Department.
Housing Program 5.1.8 --Notify residential developers (upon application for a discretionary
permit) and to interested individuals and families, the following Table entitled
"Public and Private Resources Available for Housing and Community
Development Activities." This table is include,d in Appendix 4 to this Housing
Element.
Housing Program 5.1.9--By December 2003, the City of Newport Beach shall analyze and
determine whether there are constraints on the development, maintenance and
improvement of housing intended for persons with disabilities, consistent with
Senate Bill 520 enacted January 1, 2002. If any constraints are found, the City
will take subsequent actions within six months of the completion of the
evaluation. The analysis will include an evaluation of existing land use controls,
permit and processing procedures and building codes. If any constraints are
found in these areas, the City will initiate actions to address these constraints,
including removing the constraints or providing reasonable accommodation for
housing intended for persons with disabilities. Responsibility for realization of
this program is the Planning Department.
The Goals, Policies, and Programs established above particularly provide policy assurance the
housing and social service needs of "special needs" populations in the City of Newport beach
will be attained. Additionally, those policies and programs will ensure that the Regional
Housing Needs Assessment of 476 total new units for Newport Beach and 945 units for
Newport Coast between 2000 and 2005 will be met according to the household income
categories identified in this Housing Element.
78
APPENDIX 1
(LIST OF CDBG PROJECTS (1996 -2001»
• The City of Newport Beach received and spent over $2,000,000 of Community
Development Block Grant funds between 1996 and 2001. Those monies were
allocated as follows.
o 1996 -1997
Housing -$70,517 (Homeless Support Services; two guaranteed apartment
programs for households "at risk" of becoming homeless; housing assistance
for Extremely Low Income, Very Low Income, and Low Income persons from
Newport Beach). Two homeless assistance programs were located in the City
of Newport Beach and provided assistance program to Newport Beach
individuals and/or families and one other homeless assistance was located near
the City of Newport Beach and provided assistance to individuals and/or
families from Newport Beach:
Substance Abuse Counseling
Meals for Disabled and Senior Citizens
Removal of Architectural Barriers
Housing Services
$ 1,500
$ 35,983
$308,000
$ 11,240
The amount spent on housing was reduced from previous years in response to
neighborhood revitalization needs.
Additionally, in 1996 the City of Newport Beach received Section 8 Certificates and
Vouchers totaling $929,858 that was applied to 114 households.
The City did not fund any new residential projects during Fiscal Year 1996 -1997 that
resulted in provision of additional affordable housing units.
o 1997 -1998
Friends in Service to Humanity (homeless assistance);
SPIN (substance abuse counseling)
Orange County Interfaith Shelter (homeless assistance)
YWCA (homeless assistance)
Friends in Service to Humanity (meals for senior citizens)
Fair Housing Counseling Services (administration)
Olive Crest (abused children assistance)
Mercy Housing (homeless assistance)
Neighborhood Revitalization
$ 20,000
$ 8,000
$ 8,555
$ 8,280
$ 19,915
$ 90,496
$ 20,000
$10,000
$304,750
The City did not fund any new residential projects during Fiscal Year 1997-1998 that
resulted in provision of additional affordable housing units.
79
o 1998-1999
Appraisal of Balboa Theater $ 7,500
Friends in Service to Humanity (housing subsistence
payments to 200 people) $ 20,000
SPIN (substance abuse counseling for homeless
and people living with HIV/AIDS, assistance for 8 people) $ 8,000
Orange County Interfaith (temporary shelter for 30
people from Newport Beach) $ 8,555
YWCA (temporary [60 days] shelter for 5 people
from Newport Beach) $ 8,280
Friends in Service to Humanity (meals for elderly) $ 19,915
South County Senior services (meals) $ 12,500
Fair Housing Counseling Services (administrative services)$ 12,500
General Management (program administration) $ 90,496
Olive Crest (assistance for 10 abused children) $ 20,000
Mercy House (homeless assistance for 10 people) $10,000
Public Facilities 1m provements $269,150
Code Enforcement $ 28,100
o 1999 -2000
Code Enforcement -Balboa Peninsula
Fair Housing
FISH -Homeless Emergency Assistance
FISH -Mobile Meals
Orange Coast Interfaith Shelter -Temporary Shelter
South County Senior Services
Program Administration
Public Facilities
SPIN -Substance Abuse Rehabilitation Program
YWCA Hotel -Temporary Shelter
o 2000-2001
WISE Place (emergency shelter services and related
support for 2 or more people from Newport Beach)
Fair Housing Council of Orange County
$25,000
$13,992
$12,090
$15,171
$ 7,713
$15,170
$ 85,008
$339,902
$19,106
$ 5,000
$ 4,000
(administrative services) $13,788
SPIN (emergency assistance for homeless through substance
abuse rehabilitation program for low income families) $10,000
South County Senior Services, Inc. (mobile meals
program for senior citizens)
Orange County Interfaith Shelter (temporary housing and
related support services)
Olive Crest (housing and related support services)
Friends in Service to Humanity (homeless emergency
assistance program)
Friends in Service to Humanity (mobile meals program).
