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HomeMy WebLinkAbout17 - Community Development Block Grant - 2023-2024 Annual Action PlanQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report April 25, 2023 Agenda Item No. 17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator, Iwooding@newportbeachca.gov PHONE: 949-644-3236 TITLE: Resolution No. 2023-23: Community Development Block Grant — 2023-2024 Annual Action Plan ABSTRACT - Under the U.S. Department of Housing and Urban Development (HUD) program for Community Development Block Grants (CDBG), the City of Newport Beach (City) receives funds each year to benefit those with low and moderate incomes, aid in the prevention of neighborhood deterioration, and meet other urgent community development needs due to natural disasters or other emergencies. In compliance with the CDBG program regulations, the City prepares a grant application in the form of an Annual Action Plan outlining how funds will be used in the community. The plan implements strategies adopted in the City's five-year Consolidated Plan. For the City Council's consideration are the specific programs and funding proposed for Fiscal Year 2023-24, allocating approximately $399,099. RECOMMENDATIONS: a) Conduct a public hearing; b) Find the approval of the 2023-2024 Annual Action Plan exempt from the National Environmental Policy Act (NEPA) pursuant to 24 CFR Part 58, Section 58.34; c) Find the approval of the 2023-2024 Annual Action Plan exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; d) Adopt Resolution No. 2023-23, A Resolution of the City Council of the City of Newport Beach, California, Approving the 2023-2024 Annual Action Plan for Allocation of the Federal Community Development Block Grant Program Funds for Fiscal Year 2023-2024; and 17-1 Resolution No. 2023-23: Community Development Block Grant — 2023-2024 Annual Action Plan April 25, 2023 Page 2 e) Authorize the City Manager to: i. Proportionally adjust appropriations to specific programs and projects as necessary to conform with the final 2023-2024 formula grant allocation of CDBG funds from HUD if the appropriation is more or less than $399,099; ii. Submit the 2023-2024 Annual Action Plan to HUD; iii. Execute the 2023-2024 CDBG Program Grant Agreement and all related documents on behalf of the City of Newport Beach; iv. Execute all sub -recipient agreements with the non-profit organizations receiving allocations of CDBG funds in the 2023-2024 Action Plan; and v. Authorize the Community Development Director, or his designee, to be the official representative of the City of Newport Beach, administer the 2023-2024 Annual Action Plan and submit required environmental documentation to HUD for CDBG projects. DISCUSSION: The City receives a formula grant allocation of CDBG funds each year from the federal government, a program supported by HUD. The objective of the CDBG program is to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate -income persons. CDBG is authorized under Title I of the Housing and Community Development Act of 1974. CDBG funds may be used for a wide variety of programs, services and facilities improvements, including but not limited to: ■ Community and senior services ■ Fair housing enforcement and landlord/ tenant mediation ■ Homeless prevention and domestic violence programs ■ Public facilities and infrastructure improvements ■ Disabled (ADA) accessibility improvements ■ Housing programs ■ Section 108 loan payments Since July 1, 1989, the City has received a total direct allocation of approximately $15.2 million of CDBG funds from HUD, with annual allocations ranging from a low of $319,676 in 2017, to a high of $534,000 in 1995. The 2023-2024 formula grant allocation is anticipated to be approximately $399,099. According to CDBG regulations, the City may spend up to 20 percent of the annual formula grant allocation of CDBG funds for program administration and 15 percent for community services such as senior meal delivery, senior services, or homeless prevention programs. The remaining amount of funding may be used for projects such as street and sidewalk improvements, disabled accessibility improvements, and public facilities improvements such as the construction or rehabilitation of park and recreational facilities, provided the projects meet applicable CDBG regulations and national objectives. 17-2 Resolution No. 2023-23: Community Development Block Grant — 2023-2024 Annual Action Plan April 25, 2023 Page 3 Each year, the City uses a portion of the funds reserved for program administration to comply with Fair Housing Act requirements and make fair housing enforcement and landlord/tenant mediation services available to the community. These services have been provided free of cost to Newport Beach residents by the Fair Housing Foundation since 2011. On January 14, 2023, the City published a Notice of Funding Availability (NOFA) in the Daily Pilot newspaper and on the City website, to announce the availability of CDBG funds and solicit proposals from tax-exempt, nonprofit organizations that provide eligible CDBG services or projects that benefit Newport Beach residents. In response to the NOFA, five nonprofit organizations submitted applications for CDBG grants. In consideration of the funding available, the amount of funding requested, past performance, anticipated benefit to Newport Beach residents, and City priorities, staff recommends program/project funding levels in the Action Plan as follows: Category Requested Recommended Public Services subject to 15% grant cap Limit of $59,864 Age Well Senior Services: Home Delivered Meals $30,000 $30,000 Families Forward: Housing Program $20,000 $15,000 Newport Beach: City Motel Voucher Program $30,000 $14,864 South County Outreach: Hunger Prevention $10,000 $0 Administration (subject to 20% grant cap) Limit of $79,819 CDBG Program Administration $67,819 $67,819 Fair Housing Foundation: Fair Housing Services $12,000 $12,000 Capital Projects $259,416 Homeless Shelter: Modifications to Shelter (Costa Mesa) $0 $200,000 Bonita Creek Community Center Remodel $0 $50,000 Balboa Pier EV Charging Station ADA Upgrades* $0 $30,000 San Miguel Park Playground Replacement & ADA Upgrades* $0 $229,768 ADA Curb Ramp Replacements (Various locations)* $0 $150,000 Total $169,819 $799,451 (*includes carry forward from prior fiscal years) The Action Plan, found in the draft resolution (Attachment A), describes each program. In consideration of the amount of public service funding available and the amount of public service funding requested, staff did not recommend funding the new public services applicant, South County Outreach, because doing so would impact the City's ability to fund the requests of the three existing public service providers. Additionally, the new applicant provides similar hunger and homelessness prevention services to what is already provided by the existing public service providers. 17-3 Resolution No. 2023-23: Community Development Block Grant — 2023-2024 Annual Action Plan April 25, 2023 Page 4 The past level of performance of the existing providers was a key factor considered by the staff committee tasked with reviewing applications and formulating funding recommendations for City Council consideration. Historically, the existing service providers have successfully accomplished their annual performance goals and provided high quality services to Newport Beach residents. With the proposed funding levels shown in the table above, Age Well Senior Services plans to serve approximately 100 Newport Beach residents during the 2023-2024 fiscal year; the agency's focus on serving meals to homebound senior citizens, who make up approximately 24 percent of Newport Beach's population, was especially critical during the COVID-19 pandemic. Families Forward plans to serve approximately 15 unduplicated Newport Beach residents with the proposed funding level and will provide services to families to address homelessness. Staff also recommends allocating funding to supplement the City's motel voucher program, part of the City's ongoing efforts to address homelessness, where funding will provide approximately 10 individuals with short-term lodging while working to address their long-term housing and service needs. Under the Capital Projects category, with the Section 108 Loan fully repaid in fiscal year 2022-23, $259,416 is available to be programmed. Additionally, unspent funds from fiscal years 2017 through 2022, totaling $400,352, are available to use on Capital Projects. Staff recommends $200,000 be allocated to the City's financial obligations related to modification and improvements at the temporary homeless bridge shelter in Costa Mesa. No modifications or improvements to the shelter have been required yet. In addition to the temporary shelter, staff proposes to utilize Capital Activities funding to supplement the City's investment in several capital improvement projects being proposed by the Public Works and Recreation and Senior Services Departments. The Bonita Creek Community Center will be remodeled to include accessible public restrooms and accessible front entry doors, and the disabled access improvements are estimated to cost $50,000. As part of the Junior Lifeguard building project, the California Coastal Commission approval requires the City to install electric vehicle charging stations in the Balboa Pier parking lot, including one accessible stall estimated to cost $30,000. The Public Works Department also proposes to replace curb ramps throughout the City, under the concrete replacement program, making disabled access improvements in 25 locations at an estimated cost of $150,000. Lastly, the San Miguel Park playground is slated for replacement and the Recreation and Senior Services Department is proposing to install inclusive playground equipment that can be accessed by all children regardless of physical ability. Staff proposes to use the balance of the Capital Activities funding of $229,768 toward the playground replacement project, with the total project cost to be determined once it has been designed by the City's consultants. Each of the programs/projects recommended above are contemplated within the Strategic Plan priorities of the 2020-2024 Consolidated Plan, and staff will return to the City Council for approval of each specific project proposed to be funded under Capital Activities. 