HomeMy WebLinkAbout4.0_Amendment to the 6th Cycle Housing Element_PA2022-0245CITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
September 5, 2024
Agenda Item No. 4
SUBJECT: Amendment to the 6th Cycle Housing Element (PA2022-0245)
▪General Plan Amendment
SITE LOCATION: Citywide
APPLICANT: City of Newport Beach
PLANNER: Benjamin M. Zdeba, AICP, Planning Manager
949-644-3253, bzdeba@newportbeachca.gov
PROJECT SUMMARY
For the Planning Commission’s consideration is a narrowly focused amendment to the City’s
adopted and certified 6th Cycle Housing Element that would revise portions of Section 3
(Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and Section 4
(Housing Plan) to change the narrative and implementing actions to remove the requirement
for a vote of the electorate pursuant to Charter Section 423.
RECOMMENDATION
1)Conduct a public hearing;
2)Find that all significant environmental concerns for the City’s Housing Element and
its implementation have been addressed in a previously certified environmental
document (Housing Element Implementation Program Environmental Impact Report
[PEIR] – State Clearinghouse Number 2023060699); and
3)Adopt Resolution No. PC2024-019 recommending the City Council’s adoption of the
Amendment (Attachment No. PC 1).
INTRODUCTION
Background
The Housing Element is a required element, or chapter, of the General Plan. It presents
how a city plans to accomplish the state-mandated Regional Housing Needs Allocation
(RHNA) on sites within city limits. Local jurisdictions, like the City of Newport Beach (City),
are responsible for creating a regulatory environment in which the private market can
build the unit types included in the RHNA. The City is required to prepare an update to its
housing element every eight years.
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Amendment to the 6th Cycle Housing Element (PA2022-0245)
Planning Commission, September 5, 2024
Page 2
After conducting wide-ranging public outreach involving extensive public participation
opportunities, including numerous meetings of the City Council-appointed Housing
Element Update Advisory Committee (HEUAC), the City Council adopted the City’s 6th
Cycle Housing Element for the 2021-2029 planning period (Housing Element) on
September 13, 2022. The Housing Element was later certified as statutorily compliant
with state law by the California Department of Housing and Community Development
(HCD) on October 5, 2022.
Since adoption and certification, the City has diligently pursued implementation in
alignment with Housing Element Policy Actions 1A through 1G, which collectively serve
to rezone sites identified in Appendix B of the Housing Element to allow for residential
development. To remain compliant, the amendments must take effect by the statutory
deadline of February 2025. Should the City not meet this deadline, the Housing Element
may be considered non-compliant with state housing law. This will enable developers of
affordable housing projects to have their residential projects approved as a “builder’s
remedy” in accordance with the Housing Accountability Act allowing higher density
housing on any site. Further ramifications could include but are not limited to increased
exposure to public and private litigation, loss of permitting authority, financial penalties,
loss of eligibility for state and regional funding sources, court receivership, and increased
exposure to monitoring by the newly formed Housing Accountability Unit of HCD.
A public hearing was held by the City Council on July 23, 2024, to consider the
implementing amendments of the Housing Element. At the conclusion of the hearing, the
City Council adopted the following resolutions to take the related actions:
• CEQA Clearance: Resolution No. 2024-50 Certifying Environmental Impact
Report (State Clearinghouse SCH Number 2023060699), Including a Mitigation
Monitoring and Reporting Program and Adopting Findings, and a Statement of
Overriding Considerations Related to the Housing Element Implementation
Program Involving Amendments to the General Plan, Coastal Land Use Plan, and
Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program
Implementation Plan) of the Newport Beach Municipal Code;
• Land Use Element Amendment: Resolution No. 2024-51 Amending the General
Plan Land Use Element to Implement the General Plan Housing Element
Implementation Program;
• Local Coastal Program Amendment: Resolution No. 2024-52 Authorizing the
Submittal of a Local Coastal Program Amendment to the California Coastal
Commission to Amend the City of Newport Beach Coastal Land Use Plan and Title
21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal
Code Related to the Implementation of the Housing Element;
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Amendment to the 6th Cycle Housing Element (PA2022-0245)
Planning Commission, September 5, 2024
Page 3
• ALUC Override: Resolution No. 2024-53 Finding the Housing Element
Implementation Amendments Consistent with the Purposes of the State
Aeronautics Act and Overriding the Orange County Airport Land Use
Commission's Determination of Inconsistency with the 2008 John Wayne Airport
Environs Land Use Plan; and
• Initiation of Housing Element Amendment: Resolution No. 2024-58 Initiating a
Narrowly Focused Amendment to the Adopted and Certified 6th Cycle Housing
Element to Remove the Reference to Charter Section 423 Voter Approval.
Also, at the conclusion of the public hearing on July 23, 2024, the City Council introduced
the following two ordinances, initiating the following actions for adoption at a future
meeting:
• Zoning Code Amendment for Overlay Rezoning: Ordinance No. 2024-
16 Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal Code
to Implement the General Plan 6th Cycle Housing Element; and
• Zoning Code Amendment for Objective Design Standards: Ordinance No.
2024-17 Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal
Code to Create Multi-Unit Objective Design Standards.
It is important to highlight that, with all the above-mentioned actions, the City Council
determined that a vote of the electorate pursuant to Charter Section 423 is precluded by
state law given the mandate to plan and provide capacity for the RHNA. The full City
Council discussion as captured by the minutes from the meeting is included as
Attachment No. PC 3.
Narrowly Focused Amendment
In accordance with the City Council’s action and direction through the adoption of
Resolution No. 2024-058 (Attachment No. PC 2), City staff prepared a narrowly focused
amendment to the Housing Element. The proposed amendment involves targeted
revisions to Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair
Housing) and Section 4 (Housing Plan) of the Housing Element. Both sets of revisions
serve to modify the narrative and implementing actions related to removing the
requirement for a vote of the electorate pursuant to Charter Section 423. The balance of
the Housing Element, including the sites analysis and all Policy Actions would remain
unchanged.
A redline-strikeout version of Section 3 is included in this report as Attachment No. PC 4.
A redline-strikeout version of Section 4 is included as Attachment No. PC 5.
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Amendment to the 6th Cycle Housing Element (PA2022-0245)
Planning Commission, September 5, 2024
Page 4
As required by state law, on July 26, 2024, City staff published online and circulated the
draft to previously interested parties for a seven-day public review period. Direct
recipients included The Kennedy Commission, People for Housing Orange County, Still
Protecting Our Newport (SPON), The Public Law Center, and YIMBY Law.
At the conclusion of the seven-day public review period on August 2, 2024, City staff
transmitted the draft amendment to the State Department of Housing and Community
Development (HCD) for a formal review along with one piece of written correspondence
received from Jim Mosher, included as Attachment No. PC 6 to this report. No other
correspondence was received in response to the published and circulated amendment.
On August 20, 2024, the City received a letter from HCD confirming the amendment
maintains the City’s compliant status and, with its adoption, the Housing Element will
remain certified as statutorily compliant. This letter is incorporated into the draft resolution
as Exhibit “A” (Attachment No. PC 1).
Next Steps
If the amendment is recommended to the City Council for adoption, then it will be brought
to the City Council on September 24, 2024, for consideration. Alongside this amendment,
the City Council will consider Ordinance Nos. 2024-16 and 2024-17 for adoption and
second reading to approve the rezoning and to establish new multi-unit objective design
standards. With a favorable recommendation and adoption by the City Council, the City
will fulfill its rezoning obligation in compliance with the statutory deadline, a necessary
action in order to maintain certification of a compliant Housing Element throughout the
2021-2029 planning period.
Environmental Review
Implementation of the Housing Element was evaluated in the Housing Element
Implementation Program Amendments Final Program Environmental Impact Report
(PEIR) (SCH No. 2023060699), which was prepared in compliance with the California
Environmental Quality Act (CEQA) as set forth in the Public Resources Code Sections
21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations (CEQA
Guidelines), and City Council Policy K-3 (Implementation Procedures for the California
Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No.
2024-50, to certify the PEIR as complete and adequate, inclusive of all required findings,
a statement of overriding considerations, and a mitigation monitoring reporting program.
Public Notice
Given the citywide nature of this activity, notice of this hearing was published in the Daily
Pilot in a one-eighth-page format at least 10 days before the scheduled meeting,
consistent with Section 20.62.020(B)(2)(c) of the NBMC. Additionally, the item appeared
on the agenda for this meeting, which was posted at City Hall and on the City website.
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Amendment to the 6th Cycle Housing Element (PA2022-0245)
Planning Commission, September 5, 2024
Page 5
Prepared by: Submitted by:
______________________
Benjamin M. Zdeba, AICP
Planning Manager
ATTACHMENTS
PC 1 Draft Resolution
PC 2 City Council Resolution No. 2024-058
PC 3 City Council Meeting Minutes from July 23, 2024
PC 4 Housing Element Section 3 Redline-Strikeout
PC 5 Housing Element Section 4 Redline-Strikeout
PC 6 Correspondence
01/18/23
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Attachment No. PC 1
Draft Resolution
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RESOLUTION NO. PC2024-019
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING THE
CITY COUNCIL ADOPT A NARROWLY FOCUSED AMENDMENT
TO THE ADOPTED AND CERTIFIED 6TH CYCLE HOUSING
ELEMENT FOR THE 2021-2029 PLANNING PERIOD (PA2022-
0245)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. Section 65580 et seq. of the Government Code requires each city and county adopt a
housing element that identifies and analyzes existing and projected housing needs within
their jurisdiction and prepare goals, policies, and programs, and quantified objectives to
further the development, improvement, and preservation of housing.
2. The City of Newport Beach (“City”) 6th Cycle Housing Element for the 2021-2029 period
(“Housing Element”) presents a framework for meeting the housing needs of existing
and future resident populations within Newport Beach based on the Regional Housing
Needs Assessment (“RHNA”) allocation of 4,845 new housing units.
3. The Housing Element was adopted by the City Council on September 13, 2022, and
certified as statutorily compliant with State Housing Element Law on October 5, 2022,
by the State Department of Housing and Community Development (“HCD”).
4. A public hearing was held on July 23, 2024, by the City Council to consider the Housing
Element Implementation, including consideration of certifying the Program
Environmental Impact Report (“PEIR”), adoption of CEQA Findings, Mitigation
Monitoring and Reporting Program and a Statement of Overriding Considerations. A
notice of time, place, and purpose of the hearing was given in accordance with CPUC
Section 21676(b), California Sections 54950 et seq. (“Ralph M. Brown Act”), Chapter
20.62 (Public Hearings), Chapter 20.66 (Amendments), and Chapter 21.62 (Public
Hearings) of the Newport Beach Municipal Code (“NBMC”), and City Council Policy K-1
(General Plan and Local Coastal Program) and City Council Policy K-3 (Implementation
Procedures for the California Environmental Quality Act). Evidence both written and oral,
was presented to, and considered by, the City Council at this hearing.
5. At the conclusion of the hearing, the City Council adopted Resolution No. 2024-58 to
initiate a narrowly focused amendment to the Housing Element to remove the reference
to Charter Section 423 based on evidence presented at the hearing that voter approval
is precluded because state law mandates the City adopt and implement the Housing
Element or else face serious penalties such as loss of state funding and/or lawsuits for
failing to comply with the state’s housing element requirements pursuant to Section
65000 et seq. of the Government Code in the event voters do not approve the Housing
Element Implementation.
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Planning Commission Resolution No. PC2024-019
Page 2 of 11
07-29-24
6. On July 26, 2024, City staff published and circulated draft revisions to Section 3
(Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and
Section 4 (Housing Plan) of the Housing Element (“Amendment”) that incorporates the
legal basis for the removal of Charter Section 423 voter approval requirement to
previously interested parties for a seven-day public review period, including The
Kennedy Commission, People for Housing Orange County, Still Protecting Our Newport,
The Public Law Center, and YIMBY Law.
7. On August 2, 2024, at the conclusion of the seven-day public review period, City staff
transmitted the draft Amendment to HCD for a formal review along with one piece of
written correspondence received from Jim Mosher. No other correspondence was
received in response to the published and circulated Amendment.
8. On August 20, 2024, the City received a letter from HCD, attached hereto and
incorporated by reference as Exhibit “A,” confirming the Amendment maintains the City’s
compliant status and, with its adoption, the Housing Element will remain certified as
statutorily compliant.
9. On September 5, 2024, a public hearing was held in the Council Chambers at 100 Civic
Center Drive, Newport Beach, California. A notice of time, place and purpose of the
hearing was given in accordance with the Ralph M. Brown Act and 65353 of the
Government Code and consistent with City Council Policy K-1 (General Plan and Local
Coastal Program). Evidence, both written and oral, was presented to, and considered
by, the Planning Commission at this hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
The Housing Element Implementation Program Amendments PEIR (SCH No. 2023060699)
was prepared for the Housing Element Implementation in compliance with the California
Environmental Quality Act (“CEQA”) as set forth in the Public Resources Code Sections 21000
et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA
Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California
Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No. 2024-
50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement
of overriding considerations, and a mitigation monitoring reporting program.
SECTION 3. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. The Planning Commission of the City of Newport Beach hereby finds the adoption of this
Amendment is covered under the Housing Element Implementation Program
Amendments Final Program Environmental Impact Report, certified by the City Council on
July 23, 2024, and identified by State Clearinghouse Number 2023060699.
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Planning Commission Resolution No. PC2024-019
Page 3 of 11
07-29-24
2. The Planning Commission of the City of Newport Beach hereby finds that the Amendment,
attached hereto as Exhibit “B” and incorporated by reference, complies with the statutory
requirements set forth in Section 65580 et seq. of the Government Code.
3. In conformance with City Council Policy K-1, the Planning Commission has reviewed
and recommends approval of the Amendment to the City Council by the adoption of this
resolution.
PASSED, APPROVED, AND ADOPTED THIS 5TH DAY OF SEPTEMBER, 2024.
AYES:
NOES:
ABSTAIN:
ABSENT:
BY:_________________________
Mark Rosene, Chair
BY:_________________________
David Salene, Secretary
Attachment: Exhibit A – HCD Letter
Exhibit B – Amendment
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Planning Commission Resolution No. PC2024-019
Page 4 of 11
07-29-24
EXHIBIT A
HCD Letter
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Planning Commission Resolution No. PC2024-019
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07-29-24
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Planning Commission Resolution No. PC2024-019
Page 6 of 11
07-29-24
EXHIBIT B
Amendment
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Planning Commission Resolution No. PC2024-019
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07-29-24
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Planning Commission Resolution No. PC2024-019
Page 8 of 11
07-29-24
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Planning Commission Resolution No. PC2024-019
Page 9 of 11
07-29-24
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Planning Commission Resolution No. PC2024-019
Page 10 of 11
07-29-24
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Planning Commission Resolution No. PC2024-019
Page 11 of 11
07-29-24
5782059.2
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Attachment No. PC 2
City Council Resolution No. 2024-058
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RESOLUTION NO. 2024-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, INITIATING A
NARROWLY FOCUSED AMENDMENT TO THE
ADOPTED AND CERTIFIED 6T" CYCLE HOUSING
ELEMENT TO REMOVE THE REFERENCE TO
CHARTER SECTION 423 VOTER APPROVAL (PA2022-
0245)
WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program)
requires amendments to the City of Newport Beach ("City") General Plan to be initiated
by the City Council;
WHEREAS, California Government Code Section 65580 et seq. ("State Housing
Element Law") requires each city and county adopt a housing element that identifies and
analyzes existing and projected housing needs within their jurisdiction and prepare goals,
policies, and programs, and quantified objectives to further the development, improvement,
and preservation of housing;
WHEREAS, every eight years, State Housing Element Law requires the City to
update its General Plan Housing Element to identify and analyze existing and projected
housing needs for the City along with a housing plan that provides adequate land use
capacity to meet those needs;
WHEREAS, the City was assigned a Regional Housing Needs Assessment
RHNA") allocation of 4,845 new units as its projected housing need forthe planning period
covering 2021-2029 and, as a result, the City worked diligently to prepare its 6t" Cycle
Housing Element in compliance with state law;
WHEREAS, preparation of the 6t" Cycle Housing Element involved extensive public
participation with community groups at numerous workshops, as well as meetings with the
Planning Commission and City Council, and was assisted by an ad -hoc committee called
the Housing Element Update Advisory Committee ("HEUAC") formed and appointed by the
City Council;
WHEREAS, after several meetings with the State Department of Housing and
Community Development ("HCD") and numerous drafts, the City Council adopted the final
6t" Cycle Housing Element on September 13, 2022;
WHEREAS, HCD certified the City's 6t" Cycle Housing Element on October 5,
2022, as statutorily compliant with state law;
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Resolution No. 2024-58
Page 2 of 5
WHEREAS, Section 4 (Housing Plan) of the 6th Cycle Housing Element presents a
framework and strategy for meeting the needs of existing and future resident populations in
Newport Beach based on the RHNA allocation of 4,845 new housing units, the "fair share"
of regional housing need and demand, by planning for units within the following site
groupings or "focus areas" that are best suited for residential growth: Airport Area Environs,
West Newport Mesa, Newport Center, Dove r/Westcliff, and Coyote Canyon;
WHEREAS, the 6th Cycle Housing Element opportunity sites are to be rezoned per
Housing Element Policy Actions 1A through 1 F to accommodate the City's RHNA obligation,
including a buffer necessary to address future "no net loss" of available sites and to preclude
the need to identify replacement sites during implementation;
WHEREAS, the rezoning includes the establishment of overlay zoning districts and
accompanying development standards, as well as corresponding amendments to the
General Plan Land Use Element and the Local Coastal Program;
WHEREAS, to comply with state law, the City has been working diligently to
implement the 6th Cycle Housing Element no later than February 2025 ("6th Cycle Housing
Element Implementation"), which requires the following amendments and actions:
General Plan Amendment ("GPA") - To revise the necessary goals and/or
policies within the City's Land Use Element to support housing production in
the focus areas identified by the 6th Cycle Housing Element;
Amendment to Title 20 (Planning and Zoning) ("ZCA") - To implement the
Land Use Element's policy changes by allowing housing development as an
opportunity and establishing appropriate objective design and development
standards for multi -unit residential and mixed -use development projects;
Local Coastal Program Amendment ("LCPA") - To revise and create new
policies within the City's Coastal Land Use Plan and update Title 21 (Local
Coastal Program Implementation Plan) of the Newport Beach Municipal Code
NBMC") to support housing production in the focus areas identified by the
6th Cycle Housing Element that are within the Coastal Zone; and
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Resolution No. 2024-58
Page 3 of 5
Program Environmental Impact Report ("PEIR") (SCH No. 2023060699) - To
analyze potential environmental impacts under the California Environmental
Quality Act ("CEQA") related to the 6th Cycle Housing Element
Implementation, a Draft Housing Element Implementation Program
Amendments Program Environmental Impact Report ("Draft PEIR"), to
address reasonably foreseeable environmental impacts resulting from the 6th
Cycle Housing Element Implementation;
WHEREAS, Charter Section 423 is described as a possible constraint in Section
3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing), and
further discussed as an implementation action in Section 4 (Housing Plan) of the 6th Cycle
Housing Element;
WHEREAS, the 6th Cycle Housing Element Implementation must take effect by
February 2025 to avoid significant penalties and loss of local control dictated by state law,
which may include, but are not limited to:
Increased exposure to public and private litigation;
Loss of permitting authority;
Financial penalties, including monthly fines of up to $600,000;
Loss of eligibility for state and regional funding sources;
Court receivership;
Allowing housing developers to bypass the City's zoning requirements; and
Increased exposure to monitoring by the newly formed Housing Accountability
Unit of HCD;
WHEREAS, a study session was held on July 9, 2024, by the City Council to
discuss whether a vote of the electorate should be required under Charter Section 423
due to the 6th Cycle Housing Element Implementation being mandated under State
Housing Element Law and therefore precluding a vote under Charter Section 423;
WHEREAS, after public comments and City Council discussion, the City Council
directed staff to return on July 23, 2024, with both options to proceed with a vote and to
proceed without a vote;
25
Resolution No. 2024-58
Page 4 of 5
WHEREAS, City staff has consulted with HCD to describe the narrowly focused
amendment, which would remove the reference to a vote under Charter Section 423 as
a constraint in Section 3 and as an implementing action in Section 4, and has been
provided feedback that the proposed change would not result in a more expansive review
of the 6t" Cycle Housing Element and would not jeopardize the City's compliant status;
and
WHEREAS, a public hearing was held on July 23, 2024, by the City Council in the
Council Chambers located at 100 Civic Center Drive, Newport Beach, California to
consider the 6t" Cycle Housing Element Implementation. A notice of time, place, and
purpose of the hearing was given in accordance with CPUC Section 21676(b) and the
Ralph M. Brown Act. Evidence both written and oral, was presented to, and considered
by, the City Council at this hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby initiate a narrowly focused amendment
to the adopted and certified statutorily compliant 6t" Cycle Housing Element of the
General Plan to remove the reference to a vote of the electorate pursuant to Charter
Section 423 as a constraint or as an implementing action.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 3: 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.
Section 4: The City Council finds the adoption of this resolution is exempt from
environmental review under the California Environmental Quality Act ("CEQA") pursuant
to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title 14,
Division 6, Chapter 3, because it involves feasibility or planning studies on possible future
actions, which the agency, board, or commission has not approved or adopted.
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Resolution No. 2024-58
Page 5 of 5
Section 5: 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 23rd day of July, 2024.
Will O'Neill
Mayor
ATTEST:
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
0., ( - I ."
Aaron C. Harp
City Attorney
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2024-58 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 231d day of July, 2024; and the same was so passed and adopted by the following
vote, to wit:
AYES: Mayor Pro Tern Joe Stapleton, Councilmember Brad Avery, Councilmember
Noah Blom, Councilmember Robyn Grant, Councilmember Lauren Kleiman,
Councilmember Erik Weigand
NAYS: None
ABSTAINED: Mayor Will O'Neill
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said
City this 24th day of July, 2024.
AA" 0 -
r
Leilani I. Brown
City Clerk
Newport Beach, California
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Attachment No. PC 3
City Council Meeting Minutes from July 23, 2024
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City of Newport Beach
July 23, 2024
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly; and
b) Receive and file.
21. Response to the Orange County Grand Jury Report "Law Enforcement's Response to
Mental Health Calls for Service"
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly; and
b) Approve the City's response to the 2023-2024 Orange County Grand Jury report, "Law
Enforcement's Response to Mental Health Calls for Service" and authorize the Mayor to submit
the letter to the Presiding Judge of the Superior Court.
22. Visit Newport Beach, Inc. FY 2025 Destination Business Plan and Budget, and FY 2024
Performance Standards Report
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly;
b) Review, receive and file the FY 2025 Newport Beach & Company Destination Business Plan;
c) Review, receive and file the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2024
Performance Standards Report; and
d) Review and approve the Visit Newport Beach, Inc. Leisure Marketing (TOT) FY 2025 Budget.
Motion by Mayor Pro Tem Stapleton, seconded by Councilmember Blom, to approve the
Consent Calendar; and noting the recusal by Mayor Pro Tem Stapleton to Item 15, the recusal by
Councilmember Grant to Item 16, the continuance of Item 3 with the reconsideration and suspension of
Resolution No. 2024-47, the tabling of Item 7, and the amendments to Item 1.
The motion carried unanimously.
XVI. ITEMS REMOVED FROM THE CONSENT CALENDAR - None
XVII. PUBLIC COMMENTS ON NONAGENDA ITEMS
Jim Mosher encouraged residents to run for City Council, particularly District 5's seat since only one
person is currently running for office, and discussed the process.
XVIII. PUBLIC HEARING
23. Ordinance Nos. 2024-16 and 2024-17, and Resolution Nos. 2024-50 to 2024-57 for the
Necessary Amendments to Implement the 6th Cycle Housing Element and to Place the
Major General Plan Amendment on the November 5, 2024, General Election Ballot
Pursuant to City Charter Section 423; or Resolution No. 2024-58 to Initiate an Amendment
to the 6th Cycle Housing Element
Assistant City Manager Jurjis, Deputy Community Development Director Murillo, and Principal
Planner Zdeba utilized a presentation to provide a recap, review the Summary of Regional Housing
Needs Assessment (R.HNA) Status and Sites Inventory table, Housing Element implementation
legislative documents, direction from the July 9, 2024 City Council study session, Option No. 1's
election process, ballot language, and schedule, Option No. 2's tentative schedule that would not
result in a vote, provided clarifications regarding the remaining RHNA numbers, discussed meeting
State objectives, density bonus units, consequences of noncompliance, provided key takeaways, and
acknowledgements.
In response to Mayor O'Neill's question, City Attorney Harp thought that an Option No. 3 can be
discussed, but the actual ordinance for implementation of the zoning piece cannot go to second
reading and adoption until the Housing Element is amended.
Volume 66 - Page 146
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City of Newport Beach
July 23, 2024
Mayor O'Neill utilized a presentation to highlight the RHNA allocation, the City's attempts to
appeal the allocation, role of the Housing Element Advisory Committee, submittals to the California
Department of Housing and Community Development (HCD), reviewed a July 12, 2024 opinion
piece, discussed the efforts of the General Plan Advisory Committee (GPAC), and pointed out
GPAC's August 21, 2023 recommendation to the Planning Commission. Assistant City Manager
Jurjis clarified that the item that passed as per the August 21, 2023 GPAC meeting minutes was to
approve the Land Use Element that is before Council. Mayor O'Neill continued with the
presentation and noted a substantial reversal in the position people have taken in the last 30 to 45
days that is inconsistent with past actions and asked why this occurred.
Mayor O'Neill opened the public hearing.
Charles Klobe stated that he felt GPAC was restricted when dealing with the Land Use Element or
Housing Element, thought the legal validity of the environmental impact report (EIR) jeopardized
the housing plan and made suggestions for improvement, and indicated that SPON supports Option
No. 1.
Debra Moore thought the decision was not up to Council due to Greenlight (Charter Section 423).
Walter Stahr urged Council to put the proposed amendment on the November ballot using neutral
language, supported Option No. 1, noted flaws in the draft question, and believed Charter Section
423 provides for a vote.
Jeff Herdman utilized a slide to demonstrate the impact of the Housing Element on the City's quality
of life.
Gary Cruz supported holding the vote and suggested a concise Housing Element plan that the public
can understand and support.
Joy Brenner expressed concern for the site selections, zoning adjustment process, buffer strategy,
State density bonus, and Greenlight initiative bypass.
Gary Hill suggested that Council support Option No. 1.
Jim Mosher suggested that Council ask if they have control over the ballot language, thought the
proposed language is biased, stated that the measure needs further revisions, suggested that Option
No. 2 requires a finding, and commented that zoning and objective design standards should be
deferred and reviewed more carefully.
Gina Cruz supported holding a vote and suggested making it work for everyone, including the
builders.
Julie Sherwin asked if staff contacted Yorba Linda to inquire about their approach to their Housing
Element.
Duffy Duffield supported Option No. 1.
Phillip Greer thanked Council for their work on the matter and supported holding a vote of the
people.
Larry Tucker suggested getting the needed buffer and noted that seven hearings have already been
held on this matter.
Gary Crane supported Option No. 1.
Shawna Schaffner, CAA Planning Chief Executive Officer, urged the City Council to adopt the
General Plan Update and zoning overlay.
Volume 66 - Page 147
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City of Newport Beach
July 23, 2024
Linda Watkins suggested that the City conduct an education campaign followed by a vote.
Heath Clark urged Council to uphold Charter Section 423.
Hearing no further testimony, Mayor O'Neill closed the public hearing.
At the request of Mayor O'Neill, Assistant City Manager Jurjis outlined the public outreach efforts
and the site selection process.
In response to Councilmember Blom's question, Dana Privitt of Kimley-Horn and Associates stated
that the analysis takes into consideration the potential for density bonus units so that the number
of anticipated units were addressed as part of the EIR analysis.
In response to Mayor O'Neill, Ms. Privitt relayed that she has not seen in the comment letters or
heard in the public comments anything that would dissuade her from advising Council to certify the
EIR.
Councilmember Blom empathized with the public's frustration and desire to maintain the Newport
Beach culture, relayed having no political ambitions besides serving on Council to make decisions
in the best interest of Newport Beach, and mentioned of Measure B..He listed the consequences of
a failed vote, noted space limitations in the City, reasons for adding units, and emphasized that
State law precludes a vote. He stated that the City Council tries to work with everyone in the
community and questioned reasons for recent opposition.
Mayor Pro Tem Stapleton noted his promise of keeping Newport "Newport," thanked staff for their
time and effort, relayed the options, expressed his frustrations, listed consequences of the Housing
Element falling out of compliance, thought it is all avoidable, and noted one acceptable choice.
Councilmember Avery emphasized that the City cannot afford to have the vote fail, stated that no
one is being indiscriminate, expressed respect for the electorate, relayed being prepared to support
Option No. 2, but would support Option No. 1 as a resident, and relayed challenges educating the
residents and the importance of Greenlight.
Councilmember Grant recognized all the residents who participated in the matter, thanked staff for
their time and professionalism, noted the preclusion of a vote with the State housing mandate,
preferred to follow the City Charter in another way, and noted the City is mandated to do this and
that the City Charter is subject to the State of California. She noted that the decision has not been
taken lightly by Council and staff. She preferred a different path to lessen the burden the State has
placed on the City, acknowledged undesired and drastic consequences, noted there were no loopholes
or workaround, and thought the City must move forward with the State requirements to retain local
control. Lastly, she expressed support for legislative action that would relieve the burdensome
overreach from the State.
Councilmember Kleiman thanked staff for their work on the matter, expressed her disinterest in
the RHNA mandated units, listed actions taken by the City to protect local control and Sacramento's
actions to usurp it, and utilized a graphic to demonstrate all the new proposed housing related
legislation for this year. She stated that this decision was the most critical and challenging decision
in Council's tenure, went on to comment that there is no good option, and acknowledged the level of
uncertainty and risk.
Councilmember Weigand referenced the article published today in Stu News that he authored, and
expressed fear for the actions of HCD and the Attorney General using Newport Beach as an example.
Mayor O'Neill suggested a sequenced approach to the motions.
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City of Newport Beach
July 23, 2024
Motion by Councilmember Blom, seconded by Councilmember Grant, to 2a) determine this
action is exempt from environmental review under CEQA pursuant to Section 15262 of the CEQA
Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3; and 2b) adopt Resolution
No. 2024-58, A Resolution of the City Council of the City of Newport Beach, California, Initiating a
Narrowly Focused Amendment to the Adopted and Certified 61h Cycle Housing Element to Remove
the Reference to Charter Section 423 Voter Approval (PA2022-0245).
With Mayor O'Neill abstaining, the motion carried 6-0-1.
Motion by Mayor O'Neill, seconded by Councilmember Blom, to la) adopt Resolution
No. 2024-50, A Resolution of the City Council of the City of Newport Beach, California, Certifying
Environmental Impact Report (State Clearinghouse [SCH] Number 2023060699), Including a
Mitigation Monitoring and Reporting Program and Adopting Findings, and a Statement of
Overriding Considerations Related to the Implementation of the Oh Cycle Housing Element Involving
Amendments to the General Plan, Coastal Land Use Plan, and Title 20 (Planning and Zoning) and
Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code
PA2022- 0245).
The motion carried unanimously.
Motion by Mayor O'Neill, seconded by Councilmember Avery, to lf) adopt Resolution
No. 2024-53, A Resolution of the City Council of the City of Newport Beach, California, Finding the
Housing Element Implementation Program Amendments Consistent with the Purposes of the State
Aeronautics Act and Overriding the Orange County Airport Land Use Commission's Determination
of Inconsistency with the 2008 John Wayne Airport Environs Land Use Plan (PA2022-0245);
The motion carried unanimously.
Motion by Councilmember Blom, seconded by Councilmember Avery, to ld) waive full
reading, direct the City Clerk to read by title only, introduce Ordinance No. 2024-17, An Ordinance
of the City Council of the City of Newport Beach, California, Amending Title 20 (Planning and
Zoning) of the Newport Beach Municipal Code to Create Multi -Unit Objective Design Standards
PA2022-0245), and pass to second reading on September 24, 2024, or soon thereafter, when the
revised Housing Element will be considered.
The motion carried unanimously.
Motion by Councilmember Blom, seconded by Mayor Pro Tern Stapleton, to lb) adopt
Resolution No. 2024-51, A Resolution of the City Council of the City of Newport Beach, California,
Amending the General Plan Land Use Element to Implement the General Plan 61h Cycle Housing
Element (PA2022-0245); lc) waive full reading, direct the City Clerk to read by title only, introduce
Ordinance No. 2024-16, An Ordinance of the City Council of the City of Newport Beach, California,
Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to Implement the
General Plan 61h Cycle Housing Element (PA2022-0245), and pass to second reading on
September 24, 2024, or soon thereafter, when the revised Housing Element will be considered; and
le) adopt Resolution No. 2024-52, A Resolution of the City Council of the City of Newport Beach,
California, Authorizing Submittal ofa Local Coastal Program Amendment to the California Coastal
Commission to Amend the City of Newport Beach Coastal Land Use Plan and Title 21(Local Coastal
Program Implementation Plan) of the Newport Beach Municipal Code Related to the Housing
Element Implementation Program (PA2022-0245).
With Mayor O'Neill abstaining, the motion carried 6-0-1.
XIX. MOTION FOR RECONSIDERATION - None
XX. ADJOURNMENT - 8:00 p.m.
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City of Newport Beach
July 23, 2024
The agenda was posted on the City's website and on the City Hall electronic bulletin board
located in the entrance of the City Council Chambers at 100 Civic Center Drive on
July 18, 2024, at 4:00 p.m.
Will O'Neill
Mayor
Leilani I. Brown
City Clerk GP RT
t FU1'`%'
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-0
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HOUSING CONSTRAINTS, RESOURCES,
AND AFFIRMATIVELY FURTHERING FAIR
HOUSING
Section 3:
Element Update
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-1
(September 2022 Final Housing Element)
As is common in many communities, a variety of constraints affect the 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, development fees and permitting fees,
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.
A. Nongovernmental Constraints
Nongovernmental constraints affect the cost of housing in the City of Newport Beach and can produce
barriers to housing production and affordability. These constraints include the availability and cost of land
for residential development, the demand for housing, financing, and lending, construction costs, and the
availability of labor, which can make it expensive for developers to build any housing, and especially
affordable housing. The following highlights the primary market factors that affect the production of
housing in Newport Beach.
Land Costs and Construction Costs
Construction costs vary widely according to the type of development, with multi-unit housing generally
less expensive to construct than single-unit homes. However, there is variation within each construction
type, depending on the size of the unit and the number and quality of amenities provided. An indicator of
construction costs is Building Valuation Data compiled by the International Code Council (ICC). The
International Code Council was established in 1994 with the goal of developing a single set of national
model construction codes, known as the International Codes, or I-Codes. The ICC updates the estimated
cost of construction at six-month intervals and provides estimates for the average cost of labor and
materials for typical Type VA wood-frame housing. Estimates are based on “good-quality” construction,
providing for materials and fixtures well above the minimum required by state and local building codes.
In August 2020, the ICC estimated that the average per square-foot cost for good-quality housing was
approximately $118.57 for multi-unit housing, $131.24 for single-unit homes, and $148.44 for residential
care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run
even higher. Construction costs are also dependent upon materials used and building height, as well as
regulations set by the City’s adopted Building Code. For example, according to the ICC, an accessory
dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would costs about $123.68
per square foot. Although construction costs are a significant portion of the overall development cost,
they are consistent throughout the region and, especially when considering land costs, are not considered
a major constraint to housing production in Newport Beach.
Land costs can also pose a significant constraint to the development of affordable and middle-income
housing and represents a significant cost component in residential development. Land costs may vary
depending on whether the site is vacant or has an existing use that must be removed. Similarly, site
constraints such as environmental issues (e.g., steep slopes, soil stability, seismic hazards, flooding) can
also be factored into the cost of land. There are approximately 6,000 acres of vacant and non-vacant
41
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-2
(September 2022 Final Housing Element)
residential land (39.3 percent), out of approximately 15,238 acres of land in Newport Beach, which are
not currently subject to land use constraints (airport restrictions, flood zone, fire high severity zone, NCCP
conservation area, seismic hazard, and sea level rise). However, majority of the acres are developed and
may require rezoning, reuse, and redevelopment due to a lack of vacant sites in the City. Additional costs
may be associated with redeveloping and/or converting sites which may influence the cost of the rental
units or home value.
A September 2020 web search using the Orange County Market report for lots for sale in the City of
Newport Beach returned less than five vacant lots listed for sale. Of the lots listed, the costs ranged from
$600,000 for 0.075 acres near Santa Ana Heights (about $183 per square foot), to $4,995,000 for
0.27 acres with an ocean view (about $430 per square foot). Larger vacant lots reached as high as
$9,995,000 for 0.77 acres inland (about $295 per square foot) to $10,500,000 for 0.51 acres of land (about
$474 per square foot) closer to the coast. According to the same report, in September coastal lots listed
for sale in the City averaged $8,000,000 for 0.6 acres. The cost of land in Newport Beach is higher than
neighboring cities, such as Laguna Beach, where the median cost of land is about $115 per square foot.
Therefore, land and redevelopment costs in Newport Beach create a significant constraint to the
development of housing, specifically affordable housing.
Availability Financing
The availability of financing in a community depends on several factors, including the type of lending
institutions active in a community, lending practices, rates and fees charged, laws and regulations
governing financial institutions, and equal access to such loans. Additionally, availability of financing
affects a person’s ability to purchase or improve a home. Under the Home Mortgage Disclosure Act
(HMDA), lending institutions are required to disclose information on the disposition of loan applications
and the income, gender, and race of loan applicants. The primary concern in a review of lending activity
is to determine whether home financing is available to residents of a community. The data presented in
this section include the disposition of loan applications submitted to financial institutions for home
purchase, home improvement, and refinancing in Newport Beach.
Table 3-1 below displays the disposition of loan applications for the Anaheim-Santa Ana-Irvine
Metropolitan Statistical Area/Metropolitan Division (MSA/MD), per the 2016 Home Mortgage Disclosure
Act report. According to the data, applicants in the 120 percent median-income or more had the highest
rates of loans approved. Of that income category, applicants who reported White had the highest
percentage of approval and the number of applications. Applicants in the less than 50 percent of the
MSA/MD median-income categories were showed higher percentages of denied loans than loans
originated. According to the data, applicants who reported white were, on average, more likely to be
approved for a loan than another race or ethnicity.
Given the relatively high rates of approval for home purchase, improvement, and refinance loans, home
financing is generally available and not considered a significant constraint to the provision and
maintenance of housing in Newport Beach.
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-3
(September 2022 Final Housing Element)
Table 3-1: Disposition of Loan Applications by Race/Ethnicity– Anaheim-Santa Ana-Irvine MSA/MD
Applications by Race/Ethnicity Percent
Approved
Percent
Denied
Percent
Other
Total
(Count)
LESS THAN 50% OF MSA/MD MEDIAN
American Indian and Alaska Native 26.2% 52.3% 23.1% 65
Asian 33.9% 42.5% 26.7% 1,382
Black or African American 41.6% 33.7% 25.8% 89
Native Hawaiian or other Pacific Islander 25.0% 44.2% 30.8% 52
White 45.6% 31.2% 26.1% 5,240
Hispanic or Latino 37.9% 38.2% 26.8% 1,566
50-79% OF MSA/MD MEDIAN
American Indian and Alaska Native 38.1% 34.0% 29.9% 97
Asian 53.3% 25.3% 29.4% 3,153
Black or African American 43.4% 19.1% 41.4% 152
Native Hawaiian or other Pacific Islander 49.4% 39.8% 16.9% 83
White 54.5% 23.3% 27.6% 8,677
Hispanic or Latino 47.6% 27.7% 29.3% 3,245
80-99% OF MSA/MD MEDIAN
American Indian and Alaska Native 51.4% 25.7% 31.4% 35
Asian 59.5% 19.2% 29.3% 1,495
Black or African American 52.9% 22.1% 30.9% 68
Native Hawaiian or other Pacific Islander 43.5% 13.0% 43.5% 23
White 61.9% 17.2% 26.1% 3,873
Hispanic or Latino 54.0% 21.4% 29.1% 1,347
100-119% OF MSA/MD MEDIAN
American Indian and Alaska Native 48.9% 22.7% 29.5% 88
Asian 62.3% 15.6% 28.8% 4,820
Black or African American 55.6% 20.1% 28.6% 234
Native Hawaiian or other Pacific Islander 49.4% 27.6% 31.0% 87
White 66.2% 13.8% 25.1% 12,607
Hispanic or Latino 60.8% 16.4% 26.8% 3,398
120% OR MORE OF MSA/MD MEDIAN
American Indian and Alaska Native 59.2% 13.0% 32.0% 169
Asian 62.8% 12.9% 29.0% 17,800
Black or African American 57.7% 17.3% 27.2% 624
Native Hawaiian or other Pacific Islander 64.2% 11.4% 26.8% 254
White 68.3% 11.3% 24.9% 49,811
Hispanic or Latino 64.6% 13.3% 26.7% 6,095
Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2019.
Economic Constraints
Market forces on the economy and the trickle-down effects on the construction industry can act as a
barrier to housing construction and especially to affordable housing construction. It is estimated that
housing price growth will continue in the City and the region for the foreseeable future. Moving into 2020,
the economy was growing, California was seeing a 1.6-percent growth in jobs from 2019 and experiencing
all-time lows for unemployment rates. COVID-19 had stalled much of the economy in early 2020, however,
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-4
(September 2022 Final Housing Element)
as the California economy regains momentum housing stock and prices in the Newport Beach community
remain stable.
A 2020 California Association of Realtors (CAR) report found that homes on the market in Orange County
experienced a nine percent year to year increase and cost an average of $880,000 in February 2020;
almost $300,000 higher than the State median home price in the same month ($579,770). According to
the CAR First Time Buyer Housing Affordability Index, from 2018 to 2019 the median value of a home in
Orange County was $703,800 with monthly payments (including taxes and insurance) of $3,630, requiring
an average qualifying income of $108,900.
Homes and cost of living in Newport Beach was reported higher than the State median housing and living
costs. According to September 2020 data from Zillow, the median home value of single-unit homes and
condos in Newport Beach is $2,407,454. According to Zillow’s methodology, this value is seasonally
adjusted to remove outliers and only includes the middle price-tier of homes. Newport Beach home values
have gone up 0.7 percent over the past year and Zillow predicts they will rise 3.4 percent within the next
year. Newport’s home value index ($2,407,454) has been on a steep and steady rise since early 2012, and
according to a September 2020 forecasts, they are expected to increase slightly (estimated $2,490,000)
in 2021. Orange County by comparison has a median home value index of $777,000, according to the
same September 2020 report, which is significantly lower than the City of Newport. Forecasted home
prices in the County, through 2021 are set to see minor increases ($810,000). The cost of land and home
prices in Newport are considered a major constraint to the development of and access to housing,
particularly the development of and access to affordable housing.
B. Governmental Constraints
In addition to market constraints, local policies and regulations also affect the price and availability of
housing and the provision of affordable housing. For example, State and Federal regulations affect the
availability of land for housing and the cost of housing production, making it difficult to meet the demand
for affordable housing and limiting supply in a region. Regulations related to environmental protection,
building codes, and other topics have significant, often adverse, impacts on housing cost and availability.
While the City of Newport Beach has no control over State and Federal Laws that affect housing, local
laws including land use controls, site improvement requirements, fees and exactions, permit processing
procedures, and other factors can constrain the maintenance, development, and improvement of housing
create barriers to housing.
Land Use Controls
In the State of California, cities are required to prepare a comprehensive, long term General Plan to guide
future development. The Land Use Element of the General Plan establishes land uses of developments
within the City of Newport Beach. The Land Use Element sets for policies and regulations for guiding local
development. These policies, together with existing zoning regulations, establish the amount and
distribution of land to be allocated for different uses within the City. The Land Use Element of the General
Plan identifies the following residential and mixed-use categories:
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-5
(September 2022 Final Housing Element)
• Single Unit Residential Detached (RS-D): The RS-D category applies to a range of detached single-
unit residential dwelling units on a single legal lot and does not include condominiums or
cooperative housing. The RS-D category permits a density range from 0.0 to 29.9 DU/AC.
• Single Unit Residential Attached (RS-A): The RS-A category applies to a range of attached single-
unit residential dwelling units on a single legal lot and does not include condominiums or
cooperative housing. The RS-A category permits a density range from 0.0 to 29.9 DU/AC.
• Two Unit Residential (RT): The RT category applies to a range of two-unit residential dwelling
units such as duplexes and townhomes. The RT permits a density range from 0.0 to 39.9 DU/AC.
• Multiple Residential (RM): The RM designation is intended to provide for multi-unit residential
development containing attached dwelling units. The RM permits a density range from 0.0 to
52.0 DU/AC.
• Multiple Residential Detached (RM-D): The RM-D designation is intended to provide primarily for
multi-unit residential development exclusively containing detached dwelling units. The RM-D
allows a 1.5 FAR where a minimum FAR 0.35 and maximum FAR if .5 may be used for
nonresidential.
• Mixed-Use Vertical (MU-V): The MU-V designation is intended to provide for the development of
properties for mixed use structures that vertically integrate housing with retail uses including
retail, office, restaurant, and similar nonresidential uses. For mixed-use structures, commercial
uses characterized by noise, vibration, odors, or other activities that would adversely impact on-
site residential units are prohibited. The MU-V allows a 1.5 FAR where a minimum FAR 0.35 and
maximum FAR of .5 may be used for nonresidential.
• Mixed-Use Horizontal (MU-H): The MU-H designation is intended to provide for the development
of areas for a horizontally distributed mix of uses, which may include general or neighborhood
commercial, commercial office, multi-unit residential, visitor-serving and marine-related uses,
and/or buildings that vertically integrate residential with commercial uses. The MU-H allows a
maximum FAR of 1.0 for residential.
• Mixed-Use Water Related (MU-W): The MU-W designation is intended to provide for commercial
development on or near the bay in a manner that will encourage the continuation of coastal-
dependent and coastal-related uses in accordance with the Recreational and Marine Commercial
(CM) designation, as well as allow for the integrated development of residential. The MU-W
permits a density range from 0.0 to 29.9 DU/AC.
These categories accommodate development of a wide range of housing types in Newport Beach.
Furthermore, maintaining the existing residential categories is important for ensuring compatibility
between the new and existing housing.
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-6
(September 2022 Final Housing Element)
Local Coastal Program and Land Use Plan
The Local Coastal Program (LCP) is a coastal management plan that contains land use, development, public
access, and resource protection policies and regulation to implement the California Coastal Act (Coastal
Act). The LCP is comprised of a Land Use Plan (LUP) and an Implementation Plan (IP). The LUP serves in
conjunction with, and is considered a legislative equivalent to, the City’s General Plan Land Use Element
to identify land uses in the Coastal Zone. The intent of this plan is to provide for land uses and residential
density limits that protect coastal resources and public access. The LUP identifies the residential
categories and densities provided in Table 3-2.
