No preview available
HomeMy WebLinkAbout12 - Housing Element Update - PA2008-078CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 12 August 12, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Gregg Ramirez, Senior Planner (949) 644 -3219, gramirez @city.newport- beach.ca.us SUBJECT: Housing Element Update General Plan Amendment No. 2008 -003 (PA2008 -078) RECOMMENDATION Review and direct staff to submit the draft 2008 -2014 Housing Element to the State Department of Housing and Community Development. PROJECT SUMMARY State law requires that local jurisdictions update the Housing Element of the General Plan in accordance with identified planning periods. This update covers the 2008 -2014 planning period. The Housing Element contains goals, polices and programs related to the development, maintenance and improvement of the City's housing stock. Additionally, it includes identification of the adopted Regional Housing Needs Assessment (RHNA), housing opportunities and constraints. Following the City Council hearing, staff will incorporate any changes and forward the draft to the State Department of Housing and Community Development (HCD) for review. Following receipt of HCD's comments (60 -90 days), staff will determine how best to incorporate any requested changes and then bring the Element back to the Planning Commission and City Council for formal review and adoption. The Element will then go back to HCD for certification. At their hearing on June 19, 2008, the Planning Commission directed staff to revise Housing Program 3.1.2, make changes requested by CAA Planning and provide responses to comment letters submitted by the Kennedy Commission and the Public Law Center. Revisions to the May 2008 draft resulting from Planning Commission direction, public comments, and staff action have been incorporated into the August 2008 draft (Attachment 6) and are shown in underline /strikeout. Draft Housing Element August 12, 2008 Page 2 INTRODUCTION In accordance with state law, the draft Housing Element has been prepared for the 2008 -2014 planning period. Typically, each planning period is 5 years; however, HCD extended the period due to state budgetary constraints. Status of Current (2000 -2008) Housing Element Following the adoption of the comprehensive General Plan update and subsequent voter approval of Measure V, staff submitted the updated Housing Element to HCD for review. Since the Element was adopted by the City Council and not certified by HCD, the status became "out of compliance ". HCD responded with a request that additional information be included. Their request included: further detailed discussions about approved, pending and other potential housing projects necessary to clearly demonstrate that the identified areas were suitable locations for housing development; a detailed discussion of Measure V and Charter section 423 and their effect on future housing projects; a discussion of how the Interim Development Review process works for projects with zoning that is inconsistent with General Plan land use designations; and a very detailed parcel specific Housing Site Location table (Appendix 1-15) necessary to comply with a recent legislative change. Staff responded with a revised element and HCD responded with an additional letter (September 2007) requesting more clarification on a few items. With the release of the RHNA allocation in summer of 2007 and the requirement that an updated element for the 2008 -2014 planning period be prepared, staff concluded and the General Plan /LCP Implementation Committee concurred that resources should be concentrated on the update rather than pursuing certification of an element that would soon be superseded. Since the City's Housing Element was updated as part of the comprehensive General Plan update in 2006 staff had a solid template to work with. The areas of focus while drafting the update were: • Updates to the narrative and statistical sections • The 2006 -2014 Regional Housing Needs Assessment (RHNA) • Goals, policies and programs • Consistency with other land use and regulatory documents. • Public outreach Narrative and Statistics The narrative and statistical sections (pages 1 -84) are generally self explanatory. Information related to demographics, housing stock, affordability, special needs population groups, development constraints, and an inventory of Land Suitable for Draft Housing Element August 12, 2008 Page 3 Residential Development are included to provide the basis for the goals, polices and programs. The primary differences between this draft and the existing element are the updates to demographic and other statistics, the expanded discussions requested by HCD during their review of the adopted element, and a more in -depth discussion of the special needs of the homeless as required by SB2. Regional Housing Needs Assessment (RHNA) One of the fundamental aspects of the Housing Element is that it must address the City's RHNA and demonstrate where this additional housing may be located. Therefore, a detailed inventory and analysis is included in the draft (pages 42 -67). This analysis shows that Newport Beach does have sufficient sites to provide for the City's share of regional housing need in this planning period. Since the inventory is consistent with the Land Use Element, the identified sites would not be subject to a vote pursuant to Charter Section 423. 389 319 1 359 702_ 1,769 —22% 18% - i 20% 40% 100% -- Airport Area Balboa Peninsula Corona del Mar Mariners Mile Newport Center West Newport Mesa Total Goals. Policies and Programs 2,200 units 500 -700 units (approx.) 8 units 300 units (approx.) 450 units 100 units (approx.) 3,557 -3,758 Policies and programs designed to help ensure a variety of housing types will be constructed and that housing affordable to all income levels will be preserved and constructed are included under Goals 2, 3 and 4. The goals, polices, and programs (pages 100 -111) are the foundation of the Housing Element. The goals provide the end result sought by the City; the polices provide general guiding language to assist in decision making and describe the general course Draft Housing Element August 12, 2008 Page 4 of action that will be taken to achieve the goal; the programs are specific activities that will be undertaken that are necessary to implement a policy and make the goal a reality. Table H42 on page 5 -89 of the draft provides an overview of the accomplishments associated with each program and whether the program remains appropriate to retain. Since the Element received exhaustive review in 2006, only a few necessary changes were identified. The changes are a result of the need to provide additional actions necessary to achieve the stated goals and indicate to HCD the specific tasks that will be undertaken. The following table includes notable changes. Notable Housing Program Revisions and Additions Require a proportion of affordable housing in new residential developments or levy an in -lieu fee. The City's goal over the five -year planning period is for an average of 15 percent of all new housing units to be affordable to very low—, low -, and moderate - income households. The City shall either (a) require the payment of an in -lieu fee, or (b) require the preparation of an Affordable Housing Implementation Plan (AHIP) that specifies how the development will meet the City's affordable housing goal, depending on the following criteria for project size: 1. Projects of 50 or fewer units shall have the option of preparing an AHIP or paying the in -lieu fee. 2. Projects where more than 50 units are proposed shall be required to prepare an AHIP. City of Newport Beach is in the process of developing an Affordable Housing Ordinance to implement the Inclusionary Requirements described above. The City has retained a consultant to determine the appropriate levels of in- lieu fees and to review the existing inclusionary requirements. It is anticipated that the Ordinance will be adopted in the summer of 2008. Implementation of this program will occur in conjunction with City approval of any residential discretionary permits or Tentative Tract Maps. To insure compliance with the 15 percent affordability requirements, the City will include conditions in the approval of discretionary permits and Tentative Tract Maps to require ongoing monitoring of those Draft Housing Element August 12, 2008 Page 5 Housing Program 2.2.2 (New) Periodically review the City's Inclusionary Housing Old 2.2.2 is now. 2.2.4 Requirements to ensure that the City's in lieu fee is adequate to support the development of affordable projects. Housing Program 2.2.3 (New) Develop a brochure of incentives offered by the Old 2.2.3 is now 2.2.5 City for the development of affordable housing including fee waivers, expedited processing, Inclusionary Housing requirements, and density bonuses and other incentives. Provide a copy of this brochure at the Planning Counter, the website and also provide a copy to potential developers. Develop the brochure by the end of 2008. Housing Program 2.2.11 (New) The City will adopt a Density Bonus Ordinance to be reflective of changes that have occurred to State Law (Government Code Section: 65915- 65918. This will be accomplished as part of the City's comprehensive Zoning Code update to be completed in the summer of 2008. Housing Program 5.1.6 (New) As part of the City's comprehensive revision to the Zoning Ordinance in 2008, the City will comply with the provisions of SB 2. Specifically, the City will identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use permit or other discretionary permit. Housing Program 5.1.7 (New) Encourage the development of day care centers and community parks as a component of new affordable housing constructed as part of the requirements of the City's Inclusionary Housing Ordinance. Housing Element Consistency with Other Policy and Reaulatory Documents General Plan All elements of the General Plan are written to be consistent and complementary. All housing opportunity sites identified in the inventory (pages 38 -67) and Appendix 4 are consistent with the Land Use Element. Coastal Land Use Plan Several areas included in the inventory are not consistent with the Coastal Land Use Plan. These include the bay fronting and inland mixed -use properties along Mariners Mile, mixed -use and residential in Lido Marina Village and some mixed -use portions of both Balboa Village and Cannery Village. Staff continues to work closely with Coastal Commission staff on the LCP amendments with the goal of getting all amendments approved this year. Should the Coastal Commission reject some or all of the proposed amendments to the CLUP, the Housing Element would have to be amended to remove those areas from the Draft Housing Element August 12, 2008 Page 6 Inventory of Land Suitable for Residential Development and revise other portions accordingly. Zoning Code Staff continues to work on the Zoning Code rewrite which includes several new zoning districts that are needed to implement the various General Plan and CLUP land use designations. Staff expects to have a public review draft of the code to the General Plan /Local Coastal Program Implementation Committee this fall. The draft will include use and development regulations consistent with the Land Use Element, Housing Element and Coastal Land Use Plan. Planned Community Districts Three planned community districts contain a major portion of potential housing sites. The recent adoption of the North Newport Center Planned Community created zoning and general plan consistency for a large portion of Newport Center. The new planned community allows up to 430 dwelling units. Koll Center Newport and Newport Place in the Airport Area are the other PC zoned districts that will require amendments to become consistent with the General Plan. Both Koll and Conexant have submitted development plan applications that propose residential and mixed -use development regulations. Both applications will be reviewed for consistency with all General Plan policies. Public Outreach On March 315t, staff held two public workshops. The afternoon session focused on those issues pertinent to developers while the evening session provided information of interest to residents and service providers. Staff received valuable input at both sessions and found the perspectives presented by developers, service providers, low - income advocates, and residents valuable. An additional public workshop was held on June 11th. The staff presentation focused on the goals, polices and programs contained in the draft. Topics of public input included compliance with SB2 (Fair Share Zoning Bill) and the count of the homeless population, use of the Affordable Housing In -Lieu Fund, the preservation of "at risk" affordable units and the housing inventory sites. Public outreach that cannot be overlooked is what occurred over four years during the comprehensive General Plan update. The identification of the sub -areas and locations for housing, beyond what was allowed in the previous General Plan as well as policies and programs to provide affordable housing, were the subjects of many public workshops, General Plan Advisory Committee meetings and Planning Commission and Draft Housing Element August 12, 2008 Page 7 City Council hearings. The plan adopted by the City Council and approved by a vote of the public (Measure V) is consistent with the inventory in the draft Housing Element. Planning Commission Hearing — July 12, 2008 At its hearing, the Planning Commission directed staff to revise Housing Program 3.1.2, make changes requested submitted by Culbertson, Adams Associates and provide written responses to the comment letter submitted by the Kennedy Commission and Public Law Center to the City Council. Housing Program 3.1.2 This program addresses state density bonus law. The program was slightly revised to clarify that the City will adopt a density bonus ordinance and/or provide incentives consistent with state law. The new language is as follows: Housing Program 3.1.2 When a residential developer agrees to construct housing for persons and families of very low, low, and moderate income above mandated requirements, the City shall grant a density bonus as required by state law and/or provide additional incentives of equivalent financial value. (Imp 2.1) Public Comments CAA Planning Their comment letter includes requested clarification of the terms of the North Newport Center Planned Community Affordable Housing Implementation Plan (AHIP). Those changes can be found beginning on pages 5 -18 and 5 -51. Their letter is included as Attachment A. Kennedy Commission and Public Law Center Both organizations provided comment letters addressing several issues in the draft. At their June hearing, the Planning Commission directed staff to evaluate the comments and provide the City Council with responses. Both letters and the responses are included as Attachments 3A and 5. As a result of these comments, staff revised the Element to include a more in -depth discussion on homelessness to comply with the requirements of SB2 (Page 5 -36) and a historical background of inclusionary housing production and in -lieu fee collection. (Page 5 -87) Draft Housing Element August 12, 2008 Page 8 Environmental Review This hearing is informational only and no action is to be taken at this time. Prior to formal adoption, CEQA documents will be prepared and required hearings held. Public Notice A 1/8t" page display add appeared in the Daily Pilot advertising this hearing. Additionally, those person on the Housing Interest List were notified by e-mail and US mail. Prepared by: 144'0e�& '9 i�Fe4gg RgArez, Senior Planndr Attachments: Submitted by: Sharon Z. Wood, istant City Manager I. Comment letter received from Orange County Housing Providers — Includes letter to BIA from HCD 2. Comment Letter Received from CAA Planning 3. Comment Letter received from The Kennedy Commission 4. Comment Letter received form Public Law Center 5. Responses to Kennedy Commission and Public Law Center letters 6. Draft Housing Element Attachment No. 1 zi COALITION MEMBERS BIA/OC Building. Industry Association, Orange County MHET Manufactured Housing Educational Trust NAIOP National. Association of Industrial and Office Properties OCAR Orange County Association of Realtors° SCAA South Coast Apartment Association 25241 Pasco de Alicia Suite 120 Laguna Hills, CA 92653 Phone: (949) 380 -3313 Fax: (949) 380-3310 Website: www.ochp.org 5/712008 Gregg Ramirez Senior Planner City of Newport Beach 3300 Newport Blvd., PO Box 1768 Newport Beach, CA 92663 Dear Senior Planner Gregg Ramirez, aFCENEa By pLANl41W6 Df.PARTRyfi i)- MAY CV Ur 8MCP I am writing on behalf of the membership of the Orange County Housing Providers (OCHP) regardin€ your city's housing element update. State law mandates that all cities in California periodically update their housing elements. The intent of the mandate to update this critical planning document is t( identify adequate sites throughout a jurisdiction for the future production of housing. Occasionall) cities choose to include various land use policies as a part of their housing element. We strong[] urge your city to avoid adding inclusionary zoning policies in your housnni element as it may be cause for failure to obtaiiii- certification. According to a letter dated December 13, 2007 addressed to the Building Industry Association of Southern California, Orange County Chapter (BIA/OC) by the State Housing Director, Lynn Jacobs: "Local governments must analyze mandatory inclusionary policies as potential governmental constraints on housing production when adopting or updating their housing elements. " - (Letter attached) Based on this opinion, adopting a draft housing element that contains inclusionary zonin€ policies will jeopardize your city's ability to obtain state certification. This critical policy section on constraints is referenced in the housing element checklist under: ov rnm ntal one rains -= 655Ma)(4)) and Os andAs. capes 30-34) Since inclusionary housing policies are of least interest to the California Housing and Community Development Department as they consider whether or not to certify a housing element, they should N of least interest to your City Council. We urge the Council to focus on appropriate planning ant zoning as a means to fulfill your city's housing goals. Overreaching inclusionary housing policies art incredibly controversial and have the potential to generate significant opposition. In closing, we again urge the Council to avoid the inclusionary, zoning policies while updating yow housing element. Failure to do so may force challenges to the entire housing element. The unintendet consequences that surround inclusionary zoning constitute a need to consider this policy separate am apart from critical planning documents such as your city's housing element. Please feel free to contact us to discuss this critical issue. Sincerely, Orange County Housing Providers Bryan Starr, Building Industry Association/Orange County Vickie Talley, Manufactured Housing Educational Trust National Association of Industrial and Office Properties, SoCal Chapter David Stefanides, Orange County Association of REALTORS Judy Legan, South Coast Apartment Association CC: Mayor Councilmembers City Manager �V �o all r i a n Do ir at, d re P a „:. d; «.. n r`., STATE OF CAI IFORNIA.RL ISINFSS TRANSPORTATION A n HOI ISINC ACFNCY ARNOI n CCUWpR]FNFCf FR C r DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT OFFICE OF THE DIRECTOR 1800 Third Shoat, P=M. 450 is Sacraments, o, c5 95811 Fox (445 77 Fax (916) 3245707 w ,hcd.ea.aw December 13, 2007 Ms. Kristine E. Thalman Chief Executive Officer Building Industry Association of Orange County 17744 Sky Park Circle, Suite 170 Irvine, CA 92614 Dear Ms. Thalman: Thank you for your recent inquiry regarding inclusionary zoning ordinances. The Department is pleased to provide information on the requirements of State law and Department policy. In particular, you requested clarification on whether State housing element or other law requires the adoption of local inclusionary ordinances. In short, neither State law nor Department policy requires the adoption of any local inclusionary ordinance in order to secure approval of a jurisdiction's housing element. State law does require incentives for voluntary inclusionary development (State density bonus law), pronounces housing element law neutral relative to enactment of mandatory local inclusionary provisions, and circumscribes the responsibilities of local governments which do enact inclusionary policies. The relevant sections of the Government Code are described below. Government Code Section 65915 -17, State density bonus law, requires local governments to make incentives available to residential developers that voluntarily propose to reserve specified portions of a proposed development for occupancy by low - or moderate - income households, and indicates that local governments are not to undermine implementation of this provision. Every local government is required to adopt an ordinance establishing how it will implement State density bonus law, including setting forth the incentives the local government will provide. State housing element law requires jurisdictions to plan for their existing and projected housing needs, identify adequate sites to accommodate their share of the regional housing need, and, among other things, analyze local policies, regulations or requirements that have the potential to constrain the development, maintenance or improvement of housing for all income level. The law also requires programs to "assist in the development of adequate housing to meet the needs of low- and moderate - income households ". ,1 Ms. Kristine E. Thalman Page 2 Many local governments adopt mandatory inclusionary programs as one component of a comprehensive affordable housing strategy and have demonstrated success in increasing the supply of housing affordable to low- and moderate - income households. However, some inclusionary programs may have the potential to negatively impact the overall development of housing. As a result, local governments must analyze mandatory inclusionary policies as potential governmental constraints on housing production when adopting or updating their housing elements, in the same way that other land -use regulations must be evaluated as potential constraints. For example, local governments must analyze whether inclusionary programs result in cost shifting where the cost of subsidizing the affordable units is underwritten by the purchasers of market -rate units in the form of higher prices. Such increases can be a barrier to some potential homebuyers who already struggle to qualify for a mortgage, and earn too much to qualify for government assistance. Local governments must also analyze their inclusionary policies to evaluate whether sufficient regulatory and financial incentives are offered to facilitate compliance with the requirements. In addition, it is important to note that the adoption of mandatory inclusionary zoning programs do not address housing element adequate sites requirements to accommodate the regional housing need for lower- income households. Inclusionary programs are not a substitute for designating sufficient sites with appropriate zoning, densities and development standards as required by Government Code Section 65583(c)(1). Finally, Government Code Section 65589.8 specifies that nothing in housing element law shall be construed to expand or contract the authority of a local government to adopt an ordinance, charter amendment, or policy requiring that any housing development contain a fixed percentage of affordable housing units. It further states that a local government which adopts such a requirement shall permit a developer to satisfy all or a portion of that requirement by constructing rental housing at affordable monthly rents, as determined by the local government. California has been for many years in the midst of a severe housing crisis; there are simply not enough homes for the number of residents who need them. Continued undersupply of housing threatens the State's economic recovery, its environment, and the quality of life for all residents. Effectively addressing this crisis demands the involvement and cooperation of all levels of government and the private sector. Both the public and private sector must reexamine existing policies, programs and develop new strategies to ensure they operate most effectively and provide an adequate housing supply for all Californians. The Department is committed to working with its public and Private sector partners in this effort for the benefit of California's growing population. )z Z 1 Z abed Ms. Kristine E. Thalman Page 3 I hope this responds to your inquiry. If you need additional information, please call me at (916) 445 -4775 or Cathy Creswell, Deputy Director, Division of Housing Policy Development, at (916) 323 -3177. Sincerely, * )Z�-- Lynn L. Jacobs Director �3 Attachment No. 2 lit CAA PLANNING June 12, 2008 Mr. Gregg Ramirez Senior Planner City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Subject: Draft Housing Element Comments Dear Mr. Ramirez: maw BY p1AW NG DEPARTMENT JUN 13 200a CITY OF NEWPORT WE" CAA Planning has reviewed the Draft Housing Element and would like to make the following comments. The references to the North Newport Center PC Development Plan contain several errors. In addition, the proposed plan to meet the requirements for provision of affordable housing units was characterized incorrectly. As approved by the City Council in December 2007, provision will be made for 43 to 86 affordable housing units in the Bays Apartment complex. The approval included, in part, the requirement that the units would not be clustered in one building. Therefore, construction of 14 affordable units at the San Joaquin/San Miguel site cannot be accomplished. We have added suggested language in the attached sections of the Draft for your consideration. In addition to the corrections related to North Newport Center, we include several comments where omissions, grammatical errors and unclear statements occur. We appreciate the opportunity to provide this input. Sincerely, CAA PLANNING /J Kathleen M. Crum Associate Planner Attachment: Edited pages from Draft Housing Element c: Mr. Dan Miller, The Irvine Company R5 Argonaut, Suite 220, .Aliso Viejo, California 926564105 • (949) 581 -2888 • Fax (949) 581 -3599 1,5 PLANNING DEPARTMENT JUN 13 2008 Housing dement �I I T OF NEWPORT BCI'lliH of in -lieu fee funds. The Task Force and staff continually investigate and research potential new affordable housing opportunities. CONSTRAINTS AND OPPORTUNITIES The City is constrained in its effort to provide new housing opportunities due to many factors beyond its control. A common resource m many communities, the City does not have a Redevelopment Agency, which in turn means that Newport Beach does not have the resource of housing set -aside funds, nor the power to assemble property through eminent domain. However, this General Plan N4GSkn1G update provides several opportunities to create new residential uses through infill development and tNf reuse of existing land uses. FOCUS OF HOUSING PROGRAMS Following are the housing program's that Newport Beach believes will be the, most effective in meeting the City's housing goals. These programs will be the focus of the. City's housing efforts during the period of this Housing Element. I. Actively promote the development of affordable housing on the above- mentioned sites and assist developers with the removal of site constraints. 2. Continue to implement the City's Inclusionary Housing Program that requires an average of fifteen percent of new residential units to be affordable to very low —, low -, and moderate - income households. 3. Research sites and developments that could include affordable housing, such as infill, mixed -use and redevelopment opportunities. 4. Discuss the extension of affordability covenants with owners of existing affordable apkartments. 5. Offer incentives to developers of affordable housing, including density bonuses, fe� waivers, expedited permit processing, and the use of in-lieu fee fund. 6. Continue to support housing and special needs services providers through the use of CDBG and General Funds. TIME PERIOD COVERED BY THE HOUSING ELEMENT The Housing Element covers the RHNA allocation period of January 1, 2006, through June 30, 2014 (extended from June 30, 2005, by the State Department of Housing and Community Development). Introduction - - The City has recently completed a comprehensive General Plan update that was adopted by the City Council on July 25, 2006. In November of 2006, the General Plan was placed on the electoral ballot and approved by the, voters. The California Government Code specifies the Legislature's intent to ensure that counties and cities are active participants in attaining the state housing goal and establishes specific components to be MNewport Beach General Plan lb Housing Element contained in a housing element. These components include the following identification and analysis of existing and projected housing needs, resources and constraints; a statement of goals, policies, quantified objectives, and scheduled programs for preservation, improvement and development of housing, identification of adequate sites for housing; and adequate provision for existing and projected needs of all economic segments of the community. The Newport Beach Housing Element has been written in a consistent and mutually dependent relationship with other Elements of its General Plan. Furthermore, the Element is in conformance with Government Code Sections 65580 - 65589. The updated Housing Element is a comprehensive statement of the City's housing policies and serves as a specific guide for implementation of these policies_ The Element examines current housing needs, estimates future housing needs, and establishes goals, policies, and programs pertaining to those needs. Housing programs are responsive to current •and future needs. They are also established within the context of available community, state, and federal economic and social resources, and realistic quantified housing objectives. State housing goals are as follows: i Availability of housing is of vital statewide importance. Early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. A Early attainment of this goal requires cooperative participation of government with the private sector to e:cTand housing opportunities and accommodate housing needs of Californians of all economic levels. a Provision of housing affordable to low- and moderate - income households requires cooperation among all levels of government. Local and state governments have a responsibility to use powers vested in them to facilitate improvement and development of housing to make adequate provision for housing needs of all economic segments of the community. y. The Legislature recognizes in carrying out this responsibility, each local government also has a responsibility to consider economic, environmental, and fiscal factors, and community goals set forth in its general plan. Cities must cooperate with other local governments and the state in addressing regional housing needs. % California state law requires that Hous g Elements be updated at least every five years. The City of Newport Beach has prepared this 20q 2014 !-lousing Element in compliance with the established (extended) 2008 deadline for jurisdictions within the Southern California Association of Governments region. The Housing Element covers the RHNA allocation period of January 1, 2006 through June 30, 2014, time period. DATA SOURCES Various sources of information have been consulted in preparing this Housing Element. The 2000 Census provides the basis for population and household characteristics. Where applicable, the following sources of information have been used to supplement and update information contained in the 1990 and 2000 Census: or Population and demographic data from the State Department of Finance, 2007 ■ U.S. Census American Community Survey, 2006. Newport Beach General Plan k-) Housing Element Vacancy Rates A vacancy rate is often a good indicator of how effectively for -sale and rental units are meeting the current demand for housing in a community. Vacancy rates of 5 to 6 percent for rental housing and 1 to 2 percent for ownership housing are generally considered optimum, where there is balance between the demand and supply for housing. A higher vacancy rate may indicate an excess supply of units and therefore price depreciation, while a low vacancy rate may indicate a shortage of units and resulting escalation of housing prices. The overall housing unit vacancy rate of the City of Newport Beach has varied between 1980 and 2000, as fluctuations have occurred in the housing market. The last available data for all vacant units categorized by the type of housing stock is from the 2000 Census. It indicated that the vacancy rate for rental units was 3 percent versus 1 percent for ownership housing (fable H9). According to State Department of Finance estimates the overall vacancy rate in the community has decreased to 10.9 in 2007. A of Year Yaconclesas,69 Voe66dj?$foisSJe'asd' ofalfhousfq stock . %bfaNfiousfn stockofollhouslh V66 6nclesfortentasd sfoe'k 1980 10.1% f l 3.8% 6.1% 1990 11.5% 0.8% 4.3% 2000 11.3% 0.9°10 3.4% 2007 10.9% n.a na SOURCES: U.S. Census 1860.1990, 2000; Orange County Progress Report 2000; Stale Oepahnentof Rnanm 2007, Estimate The discrepancy between overall vacancy rates and vacancy rates among available units may be due to the large number of seasonal units and second homes in Newport Beach. According to the 2000 U.S. Census, 1,994 of 4,217 vacant units were identified as "seasonal use." To assist in administration of its condominium conversion ordinance, the City has conducted rental vacancy surveys since 1979. Ibis survey includes only apartment vacancies; not other homes that may be used as rentals. Results of the most recent surveys and the 2000 Census are provided on Table H10. As shown in 2006, the vacancy rate for apartment units was 4.45 percent. Ta61e;H1 D Citji Rental Apurfineni Ugcancy`Gampmrson. TOTAL i 4.8% l 4.6% E 2.7% ! 4.3% 1 8% 1 4.4% 1 8.0% 16.2% 14.84% 14.45% SOURCES Cityof Newpeftach Pbntay Oep tnen12008; 2000 U.S. Census Housing Condition There has not been a comprehensive survey of housing conditions in Newport Beach since the 1976 Special Census for Newport Beach. That survey indicated only 1.3 percent of all housing units were deficient. Three neighborhoods in the city contained concentrations of substandard housing. Of all housing units on Balboa Peninsula, 5.1 percent were in substandard condition, while 2.5 percent and Newport Beach General Plan E Housing Element 2.6 percent of all units on Balboa Island and in Newport Heights, respectively, were in substandard condition. Deficient units in this regard are defined as deteriorated, dilapidated units, as well as those units inadequate in original construction, or which were under extensive repair. The lack of complete plumbing, kitchen, or heating facilities serves as a narrow indicator of substandard housing conditions. Only a small number of homes in Newport lacked these basic utilities in 2000. The 2000 Census reported that 125 units had incomplete plumbing, 235 units were without a complete kitchen, and 135 units had no heating facilities. However, it is the consensus of City staff that the condition of housing in Newport Beach is considered to be very good. During 2007, through its ongoing code enforcement program, the City Building Department has not identified any properties in need of repair. Extremely high property values and the lack of code enforcement cases indicate that property owners within Newport Beach are, for the most part, conscientious about maintaining their properties. Substandard housing does not appear to be a problem for the community at this point in time. Illege,l DW611iiig Units Illegal or "bootleg' dwelling units have historically been a problem in Newport Beach, experienced most often in the older, beach - oriented areas of West Newport, Balboa Peninsula, Balboa Island, and Corona del Mar. These units are found in two typical forms: the "splitting" of a single dwelling unit into two separate occupancies, and the conversion of garages to living space. These units usually have a higher number of health and safety code violations than legal units, due to conversion without proper building permits and inspections. Illegal units continue to be a problem today, but are less prevalent than in the past, due to increased year round owner occupancy in these areas, and inspections which occur when properties are sold. We it is difficult to estimate the number of illegal units, code enforcement personn . ate that ? as much as Lp=cea4-< the City's housing stock may be in the form of illegal units While not to be safe and adequate housin- 0 these units do provide living arrangements that tend to be more affordable i1�ah egal units. Mobile Homes As described later, mobile homes generally provide more affordable housing opportunities for residents. There are presently 972 mobile home spaces in ten mobile home parks in Newport Beach. Many of these units are occupied by permanent residents and some are used by households that use the unit for vacations or weekend visits to the area. The character of the City's ten mobile home parks varies. 'Three of the parks are located on or close to Newport Harbor. These three parks appeal to retirees and a substantial number of spaces in these parks are occupied by permanent residents. It should be noted that mobile homes in Cannery Village and some in West Newport have been replaced with manufactured housing that is not affordable to low -income and moderate -income individuals and families. The state HCD is respopsible for issuing permits for mobile home parks. The City of Newport Beach has notified the state that mobile home units affordable to low- and /or moderate- income households have been converted, or are in the process of converting to, market rate status and thereby may lose their affordable status. To date, the state has taken no action regarding this continuing loss of affordable housing. Newport Beach General Plan R Housing Element It should be noted that one mobile home park, the Beach and Bay Mobile Home Park at 7204 W: Coast Highway, appears to be in substantial physical decline and could be subject to redevelopment or replacement within this planning period. SOURCE: The gyof Negod Beach Planning Deparknent 2007 Approved rordosure. Both the Marina Mobile Home Park and the Seacliff Mobile Home Park were approved for closure in 2006. The Marina Park mobile home park has been owned and operated by the City of Newport Beach since 1919. The park presently accommodates 57 mobile homes: 25 used as second homes, 31 permanent residences and 1 that is vacant. Beginning in 1985, the City agreed to enter into long term leases that provided for reduced rents that were below fair market value. In exchange, the Lessees agreed to deliver possession of the premises. In 2006, the City elected to consider closing the Park and changing the use to an interim open space condition. The Seacliff Mobile Home Park is a privately owned 117 unit Park near the West Newport Industrial Area. The park owner owns all but 14 of the 117 mobile units. The remaining 103 are rented out on month- to -month tenancies. In 2006, owner decided to temvnate the mobile home park space tenancies a par f the park closure. P`� Pursuant to alifornia law, a Closure Impact Report was prepared for both parks that assessed the impact of the park's closure on tenants. The Report provided numerous options to tenants for relocation assistance, including payment of reasonable costs to relocate the mobile homes, payment to purchase the homes, and payment of relocation expenses. Newport Beach General Plan 20 Mobile Homes Paik fSNe Addres7 Tofat#Ofs aces Bof Acres - 46fsoci6 Acre BaysideVillaga 300 East Coast Highway 343 24.68 .,.._I 1391 Beach and Bay 7204 W. Coast Highway 47 1.41 3333 Cannery Village 700 Lldo Park Drive (replaced with manufactured tomes) 34 1.40 2429 Ebb Tide 1560 Placenta Avenue 77 4.18 1 1 0.31 18.51 Flamingo r. ` t r r 7000 W. Coast Highway 20 8 Harbor 1535 Superior Avenue 40 1.92 20.83 Lida 710 Lilo Park Drive 214 12AO 1726 Madna Park' 1770 W. Balboa Blvd. 57 4.94 4.27 I 11.74 13.11 Newport Terrace 824 W. 624 W. 15th St. 56 Seadiffe Mobile Park' — — — 890 West 15% Street 117 811 12 8 Total (10 Parks) 972 j SOURCE: The gyof Negod Beach Planning Deparknent 2007 Approved rordosure. Both the Marina Mobile Home Park and the Seacliff Mobile Home Park were approved for closure in 2006. The Marina Park mobile home park has been owned and operated by the City of Newport Beach since 1919. The park presently accommodates 57 mobile homes: 25 used as second homes, 31 permanent residences and 1 that is vacant. Beginning in 1985, the City agreed to enter into long term leases that provided for reduced rents that were below fair market value. In exchange, the Lessees agreed to deliver possession of the premises. In 2006, the City elected to consider closing the Park and changing the use to an interim open space condition. The Seacliff Mobile Home Park is a privately owned 117 unit Park near the West Newport Industrial Area. The park owner owns all but 14 of the 117 mobile units. The remaining 103 are rented out on month- to -month tenancies. In 2006, owner decided to temvnate the mobile home park space tenancies a par f the park closure. P`� Pursuant to alifornia law, a Closure Impact Report was prepared for both parks that assessed the impact of the park's closure on tenants. The Report provided numerous options to tenants for relocation assistance, including payment of reasonable costs to relocate the mobile homes, payment to purchase the homes, and payment of relocation expenses. Newport Beach General Plan 20 Housina Element Assisted Housing Stock The City has had policies in effect since the mid -1980s requiting the provision of affordable housing in association with all new residential developments where more than 4 units are proposed. Most were provided within new or existing apartment projects. In some cases, an in -lieu fee was assessed. The City also facilitated the teaming of market rate and affordable housing developers to produce required affordable housing. As mentioned earlier, recent projects include the 120 -unit Bayview Landing project (2004) and the 79 -unit Santa Barbara Condominium project that will provide 12 units that will be affordable to low- and moderate- income households (in the pipeline). Affordability requirements for the Santa Barbara Condominium project will be satisfied through the purchase and rehabilitation of a 12 -unit apartment building. Table H12 summarizes the total number of completed affordable units receiving public assistance as well as regulated affordable housing in private development. Over 400 restricted /assisted affordable housing units are located within Newport Beach. Newport Beach has facilitated affordable housing development using a variety of mechanisms (such as in -lieu fee funding, inclusionary housing requirements, CDBG, fee waivers, land grants, and other support). State law requires an analysis of existing assisted rental units that are at risk of conversion to market rate. This includes conversion through termination of a subsidy contract, mortgage prepayment, or expiring use restrictions. The following at -risk analysis covers the period of January 1, 2006 through June 30, 2016. Assisted Housing Stock at Risk According to the Housing and Community Services of Orange County's list of affordable housing projects and the City's at risk project database, two affordable project covenants may expire during the planning period. These projects include Newport Seacrest Apartments located at 843 West 15"L Street. The project was financed with a 30 -year Section 8 loan which is set to expire in 2016. Of the 65 units, 20 are one - bedroom and 45 are two- bedroom units. Contact with the property representative indicates that although the loan is set to expire in 2016, the property owner would be willing to work with the City and negotiate extending the affordability covenants beyond 2016. Since many tenants of this property have Section 8 vouchers provided by the County, it is assumed that many of the tenants are very low — income households. The Baywood apartment complex includes 46 low- income units, all of which are two- bedroom. These units were developed under the City's inclusionary housing requirement and are set to expire in 2011. The Irvine Company (TIC) is the primary land owner /developer in the Newport Center area. aid tae sebrrk, e4-- Planned Community Development Plan to build 430 of the permitted 450 mixed -use gi,So units (within Block 500, 600 and San Joaquin Plazas, The North Newport Center AHIP was approved in December 2007. L wos APP2OD W DaeohlsoD a007. As part of the proposed 430 mixed -use units, the Planned Community Development Plan includes its own Affordable Housing Plan (AHIP) for the project, a required component of the City's existing Affordable Housing Implementation Program requirements. The Irvine Company is required to provide the following number of units of either very low —, low -, or moderate - income housing, or a combination of income categories: MNewport Beach General Plan SUGGESTED INSERT ON PAGES 5 -17 AND 5 -18 To meet the requirement within these income categories, the North Newport Center Planned community AHIP discussed the development of a 0.75 acre site near San Joaquin Hills Road and San Miguel Avenue. The General Plan allows for 10 residential dwelling units on the site. If all units were affordable, a 35% density bonus would be applied, allowing 14 units. However, the AHIP restricts the units at this site to no more than 501/o affordable. The Irvine Company also owns the Bays Apartment complex consisting of three buildings known as Baywood, Bayview and Bayport. In order to meet the AHIP requirements, The Irvine Company would provide affordability covenants for 43 to 86 existing units for a period of at least 30 years. The AHIP stipulates that affordable units shall not be concentrated in any one building in the Bays. Covenants on an existing 46 units in the Baywood complex will expire in 2011. These units are not included in the calculation of affordable housing provision in the North Newport Center Planned Community. 2Z Housing Element TableH12 City of Newpo dable) Earliest 3 Possible Dale of Pro ecf Name/ location Tyne of Assistance Received Chan a Number of UnitslType Domingo Drive Apartments 851 Domingo Drive Section 8 Permanent 25 Very Low Income Newport Harbor Apartments Section 8 538 Placentia Density Bonus 2020 26 Low Income CDBG _ Newport Harbor II Apartments I Section 8 2023 14 Low Income Baywood City Incluslonary Housing 2010 -2011 46 Low Income Requirement Section 8 Newport Seacrest Apartments CDBG 2016 65 Low Income 84315th Street Fee Waivers Tax Credit Financing Pacific Heights Apartments 881.887 W. 15th Street i Section 8 2018 7 Villa Point r 2 Milano Drive Section 8 Permanent 18 Very Low and Low Income ry Newport Seashore Apartments Section 8 849 West 15th Street Fee Waivers 2018 15 Low Income Newport Seaside Apartment Section 8 ; 1544 Placentia CDBG I 2019 25 Very Low Income Fee Waivers Seaview Lutheran Plaza (Seniors) Section 202 2800 Pacific Yew Drive Section 8 Permanent 100 Very Low - Income elderly Villa del Este 401 Seaward Road Section 8 Ownership 2021 2 Moderate Income Villa Siena Section 8 Ownership 2021 3 Low Income 2101 151h Street Density Bonus Ba lew Landln Seniors 1^' 9 (Seniors) in4leu Fee Funds � Financing 2056 24 Very Low and 95 Low 1121 Back Bay Drive TaxFeedt Income SOURCE: City of Newport Beach Planning Department. 2008Ci7y of Newport Beach Consolldeled Plan 2000-2005; Orange County Affordable Housing List 2008 • Very Low: 43 units • Low: 65 units ■ Moderate: 86 units SkE - W669TW irJS02-1— AHIP includes the construction of 14 affordable multi- family units on a 0.75 - art,el� and near the inteof San Joaquin Hills Road and San Mi e. e Irvine Company also owns the Bays, an apartment complex o tee buildings known as Baywood, Bayview, and Bayport. jr To requirements, the Irvine will also /or create affordability covenants for 29 Newport Beach General Plan 23 ousing Element Community AHIP provides an im ortant gppcirtum. arroraa le housing within the Preservation and Replacement Options Currently, availability of funding for Section 8 contract renewal is uncertain. Under the Section 8 contract program, HUD pays owners the difference between what tenants can pay (defined as 30 percent of household income) and HUD's payment standard. Rent subsidies using state, local, or other funding sources can be used to maintain the affordability of the at -risk projects and structured to mirror the Section 8 program. It is assumed that the one - bedroom units are occupied by the one - person household and two - bedroom units are occupied by a four - person household. This analysis assumes that very low— income households earn below 50 percent of the County median. Thus, the average income would be $30,300 for a one person household and $43,300 for a four - person household according to 2007 HUD /HCD income limits. As Table HI shows, given the 111 toots contained in the two housing projects, whose affordability may expire in this planning period, the total anticipated subsidy is $569,784 annually or $47,482 monthly. Table HI 3 Annual Unit size Rent Subsidies j Monthly Rent Subsidy Required i + No of Units At Risk 1 Annual subsidies I Affordable 1 fah Market Studio j $758 $1103 $345 1 0 0 One Bedroom $758 $1,238 $480 20 $115,200 Two Bedrooms $1,082 $1,485 $403 94 $454,584 Three Bedrooms $1,082 $2,125 $1,043 0 -- $0 Total 111 I $569,784 WURGE:Orange County Housing Authority a. when only a portion of a pro0as units are covered by the Section 8 contract, the mix of these at -risk units is estimated based on the entire project's unit mix. b. Affordable rent for a studio and one - bedroom units are based affordability level for 1 very low- income person. Affordable rent for two- bedroom units based on a 4- person very low-income family. c. Fair Market rents based on the June 2007 maximum 'ants (payment standard) set by HUD for different unit sizes in Orange County. This payment standard is determined by the Orange County Housing Authority. Resources for Preservation The types of resources needed for preserving units at -risk fall into three categories: 1. Financial resources available to purchase existing units or develop replacement units 2. Entities with the interest and ability to purchase /manage the units at risk 3. Management programs to provide replacement funding for potential lost subsides The following summarizes financial resources available to the City for preservation of assisted, multi- family rental housing units. Newport Beach General Plan VAq 6ii X CDBG —The City is programmed to receive al years. This program is intended to enhance and CDBG funds are awarded to the City on a forme $200,000 per year in CDBG funds are used to re to provide public facilities improvements pxojec Peninsula neighborhoods. Housina Eleme 6ximately $2,000,000 during the next five eserve the City's affordable housing stock. basis for housing activities. Approximately, a 20 -year Section 108 loan which was used revitalize the low /moderate - income Balboa K In -Lieu Housing Fund- -The City has collected in -lieu fees from various development projects since 1997. The City's remaining balance as of the end of 2007 was approximately $13 million. Because it is a local housing resource, the City has a large degree of flexibility for use of the funds, In -lieu fee funds can be used for land write- downs, construction, rehabilitation, and acquisition of properties. ar Section 202 — Provides grant to non -profit developers for supportive housing for elderly. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance. 10 California housing Finance Agency (CHFA) Multiple Rental Housing Programs —This state program provides below market rate financing to builders and developers of multiple - family and elderly rental housing. Tax exempt bonds provide below market mortgage money. Eligible activities include new construction, rehabilitation, and acquisition of properties with 20 to 150 units. x Low Income Housing Tax Credit (LIHTC) —This state program provides tax credits to individuals and corporations that invest in low- income rental housing. Tax credits ate sold to corporations and people with high tax liability and proceeds are used to create housing. Eligible activities include new construction, rehabilitation, and acquisition. e California Community Reinvestment Corporation (CCRC)- -This private, non -profit mortgage banking consortium provides long -term debt financing for affordable multi- family rental housing. Eligible activities include new construction, rehabilitation, and acquisition. Adniinb,s.trative Resources An alternative to providing subsides to private for -profit owners to maintain units as low- income housing is for public or nonprofit agencies to acquire or construct housing units to replace "at risk" units lost to conversion. The City can explore prioritizing tenants that have lost their unit or rent subsidy in these at -risk buildings for inclusion in new projects funding by the City. The following nonprofit housing development corporations are active in developing affordable housing in Newport Beach and Orange County: • Related Com*anies of California has developed and preserved over 6,000 units of housing in California. Related Companies of California recently constructed the affordable Bayview Landing project in 2004. In addition to construction, Related Companies of California is also experienced with the preservation and management of at -risk properties. • Jamboree Housing is an active non -profit housing development that constructs and preserves affordable senior, family, and special needs housing throughout southern California. Jamboree also provides on -site social services with many of its affordable and special needs projects. Jamboree Housing has recently developments projects in the cities of Irvine and Laguna Beach. • National Community Renaismore (National CORE) includes National Community Renaissance of California (formerly So Cal Housing), National Housing Development Corporation (formerly NHDC), and Hope Through Housing Foundation. Together, the combined nonprofit entity Newport Beach General Plan Z,S sing Element now operates over affordable 9,500 apartments in the United States. Programs include construction, acquisition, rehabilitation, job education and training, adult education and literacy, senior services, and after - school youth programs. • Olron Company —a local, for -profit development, the Olson Company is an experience multi- family and mixed -use housing development that has included affordable housing as a component of many projects. Recent affordable projects have occurred in the cities of Brea and Fullerton. • The Inine Company —one of the largest land developers on Orange Counry,,Ke Irvine Company owns and manages over ninety apartment projects located throughout Orange County, Los Angeles, San Diego, and Silicon Valley. Affordable rental units are located at approximately thirty of these projects including inclusionary housing units, 1 -IUD- Funded Programs, and Section 8 units. The Irvine Company owns several apartment complexes within Newport Beach. POPULATION AND HOUSING PROJECTIONS According to the US Census, the population of Newport Beach in 2000 was 70,032 residents, excluding the Newport Coast area. Updated information from the State Department of Finance estimates the population in 2007 to be 84,218. Pursuant to the updated General Plan, ultimate residential capacity within the City of Newport Beach will be 49,968 dwelling units, including the Newport Coast area. Future residential growth will largely occur through infill development and reuse of existing and obsolete land uses. As discussed in greater detail later in the document, the key sites for future growth include the Airport Area, Newport Center, Banning Ranch, West Newport Mesa, and the Balboa Peninsula area According to the California State Fullerton Center for Demographic Research projections, the population of Newport Beach is anticipated to grow steadily over the next several years, increasing to 91,321 residents by 2015. Table H14 and Table H15 were created to demonstrate housing and population trends based on past State Department of Fiance estimates. These estimates are supplemented with housing unit and population projections based on estimates of actual construction. Estimates are for 2000 to 2007. .. - •.. _Ysnr .tolal Populaffon.l . . :f Ir kousefdId POPubilon Grouti Qvcrden 1980` 1 65,283 64,972 311 19W 66,817 66,284 j 533 1990 { 66,643 ! 65,941 f 702 1995 _ j 68,920 f 68,199 721 2000 75,627 74,906 �_ 721 2005 j 83,120 82,180 I 940 82,563 j 940 2006 83,503 2007 84,218 j 83,278 940 SOURCES: state Oeparpnentof Finance 2OD7, Populallon Research Uns '1992 Fbuslag Elemeart Clly of Newport Beach. ° 14ewport Beach General Plan Housing Element rofgf # of Year Units. Mobile accupfed Hoines Units Percertf Pop � .V6660 I Househ/ old Dwelilri unit single Family 2-4: , 5+ 1980' 31,016 17,490 7,149 5,836 5,355 5,637 5,743 5,475 5,520 5.762 615 28,282 8.81% 2.297 1985' 32,843 19,078 7,052 877 29.605 9." 2.239 1990 34.861 20,767 7,792 947 947 30,860 11.48% 2.252 1995 35,598 20,776 8,238 31.512 11.48% 2.194 2000 37,567 21.747 `26,804 9,130 947 33,255 11.48% 2.252 2005. 42,143 _I 9.721 863 37,545 10.91% � 2.99 2007 ` 42,580 26,352 9,845 883 1 37,934 10.91% 2.99 SOURCES state 0epait wtof Finanee2007,Popukdon Research Unk `1982 Haunng Element, Cllyof Newport Beach POPULATION TRENDS The city's rate of population growth exceeded the County rate of population growth through 1950. However, since 1950 the City's proportionate gain in population has been substandally less than that of the County. Annexations of the West Newport Triangle in 1980, a portion of Santa Ana Heights in 1987, and construction of large housing developments helped to increase City population 6.5 percent between 1980 and 1990. Construction of housing developments contributed to an increase of City ulation of 15.2 percent between 1990 and 2000. Population increases after 2000 were generally ,j0 due intensification of land uses and annexation of the Newport Coast and Santa Ana Heights areas. Past and future populations of both Orange County and Newport Beach are presented below. Newport Beach population will continue to constitute a decreasing percentage of the County population. The County population is projected to increase by 8.2 percent between 2010 and 2025. The City of Newport Beach population is projected to increase by a slightly slower rate of 8.0 percent during the same time period. The 2000 Census estimates the vacancy rate to be 3.5 percent for Orange County in 2000. Of these vacant units, approximately 1 percent is used for seasonal, recreational, or occasional use. The average household size in 1970 was 2.6; the 1980 Census reported an average household size of 2.2. Between 1980 and 1990, this rate increased to 2.3 persons per unit. The decrease in average persons per household between 1970 and 1980 and the increase in average persons per household between 1980 and 2000 ate shown below. This trend is consistent with the trend in Orange County. Reduction in household size in Newport Beach between 1970 and 2000 had been the result of increased numbers of persons 65 years of age and older and reduced numbers of child- rearing households and child population in the City. This trend is documented by Table H18 (Population by Age, City of Newport Beach 1970 - 2000). Table H19 further indicates a general aging of the population of the City between 1990 and 2000. However, it also shows an increase in "under 5" and "5 to 13" age categories, which in part may explain the slight increase in numbers of persons per household. Newport Beach General Plan 27 Housing Elemen impaction of localities with relatively high proportions of low-income households. It also is required that existing housing need be identified. SCAG estimated the existing need in Newport Beach is for 1,769 dwellings. The tables below indicate ' future need for housing in Newport Beach and its distribution by income group as calculated by the RHNA. The "special needs" population in Newport Beach most numerous and in need of affordable housing is senior citizens (age 65 and older). 389 1 319 ' 359 702 1.769 22% ! 18°% 1 20 °A 40% 100% SOURCE: Snu@em Canramia Aksminnrni nP nmmmmems 9nm Inventory of land Suitable for Residential Devel6prrient The City of Newport Beach is not a residential developer and therefore must rely on private developers or organizations that have the capacity to acquire and manage affordable housing or "at- risk" housing developments. The following section of the Housing Element provides an inventory of land determined suitable for development of affordable housing. In 2006, the City completed a comprehensive update of its General Plan including an update of e Land Use Element. The General Plan recognizes that most of the City will be conserved and establishes policies for their protection and long -term maintenance. However, the General Plan identifies several areas where . substantive land use changes may be anticipated over the next 20 years. Other than Banning Ranch, this would occur within existing developed areas of the City as infill and replacement of previously permitted retail and office development capacity. These areas pro vr e an attainable opportunity to create approximately 5,000 new housing units in the communi (up to 3,758 units excluding the Banning Ranch area). In addition, all of the new residential units will be subject to the provisions of the City s inclusionary housing program. The City s goal over the planning period is for an average of 15 percent of all new housing units to be affordable to very loco —, low -, and moderate- income households. Since a limited amount of vacant land remains in the community, future housing development in accordance with the update of the General Plan would be achieved through infill development and reuse of sites with existing, possibly obsolete land uses. The land use changes in each of these areas are presented in Table H34. MNewport Beach General Plan LM i Housinq Element Recognizing that the introduction of residential uses within existing business and industrial areas necessitates sufficient critical mass of units and amenities to create a viable neighborhood, General Plan Policy LU 6.15.6 defines standards for the development of cohesive and integrated neighborhoods. It stipulates that residential neighborhoods contain a minimum of 10 contiguous acres centered on a neighborhood park and other amenities. The first phase of development must contain at least five gross acres, exclusive of rights -of -way, which Policy LU 6.15.7 requires to be developed at 45 to 50 units per acre averaged over the entire first phase development area. This would yield between 225 to 250 units, 15 percent of which must be affordable as per the City's Inclusionary Housing Program. To determine the market feasibility of unit developed at densities prescribed for the John Wayne Airport Area, housing development densities in the adjoining Irvine Bus ess Complex (IBC) were reviewed. Data indicates that those units constructed have average a 50 units per acre. It can be reasonably expected that the John Wayne Airport Area, could support comparable densities. The feasibility for infill and re -use for housing is supported by the fact that several property owners and developers have approached the City of Newport Beach to request consideration for new housing development, such as owners of the Conexant site where development on 15.4 of the total 26.9 acres t}p5 haw.