17-4 Resolution No. 2023-23: Community Development Block Grant — 2023-2024 Annual Action Plan April 25, 2023 Page 5 On March 25, 2023, staff published a notice in the Daily Pilot informing the general public that the City of Newport Beach had prepared the Draft 2023-2024 Annual Action Plan. The notice also indicated the plan would be available for review and comment until April 25, 2023. The public has been provided an opportunity to provide oral and/ or written comments on the proposed activities included in the Draft 2023-2024 Annual Action Plan. At the time this report was prepared, no public comments have been received. Additionally, the current Citizen Participation Plan requires that a public hearing be held to receive testimony from interested residents or parties regarding the Action Plan. The April 25, 2023, public hearing fulfills this requirement. CARES Act Funding Update Under the 2020 federal stimulus plan — Coronavirus Aid, Relief, and Economic Security Act (CARES Act) — the City received additional CDBG funding from HUD. A Substantial Amendment to the 2020-2021 Annual Action Plan was approved by the City Council in July 2021, funding activities related to preventing and responding to homelessness. A contract with Mind OC for the Be Well OC Mobile Crisis Response Team Program was approved by the Council in September 2021, and the program began in March 2022, and has so far spent $320,584 of $741,079 of the CDBG CARES Act funds. The funds will continue to be used toward the Mind OC contract until fully expended. FISCAL IMPACT: This item provides for City Council approval of the use of an estimated $399,099 of CDBG funds for the 2023-2024 fiscal year, to be adjusted by the City Manager as necessary to conform with the final 2023-2024 formula grant allocation from HUD. The costs associated with staff management of the CDBG program are approximately $17,000 per year. ENVIRONMENTAL REVIEW: The development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 CFR Part 58, Section 58.34 of the National Environmental Policy Act of 1969 (NEPA), as amended. Staff recommends the City Council find the adoption of the 2023-2024 Annual Action Plan is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 17-5 Resolution No. 2023-23: Community Development Block Grant — 2023-2024 Annual Action Plan April 25, 2023 Page 6 NOTICING: In accordance with HUD requirements for a 30-day public review and comment period, notice of the public hearing was published in the Daily Pilot on March 25, 2023. Notice was also sent to each of the applicants requesting funding and emailed to all parties that signed up to receive email notifications from the Planning Division. Further, the agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2023-23 (2023-2024 Annual Action Plan included) 17-6 Attachment A Resolution No. 2023-23: Approving the 2023-2024 Annual Action Plan for Allocation of the Federal Community Development Block Grant Program Funds for Fiscal Year 2023-2024 17- 7 RESOLUTION NO. 2023- 23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE 2023-2024 ANNUAL ACTION PLAN FOR ALLOCATION OF THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS FOR FISCAL YEAR 2023-2024 WHEREAS, the City of Newport Beach ("City") participates in the United States Department of Housing and Urban Development's ("HUD") Community Development Block Grant ("CDBG") program; WHEREAS, HUD requires the City to prepare a Five -Year Consolidated Plan and Citizen Participation Plan outlining the use of CDBG funds, strategic vision for housing and community development in the City, and receipt of community input regarding the expenditure of CDBG funds; WHEREAS, HUD also requires the City to prepare an Annual Action Plan for the appropriation of the CDBG annual grant and other available grant funds for the fiscal year, - WHEREAS, on May 12, 2020, the City Council adopted Resolution No. 2020-51 approving the current 2020-2024 Consolidated Plan and Citizen Participation Plan; WHEREAS, the City anticipates receiving approximately $399,099.00 in grant funds for Fiscal Year 2023-2024, WHEREAS, on January 14, 2023, in accordance with Section G.1(b) of the Citizen Participation Plan, a Notice of Funding Availability was published in the Daily Pilot newspaper and sent to known non-profit community organizations currently operating within the City requesting proposals to provide public services to low- and moderate - income residents and fair housing services to all residents of the community; WHEREAS, the City received four (4) proposals to provide public services and one (1) proposal to provide fair housing services; WHEREAS, in accordance with the applicable sections of 24 Code of Federal Regulations ("CFR") Part 91, the City prepared a draft 2023-2024 Annual Action Plan that appropriates the anticipated FY 2023-2024 grant funding to various programs and projects consistent with the 2020-2024 Consolidated Plan and HUD requirements; 17-8 Resolution No. 2023- Page 2 of 3 WHEREAS, on March 25, 2023, a notice was published in the Daily Pilot newspaper that the draft 2023-2024 Annual Action Plan would be available for. public review and comment from March 25, 2023 to April 25, 2023; and WHEREAS, on April 25, 2023, a public hearing was held by the City Council on in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, regarding the draft 2023-2024 Annual Action Plan. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act") and 24 Code of Federal Regulations Part 91. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby approve the 2023-2024 Annual Action Plan which is attached as Exhibit "A," and incorporated herein by reference. Section 2: The City Council authorizes the City Manager, or his/her designee, to: 1) proportionally adjust appropriations to specific programs and projects as necessary to conform with the final 2023-2024 formula grant allocation of CDBG funds from HUD if the appropriation is more or less than $399,099.00; 2) submitthe 2023-2024 Annual Action Plan to HUD; 3) execute the 2023-2024 CDBG Program Grant Agreement and all related documents on behalf of the City; 4) execute all subrecipient agreements with the nonprofit organizations receiving allocations of CDBG funds in the 2023-2024 Annual Action Plan; and 5) authorize the Community Development Department Director, or his/her designee, to be the official representative of the City, to administer the 2023-2024 Annual Action Plan and submit required environmental documentation to HUD for CDBG projects. Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 17-9 Resolution No. 2023- Page 3 of 3 Section 5: The City Council finds that the development of required plans and allocation of CDBG program funds is exempt from the National Environmental Policy Act of 1969 ("NEPA") under 24 CFR Part 58, Section 58.34 as it is an administrative activity and will not have a physical impact or result in physical changes to the environment. Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 25th day of April, 2023. Noah Blom Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron. Harp City rney Attachments): Exhibit A — 2023-2024 Annual Action Plan 17-10 EXHIBIT A 17-11 Table of Contents Executive Summary. TheProcess...............................................................................................................................................................8 AP-15 Expected Resources — 91.220(c)(1 ,2)........................................................................................... 9 AP-20 Annual Goals and Objectives ......................................... ...—.............................. ......... .......... ....... 12 AP-35 Projects — 91.220(d) .............................. ................................... ................ .............. -- .... — ... ........ 15 AP-38 Project Summary ................................................................................................................................ 16 AP-50 Geographic Distribution — 91.220(f)...................................................................................... ....20 AP-55 Affordable Housing — 91.220(g)......................................................................................................21 AP-60 Public Housing — 91.220(h)................................................... ........ 23 AP-65 Homeless and Other Special Needs Activities—91.220(i).......................................................25 AP-75 Barriers to affordable housing — 91.220(j)...................................... ..29 AP-85 Other Actions — 91.220(k)............................................................................................................... 