Table 3-2: Coastal Land Use Plan Densities
Land Use Maximum Density Range
per Lot
Single-Unit Residential Detached – RSD
RSD-A 0 – 5.9 units per acre
RSD-B 6 – 9.9 units per acre
RSD-C 10 – 19.9 units per acre
RSD-D 20 – 29.9 units per acre
Single-Unit Residential Attached – RSA
RSA-A 0 – 5.9 units per acre
RSA-B 6 – 9.9 units per acre
RSA-C 10 – 19.9 units per acre
RSA-D 20 – 29.9 units per acre
Two Unit Residential - RT
RT-A 0 – 5.9 units per acre
RT-B 6 – 9.9 units per acre
RT-C 10 – 19.9 units per acre
RT-D 20 – 29.9 units per acre
RT-E 30 – 39.9 units per acre
Multiple Unit Residential – RM
RM-A 0 – 5.9 units per acre
RM-B 6 – 9.9 units per acre
RM-C 10 – 19.9 units per acre
RM-D 20 – 29.9 units per acre
RM-E 30 – 39.9 units per acre
RM-F 40 – 52 units per acre
Source: City of Newport Beach Municipal Code
The Coastal Act is administered by the California Coastal Commission. Over 63 percent of the City of
Newport Beach is within the Coastal Zone and subject to oversight by the Coastal. Although the City
retains permit authority in most of the Coastal Zone, development projects located near sensitive coastal
resources, such as the bay, ocean, wetlands, and environmentally sensitive habitat areas, require the
processing of coastal development permits and are subject to appeal by the California Coastal
Commission. This additional level of review and approval process may extend the review period of
development projects and increase the application and discretionary review costs. In addition, any
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-7
(September 2022 Final Housing Element)
request to increase residential densities or allow new residential housing opportunities requires the
processing of a Local Coastal Program amendment through the California Coastal Commission. An
illustrative example is the Master Development Plan for Banning Ranch, a housing development project
that included 1,375 dwelling units, including an affordable housing component, that was adopted by the
City in 2012, but denied by the California Coastal Commission in 2016 components but due to potential
impacts to environmentally sensitive habitats and coastal resources. The Coastal Land Use Plan and
Coastal Commission’s additional review may inhibit development due to the added review time and costs,
and uncertainty of approvals.
Housing in the Coastal Zone
The City of Newport Beach uses Chapters 20.34 and 21.34 (Conversion or Demolition of Affordable
Housing) of the Municipal Code to implement Government Code Section 65590 et seq. Between
April 3, 2000, and June 30, 2020, 3,428 new residential units were permitted for construction within the
California Coastal Zone. Of these new units, 120 were developed as housing affordable to low-income
individuals and/or families (Bayview Landing project). During the same time period, the City issued
demolition permits for a total of 1,857 residential units within the Coastal Zone, resulting in a net increase
of 1,571 units. Of the units demolished, six units were known to be occupied by low-income persons
and/or families and were required to be replaced. The replacement units were provided off-site and rent
restricted for a term of 30-year at rents affordable to very low and low-income households. Lastly, the
City assisted with the acquisition, rehabilitation and conversion of an existing 12-unit apartment building
located at 6001 Coast Boulevard for affordable housing – 6 for low-income veterans and 6 with a priority
for low-income seniors and veterans (The Cove, Project).
John Wayne Airport Environs Land Use Plan (AELUP)
The City’s Airport Area may be considered as an opportunity zone to add residential neighborhoods.
However, land located within the Airport Planning Area for John Wayne Airport are subject to the
development restrictions of the John Wayne Airport Environs Land Use Plan (AELUP), which limits the
ability to develop residential units. Approximately 391 acres are subject to these residential restrictions.
An amendment to the City’s General Plan or rezoning for residential use requires review and approval by
the Airport Land Use Commission (ALUC) and extends the total review period of a proposed housing
development and subsequently increases the cost of development. The added review time and additional
costs may dissuade housing developers, and particularly affordable housing developers, from developing
housing in this area.
Overlay Districts
An overlay district is a regulatory tool that adds special provisions and regulations to an area in the City.
An overlay district may be added to a neighborhood or corridor on a map or it may apply to the City as
whole and be applied under certain circumstances. An overlay district may be initiated as a Zoning Map
amendment. All proposed developments within the overlay district must comply with the district’s
applicable development standards in addition to the Zoning Code standards. Overlay Districts, which
affect housing in Newport Beach, include the Mobile Home Park (MHP) Overlay Zoning District, Bluff
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-8
(September 2022 Final Housing Element)
Overlay Zoning District, and the Height Overlay District. Overlay Districts may be a constraint to the
development of housing when it sets standards which are more restrictive than the Zoning Code.
Overlay Coastal Districts
The purposes of the individual overlay coastal zoning districts and the way they are applied are detailed
below. An overlay district may be initiated as a Coastal Zoning Map amendment in compliance with
Chapter 21.14 of the City’s Municipal Code. All development within these zones must comply with the
applicable development standards (e.g., setbacks, height) of the underlying coastal zoning district in
addition to the standards provided by the respective zone as outline in the Municipal Code, where
applicable.
Mobile Home Park Overlay Coastal Zoning District
The MHP Overlay Coastal Zoning District is intended to establish a mobile home district on parcels of land
developed with mobile home parks. The regulations of this district are designed to maintain and protect
mobile home parks in a stable environment with a desirable residential character. However, such
regulations may pose a constraint to the redevelopment of existing mobile home parks and increasing
density. Uses allowed in the MHP Overlay include the following:
• Mobile Home Parks
• Accessory Structures incidental to the operation of Mobile Home Parks
Bluff Overlay District
The Bluff (B) Overlay District is intended to establish special development standards for areas of the City
where projects are proposed on identified bluff areas. The Bluff Overlay District intends to provide
additional regulations and requirements in order to establish safety standards for developments in the
overlay District. Specific permitted uses, development standards, and requirements are outlined in the
City’s Municipal Code, Chapter 21.28.040. Additional regulations and development standards may
prevent increased density or intensity in areas within the Bluff Overlay District.
Canyon Overlay District
The Canyon (C) Overlay District is intended to establish development setbacks based on the predominant
line of existing development for areas that contain a segment of the canyon edge of Buck Gully or Morning
Canyon. In order to ensure safe development of housing within the Canyon Overlay Districts, development
standards and requirements include the following:
• Development Stringline Setback: Development may not extend beyond the predominant line of
existing development on canyon faces by establishing a development stringline where a line is
drawn between nearest adjacent corners of existing structures on either side of the subject
property.
• Swimming Pools require a double wall construction
• Coastal Hazards and Geologic Stability Report
• Erosion Control Plan
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-9
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Additional specific development standards and requirements are outlined in the City’s Municipal Code,
Chapter 21.28.050. The Canyon Overlay District may inhibit added density or intensity of uses to
residential properties within the overlay.
Height Overlay
The Height (H) Overlay District is intended to establish standards for review of increased building height
in conjunction with the provision of enhanced project design features and amenities. The
Height Overlay District includes properties located in the Multiple Residential (RM) Zoning District within
Statistical Area A2. The maximum height limit is 40 feet for a flat roof and 45 feet for a sloped roof with a
three-story maximum. Additional standards, regulations, and eligibility requirements are outline in the
City’s Municipal Code, Chapter 21.28.060. The Height Overlay District is not considered a constraint to
development as it provides for higher height limits.
State Density Bonus Law
Density bonuses are an additional way to increase the number of dwelling units otherwise allowed in a
residentially zoned area. The City’s Zoning Ordinance identifies the purpose of the Density Bonus
Ordinance is to grant density bonuses and incentives for the development of housing that is affordable to
very low-, low-, and moderate-income households and senior citizens. Under the Density Bonus Law,
developers are entitled to a density bonus corresponding to specified percentages of units set aside for
very low-income, low-income, or moderate-income households.
Effective January 1, 2021, California State Assembly Bill 2345 amends the Density Bonus Law to expand
and enhance development incentives for projects with affordable and senior housing components.
AB 2345 amends the Density Bonus Law to increase the maximum density bonus from 35 percent to
50 percent. To be eligible for the maximum bonus, a project must set aside at least (i) 15 percent of total
units for very low-income households, (ii) 24 percent of total units for low-income households, or (iii) 44
percent of for-sale units for moderate-income households. Levels of bonus density between 35 percent
and 50 percent are granted on a sliding scale. The City’s currently adopted Density Bonus Ordinance is no
longer consistent with State law and must be amended to comply with new statutory requirement.
Implementing Action 3.1.2 of Section 4: Housing Plan outlines the City’s plan to maintain compliance with
State legislation.
Density Bonus Programs
The currently adopted density bonuses are eligible for developments which contain five or more dwelling
units and meet the requirements outlined in Chapter 20.32 of the Newport Beach Municipal Code. Units
that are not eligible for density bonus include developments where affordable housing is required under
the provisions of Title 19.
When a development which meets the requirements, density bonuses are applicable as shown in
Table 3-3 and Table 3-4 below for different income categories. Developments which meet the
requirements for Senior housing will be entitled to a density bonus of twenty percent of the number of
senior housing units.
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-10
(September 2022 Final Housing Element)
Table 3-3: Density Bonus Calculations
Very Low-Income
Percentage of Base Units Proposed Density Bonus Percentage
5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
Low-Income
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
17 30.5
18 32
19 33.5
20 35
Source: City of Newport Beach Municipal Code Chapter 20.32
Table 3-4: Density Bonus Calculations
Moderate-Income
Percentage of Base Units Proposed Density Bonus Percentage
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-11
(September 2022 Final Housing Element)
Moderate-Income
Percentage of Base Units Proposed Density Bonus Percentage
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
Source: City of Newport Beach Municipal Code Chapter 20.32
Additionally, when an applicant for a residential development agrees to donate land to the City for very
low-income households, the applicant is then entitled to a density bonus for the entire market rate
development, if the conditions specified in the City’s Municipal Code Section 20.32.030 are met.
An applicant is entitled to an increase above the maximum allowed residential density as outline in
Table 3-5.
Table 3-5: Density Bonus Calculations
Very Low-Income
Percentage of Base Units Proposed Density Bonus Percentage
10 15
11 16
12 17
13 18
14 19
15 20
16 21
17 22
18 23
19 24
20 25
21 26
22 27
23 28
24 29
25 30
26 31
27 32
28 33
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-12
(September 2022 Final Housing Element)
Very Low-Income
Percentage of Base Units Proposed Density Bonus Percentage
29 34
30 35
Source: City of Newport Beach Municipal Code Chapter 20.32
Additional regulations for density Bonuses include the following:
• Fractional Units: The calculation of a density bonus, in compliance with any of the above
requirements, that results in fractional units shall be rounded up to the next whole number.
• Mixed Income Development: If the applicant desires to develop a density bonus project available
to a mix of income levels, the Director determines the amount of density bonus to be granted up
to a maximum of 35 percent.
Concessions and Incentives
When qualified for a density bonus, an applicant may request additional parking incentives beyond those
provided above. When requested, the City may grant the following (inclusive of handicap and guest
parking):
• Zero to one bedroom: one on-site parking space per unit; or
• Two or more bedrooms: two on-site parking spaces per unit.
In addition to a request for parking incentives, an applicant who meets the density bonus requirements
may also submit a proposal for a reduction in the site development standards or architectural design
requirements; approval of mixed-use zoning in conjunction with the housing development; other
regulatory incentive proposed by the client or the City that will result in identifiable, financially sufficient,
and actual cost reductions; and/or a direct financial contribution granted by the Council at its sole
discretion.
Additional Incentives may also apply for developments with a childcare component, requirements and
applicable incentives are outlines in detailed in the City’s Municipal Code Section 20.32.060. Incentives
and density bonuses allow for increased opportunity and feasibility for the production of affordable
housing in a community, the City of Newport Beach’s Incentives and Density Bonus programs are
comparable to similar Southern California communities and are a constraint to the development of
housing for all income levels.
Residential Development Standards
Citywide, outside the specific plan areas, the City regulates the type, location, density, and scale of
residential development primarily through the Zoning Code. The following summarizes the City’s existing
residential zoning districts:
• Residential-Agricultural (R-A) – Residential-Agricultural is intended to provide for single lots
appropriate for detached single-unit residential dwelling units and light farming.
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-13
(September 2022 Final Housing Element)
• Single-Unit Residential (R-1) – Single-Unit Residential is intended to provide for a range of
detached single-unit residential dwelling units on single lots. This land use designation does not
include condominiums or cooperative housing.
• Two-Unit Residential, Balboa Island (R-BI) – Two-Unit Residential Balboa Island is intended to
provide for a maximum of two residential dwelling units, or duplexes. This is designation is
reserved to single lots on Balboa Island.
• Two-Unit Residential (R-2) – Two-Unit Residential is intended to provide for single lots
appropriate for a maximum of two residential dwelling units, or duplexes.
• Multiple Residential (RM) – Multiple Residential is intended to provide for area appropriate for
multi-unit residential developments containing attached or detached dwelling units.
• Medium Density Residential (RMD) – Medium Density Residential is intended to provide for areas
appropriate for medium density residential developments containing attached or detached units.
• Mixed-Use Vertical (MU-V) – Mixed-Use Vertical is intended to provide for area appropriate for
the development of mixed-use structures that vertically include residential dwelling units.
Residential dwelling units are located above the ground floor, which includes office, restaurant,
retail, and similar nonresidential uses.
• Mixed-Use Mariners’ Mile (MU-MM) – Mixed-Use Mariners’ Mile is intended to provide for areas
appropriate for commercial and residential uses. Mariners’ Mile is located on the inland side of
Coast Highway in the Mariners’ Mile Corridor. Properties that front Coast Highway may only be
developed for nonresidential purposes. Properties to the rear of the commercial frontage may be
developed for freestanding nonresidential uses, multi-unit residential dwelling units, or mixed-
use structures that integrate residential above the ground floor with nonresidential uses on the
ground floor.
• Mixed-Use Cannery Village and 15th Street (MU-CV/15th St.) – Mixed-Use Cannery Village and
15th Street is intended to establish a cohesive district or neighborhood containing multi-unit
residential dwelling units with clusters of mixed-use and/or commercial structures on interior lots
of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses include multi-unity dwelling
units; nonresidential uses; and/or mixed-use structures, where the ground floor is restricted to
nonresidential uses along the street frontage. Residential uses and overnight accommodations
are allowed above the ground floor and to the rear of uses along the street frontage. Mixed-Use
or nonresidential structures are required on lots at street intersections and are allowed, but not
required, on other lots.
• Mixed-Use Water (MU-W1) – Mixed-Use Water is intended to be applied to waterfront properties
along the Mariners’ Mile Corridor in which nonresidential uses and residential dwelling units may
be intermixed. A minimum of 50 percent of the allowed square footage in a mixed-use
development shall be used for nonresidential uses in which marine-related and victor-serving land
uses are mixed. An approved site development review is required prior to any development to
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-14
(September 2022 Final Housing Element)
ensure uses are fully integrated and that potential impacts from their differing activities are fully
mitigated. Design of nonresidential space to facilitate marine-related uses is encouraged.
• Mixed-Use Water (MU-W2) – This second Mixed-Use Water designation is intended to apply to
waterfront properties in which marine-related uses may be intermixed with general commercial,
visitor-related commercial and residential dwelling units on the upper floors.
The City’s Zoning Code also regulates the development on land through minimum and maximum
standards on lot size, lot width and depth, setbacks, and on lot coverage and floor-area ratio (FAR).
Table 3-6 below provides the development standards for each residential zoning district in Newport
Beach:
Table 3-6: Development Standards in Newport Beach – Dimensions
Zone
Dimensions Min. Yard Setbacks Construction Standards
Min. Lot
Size (square
feet)
Min. Lot
Width
(feet)
Min. Lot
Depth
(feet)
Front
(feet)
Side
(feet)
Rear
(feet)
Max.
Height
(feet)*
Max. FAL Max. Site
Coverage
Residential Districts
R-A 87,120 125 N/A 20 5 25 24, 296 N/A 40%
R-1 6,000,
5,000 1 60, 501 N/A 20 3, 42 10 24, 296
2.0 (Citywide)
1.5
(Corona del
Mar)
N/A
R-1-6,000 6,000 60 80 20 6 6 24, 296 N/A 60%
R-1-7,200 7,200 70 90 20 5 20 35, 406 N/A 60%
R-1-10,000 10,000 90 100 15 10 10 24, 296 N/A 60%
R-BI 2,375 60, 501 N/A 20 See
Note 3. 10 ft. 24, 296 1.5 plus 200
sq.ft. N/A
R-2 6,000,
5,000 1 60, 501 N/A 20 See
Note 3. 10 ft. 24, 296
2.0 (Citywide)
1.5
(Corona del
Mar)
N/A
R-2-6,000 6,000 60 80 ft. 20 6 ft. 6 ft. 24, 296 N/A 60%
RM 6,000,
5,000 1 60, 501 N/A 20 See
Note 3. 10 ft. 28, 336 1.74 N/A
RMD 6,000,
5,000 1 60, 501 N/A 20 See
note 4. 25 ft. 28, 336 N/A N/A
RM-6,000 60 60 80 20 6 ft. 6 ft. 28, 336 N/A 60%
Mixed-Use Zoning Districts
MU-V 2,500 25 0 0-55 0-55 26, 316 1.0 (Mixed-
Use)
MU-MM 10,000 50 0 0-55 0-55 26, 316 1.0 (Mixed-
Use)
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-15
(September 2022 Final Housing Element)
Zone
Dimensions Min. Yard Setbacks Construction Standards
Min. Lot
Size (square
feet)
Min. Lot
Width
(feet)
Min. Lot
Depth
(feet)
Front
(feet)
Side
(feet)
Rear
(feet)
Max.
Height
(feet)*
Max. FAL Max. Site
Coverage
MU-DW 40,000 100 0 0-55 0-55 32, 376 1.0 (Mixed-
Use)
MU-
CV/15th St. 5,000 40 0 0-55 0-55 26, 316 1.0, 1.5 7
MU-W1 20,000 200 0 0-55 0-55 26, 316 1.0, 1.5 7
MU-W2 2,500 25 0 0-55 0-55 26, 316 0.75, 0.87
Notes:
(1) Corner Lot, Interior Lot respectively
(2) lots <40 wide, lots >40 wide respectively
(3) 3 ft. for lots > 40ft. wide, 4 ft. for lots 40’1” – 49’11” wide, and 8% of Average Lot Width for lots > 50 ft. respectively,
(4) N/A for lots > 40ft. wide, 5 ft. for lots 40’1” – 49’11” wide, and N/A for lots > 50 ft.
(5) Adjoining residential district
(6) Flat roof, Sloped roof respectively
(7) Mixed Use, Residential respectively
Yard Requirements
Yards allow for open space, landscaping and greenery, emergency access, and pedestrian and vehicular
circulation on a site. Requirements are set in order to ensure there is adequate available space designated
to these elements on a property when considering new development or improvements. Included in these
requirements are setbacks areas that are located between a setback line and the property line and must
remain unobstructed. Setbacks provide the following:
• Visibility and traffic safety
• Access to and around structures
• Access to natural light and ventilation
• Separation of incompatible land uses
• Space for privacy, landscaping, and recreation
• Protection of natural resources
• Safety from fire and geologic hazard
The City’s yard requirements do not prohibit residential developments from reaching the maximum
density on varying lands/sites, it therefore is not a constraint to the development of housing, specifically
housing affordable to low and very low-income households. Additionally, the City’s Density Bonus
programs provides incentives for the development of affordable housing, including a reduction in the site
development standards (e.g., site coverage, setbacks, increased height up to the maximum allowed,
reduced lot sizes, and/or parking requirements.
Site Coverage and Floor Area Limit
Site coverage and Floor Area Limit (FAL) requirements maintain mass and intensity of a use for residential
uses. The Newport Beach Zoning Code defines site coverage as the percentage of a site covered by
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-16
(September 2022 Final Housing Element)
structures and accessory structures, as well as decks that exceed 30 inches in height. Maximum site
coverage standards limit the footprint of a building and calculates it as a percentage between the ground
floor area of a building and the net area of a lot.
The FAL refers to the gross floor area allowed on a residential lot and is determined by multiplying the
allowed buildable area of the lot times the applicable multiplier for the lot. FAL requirements limit the
total usable floor area to limit the bulk of a building to the land, other buildings, and public facilities.
Maximum Building Height
Maximum building heights are set and defined in the City’s Zoning Code to maintain symmetry and
compatibility between existing and proposed developments. The height is measured as the vertical
distance from the grade of the pad to the highest part of the structure, including protective guardrails and
parapet walls. The height limit may be increased within specific areas through the adoption of a Planned
Community Development, a specific plan, a planned development permit, a coastal development permit
in the coastal zone, or a site development review. The deviation in maximum height limit requires
approval of a discretionary action.
• R-A, R-1, R-BI, and R-2 Zoning Districts have height limits of 24 feet for structures with flat roofs
(including guard rails and parapet walls) and 29 feet for sloped roofs. A discretionary approval
may permit height up to 28 feet for flat roofs and 33 feet for sloped roofs.
• RM and RMD Zoning Districts have height limits of 28 feet for structures with flat roofs and 33 feet
for sloped roofs. The height of the structure may be increased to 32 feet for foot roof and 37 feet
for sloped roofs through discretionary approval. Properties located in the Height (H) Overlay
District may increase height limits to 40 feet for flat roofs and 45 feet for sloped roofs.
• Planned Community Districts may also propose and regulate their own height limits.
The City’s building height requirements do not prohibit residential developments from reaching the
maximum density on varying lands/sites, it therefore is not a constraint to the development of housing,
specifically housing affordable to low and very low-income households. Additionally, the City’s Density
Bonus programs provides incentives for the development of affordable housing, including a reduction in
the site development standards (e.g., site coverage, setbacks, increased height up to the maximum
allowed, reduced lot sizes, and/or parking requirements.
Additionally, the City has identified sites in the RM and MU zones (listed in Appendix B) which can
accommodate a portion of the City’s RHNA allocation. The heights identified for the Multiple Residential
(RM) and Mixed-Use (MU) Zones are considered base height limits and can be altered through a
discretionary approval process.
• However, most of the denser residential development projects are within planned communities
where the developer sets the identified height limitation. Examples of this include:
• Uptown Newport Planned Community Zoning District (PC-58), which allows for heights up to 150
feet
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-17
(September 2022 Final Housing Element)
• Residential Overlay within the Newport Place Planned Community Zoning District (PC-11), which
has a base height limit of 55 feet that can be increased up to the maximum allowable under
Federal Aviation Regulation (FAR) Part 77
• San Joaquin Plaza Planned Community Zoning District (PC-19) allows heights up to 69 feet
The City will establish housing overlay zones that will apply to all opportunity sites in each focus area. Like
the Residential Overlay within the Newport Place Planned Community Zoning District (PC-11) and other
planned communities, the future housing overlay will establish increased height limits appropriate to
accommodate the proposed densities. The details of the housing overlay zones are yet to be determined.
Usable Open Space
The City’s Zoning Code defines Usable Open Space as an outdoor or enclosed area on the ground, roof,
balcony, deck, porch, or terrace, used for outdoor living, active or passive recreation, pedestrian access,
or landscaping. This does not include parking facilities, driveways, utility, or service areas, required
setbacks, and sloped or submerged land. All residential districts in Newport Beach have a maximum site
coverage to allow for open space. Mixed-Use districts require 75 square feet per dwelling unit of common
open space and 5 percent of the gross floor area of private open space for each unit.
The City’s usable open spaces requirements do not prohibit residential developments from reaching the
maximum density on varying lands/sites, it therefore is not a constraint to the development of housing,
specifically housing affordable to low and very low-income households. Additionally, the City’s Density
Bonus programs provides incentives for the development of affordable housing, including a reduction in
the site development standards (e.g., site coverage, setbacks, increased height up to the maximum
allowed, reduced lot sizes, and/or parking requirements.
Parking Standards
Adequate off-street parking shall be provided to avoid street overcrowding and maintain parking
opportunities for the public to visit the coast. This is maintained through the City’s parking requirements
for each housing unit type, as shown in Table 3-7. Parking requirements may add to the development cost
of a property and project as spaces and garage parking create additional costs and remove potentially
livable space.
Table 3-7: Parking Requirements for Residential Uses
Unit Type Number of Spaces Required
Accessory Dwelling Unit 1 parking space, with exceptions (1)
Junior Accessory Dwelling Unit No additional parking required
Single-Unit Dwellings – Attached 2 per unit in a garage
Single-Unit Dwellings – Detached and less than
4,000 sq. ft. of floor area 2 per unit in a garage
Single-Unit Dwellings – Detached and 4,000 sq. ft.
of floor area 3 per unit in a garage
Single-Unit Dwellings – Balboa Island 2 per unit in a garage
Multi-Unit Dwellings – 3 units 2 per unit covered, plus guest parking
1-2 units, no guest parking required
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-18
(September 2022 Final Housing Element)
Unit Type Number of Spaces Required
3 units, 1 guest parking space
Multi-Unit Dwellings – 4 units or more 2 per unit covered, plus 0.5 space per unit for guest parking
Two-Unit Dwellings 2 per unit; 1 in a garage and 1 covered or in a garage
Live/Work Units 2 per unit in a garage, plus 2 for guest/customer parking
Senior Housing – Market Rate 1.2 per unit
Senior Housing – Affordable 1 per unit
Note:
1. Parking is waived for ADUs if the property is within ½ mile walking distance to transit (including ferry); within an
architecturally or historically significant district; on-street parking permits are required and not provided to the occupant
of the ADU; or within one block of a car-share vehicle pick-up/drop-off location
Source: City of Newport Beach Municipal Code
The City’s parking requirements vary depending on type of unit. As shown in Table 3-7, the City’s parking
requirements are similar to those throughout the region and are based on generation rates by use type.
Multiple family parking requirements are not overly restrictive and the City may grant exceptions to these
standards through state-required density bonus provisions and other provisions in the Municipal Code.
As part of the city’s rezone program to accommodate future housing growth, development standards,
such as parking requirements, will be evaluated to potentially provide additional incentives, concessions
reductions or modifications, as appropriate The City’s Density Bonus program also provides incentives for
the development of affordable housing, including a reduction in the site development standards (e.g., site
coverage, setbacks, increased height up to the maximum allowed, reduced lot sizes, and/or parking
requirements.
Additionally, the City has not denied any residential projects based upon a lack of required parking.
Parking has also not been identified by prospective residential development proponents as a constraint.
If, however, parking is identified as an issue, then the City’s Zoning Code offers alternative means of
compliance through off-site parking, demonstrative a reduced-parking demand, or a shared-parking
arrangement. This is accomplished through review and approval of a use permit (see NBMC Sections
20.40.100 (Off-Site Parking) and 20.40.110 (Adjustments to Off-Street Parking Requirements) or their
successor sections.
Furthermore, parking standards can be modified through projects taking advantage of a density bonus, if
deemed necessary.
Variety of Housing Types Permitted
Housing Element Law requires jurisdictions to identify sites to be made available through zoning and
development standards in order to facilitate development of a variety of housing types for all
socioeconomic levels of the population. Housing types include single-unit dwellings, multi-unit housing,
accessory dwelling units, factory-built housing, mobile homes, employee and agricultural work housing,
transitional and supportive housing, single-room occupancy units (SROs), and housing for persons with
disabilities. Table 3-8 below identifies the various housing types permitted within each residential and
Table 3-9 identified housing types permitted in mixed-use zoning district in Newport Beach.
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-19
(Revised Draft June 2022)
Table 3-8: Various Housing Types Permitted in Residential Zones
Housing Type
Residential Zones Nonresidential Zones
R-A R-1* R-BI R-2 RM RMD OS PF PR PI IG OA OG OM OR CC CG CM CN CV CV-
LV
Single-Unit Dwellings – Attached -- -- P P P P NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Single-Unit Dwellings – Detached P P P P P P NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Multi-Unit Dwellings -- -- -- -- P P NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Two-Unit Dwellings -- -- P P P P NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Accessory Dwelling Unit(s) P P P P P P NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Junior Accessory Dwelling Unit(s) P P P P P P NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Live-Work Units -- -- -- -- -- -- NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Short-Term Lodging -- -- P P P P NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Residential Care Facilities – Limited
(6 or fewer) Licensed P P P P P P NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Residential Care Facilities – Limited
(6 or fewer) Unlicensed -- -- -- -- CUP-
HO
CUP-
HO NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Residential Care Facilities – General
(7 or More) Licensed -- -- -- -- CUP-
HO
CUP-
HO NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Residential Care Facilities – General
(7 or More) Unlicensed -- -- -- -- CUP-
HO
CUP-
HO NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Residential Care Facilities – Integral
Facilities/Integral Uses -- -- -- -- CUP-
HO
CUP-
HO NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
Residential Care, Accessory Use Only NA NA NA NA NA NA -- MUP -- MUP NA NA NA NA NA NA NA NA NA NA
Caretaker Residence NA NA NA NA NA NA NA NA NA NA P NA NA NA NA NA NA NA NA NA
Congregate Care Home NA NA NA NA NA NA -- -- -- MUP NA NA NA NA NA NA NA NA NA NA
Convalescent Facilities NA NA NA NA NA NA -- -- -- MUP NA NA NA NA NA NA NA NA NA NA
Parolee-Probationer Home -- -- -- -- -- -- NA NA NA -- NA -- NA NA NA NA NA NA NA NA NA
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Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-20
(September 2022 Final Housing Element)
Housing Type
Residential Zones Nonresidential Zones
R-A R-1* R-BI R-2 RM RMD OS PF PR PI IG OA OG OM OR CC CG CM CN CV CV-
LV
Farmworker Housing NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Supportive Housing NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Transitional Housing NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
Emergency Shelters -- -- -- -- -- -- -- -- -- P NA P -- -- -- NA NA NA NA NA NA
Low Barrier Navigation Centers NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA
SRO Residential Hotel NA NA NA NA NA NA NA NA NA NA NA CUP CUP CUP CUP CUP CUP CUP CUP CUP --
Notes:
P – Permitted by Right
A – Allowed
MUP – Minor Use Permit
CUP-HO – Conditional Use Permit in Residential Zoning Districts
(--) - Not Allowed
NA – Not Listed/Stated
*Located above 1st floor
Source: City of Newport Beach Municipal Code
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Table 3-9: Mixed-Use Housing Types Permitted in Mixed-Use Zones
Housing Type
Zones
MU-V MU-MM MU-DW MU-CV/
15th St. MU-W1 MU-W2
Single-Unit Dwellings –
Attached P* (1) -- -- P (3) P* (1) P* (2)
Single-Unit Dwellings –
Detached -- -- -- -- -- --
Multi-Unit Dwellings P* (1) P (1)(2) P (1) P (3) -- --
Two-Unit Dwellings P* (1) -- -- P (3) -- --
Accessory Dwelling Unit(s) P P P P P P
Junior Accessory Dwelling
Unit(s) P P P P P P
Live-Work Units P P (1)(2) P P (3) -- --
Notes:
*Located above 1st floor
(1) Allowed only as part of a mixed-use development. Refer to Section 20.48.130 (Mixed-Use Projects) for additional
development standards.
(2) Not allowed to front onto Coast Highway.
Not allowed on lots at street intersections unless part of a mixed-use or live-work structure.
Source: City of Newport Beach Municipal Code
Single-Unit Dwelling
A Single-Unit Dwelling is defined as a structure on a single lot containing one dwelling unit and one
housekeeping unit. The structure shall be constructed in compliance with the California Building Code
(CBC) and placed on a permanent foundation. Single-Unit Dwellings may be attached or detached. An
attached dwelling is owned in fee, located on an individual lot, and shares a wall or roof with another
structure. A detached dwelling is also owned in fee and located on an individual but is not connected to
another structure in any way.
Multi-Unit Dwelling
A Multi-Unit Dwelling contains three or more dwelling units within the same structure occupied on a single
lot. Each dwelling unit is occupied by separate housekeeping units. This housing type includes triplexes (3
dwelling units in one structure), fourplexes (four dwelling units in one structure), and apartments (5 or
more dwelling units in one structure), where each structure is owned by one entity and each dwelling unit
is rented out. Condominiums are also multi-unit dwellings, but each individual dwelling unit is owned by
separate entities. The structure must be placed on a permanent foundation and constructed in
compliance with the California Building Code (CBC).
Two-Unit Dwelling
A Two-Unit Dwelling contains two dwelling units, each occupied by their own housekeeping unit, and
located within the same structure. This may be referred to as a duplex. The structure must be placed on
a permanent foundation and constructed in compliance with the California Building Code (CBC).
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Accessory Dwelling Unit (ADU)
An Accessory Dwelling Unit is a secondary dwelling unit, attached or detached, to the primary residence(s)
on a single lot. This may be referred to as a “granny flat,” “in-law unit,” or “carriage house.” An ADU must
include a kitchen, a full bathroom, a living area, and a separate entrance. The Newport Beach Zoning Code
includes efficiency units and manufactured homes as ADUs. Junior ADUs (JADUs) are defined by the City’s
Municipal Code as a dwelling unit accessory to and entirely contained within an existing or proposed
single-unit dwelling. A JADU may not be greater than 500 square feet, and it must either include its own
sanitation facilities or share facilities with the single-unit dwelling. A JADU must also include its own
efficiency kitchen.
Live-Work Unit
Live-Work Units refer to structures that include both a commercial and a single dwelling unit. Commercial
uses are generally located on the ground floor, with the dwelling unit located one to two stories above.
Short-Term Lodging
Short-Term Lodging refers to a dwelling unit that is rented or leased as a single housekeeping unit for 30
days or less.
Single-Room Occupancy (SRO)
Within the Zoning Code, SROs fall under the classification of Visitor Accommodations and are defined as
buildings with six or more guest rooms without kitchen facilities in individual rooms, or kitchen facilities
for the exclusive use of guests, and which are also the primary residences of the hotel guests. SROs are
permitted in all commercial (CC, CM, CN, CV) and office (OG, OM, OR) zoning districts with the approval
of a conditional use permit. To facilitate the development of SROs within these districts, the City will not
develop, nor impose, any special set of conditions or use restrictions on SROs; instead, each application
would be evaluated individually and approved based upon its own merits and circumstances. Additionally,
the Housing Element includes a Policy Action 3O to encourage and facilitate the development of at least
one SRO development, or the preservation and rehabilitation of an SRO development, within the Planning
Period.
Residential Care Facilities
On January 22, 2008, the City Council approved Ordinance No. 2008-5 (“Ordinance”) with the intent of
maintaining zoning protections for residential districts, while benefiting disabled persons who wished to
live in those districts. This Ordinance balances the protections granted under the federal Fair Housing
Act, Fair Housing Act Amendments (42 U.S.C. Section 3601) and other state and federal laws (i.e.
Americans with Disabilities Act) to persons with disabilities, while also ensuring the residential character
of the neighborhood is maintained.
As defined by the City, Residential Care Facilities provide housing for individuals with a disability and are
commonly referred to as group homes, sober living homes, and state licensed alcoholism or drug abuse
recovery or treatment facilities. Facilities that provide treatment services are required to be licensed by
the State of California Department of Social Services or Department of Health Care Services (“DHCS”).
Unlicensed facilities are not allowed to provide treatment services, but rather are meant to provide an
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interim environment between rehabilitation and stabilized living. Depending on the number of persons
residing within the facility and treatment provided, residential care facilities are further classified as
follows:
• General Licensed (Seven or More Persons)
• General Unlicensed (Seven or More Persons)
• Limited Licensed (Six or Fewer Persons)
• Small Unlicensed (Six or Fewer Persons)
The purpose of the Ordinance is to allow disabled persons to live in a residential setting while ensuring
that the residential care facilities are operated in a manner consistent with the residential character of
surrounding neighborhoods, do not recreate an institutional environment that would defeat the purpose
of community-based care, and that residential care facilities serving the disabled are operating in
compliance with City and state laws/regulations. To achieve these purposes and to provide disabled
persons with an equal opportunity to use and enjoy a dwelling in the City’s residential zoning districts, the
City treats licensed residential care facilities for six or fewer persons as single-unit residence permitted
by-right in all residential-zones (R-A, R-1, R-BI, R-2, RM, and RMD). Also, residential care facilities for seven
or more persons and unlicensed residential care facilities are permitted in the following zoning districts,
with a Conditional Use Permit:
• Residential Districts— RM and RMD zoning districts.
• Planned Community Districts—Property development regulations applicable to residential
districts, related to residential care facilities, shall also apply to the corresponding portions of
the PC Districts.
The location and permitting requirements applicable to larger and unlicensed residential care facilities are
intended to avoid overconcentration so as to maintain the residential character of a neighborhood, which
if lost would have an adverse effect on the welfare of the individuals’ receiving services from the
residential care facility and defeat the purpose of community-based recovery. The American Planning
Association's Policy Guide on Community Residences, which supports residential care facilities, states that
residential care facilities should be scattered throughout residential districts rather than being
concentrated on any single block or in any single neighborhood. If several residential care facilities are
located next to one another, or are placed on the same block, the ability of the residential care facilities
to achieve normalization and community integration would be compromised.
Also, the Departments of Justice and Housing Urban Development have stated that a neighborhood
composed largely of residential care facilities could adversely affect individuals with disabilities and would
be inconsistent with the objective of integrating persons with disabilities into the community. The
California Research Bureau similarly found that facilities should be scattered throughout residential
districts, and facilities so densely clustered as to recreate an institutional environment would defeat the
purpose of community-based care.
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Newport Beach has a significant number of residential care facilities compared to other communities.
According to DHCS and City records, there are currently 21 state-licensed residential treatment facilities
and an additional 8 City-permitted unlicensed residential facilities in Newport Beach, a community which
as of 2019 had a total resident population of 85,694. As a measure of comparison, there are currently
only 8 state-licensed residential treatment facilities in Sacramento which had a total residential
population of 500,930 people, as of 2019.
As set forth above, the City has a significant number of residential care facilities, when compared to other
cities, and, under the current regulations, there are significant portions of the City that can accommodate
additional facilities. In addition, the City’s has a well-defined Reasonable Accommodation procedure,
which further ensures individuals with disabilities are protected. Specifically, Section 20.52.070 of the
Newport Beach Municipal Code provides procedures for obtaining reasonable accommodation from the
City’s zoning and land use regulations, policies, and practices when necessary to provide an individual with
a disability an equal opportunity to use and enjoy a dwelling. With a reasonable accommodation, a group
of disabled individuals can reside in any district zoned for residential use within the City.
Section 20.52.070 ensures that reasonable accommodation requests are processed efficiently without
imposing costs on the applicant. The City does not assess a fee for reasonable accommodation requests.
Although a public hearing is required, the matter is heard before a Hearing Officer rather than the Planning
Commission, which helps establish an apolitical and more objective decision-making authority, and results
in a more expedited processing. As described in more detail in the Reasonable Accommodation Section of
the Housing Element, the findings are based on the objective need to provide an individual with a disability
an equal opportunity to use and enjoy a dwelling. To date, the City has approved three conditional use
permits and six reasonable accommodations for general and unlicensed residential care facilities, which
shows that these processes are not a significant constraint.
It is also important to note that these types of facilities are the only groups not living as a single
housekeeping unit that may be established in a residential district. Other types of group residential uses
occupied by two or more persons not living as a single housekeeping unit (e.g. dormitories, fraternities,
sororities, and private residential clubs) are not permitted within residential districts. By providing an
opportunity to establish residences with a conditional use permit or reasonable accommodation to
disabled groups, the Municipal Code gives more favorable treatment to disabled groups not living as single
housekeeping units than it gives to non-disabled groups that are not living as a single housekeeping unit.
Therefore, groups of disabled individuals are distinguished only to the extent they are treated
preferentially.
Residential Care Facilities – General Licensed (Seven or More Persons)
General Licensed Residential Care Facilities provide a single housekeeping unit for individuals with a
disability who reside at the facility. There may be 7 or more individuals residing at the facility, but they
each reside in separate dwelling units. The facility may include a place, site or building, or groups of places,
sites, or buildings, licensed by the State.
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Residential Care Facilities – General Unlicensed (Seven or More Persons)
General Unlicensed Residential Care Facilities include a place, site or building, or groups of places, sites,
or buildings, which are not licensed by the State and provide housing to 7 or more individuals with
disabilities in separate dwelling units. The facility is not required by law to be licenses by the State.
Residential Care Facilities – Limited Licensed (6 or Fewer Persons)
Limited Licensed Residential Care Facilities provide care, services, and/or treatment in a community
residential setting for six or fewer individuals. Individuals may include adults, children, or adults and
children. The facility shall be considered a single housekeeping unit and must therefore be in compliance
with all land use and property development regulations applicable to single housekeeping units.
Residential Care Facilities – Small Unlicensed (6 or Fewer Persons)
Small Unlicensed Residential Care Facilities include a place, site or building, or groups or places, sites, or
buildings in which 6 or fewer individuals with disabilities reside in separate dwelling units. The facility is
not required by law to be licensed by the State.
Parolee-Probationer Home
Parolee-Probationer Home refers to a structure or dwelling unit which houses 2 or more parolees-
probationers who are unrelated by blood, marriage, or legal adoption. The parolees-probationers reside
here in exchange for monetary or nonmonetary consideration given and/or paid by the parolee-
probationer and/or any public or private entity or person on behalf of the parolee-probationer. The
residential structure may be operated by an individual, a for-profit entity, or a nonprofit entity.
Mobile Home Park
A Mobile Home refers to a transportable trailer that is certified under the National Manufactured Housing
Construction and Safety Standards Act of 1974. The mobile home is over 8 feet in width and 40 feet in
length and may or may not include a permanent foundation. A mobile home on a permanent foundation
is considered a single-unit dwelling.
Convalescent Home
Convalescent Home refers to an establishment that provides 24-hour care for persons requiring regular
medical attention. A convalescent home may be referred to as a “nursing home” or “hospice.” This facility
does not provide emergency medical services or surgical services.
Common Interest Development
Common Interest Developments include community apartment projects, condominium projects, planned
developments, and stock cooperative.
Farmworker Housing
Farmworkers are considered a special needs interest group by HCD. Farmworkers are traditionally defined
as people whose primary incomes are earned through permanent or seasonal agricultural labor.
Farmworkers are generally considered to have special housing needs due to their limited income and the
often-unstable nature of their employment. In addition, farmworker households tend to have high rates
of poverty, live disproportionately in housing that is in the poorest condition, have extremely high rates
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of overcrowding, and have low homeownership rates. There is a total of 1,772 farmworkers in the County
of Orange, though few may reside in Newport Beach the City must consider the housing needs of this
community. The Newport Beach Municipal Code does not explicitly define Farmworker Housing or outline
it as a permitted use in residential or nonresidential zones. Policy Action 3O of the Section 4: Housing
Plan outlines the City’s strategy to update the Municipal Code in accordance with state legislation.
Supportive Housing
California State Assembly Bill 2162 amended Section 65583, Planning and zoning law to specify that
supportive housing is a residential use of property, subject only to those restrictions that apply to other
residential dwellings of the same type in the same zone. The City of Newport Beach’s Municipal Code does
not explicitly define Supportive Housing or identify zones where is it is a permitted use. Policy Action 7B
of the Section 4: Housing Plan outlines the City’s strategy to update the Municipal Code in accordance
with state legislation.
Transitional Housing
The City of Newport Beach defines Transitional Housing as rental housing operating under program
requirements that call for the termination of assistance and recirculation of the assisted unit to another
eligible program recipient program at some predetermined future point in time, which shall be no less
than six months. Transitional housing that is provided in single-, two- or multi-unit dwelling units, group
residential, parolee-probationer home, residential care facilities, or boarding house uses shall be
permitted, conditionally permitted or prohibited in the same manner as the other single-, two-, or
multi-unit dwelling units, group residential, parolee-probationer home, residential care facilities, or
boarding house uses under this code.
The City of Newport Beach’s Municipal Code does not explicitly identify Transitional Housing as a
permitted use within the appropriate zones as required by state law. Policy Action 7B of the Section 4:
Housing Plan outlines the City’s strategy to update the Municipal Code in accordance with state
legislation.
Emergency Shelters
State Law existing law authorizes a political subdivision to allow persons unable to obtain housing to
occupy designated public facilities, as defined, during the period of a shelter crisis. Existing law provides
that certain state and local laws, regulations, and ordinances are suspended during a shelter crisis, to the
extent that strict compliance would in any way prevent, hinder, or delay the mitigation of the effects of
the shelter crisis. The City of Newport beach permits Emergency shelters in the OA – Office Airport zoning
district and the PI – Private Institutions Coastal zoning district.
Properties designated for PI are distributed throughout the City, but primarily located along major
transportation corridors and offer easy access to public transportation. The PI zoning district is intended
to provide for areas appropriate for privately owned facilities that serve the public, including places for
assembly/meeting facilities (e.g., religious assembly), congregate care homes, cultural institutions, health
care facilities, marinas, museums, private schools, yacht clubs, and comparable facilities. There are over
44 parcels totaling approximately 135 acres in the proposed PI zoning district. Several of the existing uses
on these properties are religious assembly uses, many of which consist of large campuses. Given the high
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land costs in the City, these religious assembly facilities could provide the best means to facilitate the
development and management of emergency shelters in the City.
Additionally, properties designated for OA are located within three large blocks east of John Wayne
Airport, west of Birch Street, north of Bristol Street/73 Freeway, and south of MacArthur Boulevard. These
properties are also located along major transportation corridors and offer easy access to public
transportation. The AO zoning district is intended to provide for areas appropriate for the development
of properties adjoining the John Wayne Airport for uses that support or benefit from airport operations.
These may include corporate and professional offices; automobile sales, rental and service; aviation sales
and service; hotels; and accessory retail, restaurant, and service uses. There are over 56 parcels totaling
approximately 54 acres in the AO zoning district. Several of the existing uses on these properties are low
and medium density professional office buildings, many of which are aging and offer affordable rents
compared to most other parts of the City. These properties should provide realistic opportunities for reuse
of these structures for the development and management of emergency shelters in the City. Combined,
the PI and AO zoning districts consist of over 98 parcels and 189 acres. By allowing emergency shelters as
permitted uses within these districts, adequate sites are available for the potential development of
emergency shelters in the City.
Low Barrier Navigation Centers
AB 101 states that “The Legislature finds and declares that Low Barrier Navigation Center developments
are essential tools for alleviating the homelessness crisis -.” Low Barrier Navigation Centers are defined as
a Housing First, low-barrier, service-enriched shelter focused on moving people into permanent housing
that provides temporary living facilities while case managers connect individuals experiencing
homelessness to income, public benefits, health services, shelter, and housing. Low Barrier Navigation
Centers are required as a use by right in areas zoned for mixed uses and nonresidential zones permitting
multi-unit uses if it meets specified requirements. The City of Newport Beach’s Municipal Code does not
address Low Barrier Navigations Centers by definition. A program will be adopted to ensure the City’s
development standards allow Low Barrier Navigation Centers By-Right in all zones that permit mixed-uses
and non-residential uses. Policy Action 7A of the Section 4: Housing Plan outlines the City’s strategy to
update the Municipal Code in accordance with state legislation.
