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CITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC
DEVELOPMENT
PLANNING DEPARTMENT
3300 NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
(949) 644 -3200; FAX (949) 644 -3250
Agenda Item No.:
Staff Person
REPORT TO THE MAYOR AND CITY COUNCIL
25, 2000
23
Christy Teague
(949) 644 -3207
SUBJECT: Review of 1998 -1999 Community Development Block Grant
Annual Performance Report, Initiation of 2000 -2001
Community Development Block Grant Application with One
Year Action Plan and 2000 -2005 Five Year Consolidated Plan
Document.
SUMMARY: As part of the annual Community Development Block Grant
application process, the City must hold a public hearing to
review the 1998 -1999 Annual Performance Report. This
. public hearing also provides the opportunity for the City
Council to receive public comment on the needs of the
community and to give direction to staff for preparation of the
2000 -2001 Community Development Block Grant Application
with One Year Action Plan and the 2000 -2005 Five Year
Consolidated Plan Document.
:YIIK"YI Y SIC
ACTION: 1. Hold public hearing to receive comments on the 1998 -1999
Annual Performance Report, the 2000 -2001 CDBG
Application with One Year Action Plan and the 2000 -2005
Five Year Consolidated Plan; and
2. Provide direction on the 2000 -2005 CDBG Five Year
Consolidated Plan, and direct staff to prepare the draft
2000 -2001 CDBG Application with One Year Action Plan
for City Council review and approval at a public hearing
tentatively scheduled for March 14, 2000.
Back rg ound
. Federal regulations establish the application process for grant funds administered by the
Department of Housing and Urban Development (HUD). This public hearing is to review
the prior year (1998 -1999) performance and comment on the needs for next fiscal year
(2000 -2001) allocation. The City received $495,000 in funding for the current Fiscal •
Year 1999 -2000. HUD has not yet established City entitlement amounts for Fiscal Year
2000 -2001, but it is anticipated that it will be similar to this year's grant.
On April 10, 1995, the City Council approved a 1995 -2000 Consolidated Plan Document
(CPD) and a One Year Action Plan. A One Year Action Plan is required for each fiscal
year within the Five Year 1995 -2000 CPD. The CPD is a planning document that
contains an assessment of the housing and community development needs of the
community and a five -year strategy with a one year action plan to address identified
needs. The current Fiscal Year 1999 -2000 is the fifth and final year of the 1995 -2000
Consolidated Plan Document. The One Year Action Plan contains a list of activities the
City will assist with CDBG funds during the coming fiscal year and is a key component
of the City's grant application.
This is the first public hearing for input on the 2000 -2005 Consolidated Plan Document.
The new Consolidated Plan Document will outline CDBG activities for the next five
years and will include a One Year Action Plan for Fiscal Year 2000 -2001.
Public Notice and Review
Through the process described in the City's adopted Citizen Participation Plan, the public
is given the opportunity to be involved in the development of the Consolidated Plan •
Document. Individual notices of this public hearing were mailed to all social service
agencies that have previously requested funds, as well as local governments, business
community representatives and other known interested organizations. Additionally, the
City's required public hearing notice was published once in the newspaper. Interested
parties also will have an opportunity to comment on the draft 2000 -2005 Consolidated
Plan and the 2000 -2001 One Year Action Plan at a second public hearing, tentatively
scheduled for March 14, 2000.
Overview of Federal Elieibility Requirements and Criteria
There are a wide variety of eligible activities under the CDBG program. The following
activities were approved in the City's 1995 -2000 Five Year CPD: land acquisition,
clearance, and disposition; the acquisition, development or improvement of public
services and facilities in low- income areas; removal of architectural barriers; public /social
services; relocation assistance; commercial property rehabilitation; job creation and
economic development.
CDBG program statutes establish three basic goals: 1) Provide decent housing; 2)
Provide a suitable living environment; and 3) Expand economic opportunities. Activities
assisted with CDBG funds must also accomplish at least one of the three national
objectives of the program: 1) Benefiting low- and moderate - income persons; 2)
Preventing slums and blight; or 3) Responding to urgent health and safety needs.
CDBG
January 25, 2000
Page 2
HUD regulations also require that cities spend at least 70% of their program funds to
principally benefit low- and moderate- (L/M) income persons. If an activity does not
benefit L/M income persons it must meet specific HUD standards to qualify under one of
the other national objectives.
Further details regarding program criteria and eligible activities are provided in
Attachment 1.
Annual Performance Report, 1998 -1999
HUD regulations also require that citizens have an opportunity to review the Annual
Performance Report (APR - Attachment 2), which measures the City's performance in
relation to anticipated goals as set forth in the previous One Year Action Plan. The City
must make the APR available to the public for review prior to receiving citizen comment
on next year's application, which is tentatively scheduled for public hearing on March 14,
1999. The APR shows that 1998 -1999 funds were spent in accordance with the
allocations made in the approved CPD, as summarized below. The CDBG grant amount
for 1998 -1999 was $492,000.