31 AP-90 Program Specific Requirements — 91.220(i)(I.24).....................................................................33 Tables: Table 56 — Anticipated Resources . ... ....... ............. —.—...... ........................ ......................................... ........................... .. 9 Table57 - Goals Summary ............................................................................................................................................... 12 Table58 - Goals Description...................................................................................................................................................14 Table59 - Project Information....................................................................................................................................... 15 Table 60 - Geographic Priority Areas...........................................................................................................................20 Table 61 - One Year Goals for Affordable Housing by Support Requirements.................................................22 Table 62 - One Year Goals for Affordable Housing by Support Type..................................................................22 Appendices: AppendixA — Citizen Participation...............................................................................................................................34 Appendix B — 5F-424 Forms, Certifications, and Resolution ................................... ............. ............ .............. ..---35 17-12 Executive Summary AP-05 Executive Summary -, 24 CFR 91.200(c), 9 1.220(b) 1. Introduction The City of Newport Beach has prepared the 2020-2024 Consolidated Plan as a requirement to receive Federal Community Development Block Grant (CDBG) funds. The Consolidated Plan provides the U.S. Department of Housing and Urban Development (HUD) with a comprehensive assessment of the City's housing and community development needs and outlines the City's priorities, objectives, and strategies for the investment of CDBG funds to address these needs over the next five years, beginning July I, 2020, and ending June 30, 2025. The City receives CDBG funds from HUD on a formula basis each year, and in turn, awards grants to nonprofit, for -profit or public organizations for programs and projects in furtherance of this Plan. The CDBG program generally provide for a range of eligible activities for the benefit of low- and moderate - income Newport Beach residents, as discussed below. The 2023-2024 Action Plan is the fourth of five annual plans implementing the 2020-2024 Consolidated Plan Strategic Plan goals for the investment of annual allocations of CDBG funds from HUD. The Action Plan identifies available resources, annual goals, projects, and activities for the period beginning July I, 2023, and ending June 30. 2024. Community Development Block Grant (CDBG) The Housing and Community Development Act of 1974 created the CDBG Program with three primary objectives against which HUD evaluates the Consolidated Plan and the City's performance under the Plan. Those primary objectives are decent housing, suitable living environments, and expanded economic opportunities for low- and moderate -income persons. The CDBG regulations require that each activity meet one of the following national objectives: • Benefit low- and moderate -income persons; Aid in the prevention or elimination of slums and blight; or Meet other community development needs having a particular urgency (usually the result of a natural disaster). For the 2023-2024 program year, the City is anticipating receiving approximately $399,099 in CDBG funds from HUD. In addition, the City will be using prior years carryover funds of $400.352. Therefore, the total amount of CDBG funds available for PY 2023-24 is $799,451, as shown in the table below. In the event that the actual amount of CDBG funding received from HUD is higher or lower than anticipated, the City will adjust the funding amounts for each activity proportionally and in compliance with regulatory requirements for funding allocations to certain types of CDBG activities. 17-13 Sources of Funds Source Description Amount 2023-2024 Allocation CDBG Allocation for 2023-2024 $399,099 Unallocated Funds Funds not used by activities implemented in prior years $400,352 Total: $799,451 The CDBG program activities to be implemented from July 1, 2023 to June 30, 2024 include: 2023-2024 CDBG Public Service Activities Age Well Senior Services: Home Delivered Meals $30,000 Families Forward: Housing Program $ 15,000 Newport Beach: City Motel Voucher Program $14,864 Subtotal: $5%864 2023-2024 CDBG Capital Activities Homeless Shelter — Modification to Shelter (Costa Mesa) $200,000 Bonita Creek Community Center Remodel $50.000 Balboa Pier EV Charging Stations & ADA Upgrades $30.000 Curb Ramps $150.000 San Miguel Park Playground Replacement & ADA Upgrades $229,768 Subtotal: $659.768 2023-2024 Program Administration Activities CDBG Program Administration $67,819 Fair Housing Foundation: Fair Housing Services $12.000 Subtotal: $79.819 2023-2024 Totai: $799,451 2. Summarize the objectives and outcomes identified in the Plan The priority needs and goals identified in the Plan needs assessment were identified based on analysis of information including the results of the City's 2020-2024 Consolidated Plan Needs Assessment Survey and housing and community development data elements required by HUD in the online Consolidated Plan 21 Pag -= 17-14 system (the eCon Planning Suite) from the 2011-2015 American Community Survey (ACS) 5-Year Estimates and the Comprehensive Housing Affordability Strategy (CHAS) covering the same time period. Additional sources of information used to identify needs and establish priorities were obtained through consultation with local nonprofit agencies involved in the development of affordable housing and the delivery of public services to children, families, elderly persons and persons with special needs throughout the community. In consideration of community input and available data, the six (6) priority needs listed below are established as part of this Plan: • Ensure equal access to housing opportunities • Provide public services for low- and moderate -income residents • Improve public facilities and infrastructure • Address material barriers to accessibility • Economic development • Prevent and eliminate homelessness 3 1 P a g e 17-15 Consistent with HUD's national goals for the CDBG program to provide decent housing opportunities, maintain a suitable living environment and expand economic opportunities for low- and moderate -income residents, the priority needs listed above will be addressed over the next five years through the implementation of CDBG funded activities aligned with the following six measurable Strategic Plan goals: Sort Start End Geographic Needs OutcomeGoal Order Goal Name Year Year Category Area Addressed Funding Indicator I Program 2020 2024 Program Citywide All CDBG: NIA Administration Administration $312,830 2 Fair Housing 2020 2024 Affordable Citywide Ensure equal CDBG: Other: Services Housing access to $60,000 625 PersonsAssisted housing opportunities 3 Public Services 2020 2024 Non -Housing Citywide Provide CDBG: Public service activities otherthan Community public $150,000 Low/Moderatelncome Housing Development services for Benefit: low- and 500 Persons moderate- Assisted income residents 4 Homeless 2020 2024 Homeless Citywide Prevent and CDBG: Public service activities otherthan Services eliminate $125,000 LowlModeratelncome Housing homelessness Benefit: 120 Persons Assisted 4 17-16 5 Public Facilities 2020 2024 Non -Housing Citywide Improve public CDBG: Public Facility or Infrastructure and Community facilities and $1,046,859 Activities other than Infrastructure Development infrastructure Low/Moderatelncome Housing Improvements Benefit: Address I public facilityover five years material barriers to 6,621 PersonsAssisted accessibility 6 Economic 2020 2024 Non -Housing Citywide Economic CDBG: Economic Activities: Development Community Development $370,977 15 BusinessesAssisted Assistance Development 5 1 P a g e 17-17 3. Evaluation of past performance The City is currently implementing the activities included in the 2022-2023 Action Plan. As of this writing, all activities are underway. The investment of HUD resources during the 2022-2023 program year was a catalyst for positive change in the community. Together with other federal, state and local investments, HUD resources allowed the City and its partners to accomplish the following goals: 1) Provide fair housing services to residents. 2) Provide homeless prevention and assistance services to residents. 3) Provide public services such as home delivered meals to senior residents and addressing elder abuse and neglect for senior residents. 4) Provide special needs services such as for community domestic violence for residents and substance abuse and recovery services for residents. 5) Provide for Section 108 Debt Service and Public Facilities improvements. 