Planned Community District
The Planned Community (PC) District is intended allow for a coordinated variety of uses and allows
projects to benefit from large-scale community building. PC Districts allow for greater flexibility and less
restrictive development regulations, while also maintaining compliance with the intent and provisions of
the Zoning Code. The Newport Beach Municipal Code states that a PC District may include various types
of uses given they are consistent with the General Plan through the adoption of a development plan and
text materials that identify land use relationships and associated development standards.
PC Districts allow for large scale housing projects on land areas no less than 25 acres of unimproved land
area or 10 acres of improved land area; however, the City Council may waive the minimum acreage
requirements. Improved land area refers to parcels of land with existing permanent structures occupying
at least 10 percent of the total PC District. The subject property must be reclassified as a PC District and a
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Development Plan must be filed with the City to initiate the development process. The Development
Plans are reviewed by the Director, scheduled for a public hearing before the Planning Commission for a
recommendation, and approved by the City Council. A Planned Community District must also go through
an environmental review.
The Development Plan must contain:
• A land use map containing the distribution, location, and extent of uses proposed
• Land use tables designating permitted uses
• Development standards
• Protection measures for landforms and public views
• Sustainable improvement standards
• Location and extent of essential facilities including circulation and transportation, drainage,
energy, sewage and waste disposal, and water
• Development standards for conservation, development, and utilization of natural resources
• A program of implementation measures, programs, regulations, and public works projects
• A topographical map to illustrate the character of the terrain and condition of existing vegetation
• A summary of the relationship between the proposed development plan and the goals, policies,
and actions of the General Plan
Growth Management Measures
Growth management measures are techniques used by a government to regulate the rate, amount, and
type of development. Growth management measures allow cities to grow responsibly and orderly,
however, if overly restricted can produce constraints to the development of housing, including accessible
and affordable housing.
On November 7, 2000, the Newport Beach electorate approved Measure S, which. Measure S amended
the Newport Beach City Charter by adding Section 423. Charter Section 423, which requires voter approval
of certain major amendments of the Newport Beach General Plan, unless state or federal law precludes a
vote of the electorate on the amendment. In the case of Charter Section 423, in general, an major
amendment to the General Plan iis defined ass defined as any proposed amendment of the General Plan
one that significantly increases allowed density or intensity is first considered and/ or approved by the
City Council subsequent to December 15, 2000 and that by increasingincreases the number ofover 100
peak hour trips (traffic), or over 40,000 square feet of, floor area (intensity), or over 100 dwelling units
(density) when compared to the General Plan prior to approval. These thresholds are calculated, as the
sum a result of the amendment itself andor eighty percent (80%) of the increases resulting from other
amendments affecting the same neighborhood and that, which were adopted within the preceding ten
(10) years., when compared to the General Plan prior to approval.
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Therefore, an amendment shall not take effect unless it has been submitted to the voters and approved
by a majority of those voting on it. When the electorate approved Measure S, Charter Section 423 the
electorate encourageds the City Council to adopt implementing guidelines that are consistent with theits
purpose and intent of Measure S; however, the Guidelines for Implementing Charter Section 423 do not
provide guidance as to when a state or federal law precludes a vote on a major amendment of the General
Plan. In the case of Charter Section 423, an amendment to the General Plan is defined as any proposed
amendment of the General Plan that is first considered and/ or approved by the City Council subsequent
to December 15, 2000 and that increases the number of peak hour trips (traffic), floor area (intensity), or
dwelling units (density) when compared to the General Plan prior to approval.
Procedure
The City Council determines if an proposed aamendment requires voter approval pursuant to Charter
Section 423, based on the following conditions:
• The Amendment modifies the allowed use(s) of the property or area that is the subject of the
Amendment such that the proposed use(s) generate(s) more than one hundred (100) morning
or evening peak hour trips than are generated by the allowed use(s) before the Amendment;
or
• The Amendment authorizes an increase in floor area for the property or area that is the
subject of the Amendment that exceeds forty thousand (40,000) square feet when compared
to the General Plan before approval of the Amendment; or
• The Amendment authorizes an increase in the number of dwelling units for the property or
area that is the subject of the Amendment that exceeds one hundred (100) dwelling units
when compared to the General Plan before approval of the Amendment; or
• The increase in morning or evening peak hour trips, floor area or dwelling units resulting from
the Amendment when added to eighty percent (80%) of the increases in morning or evening
peak hour trips, floor area or dwelling units resulting from Prior Amendments, within the
preceding ten (10) years (see definition in Section 2J) exceeds one or more of the voter
approval thresholds in Section 423 as specified in Subsection 1, 2 or 3.
If the City Council determines a General Plan Land Use Element Amendment requires voter approval, after
approving the Amendment, the City Council then adopts a resolution calling an election on the
Amendment. The City Council schedules the election at the next regular municipal election, as specified
by the City Charter. The City Attorney then prepares an impartial analysis of the Amendment, which
contains information about the Amendment, any related project or land use approval, and the
environmental analysis conducted that will help the electorate make an informed decision. In the absence
of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals
relative to City measures, the City Council will adopt a resolution that authorizes the filing of arguments
and rebuttals in accordance with the general procedures specified in the Elections Code.
It is important to understand that Charter Section 423 only applies to General Plan amendments.
Individual housing development projects that do not require a General Plan amendment are already
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accommodated within the General Plan and zoning framework. They would not be subject to Charter
Section 423 and would never require a vote of the electorate.
If a housing development project requires a General Plan amendment, any unit and peak hour traffic
increases added to the project through bonus units awarded by the Density Bonus process are not
counted toward Charter Section 423 thresholds and a determination whether a vote is required.
Ultimately projects that require a vote of the electorate pursuant to Charter Section 423 may require
additional costs and be subject to delays due to the election process that may yield uncertain election
results.
To implement the Housing Element, the City must move forward with adding housing units that would
qualify as a major amendment for purposes of Charter Section 423, which raises the question of whether
a vote under Charter Ssection 423 is precluded by state or federal law. In recent legislation, such as Senate
Bill 1333, the legislature has specifically found that the lack of affordable housing is a matter of statewide
concern and that state housing laws related to land use, planning and zoning apply to charter cities.
Similarly, the court in Anderson v. City of San Jose (2019) 42 Cal.App.5th 683, found that that the lack of
affordable housing is a matter of statewide concern.
To comply with state laws, the City must have a general plan, which serves as the long-range plan for
future physical development in the community. (Government Code § 65000, et seq.) One of the
mandatory elements of a general plan is a housing element, which must be updated by the City every
eight (8) years and identify sites sufficient to meet the City’s share of the Regional Housing Needs
Assessment (RHNA) allocation. (Government Code §§ 65302, 65588, 65863.) In determining the RHNA
allocation, the council of governments does not take into consideration any zoning or other local land use
restrictions, such as Charter Section 423, but is directed by state law to “consider the potential for
increased residential development under alternative zoning ordinances and land use restrictions."
(Government Code § 65584.04(e)(2)(B).) Furthermore, the City has a continuing obligation to always
ensure that adequate sites exist to accommodate lower-income housing development, not just at the
beginning of the eight (8)-year Regional Housing Needs Allocation cycle. (Government Code § 65863.)
In this RHNA cycle, the City has been allocated 4,845 new housing units. To comply with state law, the City
must not only plan for these units, but the City must also take action to establish the appropriate zoning
designations and development standards to allow the private market to develop these units. After
developing a plan for these units, the City must submit the Housing Element to the Department of Housing
and Community Development for them to find that the Housing Element is in compliance with state law.
But having the California Department of Housing and Community Development find the City’s Housing
Element is compliant with state law is only one step of many. The City is then required to implement the
Housing Element. Under Government Code Section 65585 (i)(1)(A), implementation is not optional, and
the California Department of Housing and Community Development is charged with ensuring the City is
implementing the Housing Element and taking action to revoke its finding that the Housing Element
complies with state law if the City fails to implement the Housing Element. In addition to the loss of local
zoning control, permitting authority, and fines of up to $600,000 per month for not having a compliant
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Housing Element, state law provides that the Attorney General may appoint an agent to take all necessary
actions to bring the City into compliance with state law. (Government Code § 65585(l).)
Because providing residential housing opportunity sites to accommodate the City’s RHNA allocation is
mandated by state law and the City is required to implement the Housing Element, a Charter Section 423
vote is precluded, and the City will move forward with implementing the Housing Element without a
Charter Section 423 vote.
The City will implement Charter Section 423 when it amends the Land Use Element of its General Plan to
implement Policy Actions 1A through 1F provided in Section 4 of this Housing Element. The increases in
housing units and the peak hour traffic to accommodate the City’s high RHNA allocation will exceed
Charter Section 423 thresholds requiring a vote of the electorate. However, Charter Section 423 includes
a statement that it shall not apply if State or Federal law precludes a vote of the electorate on the
amendment. As of the adoption of this Housing Element, it is unclear if the State RHNA mandate to
accommodate the City’s RHNA allocation would preclude a vote pursuant to Charter Section 423.
It is the duty of the City Council to place the increases in housing and the traffic generated before the
voters of Newport Beach consistent with Charter Section 423. The vote will be scheduled in accordance
with the California Elections Code and the City Charter after the City Council carefully reviews and
approves the Land Use Element amendment and Zoning Strategies that support Policy Actions 1A through
1G. The City will prepare an Environmental Impact Report (EIR) in accordance with the California
Environmental Quality Act (CEQA) prior to acting on the Land Use Element amendment and Zoning
Strategies.
In 2006, the City adopted its comprehensive General Plan Update adding 1,166 housing units within its
Land Use Element. The update included the housing unit increases to accommodate the City’s share of
the 4th RNHA cycle. In accordance with Charter Section 423, the update was submitted to the voters and
the measure passed. For the 6th cycle Housing Element, like the 2006 vote, the City will initiate an election
and pay for all costs associated with the ballot measure. The discussion within Housing Goal #1 in Section
4 details the milestones involved in the Land Use Element amendment vote process. The City may choose
to submit multiple ballot measures.
If the ballot measure passes, Charter Section 423 would not be an impediment in any way to housing
development projects supported by the Land Use amendment and Zoning implementation strategies
stemming from this Housing Element. The increases in housing units and their related peak hour traffic
would also not count against future General Plan amendment applications thereby reducing the
impediment that Charter Section 423 represents to future housing developments needing a subsequent
General Plan Amendment in the future.
Making any changes to Charter Section 423 is complicated and uncertain. To attempt modifications that
would exempt housing units from potentially requiring a vote is not a viable option. Placing a Charter
amendment before the voters would require City Council action that would be contrary to the will of the
people as expressed through Measure S in 2000 that resulted in Charter Section 423.
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Based upon public comments received during the preparation of this Housing Element, there is no public
support to amend Charter Section 423 to accommodate the housing necessary to satisfy the State RHNA
mandate. The City Council publicly debated the prospects of amending Charter Section 423 through its
review of this Housing Element, and it is universally believed that placing such a Charter amendment
before the voters would be a waste of resources. Additionally, any effort to potentially amend Charter
Section 423 would potentially and unnecessarily delay the implementation of this Housing Element. It
could create voter fatigue reducing the prospects for success of a vote for the required Land Use Element
Amendment to implement this Housing Element pursuant to Charter Section 423.
Short-Term Lodging Ordinance
Short-term lodging refers to the rental and leasing of a dwelling unit to a single household for less than
30 consecutive days. Short-term lodging is predominantly used by tourists to the City and the homeowner
may or may not reside on the property.
The City of Newport Beach adopted Ordinance 2020-15 on July 15, 2020, which set permitting regulations
for short-term lodging throughout Newport Beach. The Ordinance allows short-term lodging in all
residential districts in the City with the approval of a permit and related fees. Ordinance 2020-15 is not
considered a constraint to housing in the City as the intent is to control short-term lodging and collect
Transient Occupancy Tax. The City provides information online for interested homeowners, Frequently
Asked Questions, and permit application processes.
Specific Plans
The purpose of a Specific Plan is to implement the goals and objectives of a city’s General Plan in a more
focused and detailed manner that is area and project specific. The Specific Plan promotes consistency and
an enhanced aesthetic level throughout the project community. Specific Plans contain their own
development standards and requirements that may be more restrictive than those defined for the city as
a whole.
Santa Ana Heights
The Santa Ana Heights Community is located to the north of Newport Beach between East Side Costa
Mesa and the Upper Newport Bay. The area was previously within County of Orange’s permitting
jurisdiction and the redevelopment project area was designated to eliminate blight. The land has since
been annexed into Newport Beach.
The principal objectives of the Santa Ana Heights Specific Plan include:
• Encourage the upgrading of existing residential neighborhoods and business development areas
• Ensure well-planned business park and commercial developments which are adequately buffered
from adjacent residential neighborhoods
• Encourage the consolidation of smaller contiguous lots in the business park area
• Ensure that business park and residential traffic are separated to the maximum extent possible,
while minimizing impact upon existing parcels
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• Ensure adequate provision of public works facilities as development occurs
• Enhance equestrian opportunities with the residential equestrian neighborhood
• Enhance the overall aesthetic character of the community
The Santa Ana Heights Specific Plan identifies design and landscaping guidelines in Section 20.90.030 of
the Newport Beach Zoning Code; the development standards are provided in Table 3-6. Table 3-8 also
identifies the housing types permitted in each zoning district. Zoning district designations within the
project area include the following:
• Open Space and Recreational District: SP-7 (OS/R) – Open Space and Recreational District is
intended to establish the long-term use and viability of the Newport Beach Golf Course.
• Residential Equestrian District: SP-7 (REQ) Residential Equestrian District is intended to provide
for the development and maintenance of a single-unit residential neighborhood in conjunction
with limited equestrian uses. The zoning district is intended to maintain a rural character with an
equestrian theme.
• Residential Kennel District: SP-7 (RK) – Residential Kennel District is intended to provide for the
development of a single-unit residential neighborhood in conjunction with commercial kennel
businesses.
• Residential Single-Family District: SP-7 (RSF) – Residential Single-Family District is intended to
provide for the development of medium density single-unit detached residential neighborhoods.
Permitted uses should complement and be compatible with residential neighborhoods.
• Residential Multiple-Family District: SP-7 (RMF) – Residential Multiple-Family District is intended
to provide for the development of high-density multi-unit residential neighborhoods with a
moderate amount of open space. Permitted uses should complement and be compatible with
residential neighborhoods.
• Horticultural Nursery District: SP-7 (HN) – Horticultural Nursery District is intended to ensure the
long-term use and viability of the horticultural nursery uses located along Orchard Drive in the
western section of Santa Ana Heights.
• General Commercial District: SP-7 (GC) – General Commercial District is intended to provide
regulations for the commercial areas along South Bristol Street and ensure the continuation of
commercial uses which offer a wide range of goods and services to both the surrounding
residential and business communities. This district is intended to promote the upgraded aesthetic
image of the community and reduce conflicts between commercial and residential uses.
• Business Park District: SP-7 (BP) – Business Park District is intended to provide for the
development and maintenance of professional and administrative offices, commercial uses,
specific uses related to product development, and limited light industrial uses. The district shall
protect the adjacent residential uses through regulation of building mass and height, landscape
buffers, and architectural design features.
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• Professional and Administrative Office District: SP-7 (PA) – Professional and Administrative
Office District is intended to provide for the development of moderate intensity professional and
administrative office uses and related uses on sites with large landscaped open spaces and off-
street parking facilities. This district is intended to be located along heavily trafficked streets or
adjacent to commercial or industrial districts. This district may also be used to buffer residential
areas.
• Professional, Administrative, and Commercial Consolidation District: SP-7 (PACC) – Professional,
Administrative, and Commercial Consolidation District is intended to provide for the development
of professional and administrative office uses and commercial uses on lots located between South
Bristol Street and Zenith Avenue in a manner which ensures lot consolidation and vehicular access
to and from South Bristol Street.
• Planned Development Combining District (PD) – Planned Development Combining District is
intended to provide a method for land to be developed using design features which take
advantage of modern site planning techniques to produce an integrated development project
amongst existing and potential development of the surrounding neighborhoods.
Housing for Persons with Disabilities
Both the Federal Fair Housing Act and the California Fair Employment and Housing Act direct local
governments to make reasonable accommodations (that is, modifications or exceptions) to their zoning
laws and other land use regulations when such accommodations may be necessary to afford disabled
persons an equal opportunity to use and enjoy a dwelling.
The Housing Element Update must also include programs that remove constraints or provide reasonable
accommodations for housing designed for persons with disabilities. The analysis of constraints must touch
upon each of three general categories: 1) zoning/land use; 2) permit and processing procedures; and
3) building codes and other factors, including design, location and discrimination, which could limit the
availability of housing for disabled persons.
Reasonable Accommodation
Reasonable accommodation in the land use and zoning context means providing individuals with
disabilities or developers of housing for persons with disabilities, flexibility in the application of land use
and zoning and building regulations, policies, practices and procedures, or even waiving certain
requirements, when it is necessary to eliminate barriers to housing opportunities. For example, it may be
reasonable to accommodate requests from persons with disabilities to waive a setback requirement or
other standard of the Newport Beach Municipal Code to ensure that homes are accessible for the mobility
impaired. Whether a particular modification is reasonable depends on the circumstances.
Section 20.25.070 (Reasonable Accommodation) of the Newport Beach Municipal Code provides a
procedure and sets standards for disabled persons seeking a reasonable accommodation in the provision
of housing and is intended to comply with federal and state fair housing laws. A request
for reasonable accommodation may be made by any person with a disability, their representative, or a
developer or provider of housing for individuals with a disability, and a reasonable accommodation may
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be approved only for the benefit of one or more individuals with a disability. Section 20.52.070 ensures
that reasonable accommodation requests are processed efficiently without imposing costs on the
applicant. The City does not assess a fee for reasonable accommodation requests. Although a public
hearing is required, the matter is heard before a Hearing Officer rather than the Planning Commission,
which helps establish an apolitical and more objective decision-making authority, and results in a more
expedited processing. Once an applicant requests reasonable accommodation via all appropriate forms
and submittals (as outline in Section 20.25.070 of the Newport Beach Municipal Code), the following
actions may be taken by the Hearing Office:
• The Hearing Officer shall issue a written determination to approve, conditionally approve, or deny
a request for reasonable accommodation, and the associated modification or revocation.
• The reasonable accommodation request shall be heard with, and subject to, the notice, review,
approval, call for review, and appeal procedures identified for any other discretionary permit.
• On review the Council may sustain, reverse, or modify the decision of the Hearing Officer or
remand the matter for further consideration, which remand shall include specific issues to be
considered or a direction for a de novo hearing.
The written decision to approve or deny a request for reasonable accommodation must be consistent
with all the applicable Federal and State laws and is be based on consideration of the following findings,
all of which are required for approval:
• The reasonable accommodation request is made by or on the behalf of one or more individuals
with a disability protected under the Fair Housing Laws.
• The reasonable accommodation request is necessary to provide one or more individuals with a
disability an equal opportunity to use and enjoy a dwelling.
• The reasonable accommodation request will not impose an undue financial or administrative
burden on the City as “undue financial or administrative burden” is defined in Fair Housing Laws
and interpretive case law.
• The reasonable accommodation request will not result in a fundamental alteration in the nature
of a City program, as “fundamental alteration” is defined in Fair Housing Laws and interpretive
case law; and
• The reasonable accommodation request will not, under the specific facts of the case, result in a
direct threat to the health or safety of other individuals or substantial physical damage to the
property of others.
In considering a request for reasonable accommodation, the hearing officer may consider a variety of
factors; factors for consideration by the hearing officer are listed (but limited to) in Section 20.52.070 of
the Newport Beach Municipal Code. Reasonable accommodation generates practical opportunity and
increased feasibility for the creation of accessible housing and the Newport Beach’s City process is not
considered a constraint to the development of housing for all persons.
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Definition of Family
A restrictive definition of “family” that limits the number of unrelated persons and differentiates between
related and unrelated individuals living together is inconsistent with the right of privacy established by
the California Constitution. The City’s Municipal Code defines “family” as one or more persons living
together as a single housekeeping unit in a dwelling unit. The Code also defines a single housekeeping unit
as the functional equivalent of a traditional family, whose members are an interactive group of persons
jointly occupying a single dwelling unit, including the joint use of and responsibility for common areas,
and sharing household activities and responsibilities (e.g., meals, chores, household maintenance,
expenses, etc.) and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire
premises of the dwelling unit, under a single written lease with joint use and responsibility for the
premises, and the makeup of the household occupying the unit is determined by the residents of the unit
rather than the landlord or property manager. The City’s definition of family does not limit the number of
unrelated persons living together, however the definition for single housekeeping unit, as it relates to
family, may require an update by the City as it considers a unit the equivalent to a traditional family.
Development Fees
Residential developers are subject to a variety of permitting, development, and impact fees in order to
access services and facilities as allowed by State law. The additional cost to develop, maintain, and
improve housing due to development fees result in increased housing unit cost, and therefore is generally
considered a constraint to housing development. However, fees are necessary to provide planning and
public services in Newport Beach.
The location of projects and housing type result in varying degrees of development fees. The presumed
total cost of development is also contingent on the project meeting city policies and regulations and the
circumstances involved in a particular development project application. Table 3-10 provides the planning
and land use fees assessed by City of Newport Beach and Table 3-11 provides the engineering and
development services fees required for development projects. All fees are available on the City’s website
in compliance with (GC 65940.1(a)(1)(A)).
Estimated total development and impact fees for a typical single-unit residential project, assuming it is
not part of a subdivision and is consistent with existing city policies and regulations can range from
$63,304 to $68,304. Estimated total development and Impact fees for a typical multi-unit residential
project with ten units, assuming it is consistent with existing City policies and regulations range from
$429,600 to $434,600.
These estimates are illustrative in nature and that actual costs are contingent upon unique circumstance
inherent in individual development project applications. Considering the high cost of land in Newport, and
the International Code Council (ICC) estimates for cost of labor and materials, the combined costs of
permits and fees range from approximately 12.5 percent to 13.5 percent of the direct cost of development
for a single-unit residential project and 9.6 percent to 9.3 percent for a multi-unit residential project.
Direct costs do not include, landscaping, connection fees, on/off-site improvements, shell construction or
amenities, therefore the percentage of development and impact fees charged by the City may be smaller
if all direct and indirect costs are included.
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Table 3-10: Planning and Land Use Fees
Type Fee Deposit Hourly Rate
Amateur Radio and Satellite Dish Antenna Permit $1,379
Amendment – General Plan -- $7,500 $266
Amendment – Local Coast Program -- $3,300 $266
Amendment – Planned Community -- $7,500 $266
Amendment – Zoning Code -- $7,500 $266
Appeals to City Council $1,715 -- --
Appeals to Planning Commission $1,715 -- --
Approval in Concept Permit $916 -- --
Certificate of compliance $358 + $12 County $370 -- --
Coastal Development Permit / Parcel Map Bundle $3,380 -- --
Coastal Development Permit Waiver / Initial Review $1,195 -- --
Compliance Letters / Minor Records Research $390 -- --
Comprehensive / Heritage / Innovative Sign Program $1,906 -- --
Condominium Conversion Permit $1,354 -- --
Development Agreement -- $10,000 $266
Development Agreement Annual Review $1,397 -- --
Director / Staff Approval $982 -- --
Extensions of Time (except Abatement Period) $172 -- --
Environmental Documents 110% of Consultant Cost --
Heritage Sign Review -- -- $166
In-Lieu Parking -- -- $150
Limited Term Permit – Less than 90 Days $650 -- --
Limited Term Permit – More than 90 Days $2,235 -- --
Limited Term Permit – Seasonal $309 -- --
Lot Line Adjustment $2,316 -- --
Lot Merger $2,316 -- --
Modification Permit $3,219 -- --
Nonconforming Abatement Period Extension $698 -- --
Operator’s License – Application $974 -- --
Operator’s License – Appeal $946 -- --
Planned Community Development Plan -- $10,000 $266
Planned Development Permit $6,386 -- --
Preliminary Application for Residential Development $776 -- --
Public Noticing Costs $508 -- --
Site Development Review – Major $5,776 -- --
Site Development Review – Minor $3,293 -- --
Subdivision Parcel Map $2,301 -- --
Subdivision Tentative/Vesting Tract Map $5,685 -- --
Temporary Banner Permit ($50 + $1 Recorded
Management Fee) $59 -- --
Transfer of Development Rights $4,490 -- --
Use Permit – Conditional $5,838 -- --
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Type Fee Deposit Hourly Rate
Use Permit – Minor $3,292 -- --
Variance $5,380 -- --
Zoning Plan Check -- -- $208
Sources: City of Newport Beach Planning Division Fee Schedule (Effective 07/01/2020 per Council Resolution 2021-21).
Table 3-11: Engineering and Development Services Fees
Type Fee
Plan Check Hourly Rate $261
Plan Review 87% of Building Permit Fee
Repetitive Plan Review 25% of Building Permit Fee
Energy Compliance Review 0.07% of Construction Cost
Disabled Access Compliance Review 0.1% of Construction Cost
Grading Plan Review by City Staff 87% of Grading Permit Fee
Grading Plan Review of Complex Projects by Consultant 133% of Consultant Fee
Determination of Unreasonable Hardship $357
Electrical Plan Review 87% of Total Permit Fee
Mechanical Plan Review 87% of Total Permit Fee
Plumbing Plan Review 87% of Total Permit Fee
Drainage Plan Review for Alteration to Drainage $199
Water Quality Management Plan Review (Commercial Projects) $275
Water Quality Management Inspections (Commercial Projects) $350
Water Quality Management Plan Review Fee (Residential Projects) $191
Water Quality Management Inspection Check Fee
(Residential Projects) $284
Expedite Plan Review 1.75 X regular plan check fees ($453
minimum)
Plan Check Extension $68
Harbor Construction Plan Review $329
Waste Management Administration Fee $27
Sources: City of Newport Beach Schedule of Rents, Fines, and Fees (Effective 07/01/2021 per City Resolution 2021-21).
Impact Fees
Impact fees are assessed on a case-by-case basis depending on the proposed use, location, and density.
Impact fees ensure adequate maintenance and provision of public facilities and services to the project
and include transportation, school, park and open space, waste management, sewage, and water.
Table 3-12 provides the fees calculated based on land use in Newport Beach.
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Table 3-12: Development Impact fees
Use Fee
Transportation (Fair Share)
Single-Unit Development $2,579/unit
Residential-Medium Density $2,016 /unit
Apartment $1,524/unit
Elderly Residential $938/unit
Mobile Home $1,407/unit
Nursing/ Convalescent Home $633/unit
School Impact Fee
N-MUSD Residential Developer Fee $1.84/sq.ft.(1)
Park Dedication
Park Dedication $30,217/unit
San Joaquin Transportation Corridor Agency (TCA) – Zone A (2)
Single Unit $6,050/unit
Multi-Unit $3,524/unit
San Joaquin Transportation Corridor Agency (TCA) – Zone B (2)
Single Unit $4,689/unit
Multi-Unit $2,735/unit
Sources: City of Newport Beach Schedule of Rents, Fines, and Fees (Effective 07/01/2021 per Council Resolution 2021-21).
Newport-Mesa Unified School District Developer Fees
Notes:
(1) Addition under 500 sq.ft. may be exempt
(2) Effective July 1, 2020 – June 30, 2021. The fee rate schedule increases by 2.667% each year on July 1st.
On-/Off-Site Improvements
Site improvements in the City consist of those typically associated with development for on-site
improvements (street frontage improvements, curbs, gutters, sewer/water, and sidewalks), and off-site
improvements caused by project impacts (drainage, parks, traffic, schools, and sewer/water). Thus, these
are costs that may influence the sale or rental price of housing. Because residential development cannot
take place without the addition of adequate infrastructure, site improvement requirements are
considered a regular component of development of housing within the City. Majority of cost associated
with on and off-site improvements is undertaken by the City and recovered in the City’s development and
impact fees.
Building Codes and Enforcement
The City’s construction codes are based upon the California Code of Regulations, Title 24 that includes the
California Administrative Code, Building Code, Residential Code, Electrical Code, Mechanical Code,
Plumbing Code, Energy Code, Historical Building Code, Fire Code, Existing Building Code, Green Building
Standards Code, and California Referenced Standards Code. They are the minimum necessary to protect
the public health, safety and welfare of the City’s residents. In compliance with State law, the California
Building Standards Code is revised and updated every three (3) years. The newest edition of the California
Building Standards Code is the 2019 edition with an effective date of January 1, 2020. The City strives to
provide reasonable accommodation for persons with disabilities in the enforcement of building codes and
the issuance of building permits. The City has not made any building code or code enforcement
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amendments in the past 8 years which directly affect or potentially hider the development of housing in
Newport Beach.
Code enforcement is conducted by the City and is based on systematic enforcement in areas of concern
and on a complaint basis throughout the city. The Code Enforcement Division works with property owners
and renters to assist in meeting state health and safety codes. The Code Compliance Department
investigates complaints regarding violations of the Newport Beach Municipal Codes. The following are
frequent enforcement items:
• Hazardous property conditions
• Overgrown vegetation
• Housing Code violations (broken windows, peeling paint)
• Inoperable and abandoned vehicles on private property
• Signs, including signs in public right-of-way and signs without permits
• Solid Waste (early set-out of containers, inadequate containers, illegal dumping)
• Water quality and conservation
• Zoning requirements, (i.e., illegal dwelling units and use requirements)
Local Processing and Permit Procedures
The processing time needed to obtain development permits and required approvals is commonly cited by
the development community as a prime contributor to the high cost of housing. Depending on the
magnitude and complexity of the development proposal, the time that elapses from application submittal
to project approval may vary considerably. Factors that can affect the length of development review on a
proposed project include the completeness of the development application and the responsiveness of
developers to staff comments and requests for information. Approval times are substantially lengthened
for projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning
or general plan amendments, encounter community opposition, or are appealed to or require approval
from the Coastal Commission. The City strives for a streamlined building permit plan check process,
especially for single- and multi-family residential development. Internal targets for plan check review
times for building permits are 10 business days for the first submittal, 5 business days for the second and
subsequent submittals, if needed. It is worth noting that the timing of the overall process depends more
heavily on the responsiveness of the design team after the first round of review.
For projects requiring a discretionary action, such as a coastal development permit, site development
review, or parcel map, approximately three additional months should be added to processing timelines.
Although rare, if an EIR, Zone Change, General Plan Amendment, or Local Coastal Program Amendment is
required, then approximately eight months should be added to processing timelines.
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Applicants for all permits or reviews are recommended to request a pre-application conference with the
respective department to achieve the following:
• Inform the applicant of City requirements as they apply to the proposed project.
• Review the City’s review process, possible project alternatives or revisions; and
• Identify information and materials the City will require with the application, and any necessary
technical studies and information relating to the environmental review of the project
All applicable fees related to permits and reviews are established by the City Council and can be found in
the City’s Master fee schedule (Tables 3-10 and 3-11). All applications are first reviewed for completeness,
discretionary applications require the respective department to provides a written report and
recommendation, applications are then subject to review by the appropriate authority. Table 3-13 below
identifies the review authority responsible for reviewing and making decisions on each type of application
required by the Newport Beach Zoning Code. Permit review procedures for residential developments in
the City of Newport Beach are outlined below.
Table 3-13: Review Authority for Permit Application
Type of Action Applicable Code
Chapter/Section
Role of Review Authority1
Director Zoning
Administrator
Hearing
Officer Commission Council2
Administrative and Legislative
Interpretations Section 20.12.020 Determination3 -- -- Appeal Appeal
Planned
Communities Chapter 20.56 -- -- -- Recommend Decision
Specific Plans Chapter 20.58 -- -- -- Recommend Decision
Zoning Code
Amendments Chapter 20.66 -- -- -- Recommend Decision
Zoning Map
Amendments Chapter 20.66 -- -- -- Recommend Decision
Permits and Approvals
Conditional Use
Permits Section 20.52.020 -- -- -- Decision Appeal
Conditional Use
Permits—
Residential Zones
HO
Section 20.52.030 -- -- Decision -- Appeal
Minor Use Permits Section 20.52.020 -- Decision 3 -- Appeal Appeal
Modification
Permits Section 20.52.050 -- Decision3 -- Appeal Appeal
Planned
Development
Permits
Section 20.52.060 -- -- -- Decision Appeal
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Type of Action Applicable Code
Chapter/Section
Role of Review Authority1
Director Zoning
Administrator
Hearing
Officer Commission Council2
Reasonable
Accommodations Section 20.52.070 -- -- Decision -- Appeal
Site Development
Reviews Section 20.52.080 -- Decision3 -- Decision Appeal
Variances Section 20.52.090 -- -- -- Decision Appeal
Zoning Clearances Section 20.52.100 Determination3 -- -- Appeal Appeal
Notes:
(1) “Recommend” means that the Commission makes a recommendation to the Council; “Determination” and “Decision” mean
that the review authority makes the final determination or decision on the matter; “Appeal” means that the review authority
may consider and decide upon appeals to the decision of a previous decision-making body, in compliance with
Chapter 20.64 (Appeals).
(2) The Council is the final review authority for all applications in the City.
(3) The Director or Zoning Administrator may defer action and refer the request to the Commission for consideration and final
action.
Source: City of Newport Beach Municipal Code, Chapter 20.50 Permit Application Filing and Processing
Time Between Receiving Approval and Submitting Building Permit
Application
The amount of time between when a project receives approval and submittal of an application for building
permits varies, depending upon a variety of factors and is controlled by a project applicant. While the City
makes every effort to streamline permitting processes, this element of time is outside the control of the
City. Factors for variability of time may include the size of a project, type of construction, funding and
financing considerations, lease or contract considerations, litigation, seasonal factors, engineering, design
and architectural considerations. The timeline can be a matter of a few days to a few weeks, if the project
is small and uncomplicated (e.g. ADU/JADU) to months for large-scale, modern construction. The City of
Newport Beach views the longer time period is common and necessary for larger, more complicated
projects and does not see this in any way as hindering the construction of housing or introducing
unnecessary delays. In most all cases, the timeline from receiving approval to submitting for building
permits is solely dictated by the project applicant and not constrained by any requirements placed upon
the applicant by the City.
Conditional Use Permits in Residential Zoning
The purpose and intent of conditional use permits in residential zoning districts, as identified by the
Newport Beach Municipal Code Section 20.52.030, is to promote the public health, safety, and welfare
and to implement the goals and policies of the General Plan by ensuring that conditional uses in residential
neighborhoods do not change the character of the neighborhoods as primarily residential communities.
As well as, to protect and implement the recovery and residential integration of the disabled, including
those receiving treatment and counseling in connection with dependency recovery. In doing so, the City
seeks to avoid the over-concentration of residential care facilities so that these facilities are reasonably
dispersed throughout the community and are not congregated or over-concentrated in any particular area
to institutionalize that area.
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A conditional use permit is required to authorize uses not previously permitted as allowable in the
applicable residential zoning district or in an area where residential uses are provided for in Planned
Community Districts or specific plan districts. An application for a conditional use permit, meeting all the
requirements outline in Section 20.52.030(D), is then reviewed by the Director to ensure that the proposal
complies with all applicable requirements. Additionally, all conditional use permit applications require a
public hearing and a public notice of the hearing. The review authority identified in Table 3-13 above is
designated to approve, conditionally approve, or deny applications for conditional use permits in
residential zoning districts.
Newport Beach Municipal Code Section 20.52.030 (H)(4) establishes the provisions for granting a
conditional use permit in residential zones, including for residential care facilities, and states the
following:
4. The use will be compatible with the character of the surrounding neighborhood, and the addition or
continued maintenance of the use will not contribute to changing the residential character of the
neighborhood (e.g., creating an over-concentration of residential care or bed and breakfast uses in the
vicinity of the proposed use). In making this finding or sustaining the finding, the Hearing Officer and/or
Council shall consider, as appropriate, all of the following factors:
a. The proximity of the use location to parks, schools, other conditionally permitted uses of
the same or similar type, outlets for alcoholic beverages, and any other uses that could be
affected by or affect the operation of the subject use;
b. The existence of substandard physical characteristics of the area in which the use is located
(e.g., limited available parking, lot widths, narrow streets, setbacks, short blocks), and other
substandard characteristics that are pervasive in certain areas of the City of Newport Beach,
including portions of Balboa Island, Balboa Peninsula, Corona Del Mar, Lido Isle, Newport
Heights, and West Newport, which portions were depicted on a map referred to as the
Nonstandard Subdivision Area presented to the Commission on September 20, 2007, and on
file with the Director; and
c. In the case of residential care uses, whether, in light of the factors applied in subsections
(H)(4)(a) and (b) of this section, it would be appropriate to apply the American Planning
Association standard of allowing only one or two residential care uses in each block.
i. Median block lengths in different areas of Newport Beach widely range from three
hundred (300) feet in the nonstandard subdivision areas to as much as one thousand four
hundred twenty-two (1,422) feet in standard subdivision areas.
ii. The average calculable block length in much of the standard subdivision areas is
seven hundred eleven (711) feet and the calculable median block length is six hundred
seventeen (617) feet.
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iii. The review authority shall apply the American Planning Association standard in all
areas of Newport Beach in a manner that eliminates the differences in block lengths.
iv. In making this determination, the review authority shall be guided by average or
median block lengths in standard subdivisions of the City.
v. The review authority shall retain the discretion to apply any degree of separation of
uses that the Hearing Officer deems appropriate in any given case.
vi. A copy of the American Planning Association standard is on file with the Director.
The above provisions pertain to the physical aspects of the site, or the utilization of the sites and not the
user or the resident type. Additionally, the provisions generally define “character” as the physical feature
of a site and its environs. Provisions (a) through (c) above, are objective standards that apply to the site
conditions and are generally not considered subjective in nature. Because these standards do not directly
or tacitly deny a residential use based on subjective criteria and “community character” is used to define
the provisions in 20.52.030 (H)(4)(a) through (c), the City contends that these provisions are reasonable
criteria to include in a conditional use permit approval and, therefore, does not consider these provisions
a constraint.
To promote certainty in meeting the scope of the conditional use permit review, provide upfront
feedback, and to expedite processing, the City offers, free-of-charge, Development Review Committee
(DRC) meetings with prospective applicants. DRC meetings are informal meetings with representatives of
the various City departments or divisions (i.e., Planning, Building, Public Works, Fire, etc.) that are held
weekly and are scheduled with only one week lead time. A prospective applicant receives detailed
feedback on their proposal so they can address issues early to provide a more complete submission
thereby avoiding unnecessary delays.
As described in more detail in the Reasonable Accommodation Section of the Housing Element, in the
event that conditional use permit process proves to be a barrier or constraint to the development of
housing for disabled, Section 20.52.070 of the Zoning Code provides procedures for obtaining reasonable
accommodation from the permitting requirements. With a reasonable accommodation, a group of
disabled individuals can reside in any district zoned for residential use without the need for a conditional
use permit, but rather an alternative, no-cost, and objective reasonable accommodation process.
While not explicitly required by State law, the conditional use permit requirement for residential care
facilities for 7 or more persons could be considered a fair housing issue and a potential constraint due to
the discretionary nature of the process. The Development Review Committee process helps mitigate
approval uncertainty and the reasonable accommodation process provides an alternative and more
objective review process for disabled individuals, Policy Action 3P has been included in the Section 4 Policy
Program requiring that development standards for larger residential care facilities in the Municipal Code
will be evaluated to ensure State fair housing laws are met for residential care facilities of 7 or more
persons, and amended to promote objectivity and ensure greater approval certainty.
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Site Development Reviews
The City of Newport Beach identifies the purpose of site development reviews as providing a process for
the review of specific development projects in order to:
• Ensure consistency with General Plan policies related to the preservation of established
community character, and expectations for high quality development.
• Respect the physical and environmental characteristics of the site.
• Ensure safe and convenient access and circulation for pedestrians and vehicles.
• Allow for and encourage individual identity for specific uses and structures.
• Encourage the maintenance of a distinct neighborhood and/or community identity.
• Minimize or eliminate negative or undesirable visual impacts.
• Ensure protection of significant views from public right(s)-of-way in compliance with Section
20.30.100 (Public View Protection); and
• Allow for different levels of review depending on the significance of the development project.
Site development review is required before the issuance of a building or grading permit for any new
structure. Structures that do not require a site development review (but instead require a zoning
clearance) include, accessory structures, fences and/or walls, reconstruction or exterior remodeling of
existing structures, one to four dwelling units, without a tentative or parcel map, and non-residential up
to a maximum of 9,999 square feet of gross floor area. Site development review and approval is
determined by either the Zoning Administrator or the Planning Commission. The City provides the DRC
review process for site development reviews as described in the previous section. Table 3-14 below
identifies the applicable review authority for different development types.
Table 3-14: Review Authority and Action for Residential Construction
Type of Construction Activity
Role of Review Authority (1) (2)
Zoning Administrator
(Minor Review)
Planning Commission
(Major Review)
Residential construction: 5 to 20 dwelling units, without a
tentative or parcel map. Decision Appeal
Residential construction: 5 or more dwelling units with a tentative
or parcel map and 21 or more dwelling units, without a tentative or
parcel map.
-- Decision
Residential construction: On a bluff, an increase in the boundaries
of a development area in compliance with the findings in
Section 20.28.040 (Bluff (B) Overlay District).
-- Decision
Mixed-use projects: 1 to 4 dwelling units and nonresidential
construction of up to a maximum of 9,999 square feet of gross
floor area.
Decision Appeal
Mixed-use projects: 5 or more dwelling units and/or nonresidential
construction of 10,000 square feet or more of gross floor area. -- Decision
Source: City of Newport Beach Municipal Code
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A site development review is initiated when the Department receives a complete application package
including the required information and materials specified by the Director and any additional information
required by the applicable review authority in order to conduct a thorough review of the project. Upon
receipt of a complete application the applicable review authority shall conduct a review of the location,
design, site plan configuration, and effect of the proposed project on adjacent properties by comparing
the project plans to established development standards and adopted criteria and policies applicable to
the use or structure. All site development reviews require a public hearing and a notice of the hearing.
The review authority may approve or conditionally approve a site development review application. The
following criteria shall be considered during the review of a site development review application:
• Compliance with this section, the General Plan, this Zoning Code, any applicable specific plan, and
other applicable criteria and policies related to the use or structure.
• The efficient arrangement of structures on the site and the harmonious relationship of the
structures to one another and to other adjacent developments; and whether the relationship is
based on standards of good design.
• The compatibility in terms of bulk, scale, and aesthetic treatment of structures on the site and
adjacent developments and public areas.
• The adequacy, efficiency, and safety of pedestrian and vehicular access, including drive aisles,
driveways, and parking and loading spaces.
• The adequacy and efficiency of landscaping and open space areas and the use of water efficient
plant and irrigation materials; and
• The protection of significant views from public right(s)-of-way and compliance with Section
20.30.100 (Public View Protection).
Section 4: Housing Plan establishes Policy Action 3A to establish objective design standards for the City.
Specifically, Policy Action 3A states – The City of Newport Beach will review existing entitlement processes
for housing development and will eliminate discretionary review for all housing development proposals
that include a minimum affordable housing component. The City will also review the appropriateness of
its current development standards to ensure that it reasonably accommodates the type and density of
housing it is intended to support. The City will also amend existing development standards to replace or
remove all subjective standards for projects with a minimum affordable housing component with
objective standards that do not impede the type and density of housing it is intended to allow. The
objective development standards are to be adopted within 24 months of the Housing Element adoption.
Zoning Clearances
A Zoning clearance is the procedure used by the City to verify that a proposed use or structure complies
with the activities allowed in the applicable zoning district and the development standards and other
provisions of the City’s Zoning Code. A zoning clearance is required as a prerequisite to establishing a
structure or use for the following:
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• Before the initiation or commencement of any use of land not requiring the construction of a
structure.
• Whenever a use is proposed to be changed, whether or not the new use involves a new lessee,
operator, or owner, a zoning clearance shall be obtained.
• Before the City issues a new or modified building permit, grading permit, or other construction-
related permit required for the alteration, construction, modification, moving, or reconstruction
of any structure.
The Department may issue the zoning clearance after first determining that the request complies with all
Zoning Code provisions and other adopted criteria and policies applicable to the proposed use or
structure. An approval may be in the form of a stamp, signature, or other official notation on approved
plans, a letter to the applicant, or other certification, at the discretion of the Director. Review authority
for Zoning Clearances is stated in Table 3-13 above.
Senate Bill 35
California Senate Bill 35 (SB 35), codified as Government Code Section 65913.41, was signed on September
29, 2017 and became effective January 1, 2018. SB 35 will automatically sunset on January 1, 2026 (Section
65913.4(m)). The intent of SB 35 is to expedite and facilitate construction of affordable housing. SB 35
applies to cities and counties that have not made sufficient progress toward meeting their affordable
housing goals for above moderate- and lower-income levels as mandated by the State. In an effort to
meet the affordable housing goals, SB 35 requires cities and counties to streamline the review and
approval of certain qualifying affordable housing projects through a ministerial process.
When a jurisdiction has made insufficient progress toward their Above Moderate-income RHNA and/or
has not submitted the latest Housing Element Annual Progress Report (2018) it is subject to the
streamlined ministerial approval process (SB 35 (Chapter 366, Statutes of 2017) streamlining) for
proposed developments with at least 50 percent affordability. All projects, which propose at least
50 percent affordable units within Newport Beach are eligible for ministerial approval under SB 35 as
determined by the SB 35 Statewide Determination Summary. To be eligible for SB 35 approval, sites must
meet a long list of criteria, including:
• A multifamily housing development (at least two residential units) in an urbanized area;
• Located where 75% of the perimeter of the site is developed;
• Zoned or designated by the general plan for residential or mixed use residential;
• In a location where the locality’s share of regional housing needs has not been satisfied by building
permits previously issued;
• One that includes affordable housing in accordance with SB 35 requirements;
• Consistent with the local government’s objective zoning and design review standards; and
• Willing to pay construction workers the state-determined “prevailing wage.”
A project does not qualify for SB 35 streamline processing if in:
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• A coastal zone, conservation lands, or habitat for protected species;
• Prime farmland or farmland of statewide importance;
• Wetlands or lands under conservation easement;
• A very high fire hazard severity zone;
• Hazardous waste site;
• Earthquake fault zone;
• Flood plain or floodway;
• A site with existing multi-family housing that has been occupied by tenants in the last ten years
or is subject to rent control; or
• A site with existing affordable housing.1
Infrastructure Constraints
Another factor that could constrain new residential construction is the requirement and cost to provide
adequate infrastructure (major and local streets; water and sewer lines; and street lighting) needed to
serve new residential development. In most cases, where new infrastructure is required, it is funded by
the developer and then dedicated to the City, which is then responsible for its maintenance. The cost of
these facilities is generally borne by developers, which increases the cost of new construction, with much
of that increased cost often “passed on” in as part of home rental or sales rates.
The Utilities Department oversees, manages, and maintains the City’s:
• Water
• Wastewater (sewer)
• Storm drain and tidal valve system
• Street sweeping
• Streetlights
• Oil and gas operations
The City has water, sewer and dry utilities that exist or are planned to accommodate residential
development in the community. As the City is essentially built out, the infrastructure in place is designed
and located to accommodate potential for additional housing identified for the 6th Cycle Housing
Element.