Cateeory .-. -,
Budeet
. Expenditures .:
to date
Public Service Activities
15%
15%
Balboa Peninsula
Revitalization
65%
52%
Program Administration
20%
20%
Total
1 100%
87%
Newport Beach Priorities
For the 1997 -1998 and 1998 -1999 program years, Newport Beach has focused its CDBG
program on economic revitalization of the Balboa Peninsula. Revitalization efforts
funded by 1998 -99 CDBG funds include the Newport/Balboa Boulevard "Mixmaster"
feasibility study, Balboa Peninsula sign regulations, Balboa Village Pedestrian and
Streetscape Improvement Plan and additional code enforcement. For Fiscal Year 1999-
2000, a continuation of public improvement projects is underway on the Balboa
Peninsula including Balboa Boulevard repaving and enhancements.
In addition to economic development activities, 1998 -99 funds supported public service
activities with the maximum 15% permitted by HUD. This component of Newport
. Beach's CDBG program is expected to continue at the same level.
CDBG
January 25, 2000
Page 3
Conclusion
This public hearing is intended to satisfy HUD regulations by providing interested parties
an opportunity to review the City's 1998 -1999 Annual Performance Report and submit
testimony regarding community needs for consideration in the preparation of the 2000-
2001 CDBG application, the 2000 -2005 Five Year Consolidated Plan and One Year
Action Plan. This is also an opportunity for the City Council to provide staff with
general guidance on program areas it feels should be addressed. The application package
will include community and City Council input when it is presented for a second public
hearing. It is suggested that a second public hearing be tentatively scheduled for March
14, 2000 for review and approval of the City's CDBG application package for Fiscal
Year 2000 -2001, the 2000 -2005 Five Year Consolidated Plan and the One Year Action
Plan.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
Prepared by:
CHRISTY D. TEAGUE, AICP
Senior Planner
Attachment 1: SunZJ4 of CDBG Program Criteria and Eligible Activities
Attachment 2: Annual Performance Report (APR)
F:\... \SHAREWOUNCI L\2000 \0125
CDBG
January 25, 2000
Page 4
5�
11
9
0 Attachment 1
Summary of CDBG Program Criteria and Eligible Activities
A. NATIONAL OBJECTIVES:
Summarized below are the CDBG program criteria under the three national objectives of
benefiting low- and moderate - income persons, preventing slums and blight, and
responding to urgent health and safety needs.
1. Benefiting Low- and Moderate - Income Persons
Low- and moderate- (L/M) income persons are defined as persons, households or families
earning less than 80% of the HUD area median income adjusted by the number of
persons. The current income thresholds, which became effective January 27, 1999, are as
follows:
1 Person: $ 33,450 3 Persons: $ 43,000 5 Persons: $ 51,600 7 Persons: $ 59,520
2 Persons: $ 38,250 4 Persons: $ 47,800 6 Persons: $ 55,450 8 Persons: $ 63,100
These figures are expected to be adjusted in late January, 2000.
Activities that benefit L/M income persons are grouped into four categories: 1) Area
benefit activities; 2) Limited clientele activities; 3) Housing activities; and 4) Job creation
or retention activities.
Area Benefit Activities: A qualifying area benefit activity meets the identified needs of
L/M income persons residing in an area where at least 51% of the residents are L/M
income persons. For cities such as Newport Beach with fewer than 25% of its populated
census block groups containing 51% L/M income persons, the regulations allow
"exception criteria" to be used. HUD defines an "exception criteria area" as any
residential area where the proportion of L/M income persons falls within the top 25% of
all residential areas of the City. For Newport Beach, there are 20 block groups containing
29% or more L/M income persons that qualify under the exception criteria. These 20
L/M income block groups are located in 8 of the City's 23 census tracts.
Even though an activity occurs within an exception criteria area the activity may not
necessarily qualify as benefiting L/M income persons. In order to qualify as benefiting
L/M income persons, the activity must be located in a L/M income area that is
predominately residential and the City must demonstrate the benefit to L/M income
persons. Improvements to structures or public facilities that do not principally benefit
L/M income persons will not qualify, even though the improvement occurs in an
exception criteria area. For cities that are entirely or predominately comprised of L/M
CDBG
January 25, 2000
Page 5
income census tracts and/or block groups, it is assumed that activities occurring within
those areas benefit L/M income persons. For commercial districts located within eligible
residential areas, activities to improve commercial properties must show a benefit to L/M
income persons.