& been proposed. Conexant submitted a Conceptual Development Plan in July 2007, which involves the redevelopment of new residential and mixed -uses as infill and replacement of existing office and business park functions currently on the site. At 30 units per acre this would yield 462 units and at 50 units per acres it would yield 770 units. To the west of Conexant, property owners of the Koll Center Newport have expressed interest in accommodating housing, with approximately 25 acres of surface parking available for development The City is currently preparing a Community Development Plan for both properties to facilitate residential development. Newport Center Newport Center is a regional center of business and commerce that includes major retail, professional office, entertainment, recreation, and housing in a master planned mixed -use development Fashion Island, a regional shopping center, forms the nucleus of Newport Center (Figure H3). The General Plan identifies the goal of creating a successful mixed -use district that integrates economic and commercial centers serving the needs of Newport Beach residents and the sub - region, with expanded opportunities for residential development. The Land Use Element creates a new residential land use designation of Mixed -Use Horizontal 3 (MU -H3) on the northern portion of the subarea. The MU -H designation provides for the horizontal intermixing of regional commercial office, hotel, multi- family residential, and ancillary commercial uses. Up to 450 new higher- density multi- family housing units are accommodated in this area. A detailed parcel- specific survey of existing vacant and underutilized parcels that can accommodate the new 450 residential uses is included in Housing Element Appendix H4. wRS � 0pJ� �a wamga" x-007' ' The Irvine Compan (TIC) is the main land owner /developer in a v Newport Center area.aad -&9 certtip submtted Planned Community Development Plant deelop 430 of the permitted 450 mixed -use units (within Block 500, 600 and San Joaquin Plaza . The maximum height limits within Block 500 and 600 is 295 feet, while buildings are limited to 65 feet within San Joaquin Plaza. B6asiL3, lev�aka yet- teHec�st t ed Mgx;MuM Dua -6Ac anliiS 9A- AX-jPw aeJSjry OAS ESTAatiSHW FoR_ 7i4o5 ARM. Newport Beach General Plan M Z" 1 SUGGESTED INSERT ON PAGE 5-46 To meet the requirement within these income categories, the North Newport Center Planned community AHIP discussed the development of a 0.75 acre site near San Joaquin Hills Road and San Miguel Avenue. The General Plan allows for 10 residential dwelling units on the site. If all units were affordable, a 35% density bonus would be applied, allowing 14 units. However, the AHIP restricts the units at this site to no more than 50% affordable. The Irvine Company also owns the Bays Apartment complex consisting of three buildings known as Baywood, Bayview and Bayport. In order to meet the AHIP requirements, The Irvine Company would provide affordability covenants for 43 to 86 existing units for a period of at least 30 years. The AHIP stipulates that affordable units shall not be concentrated in any one building in the Bays. The units must be rented to households qualifying as very low, low or moderate - income housholds. 5io yoUS -- �Eemen The City requires that Housing Implement ��� with more than 50 residential ffbrdtable As adon °f° Community C- Development Plan includes Pazr of d1e 1430 HII) be Prepared for projects Ne ort en existing 41P was a rdable Housing Implementation Plan (A HIP), a req�drlte planned °p Center The re approved in December 2007. program re cOe North t q�Yement for affordable requirements. The North requited to Provide either vdable housing is based on 10 categories, using the percentageS show belowmoderate- income housing, ories. The Irvine Company ry Low: 43 or a tom rvzn is amts (10% on of income � Low: 65 units (15 %) ) ■ Moderate: 86 units (20010) construction of `y�canents he l�Fertli_Ne���(tG� GES787 jdV San Joaquin Hills Road and S mold- family touts o 0-75-acre yew to 89 existino ,,.,:.-, an Mieuel A -- R a nA.�ot `� xuon the me creation of affotdabili c mtersecti °n of units trust be rented to households covenants for 29 III addition, there are quali g as ve 79 units 1p�ied- e€at- least�B- years. � ry low_, wport Center that i approved with the Santa Bat u ncludes 16 affordable low- barn Condo bq the Newport B Crequtred to be affordable for �d moderate i housinum pYOject ncome within Another tr Council in 2006 by the Period of 30 pears This g units. All of the private land o m the Ne Loa Coastal CommissiT is Project was approved Y3A�.BaR deV�OP a 30 -urtit multi -f own . wp °n Center Say CLUB � B� T amil3r rental and condo Umearis presently in discussion � fee in ptogrrn, The developer This 10j'a market- to de pto)ec on the site p with the City to lieu fee, rate develo PYesentl have a choice whether to that would be subject to the by the provideffordable u Cttysin_ Banning Ranch units to pay the Located 4ok. within Beach Planniri the City's Sphere of Influence 465 acres g Atea, the Banning COI) in the R (inducting 47 acres of area estem -most portion of 53 acres water fech encompasses approximates it zone boundary dre lunsdiction of the es) are under Y 528 acres eoy and is su ' City of Ne the jurisdiction of O However, the site is refettedtto the pTOVr - of ew Orr Beach' The site ' range CO1mry and pYOVides land Oran is located within the coastal use desi as a v+hire hole," because Se County Local Coastal Program gnations for the Banning le"' area gram (LCp) The Land Use neither the City's nor the County's LCP consolidating e - - Bement prioritizes the retention (Fr�°rre H4). adjoining neighborhoods. Hp operations restore tion Of the Banning p o er r the area wed and habita Ranch r p h as Open ea that would need exte ever, due to the si k and a co space, generated nsive habitat re gntEcant cost of purcha ' g mmuni a park to serve to help - d for nn °n of the am la or ry o e amount of revenue cwuld need of ""'Petty not be ac am of a mixed- density residential p ace, property as ° en ed to be jilla would include considers thepossible develo Should the the Land � that pen space, convenience co pment mmetcial, and Newport Beach Generol Plan Housina Element small hotel uses. The Land Use Element designates the Banning Ranch Area as Open Space (OS) and Residential Village (RV). This designation provides for the development of a planned residential community that integrates up to 1,375 single- family detached, single- family attached, two family, and /or multi- family residential units with supporting schools, parks, community services, local- serving convenience commercial uses and services, and open spaces. Future development would require a master plan or specific plan to depict the specific uses, development standards, density levels, infrastructure improvements, design guidelines, and financial plan. Due to the long time frame for potential development of the site, including the necessity of obtaining the necessary federal and state regulatory permits and the creation and approval of a planned community development plan, residential development of Banning Ranch will not occur during this Housing Element cycle. However, the owners of the property are actively engaged in planning with the City. hdl!?Oa Peninsula Area�"d,, The Balboa Peninsula aYby prised of a series of coastal districts linked by the Newport Boulevard /Balboa Boulemercial and residential corridor. These include Lido Village, Cannery Village, McFadd and Balboa Village. The General Plan identifies the potential for new mixed -use developm these areas (Figure H5 and Figure H6). These areas are highly urbanized and are adequatting infrastructure including sewer, water, police, and fire services. These areas also have no significant environmental constraints that would impede new housing development. C:On'rieiy vitiage Cannery Village is the historic center of the City's commercial fishing and boating industry and contains a mix of small shops, art galleries, professional offices, and service establishments. Recent redevelopment activity within this area has been composed of new residential and mixed -use development such as Cannery Lofts, a 22 -unit live /work project All of these units were market -rate, loft -style ownership units. Older developments include some single - family residential units combined with commercial uses on single Iots. The updated Land Use Element designates the Cannery Village Area as Mixed -Use Horizontal 4 (MU -H4) and Mixed -Use Water 2 (MU -W2). The intent of the MU-H4 land use category is to create a distinct district or neighborhood containing multi-family residential homes with clusters of mixed -use and /or commercial buildings at intersections. Mixed -use buildings are permissible throughout the area. Density ranges for multi- family residential uses are 20.1 to 26.7 units per net acre. Mixed -use parcels have a maximum floor area ratio of 1.5 with a maximum floor area to land area ratio of 0.5 for commercial and maximum of 1.0 for residential uses. The MU -W2 designation applies to waterfront parcels within Cannery Village. Permitted uses include nixed -use structures that vertically integrate housing within retail uses, where the ground floor shall be restricted to retail and other pedestrian -active uses along the street frontage and /or the upper floors used for residential units or non - residential uses including retail and office. Mixed -use parcels have a maximum floor area ratio of 1.25 with a maximum floor area to land ratio of 0.35 for commercial and a maximum of 0.75 for residential purposes. The average size of parcels designated as MU -W2 and MU -H4 in Cannery Village 0.08 acre or 3,840 square feet. Newport Beach General Plan 31 using Element With savings and loan institutions and other home loan lenders experiencing higher costs in attracting funds, it is extremely difficult for the fixed rate, long -term mortgage to be used as the primary mortgage instrument for housing finance purposes. Consequently, variable rare mortgages, equity appreciation mortgages, and other techniques are being promoted. This smorgasbord of "creative financing" helps to maintain a higher level of capital for housing than might otherwise be available. Ldnd and Construction Costs Land costs and construction costs are significant components of housing cost. Land costs are a function of the private market and are relatively high due to the City's location near major employment centers and the Pacific Ocean. Due to the built out nature of the City, vacant land that is available for development of any kind and for affordable housing projects in particular, is extremely limited, and cannot be compared to surrounding jurisdictions. Construction costs also are set by the private market and are influenced by a variety of factors including availability and price of materials and labor, quality of construction, and amenities offered. NtL Cost factors used to estimate the cost of construction for new housing in 2007 Is, approximately as follows: 0 Multi- Family 62et gross square foot) $140 apartment buildings /$150 condominiums' M Sin rle Family Dwellings (per ,gross square foot) Wood Frame $130.00 (average quality); $160.00 (good quality) Growing market demand for housing in Newport Beach and little remaining vacant land in the City has had a strong impact on financial aspects of residential development in the City. The greatest impact of this market demand on. cost of new housing is seen in the price of residential land in the City. According to a recent study, and entitled for multi- family housing in Newport Beach would cost $3,250,000 per acre.9 Density increases often are used to offset high construction and land costs. Density increases may decrease land costs on a per -unit basis, but sales prices of units in Newport Beach indicate density increases do not necessarily bring the cost of housing to consumers to a level that is affordable to lower- or even moderate -income households. Assuming that both apartments and condominiums would be built at 20 units an acre, the land cost would be $162,000 per unit 10 In addition, high residential densities involving buildings taller than three stories will greatly increase unit marketability in many areas of the City because of the addition of a view factor. Regardless of squate- footage or density, a unit with a blue water or white water view can be marketed as a luxury condominium and command an extremely high price. Higher land costs in the City are the main factor in higher square - footage costs for housing provision. High land costs also trigger higher costs in other areas of development. To balance land prices, developers must increase amenities within the housing unit as well as within the community area. Thus, a higher land price is the factor that triggers increased development costs. 6 Inclusionary Housing In -Lieu Fee Study. October 7007. EFS 9Ibid io Ibid c Newport Beach General Plan 3.3 sing Element density standards have not changed since 1936. Densities in the amount of approximately thirty dwelling units per acre are still allowed in these areas. In the newer neighborhoods developed since the 1960s, single- family densities are generally less than 10 dwelling units per acr�e City's Codes contain many procedures to grant relief from certain development standards which can be of assistance in allowing higher densities. However, even if the City is willing to approve reductions in some of the zoning regulations, (such as parking), the California Coastal Commission has similar development requirements which would still need to be complied with for properties in the Coastal Zone. Maximum density in the Multifamily Residential Zone (MIZt) is a function of the size of the lot. For example, a minimum lot area per dwelling unit of 1,200 square feet applies, which translates to a maximum density of 36 units per net acre. Within the Medium Density Residential Zone (RMD), up to approximately 22 dwelling units could be developed. Special Needs Housirig Group Homes The term "group home" as used by HCD is interchangeable with the City's definition of a "residential care facility." Licensed residential care facilities for six or fewer persons are permitted by right in all residentially -zoned properties, in accordance with state law, and are treated as single family residences. Residential care facilities for seven or more persons and unlicensed residential care facilities are permitted in the following zoning districts, with a Use Permit issued by a Hearing Officer e Residential District —MFR zoning district r Planned Community Districts— Propetty development regulations applicable to residential districts, related to residential care facilities and Single Room Occupancy (SRO) residential hotel uses, shall also apply to the corresponding portions of the PC Districts. Convalescent facilities that provide care on a 24 -hour basis for persons requiring regular medical attention, but excluding facilities providing surgical or emergency medical services are permitted in the GBIF, M -1, and M -1 -A Districts with a Use Permit. These facilities are also permitted in the APF District with a Use Permit issued by the Planning Director Accessory Dwellln.g Unlfs The City's Zoning Code includes provisions for "granny units" (accessory, age - restricted units) which may be approved by the Planning Director in single and mull - family districts. The second dwelling unit is intended for the sole occupancy of 1 or 2 adult persons who are 60 years or older, and the size of the unit does not exceed 640 square feet. Since adoption of the City's "accessory dwelling unit' provisions, 24 age - restricted units have been authorized and 15 constructed. Emergency and Transitional N.using Transitional housing is typically defined as temporary (often six months to two years) housing for a homeless individual or family who is transitioning to permanent housing or for youth that are moving out of the foster care system. An emergency shelter is a facility that provides shelter to homeless families and /or individuals on a limited short -term basis. MNewport Beach General Plan 3A Housing Element SOURCE; City crNewpoa BeadiPla6ningand Buildhg Depadmerds2008, Febmwy 'Applies to a8 development h %San Joaquin Hills Transportation ConidorAgencles Area of Benefit Development Review Process All residential development in the City requires review to determine compliance with the City's development regulations and guidelines. The development review process may require a discretionary approval as part of the process and may include actions such as zone change, modification permit or use permits. The City's review procedures are considered efficient with typical zone change requests reaching completion in as few as 90 days if no environmental impact report is required An Environmental Impact Report may require up to one year before a decision is rendered, which is within the time frame established by state law. The City's policy is that building permit plan checks take a maximum of 4 weeks for first review. Use Permits and subdivision maps typically can be approved in six to eight weeks, provided an environmental impact report is not requited Planning Commission decisions on maps, and use permits are final unless appealed within 14 days of the date of decision to the City Council, or unless a member of the City Council within 14 days of the date of decision requests to review the Planning Commission decision. Zone Changes require City Council action. It should be noted that the City does not impose a design review. The lack of this procedure further lends to an expeditious approval process. Reasonable Accommodation procedures specifically for persons with a disability seeking equal access to housing are outlined in Chapter 20.98 City's Zoning Code. Applications for a reasonable accommodation are made available at a pubic utter and no fees are required for a reasonable accommodation request. A request for a e accommodation may be made by any person with a disability, their representative or a developer or provider of housing for individuals with a disability. A Hearing Officer is designated to approve, conditionally approve, or deny applications for a reasonable accommodation. Modification Permit's The City has a process to obtain a "Modification Permit." Whenever strict interpretation of the Zoning Code precludes reasonable use of a property, a modification permit may be issued to deviate from the standards of the Code relating to building setbacks, size, and location of parking spaces, structural appurtenances or projections that encroach into setbacks, and related matters. A public • Newport Beach General Plan 345 XoneA:` Zone A., 1i zine,a: 11 Ionesi Sfnafe-Family Meal -Fam& ! single Farngy 1 Mulf•Famlfy Transportation Corridor Fee' l $4,185 t $2,438 $3,242 $1,892 Apartment Single•Family Detached Single - Family Attached Fair Share Trip Fee Elderly $708 Mobile Home $1,946 $1,522 $1,150 $1,062 In -Lieu Park Fes $20,125 per dwelling unit Newport-Mesa Unified School F niQtrw ee $1.84 per square toot SOURCE; City crNewpoa BeadiPla6ningand Buildhg Depadmerds2008, Febmwy 'Applies to a8 development h %San Joaquin Hills Transportation ConidorAgencles Area of Benefit Development Review Process All residential development in the City requires review to determine compliance with the City's development regulations and guidelines. The development review process may require a discretionary approval as part of the process and may include actions such as zone change, modification permit or use permits. The City's review procedures are considered efficient with typical zone change requests reaching completion in as few as 90 days if no environmental impact report is required An Environmental Impact Report may require up to one year before a decision is rendered, which is within the time frame established by state law. The City's policy is that building permit plan checks take a maximum of 4 weeks for first review. Use Permits and subdivision maps typically can be approved in six to eight weeks, provided an environmental impact report is not requited Planning Commission decisions on maps, and use permits are final unless appealed within 14 days of the date of decision to the City Council, or unless a member of the City Council within 14 days of the date of decision requests to review the Planning Commission decision. Zone Changes require City Council action. It should be noted that the City does not impose a design review. The lack of this procedure further lends to an expeditious approval process. Reasonable Accommodation procedures specifically for persons with a disability seeking equal access to housing are outlined in Chapter 20.98 City's Zoning Code. Applications for a reasonable accommodation are made available at a pubic utter and no fees are required for a reasonable accommodation request. A request for a e accommodation may be made by any person with a disability, their representative or a developer or provider of housing for individuals with a disability. A Hearing Officer is designated to approve, conditionally approve, or deny applications for a reasonable accommodation. Modification Permit's The City has a process to obtain a "Modification Permit." Whenever strict interpretation of the Zoning Code precludes reasonable use of a property, a modification permit may be issued to deviate from the standards of the Code relating to building setbacks, size, and location of parking spaces, structural appurtenances or projections that encroach into setbacks, and related matters. A public • Newport Beach General Plan 345 intl Element Housing Plan: Goats, Policies, Quantified Objectives, and Pragtanns Analyses contained in previous sections of this Housing Element provide the basis for the Newport Beach Housing Plan, which is comprised of housing goals, policies, and programs. The plan places emphasis on providing adequate opportunity for satisfaction of the City's remaining Regional Housing Needs Assessment (RHNA) requirement. The special needs populations most evident within Newport Beach and most easily quandfiable by United States Census of Population and Housing are the elderly, the challenged (handicapped), and female- headed households. Many of those Policies and Programs in this Housing Plan focus on providing housing opportunities for the dominant Special Needs population —senior citizens (those 65 years of age and older). Senior citizens comprise a large component of the total special needs population and have, as a group, many who are disabled, as well as live at or below the poverty level. Goals and policies contained in this Housing Plan address the City of Newport Beach's anticipated housing needs during the tenure of this Housing Element (2006 -2014) and are implemented by a series of Housing Policies and Programs. These Policies and Programs prescribe specific actions the City of Newport Beach will take during the tenure of this Housing Element. The Housing Plan set forth in this Housing Element contains an annotated description of future actions for each Housing Program policy, the Program funding source, responsible agency, and time frame for implementation. GENERAL REVIEW OF 2000 -2005 HOUSING ELEMENT AND HOUSING ACTIVITIES California state law requires the City Housing Element be reviewed as frequently as appropriate and that it be revised appropriately, but not less than every five years, to reflect results o e review. The Sof A oe5 last co ensive revisions of the Newport Beach Housing Element in 2000 'th a subsequent a more minor up date in 200 that reflected changes in the City's Land use Plan. All a following m uated Huang a review of the Housing Element: • Appropriateness of housing goals, policies, and programs in contributing to attainment of the state housing goal • Effectiveness of the Housing Element in attainment of the community housing goals • Progress of the City in implementation of the Housing Element 0 When a City has land within the California Coastal Zone, review of its Housing Element must consider housing pursuant to coastal requirements. This evaluation must include the following. s Number of new housing units approved for construction wid-tin the Coastal Zone after January 1, 2000 s Number of housing units required to be provided in new housing developments within the Coastal Zone or within 3 miles of the Coastal Zone for persons and families of low- or moderate- income, as they are defined in Section 50093 of the Health and Safety Code I- Number of existing residential dwelling units in the Coastal Zone that have been authorized to be demolished or converted since January 1, 1992, that were occupied by persons or Newport Beach General plan 13 Hovsina Elemen families of low or moderate income, as defined in Section 50093 of the Health and Safety Code e Number of residential dwelling units required for replacement of units authorized to be demolished or converted that were occupied by persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code; location of replacement units on site, elsewhere within the locality's jurisdiction within the Coastal Zone, or within. 3 miles of the Coastal Zone within the locality's jurisdiction, must also be designated in the review In the course of administering the Housing Element and preparing the updated 2000 -2008 Housing Element, the City determined that the previously adopted goals and policies continue to contribute to the attainment of California state housing goals as well as the housing goals of Newport Beach. As a result, most of those goals and policies have been retained to facilitate attainment of the 2006 -2014 City housing goals. Sperific Housing Programs that have not been effective . have been revised or deleted. New Housing Programs have been added, and new housing sites, consistent with the updated Land Use Element, have been identified. According to the Regional Housing Needs Assessment for the Housing Element cycle of 1998 -2005, SCAG estimated that the City needed 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 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, The distribution of these new units according to income was as follows: Very Low Income (86 units), Lower Income (53 units), Moderate Income (254 units), and Above - Moderate Income (476 units). Table H39 summarizes the total RHNA construction need by income, calculated through the RHNA process for the 1998 -2005 Planning Period. 66 53 83 254 .4.76 18% 11% 17% 53% 100% The 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 Table H40 illustrating the total number of new additional units that were permitted during the RHNA period of 1998 to 2005. liewpart Beach General Plan 37 Goal H5 Housing opportunities for special needs population Program 5.1.1 Apply for United States Department of Urban Development Community Development Block Grant (CDBG) funds and allocate a portion of such funds to sub- redpients who provide shelter and other services for the homeless. Program 5.1.2 Cooperate with the Orange County Housing Authority to pursue establishment of a Senior/Disabled or Limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will Include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. Program 5.1.3 Permit, where appropriate, development of `granny' units in single-family areas of the City. Program 5.1.4 Consistent with development standards in residential and commercial areas, permit emergency shelters and transitional homing under group housing provisions in is Zoning Code. Program 5.1.5 Work with . the City of Santa Ana to provide recommendations for the allocation of HUD Housing Opportunities for Persons with AIDS (HOPWA) funds within Orange Count) Housinci Element The City continues to provide CDBG funds to homeless shelters and at -risk service providers. In Fiscal year 2007 -2008 the City provided funding to Human Options, Emergency Transitional Shelter (Orange Coast Interfaith Shelter), Serving People to Heed (SPIN), and Fair Housing Council of Orange County. � The following organization@ has been funded to assist homeless battered women and children: Human Options This has not yet been completed ,The City will conduct an analysis of d fferent programs and the financial feasfbility4partidpating in such programs. Code Amendment No. 2003-001 (PA2003- 054) was approved by City Council on May 13, 2003 to grant the Planning Director authority to approve use permits for accessory dwelling units. This has not yet been completed: Will be completed with the comprehensive Zoning Code update (summer 2008) On February 9, 2005, the City 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 Was 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 HW/AIDS , the City may request funding at future HOPWA This program remains appropriate. This program remains appropriate. This program remains appropriate. This program remains appropriate. This program remains appropriate. Newport Beach General Plan Housing Element Program 5.1.6 Maintain a list of "Public and Not yet completed. City staff vdll work to This program remains Private Resources Available for Housing and develop and maintain a Ist of resources that I appropriate. Community Development Activities:' are available for housing and community Goal H6 Equal housing opportunities for all residents Program 6.1.1 Contract with an appropriate fair I The C11Q mo n with the OC Fair This program remains housing service agency for the provision of fair 1 Housing Aut o ' annual) i appropriate. housing services for Newport Beach residents. The Regional Fair Housing Impediments The City will also work with the fair housing ! Analysis was completed in 2000. i service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing pamphlets containing information of Fair document required by HUD. The City will I Housing and Dispute Resolution Services are available at the public counter. continue to provide pamphlets containing I information related to fair housing at the Planning Department counter. Program 6.12 Support fair housing er ar during the planning period, Newport This program remains opportunities by using Community Development ' Beach allocated approximately $13,000 in I appropriate. Block Grant funds whenever necessary to enact CDBG funding to the Fair Housing Council of I federal, state, and City fair housing policies. Orange County to assist the City in furthering i 1 fair housing through education, landlorditenant counseling, and legal action when necessary. Goal H7 Effective and responsive housing programs and policies Program 7.1.1 As part of its annual General Consistent with State Housing Element Law, This program remains Plan Review, the City shall report on the status the City prepares an Annual Housing Element appropriate. of all housing programs. The portion of the Progress Report for submission to HCD. Annual Report discussing Housing Programs is to be distributed to the California Department of Housing and Community Development in accordance with California State Law. Housing Eiernenf Coastai Zone Review The City of Newport Beach uses Section 20.86 of the Municipal Code to implement Government Code Section 65590 et seq. Between January 1, 2000, and January 1, 2007, 924 new residential units were approved for construction within the California Coastal Zone. Of these new units, 160 developed as housing affordable to low- income and moderate - income individuals and /or families (Bayview Landing project). During the same time period, the City permitted landowners to demolish 768 residential units within the Coastal Zone for a net increase of 156 units. Of the units demolished, none were occupied by low- income and /or moderate- income persons and /or families. YEAR 2008 -2014 HOUSING PLAN Quantified Dbjectives The 2008 -2014 Regional Housing Needs Assessment (RHNA) determined the City of Newport Beach had a construction need for 1,784 residential units between January 2006 and January 2014. MNewport Beach General Plan �5q Housing Element The total need for each target income group is as follows: Very Low Income (392 units); Low Income (322 units); Moderate Income (362 units); and, Above Moderate Income (708 units). As summarized in Table H43, since January 1, 2006, a total of 461 housing units have been constructed in the community and may be credited toward meeting the adequate sites requirement of the Regional Housing Need . sessment Given the home prices within the community all of the 461 single- family and multi- y aze umed to be above - moderate - income units. Inch GioLp 2008 -20 14 RHNA finis conshocted /h the Pipeline since 2006 RBmalnfng ANNA Very Low income. 392 0 0 0 — 461 392 Low Incorm j 322 322 Moderate Income 362 362 Above Moderate 708 247 1•otat 9,784 469 1,323 indudes single raragy and muladamiy In additio4lto the 461 market !m a units, there are 79 units approved with the Santa Barbara Condominium project that inciudeR16 affordable low- and moderate - income housing units. All of the affordable units will be required to be affordable for a period of 30 years. This project was approved by the Newport Beach City Council in 2006 by the Local Coastal Commission in 2007. This approval involved the approval of an amendment to the prior General Plan Land Use Plan from Administrative, Professional, Commercial Visitor, and Financial Commercial to Multi - Family Residential. The Year 2008 -2014 Housing Plan for Newport Beach has identified Goals, Policies, and Programs that fulfill the remaining RHNA construction need. Achieving the remaining RHNA allocation is expected to be achieved through the future redevelopment of several key housing opportunity areas such as Airport Area, Newport Center, Newport Mesa, Banning Ranch, the Balboa Peninsula area, and Mariners' Mile. These areas could potentially accommodate up to 4,825 to 5,025 new residential units. The Airport Area in particular is a key opportunity site within the community that can facilitate the development of housing that is affordable at a variety of income levels. General Plan policy for this area stipulates that residential units be developed at a maodmum density of 50 units per acre and minimum of 30 units per acre. In addition to the future residential sites identified within the General Plan update, all future residential development citywide would be subject to the City's Inclusionary Housing Program, which establishes a goal that 15 percent of all new units be affordable to very low -, and low -, and moderate - income households. Projects of 50 or fewer units have the option of preparing an Affordable Housing Implementation Plan (MM or paying an in -lieu foe. Projects of more than 50 units are required to prepare an AHIP that specifies how the development will meet the City's affordable housing goal. It is estimated that the total number of new units that could be developed pursuant to the Lend Use Element is 6,900. It is estimated that approximately 1,030 of these would be affordable subject to the provisions of the Inclusionary Housing Program. Affordable units shall be legally restricted to occupancy by households of the income levels for which the affordable units were designated for at least 30 years. Newport Beach General Plan LIP using Element Since approval of the General Plan by the voters in November 2006, there has been significant Interest from developers regarding the construction for housing and mixed -use development within the key, housing opportunity areas of the Airport Area and Newport Center. The new infill housing development will occur on prior non - residentially designated sires. In addition to the Santa Barbara Condominium project which will occur within the Newport Center area, the North Newport Center Planned Community Development Plan was approved by the City in 2007. As part of the proposed 430 mixed -use units, the Planned Community Development Plan includes an Affordable Housing Plan (AHIP), a required component of the City's existing Affordable Housing Implementation Program requirements. The North Newport Center AMP was approved in December 2007. The AHIP requirement for affordable housing is based on income categories. The Irvine Company is required to provide either very low —, low -, or moderate- income housing, or a combination of income categories, using the percentages shown below: ii Very Low: 43 units (10 %) 9 Low- 65 units (150K) is Moderate: 86 units (20%) To meet these requirements, the North Newport Center Planned Community AHIP includes the construction of 14 affordable mull -family units on a 0.75 -acre parcel of land near the intersection of San Joaquin Hills Road and San Nfiguel Avenue and /or the creation of affordability covenants for 29 to 89 existing units. At this location, the units must be rented to households qualifying as very low=, low-, or moderate- income households for a period of at least 30 years. As the project moves forward, it is anticipated that these units will contribute the affordable housing supply in the community. Anothe private land owner in the Newport Center area is presently under discussion with the City to develop 30 -unit muid- family rental and for -sale project on the site presently occupied by the Balboa Bay Club. The developer would have the choice of paying the City's in -lieu fee or providing affordable units. The City has adequate capacity to fulfill its remaining RHNA requirement through future residential capacity identified in the Land Use Mement and the City's Inclusionary Housing Program requirements. Newport Beach Housing Element: Goals, Policies, and Programs Goals for the City include the following: promoting quality residential development through application of sound planning principles and policies that encourage preservation, conservation, and appropriate redevelopment of housing stock; providing a balanced residential community that contains a variety of housing types, designs and opportunities for all economic segments of the community; extending ownership opportunities to as many households as possible, particularly those of moderate and upper incomes because these comprise the greatest demand; preserving and increasing housing affordability, through rental housing, for very low- and low- income households; and, providing housing for special needs groups. The policies and programs described below focus on providing appropriate and affordable housing opportunities and related services to the special needs populations most in need of such in Newport Beach, that is, in particular to senior citizens. Additionally, the policies and programs (particularly under Goals 3, 4, and 5) will ensure that the City Newport Beach General Plan L+1 liouslna Element Orange County HoaringAuthority- --The County offers rental assistance for those individuals and families in the County in danger of becoming homeless. The Section 8 "Certificate" and "Housing Voucher" programs were established by federal law. Both provide rental assistance for low- income persons (those having incomes 80 percent or less of the County median income) in need of decent, safe, and sanitary housing. The "Certificate" program requires families pay a portion of their rent, but an amount not to exceed 30 percent of their adjusted income. Total amount of the rental unit must be approved by the Housing Authority based on utilities, location, and the condition of each rental dwelling. Additionally, total rent must fall within Housing Authority Fair Market Rent limits. It should be noted that United States Department of Housing and Urban Development regulations were modified in October, 2000 to allow Section 8 monies to be used for home purchases in addition to rental assistance. The "Housing Voucher" program allows families to pay more than 30 percent of their adjusted income toward rent should they wish to rent a housing unit that has a rent greater than Fair Market Rent. Families pay the difference between the rental price of the dwelling and the Housing Authority portion of the rent The Housin "C� 'ficate" Program (which will be combined under a e e ucher" Pro b October , 2001 rovides rental assistance fo� ting housing units t charge Fair Market Rent. N ce is provided to the renter should the renter choose a unit re expensive than Fair Market Rent. According to the Orange County Housing Authority, there are more than 2,000 Certificates in existence in Orange County. FairHouiing Conndt of Orange Caunty —The City of Newport Beach has worked in conjunction with the Fair Housing of Orange to affirmatively further fair housing opportunities in this community. The Fair Housing of Orange "actively supports and promotes freedom of residence through education, advocacy and litigation to the end that all persons have the opportunity to secure the housing they desire and can afford, without regard to their race, color, religion, gender, sexual orientation, national origin, familial status, marital status, disability, ancestry, age, source of income or other characteristics protected by law." The Fair Housing of Orange provides a wide array of programs and services to its clients free of charge and which are available in a number of different languages to residents, housing professional and community service providers under contracts with the City of Newport Beach, an many other communities throughout the County. Families Forwm Fam;h&r Fonnard Transitdonal Housing Pro gram (THP} —THP serves homeless families with children and provides transitional housing. Families may stay up to two years and are requited to pay 30 percent of their income on rent. Families are also linked with appropriate supporting resources and counseling. OASIS Senior Center —This is a multi- purpose center dedicated to meeting needs of senior citizens and their families. OASIS estimates as many as 75 percent of its clients are residents of Newport Beach. OASIS offers classes in art, exercise, mature driving, topics of enrichment, and computers and arranges social groups for those who share hobbies and interests. The Center travel department coordinates day and overnight (rips. OASIS offers.transportation programs (three vans) for Newport Newport Beach General Plan %�Z Housina Element "Practical counseling" to assist in goal setting, budget management and future planning, and referrals to local agencies for other counseling needs. Serving People in bleed (SPIN)-­SPIN assists low- income and homeless people with financial assistance for housing costs and through a network of comprehensive support services, enables them to become self - sufficient and no longer dependent on public support. SPIN offers 3 different programs: • GAPP (Guaranteed Apartment Payment Program) which offers low- income and homeless families with children (1 adult must be working full-time) with move -in costs to permanent housing. The program also requires mandatory, comprehensive case management lasting up to 2 years which includes family advisors, tutors for children, childcare cost subsidies, personal and job counseling and budgeting skills. • The SARP ( Substance Abuse rehabilitation Program) program offers participants move -in costs to a recovery home, counseling, bus passes to locate employment and eligibility to the GAPP program if sobriety is maintained for 12-18 months. tit The Street Services Program involves volunteers preparing and delivering a sack meal, hygiene kits and seasonal clothing to the homeless living on the streets South County SadorServiceh is a regional non -profit charitable organization that has as its mission to promote, advocate, and improve quality of life, dignity, and independence of the elderly. This organization serves approximately 10,000 seniors annually in its combined programs. South County Senior Services receives funding from federal grants, project income, MediCal, client fees, USDA, funding drives, and special events. South County Senior Services provides medical treatment programs for adults eighteen years or older with disabilities or impairments who are at risk of institutionalization, including nursing services, occupational and physical therapy, speech therapy, nutrition, music therapy, counseling, supervised social and educational activities, exercise, special events, music, and art to delay institutionalization and social isolation. South County Senior Services has an Alzheimer's treatment center and an in -home assessment program to determine needs of frail seniors, 60 years of age and older, and to establish a Plan -of- -Care for services needed to assist seniors to maintain independence in their own homes for as long as possible. A transportation program coordinates lift- equipped paratransit services for senior centers. A referral service for In -Home Providers is offered to help seniors maintain independence in their own homes for as long as possible. Various programs and services are offered to meet educational, recreational, social, and human service needs of the elderly population. The Shared Housing Program was designed for seniors and various age groups to share their existing homes for companionship and relief from financial burden of housing costs for short- or long -term tenures. This Program had operated throughout the 1990s, but was discontinued in 2000 because the County of Orange discontinued Community Development Block Giant Funds for the Shared Housing Program. The Mobile Meals program provides ho meals home - delivered meals to individuals who are homebound due to age, illness, or disability. YMCA The Newport Beach YMCA offers physical activities classes and personal hygiene facilities. YWCA Hotel for Women.—The YWCA Hotel for Women provides shelter, food, counseling, job - search, and housing - search assistance for homeless women. Frseads in Serviee to Humanity This agency (established in 1968) assists more than 5,900 families in Orange County. These families consist of more than 24,000 individuals, of whom more than 12,500 are children. Friends in Service to Humanity provides the following services: rental assistance to avoid Newport Beach General Plan 43 Housing Element Name i Persbris7Grounl Served 1 recanon t Numberoraents Ma s Shelter Pregnant teens, ages 17 and under, teen mothers and Santa Ana 18 Infants 0-18 months 8 � Santa Ana � t2 Mercy HouselJoseph Transitional housl g for; m st be employed or in job training Hausa full time Marcy House/Regina 1 Transitional housing for Women and Children under 10; must { Santa Ana 14 House be employed or in job training full time # Missionary8rothersof Charity Families Santa Ana 16 New Vista Shelter Families Fullerton 60 O.C. Rescue Mission Men Santa Ana 90 Orange Coast Interfaith Shelter Alt Costa Mesa 100 Precious Life Shelter Trans'Oonal/Emergency program for pregnantwomen 18 j i Los Alamitos 21 years and older Rescue Mission for Man Men Santa Ana 40 Salvation Army Hospitality } Transitional housing forfamilies, women with children, men t All Santa Ana } 60 HouselBuffab Street Thomas House The Sheepfold Women 16 years of age and older with children; Faith Based Tustin 55 Shelter ForThe Families, Men, &Women Westminster 106 Homeless 4 Toby's House Adult pregnant women; children under 5 years of age Transitonal program for single women with no children; must WISE Hotel for Women be alcohol free; drug testing may be required Sonia Ana 34 Women's Transitional I Living Center Battered Women YWCA Rote! For Women I Santa Ana ( 35 Women r r SOURCES: Orange County Social SeMoe Resource Dkeciay, Newport Beach Annual Moo Plan: 20072006 Newport Beach General Plan 4t I Families, Men and Women SPiN offers 3 different programs: j .A The GAPP (Guaranteed Apartment Payment Program) I offers low- income and homeless families with children with move -in costs to permanent housing. # SPIN a The SARP ( Substance Abuse rehabilitation Program) Costa Mesa n1a program offers participants move -in costs to a recovery f i home and counseling. a The Street Services Program involves volunteers ; preparing and delivering a sack meal, hygiene kits and seasorral dothing to the homeless living oft tha streets Thomas House Transitional housing forfamilies, women with children, men i Grove 76 with children; adults must be willing to work !Garden Thomas House r Families Fountain R' Provides room Temporary Shelter j Valley I For 7 families Toby's House Adult pregnant women; children under 5 years of age San Clemente _ families` Veterans Charities Single Veterans Women Santa Ana Santa Ana —5 54 6 TheVilia Fbsada Transitonal program for single women with no children; must WISE Hotel for Women be alcohol free; drug testing may be required Sonia Ana 34 Women's Transitional I Living Center Battered Women YWCA Rote! For Women I Santa Ana ( 35 Women r r SOURCES: Orange County Social SeMoe Resource Dkeciay, Newport Beach Annual Moo Plan: 20072006 Newport Beach General Plan 4t Attachment No. 3 45 Xennedy www.kennedvcommission.ora 17701 Cowan Avenue, Suite 200 Irvine, CA 92614 949 250 0909 June 18, 2008 Mr. Robert Hawkins, Chairman Planning Commission City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 -8915 Dear Chairman Hawkins and Planning Commission Members: RE: Draft Housing Element, May 2008 Thank you for the opportunity to review and comment on the City of Newport Beach Draft Housing Element. We have reviewed the draft and are submitting this letter to provide public comments. The Kennedy Commission is a broad -based coalition of community advocates focused on building a supportive environment for the creation of housing opportunities for families in Orange County earning less than $20,000 annually. Our comments will focus on the following areas 1. Past Performance and Non - Compliance Finding By HCD 2. Carryover of Shortfall From Prior Planning Period 3. Inventory of Land Suitable For Residential Development 4. Lack of Strong Policies to Facilitate Development of Homes for Lower - Income Residents 5. Lack of Compliance With S132 Requirements 1. Past Performance on 1998 -2005 Housing Element The City of Newport Beach's 1998 -2005 and revised 2006 housing elements were found to be out of compliance with State housing element law (Article 10.6 of the CA Government Code). In particular, the elements lack sites available and appropriate for the development of homes for lower- income households. The elements also needed to be strengthened to provide specific policies and programs that would remove barriers and would encourage and facilitate the development of housing opportunities for lower - income families. The lack of progress on having an element in compliance with state law has prevented planning efforts and new opportunities to keep pace with the City's growing population and housing needs for lower income families. During the 1998 -2005 planning period, the City added 3,157 new homes. This number exceeded the 476 unit regional allocation for the planning period; however the vast majority of these homes were only affordable to upper income households. Only one senior community of 119 Working for systemic change resulting in the production of housing for Orange County's extremely low income households 91 homes was developed to serve the low and very low- income segments. No deed restricted affordable homes were developed to meet the needs of extremely low, very low and low- income families. 2. Newport Needs to Cary Over Past Planning Period Shortfall Consistent with California Government Code Section 65584.09 the City should, within the first year of the planning period of the new housing element, zone or rezone adequate sites to accommodate the unaccommodated need of the regional housing need allocation (RHNA) from the prior planning period. This would be in addition to any zoning or rezoning required to accommodate the jurisdiction's share of the regional housing need pursuant to Section 65584 for the new (2006 -2014) planning period. The draft should identify a strategy to address the past very low and moderate - income unaccommodated need and a rezoning program. Newport Beach had a conditional compliance and did not complete the rezone program to address shortfall in sites for very low, low and moderate - income households in the 1998 -2005 Element. 3. Inventory of Land Suitable for Residential Development Government Code Section 65583 (a)(3) requires local governments to prepare an inventory of land suitable for residential development, including vacant land, potential redevelopment sites and an analysis of the relationship of zoning and public facilities and services to these sites. An analysis of the sites inventory demonstrates that the City will have a shortfall of sites appropriately zoned to meet the housing needs for extremely low, very low and low - income households. The draft identifies some underutilized land and proposed mixed - used zoned sites as potential housing opportunity sites. Most of the sites identified in the inventory are not zoned at multifamily densities or have the development standards that would encourage and facilitate affordable homes for lower income families (minimum 30 homes per acre). Where the inventory reveals insufficient sites to accommodate the housing needs of all income levels, the program section must provide sufficient sites, developable "by- right" at multifamily densities, to provide 100% of the shortfall of sites necessary to accommodate the remaining housing need for very low and low- income households. (CA Government Code Section 65583(c) (1) (A)). At least 50% of the very low- income housing need shall be accommodated on sites designated for residential uses and for which nonresidential uses or mixed -uses are not permitted. (CA Government Code Section 65583.2(h)). The very low- income remaining RHNA allocation from the prior planning period is 62 and the current allocation is 392. We believe the identified sites and required strategies are inadequate to encourage and facilitate affordable home development for the lower- income segments. The September 10, 2007 letter from the State Department of Housing and Community Development (HCD) to Newport Beach states: "according to the revised element, the John Wayne Airport and Newport Center areas offer the greatest residential 8/1!2008 Page 2 of development potential during the remainder of the planning period [1995- 2006]. ...the element must demonstrate these strategies are realistic and viable ... As the only strategy proposed in the 2006 -2014 Draft Housing Element, the Affordable Housing Implementation Policy "AHIP" program is inadequate. During the 1995 -2006 period, homes were not produced under this program to fully meet the RHNA requirements for very low and moderate - income residents. Of the 3,157 homes permitted, only 119 were affordable to low and very low income residents. These homes are all in one age- restricted, affordable apartment community, Bayview Landing. In Newport Center, all the 450 new homes allowed under the General Plan have been approved. Although the Irvine Company's Planned Community Development Plan received City Council approval for a maximum of 430 new homes and included the required Affordable Housing Implementation Plan (AHIP), the net gain of affordable homes in Newport Beach may be zero. No new affordable homes will be included in the new Planned Community in Newport Center; the entire affordable requirement will be accomplished by deed restricting scattered apartments in existing communities and possibly some of the homes within a new (maximum 14 home) apartment community that may be built outside of Newport Center. At the same time, deed restrictions on 46 apartments in the same existing communities will expire in 2010 -2011. On December 11, 2007, the City Council voted to limit the ratio of affordable homes to market rate homes under the AHIP for the new (maximum 14 home) apartment building to 50 %. This limitation may constrain the financing such that the development will not be feasible. The Draft Housing Element states that "in addition, there are 79 units approved with the Santa Barbara Condominium project within Newport Center that Includes 16 affordable low and moderate - income housing units." In fact, the units are in existing older apartment buildings in another area of Newport Beach with all electric utilities, according to one developer who has seen the apartments. On page 5 -16 of the Draft Housing element the number of affordable apartments is described as 12; on page 5 -46, the number is 16. The developer (Lennar) who intended to build the 79 condominiums has assigned their interest in the property to another developer. Further, the Draft Housing Element states: "Another private land owner in the Newport Center area is presently in discussion with the City to develop a 30 -unit multi - family rental and condominium project ... that would be subject to the City's in -lieu fee program." The City's in -lieu fee program is being revised and is not included with the Draft Housing Element for analysis of the adequacy of it. The Airport Area has the only other sites that may be zoned at densities sufficient to accommodate lower- income RHNA requirement (more than 30 units/acre); however, as the new zoning code is not available it is unclear if any of the sites will be zoned 100% residential. In addition, there is a constraint that residential villages must "contain a minimum of ten contiguous acres centered on a neighborhood park and other amenities." The same letter from HCD to Newport Beach requests "An indication whether redevelopment, recycling, or intensification of a site would require lot consolidation to allow additional residential development ". In reviewing the 2006- 811 /2008 Page 3 of 5 1�% 2014 Draft Housing Element sites inventory, Appendix H4, of the 98 sites listed only three contain more than ten acres. In fact, 47 of the 98 sites listed are less than one acre, making assemblage of those parcels highly unlikely. In the same letter, there was a request for expanded site identification: "Given that most of the sites listed in Appendix H5 are developed with existing uses, the element must be expanded to describe the condition and age of existing development and describe the realistic potential for these uses to be discontinued and replaced with housing this planning period." Appendix H4 is essentially a "data dump." We are unable to locate the requested expanded descriptions of the sites. Additional analysis on site feasibility is needed to evaluate the viability of these sites for lower- income housing opportunities. 4. Lack of Strong Policies The above - referenced letter states: "Given the city's strong reliance on a combination of mixed use and redevelopment to accommodate its remaining need, Policy M.2.3 must be complemented with strong programs and implementation actions to facilitate such development...." The city has failed to provide any new programs and as a result, an adequate supply of affordable homes is not being produced: A. Zoning is not updated to facilitate development at densities sufficient to accommodate lower- income RHNA requirements. B. Program 2.2.1(AHIP) has failed to provide the target percentage of affordability: 1. The program remains a policy, not an ordinance and there is no set date for adopting an ordinance. 2. In the 1995 -2006 period, 3157 permits were issued and 119 affordable homes were built = 3.7 %. 3. Of the approximately 500 new homes planned and approved in Newport Center, a maximum of seven new affordable homes will be added to the housing stock = 1.4 %. 4. The in -lieu fee is in the process of being updated and there is no set date for determining the new fee. As our analysis has demonstrated, the City does not have adequate sites to accommodate the needs of lower- income residents and therefore should rezone sites to accommodate this need within one year. 5. Lack of compliance with S132 requirements 8/112008 Page 4 of 5 'A� The city has failed to identify any site which may be appropriately zoned as required by SB2. The city has failed to adopt a strategy to address homelessness even though a majority of the participants in the public workshops expressed concerns about this issue and offered assistance by directing staff and consultants to resources. Instead, the city continues to state "...homeless and transient persons are observed traveling through the City.' The City requested information on the number of children enrolled in the Newport-Mesa United School District and did not investigate why the number was about 113 of the number in 2003 -2004. As this is counterintuitive, there should have been follow -up questions and research. All of the agencies serving homeless in the area are reporting substantial increases in requests for assistance. The Kennedy Commission looks forward to working in partnership with the City to create solutions and achieve our mutual goals of expanding affordable housing Opportunities for local residents. In the process, we also welcome the opportunity to work more closely with city staff to help lower some of the above - mentioned barriers that have prevented new construction affordable housing development. In conclusion, given the importance of the General Plan Housing Element to address the current and future housing needs of Newport Beach residents, the Kennedy Commission would welcome the opportunity to have further dialogue on how we can work with the City to ensure that the Element includes specific policies that will result in a meaningful portion of the new housing production being affordable to extremely low, very low and low- income households. Sincerely, Cesar Covarrubias Senior Project Manager Cc: Mr. David Lepo Mr. Gregg Ramirez 811;2008 page 5 of 5 So Hand DdbXUfl PUBLIC 40 LAWCENTER PROVIDING ACCESS TO JUSTICE FOR ORANGE COUNTY'S LOW INCOME RESIDENTS June 19.2008 Mr. Robert Hawkins. Chairman Planning Commission CITY OF NEWPORT BEACH 3300 Newport Boulevard Newport Beach. CA 92659.8915 Re; Draft Housing Element, May 2008 Dear I& Hawkins: The Public Law Center (PLC) is a not - for -profit organization that provides legal services to low- income individuals and community -based organizations in Orange County. Some of its clients are low - income residents who either live andkor work in the Newport Beach community, and service organizations that serve said community. PLC submits these comments on behalf of PLC individual and organizational clients that could be adversely impacted as a result of the Housing Element Update of the City of Newport Beach. PLC is also in full support of and m- states the extensive written comments to the City from the Kennedy Commission, dated June 18. 2008. In particular. this office agrees with the Kennedy Commission regarding additional work which needs to be done by the City for compliance with its duties set forth under SB 2 (amending Sections 65582, 65583 and 65589.5 of the state Government Code). The thrust of this legislation is premised upon an accurate determination of homelessness and other special needs housing. The new legislation for cities mandates that this become a part of `their planning Proms." The standard, professional planning process envisioned in the legislation would require much more than basing planning on homeless and transient persons "observed traveling through" the City. Clearly. more needs do be done- Careful reading of SB 2 would be advisable for appropriate planning by the City. As further effort is obviously needed, please we a recent HCD letter to Planning Directors and Interested Parries. dared May7. 