Dry Utilities
Dry utilities are the installation of the electric, telephone, TV, internet, and gas in a community. Of the
utilities, the City must plan to provide the necessary resources, such as electric and gas, to increased
households from 2021-2029, as projected by the RHNA allocation.
Electricity
Southern California Edison (SCE) is the electrical service provider for the City of Newport Beach. SCE is
regulated by the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory
1 JD Supra Knowledge Center, “How California’s SB 35 Can Be Used to Streamline Real Estate Development Projects”, Accessed March 26, 2021.
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Commission (FERC) and includes 50,000 square miles of SCE service area across Central, Coastal, and
Southern California. The SCE reliability report identifies the reliability of electricity services to the City and
identifies any dependability issues that exist in the City. There are 52 circuits that serve the City of
Newport Beach, in total the 52 circuits serve 77,199 customers. SCE measure reliability by three
categories:
• System Average Interruption Duration Index (SAIDI) – total minutes every SCE customer was
without power due to sustained power outage (outage > 5 minutes) divided by total number of
customers
• System Average Interruption Frequency Duration Index (SAIFI) – Number of sustained customer
outages experienced by all SCE customers divided by total number of customers
• Customer Average Interruption Duration Index (MAIFI) – System average interruption duration
index divided by system average interruption frequency index
Overall, the City of Newport Beach experience relatively low interruptions compared to the overall service
provided to all SCE customers, displayed in Figure 3-1.
Figure 3-1: Reliability History of Circuits Serving Newport Beach (No Exclusions)
Source: Southern California Edison, Reliability Reports, Newport Beach 2020
SCE will continue to provide adequate services to the City of Newport Beach including increased
household growth as projected by the City’s RHNA allocation.
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Natural Gas
Southern California Gas Company provides natural gas services to the City of Newport Beach. SoCal Gas
is a gas-only utility and, in addition to serving the residential, commercial, and industrial markets, provides
gas for enhanced oil recovery (EOR) and EG customers in Southern California. The SoCal Gas 2020 utility
report projects total gas demand to decline at an annual rate of 1 percent from 2020-2035. From
2020-2035, residential demand is expected to decline from 230 Bcf to 198 Bcf. The decline is
approximately 1 percent per year, on average. The decline is due to declining use per meter—primarily
driven by very aggressive energy efficiency goals and associated programs— offsetting new meter
growth.2
SoCalGas engages in several energy efficiency and conservation programs designed to help customers
identify and implement ways to benefit environmentally and financially from energy efficiency
investments. Programs administered by SoCalGas include services that help customers evaluate their
energy efficiency options and adopt recommended solutions, as well as simple equipment-retrofit
improvements, such as rebates for new hot water heaters. Additionally, the City of Newport Beach
employs programs for energy and utility conservation, outline below in Section 3: Housing Resources,
Opportunities for Energy Conservation.
Water Supply
The City of Newport Beach Utilities Department currently serves a population of over 86,000 within a
service area of approximately fifty square miles. The Department is responsible for providing a safe and
reliable source of water to approximately 26,200 active connections and delivering approximately
13,500-acre feet (AF) of water per year on average.3 The City’s distribution system consists of
approximately 300 miles of distribution pipelines and is divided into five main pressure zones: Zone 1
through Zone 5 with 16 minor zones. Zones 1 and 2 are the largest and cover most of the system demands.
Zones 3, 4 and 5 are smaller pumped zones. The system infrastructure consists of four wells, three storage
reservoirs, five pump stations and 43 pressure reducing stations (PRS) that manage pressure across the
system.4
The City of Newport Beach water division is separated into four sections: water maintenance and repair,
water production, water quality, and water system services, each department’s duties are outlined below.
Together the division is responsible for providing a safe and reliable source of water.
Newport Beach Water Source
The City receives its water from several sources, local groundwater from the Lower Santa Ana River
Groundwater Basin, imported water purchased from the Municipal Water District of Orange County
(MWDOC), and recycled water purchased from Orange County Water District (OCWD). Most of the City’s
water supply is groundwater, pumped from four wells within the City of Fountain Valley. Imported water
is treated at the Diemer Filtration Plant operated by the Metropolitan Water District of Southern California
2 SoCal Gas 2020 California Gas report, Prepared in Compliance with California Public Utilities Commission Decision D .95-01-039
3 City of Newport Beach, Water rate Study, 2019
4 City of Newport Beach, Water Master Plan, 2019
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(Metropolitan). The City is not capable of treating water to produce reclaimed water but purchases water
from OCWD through the Green Acres Project. 5
Water Maintenance and Repair
Water Maintenance & Repair is responsible for the maintenance and operation of the City's water mains
and valves that are located underground.
Water Production
Water Production operates, maintains, and disinfects the City of Newport Beach's water supply. The
division operates two well sites which produce groundwater from the Orange County Basin as well as
three water reservoirs to receive, store and distribute the City's water. Other water facilities that assist in
the distribution and treatment process include: five water pump stations, five Metropolitan Water District
interconnections, and 42 water pressure regulating stations. Water Production also manages SCADA
(Supervisory Control and Data Acquisition) which monitors and controls the pumps in the City's water
wastewater and gas systems.
Big Canyon Reservoirs
Located at 3300 Pacific View Drive in Corona Del Mar. The Big Canyon Reservoir is the largest City owned
reservoir with a capacity of 600-acre foot or 195 million gallons. Built in 1958 this reservoir was the
primary water supply for Newport for many years. Although the reservoir does have the ability to supply
water to the entire service area the reservoir is primarily used as a storage reservoir and supply to the
City’s higher-pressure zones.
Spyglass Hill Reservoir
Located under the Spyglass Reservoir park at the end of Muir Beach Circle in Spyglass is the 1.5-million-
gallon concrete reservoir. Built in the 1970s to supply the surrounding community this 101-foot diameter
and 27-foot-deep reservoir is under the playground park. Large concrete support columns and thick
concrete roof and walls support this reservoir.
16th Street Reservoir
Located at the Utilities Yard at 949 West 16th Street in Newport Beach the newest of our reservoirs is a
3-million-gallon underground concrete reservoir. Built in 1996 as part of the City’s ground water project,
this reservoir receives well water from our four City owned wells in Fountain Valley. This reservoir supplies
water to the 16th Street pump station that can pump up to 12,000 gallons per minute into our distribution
system. Excess water not used in the system is stored in the Big Canyon Reservoir in Corona Del Mar.
Water Quality
The City of Newport Beach Utilities Department is responsible for providing residents with a reliable, safe,
clean, potable, and domestic water supply. Newport Beach’s drinking water is safe for drinking. It meets
or exceeds all Federal and California water quality standards, which are the most stringent standards of
any state in the nation. The City’s staff continuously monitors the City’s water supply and conducts more
5 City of Newport Beach, Urban Water Management Plan (2015)
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than 1,500 tests each year on potable water drawn from different sampling points along our distribution
system.
Water System Services
Water System Services assists City of Newport Beach customers with any questions regarding water
quality, water pressure, consumption usage, any concern with water meters, leak detection, utilities
inspections and underground utility locating. The City’s Water Systems Services webpage provides tips
and information for proper water systems care for property owners as well as additional resources.
Wastewater
Wastewater is responsible for the collection of residential and commercial wastewater. This Division has
three sub-sections: Pump Station Operation, Cleaning Operation and Construction Operation. These three
sub-sections provide service relating to pump station repair and maintenance, sewer main, lateral and
manhole cleaning, sewer blockage and odor, and sewer main and lateral breaks and repairs.
The City’s Wastewater department is responsible for 203 miles of sewer pipe, 120 miles of sewer laterals,
approximately 5,000 manholes, 21 pump stations, and five miles of force mains. The City’s 2019 Sewer
System Management Plan states the department’s main goals to include the following:
• Maintain uninterrupted sewage flow without health hazard, effluent leakage, or water infiltration
and inflow.
• Operate a sanitary sewer system that meets all regulatory requirements.
• Avoid sanitary sewer overflows and respond to sanitary sewer overflows quickly and mitigate any
impact of the overflow.
• Maintain standards and specifications for the installation of new wastewater systems.
• Verify the wastewater collection system has adequate capacity to convey sewage during peak
flows.
• Provide training for Wastewater Collection staff.
• Maintain the Fats, Oil, and Grease program (FOG program) to limit fats, oils, grease, and other
debris that may cause blockages in the wastewater collection system.
• Identify and prioritize structural deficiencies and implement short-term and long-term
maintenance and rehabilitation actions to address each deficiency.
• Meet all applicable regulatory notification and reporting requirements.
• Provide excellent customer service through efficient system operation and effective
communication strategies.
Sewer
The Orange County Sanitation District (OCSD)provides sanitation services to the City of Newport Beach.
In 2013, the sanitation district began a construction program to rehabilitate the OCSD’s regional sewers
in the City. The program ran through 2018 and consisted of five construction projects, including:
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• Dover Drive Trunk Sewer Relief (5-63): The Dover Drive Trunk sewer runs between Irvine Blvd.
and Coast Highway and is in poor condition. The existing sewer pipeline also does not have
efficient hydraulic capacity to handle the wastewater flow and must therefore be replaced with a
larger pipeline. OCSD will also relocate a city waterline to reduce the level of impact for the
community by eliminating the need for a secondary project in the area.
• Balboa Trunk Sewer Rehabilitation (5-47): This project will rehabilitate the existing Balboa Trunk
sewer along Newport Blvd. and Balboa Blvd. between A Street and Finley Ave. (See map: between
A Street Pump Station and Lido Pump Station.) The project includes installation of a new
protective lining in approximately 12,600 feet of sewer pipeline.
• Newport Force Main Rehabilitation (5-60): The Newport Force Main is a critical component of
our sewer system and needs to be rehabilitated. It carries the wastewater flow from various pump
stations to our treatment plant in Huntington Beach. The pipelines are located on Coast Highway
stretching past Dover Dr. to the Bitter Point Pump Station, approximately 1/4 mile north of
Superior Ave., which is a heavily traveled thoroughfare. There are two sewer lines, one on the
north side of Coast Highway and one on the south side which make the rehabilitation more
complex.
• District 6 Trunk Sewer Relief (6-17): The District 6 Trunk sewer runs from Pomona Ave. in the City
of Costa Mesa to Newport Blvd. near Coast Highway in the City of Newport Beach. This project
will increase the capacity of the existing sewer pipeline to reduce the potential for sewer spills
and to properly handle flows.
• Southwest Costa Mesa Trunk (6-19): In an effort to improve efficiency in our service area, this
project is looking into the design and construction of a new gravity trunk sewer. This project may
lead to the abandonment of eight Costa Mesa and Newport Beach pump stations to provide more
reliable service to the community
The infrastructure improvements initiated by OCSD from 2013 to 2018 increased overall capacity and
efficiency in the Newport Beach sewer system. The City can accommodate the increase in households as
projected by the City’s RHNA allocation.
Water Demand
In fiscal year 2014-15, the City’s total water demand was approximately 16,033 acre-feet. The City’s
potable demand was met through 11,200 acre-feet of groundwater and 4,338 acre-feet of imported
water; the remaining non-potable demand was met through recycled water. The City is projecting over
five percent increase in total potable and non-potable demand in the next 25 years accompanied by a
projected 13 percent population growth.6
The 2015 UWMP found that Metropolitan is able to meet full service demands of its member agencies
with existing supplies out to 2040 during a normal, single-dry, and multiple-dry year scenario. Additionally,
the 2019 Water Master Plan found that though population continues to increase over the past ten years,
total water demand has decreased. The 10-year average annual demand for 2007-2016 (15,991 AF) is
6 City of Newport Beach, Urban Water Management Plan (2015)
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14 percent less than the 1986-1996 average annual demand (18,626 AF). The City’s water infrastructure
and service provider is capable of meeting the water demands of its customers under the same
hydrological conditions out to 2040, this includes all household growth estimated by the City’s RHNA
allocation.
Fire and Emergency Services
The City of Newport Beach’s Fire Department aims to Protect life, property, and the environment with
innovative professionalism and organizational effectiveness using highly trained professionals committed
to unparalleled service excellence. The department has 144 full-time employees and over 200
part-time/seasonal employees provide 24-hour protection and response to the community's residents,
businesses, and visitors.
The department’s primary goals are identified as follows:
• Identify and reduce fire and environmental hazards that may threaten life and property.
• Provide a safe, effective, and expeditious response to requests for assistance.
• Develop an adequately trained workforce to effectively perform their duties.
• Participate in the community development planning process to improve fire and life safety.
• Encourage department personnel to assume leadership roles in the organization.
• Plan for response to natural and man-made disasters that affect the community.
• Educate and train employees and the community to assist them in maintaining a safe
environment.
The department’s different divisions and respective duties are outlined below.
Fire Operations Division
The Fire Operations Division is the largest of four divisions within the Newport Beach Fire Department.
The primary responsibilities of its personnel are life safety, incident stabilization, and the preservation of
property and the environment. The Newport Beach Fire Department operates as an "all risk" emergency
responsible organization responding to the following:
• Fires
• Pre-hospital Medical Emergencies
• Technical Rescues
• Traffic Accidents
• Vehicle Extrications
• Major Flooding
• Beach Rescues
• High Rise Incidents
• Wildland Fires
• Disaster Operations
• Hazardous Materials Incidents
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The Fire Department staffs eight fire stations 24/7. The stations are strategically located throughout the
city to provide the quickest and most effective response to the area served, with an average response
time of five minutes. Considering the department’s expansive and well-connected nature, as well as the
compactness of the City of Newport, additional housing or new developments would not pose a burden
on the existing Fire Department’s fire operations. Therefore, fire operations are not considered a
constraint to the development of housing for all income levels.
The City requires Development Agreements for certain development types within the Airport area to
ensure adequate safety services and ambulance units. Development Agreements include additional fees
for safety service operations in the airport area due to current lack of ambulance units. The imposition of
additional fees may pose a constraint to the development of housing, and particularly affordable housing.
This may result in greater development fees which may subsequently influence the final rental cost of
units or home value.
Emergency Medical Services
The goal of the Emergency Medical Services (EMS) Division is to deliver the highest quality of medical care
to members of the community, regardless of their ability to pay. In total, the City has eight fire stations
that are strategically located to provide the best services the community. Each day there are eight fire
engines, two fire trucks and the three paramedic ambulances in service. The average response time is four
minutes and 22 seconds. The system’s design accounts for fewer paramedic ambulances and expects a
nearby fire engine or truck company to arrive on scene first to initiate basic medical care, which at times
can include lifesaving cardio-pulmonary resuscitation or delivering rapid electrical shocks using
automated external defibrillators (AEDs), prior to the arrival of the paramedic team.
Lifeguard Operations Division
The City of Newport Beach’s Lifeguard Division protects up to 10 million beach visitors on
Newport Beach’s 6.2 miles of ocean and 2.5 miles of bay beaches, with preventative actions and medical
assistance. Every day of the year, lifeguards ensure safety and provide customer service to the visitors on
the beach, boardwalk, piers, and in the ocean.
Police Services
The City of Newport Beach’s Police Department intends to:
• Respond positively to the Community's needs, desires, and values and in so doing be recognized
as an extension and reflection of those we serve.
• Strive to provide a safe and healthy environment for all, free from violence and property loss
resulting from criminal acts, and injuries caused by traffic violators.
• Manage inevitable change and welcome the challenge of future problems with creative solutions,
which are financially prudent and consistent with Community values.
The Department’s is headed by Chief of Police Jon T. Lewis, who is the 10th Chief of Police in the
department’s history, assuming office on March 22, 2016. The City of Newport Beach’s Police Department
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handles a wide array of services and permitting, all services are outlined in detail on the City’s Police
Department webpage.
Environmental Constraints
Newport Beach is bound by the Pacific Ocean to the West and contains many different natural landscapes
within the City’s boundaries. Newport Beach has a variety of coastal features ranging from replenished
beach sands in West Newport, to steep bluffs comprised of sandstone and siltstone to the south of Corona
del Mar. The community, as most of California is, sits along some major fault traces. The City is susceptible
to several potential environmental constraints to the development of housing, including geologic hazards,
flood hazards, and fire hazards, all are detailed below.
Coastal Hazards
A goal of the California Coastal Act and the City's adopted Local Coastal Program is to assure the priority
for coastal-dependent and coastal-related development over other development in the Coastal Zone. The
Coastal Act is an umbrella legislation designed to encourage local governments to create Local Coastal
Programs (LCPs) to govern decisions that determine the short- and long-term conservation and use of
coastal resources. The City of Newport Beach’s LCP is considered the legislative equivalent of the City’s
General Plan for areas within the Coastal Zone. Local Coastal Programs are obligated by statute to be
consistent with the policies of the Coastal Act and protect public access and coastal resources. Over
63 percent of Newport Beach is within the Coastal Zone and subject to the oversight by the California
Coastal Commission.
Sea Level Rise and Storm Inundation
Newport Beach is exposed to a variety of coastal hazards including beach erosion, bluff erosion, and
coastal flooding due to sea level rise (SLR) and storm inundation. The City has a significant amount of land
directly adjacent to surface water that is directly affected by sea level rise and storm inundation. The
effects of SLR on coastal processes, such as shoreline erosion, storm-related flooding and bluff erosion,
have been evaluated using a Coastal Storm Modeling System (CoSMoS), a software tool and multi-agency
effort led by the United States Geological Survey (USGS), to make detailed predictions of coastal flooding
and erosion based on existing and future climate scenarios for Southern California. The mapping results
from CoSMoS provide predictions of shoreline erosion (storm and non-storm), coastal flooding during
extreme events, and bluff erosion for the City in community-level coastal planning and decision-making.
A large portion of the City’s coastal adjacent land appropriate for development is at risk of tidal flooding.
Land along the coast is vulnerable to shoreline retreat, which is predicted to accelerate with Sea Level
Rise. Long-term shoreline retreat coupled with storm-induced beach erosion has the potential to cause
permanent damage to buildings and infrastructure in these hazard zones. As a result, the City did not
utilize land within the coastal
The Coastal Commission provides direct guidance on how the City of Newport Beach addresses future
land use in consideration of sea level rise. According to the California Coastal Commission Sea Level Rise
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Policy Guidance7 , local jurisdictions can “Minimize Coastal Hazards through Planning and Development
Standards” through the following measures applicable to Newport Beach:
• Design adaptation strategies according to local conditions and existing development patterns, in
accordance with the Coastal Act.
• Avoid significant coastal hazard risks to new development where feasible.
• Minimize hazard risk to new development over the life of the authorized development.
• Minimize coastal hazard risks and resource impacts when making redevelopment decisions.
• Account for the social and economic needs of the people of the state include environmental
justice, assure priority for coastal-dependent and coastal-related develop over other
development
The Coastal Commission has also prepared a Draft Coastal Adaptation Planning Guidance: Residential
Development (dated March 2018), which will serve as the Coastal Commission’s policy guidance on sea
level rise adaptation for residential development to help facilitate planning for resilient shorelines while
protecting coastal resources in LCPs
Geologic Hazards
According to the Newport Beach Safety Element, the geologic diversity of Newport Beach is strongly
related to tectonic movement along the San Andreas Fault and its broad zone of subsidiary faults. This,
along with sea level fluctuations related to changes in climate, has resulted in a landscape that is also
diverse in geologic hazards. Geologic hazards are generally defined as surficial earth processes that have
the potential to cause loss or harm to the community or the environment. Specific geologic hazards that
may affect the development of housing in the City are detailed below.
Slope Failures
Slope failures often occur as elements of interrelated natural hazards in which one event triggers a
secondary event such as a storm-induced mudflow. Slope failure can occur on natural and man-made
slopes. The City’s remaining natural hillsides and coastal bluff areas are generally vulnerable to slope
failures that include: San Joaquin Hills; and bluffs along Upper Newport Bay, Newport Harbor, and the
Pacific Ocean. Despite the abundance of landslides and new development in the San Joaquin Hills, damage
from slope failures in Newport Beach has been small which may be attributed to the development of strict
hillside grading ordinances, sound project design that avoid severely hazardous areas, soil engineering
practices, and effective agency review of hillside grading projects.
Seismic Hazards
The City of Newport Beach is located in the northern part of the Peninsular Ranges Province, an area that
is exposed to risk from multiple earthquake fault zones. The City of Newport Beach Safety Element
determines that the highest risks originate from the Newport-Inglewood fault zone, the Whittier fault
zone, the San Joaquin Hills fault zone, and the Elysian Park fault zone. Each of the aforementioned zones
7 California Coastal Commission Sea Level Rise Policy Guidance, 2018 Science Update
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have the potential to cause moderate to large earthquakes that would cause ground shaking in Newport
Beach and nearby communities. Earthquake-triggered geologic effects also include surface fault rupture,
landslides, liquefaction, subsidence, and seiches. Specific hazards associated with seismic hazards, which
can potentially be determined as a constraint to development are detailed below.
Liquefaction
Strong ground shaking can result in liquefaction. Liquefaction, a geologic process that causes ground
failure, typically occurs in loose, saturated sediments primarily of sandy composition. According to the
Newport Beach Safety Element, the areas of Newport Beach susceptible to liquefaction and related
ground failure (i.e., seismically induced settlement) include the following areas along the coastline:
• Balboa Peninsula,
• In and around the Newport Bay and Upper Newport Bay,
• in the lower reaches of major streams in Newport Beach, and
• In the floodplain of the Santa Ana River.
It is likely that residential or commercial development will never occur in many of the other liquefiable
areas, such as Upper Newport Bay, the Newport Coast beaches, and the bottoms of stream channels.
Seismically Induced Slop Failure
Strong ground motions can also worsen existing unstable slope conditions, particularly if coupled with
saturated ground conditions. Seismically induced landslides can overrun structures, people or property,
sever utility lines, and block roads, thereby hindering rescue operations after an earthquake. Much of the
area in eastern Newport Beach has been identified as vulnerable to seismically induced slope failure.
Approximately 90 percent of the land from Los Trancos Canyon to State Park boundary is mapped as
susceptible to land sliding by the California Geologic Survey. Additionally, the sedimentary bedrock that
crops out in the San Joaquin Hills is locally highly weathered. In steep areas, strong ground shaking can
cause slides or rockfalls in this material. Rupture along the Newport Inglewood Fault Zone and other faults
in Southern California could reactivate existing landslides and cause new slope failures throughout the
San Joaquin Hills. Slope failures can also be expected to occur along stream banks and coastal bluffs, such
as Big Canyon, around San Joaquin Reservoir, Newport and Upper Newport Bays, and Corona del Mar.
Flood Hazards
The City of Newport Beach and surrounding areas are, like most of Southern California, subject to
unpredictable seasonal rainfall, and every few years the region is subjected to periods of intense and
sustained precipitation that result in flooding. Flooding can be a destructive natural hazard and is a
recurring event. A flood is any relatively high streamflow overtopping the natural or artificial banks in any
reach of a stream. Flood hazards in Newport Beach can be classified into two general categories: flash
flooding from small, natural channels; and more moderate and sustained flooding from the Santa Ana
River and San Diego Creek. The City of Newport Beach’s Safety Element Identifies 100-year and 500-year
flood zones in the City. Federal Emergency Management Agency (FEMA) flood zones are geographic areas
that the FEMA has defined according to varying levels of flood risk. Each zone reflects the severity or type
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of flooding in the area.8 The 100-year flood zone are areas with a one percent annual chance of flooding,
the 500-year flood zones are areas with a 0.2 percent annual chance of flooding.
The 100- and 500-year flood zones include the low-lying areas in West Newport at the base of the bluffs,
the coastal areas which surround Newport Bay and all low-lying areas adjacent to Upper Newport Bay.
100- and 500- year flooding is also anticipated to occur along the lower reaches of Coyote Canyon, in the
lower reaches of San Diego Creek and the Santa Ana Delhi Channel, and in a portion of Buck Gully. The
City also recently worked with FEMA to revise proposed flood hazards maps, in which FEMA removed over
2,700 properties from flood zones. Most flooding along these second- and third-order streams is not
expected to impact significant development. However, flooding in the coastal areas of the City will impact
residential and commercial zones along West Newport, the Balboa Peninsula and Balboa Island and the
seaward side of Pacific Coast Highway.9
With increased development, there is also an increase in impervious surfaces, such as asphalt. Water that
used to be absorbed into the ground becomes runoff to downstream areas. However, various flood
control measures help mitigate flood damage in the City, including reservoirs in the San Joaquin Hills and
Santa Ana Mountain foothills, and channel alterations for the Santa Ana River. These structures help
regulate flow in the Santa Ana River, San Diego Creek, and smaller streams and hold back some of the
flow during intense rainfall period that could otherwise overwhelm the storm drain system in Newport
Beach.
Fire Hazards
The Newport Beach Safety Element defines a wildland fire hazard area as any geographic area that
contains the type and condition of vegetation, topography, weather, and structure density that potentially
increases the possibility of wildland fires. The eastern portion of the City and portions of the Newport
Beach region and surrounding areas to the north, east, and southeast include grass- and brush-covered
hillsides with significant topographic relief that facilitate the rapid spread of fire, especially if fanned by
coastal breezes or Santa Ana winds.
In those areas identified as susceptible to wildland fire, the Fire Department enforces locally developed
regulations which reduce the amount and continuity of fuel (vegetation) available, firewood storage,
debris clearing, proximity of vegetation to structures and other measures aimed at “Hazard Reduction.”
New construction and development are further protected by local amendments to the Uniform Building
Code. These amendments, which are designed to increase the fire resistance of a building, include:
protection of exposed eaves, noncombustible construction of exterior walls, protection of openings, and
the requirement for Class “A” fireproof roofing throughout the City. Additionally, a “Fuel Modification”
plan aimed at reducing fire encroachment into structures from adjacent vegetation must be developed
and maintained.
C. Affirmatively Furthering Fair Housing (AFFH)
8 FEMA Flood Zone Designations, Natural resources Conservation Service – Field Office Technical Guides
9 City of Newport Beach Safety Element
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Affirmatively Furthering Fair Housing
All Housing Elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH)
consistent with the core elements of the analysis required by the federal Affirmatively Further
Fair Housing Final Rule of July 16, 2015.
Under State law, affirmatively further fair housing means “taking meaningful actions, in addition to
combatting discrimination, that overcome patterns of segregation and foster inclusive communities free
from barriers that restrict access to opportunity based on protected characteristics. These characteristics
can include, but are not limited to race, religion, sex, marital status, ancestry, national origin, color,
familiar status, or disability.
The Orange County Analysis of Impediments (AI) to Fair Housing Choice for FY 2015-19 was approved by
the City of Newport Beach City Council in October 2016 as one of the fifteen urban county program
participants in partnership with the Fair Housing Council of Orange County. The Draft Regional Analysis of
Impediments (AI) to Fair Housing Choice for FY 2020-25 was made available for public review in 2020. The
Fair Housing Council of Orange County works under the direction of a volunteer board of directors and
staff to fulfill a mission of protecting the quality of life in Orange County by ensuring equal access to
housing opportunities, fostering diversity and preserving dignity and human rights. The agency is a HUD
Approved Housing Counseling Agency and provides one-on-one education, mediation, and counseling for
individuals and families throughout the Orange County region.
The AI identifies impediments that may prevent equal housing access and develops solutions to mitigate
or remove such impediments. Newport Beach’s 6th Cycle Housing Element references analysis from the
FY 2020-2025 AI in order to identify potential impediments to housing that are specific to Newport Beach.
The City also completed its FY 2020-24 Consolidated Plan, adopted by City Council on May 12, 2020, as an
entitlement city for Community Development Block Grant (CDBG) funding, which identifies housing
problems within the community, specifically among low and very-low-income households. Fair housing is
identified as a priority within the Consolidated Plan.
Summary of Local Data
The AI contains a Countywide analysis of demographic, housing, and specifically fair housing issues for all
the cities in Orange County, including Newport Beach. The City's demographic and income profile,
household and housing characteristics, housing cost and availability, and special needs populations were
discussed in the previous Section 2: Community Profile.
In an ongoing effort to promote and encourage fair housing, the City contracts with the Fair Housing
Foundation (FHF). FHF provides public outreach, educational workshops, and distributes educational
materials related to fair housing. Inquiries regarding fair housing matters are generally referred to the
FHF. As of July 30, 2021, a total of 116 Newport Beach low-income residents relied on Section 8 rental
assistance vouchers. In 2020, the Fair Housing Foundation held virtual fair housing workshops (February
3, 2020, and November 17, 2020), held virtual walk-in clinics (May 13, 2020, May 20, 2020, July 15, 2020,
September 2, 2020, and November 18, 2020), produced a public service announcement for Newport
Beach Television (NBTV), and distributed 2,250 pieces of literature.
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Fair Housing Issues
Within the legal framework of federal and state laws and based on the guidance provided by the HUD Fair
Housing Planning Guide, impediments to fair housing choice can be defined as:
• Any actions, omissions, or decisions taken because of age, race, color, ancestry, national origin,
age, religion, sex, disability, marital status, familial status, source of income, sexual orientation,
or any other arbitrary factor which restrict housing choices or the availability of housing choices;
or
• Any actions, omissions, or decisions which have the effect of restricting housing choices or the
availability of housing choices on the basis of age, race, color, ancestry, national origin, age,
religion, sex, disability, marital status, familial status, source of income, sexual orientation or any
other arbitrary factor.
Regional Fair Housing Issues
• Availability, Type, Frequency, and Reliability of Public Transportation - The availability, type,
frequency, and reliability of public transportation may be significant local contributing factors to
fair housing issues in Newport Beach. Public transportation in Orange County primarily consists
of bus service operated by the Orange County Transportation Authority (OCTA) and Metrolink
light rail service. However, Metrolink does not provide service to Newport. The lack of public
transportation may deter members of protected classes who do not have cars and are reliant on
public transportation from choosing to live there, thus reinforcing patterns of segregation.
• Impediments to Mobility - Impediments to mobility may be a significant local contributing factor
to fair housing issues in Newport Beach. Specifically, Housing Choice Voucher payment standards
that make it difficult to secure housing in many, disproportionately White areas contribute to
segregation and disparities in access to opportunity. The Orange County Housing Authority, which
provides Section 8 resources to Newport Beach, has three tiers based on city rather than zip code,
but the highest tier - $2,280 for two-bedroom units in selected cities – falls far short of Small Area
Fair Market Rents and leaves some cities targeted for that payment standard out of reach. For
example, in zip code 92660, located in Newport Beach, the Small Area Fair Market Rent for
two-bedroom units would be $3,120. A Zillow search for that zip code revealed advertised
two-bedroom units in only two complexes available for under $2,280 but many more available
between $2,280 and $3,120.
• Location of Accessible Housing - The location of accessible housing may be a significant local
contributing factor to fair housing issues in Newport Beach. With a few exceptions the location of
accessible housing tends to track areas where there are concentrations of publicly supported
housing. In Orange County, publicly supported housing tends to be concentrated in areas that are
disproportionately Hispanic and/or Vietnamese and that have relatively limited access to
educational opportunity and environmental health. While this Is not a predominate issue in
Newport Beach, comments by advocacy groups during the outreach process indicated that the
location and availability of affordable housing throughout the community contributes to
challenges to fair housing opportunity. Multi-unit housing tends to be concentrated in
communities of color, but there are some predominantly White communities that have significant
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amounts of market-rate multi-unit housing that may be accessible and affordable to middle-
income and high-income persons with disabilities, including Newport Beach. Overall, permitting
more multi-unit housing and assisting more publicly supported housing in predominantly White
communities with proficient schools would help ensure that persons with disabilities who need
accessibility features in their homes have a full range of neighborhood choices available to them.
Occupancy Codes and Restrictions - Occupancy codes and restrictions may be a significant local
contributing factor to fair housing issues in Newport Beach. Specifically, there is a substantial
recent history of municipal ordinances targeting group homes, in general, and community
residences for people in recovery from alcohol or substance abuse disorders, in particular. In
2015, the City of Newport Beach entered into a $5.25 million settlement of a challenge to its
ordinance, but that settlement did not include injunctive relief calling for a repeal of that
ordinance.10 Although municipalities have an interest in protecting the health and safety of group
home residents, these types of restrictions may be burdensome for ethical, high-quality group
home operators. Occupancy codes and restrictions are not as high priority of a barrier as the
factors that hinder the development of permanent supportive housing, as group homes are
generally less integrated than independent living settings.
Fair Housing Enforcement and Outreach Capacity
Currently, the Fair Housing Foundation provides fair housing services to the City of Newport Beach. This
includes providing fair housing enforcement and landlord/tenant mediation services which are available
for tenants, realtors, apartment owners and managers, lending institutions and other interested parties.
For FY 2020-21, the City of Newport Beach has allocated $12,000 in Community Development Block Grant
(CDBG) funds for the Fair Housing Foundation to perform the following, at no cost:
• Fair housing services such as, responding to discrimination inquiries and complaints,
documenting, and investigating discrimination complaints, and resolving or mediating
discrimination complaints
• A comprehensive, extensive, and viable education and outreach program, including:
o Fair Housing Workshop
o Certificate Management Training
o Walk-In Clinics
o Rental Housing Counseling Workshop
o Community presentations, staff training, and workshops
o Community events, booths, networking, etc.
• Landlord and tenant counseling on responsibilities and rights
• Rental counseling
10 41 Hannah Fry, Newport Will Pay Group Homes $5.25 Million Settlement, L.A. TIMES (July 16, 2015), https://www.latimes.com/socal/daily-
pilot/news/tn-dpt-me-0716-newport-group-home-settlement-20150716- story.html.
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• Since the City contracts with an outside firm for these services, lack of monitoring and lack of
direct access through City resources may be identified as contributing factors.
The Fair Housing Foundations offers regular walk-in counseling sessions, in addition to resources fairs,
informational workshops (accessible in multiple languages), landlord and tenant workshops, and other
outreach efforts. Additionally, the FHF provided virtual workshops available online to Newport Beach
residents.
From 2015 to 2020, the City provided 408 residents with fair housing services using CDBG funding. As part
of the FY 2020-25 Consolidated Plan for the Newport Beach, the City has set a goal of assisting 625 people
with fair housing issues within the five-year period using $60,000 of CDBG funding. Newport Beach has
also set a goal of retaining a Fair Housing provider to promote fair housing education and outreach within
the community. The U.S. Department of Housing and Urban Development (HUD) maintains a record of all
housing discrimination complaints filed in local jurisdictions. These grievances can be filed on the basis of
race, color, national origin, sex, disability, religion, familial status, and retaliation. As reported by the 2020-
2025 AI, one fair housing case is unresolved (as one 2020) in Newport Beach.
Housing Element 2021-2029 Outreach
Outreach and materials used in the 6th Cycle Housing Element are provided in Appendix C: Summary of
Community Outreach.
Analysis of Federal, State, and Local Data and Local Knowledge
Newport Beach officially became an incorporated City in Orange County in September of 1906 and the
current City Charter was adopted in 1954. The City began establishing itself in the 1920s around the
development of the harbor; however it wasn’t until the 1950s that the City became a vacation destination
and permanent residents began to settle in the area.11 Between 1960 and 1980 the City experienced a
boom in construction, which resulted in the population increasing from 26,564 residents to 62,549
residents over the 20-year period. Today, about 85,694 persons live in the City of Newport Beach (ACS
2019). Of the residents in the City, 85.8 percent identify as White, 1.0 percent identify as Black, 8.0 percent
identify as Asian, and 8.8 percent of all persons identify as Hispanic or Latino. The City’s demographics
display a large contrast between the population that is White and Non-White. Similarly, about 61.0
percent of the County of Orange population is White compared to 1.8 percent who identify as Black, 20.5
percent who identify as Asian and 34.1 percent who Identify as Hispanic or Latino of any race.12
The City of Newport Beach’s population requires a diverse array of housing options. Specifically, Newport
Beach has an aging population. About 23.1 percent of the population is over the age of 65 compared to
14.4 percent in the County. About 8.0 percent of all persons in Newport Beach reported at least one
disability in 2019, majority of which were seniors (over the age of 65). Senior housing and housing
accessibility were key priorities identified by the community during the Housing Element Outreach.
Additionally, the median income for non-family households is significantly lower than that of married
11 The Chamber Newport Beach, About Newport Beach, https://www.newportbeach.com/about-newport-
beach/#:~:text=The%20City%20of%20Newport%20Beach,brokering%20followed%20in%20later%20decades., accessed January 24, 2022.
12 American Community Survey, DP05 5-year estimates, 2019.
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couple households and family households. The ACS 2019 5-year data reports that nonfamily households
earned a median income of $86,656 annually, compared to family households that earned $171,699
annually and married couple households that earned $192,542 annually. The City does not do fair housing
testing, however additional information regarding fair housing concerns and issues was identified through
the County of Orange AI.
Additional housing needs, concerns, and disparities are analyzed below in the Fair Housing Analysis.
Findings from the analysis are reported below under “Local Data and Knowledge.”
Local Data and Knowledge
Locally-derived knowledge and contributing factors were developed through community participation in
outreach events, analysis conducted in Affirmatively Furthering Fair Housing development, feedback and
comments received on the draft Housing Element’s data, sites inventory, and policy programs.
Additionally, local knowledge has been gathered and retained by City staff during the course of routine
business over many decades of service. The various City Departments interact with the residents and
businesses, property owners, developers, the various elected and appointed representatives, and the
public on a daily basis. One aspect of providing service is to listen to the needs of the community and then
to work with all stakeholders to address those needs deemed priorities after public debate. The following
local contributing factors have been identified and several citywide and placed-based strategies to
counter those factors are described later in Section 4 Additional local knowledge is provided regarding
affirmatively furthering fair housing in the Airport Area and West Newport Focus Areas under the
“Analysis of Exacerbating Current Conditions” header later in this Section.:
• Aging Housing Stock – The community and the City’s Planning and Code Enforcement Divisions
have indicated that there is an older housing stock that will continue to require rehabilitation as
the housing continues to age. With the relative cost of property, these conditions are a challenge
for maintenance and upkeep due to relatively high cost of improvements.
• Housing Conditions and Senior Housing – The community has noted its higher proportion of aging
population. This is also supported by the demographic information provided in Tables 2-18 and 2-
19 in Section 2 (Profile) of this Housing Element. This tends to create challenges with deferred
maintenance , as those older homeowners may not have the financial resources or physical ability
to perform maintenance functions. Seniors are predominately on fixed incomes and represent
the largest group of residents in need of support to address high housing costs and unique housing
needs. The City’s Senior Home Assistance Repair Program (SHARP) works to assist senior citizens
with home repairs. Data for the program is provided in Appendix A. Eligible applicants must be 60
or older and must have an income at or below the 50th-percentile of median income of Orange
County with net assets not to exceed gross household income for 18 months. The City’s Senior
Center (OASIS) plays a vital role in the dissemination of information and services to the senior
community and should be engaged to help facilitate the needs of the senior population.
• Variety of Housing Choices – The City’s existing mobile home and upward-trending accessory
dwelling unit (ADU) inventory play a role in keeping an inventory of affordable housing in the
community. The community has expressed its desire to have a good balance of residential
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development types and densities to accommodate various income levels and a variety of
household types As discussed in Appendix D, the City has been promoting ADU development and
provides local data to substantiate increased production.
• Redevelop and Infill Opportunities – Residents and property owners indicated a desire to focus
future development in areas seeing a decline in commercial development activity. As such, the
Airport Area and Newport Center Area were included as major opportunity areas due to recent
residential development activities and entitlement requests. The negative effects that the COVID-
19 pandemic and on-line shopping trends has had on the ability to maintain economically
performing commercial properties was also cited as a concern. As such, reuse and repurposing of
commercial and industrial uses is a major opportunity area according to residents.
• Address the High Cost of Housing - The cost of housing in Newport Beach is very high and rents
continue to increase; however, the City has aimed to encourage and preserve a number of
affordable housing units through existing agreements. As part of this Housing Element update,
Policy Action 1K is included to adopt an inclusionary housing program that would require
affordable units to be developed as part of housing development projects meeting the certain
applicability criteria. This Inclusionary Housing Program, in conjunction with the implementation
of the Housing Element, will help to boost affordable housing production, which will in turn boost
affordable housing stock to help offset higher housing costs.
• Lower Income Access to Opportunity – High local employment in service industry at resort, hotel,
restaurants, and other tourist-serving businesses contributes to the need for housing affordable
to lower income households. To address this, Policy 4E grants exceptions for affordable housing
projects, and supportive Policies for Housing Goal #5 provides for the preservation of lower
income housing opportunities.
• Transportation and Housing – Through community workshops, residents and stakeholders have
indicated there is a need for improved transit use and better access throughout the community.
In areas where higher density is preferred, such as the Airport Area, access to various
transportation options will increase local economic development potential, physical mobility,
employment and housing mobility.
• Displacement of Residents – As the cost of housing rises, there are continued limitations on
housing options for the younger and older populations. During community workshops, residents
indicated the desire to improve access to housing options throughout various life stages. This
includes rental and ownership opportunities, as well as options for persons with various incomes
and household needs. The ability to age-in-place, not necessarily within an owned single-family
home, but within a senior living community in Newport Beach, was identified as a major priority
given the City’s aging population.
• Preserving Economic Integrity – As the RHNA obligations in the City have increased significantly,
increasing development capacity has also increased the project cost for services and land has
become scarce. The members of City’s Housing Element Update Advisory Committee, its elected
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officials and a number of residents have expressed the need to balance housing with the need
for economic development in the community to foster access to services and jobs.
• Alternative Means to Accommodate Affordable Housing – Throughout the outreach and
consultation process, the public stakeholders decision-makers and housing advocates have
expressed at many meetings and workshops a desire to seek alternatives to accommodating
affordable housing in a high-cost market. This includes ADU development, inclusionary housing
options, and funding and financing mechanisms that further these opportunities. The community
has expressed that ADUs represent the single greatest opportunity to accommodate affordable
housing within existing established high-resource neighborhoods and recommended the inclusion
of policies and programs to encourage them.
Considering the locally derived knowledge and data, the City recognizes that fair housing issues exist
within the community. The City is committed to reducing barriers to providing housing that is affordable
to all. The City has outlined programs to address fair housing issues in Newport Beach in the Section 4:
Housing Plan. As a prime example, Policy Action 4A (Affirmatively Furthering Fair Housing) has Table 4-1
(Fair Housing Actions) and lists nine identified fair housing issues such as access to opportunity,
displacement, and housing mobility. The Table includes both place-based and citywide strategies. Each
issue includes geographic targets, meaningful City actions, priority level, timelines for action, and
evaluative metrics that are aspirational goals to measure performance and to inform changes to future
actions.
Integration and Segregation Patterns and Trends
The dissimilarity index is the most used measure of segregation between two groups, reflecting their
relative distributions across neighborhoods (as defined by census tracts). The index represents the
percentage of the minority group that would have to move to new neighborhoods to achieve perfect
integration of that group. An index score can range in value from 0 percent, indicating complete
integration, to 100 percent, indicating complete segregation. An index number above 60 is considered to
show high similarity and a segregated community.
It is important to note that segregation is a complex topic, difficult to generalize, and is influenced by
many factors. Individual choices can be a cause of segregation, with some residents choosing to live
among people of their own race or ethnic group. For instance, recent immigrants often depend on nearby
relatives, friends, and ethnic institutions to help them adjust to a new country.13 Alternatively, when white
residents leave neighborhoods that become more diverse, those neighborhoods can become segregated.
Other factors, including housing market dynamics, availability of lending to different ethnic groups,
availability of affordable housing, and discrimination can also cause residential segregation.
The Longitudinal Tract Data Base (LTDB) from the Diversity and Disparities project shows that from 1980
to 2010 the City of Newport became increasingly diverse. In 1980, the Non-Hispanic White population
totaled 91.6 percent of the overall population and decreased to about 73.6 percent in 2010. During the
same timeframe, the Hispanic population increased from 5.0 percent to 10.9 percent. Additionally, the
13 Allen, James P. and Turner, Eugene. “Changing Faces, Changing Places: Mapping Southern California”. California State University, Northridge,
(2002).
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total populations for those who identified as Asian increased from 1980 to 2010, 2.0 percent to 13.6
percent, and the total population of those who are Non-Hispanic Black increased from 0.5 percent to 1.2
percent. However, in 2018, the Black or African American population totaled about 0.8 percent of the
population. The decrease in the Black population and increase in the Hispanic population is consistent
with demographics trends for the greater metropolitan area. In 1980, the Non-Hispanic Black population
equaled 10.1 percent of the overall population for the Los Angeles-Long Beach-Santa Ana metropolitan
area, and the Hispanic population totaled 25.0 percent. By 2010, the Black population totaled 6.7 percent
whereas the Hispanic population increased to 44.4 percent. According to 2018 ACS data, the total Non-
Hispanic Black population in Orange County was 1.7 percent and the total Hispanic population was 34.1
percent.
Figure 3-2 shows the dissimilarity between each of the identified race and ethnic groups and the
jurisdictions White population, in both the County of Orange and Newport Beach. The higher scores
indicate higher levels of segregation among those racial and ethnic group. The White (non-Hispanic or
Latino) population makes up most of the City’s population at approximately 79.5 percent according to the
2018 ACS estimates, as well as most of the County’s population at 61.7 percent of the total population.
The race and ethnic groups with the highest scores were the Native Hawaiian population (44.5) and people
who reported as Other (51.3). Additionally, those who reported Black and the American Indian population
had dissimilarity indices of 37.8 and 37.4 respectively.
The scores above directly correlate with the percentage of people within that racial or ethnic group that
would need to move into a predominately White census tract in order to achieve a more integrated
community. For instance, in Newport Beach, 44.5 percent of the Native Hawaiian population would need
to move into predominately white census tract areas to achieve “perfect” integration. Whereas in Orange
County, 55.9 percent of the percent of the Native Hawaiian population would need to move into
predominately white census tract areas to achieve “perfect” integration.
Overall, there are higher rates of segregation across the County of Orange compared to the City of
Newport Beach. The Department of Housing and Community Development (HCD) considers dissimilarity
index scores above 30, but below 60 as moderate segregation. Scores above 60 are considered to be high
segregation. According to Figure 3-2 below, while the City of Newport Beach has no racial or ethnic
populations with a dissimilarity index above 60, all populations (with the exception of the Hispanic/Latino
population) have a score above 30, meaning all groups experience moderate segregation from the White
population. Similarly, all populations in the County have a score above 30.
While segregation may be a result of ethnic enclaves or persons of similar cultures living in community,
there is often increased likelihood segregated populations will have fewer access to essential resources.
As a part of Newport Beach’s efforts to further fair housing, the City will consider increased targeted
outreach to the City’s minority residents.