Limited Clientele Activities: A limited clientele activity benefits a specific group of
people, at least 51 % of who are L/M income persons. Generally, it is a "presumed" L/M
income benefit if the activity assists groups known to be more than 51% L/M income
persons. HUD defines these groups as the handicapped, elderly persons, battered
spouses, abused women, homeless, illiterate persons, and migrant farm workers. If the
clientele is not from a "presumed" L/M income group, documentation must be provided
on family size and income to establish that at least 51% are L/M income persons. Recent
regulatory changes have added microenterprises (businesses employing 5 or fewer
persons) and job training and placement to the eligible list of limited clientele activities
when it is demonstrated that the activity benefits L/M income persons and meets other
conditions.
Housing Activities: Housing activities that create new housing or improve existing
residential structures that will be occupied by L/M income persons, households and
families are in this category.
Job Creation or Retention Activities: A job creation or retention activity creates or
retains permanent jobs, at least 51 % of which are either taken by L/M income persons or
considered available to L/M income persons. Only permanent jobs are eligible for
assistance. The business must use a hiring practice to assure over 51% of the persons
hired meet L/M income criteria.
Funds can be used to assist a business in establishing or expanding its operation. To
conduct a job retention activity, the City must document that the jobs will actually be lost
without the CDBG assistance and that 51 % of the jobs are held by L/M income persons.
However, any job creation or retention effort undertaken pursuant to a Neighborhood
Revitalization Strategy is considered to meet the standard CDBG L/M income area
benefit requirements and businesses that receive assistance are not required to track the
specific income of applicants they hire or interview, only account for the overall number
of persons.
2. Preventing Slums and Blight
An activity that prevents slums and blight may be done on an area or spot basis. If it is
done on an area basis the activity must occur in an area that meets an adopted definition
of a slum, blighted, deteriorated or deteriorating area under state or local law. If an
activity is done on a spot basis, rather than in a defined area, the activity is limited to
elimination of conditions detrimental to public health and safety. A redevelopment area
is considered to meet the definition of slum and blight. Since the City does not have a
CDBG
January 25, 2000
Page 6
redevelopment agency, areas must be designated using a definition of slum, blight,
deteriorated or deteriorating that is adopted in state or local law.
3. Urgent Health and Safety Need
An urgent health and safety activity responds to a condition posing a serious and
immediate threat to the health and welfare of the community. The condition must be of
recent origin or recently become urgent. The City must be unable to finance the activity
on its own and other resources must not be available.
B. ELIGIBLE ACTIVITIES:
The following is a brief discussion of the activities eligible under CDBG regulations and
included in the City's five -year strategy.
1. Land Acquisition
Funds can be used to assist with the acquisition of land providing the activity ultimately
benefits L/M income persons or meets another national objective. The City has used
CDBG funds in previous years to "write down" the cost of land for development or
redevelopment of properties with new housing units. Since 1985, the City has assisted
developers of five housing developments using CDBG funds, resulting in over 180 new
housing units.
2. Public Facilities and Improvements
Funds can be used to assist with the acquisition, construction, reconstruction or
rehabilitation of public improvements or facilities such as street improvements provided
the activity meets a national objective such as benefiting L/M income persons. The City
has used its CDBG funds in previous years to acquire a community center, remove
architectural barriers and assist public service organizations. In the next few years funds
are budgeted for improvements on Balboa Peninsula such as design of an entry statement,
the Balboa Boulevard beautification feasibility study, and the Newport/Balboa Boulevard
"Mixmaster" feasibility study. All these activities meet the national objective of
benefiting L/M income persons based on "area benefit ".
3. Public /Social Services
Up to 15% of the City's entitlement funds can be used to assist public and social service
agencies. These activities must address the national objective of benefiting L/M income
persons. The City has funded social service agencies each year with maximum permitted
15 %. Social service agencies funded in prior years such as Friends In Service to
Humanity (FISH), Street People In Need (SPIN), Young Women's Christian Association
CDBG
January 25, 2000
Page 7
(YWCA), Orange Coast Interfaith Shelter (OCIS), South County Seniors (SCS) meet the
national objective of benefiting L/M income persons based on "limited clientele ".
4. Microenterprises
Funds may be used to assist L/M income owners to develop, establish, stabilize, expand
or generally support microenterprises. A "microenterprise" is a business employing 5 or
fewer persons. Microenterprise was recently added as an eligible activity. The City has
not funded any microenterprises in prior years.
5. Commercial Rehabilitation
Funds can be offered in the form of grants, loans, and loan guarantees for facade
improvements to commercial buildings provided the activity benefits L/M income
persons; the project is within a neighborhood revitalization area; or the area meets the
criteria for slum and blight. Buildings that contain businesses offering goods and
services that are not priced or accessible to L/M income persons are not eligible. The
business community has expressed interest in Commercial Rehabilitation activities such
as a facade improvement program and sidewalk enhancement as part of the Balboa
Peninsula Revitalization efforts.