2008, and available on the HCD websfre. which explains SB 2, its requirements and its role in local planning at length. The City's approach to SB 2 requirements indicates a half - hearted effort at compliance with SB 2 and, thus. in fact non - compliance with the legislation as well as revealing an apparent disregard for the needs and welfare of those individuals contemplated udder SB 2. The City should also bear in mind that SB 2 speaks of the need for "residential substance abuse and mental health services" within shelters for homeless and other individuals. When asked in a recent workshop if such funding has been provided as needed for these individuals, staff promptly replied gfirmatively, explaining that federal CDBG funds were being used in part for those services. Yet. as understood, when asked subsequent to the workshop by another community representative how CDBG funds are being used by the City, staff replied that It did nor know. Direct experience of personnel from this office in the public workshops conducted by staff has revealed an unreliable pattern of representations and information upon which to base meaningful and effective public participation in the housing element process. As such, the City has fallen short of the obligation to provide the opportunities for and consideration of public participation in the development of its housing element which are required by section 65583(c)(7) of the Government Code. 601 Civic Center Drive West • Santa Ana, CA 9270141102 • (714) 541 -1010 • Fax (714) 541 -S1S7 �� As you know, the City must make the requited "diligent effort to achieve public participation of all economic segments of the community in the development of (its) housing element." The provisions of section 65583(c)(7) are preceded in the statue by the word "shall' meaning the statutory language is directive and mandatory for jurisdictions preparing a housing element. Thus, failing to provide reliable information and data in the housing element process to create meaningful public participation and dialogue on planning issues is fatal to the process. It undermines the empirical and analytic base forthe proffered housing element, rendering it non-certifiable. One glaring example of misinformation for public dialogue and involvement is the representation by staff at workshops that the curter housing element is in compliance even though the determination of the regulating authority HCD is one of non umpliawe. The misrepresentation is of major consequence since, as thoroughly reviewed in the Kennedy Commission letter, if determined to be non - compliant, the City must undertake a number of actions to rectify its existing status in order to properly formulate and proceed with its draft element. The kind of double speak offered by the City in this process erodes, degrades and renders meaningless the public dialogue, assessment and participation contemplated by state law in the housing element process. As the late urban theorist and New York Senator, Daniel Patrick Moynihan, once said: everyone May be entitled to his opinion but no one is amided to his own facts. In fact, the City has been determined to be out of compliance and should not make representations to the contrary in its public proceedings. In this light, the City must proceed vigorously and in a professional, straight - forward Manner to meet its obligations under applicable stare law. Based on the draft housing element submitted by the City, the incorrect representations made at housing element workshops, and faulty data base provided for public review, participation and dialogue, it has not made a legally compliant effort at public participation, given the directives of section 65583(c)(7), and given available guidatce through the HCD website. As a result, the draft housing element is presently inadequate and non-certifiable. If you have questions or wish to discuss the points raised in this letter, I can be reached directly at (714) 619 -9270 Thank you. Very truly yours,' PUBLIC LAW i BY: 114,,. t 1 cc: Cesar CdVarrubias, The Kennedy Commission 601 Civic Center Drive west • Santa Ana, CA 92701 -4002 • (714) 541 -1010 • Fax (714) 541 -5157 453 August 6, 2008 Response to Comment Letters Kennedy Commission 1. Post Performance on the 1998 -2005 Housing Element Comment The City of Newport Beach's 1998 -2005 and revised 2006 housing elements were found to be out of compliance with state housing element law (Article 10.6 of the CA Government Code). In particular, the elements lack sites available and appropriate for the development of homes for lower - income households. The elements also needed to be strengthened to provide specific policies and programs that would remove barriers and would encourage and facilitate the development of housing opportunities for lower- income families. The lack of progress on having an element in compliance with state law has prevented planning efforts and new opportunities to keep pace with the City's growing population and housing needs for lower- income families. During the 1998 -2005 planning period, the City added 3,157 new homes. This number exceeded the 476 unit regional allocation for the planning period; however the vast majority of these homes were only affordable to upper- income households. Only one senior community of 119 homes was developed to serve the low and very low- income segments. No deed restricted affordable homes were developed to meet the needs of extremely low—, very low—, and low- income families. Response The Newport Beach 2000 -2005 Housing Element was conditionally certified in 2003 and 2005. As mentioned at the June 11, 2008, Housing Element workshop, the 2000 -2005 Housing Element was certified by HCD on September 15, 2003, as being in conditional compliance with State housing element law. The conditional compliance is based on the City's development of affordable units on the Bayview Landing site and the rezoning of the Avocado /MacArthur site. A subsequent letter on June 20, 2005, indicates that the amended and adopted Housing Element remained in conditional compliance with rezoning of the Avocado /MacArthur site, or if that site is not feasible, an alternative site would be identified to accommodate the City's regional fair housing need for lower- income households. Since certification of the 2000 -2005 Housing Element, the Bayview Landing project was constructed, producing 119 units for lower- income senior households. Although the Avocado /MacArthur site was not rezoned, during this timeframe, the City's General Plan was updated. Through this process, significant new areas for future housing development were identified that included the re- designation of some commercial /office/industrial areas for residential or mixed residential /commercial uses. These key areas included the Airport Area and Newport Center as well as infill opportunities in West Newport Mesa, Mariners' Mile, and the Balboa Peninsula areas. These areas provide the opportunity for up to 3,550 -3,700 new housing units; a considerably larger capacity for new housing than was previously identified in the City's prior General Plan or within the 2000 -2005 Housing Element. As part of the General Plan update, the Housing Element was updated and adopted in 2006 to reflect new land use changes and updated demographics. This updated and amended Housing Element was submitted to HCD. In the HCD letter of September 10, 2007, HCD did not indicate that the City had Inadequate C>` August 6, 2008 sites to meet the RHNA, but required a greater explanation of the sites inventory and a broader discussion on land use controls and the zoning ordinance update. By 2007, the 2006 -2014 RHNA cycle had begun, the City decided to comprehensively update the 2008 -2014 Housing Element rather than focus on the prior RHNA period. Since adoption of the 2006 Housing Element, the City has adopted zoning regulations to implement the Newport Center housing opportunities (430 units), and is working with two property owners in the Airport Area on rezoning to implement those housing opportunities (minimum of 550 units). All of these developments has or will have affordable housing components, consistent with Housing Element programs. Neither the conditional compliance of the 2000 -2005 Housing Element nor the uncertified status of the 2006 Housing Element has "prevented planning efforts and new opportunities to keep pace with the City's growing population and housing needs for lower- income families." The total net housing constructed from 1998 to 2005 was 1,863 homes. (Table H40 was researched and updated by staff during review of this comment. The numbers in the response represent the updated data.) Comment #1 made by the Kennedy Commission is that the City added 3,157 new homes during the 1998 -2005 Housing Element (Table H40). While the City issued permits for 3,157 units this number does not include demolitions. These demolitions were mostly single - family and duplex units. The total net additional housing units produced from 1998 to 2005 was 1,863 units, of which 1,236 included the Bonita Canyon project which was later annexed into Newport Beach from the City of Irvine. Excluding Bonita Canyon, 627 net units were constructed within Newport Beach which included the 119 unit Bayview Landing project. This translates into 19 percent of all homes approved in the City were affordable to lower income households from 1998 to 2005. Approximately 17% of all units produced in the City since implementation of the inclusionary program have been affordable units. The City has had policies in effect since the mid- 1980's requiring the provision of affordable housing in association with all new residential developments where more than 4 units are proposed. In some cases, an in -lieu fee was assessed in place of requiring the production of new affordable units. Since 1984, 9,845 housing units have been built in the community. Approximately 4,298 of these units were part of the Newport Coast and Bonita Canyon projects that were annexed into the City after affordable housing agreements had been approved by other agencies. Approximately 17.3% (749) of the units produced in the City and under City regulation have been affordable units. Since 1997, the City has collected $3,116,898 in in -lieu fees that have been and will be used to facilitate the construction of additional affordable housing. Orange County Business Council has ranked Newport Beach as one of top cities in the County that that have produced workforce housing. Of important note, the Orange County Business Council recently released its 2007 Workforce Housing Scorecard; a comprehensive evaluation of the current and future state of Orange County's housing supply and demand. This study examines the past, present, and future of the County's housing by analyzing homes constructed, currently available and planned from 1991 -2030. Newport Beach was among the study's top five performing cities in Orange County that have created new jobs and the necessary supply of homes to serve the related workforce, both currently and in the future. Newport Beach's high rank was the result of a high score in the following four areas: 1. Number of jobs— Promotion of job growth 2 5 b August 6, 2008 2. Housing unit density —The study rewards cities with inclusionary housing policies and penalizes cities that are less hospitable 3 Housing growth— Promotion of housing growth 4. Jobs to Housing Ratio —The study rewards cities for past balanced jobs /housing growth, in addition to plans for the future 2. Newport Needs to Carry Over Past Planning Period Shortfall Comment Consistent with California Government Code Section 65584.09 the City should, within the first year of the planning period of the new housing element, zone or rezone adequate sites to accommodate the un- accommodated need of the regional housing need allocation (RHNA) from the prior planning period. This would be in addition to any zoning or rezoning required to accommodate the jurisdiction's share of the regional housing need pursuant to Section 65584 for the new (2006- 2014) planning period. The draft should identify a strategy to address the past very loxes and moderate- income unaccommodated need and a rezoning program. Newport Beach had a conditional compliance and did not complete the rezone program to address shortfall in sites for very low , low -, and moderate - income households in the 1998 -2005 Element. Response HCD has not determined that the City will need to carry over its shortfall from the previous Housing Element cycle. As mentioned in Comment #1, the Newport Beach 1998 -2005 Housing Element was conditionally certified by HCD in 2003 and in 2005, dependent on the construction of affordable housing on the Bayview Landing site and the rezoning of the Avocado /MacArthur site or the identification of an alternative site to accommodate the City's regional fair housing need for lower- income households. Although the Avocado /MacArthur site was not rezoned, during this timeframe the City's General Plan was updated and through this process, a significant amount of new areas for future housing developed were identified that included the re- designation of some commercial /office /industrial areas for residential or mixed residential /commercial uses including the Airport Area and Newport Center. Since adoption of the 2006 Housing Element, the City has adopted zoning regulations to implement the Newport Center housing opportunities (430 units), and is working with two property owners in the Airport Area on rezoning to implement those housing opportunities (nearly 1,000 units). In order to allow projects to proceed during the interim period while the Zoning Code is being rewritten, the Newport Beach City Council adopted, by resolution on January 9th 2007, a procedure for the review of projects that are consistent with the General Plan but not with the existing Zoning Code. Additionally, the use of the Planned Community Zoning District remains a viable option for developers proposing projects in the Airport Area. Discussions with HCD have not provided a definitive answer on whether the City needs to carry over the shortfall for the 1998 -2005 RHNA period. 3 G, August 6, 2008 3. Inventory of Land Suitable for Residential Development Comment Government Code Section 65583 (a) (3) requires local governments to prepare an inventory of land suitable for residential development, including vacant land, potential redevelopment sites and an analysis of the relationship of zoning and public facilities and services to these sites. An analysis of the sites inventory demonstrates that the City will have a shortfall of sites appropriately zoned to meet the housing needs for extremely low—, very low—, and low- income households. The draft identifies some underutilized land and proposed mixed -used zoned sites as potential housing opportunity sites. Most of the sites identified in the inventory are not zoned at multifamily densities or have the development standards that would encourage and facilitate affordable homes for lower- income families (minimum 30 homes per acre). Where the inventory reveals insufficient sites to accommodate the housing needs of all income levels, the program section must provide sufficient sites, developable "by- right" at multifamily densities, to provide 100% of the shortfall of sites necessary to accommodate the remaining housing need for very low and low- income households (CA Government Code Section 65583(c) (1) (A)). At least 50910 of the very low- income housing need shall be accommodated on sites designated for residential uses and for which nonresidential uses or mixed -uses are not permitted (CA Government Code Section 65583.2(h)). The very low— income remaining RHNA allocation from the prior planning period is 62 and the current allocation is 392. We believe the identified sites and required strategies are inadequate to encourage and facilitate affordable home development for the lower- income segments. The September 10, 2007 letter from the State Department of Housing and Community Development (HCD) to Newport Beach states: "according to the revised element, the John Wayne Airport and Newport Center areas offer the greatest residential development potential during the remainder of the planning period (1995- 2006).... the element must demonstrate these strategies are realistic and viable ... As the only strategy proposed in the 2006 -2014 Draft Housing Element, the Affordable Housing Implementation Policy "AHIP" program is inadequate. During the 1995 -2006 period, homes were not produced under this program to fully meet the RHNA requirements for very low and moderate- income residents. Of the 3,157 homes permitted, only 119 were affordable to low- and very low — income residents. These homes are all in one age- restricted, offordoble apartment community, Boyview Landing. In Newport Center, all the 450 new homes allowed under the General Plan have been approved. Although the Irvine Company's Planned Community Development Plan received City Council approval for o maximum of 430 new homes and included the required Affordable Housing Implementation Plan (AHIP), the net gain of affordable homes in Newport Beach may be zero. No new affordable homes will be included in the new Planned Community in Newport Center; the entire affordable requirement will be accomplished by deed restricting scattered apartments in existing communities and possibly some of the homes within.o new (maximum 14 home) apartment community that may be built outside of Newport Center. At the some time, deed restrictions on 46 apartments in the some existing communities will expire in 2010 -2011. On December 17, 2007, the City Council voted to limit the ratio of affordable homes to market rote homes under the AHIP for the new (maximum 14 amirVVI August b, 2008 home) apartment building to 50 %. This limitation may constrain the financing such that the development will not be feasible. The Draft Housing Element states that "In addition, there are 79 units approved with the Santa Barbara Condominium project within Newport Center that includes 16 affordable low and moderate- income housing units." In fact, the units are in existing older apartment buildings in another area of Newport Beach with all electric utilities, according to one developer who has seen the apartments. On page 5 -16 of the Draft Housing element the number of affordable apartments is described as 12; on page 5 -46, the number is 16. The developer (Lennar) who intended to build the 79 condominiums has assigned their interest in the property to another developer. Further, the Draft Housing Element states: "Another private land owner in the Newport Center area is presently in discussion with the City to develop a 30 -unit multi - family rental and condominivm project... that would be subject to the City's in -lieu fee program." The City's in -lieu fee program is being revised and is not included with the Draft Housing Element for analysis of the adequacy of it. The Airport Area has the only other sites that may be zoned at densities sufficient to accommodate lower- income RHNA requirement (more than 30 vnitsfacre); however, as the new zoning code is not available it is unclear if any of the sites will be zoned 100% residential. In addition, there is a constraint that residential villages must "contain a minimum of ten contiguous acres centered on a neighborhood park and otheromenities." Thy same letter from HCD to Newport Beach requests "An indication whether redevelopment, recycling, or intensification of a site would require lot consolidation to allow additional residential development'. In reviewing the 2006 -2014 Draft Housing Element sites inventory, Appendix H4, of the 98 sites listed only three contain more than ten acres. In fact, 47 of the 98 sites listed are less than one acre, making assemblage of those parcels highly unlikely. In the same letter, there was a request for expanded site identification: "Given that most of the sites listed in Appendix H5 are developed with existing uses, the element must be expanded to describe the condition and age of existing development and describe the realistic potential for these uses to be discontinued and replaced with housing this planning period." Appendix H4 is essentially a "data dump." We are unable to locate the requested expanded descriptions of the sites. Additional analysis on site feasibility is needed to evaluate the viability of these sites for lower income housing opportunities. Response The proposed Housing Element contains sufficient adequate sites for construction of its reMaining RHNA allocation of 1,323 units. The City has sufficient sites to address the 2006- 2014 RHNA based upon the updated General plan which provides the opportunity for between 3,558 and 3,758 housing units in areas of the City not previously zoned to allow residential development. As a built out City, new housing built in the City will be constructed on the limited remaining vacant land in the City, or as inf ill in areas that the City has targeted and will promote for housing including Newport Center and the Airport Area, as well as scattered sites throughout the community including Mariners Milt-, Newport Mesa, and the Balboa Peninsula. This infill strategy is one that HCD staff encouraged the City to adopt for the 2000 -2005 Housing Element, although with regard to outdated strip shopping centers, which the City did not have. Based on the General Plan update, th@ City has chosen this strategy to provide f=acssisag apportunitiys in August 6, 2008 mixed use areas that can be converted to residential use or used more efficiently with the addition of residential development. Housing sites are identified in Table H34 which lists the sites and the potential development capacity, as well as the density at which these sites may be developed. These densities range from 18 -50 du/acre or are regulated by floor area ratios (FAR) which does not limit density, but rather are governed by a maximum dwelling unit capacity for the area as specified in the General Plan and included in Table H34 as well. Based on HCD's comments on the City's 2006 Housing Element, which includes the same potential residential sites, the City is confident that this site inventory and corresponding densities, along with the variety of programs and incentives designed to require, support and facilitate affordable housing production, can accommodate not only the City's overall RHNA, but its affordable targets as well. Newport Center The North Newport Center Planned Community Development Plan was approved by the City in December 2007. This Plan includes 430 dwelling units and an Affordable Housing Implementation Plan (AHIP), a required component of the City's existing inclusionary program requirements. To meet the affordability requirements for lower income households within the AHIP, the North Newport Center Planned community AHIP provides two options. A 0.75 acre site on San Miguel Avenue near San Joaquin Hills Road could be developed with 14 new units, with a 35% density bonus for affordable housing. In addition, the applicant (The Irvine Company) owns the Bays apartment complex that are within walking distance of Newport Center. In order to fully meet the inclusionary program requirements of 15 %, The Irvine Company will provide affordability covenants for 43 to 86 existing units, depending on the income level served and whether 14 new units are developed at the San Miguel site. Although not all the affordable units in this AHIP will be newly constructed, the AHIP will provide newly affordable units that the City would not otherwise have the authority to restrict as affordable for 30 years. The 79unit Santa Barbara Condominium project within Newport Center is required to provide 12 off -site units that are affordable to moderate - income households. The units must be rehabilitated to provide viable affordable housing for a period of 30 years. As with the North Newport Center AHIP, these units have no affordability restrictions today, and will be additions to Newport Beach's affordable housing stock. !n -Lieu Fee Prosrram The in -lieu fee program in the Housing Element is not changed from what was in the 2000 -2005 and 2006 elements. A study to validate and update the amount of the fee is being done, and an ordinance is being drafted to formalize the program and protect it from challenges from developers on the basis of nexus or unsubstantiated costs. While this work is important for the continued implementation of this program, the program has been implemented without an ordinance since 1997, and the City has collected $3,116,898 in affordable housing in -lieu fees since that time. 6 \j IQ August 6, 2008 art Area The General Plan identifies this Area as one of the greatest opportunities in the community to create new residential neighborhoods, including workforce housing, through the replacement of existing uses and new construction on underutilized properties and surface parking lots. For the purposes of determining a realistic level of potential redevelopment, existing uses were surveyed and properties determined to be underutilized and subject to conversion were identified. As part of the General Plan update, the Airport Area was studied intensively. A concept diagram was created by ROMA Design Group (Figure H2) to identify the most feasible locations where infill housing would be developed. The areas included in this diagram were based on the characteristics of the land use (underperforming, low -rise commercial, surface parking lots) and reflect the properties in this area likely to be redeveloped. Additionally, the owners of a number of properties in this area approached the City and expressed interest in redeveloping these sites for housing and participated in the study and plan development. Based on this analysis, the interest expressed by property owners, areas considered highly suitable for change are depicted on Figure H2, which depicts a series of clustered residential "villages." Potential housing units include a mix of building types ranging from townhomes to high -rises to accommodate a variety of household types and incomes. Since adoption of the General Plan in 2006, the City has continued to work with property owners interested in residential development. Owners of two significant sites in the "Conceptual Development Plan" subarea have filed applications to rezone their properties for residential development of nearly 1,000 units, and the City is actively involved in review and refinement of their plans. Affordable housing as required by the Housing Element's inclusionary program will be components of these developments. ADoendix H4 Appendix H4 is a required component of State housing law, and the City included Appendix H4 per HCD's request. HCD also required additional description on the sites that were also added to the Housing Element's site discussion. 4. Lack of Strong Policies Comment A. Zoning is not updated to facilitate densities sufficient to accommodate lower- income RHNA requirements. Response A comprehensive rewrite of the Zoning Code is in process to implement the comprehensive update of the General Plan approved in 2006, and will be completed in 2008. During the interim period before the new Zoning Code is adopted, the City Council has adopted procedures for zone changes on individual properties to bring them into consistency with the General Plan. The sites for 2,650 of the new residential units allowed under the 2006 General Plan are not governed by the City's Zoning Code, but by specialized "Planned Community (PC) Development Plans" developed for each area. The City has already approved a PC Development Plan that 7 J August 6, 2008 establishes zoning to allow 430 new units in Newport Center. Newport Center residential development is controlled by an absolute number of units, not density. The new residential development is expected to be at a similar density to existing residential development in the area, which is 35 to 40 units per acre. Applications are on file for the two largest properties in the Airport Area, Conexant and Koll Center Newport, which would allow nearly 1,000 new units at densities ranging from 30 to 50 units per acre, as required by the Land Use Element. Residential development in both Newport Center and the Airport Area will be at the default density to facilitate affordable housing for lower- income families for Newport Beach. In addition, within infill areas identified in the Housing Element such as West Newport Mesa, the Peninsula and Balboa Island, residential uses are permitted under current zoning. Comment B. Program 2.2.1 (AHIP) has failed to provide the target percentage of affordability: 1. The program remains a policy, not an ordinance and there is no set date for adopting the ordinance. Response Program 2.2.1 is an inclusionary housing requirement that has been included in Newport Beach's Housing Element since 1997. Resulting from this program, approximately 19% of all homes approved in the City were affordable to lower income households from 1998 to 2005. In addition, since 1997, the City has collected $3,116,898, in -lieu fees that have been and will be used to facilitate the construction of additional affordable housing. Please see response under Comment 1 for a more detailed discussion or program results. The Affordable Housing Implementation Plan (AHIP) is not the focus of Program 2.2.1. The purpose of the program is to require new developers of market rate housing to provide an average of 15% of the units as affordable to lower income households. The AHIP is a tool to implement the program for larger projects. Adoption of the Affordable Housing Ordinance has been identified as a specific program, not a policy and includes a timeframe for implementation. As described in Program 2.2.1, the City of Newport Beach is in the process of developing an Affordable Housing Ordinance to formalize implementation of the City's Inclusionary Program described in program 2.2 and protect it from challenges from developers on the basis of nexus or unsubstantiated costs. The City has retained c consultant to determine the appropriate levels of in -lieu fees based on market conditions, income level of the unit, and to review the existing inclusionary requirements. The Ordinance will include specific details on the Inclusionary requirements and will be adopted in 2008. While this work is important for the continued implementation of this program, the program has been implemented without an ordinance since 1997, and the City has collected $3,116,898 in affordable housing in- lieu fees since that time. In the interim, the City implements the Inclusionary Program through discretionary approvals, as it has since 1997. To ensure compliance with the 15 percent affordability requirements, the City includes conditions in the approval of discretionary permits and Tentative Tract Maps. August 6, 2008 Comment 2. In the 1995 -2006 period, 3,157 permits were issued and 119 affordable homes were built. Response (Refer to discussion under Comment 1.) Comment 3. Of the approximately 500 new homes planned and approved in Newport Center, a maximum of seven new affordable homes will be added to the housing stock =1.4% Response [Refer to discussion related to Newport Center under Comment #3.1 Comment 4. The in -lieu fee is in the process of being updated and there is no set date for determining the new fee. Response (Refer to discussion under Comment 4.B.1) 5. Lack of Compliance with SB2 requirements Comment The City has failed to identify any site which may be appropriately zoned as required by SB 2 Response The comprehensive rewrite of the Zoning Code that is in process will address 5B 2 requirements, and allow emergency shelters as required. As per SB 2 requirements and discussions with HCD staff, (Janet Myles), the City must include programs) to address the requirements of SB2 for emergency shelters and these must be implemented within one year of adoption of the Housing Element. Programs should consist of a specific action the locality will take to implement its policies, include a specific timeframe for the implementation and identify the agencies or officials responsible for implementation. The specific zone or site does not need to be identified within the Housing Element at this time. The program to address the Zoning requirement of SB 2 is contained within Program 5.1.6. Housing Program 5.1.6: As part of the City's comprehensive revision to the Zoning Ordinance in 2008, the City will comply with the provisions of SB 2. Specifically, the City will identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use permit or other discretionary permit. 9 �� August 6, 2008 As per direction provided by a recent conversation with HCD, Housing Program 5.1.6 addresses the requirements of SB 2, by including a specific action, responsibility and includes a time frame (within the end of the year; a six month period). Comment Inconclusive date regarding the number of children enrolled in Newport -Mesa Unified School District Response The City has received updated homeless data for incorporation into the Housing Element. According to the Orange County Department of Education, the number of homeless children and youth enrolled in public school in FY 2006/07 was 107 and was 115 in FY 2006 /05. This is a substantial decrease from 297 enrolled in 2004/03. Follow up discussion with Newport Mesa School District (Jane Garland) indicates that this decrease is a result of a change in enumeration methodology. In 2004/03 the School District used a much broader spectrum of counting homeless children and youth and included students living in shelters, on the street, in motels and those that are doubled - up and tripled -up (living in overcrowded conditions). Since 2005, the School District does not count doubled -up and tripled -up children living in households since this is more of an indicator of overcrowded living conditions and, in some cases, is a cultural phenomenon. Since 2005, the District enumerates homeless children /youth as those that are living on the street, within shelters and within motels. According to the District, of the 107 children identified in 2006/07, the vast majority live in the City of Costa Mesa and only a handful (5 -10) are within Newport Beach. Public Law Center Comment Lack of Sufficient Public Outreach Response The City has complied with the letter and the intent of State law for public outreach. The City has made substantial effort to receive public input as part of the Housing Element update, including hosting three workshops that included two public workshops (March 31 It and June 11th 2008) and a housing workshop specifically for housing service providers (March 311t, 2008). These workshops provided an opportunity for the residents, service providers and developers to provide comments on housing issues and the Draft Housing Element document before the public hearing process and before the Final Housing Element is submitted to HCD. This process helps to provide the City with information and an opportunity to provide better refinement on housing element information and programs. Specifically, on Mardi 31, 2008, two specialized workshops were held: one workshop was specifically targeted for the development community. This workshop was held in the afternoon for housing developers to learn about the existing residential development opportunities and incentives that the City offers to facilitate affordable housing. The second workshop, held later that day, was targeted to housing service providers and the general public. Workshop attendees 10 �\.\ August 6, 2008 were asked to comment on the existing needs and issues as well as provide feedback for the development of new housing programs. An additional housing workshop was held on June 11, 2008. The Workshop provided an opportunity for service providers, the public, and various agencies to provide comments on the Draft Housing Element. Invitations were sent out to service providers and developers (Appendix H1 within the Housing Element contains the mailing list) and a notice of the workshop was advertised in the Daily Pilot. Copies of the draft Housing Element were made available on the City's website and at the Planning Department Counter. It is important to note that these opportunities for public input were in addition to the substantial amount of outreach conducted as part of the recently completed General Plan update which was the result of more than jour years of work by the 38- member citizens General Plan Advisory Committee (GPAC), City staff, technical consultants, Planning Commission, City Council as well as input by thousands of residents that were received during the most extensive public outreach and visioning campaign in the City's history. The 2008 -2014 Housing Element reflects the vision and principles for future land use and housing development that were developed as part of the General Plan process. The City continues to welcome public input on Draft Housing Element and appreciates the opportunity to address any questions or concerns from the public. Comment: The City has not addressed SB 2 Requirements Response The City has included all available homeless data as required by SB 2. The regional nature of the homelessness problem makes it challenging for Newport Beach to define and serve its fair share of the homeless population. Nevertheless, the City is committed to defining its homeless population and complying with the regulations of SB 2. With a population of 84,000 residents within the County. of Orange —a County with 3 million people and 34 municipalities— Newport Beach does not control either the movement of homeless people across its boundaries or the county -level resources that are needed to help people leave homelessness. SB 2 requires an analysis of homeless persons and their families including the average number of persons lacking shelter and wherever possible, the characteristics of these needs. As local data permits, a description of homeless population that is mentally ill, developmentally disabled, substance abusers, and victims of domestic violence, runaway and other homeless subpopulations will be included. HCD does not specify how this data is to be collected, only that it should be included if data is available The County of Orange prepared a Homeless Needs Assessment as part of the County of Orange Consolidated Plan. The Needs Assessment estimated that there were 35,065 persons homeless in the County. This data did not provide information on homelessness per City. The 2000 Census also did not identify any homeless persons in the City. As part of the Draft 2008 -2014 Housing Element, several service agencies and the Newport Beach Police Department were contacted to help ascertain the extent and need of the homeless population in Newport Beach. 11 � August 6, 2008 Key statistics on homelessness in Newport Beach are as follows: • According to the Newport Beach Police Department, approximately 5 to 15 homeless individuals are visible within the community. The majority of this population is single males. Although the Police Department does not keep specific statistics, during the warmer summer months, there tends to be a higher number of homeless people around the beach areas. • According to the Orange County Client Management Information System Year End progress report, of the 3,187 unduplicated homeless and at -risk clients served by Orange County programs, 17 listed Newport Beach as their last know address. • Families Forward, a local homeless and at -risk service provider, estimates that of the 2,500 persons annually served in south Orange County, between 150 to 200 persons that request assistance are from Newport Beach. • Human Options, which provides housing and services for women and children in Orange County that deal with the effects of domestic violence, estimates that of the 2,000 persons per year that receive housing and counseling services, about 40 to 45 are from Newport Beach. • Serving People In Need (SPIN) operates a Substance Abuse Recovery Program (SARP) that provides access to recovery programs to homeless and low- income individuals. SPIN serves between 6 and 12 individuals with substance abuse issues each year from Newport Beach. However, the number of homeless individuals with substance abuse issues in Newport Beach is likely to be larger. SPIN representatives indicate approximately 90 percent of homeless individuals have a substance abuse issue either involving alcohol or drugs. • Additional information was provided by Colette's Children's Home (CCH) which provides shelter for homeless women and children throughout Orange County. CCH indicates that approximately 20 requests have originated from women and children in Newport Beach • According to the Orange County Department of Education, which collects data on the number of youth and homeless children in Orange County, of the 13,130 homeless children enrolled in public school in Orange County in 200607, 107 were enrolled in the Newport- Mesa Unified School District, which serves Newport Beach and Costa Mesa. Discussion with the Newport-Mesa School District indicates that only a small portion of these students are enrolled in Newport Beach schools (less than 15). Conversations with local service providers indicate that, while the number of homeless in the City is difficult to quantify, there is a growing number of "at- risk" individuals that are having trouble meeting rising rental and mortgage prices. These persons are not homeless but have difficulty finding and affording housing in Newport Beach. These include senior households that require help with one -time rental assistance or singles and families that live within the City. Due to the recent recession in the mortgage and building industry, there are a growing number of individuals that have lost their jobs or have had a reduction in employment hours and have difficulty making their mortgage payments and other bills. These individuals often request financial or service assistance.i 2 No emergency shelters or transitional homeless facilities are located within the community. However, a number of homeless facilities are located in nearby communities. These facilities are listed also within Appendix H2. The City will also identify appropriate zone(s) within the community where homeless and transitional housing are permitted as per SB 2 requirements Serving People in Need (SPIN). Personal Communication. April 2008. Families Forward: Transitional Housing Program. Personal Communication. April 2008. 12 \�� August 6, 2008 On an annual basis, the City supports agencies that provide supportive services, emergency shelter, and transitional and permanent supportive housing beds to Newport Beach's homeless and at -risk populations. (Appendix H2). Comment: Need to Address Residential Substance Abuse and Use of CDBG Funds Response The City currently funds substance abuse programs using CDBG funds. Each year the City receives federal Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). These funds are used to benefit the low- and moderate - income and special needs residents in the City. For many years, the City has provided CDBG funds to SPIN (Serving People in Need). Key services of SPIN include • Substance Abuse Treatment and Rehabilitation • Case Management • Providing access to permanent housing • Providing support services for families with children leaving long -term shelter programs which enable families to become self- sufficient. As described in the City's 200708 Action Plan, the City will be providing CDBG funding to the SPIN Substance Abuse Recovery Program (SARP) that provides access to recovery programs to homeless and low- income individuals. The program includes room and board, counseling, and supplemental services focused on employment, medical assistance, and legal assistance. Funds will be used for case management, shelter costs, and operational costs. Other programs that will be receiving CDBG funds from the City in the 200708 fiscal year include Human Options, South County Senior Services, Families Forward, and the Fair Housing Council of Orange County. These agencies are described in further detail in Appendix H2 of the draft Housing Element. Housing Program 5.1.1 identifies the City's commitment to continue assisting service providers that provide shelter and other services for the homeless with CDBG funds. Since the Housing Element is a long -range policy document, the City requires a certain degree of flexibility as to which service providers receive CDBG funds annually. In addition, the long -term certainty of the City's allocation of federal CDBG funds is outside the City's control. Therefore, the Housing Element does not identify specific service providers and related activities that will be receiving CDBG funding over the entire 2008 -2014 planning period. Historically, the City has used the maximum 15% of the grant allowed for public services. Although the provision of fair housing services could be funded under the public service program as well, Newport Beach funds that service from its grant administration budget, preserving the maximum funding possible for public services. Every fiscal year, the City prepares an Action Plan that is provided to HUD and describes the services and funding allocations that will be taking place over the fiscal year. Annually, the City publishes a Notice of Funding Availability for applications and publishes notices for public review of the Action Plan and related City Council hearings. 13 0 1 August 6, 2008 Comment: Incorrect Information Regarding the Prior Housing Element Certification Response See Kennedy Commission responses 1 and 2. 14 � VO City of Newport Beach GENERAL PLAN HOUSING ELEMENT Public Review Draft Mcw-Au ust 2008 Contents CHAPTER5 Housing Element ............................................................ ............................5 -1 ExecutiveSummary .................................................................... ............................5 -2 Purpose and Statutory Authority ......................5 -3 Constraints and Opportunities ........................................... ............................5 -4 Focus of Housing Programs ................................................ ............................5 -4 Time Period Covered by the Housing Element ............... ............................5 -4 Introduction................................................................................. ............................5 -4 DataSources ........................................................................ ............................5 -5 Organization of the Housing Element .............................. ............................5 -6 Review and Update of the Housing Element ................. ............................5 -6 PublicParticipation ............................................................. ............................5 -6 Community Housing Market Analyses .................................... ............................5 -8 Housing Stock Characteristics ........................................... ............................5 -8 Residential Growth and Dwelling Unit Types ........... ............................... 5-8 Residential Densities .................................................... ............................... 5-9 HousingTenure .......................................................... ............................... 5 -10 Condominium Conversion Ordinance .................. ............................... 5 -13 VacancyRates .............................................................. ...........................5 -14 HousingCondition ..................................................... ............................... 5 -14 Illegal Dwelling Units .................................................. ............................... 5 -15 MobileHomes ............................................................ ............................... 5-15 Assisted Housing Stock .............................................. ............................... 5-17 Assisted Housing Stock at Risk ................................. ............................... 5 -17 Preservation and Replacement Options ............... ............................... 5 -19 Resources for Preservation ....................................... ............................... 5 -20 Administrative Resources ........................................... ............................... 5 -21 Population and housing Projections ................ ........................................... 5 -21 PopulationTrends ................................ ............................... ...........................5 -22 Household Characteristics ................................................ ...........................5 -25 Ethnicity....................................................................... ............................... 5-25 Household Incomes ...................................................... ...........................5 -27 Income by Household Type and Tenure .................. ............................... 5 -27 HousingCosts ............................................................. ............................... 5 -28 Housing Sales Prices .................................................... ............................... 5 -28 RentalCosts ............................................................... ............................... 5-29 Housing Affordability ................................................. ............................... 5-30 Overcrowding............................................................ ............................... 5 -31 Employment Trends and Projections .............. ................. ........................... 5 -32 Summary..................................................................... ............................... 5 -33 Special Needs Population Groups ................................... ...........................5 -33 Persons with Disabilities ............................................. ............................... 5 -34 Female Head of Household .................................... ............................... 5 -34 Elderly.......................................................................... ............................... 5 -34 LargeHouseholds ...................................................... ............................... 5-36 Homelessness............................................................. ............................... 5 -36 CountyInformation.. ... ... ..... .......... .......................................................... 5 -37 LocalNeed ...................................................................... ...........................5 -39 Newport Beach General Plan Housing Element FarmWorkers .................................................................. ...........................5 -42 HousingNeeds .................................................................... ...........................5 -42 RHNAAllocation, ...................................................................................... 5-42 Inventory of Land Suitable for Residential Development .................. 5-42 John Wayne Airport Area ........................................ ............................... 5-44 NewportCenter ........................................................ ............................... 5 -50 BanningRanch .......................................................... ............................... 5 -53 Balboa Peninsula Area ............................................. ............................... 5-54 CanneryVillage ............................................................... ...........................5 -54 LidoVillage ................ ............ ...................................................................... 5 -54 BalboaVill age ............ .. ............................................................................... 5 -61 McFaddenSquare .......................................................... ...........................5 -61 Mariners' Mile ............................................................. ............................... 5 -61 Coronadel Mar ......................................................... ............................... 5-62 WestNewport Mesa ................................................. ............................... 5-67 Energy Conservation Opportunities ....................... ............................... 5 -67 Nongovernmental Constraints ......................................... ...........................5 -68 Community Attitudes ................................................ ............................... 5 -68 Financing Constraints ................................................... ...........................5 -68 Land and Construction Costs .................................. ............................... 5 -73 Infrastructure Constraints ......................................... ............................... 5 -73 Environmental Constraints ........................................... ...........................5 -74 Governmental Constraints ................................................ ...........................5 -74 Voter Initiative: Section 423 of the City Charter ... ............................... 5-74 Zoning.......................................................................... ............................... 5 -76 SpecialNeeds Housing ............................................. ............................... 5-77 GroupHomes ................................................................... ...........................5 -77 Accessory Dwelling Units .......................................... ............................... 5 -77 Emergency and Transitional Housing ........................................ ............... 5 -77 Zoning Code Consistency and Interim Development Review Process..................................................................... ............................... 5-78 Interim Study Overlay ...................................................... ...........................5 -78 Planned Community District Revisions ........................... ...........................5 -80 The Subdivision Process ............................................ ............................... 5-80 Local Coastal Program ............................................ ............................... 5-80 Building Codes and Enforcement .......................... ............................... 5-81 ImpactFees ............................................................... ............................... 5-82 Development Review Process ................................ ............................... 5-83 Modification Permits ..................................................... ...........................5 -83 UsePermit ................................................................... ............................... 5-83 Request for Hardship or Request for Alternative Materials, Design, and Methods of Construction ................ ............................... 5-84 California Environmental Quality Act ............................. ...........................5 -84 Housing Plan: Goals, Policies, Quantified Objectives, and Programs........ 5 -84 General Review of 2000 -2005 Housing Element and Housing Activities..................................................................... ............................... 5 -85 Housing Bement Coastal Zone Review ................. ............................... 5-97 Year 2008 -2014 Housing Plan ........................................... ...........................5 -98 Quantified Objectives .............................................. ............................... 5 -98 Newport Beach Housing Element: Goals, Policies, and Programs. 5 -100 Conservation and Improvement of Housing .................. ..........................5.101 Variety of Housing Opportunities ..... ............................... ..........................5.102 Adequate Residential Sites .......................................... ..............................5 -105 Mewport Beach General Plan Housinq Element Provision and Preservation of Affordable Housing ..... ..............................5 -107 Housing for Special Needs Groups ............................. ..............................5 -109 FairHousing ................................................................... ..............................5 -110 ProgramMonitoring ...................................................... ..............................5 -111 Appendices Appendix Hl Special Housing Workshops Mailing List (March 31, 2008) ..............................5 -112 Appendix H2 Agencies Providing Emergency Shelter and Housing Assistance ..................5 -114 Appendix H3 Public and Private Resources Available for Housing and Community Development Activities ........................................................... ..............................5 -120 Appendix H4 Housing Site Locations ............................................................. ..............................5 -124 Figures FigureH 1 Airport Area ................................................................................... ...........................5 -45 Figure H2 Airport Area -ROMA Diagram ...................................................... ...........................5 -47 Figure H3 Newport Center /Fashion Island .................................................. ...........................5 -51 FigureH4 Banning Ranch .............................................................................. ...........................5 -55 Figure H5 Balboa Peninsula Lido Village /Cannery Village /McFadden Square ..............5 -57 FigureH6 Balboa Village ............................................................................... ...........................5 -59 FigureH7 Lido Village ..................................................................................... ...........................5 -63 FigureH8 Mariners' Mile ................................................................................. ...........................5 -65 FigureH9 Corona del Mar ............................................................................. ...........................5 -69 FigureH 10 West Newport Mesa ...................................... ............................... ...........................5 -71 Tables Table H I Net Additional and Total Housing Units, 1980 -2007 ................. ............................5 -9 Table H2 Housing Unit Mix (2007) ................................................................. ............................5 -9 Table H3 Residential Density by Area ......................................................... ...........................5 -10 Table H4 Densities of Attached Housing ................................................... ...........................5 -11 TableH5 Housing Tenure .............................................................................. ...........................5 -11 Table H6 Percent of Renter Occupied Units ............................................. ...........................5 -12 Table H7 Major Rental Projects ................................................................... ...........................5 -12 Table H8 Condominium Conversion, 1995 - 2007 ...................................... ...........................5 -13 Table H9 Overall Housing Unit Vacancy Rate Newport Beach, 1980- 2007 ...................5 -14 Table H 10 City Rental Apartment Vacancy Comparison ........................ ...........................5 -14 Table H11 Mobile Home Parks ....................................................................... ...........................5 -16 Table H12 City of Newport Beach Assisted (and Affordable) Housing Summary ...........5 -18 Table H13 Annual Rent Subsidies Required to Preserve At -Risk Units ...... ...........................5 -20 Table H 14 Population Trends, 1980- 2007 ..................................................... ...........................5 -22 Table H15 Housing Trends, 1980- 2007 .......................................................... ...........................5 -22 Table H16 Population Growth, Orange County and Newport Beach, 1910- 2025 .......... 5 -23 Table H17 Persons per Occupied Unit, 1970 - 2000 ..................................... ...........................5 -24 Newport Beach General Plan Housina Element Table H18 Table H 19 Table H2O Table H21 Table H22 Table H23 Table H24 Table H25 Table H26 Table H27 Table H28 Table H29 Table H30 Table H31 Table H32 Table H33 Table H34 Table H35 Table H36 Table H37 Table H38 Table H39 Table H40 Table H41 Table H42 Table H43 Population by Age, City of Newport Beach, 1970- 2000 ........ ...........................5 -24 Population and Percent Change by Age Group, 2006 American Survey of Apartment Rental Listings in Newport Beach, 2007 .........................5 Community Survey City of Newport Beach ............................. ...........................5 -25 School Enrollment, 2006 ............................................................... ...........................5 -25 Racial and Ethnic Composition, Newport Beach and Orange County, Employment— Newport Beach and Orange County ............ ...........................5 2000 ............................................................................................. ............................... 5 -26 Racial and Ethnic Composition, Newport Coast, 2000 .......... ...........................5 -26 Racial and Ethnic Composition, Newport Beach and Orange County, Persons per Household ................................. ............................... ...........................5 2005 ............................................................................................. ............................... 5 -26 Median Household Incomes (1980- 2006), Orange County and Potential Residential Sites ............................................................ ...........................5 NewportBeach ............................................................................. ...........................5 -27 Household Income Profile by Household Type Newport Beach 2000 ............ 5-28 Single - Family and Condominium Home Sales, December 2007 .....................5 -29 Survey of Apartment Rental Listings in Newport Beach, 2007 .........................5 -29 MobileHome Parks ....................................................................... ...........................5 -30 Housing Affordability Orange County 2007 ............................. ...........................5 -31 Employment— Newport Beach and Orange County ............ ...........................5 -33 UCI Off - Campus Housing Office Housing Costs for Irvine, Newport Beach, and Surrounding Communities, 2006 .......................... ...........................5 -34 Persons per Household ................................. ............................... ...........................5 -36 Total Construction Need by Income, 2006- 2014 ....................... ........................ 5 -42 Potential Residential Sites ............................................................ ...........................5 -43 Summary of Zoning Code Provisions by District —City of Newport Beach ..... 5-76 Permitted Uses per Zoning Code Provisions by District —City of Newport Beach................................................................... ............................... Comparison of Permit Fees — Nearby Jurisdictions ....................... AdditionalCity Fees ........................................... ............................... Total RHNA Construction Need by Income, 1998 - 2005 .............. Total Number of New Additional Housing Units Permitted ......... Remaining RHNA Allocation, 1998- 2005 ......... ............................... Detailed Housing Program Accomplishments .............................. Remaining RHNA 2006 - 2014 ............................. ............................... Newport Beach General Plan ..5-79 ..5-82 ..5-82 ..5-86 ..5-86 ..5-88 .............. 5 -89 ..............5 -98 /'U A DTCD rC Cl� & Housinq Element HOUSING A Balanced Residential for All Social and Executive Summary The City of Newport Beach's Housing Element details the City's strategy for enhancing and preserving the community's character, identifies strategies for expanding housing opportunities and services for all household types and income groups, and provides the primary- policy guidance for local decision- making related to housing. The Housing Element provides in -depth analysis of the City's population, economic, and housing stock characteristics as well as a comprehensive evaluation of programs and regulations related to housing. Through this evaluation and analysis, the City has identified priority goals, polices, and programs that directly address the housing needs of current and future City residents. The City completed a comprehensive update of its General Plan in 2006. Through the General Plan update process, several key ; treas in the City were identified as ideal locations for future housing opportunities. Key sites for future development include the Airport Area, Newport Center, Banning Ranch, Newport Mesa and the Balboa Peninsula area. As part of the comprehensive General Plan update, the existing 2000 -2005 Housing Element was reviewed for consistency and updated to reflect land use changes and new residential opportunities identified as part of the General Plan update. The 2008-2014 Housing Element is an update and revision of the 2006 Housing Element and consists of new technical data and updated policies and programs. The land use opportunities areas developed as part of the General Plan have remained the same. This Housing Element also addresses meeting the Regional Housing Needs Allocation (RHNA) Newport Beach General Plan Housing Element for the planning period of January- 1, 2006, through June 30, 2014, and is consistent with recent I C 11 lsions to State Housing Element Law. PURPOSE AND STATUTORY AUTHORITY The Housing Element is mandated by Sections 65580 to 65589 of the Government Code. State Housing Element law requires that each city and county identify and analyze existing and projected housing needs within their jurisdiction and prepare goals, policies, programs, and quantified objectives to further the development, improvement, and preservation of housing. To that end, State law requires that the housing element: ELEMENT Community Providing Opportunities Economic Segments Identify adequate sites to facilitate and encourage the development, maintenance and improvement of housing for households of all economic levels, including persons with disabilities; Remove, as legally feasible and appropriate, governmental constraints to the production, maintenance, and improvement of housing for persons of all income levels including persons with disabilities; Assist in the development of adequate housing to meet the needs of low- and moderate - income households; Conserve and improve the condition of housing and neighborhoods, including existing affordable housing; Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability; and Preserve for lower income households the publicly assisted multi- family housing developments within each community. California state law requires that Housing Elements be updated at least every five years. The City of Newport Beach has prepared this updated Housing Element in compliance with State law with the established (extended) 2008 deadline for jurisdictions within the Southern California Association of Governments region and addresses all statutory requirements and regulations. The City has accepted, and is committed to meeting, its 2006 -2014 RHNA allocation of 1,784 housing units. Achieving the remaining RHNA units is expected through the future redevelopment of several key housing opportunity areas identified through the General Plan update process and the affordable housing requirements of the Inclusionary Housing Program. The City's Inclusionary Housing Program requires a proportion of affordable housing in new residential developments or payment of an in -lieu fee. The City's goal is that an average of 15 percent of all new residential development will be affordable to very low —, low -, and moderate - income households. The City Council has also established an Affordable Housing Task Force that works with developers and landowners to facilitate the development of affordable units and determines the most appropriate use Newport Beach General Plan Housing Element of in -lieu fee funds. The Task Force and staff continually investigate and research potential new affordable housing opportunities. CONSTRAINTS AND OPPORTUNITIES The City is constrained in its effort to provide new housing opportunities due to many factors beyond its control. A common resource in many communities, the City does not have a Redevelopment Agency, which in turn means that Newport Beach does not have the resource of housing set -aside funds, nor the power to assemble property through eminent domain. However, this General Plan Housing Element update provides several opportunities to create new residential uses through infill development and reuse of existing land uses. FOCUS OF HOUSING PROGRAMS Following are the housing programs that Newport Beach believes will be the most effective in meeting the City's housing goals. These programs will be the focus of the City's housing efforts during the period of this Housing Element. 