107
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(September 2022 Final Housing Element)
Figure 3-2: Dissimilarity Index with Whites – Newport Beach and Orange County
Source: Census Scope, Social Science Data Analysis Network, *Not Hispanic or Latino
Racially or Ethnically Concentrated Areas of Poverty (R/ECAP)
To assist communities in identifying racially/ethnically concentrated areas of poverty (R/ECAPs), HUD has
developed a census tract-based definition of R/ECAPs. The definition involves a racial/ethnic
concentration threshold and a poverty test. The racial/ethnic concentration threshold is straightforward:
R/ECAPs must have a non-white population of 50 percent or more. Regarding the poverty threshold,
Wilson (1980) defines neighborhoods of extreme poverty as census tracts with 40 percent or more of
individuals living at or below the poverty line. Because overall poverty levels are substantially lower in
many parts of the country, HUD supplements this with an alternate criterion. Thus, a neighborhood can
be a R/ECAP if it has a poverty rate that exceeds 40% or is three or more times the average tract poverty
rate for the metropolitan/micropolitan area, whichever threshold is lower.
Location of residence can have a substantial effect on mental and physical health, education
opportunities, and economic opportunities. Urban areas that are more residentially segregated by race
and income tend to have lower levels of upward economic mobility than other areas. Research has found
that racial inequality is thus amplified by residential segregation.14 However, these areas may also provide
different opportunities, such as ethnic enclaves providing proximity to centers of cultural significance, or
business, social networks and communities to help immigrants preserve cultural identify and establish
14 Orange County, Analysis of Impediments to Fair Housing Choice, April 2020 DRAFT.
0 10 20 30 40 50 60 70
Black*
American Indian*
Asian*
Native Hawaiian*
Other*
Two or More Races*
Hispanic
Black*American
Indian*Asian*Native
Hawaiian*Other*Two or More
Races*Hispanic
Orange County 43.8 40.3 44.1 55.9 44.7 58.9 58.9
Newport Beach 37.8 37.4 31.2 44.5 51.3 16.6 22.4
108
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(September 2022 Final Housing Element)
themselves in new places. Overall, it is important to study and identify these areas in order to understand
patterns of segregation and poverty in a City.
The 2020 AI performed an analysis of R/ECAPs within Orange County and found four R/ECAPs, none of
which were found in Newport Beach. However, two of the four were found in the neighboring City of
Irvine, adjacent to one another and near the University of California; these both bordered the City of
Newport Beach. According to the AI, it is likely that they qualify as R/ECAPs due to the high proportions
of students. These R/ECAPs have a much more diverse group of residents, with some White, Asian or
Pacific Islander, Hispanic and Black residents. These R/ECAPs primarily contain Asian or Pacific Islander or
Hispanic residents. 23.49% of residents are White, 1.63% are Black, 48.50% are Hispanic, 23.70% are Asian
or Pacific Islander, and 0.14% are Native American.
Figure 3-3 below identifies low poverty index with race/ethnicity and R/ECAPs in Newport Beach, and the
overall Orange County region. The low poverty index captures the depth and intensity of poverty in a
given neighborhood. The index uses both family poverty rates and public assistance receipt, in the form
of cash-welfare, such as Temporary Assistance for Needy Families (TANF). The poverty rate and public
assistance for neighborhoods are determined at the census tract level, and the higher the score, the less
exposure to poverty in a neighborhood. The map identifies the R/ECAP and a few surrounding
neighborhoods, to the south and southeast, The figure identifies R/ECAP areas (outlined in red) bordering
the City of Newport Beach, near the University of California, Irvine.
The map also shows that there are few R/ECAPs in the County as a whole, with a few pockets in the City
of Santa Ana. Overall, the City of Newport Beach is a high income areas, with majority of the population
identifying as white. The City should consider the impact of high cost of housing and higher annual
incomes on lower income households. The current financial circumtance combined with the recent
housing boom can create displacement through economic pressures, where lower income households
need to look for affordable housing outside of the City.
109
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Figure 3-3: Low Poverty Index with Race/Ethnicity and R/ECAPs, Newport Beach
Source: HUD Affirmitaevly Furthering Fair Housing Data and Mapping Tool, Data Versions: AFFHT0006, July 10, 2020
110
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(September 2022 Final Housing Element)
Racially Concentrated Areas of Affluence (RCAA)
Racially or Ethnically Concentrated Areas of Poverty have long been analyzed and reviewed as a
contributing factor to segregation. However, patterns of segregation in the United States show that of all
racial groups, people who identify as White are the most severely segregated.15 Research also identifies
segregation of affluence to be greater than the segregation of poverty. Racial and economic segregation
can have significant effects on respective communities, including but not limited to, socioeconomic
disparities, educational experiences and benefits, exposure to environmental conditions and crime, and
access to public goods and services.
Data used in the analysis of RCAA is from the 2012-2016 American Community Survey and are measured
at the census track level. The definition for an RCAA is a census tract in which 80 percent or more of the
population is White and has a median income of at least $125,000. The nationwide RCAA analysis
identifies the following:
• RCAA tracts have more than twice the median household income of the average tract in their
metro area.
• Poverty rates in RCAAs are significantly lower and are, on average about 20 percent of a typical
tract.
• RCAAs tracts are more income homogenous than RECAPs.
• The average RCAA is about 57 percent affluent, whereas the average RECAP had a poverty rate of
48 percent.
• The typical RCAA tract has a rate of affluence 3.2 times that of a typical tract, whereas RECAPs on
average had a poverty rate 3.2 times that of a typical tract
Overall, RCCAs may represent a public policy issue to the extent that they have been created and
maintained through exclusionary and discriminatory land use and development practices. Postwar
patterns of suburbanization in many metropolitan areas were characterized by White communities
erecting barriers to affordable housing and engaging in racially exclusionary practices.16
Currently (October 2020), there is no consolidated database to identify RCAAs, therefore, to identify these
areas in Newport Beach, this analysis examines census tracts with a population gap that is greater than
50% between the nonwhite and white population and a median income over $100,000. Table 3-15 below
displays the RCAA data for the County of Orange and Newport Beach. Additionally, Table 3-16 below
shows local (Newport Beach) and regional (Orange County) context for the median household incomes of
white residents.
15 Racially Concentrated Areas of Affluence: A Preliminary Investigation. University of Minnesota. Edwards Goets,
Damiano, Williams. 2019.
16 Ibid.
111
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Table 3-15: Median Household Income by Race, Newport Beach
Census Tract Percent Population White Median Income
Census Tract 630.09 82.7% $130,089
Census Tract 634 88.84% $107,321
Census Tract 635 84.6% $112,000
Census Tract 629 92.1% $140,833
Census Tract 630.05 86.5% $171,406
Census Tract 627.01 89.3% $145,313
Census Tract 627.02 88.4% $107,829
Census Tract 626.43 71.6% $199,219
Census Tract 626.42 89.4% $134,444
Census Tract 626.44 82.4% $113,779
Census Tract 626.45 76.1% $167,530
Census Tract 630.07 79.6% $125,918
Source: HCD, AFFH Data Viewer, Predominant White Population and Median Income (SCA 2010-2014), Accessed October 2021.
Table 3-16: Median Household Income by Race
Race Newport Beach County of Orange
Median Income Population Median Income Population
White (Not Hispanic or Latino) $ 129,797 85% $94,082 61%
All Households $127,223 -- $90,234 --
Source: American Community Survey, 5-Year estimates, 2019.
Table S1903 Median Income In The Past 12 Months (In 2019 Inflation-Adjusted Dollars) 5-Year Estimate 2015-2019 (for all
households and for White Alone)
The majority of the City is predominately White. Additionally, the City reports a large percentage of
households who earn a median annual income of at least $125,000. Almost the entire City has an overlap
of high racial concentrations (those who identify as White) and high incomes resulting in RCAAs. Many
lower income housing sites have been identified throughout the City and within areas considered RCAAs.
Figure 3-4 and 3-5 below display the White majority tracts and median incomes throughout Newport
Beach.
112
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(September 2022 Final Housing Element)
Figure 3-4: Racially Concentrated Areas of Affluence (RCAA) – White Majority Tracts
Source: California Department of Housing and Community Development – AFFH Data Viewer
113
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(September 2022 Final Housing Element)
Figure 3-5: Racially Concentrated Areas of Affluence (RCAA) – Median Income
Source: California Department of Housing and Community Development – AFFH Data Viewer
114
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-75
(September 2022 Final Housing Element)
Disparities in Access to Opportunity
Access to Opportunities
The UC Davis Center for Regional Change and Rabobank partnered to develop the Regional Opportunity
Index (ROI) intended to help communities understand local social and economic opportunities. The goal
of the ROI is to help target resources and policies toward people and places with the greatest need to
foster thriving communities. The ROI incorporates both “people” and “place components, integrating
economic, infrastructure, environmental, and social indicators into a comprehensive assessment of the
factors driving opportunity.”
As shown in Figures 3-6 and Figure 3-7 below, the majority of the City of Newport Beach is classified as a
high opportunity zone. This indicates a high level of relative opportunities that people can achieve as well
as a high level of relative opportunities that Newport Beach provides. While most of the census tracts
within the City are areas of high opportunity, there are two census tracts within the ROI People Index
shown as yellow, identifying a low opportunity area. Together these areas contain 86 sites which
accommodate 1,941 potential units designated to meet the City’s RHNA for lower-income units (shown
in Section 3: Housing Resources and outlined in Appendix B). The Data for both regions with lower
opportunity show high civic life, health, transportation, economic and education access, however, both
show very low housing access. Therefore, the consideration and identification of these areas for housing,
affordable to low and very low-income households, will provide increased housing opportunity in high
opportunity and high resources areas.
115
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(September 2022 Final Housing Element)
Figure 3-6: Regional Opportunity Index: People, 2014
Source: UC Davis Center for Regional Change and Rabobank, 2014.
116
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(September 2022 Final Housing Element)
Figure 3-7: Regional Opportunity Index: Place, 2014
Source: UC Davis Center for Regional Change and Rabobank, 2014.
117
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(September 2022 Final Housing Element)
Additionally, Table 3-17 and Figure 3-8 below display the data for Regional Opportunity index in Newport
Beach overall compared to the State of California. The data shows the following key findings:
• The City has higher rates of college educated adults, high school graduation rates and higher levels
of UC and CSU eligibility. Additionally, the City has higher levels of Math and English proficiency.
However, the City has higher levels of truancy and discipline rates.
• Newport Beach residents experience significantly higher basic income levels and higher
employment rates. While the City has a higher job availability rate and job quality, overall, both
City and State job growth are similar. Newport Beach residents have higher rates of bank
accessibility (nearly double the state’s accessibility rates).
• Newport Beach and the State have the same rate of home ownership, but residents of Newport
Beach experience higher rates of cost burden. Housing adequacy and affordability are similar in
both the City and State, where California has a slightly higher rate of affordability.
• Mobility and transportation access are moderate in both Newport Beach and the State. Newport
Beach residents have a significantly higher commute times than the State’s median, this could be
due in part to a lack of public transit or the development patterns of coastal communities.
• Overall health and environmental opportunities are comparable to the State, the City’s air quality
is slightly lower than the States. Newport Beach has a slightly lower average of supermarket
availability, however a much higher rate of healthcare availability.
• Newport Beach has higher rates of US citizenship and English speakers, as well as a higher
percentage of voters compared to the State. However, Newport Beach has a slightly lower rate of
neighborhood stability
In summary, Newport Beach is a high opportunity area with quality education opportunities, high rates of
resident achievement, access to local and regional economic and employment opportunities, and high
rates of home ownership. However, the data shows that there are high rates of cost burden in the City
and slightly lower access to supermarkets and healthy foods. The City should focus on increasing access
to affordable housing options to reduce cost burden and aim to increase affordable healthy food access.
Table 3-17: Opportunity Indicators, Newport Beach and California
ROI Indicator Newport Beach California
Ed
u
c
a
t
i
o
n
People
College Educated Adults 70% 38%
Math Proficiency 87% 70%
English Proficiency 87% 65%
Elementary Truancy 34% 24%
Place
High School Graduation Rate 93% 83%
UC/CSU Eligibility 52% 41%
Teacher Experience 60% 36%
High School Discipline Rate 8% 6%
Ec
o
n
o
m
i
c
People
Employment Rate 93% 89%
Minimum Basic Income 85% 64%
Place
Job Availability 1302.07 701.75
118
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(September 2022 Final Housing Element)
ROI Indicator Newport Beach California
Job Quality 52% 40%
Job Growth 4% 3%
Bank Accessibility 0.44 0.24
Ho
u
s
i
n
g
People
Home Ownership 55% 55%
Housing Cost Burden 54% 52%
Place
Housing Adequacy 99% 91%
Housing Affordability 0.13 0.19
Mo
b
i
l
i
t
y
People
Vehicle Availability 96% 86%
Commute Time 74% 60%
Internet Access 4.96 4
He
a
l
t
h
/
E
n
v
i
r
o
n
m
e
n
t
a
l
Place
Infant Health 96% 95%
Birth to Teens 1% 7%
Years of Life Lost 18.27 29.84
Place
Air Quality 8.82 10.01
Prenatal Care 94% 83%
Access to Supermarket 47% 53%
Health Care Availability 4.61 1.76
Ci
v
i
c
L
i
f
e
People
Voting Rates 41% 31%
English Speakers 92% 88%
Place
US Citizenship 92% 83%
Neighborhood Stability 82% 85%
119
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(September 2022 Final Housing Element)
Figure 3-8: Regional Opportunity Index Newport Beach and California
Opportunity Areas
Additionally, the Department of Housing and Community Development (HCD) together with the California
Tax Credit Allocation Committee (TCAC) established the California Fair Housing Task Force to provide
research, evidence-based policy recommendations, and other strategic recommendations to HCD and
other related state agencies/departments to further the fair housing goals (as defined by HCD). The Task
Force developed the TCAC/HCD opportunity Area Maps to understand how public and private resources
are spatially distributed. The Task force defines opportunities as pathways to better lives, including health,
education, and employment. Overall, opportunity maps are intended to display which areas, according to
research, offer low-income children and adults the best chance at economic advancement, high
educational attainment, and good physical and mental health.
According to the Task Force’s methodology, the tool allocates the 20 percent of the tracts in each region
with the highest relative index scores to the “Highest Resource” designation and the next 20 percent to
the “High Resource” designation. Each region then ends up with 40 percent of its total tracts as “Highest”
or “High” resource. These two categories are intended to help State decision-makers identify tracts within
each region that the research suggests low-income families are most likely to thrive, and where they
typically do not have the option to live—but might, if given the choice. As shown in Figure 3-9 below,
nearly all of Newport Beach is classified as moderate, high, and highest resource. There is one census tract
in the Northwest Portion of Newport Beach classifies as low resource, the tracts scores identify high
economic resources and low educational resources.
0
20
40
60
80
100
120
Statewide Average Newport Beach
120
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-81
(September 2022 Final Housing Element)
Figure 3-9: TCAC/HCD Opportunity Area Maps, Newport Beach (2020)
Source: California Tax Credit Allocation Committee and Department of Housing and Community Development, 2020.
Access to neighborhoods with higher levels of opportunity can be more difficult due to discrimination and
when there may not be a sufficient range and supply of housing in such neighborhoods. In addition, the
continuing legacy of discrimination and segregation can impact the availability of quality infrastructure,
educational resources, environmental protections, and economic drivers, all of which can create
disparities in access to opportunity.
The Department of Housing and Urban Development (HUD) developed the opportunity indicators to help
inform communities about disparities in access to opportunity, the scores are based on nationally
available data sources and assess resident’s access to key opportunity assets in the City. Table 3-18
provides the index scores (ranging from zero to 100) for the following opportunity indicator indices:
• Low Poverty Index: The low poverty index captures poverty in a given neighborhood. The poverty
rate is determined at the census tract level. The higher the score, the less exposure to poverty in
a neighborhood.
• School Proficiency Index: The school proficiency index uses school-level data on the performance
of 4th grade students on state exams to describe which neighborhoods have high-performing
elementary schools nearby and which are near lower performing elementary schools. The higher
the score, the higher the school system quality is in a neighborhood.
• Labor Market Engagement Index: The labor market engagement index provides a summary
description of the relative intensity of labor market engagement and human capital in a
neighborhood. This is based upon the level of employment, labor force participation, and
121
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(September 2022 Final Housing Element)
educational attainment in a census tract. The higher the score, the higher the labor force
participation and human capital in a neighborhood.
• Transit Trips Index: This index is based on estimates of transit trips taken by a family that meets
the following description: a three-person single-parent family with income at 50% of the median-
income for renters for the region (i.e. the Core-Based Statistical Area (CBSA)). The higher the
transit trips index, the more likely residents in that neighborhood utilize public transit.
• Low Transportation Cost Index: This index is based on estimates of transportation costs for a
family that meets the following description: a three-person single-parent family with income at
50 percent of the median-income for renters for the region/CBSA. The higher the index, the lower
the cost of transportation in that neighborhood.
• Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential
neighborhood as a function of its distance to all job locations within a region/CBSA, with larger
employment centers weighted more heavily. The higher the index value, the better the access to
employment opportunities for residents in a neighborhood.
• Environmental Health Index: The environmental health index summarizes potential exposure to
harmful toxins at a neighborhood level. The higher the index value, the less exposure to toxins
harmful to human health. Therefore, the higher the value, the better the environmental quality
of a neighborhood, where a neighborhood is a census block-group.
Table 3-18 below displays the opportunity indices by race and ethnicity for persons in Newport Beach.
The table displays the following results:
• According to the data, there is low poverty among the population of Newport, across all
racial/ethnic groups.
• Additionally, the access to quality education system is high among all racial/ethnic groups (each
group has an opportunity index score above 80).
• The data shows the City offers high labor and economic opportunity as well as sufficient access to
transportation.
• While the data shows a high access to transportation, it also shows that the transportation is less
affordable, specifically to non-Hispanic Asian or Pacific Islander and Native American populations.
• The data also shows low environmental health index scores across all racial/ethnic groups, below
50.
• Households who earn below the poverty rate in Newport Beach have lower levels of opportunity
access across all indicators as well as race and ethnicities.
122
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(September 2022 Final Housing Element)
Table 3-18: Opportunity Indices by Race/Ethnicity, Newport Beach
(Newport Beach, CA
CDBG) Jurisdiction
Low
Poverty
Index
School
Proficiency
Index
Labor
Market
Index
Transit
Index
Low
Transportation
Cost Index
Jobs
Proximity
Index
Environmental
Health Index
Total Population
White, Non-Hispanic 81.31 90.17 82.88 86.59 75.16 90.40 41.36
Black, Non-Hispanic 78.86 89.72 81.85 86.92 76.61 90.54 40.65
Hispanic 79.04 88.93 81.76 86.93 76.81 89.82 40.55
Asian or Pacific
Islander, Non-
Hispanic
84.48 91.60 85.94 83.05 68.64 89.19 38.80
Native American,
Non-Hispanic 79.22 88.29 81.86 88.35 78.06 91.17 40.73
Population below federal poverty line
White, Non-Hispanic 78.99 89.20 83.30 87.76 78.81 90.38 43.27
Black, Non-Hispanic 78.71 86.38 78.21 89.58 85.43 87.99 48.46
Hispanic 82.46 87.75 81.41 88.28 77.88 89.87 41.76
Asian or Pacific
Islander, Non-
Hispanic
84.34 88.97 82.79 88.43 76.05 92.09 39.15
Native American,
Non-Hispanic 77.00 89.17 88.00 93.00 85.00 95.55 40.00
Source: Department of Housing and Urban Development, Affirmatively Furthering Fair Housing Online Mapping tool, Decennial
Census; ACS; Great Schools; Common Core of Data; SABINS; LAI; LEHD; NATA
Access to Education, Economic and Transit Opportunities
School Proficiency, Labor Market and Job Proximity
Table 3-19 below displays opportunity indicators based on school proficiency, labor market, and job
proximity. The City of Newport Beach has no Title I schools. Title I schools help low-achieving children
meet state standards in core academic subjects. These schools coordinate and integrate resources and
services from federal, state, and local sources. To be considered for Title 1 school funds, at least 40 percent
of the students must be considered low-income. Additionally, the data shows that the City has an annual
unemployment rate of 3.1%. Additionally, over 69.4 percent of residents has commute that is 30-minutes
or less. The City of Newport Beach provides a variety of economic opportunities for current and future
residents; however, the data shows there is little educational opportunities for lower achieving students.
123
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Table 3-19: Opportunity Indicator – School Proficiency, Labor Market, Job Proximity
Opportunity Indicator Newport Beach
School Proficiency
Total Title I Schools 0
Total Schools 12
% of Schools 0%
Unemployment Rate
Total Unemployed 1,408
Annual Rate 3.1%
Job Proximity
<29 mins. 69.4%
30-59 mins. 22.6%
60 mins. or more 8.1%
Source:
National Center for Education Statistics, public Schools Directory. Accessed October 29, 2021.
American Community Survey 2013-2017, S1701.
American Community Survey 2013-2017, S0801
Opportunity Indicators
The TCAC/HCD Opportunity Area Maps include education data, as illustrated in Figure 3-10. This data
represents opportunity levels based on the following four factors:
• Math proficiency – Percentage of 4th graders who meet or exceed math proficiency standards.
• Reading proficiency – Percentage of 4th graders who meet or exceed literacy standards.
• High school graduation rates – Percentage of high school cohort that graduated on time.
• Student poverty rate – Percentage of students not receiving free or reduced-price lunch.
Additionally, The TCAC/HCD Opportunity Area Maps include economic data, as illustrated in Figure 3-11.
This data represents opportunity levels based on the following five factors:
• Poverty – Percent of population with income above 200% of federal poverty line.
• Adult Education – Percent of adults with a bachelor's degree or above.
• Employment – Percent of adults aged 20-64 who are employed in the civilian labor force or in
the armed forces.
• Job Proximity – Number of jobs filled by workers with less than a BA that fall within a given
radius (determined by the typical commute distance of low-wage workers in each region) of
each census tract population-weighted centroid.
• Median Home Value - Value of owner-occupied units.
Figures 3-10 and 3-11 below display the geographic data for education and economic opportunity in
Newport Beach using the TCAC data detailed above. The data shows that nearly all of Newport Beach
census tracts show high positive education outcomes. High positive outcomes mean there are high testing
scores amongst elementary schoolers, high graduation rates and low poverty rates. Compared to the
124
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(September 2022 Final Housing Element)
region, coastal cities with higher median incomes show higher positive outcomes for education.
Additionally, the data shows that all census tracts in Newport Beach are high positive outcome. Similar to
the education data, positive outcomes are consistent in costal and high-income cities in Orange County.
125
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(September 2022 Final Housing Element)
Figure 3-10: TCAC – Education Score
Source: HCD AFFH Data Viewer, Accessed September 10, 2021vironmental Justice
126
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(September 2022 Final Housing Element)
Figure 3-11: TCAC – Economic Score
Source: HCD AFFH Data Viewer, Accessed September 10, 2021vironmental Justice
127
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-88
(September 2022 Final Housing Element)
Access to Transit
Access to transportation, specifically public transit provides households with affordable and
environmentally friendly commuting options. It can also increase accessibility to essential retail such as
grocers and markets as well as recreational activities and safe transit options for young adults and
children.
AllTransit explores metrics that reveal the social and economic impact of transit, specifically looking at
connectivity, access to jobs, and frequency of service. According to the data shown in Table 3-20, Newport
Beach scored a 3.9 AllTransit performance score, illustrating a low combination of trips per week and
number of jobs accessible that enable a moderate number of people to take transit to work. In total,
138,164 jobs are accessible within a 30-minute trip from Newport Beach, however just 0.55 percent of
commuters use transit. Additionally, AllTransit identified the following transit related statistics for
Newport Beach:
• 95.4 percent of all jobs in Newport Beach are located within ½ mile of transit
• There are 53,761 customer households within a 30-minute transit commute of local businesses
• 1.86 percent of workers in Newport Beach walk to work
• 1.02 percent of workers in Newport Beach bike to work
• 0 percent of low-income households live near transit
By comparison, Newport Beach scored lower than neighboring jurisdictions of Costa Mesa (5.4),
Huntington Beach (4.4), and Irvine (3.6), however slightly higher than Laguna Beach (3.8). Overall, the City
of Newport Beach has a lower AllTransit score than the County of Orange (3.9 in Newport Beach and 4.2
in the County).
Table 3-20: Opportunity Indicator – Transit
Jurisdiction
All Transit
Performance
Score
Transit Trips
Per Week
within 1/2 Mile
Jobs Accessible
in 30-min trip
Commuters Who
Use Transit
Transit Routes
within 1/2 Mile
Newport
Beach 3.9 410 138,164 0.55% 4
County of
Orange 4.2 528 172,595 2.28 4
Source: AllTransit, Transit Scores. Accessed October 29, 2021.
128
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(September 2022 Final Housing Element)
Figure 3-12: AllTransit Score, Newport Beach
Environmental Justice
The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening
methodology to help identify California communities disproportionately burdened by multiple sources of
pollution called the California Communities Environmental Health Screening Tool (CalEnviroScreen). In
addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous
materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight
infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include
educational attainment, linguistic isolation, poverty, and unemployment. Research has shown a
heightened vulnerability of people of certain ethnicities and lower socioeconomic status to environmental
pollutants.
The CalEnviro Model Is made up of a suite of 20 statewide indicators of pollution burden and population
characteristics associated with increased vulnerability to pollution’s health effects. The model uses the
follow analysis and calculation to identify areas which may create health risk:
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• Uses a weighted scoring system to derive average pollution burden and population characteristics
scores for each census tract.
• Calculates a final CalEnviroScreen score for a given census tract relative to the other tracts in the
state by multiplying the pollution burden and population characteristics components together.
• The score measures the relative pollution burdens and vulnerabilities in one census tract
compared to others and is not a measure of health risk.
Figure 3-13 below displays the results for the CalEnviroScreen in Newport Beach. The data shows that all
of Newport Beach is low to lowest scoring (light to dark green), meaning that throughout the City there is
low proximity or exposure to harmful pollutants. Compared to the region, majority of the coastal cities
are identified as low pollutant burdens. Cities to the east of Newport beach, such as Santa, Ana, Anaheim,
Orange, and Garden Grove experience higher rates of pollution burdens and exposure to harmful
pollutants. The discrepancy in pollution exposure could be related to cost of land. Land in Newport Beach
is significantly more expensive than land in Anaheim, Santa Ana and Garden Grove, therefore, warehouse
and industrial developers can buy larger lots of land for less money to accommodate manufacturing,
trucking, industrial parks and other uses which produces higher traffic and pollution.
130
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Figure 3-13: CalEnviroScreen 4.0, Newport Beach
Source: HCD AFFH Database, Accessed October 29,2021.
131
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(September 2022 Final Housing Element)
Discussion of Disproportionate Housing Needs
The analysis of disproportionate housing needs within Newport Beach evaluated existing housing need,
need of the future housing population, and units within the community at-risk of converting to market-
rate.
Future Growth Need
The City’s future growth need is based on the RHNA production of 1,456 very low and 930 low-income
units within the 2021-2029 planning period. Appendix B of this Housing Element shows the City’s ability
to meet its 2021-2029 RHNA need at all income levels. This demonstrates the City’s ability to
accommodate the anticipated future affordable housing needs of the community.
Existing Need
As described in Section 3.F.1 of this Housing Element, the Orange County Housing Authority administers
Section 8 Housing Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has
allocated 112 Section 8 vouchers to residents within the community: 30 for families, 20 for persons with
disabilities, and 62 for seniors.
Additionally, a variety of affordable housing opportunities currently exist in the City. In Orange County,
each category of publicly supported housing (public housing, Project Based Section 8, Other Multi-unit
Housing, Housing Choice Vouchers, and Low-Income Housing Tax Credit [LIHTC] units) is represented,
although that representation varies greatly depending on the individual municipality. Table 3-21 below
identifies the variety of publicly supported housing, by percent, in the City of Newport Beach.
Table 3-21 below displays the demographics of all publicly supported housing in Newport Beach. The data
shows that majority of persons who utilize and receive public housing support identify as White, with a
small percentage Hispanic or Asian/Pacific Islander.
Table 3-21: Publicly Supported Housing Demographics, Newport Beach
Housing Type White Black Hispanic Asian or Pacific
Islander
# % # % # % # %
Project-Based
Section 8 85 87.63% 0 0.00% 3 3.09% 9 9.28%
HCV Program 99 70.21% 14 9.93% 15 10.654% 13 9.22%
LIHTC 238 85.9% 8 1.99% 147 35.57% 12 2.99%
Total Households 32,490 84.94% 135 0.35% 2,485 6.6% 2,477 6.45%
Source: County of Orange, Analysis of Impediments
Notes: HVC = Housing Choice Voucher
LIHTC = Low-Income Housing Tax Credit
Housing Needs in Newport Beach
A variety of factors affect housing needs for different households. Most commonly, disability, household
income and households’ characteristics shape the type and size of housing units needed, as well as
accessibility based on existing units in a City. Tables 3-22 through 3-27 displayed data for demographic
characteristics of Newport Beach, as compared to the County of Orange and the State of California.
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Additional detailed analysis of the Newport Beach community demographics is outlined in Chapter 2:
Community Profile of this Housing Element.
Homelessness
People experiencing homelessness are those who do not have a fixed, regular, and adequate overnight
residence, or whose overnight residence is a shelter, street, vehicle, or enclosure or structure unfit for
habitation. Factors contributing to increases of homelessness may include the following:
• Lack available resources to support stable housing access
• Spikes in rent increase and lack of tenant protections
• Housing discrimination
• Evictions
• Lack of housing affordable to low- and moderate-income persons
• Increases in the number of persons whose incomes fall below the poverty level
• Reductions in public subsidies to the poor
• The deinstitutionalization of the mentally ill
According to the Orange County Point in Time report, in 2019 there were an estimate 64 unhoused
persons in Newport Beach. Overall, the 64 unhouse persons in Newport Beach in 2019 account for about
1.6 percent of the overall Orange County count of 3,961 persons. When contextualized with the total
number of people residing in Newport Beach, the 64 homeless individuals represent approximately .07
percent of the population. In neighboring jurisdictions, the point in time count of homeless persons in
2021 was:
• Huntington Beach: 349 persons
• Laguna Beach: 147 persons
• Irvine: 130 persons
• Costa Mesa: 193 persons
Data for 2020 and 2021 is not broken down by individual jurisdiction. However, in 2020 there were a total
of 3,017 persons experiencing homelessness in Orange County and 2,441 persons in 2021. The racial and
ethnic demographic data for unhoused persons in 2021 is not broken down by jurisdictions, however for
the 2,441 unhoused persons in the County, 10 percent experienced chronic homelessness. Additionally,
77 percent identified as White, 12 percent identified as Black, three (3) percent identified as American
Indian, less than one (1) persons identified as Native Hawaiian and 45 percent identified as Hispanic or
Latino. About 295 persons were seniors (60 years+) and about 102 persons were youth, 288 persons were
experiencing domestic violence and 162 persons were veterans. Of the persons living in shelters, 334
experience mental health conditions, 308 persons experience a physical disability, and 297 persons
recorded substance abuse.17
Disability
Table 3-22 displays the data for persons with disabilities in the City, County, and State. Overall, about 10
percent of the California population reported having at least one disability. In the City, about 8 percent of
17 Orange County Homeless Point-in-Time Count, Orange County Homeless Management Information Systems.
2019, 2020 and 2021. Accessed online: January 24, 2021.
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persons reported at least one disability. The County reported a higher percentage than the City at 8.5
percent. Of the 8 percent of Newport Beach residents who reported a disability, the majority were
independent living and ambulatory difficulties, which could be tied to the City’s senior population. Ease
of reasonable accommodation procedures and opportunity for accessible housing can provide increased
housing security for the population with disabilities.
Table 3-22: Population by Disability Type, Compared by Geography, 2019
Disability City of Newport Beach County of Orange California
Total with a Disability 8% 8.5% 10.6%
Hearing Difficulty 2.7% 2.5% 2.9%
Vision Difficulty 1.5% 1.5% 2%
Cognitive Difficulty 3.0% 3.4% 4.3%
Ambulatory Difficulty 3.7% 4.5% 5.8%
Self-care Difficulty 1.7% 2.2% 2.6%
Independent Living 3.6% 4.3% 5.5%
Source: American Community Survey, 5-Year Estimates, 2019.
The data in Figure 3-14 below displays data for disability status in Newport Beach by census tract. The
data shows that in Newport Beach most of the census tracts report under ten percent of the population
to have at least one disability. Some census tracts to the northwest show that between 10 and 20 percent
of the population report at least one disability. Overall, majority of the surrounding areas shows less than
10 percent of the population has reported at least one disability with some pockets of the region which
have a population between 10 and 20 that reports a disability.
134
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Figure 3-14: Persons with Disabilities
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
135
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(September 2022 Final Housing Element)
Income and Familial Status
Table 3-23 displays household type and income data for the State, County and City. Overall, the City has
a smaller percentage of family households than the County and State; this includes family households,
married-couple family households, and those with children. Of the three jurisdictions, the City has the
largest percentage of non-family households (42.2 percent, compared to 28.3 at approximately 2 percent
more than Orange County and about 6 percent more than the City. The City has a higher percentage of
households with at least one senior over the age of 60 as compared to the state (29.2 percent) but a lower
percentage than the County (39.9 percent).
Table 3-23: Population by Familial Status, Compared by Geography, 2019
Familial Status City of Newport Beach County of Orange California
Total Households 37,605 1,037,492 13,044,266
Family Households 57.7% 71.7% 68.7%
Married-Couple Family Households 49.6% 54.9% 49.8%
With Children 21.1% 30.9% 34%
Non-Family Households 42.2% 28.3% 31.3%
Households with one or more people 60 years+ 35.5% 39.9% 29.2%
Female Headed Households, No Spouse Present
with Children
Source: American Community Survey, 5-Year Estimates. 2019
The data in Figure 3-15 and Figure 3-16 below shows living arrangements of children by census tract in
Newport. Figure 3-15 shows the percent of children in married couple households by census tract in
Newport Beach. The data shows that most census tracts have children living in married couple households
(above 80 percent per tract). There are few pockets adjacent to Costa Mesa and along the coast that show
children living in married couple households where the census tract is between 60 and 80 percent. Figure
3-16 shows the percent of children in female headed households with no spouse/partner by census tract
in Newport. The data shows that most children are not in female headed households with no spouse and
children present where the census tract shows less than 20 percent. There is one census tract where there
is between 60 and 80 percent of children living in female headed households with no spouse/partner.
136
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Figure 3-15: Married Couple Households with Children
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
137
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(September 2022 Final Housing Element)
Figure 3-16: Female Headed Households, No Spouse/Partner Present with Children
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021
138
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(September 2022 Final Housing Element)
Regarding household income, the City had a significantly higher median household income than the
County and State in 2019 ($127,223 in the City compared to $90,234 in the County and $75,235 in the
State). As Table 3-24 shows, majority of the City’s households are higher earning; in total 70.4 percent of
households in Newport Beach earn more than the State median-income. Additionally, over 30 percent of
households in Newport Beach earn $200,000 or more annually. In the state, nearly 38 percent of
households earn $100,000 or more and 45.2 percent in the County of Orange. Just under 20 percent of
City residents earn less than $50,000 annually, compared to 27 percent and 34 percent for the County
and State, respectively.
Table 3-24: Households by Income, Compared by Geography, 2019
Households Income City of Newport Beach County of Orange California
Less than $10,000 3.8% 4.2% 4.8%
$10,000-$14,999 2.5% 2.7% 4.1%
$15,000-$24,999 4.3% 5.6% 7.5%
$25,000-$34,999 3.6% 6.0% 7.5%
$35,000-$49,999 5.7% 8.8% 10.5%
$50,000-$74,999 9.8% 14.6% 15.5%
$75,000-$99,999 10.1% 12.8% 12.4%
$100,000-$149,999 16.7% 18.6% 16.6%
$150,000-$199,999 10.8% 11.1% 8.9%
$200,000 or More 32.8% 15.5% 12.2%
Median-Income $127,223 $90,234 $75,235
Source: American Community Survey, 5-Year Estimates, 2019
Figure 3-17 shows median household income by block group in Newport Beach. The data shows that
Newport Beach range at different median income levels. There is a large number of block groups in the
southern portion and along the coast of Newport Beach whose median income for households is greater
than $125,000. There are block groups in the northern areas of Newport Beach ranging from less than
$55,000 and less than $125,000.
139
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(September 2022 Final Housing Element)
Figure 3-17: Median Income for Households in Newport Beach
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
140
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(September 2022 Final Housing Element)
Overpayment
Table 3-25 displays data for households experiencing overpayment or cost burden in the State, County
and City. Housing Cost burden has a number of consequences for a household, mainly displacement from
their existing living situation creating limited access essential goods and often employment by potentially
increasing commute times. Overall, the percentage of households that experience a cost burden greater
than 30 percent is similar amongst the City, County, and State with all three reporting about 75 to 80
percent. The City has a slightly higher percentage of households that have a high-cost burden over 50
percent (21.4 percent in the City, compared to about 19 percent in the County and State). Increased
opportunity for affordable housing and housing assistance funds help to prevent cost burden on
households.
Table 3-25: Households by Overpayment, Compared by Geography
Overpayment/Cost Burden City of Newport Beach County of Orange California
Cost Burden > 30% 76.3% 79.3% 79.2%
Cost Burden > 50% 21.4% 19.3% 19.4%
Cost Burden Not Available 2.1% 1.4% 1.4%
Source: Consolidated Planning/CHAS Data, 2013- 2017.
Figure 3-18 and displays Figure 3-19 the housing costs as a percentage of household income, specifically
overpayment by homeowners and overpayment by renters, by census tract in Newport Beach. The data
shows that most homeowners and renters in Newport Beach overpay for housing. Figure 3-18 shows most
areas are between 20 percent and 60 percent of homeowners with mortgages whose monthly costs are
30 percent or more of their household income. There is a census tract where the overpayment of
homeowners is shown at above 80 percent. Figure 3-19 shows most areas are between 20 and 60 percent
of renter households whom gross rent is 30 percent or more of their household income.
141
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(September 2022 Final Housing Element)
Figure 3-18: Overpayment by Homeowners
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
142
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(September 2022 Final Housing Element)
Figure 3-19: Overpayment by Renters
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
143
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(September 2022 Final Housing Element)
Overcrowding and Tenure
Table 3-26 displays data for household tenure (owner vs. renter) for the State, County and City.
Homeownership is a crucial foundation for helping families with low-income to build strength, stability
and independence. The opportunity for transition into the homebuyer’s market is important for persons
and households in different communities, homeownership allows for increased stability and opportunity
to age in place. Table 3-26 shows that the City has a comparable rate of homeownership to the County
and a slightly lower ownership rate that the State.
Table 3-26: Households by Tenure, Compared by Geography, 2019
Household Tenure City of Newport Beach County of Orange California
Owner Households 56.7% 57.4% 66.0%
Renter Households 43.3% 42.6% 34.0%
Total Occupied Housing Units 37,605 1,037,492 13,044,266
Source: American Community Survey, 5-Year Estimates, 2019.
Additionally, Table 3-27 displays data for overcrowding in the State, County and City. Overcrowding is
defined as between 1.01 and 1.5 persons per room in a household, and severe overcrowding is defined as
more than 1.51 persons per room. Overcrowding often occurs when nonfamily members combine
incomes to live in one household, such as college students and roommates, it also occurs when there are
not enough size appropriate housing options for large or multigenerational families. The City experiences
very low rates of overcrowding in comparison to the County and the State. According to the data,
overcrowding occurs more frequently in renter households rather than owner households. In Newport
Beach, owner households that are severely overcrowded represent 0 percent of all households, while
severely overcrowded renter households represent 0.3 percent. In the County and state a trend similar in
the County and State.
Table 3-27: Households by Overcrowding, Compared by Geography
Overcrowding and Tenure City of Newport Beach County of Orange California
Owner Households
Overcrowded 0.5% 2.6% 1.6%
Severely Overcrowded 0% 1.0% 0.6%
Renter Households
Overcrowded 3.1% 9.8% 3.6%
Severely Overcrowded 0.3% 6.0% 2.4%
Source: American Community Survey, 5-Year Estimates, 2019.
Figure 3-20 and Figure 3-21show overcrowded households and severely overcrowded households,
respectively. The data from these figures shows that overcrowded households is not a precedent issue
for Newport Beach. Figure 3-20 shows that all the census tracts in Newport Beach is less than the
statewide average for overcrowded households.
144
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(September 2022 Final Housing Element)
Figure 3-20: Households Experiencing Overcrowding
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
145
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-106
(September 2022 Final Housing Element)
Figure 3-21: Households Experiencing Severe Overcrowding
Source: HCD AFFH Database, American Community Survey. Accessed November 3, 2021.
146
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-107
(September 2022 Final Housing Element)
Housing Stock in Newport Beach
Table 3-28 displays comparative housing stock data for the State, County and City. Table 3-28 below
shows data for occupied housing units by type. A variety of housing stock provides increased opportunity
in communities for different size and households types. The majority of housing stock in Newport Beach
is classified as one-unit-detached housing, or single-family housing. Just under 18 percent of Newport
Beach homes include 20 or more units, referred to as multi-family housing. In comparison to the County
Orange has a greater amount of single-family homes, and an overall smaller number multi-family housing
(2 or more units).
Table 3-28: Occupied Housing Units by Type, Compared by Geography
Housing Unit Type City of Newport Beach County of Orange California
1, detached 48.4% 50.6% 57.7%
1, attached 15.1% 12.3% 7.0%
2 units 4.8% 1.6% 2.4%
3 or 4 units 4.5% 6.9% 5.5%
5 to 9 units 4.4% 6.7% 6.0%
10 to 19 units 3.5% 5.4% 5.2%
20 or more units 17.9% 13.7% 12.3%
Mobile home or other type of housing 1.3% 2.7% 3.7%
Source: American Community Survey, 5-Year Estimates, 2019.
Table 3-29 below displays housing stock by year built or the City, County, and State. A factor used to
determine housing condition is the age and state of the home. Older housing generally requires more
upkeep, regular maintenance and can cause a cost burden on both renters and homeowners. Majority of
Newport Beach’s housing stock was built between 1960 and 1999. Development shows to have slowed
significantly in the City after 2010, which could be indicative of the Great Recession. Majority of the
County’s and State’s housing units were built between 1980 and 2009 whereas the distribution of
development was more dispersed from 1950 to 1990 in the State. Majority of Newport Beach’s homes
are over between 40 and 70 years old, built between 1950 and 1979 (53.4 percent). Homes over 50 years
old have an increased likelihood of needing more major repairs to key systems and building components.
Therefore, these homes are at a higher risk of needing repair or replacement. Overall, increased numbers
of older housing which is not maintained can lead to cost burden and substandard living conditions.
Table 3-29: Housing Unit by Type, Compared by Geography
Year Built City of Newport Beach County of Orange California
Built 2014 or later 1.6% 2.7% 1.7%
Built 2010 to 2013 1.7% 2.0% 1.7%
Built 2000 to 2009 10.4% 8.3% 11.2%
Built 1990 to 1999 14.3% 11.7% 10.9%
Built 1980 to 1989 10.9% 14.9% 15.0%
Built 1970 to 1979 22.7% 23.3% 17.6%
Built 1960 to 1969 19.8% 19.5% 13.4%
Built 1950 to 1959 10.9% 13.0% 13.4%
147
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Year Built City of Newport Beach County of Orange California
Built 1940 to 1949 3.6% 2.1% 5.9%
Built 1939 or earlier 4.1% 2.5% 9.1%
Source: American Community Survey, 5-Year Estimates, 2019.
Substandard units are those in need of repair or replacement. Based on 2019 ACS data, one (1) percent
of housing units in Newport Beach display substandard conditions. Approximately .03 percent of housing
units lack complete plumbing facilities and .08 percent lack complete kitchen facilities. Based on this data,
at a minimum 377 units (1 percent) within Newport Beach are substandard and in need of rehabilitation.
In the Orange County Area, 1.5 percent of homes are considered substandard, lacking complete kitchen
or plumbing facilities. The current distribution of the age of homes in Newport Beach also indicates that
a majority of homes in the City were built prior to the 1990 Americans with Disabilities Act (ADA), which
may result in a lack of accessible homes for those residents experiencing a disability. The City’s older
housing stock also reflects a rapidly gaining need to rehabilitate housing to meet minimum livability and
quality requirements, which is a barrier to many homeowners and residents in Newport who have a lower
income or a fixed income. However, the City of Newport Beach is moderate and above moderate income,
therefore, substandard housing and units in need of rehabilitation may be passed on to renters with
moderate to lower incomes.
Displacement Risk
The potential for economic displacement risk can result from a variety of factors, including large-scale
development activity, neighborhood reinvestment, infrastructure investments, and changes in local and
regional employment opportunity. Economic displacement can be an inadvertent result of public and
private investment, where individuals and families may not be able to keep pace with increased property
values and market rental rates.
Urban Displacement
The Urban Displacement Project developed a neighborhood change database to map neighborhood
transformations and identify areas vulnerable to gentrification and displacement. This data was
developed to assist local decision makers and stakeholders better plan for existing communities and
provide additional resources to areas in need or at-risk of displacement and gentrification. Table 3-30
provides the criteria used to identify each displacement typology and the total number of Newport Beach
Census Tracts that currently fall within each category.
Table 3-30: Displacement Typology Criteria and Newport Beach Census Tracts
Modified Types and Criteria Newport Beach Census
Tracts
Low-Income/Susceptible to Displacement
• Low or mixed low-income tract in 2018. None
Ongoing Displacement of Low-Income Households
• Low or mixed low-income tract in 2018.
• Absolute loss of low-income households, 2000-2018.
None
At Risk of Gentrification None
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(September 2022 Final Housing Element)
Modified Types and Criteria Newport Beach Census
Tracts
• Low or mixed low-income tract in 2018.
• Housing affordable to low or mixed low-income households in 2018.
• Didn’t gentrify 1990-2000 OR 2000-2018.
• Marginal change in housing costs OR Zillow home or rental value
increases in the 90th percentile between 2012-2018.
• Local and nearby increases in rent were greater than the regional
median between 2012-2018 OR the 2018 rent gap is greater than the
regional median rent gap.
Early/Ongoing Gentrification
• Low or mixed low-income tract in 2018.
• Housing affordable to moderate or mixed moderate-income
households in 2018.
• Increase or rapid increase in housing costs OR above regional median
change in Zillow home or rental values between 2-12-2018.
• Gentrified in 1990-2000 or 2000-2018.
None
Advanced Gentrification
• Moderate, mixed moderate, mixed high, or high-income tract in
2018.
• Housing affordable to middle, high, mixed moderate, and mixed
high-income households in 2018.
• Marginal change, increase, or rapid increase in housing costs.
• Gentrified in 1990-2000 or 2000-2018.
None
Stable Moderate/Mixed Income
• Moderate, mixed moderate, mixed high, or high-income traact in
2018.
None
At Risk of Becoming Exclusive
• Moderate, mixed moderate, mixed high, or high-income traact in
2018.
• Housing affordable to middle, high, mixed moderate, and mixed high-
income households in 2018.
• Marginal change or increase in housing costs.
None
Becoming Exclusive
• Moderate, mixed moderate, mixed high, or high-income traact in
2018.
• Housing affordable to middle, high, mixed moderate, and mixed high-
income households in 2018.
• Rapid increase in housing costs.
• Absolute loss of low-income households, 2000-2018.
• Declining low-income in-migration rate, 2012-2018.