6. Special Economic Development
Funds may be used to create or retain jobs for L/M income persons as part of an
economic development project. Only permanent jobs are eligible, and new jobs must be
taken by or considered available to L/M income persons. When creating jobs the
business must use a hiring practice that will ensure that over 51% of the new positions are
filled by L/M income persons. Funds can be used to assist a business in establishing or
expanding its operation. To conduct a job retention activity, the City must document that
the jobs will actually be lost without the CDBG assistance and that 51% of the jobs are
held by L/M income persons. The amount of assistance to a business must be
proportionate to the number of jobs being created or retained, up to a maximum of
$35,000 per job. The City has not specifically funded this activity but activities being
funded under the category of Public Facilities and Improvements will result in the
creation or retention of jobs available to L/M income persons.
7. Activities by Community Based Development Organizations
A CBDO can be either a for - profit or non - profit association or corporation that has been
in operation for at least a year and is organized under state or local law to engage in
community development activities within an identified geographic area of operation
within the City. At least 51% of its governing body's membership must be L/M income
residents or other individuals representative of its geographic area of operation; it may
not be an agency or instrumentality of the City, and no more than one -third of the
membership of its governing body may be appointed by, or consist of, elected or other
CDBG
January 25, 2000
Page 8
. public officials or employees. Funds may be used to carry out neighborhood
revitalization, community economic development, or energy conservation programs.
Activities must also meet one of the national objectives. The City is not aware of any
organization within the community that qualifies or could qualify under this category.
0
CDBG
January 25, 2000
Page 9
ATTACHMENT 2
CITY OF NEWPORT BEACH •
PLANNING DEPARTMENT
POST
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Consolidated Annual Performance and Evaluation
Report (CAPER)
Fiscal Year 1998 -1999
Community Development Block Grant (CDBG)
3300 Newport Boulevard, Newport Beach, California 92663 (949)
644 -3225
10
Q SEW POD m
CITY OF NEWPORT BEACH
V Y P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
cg4FOVL \P
PLANNING DEPARTMENT
(949) 644 -3225
September 27, 1999
Mary Sue Teemley, Acting Director
Community Planning and Development Division
U.S. Department of Housing and Urban Development
AT &T Center
611 W. 6t' Street
Los Angeles, CA 90017
0 Dear Ms. Teemley
L�
Enclosed is the City of Newport Beach 1998 -1999 Consolidated Annual Performance
Evaluation Report (CAPER). The packet includes: required Grantee Narrative
Statements, Summary of Accomplishments Report (C04PR23), Consolidated Amival
Performance and Evaluation Report (C04PR06), Summary of Activities (C04PR03), and
Financial Summary Report (HUD - 4949.3).
If you have any questions, please call Christy Teague at (949) 644 -3207.
Very truly yours,
�'-v - 15:
Sharon Z. Wood
Assistant City Manager
cc: Arnold Sison, HUD — CPD Representative
3300 Newport Boulevard, Newport Beach AI
" CITY OF NEWPORT BEACH
CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT
(CAPER)
1998 -1999 FISCAL YEAR
1. Narrative Report
2. Summary of Accomplishments - IDIS Report C04PR23
3. Accomplishment Data - IDIS Report C04PR06
4. Activity Summary - IDIS Report C04PR03
5. Financial Summary
0
•
0
/a
CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT (CAPER)
NARRATIVE
Fiscal Year 1998 -1999
Summary
The City of Newport Beach has prepared this Consolidated Annual Performance Evaluation Report
(CAPER) for the period July 1, 1998 through June 30, 1999. This is the second year the CAPER
is being submitted under the Integrated Disbursement Information System (IDIS). However, the
City was active on IDIS during the entire 1998 -1999 fiscal year. All reporting for the fiscal year is
included in the following reports. The City followed the requirements for citizen review and
comments under the Consolidated Submission for Community Planning and Development Programs;
Final Rule. Citizens were given an opportunity to comment on the performance report before
submission to HUD.
PART 1
A. Assessment of Three -to Five -Year Goals and Obicctives
• Fiscal year 1998 -1999 was the fourth year in the City of Newport Beach Five -Year
Consolidated Planning Document (CPD). The CPD placed a High Priority Need Level to
on the issues of homeless, special needs of "at -risk" homeless, and economic development
opportunities to eliminate poverty and provide self - sufficiency through the Continuum of
Care process. The City's specific objectives in the Five Year CPD include: the Removal of
Architectural Barriers; Acquisition of Land for Affordable Housing; Public Facilities and
Improvements; Public Services to address the needs of people who are homeless and special
needs of those who are "at -risk" of becoming homeless; Commercial or Industrial
Rehabilitation to eliminate conditions that are detrimental to health, safety and public
welfare; and Economic Development opportunities for persons of low and moderate income
levels.
