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Housing Element Implementation-Annual Progress Report
CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT Agenda Item No. 6 September 22, 2005 TO: PLANNING COMMISSION FROM: Planning Department Brandon Nichols, Assistant Planner (949) 644 -3234, bnichols @city.newport- beach.ca.us SUBJECT: Housing Element Implementation - Annual Progress Report RECOMMENDATION: 1. Review, file and forward the Annual Housing Element Implementation Report to the City Council for final review. 2. Review and approve the attached letter for submittal to the State of California's Office of Planning and Research. DISCUSSION: California Government Code Section 65400 requires the City to file an annual report every October to its "legislative body," the State Office of Planning and Research (OPR), and the State Department of Housing and Community Development (HCD). The report is required to provide information on the status of the General Plan and the City's progress in implementing its programs as well as its progress in meeting regional housing needs goals. The City must also report on its efforts to remove governmental constraints to the maintenance, improvement, and development of housing for all income levels. Since the City is in the process of conducting a comprehensive update of its General Plan, an annual review of the entire General Plan is not required at this time. Consistent with the guidelines from OPR, the City will submit a brief letter to the State describing the scope of work for the General Plan Update and its anticipated completion date. Housing Element Implementation Annual Progress Report September 22, 2005 As required by State Housing Element Law, staff has completed a detailed Housing Element Implementation Report which provides the following information: (A) a review of the City's progress in fulfilling its share of the Regional Housing Needs Assessment; (B) a complete detailed status report on the implementation of each of the housing programs of the City's Housing Plan; and (C) a review of actions and programs adopted to remove or mitigate governmental constraints on the development of housing for all income levels. Since the City is in the midst of updating its General Plan, the report contains an additional section that discusses the options for future residential development that are being considered as part of the General Plan Update (D). A draft letter explaining the status of the comprehensive General Plan update process to the Office of Planning and Research is also attached as Exhibit B. Environmental Review Not subject to CEQA, as the action is not a project as defined in Section 15378(b)(4) of the Public Resources Code. Prepared by: Submitted by: Brandon Nichols Patricia Temple Assistant Planner Planning Director Exhibits: 1. Housing Element Implementation Report 2. Draft letter to OPR on status of General Plan Update CITY OF NEWPORT BEACH HOUSING ELEMENT IMPLEMENTATION REPORT Fiscal Year 2004 -2005 The Newport Beach Housing Element was adopted in August, 2003. Since then, City staff has been diligent in their attempts to implement the Housing Element's many goals and programs. This report evaluates each program and describes attempts made to pursue program and goal fulfillment. California Government Code Section 65400 specifically mandates that the report provide the following information: (A) a review of the City's progress in fulfilling its share of the Regional Housing Needs Assessment; (B) a complete detailed status report on the implementation of each of the housing programs of the City's Housing Plan; and (C) a review of actions and programs adopted to remove or mitigate governmental constraints on the development of housing for all income levels. Since the City is in the process of updating its General Plan, an additional section (D) has been included that briefly discusses the options for future residential development that are being considered as part of the General Plan Update. A. PROGRESS IN MEETING REGIONAL HOUSING NEEDS (RHNA GOALS) The Southern California Association of Governments (SCAG) prepared a Regional Housing Needs Assessment (RHNA) to identify the housing need for each jurisdiction within the SCAG region. SCAG, through the RHNA process, has assigned Newport Beach a certain share of housing units that it should provide between the 1998 — 2005 planning period in an effort to satisfy housing needs resulting from the projected growth in the region. To accommodate projected growth in the region, SCAG estimates the City needs to target its housing unit production to accommodate 476 new housing units. With the annexation of Newport Coast in 2001, the City agreed to transfer 945 units from the Orange County Regional Housing Needs allocation to the Newport Coast area. This agreement was made since the Irvine Company committed to 4 the County to fulfill its allocation. However, since the County is still responsible for issuing building permits for the area, the analysis on meeting the RHNA allocation does not include the 945 Newport Coast units. Data regarding the number of issued building permits has been requested from the County of Orange but not yet received. The table below indicates the future need for housing in Newport Beach and its distribution by income group as calculated through the RHNA process (excluding Newport Coast). The City Building Department maintains a detailed Building Activity Report for each fiscal year. The report lists the total number of different types of construction permits issued, as well as the number of demolition permits issued. Using this data, staff has created the following table illustrating the total number of new additional units that were permitted during the RHNA period of 1998- 2004. TOTALfdUMBER OF NEW ADDITIONAL HOUSING UNITS PERMITTED DURING RHNA:PERIOD 1998 -2005 TOTAGR14NACQNSTRUCTION NEED BY INCOME' 1998 -2005 VEi Low LOW MODERATE ;,A60VE MODERATE TOTAL 86 53 1 83 1 254 476 18% 11% 1 17% 1 53 % 100% The City Building Department maintains a detailed Building Activity Report for each fiscal