80
$15,600
$ 8,000
$ 5,000
$16,500
$15,600
Approximately $160,092 (10.6%) of City Community Development Block Grant
funds ($1,515,228) was directly used for housing during Fiscal Year 2000-2001.
81
APPENDIX 2
SOCIAL SERVICE PROGRAMS
The following programs are located in, and near, the City of Newport Beach and serve many
Newport Beach residents, including the elderly.
Orange County Housing Authority (2043 North Broadway, Santa Ana) offers rental assistance
for elderly and non-elderly in the County. The Section 8 "Certificate" and "Housing Voucher"
programs were established by Federal law. Both provide rental assistance for low-income
persons (those having incomes 80% or less of the County median income) in need of decent,
safe, and sanitary housing. The "Certificate" program requires families pay a portion of their
rent, but an amount not to exceed thirty (30) percent of their adjusted income. Total amount
of the rental unit must be approved by the Housing Authority based on utilities, location, and
the condition of each rental dwelling. Additionally, total rent must fall within Housing Authority
Fair Market Rent limits. It should be noted that United States Department of Housing and
Urban Development regulations were modified in October, 2000 to allow Section 8 monies to
le used for home purchases in addition to rental assistance.
-he "Housing Voucher" program allows families to pay more than 30 percent of their adjusted
~ome toward rent should they wish to rent a housing unit that has a rent greater than Fair
lrket Rent. Families pay the difference between the rental price of the dwelling and the
using Authority portion of the rent. The Housing "Certificate" Program (which will be
mbined under a "New Voucher" Program by October 1, 2001) provides rental assistance for
,milies renting housing units that charge Fair Market Rent. No assistance is provided to the
enter beyond Fair Market Rent should the renter choose a unit more expensive than Fair
Market Rent. The Housing Authority does not have figures on how many elderly are waiting
for assistance, but has indicated that approximately 5,000 people are on a waiting list to obtain
assistance.
Although the following service organizations do not provide housing for the elderly, those
organizations provide services to the elderly that assist the elderly in affording housing in
Newport Beach.
Meals on Wheels, a Home Delivered Meals Program -provides hot meals to elderly shut-ins and
is available in Newport Beach. This Program is administered by South County Services, which
has indicated it serves 30 -35 congregate meals daily at the OASIS Senior Center in Newport
Beach and delivers 3 meals daily to 23 (approximately 17,250 total meals annually) Newport
Beach residents.
OASIS Senior Center (800 Marguerite Avenue, Corona del Mar) -This is a multi-purpose
center dedicated to meeting needs of senior citizens and their families. OASIS estimates as
many as 75 percent of its clients are residents of Newport Beach. OASIS offers classes in art,
exercise, mature driving, topics of enrichment, and computers and arranges social groups for
those who share hobbies and interests. The Center travel department coordinates day and
overnight trips. OASIS offers transportation programs (3 vans) for Newport Beach seniors
who have disabilities that limit their access to public transportation. This shuttle program
provides transportation from senior citizens' homes to the Senior Center. A Care-A-Van
program is available for those senior citizens who require transportation for medical
appointments, grocery shopping and banking. OASIS distributes information about job
openings that might interest seniors who wish to supplement their retirement income or to
remain active through part-time work. OASIS offers various health services for seniors.