The activities identified in the 1998 -1999 One -Year Action Plan included the creation and
retention of jobs for low and moderate income persons and the provision for persons and
families in need of emergency shelter and transitional housing. The City funded the
operation of three (3) social service agencies that specifically provide housing and shelter to
homeless and those "at- risk" of becoming homeless: Orange Coast Interfaith Shelter
provides temporary shelter (up to 2 months), the YWCA Hotel for Women provides
temporary shelter (up to 60 days) for battered and homeless women and children, and FISH
(Friends in Service to Humanity) assists "at- risk" homeless and persons facing eviction by
subsidizing rent payments to prevent them from becoming homeless. The City also funded
SPIN (Serving People in Need) to assist homeless persons with drug -abuse counseling.
SPIN also assists homeless persons by providing first and last months rent and security
13
deposits for.- homeless persons to facilitate the transition into permanent housing and
independent living. These activities specifically meet the objectives and high priority needs
identified in the 5 -Year CPD to 1) "preserve the availability of /rousing for persons and
families in need of emergency shelter and transitional housing ", 2) "assist homeless
persons and to prevent those "at risk" of becoming homeless from becoming home less,"
and 3) "assist battered and homeless women and children".
In addition to these funded activities. several High Priority Needs and Strategic Plan
objectives were met through combined efforts of County agencies. While the City funds
only a limited portion of Social Service Agencies and programs, the City participates in a
comprehensive Countywide effort to address the needs of people who are homeless. "at risk"
homeless and special needs populations. Some Orange County agencies such as Share Our
Selves (SOS), Someone Cares Soup Kitchen, and Shelter for the Homeless are not currently
funded through the City of Newport Beach CDBG program, but provide services to low and
moderate income Newport Beach residents and meet specific objectives and areas of high
priority in the City of Newport Beach Five Year Consolidated Plan. These benchmarks are
not reflected in the City of Newport Beach's annual reports. Many of the activities being
funded as a Countywide effort address objectives identified in the City's 5 -Year CPD such
as the County of Orange participation in the Super NOFA to assist the above special needs
populations.
The City funded two (2) meal delivery programs which provide nutritious food to senior and
homebound persons. The City also funded improvements to increase accessibility and
mobility for handicapped persons to public and private buildings in compliance with the
Americans with Disability Act (ADA). The meal delivery programs and ADA
improvements specifically meet the 5 -year objective to 1) `provide assistance to the
elderly "and 2) "provide handicapped accessibility to public buildings, parks, piers,
restrooms, etc. in compliance with the Americans with Disabilities Act (ADA).
The City began public facility improvements in the targeted Balboa Peninsula Revitalization
Area. As stated in the Non - Housing and Community Development Needs portion of the
Housing Market Analysis of the 5 -year CPD, it is the intent of the City to provide for the
needs of "at -risk" and homeless persons and low and moderate income persons and families
in the area ofjob creation and development. To create jobs to serve this population requires
design modifications and improvements to existing commercial districts, improvements to
arterial streets and improved circulation and access to commercial districts to promote the
revitalization of the area neighborhood economy. These activities specifically meet the 5-
year objective to]) "alleviate physical and economic distress through the stimulation of
private investments and Community revitalization in areas with stagnating or declining
tax base, "2) "eliminate conditions which are detrimental to health, safety, andplrblic
welfare through the rehabilitation of neighborhood and community facilities," 3)
"preserve the surrounding neighborhood and include the economic empowerment of the
lover income residents, for the extremely low, very loiv and lower and moderate income .
persons, households and families," 4) "provide incentives and direct assistance for
commercial buildings throughout the City within the limitations of available resources,
17
to facilitate-the provision of neighborhoodrevitalization and economic emnpovermentfor
lower income families," and S) "the elimination of skims and blight, the prevention of
blighting influences and the deterioration ofproperty."
Together these activities provide for the specific needs of homeless and "at- risk" homeless,
persons with special needs, opportunities for job creation for low and moderate income
persons, homeless and "at- risk" homeless persons assistance toward self - sufficiency, and
elimination of poverty within the Community. Funding resources were primarily used to
assist Newport Beach residents citywide and partially to assist social service agencies located
near city boundaries. Resources provided to the homeless services programs were not
restricted to a specific census tract. These resources are distributed throughout various
census tracts within the City and the County. Resources allocated by the Orange County
Housing Authority which provided rental assistance to low income families were distributed
throughout the City. All funds from sources identified in the five -year CPD "Listing of
Priority Needs" were spent in accordance with the One Year CPD High Priority Need Level.