4. Summary of Citizen Participation Process and consultation process Subsequent to the enactment of the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009, HUD revised the Consolidated Plan regulations at 24 CFR Part 91 to emphasize the importance of citizen participation and consultation in the development of the Consolidated Plan. HUD strengthened the consultation process with requirements for consultation with the CoC, Public Housing Authorities (PHA), business leaders, civic leaders and public or private agencies that address housing, health, social service, victim services, employment, or education needs of low-income individuals and families, homeless individuals and families, youth and/or other persons with special needs. Together with the analytic capabilities of the eCon Plan Suite, these requirements created the conditions necessary to implement a collaborative, data -driven and place -based planning process that includes a robust level of citizen participation and consultation. In accordance with the City's Citizen Participation Plan, residents and stakeholders were able to participate in the development of the 2020-2024 Consolidated Plan through surveys, community meetings and public hearings. Efforts were made to encourage participation by low- and moderate -income persons, particularly those living in areas where HUD funds are proposed to be used, and by residents of predominantly low- and moderate -income neighborhoods. Efforts were made to encourage the participation of minorities and non- English -speaking persons, as welt as persons with disabilities. The consultation process included representativesof the CoC, PHA, and other specified groups who completed surveys, provided local data and assisted the City to ensure practical coordination of strategies to maximize impact and to avoid duplication of effort. 2023-2024 Action Plan In the development of the Action Plan, the City solicited applications from eligible subrecipients including non-profit organizations and public agencies for fair housing services and a variety of public service activities. The draft Action Plan was available for public review and comment from March 25, 2023, to 17-18 April 25, 2023. A public hearing to receive comments on the draft 2023-2024 Annual Action Plan was held before the Newport Beach City Council on April 25, 2023. 5. Summary of public comments The City received XX public comment(s) during the Public Hearing meeting held April 25. 2023. The comments are that: XX 6. Summary of comments or views not accepted and the reasons for not accepting them All comments and views received by the City in the development and approval of Action Plan were accepted and taken into consideration. 7. Summary The 2023-2024 Action Plan addresses five of the six Strategic Plan Goals from the 2020-2024 Consolidated Plan by allocating approximately $399,099 from PY 2023-24, and prior years carryover funds of $400,352. Therefore, the total amount of CDBG funds available for PY 2023-24 is $799,451 to projects and activities to be implemented from July I, 2023, to June 30, 2024. 17-19 The Process PR-05 Lead & Responsible .Agencies - 9 l.200(h] 1. Describe agency/entity responsible for preparing the Consolidated Plan andthose responsible for administration of each grant program and funding source The following are the agencieslentities responsible for preparing the Action Plan and those responsible for administration of each grant program and funding source. Table 2 - Responsible Agencies NaFrative The Planning Division of the City of Newport Beach Community Development Department is the lead agency Pesponsible for the administration of the CDBG program. Annual Action Plan Public Contact Information City of Newport Beach Community Development Department, Planning Division 100 Civic Center Drive Newport Beach, CA 92660 949-644-3309 81 -_ 17-20 2023-2024 Action Plan AP-15 Expected Resources - 91.220(c)(1,2) Introduction For program year 2023-2024, the City anticipates receiving approximately $399,099 in CDBG funds from HUD. In addition, the City will be using prior years carryover funds of $400,352. Therefore, the total amount of CDBG funds available for PY 2023-24 is $799,451. 9 1 P a g r 17-21 Explain how federal funds will leverage those additional resources [private, state, and local funds], including a description of how matching requirements will be satisfied Depending on the financing structure of a given activity, it may be advantageous for the City to use CDBGfunds to leverage appropriate state, focal, and private resources, including but not limited to those listed below. State Resources • State Low -Income Housing Tax Credit Program ■ Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program • Multifamily Housing Program (MHP) • Housing Related Parks Grant ■ CaIHFA Single and Multi -Family Program • Mental Health Service Act (MHSA) Funding Local Resources • Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding ■ Orange County Continuum of Care Program ■ Orange County Housing Authority (OCHA) Programs Private Resources ■ Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs • United Way Funding ■ Private Contributions • Public -Private Partnerships If appropriate, describe publicly owned land or property located within the jurisdiction that may be used toaddress the needs identified in the plan Newport Beach will comply with new State requirements under AB 1486 and AB 1255 to inventory and support developers to access and utilize surplus municipal and state land for the construction of affordablehousing. If such sites are identified, the City will consider the use of CDBG or other resources to assist with site preparation. At the point of developing this Action Plan, the City does not have anypublicly owned land that can be used to support the development of affordable housing within the City of Newport Beach. Matching requirements The City of Newport Beach does not receive HOME Investment Partnerships funds as part of its entitlement allocation. The amountof matching is therefore not applicable for the 2023-2024 Annual Action Plan. 101 - 17-22 Discussion Assuming continued level funding of the CDBG programs, the City expects to utilize approximately $2.07million of CDBG funds during the five-year period beginning July 1, 2020 and ending June 30, 2025 to achieve the goals of the Strategic Plan. 17-23 AP-20 AnnuAl Goals and Objectives Goals Summary Information Table 57 - Goals Summary .. Sort O. Goal Name Sta rt End Category■ Geographic Needs Addressed Outcome Indicator I Program 2023 2024 Program Citywide All CDBG: NIA Administration Administration $67,819 2 Fair Housing 2023 2024 Affordable Citywide Ensure equal CDBG: Other: Services Housing access to $12,000 125 Persons housing Assisted opportunities 3 Public Services 2023 2024 Non -Housing Citywide Provide CDBG: Public service Community public $30,000 activities other Development services for than low- and Low/Moderate moderate- Income income Housing residents Benefit: 100 Persons Assisted 4 Homeless 2023 2024 Homeless Citywide Prevent and CDBG: Homelessness Services eliminate $29,864 Prevention: homelessness 25 Persons Assisted 121 17-24 Goal Sort Goal Start End CategoryOutcome Geographic Needs Order Name Year Year Area Addressed Indicator 5 Public Facilities 2023 2024 Non -Housing Citywide Improve CDBG: Public Facility and Community public $659,768 or Infrastructure Development facilities and Infrastructure Improvements infrastructure Activities other than Address Low/Moderate material Income barriers to Housing accessibility Benefit: Other: 0 (Section 106 Loan) Public Fac.11nfras.: 4 Mod. to Shelter: I 6 Economic 2023 2024 Non -Housing Citywide Economic CDBG: Economic Development Community Development $0 activities: Assistance Development 0 Businesses Assisted 17-25 Goal Descriptions Table 58 — Goal Description I Goal Name Program Administration Goal Efficient and cost-effective implementation of CDBG program. Description 2 Goal Name Fair Housing Services Goal Affirmatively further fair housing choice through the provision of fair housing education, Description counseling, anti -discrimination, and landlord -tenant mediation services. The CDBG Administration activity funding for five years is also represented under this goal. 3 Goal Name Public Services Goal Provide public services for low- and moderate -income residents including senior citizens, Description families and youth including but not limited to those concerned with food, essential services, transportation, health, recreation, and employment. 4 Goal Name Homeless Services Goal Provide funding to community -based organizations who offer critical services for Description homeless and other special needs populations as determined via a competitive application. 5 Goal Name Public Facilities and Infrastructure Improvements Goal Based on need and available resources and results of the 2020-2024 Consolidated Plan Description Needs Assessment Survey, the improvement of public facilities and infrastructure owned and operated by the City of Newport Beach is rated as a high priority need for CDBG funds. in addition, Section 108 Loan Repayment and Shelter improvements are included under this goal. 6 Goal Name Economic Development Assistance Goal Provide technical assistance and additional support to small and micro businesses in the Description City of Newport Beach to provide job support and fulfill economic needs of low- and moderate -income residents. 