year. The report lists the total number of different types of construction permits issued, as well as the number of demolition permits issued. Using this data, staff has created the following table illustrating the total number of new additional units that were permitted during the RHNA period of 1998- 2004. TOTALfdUMBER OF NEW ADDITIONAL HOUSING UNITS PERMITTED DURING RHNA:PERIOD 1998 -2005 FISCAL YEAR. ": NEW UNITS DEMOLISHED UNITS TOTAL ADDITIONAL UNITS 1 ST 6 MONTHS OF 1998 315 180 135 1998 -1999 1018 158 860 1999 -2000 742 258 484 2000 -2001 234 168 66 2001 -2002 159 130 29 2002 -2003 162 174 -12 2003 -2004 198 162 36 2004 -2005 329 170 159 TOTAL 3157 1400 1757 The City issued a total of 1,757 new additional residential building permits during the 1998 -2005 RHNA period. This number well exceeds the total 476 units projected by SCAG. During the 2004 -2005 reporting period the City issued 159 permits for new additional dwelling units. 120 of the new units are a result of building permits issued for the Bayview Landing Senior Affordable Housing Project. With the exception of one "mangers unit" all of the 120 units are designated for very low and low income seniors. 5 Issuance of building permits for the Bayview Landing project represents a major milestone for the City. It signals the completion of a major Housing Element goal and represents a significant step towards providing the City's share of very low and low income units as defined in the City's RHNA allocation. Upon completion in early 2006, the Bayview Landing Project will provide 24 units in the "very low" income category and 95 units in "Low" Income category. The table below summarizes the City's progress in meeting its share of regional housing needs. CITY'S'PROGRESS INMEETING IT'S SHARE'QF THE REGIONAL HOUSING NEEDS ASSESSMENT DURING RHNA'PERIOD 1998 -2UO.5 PROGRAMy;;GOALI,.I VERY Low MODERATE ABOVE TOTAL Low MODERATE The Uniform Housing Code `PROJECTED,NEED. ... 86 53 83 254 476 TOTAL ' E%UNITs 24 95 0 1637 1757 PERMIT,TEW '- derelict or abandoned vehicles, outdoor storage, or other situations The Water Quality and Code 1/98 =6%05' ,- that may constitute health, safety or Enforcement Department fire hazards. continually administers an REMAINING NEED' % 62 0 83 0 147 B. HOUSING PROGRAM IMPLEMENTATION STATUS .�.x�0..�-' PROGRAMy;;GOALI,.I ",.. ,4SW rSTATUS y;ay,r 1.1.1 Improve housing quality and prevent On -going deterioration of existing neighborhoods by strictly enforcing The Uniform Housing Code building code regulations and abating is Adopted and continually code violations and nuisances. enforced by the Building Enforcement activities will focus on Department and Code property maintenance, eliminating Enforcement Department. derelict or abandoned vehicles, outdoor storage, or other situations The Water Quality and Code that may constitute health, safety or Enforcement Department fire hazards. continually administers an enforcement program to correct violations of municipal codes and land use requirements. A quarterly report is kept on file on code enforcement activities throughout the City. 1.1.2 Reduce the potential for criminal On -going activity by providing guidelines for maintaining the security of existing Planning staff recommends development with emphasis on site design elements to maintain design (such as security lighting, security and coordinates vegetation removal, electronic garage plan review with Newport door openers, window security and Beach Police Department. other crime prevention techniques). A brochure was created and placed in the public lobby containing Guidelines for Maintaining Home Security. 1.1.3 Promote the maintenance and Out -dated and upkeep of rental housing by unenforceable encouraging the California State Franchise Tax Board to enforce the This program will be deleted Tax Code preventing owners of rental from the Housing Element housing from claiming depreciation, during the next update cycle. amortization, mortgage interest and property tax deductions on State Income Tax Reports. 1.1.4 Continue to participate with the On -going and Pending OCHA and HCD in their administration of rehab loans and Research is in progress and grants for low- and moderate- income an analysis of different homeowners and rental property programs and the financial owners to encourage preservation of feasibility of participating in existing housing stock. these programs will be assessed. 1.1.5 Continue to require replacement of On -going housing demolished within the Coastal Zone when housing is (or Chapter 20.86 of the Zoning has been) occupied by low- and Code, "Low and Moderate moderate households within the last Income Housing within the 12 months). The City shall prohibit Coastal Zone," establishes demolition unless a Coastal the standards and Residential Development Permit has requirements to implement been issued. The specific provisions this program. implementing replacement unit requirements are contained in Municipal Code Section 20. 1.1.6 Participate in a cooperative program On -going and Pending with the OCHA and Community Development program office for Research is in progress, and administration of the HUD Rental an analysis of different Rehab Program. Energy efficient programs and the financial ,I 0 products shall be required when feasibility of participating in appropriate. these programs will be assessed. 1.1.7 Should need arise, consider using a Pending portion of its CDBG funds for establishment and implementation of Staff will prepare a study to an emergency home repair program. analyze whether or not a Energy efficient products shall be need for this program exists. required whenever appropriate. If it is determined that a need exists, a program will be developed. 