1. Actively promote the development of affordable housing on the above- mentioned sites and assist developers with the removal of site constraints. 2. Continue to implement the City's Inclusionary Housing Program that requires an average of fifteen percent of new residential units to be affordable to very low —, low -, and moderate - income households. 3. Research sites and developments that could include affordable housing, such as inftD, mixed -use and redevelopment opportunities. 4. Discuss the extension of affordability covenants with owners of existing affordable apartments. 5. Offer incentives to developers of affordable housing, including density bonuses, fee waivers, expedited permit processing, and the use of in -fteu fee fund. 6. Continue to support housing and special needs services providers through the use of CDBG and General Funds. TIME PERIOD COVERED BY THE HOUSING ELEMENT The Housing Element covers the RHNA allocation period of January 1, 2006, through June 30, 2014 (extended from June 30, 2005, by the State Department of Housing and Community Development). Introduction The City has recently completed a comprehensive General Plan update that was adopted by the City Council on July 25, 2006. In November of 2006, the General Plan was placed on the electoral ballot and approved by the voters. The California Government Code specifies the Legislature's intent to ensure that counties and cities are active participants in attaining the state housing goal and establishes specific components to be Newport Beach General Plan Housing Element contained in a housing element. These components include the following: identification and analysis of existing and projected housing needs, resources and constraints; a statement of goals, policies, quantified objectives, and scheduled programs for preservation, improvement and development of housing, identification of adequate sites for housing, and adequate provision for existing and projected needs of all economic segments of the community. The Newport Beach Housing Element has been written in a consistent and mutually dependent relationship with other Elements of its General Plan. Furthermore, the Element is in conformance with Government Code Sections 65580- 65589. The updated Housing Element is a comprehensive statement of the City's housing policies and serves as a specific guide for implementation of these policies. The Element examines current housing needs, estimates future housing needs, and establishes goals, policies, and programs pertaining to those needs. Housing programs are responsive to current and future needs. They are also established within the context of available community, state, and federal economic and social resources, and realistic quantified housing objectives. State housing goals are as follows: in Availability of housing is of vital statewide importance. Early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. ■ Early attainment of this goal requires cooperative participation of government with the private sector to expand housing opportunities and accommodate housing needs of Californians of all economic levels. ■ Provision of housing affordable to low- and moderate - income households requires cooperation among all levels of government. in Local and state governments have a responsibility to use powers vested in them to facilitate improvement and development of housing to make adequate provision for housing needs of all economic segments of the community. ■ The Legislature recognizes in carrying out this responsibility, each local government also has a responsibility to consider economic, environmental, and fiscal factors, and community goals set forth in its general plan. Cities must cooperate with other local governments and the state in addressing regional housing needs. California state law requires that Housing Elements be updated at least every five years. The City of Newport Beach has prepared this 29962008 -2014 Housing Element in compliance with the established (extended) 2008 deadline for jurisdictions within the Southern California Association of Governments region. The Housing Element covers the RHNA allocation period of January 1, 2006 through June 30, 2014, time period. DATA SOURCES Various sources of information have been consulted in preparing this Housing Element. The 2000 Census provides the basis for population and household characteristics. Where applicable, the following sources of information have been used to supplement and update information contained in the 1990 and 2000 Census: • Population and demographic data from the State Department of Finance, 2007 • U.S. Census American Community Survey, 2006. Newport Beach General Plan Element • School enrollment information from the State Department of Education and the Newport- Mesa Unified School District, 2007/08 • Housing market information, such as home sales, rents, and vacancies, as updated by City surveys and recent home sales data, 2007 • Local and County public and nonprofit agency information on special needs populations and available services, 2008 • Housing condition information provided by the City of Newport Beach, 2007/08 • Orange County Progress Report demographic information, 2007 • Housing and Community Development Department Income Limits, 2007 ORGANIZATION OF THE HOUSING ELEMENT This Housing Element has been divided into two sections as follows: ■ Community Housing Market Analyses This section presents the most current available information pertaining to the following seven subsections: housing stock conditions, household characteristics including over- paying, over- crowding, analysis and projection of population and employment; analysis of special population groups; analysis of housing need; inventory of land suitable for residential development; analysis of opportunities for energy conservation; non - governmental constraints to housing production; and governmental constraints to housing production. ■ Housing Goals and Policies, Quantified Objectives, and Programs This section has three primary functions: (1) to establish City housing goals and policies; (2) to quantify the maximum number of housing units that can be constructed, rehabilitated, and conserved over the seven year period between 2008 to 2014; and (3) to present City housing programs, which represent a five -year schedule of actions to be implemented by the City to achieve goals, policies, and quantified objectives of the Housing Element. Government Code Section 65588 requires review of the Housing Element as frequently as appropriate and to evaluate the effectiveness of housing goals, objectives, and policies in contributing to attainment of the State housing goal. Additionally, the City is required to evaluate the effectiveness of the Housing Element in attainment of community goals and objectives and its progress in implementation of its housing goals. This section provides the required review and evaluation of the 2000 -2005 Housing Element. REVIEW AND UPDATE OF THE HOUSING ELEMENT The City of Newport Beach will review this Housing Element annually as pan of its General Plan review to evaluate appropriateness of objectives, effectiveness of programs, and progress in implementation. The Housing Element will be revised again in 2014 in accordance with state law. PUBLIC PARTICIPATION Opportunities for residents to recommend strategies for, and review and comment on the Newport Beach Housing Element were an important component of the 2006 General Plan update, including MNewport Beach General Plan the Housing Element. The General plan update was the fast comprehensive revision of the City's General Plan in more than 30 years and was the result of more than four years of work by the 38- member citizens General Plan Advisory Committee (GPAC), City staff, technical consultants, Planning Commission, City Council as well as input by thousands of residents that were received during the most extensive public outreach and visioning campaign in the City's history. In November 2006, the General Plan was placed on the electoral ballot and approved by 54 percent to 46 percent, validating that the General Plan reflected what residents indicated during the outreach process. Opportunities for residents 0 SNP to recommend strategies, review, and comment upon housing issues and discuss new opportunities for housing were an important component of the update. Housinq Element Housvrg service agencies, developers and the pubkc discuss Me Housing Ekvnentat tw spedal H Element xwkslrops on March 31 2W8 The Housing Element reflects the vision and principles for future land use and housing development that were developed as part of the General Plan process. As part of the General Plan update, the Housing Element was updated and adopted in 2006 to reflect new land use changes and updated demographics. As part of development of the 2008 -2014 Housing Element, two specialized workshops were held on March 31, 2008. One workshop was specifically targeted for the development community. This workshop was held in the afternoon for housing developers to learn about the existing residential development opportunities and incentives that the City offers to facilitate affordable housing. Developers were also asked to provide input on existing programs and potential new incentives. The second workshop held later that day, was targeted to housing service providers and the general public. Workshop attendees were asked to comment on the existing needs and issues as well as provide feedback for the development of new housing programs. Invitations were sent out to service providers and developers (Appendix Hl contains the mailing list) and a notice of the workshop was advertised in the Daily Pilot. In addition to residents, representatives from the following agencies attended the workshop and provided input. • CAA Planning • Kennedy Commission • Brookfield Homes • Western Community Housing • Colette's Children Home • Iger and Associates • Conexant • HOMES Inc. • Public Law Center Newport Beach General Plan Housina Element • Legal Aid • Social Service Agency of Orange County An additional housing Workshop was held on June 11 "' The Workshop provided an oppormni W for service providers, the public. and various agencies to provide comments on the Draft Housing Element In addition to residents representatives from the foll ded the workshop and provided input. • Western Communi4 f lousing • Public Law Center • Kennedy Commission Copies of the draft Housing Element were made available on the City's website and at the Planning Department Counter. The draft Housing Element was reviewed by the Planning Commission on June 5"' 2008 and the City Council on j+me- ?4AuguaL12, 2008. incorporated into the Housing Element All City meetings are open to the public. The City provides citizens with advance notice of the public hearing and [Hakes copies of all related materials available for public review as soon as the notice is published. Notice of the public hearings is published in the Daily Pilot at least 10 days prior to the hearing date. Community Housing Market Analyses HOUSING STOCK CHARACTERISTICS Residential Growth and Dwelling Unit Types Between 1980 and 2007, 11,564 housing units were added to al-tewere approved and added the housing inventory in the City of Newport Beach (refer to Table HI). This indicates an average yearly increase in the housing stock of approximately 330 housing units. Since 1990, this rate of increase has slowed. Between 2001 and 2007, an average of 200 to 300 housing-mits-pernuts per year cvas -yy= added to the housing stock with the exception of 2003, which included the annexation of Newport Coast'. This number excludes any demolitions that have occurred. It should be noted that the Department of Finance provides annual estimates of housing units not an actual housing count. Newport Beach General Plan Housina Element Table Year .. Total Housing Units Net Change of Beginning of Year in Housing Units 1980-2007 Tolaf Housing Units at Beginning of Year Year Net Change In Housina Units 1980 31,016 1,233 1994 35,565 38 1981 32,249 152 1995 35,598 33 1982 32,401 109 1996 35,631 33 1983 32,510 225 1997 35,978 347 1984 32,735 108 1998 36,807 829 1985 32,643 216 1999 37,044 237 1986 33,059 306 2000 37,567 523 1987 33,365 971 2001 37,779 212 1988 34,336 312 2002 38,009 230 1989 WA - 2003 41,590 3581 1990 34,861 525" 2004 41,851 261 1991 35,275 414 2005 42,143 292 1992 35,439 164 2006 42,352 209 1993 35,527 88 2007 42,580 228 SOURCES: City of Newport Beach State Department of Finance 2007, Population Research Unit Housing unit numbers represent building permits ffnaled `Two year growth change The total number of housing units as of January 1, 2007, was estimated to be 42,580. The mix and number of housing units within the City according to the State Department of Finance are shown on Table H2. Table Housing Unit Type .r Number of Units Percent of Total Single - Family Detached 19,186 45.1% Single - Family Attached 7,166 16.8% Duplex to Fourplex 5,520 12.9% Multi- Family 9,845 23.1% Mobile Home 863 2.1% City Total 42,580 100.0% SOURCE: State Deparhnent of Finance 21107. Estimate Residential Densities Residential densities in many older neighborhoods in the City of Newport Beach range from 12 to more than 22 units an acre, according to City figures that were estimated by dividing residential acreage by current dwelling unit counts. Newport Beach General Plan Housing Element Table H3 Residential Area Density by Are Estimated Density (D.U.1 Net Acre) Balboa Peninsula 22.6 West Newport 18.8 Balboa Island 26.7 Old Corona del Mar 17.9 Lido Island 12.0 SOURCE: City of Newport Beach Planning Department, 2008 In addition, many attached housing projects in the City were developed to maximize land usage. Existing attached projects in the City and their densities are listed in Table H4. Housing Tenure The tenure distribution (owner - occupied versus renter- occupied) of a community's housing stock influences several aspects of the local housing market. Residential mobility is influenced by tenure, with ownership housing evidencing a much lower turnover rate than rental housing. The tenure of housing in Newport Beach in 2000 was comprised of 44 percent renter households and 56 owner- occupied households and as shown in Table 1-15: The percentage of rental housing in Newport Beach is higher than the corresponding figure for Orange County. The latest data comparing rentals from the 2000 Census is shown in Table H6. Since 1960, (when only 36 percent of all occupied units were rented) the percentage of rental housing increased due to a sizeable amount of new rental construction. New construction subsided substantially in the 1980s. Table H7 lists the major rental projects in Newport Beach. Newport Beach General Plan Housinq Element Table H4 Densities Project of Attached GrossAcreoge Housing Number of Dwelling Units Dwellino Unft per Gross Acre Newport Crest 38.0 460 12.1 Bayview Landing 4.5 120 26.7 Versailles (Phase 1) 6.8 255 37.5 Lido Condominiums 1.1 54 49.1 621 Lido Park Drive 1.7 36 21.2 Caribe 1.3 48 36.9 The Towers 0.5 28 54.3 Rendezvous 0.75 24 32.0 Coronado 32.3 1,446 44.8 Mariners' Square 6.2 114 18.4 Park Newport 53.2 1,306 24.5 Promontory Point 32.8 520 15.8 SayviewApartments 5.4 64 11.8 Bayport Apartments 5.3 104 19.6 Baywood Apartments 27.4 320 11.7 Newport Terrace 40.0 281 7 Granville 10.2 68 6.7 Baypoint Apartments 20.36 300 14.7 Bonita Canyon Apartments 57.70 1,052 18.2 The Colony 6.0 245 40.9 One Nautical Mile 2.44 42 17 Bordeaux Apartments 10.76 191 17 Zani 18.3 168 9.18 Newport Ridge Apartments 21 512 24.3 SOURCE: City of Newport Beach Planning Department. 2008 1980 27,820 14,888 (53.5 %) 12,932 (46.5 %) 1990 30,860 17,207 (55.8%) 13,653 (44.2%) 2000 33,071 18,408 (55.7%) 14,663 (44.3 %) SOURCES: 1980, 1990, 2000 U.S. Census. Newport Beach General Plan Element Table Area Occupied Units Percent of Rental Housin Newport Beach 44.3% Costa Mesa 59.5% Huntington Beach 39.4% Laguna Beach 39.9% Orange County 38.6% SOURCE: 2000 U.S. Census Table H7 Major • Projects Area No. of Units Anchorage Apartments 39 The Balboa Bay Club 144 Baypoint Apartments 300 Bayport Apartments 104 Bayview Apartments 64 Bayview Landing Apartments 120 Baywood Apartments 320 The Beach House 226 Fairway Apartments 74 Newport Bluffs 1,052 Mariners' Square 114 Newport North 570 Newport Seaside Apartments 25 Newport Seacrest Apartments 65 Newport Villa 60 Coronado Apartments 1,446 Park Newport 1,306 Promontory Point 520 Seaview Lutheran Plaza 100 Sequoia Apartments 54 The Colony 245 The Terraces 56 850 Domingo Drive _ 34 Newport Ridge 512 Bordeaux Apartments 191 Newport Bay Terrace Apartments 184 Palm Mesa Apartments 147 TOTAL:17projects 8,071 SOURCE: The City of Newport Beach Planning Department, 2008 Newport Beach General Plan Housing Element In addition, the City contains many rented duplex, triplex, and fourplex units. Areas where this type of rental housing is predominant include West Newport, Balboa Peninsula, Balboa Island, and Corona del Mar. One of the most recent new multi- family rental projects in the City is the Bayview Landing project. This affordable housing project provides 120 units for very low— and low- income seniors. Condominium Conversion Ordinance In the mid- 1990s, the City of Newport Beach adopted a new ordinance to ease restrictions on condominium conversions. Easing restrictions on condominium conversions was intended to promote the availability of first -time home buyer opportunities and to promote the rehabilitation and preservation of smaller, more affordable housing units. Many rental units in certain areas of the community were overcrowded and deteriorating due to absentee owners and the renting of units on a weekly basis. Health and safety issues were also a concern given quality of life impacts resulting from excessive noise, pollution and traffic in areas where weekly vacation rentals were prevalent. In 2005, the City became concerned that severe parking inadequacies of older apartment buildings were being perpetuated through condominium conversions, and adopted ordinances restricting condominium conversions to structures that provide the code required parking at the time of the conversion. Under these ordinances, duplexes, and multi-family properties that are non - conforming by way of parking cannot be converted to condominiums. These regulations will have slowed the rate of condominium conversions in the City. The total number of units affected by condominium conversions approved since 1995 is 394 units. Table H8 identifies the number of conversions each year between 1995 and 2007. Table .. Year 00 No. of Restdentlal UnRs Converted 1995 37 1996 28 1997 20 1998 30 1999 30 2000 22 2001 43 2002 19 2003 23 2004 43 2005 51 2006 42 2007 6 Total 394 SOURCE C4 of Newport Beach Planning DepaNnent 2008 Newport Beach General Plan ing Element Vacancy Rates A vacancy rate is often a good indicator of how effectively for -sale and rental units are meeting the current demand for housing in a community. Vacancy rates of 5 to 6 percent for rental housing and 1 to 2 percent for ownership housing are generally considered optimum, where there is balance between the demand and supply for housing. A higher vacancy rate may indicate an excess supply of units and therefore price depreciation, while a low vacancy rate may indicate a shortage of units and resulting escalation of housing prices. The overall housing unit vacancy rate of the City of Newport Beach has varied between 1980 and 2000, as fluctuations have occurred in the housing market. The last available data for all vacant units categorized by the type of housing stock is from the 2000 Census. It indicated that the vacancy rate for rental units was 3 percent versus 1 percent for ownership housing (Table 119). According to State Department of Finance estimates{ the overall vacancy rate in the community has decreased to 10.9 in 2007. Table H9 Year Overall Newport Vacancies as a % of all housing stock 1980-2007 Vacancies for sale as a of all housing stock Vacancies for rent as a %of all housing stock 1980 10.1% 3.8% 6.1% 1990 11.5% 0.8% 4.3% 2000 11.3% 0.9% 3.4% 2007 10.9% n.a n.a SOURCES: U.S. Census 1980, 1990, 2000; Orange County Progress Report 2000; State Department of Finance 2007, Estimate The discrepancy between overall vacancy rates and vacancy rates among available units may be due to the large number of seasonal units and second homes in Newport Beach. According to the 2000 U.S. Census, 1,994 of 4,217 vacant units were identified as "seasonal use." To assist in administration of its condominium conversion ordinance, the City has conducted rental vacancy surveys since 1979. This survey includes only apartment vacancies, not other homes that may be used as rentals. Results of the most recent surveys and the 2000 Census are provided on Table H10. As shown in 2006, the vacancy rate for apartment units was 4.45 percent. TOTAL I 4.8% I 4.6% I 2.7% I 4.3% I 8% I 4.4% I 8.0% I 6.2% 1 4.84% 1 4.45% SOURCES: City of Newport Beach Planning Deparbnent 2008; 2000 U.S. Census Housing Condition There has not been a comprehensive survey of housing conditions in Newport Beach since the 1976 Special Census for Newport Beach. That survey indicated only 1.3 percent of all housing units were deficient. Three neighborhoods in the city contained concentrations of substandard housing. Of all housing units on Balboa Peninsula, 5.1 percent were in substandard condition, while 2.5 percent and Newport Beach General Plan Housina Element 2.6 percent of all units on Balboa Island and in Newport Heights, respectively, were in substandard condition. Deficient units in this regard are defined as deteriorated, dilapidated units, as well as those units inadequate in original construction, or which were under extensive repair. The lack of complete plumbing, kitchen, or heating facilities serves as a narrow indicator of substandard housing conditions. Only a small number of homes in Newport lacked these basic utilities in 2000. The 2000 Census reported that 125 units had incomplete plumbing, 235 units were without a complete kitchen, and 135 units had no heating facilities. However, it is the consensus of City staff that the condition of housing in Newport Beach is considered to be very good. During 2007, through its ongoing code enforcement program, the City Building Department has not identified any properties in need of repair. Extremely high property values and the lack of code enforcement cases indicate that property owners within Newport Beach are, for the most part, conscientious about maintaining their properties. Substandard housing does not appear to be a problem for the community at this point in time. Illegal Dwelling Units Illegal or "bootleg" dwelling units have historically been a problem in Newport Beach, experienced most often in the older, beach - oriented areas of West Newport, Balboa Peninsula, Balboa Island, and Corona del Mar. These units are found in two typical forms: the "splitting" of a single dwelling unit into two separate occupancies, and the conversion of garages to living space. These units usually have a higher number of health and safety code violations than legal units, due to conversion without proper building permits and inspections. Illegal units continue to be a problem today, but are less prevalent than in the past, due to increased year round owner occupancy in these areas, and inspections which occur when properties are sold. While it is difficult to estimate the number of illegal units, code enforcement personnel estimate that as much as 5 percent of the City's housing stock may be in the form of illegal units. While not considered ce- l_1rsafe and adequate housing, these units do provide living arrangements that tend to be more affordable than legal units. Mobile Homes As described later, mobile homes generally provide more affordable housing opportunities for residents. There are presently 972 mobile home spaces in ten mobile home parks in Newport Beach. Many of these units are occupied by permanent residents and some are used by households that use the unit for vacations or weekend visits to the area. The character of the City's ten mobile home parks varies. Three of the parks are located on or close to Newport Harbor. These three parks appeal to retirees and a substantial number of spaces in these parks are occupied by permanent residents. It should be noted that mobile homes in Cannery Village and some in West Newport have been replaced with manufactured housing that is not affordable to low - income and moderate - income individuals and families. The state HCD is responsible for issuing permits for mobile home parks. The City of Newport Beach has notified the state that mobile home units affordable to low- and /or moderate - income households have been converted, or are in the process of converting to, market rate status and thereby may lose their affordable status. To date, the state has taken no action regarding this continuing loss of affordable housing. Newport Beach General Plan Housing Element It should be noted that one mobile home park, the Beach and Bay Mobile Home Park at 7204 W. Coast Highway, appears to be in substantial physical decline and could be subject to redevelopment or replacement within this planning period. TableHIl MobileHomeParks Mobile Home Park S#e Address Total # of Spaces # of Acres I # of S aces Acre Bayside Village 343 24.66 13.91 300 East Coast Highway Beach and Bay 47 1.41 33.33 7204 W. Coast Highway Cannery Village 34 1.40 24.29 700 Lido Park Drive (replaced with manufactured homes) Ebb Tide 77 4.16 18.51 1560 Placentia Avenue Flamingo 20 0.31 64.52 7000 W. Coast Highway Harbor 40 1.92 20.83 1535 Superior Avenue Lido 214 12.40 17.26 710 Lido Park Drive Marina Park' S7 4.94 11.74 1770 W. Balboa Blvd. Newport Terrace 4.27 13.11 824 W. 15th St. Seacliffe Mobile Park' 117 9.11 12.8 890 West 15th Street Total (10 Parks) 972 SOURCE: The City of Newport Beads Planning Department. 2007 ' Approved for dosure. Both the Marina Mobile Home Park and the Seadiff Mobile Home Park were approved for closure in 2006. The Marina Park mobile home park has been owned and operated by the City of Newport Beach since 1919. The park presently accommodates 57 mobile homes: 25 used as second homes, 31 permanent residences and 1 that is vacant. Beginning in 1985, the City agreed to enter into long term leases that provided for reduced rents that were below fair market value. In exchange, the Lessees agreed to deliver possession of the premises. In 2006, the City elected to consider closing the Park and changing the use to an interim open space condition. The Seadiff Mobile Home Park is a privately owned 117 unit Park near the West Newport Industrial Area. The park owner owns all but 14 of the 117 mobile units. The remaining 103 are rented out on month -to -month tenancies. In 2006, owner decided to terminate the mobile home park space tenancies as parlrgarLof the park closure. Pursuant to California law, a Closure Impact Report was prepared for both parks that assessed the impact of the park's closure on tenants. The Report provided numerous options to tenants for relocation assistance, including payment of reasonable costs to relocate the mobile homes, payment to purchase the homes, and payment of relocation expenses. MlNewport Beach General Plan Housinq Element Assisted Housing Stock The City has had policies in effect since the mid -1980s requiring the provision of affordable housing in association with all new residential developments where more than 4 units are proposed. Most were provided within new or existing apartment projects. In some cases, an in -lieu fee was assessed. The City also facilitated the teaming of market rate and affordable housing developers to produce required affordable housing. As mentioned earlier, recent projects include the 120 -unit Bayview Landing project (2004) and the 79 -unit Santa Barbara Condominium project that will provide 12 units that will be affordable to low- and moderate - income households (in the pipeline). Affordability requirements for the Santa Barbara Condominium project will be satisfied through the purchase and rehabilitation of a 12 -unit apartment building. Table H12 summarizes the total number of completed affordable units receiving public assistance as well as regulated affordable housing in private development. Over 400 restricted /assisted affordable housing units are located within Newport Beach. Newport Beach has facilitated affordable housing development using a variety of mechanisms (such as in -lieu fee funding, inclusionary housing requirements, CDBG, fee waivers, land grants, and other support). State law requires an analysis of existing assisted rental units that are at risk of conversion to market rate. This includes conversion through termination of a subsidy contract, mortgage prepayment, or expiring use restrictions. The following at -risk analysis covers the period of January 1, 2006 through June 30, 2016. Assisted Housing Stock at Risk According to the Housing and Community Services of Orange County's list of affordable housing projects and the City's at risk project database, two affordable project covenants may expire during the planning period. These projects include Newport Seacrest Apartments located at 843 West 15" Street. The project was financed with a 30 -year Section 8 loan which is set to expire in 2016. Of the 65 units, 20 are one- bedroom and 45 are two - bedroom units. Contact with the property representative indicates that although the loan is set to expire in 2016, the property owner would be willing to work with the City and negotiate extending the affordability covenants beyond 2016. Since many tenants of this property have Section 8 vouchers provided by the County, it is assumed that many of the tenants are very low — income households. The Baywood apartment complex includes 46 low- income units, all of which are two - bedroom. These units were developed under the City's inclusionary housing requirement and are set to expire in 2011. The Irvine Company (TIC) is the primary land owner /developer in the Newport Center area, ate lras seated -aA Planned Community Development Plan to build 430 of the permitted 450 mixed -use units (within Block 500, 600 and San Joaquin Plaza) was approved in December 2007. The North Newport Center AHIP was ;ljw- approved in December 2007. As part of the proposed 430 mixed -use units, the Planned Community Development Plan includes its own Affordable Housing Plan (AHIP) for the project, a required component of the City's existing Affordable Housing Implementation Program requirements. The Irvine Company is required to provide the following number of units of either very low —, low -, or moderate - income housing, or a combination of income categories: Newport Beach General Plan 'M Housing Element TableH12 City of Newport Affordable) categories- the North Newport Center Planned community. AHIP discussed the Earliest 0.75 acre site near San Joaquin Hills Road and San Possible allows for 10 residential dwelling units on the Date of Pro eet Namel Location Type of Assistance Received Change Number of Units/TZee Domingo Drive Apartments 50% affordable 851 Domingo Drive Section 8 Permanent 25 Very Low Income Newport Harbor Apartments Section 538 Placentia Density Bonus 2020 26 Low Income CDBG Newport Harbor II Apartments Section 8 2023 14 Low Income Baywood City Inclusionary Housing 2010 -2011 46 Low Income Requirement Section 8 Newport Seacrest Apartments CDBG 2016 65 Low Income 84315th Street Fee Waivers Tax Credit Financing Pacific Heights Apartments Section 8 2018 7 881 -887 W. 15th Street Villa Point II 2 Milano Drive Section 8 Permanent 18 Very Low and Low Income Newport Seashore Apartments Section 8 2018 15 Low Income 849 West 151h Street Fee Waivers Newport Seaside Apartment Section 8 1544 Placentia CDBG 2019 25 Very Low Income Fee Waivers Seaview Lutheran Plaza (Seniors) Section 202 Permanent 100 Very Low--Income elderly 2800 Pacific View Drive Section 8 Villa del Este 401 Seaward Road Section 8 Ownership 2021 2 Moderate Income Villa Siena Section 8 Ownership 2021 3 Low Income 2101 15th Street Density Bonus Bayview Landing (Seniors) In -lieu Fee Funds 24 Very Low and 95 Low 1121 Back Say Ddve Fee Waivers 2056 Income Tax Credit Financing SOURCE: City of Newport Beach Planning Department, 2008Ciy ofNewpw Beach Consolidated Plan 2000 -1005; Orange County Affordable Housing List. 2008 • Very Low: 43 units • Low: 65 units ■ Moderate: 86 units To meet the requirement within these income categories- the North Newport Center Planned community. AHIP discussed the development of a 0.75 acre site near San Joaquin Hills Road and San Miguel Avenue. The General Plan allows for 10 residential dwelling units on the site. If all units were affordable a 35% densi bonus would be applied- allowing 14 units. However the AHIP restricts the units at this site to no more than 50% affordable Newport Beach General Plan Housina Element The Irvine Company also owns the Bays Apartment complex consisting of three buildino know as Ba«vood, BagLew and Bayport In order to meet AHIP requirements the Irvine Company would provide affordabili ly covenants for 43 to 86 existing units for a period of at least 30 years The AHIP stipulates that affordable units shall not be concentrated in any one building in the Bays. Preservation and Replacement Options Currently, availability of funding for Section 8 contract renewal is uncertain. Under the Section 8 contract program, HUD pays owners the difference between what tenants can pay (defined as 30 percent of household income) and HUD's payment standard. Rent subsidies using state, local, or other funding sources can be used to maintain the affordability of the at -risk projects and structured to mirror the Section 8 program. It is assumed that the one - bedroom units are occupied by the one - person household and two- bedroom units are occupied by a four- person household. This analysis assumes that very low— income households earn below 50 percent of the County median. Thus, the average income would be $30,300 for a one person household and $43,300 for a four - person household according to 2007 HUD /HCD income limits. As Table H13 shows, given the 111 units contained in the two housing projects, whose affordability may expire in this planning period, the total anticipated subsidy is $569,784 annually or $47,482 monthly. Newport Beach General Plan M Housing Element Table H13 Annual Unit Size Rent Subsidies Required to Preserve Monthly Rent Affordable fair Market Subsidy Required I No. of Units At Risk Annval Subsidies Studio $758 $1,103 $345 0 0 One Bedroom $758 $1,238 $480 20 $115,200 Two Bedrooms $1,082 $1,485 $403 94 $454,584 Three Bedrooms $1,082 $2,125 $1,043 0 $0 Total I 111 $569,784 SOURCE: Orange County Housing Authority a. When only a portion of a project's units are covered by the Section 8 contract, the mix of these at -risk units is estimated based on the entire project's unit mix. b. Affordable rent for a studio and one - bedroom units are based affordability level for 1 very low- income person. Affordable rent for two-bedroom units based on a 4- person very low- income family. c. Fair Market rents based on the June 2007 maximum rents (payment standard) set by HUD for different unit sizes in Orange County. This payment standard is determined by the Orange County Housing Authority. Resources for Preservation The types of resources needed for preserving units at -risk fall into three categories: 1. Financial resources available to purchase existing units or develop replacement units 2. Entities with the interest and ability to purchase /manage the units at risk 3. Management programs to provide replacement funding for potential lost subsides The following summarizes financial resources available to the City for preservation of assisted, multi- family rental housing units. • CDBG —The City is programmed to receive approximately $2,000,000 during the next five years. This program is intended to enhance and preserve the City's affordable housing stock. CDBG funds are awarded to the City on a formula basis for housing activities. Approximately, $200,000 per year in CDBG funds are used to repay a 20 -year Section 108 loan which was used to provide public facilities improvements projects to revitalize the low /moderate - income Balboa Peninsula neighborhoods. • In -Lieu Housing Fund —The City has collected in -lieu fees from various development projects since 1997. The City's remaining balance as of the end of 2007 was approximately $1.3 million. Because it is a local housing resource, the City has a large degree of flexibility for use of the funds. In -lieu fee funds can be used for land write- downs, construction, rehabilitation, and acquisition of properties. • Section 202 — Provides grant to non -profit developers for supportive housing for elderly. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance. • California Housing Finance Agency (CHFA) Multiple Rental Housing Programs —This state program provides below market rate financing to builders and developers of multiple - family and elderly rental housing. Tax exempt bonds provide below market mortgage money. Eligible activities include new construction, rehabilitation, and acquisition of properties with 20 to 150 units. • Low Income Housing Tax Credit (LIHTC )—This state program provides tax credits to individuals and corporations that invest in low - income rental housing. Tax credits are sold to ®Newport Beach General Plan Housina Element corporations and people with high tax liability and proceeds are used to create housing. Eligible activities include new construction, rehabilitation, and acquisition. ■ California Community Reinvestment Corporation (CCRC)—This private, non -profit mortgage banking consortium provides long -term debt financing for affordable multi- family rental housing. Eligible activities include new construction, rehabilitation, and acquisition. Administrative Resources An alternative to providing subsides to private for -profit owners to maintain units as low - income housing is for public or nonprofit agencies to acquire or construct housing units to replace "at risk" units lost to conversion. The City can explore prioritizing tenants that have lost their unit or rent subsidy in these at -risk buildings for inclusion in new projects funding by the City. The following nonprofit housing development corporations are active in developing affordable housing in Newport Beach and Orange County: • Related Companies of California has developed and preserved over 6,000 units of housing in California. Related Companies of California recently constructed the affordable Bayview Landing project in 2004. In addition to construction, Related Companies of California is also experienced with the preservation and management of at -risk properties. • Jamboree Housing is an active non -profit housing development that constructs and preserves affordable senior, family, and special needs housing throughout southern California. Jamboree also provides on -site social services with many of its affordable and special needs projects. Jamboree Housing has recently developments projects in the cities of Irvine and Laguna Beach. • National Community Renaissance (National CORE) includes National Community Renaissance of California (formerly So Cal Housing), National Housing Development Corporation (formerly NHDC), and Hope Through Housing Foundation. Together, the combined nonprofit entity now operates over affordable 9,500 apartments in the United States. Programs include construction, acquisition, rehabilitation, job education and training, adult education and literary, senior services, and after- school youth programs. • Olson Company —a local, for -profit development, the Olson Company is an experience multi- family and mixed -use housing development that has included affordable housing as a component of many projects. Recent affordable projects have occurred in the cities of Brea and Fullerton. ■ The Inine Company —one of the largest land developers on Orange County, Ithe Irvine Company owns and manages over ninety apartment projects located throughout Orange County, Los Angeles, San Diego, and Silicon Valley. Affordable rental units are located at approximately thirty of these projects including inclusionary housing units, HUD- Funded Programs, and Section 8 units. The Irvine Company owns several apartment complexes within Newport Beach. POPULATION AND HOUSING PROJECTIONS According to the US Census, the population of Newport Beach in 2000 was 70,032 residents, excluding the Newport Coast area. Updated information from the State Department of Finance estimates the population in 2007 to be 84,218. Pursuant to the updated General Plan, ultimate residential capacity within the City of Newport Beach will be 49,968 dwelling units, including the Newport Coast area. Future residential growth will largely occur through infill development and reuse Newport Beach General Plan ing Element of existing and obsolete land uses. As discussed in greater detail later in the document, the key sites for future growth include the Airport Area, Newport Center, Banning Ranch, West Newport Mesa, and the Balboa Peninsula area According to the Cahfomia State Fullerton Center for Demographic Research projections, the population of Newport Beach is anticipated to grow steadily over the next several years, increasing to 91,321 residents by 2015. Table H14 and Table H15 were created to demonstrate housing and population trends based on past State Department of Finance estimates. These estimates are supplemented with housing unit and population projections based on estimates of actual construction. Estimates are for 2000 to 2007. Table H14 Population Year Total Population Trends, 1980-2007 Household Po ulaHon Group Quarters 1980` 65,283 64,972 311 1985' 66,817 66,284 533 1990 66,643 65,941 702 1995 68,920 68,199 721 2000 75,627 74,906 721 2005 83,120 82,180 940 2006 83,503 82,563 940 2007 84,218 83,278 940 SOURCES: State Department of Finance 2007, Population Research Unit `1992 Housing Element. City of Newport Beach. TableH15 Housing Trends, Dwellfn V, ntf e Total M of Single mobile Year Units Family 2-4 5i Homes Occupied Units Percent Vacant Pop/ Household 1980' 31,016 17,490 7,149 5,762 615 28,282 8.81% 2.297 1985' 32,843 19,078 546 7,052 877 29,605 9.86% 2.239 1990 34,861 20,767 5,355 7,792 947 30,860 11.48% 2.252 1995 35,598 20,776 5,637 8,238 947 31,512 11.48% 2.164 2000 37,567 21,747 5,743 1 9,130 947 33,255 11.48% 2.252 2005 42,143 26,804 5,475 9,721 863 37,545 10.91% 2.19 2007 42,580 26,352 5,520 9,845 863 37,934 10.91% 2.19 SOURCES: State Department of Finance 2007, Population Research Unit '1992 Housing Element City of Newport Beach POPULATION TRENDS The city's rate of population growth exceeded the County rate of population growth through 1950. However, since 1950 the City's proportionate gain in population has been substantially less than that of the County. Annexations of the West Newport Triangle in 1980, a portion of Santa Ana Heights in 1987, and construction of large housing developments helped to increase City population 6.5 percent between 1980 and 1990. Construction of housing developments contributed to an increase of City ®Newport Beach General Plan Housinq Element population of 15.2 percent between 1990 and 2000. Population increases after 2000 were generally due Owe, lrtgintensification of land uses and annexation of the Newport Coast and Santa Arta Heights areas. Past and future populations of both Orange County and Newport Beach are presented below. Newport Beach population will continue to constitute a decreasing percentage of the County population. The County population is projected to increase by 8.2 percent between 2010 and 2025. The City of Newport Beach population is projected to increase by a slightly slower rate of 8.0 percent during the same time period. The 2000 Census estimates the vacancy rate to be 3.5 percent for Orange County in 2000. Of these vacant units, approximately 1 percent is used for seasonal, recreational, or occasional use. The average household size in 1970 was 2.6; the 1980 Census reported an average household size of 2.2. Between 1980 and 1990, this rate increased to 2.3 persons per unit. The decrease in average persons per household between 1970 and 1980 and the increase in average persons per household between 1980 and 2000 are shown below. This trend is consistent with the trend in Orange County. Reduction in household size in Newport Beach between 1970 and 2000 had been the result of increased numbers of persons 65 years of age and older and reduced numbers of child- rearing households and child population in the City. This trend is documented by Table H18 (Population by Age, City of Newport Beach 1970 - 2000). Table H19 further indicates a general aging of the population of the City between 1990 and 2000. However, it also shows an increase in "under 5" and "5 to 13" age categories, which in part may explain the slight increase in numbers of persons per household. Table A 16 Population Gr• Oran a County Orange • • • Newport Newport Beach Beach, t City Population as %of County Population Population Growth Rate Po ulatlon Growth Rate 1910 34,436 445 1.3% 1920 61,375 78.2% 894 101% 1.5% 1930 118,674 93.4% 2,203 146.4% 1.8% 1940 130,760 10.2% 4,438 101.4% 3.4% 1950 216,224 65A% 12,120 173.1% 5.6% 1960 703,925 225.6% 26,565 119.2% 3.8% 1970 1,420,386 101.8% 49,442 86.1% 3.5% 1980 1,932,709 36.1% 62,556 26.5% 3.2% 1990 2,410,556 24.7% 66,643 6.5% 2.8% 2000 2,846,289 16.5% 70,032 5.08% 2.4% 2010' 3,314,948 16.4% 88,340 26.1% 2.7% 2020' 3,533,935 6.6% 93,195 5.5% 2.6% 2025' 3,586,285 1.5% 95,427 2.4% 2.6% SOURCES: U.S. Census of Population and Housing and California Department of Finance ' Projected 2000 -2025 Data - Orange County Progress Report (2007) Newport Beach General Plan in Housing Element Table H17 Persons per Occupied Unit, 1970-2000 18-4 Areo F1970 65+ 1990 1990 2000 Newport Beach 2.6 22 2.3 2.2 Orange County 3.2 2.7 3.1 3.1 SOURCES: 1990 U.S. Census 1976 1,835 6,460 4,270 Orange County Progress Report 2000 24,934 6,240 % of Total Yew i5 5 -13 14-17 18-4 35 -64 65+ 1970 2,343 6,434 3,799 13,389 18,602 4,859 %of Total 4.7% 13% 7.7% 27.1% 37.6% 9.8% 1976 1,835 6,460 4,270 19,169 24,934 6,240 % of Total 2.9% 10.3% 6.8% 30.5% 39.6% 9.9% 1980 1,663 5,135 3,843 19,342 25,285 7,288 % of Total 2.7% 8.2a/o 6.1% 30.9% 40.4% 117% 1990 2,578 4,115 2,197 19,573 27,862 10,318 % of Total 3.9% 6.2a/a 41.8% 15.5% 2000 2,941 5,890 il 30,457 12,198 %of Total 4.2% 8.4% 43.5% 17.4% SOURCES: 1970,1980,19M, and 2000 U.S. Census and 1976 Special Census for Newport Beach Percentages may not add to 100% due to independent rounding. The 2006 U.S. Census American Community Survey was conducted for the City of Newport Beach to obtain data on limited general demographic characteristics, including age. Information obtained from this survey provided estimated populations with margins of error of ±6,252. While the error margin for the American Community Survey data is significantly higher compared to the decennial census data, the American Community Survey provides more up- to-date information that can illustrate trends that have occurred in Newport Beach since 2000. Results from the survey are displayed in Table H19. More recent data displays several population trends within Newport Beach from 2000 to 2005. One of the more notable issues was that the City's senior population remains a significant proportion of the City's population, comprising almost 20 percent in 2005. Another significant population is children under 19 years, which also composed approximately 20 percent of all residents. In addition, information on public school enrollment in the Newport-Mesa Unified School District ( NMUSD) is provided in Table H2O. NMUSD serves the majority of the City. Approximately 20,600 students were enrolled in NMUSD during the 2005/06 school year. Of these, almost 70 percent were in grades K to 8, while the remaining 32 percent were in high school. Newport Beach General Plan lement Ace Number Percent 0-4 5,175 5.9% 5-19 13,355 15.4% 2034 16,028 18.5% 35-64 35,206 40.6% 651+ 17,062 19.7% Total 86,810 100.0 SOURCE: U.S. Census American Community Survey 2006. HOUSEHOLD CHARACTERISTICS Ethnicity The following information is based on the most recent information (2000 Census of Population and Housing) available for the City of Newport Beach, as supplemented with information from the 2006 U.S. Census American Community Survey. As shown in Table H21 and Table H22, the City of Newport Beach has become diverse racially and ethnically in 2000 compared to 1990. Persons who classified themselves as white in 1990 comprised 92.5 percent of the City population. Those classifying themselves as Hispanic in 1990 comprised 4 percent of the City population; in 2000 that increased to 6.2 percent. The percentage of the City population who identified themselves as African American in 1990 was .2 percent; in 2000 this increased to 0.5 percent. Table H21 shows the 1990 and 2000 racial and ethnic composition of Newport Beach. Comparative figures for Orange County are also provided. As identified in Table H23, according to the U.S. Census 2006 American Community Survey estimates, Newport Beach continues to become more racially and ethnically diverse, although the majority of residents are Non - Hispanic White. As shown, the proportions of Hispanic, Asian and residents identifying themselves as of another racial and ethnic group or of mixed- racial heritage have increased in Newport Beach since the 2000 Census. However, fewer minority groups reside in Newport Beach compared to Orange County as a whole. Newport Beach General Plan Table H20 School Enrollment, 2006 Enrollment Percent Public Kt08 14,126 68.4% 9 to 12 6,536 31.6% Total 10,661 100% SOURCES: California Department of Education, Newport -Mesa School District 2007: City of Newport Beach. Draft General Plan EIR 2006 HOUSEHOLD CHARACTERISTICS Ethnicity The following information is based on the most recent information (2000 Census of Population and Housing) available for the City of Newport Beach, as supplemented with information from the 2006 U.S. Census American Community Survey. As shown in Table H21 and Table H22, the City of Newport Beach has become diverse racially and ethnically in 2000 compared to 1990. Persons who classified themselves as white in 1990 comprised 92.5 percent of the City population. Those classifying themselves as Hispanic in 1990 comprised 4 percent of the City population; in 2000 that increased to 6.2 percent. The percentage of the City population who identified themselves as African American in 1990 was .2 percent; in 2000 this increased to 0.5 percent. Table H21 shows the 1990 and 2000 racial and ethnic composition of Newport Beach. Comparative figures for Orange County are also provided. As identified in Table H23, according to the U.S. Census 2006 American Community Survey estimates, Newport Beach continues to become more racially and ethnically diverse, although the majority of residents are Non - Hispanic White. As shown, the proportions of Hispanic, Asian and residents identifying themselves as of another racial and ethnic group or of mixed- racial heritage have increased in Newport Beach since the 2000 Census. However, fewer minority groups reside in Newport Beach compared to Orange County as a whole. Newport Beach General Plan Housina Elem Table Composition, and Ethnic •• Year Newport Orange County, 2000 C dNew o od BeaeA Count o /Oran Number i Percent Race and Ethnicity Year Number Percent Non - Hispanic White 1990 61,693 92.5% 1,557,956 64.6% 2000 64,583 92.2% 1,844,652 64.8% Ahican American 1990 152 0.2°% 38,825 .6% 2000 371 .5°% 47,649 1.7% Asian /Pacific Islander 1990 1912 2.9% 244,407 10.1°% 421,208 2000 2,804 4.0% 386,785 13.6°% Hispanic 1990 2,671 4.0% 556,957 23.1°% Y000 3,301 4.7% 875,579 30.8% Other 1990 215 0.3% 12,411 0.5% 2000 792 1.1% 421,208 14.8% Tots! 1990 66,643 100% 2,410,556 l00% 2000 70,031 100% 1,846,289 100% SOURCES: Orange County Progress Report 2000, Center for Demographic Research: U.S. Census 2000. Numbers are rounded to nearest decimal place and may not add up to 100% Newport Table H22 Racial Race and Ethnicity and Ethnic •• Year Composition, dal New d Coast County of Orange Number Percent Number Percent Non - Hispanic White 2000 2,085 78.1% 1,644,652 1 64.8°% African American 2000 7 0.3% 47,649 1.7% Asian /Pacific Islander 2000 483 18.1°% 386,785 13.6% Hispanic 2000 112 4.2•% 875,579 30.8°% Other 2000 8 0.3 421,208 14.8% Total I 1000 I 1,671 100% I 2,846,289 108% SOURCES: Orange County Progress Report 2000, Center for DemograpNc Research. U.S. Census -2000. Numbers are rounded to nearest decimal place and may not add up to 100% Newport Table H23 Racial and Ethnic Composition, -• • • Orange New od Beach Race and Ethnkity Number Pwcentace • sa I Oran a Count I Number Percentage Non - Hispanic White 73,499 84.6°% 1,408,486 46.9°% Black 179 0.2% 48,849 1.6°% Asian/Pacific Islander 5,780 6.7°% 486,947 16.2% Hispanic 5,429 6.2°% 987,428 32.9°% Other 1,527 1.7% 70,338 2.34% Total 86,820 100% 3,002,048 1010% SOURCES U.S. Census American Community Survey 2006 This information does include demographic infomration from Newport Coast Newport Beach General Plan Housina Element Household Incomes An unportant component of housing affordability is household income. Upper income households have substantial discretionary income to spend on housing; low- and moderate - income households are more limited in terms of housing they can afford. Median household income in Newport Beach traditionally has been greater than that of Orange County. In 1990, City median household income was 31.5 percent higher than County household median income. In 2000, City median household income had become 41.8 percent higher. Updated information from the American Community Survey indicates that the median household income in Newport Beach was $103,068, 46.7 percent higher than the County. TabIeH24 Median Household Orange County Year Cranae county Incomes and Newport Newport Beach (1980-2006 V7. of COMA 1980 $22,806 $27,516 ( +20.7 %) 1990 $45,922 $60,374 ( +31.5%) 2000 $58,820 $83,455 ( +41.8%) 2005 $70,232 $103,068 ( +46.7 %) SOURCE: U.S. Census. 1980,1990, 2000 and 2006 American Community Survey In discussing lower income households, it is important to identify the income levels associated with labels such as `very low," "low" or "moderate" income. These are usually defined as annual household incomes not exceeding a percentage of the median family income identified annually by the Department of Housing and Urban Development (HUD) for the Orange County area, which was $78,700 in 2007. For planning and funding purposes, the State Department of Housing and Community Development (HCD) categorizes households into four income groups based on the County area median income (AMI): • Ilery Lour Income —up to 50 percent of County area median income • Law Inome-51-80 percent of County area median income • Moderate Income�l percent to 120 percent of County area median income • Above Moderate--above 120 percent of the County area median income Income by Household Type and Tenure Comprehensive l lousing Aftordability Strategy (Cl L\S) data based on the 2000 Census developed by the Department of Housing and Urban Development (HUD) is used to provide an overview of income distribution by household type and tenure in Newport Beach. According to HUD data, 7 percent of the City's total households in 2000 were Extremely Low Income (0 -30 percent AMD, 6 percent were Very Low Income (31 to 50 percent AMI), and 9 percent were Low Income (51- 80 percent ADS. Approximately 78 percent of the households had incomes above 80 percent of the median in 2000 (Table H25). Newport Beach General Plan Housing Element Table H25 Household Income Profile by Household Type Newport rrr Renters Owners Zderlyl Small Large Total. Small Large Total Total Households Families I Families Renters Elderly Families Families Owners Households Extremely Low Income 454 214 0 1,288 440 204 18 1,017 2,305 (0-30% AMI) Very Low Income (31 -50 /o AMI)' 343 230 10 1,116 460 133 10 762 1,878 Low Income (51-60 /o AMI) 322 388 75 1,739 740 315 49 1,289 3,028 Moderate and Upper Income 1,105 2,920 105 10,554 4,910 6,799 1,094 15,283 25,837 (81 %+ AMI) Total 2,224 3,752 1 190 14,697 6,550 7,451 1,171 18,351 33,048 SOURCE: 2007 HUD CHAS Data Book. based on 2000 Census. For planning purposes, the U.S. Department of Housing and Urban Development (HUD) uses Census data to develop special tabulations by HUD income group and special needs category. This data set is collectively known as the Comprehensive Housing Affordability Strategy (CHAS). Certain groups had higher proportions of lower - income households. As shown in Table H25, elderly and large family renter households had higher proportions of lower- income households than any other household type. Approximately 50 percent of all elderly renter households and 25 percent of elderly owner households earned lower income levels (earned less than 80 percent of AMI). Although according to CHAS data, only 190 large family renter households were located within the community, Among these households, 45 percent earned less than 80 percent of the AMI. However, only 6 percent of large family owner households earned very low- and low- income levels. Housing Costs Affordability is determined by comparing the cost of housing to the income of local households. If the costs are high relative to the incomes, housing problems such as overcrowding and cost burden are more likely to occur. This section details the costs of housing in Newport Beach and examines the overall affordability of housing within the City. Housing Sales Prices Home sales prices throughout Orange County have escalated dramatically over the past several years. According to DataQuick Information Systems, the median price of all homes and condominiums in Newport Beach sold in the fourth quarter of 2007 was $1,485,000. Home prices in Newport Beach are second only to Laguna Beach ($1,530,000) and are higher than Huntington Beach ($681,250), Costa Mesa ($670,000), Irvine ($663,000), and the County median of $621,000. As the sales data for homes in Newport Beach by Zip Code in December 2007 in Table H26 shows, housing prices in Newport Beach vary substantially by geographic area. The median price for single - family homes and condos ranges from $1,110,000 in Zip Code 92660 to $4,401,250 in Zip Code 92657 (Newport Coast). MNewport Beach General Plan Housinq Element Table H26 Single - Family and Condominium Home Sales, December 2007 Zip Codo Number of Sales Median Price Homes 92625 11 $2,506,250 92660 11 $1,110,000 92661 1 $2,875,000 92662 n.a. n.a. 92663 21 $1,379,500 92657 (Newport Coast) 14 $4,401,250 SOURCE: DataDuick. 