141: 17-26 AP-35 Projects - 9 i,22D(d) Introduction To address the high priority needs identified in the Strategic Plan, the City of Newport Beach will invest CDBG funds in projects that develop provide fair housing services, provide services to low- and moderate -income residents, prevent homelessness and strengthen economic opportunities. Together, these projects will addressthe needs of low- and moderate -income Newport Beach residents. The Fair Housing Services project will provide fair housing assistance to an estimated 125 moderate -income people, the Public Services project will provide assistance to an estimated 100 presumed low-income elderly people, the Homeless Services project will provide services to an estimated 25 presumed low-income people. Table 59 - Project Information # I Project Name Program Administration 2 Fair Housing Services 3 Public Services 4 Homeless Services 5 Public Facilities and Infrastructure Improvements 5 Emergency Response Funding Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating a majority of its non -administrative CDBG funds for programyears 2020-2024 to projects and activities that benefit low- and moderate -income people throughout the City. The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack of funding from federal, state, and other local sources and the high cost of housing that is not affordable to low- income residents. To address these obstacles, the City is investing CDBG funds through the 2023-2024 Action Plan in projects that provide public services to low- and moderate -income people and projects that prevent homelessness for the low- and moderate -income residents of Newport Beach. 15� 17-27 AP-38 Project Sunym,,iry Project Summary Information I Project Name Program Administration Target Area Citywide Goals Supported All Needs Addressed All Funding CDBG: $67.819 Description Effective and cost-efficient implementation of the CDBG program. Target Date 6130124 Estimate the number and type of families that will benefit from the proposed activities NIA Location Description Citywide Planned Activities Program Administration 2 Project Name fair Housing Services Target Area Citywide Goals Supported Fair Housing Services Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $12,000 Description Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti -discrimination and landlord - tenant mediation services. Target Date 6/30/2024 Estimate the numberand type offamilies that will benefit from the proposed activities Approximately 125 people will benefit from the proposed activity, Location Description Citywide Planned Activities Fair Housing Services: (125 people) 161 P, : 17-28 3 Project Name Public Services Target Area Citywide Goals Supported Public Services Needs Addressed Provide public services for low- and moderate -income residents Funding CDBG: $30,000 Description Provide public services for low- and moderate -income residents. Target Date 6/30/2024 Estimate the numberand type offamilies that will benefit from the proposed activities 100 people Location Description Citywide. Planned Activities Age Well Senior Services will provide Meals on Wheel to approximately 100 seniors. 4 Project Name Homeless Services Target Area Citywide Goals Supported Homeless Services Needs Addressed Prevent and eliminate homelessness Funding CDBG: $29,864 Description Provide funding to community -based organizations who offer critical services for homeless and other special needs populations as determined via a competitive application. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 25 people Location Description Citywide 17 1 Page 17-29 Planned Activities City Motel Voucher Program (10 people) $14,864 Families Forward: (15 people) $15,000 5 Project Name Public Facilities and Infrastructure Improvements Target Area Citywide Goals Supported Public Facilities and Infrastructure Improvements Needs Addressed Address material barriers to accessibility and improve public facilities and infrastructure Funding CDBG: $659,768 Description Public Facilities & Infrastructure Project(s) Target Date 6/30/2024 Estimate the number and type of Other: 0 families that will benefit from the proposed activities Public Facilities & Infrastructure Project(s): 4 Modifications to Shelter: I Location Description Citywide Planned Activities Homeless Shelter — Modification to Shelter (Costa Mesa) - $200,000 Bonita Creek Community Center Remodel - $50,000 Balboa Pier EV Charging Stations & ADA Upgrades - $30,000 Curb Ramps - $150,000 San Miguel Park Playground Replacement & ADA Upgrades - $229,768 6 Project Name Emergency Response Funding Target Area Citywide Goals Supported Program Administration Fair Housing Services Public Services Homeless Services Public Facilities and Infrastructure Improvements Economic Development Assistance Housing Assistance Needs Addressed Program Administration Fair Housing Services Public Services Homeless Services 181Page 17-30 Public Facilities and Infrastructure Improvements Economic Development Assistance Housing Assistance Funding CDBG: Unfunded at this time Description Project to remain open and to be funded if an urgent community development need should arise for the City including but not limited to: displacement, relocation, acquisition, and replacement of housing; or, support for infectious disease response. Target Date 6/30/2024 Estimate the number and type of Citywide benefit families that will benefit from the proposed activities Location Description Citywide Planned Activities Project to remain open and to be funded if an urgent community development need should arise for the City of including but not limited to: displacement, relocation, acquisition, and replacement of housing; or, support for infectious disease response. 191 Page 17-31 AP-50 Geographic Distribution - 91.220(11 Description of the geographic areas of the entitlement (including areas of low- incomeand minority concentration) where assistance will be directed Based on evaluation of CPD Maps data, there are no areas within the City exhibiting a greater level of need for affordable housing or services for low- and moderate -income residents and there were no areas of the City containing minority concentrations; therefore, no geographic priorities were established within the Consolidated Plan and allocation priorities will be driven by citywide need. All CDBG funds will be directed toward activities benefitting low- and moderate -income residents cit)rwide. The only exception to this approach would be for CDBG projects that are qualified on a low- and moderate - income area basis where a specific proportion of the residents within the service area must be low- and moderate -income residents. Geographic Area Table 60 - Geoeraohic Priority Areas Citywide Newport Beach will allocate resources across the City based on need and eligibility Rationale for the priorities for allocating investments geographically The City's investments in Fair Housing Services, Public Services and Homelessness Prevention Services projects are based on a citywide geography because individuals in need of these services may live anywhere within the jurisdiction —particularly services for seniors and homeless individuals. Discussion Based on the Strategic Plan, the City is allocating 100 percent of its non -administrative CDBG funds for program year 2023-2024 to projects and activities that benefit low- and moderate -income people. 201 _ 17-32 AP-55 Affordable Housing 91,220(gi Introduction The City of Newport Beach will look at using non-CDBG local, state, and federal funding sources to develop new housing units. Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate -income households is a cost-effective way to invest limited non-COBG resources to retain existing housing units that are already affordable to low- and moderate -income households in the community. Additionally, rehabilitation will assist in resolving housing problems that residents face throughout Newport Beach. Addressing substandard housing conditions through housing preservation activities ensures that all economic segments of the community have the opportunity to live in decent housing that meets local standards. Expand the Supply of Affordable Housing Based on evaluation of 201 1-2015 ACS and CHAS data, there is a need for additional rental housing units affordable for households earning less than 50 percent of AMI. Of the households earning 0-80 percent of AMI, 8.943 are cost burdened households — meaning households paying more than 30 percent of their income for housing. Additionally, 6,614 of the cost burdened households are considered severely cost burdened households — meaning that they pay more than 50 percent of their income for housing. Of the 4,410 severely cost burdened households, 3,580 are renters. of those severely cost burdened renter households, 3,320 households earn less than 50 percent of AMI and are considered the most at risk of becoming homeless. The City will continue to use its Affordable Housing Trust Fund and other available options under the State Density Bonus law to create additional affordable housing. The City's updated its General Plan Housing Element to 4,845 new housing units. Of that number, 70 percent are required to be affordable to very -low, low - and moderate -income households. In order to accommodate that requirement, the City is exploring new policies to encourage production of affordable housing in the 2021-2029 planning period. Preserve the Supply of Affordable Housing As the City's housing stock ages, a growing percentage of housing units may need rehabilitation to allow them to remain safe and habitable. The situation is of particular concern for low- and moderate -income homeowners who are generally not in a financial position to properly maintain their homes. The age and condition of Newport Beach's housing stock is an important indicator of potential rehabilitation needs. Commonly, housing over 15 years of age will exhibit deficiencies in terms of paint, weatherization, heating ! air-conditioning systems, hot water heaters and finish plumbing fixtures. Housing over 30 years of age will typically some form of major rehabilitation, such as roof replacement, foundation work and plumbing systems. According to CHAS data showing the year that housing units were built categorized by owner and renter tenure: ■ 5,680 or 27 percent of the 20,920 owner -occupied housing units built between 15 and 34 years ago (built between 1980 and 1999). 