1.2.1 As part of its annual General Plan On -going Review, the City shall provide information on the status of all Due to the comprehensive housing programs. The portion of the General Plan Update, the annual report discussing housing City is not conducting an programs is to be distributed to HCD annual General Plan review. in accordance with State law in Consistent with the January of each year via US postal guidelines from the State service. Office of Planning and Research (OPR), the City will be presenting OPR with a brief letter describing the scope of work for the General I Plan Update and the completion date. 1.2.2 --anticipated Investigate availability of Federal, Pending State and local programs (including in -lieu funds) and pursue these Research is in progress, and programs if found feasible, for the an analysis of different preservation of low- income housing programs and the financial that may increase to market rates feasibility of participating in during the next ten years. A list of any of these programs (if these programs, including sources any) will be assessed. and funding amounts will be identified as part of this program and maintained on an on-going basis. 1.2.3 As part of the annual GP review, On -going monitor existing programs designed to preserve assisted housing development for very low- and low- i income households to determine whether additional actions are available and should be required to protect these developments. 1.3.1 Continue to contract with the OC Fair On-going 0 0 Housing Council for administration of the Fair Housing Program including The City contracts with the updating the analysis of impediments OC Fair Housing Authority to fair housing. In addition, continue annually. to contract with OCHA to refer fair housing complaints. Pamphlets The Regional Fair Housing containing information related to fair Impediments Analysis was housing complaints will continue to completed in 2000. be provided to the public at the Planning Department. Pamphlets containing information of Fair Housing and Dispute Resolution Services are provided at the public counter. 1.3.2 Support fair housing opportunities by On -going using CDBG funds whenever necessary to enact Federal, State For the 2004 -2005 Fiscal and City fair housing policies. Year, Newport Beach allocated $13,884 in CDBG funding to the Fair Housing Council of Orange County to assist the City in furthering fair housing through education, landlord /tenant counseling, and legal action when necessary. 1.4.1 Monitor progress on each program On -going and periodically report findings to the Planning Commission and City In conjunction with Program Council. 1.2.1, staff will present the Planning Commission and the City Council with an annual status report for their review and approval prior to submission to HCD. 1.4.2 Whenever land use regulations, land On -going use designations or Housing Programs are proposed for adoption This is a standard procedure or modification, the City of Newport for all Planning Department Beach Planning Department shall staff. Consistency with the undertake an analysis to determine if General Plan is a standard the proposed action or regulation is finding of approval. consistent with the Housing Element, all other elements of the General If an inconsistency exists, Plan, and with all adopted City staff takes the appropriate Council policies. If the proposal is actions to amend policies, 0 1a inconsistent, the policy, plan or plans, or Elements to ensure RROGRAM Element shall be amended in consistency. 2.1.1 conjunction with approval of the On -going proposed regulation or action to ensure consistency. Consistency A vacancy rate survey is shall be achieved whenever a completed every quarter to regulation, action or project is monitor consistency with this approved. policy. 1.5.1 Investigate the use of Federal funds Pending to provide technical and financial assistance, if necessary, to all eligible Research is in progress, and homeowners and residential rental an analysis of different property owners to rehab existing programs and financial dwelling units through low- interest feasibility of participating in loans or potential loans, or grants to these programs will be very low, low, and mod - income owner assessed. occupants. 1.5.2 Periodically inform mobile home Pending owners of financial assistance available from State HCD for eligible Research is in progress, and owner- occupants to rehab existing an analysis of different dwelling units through deferred programs and financial payment low- interest loans. feasibility of participating in these programs will be assessed. 1.5.3 Per Government Code Section On -going 65863.7, a Mobile Home Park Conversion Permit shall be required City staff requires special as a prerequisite for conversion of an permits for all proposed existing mobile home park. In conversions of mobile home addition, the owner of the mobile parks and as required by home park shall provide a detailed State Law, requires detailed relocation impact report. The report relocation impact reports. shall be filed concurrently with filing for any discretionary permit on such property. 1a a i V1 O� RROGRAM GOgL > >' +f$ �`STATUS�:: 2.1.1 Maintain rental opportunities by On -going restricting conversions of rental units to condominiums unless the vacancy A vacancy rate survey is rate in Newport Beach for rental completed every quarter to housing is 5% or higher for four (4) monitor consistency with this consecutive quarters, and unless the policy. 1a property owner complies with condominium conversion regulations In 2004, a quarterly vacancy contained in Chapter 20.83 of the rate survey was performed for Newport Beach Municipal Code. the calendar year, the average vacancy rate for all four quarters exceeded 5 %. 2005 15` Qtr. -6.1 % • 2 "d Qtr.- 5.5% TO Qtr. (results pending) 2.1.2 Take all feasible actions, through use On -going Of development agreements, expedited development review, and Planning staff continually expedited processing of grading, evaluates all proposed building and other development affordable housing projects for permits, to ensure expedient potential incentives, including construction and occupancy for expedient processing of projects approved with low- and permits. moderate - income housing requirements. During the entitlement process, the Bayview Landing Senior Affordable Housing Project was granted a partial entitlement fee waiver, expedited permit processing, and entitlement assistance. 