2408 Rental Costs As part of au analysis of the City's Inclusionary Housing In -Lieu fee program a rental survey of apartment units was conducted in 2007 (Table H27). As shown, the overall median rental price for apartments in Newport Beach ranges from $1,773 for a one - bedroom, and up to $2,560 for a three bedroom unit. Ten mobile home parks are located within the community, with some of the units available as rental units. Discussion with management staff at some of the parks indicate that the rental rates for these units range significantly, from $800 up to $4,000, depending on the size and quality of the units and the location of the park. TableH27 Survey of Apartment Complex Apartment I One Bedroom .. Two Bedroom rr Three Bedroom Baypointe $1,899 $2,229 - Bayport $1,590 $1,880 $2,425 Bayview $1,590 $1,880 $2,425 Baymod $1,590 $1,880 $2,425 Mariners Square $1,790 $2,240 $2,485 Newport Bluffs $1,815 $2,295 $3,040 Newport North $1,516 $1,845 - Promontory Point $2,195 $2,395 - The Colony $2 ?05 $3,015 - Newport Ridge $1,905 $2,215 - Coronado at Newport South $1,099 $1,679 - Fairway at Big Canyon $2,150 $3,400 - Average $1,820 $2,246 $2,560 Low $1,099 $1,679 $2,425 High $2,705 $3,400 $3,040 SOURCE: Compted by EPS. 2407 Newport Beach General Plan Housing Element Table H28 Mobile Home Parks Mobile Nome Park Site Address Total # of Spaces Rent /Month $ Bayside Village 343 $1,600 $3,250 300 East Coast Highway Beach and Bay 47 Current information unavailable 7204 W. Coast Highway Cannery Village 34 $1,500 3,000 700 Lido Park Drive (replaced with manufactured homes) Ebb Tide 7 7 Approximately $800 1560 Placentia Avenue Flamingo 7000 W. Coast Highway 20 Current information unavailable Har 53twr 15 Superior Avenue 153 40 Current information unavailable Lido 710 Lido Park Drive 214 $1,400—$4,000 Marina Park 58 $1,5001,800 1770 W. Balboa Blvd. Newport Terrace $9001 824 W. 15th St Seadiffe Mobile Park 117 Current information unavailable 890 West 15m Street TOTAL(S): 10 Parks 972 8800 - 54,000 SOURCE: Personal communication with managers of Mobile Home Parks. February 2008 Housing Affordability The costs of home ownership and renting can be compared to a household's ability to pay for housing, based on the 2007 HUD median income of $78,700 for Orange County and current market prices in Newport Beach ('fable H29). While the median household income in Newport Beach is higher than the County, a significant number of households in the City earn lower income levels. Specifically, 22 percent of households earned very low and low incomes. In addition, elderly and large family renter households had higher proportions of lower income levels than any other household type, indicating that finding affordable, adequately sized housing is difficult for these households. MNewporf Beach General Plan Element Extremely Low 1 person household $18,200 $455 $49,166 4 person household $26,000 $650 $70,247 6 person household $28,100 $702 $75,922 Very Low 1 person household $30,300 $758 $81,890 4 person household $43,300 $1,082 $117,013 6 person household $46,750 $1,169 $126,354 Low 1 person household $48,500 $1,212 $131,056 4 person household $69,300 $1,732 $187,293 6 person household $74,850 $1,871 $202,276 Moderate 1 person household $66,100 $1,653 $178,633 4 person household $94,400 $2,360 $255,107 6 person household $102,000 $2,550 $275,669 ,. Based on HUDMCD 2007 Income Limits b Calculated as 30% of income, divided by 12 months c Assumes 10% down payment, 7% interest rate, 1.25% property tax, and 30 -year mortgage. • Moderate - Income Households Noderate- income households earn 81 to 120 percent of the County's median family income. Moderate- income households are unable to afford any of the condominiums or single family homes sold in the City at current prices. With a maximum affordable rent payment of $1,653 to $2,550 per month, moderate - income households can afford the price of most of the market -rate rental units in the City and the affordable housing in the community listed on Table H12. • Low- Income Househo/d--Low- income households earn between 51 to 80 percent of the County's median family income. Similar to moderate - income households, low- income households are limited to the rental market in Newport Beach. These households are unable to afford any of the homes sold within the city. Low- income households can afford the rent of the affordable housing units in the community (Table H12) a very limited amount of the market -rate one- bedroom apartment units for rent and some of the mobile home units; however they may have difficulty obtaining affordable larger rental units. • I/eg Low -Income and Extremely Low -Income Households - Extremely low- and very low - income households are also unable to purchase any market -rate homes in Newport Beach. Affordable /assisted units in the community are affordable to these households. Overcrowding A housing unit that is occupied by more than one person per room (excluding kitchens, bathrooms, hallways and porches) is defined by U.S. Department of Housing and Urban Development (HUD) as Newport Beach General Plan- Housinq Element being overcrowded. A housing unit with more than 1.5 persons per room is considered to be severely overcrowded. The substantial reduction in the average household size in the City of Newport Beach in the last third of the twentieth century indicates the majority of City households are not overcrowded in terms of persons per dwelling unit. The 2000 U.S. Census figure is 1.9 persons per dwelling unit. This figure is well below state and regional averages. The 1990 U.S. Census indicated that in Newport Beach 66 (0.4 percent) owner- occupied units and 406 (2.8 percent) renter - occupied units included more than 1.01 persons per room. In 2000, these figures were 102 (0.55 percent) for owner - occupied units and 513 (3.4 percent) of renter- occupied units. Approximately 40 (0.2 percent) of owner - occupied units and 275 (1.8 percent) of renter- occupied units were severely overcrowded in 2000. Within Orange County as whole, overcrowding rates are considerably higher: Countywide 7.8 percent of owner- occupied units and 28.3 percent of renter- occupied units were overcrowded in 2000. EMPLOYMENT TRENDS AND PROJECTIONS The California State Employment Development Department estimated the total labor force among the Newport Beach population in January 2008 was 46,100, of whom 44,900 were employed. Labor force is defined as the number of people 16 years of age and older (who reside within the City of Newport Beach) that are employed or are seeking employment. The 2006 U.S. Census American Community Survey estimates that the top eight industries within the City's labor market were as follows: finance, insurance and real estate (10,106); professional services (7,316); manufacturing (4,105); educational services and health care (6,760); arts, entertainment, recreation, and food services (3,216); retail trade (2,778); construction (2,503); and wholesale trade (2,089). Newport Beach serves as a large employment center within the community and the County, including professional occupations associated with major office centers located within Newport Center and the Airport Area as well as medical and research jobs associated within Hoag Hospital within the West Newport Mesa area. As a beachfront community, tourism is also a key component of Newport Beach's economy and lifestyle. As such, a number of jobs within the community are within the service sector. While many of the industries providing the largest number of jobs consist of higher paid occupations such as jobs within the professional, scientific and portions of the healthcare fields, there are also a number of lower -paid service jobs in the community such as jobs in the retail and food services. Most of these workers likely commute from places outside the City. Table H30 compares Southern California Association of Governments City projected employment growth (as presented in the Orange Coxaty Pmgrerr Repars 2000) with projected employment growth for Orange County. This reflects the number of jobs available within the City. The Center for Demographic Research has indicated employment in the City is expected to increase by 4.2 percent between 2010 and 2020. The projected countywide employment increase is 9.9 percent during that same period. The City will have about 4.0 percent of the jobs in Orange County by year 2020. ®Newport Beach General Plan Housina Element Table H30 Employment—Newport Year Newport Beach Orange County CNy Employment/ County Employment Orange County 2010' 75,110 1,796,726 4.2% 2015' 76,980 1,897,350 4.1% 2020' 78,325 1,975,074 4.0% SOURCES: Orange County Progress Report 2000 'California State Employment Development Department Summary Although employment opportunities within Newport Beach will continue to increase, those increases will also continue to comprise a smaller percentage of the overall job creation within the County. Consequently, additional demand for housing within Newport Beach will be as much a result of overall employment growth within the County, as it would be because of employment growth within the city. SPECIAL NEEDS POPULATION GROUPS Certain segments of the population may have a more difficult time finding decent affordable housing due to special circumstances. The state of California defines "special needs" households as the elderly, disabled persons, large families, female- headed households, farm workers, and the homeless. This Housing Element has included students in the "special needs" population. Data from the 2000 Census of Population and Housing indicate the "special needs" population in Newport Beach most in need of affordable housing is senior citizens (those at least 65 years of age). A large percentage of Newport Beach senior citizens in 2000 had a work disability with a mobility or self -care limitation. Students attending the University of California, Irvine (UCI) or Orange Coast College (OCC) in Costa Mesa also reside in Newport Beach. The Student Housing Offices provide information to students on locating housing but students do not necessarily obtain housing through the offices. Also, Student Housing Offices have no way of tracking residences of students. The University of California, Irvine Housing Office provides general information on housing listings from the Housing Office over the past year (2006). This information includes rental rates in Irvine, Newport Beach, Costa Mesa, and surrounding communities. Rental information specific to Newport Beach was not available. That study was based on number of rooms and made no distinction between apartments and homes. Rents then ranged from $1,050 per month for a studio, to $2,300 per month for a three bedroom, two -bath unit Those costs for year 2006, based on students helped, are as follows: Newport Beach General Plan Housinq Element Studio-1 bedroom, l bath $1,05041,150 2 bedrooms, I bath $1,35041,550 3 bedrooms, 2 bath $2,300 SOURCE: UCI Student Services. Housing Inbnrigm, 2007 Persons with Disabilities According to the 2000 Census, 8,386 persons in Newport Beach had a disability, comprising approximately 12.5 percent of the population five years and older. Disabilities are defined as mental, physical, or health conditions that last over six months. The proportion of individuals with disabilities increases with age. Approximately 6 percent of children and adolescents aged 5 to 20 had a disability, compared to 10 percent of adults aged 21 to 64 and 26 percent of seniors. The most prevalent public need for persons with disabilities is access to public places, housing and facilities. Mobility impaired individuals require special housing or structural needs. These include, but are not limited to, wheelchair ramps, widened doorways, grab bars, and access ramps. Certain individuals may require housing that has access to health care facilities. From available Census data it is not possible to determine how many of these handicapped persons need housing assistance. The City has produced 2 units designed for handicapped occupancy in one of its rent restricted, financially assisted housing developments. Rental on these 2 units was restricted to allow use of Section 8 rental assistance Certificates or Vouchers. These units also are located in close proximity to the largest concentration of health care facilities within Newport Beach. Female Head of Household Single -parent households often require special consideration and assistance as a result of their greater need for affordable housing, accessible and affordable day care, health care, and other supportive services. Female- headed households with children in particular, tend to have significantly lower incomes, lower rate of homeownership, and higher poverty levels than other types of households. Data from the 2000 U.S. Census indicates that there were 1,046 female- headed households with children under 18 years in Newport Beach. The data also revealed that 8.1 percent (99) of these female- headed households with children were living below the poverty level. However, the extent of poverty experienced by female- headed families in Newport Beach was significantly lower than the countywide rate of 21.1 percent. Elderly In 2000, the fastest growing segment of the County population was older adults (ages 65 and older). Federal regulations stipulate senior citizens are presumed to have "presumptive benefit" for Americans Newport Beach General Plan Housing Element isilh Disabilities . let mandated provisions. Additionally, special housing needs of many elderly persons result from lower, fixed incomes, physical disabilities, and dependence needs. Since 1960, the elderly population in Newport Beach has grown steadily, and there is no indication of this trend reversing. According to the 2000 Census, 12,295 persons in Newport Beach were aged 65 years and older representing 17.6 percent of the City's population. The percentage of older persons in the City is large compared to the region. In 2000, only 9.9 percent of Orange County residents were 65 years of age or older. Due to aging "baby boomers," the 65 years and older age group has been, proportionately, the fastest growing segment of the total population in the previous two decades. The number of elderly can be expected to increase as persons between the ages of 35 and 64 continue to mature. Many elderly persons residing in Newport Beach are long -time residents. However, many others have arrived more recently to pursue a retirement lifestyle suited to the area's attractive locale. Those persons in the latter category generally are well housed because their housing arrangement was chosen to match their retirement lifestyle and financial situation. Persons in the former category are more often living in houses purchased before real estate prices increased dramatically. Many of these individuals today would be unable to afford the house in which they are currently living. Furthermore, these homes may no longer match their housing needs regarding space, maintenance, and proximity to community facilities. Thus, persons living on low, fixed incomes may be "house rich" in terms of accumulated equity in their homes, but poorly served by the housing unit itself. In such cases, elderly residents may retain their houses only because they wish to remain in the community. Alternative living arrangements in the community, such as smaller units close to commercial and transportation facilities with some congregate services, would better serve the housing needs of this population segment. According to the Housing and Urban Development (HUD) 2006 CHAS data, 8,774 owner and rental households in the City of Newport Beach were elderly households. These households represented 26.5 percent of the total households in the City. Of the elderly renter occupied households, 56 percent (1,249 persons) and 32 percent (2,082 persons) of elderly owner households had problems as defined by HUD2. According to CHAS data, approximately 50 percent of all elderly renter households and 25 percent of elderly owner households earned lower income levels (earned less than 80 percent of area median income). 2000 Census data indicated that 412 elderly persons in the City were living below the federally established poverty line. Escalating housing costs, particularly in the rental housing market, severely impact housing affordability for the elderly because many of the elderly live on fixed incomes. Many elderly residents in the City reside in mobile home parks. A number of long -time elderly residents live in older parks developed in the 1950s and 1960s. Others Eve in mobile home parks close to the bay that cater to the retirement lifestyle. Assistance for low- income elderly is a high priority for the City of Newport Beach. Additionally, there are many social service programs whose clients include the elderly in Orange County. These include the Section 8 "Housing Voucher" programs administered by the Orange County Housing Authority, Meals on Wheels, and various social service programs provided by and through the City's OASIS - Housing Problems as defined by RAID are as follows: cost burden greater than 30% of income and /or overcrowding and /or without complete kitchen facilities or plumbing. Newport Beach General Plan Housina Element Senior Center. A more detailed description of these programs is contained in Appendix H2 to this Housing Element. Additionally, the Bayview Landing Senior Affordable Housing Project was constructed in 2004. With the exception of one "managers unit," all of the 120 units are designated for very low— and low - income seniors. This project received $1 million in funds from the City's "in -lieu" housing fund reserves. In addition, the City provided expedited permit processing, partial fee waivers of entitlement fees and substantial entitlement assistance. Large Households Families are defined as groups of persons related by blood, marriage, or adoption. Households represent all persons living together as groups, whether related or not. The City has identified total households and families with five or more persons. Table H32 shows distribution of number of persons per household as indicated in the 2000 U.S. Census and demonstrates the number of large households in the City of Newport Beach comprises only 3 percent of all Newport Beach households. Table H32 Persons Number of Persons per Household per .. Number of Households Owner Renter 1 11,698 4,865 6,801 2 9,883 7,992 5,018 3 4,170 2,351 1,819 4 2,747 2,012 735 5 1,110 899 211 6 279 219 60 7+ 89 70 19 Total Households 47,734 33,071 14,663 SOURCE: 2000 US Census Homelessness Homelessness continues to remain a growing issue in the United States. Factors that contributed to the increase in homelessness ir�includes a lack of housing affordable to low and moderate - income persons and families, loss of jobs, increases in_tg number of persons whose incomes fell below the poverty level, reductions in public subsidies to the poor, and de- institutionalization of the mentally ill. Homelessness is a regional problem throughout Southern California. Homeless persons and families exist in every city and populated unincorporated area of Orange County. Due to the lack of accurate data regarding the homeless population. v -arious organizations, institutions, and agencies often generate strikingly different °-1�ls;o}testim,=s of homeless individuals /families. • Newport Beach General Plan Housina Element On October 15. 2007 the state enacted SB 2. which amends State Housing Element Law. This legislation took effect lanuan 1 2008 and will apply to the gig's Housing Element This legislation Housing Element law mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries "Homelessness" as defined by the U.S. Department of Housine and Urban Development. describes an individual (not imprisoned or otherwise detained) who: 1. Lacks a fixed. regular- and adequate nighttime residence: and • A supervised publicly or privately operated shelter desigLied to provide teml2o= Uving accommodations .. .•_.• welfare hotels, •ng •r. - shelters. and transitional the mentally "11 - • An institution that provides a temporary residence for individuals intended to be institutionalize& public or private place not designed • • • . s -.-. accommodation • •- t• regular This definition does not include persons living in substandard housing (unless it has been officially condemned); persons living in overcrowded housing (e.g.. doubled up with others ). persons being temporarily with family- or friends.) a description of homeless population that is mentally ill developmentally disabled substance abusers and victims of domestic violence, runaway and other homeless subpopulations should be included. The legislation does not specify, how this data is to be collected, only that it should be included if data is available. County Information The County has developed and assists in funding a housing and service delivery system —the Continuum of Care —that responds to the needs of the region's homeless. The Continuum of Care was established through a community -based process to ensure the region's residents and homeless are empowered to acffect changes in the existing social services system. The Orange County Community Forum, Orange County Leadership Cabinet, and Orange County Department of Housing and Community Development have shared responsibility for planning and implementing the regional Continuum of Care with the support and participation of all 34 cities within the County. including Nye port Beach as well as homeless service and housing prodders and other commurity gt�tp: It is estimated that the number of homeless persons in Orange County ranges between 27,732 and 35.065 individuals. According to the Orange County 2007 Homeless Needs Assessment, there were approximately 3,649 unduplicated persons identified in shelters and on the streets of Orange County in January- 2007. The Homeless Needs Assessment does not present data by Gory. Extrapolation of Newport Beach General Plan Housina Element the county data es�ates that there are 27,732 incidents of homelessness in Orange County over a 12 -month period .4 in - 007 Point -In -Time Count and Survey and 2007 Homeless Needs lsse anent included data collected 006 easelead dfttft was eaheeted from shelter service providers and motes 4te total number of 6rnes hat"elegg persons were sheltered er tmned wway frarn shelter ever a ewelve mantit period. Also ineluded iq the tataland provided a count of th number of chronically homeless (street homeless) individuals that typically do not seek shelter. eke According to this assessment. the total number of homeless incidents reflected in this data collection process was 35,065.--'Of these persons, 24,545 are persons in families with children and 10,520 unaccompanied individuals. Further discussion with service providers indicates that of the homeless population in the county, approximately 4,500 have a mental illnesss. Orange County has a total homeless shelter bed inventory of 3,400 comprised of 1,512 emergency shelter beds and 1,888 transitional shelter beds. The County also has 1,875 permanent supportive housing facilities for individuals and families with children. According to the 2005 -2010 Orange County Consolidated Plan, there is an unmet homeless housing need gap-of 19,575 beds for homeless individuals and 118,537 beds for families with children. The largest housing gap is for permanent supportive housing. Additionally, there are current unmet needs fga for individuals in the following categories (expressed as estimated need /current inventory/unmet need [gap]): chronic substance abusers (6,328/1,018/5,310); seriously mentally ill (2,218/51/2,167); veterans (471/0/471); persons with HIV /AIDS (2,029/33/1,996); victims of domestic violence (6,988/375/6,613); and youth (492/79/413). Tthere are homeless who fall into more than one sub- population category and /or not all homeless fall within the federal Department of Housing and Urban Development designated sub - populations listed (e.g., homeless families who are under- employed and unable to afford housing would not be captured under the sub - population categories listed, but would be captured in the total homeless count of 35,065). interested business leaders) to identify die gaps and untnet ne-P-44 _4 the Gmu"".49 hernelesq. Leadership and coordination of Orange County's Continuum of Care planning process is the shared responsibility of the Orange County HCS Department, Info Link Orange County, and the OC Partnership. Known as the Community Forum Collaborative (Collaborative), this public- private- nonprofit partnership helps ensure comprehensive, regional coordination of efforts and resources to reduce the number of homeless and persons at risk of homelessness throughout Orange County. The cumulative role of the Collaborative is to act as a regional convener of the year -round CoC planning process and as a catalyst for the involvement of the public and private agencies that make up the regional system of care. Orange County Housing and Community Services Department. County of Orange. February 2008 s Orange County Housing and Community Services Department. County of Orange. February 2008 Personal Communication: HOMES Inc., April 1, 2008. MNewport Beach General Plan Housina Element The CoC aims at ending chronic homelessness by 2012 through the following goals: • Expand chronic homeless population served • Expand services and shelter for chronic homeless veterans • Community education and outreach • Implement regional discharge plan Orange Coun • is also involved in developing a strategy to draft and implement a Federal initiative called the 10 Year Plan to End Chronic Homelessness To assist in this effort the City of Newport Beach has designated a special representative to act as liaison to the County to hem draft the 10 year Plan to End Homelessness in Orange County. This local representative will continue to have active participation in the County's Continuum of Care program Local h4ofmafiof1Need The regional nature of the homelessness problem and the lack of reliable data for this population. makes it challenging for Newport Beach to define and serve its fair share of the homeless population. With a population of 84.000 residents within the County of Orange =a County- with 3 million people and 34 municipahties— Newport Beach does not control either the movement of homeless people across its boundaries or the counW -level resources that are needed to help people leave homelessness. While the County Needs Assessment estimated that there were 35.065 persons homeless in the County, this data did not provide information on homelessness per City. The 2000 U.S. Census did not identify any homeless persons in the City of Newport Beach. However, according to the Newport Beach Police Department, traveling through +e Gity; pstreettlatly sretmd Balboa Petti"sula and ott Superior Aventle. approximate 5 -15 homeless individuals are visible on a regular basis within the community. single -males. the Police Department does not keep tpeei€te- statistics, ;they note that there tends to be a higher number of homeless people around the beach areas during the warmer summer months.' QC Partnership works directly with nearly- 200 agencies by serving as a liaison between non - profits local state and federal government agencies and other private and public funding sources. According to the 2007 Orange County. Partnership. Client Management System Report, of the 3.187 unduplicated homeless and at -risk clients that have been enrolled in Orange County programs-. 17 G Sgt Evan Sailer. Newport Beach Police Department, _Apr jypg2008. Newport Beach General Plan ... The CoC aims at ending chronic homelessness by 2012 through the following goals: • Expand chronic homeless population served • Expand services and shelter for chronic homeless veterans • Community education and outreach • Implement regional discharge plan Orange Coun • is also involved in developing a strategy to draft and implement a Federal initiative called the 10 Year Plan to End Chronic Homelessness To assist in this effort the City of Newport Beach has designated a special representative to act as liaison to the County to hem draft the 10 year Plan to End Homelessness in Orange County. This local representative will continue to have active participation in the County's Continuum of Care program Local h4ofmafiof1Need The regional nature of the homelessness problem and the lack of reliable data for this population. makes it challenging for Newport Beach to define and serve its fair share of the homeless population. With a population of 84.000 residents within the County of Orange =a County- with 3 million people and 34 municipahties— Newport Beach does not control either the movement of homeless people across its boundaries or the counW -level resources that are needed to help people leave homelessness. While the County Needs Assessment estimated that there were 35.065 persons homeless in the County, this data did not provide information on homelessness per City. The 2000 U.S. Census did not identify any homeless persons in the City of Newport Beach. However, according to the Newport Beach Police Department, traveling through +e Gity; pstreettlatly sretmd Balboa Petti"sula and ott Superior Aventle. approximate 5 -15 homeless individuals are visible on a regular basis within the community. single -males. the Police Department does not keep tpeei€te- statistics, ;they note that there tends to be a higher number of homeless people around the beach areas during the warmer summer months.' QC Partnership works directly with nearly- 200 agencies by serving as a liaison between non - profits local state and federal government agencies and other private and public funding sources. According to the 2007 Orange County. Partnership. Client Management System Report, of the 3.187 unduplicated homeless and at -risk clients that have been enrolled in Orange County programs-. 17 G Sgt Evan Sailer. Newport Beach Police Department, _Apr jypg2008. Newport Beach General Plan • • :1rTi1 clients have listed Newport Beach as their last know permanent address. (Service providers most often utilized "last city of residence" as die means to determine a client's city_ of residence- for reporting _p= ores To help ascertain the characteristics of the Cit}%s4eeal- homeless and at-risk population. contact was made with groups that provide assistance to persons in need of emergency shelter and assistance. These agencies that provide housing and other services for the homeless in the region include the Orange County Housing Authority, Serving People In Need (SPIN), Families Forward, Human Options, Colette's Children's Home, and others. Detailed descriptions of services offered by these agencies are contained in Appendix H2 to this element. ■ Serving People In Need (SPIN)'s operates a Substance abuse Recovery Program (SARP) that provides access to recover; programs to homeless and low income individuals. The rograamm includes room and board counseling and supplemental services focused on employment individuals within substance abuse issues in Newport Beach is likely to be larger. SPIN representatives indicate approximately 90 percent of homeless individuals have a substance abuse issue either involving alcohol or drugs • Colette's Children's Home (CCW provides shelter for homeless women and children throughout Orange County. CCH operates four homes in Orange County including Anaheim. Fountain Valley. and two homes in Huntington Beach. Since 1998. CCH has served over 800 women and children. CCH indicates that approximately_ 20 requests have originated from women and children in NcUort Beach • Human Options which provides housing and services for women and children in Orange County that deal with the effects of domestic violence, estimates that of the 2.000 persons per year that receive housing and counseling services. about 40 to 45 are from Newport Beach. According to Human Options the number of women and children seeking services per year has increased slightI4% but that may be due more to the center becoming more well -known and not due to rapid increase in need.' • Families Forward a local homeless service provider, estimates that of the 2,500 persons annually served in south Orange County. between 150 to 200 persons that request assistance are from Newport Beach • According to the Orange County Department of Education, which collects data on the number Orange Countg Client Management Information System Year End Progress Report. OC ParmenhiF December 2007. s Human Options, Personal Communication. April 2008. MNewpart Beach General Plan Housin4 Element School District which serves Newport Beach and Costa Mesa Discussion with the Neu ort- DMesa_School District indicates that only a small portion of these students are enrolled in Newport Beach schools (fewer than 15 students Conversations with local service providers also indicate that, while the number of homeless in the City is difficult to quantify, there is a growing number of "at -risk" individuals that are having trouble meeting rising rental and mortgage prices. These persons are not visibly homeless but have difficulty finding and affording housing in Newport Beach. These include senior households that require help with one -time rental assistance or singles and families that live within the City. Due to the recent reeessian downturn in the mortgage and building industry, there are a growing number of individuals Ata vho have lost their jobs or have had a reduction in employment hours and have difficulty making their mortgage payments and other bills. These individuals often request financial or service assistance...... homeless women md ehi4dren dtrottghaw Or*nge County. GGI aperates fettr hernes in Grange and sernees f"r warnen mid ehildreft i" OrRege Geenty that deal with tile The City's strategy to address homelessness in the— C- kyNewport Beach is to adopt the regional homeless priorities and strategies, listed herein, as its own. The City will continue to work with the area's Continuum of Care (CoC) providers to address the CoC priorities and goals and -will continue -In addition, the City continues to utilize CDBG funds to support local and regional homeless and at- risk homeless providers (Appendix H2). No emergency shelters or transitional homeless facilities are located within the community, However, a number of homeless facilities are located in nearby Code currendy underwac and expected to be complete by the end of 2008 Tthe City will also identify appropriate zones within the community where homeless and transitional housing are permitted as per SB Z regulations. 9 llllll•[•[: i•Fl•1l•[�IIIF'll \Hf1[•i[I�.Yi[ X11[ 31= R• TiliiT�YiZl�it iltl�G ]�� \iftiF•P7ifF1i'ti�G39i1F'I G1Iii:Tjj �iil ]S3 C11iI1[lYC1T_�[4 in households since this is move of an phenomenon 2005. •' 1 indicator 0' 1 . •1 - • • • • i• i. 1• •1 1' i° Serving People in Need (SPIN). Personal Communication. April 2008. 11 Families Forward: Transitional Housing Program. Personal Communication. April 2008 12 Human Options, Personal Communication, April 2008. Newport Beach General Plan Housina Element Farm Workers the special housing needs of farm workers result from low wages and the seasonal nature of their employment. The 2000 Census of Population and Housing estimated farm workers comprised less than 0.2 percent of the population in Newport Beach and approximately 1 percent of the County population. Therefore, demand for housing generated by farm workers in the City was nominal and could be addressed adequately by overall housing affordability programs in the City and the County. This remains the case in the City of Newport Beach. HOUSING NEEDS RHNA Allocation In accordance with State Housing Element law, the Southern California Association of Governments (SCAG) has prepared a Regional Housing Needs Assessment (RHNA) to identify the housing need for each jurisdiction within the SCAG region. This assessment was prepared for the 2006 -2014 period. The RHNA allocates Newport Beach's share of housing units required to satisfy housing needs resulting from projected growth in the region. To accommodate projected growth in the region, SCAG estimates the City needs to target its housing unit production to accommodate 1,769 new housing units. State law requires SCAG to distribute new units on the basis of income to avoid further impaction of localities with relatively high proportions of low- income households. It also is required that existing housing need be identified. SCAG estimated the existing need in Newport Beach is for 1,769 dwellings. The tables below indicate future need for housing in Newport Beach and its distribution by income group as calculated by the RHNA. The "special needs" population in Newport Beach most numerous and in need of affordable housing is senior citizens (age 65 and older). Above 389 319 359 702 1,769 22a/a 18% 20% 40% 100% SOURCE: Southem Caldomia Association of Govemments. 2007 Inventory of Land Suitable for Residential Development The City of Newport Beach is not a residential developer and therefore must rely on private developers or organizations that have the capacity to acquire and manage affordable housing or "at- risk" housing developments. The following section of the Housing Element provides an inventory of land determined suitable for development of affordable housing. In 2006, the City completed a comprehensive update of its General Plan including an update of the Land Use Element. The General Plan recognizes that most of the City- will be conserved with its exisdng patterns of uses and establishes policies for their protection and long -term maintenance. However, the General Plan identifies several areas where substantive land use changes may be anticipated over the next 20 years. Other than Banning Ranch, this would occur within existing developed areas of the City as infill and replacement of previously permitted retail and office Newport Beach General Plan Housina Element development capacity. These areas provide an attainable opportunity to create approximately 5,000 new housing units in the community, (up to 3,758 units excluding the Banning Ranch area). In addition, all of the new residential units will be subject to the provisions of the City's inclusionary housing program. The City's goal over the planning period is for an average of 15 percent of all new housing units to be affordable to very low —, low -, and moderate- income households. Since a limited amount of vacant land remains in the community, future housing development in accordance with the update of the General Plan would be achieved through infill development and reuse of sites with existing, possibly obsolete land uses. The land use changes in each of these areas are presented in Table H34. VACANT Banning RV and OS Planned Community 1 375 Land Use Element requires a mixture of unit types Ranch MU -H2 (PC) 2,200 and densities in development plan. Corona Subject to provisions of 550 units may be infill on surface parking lots.'" del Mar RM Interim Development 8 22 units per acre. 8 units are possible on vacant site Center Review Process limits INRLLIMIXED -USE Airport Planned Community 2,200 as replacement of existing office, retail, and/or Area MU -H2 (PC) 2,200 industrial uses at 30 to 50 units per acre of which 550 units may be infill on surface parking lots.'" Newport MU -H3 Planned Community 450 Subject to maximum of 450 units and zoning height Center (PC) limits MU -W -1: ■ Mixed -Use FAR: 1.25 , with maximum 0.75 for Mariners MU -W1 and Subject to provisions of residenfial Mile MU -H1 Interim Development 300 ■ Multi - Family Residential: 12 dulacre (50% of sfte) Review Process MU -11-1: ■ Mixed -Use: FAR 1.5, with 1.0 for residential ■ Multl- Family Residential: 20.1 -26.7 du/net acre Newport RM -18 Subject to provisions of Mesa dulacre Interim Development 100 Multi -Family Residential: 18 dulnet acre Review Process Balboa Peninsula Area 500 -700 Lido MU -W2 and Subject to provisions of MU -W2: FAR 1.5 , with 0.8 for residential (up to 26.7 Village RM (201ac) Interim Development 165 dulacre) Review Process RM (20 dulacre) MU -H4: Cannery MU -H4 ■ Mixed -Use: FAR 1.5, with 1.0 for residential Village MU -W2 300500 ■ Multi- Family: 20.1 to 26.7 du/net acre MU -W2: ■ Mixed -Use: FAR 1.25, with 0.75 for residential Balboa Village MU -V MU -V: FAR 1.5, with 1.0 for residential Newport Beach General Plan Housina Elemen SOURCE City of Nevgiort Beech Planning Department and General Plan MU- H1= Mixed-Use Horizontal RV= Residential Village RM = Multiple-Family Residential MU-H2 = Mixed-Use Horizontal 2 MU -Wt =Mixed -Use Water 1 MU-V = Mixed-Use-Vertical MU-113 = Mixed-Use Horizontal 3 MU -W2= = Mixed-Use Water 2 OS =Open Space _MU -H4: =Mixed -Use Honzontal4 MU-W3= Mixed-Use Water PC= Planned Community ' Abwe existing uses Residential development total excludes 1,375 potential units within Banning Ranch, Development will not I ky,occur during the 2008 -2014 RHNA Planning Period. Due to the high proportion of sensitive habitat areas. the actual number of buildable acreage will be determined in subsequent studies to be conducted in accordance vdtit state and federal regulations. Average Density of 30 units/acre is the default density required by Housing Element law to accommodate lower income households for urbanized areas John Wayne Airport Area The Airport Area encompasses the properties abutting and east of John Wayne Airport JWA) and is in close proximity to the Irvine Business Complex and University of California, Irvine (Figure Hl). Existing uses include research and development, office, high technology, industrial and commercial uses. Development in the Airport Area is restricted due to the noise impacts of JWA. Much of the southwestern portion of the area is located in the JWA Airport Environs Land Use Plan (AELUP) 65 dBA CNEL, which is unsuitable for residential and other "noise- sensitive" uses. Additionally, building heights are restricted for aviation safety. The General Plan provides for the maintenance and limited expansion of the currently developed mix of uses. Additionally, it identifies this Area as one of the greatest opportunities in the community to create new residential neighborhoods including workforce housing, through the replacement of existing uses and new construction on underudhzed surface parking lots. The housing capacity for the John Wayne Airport planning area was determined by the maximum permissible new automobile trips that could be generated for the statistical area in which it is located (Figure LU3 statistical area L4), in compliance with City Charter Section 423 and Measure S. Land Use Element Policy LU 6.15.5 allocates a maximum of 2,200 housing units in areas designated as MU -H2 on the General Plan land use diagram (Figure HI and Figure H2). Housing and mixed -use areas are not located within areas exposed to noise levels of 65 dBA CNEL and higher. All of the units may be developed as replacement of existing uses, while a maximum of 550 of the total may be developed as infill on existing surface parking lots with the latter replaced in parking structures. Newport Beach General Plan CITY of NEWPORT BEACH GENERAL PLAN FIGURE Hl AIRPORT AREA ©Sub -Area Conceptual Development Plan Area Tidelands and submerged lands '-**-i City Boundary Land Use Delineator Une ON.o Highway 65 CNEL Noise Contour Refer to anomaly table I OF" 0 250 500 1,000 burce CNdHwwon bxn va EV Nwcuoc Nq,K1MARfit. 106 M Odv wll4 �; EIP CITY of NEWPORT BEACH GENERAL PLAN Figure H2 AIRPORT AREA RESIDENTIAL VILLAGES ILLUSTRATIVE CONCEPT DIAGRAM Legend OPPORTUNTy SIZES _ xUPOSED OPEN SPACES A J �13 IMPROVED RESIDENnAL STREETS JI • L__._ 7 PROPOSED RESIDENIIAL STREETS ♦ r\ r ♦ i \ • I ' 41111 PROPOSED PED6TRIAN WAYS • - - -• 65CNEL NOISE CCMOUR- CONCEPTUAL PLAN REQUIRED 1 i i • ♦ . II • I I L__ F- ••. �% � ; s t ! s. • • TF 6 CNEL Nose Ccnto A is shover 1pr JWSIrabY pu! ws ony. I • � t t ulre•♦.••••o� __. li o. ss a It o rc m ss L._ s Vp Ra D"nc up MMECTNL BER. 1057" Nw =I% EIP Figure_ H2_ Airport _Area_Conoept_Diagram.mxd Jutyl2007 Hou,sinca Eleme Land Use Element Policy LU 6.15.7 stipulates that residential units be developed at a maximum density of 50 units per acre and mil?imum of 30 units per acre. As the l -rG -1-12 district contains approximately 207 acres, which, if hilly redeveloped, would yield 6,210 to 10,350 units considerably exceeding the limits imposed by Policy LU 6.15,5. Conversion of the entire area designated for housing is unlikely due to the presence of existing viable office, industrial, and retail uses. For the purposes of determining a realistic level of potential development, existing uses were sun-eyed Ind properties determined to be underutilized and subject to conversion were identified (Housing Element Appendix 1-14) Additionally, the owners of a number of properties approached the City- and expressed interest in redeveloping these sites for housing. Based on these analyses and input, areas considered highly suitable for change are depicted on Figure H1 and Figure H2, which depicts a series of clustered residential ` villages." Potential housing unfits include a mix of building types ranging from townhomes to high -rises to accommodate a variety of household types and incomes. Cumulatively, areas determined as susceptible to change contain approumately 125 acres. Of these; 24.9 acres consist of surface parking lots, which would be limited by Policy LU 6.15.5 to a maximum of 550 units (see above). If developed it the maximum density of 50 units per acre, 11 acres (44 percent) would be- re -used, while ,it tine ininiinum density of 30 units per acre, 18 acres (72 percent) would be re -used. The remaining 100.2 acres would be subject to the replacement of existing uses and buildings. If the 1,650 remaining units permitted by policy are developed here, a maximum of 33 acres (33 percent) would be redeveloped at 50 units per acre and 55 -acres (55 percent) at 30 units per acre. If no housing is developed as infill oil the parking lots and all 2,200 permitted units are developed as replacement of existing uses, 44 acres would be required at the maximum density and 73 acres at the minimum density. Housing development, however, is likely to occur as both infill and re development as evidenced by submittal of applications by property owners such as Boll and Conexant which both own large parcels of land. Recognizing that the introduction of residential uses within existing business and industrial areas necessitates sufficient critical mass of units and amenities to create a viable neighborhood; General Plan Policy LU 6.15.6 defines standards for the development of cohesive acid integrated neighborhoods. It stipulates that residential neighborhoods. contain a minimum of 10 contiguous acres centered on a neighborhood park and other amenities. The fast phase of development must contain at least five gross acres, exclusive of rights -of -way, which Policy LU 6.15.7 requires to be developed at 45 to 50 units per acre averaged over the entire first phase development area. This would vield between 225 to 250 units, "t5 percent of which must be affordable as per the City's Inclusionary Housing Program. To determine the market feasibility of unit developed at densities prescribed for the John Wayne Airport Area, housing development densities in the adjoining In -ine Business Complex (IBC) were reviewed. Data indicates that those units constructed have averaged�t —a0 units per acre. It can be reasonably expected that the John Wayne Airport Area, could support comparable densities. The feasibility for infill and re -use for Housing is supported by the fact that several property owners and developers Have approached die City of Newport Beach to request consideration for new Housing development, such as owners of the Conexant site where development on t 5.4 of the total 26.9 acres havrhls been proposed. Conexant submitted a Conccpwal Development Plain in July 2007, which involves the redevelopment of new residential and mixed -uses as infill and replacement of existing; office and business park functions currently on the site. At 30 units peracre this would yield 462 units and at 50 units per acres it would yield 770 units. To the west of Conexant, property owners of the Newport Beach General Plan M Housing Element Koll Center Newport have expressed interest in accommodating housing, with approximately 25 acres of surface packing available for development. The City is currently preparing a Community Development Plan for both properties to facilitate residential development. Newport Center Newport Center is a regional center of business and commerce that includes major retail, professional office, entertainment, recreation, and housing in a master planned mixed -use development. Fashion Island, a regional shopping center, forms the nucleus of Newport Center (Figure H3). The General Plan identifies the goal of creating a successful mixed -use district that integrates economic and commercial centers serving the needs of Newport Beach residents and the sub - region, with expanded opportunities for residential development. The Land Use Element creates a new residential land use designation of Mixed -Use Horizontal 3 (W -1­13) on the northern portion of the subarea. The MU -H designation provides for the horizontal intermixing of regional commercial office, hotel, multi-family residential, and ancillary commercial uses. Up to 450 new higher- density multi- family housing units are accommodated in this area. A detailed parcel- specific survey of existing vacant and underutilized parcels that can accommodate the new 450 residential uses is included in Housing Element Appendix H4. The Irvine Company (TIC) is the main land owner /developer in the Newport Center area. and has eend - sub mitted - ° Planned Community Development Plan to develop 430 of the permitted 450 mixed -use units (within Block 500, 600 and San Joaquin Plaza) was approved in December 2007 -_ The maximum height limits within Block 500 and 600 is 295 feet, while buildings are limited to 65 feet within San Joaquin Plaza. Pettsity levels have yet to be determined-Maximum dwelling units rather than density was established for this area. The City requires that an Affordable Housing Implementation Plan (AHIP) be prepared for projects with more than 50 residential units. As part of the piepesed—a roved 430 mixed -use units, the Planned Community Development Plan includes an Affordable Housing Plan (.SHIP), a required component of the City's existing Affordable Housing Implementation Program requirements. The North Newport Center AHIP was approved in December 2007. The requirement for affordable housing is based on income categories. The Irvine Company is required to provide either very low —, low -, or moderate - income housing, or a combination of income categories, using the percentages shown below: • Very Low: 43 units (10 1/6) • Low: 65 units (15 1/o) • Moderate: 86 units (20 %) these income categories, the North Newport Center Planned community AHIP discussed the development of a 0.75 -acre site near San Joaquin Hills Road and San bLguel Avenue The General W Newport Beach General Plan a 1tillJ�j!/ 11ma- 0- SEEM M ©R� MU -H3 41 0 EME 11111111k.� ,.rl MU -H3 0 / PF :O•M \ O \1 CITY of NEWPORT BEACH GENERAL PLAN Figure H3 NEWPORT CENTER/ FASHION ISLAND OSub -Area Tidelands and submerged lands City Boundary Land Use Delineator Line 0'*.i Highway Refer to Anomaly table I sFw o sw soo r uoo swco: cera rxm�ae namesn.odme. moaerrueeerr iosrvm om: �vrvne li == EIP THIS PAGE LEFT BLANK INTENTIONALLY Housing Element Plan allows for 10 residential dwelling units on the site. If all units were affordable, a 35% density bonus would be applied allowing_ 14 units. However. the AHIP restricts the units at this site to no more than 50% affordable. The Irvine Company also owns the Bays Apartment complex consisting of three buildings know as Bahwood. Ba)tiiew. and BayTort. In order to meet the AHIP requirements. The Irvine Company would provide affordabilitcovenants for 43 to 86 existing units for a period of at least 30 years. The AHIP stipulates that affordable units shall not be concentrated in any one building in the Bays. The units must be rented to households qualifying as very low— low- or moderate - income households In addition, there are 79 units approved with the Santa Barbara Condominium project within Newport Center that inek dit= ,quires 46-12 affordable low- and moderate - income housing units to bg constructed off -site. All of the affordable units will be required to be affordable for a period of 30 years. This project was approved by the Newport Beach City Council in 2006 by the Local Coastal Commission in 2007. Another private land owner in the Newport Center area is presently in discussion with the City to develop a 30 -unit multi-family rental and condominium project on the site presently occupied by the Newport bo AJ34 Tennis Club. This is a market -rate development that would be subject to the City's in -lieu fee program. The developer will have a choice whether to provider affordable units or to pay the City's in -lieu fee. Banning Ranch Located within the City's Sphere of Influence (SOI) in the western -most portion of the Newport Beach Planning Area, the Banning Ranch area encompasses approximately 518 acres, of which 465 acres (including 47 acres of water features) are under the jurisdiction of Orange County and 53 acres are within the jurisdiction of the City of Newport Beach. The site is located within the coastal zone boundary and is subject to the provisions of the Orange County Local Coastal Program (LCP). However, the site is referred to as a "white hole," because neither the City's nor the County's LCP provides land use designations for the Banning Ranch area (Figure H4). The Land Use Element prioritizes the retention of the Banning Ranch property as open space, consolidating existing oil operations, restored wetlands and habitat, and a community park to serve adjoining neighborhoods. However, due to the significant cost of purchasing the site and amount of the area that would need extensive habitat restoration, a large amount of revenue would need to be generated to help fund preservation of the majority of the property as open space. Should the property not be acquired for open space, the Land Use Element considers the possible development of a mixed- density residential village that would include open space, convenience commercial, and small hotel uses. The Land Use Element designates the Banning Ranch Area as Open Space (OS, and Residential Village (RV). This designation provides for the development of a planned residential community that integrates up to 1,375 single - family detached, single -family attached, two family, and /or multi- family residential units with supporting schools, parks, community services, local- serving convenience commercial uses and services, and open spaces. Future development would require a master plan or specific plan to depict the specific uses, development standards, density levels, infrastructure improvements, design guidelines, and financial plan. Due to the long time frame for potential development of the site, including the necessity of obtaining the necessary federal and state regulatory permits and the creation and approval of a planned Newport Beach General Plan Housing Element community development plan, residential development of Banning Ranch will not occur during this Housing Element cycle. However, die owners of the property are actively engaged in planning with the Ciq,. Balboa Peninsula Area The Balboa Peninsula area is comprised of a series of coastal districts linked by the Newport Boulevard /Balboa Boulevard commercial and residential corridor. These include Lido Village, Cannery Village, McFadden Square, and Balboa Village. The General Plan identifies the potential for new mixed' -use development within these areas (Figure H5 and Figure I -16). These areas are highly urbanized and are adequately served by existing infrastructure including sewer, water, police, and fire services. These areas also have no significant environmental constraints that would impede new housing development. Cannery Village Cannery \tillage is the historic center of the City's commercial fishing and boating industry and contains a mix of small shops, art, galleries, professional offices, and service establishments. Recent redevelopment activity within this area has been composed of new residential and mixed -use development such as Cannery Lofts, a 22 -unit live /work project. All of these units were market -rate, loft -style ownership units. Older developments include some single - family residential units combined with commercial uses on single lots. The updated Land Use Element designates the Cannetj- Village Area as Mixed -Use Florizonml 4 (MU -H4) and Nlixed -Use Water 2 (MU -\V2). The intent of die NIU -111 land use category is to create a distinct district or neighborhood containing multi- family residential homes with clusters of mixed -use ,and /or commercial buildings at intersections. Nliied -usc buildings are permissible throughout the area. Density ranges For nmld- family residential uses are 20.1 to 26.7 units per net acre. Mixed -use parcels have a maximum floor area ratio of 1.5 with a maximum floor area to land area ratio of 05 for commercial and maximum of LO for residential uses. The MU -W2 designation applies to waterfront parcels with n Cannery Village. Permitted uses include mixed use structures that vertically integrate housing xvithin retail uses, where the ground floor shall be restricted to retail and other pedestrian -active uses along, the street frontage and /or die upper floors used for residential units or non- residential uses including retail and office. Mixed -use parcels have a maximum floor area ratio of 1.25 with a maximum floor area to land ratio of 0.35 for commercial and a maxirnurn of 0.75 for residential purposes. Tile average size of parcels designated as i\4U =W2 and MU -1I4 in Cannery Village 0.08 acre or 3;840 square feet. Lida Village Lido Village is primardy developed with commercial mercial rises including grocery stores, restaurants, salons, home f imisltings; apparel, and other specialty shops. It also includes Lido INIarina Village, a pedestrian - oriented waterfront development that includes visitor- seiving commercial uses, specialty stores, and marine uses. The guiding General Plan goal For Lido — % llage is to create a mixture of land uses within a pedestrian - oriented village environment. To facilitate these uses, a portion of the Lido Village General Plan subarea has been designated as Mixed =Use Water 2 (NfU -\V2) and Multiple Residential (RM(20 /ac)). The MU - \ \72 designation applies to 'waterfront parcels. Permitted uses =Newport Beach General Plan CITY of NEWPORT BEACH GENERAL PLAN Figure H4 BANNING RANCH o5ub_Area Tidelands and submerged lands '�. City Boundary Development Footrpint to be determined try State and Federal Perrnitting Agencies cFeet 0 SW OW bYCO: GIyd NOnppIM0.T mEEPPmcwi.:; WO.E TM k IM7901 Ode: 1&1M El P CITY of NEWPORT BEACH GENERAL PLAN Figure H5 BALBOA PENINSULA LIDO VILLAGE/ CANNERY VILLAGE/ MC FADDEN SQUARE OSub -Area Tidelands and submerged lands 'V City Boundary 'No Highway p i d o sn Swce CT'ar Na.Wpa Bao':n oM flo hrsxa.., Pp.1ECf NIMEe'. 105)9(11 Dah'. OBRBI05 LAND USE POLICY i c ®Magid Uses, VlmYOr- Serving and Retail Comrnercol, Overnight Lodging Facilities =D Genera lone Heignbomood Comaercoi T� i 1'l Mum -Famlry ReSdental E '✓ "or.Servng and t anne - 'eaten F. 1 1 l Cc, e: col a M:xea lue L 1 1 ©' Mved U99 rErmttfed In any Locatlon and Required at Sheet Intenec9 m. • Mum Famlry ReOdeMlal ona Tow 1 antes - any location except Inters tom F. ✓ti1° 5`-'r.ng CO3-M& cic jj linten;ectom Mixeg Lise or nner FQ c� ti Go 5 y RT r Fgsr J, l� e <1 CITY of NEWPORT BEACH GENERALPLAN Figure HIS BALBOA VILLAGE Sub -Area Tidelands and submerged lands City Boundary '-Nk,r Highway 0 g �r. 0 125 2 0 Bo Lary.1 W+ Beall aM EIPASlotlale PROJECT NWBER 1057901 be IV12M LAND USE POLICY E }� OVisitor- Serving Commercial and O Commercial or Mixed -Use O _a. A Public Institution B (Housing above Retail or Office) C Two - Family Residential H5_Balboa_Village.mxd May /2007 Housinq Ele include mixed -use structures that vertically integrate housing with retail uses, where the ground floor shall be restricted to retail and other Pedestrian - active uses along the street frontage and /or the upper floors used for residential. units or non- residential uses including retail and office. i\,Exed -use parcels xvitbin the .Lido Village area have a maximum floor area ratio of 1.3 i;ith a maximum commercial floor area of 0.7 and a maximum of 0.8 for residential purposes. This translates to a maximum density of 26.7 dwelling units per acre for mixed -use projects. The RAf(20 /ac) designation is intended to provide multi - family residential development containing attached or detached dwelling units up to 20 dwelling units/acre (Figure.1-17). As shown in Rousing .Element Appendix 1-I4, up to '165 new dwelling miits can he accommodated within Lido Village on sites currently occupied by commercial and office uses. Balboa Village Balboa Village has served as the center for recreational and social activities on the Peninsula. Many of the existing land uses include retail uses and are visitor- oriented and seasonal in nature. The Balboa Village core is surrounded by residences, with isolated pockets of commercial uses scattered along Balboa Boulevard, Balboa Village and the greater Peninsula have experienced a transition to year - round residential occupancy while the visitor uses have continued. The General Plan calls for a portion of the Village Core area to be designated as 1vfU -V which provides for the development of mixed -use structures that vertically integrate retail commercial, and office or related functions on dhe ground floor and the upper floors used for residential units. Non - residential uses are also permitted including office and commercial activities. The floor area ratio for Waxed -use buildings is 1.5; with a Boor area ratio of 0.35 -0.5 for commercial and maximum of 1.0 for residential uses. The average size of parcels designated as 1vIU -V in Balboa Village 0.10 acre or 4,356 square feet. McFadden Square I\- Ichadden Square surrounds die Newport Pier and extends between the ocean front and harbor. Commercial land uses are largely concentrated in the strips along Balboa and Newport Boulevards, with residential along the ocean front and marine - related uses fronting the harbor. Numerous visitor - serving uses include restaurants, beach hotels, tourist - oriented shops (t -shirt shops, bike rentals, and surf shops), as well as service operations and facilities that serve the Peninsula. Historically, the area has been known for its marine- related industries such as shipbuilding and repair facilities and boat storage on the harbor. Much of the McFadden Square area is pedestrian oriented, wide storefronts facing the street, the presence of signage at a pedestrian scale, and outdoor furniture, providing a pleasant environment for visitors. The Land Use Element identifies a portion of IvlcFadden Square as - Mixed -Use Water 2 (ivfU- \1(2). This designation is applied to waterftont locations in which marine - related uses may be intermixed with mixed -rise buildings that integrate Housing with ground level retail. The floor area ratio for nixed -use buildings is 1.25, Nvith a minimum floor area ratio of 0.35 and maximum of 0.75 for residential uses. The average size of parcels designated as 1\IU -\V2 in McFadden Square is 0.12 acre or 5,230 square feet. Mariners Mile Mariners' Mile is a- heavily traveled segment of Coast Highway extending from the tlrches Bridge on the west to Dover Drive on the east (Figure 118). It is developed with a nix of highway - oriented retail and marine related commercial uses. The latter are primarily concentrated on ha ; -- fronting properties WNewport Beach General Plan E and include Boat sales and storage, sailing schools, marinas, visitor- serving restaurants, and comparable uses. There are no significant infrastructure or environmental constraints within the Mariners' Pfile area that that would impede new housing development. A number of properties contain Lion - marine commercial uses„ offices, and a multi -story residential building. The General Plan identifies Mariners' Mile as a location appropriate for inked -use development integrating residential and commercial or office space. The Land Use Element identifies Mariners' Dlile as 1\lixed -Use_ Water I (MU -Wl), l\ -fixed -Use Horizontal 1 (1,fU -H t) and General Commercial (CG). On the inland side of Coast Highway, land is designated as Mixed Use Horizontal 1 (1�fU -II1), and General Commercial (CG -0.3 and CG -0.5) to accommodate a mix of visitor and local - serving retail commercial, residential', and public uses. Coast Highway frontages shall be developed for rnarine- related and highway- oriented general commercial uses, and properties located on interior streets may be developed for free- standing neighborhood - serving retail, multi- fatnly residential units, or mixed - use buildings that integrate residential with retail uses on the ground floor. 'rile floor area ratio of mixed -use buildings is 1.5 with a maximum commercial floor area to land ratio of 0.5 and a maximum of 1.0 for residential uses. Densities for multi- fanvly residential uses range from 20.1 to 26.7. Bayfroming properties along Mariners' Milt are designated I\'lU -WI which permits the inter-mixing of marine- related and residential uses. Permitted uses include multi- fatnly residential, sntxed -use; and commercial acavides. Residential uses are permitted on parcels with a minimum frontage of 200 lineal Feet where a nwumutn of 50 percent of the permitted square footage shall be devoted to non - residential uses. The floor area ratio of mixed -use buildings is 135. Multi-family residential densities are 'l2 units per adjusted gross acre., with the number of units calculated on a maxanum of 50 percent of the- property. The average size of parcels designated as 1\'fU -WI and N U -H "l in Mariner's Mile is 0.60 acre or 26,500 square feet. Corona del Mar The Corona del Mar corridor extends along Coast Highway bemeen Avocado Avenue and Hazel Drive. It is developed with commercial uses and specialty shops that primarily serve adjoining residential neighborhoods. Among the area's primary uses are restaurants; home furnishing stores; and miscellaneous apparel and professional offices. Almost half of the commercial rises are located in multi- tenant buildings with retail on the ground floor and professional services above. Other uses include the Sherman Librai and Gardens, a research library and botanical garden open to the public, and ,an assisted -living residential complex. The updated General Plan intends Corona 'del Mar as a pedestrian oriented village with office and service uses that serve surrounding neighborhoods. New, development largely would occur as replacement of existing uses and developed at comparable building heiglus and scale. Additional parking would be provided by the re -use of parcels at the rear of commercial properties and /or in shared parhvng lots or structures developed on Coast Highway. General Plan land use designations for Coronal del Nlar include Corridor Commercial (CC) with an FAR of 0.75 and Multiple Residential RDI). Per the Land Use Element up to 8 dwelling units may be accommodated on the two adjoining Newport Beach General Plan YQ !N !M - !0 DU / AC �a V CITY of NEWPORT BEACH GENERALPLAN FIGURE H7 Lido Marina Village Tidelands and submerged lands '\ + City Boundary '"kup Highway b Fce1 0 125 50 `amx WYO1 Newpo�Bexn pqE P QJECT NL ER 1057"1 Mb W03M LIDO MARINA VILLAGE OPPORTUNITY SITES? Ell' lfl //J lJ �\ 1. � 1 r ®A c 7 CITY of NEWPORT BEACH GENERAL PLAN Figure H8 v ` MARINER'S MILE Y ir?Tii;r� IM700°i Sub -Area Tidelands and submerged lands 'ti City Boundary i� Highway Refer to anomaly table Feel o sap r.000 SRV[O. CNyINNergwl Reoc�aH Ff /uut:Mr.: gq,.FCI M.IRFR: 10p)9U1 pub. ORt�L1U L LAND USE O Harbor and Marine - Related Commercial, Institutional © Neighborhood - Serving Retail, Mixed -Use POLICY Use, Housing and Mixed -Use on Maximum of 50% Buildings (Housing Above Retail), Multi - of Parcels with 200' Lineal Frontage Family Residential, with Retail on E 1 l Commercial Highway Frontage Housing Element RM parcels that are currently occupied by a dirt parking lot. (Appendix H4 and Figure 1-19). The City has received inquiries from an architect about potential housing development on these vacant parcels, but no formal plans have been submitted. West Newport Mesa The West Newport Mesa area contains a mixture of residential, office, commercial, industrial, and public uses. It is immediately abutted by Hoag Hospital, a major employment center. The General Plan identifies the opportunity to develop new, complementary uses such as residential, medical offices and other facilities supporting Hoag Hospital. In addition, providing well- planned residential neighborhoods will enable residents to live dose to their jobs and reduce commutes to outlying areas. Residential uses within this azea are permitted under the Multiple Family Residential category at up to 18 dwelling units per acre. Approximately 100 new residential units could be developed as new and replacement housing (Figure H10). Energy Conservation Opportunities The City of Newport Beach fully enforces provisions of Title 24 of the California Administrative Code, which require energy conservation in new residences. Standards in Title 24 create energy savings of approximately 50 percent over residential construction practices utilized prior to the Title 24 enactment. The City of Newport Beach Building Department is aware of energy conserving design innovations and solar technology. The department utilizes the Solar Svstems Code Review Manual and its companion document, the Pool and Spa Solar Systems Code Review Manual, published by the International Code Council (ICC) to facilitate installation of appropriate solar systems. Under existing state law (the California Resources Code), local jurisdictions may adopt structural energy conservation standards in excess of the existing state standard. Such an increase in standards would be of marginal value because of the moderate climate of the City of Newport Beach. Additionally, increases in conservation standards generally increase housing costs and therefore exacerbate the existing housing affordability concern. The CiVs updated Natural Resources Element contains policies that promote energy efficient construction for residential development and encourage the provision of energy alternatives such as solar power. Any future residential development would be subject to the policies contained within the General Plan. A major concern pertaining to energy conservation is the relationship of housing to employment and related affected transportation modes. Although specific energy savings are difficult to quantify because of the myriad of variables involved in a transportation system, it is generally true that physical proximity between home and work saves transportation energy. Existing affordability concerns in Newport Beach increase energy use by forcing workers employed within the City to seek less expensive housing outside the City. New mixed -use development opportunities may help by reducing the length and frequency of automobile trips and energy usage. However, the jobs /housing imbalance in the City cannot be totally mitigated by increased residential development within the City. Newport Beach is not in an area of geothermal or significant wind activity and consequently cannot take advantage of these "alternative" energy sources. It appears that the City, through enforcement of Newport Beach General Plan Housi'nq Element Title 24 and sensitivity to innovative design, is maximizing residential energy conservation opportunities. NONGOVERNMENTAL CONSTRAINTS Community Attitudes The citizenry in Newport Beach is well organized through neighborhood homeowners associations and cominututy environmental groups. There exists strong public sentiment in favor of preserving the suburban em-ironnent in the City. Public sentiment is a constraint because of its influence on local officials and because of the ability of citizens to establish development policies and zoning through the initiative process. In November 2000, an initiative passed in the City of Newport Beach that requires a general election be conducted to approve General Plan .Amendment applications that include increases of 100 or more dwelling units or that would generate more than 100 peak hour trips. See Governmental Constraints for additional discussion of thus initiative. Financing Constraints Financing costs largely are not subject to local influence. Control of interest rates is determined by national policies and economic conditions. Interest rates directly influence purchasing power of home - buyers and cost of home construction through construction loans. Currently; interest rates are at a level that enables many of the upper and muddle econoric classes to afford a home purchase. However, the banking industry has adopted more conservative lending criteria for construction loans, especially for multiple- family housing. These factors have influenced housing supply throughout Southern California. High interest rates substantially reduce home purchasing potential of households. New homebuyers find the housing product they can afford is substantially less than their expectation. Difficulty in producing housing affordable to first -nine homebuyers is compounded. While cost of production has increased, purchasing power of some customers has decreased due to inflation, interest rate fluctuations, and hmited choices for housing types. Because development costs in Newport Beach are higher than in other areas of the state, housing is even further out of the reach of first -tune homebuyers. With savings and loan institutions and other home loan lenders experiencing higher costs in attracting funds, it is extremely difficult for the fixed rate, long -term mortgage to be used as the prinnary mortgage inSCLUment for housing finance purposes. Consequently, variable rate mortgages, equity appreciation- mortgages, and other tecluniques are being promoted. This smorgasbord of "creative financing" helps to maintain a higher level of capital for housing than might otherwise be available: =Newport Beach General Plan iJ hqo e" If E , � p. ♦ _e � � �� Pr bC ut e 0 cc\ ls 0.793 "w_ J! a � - 8 Dwelling Unit'r%, ' Opportunity Site '^ 9 "k 3 CORONA DEL MAR OPPORTUNITY SITES �. le ink �r CO 9ST CITY of NEWPORT BEACII GENERALPLAN FIGURE H9 CORONA DEL MAR Tidelands and submerged lands City Boundary 'No Highway 0 500 1000 0 S ,M Crlyol Newgol B68M&Id EIPNSSO s PROJECT NWGER 1057MI [WV ObOL08 EIP CITY of NEWPORT BEACH GENERAL PLAN Figure H10 WEST NEWPORT MESA Sub -Area Tidelands and submerged lands '-S,i City Boundary ^i Highway Peter to anomaly table 0 M SW o zso soace� aryaraoym eeacnaa ®saaoa: PRJJ[CI MIABL lmn8 l ran.'