Support groups meet regularly at the Center to help senior citizens and their families cope with
82
stress, illness, life transitions, and crises. Informational and supportive counseling is available
to seniors and their family members on an individual basis. OASIS also offers a lunch
program for active and homebound senior citizens ages 60 and older that is funded by the
Federal government through the Older American Act. A donation is requested for meals,
which are provided by South County Senior Services.
The year 2000 operating budget for OASIS Senior Center was $470,000. Funding sources for
OASIS include the following: the City of Newport Beach; Friends of OASIS, a non-profit
support group that contributes approximately $200,000 annually to OASIS and funds other
special events, services through grants; and, fees charged for some classes offered, facility
rental, and transportation.
South County Senior Services (24300 EI Toro Road, Building A, Suite 2000, Laguna Woods)
is a regional non-profit charitable organization that has as its mission to promote, advocate
and improve quality of life, dignity, and independence of the elderly. This organization serves
approximately 10,000 seniors annually in its combined programs. South County Senior
Services receives funding from federal grants, project income, MediCal, client fees, USDA,
funding drives, and special events. South County Senior Services provides medical treatment
lrograms for adults eighteen years or older with disabilities or impairments who are at risk of
stitutionalization, including nursing services, occupational and physical therapy, speech
grapy, nutrition, music therapy, counseling, supervised social and educational activities,
ercise, special events, music, and art to delay institutionalization and social isolation. South
ounty Senior Services has an Alzheimer's treatment center and an in-home assessment
!rogram to determine needs of frail seniors, 60 years of age and older, and to establish a
?Ian-of-Care for services needed to assist seniors to maintain independence in their own
homes for as long as possible. The Meals-On-Wheels program provides meals to individuals
60 years of age and older who are living at home and unable to prepare their own meals, or
who are unable to go out to eat, or who have little or no assi$tance to obtain adequate meals.
A transportation program coordinates lift-equipped paratransit services for senior centers. A
referral service for In-Home Providers is offered to help seniors maintain independence in their
own homes for as long as possible. Various programs and services are offered to rneet
educational, recreational, social, and human service needs of the elderly population. The
Shared Housing Program was designed for seniors and various age groups to share their
existing homes for companionship and relief from financial burden of housing costs for short-
or long-term tenures. This Program had operated throughout the 1990s, but was discontinued
in 2000 because the County of Orange discontinued Community Development Block Grant
Funds for the Shared Housing Program.
Assistance League of Newport Mesa ( 2220 Fairview Road, Costa Mesa, CA (949) 645-6029)
-is a non-profit volunteer service organization that assesses and helps meet the physical,
material, emotional and cultural needs of the children in our community through self-funded,
ongoing philanthropic projects. Programs include "Childrens Dental Health Care Center"
providing oral hygiene instruction, general dentistry, orthodontia and endodontics. The
Assistance League also provides "Operation School Bell" providing clothing, shoes, school
uniforms and backpacks at no cost to children of low-income families. Still another program
includes "Kids on the Block," a nationally recognized educational program that teaches young
adults increased understanding and tolerance for fellOW classmates who have learning
disabilities, physical handicaps or special emotional needs. The latest program, "The
Community Outreach Program" provides funding for supplies used in supervised study
programs for developmental education, parenting classes and counseling, living expenses for
single parents, and day care at accredited facilities.
83
APPENDIX 2
AGENCIES PROVIDING EMERGENCY SHELTER
AND ASSISTANCE
Orange County Housing Authority (2043 North Broadway, Santa Ana) offers rental assistance
for those individuals and families in the County in danger of becoming homeless. The Section
8 "Certificate" and "Housing Voucher" programs were established by Federal law. Both
provide rental assistance for low income persons (those having incomes 80% or less of the
County median income) in need of decent, safe, and sanitary housing. The "Certificate"
program requires families pay a portion of their rent, but an amount not to exceed thirty (30)
percent of their adjusted income. Total amount of the rental unit must be approved by the
Housing Authority based on utilities, location, and the condition of each rental dwelling.
Additionally, total rent must fall within Housing Authority Fair Market Rent limits. It should be
noted that United States Department of Housing and Urban Development regulations were
modified in October, 2000 to allow Section 8 monies to be used for home purchases in
addition to rental assistance.