2.1.3 The City Council and Planning On -going Commission shall have discretion to review and waive planning and park Staff continually evaluates fees, and modify development proposed affordable housing standards (e.g. parking, setbacks, lot projects to determine potential coverage, etc.) for developments incentives, including the containing low- and moderate- waiver of fees and flexibility income housing in proportion to the with development standards. number of low- and moderate - income units in each entire project. The Bayview Landing Senior Affordable Housing Project was granted a partial fee waiver as a financial incentive. 2.1.4 Continue to encourage the California On -going State Department of Real Estate and California State Department of The City of Newport Beach Housing and Community continually complies with Development to permit installation of State Law as it applies to the p- mobile homes, factory-built housing, permitting and installation of or other construction technology, mobile homes and factory provided such products comply with built housing. development standards of the community and are compatible with planning, aesthetic, and other applicable considerations of the specific neighborhood in which such product is proposed. 2.1.5 Continue to participate with the On -going County of Orange in the issuance of tax exempt mortgage revenue bonds The participation with the to facilitate and assist in financing, County of Orange in the development and construction of issuance of tax exempt housing affordable to low and mortgage revenue bonds is moderate - income households. City project driven. Usually the staff shall encourage developers of developer applies for the tax remaining residential sites to use exempt bonds. tax - exempt mortgage revenue bonds to facilitate construction of low- and The City will encourage and moderate - income housing. inform developers of the use and availability of tax exempt bonds. The Bayview Landing Senior Affordable Housing Project was awarded a total of $4,583,727 in tax credits. (See Bayview Landing status report for details on project) Develop and implement an annual Completed compliance- monitoring program for units required to be occupied by very It has been determined by the low -, low -, and moderate income County of Orange, that the households as approved with the affordable housing obligations development of Newport Coast and for Newport Coast have been in accordance with the Newport met through the provision of Coast Affordable Housing off -site affordable apartments. Implementation Program (AHIP). 2.2.1 Continue to require a proportion of On -going affordable housing in new residential developments or levy an in -lieu fee. Staff continues to enforce the The City's goal over the five -year requirements for affordable planning period is for an average of housing and /or the payment of 20% of all new housing units to be in -lieu fees. In addition, the affordable to my low- and low- City is in the process of p- 15 income households. Given updating its in -lieu fee and considerations of proper general affordable housing ordinance planning, the California to reflect current land costs Environmental Quality Act, project and to clarify existing development incentives, and requirements. government financial assistance, the City shall either; a) require the production of the housing units affordable to very low- and low - income households, or, b) require the payment of an in -lieu fee, depending on the following criteria for project size: (See Housing Element for specific criteria). 2.2.2 The City shall provide more On -going assistance for projects that provide a higher number of affordable units or a The City will provide financial greater level of affordability. More assistance based on a project than 20% of units shall be affordable by project analysis, depending when assistance is provided from on need and overall project Community Development Block Grant merits. funds or the City's in -lieu housing fund. The City continues to participate in this Housing Program. The Bayview Landing Senior Affordable housing project received $1 million dollars from the City's "in -lieu" housing fund reserves. (See Bayview Landing status report for details on project) 2.2.3 For new developments proposed in On -going the Coastal Zone areas of the City (comprising approximately 40% of Staff continues to implement the area of Newport Beach), the City the provisions of Chapter shall require provision of housing 20.86 of the Zoning Code affordable to persons or families of (Low and Moderate Income low- and moderate- income, where Housing within the Coastal feasible in projects of 10 or more Zone'). units. Whenever practicable, the City shall require they be located on -site; The most recent instance of a alternatively, the City may permit the development project developer to locate units off -site but proposing to build more than 15 Ii within the Coastal Zone, or within (3) miles of the Coastal Zone (within Newport Beach). All residential developments of three units or more within the Coastal Zone shall require a Coastal Residential Development Permit. Determinations of feasibility, and procedures relating to provision of low- and moderate - income housing within the Coastal Zone, shall be governed by Newport Beach Municipal Code Title 20. 10 new additional units within the coastal zone was the Cannery Lofts Mixed Use Development project (PA 2001 -128). An affordable housing feasibility study was performed and it was determined infeasible to require 2 of the 22 units proposed to be reserved for moderate - income households. Due to the finding of infeasibility, the payment of an in -lieu fee was required. 