• Median income higher in 2018 than in 2000.
None
Stable/Advanced Exclusive
• High-income tract in 2000 and 2018
• Affordable to high or mixed high-income households in 2018.
• Marginal change, increase, or rapid increase in housing costs.
6059062604
6059062643
6059062702
6059062800
6059062645
6059062642
6059062644
6059063500
6059062900
6059063400
6059063302
6059063009
6059062612
6059062630
149
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-110
(September 2022 Final Housing Element)
Modified Types and Criteria Newport Beach Census
Tracts
6059063008
6059063007
6059063004
6059063006
6059062631
6059062629
6059063103
High Student Population None
Source: Urban Displacement Project, University of California Berkeley (2021).
Table 3-30 and Figure 3-22 show that all of Newport Beach is considered stable/advanced exclusive.
Stable advanced exlusive means the households in the census tracts have high and above moderate
incomes and that there is either little change in the cost of housing or rapid increases. Stable exclusive
areas also means that it is very difficult for lower and moderate income hosueholds to partake in the
housing market through ownership, and there is little mobility and fewer options in terms of rentership.
The City of Newport Beach is one of the highest income cities in the County, consistent with income data
for many coastal cities in Southern California, particularly Orange County. Paired with high costs of land
and increasing costs of contruction materials and labor, the housing market and cost of housing in
Newport Beah will likely contiue to increase. Affordable housing through density bonus and partnerhsip
with affordable developers is the key way to increase housing equity in Newport Beach. Additionally, the
creation of accessory dwelling units can provide less costly housing opportunities within the City that
would be available to a broader demographic.
150
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-111
(September 2022 Final Housing Element)
Figure 3-22: Urban Displacement Typologies, Newport Beach
Source: Urban Displacement Project, University of California Berkeley (2021).
151
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-112
(September 2022 Final Housing Element)
Table 3-31 below identifies the assisted and affordable housing units within the City of Newport Beach
and identifies the end date of each covenant. According to the table, 4 locations (with a total of 112 units)
were up for renewal in the previous planning period (2014-2021). Additionally, 3 locations, with a total of
45 units are set to expire and be addressed for renewal over the next planning period (2021-2029).
The City of Newport Beach is committed to working with property owners and utilizing appropriate funds,
as available, to review covenants set to expire for renewal.
Table 3-31: City of Newport Beach Assisted (and Affordable) Housing Summary
Project Name/ Location Type of Assistance Received Earliest Possible
Date of Change
Number of
Units/Type
Newport Harbor Apartments
1538 Placentia Avenue
Section 8 (rental assistance vouchers)
Density Bonus
Community Development Block
Grant (CDBG)
2020 26 Low-Income
Newport Harbor II Apartments
1530 Placentia Avenue
Section 8 Density Bonus CDBG
In-Lieu Fee Funds 2023 10 Low-Income
4 Very Low-Income
Newport Seacrest Apartments
843 15th Street
Section 8 CDBG
Fee Waivers Tax Credit Financing 2016 20 Very Low-Income
45 Low-Income
Pacific Heights Apartments 881-
887 W. 15th Street Section 8 Density Bonus 2019 7 Low-Income
Newport Seashore Apartments
849 West 15th Street Section 8 Fee Waivers 2018 15 Low-Income
Newport Seaside Apartment
1544 Placentia
Section 8 CDBG
Fee Waivers 2017 25 Very Low-Income
Seaview Lutheran Plaza (Seniors)
2800 Pacific View Drive
Section 202 (federal grant)
Section 8 2039
100 Extremely Low
and Very Low–
Income Senior
Villa del Este
401 Seaward Road _ 2026 2 Moderate-Income
(ownership)
Villa Siena 2101 15th Street Density Bonus 2021 3 Moderate-Income
(ownership)
Bayview Landing (Seniors) 1121
Back Bay Drive
In-lieu Fee Funds Fee Waivers
Tax Credit Financing 2056 24 Very Low
95 Low-Income
Cost of Replacement Analysis
In general, the cost for new land in the City cost about $115/square foot, per market research (noted in
Section 3.A.1). The actual construction cost for residential development ranges from $118/square foot up
to $131/square foot. The total replacement cost for the at-risk units identified in Table 3-31 are
summarized below
• The cost for replacing the 65-unit Newport Seacrest Apartments would total more than
$12,499,600. This cost assumes that 1.5 acres of land will be required, and each unit will have a
total floor area of 650 square feet (1-bedroom units). The land cost will be approximately
$7,514,100 (assuming $115/square foot) while the construction cost will be approximately
$4,985,500 (assuming $118/square foot for a 650-square foot unit= $76,700/unit).
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• The cost of replacing the 7-units in the Pacific Heights Apartments would total more than
$1,789,550. This cost assumes that 0.25 acres of land will be required, and each unit will have a
total floor area of 650 square feet (1- bedroom). The land cost will be approximately $1,252,350
(assuming $115/square foot) while the construction cost will be approximately $536,900
(assuming $118/square foot for a 650-square foot unit=$76,700/unit).
• The cost of replacing the 15 units in Newport Seashore Apartments would total more than
$3,655,200. This cost assumes that 0.5 acres of land (average 650 square feet per dwelling unit)
will be required and each unit will have a total floor area of 650 square feet (1-bedroom units).
The land cost will be approximately $2,504,700 (assuming $115/square foot) while the
construction cost will be approximately $1,150,500 (assuming $118/square foot for a 650-square
foot unit= $76,700/unit).
• The cost of replacing the 25 units in Newport Seaside Apartments would total more than
$4,422,200. This cost assumes that .5 acres of land (average 650 square feet per dwelling unit)
will be required and each unit will have a total floor area of 650 square feet (1-bedroom units).
The land cost will be approximately $2,504,700 (assuming $115/square foot) while the
construction cost will be approximately $1,917,500 (assuming $118/square foot for a 650-square
foot unit= $76,700/unit).
• The cost of replacing the 5 units for ownership in Villa del Este and Villa Siena developments would
total more than $1,809,100. This cost assumes that 0.25 acres of land (average 850 square feet
per dwelling unit) will be required and each unit will have a total floor area of 850 square feet
(2-bedroom units). The land cost will be approximately $1,252,350 (assuming $115/square foot)
while the construction cost will be approximately $556,750 (assuming $131/square foot for an
850-square foot unit= $111,350/unit).
To address the risk of affordable units converting to market rate housing, the City has identified Programs
5A and 5C to monitor these units. The City will actively work to create programs and seek additional
funding in which the focus is to preserve these units beyond the expiration of the covenant so that the
owners are able to have affordable housing options.
Resources to Preserve At-Risk Units
A variety of programs exist to help cities acquire, replace, or subsidize at-risk affordable housing units.
The following summarizes financial resources available:
• Community Development Block Grant (CDBG) – CDBG funds are awarded to cities on a formula
basis for housing activities. The primary objective of the CDBG program is the development of
viable communities through the provision of decent housing, a suitable living environment and
economic opportunity for principally low- and moderate-income persons. Eligible activities
include administration, fair housing, energy conservation and renewable energy sources,
assistance for economic development, public facilities and improvements and public services.
• HOME Investment Partnership – Local jurisdiction can receive funds by formula from the
Department of Housing and Urban Development (HUD) to increase the supply of decent, safe,
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sanitary, and affordable housing to lower income households. Eligible activities include housing
acquisition, rehabilitation, and development, homebuyer assistance, and rental assistance.
• Section 8 Rental Assistance Program – The Section 8 Rental Assistance Program provides rental
assistance payments to owners of private, market rate units on behalf of very low-income tenants,
senior citizens, disabled and/or handicapped persons, and other individuals for securing
affordable housing.
• Section 202/811 Program – Non-profit and consumer cooperatives can receive no-interest capital
advances from HUD under the Section 202 program for the construction of very low-income rental
housing with the availability of supportive services for seniors and persons with disabilities. These
funds can be used in conjunction with Section 811, which can be used to develop group homes,
independent living facilities and immediate care facilities. The capital advance funding can also
provide project rental assistance for the properties developed using the funds. Eligible activities
include acquisition, rehabilitation, new construction, and rental assistance.
• California Housing Finance Agency (CalHFA) Multifamily Programs – CalHFA’s Multifamily
Programs provide permanent financing for the acquisition, rehabilitation, and preservation or
new construction of rental housing that includes affordable rents for low- and moderate-income
families and individuals. One of the programs is the Preservation Loan program which provides
acquisition/rehabilitation and permanent loan financing designed to preserve or increase the
affordability status of existing multifamily housing projects.
• Low-Income Housing Tax Credit (LIHTC) – This program provides tax credits to individuals and
corporations that invest in low-income rental housing. Tax credits are sold to those with high tax
liability and proceeds are used to create housing. Eligible activities include new construction,
rehabilitation, and acquisition of properties.
• California Community Reinvestment Corporation (CCRC) – The California Community
Reinvestment Corporation is a multifamily affordable housing lender whose mission is to increase
the availability of affordable housing for low-income families, seniors, and residents with special
needs by facilitating private capital flow from its investors for debt and equity to developers of
affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of
properties.
Qualified Entities to Preserve At-Risk Units
The following organizations may potentially assist in preserving future at-risk units:
• Jamboree Housing Corporation
• Irvine Housing Opportunities, Inc.
• Bridge Housing Corporation
• The Irvine Company
• Orange County Housing Authority
• Housing Corporation of America
• Southern California Housing Development Corporation
• Century Housing
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Quantified Objectives
Housing Element law requires that cities establish the maximum number of units that can be preserved
over the planning period. The City’s objective it to preserve the 52 affordable housing units “at-risk” of
converting to market rate through policy programs provided in Section 4.
Urban Displacement Analysis
The UC Berkeley Urban Displacement projects provides a database for Los Angeles, Orange and San Diego
Counties displaying gentrifications and socioeconomic indicators based on 2015 ACS data. The final (2018)
version of the database shows whether each Census tract comprising these three Southern California
counties gentrified between 1990 and 2000; gentrified between 2000 and 2015; gentrified during both of
these periods; or exhibited characteristics of a “disadvantaged” tract that did not gentrify between 1990
and 2015. The outcome of the data is a map which displays displacement typology by census tract
(outlined below).
Low Income/Susceptible to
Displacement:
• Low or mixed low-income tract in 2018
Ongoing Displacement of
Low-Income Households:
• Low or mixed low-income tract in 2018
• Absolute loss of low-income households, 2000-2018
At Risk of Gentrification:
• Low-income or mixed low-income tract in 2018
• Housing affordable to low or mixed low-income households in
2018
• Didn't gentrify 1990-2000 OR 2000-2018
• Marginal change in housing costs OR Zillow home or rental
value increases in the 90th percentile between 2012-2018
• Local and nearby increases in rent were greater than the
regional median between 2012-2018 OR the 2018 rent gap is
greater than the regional median rent gap
Early/Ongoing Gentrification:
• Low-income or mixed low-income tract in 2018
• Housing affordable to moderate or mixed moderate-income
households in 2018
• Increase or rapid increase in housing costs OR above regional
median change in Zillow home or rental values between 2012-
2018
• Gentrified in 1990-2000 or 2000-2018
Advanced Gentrification
• Moderate, mixed moderate, mixed high, or high-income tract in
2018
• Housing affordable to middle, high, mixed moderate, and mixed
high• income households in 2018
• Marginal change, increase, or rapid increase in housing costs
• Gentrified in 1990-2000 or 2000-2018
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Stable Moderate/Mixed
Income:
• Moderate, mixed moderate, mixed high, or high-income tract in
2018
Risk of Becoming Exclusive:
• Moderate, mixed moderate, mixed high, or high-income tract in
2018
• Housing affordable to middle, high, mixed moderate, and mixed
high• income households in 2018
• Marginal change or increase in housing costs
Becoming Exclusive:
• Moderate, mixed moderate, mixed high, or high-income tract in
2018
• Housing affordable to middle, high, mixed moderate, and mixed
high• income households in 2018
• Rapid increase in housing costs
• Absolute loss of low-income households, 2000-2018
• Declining low-income in-migration rate, 2012-2018
• Median income higher in 2018 than in 2000
Stable/Advanced Exclusive:
• High-income tract in 2000 and 2018
• Affordable to high or mixed high-income households in 2018
• Marginal change, increase, or rapid increase in housing costs
Figure 3-23 below displays the mapped displacement typology for Newport Beach. The data shows that
nearly all of Newport Beach is considered Stable/Advanced Exclusive, furthering previous conclusions that
the City is an overall high income and high-cost City to live in.
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Figure 3-23: Displacement Risk, Newport Beach
Source: UC Berkeley, Urban Displacement Project, “Mapping Neighborhood Change in Southern California.” Accessed November 4, 2021
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(September 2022 Final Housing Element)
SB 330
Effective January 1, 2020, Senate Bill 330 (SB 330) aims to increase residential unit development, protect
existing housing inventory, and expedite permit processing. Under this legislation, municipal and county
agencies are restricted in ordinances and policies that can be applied to residential development. The
revised definition of “Housing Development” now contains residential projects of two or more units,
mixed-use projects (with two-thirds of the floor area designated for residential use), transitional,
supportive, and emergency housing projects. SB330 sets a temporary 5-year prohibition of residential
density reduction associated with a “housing development project,” from January 1, 2020, to
January 1, 2025. For example, during this temporary prohibition, a residential triplex cannot be
demolished and replaced with a duplex as this would be a net loss of one unit.
None of the housing strategy sites contain significant existing housing with low-income tenants who will
be displaced if the sites redevelop. To the extent that there is existing housing, all housing must be
replaced (Government Code Section 66300).
The City of Newport Beach has developed an informative webpage on SB 330 available for the public. The
State has also adopted just cause eviction provisions and statewide rent control to protect tenants from
displacement. The City is committed to making diligent efforts to engage underrepresented and
disadvantaged communities in studying displacement.
Assessment of Contributing Factors to Fair Housing Issues in Newport
Beach
The AI identifies the following regional goals for mitigating impediments to fair housing within jurisdictions
in Orange County:
• Goal 1: Increase the supply of affordable housing in high opportunity areas.1
• Goal 2: Prevent displacement of low- and moderate-income residents with protected
characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with
disabilities
• Goal 3: Increase community integration for persons with disabilities.
• Goal 4: Ensure equal access to housing for persons with protected characteristics, who are
disproportionately likely to be lower-income and to experience homelessness.
• Goal 5: Expand access to opportunity for protected classes.
Summary of Fair Housing Analysis
The Housing Element programs incorporate these recommended goals as they relate to Newport Beach.
The analysis above regarding other fair housing issues within Newport Beach yields the following results:
• The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity
index. However, those who identify as Native Hawaiian, Asian, American Indian, Black and Some
Other Race experience moderate levels of segregation (a dissimilarity index of greater than 30).
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While there are no groups experience high segregation, the City should focus on the needs and
targeted outreach to the populations experiencing moderate segregation.
• The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified
by HUD. This indicates that there are no census tracts within Newport Beach with a non-white
population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40%
or is three or more times the average tract poverty rate for the metropolitan/micropolitan area.
However, one R/ECAP was identified in the neighboring city of Irvine, near the University of
California Irvine. This will be considered in the housing plan as students within the R/ECAP may
look for housing in Newport Beach.
• The UC Davis Regional Opportunity Index shows that the majority of residents within Newport
Beach have a high level of access to opportunity throughout the majority of the City, with only
two census tracts showing a moderate level of access to opportunity. No census tracts were
shown as having the lowest level of access to opportunity. The City should focus on increasing
resources, housing opportunity and encourage economic development in these areas.
• The analysis of the TCAC/HCD opportunity Area Maps show that most census tracts in Newport
Beach are classified with the “Moderate Resource” “High Resource” or “Highest Resource”
designation. This indicates that these census tracts are within the top forty percent in the region
in terms of areas that lower-income residents may thrive if given the opportunity to live there. All
but two census tracts within Newport Beach register within the top 20 percent in the index. One
census tract registered as a “Low Resource” area, citing high economic opportunity and low
educational opportunity.
The Opportunity Indices identify overall high access to quality resources including economic and job
proximity, educational access, and transportation access. However, there is a low health index, indicating
increased pollution and low environmental quality across all racial/ethnic groups in the City. Additionally,
the opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander
(Non-Hispanic) and Native American (Non-Hispanic).
Key Findings from Fair Housing Analysis
As a part of the Housing Element, the City considers protected class (such as race, ethnicity, income, etc.)
and opportunity indicators as key factors in fair housing. Federal, state, and local data provide regional
context, background information and supportive data which helps the City to understand fair housing
issues and to identify key fair housing factors for Newport Beach. The section below uses available data
to identify key trends and local contributing factors for fair housing, key themes identified through this
analysis are stated below:
• Persons who identify as Native Hawaiian or Other experience the moderate levels of segregation
with persons who identify as White in the City of Newport Beach.
• The City has twelve census tracts characterized as Racially Concentrated Areas of Affluence
(RCCA) and no R/ECAPs.
• Residents of Newport Beach are more likely to experience high housing cost burden as
homeowners.
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• Persons who earn incomes below the poverty rate are more likely to have lower access to
opportunities as indicated by the Opportunity Indices analysis.
Local Contributing Factors to Fair Housing
There are a number of factors and elements that contribute to and cause fair housing issues. The following
lists a number of contributing factors within the City of Newport Beach:
• Opportunities for Persons with Disabilities – The analysis shows disability and access as possible
fair housing issues in Newport Beach. In comparison to Figure D-14, the City shows a moderate
portion of residents report at least one disability (10 percent) as well as some census tracts
reporting 10-20 percent having a disability. While the City is considered a high opportunity area,
residents with disabilities may have lower access to resources and information. Housing Goals #3:
Increase community integration for persons with disabilities, Housing Goal #4: Ensure equal
access to housing for persons with protected characteristics, who are disproportionately likely to
be lower-income and to experience homelessness, and Housing Goal #5: Expand access to
opportunity for protected classes.
• Expansion of Opportunities in Lower Resource Areas – While the City of Newport Beach is
considered a moderate to high resource region, some parts of the City are characterized as lower
opportunity zones as depicted in Figure 3-6. When compared to the CalEnviroScreen map in
Figure 3-13, the low resource areas align with regions identified at the highest degree of pollution
burdens. Various Housing Programs have been adopted to ensure opportunities for residents in
low opportunity areas. Housing Goal #5: Expand access to opportunity for protected classes.
Analysis of Sites Pursuant to AB 686
AB 686 requires that jurisdictions identify sites throughout the community in a manner that is consistent
with its duty to affirmatively further fair housing. The site identification requirement involves not only an
analysis of site capacity to accommodate the RHNA (provided in Appendix B), but also whether the
identified sites serve the purpose of replacing segregated living patterns with truly integrated and
balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of
opportunity.
Figures 3-24 through 3-26 below identify the sites to accommodate future housing, as identified in the
adequate sites analysis, overlaid on demographic data using the 2018 American Community Survey 5-year
Estimates.
• Figure 3-24 – Newport Beach Proposed RHNA Sites, Hispanic/Latino, 2019
• Figure 3-25 – Newport Beach Proposed RHNA Sites, Non-White Population 2019
• Figure 3-26 – Newport Beach Proposed RHNA Sites, Low and Moderate-Income, 2019
Figure 3-24 shows the proposed candidate sites to meet the RHNA for Newport Beach in relation to the
location of residents of Hispanic origin. These sites take into consideration access to vital goods, services,
and public transportation and are therefore ideal areas for the City to focus much of its future housing
growth. It is anticipated that accessory dwelling unit (ADU) growth, including growth for affordable ADUs,
will occur in the less dense areas of the community. Figure 3-24 shows the following findings:
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• 291 proposed sites to accommodate the RHNA allocation (totaling 20,999 potential units, or 94%
of the total potential units) are located within block groups that have a percentage of the
population that identifies as Hispanic below 20 percent.
• 3 proposed sites to accommodate the RHNA allocation (totaling 153 potential units, or 1% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as Hispanic between 20 and 40 percent.
• 17 proposed sites to accommodate the RHNA allocation (totaling 920 potential units, or 4% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as Hispanic between 40 and 60 percent.
• 2 proposed sites to accommodate the RHNA allocation (totaling 188 potential units, or 1% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as Hispanic between 60 and 80 percent.
The data shows that the proposed candidate sites to meet the very low and low-income RHNA allocation
are evenly dispersed throughout the community with an emphasis on locating units where there is a high
level of access to important public services and transit. The distribution of potential units does not
disproportionately impact areas with larger concentrations of the Hispanic population.
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Figure 3-24: Newport Beach Proposed RHNA Sites, Hispanic/Latino, 2018
162
Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-123
(September 2022 Final Housing Element)
Figure 3-25 shows the proposed candidate sites to meet the RHNA for Newport Beach in relation with
census data showing the percentage of the population within each block group that is Non-white.
Figure 3-25 shows the following findings:
• 156 proposed sites to accommodate the RHNA allocation (totaling 9,867 potential units, or 44%
of the total potential units) are located within block groups that have a percentage of the
population that identifies as Non-White less than 20 percent.
• 46 proposed sites to accommodate the RHNA allocation (totaling 3,166 potential units, or 14% of
the total potential units) are located within block groups that have a percentage of the population
that identifies as Non-White between 20 and 40 percent.
• 109 proposed sites to accommodate the RHNA allocation (totaling 9,039 potential units, or 41%
of the total potential units) are located within block groups that have a percentage of the
population that identifies as Non-White between 40 and 60 percent.
• 2 proposed sites to accommodate the RHNA allocation (totaling 188 potential units, or 1% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as Non-White between 60 and 80 percent.
The data shows that the proposed candidate sites to meet the very low and low-income RHNA allocation
are evenly dispersed throughout the community with an emphasis on locating units where there is a high
level of access to important public services and transit. The distribution of potential units does not
disproportionately impact areas with larger concentrations of Non-white populations.
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(September 2022 Final Housing Element)
Figure 3-25: Candidate Sites – Non-White Analysis
164
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(September 2022 Final Housing Element)
Figure 3-26 shows location of proposed candidate sites to meet the RHNA for Newport Beach in
comparison with census data showing the percentage of the population within each block group who is
categorized as low-income or moderate by the American Community Survey. Figure 3-26 shows the
following findings:
• 1 proposed site to accommodate the RHNA allocation (totaling 1,046 potential units, or 5% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as low-and-moderate-income less than 10.
• 54 proposed sites to accommodate the RHNA allocation (totaling 922 potential units, or 4% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as low-and moderate-income between 10 and 25 percent.
• 212 proposed sites to accommodate the RHNA allocation (totaling 16,784 potential units, or 76%
of the total potential units) are located within block groups that have a percentage of the
population that identifies as low-and moderate-income between 25 and 50 percent.
• 44 proposed sites to accommodate the RHNA allocation (totaling 3,320 potential units, or 15% of
the total potential units) are located within block groups that have a percentage of the population
that identifies as low-and moderate-income between 50 and 75 percent.
• 2 proposed sites to accommodate the RHNA allocation (totaling 188 potential units, or 1% of the
total potential units) are located within block groups that have a percentage of the population
that identifies as low-and moderate-income greater than 75 percent.
The data shows that the proposed candidate sites to meet the very low and low-income RHNA allocation
are evenly dispersed throughout the community with an emphasis on locating units where there is a high
level of access to important public services and transit. The distribution of potential units provides
increased opportunities for low-income housing in areas with higher rates of low-income persons.
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(September 2022 Final Housing Element)
Figure 3-26: Candidate Sites – Low/Moderate-Income Block Group Analysis
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The concentration of low- and very low-income sites located in the northern, western, and central areas
of the City as depicted in Figures 3-24 through 3-26 above, are designated to include units at mixed income
levels that would provide housing opportunity for both lower income households and moderate to above
moderate-income households. Thus, the concentrations of low- and very low-income sites located in the
northern, western, and central areas of the City would not exacerbate the current conditions in these
areas.
Analysis of Exacerbating Current Conditions
Through the City’s sites analysis, which was conducted in compliance with the requirements of AB 1398,
sites were selected to consider the following:
• Minimize over concentrations of affordable housing in one geographical area;
• Encouraging and expanding opportunities for mixed-income development; and
• Expanding mixed use, infill opportunities in areas adjacent to services and amenities.
The Airport Area and West Newport Area have been identified with a larger concentration of lower-
income opportunities. These sites will help encourage mixed-income development and will expand
opportunity in some of the City’s highest resource areas proximate to jobs.
The Airport Area has a higher amount of existing affordable units that were constructed in conjunction
with market-rate development projects and through the implementation of density bonus incentives and
past inclusionary housing. Due to high land costs citywide, there are no opportunities to feasibly construct
lower-income development unless they are in conjunction with larger scale market rate projects and
would not have otherwise existed in this area. While the Airport Area scores in the 43rd percentile related
to pollution burden according to OEHHA’s California Communities Environmental Health Screening Tool,
this is primarily due to transportation and air quality impacts given the proximity to John Wayne Airport.
It is not related to majority polluting industries or other point sources. The area is experiencing a transition
from low-scale, office/industrial uses to higher density, urban mixed-use development, as evidenced by
the multiple project examples presented in Appendix B.
The Airport Area is also identified in the General Plan Recreation Element as deficient in park acreage. The
Land Use Element currently provides policies for the dedication and improvement of neighborhood parks
within future residential or mixed-use development. Three recently entitled projects have been required
to dedicate and improve parks for future residents and the broader community (i.e., Uptown Newport,
Newport Crossings, and the Residences at 4400 Von Karman). Continued implementation of these policies
will further assist in the provision of necessary park spaces thereby improving access recreation and open
space areas to enhance the livability of the area.
For the Airport Area, Policy Actions 1A and 4J require new development standards that will further
enhance the City’s ability to establish quality mixed-income communities
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while helping to mitigate and/or avoid possible environmental considerations in the area. Examples
include feasible and appropriate noise mitigation and possibly enhanced air filtration systems for buildings
to reduce exposure of future resident to these environmental factors.
The West Newport Area contains most the City’s mobile home parks and, thus, has long provided
opportunities for affordable housing. It also has the largest industrial use area with several manufacturing
uses concentrated in a smaller area. Industrial uses can be associated with increased noise and or
pollution. Based on consultation with the City’s Code Enforcement Division, there have been no recent
complaints from residential uses regarding noise in this area. Air and ground pollutants are largely
monitored and regulated by the South Coast Air Quality Management District (SCAQMD), as well as the
Department of Toxic Substances Control (DTSC). The SCAQMD and DTSC began closely monitoring the
emissions of a single operator in the West Newport Area between 2008 and 2015. The operator has
implemented measures to reduce emissions to appropriate standards by installing a vapor extraction
system as well as exhaust treatment equipment. The City has served as a coordinating partner in this
effort and continues to assist in any inquiries related to pollutants in the area. Policy Action 4K is included
in Section 4 to ensure the City continues to monitor industrial users while striving to improve the
environmental score for the area.
Although there is a concentration of industrial type uses in this area, it has long been viewed as an
opportunity area for redevelopment. While there is currently a temporary City-run community center in
the area, the City continues to pursue the siting and development of a permanent community center. In
2015, the City approved the Ebb Tide Residential Project, an 81-unit condominium community. In 2016,
the City Council adopted the West Newport Mesa Streetscape Master Plan, which includes streetscape
improvements that are required as part of private development projects and improvements that could be
implemented as part of the City’s Capital Improvements Program (CIP). The Ebb Tide Residential Project
was the first private project to implement components of the West Newport Mesa Streetscape Master
Plan. Future redevelopment projects will also be required to implement streetscape improvements that
will foster an enhanced and safer environment for workers and residents.
As the area transitions to a more urban, dense environment, it is important to include affordable housing
opportunity sites to help preserve current affordable housing opportunities while serving to expand
economic growth potential. In addition, there is an opportunity for workforce housing with the proximity
of Hoag Hospital, one of Newport Beach’s biggest employers. The West Newport area has experienced
recent trends toward infill, mixed-income development that will continue in a high resource area. Policy
Action 4K has a consideration to include residential-serving commercial as part of the rezoning program
(Policy 1B) to allow flexibility beyond the underlying industrial zoning limits, which will allow new
commercial uses that are more supportive of current and future residents as well as workers in the area.
Also notable, the West Newport Area is home to several education institutions such as Pacifica Christian
High School, Coastline Community College, and Carden Hall. The City has seen recent reinvestment from
the schools, which further demonstrates an improving neighborhood condition that shifts away from
industrial to more mixed-use and mixed-income development.
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Relevant to the West Newport Mesa Area, Policy Action 5D provides for the protection of mobile home
opportunities. Policy Action 1B states provisions to include development standards, overlay text and
entitlement procedures to encourage the development of housing for persons of very low and low
incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to
include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density
bonus, entitlement streamlining, fee waivers or reductions and other considerations. The intent in these
incentive tools is to further opportunity for mixed-income developments in these areas.
Lastly, to ensure that these conditions are not exacerbated during the planning period, the City is
introducing an inclusionary requirement (Policy 1K) that would further support mixed-use and mixed-
income developments and provide additional incentives to increase lower-, moderate- and above
moderate-income development in these areas.
Racially and Ethnically Concentrated Areas of Poverty and Affluence
The HUD R/ECAP maps do not identify any racially or ethnically concentrated areas of poverty in Newport
Beach. The analysis conducted for this housing element concluded that there are approximately 12 census
tracts that are considered racially concentrated areas of affluence (RCAA) in the City. The RCAA areas are
clustered throughout the City predominately in the east and along the southern and western boundaries
of the City. The concentrations of lower income households located in the northern, western, and central
areas of the City are in high income areas surrounded by RCAAs. The location of these area provides
affordable housing opportunities within areas with high access to resources.
Access to Opportunity
The majority of the City is considered highest resource according to the TCAC Opportunity Map composite
score. The majority of the sites identified in the sites inventory are located in the highest resource areas
which will give households access to more opportunities and resources.
Transit
According to AllTransit the City of Newport Beach has a low transit performance score overall. The City
has identified a significant number of low- and very low-income housing opportunity sites in the Airport
Area Environs in the north, the West Newport Mesa Area in the west, and the Newport Center Area in the
central area of the City. These three areas of the City have high connectivity scores compared to other
areas throughout the City. Households within these areas have better access to jobs and key destinations
through transit than those located elsewhere in the City. The majority of the low- and very low-income
sites were strategically located within the Airport Area Environs, West Newport Mesa Area, and the
Newport Center Area to take advantage of the increased transportation assets within these areas.
Environmental
OEHHA’s California Communities Environmental Health Screening Tool considers the City of Newport
Beach as having a primarily low pollution burden through the entire City. There are concentrations of low-
and very low-income sites located in the northern, western, and central areas of the City which have low
to moderate pollution burdens. The Northern area, identified as Airport Area Environs, has the highest
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pollution burden scoring in the 43rd percentile due to high exposure scores from traffic related pollutants.
The northern area was selected to accommodate a number of housing opportunity sites due to its higher
access to transit amenities and reduced, but high land values.
Disproportionate Housing Needs
Disability
The City of Newport Beach has a fairly low disabled population. With a higher representation of persons
with disabilities located throughout the greater central area of the City. The sites inventory has identified
a concentration of low- and very low-income sites located in the Newport Center Area. The placement of
these sites was strategically located to increase affordable housing opportunities where persons with
disabilities are already present as well as where there are nearby service amenities which can provide
increased housing security for the City’s disabled population.
Income
The majority of the City has low rates of populations categorized as low- to moderate-income. The
northern, western, and central areas of the City have higher rates of residents considered to be low- to
moderate-income. The sites inventory predominately concentrates low- and very low-income sites within
the Airport Area Environs, West Newport Mesa Area, and Newport Center Area as they have the highest
opportunities ratings, moderate or highest resource ratings, and higher transit connectivity. The low- and
very low-income site within these areas will provide increased affordable housing options where there
are higher rates of lower-income residents. Additionally, the majority of the selected sites throughout the
City are planned to accommodate mixed-income housing units which will prevent exacerbating the
concentrations of lower income households.
Overpayment
The City of Newport Beach experiences low to moderate rates of overpayment generally with only one
census tract in the central area of the City experiencing high rates of overpayment. Site selection
emphasized the development of multifamily and mixed-use housing within six focus areas that will be
rezoned to allow for high-density housing. Housing located throughout the City’s six focus areas will
facilitate additional affordable units through multifamily development. The low- and very low-income
sites associated with the residential development in the central area of the City will provide access to
supportive services such as job opportunity and transit amenities and will ensure that there are affordable
housing options in geographical areas that are experiencing moderate to high rates of overpayment.
Overcrowding
The entirety of the City experiences low rates of overcrowding. The placement of lower and moderate- to
above moderate-income sites throughout the six focus areas within the City will not exacerbate any
instances of overcrowding as additional housing development at all income levels would alleviate impacts
of overcrowding.
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Analysis of Fair Housing Priorities and Goals
To enhance mobility and promote inclusion for protected classes, the chief strategy included in this
housing element is to provide sites suitable for affordable housing in high-resource, high opportunity
areas, as demonstrated by the analysis of the housing resource sites contained in this section. Other
programs that affirmatively further fair housing include:
• Policy Action 4A: Affirmatively Furthering Fair Housing
• Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers
• Policy Action 7B: Transitional and Supportive Housing
• Policy Action 7C: Housing for Persons with Developmental Disabilities
• Policy Action 7D: Fair Housing Services
D. Housing Resources
1. Regional Housing Needs Allocation
This section of the Housing Element provides an overview of the resources available to the City to meet
their Regional Housing Needs Allocation (RHNA).
Residential Sites Inventory
Appendix B of the Housing Element includes the required site analysis tables and site information for the
vacant and non-vacant properties to meet the City’s RHNA need through the 2021-2029 planning period.
The following discussions summarize the City’s site inventory and rezone plan.
Above Moderate- and Moderate-Income Sites
For the 2021-2029 planning period, the City’s RHNA allocation is 1,050 for moderate-income site and
1,409 for above moderate-income sites. The City anticipates current planned growth, projects already in
the approval process, to entirely meet the above moderate-income need within the planning period. The
City will meet the moderate-income need through a combination of existing capacity on residentially
zoned land, through the redevelopment of parcels rezoned within the focus areas, and through the
development of accessory dwelling units (ADUs).
A total of 287 moderate-income and 40 above moderate-income units can be accommodated through
existing zoning capacity on parcels. By subtracting existing units from maximum potential unit yield per
parcel, the City projected additional capacity on several parcels. Each parcel included in the inventory was
then vetted for likelihood of redevelopment and to ensure all HCD criteria were met. The required
descriptive information for these sites can be found within Appendix B.
An additional 72 moderate and 5 above moderate-income units can be accommodated through the
development of ADUs throughout the community. This is based on the methodology described within
Appendix D: Accessory Dwelling Units and incorporates guidance from HCD’s Housing Element Site
Inventory Guidebook.
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A supplemental 5,798 moderate and above moderate-income units can be accommodated through the
rezone strategies proposed for six focus areas throughout the City. Originally identified by the Housing
Element Update Advisory Committee (HEAUC), the focus areas guided the development of area-specific
rezone policies and City actions to ensure that Newport Beach has sufficient capacity to meet the RHNA
Allocation for the 6th Cycle.
Analysis of The City’s Existing Capacity and Zoning
Table 3-32: Residential Capacity for Moderate and Above Moderate-Income Sites
Significant Zone Max Density Reasonable
Density*
Number of
Parcels Acreage Potential
Units
Moderate-Income Sites
MU-MM 26 du/ac 26 du/ac 24 9 acres 180 units
MU-W2 26 du/ac 23 du/ac 13 4 acres 51 units
MU-V 25 du/ac 20 du/ac 6 1 acre 13 units
MU-CV/15th Street 18 du/ac 15 du/ac 24 3 acres 43 units
Subtotal 67 17 acres 287 units
Above Moderate-Income Sites
MU-W1 5 du/ac 5 du/ac 7 9 acres 40 units
Subtotal 7 9 acres 40 units
TOTAL CAPACITY 74 26 acres 327 units
*Note – Specific densities vary within these zoning designations and potential unit projections are based on the parcel-
specific requirements and existing conditions on parcels.
Reasonable Capacity Assumptions
This section describes the methodology developed to determine the site capacity for the moderate and
above moderate-income sites. The City assumes that above moderate-income units will develop at a
maximum up eight dwelling units per acre, and that moderate-income units will develop at a maximum
of 26 dwelling units per acre. Reasonable capacity for sites identified to meet the City’s moderate and
above moderate need was calculated based on a number of factors, including site size, existing zoning
requirements, vacancy and total number of units entitled, and the maximum density achievable for
projects within the following zones:
• MU-MM – Mixed-Use Mariners’ Mile: The MU-MM Zoning District is intended to provide areas
for the development of mixed-use structures that vertically integrate residential dwelling units
above the ground floor with retail uses including office, restaurant, and retail. The zone permits a
density range of 20.1 – 26.7 dwelling units per acre.
• MU-W1 – Mixed-Use Water: This zoning district applies to waterfront properties along the
Mariners’ Mile Corridor in which nonresidential uses and residential dwelling units may be
intermixed. A minimum of fifty (50) percent of the allowed square footage in a mixed-use
development shall be used for nonresidential uses in which marine-related and visitor-serving
land uses are mixed. This zone permits a density range of up to 15 dwelling units per acre.
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• MU-W2 – Mixed-Use Water: This zoning district applies to waterfront properties in which marine-
related uses may be intermixed with general commercial, visitor-serving commercial and
residential dwelling units on the upper floors. This zone permits a density range of up to 15
dwelling units per acre.
• MU-V – Mixed-Use Vertical: This zoning district is intended to provide for areas appropriate for
the development of mixed-use structures that vertically integrate residential dwelling units above
the ground floor with retail uses including office, restaurant, retail, and similar nonresidential uses
located on the ground floor or above.
• MU-CV/15th Street – Mixed-Use Cannery Village and 15th Street: This zoning district applies to
areas where it is the intent to establish a cohesively developed district or neighborhood
containing multi-unit residential dwelling units with clusters of mixed-use and/or commercial
structures on interior lots of Cannery Village and 15th Street on Balboa Peninsula. Allowed uses
may include multi-unit dwelling units; nonresidential uses; and/or mixed-use structures, where
the ground floor is restricted to nonresidential uses along the street frontage. Residential uses
and overnight accommodations are allowed above the ground floor and to the rear of uses along
the street frontage. Mixed-use or nonresidential structures are required on lots at street
intersections and are allowed, but not required, on other lots. This zone permits a density range
of 20.1 – 26.7 dwelling units per acre.
Potential constraints, to the extent they are known, such as environmentally sensitive areas and steep
slopes were considered, and deductions made where those factors decreased the net buildable area of a
parcel. Additionally, existing units’ non-vacant parcels were analyzed to determine the number of existing
units currently on the parcel. Replacement of existing units was included as a factor to prevent no net
loss of existing housing stock.
Rezones to Accommodate the Moderate and Above Moderate RHNA
In additional to residential use on specific plans and ADUs, the City of Newport Beach has identified 212
sites to be rezoned from commercial use to residential use or to be rezoned to a higher residential density.
The sites for rezone are further detailed in Appendix B and a rezone program is identified in Section 4:
Housing Plan. Figure 3-27 displays the focus areas for rezone, accompanied by a corresponding table of
strategy information shown below as Table 3-33. The specific development assumptions (both on
affordability and overall development potential) that produce the Potential Units are described, area-by-
area, in the Sites Inventory of Appendix B.
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Table 3-33: Moderate/Above Moderate-Income Rezone Strategy by Focus Area
Focus Area Feasible Acreage Rezone Density
Potential
Moderate-Income
Units
Potential Above
Moderate-Income
Units
Airport Area Environs 172 acres 50 du/ac 258 1,546
West Newport Mesa Area 47 acres 50 du/ac 111 664
Dover-Westcliff Area 20 acres 50 du/ac 52 312
Newport Center Area 163 acres 50 du/ac 244 1,463
Coyote Canyon Area 34 acres 60 du/ac 153 995
Total 436 acres - 818 units 4,981 units
Banning Ranch Area 30 acres 50 du/ac 148 884
Total 466 acres -- 966 units 4,865 units
Development of Non-Vacant Sites and Converting to Residential Uses
To analyze the potential for redevelopment of non-vacant sites, the City sent out more than 500 letters
to property owners. Responses to the letters were recorded and are included within the inventory of sites
within Appendix B. Although a positive response to the redevelopment interest letters does not guaranty
the redevelopment of a parcel to residential as a primary use within the planning period, it is a strong
indicator of likelihood of redevelopment and is used as sufficient evidence for inclusion within the
Adequate Sites Inventory.
Accessory Dwelling Unit Production
The City of Newport Beach believes that ADUs present a viable option as part of the overall strategy to
develop housing at all income levels during the 2021-2029 6th Cycle Housing Element planning period.
Appendix D describes:
• Recent ADU legislation and regional actions,
• Local factors that may increase ADU development over the next eight years, and
• Actions Newport Beach will take through housing programs to incentivizing ADU development
The City assumes a total development 240 ADUs from 2021-2029. Utilizing the Southern California
Association of Governments (SCAG) approved ADU affordability assumptions, 163 ADUs will be allocated
to the low and very low-income RHNA, 72 will be allocated to the City’s moderate-income RHNA and 5 will
be allocated to the above moderate. This is based on the methodology described within Appendix D:
Accessory Dwelling Units and incorporates guidance from HCD’s Housing Element Site Inventory
Guidebook.
Sites Suitable for Lower-Income Housing
This section contains a description and listing of the candidate sites identified to meet the Newport
Beach’s very low and low-income RHNA need. A full list of these sites is presented in Appendix B.
Projects in the Pipeline and Accessory Dwelling Units
The City has identified a number of projects currently in the entitlements process which are likely to be
developed during the planning period and count as credit towards the 2021-2029 RHNA allocation.
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Projects with planned affordable components include:
• Newport Airport Village
• Residences at 4400 Von Karman
• Newport Village Mixed-Use
• West Coast Highway Mixed-Use
• Newport Crossings
The total anticipated development of Projects in the Pipeline and Accessory Dwelling Units is summarized
in Table 3-34 below to calculate the Remaining Need.
Table 3-34: Low and Very Low-Income Remaining Need
Very Low-Income Low-Income
RHNA Allocation 1,456 930
Pipeline Projects 97 78
5th Cycle Sites 0 0
Accessory Dwelling Units 60 103
Remaining Low/Very Low-Income Need 1,299 749
Sites Identified for Rezone to Accommodate Low and Very low
After the identification of projects in the pipeline and ADUs to accommodate the City’s low and very low
RHNA, a remaining 2,048 units must be accommodated to meet the City’s RHNA. To account for this
remaining need, the City conducted a community-driven process to identify several parcels for inclusion
in the Adequate Sites Inventory. This process was led by the Housing Element Update Advisory Committee
(HEUAC). To guide the identification of adequate sites, the committee created focus areas Sites identified
by the committee and the public to meet the City’s very low and low-income RHNA were selected based
on the AB 1397 size requirements of at least 0.5 acres but not greater than 10 acres.
The 221 parcels are currently zoned as the following:
• 157 parcels are zoned non-residential
• 64 parcels are zoned residentially at a lower density.
All parcels are non-vacant and will be rezoned to higher densities (densities are specific to each focus
area) able to accommodate the development of lower-income housing. Figure 3-28 below displays the
sites identified to accommodate the City’s low and very low-income RHNA allocation. The Housing Plan
section outlines actions the City will take to promote the development of affordable units within the
following focus areas:
• Airport Vicinity Area
• West Newport Mesa Area
• Dover-Westcliff Area
• Newport Center Area
• Coyote Canyon Area
• Banning Ranch Area
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The key assumptions and unit projections related to each focus area are shown below in Table 3-35 and
the focus areas are shown geographically below in Figure 3-27. The specific development assumptions
(both on affordability and overall development potential) that produce the Potential Units are described,
area-by-area, in the Sites Inventory of Appendix B.
Table 3-35: Low/Very Low-Income Rezone Strategy by Focus Area
Focus Area Feasible Acreage (AC) Rezone
Density
Potential Low/Very Low-
Income Units
Airport Area Environs 172 acres 50 du/ac 773
West Newport Mesa Area 47 acres 50 du/ac 332
Dover-Westcliff Area 20 acres 50 du/ac 156
Newport Center Area 163 acres 50 du/ac 732
Coyote Canyon Area 34 acres 60 du/ac 383
Total 436 acres - 2,376 units
Banning Ranch Area 30 acres 50 du/ac 443
Total 466 acres -- 2,819 units
Figure 3-27: Focus Areas for Rezones
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Development of Nonvacant Sites to Accommodate Low and Very Low-Income
74 non-vacant sites were also identified in the 5th cycle. In accordance with AB 1397 the City will establish
a program that permits By-Right development for projects that propose 20 percent of all units to be
affordable to low and very low-income units. The program is outlined in detail in Section 4: Housing Plan.
Regional Housing Needs Allocation
Future Housing Needs
Future housing need refers to the share of the regional housing need that has been allocated to the City.
The State Department of Housing and Community Development (HCD) supplies a regional housing goal
number to the Southern California Association of Governments (SCAG). SCAG is then mandated to allocate
the housing goal to city and county jurisdictions in the region through a RHNA Plan. In allocating the
region’s future housing needs to jurisdictions, SCAG is required to take the following factors into
consideration pursuant to Section 65584 of the State Government Code:
• Market demand for housing.
• Employment opportunities.
• Availability of suitable sites and public facilities.
• Commuting patterns.
• Type and tenure of housing.
• Loss of units in assisted housing developments.
• Over-concentration of lower-income households.
• Geological and topographical constraints.
HCD, through a determination process, allocates units to each region across California. It is then up to
each region to determine a methodology and process for allocating units to each jurisdiction within that
region. SCAG adopted its final Regional Housing Needs Allocation (RHNA Plan) in February 2021. This
RHNA covers an 8-year planning period (starting in 2021) and addresses housing issues that are related to
future growth in the region. The RHNA allocates to each city and county a “fair share” of the region’s
projected housing needs by household income group. The major goal of the RHNA is to assure a fair
distribution of housing among cities and counties within the Southern California region, so that every
community provides an opportunity for a mix of housing for all economic segments.
Newport Beach’s share of the SCAG regional growth allocation is 4,845 new units for the current planning
period (2021-2029). Table 3-36, Housing Needs for 2021-2029, indicates the City’s RHNA need for the
stated planning period.
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Table 3-36: Housing Needs for 2021-2029
Income Category (% of County AMI) Number of Units Percent
Extremely Low (30% or less) 728 units 15%
Very Low (31 to 50%)1 728 units 15%
Low (51 to 80%) 930 units 19%
Moderate (81% to 120%) 1,050 units 22%
Above Moderate (Over 120%) 1,409 units 29%
Total 4,845 units 100%
Note 1: Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low-
income households (0-30% AMI). In estimating the number of extremely low-income households, a jurisdiction can
use 50% of the very low-income allocation or apportion the very low-income figure based on Census data.