B. Affirmativelv Furtherins Fair Housing
The City contracted with the Fair Housing Council of Orange County to provide fair housine
opportunities for all persons. An Analysis of Impediments to Fair Housing (AI) complies
with all related regulatory requirements. The AI vas part of a regional effort and is on file
in the Planning Department, has been submitted to HUD, and is available to interested
citizens. Although HUD found the Al was well presented, several recommendations from
HUD were incorporated into the revised Al. It was found that, by far, the vast majority of
housing transactions in the Orange County regional area do not involve a violation offair
housing laws. Yet, there was sufficient evidence some transactions in the local housing
market still involve unlawful discriminatory housing practices. The City of Newport Beach
will continue to work with the Fair Housing Council of Orange County to analyze and
eliminate impediments to Fair Housing and amend the Al as necessary.
C. Affordable Housing
Households and Persons Assisted with Housing.
The 1998 -1999 one year action plan of the approved five year CPD anticipated 90
households to be assisted with Housing during the fiscal year. Indeed, 90 families
received Section 8 Vouchers or Certificates for Rental Assistance. The Section 8
Vouchers and Certificates were distributed by the Orange County Housing Authority.
An additional 348 persons were assisted with CDBG funds during 1998 -1999 as
reported by Nonprofit Homeless Support Services, which included homeless shelters,
shelters for abused women and children, shelters for persons with HIV, and rental
assistance for "at risk" households. Funding resources assisted all Number I High
Priorities contained in the Listing of Priority Needs for the overall five year strategy
objectives and priorities.
A total of $43,909 vas allocated and used for Homeless Support Services, including
housing for the homeless and two (2) guaranteed apartment programs for "at risk"
homeless. Two of the homeless assistance programs are located within the City of
Newport Beach and provided assistance to residents throughout the City. The
remaining homeless assistance programs and shelters are located outside city
boundaries, but provide assistance to Newport Beach residents.
Prior to the current 5 Year Consolidated Planning Document (CPD 1995- 2000), the
City had used the majority of its CDBG funds to provide affordable housing units.
The City has offered density bonuses and waivers of fees as incentives to provide
additional affordable housing units. The City currently monitors four affordable
housing projects (totaling 130 units) which were developed with assistance of CDBG
funds. A 100 unit affordable senior housing project was also assisted using Federal
(Section 202) fiords.
Currently there is approximately $2,000,000 in non - federal funds available for the
development and/or preservation of affordable housing units which was negotiated
by the City as part of a major residential development. These in -lieu fees have been
set aside pending the identification of a suitable site for the development of
affordable units. The remaining undeveloped sites suitable for residential
development have been reviewed and the City is currently seeking possible
alternatives for providing affordable housing within the City. In 1998 the City was
seeking development of a private affordable senior housing development at Bayview
Landing, which would have provided approximately 200 units. It appears that
project is no longer being considered by the developer. The City is actively seeking
one or two projects to provide needed low- moderate income senior housing units to
satisfy some of the high demand for this type of housing in Newport Beach and
greater Orange County.
In addition to the CDBG funds, approximately $950,110 was spent for Section 8
rental assistance during fiscal year 1998 -1999 for persons with incomes less than
50% of the Orange County Median Income who would be paying more than 30% of
their income towards housing.
Since the City of Newport Beach does not have any public housing units located
within the City, it does not propose to undertake any activities to increase the
involvement of public housing residents in management of public housing, nor to
develop other homeownership opportunities for these residents. Therefore, it is not
possible to assist residents in purchasing public housing.
J�
D. Continuum of Care Narrative
The County of Orange has formed a countywide committee (Orange County Steering
Committee) which includes Orange County jurisdictions, non - profit organizations,
local groups and charities to address the needs of homeless, "at- risk" homeless, and
to identify gaps in the Continuum of Care process. This has been their second year
as a Committee. The City of Newport Beach actively participates in the countywide
Continuum of Care Steering Committee and has developed and adopted, in
conjunction with Orange County jurisdictions and non - profit agencies and interest
groups, the countywide Continuum of Care Strategies for the homeless. The City has
placed a High Priority on addressing the needs of homeless, "at- risk" homeless,
persons with special needs, and to creating jobs for persons of low and moderate
incomes to provide economic development opportunities to eliminate poverty and
provide self - sufficiency through the Continuum of Care process. Together the funded
activities, identified in Section A above, meet the needs of homeless persons and the
special needs of persons that are not homeless but require supportive housing. This
is achieved by providing emergency housing, transitional housing and permanent
housing; substance abuse counseling; handicapped accessibility; the creation of jobs;
and a safe and decent living environment.
Some of the non - profit agencies which assist homeless, -'at risk "homeless and
persons with special needs have voluntarily formed a consortium to more effectively
address the needs of these population groups. These agencies provide shelter, job
training, substance abuse counseling, food, transportation and other needs to the
homeless populations in Orange County.
E. Other Actions Undertaken.
The City has identified the lack of developable sites, high land costs, and limited
funding as obstacles to affordable housing. The City maintains policies to encourage
the production of affordable housing, including density bonuses and fee waivers.