2.2.4 All required affordable units shall On -going have restrictions to maintain their affordability for a minimum of 30 Staff continues to include this years. affordability restriction as a standard condition on all affordable housing projects, unless an otherwise longer affordability covenant is agreed upon. A comprehensive affordable housing ordinance is currently being developed which will clearly specify all conditions for incentives, including the minimum affordability period of 30 years. Bayview Landing was required to provide a restricted affordability covenant of a minimum of 55 ears. 2.2.5 Attempt to ensure that existing On -going landowners and prospective developers are aware of affordable City staff continues to provide housing development opportunities prospective developers with available within the Newport information on the City's Banning Ranch, Bayview, and available land and its Avocado /MacArthur properties. incentive program. For example, the land owner Ii 15 of the Avocado /MacArthur property was notified of the City initiated General Plan Amendment to change the land use designation of the subject property from Open Space to Multi - Family Residential with a specific opportunity for affordable housing. 2.2.6 The Affordable Housing Task Force On -going and/or City staff shall periodically contact known local developers and The City Manager's Office and landowners to solicit new affordable Community and Economic housing construction. Development periodically discuss the construction of new affordable housing with local developers and landowners. City staff also introduces the idea of constructing affordable housing to developers who propose large residential projects and discuss Density Bonuses to assist in the construction of affordable housing. 2.2.7 The Affordable Housing Task Force On -going shall create a program for the expenditure of in -lieu housing funds. Upon completion of developing an In -Lieu Fee program and ordinance, a meeting will be scheduled with the Affordable Housing Task Force to develop a program for the expenditure of in -lieu fees. 2.2.8 When it is determined to be of On -going benefit, the City shall participate in other housing assistance programs City staff continues to that assist production of housing. investigate feasible housing assistance programs. 2.3.1 Newport Beach Staff and developers On-going 15 (A'Y (nail. Y... . GA GGA ' ROGR{1Mq. i G ©Al , , . a 5TT ' 3.1.1 Increase the efficiency of the On -going building permit process by insuring that the initial plan review be The City has an automated completed within 4.weeks for 90% tracking system in place. of all submittals. This will include an automated tracking system If a target date is missed, an allowing applicants to monitor plan email notification is sent to all check progress via the Internet. department supervisors. Implementation of this program began in September 2002 and Efficiency of plan check review operates on an on-going basis. is monitored monthly to ensure Of proposed major commercial /industrial projects shall S Staff will research the idea of study housing impact(s) of such d developing housing impact project(s) during the development f fees for all new commercial review process. Prior to project a and industrial developments. approval, a housing impact assessment shall be developed by S Staff will monitor all new the City with the active involvement p planning applications for of the developer. Such assessment a applicability. shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to the "Greenli ht" initiative. 2.3.2 A As part of the comprehensive O On -going General Plan Update, investigate the potential of housing (including single T The General Plan Advisory room occupancy hotel(s), and mixed C Committee continues to meet use development in areas such as t to discuss various land use Newport Center, Santa Ana Heights, o options, including the potential Bay Knolls and JWA. f for these various forms of housing. The General Plan Update is still in process will likely extend into 2006. Y... . GA GGA ' ROGR{1Mq. i G ©Al , , . a 5TT ' 3.1.1 Increase the efficiency of the On -going building permit process by insuring that the initial plan review be The City has an automated completed within 4.weeks for 90% tracking system in place. of all submittals. This will include an automated tracking system If a target date is missed, an allowing applicants to monitor plan email notification is sent to all check progress via the Internet. department supervisors. Implementation of this program began in September 2002 and Efficiency of plan check review operates on an on-going basis. is monitored monthly to ensure 11 a 90% success rate. 3.1.2 When a residential developer On -going agrees to construct housing for persons and families of low and The City considers density moderate income, the City shall bonuses and other incentives either (1) grant a density bonus or on a project by project basis, (2) provide other incentives of depending on the need and equivalent financial value. project merits. 3.2.1 Identify the following sites as On -going adequate, which will be made available through appropriate All three of these sites have zoning and development standards been identified in the Housing and with public services and Element under, "Inventory of facilities needed to facilitate and Land Suitable for Residential encourage development of a Development'. variety of housing types to meet City housing goals as identified Bayview Landing was approved pursuant to Government Code on February 25, 2003 by the Section §65583(b): Newport City Council and on November Banning Ranch; Bayview Landing; 25, 2003 by the Coastal and, Avocado /MacArthur. Commission. Building permits have been issued and project is currently under construction with an expected completion date in early 2006 (See Bayview Landing status report for details on project) A General Plan Amendment Initiation was approved for the Avocado / Macarthur site by the City Council on April 27, 2004. An Initial Study was completed on August 9, 2004 in conjunction with a Mitigated Negative Declaration. Publication of the notice to adopt the Mitigated Negative Declaration is temporarily on hold until negotiations with the property owner are completed. The Avocado /MacArthur site remains available for multifamily development. However, a roiect nrnnnsnl has notyet _ 11 been received. Should