21 1- . - 17-33 + 11,905 or 57 percent of the 20.920 owner -occupied housing units in Newport Beach were built 34 or more years ago (built prior to 1980). + 4,745 or 28 percent of the 17,160 renter -occupied housing units in Newport Beach were builtbetween 15 and 34 years ago (built between 1980 and 1999). + 10,930 or 63 percent of the 17.160 renter -occupied housing units in Newport Beach were built 34or more years ago (built prior to 1980). Preservation of the physical and functional integrity of existing housing units occupied by low- and moderate - income households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable to low- and moderate -income households in the community. Addressing substandard housing conditions through housing preservation activities ensures that all economic segments of the community have the opportunity to live in decent housing that meets local standards. Table 61 - One Year Goals for Affordable Housing by Support Requirements One Year Goals for the Number of Households to be Supported Non -Homeless 1 Special -Needs 1 • i Table 62 - One Year Goals for Affordable Housine by Support Type One Year Goals for the Number of Households Rental Assistance Supported Through 0 The Production of New Units 0 Rehab of Existing Units 0 Acquisition of Existing Units 0 Total 0 Discussion The Strategic Plan identifies a high priority need to expand the supply of affordable housing. However, the City will use other funding sources and methods to create affordable housing opportunities such as the Affordable Housing Trust Fund and the State Density Bonus law. As mentioned previously, the City is also exploring new affordable housing policies as part of its Housing Element update that would encourage the production of new affordable units. 22 1 ; -, _- 17-34 AP-60 Public Housing - 91-220(fij Introduction The Newport Beach Housing Authority does not administer Section 8 and does not own HUD Public Housing. Newport Beach is within the service area of the Orange County Housing Authority MOCHA) for the purposesof Section B and Public Housing. The data presented in the tables below is for Newport Beach and the narrative responses address the needs for the entire county, with specific references to the City of Newport Beach. Actions planned during the next year to address the needs to public housing. In the upcoming five years, OCHA's goals are- ■ Apply for additional housing assistance funding and programs that may become available. • Explore the use of Project -Based Housing Choice Vouchers or other housing funds to promote the construction or acquisition activities that will result in additional units or developments that will servespecial needs populations. • Ensure consistent quality of assisted housing services by maintaining high performer status in Section Eight Management Assessment Program [SEMAP] scores. • Promote family Self -Sufficiency incentives and homeownership opportunities for Housing ChoiceVoucher participants in partnership with local programs and related service providers. • Expand assisted housing choices by conducting outreach efforts to increase the number of propertyowners and their participation in housing assistance programs. ■ Identify and utilize technology to enhance operational effectiveness and efficiency in delivery ofhousing assistance services. Actions to encourage public housing residents to become more involved in management and participate inhomeownership. OCHA supports resident councils and actively seeks input from PHA residents on the management and implementation of OCHA policies and procedures. Housing prices in Orange County are so high that homeownership opportunities are limited for OCHA residents. On a limited basis. OCHA has partnered with Habitat for Humanity to provide two affordable homeownership units, but these types of efforts are limited. OCHA also manages a Housing Choice Voucher Homeownership Program that it markets to all OCHA program tenants. 231=- _. 17-35 If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or otherassi5tance Not applicable. OCHA is designated as a High Performing PHA Discussion Newport Beach continues to support OCHA in effective administration of its limited affordable housing resources. The City also continues to work with OCHA to include the residents with Section 8 Housing Choice Vouchers in the federally funded programs administered by the City, including any homeownership programs. 24 1 - 17-36 AP-65 Homeless and tither Special ?Needs Activities -- 91.220(i) Introduction The City will invest COBG funds during the 2023-2024 program year to address high priority needs identified in the 2020-2024 Consolidated Plan including preventing homelessness and providing public services to homeless populations. Homelessness Prevention Services The Point In Time is a biennial count of people experiencing homelessness on a given night that takes place during the last ten days in January. The count provides vital information that helps the County better understand homelessness in the community and guides the way the County and its partners respond to homelessness in Orange County. There was not a Point In Time Count conducted in 2023. The County of Orange and Orange County CoC conducted the sheltered count the night of Monday, February 21, 2022. Emergency Shelters and Transitional Housing Programs collected participant -level demographic information from individuals and families staying the night in each program. The 2022 Unsheltered Count process took place over three days - Tuesday, February 22 through Thursday, February 24 - to ensure the 800 square mile Orange County jurisdiction was canvassed effectively. This methodology allowed the count teams to collect unique ID data points that were used to deduplicate records for the three-day street count process. The survey data was collected with ArcGIS Survey 123, a phone application that captures GIS locations and provides vital information that guides the way the County responds to homelessness in Orange County. The methodology for the 2022 Everyone Counts process provides the most accurate data on the scope of homelessness in Orange County, ensuring that Everyone Counts. According to the results of the most recent data available from the bi-annual Point -In -Time Homeless Count (PIT Count) held on February 21, 2022, on any given night in Newport Beach, approximately 96 people are homeless. To address incidences of homelessness in Newport Beach and to prevent extremely -low income Newport Beach families from becoming homeless, the City places a high priority on programs that work to prevent homelessness or rapidly assist homeless individuals living in the community. To address this need, the City will support CDBG public service activities that help prevent homelessness and that provide a structured path to stable housing for individuals and families who become homeless. Services for Residents with Special Needs Analysis of available data and consultation with organizations providing services for special needs populations revealed a need for a range of additional services including, but not limited to, those concerned with domestic violence, human trafficking, mental disabilities, physical disabilities, developmental disabilities, substance abuse/alcoholism and HIV/AIDS that may be addressed by non-profit organizations. Non-profit organizations currently exist to fulfill some of these needs of individuals. Organizations such as Human Options, an Orange 25 j 17-37 County -based non-profit that provides assistance to individuals experiencing domestic violence. Laura's House provides emergency shelter to women and children Fleeing domestic violence situations. Radiant Health Centers provides services for those with HIV/AIDS such as free HIV and Hepatitis C testing. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reachingout to homeless persons (especially unsheltered persons) and assessing their individual needs To reach out to unsheltered homeless persons and assess their individual needs for the purpose of connecting them with available emergency shelter and transitional housing resources, the City of Newport Beach, through its Planning Division will provide information and referrals -- primarily to 2-1-1 Orange County. Additionally, to reduce and end homelessness, the City of Newport Beach will provide CDBG public service funds to the following activities: Families Forward: Housing Program (15 people) Newport Beach Motel Voucher Program (10 people) Addressing the emergency shelter and transitional housing needs of homeless persons The City has taken a number of steps to address this very complex issue. City staff and City Net, a contractor that assists with community outreach and case management services, work in collaboration to engage these individuals and connect them with services such as emergency housing, mental and health care, benefits counseling and a variety of other community -based programs and services. It is not uncommon for individuals to be resistant to engagement at first. The more successful interventions are built upon a pattern of consistent engagement and building trust so that the individual will be in a position to accept the assistance that will lead to a lasting solution to their homelessness. The City has a dedicated, full-time police officer and a homeless coordinator who focus on the issue of homelessness. The Homeless Liaison Officer works closely with the County of Orange Health Care Agency's case management staff and City Net to provide homeless outreach services. The uniqueness of each homeless individual's situation requires an individual approach. Due to the fact that each individual's needs are different, City staff works with the homeless individuals on a case -by -case basis. It is important to understand that individuals are often resistant to seeing case workers or police officers assigned to work with those experiencing homelessness, Multiple visits may be required before gaining a person's trust in a way that opens a conversation about solutions. That is why, in addition to the full-time officer, the City has contracted with City Net to provide homeless outreach services. Street outreach services seeks to connect unsheltered homeless individuals with emergency shelter, housing, critical services, healthcare, or urgent, non - facility -based care. Newport Beach has entered a partnership with the City of Costa Mesa for shelter beds at the Costa Mesa Bridge Shelter, which opened in Spring 2021. In addition to temporary housing, the Bridge Shelter provides case workers who assist homeless individuals with addiction and mental health counseling, job searches, and accessing permanent housing. 26 1 .. 17-38 Cities and counties are obligated to follow state laws, federal laws and court rulings that define the parameters of what can and cannot be done when addressing the impacts of homelessness. Newport Beach, along with the rest of the cities in Orange County, must follow and comply with those laws and court rulings. In September 2018, the United States Ninth Circuit Court of Appeals ruled that as long as there is no option for sleeping indoors, the government cannot criminalize individuals experiencing homelessness from sleeping outdoors on public property. As a result, the federal judge overseeing Orange County's homeless issues was asked to block cities from enforcing anti -camping laws if the city does not have an adequate, alternative sleeping location for individuals experiencing homelessness, such as a shelter bed or other housing. To address the emergency shelter and transitional housing needs of homeless persons, the City supports the Families Forward Housing Program that provides transitional housing, counseling, and case management tofamilies at risk of homelessness. Each year, Families Forward serves approximately 12 additional unduplicated people because of CDBG funding. In addition, the City will support a City -run motel voucher program to assist 10 homeless individuals. Other organizations in the Continuum of Care (CoC) addressing the emergency shelter and transitional housingneeds of homeless persons include City Net, Orange Coast Interfaith Shelter, Orange County Rescue Mission and WISEPIace. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. To address the needs of homeless families, families with children, veterans and their families, the City supportsthe Families Forward Housing Program, which provides transitional housing, counseling, and case management to families at risk of homelessness. Each year, Families Forward serves approximately 12 unduplicated Newport Beach residents through its transitional housing program. When paired with financial counseling, career coaching and otheravailable case management services, Families Forward makes certain that families are ready to succeed in theirtransition to permanent housing. In addition, Trellis International is a local non-profit organization which provides volunteer opportunities for individuals experiencing homelessness or housing insecurity to learn and/or rebuild job skills and a path toward stable employment and housing. Through volunteer projects managed by Trellis' Community Impact Team (CM, participants develop and refine job skills needed to reenter the job market and remain employed. The projects in Newport Beach may include cleanup of beaches, hiking trails, parking lots, piers and other public areas, graffiti removal, vegetation trimming and removal, and more. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions): or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs 27 1 P I 17-39 The Orange County CoC Ten Year Plan to End Homelessness included a goal to establish countywide protocols and procedures to prevent people from being discharged from public and private institutions of careinto homelessness that will help decrease the number of persons being discharged into homelessness. The CoC is seeking improve coordination among publicly and privately funded institutions of care and local serviceagencies in the County of Orange in order to decrease the number of persons being discharged into homelessness annually. City Net is an organization that coordinates outreach among homeless service providers in the county with vulnerable homeless neighbors. City Net collects data for a Homeless Services Dashboard Report with frequent meetings on how to improve public services that enables organizations in Newport Beach to better coordinatetheir efforts and leverage key synergies. Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community -based organizations andfaith-based groups. Consistent with this approach, the City of Newport Beach supports the efforts of Orange County Continuum of Care (CoC) and its member organizations that address homelessness throughout Orange County. In alignment with this strategy, the City will use CDBG funds to support local service providerswith programs to prevent homelessness and to expand the supply of affordable housing in Newport Beachfor low- and moderate -income residents. Discussion The City of Newport Beach considers ending and preventing homelessness a high priorityand will supportCDBG public service activities that help prevent homelessness and that provide a structured path to stablehousing for individuals and families who become homeless. A new mobile crisis intervention program to address mental health issues in the community is up and running in Newport Beach. The Be Well OC Mobile Crisis Response Team is working closely with City's public safety departments to address mental health challenges among the City's homeless population, as well as residents and visitors who may be experiencing a mental health crisis. Under the Be Well OC program, Newport Beach now has a dedicated two -person team of experienced crisis counselors working 12 hours a day, 7 days a week. The team responds to mental health calls for service to the Police Department's non -emergency or 911 call lines. Individuals may be transported to Be Well OC's local crisis center, or a detox facility or shelter, as needed. The service provides direct mental health intervention and will reduce the need for police and emergency medical services in these cases. The Be Well OC program supplements and augments the City's current efforts to address homelessness, which include a shelter partnership with the City of Costa Mesa, and the pilot program with Trellis International providing volunteer opportunities for individuals experiencing homelessness to learn and/or rebuild job skills and a path toward stable employment and housing. U® 17-40 AP-75 BarrierN tc, 7noi tLiiile hiFLJ,l!l:; Introduction: A barrier to affordable housing is a public policy or nongovernmental condition that constrains the developmentor rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers arelawfuI and impediments to fair housing choice are usually unlawful. Based on information gathered during community meetings, the Consolidated Plan Needs Assessment Survey.the 2014-2021 Housing Element and market analysis, the primary barriers to affordable housing in Newport Beach are housing affordability and the lack of monetary resources necessary to develop and sustain affordablehousing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand. For low- and moderate -income households. finding and maintaining decent affordable housing is difficult dueto the high cost of housing in Newport Beach and throughout the region in general. Over 20 percent of theCity's 38,075 households experience a cost burden or severe cost burden, meaning that they pay more than 30 or 50 percent of their income for housing, respectively. Consistent with available data, responses to the2020-2024 Consolidated Plan Needs Assessment Survey indicate a high need for additional affordable housing in Newport Beach. Actions planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In the development of the 2021-2029 Housing Element, the City evaluated significant public policies affecting affordable housing. The Housing Element identifies and analyzes the City's existing and projected housing needs. The Housing Element contains a detailed oudine and work program of the City's goals, policies, and quantified objectives for the preservation, improvement, and development of housing for a sustainable future. This includes timelines for the City to accomplish each identified action within the Housing Plan. As is common in many communities, a variety of constraints affect rile provisions and opportunities for adequate housing in the City of Newport Beach. Housing constraints consist of both governmental constraints, including but not limited to land use controls, developrnentfees and permitting fee& development standards. building codes and permitting processes; as well as, nongovernmental or market constraints, including but not limited to land costs, construction costs, and availability of finances. Combined, these factors create barriers to availability and affordability of new housing especially for lower and moderate -income households. On September 13. 