This is intended as an incentive to produce low cost housing to eliminate barriers
to affordable housing. The City is in the process of updating its housing policies
and hopes to further facilitate housing to all income levels, especially for seniors.
The City has $2,000,000 for affordable housing collected as a condition of a new
housing subdivision. The City worked on use of these funds to assist a senior
affordable housing project, but the project was not constructed as expected. The City
is currently considering other options for use of these funds as an incentive for
affordable housing alternatives.
There are no public housing units located in the City of Newport Beach.
Prior to use of federal funds, all existing units are inspected for lead based paint
hazards. Units identified as having lead based paint hazards are treated so as to
abate the lead based paint hazards in accordance with federal requirements. The use
0
of lead based paint is prohibited for newly constructed units.
The City has complied with all necessary program and comprehensive planning
requirements.
The City of Newport Beach has developed and is implementing an economic
development strategy to reduce the number of persons living below the poverty
level on the Balboa Peninsula, as discussed in Section A above.
F. Leveraging Resources
While no leveraging of non - Federal resources or matching contributions were
directly involved with programs during Fiscal Year 1998 -1999, funded social service
programs also received funding from other sources to meet their budget needs.
Efforts to arrest the decline of the Balboa Peninsula and create jobs for low and
moderate income persons are being supplemented through City funds and private
donations. The City acquired two pocket park sites at the Peninsula entrance. The
acquisition of these properties was accomplished through public funds and private
donations. The parks are currently under construction. The Balboa Pier parking lot
redesign and the Parking Management Plan are underway using local parking
revenue. The Balboa Theater has received more than $300,000 in private fundraising
donations from the local community. The Balboa Theater has also received 420 seats
donated by the Walt Disney Company.
G. Citizen Comments
The City of Newport Beach has a high level of citizen awareness and participation.
Public meetings and outreach have been actively pursued. The strategies and action
plans include the comments and views of citizens obtained at the Public City Council
Hearings and Public Meetings prior to the design and implementation of the
strategies and action plans. All Public Hearings and Meetings have been advertised
in accordance with the City's Citizen Participation Plan. Activities funded during the
1998 -1999 Fiscal Year reflect those comments and views. No further citizen
comments were received after the final Adopted Consolidated Planning Document
including the One Year Action Plan and the final Annual Performance & Evaluation
Report was made available to the public during the public review and comment
period.
H. Self- Evaluation
The City of Newport Beach has developed and is implementing activities that meet
the identified needs in the 5 -year CPD. All activities funded during the 1995 -1996,
1996 -1997, 1997 -1998, and 1998 -1999 action plans meet high priority needs and
specific objectives identified in the 5 -year CPD. The overall goal to provide decent
housing is being met through various social service agencies and the Orange County
)S'
. Housing Authority. Together, with the assistance of CDBG funds directed from the
City, these agencies provide emergency, transitional and permanent housing. The
Orange County Steering Committee has worked to most effectively meet the needs
of homeless and special needs populations. Participants in the Steering Committee,
including the City of Newport Beach, also seeks to eliminate gaps in services being
provided. These coordinated efforts have made a positive impact on the homeless
community. The coordinated efforts allowed for an increase in number of persons
assisted from an estimated 393 to 1,045 in the last two years, according to the 1998-
1999 reported of Nonprofit Homeless Support Services.
The goals to provide a suitable living environment and expand economic
opportunities principally for low and moderate income persons are being met
through the implementation of public improvements as part of the Balboa Peninsula
Improvements. The City's strategic plan (Project 2000 and the Balboa Peninsula
Planning Study) for the Balboa Peninsula include short term and long term goals. A
subcommittee of City Council members (Promote Revitalization of Our Peninsula,
or PROP) works through monthly community meetings to oversee these actions. The
involvement of citizens and business members, combined with public improvements
from many sources, have made a positive impact on the Balboa Peninsula by
stimulating growth of private investment and private donations, and improve the
living environment for persons in the surrounding neighborhood. Due to limited
is funds and long -tetra planning and implementation goals, the results may not be fully
realized during the 5 -Year CPD. Projects currently underway, such as the opening
and improvements to the Balboa Theater, will increase economic development
opportunities for low and moderate income persons by creating jobs available to
persons of low and moderate income.
Although progress is being made toward the goals identified in the 5 year CPD and
funds are being leveraged with multiple sources, limitations of funds continues to be
one of the barriers in meeting the objectives in fulfilling the strategies and overall
vision on the Balboa Peninsula.
The majority of programs and activities identified in the City's One Year Action Plan
have been implemented and completed during the 1998 -1999 fiscal year. However,
Economic Development activities, due to the amount of funds necessary and the long
term nature of the physical improvements and planning processes, are being
implemented and completed over several fiscal years.
Grant disbursements are timely and actual expenditures are consistent with the letter
of credit disbursements.