The "Housing Voucher" program allows families to pay more than 30 percent of their adjusted
lcome toward rent should they wish to rent a housing unit that has a rent greater than Fair
3rket Rent. Families pay the difference between the rental price of the dwelling and the
lusing Authority portion of the rent. The Housing "Certificate" Program (which will be
.mbined under a "New Voucher" Program by October 1, 2001) provides rental assistance for
,milies renting housing units that charge Fair Market Rent. No assistance is provided to the
"enter should the renter choose a unit more expensive than Fair Market Rent. According to
the Orange County Housing Authority, there are more than 2,000 Certificates in existence in
Orange County.
Orange Coast Interfaith Shelter -This is an agency that provipes housing, meals, employment
services, and a children's program. The Orange Coast Interfaith Shelter is the largest family
shelter in Orange County and operates on an annual budget of $500,000. The City of Newport
Beach provided $8,000 (1.6%) of that operating budget during the time period July 1, 1999 -
June 30, 2000. Temporary shelter is offered to families and single women on an emergency
(3 - 7 days/month) or transitional (2 -7 months) basis. During the time period noted
previously the Interfaith Shelter provided temporary shelter to 80 -90 households that
indicated a most recent permanent address in the City of Newport Beach. This indicated the
percentage of total households assisted (2,070) that were from Newport Beach was between
3.9% and 4.3%, although the City provided 1.6% of the Interfaith Shelter annual budget. The
raciallethnic identifications of the 2,070 served were as follows: Caucasian (831); Hispanic
(617); African American (354); Native American (57); Asian American (26); Biracial (64); and
Other (33). The Interfaith Shelter also provided 57,295 meals to special needs populations
during the time period noted. Additionally, the Interfaith Shelter provided children's programs
to the 30 -40 children who commonly receive shelter at anyone time. Furthermore, the
Interfaith Shelter indicated it provided temporary shelter to 226 single mothers (female heads
of households) during the time period noted. Many of the female heads of households served
were women over the age of 50 with mental health disabilities.
Saddleback Community Outreach (23011 Moulton Parkway, Suite 12) is a non-profit
organization that opened in August 1989. It is funded with federal (Super NOFA) monies,
monies from local jurisdictions, and monies from faith-based organizations in the following
areas: "in-kind" Donations Programs; Sponsorship and Underwriting for Programs and
Fundraising Events; Housing Fund Donations; Food Drives; and, "Adopt-A-Family" Holiday
Programs (which provides a holiday meal at Thanksgiving and holiday meal and gifts in
84
December). The major objective of Saddle back Community Outreach programs and services
is to help those assisted become self-supportive. This organization operates without paid
administrators. Of the more than 100 volunteers within the organization, some are selected
and trained to function as directors, evaluators, coordinators, and care workers. Saddleback
Community Outreach is involved in four active programs to meet critical housing needs of its
clients, who number 5,200 annually. The Emergency Lodging Program is intended for
homeless families needing temporary housing until a permanent residence is established. The
Housing Assistance Program is intended for families needing an interest free loan to prevent
eviction or to assist with move-in costs. The Interfaith Shelter Program is a six-month program
available for homeless singles seeking employment, shelter and counseling. The Transitional
Housing Program is a two-year program for homeless families. Applicants are screened by
the Housing Committee to assess each family's ability to pay a reduced rent in a
condominium, maintain employment, set goals, meet commitments and attend practical
counseling for budget management. The Saddleback Community Outreach
PantrylWarehouse distributes more than 150,000 pounds of food annually to families or
individuals in need and hosts SHARE, a program enabling people to buy up to $35.00 worth of
groceries for $15.00. Saddle back Community Outreach also will pay a portion of a family's
utility bill to help avoid disconnection of services. Additional services include vouchers for
adults and children to obtain clothing at local thrift stores, gasoline vouchers or bus tickets for
transportation to job interviews or physician appointments, donation of automobiles contributed
to Saddleback Community Outreach to clients in need, medical prescription vouchers for pre-
screened families or individuals, "motivational counseling" to help restore hope and
confidence, "practical counseling" to assist in goal setting, budget management and future
planning, and referrals to local agencies for other counseling needs.