. 11/17pp W I Up Housing Element Land and Construction Costs Land costs and construction costs are significant components of housing cost. Land costs are a function of the private market and are relatively high due to the City's location near major employment centers and the Pacific Ocean. Due to the built out nature of the City, vacant land that is available for development of any kind and for affordable housing projects in particular, is extremely limited, and cannot be compared to surrounding jurisdictions. Construction costs also are set by the private market and are influenced by a variety of factors including availability and price of materials and labor, quality of construction, and amenities offered. Cost factors used to estimate the cost of construction for new housing in 2007 4-agg approximately as follows: • Multi- Family(per gross square foot) $140 apartment buildings /$150 condominiums" • Single- Family Dwellings (Der Bross souare foot) Wood Frame $130.00 (average quality); $160.00 (good quality) Growing market demand for housing in Newport Beach and little remaining vacant land in the City has had a strong impact on financial aspects of residential development in the City. The greatest impact of this market demand on cost of new housing is seen in the price of residential land in the City. According to a recent study, land entitled for multi- family housing in Newport Beach would cost $3,250,000 per acre." Density increases often are used to offset high construction and land costs. Density increases may decrease land costs on a per -unit basis, but sales prices of units in Newport Beach indicate density increases do not necessarily bring the cost of housing to consumers to a level that is affordable to lower- or even moderate - income households. Assuming that both apartments and condominiums would be built at 20 units an acre, the land cost would be $162,000 per units' In addition, high residential densities involving buildings taller than three stories will greatly increase unit marketability in many areas of the City because of the addition of a view factor. Regardless of square - footage or density, a unit with a blue water or white water view can be marketed as a luxury condominium and command an extremely high price. Higher land costs in the City are the main factor in higher square- footage costs for housing provision. High land costs also trigger higher costs in other areas of development. To balance land prices, developers must increase amenities within the housing unit as well as within the community area. Thus, a higher land price is the factor that triggers increased development costs. Infrastructure Constraints The City of Newport Beach is primarily a built -out community that is adequately served by existing infrastructure including sewer, water, and police and fire services. Presently, the main area in the rS Inclusionary Housing In -Lieu Fee Study. October 2007. EPS ra Ibid ri Ibid Newport Beach General Plan Housinq Element community that is not served by any water or sewer infrastructure is Banning Ranch. However, if the Banning Ranch area is annexed to the City, the City intends to provide service to this area." With the exception of the as yet undeveloped Banning Ranch area, which has a potential development horizon beyond the RHNA period, new development will primarily occur through the re -use and intensification of existing land uses in other areas of the City as previously discussed. According to the City of Newport Beach Environmental Impact Report for the General Plan Update (.April, 2006), new residential development associated with implementation of the General Plan Land Use Element would not exceed the capacity of existing sewer and water facilities or police or fire protection services. Specifically, new residential development within the Airport area, Newport Center, Mariners' Mile, and Balboa Peninsula areas will be adequately served by existing infrastructure. Environmental Constraints Very few areas of vacant, developable land remain within Newport Beach. Open areas include the beach, bay, parks, and undeveloped areas such as Banning Ranch, and the canyons; hillsides, and bluffs of Newport Ridge /Coast. The Housing Element concentrates new infill housing development and redevelopment within several specified areas: Newport Center /Fashion Island, Balboa Village, Balboa Peninsula, Mariners' Mile, West Newport Mesa, West Newport Highway, and the Airport Area. Development within each of these areas would involve the re -use or intensification of land uses, with no significant environmental constraints within these areas." The only housing opportunity area identified in the updated General Plan and associated Environmental Impact Report with significant environmental constraints is the Banning Ranch area. The Banning Ranch area includes significant environmental resources including wetlands, habitat areas, sensitive wildlife, and valuable biological resources. However, as mentioned previously, the Banning Ranch area has a potential development horizon beyond the RHNA period, and is not identified as a housing opportunity area within this Housing Element. GOVERNMENTAL CONSTRAINTS This section of the Housing Element addresses actual and potential City governmental constraints on development of housing for all income levels. Such constraints include land use controls (zoning), building codes and their enforcement, site improvements, fees and local processing, and permit procedures. In many of these areas, localities have varying degrees of discretion to modify state standards for local implementation and /or conditions. Included in this analysis are constraints created by specific state regulations. As previously mentioned, there is a relatively limited supply of vacant land remaining for development in the City of Newport Beach. This limitation on the supply of land and accompanying existing urban development patterns of the City shape City land use regulations. Voter Initiative: Section 423 of the City Charter A& botrriti appo lunifies idenl�d in lbe Table 1 I /: Polenfial Keridential Siles ore not subject to Charter Section 423 ar a result oj'voter approval ofMeasurr l in ,\ ovember 2006. 16 City of Newport Beach Draft Environmental Impact Report. General Plan Update. 04/2006 17 Ibid. Newport Beach General Plan Housinq Element Background In November 2000, the voters of the City of Newport Beach approved a ballot initiative (Measure S) which is now "Section 423 of the City Charter." It requires voter approval of any project that increases density, intensity, or peak hour trip, above that provided for in the General Plan. Significance is quantified as 100 or more dwelling units, over 100 peak hour trips, or 40,000 or more square feet of non - residential floor area. Charter Section 423 applies exclusively to General Plan amendments. For projects with a General Plan amendment, it could delay the effective date(s) of discretionary approval(s) until the approval(s) are submitted to the Newport Beach electorate. The time frame for the potential delay(s) is controlled by the normal election cycle (every two years) or a developer(s) willingness to fund a special election(s). Should a developer propose a housing project that exceeds the allocation provided in the General Plan, a General Plan Amendment would be required and review of the project would be subject to review pursuant to the Measure S Guidelines. If the project exceeds the established threshold(s) and is approved by the City Council, the General Plan amendment would then be subject to a vote. The project proponent would then have to wait until the next regular municipal election or, a special election could be held if the City and project proponent enter into an agreement to share the costs of the special election. 2006 Election — Voter Approval of the General Plan Update On November 11, 2006, the City's comprehensive General Plan Update was placed on the ballot (Measure V) as required by Charter Section 423 and approved by the voters. As a result, all dwelling units and residential densities in the General Plan can be developed without a General Plan amendment and vote. Therefore, it is important to note that all sites identified in Table H34 (Potential Residential Sites) are not subject to an additional Vote under Charter Section 423. Pursuant to California Government Code Section 65915, Charter Section 423 will have no impact on the City's ability to provide density bonuses required by state law for affordable housing projects on sites already designated for residential development. California Government Code Section 65915(8)(5) states: (S) All density calculations resulting in fractional units shall be rounded up to the next whole number. The granting of a density bonus shall not be interpreted, in and of itself, to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. As used in subdivision (b), "total units" or "total dwelling units" does not include units permitted by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. The density bonus provided by this section shall apply to housing developments consisting of five or more dwelling units. However, Charter Section 423 could be a constraint to development if a development proposal exceeds the updated General Plan levels for market rate units and /or affordable units beyond those provided for in state density bonus law. It is important to note, however, that Charter Section 423 will not have any impact on the allowed density- established for the identified housing sites to more than adequately meet the City's Regional Housing Needs Allocation, including affordable units. As indicated in the prior paragraph, this section is only applicable when a change to the existing General Plan is proposed. Newport Beach General Plan Housing Element Zoning The City Zoning Code is complex but typical for an already highly developed community. The Code uses a "district" concept appropriate to the diverse urban patterns and topography found in the City. The Zoning Code contains six basic zoning districts (excluding Planned Community districts and other specialized districts) to regulate residential uses within the City. These zoning districts are R -A (Residential Agricultural), R -1 (Single Family Residential), R -1.5 (Restricted Two - Family Residential), R -2 (Two- Family Residential), Medium Density Residential (RMID) and MFR (Mull- Family Residential). Table H35 summarizes Zoning Code provisions for residential density, height, set - backs, and parking. Parking requirements are also set forth by the California Coastal Commission. Table H35 Summary of Zoning Code Provisions by District—City of Newport Beach R -1 R -Z MFR R- 1.5(S.F and Zone R -A SF. duplex.) (Duplex) RMD Multi. Height a 24 ft/28 ft 24 fV28 ft 24 ft/28 ft 24 fV28 ft 28 ft/32 ft 28 ft/32 ft Min. Lot Size 2 acres 5,000 sf, 6,000 sf for 5000 sf Same as Same as Same as comer lots , R -1 R -1 R -1 Min Lot Width 125 ft 50 11160 ft 50 ft /60 ft 50 f V60 ft — 50 ft/60 ft Parking 2 2 2 2 2 2.5 Floor Area Ratios 1.5!2.0 1.5 2.0 1.75 1.75 Lot Coverage 40% Front Yard 20 ft 20 ft/35 ft 20 ft 20 ft. 20 ft e 20 ft (Min.IMax.)^ Side Yard 5 f 3ftOr4ft 3ftor4ft 3ftor4ft 5 f 3ftor4ft Rear Yarde 15ftmini 1Dft tOft 10ft 25fte tOft 25 ft max Lot Area per 1,000 sf 1,000 at 3,000 1,200 Dwelling SOURCE: City of Newport Beach Planning Department i Lower number is the basic height limit which can be increased to higher number upon approval of a use permit in each case. e The 1.5 FAR applies to Old Corona del Mar and Balboa Island only FAR does not include open decks, balconies, or pai e Excludes building area used for parking e Twenty feet, unless otherwise specified on districting maps e Other special yard and building distance requirements may apply Zoning Code requirements could be considered constraints to development because they place demands on the land that limit space that could be utilized for dwelling units. However, zoning standards are designed to protect the quality of life and provide, at a minimum, some access to sunlight and fresh air. Access to air and sun are guaranteed through building setbacks, open space requirements, maximum building heights, and floor area ratios. The Newport Beach Zoning Code controls density for each zoning district through development regulations pertaining to land required per dwelling unit. In the older neighborhoods of the City, density standards have not changed since 1936. Densities in the amount of approximately thirty dwelling units per acre are still allowed in these areas. In the newer neighborhoods, developed since the 1960s, single - family densities are generally less than 10 dwelling units per acres. The City's Codes contain many procedures to grant relief from certain development standards which can be of MNewport Beach General Plan Housinq Eleme assistance in allowing higher densities. However, even if the City is willing to approve reductions in some of the zoning regulations, (such as parldng), the California Coastal Commission has similar development requirements which would still need to be complied with for properties in the Coastal Zone. Maximum density in the Multifamily Residential Zone (MFR) is a function of the size of the lot. For example, a minimum lot area per dwelling unit of 1,200 square feet applies, which translates to a maximum density of 36 units per net acre. Within the Medium Density Residential Zone (RMD), up to approximately 22 dwelling units could be developed. Special Needs Housing Group Homes The term "group home" as used by HCD is interchangeable with the City's definition of a "residential care facility." Licensed residential care facilities for six or fewer persons are permitted by right in all residentially -zoned properties, in accordance with state law, and are treated as single family residences. Residential care facilities for seven or more persons and unlicensed residential care facilities are permitted in the following zoning districts, with a Use Permit issued by a Hearing Officer ■ Residential District —MFR zoning district ■ Planned Community Districts— Property development regulations applicable to residential districts, related to residential care facilities and Single Room Occupancy (SRO) residential hotel uses, shall also apply to the corresponding portions of the PC Districts. Convalescent facilities that provide care on a 24 -hour basis for persons requiring regular medical attention, but excluding facilities providing surgical or emergency medical services are perntitted in the GEIF, M -1, and M -1 -A Districts with a Use Permit. These facilities are also permitted in the APF District with a Use Permit issued by the Planning Director Accessory Dwelling Units The City's Zoning Code includes provisions for "granny units" (accessory, age - restricted units) which may be approved by the Planning Director in single and multi- family districts. The second dwelling unit is intended for the sole occupancy of I or 2 adult persons who are 60 years or older, and the size of the unit does not exceed 640 square feet. Since adoption of the City's "accessory dwelling unit" provisions, 24 age - restricted units have been authorized and 15 constructed. Emergency and Transitional Housing Transitional housing is typically defined as temporary (often six months to two years) housing for a homeless individual or family who is transitioning to permanent housing or for youth that are moving out of the foster care system. An emergency shelter is a facility that provides shelter to homeless families and /or individuals on a limited short -term basis. Currently, the City's Zoning Ordinance does not contain specific provisions for the siting and development of emergency shelters and transitional housing facilities. SB 2 requires local jurisdictions to strengthen provisions for addressing the housing needs of the homeless, including the identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use permit This legislation became effective as of January 1, 2008, and will apply to Newport beach General Plan using Element jurisdictions with housing elements due on June 30, 2008, and later. To be compliant with State Housing Law, the City as part of its Housing Plan will revise the Zoning Code to identify zones where emergency shelters and transitional housing are conditionally permitted and permitted by right. For the Airport Area and Newport Center future development is subject to guidelines within the City's Planned Community (PC) District. The PC district is intended to provide for the development of larger parcels of land as coordinated, comprehensive projects that allow for a diversity of land uses. Any future projects that occur within the PC District must include a development plan and regulations that are consistent with the General Plan. As described in greater detail under the discussion of Inventory of Land Suitable for Residential Development, the General Plan sets forth specific policies for the Airport Area and Newport Center that facilitate the development of mixed - use, higher- density, multi- family housing. Zoning Code Consistency and Interim Development Review Process The updated General Plan created several new residential development opportunities and land use categories. Specific policies regarding land use capacity, encouragement of residential development, consolidation, and density levels are contained in the Land Use Element. These new land use categories, associated densities, and FAR limitations are identified in Table H34. For example, the updated Land Use Element calls for residential development in Airport Area to have a density of 50 units per acre, averaged over the first phase for each residential village. The minimum density for subsequent phase of residential development is 30 units per acre. These Land Use standards are not reflected in the current Zoning Code. It was therefore necessary for the City to initiate a substantial rewrite of the Zoning Code which is estimated to be completed in the stumer -af by the end of 2008. The updated Zoning Code will include new zoning districts and development regulations for several areas of the City including areas where residential and mixed -use designations have been added. As the Code is updated, the City will examine standards and incentives that will encourage the development of mixed -use land uses. In order to allow projects to proceed during the interim period while the Zoning Code is being rewritten, the Newport Beach City Council adopted, by resolution on January 9, 2007, a procedure for the review of projects that are consistent with the General Plan but not with the existing Zoning Code. Additionally, the use of the Planned Community Zoning District remains a viable option for developers proposing projects in the Airport Area or Newport Center. Neither of these procedures would subject a project to a vote under Charter Section 423. Interim Study Overlay The Interim Study Overlay process requires project proponents to request approval of a Code Amendment to apply the Interim Study (IS) Overlay zoning designation (Zoning Code Chapter 20.53) on the property. The applicant would submit a development Study Plan, as required by Chapter 20.53 that establishes all development regulations for the subject property and pro -rides for implementation of General Plan policies. All projects would be required to comply with all applicable density and FAR limitations included in the General Plan. Changes to any existing zoning regulations except height and signage may be proposed. Since applying an overlay district is legislative act, all proposed projects would require City Council review and approval. MiNewport Beach General Plan Housinq Element Table H36 Permitted Uses per Zoning Code Provisions by District—City of Newport Beach Gov, Residential Edu Commercial Industrial R -1.5 R -1 (S.F and 2 R -2 PRD (Planned MFR Uses R -A (S.Fj family) (Duplex) Residential RMD Mu1R. GEIF RSC APF RMC CN M -1 M -lA IaP Single - Family P P P P Dependent on base P P L P Two - Family p P district p P Multi- Family P P L Residential Care Facilities, Dependent on base UP- General (large) district OFC Residential Care Facilities, p P P P P p P Small Licensed Residential Care Facilities, UP- Small Unlicensed OFC Convalescent Facilities UP PON UP UP Second Units PDN PDN PDN PD /U PDN PDN SRO I i i 1 1 UP UP SOURCE: City Df Newport Beach Planning Department P = Permitted UP = Use Permit UP-OFC = Use Permit Issued by a Hearing Officer PDN = Use permit issued by the Planning Director L = Umfted Newport Beach General Plan Housinq Element Planned Community District Revisions In areas of the City located within the Planned Community Zoning District or where projects meet minimum land area requirements, project proponents may choose to request amendments to existing planned community regulations or submit new planned community regulations. The Airport Area and Newport Center are the two areas that would be eligible for this process. This process would allow the developer to work with the City to create a master development plan for a particular area. All Planned Community District projects would be required to comply with density and FAR limitation and incorporate the goals and policies of the General Plan. The Subdivision Process Basic provisions of the City of Newport Beach Subdivision Code are similar to those of most jurisdictions of similar size to Newport Beach. The Subdivision Code contains design standards that provide minimum criteria for development. In some cases, the Code allows flexibility in application of its provisions and thereby potentially could reduce development costs. Examples of such cases are allowances for the development of non - conforming lots and park fee waivers. The Subdivision Code also addresses improvements (e.g., street trees, placing utilities underground, street lighting) that add to development costs. Additionally, the Newport Beach Subdivision Code requires dedication of parkland and /or payment of in -lieu fees concurrently to recordation of a final subdivision map. This requirement is made in compliance with state law, but also adds to costs of development. Local Coastal Program The Coastal Land Use Plan portion of the Local Coastal Program, approved by the California Coastal Conunission on October 13, 2005, and adopted by the City Council on December 13, 2005, might be a constraint to providing affordable housing. The Coastal Land Use Plan consists of land use designations and resource protection and development polices for the Coastal Zone. The Land Use Plan policies result in consistency with Chapter 3 of Caltfornia Coastal Act, which addresses the planning and management of coastal resources. One of the major goals of the California Coastal Act and the Coastal Land Use Plan is to assure the priority for coastal - dependent and coastal - related development over other development in the Coastal Zone, which is a constraint on residential development, particularly in areas on or near the shoreline. The Coastal Land Use Plan indicates that areas within the Coastal Zone designated for residential use are to be used primarily for residences, but indicates certain incidental uses that (with proper location and design) are appropriate within coastal areas with a residential designation. These uses are to be governed by requirements of the Newport Beach Municipal Code and include senior citizen housing facihiies (whose occupancy is limited to elderly persons, as defined by state or federal law). In addition, the Coastal Land Use Plan contains restrictions applicable to twelve sensitive habitat areas that limit potential residential development areas and that control and regulate locations on new buildings and structures to ensure (to the extent practical) preservation of unique natural resources and to minimize alteration of natural land forms along bluffs and cliffs. In 1981, the California Legislature enacted SB 626 (Mello), which added Government Code Section 65590 and eliminated certain provisions of the California Coastal Act that required local coastal programs to include housing policies and programs; Section 65590 mandates coastal communities require inclusion of low- and moderate - income housing as part of new residential developments and Newport Beach General Plan sing Element replacement of low- and moderate - income housing eliminated as a result of demolition of existing housing within coastal zones of those communities. On August 19, 1982, the Newport Beach City Council adopted Council Policy P -1, establishing administrative guidelines and implementation procedures to administer Section 65590 within the coastal zone areas of the City. This Policy now is in the Zoning Code in Chapter 20.86 which establishes the requirement of a Coastal Residential Development Permit for certain activities involving dwelling units within the Coastal Zone. This permit ensures compliance with state law by maximizing low and moderate - income housing opportunities within the Newport Beach Coastal Zone. A Coastal Residential Development Permit is required in Newport Beach to demolish or convert 11 or more dwelling units in two or more structures, to demolish or convert 3 or more dwelling units in one structure, or to construct 10 or more dwelling units. A Coastal Residential Development Permit is not required for demolition or conversion of a residential structure to establish a nonresidential use that is "coastal related" or "coastal dependent" and that is consistent with provisions of the City of Newport Beach Local Coastal Program Land Use Plan. In addition, a Coastal Residential Development Permit is not required to demolish a residential structure declared a public nuisance or to reconstruct a nonconforming building damaged by fire, earthquake, or other calamity when a use permit is not required. The Newport Beach Municipal Code indicates replacement affordable units in the Coastal Zone shall be provided on a one -for -one basis when demolition or conversion activities involve low- and moderate- income dwelling units, if feasible. Also, a feasibilir study is required for new dwelling unit construction of 10 or more units when low- and moderate- income dwelling units are not proposed at affordability standards contained in this Housing Element. The test of feasibility shall be initially conducted at the Housing Element standard and subsequently at progressively higher standards contained in California State Health and Safety Code Section 50093. Furthermore, the City of Newport Beach and the owner of the low- and moderate - income dwelling units provided are required to enter into an affordable housing agreement (to be recorded against the property) governing the dwelling units. Senior citizen housing facilities may require higher dwelling unit limits than normally allowed in the Municipal Code. Such higher dwelling unit limits are allowed and are consistent with the Local Coastal Program when a finding can be made that the use is a particular benefit to the City and that traffic generated by the project is not greater than the predominant use allowed in the area. Senior citizen housing facilities must conform to floor area limits of applicable residential zone(s). Building Codes and Enforcement Building codes regulate new construction and rehabilitation, and are designed to ensure adequate proiection against fire, structural collapse, unsanitary conditions, and other safety hazards. The City Council adopted the 2007 edition of the California Building Code. These building codes establish minimum standards for construction to protect the health, safety, and welfare of citizens. These codes and regulations are based on uniform standards and are applied throughout the region and therefore are not considered to significantly impact construction costs or constrain the provision of housing for person with disabilities. State energy conservation regulations, which are cost effective in the long term, may add to construction costs. Newport Beach General Plan Housina El Although Chapter 11 of the California Building Code pertains only to new multi -family projects of 3 or more units, staff currently processes any and all voluntary proposals of ADA retrofits. If for any reason an applicant should request an accommodation to the code for reasons related to a disability, the Building Department is willing to closely examine the special needs of the applicant and consider a hardship request or an alternative material, design, and methods of construction request. Impact Fees The role fees play in constraining production of housing is difficult to measure, although fees can affect housing prices in certain markets. The theory behind fees is that new development should bear its own costs and these costs should be spread equitably among new development. State law requires fees bear a reasonable relationship to actual costs incurred by a city. However, fees may add significantly to the cost of a housing unit. To offset the cost of constructing housing units, the Newport Beach City Council adopted a program that allows for the waiver of all fees when affordable housing units are proposed. In addition the Municipal Code allows for the waiver of fair share trip fees. The City of Newport Beach fees for discretionary applications are compared to discretionary application fees of various nearby tides in Table H37 and Table H38. Table .. Fees—Nearby Jurisdiction Generol Plan Amendment Zone Chan a 7 —Parcel mop Vorlonce Costa Mesa $3,245 $1,720 $1,300 $1,450 Huntington $17,998 (minor) Transportation Corridor Fee* $4,185 $2,446 (Admin) Beach $32,948 (major) $19.271 $4,068 $3,455 (Comm) Irvine $128 /hr $1281hr $128 /hr $1281hr Laguna Beach $2,500 $1,850 $1,850+ $2,000 +$3.301$100 permit $1,150 $61511ot value $135 /hr, $2,200 deposit In -Lieu Park Fee $26,125 per dwelling unit Newport-Mesa Unified School Newport Beach (minor) $135mr, $710 $1351hr, $135/hr, $5,000 deposit $2,200 deposit $2,200 deposit (major) Orange County $10,000 deposit $10,000 deposit $5,000 $3,500 SOURCE. City Planning Departments 2008, February Table . . Zone A: Zone A: Zone B., Zone B: Sin a -Famil Multi-Family Stn a Famll MUNI -Family Transportation Corridor Fee* $4,185 $2,438 $3,242 $1,892 Elderly $708 Fair Share Trip Fee Single - Family Detached Single - Family Attached Apartment Mobile Home $1,946 $1,522 $1,150 $1,062 In -Lieu Park Fee $26,125 per dwelling unit Newport-Mesa Unified School $1.84 per square foot District Fee SOURCE City of Newport Beach Planning and Building Deparbnents 2008, February 'Appges to ah development in the San Joaquin Hills Transportation Corridor Agencies Area of Benefit MNewport Beach General Plan Housinc7 Element Development Review Process All residenual development in the City requires review to determine compliance with the City's development regulations and guidelines. The development review process may require a discretionary approval as part of the process and may include actions such as zone change, modification permit or use permits. The City's review procedures are considered efficient with typical zone change requests reaching completion in as few as 90 days if no environmental impact report is required. An Environmental Impact Report may require up to one year before a decision is rendered, which is within the time frame established by state law. The City's policy is that building permit plan checks take a maximum of 4 weeks for first review. Use Permits and subdivision maps typically can be approved in six to eight weeks, provided an environmental impact report is not required. Planning Commission decisions on maps, and use permits are final unless appealed within 14 days of the date of decision to the City Council, or unless a member of the City Council within 14 days of the date of decision requests to review the Planning Commission decision. Zone Changes require City Council action. It should be noted that the City does not impose a design review. The lack of this procedure further lends to an expeditious approval process. Reasonable Accommodation procedures specifically for persons with a disability seeking equal access to housing are outlined in Chapter 20.98 of the City's Zoning Code. Applications for a reasonable accommodation are made available at the public counter and no fees are required for a reasonable accommodation request. A request for a reasonable accommodation may be made by any person with a disability, their representative or a developer or provider of housing for individuals with a disability. A Heating Officer is designated to approve, conditionally approve, or deny applications for a reasonable accommodation. Modification Permits The City has a process to obtain a "Modification Permit" Whenever strict interpretation of the Zoning Code precludes reasonable use of a property, a modification permit may be issued to deviate from the standards of the Code relating to building setbacks, size, and location of parking spaces, structural appurtenances or projections that encroach into setbacks, and related matters. A public hearing will be set not less than 10 days or more than 30 days after a completed application is submitted to the Planning Department. Use Permit Use permits are required for certain use classifications typically having unusual site development features or operating characteristics requiring special consideration to ensure compatibility with adjacent properties. A noticed public hearing is held by the Planning Commission within 60 days after accepting a complete application. The Planning Commission has the authority to approve, conditionally approve, or deny applications for use permits. Newport Beach General Plan Housinq Element Request for Hardship or Request for Alternative Materials, Design, and Methods of Construction The Building Department has a process to approve hardship requests, as well as requests for alternative materials, design, and methods of construction when strict compliance with the building codes is impractical. These requests may be approved by the Budding Official and Fire Marshall, or their designated agent, if he /she determines that unique characteristics or conditions exist that make compliance with the strict letter of the Code impractical and equivalency is provided. The resulting condition must be in conformance with the spirit and purpose of the Code provisions involved and such modification may not compromise fire protection, structural integrity, or occupant safety. The review of the request is based upon a written report that must be submitted describing the alternate proposal along with applicable data. CALIFORNIA ENVIRONMENTAL QUALITY ACT The California Environmental ,Quality Act (CEQA) was enacted in 1970, and requires governmental agencies that propose to approve projects to undertake analysis of environmental impacts resulting from that project. The CEQA process can be lengthy, and project delays can increase costs to developers. Likewise, costs to prepare environmental documentation necessary to satisfy CEQA can be quite high, and traditionally is borne by the project applicant. The CEQA process particularly affects Newport Beach due to rich natural resources in the area. Concern for protection of natural resources within Newport Beach has in the past required, and will continue to require, modifications to intensity of residential development and design of projects. The City environmental review process is responsive, well coordinated, and meets CEQA requirements. Review of this environmental reporting process for purposes of preparation of this Element illustrates it is not excessive or overly restrictive according to state law. Housing Plan: Goals, Policies, Quantified Objectives, and Programs Analyses contained in previous sections of this Housing Element provide the basis for the Newport Beach Housing Plan, which is comprised of housing goals, policies, and programs. The plan places emphasis on providing adequate opportunity for satisfaction of the City's remaining Regional Housing Needs Assessment (RHNA) requirement. The special needs populations most evident within Newport Beach and most easily quantifiable by United States Census of Population and Housing are the elderly, the challenged (handicapped), and female- headed households. Many of those Policies and Programs in this Housing Plan focus on providing housing opportunities for the dominant Special Needs population — seniot citizens (those 65 ,years of age and older). Senior citizens comprise a large component of the total special needs population and have, as a group, many who are disabled, as well as live at or below the poverty level. MMOMMMI Newport Beach General Plan Housing Element Goals and policies contained in this Housing Plan address the City of Newport Beach's anticipated housing needs during the tenure of this Housing Element (2006 -2014) and are implemented by a series of Housing Policies and Programs. These Policies and Programs prescribe specific actions the City of Newport Beach will take during the tenure of this Housing Element. The Housing Plan set forth in this Housing Element contains an annotated description of future actions for each Housing Program policy, the Program funding source, responsible agency, and time frame for implementation. GENERAL REVIEW OF 2000 -2005 HOUSING ELEMENT AND HOUSING ACTIVITIES California state law requires the City Housing Element be reviewed as frequently as appropriate and that it be revised appropriately, but not less than every five years, to reflect results of the review. The last comprehensive revisions of the Newport Beach Housing Element in 2000 with a subsequent, a more minor update, in 2006 that reflected changes in the City's Land use Plan. All the following must be evaluated during a review of the Housing Element: ■ Appropriateness of housing goals, policies, and programs in contributing to attainment of the state housing goal • Effectiveness of the Housing Element in attainment of the community housing goals • Progress of the City in implementation of the Housing Element • When a City has land within the California Coastal Zone, review of its Housing Element must consider housing pursuant to coastal requirements. This evaluation must include the following. • Number of new housing units approved for construction within the Coastal Zone after January 1, 2000 • Number of housing units required to be provided in new housing developments within the Coastal Zone or within 3 miles of the Coastal Zone for persons and families of low- or moderate- income, as they are defined in Section 50093 of the Health and Safety Code r Number of existing residential dwelling units in the Coastal Zone that have been authorized to be demolished or converted since January 1, 1992, that were occupied by persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code r Number of residential dwelling units required for replacement of units authorized to be demolished or converted that were occupied by persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code; location of replacement units on site, elsewhere within the locality's jurisdiction within the Coastal Zone, or within 3 miles of the Coastal Zone within the locality's jurisdiction, must also be designated in the review In the course of administering the Housing Element and preparing the updated 2000 -2008 Housing Element, the City detemuned that the previously adopted goals and policies continue to contribute to the attainment of California state housing goals as well as the housing goals of Newport Beach. As a result, most of those goals and policies have been retained to facilitate attainment of the 2006 -2014 City housing goals. Specific Housing Programs that have not been effective have been revised or deleted. New Housing Programs have been added, and new housing sites, consistent with the updated Land Use Element, have been identified. Newport Beach General Plan Element According to the Regional Housing Needs Assessment for the Housing Element cycle of 1998 -2005, SCAG estimated that the City needed 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 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;; The distribution of these new units according to income was as follows: Very Low Income (86 units), Lower Income (53 units), Moderate Income (254 units), and Above- Moderate Income (476 units). Table H39 summarizes the total RHNA construction need by income, calculated through the RHNA process for the 1998 -2005 Planning Period. Low I Low I Moderate I Above Moderate 86 53 83 254 476 18% I 11% 17% 53% 100% The Building Department maintains a detailed Building Activity Report for each fiscal year. The report fists 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 Table H40 illustrating the total number of new additional units that were permitted during the RHNA period of 1998 to 2005. TableH40 Total Number Fiscal Year of .. Durino Period 1998 -2005 New Units Demolished Units Total Additional Units 1 st 6 months of 1998 315304 48054 435250 1998 -1999 4948999 468JU 860846 1999 -2000 742720 2&8258 484462 2000 - 2001 234226 488155 6671 2001 -2002 469155 430125 2870 2002 - 2003 462 67 474159 (*- 2003 -2004 198 462161 3637 2004-2005 329326 470167 159 TOW Jr1ST3 ,095 - 1,W11232 - IFW1-,_63 Source: City of Newport Beach 2008 The City issued -a The City issued 3.095 permits "for new or replacement houses during 1998 -2005. This translates to a 1.863 net additional dwelling units. the 1998 2005 $ef- Of these units 1 236 were permits issued for Bonita Canyon. As part of the Newport Beach General Plan Housing Element annexation agreement. affordable units for the Bonita Canyon development were located within the City. of Irvine Excluding the Bonita Canyon project the net increase was 627 units This number well exceeds the total 476 units projected by SCAG Of these 120 are comprised of the Ba ;view Landing senior affordable housing proiect. With the exception of one "manager's unit," all of the 120 units are designated for very to %v – and low- income seniors. This project received S1 milhon in Approximately E4.5 triton in tax credits were also awarded to the project. Through this project and units provided in compliance with the City's inclusionary housing program. 19 percent of the net new residential units- permitted in Newport Beach, under the City's control. were made affordable to lower income households. The Ci . has had policies in effect since the mid- 1980's requiring the provision of affordable housing 1984. 9.845 housing units have been built in the community. Approximately 4,298 of these units were �W��Qffrfs MM 9€ -In addition. the Orange County Business Council has recently ranked Newport Beach as one of top tides in the Count- that that have produced workforce housing. The Orange County Business Council's 2007 Workforce Housing Scorecard provides a comprehensive evaluation of the current and future state of Orange County's housing supply and demand. This study examines the past, present and future of the County's housing byTnalyzing homes constructed, currently available and planned from 1991 -2030 The report ranked Newport Beach as among the study's top five performing cities in Orange County that have created new lobs and the necessary su2pl4 of homes to serve the related workforce. both currently and in the future Newport Beach's high rank was the result of a high score in the folloNying four azeas: 1._ Number of jobs — Promotion of job growth 2 Housing unit density —The study rewards cities with indusionar� housing policies and penalizes tides that are less hospitable 3 Housing growth— Promotion of housing growth Newport Beach General Plan Housing Element Constructed in 2004, the Bayview Landing Senior affordable housing project provides 119 units for very tow- and low - income seniors. The project received funds from the City's "in- lieu "housing fund reserves and tax credit financing. In addition, the City provided expedited permit processing and partial fee waivers of entitlement fees. 4. jobs to Housing Ratio —The study rewards cities for past balanced jobs /housing grow -th_ in addition to plans for the future As displayed in Table H40 and Table H41, Newport Beach had fulfilled its requirement for low- income housing and above - moderate /upper - income housing for the 1998 -2005 RHNA period. Table 00 Income Cateaory Very Low Low I Modwate I Above Moderate Total Projected Need 86 53 83 254 476 Total New Units Permitted (1/984105) 24 95 0 1,637 1,757 Remaining Need 62 0 W 0 145 In addition, the City took the following actions to implement its Program objectives in 2000 -2007: • The City received and spent approximately $3 million of Community Development Block Grant funds. Funds were used to support a variety of housing services including fair housing, homeless housing, supportive services, and services for single women and children. • The City continued to participate in County of Orange programs that provided housing and social services for special needs populations. • A comprehensive General Plan update was completed in 2006 which included substantial community outreach. Since the City is largely built out, most of the options4wing considered involved the redesigt;wtixg- re- desj,gnation of 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 new dwelling units. • The Bayview Landing senior affordable housing project was constructed in 2004. With the exception of one "managers unit," all of the 120 units are designated for very low- and low - income seniors. This project received $1 million in funds from the City's "in -lieu" housing fund reserves. In addition, the City provided expedited permit processing, partial fee waivers of entitlement fees and substantial entitlement assistance. Approximately $4.5 million in tax credits were also awarded to the project. MNewport Beach General Plan lement • The City collected $1,063,539 in -lieu fees for affordable housing from developers of market - rate residential projects. • Of the net housing permits issued in the community from 1998 to 2005. 19 percent were affordable to lower income households. • The City established an Affordable Housing Task Force to work with other public agencies and private parties to develop affordable housing projects. • The City continued to enforce requirements of its inclusionary housing program that requires a proportion of affordable housing in new residential developments or payment of an in -lieu fee. The City has retained a consultant to conduct an analysis of the City's inclusionary housing program, with a specific focus of an appropriate fee that housing developers may pay in lieu of providing affordable units within their development projects. ■ Approval of AHIPs for Lennar and North Newport Center In 2006, the City conducted a minor update of the 2000 -2005 Housing Element to reflect land use changes that occurred as part of the comprehensive General Plan update. The City also consolidated some overlapping housing programs, created new programs, and revised some programs to reflect changes to the General Plan. Table H42 provides a summary of housing program accomplishments by program since 2006. Goal HI Quality residential development and preservation, conservation, and appropriate redevelopment Program 1.1.1 Improve housing quality and Ongoing: The Uniform Housing Code is This program remains prevent deterioration of existing neighborhoods adopted and continually enforced by the appropriate. by strictly enforcing building code regulations Building Department and Code Enforcement and abating code violations and nuisances. Department. The Water Quality and Code Enforcement Department continually administers an enforcement program to correct violations of municipal codes and land use requirements. A quarterly report on code enforcement activities is kept on file at the City. Program 1.1.2 Participate with the Orange Ongoing: The City staff attends OCHA's City's This program remains County Housing Authority and Housing and Advisory Committee meetings to keep up to appropriate. Community Development Division in their date on rehabilitation programs offered by the administration of rehabilitation loans and grants County. for low- and moderate - income homeowners and rental property owners to encourage preservation of existing City housing stock. Program 1.1.3 Require replacement of housing Ongoing This program remains demolished within the Coastal Zone when Chapter 20.86 of the Zoning Code, "Low and appropriate. housing is or has been occupied by very low-, Moderate Income Housing within the Coastal low -, and moderate- income households within Zone," establishes the standards and the preceding 12 months. The City shall prohibit requirements to implement this program. demolition unless a Coastal Residential Development Permit has been issued. The specific provisions implementing replacement unit requirements are contained in the Municipal Code. Newport Beach General Plan Housina Element Goal H2 A balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments. Program 2.1.1 Maintain rental opportunities by restricting conversions of rental units to condominiums unless the vacancy rate in Newport Beach for rental housing is an average 5 percent or higher for four (4) consecutive quarters, and unless the property owner complies with condominium conversion regulations contained in Chapter 20.83 of the Newport Beach Municipal Code, Program 2.1.2 Take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with low- and moderate - income housing requirements. Program 2.1.3 Participate with the County of Orange in the issuance of tax- exempt mortgage revenue bonds to facilitate and assist in financing, development and construction of housing affordable to low and moderate- income households. Program 2.1.4 Conduct an annual compliance- monitoring program for units required to be occupied by very low—, lour, and moderate - income households. Ongoing A vacancy rate survey is completed every quarter to monitor consistency with this policy. Ongoing Planning staff continually evaluates all proposed affordable housing projects for potential incentives, including expedient processing of permits. During the entitlement process, the Bayview Landing Senior affordable housing project was granted a fee waiver for park, traffic and expedited permit processing, and entitlement assistance. The Santa Barbara Condominium project which included an AHIP will be provided expedited review of development plans. North Newport Center Planned Community project which included a development agreement with an AHIP will also be provided expedited review of development plans. Ongoing The issuance of tax - exempt mortgage revenue bonds is project driven. The developer typically applies for the bonds. The City will encourage the use of such bonds and inform affordable housing developers of their availability. Ongoing The City retains a consulting firm that provides an annual compliance monitoring report for the Cites income qualified units. `s Newport Beach General Plan This program remains appropriate. This program remains appropriate. This program remains appropriate. This program remains appropriate. Program 2.2.1 Require a proportion of affordable housing in new residential developments or levy an in -lieu fee. The City's goal over the five -year planning period is for an average of 15 percent of all new housing units to be affordable to very low—, low -, and moderate - income households. The City shall either (a) require the payment of an in -lieu fee, or (6) require the preparation of an Affordable Housing Implementation Plan (AHIP) that specifies how the development will meet the City's affordable housing goal, depending on the following criteria for project size: 1. Projects of 50 or fewer units shall have the option of preparing an AHIP or paying the in- lieu fee. 2. Projects where more than 50 units are proposed shall be required to prepare an AHIP. Implementation of this program will occur in conjunction with City approval of any residential discretionary permits or Tentative Tract Maps. To insure compliance with the 15 percent affordability requirements, the City will include conditions in the approval of discretionary permits and Tentative Tract Maps to require ongoing monitoring of those projects. Program 2.2.2 The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant funds or the City's in -lieu housing fund. Program 2.2.3 For new developments proposed in the Coastal Zone areas of the City, the City shall follow Government Code Section 65590 and Title 20. Ongoing Staff continues to enforce the requirements for affordable housing and/or the payment of in- lieu fees. In addition, the City has hired a consulting firm that is in the process of determining an appropriate in -lieu fee. The City is also in the process of drafting an affordable housing ordinance that will implement the requirements of Program 2.2.1. Ongoing The City will provide financial assistance based on a project by project analysis, depending on need and overall project merits. 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. Ongoing Staff continues to implement the provisions of Chapter 20.86 of the Zoning Code (Low and Moderate Income Housing within the Coastal Zone1. During the past Housing Element cycle, 24 affordable units were permitted in the coastal zone plus 119 at Bayview Landing. Housing Element This program remains appropriate. This program remains appropriate. This program remains appropriate. Newport Beach General Plan Housina Element Table H42 Detailed Housing Program Accomplishments Program Accom llshMonts Appropriateness Program 2.2.4 All required affordable units shall Ongoing This program remains have restrictions to maintain their affordability for Staff continues to include this affordability appropriate. a minimum of 30 years. 