Adequacy of Sites For RHNA
The City of Newport Beach has a total 2021-2029 RHNA allocation of 4,845 units. The City is able to take
credit for 1,662 units currently within the planning process (Projects in the Pipeline), 327 units of 5th Cycle
Sites being projected at existing buildout capacity, and 240 units of ADU’s (addressed in Appendix B and
in Appendix D). These three categories of existing capacity lower the total RHNA planning need to a
“Remaining Need” of 2,707 units as shown in Table 3-37. The Housing Element update lists sites that
would be able to accommodate an additional 7,909 total units, well in excess of the remaining 2,707-unit
RHNA need.
Newport Beach has identified sites with a capacity to accommodate 2,296 lower-income dwelling units,
which is in excess of its 2,386-unit lower-income housing need. The identified sites for lower-income
dwelling units are on parcels that will permit residential development as a primary use at a base density
of between 30 and 60 dwelling units per acre and at an assumed density of between 50 and 60 dwelling
units per acre.
The Banning Ranch Focus area is included in the sites inventory, but not assumed to accommodate the
City’s 2021-2029 RHNA growth need. Banning Ranch is considered as additional dwelling unit opportunity
in addition to those that accommodates the RHNA. When including Banning Ranch , the Housing Element
would enable the City to increase its site surplus. This would result in a surplus of 691 low and very low
income units compared to a 248 unit surplus without Banning Ranch.
As described in Appendix B, the City believes that due to recent State legislation and local efforts to
promote accessory dwelling unit (ADU) production, the City can realistically anticipate the development
of 240 ADUs within the 8-year planning period. As outlined in the Sites Inventory within Appendix B, the
City has compiled an inventory of sites for rezone that, combined, have development potential to wholly
exceed and maintain the capacity to accommodate the RHNA Allocation throughout the 8-year planning
period. Overall, the City has adequate capacity to accommodate its 2021-2029 RHNA.
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Table 3-37: Summary of RHNA Status and Sites Inventory
Extremely
Low/ Very
Low Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
2021-2029 RHNA 1,456 930 1,050 1,409 4,845
RHNA Credit (Units Built) TBD TBD TBD TBD TBD
Total RHNA Obligations 1,456 930 1,050 1,409 4,845
Sites Available
Projects in the Pipeline 175 32 1,455 1,662
Accessory Dwelling Units 163 72 5 240
5th Cycle Sites 0 287 40 327
Remaining RHNA 2,048 659 -- 2,707
Airport Area Environs Rezone 773 258 1,546 2,557
West Newport Mesa Rezone 332 111 664 1,107
Dover-Westcliff Rezone 156 52 313 521
Newport Center Rezone 732 244 1,463 2,439
Coyote Canyon Rezone 383 153 995 1,530
Total Rezone 2,376 818 4,981 8,174
TOTAL POTENTIAL
DEVELOPMENT CAPACITY 2,714 1,209 6,481 10,403
Sites Surplus/Shortfall (+/-) +328 +159 +5,072 +5,558
Percentage Buffer 14% 15% 360% 115%
Banning Ranch Rezone 443 148 884 1,475
Total Rezone with Banning Ranch 2,819 966 5,775 9,649
TOTAL POTENTIAL DEVELOPMENT
CAPACITY 3,156 1,357 1,366 11,878
Sites Surplus/Shortfall (+/-) +770 +307 +5,957 +7,033
Percentage Buffer 32% 29% 423% 145%
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Figure 3-28: Sites Inventory and RHNA Obligations
Summary of Sites Inventory and RHNA Obligations
The data and map detailed in Figure 3-28 above shows the City of Newport Beach’s ability to meet the
4,845 RHNA allocation in full capacity with a 5,293-unit buffer. Along with the identifying appropriate sites
to meet the current and future housing needs, the City has established a Housing Plan to support its efforts
in providing housing opportunities for all income levels in Newport Beach.
Financial Resources
Providing an adequate supply of decent and affordable housing requires funding from various sources,
the City has access to the following finding sources.
Section 8 Housing Choice Voucher
The Section 8 Housing Choice Voucher program is a Federal government program to assist very low-
income families, the elderly, and the disabled with rent subsidy payments in privately owned rental
housing units. Section 8 participants can choose any housing that meets the requirements of the program
and are not limited to units located within subsidized housing projects. They typically pay 30 to 40 percent
of their income for rent and utilities. The Orange County Housing Authority administers Section 8 Housing
Choice vouchers within the City of Newport Beach. As of October 30, 2020, the City has allocated 112
Section 8 vouchers to residents within the community: 30 for families, 20 for persons with disabilities, and
62 for seniors.
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Community Development Block Grants (CDBG)
The Community Development Block Grant (CDBG) program provides annual grants on a formula basis to
cities to develop viable urban communities by providing a suitable living environment and by expanding
economic opportunities, principally for low- and moderate-income persons (up to 80 percent AMI).
CDBG funds can be used for a wide array of activities, including:
• Housing rehabilitation.
• Lead-based paint screening and abatement.
• Acquisition of buildings and land.
• Construction or rehabilitation of public facilities and infrastructure, and:
• Public services for low-income households and those with special needs.
According to the Federal regulations, the City of Newport Beach is allowed to spend no more than of 20%
of CDBG funding on program administration, and 15% on community services such as senior meal delivery
or homeless prevention programs. The remaining amount must be used other eligible projects that meet
national objectives that principally benefit low- and moderate-income households or the disabled.
HUD requires Newport Beach to complete a Five-Year Consolidated Plan (Con Plan) to receive HUD's
formula grant programs. The Con Plan identifies the City's 5-year strategies related to priority needs in
housing, homelessness, community development, and economic development. It also identifies short-
and long-term goals and objectives, strategies, and timetables for achieving its goals. Developed with the
input of citizens and community groups, the Con Plan serves four basic functions:
• It is a planning document for the community built upon public participation and input.
• It is the application for funds under the CDBG Program.
• It articulates local priorities.
• It is a five-year strategy the City will follow in implementing HUD programs.
Additionally, HUD requires the City to prepare a One-Year Action Plan for each of the five years covered
by the Con Plan. The City of Newport Beach reports a total of $372,831 CDBG funds from HUD in the
2020-2021 Action Plan. In same report, the City reports an anticipated $2.07 million of CDBG resources
during the five-year period from July 1, 2020, through June 30, 2025.
HOME Investment Partnership Program (HOME)
The HOME program provides federal funds for the development and rehabilitation of affordable rental
and ownership housing for households with incomes not exceeding 80 percent of area median-income.
The program gives local governments the flexibility to fund a wide range of affordable housing activities
through housing partnerships with private industry and non-profit organizations. HOME funds can be used
for activities that promote affordable rental housing and homeownership by low-income households. The
City of Newport Beach does not currently receive HOME funds.
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Opportunities for Energy Conservation
Energy Use and Providers
The primary uses of energy in urban areas are for transportation lighting, water heating, and space heating
and cooling. The high cost of energy demands that efforts be taken to reduce or minimize the overall level
of urban energy consumption. Energy conservation is important in preserving non-renewable fuels to
ensure that these resources are available for use by future generations. There are also a number of
benefits associated with energy conservation including improved air quality and lower energy costs.
Southern California Gas Company (SCG) provides natural gas service for the City. Natural gas is a “fossil
fuel” and is a non-renewable resource. Most of the major natural gas transmission pipelines within the
City are owned and operated by SCG. SCG has the capacity and resources to deliver gas except in certain
situations that are noted in state law. As development occurs, SCG will continue to extend its service to
accommodate development and supply the necessary gas lines. Electricity is provided on an as-needed
basis to customers within existing structures in the City. Southern California Edison Company (SCE) is the
distribution provider for electricity in Newport Beach. Currently, SCE has no immediate plans for
expansion of infrastructure, as most of the City is built out. However, every year SCE expands and
improves existing facilities according to demand
Energy Conservation
The City’s energy goals, stated in the Natural Resources Element of the General Plan, make every effort
to conserve energy in the City thus reducing dependence on fossil fuels. The City’s policies relating to
energy include increasing energy efficiency in City facilities and operations and in private developments
and reducing the City’s reliance on fossil fuels. In order to reach the City’s goals, objectives include the
following:
• Develop incentives that encourage the use of energy conservation strategies by private and public
developments,
• Promote energy-efficient design features,
• Promote or provide incentives for “Green Building” programs that go beyond the requirements
of Title 24 of the California Administrative Code and encourage energy efficient design elements
as appropriate to achieve “green building” status; and,
• Provide incentives for implementing Leadership in Environmental and Energy Design (LEED)
certified building such as fee waivers, bonus densities, and/or awards recognition programs.18
The City of Newport Beach’s Energy Action Plan (EAP) is identified as a roadmap for the City of Newport
Beach to reduce GHG through reductions in energy used in facility buildings and operations. According to
the City’s EAP, the City’s long-term vision for energy efficiency focuses on the following objectives:
• Reduce the City’s carbon footprint and its adverse effect on the environment
• Conserve energy at the local government facilities
18 City of Newport Beach Natural Resource Element, 2006.
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• Raise energy conservation awareness in local community and improve the quality of life
Currently, the City of Newport Beach has developed the “Building Green” construction manual, created
by the City’s Task Force on Green Development. The City has also enacted a City-wide streetlight LED
replacement program, replacing 400 units to date, and is continuing marketing. Education, and outreach
to the community regarding every efficiency and conservation.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-1
HOUSING PLAN
Section 4:
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-2
The Housing Plan describes the City of Newport Beach 2021-2029 policy program. The Housing Plan
describes the specific goals, policies, and programs to assist City decision makers to achieve the long-term
housing objectives set forth in the Newport Beach Housing Element. This Plan identifies goals, policies,
and programs 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 will make every effort to budget,
plan for and comply with the timelines for implementation set forth in this Section, but may be contingent
upon funding and staffing resources.
A. Regional Housing Needs Assessment
The Southern California Association of Governments (SCAG) has conducted a Regional Housing Needs
Assessment (RHNA) to determine the City’s share of the affordable housing needs for the Orange County
region. The RHNA quantifies Newport Beach’s local share housing needs for the region by income
category. Income categories are based on the most current Median Family Income (MFI) for Orange
County. The current 2021 MFI (for an assumed family of 4 persons) for Orange County is $106,700. The
MFI may change periodically, as it is updated on an annual basis. The City’s 2021-2029 RHNA growth need
of 4,845 housing units is allocated into the following income categories:
• 1,456 units - Very low-income (0-50% County MFI)
• 930 units - Low-income (51-80% of County MFI)
• 1,050 units - Moderate-income (81-120% of County MFI)
• 1,409 units - Above moderate-income (120% or more of County MFI)
A. Housing Goals
The City of Newport Beach has identified the following housing goals as part of this Housing Element
Update:
Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs
identified by the 2021-2029 RHNA.
Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate
redevelopment of housing stock.
Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic
segments.
Housing Goal #4: Housing opportunities for as many renter- and owner-occupied households as possible
in response to the market demand and RHNA obligations for housing in the City.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-3
Housing Goal #5: Preservation of the City’s housing stock for extremely low-, very low-, low-, and
moderate-income households.
Housing Goal #6: Housing opportunities for special needs populations.
Housing Goal #7: Equal housing opportunities in the City for all people.
Housing Goal #8: Effective and responsive housing programs and policies.
The goals listed above are described below and on the following pages with accompanying policies and
programs to achieve them.
B. Housing Policies and Program Actions
This Housing Element expresses the Newport Beach community’s overall housing goals and supporting
policies and program actions to achieve them. The stated Housing Program Actions are based on a review
of past performance of the 5th Cycle Housing Element, analysis of current constraints and resources, and
input from Newport Beach residents and stakeholders.
Housing Goal #1
Provision of adequate sites to accommodate projected housing unit growth needs.
Housing Policy 1.1: identify a variety of sites to accommodate housing growth need by income categories
to serve the needs of the entire community.
Implementation Actions
Adequate Sites to Accommodate 2021-2029 RHNA
The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845
units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair
share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites
through extensive analysis in collaboration with the community and stakeholders through Newport
Together’s “Listen and Learn” process, multiple meetings of the City’s Housing Element Update Advisory
Committee (Committee), participation by interested residents at a variety of public meetings, workshops,
and consultation with property owners. The City of Newport Beach has identified an adequate amount
of land that was determined by the Committee as “Feasible” or “Potentially Feasible” for future
development. Only a portion of these candidate sites will be necessary to accommodate the City’s RHNA
planning obligation. These sites have undergone a rigorous process to evaluate site features, development
potential, developer/owner interest and other factors to deem them appropriate for housing during the
2021-2029 Planning Period.
As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide
and have has identify identified eight (8) primary areas of opportunity:
• Airport Area Environs
• West Newport Mesa
• Banning Ranch
• Dover/Westcliff
• Newport Center
• 5th Cycle Housing Element Sites
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• Coyote Canyon • Accessory Dwelling Units
Since the City has identified several opportunity sites in the 5th Cycle Housing Element that will be utilized
in the 6th Cycle Housing Element, additional policy considerations are stated in this Policy Program.
These opportunities sites are described in map and tabular format in Appendix B of this Housing Element.
Each of the opportunity areas described in this Housing Element have been assigned a targeted acreage,
and a targeted number of new housing units (see following implementing Policy Action statements).
Collectively, these targets must meet the unmet RHNA need as required by sState law. It is expected there
may be deviations from the targets with future implementing zoning actions. New opportunity sites may
be identified, and other sites may be deemed unsuitableunsuitable, or densities may be modified, all
based on new information received over time. The City may adopt future zoning strategies that are more
or less than the identified targets in this Housing Element provided the total unmet RHNA need by income
category is accommodated within state-defined deadlines. If future zoning strategies deviate from the
targets expressed in this Housing Element but still meet the requirement to identify adequate sites to
accommodate unmet RHNA need, no amendment to the Housing Element would be required and
deviations of any magnitude may be considered subject to the City Council’s review and approval in
consultation with the Community.
All sites proposed for rezoning through implementation of Policy Actions 1A through 1F provided in
Section 4 of this Housing Element will require a companion Land Use Element amendment that will be
subject to a vote of the electorate pursuant to Charter Section 423. The City will initiate an election and
conduct community outreach to educate the public on the benefits of higher density housing and pay for
all costs associated with the ballot measure(s). The table below presents a timeline for the process
including the vote. If the vote fails, the City will propose alternative Policy Actions and call for a second
election. If the second vote fails to pass, the City Council will seek a legal opinion from the State Attorney
General’s Office as to how to proceed.
Milestones for Housing Element Adoption, Implementation and Charter Section 423 Election
Anticipated Date Action Requirements
February 2022 Housing Element Adoption Public Hearing
February 2022-
September 2023
Preparation of Land Use Element amendment(s),
Zoning to implement Policy Actions 1A – 1F, and completion
of Environmental Impact Report
Community meetings
and Public Hearings
September 2023 Initiate ballot measure for Charter Section 423 vote 133 days prior to election
date
March 2024 Charter Section 423 election date for voter approval on
proposed Land Use Element Amendment
If Charter 423 vote fails:
Amend Housing Element for HCD review and amend Land
Use Element and adopt corresponding zoning strategies after
conducting environmental review
Community meetings
and Public Hearings
Conduct second Charter Section 423 election on revised
amendments
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If second Charter 423 fails:
Request opinion from State Attorney General’s Office as to City’s options
For all Rezone Policy Actions 1A to 1F, Pursuant to Government Code 65583.2, subdivisions (h) & (i),
which rezone sites to accommodate the City’s shortfall in satisfying the RHNA, the City commits to
the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent (20%) or more of the units are affordable to lower-income households. By-
right means local government review must not require a CUP, planned unit
development permit, or other discretionary review or approval.
• accommodate a minimum of sixteen (16) units per site;
• require a minimum density of twenty (20) units per acre; and
• at least 50 percent (50%) of the lower-income need must be accommodated on sites
designated
• for residential use only or on sites zoned for mixed uses that accommodate all of the
very low and low-income housing need, if those sites:
o allow 100 percent (100%) residential use, and
o require residential use occupy 50 percent (50%) of the total floor area of a
mixed-use project.
Policy Action 1A: Airport Environs Sub Area
The City will establish a housing opportunity overlay district, or similar rezoning strategy, in the Airport
Environs area for 172 acres of land to provide for the accommodation of at least 2,577 housing units in
the Very Low, Low, Moderate and Above Moderate-income categories. A Map and Table Summary of
these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy,
will allow development of a variety of residential product types at a permitted average density of
50 dwelling units per acre.
Implementation of this program will also include but not limited to development standards, overlay text
and entitlement procedures to, among other things, encourage the development of housing for persons
of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate
the potential to include a variety of incentive tools as appropriate, including but not limited to floor area
bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.
For Policy 1A, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to
accommodate the City’s shortfall in satisfying the RHNA, the City commits to the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent or more of the units are affordable to lower-income households. By-right
means local government review must not require a CUP, planned unit development
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that
accommodate all of the very low and low-income housing need, if those sites:
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o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a
mixed-use project.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1B: West Newport Mesa
The City will establish a housing opportunity overlay, or similar rezoning strategy, in the West Newport
Mesa area for 47 acres of land to provide for the accommodation of at least 1,107 housing units in the
Very Low, Low, Moderate and Above Moderate-income categories. A Map and Table Summary of these
sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will
allow development of a variety of residential product types at a permitted average density of 50 dwelling
units per acre.
Implementation of this program will also include but not limited to development standards, overlay text
and entitlement procedures to, among other things, encourage the development of housing for persons
of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate
the potential to include a variety of incentive tools as appropriate, including but not limited to floor area
bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.
For Policy 1B, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to
accommodate the City’s shortfall in satisfying the RHNA, the City commits to the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent or more of the units are affordable to lower-income households. By-right
means local government review must not require a CUP, planned unit development
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that
accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a
mixed-use project.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
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Policy Action 1C: Newport Center
The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center
area for 163 acres of land to provide for the accommodation of at least 2,439 housing units in the Very
Low, Low, Moderate and Above Moderate-income categories. A Map and Table Summary of these sites
are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow
development of a variety of residential product types at a permitted average density of 50 dwelling units
per acre.
Implementation of this program will also include but not be limited to development standards, overlay
text and entitlement procedures to, among other things, encourage the development of housing for
persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will
evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to
floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other
considerations.
For Policy 1C, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to
accommodate the City’s shortfall in satisfying the RHNA, the City commits to the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent or more of the units are affordable to lower-income households. By-right
means local government review must not require a CUP, planned unit development
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that
accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a
mixed-use project.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1D: Dover / Westcliff
The City will establish an overlay, or similar rezoning strategy, in the Dover / Westcliff area for 20 acres of
land to provide for the accommodation of at least 521 housing units in the Very Low, Low, Moderate and
Above Moderate-income categories. A Map and Table Summary of these sites are provided in Appendix
B of this Housing Element. The overlay, or similar rezone strategy, will permit development of a variety
of residential product types at a permitted average density of 50 dwelling units per acre.
Implementation of this program will also include but not limited to development standards, overlay text
and entitlement procedures to, among other things, encourage the development of housing for persons
of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate
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the potential to include a variety of incentive tools as appropriate, including but not limited to floor area
bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations.
For Policy 1D, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to
accommodate the City’s shortfall in satisfying the RHNA, the City commits to the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent or more of the units are affordable to lower-income households. By-right
means local government review must not require a CUP, planned unit development
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that
accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a
mixed-use project.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1E: Banning Ranch
The City has identified the Banning Ranch area as a potential site to accommodate future housing needs.
The City has previously approved housing development on this site, but the approved project was
subsequently denied by the California Coastal Commission. Additionally, there is a potential the site will
be purchased by an entity to preserve the area as open space. The State Department of Housing and
Community Development and California Coastal Commission have expressed they do not support the City
utilizing the site to the accommodate future RHNA needs based on this potential. Despite these
statements, the City believes this site is still a viable opportunity to provide housing for a variety of income
levels on a small portion of the 400+ acre site while protecting environmental resources. The City will
continue to support development potential in the Banning Ranch Area, but will not assume the potential
buildout of the area to demonstrate adequate sites for the 2021-2029 RHNA planning period.
The site is currently within the City’s Sphere of Influence. The City will continue to work collaboratively
with the County of Orange for annexation and with other agencies/entities regarding future use of the
property. The City will continue to pursue residential opportunities on a portion of the Banning Ranch
site, consistent with existing General Plan policies to provide opportunities for up to 1,475 residential
units at an average density of 50 dwelling units per acre.
Implementation of this program will also include development standards and entitlement procedures to
encourage the development housing for persons of Very Low and Low incomes.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-9
For Policy 1E, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to
accommodate the City’s shortfall in satisfying the RHNA, the City commits to the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent or more of the units are affordable to lower-income households. By-right
means local government review must not require a CUP, planned unit development
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that
accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a
mixed-use project.
Timeframe: Complete necessary Code, General Plan and LCP Amendments within 36 months of Housing Element
Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1F: Coyote Canyon
The Coyote Canyon property is a closed landfill that is owned and managed by the County or Orange but
leased to a private developer. The area is of substantial acreage but has limited development potential
due to various environmental considerations. The developer has evaluated the entire landfill area and
has concluded that 34 acres of the property is not subject to environmental constraints. Additionally, the
City has been advised that the County has expressed interest in participating in a transfer of a portion of
the property to accommodate residential opportunity.
The City will rezone at least 34 acres of land on the Coyote Canyon site, as shown in Appendix B, to
accommodate up to 1,530 housing units at an average density of 60 dwelling units per acre.
Implementation of this program will also include development standards and entitlement procedures to
encourage the development of housing for persons of Very Low and Low incomes.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1G: 5th Cycle Housing Element Sites
The City has identified a number of sites in the sites inventory contained in Appendix B contain infill sites
that were identified in the 5th Cycle Housing Element to accommodate the Very Low and Low-income
categories. To comply with State law, the City will amend Title 20 of the Newport Beach Municipal Code
(NBMC) to permit residential uses by-right for housing development projects in which at least 20-percent
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of the units are affordable to lower-income households. For the purpose of implementation of this
program, by-right shall mean the City will not require a discretionary permit application, such as a
Conditional Use Permit or Planned Unit Development Permit, that would constitute a “project” as
described in Section 21100 of the Public Resources Code. For sites in the coastal zone, the City will
continue to require coastal development permits to determine compliance with the City’s certified Local
Coastal Program.
The City commits to zoning these 5th Cycle sites to allow Newport Beach’s default density of 30 du/ac,
pursuant to Government Code 65583.2, subdivision(c) or at densities demonstrated to be appropriate for
the development of housing for lower-income households. Additionally, if any vacant sites in the
inventory are being used to accommodate the lower RHNA and have been identified in two prior planning
periods, the program must ensure that those sites meet the same requirements.
Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1H: Accessory Dwelling Unit Construction
Accessory Dwelling Units (ADUs) are an accepted method of providing affordable housing in the City. Due
to recent legislation, the ability to entitle and construct ADUs has increased significantly. The City
recognizes the significance of this legislation as evidenced by a marked increase in ADU permit
applications. Due to this legislation, the City believes aggressive support for ADU construction will result
in increased opportunities for housing including affordable units.
The City will aggressively support and accommodate the construction of at least 240 ADUs by a variety of
methods, including but not limited to:
• Developing and implementing a public awareness campaign for construction of ADUs with a
systematic approach utilizing all forms of media and outreach distribution
• Preparing and maintaining a user-friendly website committed to information related to codes,
processes, and incentives pertaining to the development of ADUs and JADUs in the City.
• Evaluating and assessing the appropriateness of additional incentives to encourage ADU
development.
• Approve permit-ready standard plans to permit new ADU construction to minimize design costs,
expedite permit processing, and provide development certainty for property owners.
Timeframe: Analyze methods within 12 months of Housing Element adoption; Establish programs within 24
months of Housing Element adoption.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
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Policy Action 1I: Accessory Dwelling Units Monitoring Program
The City will annually monitor its progress in permitting an average of 30 ADUs annually, for a total of 240
ADUs during the planning period, in conjunction with Annual Housing Element Progress Report. The
analysis will track applications for ADUs, location, affordability, and other important features. If ADU
permitting falls below 20 ADUs for more than two consecutive years, the City re-evaluate the City's ADU
standards and procedures and modify accordingly within 6 months. If actual production of ADUs is far
from anticipated trends, then the City will commit to increasing the capacity or inventory of sites within
six months. This increase in capacity would apply to the proposed rezoning focus areas to demonstrate
the City has remaining capacity to accommodate RHNA need previously assumed through ADU
construction. If actual production is near anticipated trends, then the City will consider additional
outreach and marketing
Timeframe: Ongoing, Annual, Developing Monitoring Program within 6 months of adoptions of Housing Element,
Increase capacity in rezone areas withing 6 months if monitoring program is far from anticipated trends.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1J: Accessory Dwelling Units Amnesty Program
The City will establish a program to allow owners with existing unpermitted ADUs to obtain permits to
legalize the ADUs during the 2021-2029 planning period. The Amnesty Program should consist of two
parts: 1) education; and 2) incentives. The intent of Part 1 (education) of the program is to create an
information guide to help educate and inform the importance and benefits of legalizing and bringing their
unpermitted units into compliance. The information guide will include an overview of the necessary life
safety code requirements and improvements that will need to be provided for permit issuance and advice
on how to discuss and ask questions of permitting staff without the risk of Code Enforcement action. The
information guide will also explain how the City’s ADU regulations have created an easier path towards
compliance whereas previously not feasible. Part 2 (Incentives) of the program will provide property
owners incentives, such as fee waivers, courtesy inspections, or grants, to encourage property owners to
seek permits to legalize units and make them safe for habitation.
Timeframe: Develop Amnesty Program within 24 months of Housing Element adoption, Target 10 Households
annually to participate in the program.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 1K: Inclusionary Housing Policy
The City has a substantial RHNA obligation of affordable housing that will be a challenge to accommodate
due to prevailing project development costs include high land values. Therefore, the City must evaluate
a variety of policy prescriptions that will encourage and facilitate the construction of below market-rate
housing. The City will investigate inclusionary housing policy options as an additional means to provide a
variety of housing types and opportunities for very low, low- and moderate-income households in
Newport Beach. The City will assess and analyze a variety of inclusionary housing policy options,
standards, requirements and regulations to determine the best course of action. Based upon this initial
assessment, the City will determine the appropriateness and application of inclusionary policies, and
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adopt policies, programs or regulations that will produce housing opportunities affordable to very low,
low and moderate-income households.
The City has determined that a base inclusionary requirement of 15 percent for new residential
development to be affordable to very low-, low-, and moderate-income households is appropriate as an
interim measure prior to the adoption of a final inclusionary ordinance or policy. The final inclusionary
policy shall address development of rental and for-sale housing affordable to very low, low- and
moderate-income households, as well as the applicability of this requirement and its alternatives.
Timeframe: Adopt interim inclusionary policy within 6 months of Housing Element adoption. Evaluate
Inclusionary options and adopt an Ordinance within 36 months of Housing Element adoption.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Housing Goal #2
Quality residential development and preservation, conservation, and appropriate redevelopment of
housing stock.
Housing Policy 2.1: 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.
Implementation Actions
Policy Action 2A: Neighborhood Preservation
The City will continue to improve housing quality and prevent deterioration of existing neighborhoods by
strictly enforcing applicable Building Code, Fire Code, and Zoning Code regulations and abating Code
violations and nuisances. The City of Newport Beach will continue to prepare a quarterly report on code
enforcement activities in the 6th Cycle.
Timeframe: Ongoing, Semi-Annual
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 2B: Residential Building Record Program
The City will maintain and continue to implement the Residential Building Records (RBR) program to
reduce and prevent violations of building and zoning ordinances by providing a report to all parties
involved in a transaction of sale of residential properties, and providing an opportunity to inspect
properties to identify potentially hazardous conditions, resources permitting. The report provides
information as to permitted and illegal uses/construction, and verification that buildings meet applicable
zoning and building requirements.
The City will continue to implement this program as RBR applications are submitted to the City. The City
will continue to promote the availability of program to the public and local real estate professionals by
maintaining information on its website and developing brochures and other promotional materials.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-13
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 2C: Preservation of At-Risk Units
There are a number of assisted housing developments or individual housing units within development
that may be at-risk of converting to market rate during the 10-year period from the beginning of the 2021-
2029 Housing Element planning period. “Assisted housing developments” shall mean multifamily rental
housing that receives governmental assistance under federal programs listed in subdivision (a) of
Government Code Section 65863.10, state and local multifamily revenue bond programs, local
redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees.
“Assisted housing developments” shall also include multifamily rental units that were developed pursuant
to a local housing program or used to qualify for a density bonus pursuant to Government Code Section
65916. During the planning period, preservation of the assisted housing developments shall utilize, to the
extent necessary, all available federal, state, and local financing and subsidy programs including those
listed above, except where a City demonstrates it has other urgent needs for which alternative funding
sources are not available. The city will include strategies that involve local regulation and technical
assistance, including maintaining registration as a Qualified Preservation Entity with HCD to ensure that
the City will receive notices from all owners intending to opt out of their Section 8 contracts and/or prepay
their HUD-insured mortgages. The City will proactively consult with the property owners identified in
Table 3-31 of the Housing Element and potential preservation organizations regarding use of all federal,
state and local resources to be used for maintaining affordable housing opportunities in those
developments listed in Table 3-31 of Chapter 3 of this Housing Element. The City will provide technical
assistance to non-profit entities for acquisition of the units to ensure long-term affordability, upon
receiving notice that a property owner of an existing affordable housing development intends to convert
the units to a market-rate development. The City will provide specific assistance to owners of these units
by making initial contact within 9 months of Housing Element adoption to identify and coordinate
assistance. The City will provide in-kind assistance, through information dissemination, to assist in
partnering local assisted unit owners with agencies or entities that can provide financial or other
assistance to preserve the affordability of these units.
The City will maintain registration as a Qualified Preservation entity with HCD and continuously implement
the above policy as notices are received from property owners in the 6th Cycle.
Timeframe: Ongoing, as necessary to preserve affordability. Initial contact with owners within 9 months of
Housing Element adoption.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund, State, Federal funding
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-14
Housing Goal #3
A variety of housing types, designs, and opportunities for all social and economic segments.
Housing Policy 3.1: Encourage preservation of existing and provision of new housing affordable to
extremely low-, very low-, low-, and moderate-income households.
Housing Policy 3.2: Encourage housing developments to offer a wide spectrum of housing choices,
designs, and configurations.
Implementation Actions
Policy Action 3A: Objective Design Standards
State Housing law includes various exemptions for projects with an affordable housing component, which
limits the City’s ability to apply discretionary design review requirements to certain residential projects.
State Housing law specifies having objective design standards available to apply to housing projects where
the City’s discretion over design review is otherwise preempted per State law. The City of Newport Beach
will review existing entitlement processes for housing development and will eliminate discretionary
review for all housing development proposals that include a minimum affordable housing component.
The City will also review the appropriateness of its current development standards to ensure that it
reasonably accommodates the type and density of housing it is intended to support. The City will also
amend existing development standards to replace or remove all subjective standards for projects with a
minimum affordable housing component with objective standards that do not impede the type and
density of housing it is intended to allow.
Timeframe: Adopt standards within 24 months of Housing Element adoption
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 3B: SB 35 Streamlining
The City will establish written procedures to comply with California Government Code Section 65913.4
and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35,
Chapter 366 Statues 2017. These requirements apply at any point in time when the City does not meet
the State mandated requirements, based upon the SB 35 Statewide Determination Summary Report for
Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA)., the City will
process development projects with at least 50 percent affordable units through a streamlined permit
process (i.e., 90 days for projects with up to 150 units). All projects covered by SB 35 are still subject to
the objective development standards of the Newport Beach Municipal Code that includes the Building
and Fire Codes. However, qualifying projects cannot be subject to discretionary review or public hearings;
and in many cases the City cannot require parking. Reduced parking requirements would be established
consistent with the requirements of SB 35 for qualified streamlining projects.
201
Section 4: Housing Plan (September 2022 Final Housing Element) 4-15
The City currently has consistently exceeded RHNA performance goals during the 5th Cycle. The City’s
status regarding SB 35 could change during the 6th Cycle dependent upon RHNA progress throughout the
2021-2029 Planning Period.
Timeframe: Adopt procedures within first year of the planning period
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 3C: Preservation of Rental Opportunities
The City will continue to maintain rental housing opportunities by restricting conversions of rental units
to condominiums in a development containing 15 or more units unless the rental housing vacancy rate in
Newport Beach is 5 percent or higher, and unless the property owner complies with condominium
conversion regulations contained in Newport Beach Municipal Code Chapter 19.64. The City’s intent is to
ensure no net loss in rental opportunities in existing sites that contain 15 or more units and that the
conversion of rentals do not create an imbalance of opportunity in the community. The City will conduct
an annual vacancy rate survey to support the implementation of this policy.
To protect lower and moderate-income rental housing, the City shall amend the Municipal Code to restrict
the demolition of lower and moderate-income rental housing on sites that provide more than 15 units
unless the units maintain the same income categories after demolition.
Timeframe: Ongoing. Update Municipal Code within 24 months of Housing Element adoption.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 3D: Priority of Affordable Housing
The City will continue to 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 lower- and moderate-income
housing requirements. The City will continue to implement this program as affordable housing projects
are submitted to the City.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 3E: Mortgage Revenue Bonds
The City will 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. The City will continue to implement program per project
submittal as the developer applies for these bonds. The City will adjust this policy to include the promotion
of available bonds to the public and developers in the 6th Cycle.
Timeframe: Ongoing, Annual
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
202
Section 4: Housing Plan (September 2022 Final Housing Element) 4-16
Policy Action 3F: Annual Reporting Program
The City will conduct an annual compliance-monitoring program for units required to be occupied by very
low-, low-, and moderate-income households. The City of Newport will complete review by the last
quarter of each year and report within the annual General Plan Status Report including the Housing
Element Report provided to OPR and HCD by April 1st each year.
Timeframe: Ongoing. Annual
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 3G: Entitlement Assistance
The City will provide entitlement assistance, expedited entitlement processing, and waive application
processing fees for developments in which 5 percent of units are affordable to extremely low-income
households. To be eligible for a fee waiver, the units shall be subject to an affordability covenant for a
minimum duration of 55 years. The affordable units provided shall be granted a waiver of park in-lieu fees
(if applicable) and City traffic fair share fees.
The City will continue to implement this program as affordable housing projects are submitted to the City
in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 3H: Prioritization of Affordable Housing Funds
The City will give highest priority for use of Affordable Housing Fund monies to affordable housing
developments providing units affordable to extremely-low-income households and senior households.
The City will continue to implement this program as affordable housing projects are submitted to the City.
The City shall establish objective priorities to allow for the ranking/scoring of future affordable housing
projects so that expenditures that most meet the City’s objectives are prioritized for funding.
Timeframe: Ongoing. Establish objective priorities with project ranking/scoring within 16 months of Housing
Element adoption.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: Affordable Housing Fund, based upon available funds
Policy Action 3I: Public Information About Affordable Housing
The City will continue to maintain a brochure of incentives offered by the City for the development of
affordable housing including fee waivers, expedited processing, density bonuses, and other incentives. A
copy of this brochure shall be located at the Planning Counter, on the City’s website and shall also be
provided to potential developers.
The City will update the brochure as needed to provide updated information regarding incentives
including updated fees and a reference to the most up to date Site Analysis and Inventory.
203
Section 4: Housing Plan (September 2022 Final Housing Element) 4-17
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 3J: Priority in Kind Assistance for Affordability
The City shall provide more assistance for projects that provide a higher number of affordable units or a
greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided
from Community Development Block Grant (CDBG) funds or the City’s Affordable Housing Fund. The City
will continue to implement the program as housing projects are submitted to the City in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 3K: Coastal Zone Development Affordability
The City shall follow Government Code Section 65590 and implement Municipal Code Titles 20.34 and
2134 “Conversion or Demolition of Affordable Housing” for new developments proposed in the Coastal
Zone areas of the City. All required affordable units shall have restrictions to maintain their affordability
for a minimum of 55 years.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 3L: Proactive Education and Outreach to Prospective Developers
The City will continue to advise and educate existing landowners and prospective developers of affordable
housing development opportunities available within Banning Ranch, the Airport Area, West Newport
Mesa, Dover-Westcliff, Newport Center, Mariners’ Mile, and Balboa Peninsula areas. The City of Newport
Beach will continue to implement its program as prospective developers contact the City seeking
development information. The City will maintain designated staff persons that can be contacted to
provide housing opportunity information and incentives for development of affordable housing during
the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 3M: Regional Coordination of Housing Issues
The City will continue to participate in other programs that assist production of housing. The City will
attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation
programs offered by the County in order to continuously inform homeowners and rental property owners
within the City of opportunities and to encourage preservation of existing housing stock in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
204
Section 4: Housing Plan (September 2022 Final Housing Element) 4-18
Policy Action 3N: Housing Impact Studies
The City will continue to study housing impacts of proposed larger-scale, significant commercial/industrial
projects 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 any restrictions on development due to the
City “Charter Section 423”. The City will continue to implement such program as major
commercial/industrial projects are submitted to the City in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 3O: Single Resident Occupancies (SROs)
The City will continue to study housing impacts of proposed larger-scale, significant commercial/industrial
Use State and federal funding to continue to provide assistance and make provisions for development of
single-room occupancy (SRO) housing and other forms of housing for people experiencing homelessness
in the City. The City will ensure that such housing options include reasonable accommodations and
supportive services for people with disabilities. The City will seek to encourage the development of at
least one SRO development within the Planning Period.
Timeframe: Ongoing, with targeted outreach on an annual basis.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: : To be determined as State and federal funding sources become available.
Policy Action 3P: Residential Care Facilities
The City will review and amend the permitting procedures, application requirements, and development
standards applicable to residential care facilities for persons of 7 or more to ensure consistency with state
and federal laws to promote objectivity and greater approval certainty.
Timeframe: By October 2022 and amend the Zoning Code by April 2023 if needed.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund.
205
Section 4: Housing Plan (September 2022 Final Housing Element) 4-19
Housing Goal #4
Housing opportunities for as many renter- and owner-occupied households as possible in response
to the market demand and RHNA obligations for housing in the City.
Housing Policy 4.1: Mitigate potential governmental constraints to housing production and affordability
by increasing the City’s role in facilitating construction of market-rate housing and affordable housing for
all income groups.
Housing Policy 4.2: Enable construction of new housing units sufficient to meet City quantified goals by
identifying adequate sites for their construction.
Implementation Actions
Policy Action 4A: Affirmatively Furthering Fair Housing
Pursuant to AB 686, Chapter 958, Statutes 2018, the City will affirmatively further fair housing by taking
meaningful actions in addition to resisting discrimination, that overcomes patterns of segregation and
fosters inclusive communities free from barriers that restrict access to opportunity based on protected
classes, as defined by State law.
To accomplish this, the City or designated contracted organization will collaborate with local and regional
organizations to review any housing discrimination complaints, assist in dispute resolution, and, where
necessary, refer complainants to appropriate state or federal agencies for further investigation, action, and
resolution.
Section 3 of this Housing Element contains an analysis of fair housing activities in Newport Beach and the
Orange County region.
The analysis found that:
• The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity
index, indicating that while the City of Newport Beach has no racial or ethnic populations with a
dissimilarity index above 60, all populations (with the exception of the Hispanic/Latino
population) have a score above 30, meaning all groups experience moderate segregation from
the White population.
• The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified
by HUD. This indicates that there are no census tracts within Newport Beach with a non-white
population of 50 percent or more or any census tracts that have a poverty rate that exceeds
40 percent or is three or more times the average tract poverty rate for the metropolitan/
micropolitan area. However, one R/ECAP was identified in the neighboring City of Irvine, near the
University of California Irvine. This will be considered in the housing plan as students within the
R/ECAP may look for housing in Newport Beach.
206
Section 4: Housing Plan (September 2022 Final Housing Element) 4-20
• The UC Davis Regional Opportunity Index shows that most residents within Newport Beach have
a high level of access to opportunity throughout the majority of the City, with only two census
tracts showing low access to opportunity.
• The analysis of the TCAC/HCD opportunity Area Maps shows that most census tracts in Newport
Beach are classified with the “Moderate Resource” “High Resource” or “Highest Resource”
designation. This indicates that these census tracts are within the top 40 percent in the region in
terms of areas that lower-income residents may thrive if given the opportunity to live there. All
but two census tracts within Newport Beach register within the top 20 percent in the index. One
census tract registered as a “Low Resource” area, citing high economic opportunity and low
educational opportunity.
• The Opportunity Indices identify overall high access to quality resources including economic and
job proximity, educational access, and transportation access. However, there is a low health
index, indicating increased pollution and low environmental quality across all racial/ethnic groups
in the City. The opportunity indices identify low affordable transportation options to both the
Asian or Pacific Islander (Non-Hispanic) and Native American (Non-Hispanic). Additionally, the
index identified that households who earn below the poverty rate in Newport Beach have lower
levels of opportunity access across all indicators as well as race and ethnicities.
• Racially Concentrated Areas of Affluence (RCAA) are characterized by census tract areas in which
80 percent or more of the population is White and that have a median income of at least
$125,000. There are 12 census tracts within the City that are identified as RCAAs.
• Newport Beach and the State have the same rate of home ownership, but residents of Newport
Beach experience higher rates of cost burden. Housing adequacy and affordability are similar in
both the City and State, where California has a slightly higher rate of affordability.
• Newport Beach scored a 3.9 AllTransit performance score, illustrating a low combination of trips
per week and number of jobs accessible that enable a moderate number of people to take transit
to work. In total, 138,164 jobs are accessible within a 30-minute trip from Newport Beach,
however just 0.55 percent of commuters use transit. By comparison, Newport Beach scored lower
than neighboring jurisdictions of Costa Mesa (5.4), Huntington Beach (4.4), and Irvine (3.6),
however slightly higher than Laguna Beach (3.8). Overall, the City of Newport Beach has a lower
AllTransit score than the County of Orange (3.9) in Newport Beach and 4.2 in the County).
During the planning period, the City will take the following explicit actions to address and implement Fair
Housing issues and to affirmatively further fair housing in the community:
207
Section 4: Housing Plan (September 2022 Final Housing Element) 4-21
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
Anti-
Displacement
/ Housing
Mobility
The City does not have any
racially or ethnically
concentrated census tracts
(R/ECAPs) as identified by
HUD. This indicates that there
are no census tracts within
Newport Beach with a non-
white population of 50
percent or more or any
census tracts that have a
poverty rate that exceeds
40 percent or is three or more
times the average tract
poverty rate for the
metropolitan/ micropolitan
area. However, one R/ECAP
was identified in the
neighboring City of Irvine,
near the University of
California Irvine. This will be
considered in the housing
plan as students within the
R/ECAP may look for housing
in Newport Beach.
Airport Area,
adjacent to UC
Irvine
To help address this issue, the City will
take the following actions:
1. Address potential R/ECAP
and Environmental Justice
issues by adopting an
amendment to include
policies addressing
environmental justice in the
General Plan; and
2. Facilitate an annual meeting
with representatives from
the City of Irvine and UC
Irvine or other major
employers to address any
local affects these R/ECAP
areas may have on
opportunity for housing in
Newport Beach.
Low Timeline(s):
By December 2024, the City will aim to
adopt amendments to the General Plan
to include environmental justice policies
that promote a reduction in poverty rate,
promote diversity, and require
consideration of environmental justice
principles in City decision-making.
Evaluative Metric(s):
1. The City will strive to meet
annually with representatives
from the City of Irvine and UC
Irvine to review whether the
R/ECAP is contributing to any
fair housing issues. If
determined to be a contributor,
the City will coordinate
additional actions that will seek
to reduce or eliminate the
R/ECAP identified adjacent to UC
Irvine.
208
Section 4: Housing Plan (September 2022 Final Housing Element) 4-22
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
Access to
Opportunity /
Place Based
Strategies
The UC Davis Regional
Opportunity Index shows that
most residents within
Newport Beach have a high
level of access to opportunity
throughout the majority of
the City, with portions of only
two census tracts showing
low access to opportunity.
Two census
tracts with low
access to
opportunity.
In the
following
areas:
1. In the
West
Newport
Focus
Area
adjacent
to Hoag
Hospital
2. In the
Airport
Focus
Area,
adjacent
to John
Wayne
Airport
To help address this issue, the City will
take the following actions:
1. Adopt and codify accessory
dwelling unit (ADU)
regulations that facilitate
and incentivize ADU
development beyond State
law minimum requirements,
create new housing
development incentives and
fee waivers, and that provide
for access into areas of high
opportunity that contribute
to the following community
development actions:
o Increase residential
development
opportunities;
o Maximize infill
development in
“built-out”
neighborhoods; and
o Increase affordable
housing options.
2. Target outreach to the two
census tracts with low access
to opportunity; and
High Timeline(s):
By June 2023, the City will aim to adopt
revised ADU regulations. By December
2023, the City will conduct two
community workshops that are focused
within the geographic target.
Evaluative Metric(s):
1. The City will seek to produce 20
to 30 ADUs per calendar year
within higher resource areas;
and
2. The City will seek to make
contact with at least 50% of the
households in the affected
census tracts.
209
Section 4: Housing Plan (September 2022 Final Housing Element) 4-23
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
3. Conduct two community
workshops that will
accomplish the following:
o Identify local issues
that are influencing
low access to
opportunity;
o Identify potential
solutions to address
those local issues;
o Identify
opportunities to
increase the
housing supply for
all income levels;
and
o Establish economic
development
priorities to help
stimulate the
creation of jobs and
access to services.
Access to
Opportunity /
Place Based
Strategies
The analysis of the TCAC/HCD
opportunity Area Maps shows
that most census tracts in
Newport Beach are classified
with the “Moderate
Resource” “High Resource” or
“Highest Resource”
Two census
tracts with low
access to
opportunity
are in the
following
areas:
To help address this issue, the City will
take the following actions:
• Adopt an Inclusionary
Housing Ordinance (See
Policy Action 1K) to ensure
lower income units are
developed in conjunction
Timeline(s):
Starting 2023, the City will annually
review and update its housing-related
webpages. Within 6 months of Housing
Element adoption, the City will adopt an
interim inclusionary housing policy.
Within 36 months of Housing Element
210
Section 4: Housing Plan (September 2022 Final Housing Element) 4-24
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
designation. This indicates
that these census tracts are
within the top 40 percent in
the region in terms of areas
that lower-income residents
may thrive if given the
opportunity to live there. All
but two census tracts within
Newport Beach register
within the top 20 percent in
the index. One census tract
registered as a “Low
Resource” area, citing high
economic opportunity and
low educational opportunity.
1. In the
West
Newport
Focus
Area
adjacent
to Hoag
Hospital
2. In the
Airport
Focus
Area,
adjacent
to John
Wayne
Airport
with new market-rate
development equitably
throughout the City and
higher resource census
tracts;
• Target outreach to two low-
access census tracts via
mailers or by other means
including social media to
provide website information
about local entrepreneurship
and educational
opportunities;
• Maintain and promote the
City’s Business Ambassador
Program to local residents as
a way to support local
businesses and
entrepreneurship; and
• Continually update the City’s
housing related webpages to
ensure current available
data.
adoption, the City will adopt an
inclusionary housing ordinance.