the property owner propose an affordable housing project the City will assist the owner in completion of the General Plan Amendment. A project proposal has not been received for the Banning Ranch site. 3.2.2 Require the developer(s) of the Pending project completion 4.5 -acre site located on the southwesterly corner of the intersection of Jamboree Road and Back Bay Drive (known as the Bayview Landing site) to provide approximately one hundred twenty (120) residential units for low - income senior households. The City shall assist the developer(s) by streamlining the discretionary application process and by granting a density bonus of twenty - five percent (25 %) for the project. Additionally, the City may consider using a portion of fees collected from other projects paid in -lieu of providing affordable residential units to facilitate meeting the City Affordable Regional Housing Needs Assessment construction requirements on said Bayview Landing site. 3.2.3 Encourage the developer(s) of a Pending 3.5 -acre site located northerly of San Miguel, easterly of Avocado GPA Initiation Approved Avenue, and westerly of MacArthur . PC- April 8,2004 Boulevard (known as the . CC- April 27,2004 Avocado /MacArthur site) to provide at least fifty -six (56) multiple - family residential units for Senior Citizen Households. The City shall assist the developer(s) by initiating a Change of Zone within one (1) year of certification of this Housing Element to allow 19 such senior residential units on said site, by considering a "density bonus" and /or other incentives, and by streamlining the discretionary process. Additionally, the City may consider using a portion of fees collected from other projects paid in lieu of providing affordable residential units to facilitate meeting the City's Very Low -, Low -, and Moderate - Income Regional Housing Needs Assessment construction require- ments on the Avocado /MacArthur site. 3.2.4 When requested by property On -going owners, the City of Newport Beach shall continue to approve rezoning The City continually monitors of developed or vacant property requests for zone changes of from non - residential to residential vacant and developed uses when appropriate. These properties from non - residential rezoned properties shall be added to residential and approves to the list of sites for residential when determined to be development. compatible and feasible. When approved, these sites are mapped for residential uses on both the zoning district map and General Plan Land Use Map. 3.2.5 The City shall consider a potential Pending reduction of commercial zoning within some of its village Several commercial areas in the commercial areas within the Coastal Zone have been Coastal Zone to allow for identified as having the potential additional residential development. for mixed use Economic feasibility studies to (residential /commercial) support such a reduction will be developments. These areas are evaluated concurrently with the currently being evaluated as City's General Plan Update part of the General Plan Update projected for completion in 2005. EIR and in the review and formation of General Plan polices. The General Plan Update is 19 3.2.6 Encourage the participation in a Joint Powers Authority of Orange County jurisdictions for the purpose of financing and administering a lease purchase program for first -time homebuyers. Continue to participate as a member of the Orange County Housing Authority Advisory Committee and work in cooperation with the Orange County Housing Authority to provide Section 8 Rental Housing Assistance to residents of the community. The City shall, in cooperation with the Housing Authority, recommend and request use of modified fair market to be On September 24, 2002, the City Council authorized the City Manager to execute a Joint Powers Agreement for membership in the Agency and attend Agency meetings and take any and all actions necessary to coordinate the City's voting membership in the Agency and participation in the Lease -to- Purchase Program. However, due to extreme rises in home prices in the last two years, the program was deemed infeasible and never executed. In December of 2003, the program was updated to respond to changes in the housing bond market. The Joint Powers Agreement was recently executed in August of 2004. The City has posted information on the program on the website and plans to create an informative flyer /brochure to advertise.the program to the City Staff regularly attends the quarterly meetings of the Cities Advisory Committee. In addition, staff continually works in cooperation with the County to provide Section 8 rental housing assistance to residents. zd rent limits to increase number of housing units within the City that will be eligible to participate in the program. The Newport Beach Planning Department shall prepare and implement a publicity program to educate and encourage landlords 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. The City is currently working with the OCHA to help disseminate information regarding the upcoming opening of the Section 8 waiting list. A link to the Orange County Housing Authority website has been placed on our City website to provide information on the Section 8 program. At w ia'OAL " ".- 4 z$TA '- PROGRAM GRAD 65 4.1.1 Periodically contact owners of On -going affordable units for those developments listed on Table 29 to Staff is currently updating the obtain information regarding their contact list for affordable plans for continuing affordability on units. A survey maybe their properties. developed and sent out annually to each contact. 4.1 .2 Consult with property owners Pending regarding CDBG funds and in -lieu funds to maintain affordable housing Will be discussed during the opportunities in those developments AHTF meetings in listed in Table 29. conjunction with Program 2.2.7. 