YMCA -The Newport Beach YMCA offers physical activities classes and personal hygiene
facilities. During 2000, the YMCA has provided 234 daily showers for those who identified
themselves current or most recently as Newport Beach resid~nts (out of a total 4,000 annually
provided daily showers) and 858 single-day guest passes for identified current or recent Newport
Beach residents. The percentage of daily showers for those from Newport Beach compared to
the total of annual showers is 5.9%. The YMCA estimates approximately fifty (50) percent of its
clients come from the Newport Beach/Costa Mesa area. The City of Newport Beach contributed
$5,000 during 2000, which accounted for 0.14% of the approximate 2000 YMCA operating
budget of $3,500,000.
YWCA Hotel for Women -The YWCA Hotel for Women provides shelter, food, counseling,
job-search, and housing-search assistance for homeless women. The City also provides CDBG
funds to this organization, and likewise, requires expanded reporting information
Friends in Service to Humanity -This agency (established in 1968) assists more than 5,900
families in Orange County. These families consist of more than 24,000 individuals, of whom
more than 12,500 are children. Friends in Service to Humanity provides the following services:
rental assistance to avoid eviction; "mobile meals to the home bound; transitional housing with
case management; food; child care subsidies for low-income working parents; utility payments to
avoid disconnections; baby diapers and infant formula; "adopt-a-family" program during the
holidays; medical, dental, and shopping transportation; and, transportation costs for employment.
During the first six months of 2000, Friends in Service to Humanity served 487 mobile meals,
made 1,166 grocery deliveries, provided 119 individuals/families with rental assistance to avoid
eviction; made 47 utility payments, provided 42 child care subsidies, and provided 15 automobile
repairs. Friends in Service to Humanity indicates a SUbstantial number of its clients reside in the
City of Newport Beach. In year 2000, the City of Newport Beach provided Friends in Service to
Humanity with $16,500 for homeless prevention and $15,500 for Meals programs.
85
American Red Cross -assists persons temporarily displaced from their residence due to disasters
such as fires. From 1994 to the present, the Red Cross reported helping 55 Newport Beach
residents involved in 3 incidents. This agency does not request CDBG funding from the City.
86
APPENDIX 3
ORGANIZATIONS SERVING THE HOMELESS
Other volunteer groups and local religious organizations serve Newport Beach by providing
temporary shelter, bus fares to reach pre-planned destinations, rental assistance, medical
assistance, food and clothes to the homeless and other needy persons/families
Several motels in the Newport Beach-Costa Mesa area are utilized by various agencies to
accommodate homeless persons. These agencies pay all or a portion of the costs.
An undetermined number of transients or chronically homeless individuals pass through Newport
Beach. Much of this depends on opportunities and conditions presented to these individuals
within Newport Beach and the surrounding communities. Housing needs of these individuals
include transitional housing in the form of single room occupancy units (SRO) and emergency
and transitional shelters.
Name
Bethany
Birch I and II Santa
Ana Facility
Persons/Groups
Single, employed
women who have
successfully
completed a shelter
Adult Males (Birch I);
Youth (ages 18-21)
who are working or
attending school and
moving toward
independence (Birch
I
87
Location Number of
Orange 7
Name
Dayle Mcintosh
Center For The
Disabled
Location
Disabled Individuals/ Anaheim
Families with
Disabled Members
Tr:,mdl;cm<ll housing
for women and
children (under age
12) who are victims
of family abuse or
domestic violence.