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 project was 55 years). Program 2.2.5 Advise existing landowners and Ongoing This program remains prospective developers of affordable housing City staff continues to provide prospective appropriate. development opportunities available within the developers with information on the City's Banning Ranch, Airport Area, Newport Center, available land and its incentive program. Mariners Mile, West Newport Highway, and Development of a plan outlining incentives that Balboa Peninsula areas. implement General Plan is in process. Program 2.2.6 Periodically contact known local Ongoing This program remains developers and landowners to solicit new The City Manager's Office and Community and appropriate, affordable housing construction. Economic 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. Program 2.2.7 Participate in other housing Ongoing This program remains assistance programs that assist production of City staff attends OCHA Cities Advisory appropriate. housing. Committee meefings to keep up -to -date with programs that assist in the production of housing. Staff will inform developers of programs that are available to assist in the production of housing for all income levels. Program 2.2.8 New developments which Ongoing This program remains provide housing for lower income households Effective January 1, 2006, local governments appropriate. that help meet regional needs shall have priority are required provide a copy of the Housing for the provision of available and future Element to water and sewer service providers. resources or services, including water and sewer The City has done this. Pursuant to state law. supply and services, water and sewer providers must grant priority to developments that include housing units affordable to lower income households. Newport Beach General Plan Program 2.3.1 Study housing impacts of proposed major commerciallindustrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to the "Charter Section 423" initiative. Ongoing The City considers "fast -track" development review incentives on a project -by- project basis. The City's General Plan Implementation Program encourages code amendments and the development of incentives that achieve General Plan goals. Goal H3 Housing opportunities for as many renter and owner occupied households as possible in Program 3.1.1 Provide a streamlined "fast- track" development review process for proposed affordable housing developments. Program 3.1.2 When a residential developer agrees to construct housing for persons and families of very low, low- and moderate - income above mandated requirements, the City shall either (1) grant a density bonus as required by state law or (2) provide other incentives of equivalent financial value. Program 3.1.3 Review and consider in accordance with state law, the waiver of planning and pads fees, and modification of development standards, (e.g., setbacks, lot coverage, etc.) at the discretion of City Council and Planning Commission for developments containing very low, low- and moderate - income housing in proportion to the number of low- and moderate - income units in each entire project. Program 3.2.1 Identify the following sites as adequate, which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage development of a variety of housing types to meet City housing goals as identified pursuant to Government Code Section 65583(b): Banning Ranch, Airport Area, Newport Center, Mariners' Mile, and the Balboa Peninsula areas. On -going The City considers "fast track" development review incentives on a project-by- project basis. The City's General Plan Implementation Program encourages code amendments and the development of incentives that achieve General Plan coals. Ongoing The City considers density bonuses and other incentives on a project by project basis. Ongoing Waivers and incentives are considered by the Planning Commission and City Council on a project -by- project basis. The City's General Plan Implementation Program encourages code amendments and the development of incentives that achieve General Plan goals. Housina Element This program remains appropriate. onse to the demand for " This program remains appropriate. This program remains appropriate. This program remains appropriate. As part of the Housing Element update This program remains process, the Cite completed an adequate sites appropriate. analysis. The analysis will ensure that sites are available to help achieve City housing goals. Newport Beach General Plan Housing Element Table Detailed Housing Program Accomplishments Program Accom lishments Aporoodateness Program 3.2.2 Update the Zoning Code to The City is in the process of updating its This program remains reflect housing opportunities provided in the Zoning Code to reflect new housing appropriate. The update Land Use Element. opportunities created by the General Plan well be complete by the Update end of 2008. Program 3.2.3 When requested by property Ongoing This program remains owners, the City shall approve rezoning of The City continually monitors requests for appropriate. developed or vacant property from non- zone changes of vacant and developed conjunction with Program 2.2.7. residential to residential uses when appropriate. properties from non - residential to residential These rezoned properties shall be added to the and approves when determined to be list of sites for residential development. compatible and feasible. When approved, 2014 planning period. these sites are mapped for residential uses on Ongoing This program remains both the zoning district map and General Plan Information pamphlets informing prospective appropriate. Land Use Map. tenants and landlords about the OCHA Goal H4 Preservation and increased affordability of the City's housing stock for very low-, low, and moderate - income households. Program 4,1.1 Periodically contact owners of Ongoing This program remains affordable units for those developments listed in Staff is currently updating the contact list for appropriate. Table H12 to obtain information regarding their affordable units. A survey may be developed plans for continuing affordability on their and sent out annually to each contact. properties. Program 4.1.2 Consult with the property owners Will be discussed during the Affordable This program remains regarding utilizing CDBG funds and in -lieu Housing Task Force (AHTF) meetings in appropriate. CDBG housing funds to maintain affordable housing conjunction with Program 2.2.7. funds are committed to opportunities in those developments listed in payment Section 108 Table H12. Loan during the 2006- 2014 planning period. Program 4.1.3 Prepare written communication Ongoing This program remains for tenants and other interested parties about Information pamphlets informing prospective appropriate. Orange County Housing Authority Section 8 tenants and landlords about the OCHA opportunities to assist tenants and prospective Section 8 program have been made available tenants to acquire additional understanding of in the public lobby. housing law and related policy issues. In addition, information about the Section 8 program has been posted on the City website. Program 4.1.4 Investigate availability of federal, The City has continued to investigate available This program remains state, and local programs (including in -lieu programs and evaluate the feasibility of appropriate. funds) and pursue these programs if found participating in such programs. feasible, for the preservation of existing low - income housing, especially for preservation of low- income housing that may increase to market rates during the next ten years. A list of these programs, including sources and funding amounts, will be identified as part of this program and maintained on an ongoing basis. Newport Beach General Plan Program 4.2.1 Investigate the use of federal funds to provide technical and financial assistance, if necessary, to all eligible homeowners and residential rental property owners to rehabilitate existing dwelling units through low interest loans or potential loans, or grants to very low-, low- and moderate - income, owner - occupants of residential properties to rehabilitate existing units. Program 4.2.2 In accordance with Government Code Section 65863.7, require a relocation impact report as a prerequisite for the closure or conversion of an existing mobile home park. Program 4.2.3 Should need arise, consider using a portion of its Community Development Block Grant funds for establishment and implementation of an emergency home repair program. Energy efficient products shall be required whenever appropriate. Program 4.2.4 Participate as a member of the Orange County Housing Authority Advisory Committee and work in cooperation with the Orange County Housing Authority to provide Section 8 Rental Housing Assistance to residents of the community. The City shall, in cooperation with the Housing Authority, recommend and request use of modified fair market rent limits to increase number of housing units within the City that will be eligible to participate in the program. The Newport Beach Planning Department shall prepare and implement a publicity program to educate and encourage landlords 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 has continued to investigate available programs and evaluate the feasibility of participating in such programs. Ongoing City staff requires special permits for all proposed conversions of mobile home parks. Consistent with state law, a detailed relocation impact report is a requirement for the permit. The need for this program has not yet been demonstrated. Housing Element This program remains appropriate. This program remains appropriate. This program remains appropriate to consider. City Staff regularly attends the quarterly This program remains meetings of the OCHA Cities Advisory appropriate. Committee. In addition, staff continually works in cooperation with the County to provide Section 8 rental housing assistance to residents. Recently, the City worked 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 the City website to provide information on the Section 8 program. Program 4.2.5 Participate in a Joint Powers Due to potential legal conflicts, the lease Discontinued Indefinitely Authority of Orange County jurisdictions for the purchase program has been discontinued purpose of financing and administering a lease indefinitely. purchase program for first -time homebuyers. Newport Beach General Plan Housinq Element Goal H5 Housing opportunities for special needs Program 5.1.1 Apply for United States Department of Urban Development Community Development Block Grant (CDBG) funds and allocate a portion of such funds to sub - recipients who provide shelter and other services for the homeless. Program 5.1.2 Cooperate with the Orange County Housing Authority to pursue establishment of a Senior /Disabled or Limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. Program 5.1.3 Permit, where appropriate, development of "granny" units in single - family areas of the City. Program 5.1.4 Consistent with development standards in residential and commercial areas, permit emergency shelters and transitional housing under group housing provisions in its Zoning Code. Program 5.1.5 Work with the City of Santa Ana to provide recommendations for the allocation of HUD Housing Opportunities for Persons with AIDS ( HOPWA) funds within Orange County) The City continues to provide CDBG funds to homeless shelters and at -risk service providers. In Fiscal year 2007 -2008 the City provided funding to Human Options, Emergency Transitional Shelter (Orange Coast Interfaith Shelter), Serving People in Need (SPIN), and Fair Housing Council of Orange County. The following organizations has been funded to assist homeless battered women and children: Human Options This has not yet been completed. The City will conduct an analysis of different programs and the financial feasibility er-of participating in such programs. Code Amendment No. 2003 -001 (PA2003- 054) was approved by City Council on May 13, 2003 to grant the Planning Director authority to approve use permits for accessory dwelling units. This has not yet been completed. Will be completed with the comprehensive Zoning Code update (surend of 2008) On February 9, 2005, the City 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 NOWNEW 1AMNewport Beach General Plan This program remains appropriate. This program remains appropriate. This program remains appropriate. This program remains appropriate. This program remains appropriate. Housina Element Table H42 Detailed Housing Program Accomplishments Housing Element Coastal Zone Review The City of Newport Beach uses Section 20.86 of the Municipal Code to implement Government Code Section 65590 et seq. Between January 1, 2000, and January 1, 2007, 924 new residential units were approved for construction within the California Coastal Zone. Of these new units, 160 developed as housing affordable to low- income and moderate - income individuals and /or families (Bayview Landing project). During the same time period, the City permitted landowners to demolish 768 residential units writhin the Coastal Zone for a net increase of 156 units. Of the units demolished, none were occupied by low- income and /or moderate - income persons and /or families. Newport Beach General Plan Program 5.1.6 Maintain a list of "Public and Not yet completed•City staff will work to This program remains Private Resources Available for Housing and develop and maintain a list of resources that appropriate. Community Development Activities." are available for housing and community development activities Goal H6 Equal housing opportunities for all residents Program 6.1.1 Contract with an appropriate fair The City annuall contracts with the OC Fair This program remains housing service agency for the provision of fair Housing Authority annually. appropriate. housing services for Newport Beach residents. The Regional Fair Housing Impediments The City will also work with the fair housing Analysis was completed in 2000. service agency to assist with the periodic update Pamphlets containing information of Fair of the Analysis of Impediments to Fair Housing Housing and Dispute Resolution Services are document required by HUD. The City will available at the public counter. continue to provide pamphlets containing information related to fair housing at the Planning Department counter. Program 6.1.2 Support fair housing Every year during the planning period, This program remains opportunities by using Community Development Newport Beach allocated approximately appropriate. Block Grant funds whenever necessary to enact $13,000 in CDBG funding to the Fair Housing federal, state, and City fair housing policies. Council of Orange County to assist the City in furthering fair housing through education, landlord /tenant counseling, and legal action when necessary. Goal H7 Effective and responsive housing programs and policies Program 7.1.1 As part of its annual General Consistent with State Housing Element Law, This program remains Plan Review, the City shall report on the status the City prepares an Annual Housing Element appropriate. of all housing programs. The portion of the Progress Report for submission to HCD. Annual Report discussing Housing Programs is to be distributed to the California Department of Housing and Community Development in accordance with California State Law. Housing Element Coastal Zone Review The City of Newport Beach uses Section 20.86 of the Municipal Code to implement Government Code Section 65590 et seq. Between January 1, 2000, and January 1, 2007, 924 new residential units were approved for construction within the California Coastal Zone. Of these new units, 160 developed as housing affordable to low- income and moderate - income individuals and /or families (Bayview Landing project). During the same time period, the City permitted landowners to demolish 768 residential units writhin the Coastal Zone for a net increase of 156 units. Of the units demolished, none were occupied by low- income and /or moderate - income persons and /or families. Newport Beach General Plan Housina Element YEAR 2008 -2014 HOUSING PLAN Quantified Objectives The 2AH82006 -2014 Regional Housing Needs Assessment (RHNA) determined the City of Newport Beach had a construction need for 1,784 residential units between January 2006 and January 2014. The total need for each target income group is as follows: Very Low Income (392 units); Low Income (322 units); Moderate Income (362 units); and, Above Moderate Income (708 units). As summarized in Table H43, since January 1, 2006, a total of 461 housing units have been constructed in the community and may be credited toward meeting the adequate sites requirement of the Regional Housing Needs Assessment. Given the home prices within the community all of the 461 single- family and multi- family units are assumed to be above - moderate - income units. Table Income Group 204422Q.4­2074 RHNA r Units Constructed/ In the Pipeline since 2006 Remaining RHNA Very Low Incomes 392 0 392 Low Income 322 0 322 Moderate Income 362 0 362 Above Moderate 708 461 247 Total 1 1,784 461 1,323 Indudes single family and multi - family In addition; to the 461 market rate units, there are 79 units approved with the Santa Barbara Condominium project that ineludes- requires 46- affordable low- and moderate- income housing units to be on< r. r d off-site. All of the affordable units will be required to be affordable for a period of 30 years. This project was approved by the Newport Beach City Council in 2006 by the Local Coastal Commission in 2007. This approval involved the approval of an amendment to the prior General Plan Land Use Plan from Administrative, Professional, Commercial Visitor, and Financial Commercial to Multi- Family Residential. The Year 2008 -2014 Housing Plan for Newport Beach has identified Goals, Policies, and Programs that fulfill the remaining RHNA construction need. Achieving the remaining RHNA allocation is expected to be achieved through the future redevelopment of several key housing opportunity areas such as Airport Area, Newport Center, Newport Mesa, Banning Ranch, the Balboa Peninsula area, and Mariners' Mile. These areas could potentially accommodate up to 4,825 to 5,025 new residential units. The Airport Area in particular is a key opportunity site within the community that can facilitate the development of housing that is affordable at a variety of income levels. General Plan policy for this area stipulates that residential units be developed at a maximum density of 50 units per acre and extremely low- income caregoU. Newport Beach General Plan Housina Element minimum of 30 units per acre. In addition to the future residential sites identified within the General Plan update, all future residential development citywide would be subject to the City's Inclusionary Housing Program, which establishes a goal that 15 percent of all new units be affordable to very low -, and low -, and moderate- income households. Projects of 50 or fewer units have the option of preparing an Affordable Housing Implementation Plan (AHIP) or paying an in -lieu fee. Projects of more than 50 units are required to prepare an AHIP that specifies how the development will meet the City's affordable housing goal. It is estimated that the total number of new units that could be developed pursuant to the Land Use Element is 6,900. It is estimated that approximately 1,030 of these would be affordable subject to the provisions of the Inclusionary Housing Program. Affordable units shall be legally restricted to occupancy by households of the income levels for which the affordable units were designated for at least 30 years. Since approval of the General Plan by the voters in November 2006, there has been significant interest from developers regarding the construction for housing and mixed -use development within the key housing opportunity areas of the Airport Area and Newport Center. The new infill housing development will occur on prior non - residentially designated sites. In addition to the Santa Barbara Condominium project, which will occur within the Newport Center area, the North Newport Center Planned Community Development Plan was approved by the City in 2007. As part of the proposed 430 mixed -use units, the Planned Community Development Plan includes an Affordable Housing Plan (AHIP), a required component of the City's existing Affordable Housing Implementation Program requirements. The North Newport Center AHIP was approved in December 2007. The AHIP requirement for affordable housing is based on income categories. The Irvine Company is required to provide either very low —, low -, or moderate - income housing, or a combination of income categories, using the percentages shown below: ■ Very Low: 43 units (10 %) • Low: 65 units (15 %) • Moderate: 86 units (20%) To meet these requirements, the North Newport Center Planned Community AHIP includes the construction of 14 affordable multi-family units on a 0.75 -acre parcel of land near the intersection of San Joaquin Hills Road and San Miguel Avenue and /or the creation of affordability- covenants for 29 to 89 existing units. At this location, the units must be rented to households qualifying as very low —, low -, or moderate- income households for a period of at least 30 years. As the project moves forward, it is anticipated that these units will contribute the affordable housing supply in the community. Another private land owner in the Newport Center area is presently under discussion with the City to develop a-30 -unit multi- family rental and fot -sale project on the site presently occupied by the Balboa Bay Tennis Club. The developer would have the choice of paying the City's iii-heu fee or providing affordable units. The City has adequate capacity to fulfill its remaining RHNA requirement through future residential capacity identified in the Land Use Element and the City's Inclusionary Housing Program requirements. Newport Beach General Plan M Housina Element Newport Beach Housing Element: Goals, Policies, and Programs Goals for the City include the following. promoting quality residential development through application of sound planning principles and policies that encourage preservation, conservation, and appropriate redevelopment of housing stock; providing a balanced residential community that contains a variety of housing types, designs and opportunities for all economic segments of the community; extending ownership opportunities to as many households as possible, particularly those of moderate and upper incomes because these comprise the greatest demand; preserving and increasing housing affordability, through rental housing, for very low- and low- income households; and, providing housing for special needs groups. The policies and programs described below focus on providing appropriate and affordable housing opportunities and related services to the special needs populations most in need of such in Newport Beach, that is, in particular to senior citizens. Additionally, the policies and programs (particularly under Goals 3, 4, and 5) will ensure that the City will meet its remaining RHNA for very low —, low -, and moderate - income 1,323 units. of ' "O. IT fatal rtew-units for _ For purposes of defining income groups, the Housing Element follows the regulations of Title 25 (Housing and Community Development) of the California Code of Regulations (CCR), Sections 6910 through 6932. The income groups are defined as follows: Very Low— Income: 50 percent or less of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. Low- Income: 50-80 percent of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. Moderate- Income: 80-120 percent of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. Above Moderate— Income: 120+ percent of the area median income, as adjusted for family size by the United States Department of Housing and Urban Development. The following affordability standards shall apply to rental and ownership housing • Maximum household income shall be determined by number of persons in a family or household. • Income shall be in conformance with the limits set forth in 25 CCR §6932. An effraeng unit shall be occupied by one person; a one bedroom as if occupied by two persons; a two bedroom considered to be occupied by four persons; a tbree bedroom considered to be occupied by six persons; and a foar bedroom considered to be occupied by eight. Rents for very low —, low -, and moderate - income households shall be no more than 30 percent of the income limits set forth in Section 6932. The selling price of an ownership unit shall be no more than three times the buyer's income. Units may be sold to buyers with qualifying incomes for the limited sales price without regard to the number of persons in the family. Specific Goals, Policies, and Programs of the 2008 -2014 Newport Beach Housing Plan follow. =Newport Beach General Flan Housing Element nti H7 Quality residential development and preservation, conservation, and appropriate redevelopment of housing stock Policies H 1.1 Support all reasonable efforts to preserve, maintain, and improve availability and quality of existing housing and residential neighborhoods, and ensure full utilization of existing City housing resources for as long into the future as physically and economically feasible. Programs Housing Program LLl Improve housing quality and prevent deterioration of existing neighborhoods by strictly enforcing Building Code regulations and abating Code violations and nuisances. (Imp 25.1, 26.1) Reiponribility: Planning Department, Building Department the City Attorney and Code and WaterQuality Enforcement. Housing Program 1.1.2 Participate w ith the Orange County Housing Authority and Housing and Community Development Division in their administration of rehabilitation loans and grants for low- and moderate - income homeowners and rental property owners to encourage preservation of existing City housing stock. (Imp 14.3, 25.1) Reipauibility: Planning Department. Housing Program 1.1.3 Require replacement of housing demolished within the Coastal Zone when housing is or has been occupied by very low —, low -, and moderate- income households within the preceding 12 months. The City shall prohibit demolition unless a Coastal Residential Development Permit has been issued. The specific provisions implementing replacement unit requirements are contained in the Municipal Code. (Imp 1. 1, 5.1) Reiponubility: Planning Department. Newport Beach General Plan= Housinq Element H2 A balanced residential community, comprised of a variety of housing types, designs, and opportunities for all social and economic segments Policies H 2.1 Encourage preservation of existing and provision of new housing affordable to very low —, low -, and moderate - income households. Programs Housing Program 2.1.1 Maintain rental opportunities by restricting conversions of rental units to condominiums unless the vacancy rate in Newport Beach for rental housing is an average 5 percent or higher for four (4) consecutive quarters, and unless the property owner complies with condominium conversion regulations contained in Chapter 20.83 of the Newport Beach Municipal Code. (Imp 25.1) Responsibility: Planning Department. Housing Program 2.1.2 Take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, budding and other development permits, to ensure expedient construction and occupancy for projects approved with low- and moderate - income housing requirements. (Imp 2.1) Responsibility: Planning Department and City Comnal. Housing Program 2.1.3 Participate with the County of Orange in the issuance of tax- exempt mortgage revenue bonds to facilitate and assist in Financing, development and construction of housing affordable to low and moderate - income households. (Imp 14.3) Responsibility: Planning Department. Housing Program 2.1.4 Conduct an annual compliance- monitoring program for units required to be occupied by very low -, low -, and moderate - income households. (Imp 25.1) Responstbility: Planning Department. >o Newport Beach General Plan Housina Element H 2.2 Encourage the housing development industry to respond to housing needs of the community and to the demand for housing as perceived by the industry, with the intent of achieving the Regional Housing Needs Assessment construction goals within ix years. Programs Housing Program 2.2.1 Require a proportion of affordable housing in new residential developments or levy an in -lieu fee. The City's goal over the five - year planning period is for an average of 15 percent of all new housing units to be affordable to very low —, low -, and moderate - income households. The City shall either (a) require the payment of an in -lieu fee, or (b) require the preparation of an Affordable Housing Implementation Plan (AHIP) that specifies how the development will meet the City's affordable housing goal, depending on the following criteria for project size: 1. Projects of 50 or fewer units shall have the option of preparing an AHIP of paying the in -lieu fee. 2. Projects where more than 50 units are proposed shall be required to prepare an AHIP. City of Newport Beach is in the process of developing an Affordable Housing Ordinance to formalize implementation of the Inclusionary Requirements described above. The City has retained a consultant to determine the appropriate levels of in -heu fees and to review the existing inclusionary requirements. It is anticipated that the Ordinance will be adopted in the summer of 2008. In the interim, the City implements the Inclusionary Program through discretional approval. Implementation of this program will occur in conjunction with City approval of any residential discretionary permits or Tentative Tract Maps. To insure compliance with the 15 percent affordability requirements, the City will include conditions in the approval of discretionary permits and Tentative Tract Maps to require ongoing monitoring of those projects. (Imp 2.1) Responribility. Planning Deportment, Planning Commission and City Comnaz Housing Program 2.2.2 Periodically review the City's Inclusionary Housing In -lieu fees to ensure it is adequate to support the development of affordable projects. (1mp 2.1,25. 1) Responsibility. Planning Department, Planning Commission and City Council Newport Beach General Plan Housing Element Housing Program 2.2.3 Develop a brochure of incentives offered by the City for the development of affordable housing including fee waivers, expedited processing, Inclusionary Housing requirements, and density bonuses and other incentives. Provide a copy of this brochure at the Planning Counter, the website and also provide a copy to potential developers. Develop the brochure by the end of 2008. (Imp 2.1, 25.1) Responsibility: Planning Department, Planning Commission and City Connell Housing Program 2.2.4 The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant funds or the City's in -heu housing fund. (Imp 2.1, 25.1) Responsibiliy Planning Department, Planning Commission and City CanndL Housing Program 2.2.5 For new developments proposed in the Coastal Zone areas of the City, the City shall follow Government Code Section 65590 and Title 20. (Imp 5.1) Responsibility: Planning Department and the City Canne[L Housing Program 2.2.6 All required affordable units shall have restrictions to maintain their affordability for a minimum of 30 years. (Imp 25.1) Responsibility: Planning Department, City Attorney, and City Connel. Housing Program 2.2.7 Advise existing landowners and prospective developers of affordable housing development opportunities available within the Banning Ranch, Airport Area, Newport Mesa, Newport Center, Mariners' Mile, West Newport Highway, and Balboa Peninsula areas. (Imp 24.1) Responsibility: Planning Department. Housing Program 2.2.8 Periodically contact known local developers and landowners to solicit new affordable housing construction. (Imp 25.1) Responsibility: Planning Deportment. Housing Program 2.2.9 Participate in other housing assistance programs that assist production of housing. (Imp 14.3, 25.1) Responsibility: Planning Department. Housing Program 2.2.10 New developments that provide housing for lower- income households that help meet regional needs shall have priority for =Newport Beach General Plan Housina Element the provision of available and future resources or services, including water and sewer supply and services. (NR 1.6) (Imp 17.1) Responsibility: Planning Department and Utilities Department Housing Program 2.2.11 The City will adopt a Density Bonus Ordinance that will be consistent with state law. The Density Bonus Ordinance will be reflective of changes that have occurred to State Law (Government Code Section: 65915 - 65918. This will be accomplished as part of the City's comprehensive Zoning Code update to be completed in the sua —rmae -vi by the end of 2008. (Imp 17.1) Responribihi r Planning Department, City Attorney, and City CoundL Policy H 2.3 Approve, wherever feasible and appropriate, mixed residential and commercial use developments that improve the balance between housing and jobs. Programs Housing Program 2.3.1 Study housing impacts of proposed major commercial /industrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to the "Charter Section 423" initiative. (Imp 25.1) Rejponsibilio Planning Department and Planning Commission. H3 Housing opportunities for as many renter and owner occupied households as possible in response to the demand for housing in the city Newport Beach General Plan Housing Elemen H 3.1 Mitigate potential governmental constraints to housing production and affordability by increasing the City of Newport Beach role in facilitating construction of affordable housing for all income groups. Programs Housing Program 3.1.1 Provide a streamlined "fast- track" development review process for proposed affordable housing developments. (Imp 2.1) Responsibility. Planning and Building Department Housing Program 3.1.2 When a residential developer agrees to construct housing for persons and families of very low, low, and moderate income above mandated requirements, the City shall eit}ter --(-1 -}grant a density bonus as required by state law andLor (2)—provide ether additional incentives of equivalent financial value. (Imp 2.1) Responsibility: Planning Department. Housing Program 3.1.3 Review and consider in accordance with state law, the waiver of planning and park fees, and modification of development standards, (e.g., setbacks, lot coverage, etc.) at the discretion of City Council and Planning Commission for developments containing very low, low- and moderate - income housing. (Imp 2.1) Responsibility: Planning Commission and Cily Council Policy H 3.2 Enable construction of new housing units sufficient to meet City quantified goals by identifying adequate sites for their construction. Development of new housing will not be allowed within the John Wayne Airport QWA) 65dB CNEL contour, no larger than shown on the 1985 JWA Master Plan. Programs Housing Program 3.2.1 Identify the following sites as adequate, which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage development of a variety of housing types to meet City housing goals as identified pursuant to Government Code Section 65583(b): Banning Ranch, Airport Area, Newport Center, Mariners' Mile, Newport Mesa, and the Balboa Peninsula areas. (Imp 2.1, 25.1) Responsibility: Planning Department and City Council. ` Newport Beach General Plan Housina Element Housing Program 3.2.2 Update Zoning Code to reflect housing opportunities provided in the Land Use Element. (Imp 2.1) Responsibility: Planning Department, Planning Commission and City Connell Housing Program 3.2.3 When requested by property owners, the City shall approve rezoning of developed or vacant property from non - residential to residential uses when appropriate. These rezoned properties shall be added to the list of sites for residential development. (Imp 1.1) Responsibility: Planning Department, Planning Commission and City Council H4 Preservation and increased affordability of the City's housing stock for very low —, low -, and moderate- income households. Pollcy , H 4.1 Encourage the extension of the affordability contracts for the developments listed in Table H12 (City of Newport Beach Assisted Housing Summary) of this Housing Element beyond the years noted. Programs Housing Program 4.1.1 Periodically contact owners of affordable units for those developments fisted in Table H12 to obtain information regarding their plans for continuing affordability on their properties. (Imp 25.1) Responsibility: Planning Department. Housing Program 4.1.2 Consult with the property owners regarding utilizing CDBG funds and in -lieu housing funds to maintain affordable housing opportunities in those developments listed in Table H12. (Imp 25.1) Responsibility: Planning Department. Housing Program 4.1.3 Prepare written communication for tenants and other interested parties about Orange County Housing Authority Section 8 opportunities to assist tenants and prospective tenants to acquire additional understanding of housing law and related policy issues. (Imp 14.3) Newport Beach General Plan am Housina Element Responsibility: Planning Department. Housing Program 4.1.4 Investigate availability of federal, state, and local programs (including in -lieu funds) and pursue these programs if found feasible, for the preservation of existing low- income housing, especially for preservation of low- income housing that may convert to market rates during the next ten years. A Est of these programs, including sources and funding amounts, will be identified as part of this program and maintained on an ongoing basis. (Imp 14.3, 25.1) Responsibility: Planning Department Policy H 4.2 Maintain and preserve existing City housing stock and improve energy efficiency of all housing unit types (including mobile homes). Programs Housing Program 4.2.1 Investigate the use of federal funds to provide technical and financial assistance, if necessary, to all eligible homeowners and residential rental property owners to rehabilitate existing dwelling units through low- interest loans or potential loans, or grants to very low —, low- and moderate- income, owner- occupants of residential properties to rehabilitate existing units. (Imp 25.1) Responsibility. Planning Department. Housing Program 4.2.2 In accordance with Government Code Section 65863.7, require a relocation impact report as a prerequisite for the closure or conversion of an existing mobile home park. (Imp 25.1) Responsibility. Planning Department and the State of California. (The state will determine acreptabibo of the relocation impart report). Housing Program 4.2.3 Should need arise, consider using a portion of its Community Development Block Grant funds for establishment and implementation of an emergency home repair program. Energy efficient products shall be required whenever appropriate. (Imp 25.1) Responsibility: Planning Department Housing Program 4.2.4 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 �c Newport Beach General Plan Housino Element use of modified fair market rent limits to increase number of housing units within the City that will be eligible to participate in the program. The Newport Beach Planning Department shall prepare and implement a publicity program to educate and encourage landlords 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. (imp 14.3) Reaponsib&i ,: Planning Department H5 Housing opportunities for special needs populations Policy H 5.1 Encourage approval of housing opportunities for senior citizens and other special needs populations. Programs Housing Program 5.1.1 Apply for Community Development Block Grant funds and allocate a portion of such funds to sub - recipients who provide shelter and other services for the homeless. (Imp 25.1) Responsibility.• Planning Department and the City CoanaZ Housing Program 5.1.2 Cooperate with the Orange County Housing Authority to pursue establishment of a Senior /Disabled or limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. (Imp 143) Responsibility: Planning Department and the City Council Housing Program 5.1.3 Permit, where appropriate, development of "granny" units in single - family areas of the City. (Imp 2.1) Responsbilq Planning Department. Housing Program 5.1.4 Work with the City of Santa Ana to provide recommendations for the allocation of HUD Housing Opportunities for Persons with AIDS (HOPWA) funds within Orange County. (Imp 14.3) Newport Beach General Plan Housing Element Respon dbi &ty: Planning Department. Housing Program 5.1.5 Maintain a list of "Public and Private Resources Available for Housing and Community Development Activities." (Imp 25.1) Responsibility: Planning Department. Housing Program 5.1.6 As part of the City's comprehensive revision to the Zoning Ordinance in 2008, the City will comply with the provisions of SB 2. Specifically, the City will identify a zone or zones where emergency shelters are allowed as a pemvtted use without a conditional use permit or other discretionary permit. (Imp 25.1) Reiponribillty: Planning Department. Housing Program 5.1.7 Encourage the development of day care centers and community parks as a component of new affordable housing constructed as part of the requirements of the City's Inclusionary Housing Ordinance. (Imp 2.1) Rerponsibiht, Planning Department, Planning Commission and City Gonna H6 Equal housing opportunities for all residents 11, Oil.Y , H 6.1 Support the intent and spirit of equal housing opportunities as expressed in Title VII of the 1968 Civil Rights Act, CoUfonda Rumford Fair Housing Act, and the California Unruh Civil Rt ghisArt. Programs Housing Program 6.1.1 Contract with an appropriate fair housing service agency for the provision of fair housing services for Newport Beach residents. The City will also work with the fair housing service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing document required by HUD. The City will continue to provide pamphlets containing information related to fair housing at the Planning Department counter. (Imp 14.3) Responsibility: Planning Department and City Attorney MINIewport Beach General Plan Housina Element Housing Program 6.1.2 Support fair housing opportunities by using Community Development Block Grant funds whenever necessary to enact federal, state, and City fair housing policies. (Imp 14.3, 25.1) Responsibility: Planning Department. H7 Effective and responsive housing programs and policies H 7.1 Review the Housing Element on a regular basis to determine appropriateness of goals, policies, programs, and progress of Housing Element implementation. Programs Housing Program 7.1.1 As part of its annual General Plan Review, the City shall report on the status of all housing programs. The portion of the Annual Report discussing Housing Programs is to be distributed to the California Department of Housing and Community Development in accordance with California state. (Imp. 1.4, 14.5) Responsibility: Planning Department. Newport Beach General Plan Housing Element Contact Name Contact Into Street Address City-ST-zip Allison Kunz Olson The Olson Company 3020 Old Ranch Parkway, Ste 400 Seal Beach, CA 90740 Alix Wisner Laing Urban 10950 Washington Blvd, Ste 200 Culver City, CA 90232 Ashley Wright So. Cal Housing Development Corp 8065 Haven Ave., Ste 100 Rancho Cucamonga, CA 91730 Barry A. Cottle C & C Development Co., LLC 1110 E. Chapman Avenue, Ste 220 Orange, CA 92866 Barry Sayvdtz 4740 Van Karman Avenue, #1 DO Newport Beach, CA 92660 Bart G. Hess Orange County Affordable Home Ownership Alliance 2 Park Plaza, Ste 100 Irvine, CA 92614 Ben Anderson 17780 Fitch Street, #120 Irvine, CA 92614 Beverly Schuberth Kennedy Commission 17701 Cowan Ave., Ste 200 Irvine, CA 92614 Brian J. Flomes Vintage Senior Housing, LLC 359 San Miguel Drive, Ste 300 Newport Beach, CA 92660 Brad Kuish PO Box 762 Corona del Mar, CA 92625 Bryan Starr Orange County Chapter BIA 17744 Sky Park Circle, Ste 170 Irvine, CA 92614 Carol Mentor McDermott Government Solutions Inc. 230 Newport Center Drive, Ste 210 Newport Beach, CA 92660 Cesar Covarrubias Kennedy Commission 17701 Cowan Ave., Ste 200 Irvine, CA 92614 Chris Yelich Brooks Street 1300 Quail, Ste 100 Newport Beach, CA 92660 Dan Miller The Irvine Company 550 Newport Center Drive Newport Beach, CA 92660 Eric Welton 2855 E Coast Hwy, #2D0 Corona del Mar, CA 92625 Christine Iger Iger & Associates 2102 Business Center Drive, Ste 142 Irvine, CA 92612 Ezequiel Gutierrez Jr. Public Law Center 601 Civic Center Drive West Santa Ana, CA 92701 George L. Basye Aera Energy LLC 3030 Saturn Street, Ste 101 Brea, CA 92821 Greg Lee 2435 E Coast Hwy, Ste 2 Corona del Mar, CA 92625 Greg Olafson Steadfast Companies 20411 S.W. Birch Street, Ste 200 Newport Beach, CA 92660 Gregg Ramirez City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92658 JB Collins 2025 W Balboa Blvd., #2A Newport Beach, CA 92663 Jack Daft 109 30th Street Newport Beach, CA 92663 Jack Herron 161 Fashion Lane, #110 Tustin, CA 92780 Jake Cisneros Conexant Systems, Inc. 4000 MacArthur Blvd Newport Beach, CA 92660 Jessie Barkley PBS &J 12301 Wilshire Blvd, Ste 430 Los Angeles, CA 90025 JoAnn Ulvan Bridges America Foundation, Inc. 18837 Brockhurst St., Ste 303 Fountain Valley, CA 92708 John Adams John S. Adams & Associates 5100 Birch Street Newport Beach, CA 92660 John O'Brien Brookfield Homes 3090 Bristol Street, Ste 200 Costa Mesa, Ca 92626 John Seymour III So. Cal Housing Development Corp 9065 Haven Ave Ste 100 ., Rancho Cucamonga, CA 91730 John E. Young Word Premier Investments 3 Imperial Promenade, Ste 550 South Coast Metro, CA 92707 ®Newport Beach General Plan Housing Element Contact Name Contact Info Sheet Address City-ST-ZIP Joshua Haskins Iger & Associates 2102 Business Center Drive, Ste 142 Irvine, CA 92612 Kathleen M. Crum CAA Planning 85 Argonaut, Ste 220 Aliso Viejo, CA 92656 Kathy Marvick LE Plastrier Development Consulting 19800 MacArthur Blvd., Ste 1150 Irvine, CA 92612 Kevin Russell Affordable Housing Partners 2424 S.E. Bristol Street, Ste 330 Newport Beach, CA 92660 Kevin Weeda 429 W 30th St Newport Beach, CA 92663 Lawrence Herman Jamboree Housing Corporation 2081 Business Center Drive, Ste 216 Irvine, CA 92612 Laura Archuleta Jamboree Housing Corporation 2081 Business Center Drive, Ste 216 Irvine, CA 92612 Margie Wakeham Families Forward 9221 Irvine Blvd Irvine, CA 92618 Marianne Moy 1560 Ventura Blvd., 7th Floor Encino, CA 91436 Marie White Government Solutions Inc. 230 Newport Center Drive, Ste 210 Newport Beach, CA 92660 Mark Lee 2435 E Coast Hwy, Ste 2 Corona del Mar, CA 92625 Mark Whitehead 161 Fashion Lane, #110 Tustin, CA 92780 Miguel Hargrove 702 Randolph Avenue, Ste A Costa Mesa, CA 92626 Mike Kaser PO Box 10637 Newport Beach, CA 92658 Mike Mohler Brooks Street 1300 Quail, Ste 100 Newport Beach, CA 92660 Pamela Sapetto Sapetto Government Solutions Inc. 2 Park Plaza, Ste 1220 Irvine, CA 92614 Patricia C. Whitaker Orange Housing Development Corporation 414 E. Chapman Avenue Orange, CA 92866 Paul F. Fruchbom KDF Holdings, L.L.C. 4685 MacArthur Court, Ste 422 Newport Beach, CA 92660 Paula Burier -Lund HCD - Orange County Housing Authority 1770 N. Broadway Santa Ana, CA 92706 Phillip Bettenccurt Bettencourt & Associates 110 Newport Center Drive, Ste 150 Newport Beach, CA 92660 Richard E. Lamprecht The Irvine Company 110 Innovation Drive Irvine, CA 92617 Russ Fluter 2025 W Balboa Blvd Newport Beach, CA 92663 Sam Velfri Sun Cal Companies - South Coastal Division 2392 Morse Avenue Irvine, CA 92614 Steve Castles Shea Homes 655 Brea Canyon Road Walnut, CA 91789 Steve Schapel ETCO Homes 2222 Newport Blvd, 2nd Floor Newport Beach, CA 92663 Steve Zotovich 1900 Main St, #350 Irvine, CA 92614 Timothy O'Connell Century Housing 1000 Corporate Pointe, Ste 200 Culver City, CA 90230 Todd Schooler 301 E 17th St Costa Mesa, CA 92627 Witham A. Witte The Related Companies of California 18201 Von Kerman Avenue, Ste 400 Irvine, CA 92612 Habitat for Humanity of Orange County 2200 S. Richey Street Santa Ana, CA 92705 LINC Housing 110 Pine Avenue, Ste 500 Long Beach, CA 90802 Meta Housing 1640 S. Sepulveda Blvd., Ste 425 Los Angeles, CA 90025 Nicholson Construction 1421 N Wanda Rd, #160 Orange, CA 92867 Newport Beach General Plan Housing Element Orange County HousingAuthority —The County offers rental assistance for those individuals and families in the County in danger of becoming homeless. The Section 8 "Certificate" and "Housing Voucher" programs were established by federal law. Both provide rental assistance for low - income persons (those having incomes 80 percent or less of the County median income) in need of decent, safe, and sanitary housing. The "Certificate" program requires families pay a portion of their rent, but an amount not to exceed 30 percent of their adjusted income. Total amount of the rental unit must be approved by the Housing Authority- based on utilities, location, and the condition of each rental dwelling. Additionally, total rent must fall within Housing Authority Fair Market Rent limits. It should be noted that United States Department of Housing and Urban Development regulations were modified in October, 2000 to allow Section 8 monies to be used for home purchases in addition to rental assistance. The "Housing Voucher" program allows families to pay more than 30 percent of their adjusted income toward rent should they wish to rent a housing unit that has a rent greater than Fair Market Rent. Families pay the difference between the rental price of the dwelling and the Housing Authority portion of the rent. Wetteher" Program by- Oetaber No assistance is provided to the renter should the renter choose a unit more expensive than Fair Market Rent. According to the Orange County Housing Authority, there are more than 2,000 Certificates in existence in Orange County. Fair Housing Council of Orange County —The City of Newport Beach has worked in conjunction with the Fair Housing of Orange to affirmatively further fair housing opportunities in this community. The Fair Housing of Orange "actively supports and promotes freedom of residence through education, advocacy and litigation to the end that all persons have the opportunity to secure the housing they desire and can afford, without regard to their race, color, religion, gender, sexual orientation, national origin, familial status, marital status, disability, ancestry, age, source of income or other characteristics protected by law." The Fair Housing of Orange provides a wide may of programs and services to its clients free of charge and which are available in a number of different languages to residents, housing professional and community service providers under contracts with the City of Newport Beach, an many other communities throughout the County. Families Forward Families Forward Transitional Housing Program (THP)--THP serves homeless families with children and provides transitional housing. Families may stay up to two years and are required to pay 30 percent of their income on rent. Families are also linked with appropriate supporting resources and counseling. OASIS Senior Center —This is a multi- purpose center dedicated to meeting needs of senior citizens and their families. OASIS estimates as many as 75 percent of its clients are residents of Newport Beach. OASIS offers classes in art, exercise, mature driving, topics of enrichment, and computers and arranges social groups for those who share hobbies and interests. The Center travel department coordinates day and overnight trips. OASIS offers transportation programs (three vans) for Newport Newport Beach General Plan Housina Element Beach seniors who have disabilities that limit their access to public transportation. This shuttle program provides transportation from senior citizens' homes to the Senior Center. A Care -A -Van program is available for those senior citizens who require transportation for medical appointments, grocery shopping, and banking. OASIS distributes information about job openings that might interest seniors who wish to supplement their retirement income or to remain active through part-time work. OASIS offers various health services for seniors. Support groups meet regularly at the Center to help senior citizens and their families cope with stress, illness, life transitions, and crises. Informational and supportive counseling is available to seniors and their family members on an individual basis. OASIS also offers a lunch program for active and homebound senior citizens ages 60 and older that is funded by the federal government through the Older American Act. A donation is requested for meals, which are provided by South County Senior Services. Assittaner League oJNeuportMera —This is a non -profit volunteer service organization that assesses and helps meet the physical, material, emotional and cultural needs of the children in our community through self - funded, ongoing philanthropic projects. Programs include "Children's Dental Health Care Center" providing oral hygiene instruction, general dentistry, orthodontia, and endodontics. The Assistance League also provides "Operation School Bell" providing clothing, shoes, school uniforms, and backpacks at no cost to children of low- income families. Still another program includes "Kids on the Block," a nationally recognized educational program that teaches young adults increased understanding and tolerance for fellow classmates who have learning disabilities, physical handicaps or special emotional needs. The latest program, "The Community Outreach Program" provides funding for supplies used in supervised study programs for developmental education, parenting classes and counseling, living expenses for single parents, and day care at accredited facilities. Human Options: Community Resource Center —Human Options offers a wide variety of counseling and education programs to help victims and their family members deal with the effects of domestic violence. Services include crisis intervention, individual counseling for adults, support groups, legal advocacy, education, referrals, therapy, and emergency shelter. Saddleback Community Outrearl.—This center is a non -profit organization that opened in August 1989. It is funded with federal (Super NOFA) monies, monies from local jurisdictions, and monies from faith - based organizations in the following areas: "in- kind" Donations Programs; Sponsorship and Underwriting for Programs and Fundraising Events; Housing Fund Donations; Food Drives; and, "Adopt -A- Family" Holiday Programs (which provides a holiday meal at Thanksgiving and holiday meal and gifts in December). The major objective of Saddleback Community Outreach programs and services is to help those assisted become self-supportive. This organization operates without paid administrators. The Emergency Lodging Program is intended for homeless families needing temporary housing until a permanent residence is established. The Housing Assistance Program is intended for families needing an interest free loan to prevent eviction or to assist with move -in costs. The Interfaith Shelter Program is a six -month program available for homeless singles seeking employment, shelter, and counseling. The Transitional Housing Program is a two-year program for homeless families. Applicants are screened by the Housing Committee to assess each family's ability to pay a reduced rent in a condominium, maintain employment, set goals, meet commitments, and attend practical counseling for budget management. Saddleback Community Outreach also will pay a portion of a family's utility bill to help avoid disconnection of services. Additional services include vouchers for adults and children to obtain clothing at local thrift stores, gasoline vouchers or bus tickets for transportation to job interviews or physician appointments, donation of automobiles contributed to Saddleback Community Outreach to clients in need, medical prescription vouchers for pre - screened families or individuals, "motivational counseling" to help restore hope and confidence, Newport Beach General Plan' Housing Element "practical counseling" to assist in goal setting, budget management and future planning, and referrals to local agencies for other counseling needs. Serving People in Need (SPIN) --SPIN assists low- income and homeless people with financial assistance for housing costs and through a network of comprehensive support services, enables them to become self - sufficient and no longer dependent on public support. SPIN offers 3 different programs: • GAPP (Guaranteed Apartment Payment Program) which offers low- income and homeless families with children (1 adult must be working full -time) with move -in costs to permanent housing. The program also requires mandatory-, comprehensive case management lasting up to 2 years which includes family advisors, tutors for children, childcare cost subsidies, personal and job counseling and budgeting skills. • The SARP ( Substance Abuse rehabilitation Program) program offers participants move -in costs to a recovery home, counseling, bus passes to locate employment and eligibility to the GAPP program if sobriety is maintained for 12 -18 months. • The Street Services Program involves volunteers preparing and delivering a sack meal, hygiene kits and seasonal clothing to the homeless living on the streets South County Senior Services— is a regional non -profit charitable organization that has as its mission to promote, advocate, and improve quality of life, dignity, and independence of the elderly. This organization serves approximately 10,000 seniors annually in its combined programs. South County Senior Services receives funding from federal grants, project income, MediCal, client fees, USDA, funding drives, and special events. South County Senior Services provides medical treatment programs for adults eighteen years or older with disabilities or impairments who are at risk of institutionalization, including nursing services, occupational and physical therapy, speech therapy, nutrition, music therapy, counseling, supervised social and educational activities, exercise, special events, music, and art to delay institutionalization and social isolation. South County Senior Services has an Alzheimer's treatment center and an in -home assessment program to determine needs of frail seniors, 60 years of age and older, and to establish a Plan -of -Care for services needed to assist seniors to maintain independence in their own homes for as long as possible. A transportation program coordinates lift- equipped paratransit services for senior centers. A referral service for In -Home Providers is offered to help seniors maintain independence in their own homes for as long as possible. Various programs and services are offered to meet educational, recreational, social, and human service needs of the elderly population. The Shared Housing Program was designed for seniors and various age groups to share their existing homes for companionship and relief from financial burden of housing costs for short- or long -term tenures. This Program had operated throughout the 1990s, but was discontinued in 2000 because the County of Orange discontinued Community Development Block Grant Funds for the Shared Housing Program. The Mobile Meals program provides het—"w —home- delivered meals to individuals who are homebound due to age, illness, or disability. YMCA —The Newport Beach YMCA offers physical activities classes and personal hygiene facilities. Y117CA Hotel for Women —The YWCA Hotel for Women provides shelter, food, counseling, job - search, and housing- search assistance for homeless women. Friends in Sennce to Hsmanit) --This agency (established in 1968) assists more than 5,900 families in Orange County. These families consist of more than 24,000 individuals, of whom more than 12,500 are children. Friends in Service to Humanity provides the following services: rental assistance to avoid =Newport Beach General Plan Housing Element eviction; "mobile meals to the home bound; transitional housing with case management, food; child care subsidies for low- income working parents; utility payments to avoid disconnections; baby diapers and infant formula; "adopt -a- family" program during the holidays; medical, dental, and shopping transportation; and, transportation costs for employment. Human Options. Commumty Resource Center —Human Options provides emergency shelter, food, clothing, counseling, and legal advocacy to battered women and their children. American Red Cross- -The Red Cross assists persons temporarily displaced from their residence due to disasters such as fires. From 1994 to the present, the Red Cross reported helping 55 Newport Beach residents involved in 3 incidents. This agency does not request CDBG funding from the City. Other volunteer groups and local religious organizations serve Newport Beach by providing temporary shelter, bus fares to reach pre - planned destinations, rental assistance, medical assistance, food, and clothes to the homeless and other needy persons/ families. Several motels in the Newport Beach -Costa Mesa area are utilized by various agencies to accommodate homeless persons. These agencies pay all or a portion of the costs. An undetermined number of transients or chronically homeless individuals pass through Newport Beach. Much of this depends on opportunities and conditions presented to these individuals within Newport Beach and the surrounding communities. Housing needs of these individuals include transitional housing in the form of single -room occupancy units (SRO) and emergency and transitional shelters. Name Persons Grou s Served Location Number of Beds American Veterans Assistance Corp. Veterans with families Santa Ana 10 Anaheim Interfaith/Halcyon Families with children Anaheim 34 Shelter Anchor House Families San Clemente 14 Annie's House People afflicted with HIV /AIDS Costa Mesa 10 Armory (Cold Weather Singles; Couples; Families Fullerton; 250 Program) Santa Ana Bethany y ingle, employed women who have successfully completed Orange g 7 a shelter program Beyond Shelter— Transitional shelter for single women; may be dually Fullerton 10 YWCA diagnosed or have substance abuse issues Birch I and II Santa Ana Adult Males (Bitch 1); Youth (ages 18-21) who are working or Santa Ana 11 Facility attending school and moving toward independence (Birch 11) Casa Teresa Single pregnant women, 18 years of age or older with no Orange 28 children; client expected to work or attend school Casa Youth Shelter Ages 12 -17; accepts pregnant teens Los Alamitos 25 Catholic Charities Families Santa Ana 18 Christian Temporary Families Orange 60 Housing CSP Youth Shelter Ages 11 -17 Laguna Beach 6 Newport Beach General Plan Housina Element Name Persons Grou s Served Location Number of Beds McIntosh Center For T For T he Disabled Disabled Individuals/ Families with Disabled Members Anaheim 7 Transitional housing for families or single parents with El Modena children; must be employed and moving toward independent Orange 30-35 living; 70% of income must be saved by family; must be referred by O.C. shelter Transitional housing for women and children (under age 12) Eli Home who are victims of family abuse or domestic violence. Faith Orange N/A based. Episcopal Service Women Orange 10 Alliance, Martha House Families Forward Transitional housing for families or single parents with wine 35 children under 18 years of age; one adult must be employed Friendship Shelter Individuals Laguna Beach 22 Fullerton Interfaith/New Families or Single Parent with Children under the age of 18; Fullerton 27 Vista must have income Gerry House Male/Female intravenous drug users and who may be Santa Ana 12 receiving narcotic replacement therapy Gerry House West Persons who are HIV positive with substance abuse Santa Ana 6 problems Transitional housing for single pregnant women 18 years and Hannah's House older who are considering adoption. No other children. Orange 12 Woman expected to work or attend school. Hearth Dayle McIntosh Disabled men or women with or without children Anaheim 6 Transitional housing to graduates, single men, single women Henderson House of the Friendship Shelter; must have referral from Friendship San Clemente NA Shelter Program Homeless Intervention Transitional living center for families, single men and single Placentia 40 Shelter women, men with children, women with children, couples House of Hope- O.C. Rescue Mission Women & Children Santa Ana 45 Human Options Battered Women, with or without children 40 Emergency 14 Transitional Huntington Youth Ages 11 -17 Huntington ii Shelter Beach Interfaith Interim Single homeless adults willing to work; 120 -day program; Laguna Hills 8 Housing faith based Interval House Battered Women, with or without children; accepts pregnant 49 women Irvine Temporary 10 single - family Housing Families Irvine furnished apartments Kathys House Women, with or without children; faith based Capistrano 11 Beach Laura's House Battered Women, with or without children 25 Laurel House Youth, ages 11 -19 Tustin N/A =Newport Beach General Plan Housing Element Nome Persons/Groups Served Location Number of Beds Mary's Shelter Pregnant teens, ages 17 and under, teen mothers and Santa Ana 18 infants 0-18 months Mercy House/Joseph Transitional housing.4Dr —fnUSt be employed or in job training Santa Ana 12 House full time Mercy House/Regina Transitional housing for Women and Children under 10; must Santa Ana 14 House be employed or in job training full time Missionary Brothers of Families Santa Ana 16 Charity New Vista Shelter Families Fullerton 60 O.C. Rescue Mission Men Santa Ana 90 Orange Coast Interfaith All Costa Mesa 100 Shelter Precious Life Shelter TransitionatrEmergency program for pregnant women 18 Los Alamitos 21 years and older Rescue Mission for Men Santa Ana 40 Men Salvation Army Hospitality All Santa Ana 60 House /Buffalo Street The Sheepfold Women 18 years of age and older with children; Faith Based Tustin 55 Shelter For The Homeless Families, Men, 8 Women Westminster 106 Families, Men and Women SPIN offers 3 different programs: • The GAPP (Guaranteed Apartment Payment Program) offers low- income and homeless families with children with move4n costs to permanent housing. SPIN ■ The SARP ( Substance Abuse rehabilitation Program) Costa Mesa n/a program offers participants move -in costs to a recovery home and counseling. • The Street Services Program involves volunteers preparing and delivering a sack meal, hygiene kits and seasonal clothing to the homeless living on the streets Thomas House Transitional housing for families, women with children, men Garden Grove 76 with children; adults must be willing to worts Thomas House Families Fountain Provides room Temporary Shelter Valley for 7 families Toby's House Adult pregnant women; children under 5 years of age San Clemente 5 families Veterans Charities Single Veterans Santa Ana 54 The Villa Posada Women Santa Ana 6 WISE Hotel for Women Transitional program for single women with no children; must Santa Ana 34 be alcohol free; drug testing may be required Women's Transitional Battered Women Living Center YWCA —Hotel For Women Santa Ana 38 Women SOURCES: Orange County Social Service Resource Directory. Newport Beach Annual Action Plan: 2007:2008 Newport Beach General Plan Housing Element Program Names I Descr( Hon Eligible AcMv(Nes 1a. Federal Programs— FormuWEntldement Community Grants awarded to the City on a formula basis for housing and a Acquisition Development Block community development activities. a Rehabilitation Grant • Home Buyer Assistance e Economic Development e Homeless Assistance ♦ Public Services • ADA Compliance • Public Facilities tb. Federal Programs - Competitive Section 8 Rental assistance payments to owners of private market rate units ♦ Rental Assistance Rental Assistance on behalf of very low-income tenants Program HOME Flexible grant program awarded to the Orange County HOME a Acquisition Consortium on a formula basis for housing activities. City can apply a Rehabilitation to County on a competitive basis for affordable housing projects a Home Buyer Assistance e Rental Assistance Section 202 Grants to non - profit developers of supportive housing for the a Acquisition elderly. • Rehabilitation ♦ New Construction e Rental Assistance Section 811 Grants to nonprofit developers of supportive housing for persons a Acquisition with disabilities, including group homes, independent living a Rehabilitation facilities, and intermediate care facilities. a New Construction e Rental Assistance Section 108 Loan Provides loan guarantee to CDBG entitlement jurisdictions for a Acquisition pursuing large capital improvement or other projects. The a Rehabilitation jurisdictions must pledge future CDGB allocations for repayment of a Home Buyer Assistance the loan. Maximum loan amount can be up to five times the entitlement jurisdiction's most recent annual allocation. Maximum • Economic Development loan term is 20 years. a Homeless Assistance e Public services Mortgage Credit Income tax credits available to first -time homebuyers for the ♦ Home Buyer Assistance Certificate Program purchase of new or existing single - family housing. Local agencies (County) make certificates available. Low Income Housing Tax credits are available to individuals and corporations that Invest a New Construction Tax Credit (LIHTC) in low— income rental housing. Usually, the tax credits are sold to ♦ Rehabilitation corporations with a high tax liability and the proceeds from the sale # Acquisition are used to create the housing r Newport Beach General Plan Housing Element Shelter Plus Care Grants for rental assistance that are offered with support services • Rental Assistance Program to homeless with disabilities. Rental assistance can be: • Homeless Assistance Section 8 Moderate Rehabilitation SLR project based rental assistance administered by the local PHA with state or local government application Sponsor -Based Rental Assistance Emergency Shelter Provides assistance through an applicant to a private non - profit • Support Services Program sponsor who wins or leases dwelling units in which participating California Housing residents reside. ♦ New Construction Finance Agency Tenant -Based Rental Assistance ITBAI ♦ Rehabilitation (CHFA) Grants for rental assistance • Acquisition of Properties Multiple /Rental Proiect -Based Rental Assistance from 20 to 150 units Housing Grants to provide rental assistance through contracts between Programs grant recipients and owners of buildings. Supportive Housing Grants for development of supportive housing and support services ♦ Transitional Housing Program (SHP) to assist homeless persons in the transition from homelessness. ♦ Permanent Housing for Home Mortgage who originate loans for CHFA purchase Disabled Purchase Program • Supportive Services California Housing Low interest loans for the rehabilitation of substandard homes ♦ Safe Havens 2. State Programs Proposition 1 A Proposition 1A includes provisions to establish a Down payment ♦ Down payment Assistance Assistance Program and a Rent Assistance Program using school ♦ Rental Assistance fees collected from affordable housing projects. Potential buyers or tenants of affordable housing projects are eligible to receive nonpayment assistance or rent subsides from the state at amounts equivalent to the school fees paid by the affordable housing developer for that project in question. Emergency Shelter Grants awarded to non -profit organizations for shelter support • Support Services Program services. California Housing Below market rate financing offered to builders and developers of ♦ New Construction Finance Agency multiple - family and elderly rental housing. Tax exempt bonds ♦ Rehabilitation (CHFA) provide below - market mortgage money. • Acquisition of Properties Multiple /Rental from 20 to 150 units Housing Programs California Housing CHFA sells tax - exempt bonds to make below market loans to first • Home Buyer Assistance Finance Agency time homebuyers. Program operates through participating lenders Home Mortgage who originate loans for CHFA purchase Purchase Program California Housing Low interest loans for the rehabilitation of substandard homes • Rehabilitation Rehabilitation owned and occupied by lower- income households. City and non- ♦ Repair Code Violations, Program -Owner profits sponsor housing rehabilitation projects. Accessibility Component (CHRP O) • Additions, General Property Improvement Newport Beach General Plan Housing Element Proarom Names Description EIIgJbta Acfivlfles 3. Loral Programs Tax Exempt Housing The City can support low- income housing developers in obtaining • New Construction Revenue Bond bonds in order to construct affordable housing. The City can issue ♦ Rehabilitation (Fannie Mae) housing revenue bonds or participate in the County of Orange ♦Acquisition program requiring the developer to lease a fixed percentage of the Savings Association units to low- income families and maintain rents at a specified below ♦ New Construction of single Mortgage Company market rate. family and multiple family Building Equity and Grants to cities that adopt measures to encourage affordable • New Construction Growth in housing, to make second mortgage loans to low- and moderate- ♦ Rehabilitation Neighborhoods income homebuyers. and group homes for the (BEGIN) disabled. Infill Incentive Grant Funding of infrastructure to facilitate infill housing development • Funding of water, sewer, Reinvestment term debt financing for affordable mufti- family rental housing. Non- packs and site clean -up for Corporation (CCRC) profit and for profit developer contact member banks new construction Workforce Housing Grants to cities and counties that approve new housing affordable ♦ New Construction Reward Program to low and very low- income households a Acquisition (WFH) component. Households earning up to 80% of MFI quality. Affordable Housing Funding for pilot programs to demonstrate innovative, cost- saving a New Construction Innovation Fund ways to create or preserve affordable housing • Rehabilitation e Acquisition Governor's Homeless Interagency funds for support housing for persons with severe a New Construction Initiative mental illness who are chronically homeless •Support Services Multi- family Housing Loans for rental housing with supportive services for the disabled • New Construction Program - Supportive who are homeless or at risk of homelessness *Support Services Housing Mulfi- family Housing Housing with supportive services for homeless youth ♦ New Construction Program - Homeless •Support Services Youth 4. Private Resource /Financing Programs Federal National Loan applicants apply to participating lenders for the following ♦ Home Buyer Assistance Mortgage Association programs: (Fannie Mae) a Fixed rate mortgages issued by private mortgage insurers. • Mortgages that fund the purchase and rehabilitation of a home. Savings Association Pooling process to fund loans for affordable ownership and rental ♦ New Construction of single Mortgage Company housing projects. Non -profit and for profit developers contact family and multiple family Inc. (SAMCO) member institutions. rentals, cooperatives, self help housing, homeless shelters, and group homes for the disabled. California Community Non - profit mortgage banking consortium designed to provide long- a New Construction Reinvestment term debt financing for affordable mufti- family rental housing. Non- a Rehabilitation Corporation (CCRC) profit and for profit developer contact member banks e Acquisition `Freddie Mac Home Works — Provide 1st and 2nd mortgages that include a Home Buyer Assistance rehabilitation loan. City provides gap financing for rehabilitation combined with Rehabilitation component. Households earning up to 80% of MFI quality. ®Newport Beach General Plan Housinq Element Lease Purchase The City could participate in a Joint Powers Authority (JPA) that ♦ Home Buyer Assistance Program issues tax - exempt bonds. Bonds enable City to purchase homes for households earning up to 140% MFI. JPA pays 3% down and payments equivalent to mortgage payments with the option to buy after three years. Newport Beach In- Funding source from the City's Inclusionary Housing Program. Can New Construction Lieu Fee Funding be used to fund new construction, rehabilitation, acquisition, land ♦ Rehabilitation purchases, gap financing, and help support infrastructure costs. ♦ Acquisition Newport Beach General Plan Housing Element Parcel Lot Area Area I I Owner I OaportunitvVacawt{. I I GP I Potential lumber (sa. ft) (acres) Owner First Last Underutilized Zoning Deslanation Density Units Airport Area: Additive: Housing may be' developed as infill of existing office and commercial uses. 550 dwelling unit total. Replacement: Housing maybe developed only as replacement of existing office and commercial uses. 1750 dwelling unit total. L4E_010 Airport 44512213 31049.89 0.77 4400 Macarthur Additive and /or Replacement PC -15 MU -112 Area Inc -4D 006 Airport 44513108 28000.08 0.64 OCRC Capital Additive and /or Replacement PC -15 MU -H2 Area Corp Airport SM1114590 UE_002 Area 44512209 44674.81 1.03 Macarthur LLC Additive and/or Replacement PC -15 MU -H2 Airport PGP Von L4D_020 445131 23 23065.57 0.53 Karman Additive and /or Replacement PC -15 MU -112 Area Properties L4D_046 Airport 445131 26 47969.52 1A0 Barbara BK Santa Additive and /or Replacement PC -15 MU -1-12 Area L4D_022 Airport 445131 27 3307.36 0.08 Ralph J Dion Additive and/or Replacement PC -15 MU -H2 Area L4E_006 Airport 445 122 11 319192.46 7.33 Macarthur LLC Sunstone Additive and/or Replacement PCA5 MU -112 Area L4D_016 Airport 44513116 12293.62 0.28 Holdings MBC Additive and /or Replacement PC -15 MU -H2 Area L4D_042 Airport 930304 03 82911.96 1.90 Darts Building Additive and /or Replacement PC -15 MU -H2 Area Partners. 