4.1 .3 Prepare written communication for On -going tenants and other interested parties about OCHA Section 8 renewals to Information pamphlets assist tenants and prospective informing prospective tenants tenants to acquire additional and landlords about the understanding of housing law and OCHA Section 8 program i related policy issues. have been made available in the public lobby. In addition, information about the Section 8 program has been posted on the City website. 4.1.4 Continue to pursue Community Pending At Development Grant Funds to facilitate construction of housing for very low - and low- income households. Use of CDBG funds may include but shall not be limited to site acquisition, "off- setting" of land and/or construction costs. The use of CDBG funds for the purpose of facilitating construction of housing for very low- and low- income households will be discussed in conjunction with Program 2.27 and 4.1.2 at the next AHTF meeti 6,AL 5v PROGRAM= GOAL _ r STATus 5.1.1 Apply for US Department of Urban On -going Development CDBG funds and allocate a portion of such funds to The Action Plan for Fiscal year sub - recipients who provide shelter 2004/2005 has been approved and other services for the homeless. and the City will provide funding to the following organizations to preserve the supply of emergency and transitional housing: Orange Coast Interfaith Shelter, Serving People In Need (SPIN), WISEPIace, and Mercy House. The following organization is funded to assist homeless individuals and to prevent those "at- risk" of become homeless: FISH Harbor The following organization has been funded to assist homeless battered women and children: WISEPIace 5.1.2 As a condition of receiving housing On -going funding through the City, the City shall require social service agencies Reports are submitted on a receiving such funds record quarterly basis with each information on clients they serve invoice from CBDG recipients. and provide an annual audit of their These records are kept on file activities. at the grant administrator's office (MDG). W 5.1.3 Cooperate with OCHA to pursue Pending establishment of a Senior /Disabled or Limited Income Repair Loan and Research is in progress, and Grant Program to underwrite all or an analysis of different part of the cost of necessary programs and the financial housing modifications and repairs. feasibility of participating in Loans would be repaid or forgiven these programs will be on an ability to pay basis. Health assessed. and safety deficiencies would receive priority. Modifications for accessibility also would be appropriate. Administration of funds would be the responsibility of the OCHA. Cooperation with OCHA will include continuing City of Newport Beach participation in the OC Continuum of Care and continuing to provide CDBG funding. 5.1.4 Continue to permit development of On -going senior citizen housing facilities in all residential and commercial zoning Bayview Landing is a senior districts pursuant to Zoning Code affordable housing project Sections 20.10.020 and consisting of 120 units. All 20.15.020(b). units are age restricted to those 62 years of age and older. (See Bayview Landing status report for details on project). 5.1.5 Continue to permit, where On -going appropriate, development of "granny" units in single - family areas Code Amendment No. 2003 - of the City. Consider amending the 001 (PA 2003 -054) was zoning code to allow approval of approved by City Council May "granny units" at the staff level 13, 2003 to grant the Planning instead of by the Planning Director approving authority Commission. over Second Unit Use Permits, rather than the Planning Commission. 5.1.6 Consistent with the development On -going standards in residential and commercial areas, continue to Emergency shelters and permit emergency shelters and transitional housing are transitional housing under group monitored for compliance with housing provisions in its Zoning the development standards Code. regulations contained in the �3 P. i Zoning Code. 5.1.7 The City of Newport Beach shall On -going investigate State Housing Opportunities for Persons With On February 9, 2005, the City AIDS ( HOPWA). participated in the 2005 HOPWA Strategy Meeting hosted by the City of Santa Ana, to provide recommendations for the allocation of HOPWA funds for the 2005 program year. As the most populous city in Orange County, the City of Santa Ana receives HOPWA funding from HUD on behalf of the entire County. Authorized uses of these funds include: acquisition, rehabilitation, conversion, or lease of facilities to provide short-term shelter, new construction, project or tenant based rental assistance, short term rent and utility payments, and supportive services. Should the City wish to partner in the acquisition, development, or rehabilitation of affordable housing for persons with HIV /AIDS , the City may request funding at future HOPWA Strategy meetings. 5.1.8 Notify residential developers (upon On -going application for a discretionary permit) and to interested individuals Project planners regularly and families, the following Table, inform developers about entitled "Public and Private affordable housing Resources Available for Housing opportunities and programs. and Community Development Activities. (Table included in Appendix 4 5.1.9 By December 2003, the City shall Completed analyze and determine whether P. i there are constraints on the development, maintenance and improvements of housing intended for persons with disabilities, consistent with SB 520 enacted Jan. 1, 2002. If any constraints are found, the City will take subsequent actions within 6 months of the completion of the evaluation. The analysis will include an evaluation of existing land use controls, permit and processing procedures and building codes. If any constraints are found in these areas, the City will initiate actions to address these constraints, including removing the constraints, or providing reasonable accommodation for housing intended for persons with disabilities. As required by SB520, a Constraints Analysis report was completed in January 2004, however due to anticipated changes to the Zoning Code pertaining to "Residential Care Facilities ", the report was postponed until a resolution was adopted. The City has adopted amendments