Transitional housing
for families or single
parents with children
under 18 years of
age; one adult must
be emnln'"Arl
88
Number of
7
Name
Fullerton
Interfaith/New Vista
Persons/Groups
Served
Families or Single
Parent with Children
under the age of 18;
must have income
Transitional living
Intervention Shelter center for families,
single men and
single women, men
with children, women
with children,
89
Location
Fullerton
Number of
Beds
27
Name
Human
Mercy
House/Regina
House
Persons/Groups
with or without
children
Transitional
for Women and
Children under 10;
must be employed or
in job training full
90
Location Number of
Beds
Emergenc
y
14
Transitiona
I
Name
Orange
Interfaith Shelter
Thomas House
Persons/Groups
Served
All
Transitional housing
for families, women
with children, men
with children; adults
must be willing to
work
Location Number of
Beds
Costa Mesa 100
Garden Grove 76
Sources: Orange i I rvice Resource
1992); County of Orange Housing Element, 1989; current (2000) research
91
APPENDIX 4
PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR
HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES
Promam Names Description EliQible Activities
1 a. Federal Proarams -Formula/Entitlement
Community Development Grants awarded to the City on a • Acquisition
Block Grant formula basis for housing and • Rehabilitation
community development • Home Buyer Assistance
activities. The City Receives • Economic Development
approximately • Homeless Assistance
$500,000 in CDBG funds • Public Services
annually • ADA Compliance
• Public Facilities
1b. Federal Proqrams -Competitive
Section 8 Rental assistance payments to • Rental Assistance
Rental Assistance owners of private market rate
Program units on behalf of very low
income tenants
HOME Flexible grant program awarded • Acquisition
to the Orange County HOME • Rehabilitation
Consortium on a formula basis • Home Buyer Assistance
for housing activities. City can • Rental Assistance
apply to County on a competitive
basis for affordable housing -
oroiects
Section 202 Grants to non-profit developers • Acquisition
of supportive housing for the • Rehabilitation
elderly. • New Construction
• Rental Assistance
Section 811 Grants to non-profit developers • Acquisition
of supportive housing for • Rehabilitation
persons with disabilities, • New Construction
including group homes, • Rental Assistance
independent living facilities and
intermediate care facilities.
92
Proqram Names Description Eliqible Activities
Section 108 Loan Provides loan guarantee to + Acquisition
CDBG entitlement jurisdictions + Rehabilitation
for pursuing large capital + Home Buyer Assistance
improvement or other projects. + Economic Development
The jurisdictions must pledge + Homeless Assistance
future CDGB allocations for + Public services repayment of the loan.
Maximum loan amount can be
up to five times the entitlement
jurisdiction's most recent annual
allocation. Maximum loan term
is 20 vears.
Mortgage Credit Income tax credits available to + Home Buyer Assistance
Certificate Program first-time homebuyers for the
purchase of new or existing
single-family housing. Local
agencies (County) make
certificates available.
Low Income Housing Tax Tax credits are available to • New Construction
Credit (LlHTC) individuals and corporations that + Rehabilitation
Invest in low-income rental + Acquisition
housing. Usually, the tax credits
are sold to corporations with a
high tax liability and the -
proceeds from the sale are used
to create the housinq
93
Proaram Names Description Eliaible Activities
SHELTER PLUS CARE Grants for rental assistance that + Rental Assistance
PROGRAM are offered with support services • Homeless Assistance
to homeless with disabilities.
Rental assistance can be:
Section 8 Moderate
Rehabilitation
(SRO)
project based rental assistance
administered by the local PHA
with state or local government
application
• SQonsor-Based Rental
Assistance
Provides assistance through an
applicant to a private non-profit
sponsor who wins or leases
dwelling units in which
participating residents reside .
• Tenant-Based Rental
Assistance (TBA)
Grants for rental assistance
Project-Based Rental
Assistance -
Grants to provide rental
assistance through contracts
between grant recipients and
owners of buildings.
Supportive Housing Grants for development of • Transitional Housing
Program (SHP) supportive housing and support • Permanent Housing for
services to assist homeless Disabled
persons in the transition from • Supportive Services
homelessness. • Safe Havens
94
2. State Proqrams
Proposition 1 A Proposition 1 A includes • Down payment Assistance
provisions to establish a Down • Rental Assistance
payment Assistance Program
and a Rent Assistance Program
using school fees collected from
affordable housing projects.
Potential buyers or tenants of
affordable housing projects are
eligible to receive nonpayment
assistance or rent subsides from
the State at amounts equivalent
to the school fees paid by the
affordable housing developer for
that oroiect in auestion.
Emergency Shelter Grants awarded to non-profit • Support Services
Program organizations for shelter support
services.