2022, die Newport Beach City Council adopted an update to its Housing Element for the 2021-2029 planning cycle in response to the bdh Cycle Regional Housing Needs Assessment (RHNA) allocation of 4.845 new housing units for Newport Beach. On October 5. 2022. the City received a letter from HCD certifying the Cit/s Housing Element as being in full compliance with State Housing Element Law. 29 1 17-41 Discussion: To address housing affordability and the lack of monetary resources for affordable housing, the City's goals, policies, and programs will be aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. These goals, policies, and programs further the City's overall housing policy goal to encourage a more diverse, sustainable, and balanced community through implementation of strategies and programs that will result in economically and socially diversified housing choices that preserve and enhance the special character of Newport Beach. The City of Newport Beach has identified the following housing goals as part of the 2021-2029 General Plan Housing Element: • Quality residential development and preservation, conservation, and appropriate redevelopment of housing stock. A balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments. • Housing opportunities for as many renter- and owner -occupied households as possible in response to the demand for housing in the City. • Preservation and increased affordability of the City's housing stock for extremely low-, very low—, low-, and moderate -income households. ■ Housing opportunities for special needs populations. • Equal housing opportunities for all residents. • Effective and responsive housing programs and policies. The goals listed above are described in further detail in the Housing Plan. As directed by the recently adopted 2021-2029 General Plan Housing Element, the City is developing an inclusionary housing program that would require developers to provide a minimum percentage of lower -and moderate -income dwelling units within new residential developments. The City is considering several policies, regulations, and incentives to help achieve the Regional Housing Needs Assessment (RHNA) allocation of 4,845 new housing units that the City must plan for over the next 8 years. Of the total RHNA, about 7 1 % must be planned to accommodate moderate- and lower -income households. 30 1 17-42 AP-85 Other Actions - 91.220(k) Introduction: In the implementation of the 2023-2024 Annual Action Plan, the City will invest CDBG resources to address obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional structure and enhance coordination between public and private social service agencies. Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate -income people include lack offunding from federal, state, and other local sources, and the high cost of housing that is not affordable to low- income people, To address these obstacles, the City is investing CDBG funds through the 2023-2024 Action Plan in projects that provide assistance to those with special needs, projects that prevent homelessness, and strengthen economic opportunities for low- and moderate -income residents. To address underserved needs, the City is allocating 100 percent of its non - administrative CDBG investments for program year 2023-2024 to projects and activities that benefit low- and moderate -income people or people presumed under HUD regulations to be low- and moderate -income. Actions planned to foster and maintain affordable housing In the implementation of the 2023-2024 Annual Action Plan, the City will continue to look at alternate fundingsources and programs to preserve and maintain existing affordable housing such as the County's Residential Rehabilitation Program. Actions planned to reduce lead -based paint hazards The City of Newport Beach does not currently implement a Residential Rehabilitation Program, however ifthey are to implement such a program in the future, the City will disseminate brochures provided by the U.S. Environmental Protection Agency to all applicants as part of the transmittal of the program application. Anyunit receiving assistance through the program that was built prior to January I, 1978 will be tested for lead -based paint. If lead -based paint is present, appropriate abatement procedures are implemented as part of the rehabilitation contract consistent with the requirements of 24 CFR fart 35. Actions planned to reduce the number of poverty -level families The implementation of activities funded with other non-CDBG federal, state and local resources will support the Citis effort in reducing the number of poverty -level families by: • Supporting activities that expand the supply of housing that is affordable to low- and moderate- income households, including investment of the City's Housing Trust Fund resources and using the5tate Density Bonus law to incentivize the development of additional affordable housing units; • Supporting a continuum of housing and public service programs to prevent and eliminatehomelessness; ■ Supporting housing preservation programs that ensure low-income households have a safe, decentand appropriate place to live; and 311P ,_ 17-43 • Supporting public services through various nonprofits funded by CDBG that serve the community's youth, seniors, families and those with special needs. In addition to these local efforts, mainstream state and federal resources also contribute to reducing the numberof individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide a pathway out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CaIWOBKs, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provide individuals and families withemployment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation. Other services are available to assist persons suffering from substanceabuse, domestic violence and mental illness. Actions planned to develop institutional structure The institutional delivery system in Newport Beach is high -functioning and collaborative — particularly therelationship between local government and the nonprofit sector comprised of a network of capable community -based organizations that are delivering a full range of services to residents. Organizations such as City Net coordinate housing support groups to increase coordination and leverage key synergies to improve resident outcomes. Affordable housing development and preservation activities will be carried out by thePlanning Division of the Community Development Department in partnership with other agencies. Publicservice activities will be carried out by nonprofit organizations to achieve the Strategic Plan goals. The PlanningDivision and the Engineering Department will work together with contractors to implement public facilityimprovement projects. One of the keyways the City is developing and expanding institutional structure to meet underserved needs isby funding a wide variety of services targeted to seniors, special needs populations and individuals or families at risk of homelessness with CDBG public service grants. Actions planned to enhance coordination between public and private housing and social service agencies To enhance coordination between public and private housing and social service agencies, the City will continueconsulting with and inviting the participation of a wide variety of agencies and organizations involved in thedelivery of housing and supportive services to low- and moderate -income residents in Newport Beach. Discussion In the implementation of the 2020-2024 Consolidated Plan, the City will invest CDBG resources to address obstacles to meeting underserved needs, reduce the number of poverty -level families, develop institutional structure and enhance coordination between public and private social service agencies. 32 j - 17-44 AP-90 Prograrn Specific Requirements - 9 t.220(1)(1,2,4) Introduction: In the implementation of programs and activities under the 2023-2024 Annual Action Plan, the City of Newport Beach will follow all HUD regulations concerning the use of program income, forms of investment, overall low -and moderate -income benefit for the CDBG program. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to becarried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and speck objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 S. The amount of income from float -funded activities 0 Total Program Income: 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low - and moderate -income. Overall Benefit - A consecutive period of one,two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 100,00% Discussion: In the implementation of programs and activities under the 2023-2024 Annual Action Plan, the City of Newport Beach will follow all HUD regulations concerning the use of program income, forms of investment, overall low -and moderate -income benefit for the CDBG program. 331--- .._ 17-45 2023 — 2024 ANNUAL ACTION PLAN JULY I, 2023 THROUGH JUNE 30, 2024 APPENDIX A Citizen Participation To Be Inserted 341 17-46 2023 -- 2024 ANNUAL ACTION PLAN JULY I, 2023 THROUGH JUNE 30, 2024 SF-424, SF-424D, CDBG Certifications, and Resolution To Be Inserted 35 1 17-47