to the Zoning Code which includes the addition of a Federal Exception Permit process as a mechanism for persons to request a reasonable accommodation pertaining to residential care facilities for 7 or more persons within residential zones. Changes have been made to the SB520 Constraints Analysis consistent with the amendments and the report was submitted to HCD on July 20, 2004. C. MITIGATING GOVERNMENTAL CONSTRAINTS In accordance with Senate Bill SB520 and Newport Beach Housing Program 5.1.9, a thorough analysis of constraints on the development, maintenance and improvement of housing for persons with disabilities was conducted in January of 2004. The analysis specifically addresses constraints related to zoning and land use controls, permit and processing procedures, and building codes. Although a potential constraint was recognized, the City of Newport Beach complies with both the federal Fair Housing Act (FHA) and the California Fair Employment and Housing Act (FEHA) in providing reasonable accommodations through the use of existing regulatory procedures not specially designed for people with disabilities. A potential constraint may exist at times when there are conflicts between the California Building Code requirements pertaining to access and adaptability for persons with physical disabilities and the Newport Beach Zoning Code requirements. The City recognizes that a person with disabilities may require special accommodations for retrofitting their existing residential units for purposes of accessibility and safety. A remedy for dealing with these conflicts between building code requirements for accessibility and adaptability, and the City Zoning Code would be to amend Zoning Code Section 20.60, "Site Regulations ", to incorporate a subsection which would allow the City to utilize a "Director/ Staff Approval ". This type of approval is an existing administrative review process and is intended to allow the review and analysis of conflicts and requests for accommodations at the staff level. Staff is exploring this option as part of a review of development standards contained in the zoning code. D. THE GENERAL PLAN UPDATE In order to accommodate City's fair share of regional population growth, a significant part of the comprehensive General Plan Update process has focused on identifying areas of the City that may be suitable for future residential development. Since the City is largely built out, most of the options being considered involve redesignating some commercial /office /industrial areas for residential or mixed residential /commercial uses. Of these, properties in the Airport Area and Newport Center have been identified as having the potential to yield a substantial number of new dwelling units. These two areas, in addition to several others identified as possible new residential sites, are currently being assessed in the EIR being prepared for the General Plan Update. Future development in these areas would be subject to affordable housing regulations and will yield additional affordable units or generate additional in lieu affordable housing fees. The General Plan Update is scheduled to be completed in 2006. M, September 16, 2005 State of California Office of Planning and Research Clearinghouse and Planning Unit P.O. Box 3044 Sacramento, CA 95812 -3044 Subject: General Plan Annual Progress Report Dear Sir /Madam: In conformance with the Governor's Office of Planning and Research (OPR) "Guidelines for the submission of General Plan Annual Progress Reports," the City of Newport Beach is submitting this letter to inform you that the City is in the process of a comprehensive update of the General Plan and will not be submitting an Annual General Plan Report this year. However, the City will still be providing the State Department of Housing and Community Development (HCD) with the housing portion of the annual report illustrating the progress of meeting our Regional Housing Needs and demonstrating the effectiveness of the Housing Element in attainment of the community's housing goals and objectives. The first phase of the General Plan Update, the "Visioning Process" was completed in January of 2003. The Visioning Process brought together hundreds of residents and business owners in the community to examine and discuss crucial issues and provide direction for future policy decisions. Through a variety of Visioning events, community members have spoken on how best to characterize the City's identity, how to address pressures of physical development, and how to balance environmental conservation with the need to maintain and improve infrastructure and services. The community's deliberations related to these issues will ultimately be considered as part of the General Plan Update and policy formation. The second phase of the General Plan Update process consisted of the preparation and review of several technical studies and the identification of land use alternatives for several identified "sub- areas" of the City. Four technical studies, which focus on traffic and circulation, biological resources, hazards, and the City's fiscal conditions have been completed and reviewed. In August, a land use alternative for each sub -area was selected by the City Council for use in the preparation of the EIR with input provided by the 37- member General Plan Advisory Committee (GPAC), Planning Commission and the public. Ay Currently, the General Plan Update Environmental Impact Report and related technical studies are being prepared. Additionally, GPAC, the Planning Commission and the City Council continue to meet on an on -going basis to discuss issues and policies related to all General Plan elements. The General Plan Update is expected to be completed in mid 2006. If you have any questions or need further information, please contact Senior Planner Gregg Ramirez at (949) 644 -3219 or by email at gramirez@city.newport- beach.ca.us. Sincerely, Patricia Temple Planning Director cc: Lucetta Dunn, Director Department of Housing and Community Development 1800 Third Street, Room 430 P.O. Box 952050 Sacramento, CA 94252 -2050 a