Evaluative Metric(s):
1. By December 2026, the City will
aspire to have approved
between 750 and 1,000
affordable housing units or to
have collected a commensurate
in-lieu affordable housing fee for
use to subsidize future
affordable housing projects;
2. The City will improve upon its
existing Business Ambassador
Program and will seek to assist at
least 35-45 persons annually
with establishing their own
business opportunities; and
3. The Business Ambassador
Program will be advertised
within the lower-opportunity
census tracts with a goal of
reaching at least 50% of the
households.
211
Section 4: Housing Plan (September 2022 Final Housing Element) 4-25
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
Housing
Mobility
Availability of financing
affects a person’s ability to
purchase or improve a home.
Under the Home Mortgage
Disclosure Act (HMDA),
lending institutions are
required to disclose
information on the
disposition of loan
applications and the income,
gender, and race of loan
applicants. The primary
concern in a review of lending
activity is to determine
whether home financing is
available to residents of a
community.
According to available data,
applicants in the 120 percent
median-income or more had
the highest rates of loans
approved. Of that income
category, applicants who
reported White had the
highest percentage of
approval and the number of
applications. Applicants in the
less than 50 percent of the
MSA/MD median-income
Citywide To help address this issue, the City will
take the following actions:
1. Disseminate online
information to the
community about home
loans and the loan
application and approval
process;
2. Conduct biannually
affordable housing
workshops with invited
guests from the local lending
industry and local affordable
housing advocates; and
3. Conduct annual report of
loan dispositions in the City
and identify any trends or
issues. Provide findings to
local lenders and financial
institutions.
Medium Timeline(s):
By June 2023, the City will provide
information to the community about
home loans and the loan process. By
December 2023, the City will conduct its
first biannual affordable housing
workshop with affordable housing
lenders and local affordable housing
advocates.
Evaluative Metric(s):
1. The City will seek to reach
between 10,000 and 15,000
households with loan
information and will further seek
to reduce any occurrence of loan
disposition discrimination, if
found to be prevalent.
212
Section 4: Housing Plan (September 2022 Final Housing Element) 4-26
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
categories were showed
higher percentages of denied
loans than loans originated.
According to the data,
applicants who reported
white were, on average, more
likely to be approved for a
loan than another race or
ethnicity.
Access to
Opportunity
The majority of the City of
Newport Beach is classified as
a high opportunity zone. This
indicates a high level of
relative opportunities that
people can achieve as well as
a high level of relative
opportunities that Newport
Beach provides.
While most of the census
tracts within the City are
areas of high opportunity,
there are two census tracts
identifying as low
opportunity. Together these
areas contain 86 sites which
Citywide w/
focus on two
census tracts
in the
following
locations:
1. In the
West
Newport
Focus
Area
adjacent
to Hoag
Hospital
2. In the
Airport
To help address this issue, the City will
take the following actions:
• Conduct two public workshops
for residents of the two census
tracts identifying as lower
opportunity;
• Collaborate with the Chamber of
Commerce to disseminate
economic opportunity through
entrepreneurship, job training on
the City’s website;
• Maintain and promote the City’s
Business Ambassador Program to
local residents as a way to
support local businesses and
entrepreneurship; and
Timeline(s):
Within the first half of the planning
period, the City will conduct two public
workshops on entrepreneurship and job
training.
Evaluative Metric(s):
1. The City will improve upon its
existing Business Ambassador
Program and will seek to assist at
least 35-45 persons annually with
establishing their own business
opportunities; and
2. The Business Ambassador Program
will be advertised within the lower-
opportunity census tracts with a goal
213
Section 4: Housing Plan (September 2022 Final Housing Element) 4-27
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
accommodate 1,941 potential
units intended to meet the
City’s RHNA for lower-income
units (shown in Section 3:
Housing Resources and
outlined in Appendix B).
The data for both regions with
lower opportunity show very
low housing access, but
conversely show high civic
life, health, transportation,
economic and educational
access..
Therefore, the consideration
and identification of these
areas for housing, affordable
to low and very low-income
households will address the
deficiency to housing access
in these otherwise high
opportunity and high
resources areas.
Focus
Area,
adjacent
to John
Wayne
Airport
• Provide direct contact to
residents within the lower
opportunity census tracts via
mailers or other means including
social media to invite them to
workshop.
of reaching at least 50% of affected
households.
214
Section 4: Housing Plan (September 2022 Final Housing Element) 4-28
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
Access to
Opportunity
Access to education is
generally above average in
Newport Beach. Additionally,
access to quality education
system is high among all
racial/ethnic groups (each
group has an opportunity
index score above 80).
Citywide To further improve access to
education, the City will take the
following action:
1. Conduct an annual meeting
with local educational
institutions to discuss
housing needs related to
education
High Timeline(s):
Beginning 2023, the City will conduct
meetings annually with local educational
institutions.
Evaluative Metric(s):
1. The City will leverage the input from
the annual meetings to identify up to
two additional City policies or actions
that will help enhance access to
education.
Place Based
Strategies /
Access to
Opportunity
The City of Newport Beach
has a low transit performance
score overall. The City has
identified low- and very low-
income housing opportunity
sites in the Airport Area
Environs in the north, the
West Newport Mesa Area in
the west, and the Newport
Center Area in the central
area of the City. While these
three areas of the City have
low transit performance
scores, they have high
connectivity scores compared
to other areas throughout the
City. Households within these
Citywide, with
focus on the
Airport Area
environs.
To help improve access to transit, the
City will take the following actions:
1. In adopting the annual
Capital Improvements
Program (CIP), the City will
seek and consider projects
that will help improve access
to transit near housing
opportunity sites;
2. Maintain a proactive working
partnership with the Orange
County Transportation
Authority (OCTA) to continue
to plan and coordinate public
transit routes to serve
existing community facilities
and future development.
Medium Timeline(s):
Starting with the adoption of the FY23-24
Capital Improvement Program , the City
will annually consider projects that
enhance access to transit in the targeted
areas of need. By December 2024, the
City will consider updating the Land Use
Element to include policies encouraging
denser residential near transit stops.
Evaluative Metric(s):
1. The City will seek improve or trend
the City’s AllTransit Score from 3.9 to
5.0 or greater by the end of the
Housing Elementplanning period.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-29
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
areas have better access to
jobs and key destinations
through transit than those
located elsewhere in the City.
The majority of the low- and
very low-income sites were
strategically located within
the Airport Area Environs,
West Newport Mesa Area,
and the Newport Center Area
to take advantage of the
increased transportation
assets within these areas.
Continue to provide local
input on the Long-Range
Transportation Plan (LRTP);
and
3. With the Land Use Element
Update, the City will consider
policies that would
encourage denser housing
projects closer to transit
stops consistent with the
housing opportunity sites
identified in Appendix B.
Place Based
Strategies /
Displacement
The City of Newport Beach
has very high comparative
rental and sales prices.
The cost of housing limits
upward mobility and the costs
of upkeep, repairs or
rehabilitation,
especially for older housing
units, may be prohibitive for
some segments of the
population.
Citywide To help address this issue, the City will
take the following actions:
1. Continue to provide quarterly
and virtual training to
landlords and tenants on fair
housing requirements
including allowable rent
increases, source of income
discrimination, and benefits
of marketing housing units
for vouchers to expand the
locations of registered units
in the City. Provide update
information on the City’s
website;
Medium Timeline(s):
By December 2023, the City will revamp
and provide updated information on the
website related to fair housing.
Within 6 months of Housing Element
adoption, the City will adopt an interim
inclusionary housing policy.
Within 36 months of Housing Element
adoption, the City will adopt an
inclusionary housing ordinance.
Evaluative Metric(s):
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-30
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
2. Encourage development of
ADUs in high opportunity
areas through targeted public
outreach, user-friendly
websites, pre-approved
standard plans, fee waivers,
and priority processing; and
3. Incentivize development of
affordable housing units
through inclusionary housing
policies (Policy 1K).
1. Ensure the provision of quarterly fair
housing educational workshops
conducted by a qualified fair housing
service provider;
2. The City will seek to assist at least 5
households annually through rehab
assistance. The City will seek to
abate 75% of major deferred
maintenance incidents during the
planning period; and
3. The City will seek to produce 20 to 30
ADUs per calendar year within higher
resource areas.
Access to
Opportunity
There are approximately 12
census tracts that are
considered racially
concentrated areas of
affluence (RCAA) in the City.
The RCAA areas are clustered
throughout the City
predominately in the east and
along the southern and
western boundaries of the
City. The concentrations of
lower income households
located in the northern,
Citywide,
predominately
in the east and
along the
southern and
western
boundaries of
the City
To help address this issue, the City will
take the following actions:
1. Conduct summary review of
RCAA census tracts to identify
potential redlining; and
2. Use findings from redlining
study to develop potential
ggreenlining policies that can
be employed to benefit RCAA
areas.
Medium Timeline(s):
By June 2024, the City will conduct a
summary review of RCAA census tracts.
By June 2025, the City will use findings
from the study to develop potential
policies.
Evaluative Metric(s):
1. The City will seek to reduce the
incidents of unlawful redlining (if
found) in these RCAA by between 35-
50% during the planning period.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-31
Table 4-1: Fair Housing Actions
Identified Fair
Housing Issue Local Contributing Factors Geographic
Target City Actions Priority Timeline and Metrics
western, and central areas of
the City are in high income
areas surrounded by RCAAs.
The location of these area
provides affordable housing
opportunities within areas
with high access to resources.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-32
The City will maintain compliance with Fair Housing Laws and Regulations. The City will annually
review and, if necessary, amend its Municipal Code to comply with State Housing Laws and Fair
Housing Laws and Regulations.
Timeframe: Review annually, amend actions and modify Municipal Code as necessary to continue to affirmatively
further fair housing and comply with State Housing Laws and Fair Housing Laws and Regulations.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 4B: Streamlined Project Review
The City will provide a streamlined “fast-track” development review process for proposed affordable
housing developments. The City of Newport will continue to implement this program as affordable
housing projects are submitted to the City in the 6th Cycle.
Timeframe: Evaluate program features within 24 months, Adopt updated procedures within 36 months of
Housing Element adoption
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 4C: Density Bonus and Incentives for Affordable Housing
The City will update its Density Bonus Ordinance (Newport Beach Municipal Code Chapter 20.32) to be
consistent with State Law, as amended. Additionally, the City shall either grant a density bonus as
required by state law if requested, or provide other incentives of equivalent financial value when a
residential developer agrees to construct housing for persons and families of very low, low, and
moderate-income above mandated requirements. The City will continue to implement provisions of
Chapter 20.32, as amended (Density Bonus) of the Zoning Code as housing projects are submitted to the
City during the 6th Cycle. The City will further encourage affordable housing and the potential use of
density bonus statutes to accommodate additional affordable units.
Timeframe: Update to Newport Beach Municipal Code Chapter 20.32 within 12 months of the adoption of this
Housing Element and implement future updates to maintain consistency with applicable State law on an ongoing
basis.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 4D: List of Pre-Approved Development Incentives
The City will develop a pre-approved list of incentives and qualifications for such incentives to promote
the development of affordable housing. Such incentives could include the waiver of application and
development fees or modification to development standards (e.g., setbacks, lot coverage, etc.). The City
will continue to work with the Affordable Housing Task Force to develop the list within the 6th Cycle.
Timeframe: Evaluate program features within 24 months, Adopt procedures within 36 months of Housing
Element adoption
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-33
Policy Action 4E: Airport Area Policy Exceptions for Affordable Housing
The City recognizes that General Plan Policy LU6.15.6 may result in a potential constraint to the
development of affordable housing in the Airport Area, and as a result, the City shall maintain an exception
to the minimum 10-acre village requirement for projects that include a minimum of 30 percent of the
units affordable to lower-income households. It is recognized that allowing a smaller scale development
within an established commercial and industrial area may result in land use compatibility problems and
result in a residential development that does not provide sufficient amenities (i.e., parks) and/or
necessary improvements (i.e., pedestrian walkways). Therefore, it is imperative that the exception
includes provisions for adequate amenities, design considerations for the future integration into a larger
residential village, and a requirement to ensure collaboration with future developers in the area. The City
of Newport Beach will maintain the exception and continue to implement this program as projects are
submitted to the City in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 4F: Encourage Development of Opportunity Sites
The City will continue to encourage and facilitate residential and/or mixed-use development on sites listed
in Appendix B by providing technical assistance to interested developers with site identification and
entitlement processing. The City will continue to support developers funding applications from other
agencies and programs.
The City shall post the Sites Inventory, as showing in Appendix B on the City’s webpage and produce
marketing materials for residential and mixed-use opportunity sites, and it will equally encourage and
market the sites for both for-sale development and rental development. The City shall educate developers
of the benefits of density bonuses and related incentives, identify potential funding opportunities, offer
expedited entitlement processing, and offer fee waivers and/or deferrals to encourage the development
of affordable housing within residential and mixed-use developments. The City will continuously
implement this program as housing projects are submitted to the City. Review and update as necessary
the Site Inventory and provide information to interested developers.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 4G: Annual RHNA Sites Inventory Monitoring
The City will monitor and evaluate the development of vacant and underdeveloped parcels on an annual
basis and report the success of strategies to encourage residential development in its Annual Progress
Reports required pursuant to Government Code 65400. The City of Newport will respond to market
conditions and will revise or add additional sites where appropriate or add additional incentives, if
identified strategies are not successful in generating development interest. The City will include the report
in its annual General Plan Status Report including Housing Element Report to OPR and HCD by April 1st
each year.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-34
Timeframe: Ongoing, Annual
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 4H: Review Mixed-Use Zones
As part of the 2006 Comprehensive General Plan Update and 2010 Zoning Code Update, new mixed-use
housing opportunity zones were created throughout the City as a strategy to enhance and revitalize
underperforming and underutilized properties. These areas included the Airport Area, Dover/Westcliff,
Newport Center, Mariners Mile, and portions of the Balboa Peninsula. The Airport Area and Newport
Center have proven the most successful with several approved and constructed mixed-use developments,
such as Uptown Newport and Villas Fashion Island. The Balboa Peninsula has had some limited success
while Dover/Westcliff and Mariners’ Mile have not proven successful to-date.
Despite the housing opportunity that was created in these areas, a majority of these sites remain
underutilized with a single, non-residential use, such as retail or office. It is evident the City’s existing
development standards (e.g., setbacks, height, density, parking, dedications, etc.) related to mixed-use
development may create constraints to the redevelopment of these properties.
Therefore, to ensure that mixed-use opportunities are maximized, the City will review established mixed-
use land use categories and corresponding zoning regulations in the City and recommend policy or code
changes to the City Council that reduce regulatory barriers and incentivize mixed-use residential
development.
Timeframe: Complete the review and provide recommendations to the City Council within 12 months of Housing
Element Adoption, and then complete a review annually thereafter.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 4I: Establish Mixed-Use Resort Opportunities
Mixed-use resorts are an established trend in the hospitality industry that incorporate hotel-branded
residential units as an accessory use located within a resort hotel complex where residents enjoy access
to the full range of services, facilities, and amenities provided by the hotel operator or brand. The
residential use cannot exist without the hotel’s services, facilities, and amenities.
The hotel industry has been one of the hardest hit industries due to the COVID-19 pandemic and a full
recovery of the industry is not anticipated for many years. Mixed-use resorts provide an opportunity to
revitalize older or underperforming hotels and maintain their competitive standing by creating multiple
revenue streams.
Economies of scale created by shared facilities, amenities, and services add additional benefit to mixed-
use resort developments. This cross pollination of business benefits both the hotel and the resident. It
may also increase occupancy rates at the resort by creating increased synergy between uses and social
gathering opportunities, boosting transient occupancy taxes while providing in-fill housing opportunities
to partially assist the City in meeting its RHNA obligation in highly desirable and built-out areas.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-35
Incorporating residences also helps to off-set cyclical variations in hotel occupancy rates that can, for
instance, result in seasonal decreases in revenue for the hotel’s food and beverage offerings.
Therefore, to further encourage and incentivize the development of mixed-use hotels, the City will
consider policies, regulations and/or interpretations to: 1) clarify ambiguities in General Plan, Zoning
Code, and/or Local Coastal Plan Program provisions to allow hotels and motels, located outside of the
Coastal Commission Appeal Areas, to convert up to thirty percent (30%) of their permitted hotel and motel
rooms into residential units on a one-for-one basis; 2) establish parking programs (e.g., shared parking)
and/or reduced residential parking requirements that mitigate the need for any additional parking due to
the conversion to residential use; 3) require a fiscal impact analysis to disclose and mitigate any reduction
in transient occupancy tax due to a potential conversion; 4) increase the flexibility in use of transfer of
development rights to allow for transfer of unbuilt residential units to hotel sites; 5) require property
owners converting permitted hotel and motel rooms into residential units to mitigate impacts to on
affordable housing production by either constructing affordable housing units within the development or
through a contribution of in-lieu fees; 6) require mitigation of impacts to public access for potential
conversions located within the Coastal Zone; and 7) require property owners converting permitted hotel
and motel rooms into residential units to enter into a development agreement to ensure implementation
of this policy at the project level.
Timeframe: Establish policies, regulations and/or interpretations within 24 months of Housing Element Adoption.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 4J: Airport Environs Sub Area Environmental Constraints
As discussed in Section 3 (Analysis of Exacerbating Current Conditions), the Airport Area is potentially
exposed to heightened noise and a lower environmental score primarily due to the proximity of John
Wayne Airport.
The City will take the following actions to address potential environmental constraints in the Airport
Environs Sub Area and ensure continued feasibility of sites, particularly for lower-income RHNA:
• Require new residential development projects in the Airport Environs Sub Area provide noise
studies and acoustical analyses to ensure designs include proper sound attenuation;
• Require new residential development projects in the Airport Environs Sub Area to explore
advanced air filtration systems for buildings to promote cleaner air;
• Encourage on-site indoor amenities, such as fitness facilities or recreation and entertainment
facilities; and
• Continue to implement park dedication requirements consistent with the City’s Park Dedication
ordinance and Land Use Element Policy LU 6.15.13 (Neighborhood Parks – Standards) and Policy
LU 6.15.16 (On-Site Recreation and Open Space) to ensure adequate recreational space to ensure
at least 8-percent of a project’s gross land area (exclusive of existing rights-of-way) of the first
phase for any development in each neighborhood or ½ acre, whichever is greater, is developed
as a neighborhood park, unless waived through Density Bonus Law.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-36
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 4K: West Newport Mesa Environmental Constraints
As discussed in Section 3 (Analysis of Exacerbating Current Conditions), the West Newport Area is possibly
exposed to heightened noise and pollutants largely due to a historic concentration of industrial type uses
in the area.
The City will take the following actions to address environmental constraints and ensure feasibility of sites,
particularly for lower-income RHNA, in the West Newport Mesa Area:
• Continue to coordinate with the South Coast Air Quality Management District (SCAQMD) and
other responsible regulatory agencies to monitor compliance of industrial operators on an as-
needed basis if any issues are identified;
• Closely examine new light industrial uses that may locate in the area to avoid and mitigate
potential environmental impacts to ensure the use/activity is compatible with nearby residential
uses;
• Provide a Code Enforcement Division response when complaints are made and track the nature of
the complaints; review for trends or patterns that may require stronger enforcement actions to
abate identified nuisances;
• Require implementation of the West Newport Mesa Streetscape Master Plan for new private
development projects and consider including improvement projects in the City’s Capital
Improvements Program (CIP);
• Consider including residential-serving commercial as part of a zoning overlay (or similar rezoning
mechanism) to support the future residents and to allow zoning flexibility beyond the underlying
industrial zoning limits as part of the overall rezoning program within 36 months of Housing
Element adoption; and
• Pursue the siting and development of a community center to serve the West Newport area. If a
potential site is identified, the Community Development Department will research the feasibility
from a land use and entitlement perspective and will present findings during at least one study
session with the City Council.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Policy Action 4L: Coyote Canyon Environmental Constraints
As noted, the Coyote Canyon property is locates on a closed landfill or is proximate to the landfill. The
bulk of conceptual residential development is sited away from former landfill areas; however, the City
understands the importance of ensuring the health and safety of future residents and the surrounding
neighborhood.
The City will take the following actions to address environmental constraints on the Coyote Canyon landfill
site:
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-37
• During the Coyote Canyon project design and entitlement phase, work closely with developer(s)
and property owner(s) to ensure all residential units and construction comply with the proper
building and safety code requirements (e.g., ensure seismic standards are met, provide
appropriately designed landfill gas mitigation); and
• Implement the requirements of California Environmental Quality Act and other applicable
environmental regulations.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Housing Goal #5
Preservation of the City’s housing stock for extremely low-, very low-, low-, and moderate-income
households.
Housing Policy 5.1: Continue or undertake the following programs to mitigate potential loss of “at risk”
units due to conversion to market-rate units. These efforts utilize existing City and local resources. They
include efforts to secure additional resources from public and private sectors should they become
available.
Housing Policy 5.2: Improve energy efficiency of all housing unit types (including mobile homes).
Implementation Actions
Policy Action 5A: Preservation of Affordability Covenants
The City will contact owners of 19 affordable units approaching the expiration of affordability covenants
to obtain information regarding their plans for continuing affordability on their properties, inform them
of financial resources available, and to encourage the extension of the affordability agreements for the
developments listed beyond the years noted.
The City will conduct an annual compliance monitoring program and a contact list shall be maintained on
City website and updated annually during the 6th Cycle.
Timeframe: Ongoing, as necessary
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 5B: Section 8 Participation
The City shall maintain information on the City’s website and prepare written communication for tenants
and other interested parties about Orange County Housing Authority Section 8 opportunities and to assist
tenants and prospective tenants acquire additional understanding of housing law and related policy
issues.
The City will attend quarterly OCHA (Cities Advisory Committee) that provide updates on OCHA Section 8
waiting list and housing opportunities to ensure information provided on City website is up to date. If
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-38
Section 8 waiting list is opened, promote the availability of the program through marketing materials
made available to the public.
Timeframe: Ongoing, Annual
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 5C: Incentivize for Preserving of Affordability Covenants
The City will investigate the potential for providing additional incentives or modify its current policy to
incentivize property owners to maintain the affordability of units on their property during the 6th Cycle.
Timeframe: Investigate and adopt incentives, as appropriate, within 24 months of Housing Element Adoption
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 5D: Mobile Home Park Conversions
The City will continue to employ the provisions of NBMC Title 20 provision of the Mobile Home Park
Overlay to maintain and protect mobile home parks in a stable environment with a desirable residential
character. The City will review the existing provisions of the Mobile Home Park Overlay for consistency
with State law in accordance with Government Code Section 65863.7. The City will continue to implement
program as projects are submitted to the City.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 5E: Orange County Housing Authority Advisory Committee
The City of Newport Beach will continue to participate as a member of the Orange County Housing
Authority (OCHA) Advisory Committee and work in cooperation with the OCHA to provide Section 8 Rental
Housing Assistance to residents of the community. The City will continue to attend quarterly OCHA (Cities
Advisory Committee). Continue to maintain information on City’s website informing landlords of the
program benefits of accepting Section 8 Certificate holders.
The City will, in cooperation with the Housing Authority, recommend and request use of modified fair-
market rent limits to increase the number of housing units within the City that will be eligible to participate
in the Section 8 program. The Newport Beach Planning Division will prepare and implement a publicity
program to educate and encourage landlords within the City to rent their units to Section 8 Certificate
holders, and to make very low-income households aware of availability of the Section 8 Rental Housing
Assistance Program.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
225
Section 4: Housing Plan (September 2022 Final Housing Element) 4-39
Policy Action 5F: Water Efficiency for Residential Projects
The City will continue to implement and enforce the Water Efficient Landscape Ordinance and Landscape
and Irrigation Design Standards in compliance with AB 1881 (Chapter 559 Statutes 2006). The ordinance
establishes standards for planning, designing, installing, and maintaining and managing water-efficient
landscapes in new construction and rehabilitated projects. The City will continue to implement such
program as housing projects are submitted to the City. The City will also encourage the retrofit of existing
residential developments to install water efficient appliances and fixtures.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 5G: Energy Efficiency in Residential Projects
The City of Newport Beach will continue to require that any affordable housing developments that receive
City assistance from Community Development Block Grant (CDBG) funds or from the City’s Affordable
Housing Fund shall be required, to the extent feasible, to include installation of energy efficient appliances
and devices that will contribute to reduced housing costs for future occupants of the units. The City will
continue to implement program as housing projects are awarded funds from the City in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund & Community Development Block Grant (CDBG) funds
Housing Goal #6
Housing opportunities for special needs populations.
Housing Policy 6.1: Encourage approval of housing opportunities for senior citizens and other special
needs populations.
Implementation Actions
Policy Action 6A: Homeless Program Assistance
In the 5th Cycle, the City was successful in providing funding to local organizations for providing shelter
and services to the individuals experiencing homelessness.
The City will continue to apply annually for United States Department of Urban Development Community
Development Block Grant (CDBG) funds and allocate a portion of such funds to sub-recipients who provide
shelter and other services for the homeless as well as submit Annual Action Plan to HUD in May of each
year.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
226
Section 4: Housing Plan (September 2022 Final Housing Element) 4-40
Policy Action 6B: Repair Loans and Grant Programs for Seniors, Persons with Physical
and Developmental Disabilities and Lower-Income Households
The City, in partnership with OASIS Senior Center and Habitat for Humanity Orange County, has developed
a Senior Home Repair Assistance Program (SHARP) that is aimed at assisting low-income seniors in need
of critical home repair or modifications due to accessibility needs, safety concerns, health and well-being.
The program is available to homeowners aged 60 and older who fall within the 50th percentile of the
Orange County median-income.
Additionally, the City will continue to 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. 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.
The City will continue to attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date
on rehabilitation programs offered by the County in order to continuously inform homeowners and rental
property owners within the City of opportunities and to encourage preservation of existing housing stock.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 6C: Leverage CDGB and other Federal Formula Grant Funding
The City receives annual allocation of CDBG and other Federal formula grant funds for use in a variety of
housing-related activities. The City shall make every effort to leverage these annual funds from various
agencies to further the City’s housing goals. These may include, but are not limited to, the following State,
Regional and private resources:
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
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
Regional 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)
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-41
• Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
• Public-Private Partnerships
In addition, the City of Newport Beach will continue to maintain a list of “Public and Private Resources
Available for Housing and Community Development Activities” and maintain a list of resources on City
website and update as necessary in the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 6D: Child Daycare Facilities
The City will continue to encourage the development of daycare centers as a component of new
affordable housing developments and grant additional incentives in conjunction with the review and
approval of density bonus projects pursuant to NBMC Chapter 20.32 (Density Bonus).
Timeframe: Modify
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 6E: Housing Assistance for Seniors
The City of Newport Beach was successful in assisting the funding of senior housing services through the
5th Cycle. The City shall continue to encourage senior citizen independence through the promotion of
housing and services related to in-home care, meal programs, and counseling, and maintain a senior
center that affords seniors opportunities to live healthy, active, and productive lives in the City.
The City will encourage and approve senior housing developments if there is a market demand provided
the projects include appropriate support services including transportation. Projects that provide housing
and services for low- and moderate-income seniors shall take precedence over market-rate senior
housing.
The City will continue to provide social services, support groups, health screenings, fitness classes, and
educational services at the City’s OASIS Senior Center or other facilities and offer affordable ride-share
transportation and meal services to seniors who are unable to drive and/or prepare their own meals or
dine out and have little assistance in obtaining adequate meals during the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 6F: Emergency Shelters, Transitional and Supportive Housing
To comply with State law, the City of Newport Beach will amend certain sections of its Municipal Code to
address the following requirements:
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-42
• Supportive Housing Streamlined Approvals (AB 2162) - To comply with AB 2162 (Chapter 753,
Statues 2018), the City of Newport Beach will amend its Municipal Code to permit supportive
housing as a use permitted by right in all zones where multiple family and mixed-use development
is permitted.
• Emergency and Transitional Housing Act of 2019 (AB 139) – The City will update its Municipal
Code to comply with the requirements of Gov Code 65583 to address permit requirements,
objective standards, analysis of annual and season needs, and parking and other applicable
standards and provisions.
• Amend the City of Newport Beach Municipal Code to comply with the definitions for “Supportive
Housing,” Supportive Services,” “Target Population” consistent with applicable sections of the
California Government Code.
• Amend the Newport Beach Municipal Code to ensure Emergency Shelters, Transitional and
Supportive Housing are permitted in appropriate zones, consistent with State law.
Timeframe: Adopt Code Amendments within the first year of the planning period.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 6G: Senior Housing Priority Program
The City has an aging population that will require affordable housing options for its existing and future
retirement age population. The City seeks to develop explore the feasibility and appropriateness of
proactive policies and programs to address and prioritize the needs of its senior population.
The City will strategically collaborate with the local senior community and organizations providing senior
services to evaluate existing programs, policies, procedures and funding priorities. Upon completion of
this initial assessment and determination if there are feasible and practical approaches, the City will
develop a comprehensive prioritization program for Senior Housing. The prioritization program will
establish the specific methodologies for priority ranking, criteria, scoring and related new policies,
programs, regulations and incentives as appropriate.
Timeframe: Study and evaluate existing policies within 24 months of Housing Element adoption. Establish formal
policies, programs and regulations within 36 months of Housing Element adoption If deemed practical and
feasible during initial study.
Responsible Agency: City of Newport Beach Community Development
Funding Source: General Fund
Housing Goal #7
Equal housing opportunities in the City for all people.
Housing Policy 7.1: Support fair and equal housing opportunities, and environmental justice
considerations for all housing opportunities in the City.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-43
Implementation Actions
Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers
State law has been updated to require approval 'by right' of supportive housing with up to 50 units and low
barrier navigation centers that meet the requirements of State law. Low barrier navigation centers are
generally defined as service-enriched shelters focused on the transition of persons into permanent housing.
Low barrier navigation centers provide temporary living facilities will persons experiencing homelessness
to income, public benefits, health services, shelter, and housing. To comply with State law, the City of
Newport Beach will adopt policies, procedures, and regulations for processing this type of use to establish
a non-discretionary local permit approval process that must be provided to accommodate supportive
housing and lower barrier navigation centers per State law. In the interim, any submitted application for
this use type will be processed in accordance with State law.
The City will provide for annual monitoring of the effectiveness and appropriateness of existing adopted
policies. Should any amendments be warranted to existing policies pursuant to State law, the City will
modify its existing policies, as appropriate.
Timeframe: Adopt Code Amendments within first year of the planning period.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 7B: Transitional and Supportive Housing
In compliance with Senate Bill 2 (Chapter 364, Statutes 2017) and SB 745 Chapter 185, Statutes 2013 ) the
City will ensure the Zoning Code is amended to encourage and facilitates emergency shelters and limits
the denial of emergency shelters and transitional and supportive housing under the Housing
Accountability Act. This Program would permit transitional and supportive housing by-right in all zones
allowing residential uses, subject only to those regulations that apply to other residential uses of the same
type in the same zone. In addition, the Zoning Code will be amended to define “supportive housing,”
“target population” and “transitional housing” pursuant to state law. The City will continue to monitor
the inventory of sites appropriate to accommodate transitional and supportive housing and will work with
the appropriate organizations to ensure the needs of homeless and extremely low-income residents are
met. The City is committed to prioritizing funding and other available incentives for projects that provide
housing for homeless and extremely low-income residents whenever possible.
Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption within the first year of the
planning period.
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 7C: Housing for Persons with Developmental Disabilities
The housing needs of persons with developmental disabilities are typically not fully addressed by local
zoning regulations. Persons with disabilities may require, in addition to basic affordability, slight
modifications to existing units, and in some instances, a varying range of supportive housing facilities. To
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-44
accommodate residents with developmental disabilities, the City will review and prioritize housing
construction and rehabilitation including supportive services targeted for persons with developmental
disabilities.
Newport Beach will also explore the granting of regulatory incentives, such as expedited permit
processing, and fee waivers and deferrals, to projects targeted for persons with developmental
disabilities. To further facilitate the development of units to accommodate persons with developmental
disabilities, the City will encourage development of projects targeted for special needs groups. As housing
is developed or identified, Newport Beach will collaborate with the Regional Center of Orange County
(RCOC) to implement an outreach program informing families within the City of housing and services
available for persons with developmental disabilities. The City will provide information at City Hall and on
the City’s website.
Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 7D: Fair Housing Services
The City was successful in reaching out to the community about fair housing services during the 5th Cycle.
The City of Newport Beach will continue to contract with an appropriate fair housing service agency for
the provision of fair housing services for Newport Beach residents. The City will also work with the fair
housing service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing
document required by HUD. The City will continue to provide a minimum of two public outreach and
educational workshops a year, and distribute pamphlets containing information related to fair housing in
the 6th Cycle.
Timeframe: Ongoing
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Housing Goal #8
Effective and responsive housing programs and policies.
Housing Policy 8.1: Review the Housing Element on a regular basis to determine appropriateness of goals,
policies, programs, and progress of Housing Element implementation.
Implementation Actions
Policy Action 8A: Annual Reporting Program
The City of Newport Beach shall report on the status of all housing programs as part of its annual General
Plan Review and Annual Progress Report (APR). The Annual Progress Report discusses Housing Programs
and is submitted to the California Department of Housing and Community Development in accordance
with California state law. The City will continue to annually report its efforts within the annual General
Plan Status Report including Housing Element Report provided to OPR and HCD by April 1st each year.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-45
Timeframe: Ongoing, Annual
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Policy Action 8B: Water and Sewer Service Providers
Pursuant to SB 1087, Chapter 727, Statues of 2005, the City of Newport Beach is required to deliver its
adopted housing element and any amendments thereto to local water and sewer service providers. This
legislation allows for coordination between the City and water and sewer providers when considering
approval of new residential projects, to ensure that the providers have an opportunity to provide input
on the Element. Additionally, review of the Housing Element ensures that priority for water and sewer
services is granted to projects that include units affordable to lower-income households. The City will
submit the adopted 6th Cycle Housing Element to local water and sewer providers for their review and
input.
Timeframe: Transmit document immediately upon adoption of future amendment
Responsible Agency: City of Newport Beach Community Development
Funding Sources: General Fund
Summary of Quantified Objectives
The 2021-2029 Regional Housing Needs Assessment (RHNA) determined the City of Newport Beach had a
construction need for 4,845 residential units between October 15, 2021 and October 15, 2029. The
forecasted need by income group includes:
• Very Low-Income (0-50% County MFI);
• Low-Income (51-80% County MFI);
• Moderate-Income (81-120% County MFI); and,
• Above Moderate-Income (>120% County MFI)
Additionally, the City has goals to rehabilitate and preserve its existing inventory of housing units. As
required by State housing law, quantified objectives by income group for the 2021-2029 planning period
are summarized in this section. The quantified objectives represent the target number of housing units
that the City anticipates will be constructed, rehabilitated, or preserved over the 2021-2029 planning
period.
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Section 4: Housing Plan (September 2022 Final Housing Element) 4-46
Table 4-1: Quantified Objective Summary
Quantified Objective Extremely Low Very Low Low Moderate Above
Moderate
Housing Production
Accessory Dwelling Units 163 72 5
RHNA Sites 1,456 930 1,050 1,409
Rehabilitation 5 5 10 284 00
Preservation 95 77 86 10 00
Source: City of Newport Beach
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Attachment No. PC 6
Correspondence
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From: Jim Mosher <jimmosher@yahoo.com>
Sent: August 02, 2024 11:56 AM
To: Zdeba, Benjamin
Subject: Comment on Narrowly Focused 6th Cycle Housing Element Amendment
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Dear Mr. Zdeba,
Thank you for the notice of the opportunity to comment on the City of Newport Beach's
"Narrowly Focused 6th Cycle Housing Element Amendment."
As you know, I am a member of the City's General Plan Advisory Committee, but the
following comments are my personal opinions alone.
The notice does not identify the requirement for public review, but that would appear to
be California Government Code Subsection 65585(b)(1). Since this proposal is
identified as an amendment to the recently certified 6th Cycle revision, and since the
timelines are specified only for "revisions," it is not clear to me if this initial draft of the
amendment is subject to a 7-day or 30-day review. Nonetheless, I am attempting to
comply with the stated deadline, and will refer to the posted 6-page Summary of 6th
Cycle Housing Element Amendment Revisions, which I will further assume accurately
depicts the revisions requested in the lengthier posted Section 3: Housing Constraints,
Resources, and Affirmatively Furthering Fair Housing and Section 4: Housing Plan
documents.
My first and most obvious comment is that in request Revision 2, on unnumbered page
5 of 6, in the middle of the last long paragraph, the word "unsuitable" is proposed to be
deleted and then replaced with the same word. That makes little sense to me. Is this a
typo? Or was some other word intended to replace "unsuitable"? If so, not knowing the
intended word makes it difficult to comment on.
My larger comment is that the cited City Council Resolution No. 2024-58 directs staff to
remove from the certified Housing Element "the reference to a vote of the electorate
pursuant to Charter Section 423 as a constraint or as an implementing action."
I do not understand the significance of that exercise.
Charter cities are required to follow their charters, and in the case of Newport Beach,
Charter Section 423 requires a vote on amendments adding significant amounts of
housing to the general plan unless "state or federal law precludes a vote of the voters
on the amendment."
While it is possible the state could require the City to proceed despite a negative
outcome of the vote, I am unaware of any power the state has to prevent the vote
from occurring or any purpose it would have in doing so.
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In particular, since it is not a lawmaking body, I am unaware of any authority HCD
has, especially through mere certification of City-provided language in a Housing
Element, to absolve a charter city of its obligations under its charter.
Nonetheless, and despite it not having anything like the status of a "state or federal
law," in the final proposed new paragraph on unnumbered page 3 of 6, the City appears
to be asking HCD to certify a statement that in implementing the Housing Element the
Charter Section 423 vote is precluded.
Even if HCD had the power to enact a law saying that, the proposed language leading
up to the proposed statement of preclusion does not support the conclusion. First, the
outcome of the vote could be approval, as it has been in other cities such as Chino.
Second, and more importantly, there is no single way in which a RHNA obligation can
be met, so it is certainly logical that when there is a voter-approval requirement for
general plan amendments, voters should be given a chance to weigh in on alternative
implementations, as to number and location of housing units and their affordability
requirements, as is happening in Yorba Linda.
Again, when such a voter approval requirement exists, the residents do not abdicate
their responsibility to their city councils or HCD. Instead, they expect a proposal
sufficiently well thought out and sufficiently explained to garner a positive vote.
In Newport Beach, the City Council's problem is that the housing deficiency the RHNA
process has identified is entirely in the moderate and below income categories. Yet it
wants to proceed with an implementation program that would require no affordable
construction, despite Policy Action 1K (Inclusionary Housing Policy), which it has so far
chosen to ignore, in Section 4.
The Charter Section 423 process is not so much a constraint as an incentive for the
Council to come up with a better plan that can be realistically expected to produce the
needed affordable units without an excessive amount of new luxury housing and traffic
which voters are unlikely to want to approve.
The City does not currently have such a plan, and removing the Charter Section 423
language as requested will not produce one. Even if the proposed language could
prevent the vote, these revisions would only allow the Council to proceed without a
viable plan to produce affordable units.
In summary, the Newport Beach City Charter requires a public vote on significant
general plan amendments, unless a law prohibits it, as state law does for housing
added by density bonus and ADU law. While it is possible the state could require the
City to proceed despite a negative Charter Section 423 vote, I am unaware of anything
that prohibits the vote from taking place. Adding or removing language about Section
423 from the Housing Element does nothing to change the City's charter
responsibilities. Indeed, pretending the Section 423 requirement does not exist, and
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adding a claim that the vote is precluded, creates a less honest Housing Element and
removes a key incentive for the Council to create a better plan.
Yours sincerely,
Jim Mosher
Newport Beach resident
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From:Adriana Fourcher
To:Planning Commission
Subject:Public Comments on Agenda 9/5, Agenda #3 & #4
Date:September 04, 2024 3:00:22 PM
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Dear Commissioners.
Agenda Item #4 is concerning. Please consider that the city is not obligated to rubber stamp the
State’s suicide pact which will kill the goose that lays the golden egg in Newport Beach. Residents
should be allowed to vote.
It is all about location and quality of life. If the Housing Element is about that then why bury the lead?
How about upholding the best tenets of the Housing Element plan?
The fact that the city is trying to figure out a way to strip the vote way, demonstrates that crony
corporate interests and BIG Sacramento are working in tandem at the expense of our entire city.
To truly address quality of living, development plans for high density residential should require
sufficient amenities to compliment the needs of apartment residents. Examples would include, dog
parks, walking/biking paths, convenience stores, pubs/restaurants, drycleaners, EV charging
stations, extra dock wells for delivery trucks (Amazon). High density projects should contain mixed
use such as entertainment and retail.
I believe that the original Housing Element went into many of these concepts to convey a synergistic
approach to planning.
However, so far, the high-density residential projects being approved seem to be riddled with
waivers, in lieu of park fees and little to no retail not to mention few public amenities. A gym is nice
but is not a public amenity. I guess the thousands of new apartment residents will drive to the park
off San Miguel.
Please tell me where the eventual school age kids will be attending school in the Airport District? Oh
yes, the Airport District is part of the Santa Ana school district. Future NB residents will not be
thanking City planners for the lack of planning which results in long bus rides for their school age
kids. How about developer money to launch a private school in proximity to the thousands of new
residents?
Agenda #3 is a point of reference. It is arbitrary how these credit offsets are determined. Where are
the public amenities funded by the development fees to support the residents at Uptown Newport?
The park is skimpy. The developer never followed through on its original development plan to add
Planning Commission - September 5, 2024 Item No. 4a - Additional Materials Received Amendment to the 6th Cycle Housing Element (PA2022-0245)
retail or services. How come the Koll Company is not bringing this up since Uptown is neighbor to
Koll Center Newport? Koll Center has one restaurant. Why doesn’t Uptown? Where are the
development fees that the city has charged being spent?
I am urging the Planning Commission to enhance its big picture perspective for the City of NB with
regards to apartment complexes. Residential only is not mixed use and will lead to urban deserts. If
the development plans are constantly being amended (i.e. Agenda #3), it becomes a bait and switch
because the city council approved the large project with a commensurate retail (11,000 SF) and
green space component.
Thank you.
Adriana Fourcher
Resident of NB
Planning Commission - September 5, 2024 Item No. 4a - Additional Materials Received Amendment to the 6th Cycle Housing Element (PA2022-0245)
September 5, 2024, Planning Commission Item 4 Comments
These comments on a Newport Beach Planning Commission agenda item are submitted by:
Jim Mosher (jimmosher@yahoo.com ), 2210 Private Road, Newport Beach 92660 (949-548-6229).
Item No. 4. AMENDMENT TO THE 6TH CYCLE HOUSING ELEMENT
(PA2022-0245)
I stand by my previous comments on this issue, provided as Attachment No. PC 6, starting on
handwritten page 237.
Nothing in the letter from HCD, provided on handwritten page 12 as Exhibit A to the proposed
resolution, even remotely constitutes an affirmation that a “state or federal law precludes a vote
of the voters on the amendment,” as would be required to avoid a vote under City Charter
Section 423.
As with the rest of the HCD certification process, it merely confirms that,on the assumption
that the information provided by the City is accurate, it presents a plan adequate to meet
California RHNA requirements.
The problem is the City’s proposed assertion (handwritten page 16) that “Because providing
residential housing opportunity sites to accommodate the City’s RHNA allocation is
mandated by state law and the City is required to implement the Housing Element, a
Charter Section 423 vote is precluded, and the City will move forward with implementing the
Housing Element without a Charter Section 423 vote” is no more accurate, than its assertion in
Table 3-37 (handwritten page 179), already “certified” by HCD, that 40% of all new housing built
in all focus areas will be affordable to households with moderate or below incomes. They are
both assertions without basis.
In this case, the assertion hangs on the word “preclude,” which means to “rule out,” “prevent,”
“exclude” or “make impossible.” Yet, nothing I am aware of in state or federal law prevents
voters from weighing in on a city council’s proposal of a possible way to amend its general plan.
It also seems important to note that the state is not requiring the City to amend its General Plan
Land Use Element to add 8.174 new units. That is just one possible plan put forward, not by
HCD, but by the City, to meet the 2,707 unit shortfall anticipated in Table 3-37. In the unchanged
Housing Element language in the last paragraph on handwritten page 18, following staff’s
inexplicable request to change “unsuitable” to “unsuitable,” HCD has already certified that the
City may choose to meet its RHNA requirement in some different way, provided it fills the
shortfall. Surely the voters are allowed a voice in choosing the plan. If the City is now asserting
that the Council’s adoption (without voter approval) of the Housing Element in September 2022
committed the City to adding to the Land Use Element exactly the plan described in the Housing
Element, then the Section 423 should have happened before that Housing Element adoption
became final (noting that Section 423 applies to any amendment that adds the potential for
development over the stated thresholds, and is not limited to Land Use Element amendments).
Either way, our Council is required to follow our City Charter, and our Charter requires the
Council to give our citizens a chance to vote on these major changes to our General Plan.
Planning Commission - September 5, 2024 Item No. 4a - Additional Materials Received Amendment to the 6th Cycle Housing Element (PA2022-0245)
HOUSING ELEMENT AMENDMENT (PA2022-0245)
Planning Commission Public Hearing
September 5, 2024
Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)
BACKGROUND
2
PLAN
•9/13/2022, Council adopts 6th Cycle Housing Element
•10/5/2022, HCD certifies Housing Element as compliant
ACTION
•4/18/2024, Planning Commission public hearing (rezoning)
•7/9/2024, City Council study session
•7/23/2024, City Council public hearing (rezoning)
Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)
JULY 23, 2024, CITY COUNCIL ACTIONS AND DIRECTION
3
Adopted resolutions to:
Certify the Program EIR
Amend the General Plan Land Use Element
Authorize submittal of the Local Coastal Program Amendment
Override ALUC’s determination
Initiate a narrowly focused amendment to the Housing Element*
Introduced ordinances to:
Provide zoning for residential on housing opportunity sites
Establish multi-unit objective design standards
*Determined a vote pursuant to Charter Section 423 is precluded by state law and that Housing Element should be revised to remove it as an implementing action
Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)
NARROWLY FOCUSED AMENDMENT: HOUSING ELEMENT
Section 3
Revise the analysis surrounding Charter Section 423 as an impediment to housing
Section 4
Revise the implementing actions to remove the Charter Section 423 vote
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Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)
HCD REVIEW
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•7/26/2024, Amendment language posted online
•8/2/2024, Sent to HCD for formal compliance review
8/20/2024, Received letter from HCD confirming compliance with adoption of the amendment
Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)
NEXT STEPS
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•9/5/2024, Planning Commission public hearing
•9/24/2024, City Council public hearing and second readings
•10/25/2024, Ordinances become effective, and rezoning is complete outside Coastal Zone boundaries
Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)
THANK YOU!QUESTIONS?
Benjamin M. Zdeba, AICP
Planning Manager
949-644-3253
bzdeba@newportbeachca.gov
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Planning Commission - September 5, 2024 Item No. 4b - Additional Materials Presented at the Meeting by Staff Housing Element Amendment (PA2022-0245)