California Housing Below market rate financing • New Construction
Finance Agency (CHFA) offered to builders and • Rehabilitation
Multiple IRental Housing developers of multiple-family • Acquisition of Properties
Programs and elderly rental housing. Tax from 20 to 150 units
exempt bonds provide below-
market mortqaqe monev. -
California Housing Finance CHFA sells tax-exempt bonds to • Home Buyer Assistance
Agency Home Mortgage make below market loans to first
Purchase Program time homebuyers. Program
operates through participating
lenders who originate loans for
CHFA purchase
California Housing Low interest loans for the • Rehabilitation
Rehabilitation Program-Owner rehabilitation of substandard • Repair Code
Component (CHRP-O) homes owned and occupied by Violations, Accessibility
lower-income households. City • Additions, General
and non-profits sponsor housing Property Improvement
rehabilitation proiects.
95
3. Local Proqrams
Tax Exempt Housing The City can support low-• New Construction
Revenue Bond income housing developers in • Rehabilitation
obtaining bonds in order to • Acquisition
construct affordable housing.
The City can issue housing
revenue bonds or participate in
the County of Orange program
requiring the developer to lease
a fixed percentage of the units to
low income families and
maintain rents at a specified
below market rate.
4. Private Resource/Financing Programs
Federal National Mortgage Loan applicants apply to • Home Buyer Assistance
Association (Fannie Mae) participating lenders for the
following programs:
Fixed rate mortgages issued by
private mortgage insurers .
• Mortgages that fund the
purchase and rehabilitation of a
home.
Savings Association Mortgage Pooling process to fund loans • New Construction of single
Company Inc. (SAMCO) for affordable ownership and· family and multiple family
rental housing projects. Non-rentals, cooperatives, self help
profit and for profit developers housing, homeless shelters,
contact member institutions. and group homes for the
disabled.
California Community Non-profit mortgage banking • New Construction
Reinvestment Corporation consortium designed to provide • Rehabilitation
(CCRC) long-term debt financing for • Acquisition
affordable multi-family rental
housing. Non-profit and for
profit developer contact member
banks
*Freddie Mac Home Works -Provide 1 st and • Home Buyer Assistance
2nd mortgages that include combined with Rehabilitation
rehabilitation loan. City provides
gap finanCing for rehabilitation
component. Households
earning up to 80% of MFI
qualify.
96
Lease Purchase Program The City could participate in a • Home Buyer Assistance
Joint Powers Authority (JPA)
that issues tax-exempt bonds.
Bonds enable City to purchase
homes for households earning
up to 140% MFI. JPA pays 3 %
down and payments equivalent
to mortgage payments with the
option to buv after three years.
97
APPENDIX 5
PUBLIC AND PRIVATE NON-PROFITS
Orange County Housing Authority
2043 North Broadway
Santa Ana, CA 92706
(714) 480-2700
Orange County Fair Housing Council
(714) 569-0827
Civic Center Barrio Housing Corporation
431 South Bristol
Colonia Community Center
Santa Ana, CA 92613
(714) 835-0406
Habitat for Humanity of Orange County, Inc.
P. O. Box 70876
Orange, CA 92613
(714) 434-6200
Orange County Community Housing Corporation
1833 East 17 th Street, Suite 207
Santa Ana, CA 92701
(714) 558-6006
Orange County Community Development
825 North Broadway
Santa Ana, CA 92702
(714) 8897-6670
Jamboree Housing Corporation
2081 Business Center Drive
Irvine, CA
(949) 263-8676
Southem California Presbyterian Homes
1111 North Brand Boulevard, Suite 300
Glendale, CA 91202
(818) 247-0420
A Community of Friends
3345 Wilshire Boulevard, Suite 1000
Los Angeles, CA 90010
(213) 480-0809
Affordable Housing People
7720-B EI Camino, Suite 159
Carlsbad, CA 92009
(760) 4436-5979
98
Assistance League of Newport-Mesa
2220 Fairview Road
Costa Mesa, CA 92627
(949) 645-6929
BRIDGE Housing Corporation
One Hawthorne, Suite 400
San Francisco, CA 94105
Century Housing Corporation
300 Corporate Pointe, Suite 500
Culver City, CA 90230
Community Partnership Development Corporation
7225 Cartwright Avenue
Sun Valley, CA 91352
(818) 503-1548
Eden Housing, Inc.