The goals of the program are being completed within anticipated guidelines and time
• frames.
No adjustments or improvements to strategies and activities are being proposed
19
during the next fiscal year. •
PART 2.
a. Resources and Investments Made Available Within the Jurisdiction
For Fiscal Year 1998 -1999, the City of Newport Beach anticipated and reported in
the Consolidated Planning Document (CPD), Federal CDBG entitlement funding in
the amounts of: $31,800 for housing, $10,000 for substance abuse /counseling,
$32,000 to provide meals for disabled persons and seniors, $ 550,715 for public
facilities, $21,700 for code enforcement, $20,000 for social service facilities, $14,029
for fair housing counseling services and $67,447 for program administration. During
Fiscal Year 1998 -1999, the City of Newport Beach applied for and received a total
of $492,000 in CDBG entitlement funds. The actual amount received and allocated
to assist and enable low income households and persons with special needs was
$733,498. Some of these funds were from prior fiscal year grants, but were spent
during the Fiscal Year 1998 -1999. All funds were used to assist High Priority Needs •
and Objectives identified in the 5 -Year CPD. During Fiscal Year 1998 -1999, the
following expenditures were made: $31,800 was used for housing which assisted
extremely low, very low and low income persons from Newport Beach; $10,000 was
used for substance abuse counseling which assisted extremely low, very low and loco
income persons from Newport Beach; $32,000 was used to provide meals to disabled
and senior homebound persons which assisted extremely low, very low and low
income persons from Newport Beach; $20,000 was used to assist in the development
of a homeless and battered persons shelter facility which assisted extremely low, very
low and low income persons from Newport Beach and greater Orange County;
$53,255 was used for removal of architectural barriers which assists disabled persons
throughout the City; $550,715 was used for public facilities, which assisted low and
moderate income persons; $21,700 was used for code enforcement which assisted
low and moderate income persons; $14,029 was used to provide fair housing services
and to affirmatively further fair housing; and $67,447 was used for program
administration. All activities are consistent with the City's 1995 -1999 CPD goals and
objectives.
Additionally, the City of Newport Beach anticipated and reported in the 1998 One
Year Action Plan the availability of Section 8 Certificates and Vouchers totaling
$929,858. The City of Newport Beach received approximately $950,110 in rental
assistance through the Orange County Housing Authority Section 8 Certificate and
Voucher distribution program.
6
• Households and Persons Assisted
During Fiscal Year 1998 -1999, 82 households received rental assistance through the
City's "at -risk" social service programs and 90 households received rental assistance
through the Orange County Housing Authority. The City did not fund any new
projects during Fiscal Year 1998 -1999 which resulted in additional permanent
affordable housing units. However, the City assisted one non - profit organization
(Olive Crest) with the purchase of one additional unit for temporary housing. This
one unit will serve several people in need from Newport Beach and greater Orange
County each year.
b. All funds from sources identified in the five year CPD `Listing of Priority Needs"
were spent in accordance with the One Year CPD High Priority Need Level. No
future actions or changes to the 5 -year strategy are proposed.
C. The CDBG funds were the only Federal funds received by the City used for housing.
No other Federal, State, local or private funds for housing were anticipated or
received during the 1998 -1999 fiscal year. However, the City has $2,000,000 for
affordable housing collected as a condition of a new housing subdivision. The City
explored use of these funds to assist a senior affordable housing project, but the
developer has decided not to proceed with the project. The City is actively pursuing
• other projects to use these funds for affordable housing. For funding sources
identified in the Consolidated Planning Document (CPD) and submitted for Fiscal
Year 1998 -1999, the funds allocated to the City were utilized based on the priorities
listed in the CPD.
d. With the exception of administration costs, 100% of the funds were used to meet the
National Objective of benefiting low and moderate income persons of Newport
Beach.
e. The City did not pursue any activities which resulted in relocation.
f. The City did not pursue any economic development activities which resulted in jobs
made available but were not taken by low or moderate income persons or activities
which serve a limited clientele not falling within one of the categories of presumed
limited clientele benefit.
The City did not generate program income.
91
PUBLIC NOTICE AND REVIEW •
As directed in the Consolidated Submission for Community Planning and Development Programs;
Final Rule, the City of Newport Beach published a public notice in the local newspaper notifying
the public that the City had completed its CAPER for the CPD period from July 1, 1993 to June 30,
1999. The public notice stated the funds were spent in accordance with the approved five year CPD
and the one year implementation plan to benefit low and moderate income families. The public
notice also notified the public of the availability of the five year CPD and annual one year action
plan at City Hall and invited public review and comment. The public notice was published on
September 15, 1999. The City counted the 15 day comment period from September 15, 1999, to
September 30, 1999. The CAPER was submitted to HUD on September 30, 1999, after the 15 day
public review and comment period.
f/shwed /cdbV98- 99 /capemu
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