409 Jackson Street
Hayward, CA 94544
(510) 582-1460
H.O.M.E.S., Inc.
4341 Birch Street, Suite 213
Newport Beach, CA 92660
(949) 851-2766
Housing Authority of the City of Los Angeles
P. O. Box 17157, Foy Station
Los Angeles, CA 90017
(213) 252-2701
Housing Corporation of America
31423 Coast Highway, Suite 7100
Laguna Beach, CA 92677
(949) 726-9672
Long Beach Affordable Housing Coalition, Inc.
110 West Ocean Boulevard, #350
Long Beach, CA 90802
(562) 983-8880
Los Angeles Housing Partnership, Inc.
515 South Figueroa Street, Suite 940
Los Angeles, CA 90071
(213) 629-91722
Neighborhood Housing Services of Orange County, Inc.
350 Hillcrest
La Habra, CA 90631
(562) 694-2051
99
San Diego County SER-Jobs for Progress, Inc.
3355 Mission Avenue, Suite 123
Oceanside, CA 92054
(760) 754-6500
Shelter for the Homeless
15161 Jackson Street
Midway City, CA 92655
(714) 897-3221
Solari Enterprises, Inc.
1544 West Yale Avenue
Orange, CA 92687
(714) 282-2520
Southern California Housing Development Corporation
8265 Aspen Street, Suite 100
Rancho Cucamonga, CA 91730
(909) 483-2444
American Baptist Homes of the West
P. O. Box 6669
Oakland, CA 94603
(510) 635-1786
Citizens Housing Corporation
26 O'Farrell Street, #506
San Francisco, CA 94108
(415) 421-8605
Community Housing Assistance Program, Inc.
3803 East Casselle Avenue
Orange, CA 92869
(714) 744-6252
DM & Associates Foundation
6043 Tampa Avenue, Suite 101A
Tarzana, CA 91356
(818) 708-2710
EAH, Inc.
2169 East Francisco Boulevard, Suite B
San Rafael, CA 94901
(415) 258-1800
Foundation for Affordable Housing III, Inc.
2600 Michelson Drive, Suite 1050
Irvine, CA 92612
(949) 440-8277
100
HELP Development Corporation
30 East 33 rd Street
New York, NY 10016
(212) 779-3350
Joshua's House
24111 NE Halsey Street, Suite 203
Troutdale, OR 97060
(503) 661-1999
Mercy Charities Housing California
1038 Howard Street
San Francisco, CA 94103
(415) 553-6360
National Housing Development Corporation
8265 Aspen Street, Suite 100
Rancho Cucamonga, CA 91730
(909) 483-2444
National Housing Trust
P. O. Box 3458
Walnut Creek, CA 945698
(925) 945-1774
OSM Investment Company
5155 Rosecrans Avenue, Suite 120
Hawthorne, CA 90250
(310) 676-0451
Paramount Financial Group, Inc.
1655 North Main Street, Suite 220
Walnut Creek, CA 94596
(800) 850-0694
Related companies of California
18201 Von Karman Avenue, Suite 400
Irvine, CA 92612
(949) 660-7272
Retirement Housing Foundation
5150 East Pacific Coast Highway, Suite 600
Long Beach, CA 90804
(562) 597-5541
Shelem, Inc.
24111 NE Halsey Street, Suite 202
Troutdale, OR 97060
(503) 661-1999
101
Squier Properties
3129 6th Street
Santa Monica, CA 90405
(310) 581-9043
SLSM, LLC
651 29 th Street
San Francisco, CA 94101
(415) 826-0301
The Trinity Housing Foundation
1399 Ygnacio Valley Road, #21
Walnut Creek, CA 94598
(925) 939-5421
Union Partners Realty Group, Inc.
24 Professional Center, Suite 250
San Rafael, CA 94903
(415) 446-1811
102
Date of
Council
Approval
4-12-05
APPENDIX 6
HOUSING ELEMENT AMENDMENTS
Amendment
No.&
Resolution No.
GPA 2004-010
Res. No. 2005-
19
Amendment Description
Revisions to eliminate discrepancies and insure consistency
within the text, clarify existing polices and affordability standards,
and include additional provisions to promote the achievement of
the City's housing goals.
103