1-41D J40 Area t 445161 02 45088.00 1.04 Birch LLC Legacy Additive and /or Replacement PC -15 MU -1-12 Area Airport irport 44512206 34271.85 0.79 Koll I LLC Steadfast Additive and/or Replacement PC -15 MU -112 Area EN:ewport Beach General Plan Housing Element Newport Beach General Plan Lot Residential Parcel Lot Area Area Owner ORportunitYVacaW GP PatenNal TAG Lacallon Number (Sq. N acres Owner FW Last IlnderuNNsed Zoning Designation Den units 1-40_028 Airport Area 445131 15 87709.62 2.01 4000 Macarthur Additive and /or Replacement PC -15 MU-H2 L4E_016 A rt 445122 05 34736.95 0.80 VDV LLC Maker Additive an Replacement PC-15 MU -H2 L4D_030 Are Area 44513126 112263.90 2.58 Barbara BK Santa Additive and/or Replacement PC -15 MU-H2 L4D 018 Airport rt 445131 05 55620.32 1.28 Pres - Lakeside Additive and/or Replacement PC -15 MU-H2 Airport KCN A L4E_004 Area 44512216 749511.68 17.21 Management Additive and/or Replacement PC -15 MU -H2 LLC L4D_014 Ar� rt 445131 11 32138.17 0.74 Ps 140 Von Additive and/or Replacement PC -15 MU -H2 Karmen L4D 004 Airport 445131 09 27864.35 0.64 Von Kansan GRE Additive and /or Replacement PC-15 MU -H2 Area LLC L4D_012 Airport 445 131 10 32200.03 0.74 4350 Von Additive and /or Replacement PC-15 MU -H2 Area Kansan LLC L4D_038 Airport a 44516103 30000.47 0.69 Thomas H Wooldridge Additive and /or Replacement PC-15 MU-H2 L4D_032 Airport 44513103 419928.43 9.64 Semiconductor Rockwell Additive and/or Replacement PC-15 MU -H2 Area L4D_024 Airport 445131 13 25847.14 0.59 4040 Macarthur Additive and /or Replacement PC-15 MU -H2 L4E_014 Airport 44512215 83461.97 1.92 Pacific Club Additive and/or Replacement PC -15 MU -H2 L4D_008 Airport 445131 19 100255.98 2.30 Cornerstone Additive and /or Replacement PC-15 MU -H2 Area Partners IV LLC Semiconductor Rockwell Additive andlor Replacement PC -15 1.0_034 A�a rt 445131 02 670990.33 15.40 MU -H2 L4D_036 A�a rt 44516104 73602.24 1.69 Additive and/or Replacement PC -15 MU -H2 Federal Newport Beach General Plan Housina Element Newport Beach General Plan Lot Residentiai Parcel Lot Area Area Owner ODOOdunitYV'acoW GP Potential TAG Location Number (s q, 0 acres Owner First Last UnderuH7ized Zoning Designation Density Units 1-40310 Airport 445131 18 70306.96 1.61 Cornerstone Additive /or Replacement Millar PC -15 MU -H2 Area IV LLC L4E 008 A 44512212 50882.55 1,17 Macarihur Additive and /or Replacement PG-15 MU -H2 Area rea Inc nc L4D_002 Airport 445131 21 51714.78 1.19 William Lyon Additive and /or Replacement PC -15 MU -H2 Area Homes Inc Airport KCN A L4D 026 Area 445 13104 123430.89 2.83 Management Additive and /or Replacement PC -15 MU -H2 LLC Airport KCN A L4D_044 445131 28 1072341.05 24.62 Management Additive and /or Replacement PC -15 MU -H2 Area LLC L4J024 Airport 42717301 43516.01 1.00 Bank First And Replacement PC -11 MU -H2 _ Area Trust Inc L4J_010 A�a rt 42718108 31169.07 0.72 Gumharan Sandher Replacement PC -11 MU -H2 L4M_016 Airport 427 221 13 43395.04 1.00 1200 Quail St Replacement PC-11 MU -H2 Area LLC L41' 006 Airport 427174 03 41102.29 0.94 J Sanderson Replacement PC -11 MU -H2 Area L4J008 Airport 42718107 48083.83 1,10 Ridgeway of _ Replacement PC-11 MU -H2 _ Area Whitney L4Q_014 Airport 427 342 01 85744.67 1.97 Hilbert Bristol Replacement PC-11 MU -H2 Area Partners 1.4N 002 Airport rt 427 22206 67884.15 1.56 PaMrtCneGenip al Replacement PC-11 MU-H2 L4F 002 Airport 42717404 275267.25 6.32 Newport Hotel Replacement PC-11 MU-H2 Area Holding LLC L4J 018 Airport 42717203 84641.64 1.94 MacArthur Replacement PC-11 MU-H2 Newport Beach General Plan Housina Element Newport Beach General Plan Lot Residential Parcel Lot Area Area Owner O000dunityV --yW GP Potential TAG location Number isq, ffj (acres) Owner First Lost undewtiNsed Zoning Designation Density units Airport Airport Feb Dove LW-004 427 221 09 65828.35 1.51 Street Partners Replacement PC -11 MU -H2 LLC L4J_014 Airport rt 42718109 47164.89 1.08 Timothy J Flathers Replacement PC-11 MU-H2 Airport First States L4J_002 427181 10 34259.76 0.79 Invhs 5000A Replacement PC -11 MU-H2 Area LLC L4F_004 A�a rt 427174 03 65422.05 1.50 J Sanderson Replacement PC-11 MU -H2 L414 004 Area rt 427 222 01 283330.29 6.50 Plaza Replacement PC-11 MU -H2 Redstone Airport Davenport L4M_020 42722115 63958.42 1.47 Quail Partners Replacement PC -11 MU -H2 Area LLC L4M_006 Art 427 22108 64980.14 1.49 Replacement PC-11 MU -H2 As LLC L414 A�a rt 427 222 05 39334.57 0.90 Malaguena Replacement PC-11 MU-H2 _006 1.4J_012 Airport 427181 03 108354.83 2.49 1600 Dove LP Replacement PC-11 MU -H2 L4J_020 Airoart 42717206 74670.83 1.71 MacArthur Replacement PC-11 MU -H2 L4J 006 Airport 427181 13 260394.37 5.98 Place Corp Newport Replacement PC-11 MU -H2 L410 002 Arrea" 42722110 74686.11 1.71 SBDove Replacement PC-11 MU -H2 Partners L41A Airport 42722111 66305.45 1.52 Quail Investors Replacement PC-11 MU-H2 _008 L4M014 Airport 42722106 156398.09 3.59 EOP -Dove Replacement PC-11 MU -H2 _ Area Street LLC Newport Beach General Plan Housina Element Newport Beach General Plan Lot Residential Parcel Lot Area Area Owner ORportuniryVocont{ GP Potential Location Number (sq. 0 acres Owner First Last UnderWitiaeA Zoning Designation Density Units -TAG L4M_026 Airport 427 221 04 156885.42 3.60 TR 1401 Dove Replacement PC -11 MU -H2 Area Corp L4J 022 Airport 427172 02 79931.83 1.83 MacArthur ur Replacement PC -11 MU -H2 r 1.41A 018 Areart 427 221 14 65376.57 1.50 Jay Mahoney Replacement PC -11 MU-H2 Airport Realty L4M_032 Area 427 22101 173990.58 3.99 Associates Replacement PC -11 MU -H2 Fund LP L4M_012 Arreart 427 221 07 76256.03 1.75 Dove Investors Replacement PC -11 MU -H2 L41VI Airport 427 221 12 49971.82 1.15 Holly G Jarvis Replacement PC -11 MU -H2 _010 Airport Metropolitan L4M_024 Area 427 221 17 281339.12 6.46 Life Insurance Replacement PGA 1 MU -H2 Co L4J_016 Airport 42716101 63011.78 1.45 Pacific Plaza Replacement PC -11 MU -H2 Area Associates 1.4J 026 Airport 42717205 8542.16 0.20 MacArthur Replacement PG11 MU -H2 Iii L4Q012 Airport 427 342 02 161162.63 3.70 Fletcher Jones Replacement PG11 MU -H2 Area Jr Family L48_028 Airport 44514107 19667.55 0.45 Hit Properties Replacement PC -15 MU -H2 Area LLC L4C_014 Are oa rt 44515105 61337.18 1.41 Jones & Gerry Replacement PC -15 MU-H2 L4C_008 Airport 445151 04 9880.00 0.23 5120 Campus Replacement PC-15 MU -H2 Area Partners VC_010 Airport 44515107 7800.03 0.18 Environmental Replacement PC-15 MU -H2 Area Developers L413008 A�ort 445141 11 12800.40 0.29 Beachwood Replacement Replacement PC -15 MU -H2 Newport Beach General Plan Housina Element Newport Beach General Plan Lot Residential Parcel Lot Area Area Owner paoortunifvVaaanO GP Potential TAG Location Number s .ft acres Owner First Last Underutilized Zonino Designation Density Units 1-48316 Airport 44514105 22477.38 0.52 Saywitz Props Barry Replacement PC -15 MU -H2 Area TWO Airport William & L4B_056 Area 44514101 11943.89 0.27 Catherine Shattuck Replacement PC-15 MU -H2 Macleod; 1-48_018 Area 44514104 11346.40 0.26 Exchange Replacement PC-15 MU -H2 lnc L48_048 Airport rt 445141 31 17641.23 0.40 Lebata Inc Replacement PC -15 MU -H2 L413 038 Airport 445141 27 219967.64 5.05 KCN Ltd Edition Replacement PC-15 MU -H2 Area Owners L4C_004 Airport 44515102 6968.01 0.16 Apevex La Replacement PC-15 MU-H2 Investments Inc 1-48 014 Airport 445141 15 133756.58 3.07 KCN Ltd Edition Replacement PC-15 MU H2 Area Owners 1-4B 030 Airport 44514108 17407.32 0.40 B ach woo Replacement PC-15 MU -H2 s LLC 1,411_012 Airport 44514109 13472.54 0.31 Beachwood Replacement PG-15 MU -H2 Area Partners LLC UB_006 Airport 44514112 20869.99 0.48 Housing I LLC Lyon Replacement PC-15 MU-H2 Area 1.4B 024 Airport 44514103 14012.71 0.32 Limited Edition Replacement PC -15 MU -H2 Area Pints L4B_046 Airport 44514126 13234.98 0.30 Commercial Newport Replacement PC -15 MU-112 Area LLC L48_004 Airport 44514113 12624.65 0.29 Beachwood Replacement PC -15 MU -H2 Area Partners LLC L48_050 Airport 44514128 19898.74 0.46 Saywitz Props Barry Replacement PC -15 MU -H2 Area Two L48_034 Apart 44514121 18676.26 0.43 Eagles LLC Screaming Replacement PC -15 MU -H2 Newport Beach General Plan Housinq Element MNewport Beach General Plan Lot Residential Parcel Lot: Area Area Owner Oaaodunil`XV4 tF GP Potential TAG Location: Number s . it acres Owner First Lost Underutilized Zoning Desi -nation Density Units L4B_032 Airport 446 141 i6 18195.02 0.42 Newport Park Replacement PC -15 MU -H2 Area Center LLC L4B_054 Airport 44514130 17250.99 0.40 Yosemite Replacement PC -15 MU -H2 Area L48_020 Airport 445 141 O6 13799.96 0.32 Beachwood Replacement PC -15 MU -H2 Area Partners LLC L4C_012 Airport 445151 05 7799.96 0.18 Junior League Replacement PC -15 MU -H2 Area Of Orange L4C_018 44515108' 18268.55 0.42 LLC Replacement PC -15 MU -H2 Area Newport L4B_036 Airport 445141 22 12471.48 0.29 5000 Campus Replacement PC -15 MU -H2 Area L4B_044 Airport 445141 25 13800.00 0.32 Coml Brokers Diversified Replacement PC -15 MU -H2 Area LLC L4B_010 Airport 44514110 22645.06 0.52 Lamfieau Replacement PC -15 MU -H2 Area Properties LLC L4B_052 Airport 44514129 15594.05 0.36 Beachwood Replacement PC -15 MU -H2 Area Partners L4B_022 Airport 445141 02 19029.62 0.44 Beachwood Replacement PC -15 MU -H2 Area partners LLC L4C_016 rt 44515109 58641.00 1.35 LLC WPI- Replacement PC -15 MU -H2 Area L4B_040 Airport 44514123 18540.00 0.43 Beachwood Replacement PC -15 MU -H2 Area Partners 006 Airport 445 159 03 9481.28 0.22 Jones of Bottjer Replacement PC -15 MU -H2 _4C Area Trust 002 Airport 445141 14 108311.95 Kcn Ltd Edition Replacement PC -15 MU -H2 _4B Area Owners L48_042 Airport 44514124 17240.00 E241 Beachwood Replacement PC -15 MU -H2 Area Partners Total Airport Area 2;220 MNewport Beach General Plan Housina Element Newport Beach General Plan Lot Residential Parcel Lot Area Area Owner O000dunifvVeeenlF GP Potential TAG Location Number (sq. B) (acres) Owner Pint Last Und- RIMiied Zoning Designation Density units Lido Marina Village: Existing Land Uses may be replaced by residential or mixed -use development in accordance with the General Plan. Lido B &Po of f Elks Elks 85A_044 Marina 423123 02 9849.46 0.23 Commercial GEIF MU -W2 26.7 6.0 Lodge Village Lido Marvin B5A_030 Marina 423123 09 14155.93 0.32 Engineering Co Commercial RSC MU -W2 26.7 8.7 Village Inc Lido Dennis & B5A_060 Marina 42312210 3091.41 0.07 Overstreet Commercial RSC MU -W2 26.7 1.9 Christine Village Lido 135A042 Marina 423123 03 12088.82 0.28 Theila L Smith Commercial RSC MU -W2 26.7 7.4 Village RSC 65A_068 Lido Marina 42312206 3000.00 0.07 Fourth Quarter Commercial MU -W2 26.7 1.8 Props 92 LLC Village B5A_056 Lido Marina 423122 01 15978.96 0.37 Fourth Quarter Commercial RSC MU -W2 26.7 9.8 Props 92 LLC Village Lido WREC Lido B5A_054 Marina 423122 03 6550.17 0.15 Commercial RSC MU -W2 26.7 4.0 Venture LLC Village Lido WREC Lido B5A_040 Marina 42312304 10366.10 0.24 Commercial RSC MU -W2 26.7 6.4 Venture LLC Village Lido 135A_066 Marina 42312207 3000.00 0.07 Douglas Dreyer Commercial RSC MU -W2 26.7 1.8 Village B5A_052 Lido Marina 42312103 3192.37 0.07 City of Newport Commercial RSC MU -W2 26.7 2.0 Beach Village Newport Beach General Plan Housing Element Newport Beach General Plan Lot Residential Parcel Lot Area Area owner O000rtunitvVocaatf GP Potential TAG Location Number s .R acres Owner First Last Undemlilired Zoning Designation Density units 65A_070 Lido Marina 423122 05 4500.00 0.10 Fourth Quarter art art er Commercial RSC MU -W2 26.7 2.8 Props 92 LLC Village Lido Marvin 65A_048 Marina 423121 05 13138.00 0.30 Engineering Co Commercial RSC MU -W2 26.7 8.1 Village Inc Lido Marvin BSA_050 Marina 42312106 3281.59 0.08 Engineering Co Commercial RSC MU-W2 26.7 2.0 Village Inc Lido WREC Lido BEA_078 Marina 423122 03 3080.07 0.07 Commercial RSC MU -012 26.7 1.9 Venture LLC Village Lido Prato Paul H B5,4072 Marina 42312204 1500.00 0.03 Commercial RSC MU -W2 26.7 0.9 1999 Trust Village Lido 135A 064 Marina 42312208 3000.00 0.07 Jonathan Birer Commercial RSC MU -W2 26.7 1.8 Village B5,4038 Lido Marina 423123 05 5399.93 0.12 WREC Lido Commercial RSC MU -012 26.7 3.3 Venture LLC Village Lido B5A_062 Marina 423122 09 3004.38 0.07 A Square LLC Commercial RSC MU -W2 26.7 1.8 Village Lido Pacific Coast BSA 032 Marina 423123 07 25648.77 0.59 Investment Commercial RSC MU -W2 26.7 15.7 Village Trust Lido Marvin B5A_058 Marina 42312202 42399.12 0.97 Engineering Co Commercial RSC MU -W2 26.7 26.0 Village Inc Lido Marvin 85A_036 Marina 423123 06 5399.94 0.12 Engineering Co Commercial RSC MU -012 26.7 3.3 Village Inc Newport Beach General Plan Housina Element Newport Center Residential development in accordance with the North Newport Center Planned Community and the General Plan. 450 dwelling unit total. L1 N_050 Newport 442 01141 185920.25 Lot HnMH Properties Residential PC -54 RM 79.0 Parcel Lot Area Area Owner Oncortund Vacontl GP Potential TAG Location Number (Sq. M acres Owner First Last UnGlen 1#11iaed Zoning Designation Density UnRs — Lido Fourth Quarter B5A_016 Marina 423112 03 34871.58 0.80 Co Irvine Office RSC RM 20 16.0 Village Properties UD_010 Lido 442101 18 312617.43 7.18 Cc Irvine Office APF MU-H3 85A_012 Marina 423112 01 8106.03 0.19 Allan Feinberg Office RSC RM 20 3.7 Village Newport 442101 13 120510.10 2.77 Co Irvine Office APF MU-H3 Part of 450 Lido Center 85A_012 Marina 423112 01 8106.03 0.19 Allan Feinberg Office RSC RM 20 3.7 Part of 450 Village Total Lido Manna Village 165 units Newport Center Residential development in accordance with the North Newport Center Planned Community and the General Plan. 450 dwelling unit total. L1 N_050 Newport 442 01141 185920.25 4.27 HnMH Properties Commercial PC -54 RM 79.0 1.1 D 008 Newport 442101 19 227012.71 5.21 Irvine Co of W Office APF MU-H3 Part of 450 — Center Va L1 D_022 Newport 442101 09 71317.06 1.64 Co Irvine Office APF MU-H3 Part of 450 UD_010 Newport 442101 18 312617.43 7.18 Cc Irvine Office APF MU-H3 Part of 450 Center LID Newport 442101 13 120510.10 2.77 Co Irvine Office APF MU-H3 Part of 450 _018 Center 1.11_006 Newport 442101 22 44159.31 1.01 Vane Cc of W Office APF MU-H3 Part of 450 L1D_004 Newport 44210120 23138.29 0.53 Vane Co of W Office APF MU -H3 Part of 450 LID 020 Newport 442101 23 43801.06 1.01 Irvine Co of W Office APF MU -H3 Part of 450 — Center Va LIE) Nenerrt 442101 16 15919.46 0.37 Co Irvine Office APF MU -H3 Part of 450 _014 Newport Beach General Plan Housinq Element West Newport Mesa: Exisfina Land Uses may be replaced by residential or moved -use development in accordance with the General Plan. West A2C_012 Newport- 424 401 06 496 Mesa 42.46 F1,14 LTD Lot M-1 -A RM Residential 19.14 PAYNE Parcel Lot Area Area Owner OaoodunifyVae -W GP Potential TAG Location Number Isq, R acres Owner First Last Underutilized Zoninar Designation Density Units L1D_002 Newport 442101 21 171658.05 3.94 Irvine Cc of W Office APF MU -H3 Part of 450 Center Va L1A_008 Newport 442 261 19 177195.99 4.07 Irvine Company Office PC -19 MU -1-13 Part of 450 Center LIA_002 Newport 44226116 795204.35 18.26 Cc Irvine Office PC-19 MU -H3 Part of 450 Center LIE Cen 442 081 03 29325.12 0.67 LLC Office PC -46 MU -1-13 Part of 450 _014 Center Newport Lt E_018 Newport 442 08107 654751.36 15.03 Irvine Co of W Office PC-46 MU -H3 Part of 450 Center Va Newport Fashion Island L1 E_012 442 081 09 20578.21 0.47 Really Ents Office PC-46 MU -H3 Part of 450 LLC L1 E_004 Newport 442 08105 32560.47 0.75 Ron E Presta Office PC-46 MU-H3 Part of 450 L1 E_016 Newport 442 081 02 29100 .50 0.67 Knott Avenue Office PC-46 MU-1-113 Part of 450 Center Property Inc 1.1E_006 Newport 44208111 39223.36 0.90 1601 Avocado Office PC-46 MU-H3 Part of 450 Center LLC Newport Newport LIE — D08 Center 442 081 12 33268.00 0.76 Diagnostic Office PC-46 MU-F13 Part of 450 Center UN 010 Newport 442 011 62 148800.55 3.42 Mesa Shopping Tennis Club PC-47 MU H31PR Part of 450 (30 dwelling UN_016 Cenrterrt 442 011 62 155163.15 3.56 Mesa Shopping Tennis Club PC -47 MU-H3/PR units) Total Newport Center 450 units West Newport Mesa: Exisfina Land Uses may be replaced by residential or moved -use development in accordance with the General Plan. West A2C_012 Newport- 424 401 06 496 Mesa 42.46 F1,14 LTD Office M-1 -A RM 18 19.14 PAYNE Newport Beach General Plan Housing Element Corona Del Mar 459123 04 'tor 0.08 Auto Spa of Corona Del Vacant Parking Lot RSC xestaennar ... 1.9 F9C046 Corona 459123 05 11694.23 'P4rcef'. for Area Area Vacant Parking Lot Owner `- Ooao6mYvaepnff GP; _ Potential STAG tocafion Nvmb s .8 .[dere Owner Plar ." twr UndewHNzed' :'. T i" Des otion 'Dens,. ... Onih 424 041 04 West 10.81 Petroleum Corp Armstrong NEWPORT PC -25 Office 1375.0 Ranch A2C 008 Newport- 42440108 33293.81 0.76 M -1 -A RM 18 13.68 LLC ACCRED Mesa West GROWTH Office A2C_010 Newport- 424 401 07 23337.59 0.54 M-1 -A RM 18 9.72 CAPITAL INC Mesa West Office A2C_006 Newport- 42440109 53900.79 1.24 JANET MOORE M -1 -A RM 18 22.32 Mesa West MONROVIA RvlBoat Storage A2C 004 Newport- 42440110 44037.63 1.01 M -1 -A RM 18 18.18 Mesa AVENUE LLC West KENNETH office A2C_002 Newport- 42440111 97276.16 2.23 M KAPLAN M-1 -A RM 18 40.14 Mesa Total West Newport Mesa Approximately 100 units Vacant Land F9C 044 Corona Del Mar 459123 04 3648.87 0.08 Auto Spa of Corona Del Vacant Parking Lot RSC RM 1.9 F9C046 Corona 459123 05 11694.23 0.27 Auto Spa of Vacant Parking Lot RSC RM 6.2 _ Del Mar Corona Del A1A_030 Banning 424 041 04 470709.38 10.81 Petroleum Corp Armstrong Banning Ranch PC -25 OS(RV) 1375.0 Ranch Newport Beach General Plan El HOUSING ELEMENT UPDATE Busing Element Update i08 -2014 City Council Hearing August 12, 2008 HOUSING ELEMENT UPDATE What is the Housing Element? Statewide housing goal: "Decent housing and a suitabl( living environment for every Californian" State mandated element of the General Plan Sets a 7 -year strategy for addressing housing needs for all income groups Policy- oriented document, NOT detailed program implementation Unique requirement: State certification HOUSING ELEMENT UPDATE State HCD Review of Element Detailed Statutory Requirements HCD Review of Housing Element Locality must address any deficiencies identified by HCD JA r91 HOUSING ELEMENT UPDATE Benefits of a State - Certified Housing Element Legally adequate General Plan - Presumption of validity in event of lawsuit - Priority for State funds (infrastructure /housing) HOUSING ELEMENT UPDATE Process ree housing community workshops —March and ne 2008 Vic review of Draft Housing Element —June /July 2008 Planning Commission and City Council Hearings — June 18 and August 12, 2008 Submittal of Housing Element to HCD— August 2008 HCD Review -60 to 90 days Planning Commission and City Council Hearings for adoption —late Fall 2008 Submittal of Adopted Housing Element to HCD - late 2008 HOUSING ELEMENT UPDATE Comments on the Draft Housing Element Comments were made by the public and various agencies at three community workshops, during the public comment period and Planning Commission hearing Comments have resulted in revisions to the Draft Housing Element. For example: expanded discussion on homelessness, clarification of Table H40 and historical effectiveness of inclusionary housing policies Detailed responses to some comments have been prepared and are included as Attachment 5. I� HOUSING ELEMENT UPDATE 2006 -2014 and 1998 -2005 RH NA Income Group (defined as % of lip County Very Low ( <50% MFI) Low (51 -80% MFI) Moderate (81 -120% MFI) Upper Income ( >1' Total 2008 -2014 �, ,., A 1998 -2005 RHNA 53 IN 254 475 1998 -2005 QWKIA WaxAmnrt MFI: Median Family Income, Orange County: $84,100: 4- Person Household HOUSING ELEMENT UPDATE Potential Development Areas %sport Area. 2,200 units Newport Center: 450 units West Newport Mesa: 100 units ( approx.) 0 Balboa Peninsula: 500 -700 units (approx.) Mariners' Mile: 300 units ( approx.) Corona del Mar: 8 units i+ Total 31557 - 31758 HOUSING ELEMENT UPDATE Historical Housing Accomplishments Since 1984, 17% of homes approved under City regulation were affordable Since 1997, the City has collected $3 million in in -lieu fees From 1998 -2005, 19% of all homes approved under City regulation were affordable Adopted General Plan (2006) provides increased opportunities for infill housing and mixed use in key areas (Airport Area, Newport Center, Balboa Peninsula, West Newport Mesa) HOUSING ELEMENT UPDATE Key Housing Programs Inclusionary Housing Policy In -lieu Housing Fund Revise Density Bonus Ordinance to be consistent with State law Expedited project review, development permits and waiver of fees for affordable housing Update Zoning Ordinance to be consistent with SB 2 homeless shelter requirements HOUSING ELEMENT UPDATE Housing Element I PP 2008 -2014 City Council Hearing 0 August 12, 2008 HOUSING ELEMENT UPDATE Airport Area New housing opportunities (2,220) Mixture of residential, office, & commercial uses Allows housing outside of high noise impact areas Residential units be developed at a max. density of 50 du /acre and min. of 30 du/ acre HOUSING ELEMENT UPDATE I '"" I'I !! ' I 'III "'KK Newport Beach Airport Business Area Development s villages, parks, Airport Area --- -- __ _ -_.J.. J_.._.__... -- '- & assure land use compatibility HOUSING ELEMENT UPDATE Newport Center /Fashion Island Mixed -use area Allows construction of additional 450 units North Newport Center AHIP: requires construction of 14 new affordable units and /or affordability covenants on 29 -86 existing units HOUSING ELEMENT UPDATE West Newport Mesa . 1w housing opportunities Enhances vitality with medical offices, housing, supporting retail & services, & mixed use C 15 N � O HOUSING ELEMENT UPDATE Balboa Peninsula Supports marine - related & visitor - serving uses Allows additional housing to enhance vitality (400 -600) HOUSING ELEMENT UPDATE Mariners' Mile New housing opportunities (up to 300) Provides for a mixed -use village at the base of the bluffs Allows limited housing along the Harbor front, with visual pedestrian access WWI WWI PUBLIC HEARING NOTICE CITY OF NEWPORT BEACH CITY COUNCIL HOUSING ELEMENT UPDATE PA2008 -078 The City of Newport Beach invites all interested persons to attend a public hearing regarding the 2008 Housing Element Update. State law requires that local jurisdictions update the Housing Element of the General Plan in accordance with identified planning periods. The current update will cover the 2008 -2014 period. The Housing Element contains goals, polices and programs related to the development, maintenance and improvement of the city's housing stock. Additionally it includes identification of the adopted Regional Housing Needs Assessment (RHNA), housing opportunities and constraints with particular attention given to providing housing for people at all income levels. August 12, 2008 7:00 PM Newport Beach City Council Chambers 3300 Newport Boulevard Newport Beach, CA 92663 For more information, please contact Gregg Ramirez, Senior Planner at (949) 644 -3219 or gramirezOcity .newport- beach.ca.us. dalje�� M, du&, LaVonne M. Harkless, City Clerk City of Newport Beach Jam and Smudge Free Printing www.averycom AVERY® 5160® Use Avery® TEMPLATE 51600 1- 800 -GO -AVERY Allison Kunz Olson The Olson Company 3020 Old Ranch Parkway, Suite 400 Seal Beach, CA 90740 Ashley Wright So. Cal Housing Development Corp 9065 Haven Ave., Ste 100 Rancho Cucamonga, CA 91730 Alix Wisner Laing Urban 10950 Washington Blvd, Suite 200 Culver City, CA 90232 Bill O'Connell Colettes Children 17301 Beach Blvd., Suite 24 Huntington Beach, CA 92647 Anne Brousard Barry A. Cottle C & C Development Co., LLC 1110 E. Chapman Avenue, Suite 220 Orange, CA 92866 Bryan Starr Carol Mentor McDermott Orange County Chapter BIA Carol McLaughlin Government Solutions Inc. 17744 Sky Park Circle, Suite 170 230 Newport Center Drive, Suite 210 Irvine, CA 92614 Newport Beach, CA 92660 Cesar Covarrubias Bart G. Hess Barry Saywitz Orange County Affordable Home Ben Anderson 4740 Von Karman Avenue, #100 Ownership Alliance 17780 Fitch Street, #120 Newport Beach, CA 92660 2 Park Plaza, Suite 100 Irvine, CA 92614 Dan Miller Irvine, CA 92614 Eric Welton Beverly Schuberth Brian J. Flomes Brad Kuish Kennedy Commission Vintage Senior Housing, LLC PO Box 762 17701 Cowan Ave., Suite 200 359 San Miguel Drive, Suite 300 Corona del Mar, CA 92625 Irvine, CA 92614 Newport Beach, CA 92660 George L. Basye Bryan Starr Carol Mentor McDermott Orange County Chapter BIA Carol McLaughlin Government Solutions Inc. 17744 Sky Park Circle, Suite 170 230 Newport Center Drive, Suite 210 Irvine, CA 92614 Newport Beach, CA 92660 Cesar Covarrubias Chris Yelich Kennedy Commission Brooks Street Crystal Sims 17701 Cowan Ave., Suite 200 1300 Quail, Suite 100 Irvine, CA 92614 Newport Beach, CA 92660 Dan Miller Eric Welton The Irvine Company Deloris Matthews 2855 E Coast Hwy, #200 550 Newport Center Drive Corona del Mar, CA 92625 Newport Beach, CA 92660 Christine Iger Ezequiel Gutierrez Jr. George L. Basye Iger & Associates Public Law Center Aera Energy LLC 2102 Business Center Drive, Suite 142 601 Civic Center Drive West 3030 Saturn Street, Suite 101 Irvine, CA 92612 Santa Ana, CA 92701 Brea, CA 92821 Graham Espley -Jones Greg Olafson Western Community Housing, Inc 2435 E Coast Hwy, Suite 2 Steadfast Companies 151 Klamus Drive, Suite J -5 Corona del Mar, y, Suite 2 20411 S.W. Birch Street, Suite 200 Costa Mesa, CA 92626 Newport Beach, CA 92660 Gregg Ramirez Harriet Bemus Helen Cameron m09L5 OAMMA1e/ l l AN3Atl 09 008 L �.� ®09L5 nnimp i el zesll!Nl .Sun +•L.n. n•...... OMIICI JRPIRRC P tL OBpllpf1f1B11P unKCalAIOI Jam and Smudge Free Printing www.avery.com ty�t AVERY® 51601D Use Avery® TEMPLATE 51600 1- 800 -GO -AVERY VV JB Collins 2025 W Balboa Blvd., #2A Newport Beach, CA 92663 Jake Cisneros Conexant Systems, Inc. 4000 MacArthur Blvd Newport Beach, CA 92660 John Adams John S. Adams & Asociates 5100 Birch Street Newport Beach, CA 92660 John E. Young World Premier Investments 3 Imperial Promenade, Suite 550 South Coast Metro, CA 92707 Katherine Palumbo Brookfield Homes 151 Kalmus Drive, Suite L -3 Costa Mesa, CA 9626 Kathy Marvick LE Plastrier Development Consulting 19800 MacArthur Blvd., Suite 1150 h-vine, CA 92612 Lawrence Herman Jamboree Housing Corporation 2081 Business Center Drive, Suite 216 Irvine, CA 92612 Marianne Moy 1560 Ventura Blvd., 7th Floor Encino, CA 91436 Mark Whitehead 161 Fashion Lane, #110 Tustin, CA 92780 Mike Mohler Brooks Street 1300 Quail, Suite 100 Newport Beach, CA 92660 Jack Datt 109 30th Street Newport Beach, CA 92663 Jessie Barkley PBS &J 12301 Wilshire Blvd, Suite 430 Los Angeles, CA 90025 John O'Bri en Brookfield Homes 3090 Bristol Street, Suite 200 Costa Mesa, Ca 92626 Jack Herron 161 Fashion Lane, #110 Tustin, CA 92780 JoAnn Ulvan Bridges America Foundation, Inc. 18837 Brookhurst St., Suite 303 Fountain Valley, CA 92708 John Seymour III So. Cal Housing Development Corp 9065 Haven Ave., Ste 100 Rancho Cucamonga, CA 91730 Joshua Haskins Joseph Boyle Iger & Associates 2102 Business Center Drive, Suite 142 Irvine, CA 92612 Kathleen M. Crum CAA Planning 85 Argonaut, Suite 220 Aliso Viejo, CA 92656 Kevin Russell Affordable Housing Partners 2424 S.E. Bristol Street, Suite 330 Newport Beach, CA 92660 Laura Archuleta Jamboree Housing Corporation 2081 Business Center Drive, Suite 216 Irvine, CA 92612 Miguel Hargrove 702 Randolph Avenue, Suite A Costa Mesa, CA 92626 Pamela Sapetto Sapetto Government Solutions Inc. 2 Park Plaza, Suite 1220 h-vine, CA 92614 Kathy & Mike Lewis Kevin Weeda 429 W 30th St Newport Beach, CA 92663 Margie Wakeham Families Forward 9221 Irvine Blvd Irvine, CA 92618 Mark Lee 2435 E Coast Hwy, Suite 2 Corona del Mar, CA 92625 Mike Kaser PO Box 10637 Newport Beach, CA 92658 Patricia Mickey LE Plastrier Development Consulting 19800 MacArthur Blvd., Suite 1150 h-vine, CA 92612 AV3AV-09.008*.L ®WLS 3!jege6 at zestlpn MOMS (MAHgAb 1001 n.n�d.nwn'ww Mww __ -- an�do �rwu�x n u Ro nnnnnnn nnrcca�dnn lam and Smudge Free Printing www.avery com 1 gyp, AVERY® 51600 Use Avery® TEMPLATE 5160® �� 1.800 -GO -AVERY V Patricia C. Whitaker Orange Housing Development Corporation 414 E. Chapman Avenue Orange, CA 92866 Paul F. Fruchbom KDF Holdings, L.L.C. 4685 MacArthur Court, Suite 422 Newport Beach, CA 92660 Phillip Bettencourt Renato Trotta Bettencourt & Associates 110 Newport Center Drive, Suite 150 Newport Beach, CA 92660 -6907 Roman Danner Howrey LLP 4 Park Plaza, Suite 1700 Irvine, CA 92614 Scott Darrell Kennedy Commission 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Steve Castles Shea Homes 655 Brea Canyon Road Walnut, CA 91789 Thomas Peterson Tricia Harrigan LINC Housing 110 Pine Avenue, Suite 500 Long Beach, CA 90802 Russ Fluter 2025 W Balboa Blvd Newport Beach, CA 92663 Scott Gavner Western Community Housing, Inc 151 Kalmus Drive, Suite I -5 Costa Mesa, CA 92626 Steve Schapel ETCO Homes 2222 Newport Blvd, 2nd Floor Newport Beach, CA 92663 Timothy O'Connell Century Housing 1000 Corporate Pointe, Suite 200 Culver City, CA 90230 William A. Witte The Related Companies of California 18201 Von Karman Avenue, Suite 400 Irvine, CA 92612 Habitat for Humanity of Orange County 2200 S. Richey Street Santa Ana, CA 92705 Paula Burner -Lund HCD - Orange County Housing Authority 1770 N. Broadway Santa Ana, CA 92706 Richard E. Lamprecht The Irvine Company 110 Innovation Drive Irvine, CA 92617 Sam Veltri Sun Cal Companies - South Coastal Division 2392 Morse Avenue Irvine, CA 92614 Scott Mather Steve Zotovich 1900 Main St, #350 Irvine, CA 92614 Todd Schooler 301 E 17th St Costa Mesa, CA 92627 Meta Housing 1640 S. Sepulveda Blvd., Suite 425 Los Angeles, CA 90025 Nicholson Construction 1421 N Wanda Rd, #160 Orange, CA 92867 PUBLIC HEARING NOTICE CITY OF NEWPORT BEACH CITY COUNCIL HOUSING ELEMENT UPDATE - PA2008 -078 The City of Newport Beach invites all interested persons to attend a public hearing regarding the 2008 Housing Element Update. State law requires that local jurisdictions update the Housing Element of the General Plan in accordance with identified planning periods. The current update will cover the 2008 -2014 period. The Housing Element contains goals, polices and programs related to the development, maintenance and improvement of the city's housing stock. Additionally it includes identification of the adopted Regional Housing Needs Assessment (RHNA), housing opportunities and constraints with particular attention given to providing housing for people at all income levels. August 12, 2008 7:00 PM Newport Beach City Council Chambers 3300 Newport Boulevard Newport Beach, CA 92663 For more information, please contact Gregg Ramirez, Senior Planner at (949) 644 -3219 or gram irez(&citv.newoort- beach.ca.us. GILL -� M, LaVonne M. Harkless, City Clerk City of Newport Beach PUBLIC HEARING NOTICE CITY OF NEWPORT BEACH CITY COUNCIL HOUSING ELEMENT UPDATE - PA2008 -078 The City of Newport Beach invites all interested persons to attend a public hearing regarding the 2008 Housing Element Update. State law requires that local jurisdictions update the Housing Element of the General Plan in accordance with identified planning periods. The current update will cover the 2008 -2014 period. The Housing Element contains goals, polices and programs related to the development, maintenance and improvement of the citys housing stock. Additionally it includes identification of the adopted Regional Housing Needs Assessment (RHNA), housing opportunities and constraints with particular attention given to providing housing for people at all income levels. August 12, 2008 7:00 PM Newport Beach City Council Chambers 3300 Newport Boulevard Newport Beach, CA 92663 For more information, please contact Gregg Ramirez, Senior Planner at (949) 644 -3219 or gramirezacitv.newoort- beach.ca.us. LaVonne M. Harkless, City Clerk City of Newport Beach Authorized to Publish Advertisements of all kinds including public notic Decree of the Superior Court of Orange County. California. Number .A -( September 29. 1961, and A -24831 June 11. 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and resident of the County aforesaid; I an over the age of eighteen years, and not i party to or interested in the below entitle) matter. I am a principal clerk of thl NEWPORT BEACH - COSTA MESJ DAILY PILOT, a newspaper of generz circulation, printed and published in th1 City of Costa Mesa, County of Orange State of California, and that attache( Notice is a true and complete copy a: was printed and published on th1 following dates: August 2, 2008 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on August 4, 2008 at Costa Mesa, California. i /Ca'I�c /(/Y1 e ii1/,f�JVYi Sig ure EWE PUBLIC HEARING NOTICE , CITY OF NEWPORT BEACH CITY COUNCIL HOUSING ELEMENT UPDATE ecroaa`r PA2008 -078 The City of Newport Beach invites all interested persons to attend a public hearing regarding the 2008 Housing Element Update. State law requires that local jurisdictions update the Housing Element of the General Plan in accordance with identified planning periods. The current update will cover the 2008 -2014 period. The Housing Element contains goals, polices and programs elated to the development, maintenance and improvement of the pity's housing stock. Additionally it includes identification of the adopted Regional Housing Needs Assessment (RHNA), housing opportunities and constraints with particular attention given to providing housing for people at all income levels. August 12, 2008 7:00 PM Newport Beach City Council Chambers 3300 Newport Boulevard Newport Beach, CA 92663 =or more information, please contact Gregg Ramirez, Senior planner at (949) 644 -3219 or gram irez @city.newport- beach.ca.us. LaVonne M. Harkless, City Clerk City of Newport Beach PUBLIC HEARING NOTICE CITY OF NEWPORT BEACH CITY COUNCIL HOUSING ELEMENT UPDATE - PA2008 -078 The City of Newport Beach invites all interested persons to attend a public hearing regarding the 2008 Housing Element Update. State law requires that local jurisdictions update the Housing Element of the General Plan in accordance with identified planning periods. The current update will cover the 2008 -2014 period. The Housing Element contains goals, polices and programs related to the development, maintenance and improvement of the city's housing stock. Additionally it includes identification of the adopted Regional Housing Needs Assessment (RHNA), housing opportunities and constraints with particular attention given to providing housing for people at all income levels. August 12, 2008 7:00 PM Newport Beach City Council Chambers 3300 Newport Boulevard Newport Beach, CA 92663 For more information, please contact Gregg Ramirez, Senior Planner at (949) 644 -3219 or gram irez(a)city.newport- beach.ca. us. �Laf%nne M. Harkless, City Clerk City of Newport Beach °RECEI ED AFTER AGENDA Brown, Leilani PRINTED." 161 From: Harkless, LaVonne Sent: Monday, August 11, 2008 2:04 PM To: Brown, Leilani Subject: Fw: Message to all Council Members Attachments: image001.jpg; Initial comments HE 061808.doc image001.jpg (3 Initial comments HE KB) 061808.doc... This is for Tuesday night. Sent from Blackberry - - -- Original Message - - - -- From: Kennedy Commission < beverlys @ ken nedycommission.org> To: Harkless, LaVonne Cc: Henn, Michael; Webb, Don (City Council); Rosansky, Steven; Daigle, Leslie; Selich, Edward; Curry, Keith; Gardner, Nancy; ccreswell @hcd.ca.gov <ccreswell @hcd.ca.gov >; Ramirez, Gregg Sent: Mon Aug 11 14:00:31 2008 Subject: Message to all Council Members Honorable Mayor and Councilmembers and Ms. Harkness: On June 18, 2008, the Kennedy Commission submitted the attached letter, commenting on the 2008 -2014 Draft Housing Element, to the Newport Beach Planning Commission. Although staff responses to our comments are included in the staff report to the City Council dated August 12, 2008, changes have not been made in the Draft Housing Element that reflect our comments. Therefore, we would like to submit the same letter to the City Council for this meeting. Sincerely, Beverly Schuberth The Kennedy Commission Working for systemic change resulting in the production of housing for Orange County's extremely low income households 17701 Cowan Avenue, Suite 200 Irvine, CA 92614 949 250 0909 www kennedvcommission om 17701 Cowan Avenue. Suite 200 Irvine, CA 92614 949 250 0909 June 18, 2008 Mr. Robert Hawkins, Chairman Planning Commission City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 -8915 Dear Chairman Hawkins and Planning Commission Members: RE: Draft Housing Element, May 2008 Thank you for the opportunity to review and comment on the City of Newport Beach Draft Housing Element. We have reviewed the draft and are submitting this letter to provide public comments. The Kennedy Commission is a broad -based coalition of community advocates focused on building a supportive environment for the creation of housing opportunities for families in Orange County earning less than $20,000 annually. Our comments will focus on the following areas: 1. Past Performance and Non - Compliance Finding By HCD 2. Carryover of Shortfall From Prior Planning Period 3. Inventory of Land Suitable For Residential Development 4. Lack of Strong Policies to Facilitate Development of Homes for Lower - Income Residents 5. Lack of Compliance With SB2 Requirements 1. Past Performance on 1998 -2005 Housing Element The City of Newport Beach's 1998 -2005 and revised 2006 housing elements were found to be out of compliance with State housing element law (Article 10.6 of the CA Government Code). In particular, the elements lack sites available and appropriate for the development of homes for lower- income households. The elements also needed to be strengthened to provide specific policies and programs that would remove barriers and would encourage and facilitate the development of housing opportunities for lower - income families. The lack of progress on having an element in compliance with state law has prevented planning efforts and new opportunities to keep pace with the City's growing population and housing needs for lower income families. During the 1998 -2005 planning period, the City added 3,157 new homes. This number exceeded the 476 unit regional allocation for the planning period; however the vast majority of these homes were only affordable to upper income households. Only one senior community of 119 Working for systemic change resulting in the production of housing for Orange County's extremely low income households homes was developed to serve the low and very low- income segments. No deed restricted affordable homes were developed to meet the needs of extremely low, very low and low- income families. 2. Newport Needs to Carry Over Past Planning Period Shortfall Consistent with California Government Code Section 65584.09 the City should, within the first year of the planning period of the new housing element, zone or rezone adequate sites to accommodate the unaccommodated need of the regional housing need allocation (RHNA) from the prior planning period. This would be in addition to any zoning or rezoning required to accommodate the jurisdiction's share of the regional housing need pursuant to Section 65584 for the new (2006 -2014) planning period. The draft should identify a strategy to address the past very low and moderate - income unaccommodated need and a rezoning program. Newport Beach had a conditional compliance and did not complete the rezone program to address shortfall in sites for very low, low and moderate- income households in the 1998 -2005 Element. 3. Inventory of Land Suitable for Residential Development Government Code Section 65583 (a)(3) requires local governments to prepare an inventory of land suitable for residential development, including vacant land, potential redevelopment sites and an analysis of the relationship of zoning and public facilities and services to these sites. An analysis of the sites inventory demonstrates that the City will have a shortfall of sites appropriately zoned to meet the housing needs for extremely low, very low and low - income households. The draft identifies some underutilized land and proposed mixed - used zoned sites as potential housing opportunity sites. Most of the sites identified in the inventory are not zoned at multifamily densities or have the development standards that would encourage and facilitate affordable homes for lower income families (minimum 30 homes per acre). Where the inventory reveals insufficient sites to accommodate the housing needs of all income levels, the program section must provide sufficient sites, developable "by- right" at multifamily densities, to provide 100% of the shortfall of sites necessary to accommodate the remaining housing need for very low and low- income households. (CA Government Code Section 65583(c) (1) (A)). At least 50% of the very low- income housing need shall be accommodated on sites designated for residential uses and for which nonresidential uses or mixed -uses are not permitted. (CA Government Code Section 65583.2(h)). The very low- income remaining RHNA allocation from the prior planning period is 62 and the current allocation is 392. We believe the identified sites and required strategies are inadequate to encourage and facilitate affordable home development for the lower- income segments. The September 10, 2007 letter from the State Department of Housing and Community Development (HCD) to Newport Beach states: "according to the revised element, the John Wayne Airport and Newport Center areas offer the greatest residential 8/11/2008 Page 2 of 5 development potential during the remainder of the planning period (7995 - 20061. ...the element must demonstrate these strategies are realistic and viable ... As the only strategy proposed in the 2006 -2014 Draft Housing Element, the Affordable Housing Implementation Policy "AHIP" program is inadequate. During the 1995 -2006 period, homes were not produced under this program to fully meet the RHNA requirements for very low and moderate - income residents. Of the 3,157 homes permitted, only 119 were affordable to low and very low income residents. These homes are all in one age- restricted, affordable apartment community, Bayview Landing. In Newport Center, all the 450 new homes allowed under the General Plan have been approved. Although the Irvine Company's Planned Community Development Plan received City Council approval for a maximum of 430 new homes and included the required Affordable Housing Implementation Plan (AHIP), the net gain of affordable homes in Newport Beach may be zero. No new affordable homes will be included in the new Planned Community in Newport Center; the entire affordable requirement will be accomplished by deed restricting scattered apartments in existing communities and possibly some of the homes within a new (maximum 14 home) apartment community that may be built outside of Newport Center. At the same time, deed restrictions on 46 apartments in the same existing communities will expire in 2010 -2011. On December 11, 2007, the City Council voted to limit the ratio of affordable homes to market rate homes under the AHIP for the new (maximum 14 home) apartment building to 50 %. This limitation may constrain the financing such that the development will not be feasible. The Draft Housing Element states that "In addition, there are 79 units approved with the Santa Barbara Condominium project within Newport Center that includes 16 affordable low and moderate - income housing units." In fact, the units are in existing older apartment buildings in another area of Newport Beach with all electric utilities, according to one developer who has seen the apartments. On page 5 -16 of the Draft Housing element the number of affordable apartments is described as 12; on page 5 -46, the number is 16. The developer (Lennar) who intended to build the 79 condominiums has assigned their interest in the property to another developer. Further, the Draft Housing Element states: "Another private land owner in the Newport Center area is presently in discussion with the City to develop a 30 -unit multi - family rental and condominium project ... that would be subject to the City's in -lieu fee program." The City's in -lieu fee program is being revised and is not included with the Draft Housing Element for analysis of the adequacy of it. The Airport Area has the only other sites that may be zoned at densities sufficient to accommodate lower- income RHNA requirement (more than 30 unitslacre); however, as the new zoning code is not available it is unclear if any of the sites will be zoned 100% residential. In addition, there is a constraint that residential villages must "contain a minimum of ten contiguous acres centered on a neighborhood park and other amenities." The same letter from HCD to Newport Beach requests "An indication whether redevelopment, recycling, or intensification of a site would require lot consolidation to allow additional residential development'. In reviewing the 2006- 8/11/2008 Page 3 of 5 2014 Draft Housing Element sites inventory, Appendix H4, of the 98 sites listed only three contain more than ten acres. In fact, 47 of the 98 sites listed are less than one acre, making assemblage of those parcels highly unlikely. In the same letter, there was a request for expanded site identification: "Given that most of the sites listed in Appendix H5 are developed with existing uses, the element must be expanded to describe the condition and age of existing development and describe the realistic potential for these uses to be discontinued and replaced with housing this planning period." Appendix H4 is essentially a "data dump." We are unable to locate the requested expanded descriptions of the sites. Additional analysis on site feasibility is needed to evaluate the viability of these sites for lower- income housing opportunities. 4. Lack of Strong Policies The above - referenced letter states: "Given the city's strong reliance on a combination of mixed use and redevelopment to accommodate its remaining need, Policy H.2.3 must be complemented with strong programs and implementation actions to facilitate such development...." The city has failed to provide any new programs and as a result, an adequate supply of affordable homes is not being produced: A. Zoning is not updated to facilitate development at densities sufficient to accommodate lower- income RHNA requirements. B. Program 2.2.1(AHIP) has failed to provide the target percentage of affordability: The program remains a policy, not an ordinance and there is no set date for adopting an ordinance. 2. In the 1995 -2006 period, 3157 permits were issued and 119 affordable homes were built = 3.7 %. 3. Of the approximately 500 new homes planned and approved in Newport Center, a maximum of seven new affordable homes will be added to the housing stock = 1.4 %. 4. The in -lieu fee is in the process of being updated and there is no set date for determining the new fee. As our analysis has demonstrated, the City does not have adequate sites to accommodate the needs of lower- income residents and therefore should rezone sites to accommodate this need within one year. 5. Lack of compliance with SB2 requirements 8/112008 Page 4 of 5 The city has failed to identify any site which may be appropriately zoned as required by SB2. The city has failed to adopt a strategy to address homelessness even though a majority of the participants in the public workshops expressed concerns about this issue and offered assistance by directing staff and consultants to resources. Instead, the city continues to state "...homeless and transient persons are observed traveling through the City." The City requested information on the number of children enrolled in the Newport-Mesa United School District and did not investigate why the number was about 1/3 of the number in 2003 -2004. As this is counterintuitive, there should have been follow -up questions and research. All of the agencies serving homeless in the area are reporting substantial increases in requests for assistance. The Kennedy Commission looks forward to working in partnership with the City to create solutions and achieve our mutual goals of expanding affordable housing opportunities for local residents. In the process, we also welcome the opportunity to work more closely with city staff to help lower some of the above - mentioned barriers that have prevented new construction affordable housing development. In conclusion, given the importance of the General Plan Housing Element to address the current and future housing needs of Newport Beach residents, the Kennedy Commission would welcome the opportunity to have further dialogue on how we can work with the City to ensure that the Element includes specific policies that will result in a meaningful portion of the new housing production being affordable to extremely low, very low and low- income households. Sincerely, Cesar Covarrubias Senior Project Manager Cc: Mr. David Lepo Mr. Gregg Ramirez 8/11/2008 Page 5 of 5 Newport Beach Draft Housing Element - City Council Report and Attachments Page 1 of 2 "RECEI ED AFTER AGENDA PRINTED:° % T- 1'2 -of Ramirez, Gregg From: Deloris Matthews [delor s949 @gmail.comj Sent: Wednesday, August 06, 2008 10:06 PM To: Ramirez, Gregg Subject: RE: Newport Beach Draft Housing Element - City Council Report and Attachments Hello Gregg, The draft element still does not contain specific information on the restricted units at Newport North apartments. Of the 4 properties listed on the county's website with restricted units, Newport North is the only one not listed in the element. The table also mistakenly lists Villa Point as permanent Section 8 — very low and low income units. Actually, according to the affordable housing agreement these are low income units (not to exceed 80% AMI), set to expire in 2010. By the way, they are located within Newport North apartments community with stated rental amounts not to exceed HUD fair market rents. Table H7 titled Major Rental Projects lists 27 properties. What constitutes "Major" rental property? Under Assisted Housing Stock, the element lists types of funding for low income properties, why is bond (BMR) funding not listed or the properties that are funded by bonds? Is this the city's inclusionary housing requirement? Is this requirement really a type of assistance received, as labeled in Table H12? Additionally, under Assisted Housing Stock at Risk, Newport North is not mentioned, affordability is set to expire in 2012. Suggestions: Table H7 & H12 s/b alphabetized; consistency with providing property addresses in Table H12; on 5 -19, 1St sentence, s/b Known; also I believe the assumption of occupancy is incorrect (1 bedroom is 2 person occupancy). Finally, the HUD 2008 income limits are available. And no I don't have a life O Looking forward to hearing from you soon. Deloris From: Ramirez, Gregg [mailto:GRamirez @city.newport- beach.ca.us] Sent: Wednesday, August 06, 2008 2:22 PM To: Anne Broussard; Barry Cottle; Bart Hess; Beverly Schuberth; Bill O'Connell; Brian Flornes; Bryan Starr; Carol McLaughlin; Card Mentor McDermott; Cesar Covarrubias; Chris Yelich; Christiine Iger; Crystal Sims; Dan Miller; Deloris Matthews; Ezequiei Gutierrez Jr.; George L. Basye ; Graham Espley- Jones; Greg Olafson; Helen Cameron; Jake Cisneros; Jennifer Bowie; Jessie Barkley; John O'Brien; Joseph Boyle; Joshua Haskins; Julie Curry; Katherin Palumbo; Kathleen Crum; Kathy & Mike Lewis; Kathy Marvick; Kevin Russell; Laura Archuleta; Margie Wakeham; Marice White; Mike Mohler; Pamela Sapetto; Patricia Mickey; Patricia Whitaker; Paul Burner -Lund; Philip Bettencourt; Ramirez, Gregg; Richard Lamprecht; Roman Darmer; Sam Veltri; Scott Darrell; Scott Gayner; Scott Mather; Steve Schapel; Thomas Peterson; Tricia Harrigan; William Witte Subject: Newport Beach Draft Housing Element - City Council Report and Attachments Good afternoon, The staff report and attachments for the August 12, 2008 City Council hearing can be accessed here: ?: httr):/ lnewportbeach. granicus .com/ViewPublisher.php?view id =21 ;.V The revised draft Housing Element can be accessed here: - bgp:// www.city.newport- beach.ca.us/PLN /Housing Element Update /Docs1110LI ngElement�Draft 20088 - i 01�pdf _ Note: Changes to the draft Housing Element are shown in strikeout/undedine. 08/12/2008 Newport Beach Draft Housing Element - City Council Report and Attachments Page 2 of 2 Please let me know if you have any questions. Sincerely, Gregg Ramirez City of Newport Beach Senior Planner Planning Department 949 -644 -3219 08(12(2008 Newport Beach Housing Coalition! July 31, 2008 Honorable Mayor Selich and Councilmembers Newport Beach City Hall 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mayor Selich and Councilmembers: The Newport Beach Housing Coalition comprises Newport Beach residents and supporting organizations who advocate for the development of housing affordable to low and very low income residents. Many of us participated in the Housing Element workshop, spoke at the Planning Commission meeting, and have written letters to planning department staff and the Planning Commission concerning the draft Housing Element. We appreciate this opportunity to once again comment on the draft Housing Element that the Planning Commission voted to send to the City Council. Our comments focus on the following areas: 1. Past performance, non - compliance findings by HCD, and required carry over of prior planning period RHNA shortfall. 2. Lack of identified sites appropriately zoned to meet housing needs for very low, and low income households. 3. Lack of strong policies or implementation plans to facilitate development of homes for low income residents. 4. Lack of compliance with SB2 requirements. 1. Past performance on 199 8-2005 Housing Element and shortfall carry over Our City's 1998 -2005 and revised 2006 housing elements were found to be out of compliance with State housing element law (Article 10.6 of the CA Government Code), lacking information on and analysis of sites available for the development of homes for lower income households. Those housing elements also failed to provide strengthened, specific policies and programs that would remove barriers and facilitate the development of housing for lower income families. During the 1998 -2005 planning period, our City added 3,157 new homes, the vast majority only affordable to upper income households. Only one community — the 119 homes in the age- restricted Bayview Landing — was developed to serve the low and very low- income segments. 1730 Galaxy Drive, Newport Beach, CA 92660 Page 2 of 3 Because our City's previous housing element is out of compliance, our City, by law, (Section 65584.09 of the CA Government Code) must carry over the prior planning period's shortfall of affordable homes. This current draft should implement a strategy to address 145 more homes for the past very low and moderate income unmet need. 2. Lack of identified sites appropriately zoned for very low and low income homes Section 65583 (a)(3) of the CA Government Code requires each local government to prepare an inventory of land suitable for residential development. Our analysis of the site inventory contained in the draft Housing Analysis shows that our City will have insufficient appropriately zoned sites to meet the housing needs for extremely low, very low and low income households. While the draft identifies some underutilized land and proposed mixed -use zoned sites, most of them are not zoned at appropriate densities and/or do not have development standards that would facilitate affordable homes for lower income families. The Kennedy Commission did an excellent and detailed analysis of this in their letter to the Planning Commission dated June 18, 2008. They concluded that the site analysis and the Affordable Housing Implementation Policy "AHIP" are inadequate. We suggest the City Council review this letter. 3. Lack of strong policies or implementation plans to facilitate the development of homes for lower income families The September 10, 2007 letter to the City of Newport Beach from the State Department of Housing and Community Development (HCD) states: "Given the city's strong reliance on a combination of mixed -use and redevelopment to accommodate its remaining housing need, Policy H.2.3 must be complemented with strong programs and implementation actions to facilitate such development" Because our City failed to provide any new programs, an adequate supply of affordable homes was not produced. The following are just some examples of these failures: 1. Zoning is not updated to facilitate densities sufficient for lower income RHNA requirements. 2. Program 2.2.1 (AHIP) has failed to provide the target percentage of affordability. 3. The program remains a policy, and not an ordinance. 4. During the 1998 -2006 period, only 3.7% of the homes added in our City were affordable homes. 5. No target date for the implementation of the new in -lieu fee program (now in the process of being updated) has been established. Paec :; of 3 To quote some of our coalition members: "Our inclusionary affordable housing requirements don't appear to have any regulatory teeth" and "I can tell you that in the business world this housing element would not be considered a plan ... it's a lot of nice words with no real commitment to compliance." 4. Lack of compliance with SB2 Our City's Draft Housing Element fails to adequately address homelessness. At the March 31, 2008 public workshop, many of us expressed concern about this issue and offered advice to help our City address the problem of quantifying homelessness. We take issue with the characterization that "homeless and transient persons just travel through our city." We questioned the count of 107 homeless children in our schools, down from 297 in 2003/2004. Certainly the economy isn't better, nor is cost of living lower. We ask you to review the suggestions from several local service providers given at the workshop about ways to better identify and help our residents who no longer have homes, rather than sending them to other cities to be helped. In conclusion, our City holds accountable its residents who fail to comply with civil law. Lack of compliance typically results in tickets, fines or lawsuits. We think our City government should comply with our state's housing laws. Thank you for your consideration of these concerns. ri AA� Chairman of the Newport Beach Housing Coalition 41 4(4o�/' August 12, 2008 AID SOCIETY OF ORANGE COUNTY. 2101 North Tustin Avenue, Santa Ana, California 92705 (714) 571 -5200 • FAX (714) 571 -5270 The Honorable Edward D. Selich, Mayor The Honorable Leslie Daigle, Mayor Pro Tem The Honorable Michael F. Henn, Council Member The Honorable Don Webb, Council Member The Honorable Keith D. Curry, Council Member The Honorable Steven Rosansky, Council Member The Honorable Nancy Gardner, Council Member Re: Housing Element Update, General Plan Amendment No. 2008 -003 (PA2008 -078) Dear Mayor Selich and Members of the City Council: These comments are submitted on behalf of an extremely low income individual represented by the Legal Aid Society of Orange County. This individual is unable to locate affordable housing in Newport Beach. Despite the lack of affordable housing in the City, this individual volunteers numerous hours in activities within the City which benefit the residents of the City. The Legal Aid Society of Orange County is a nonprofit corporation that provides legal assistance and representation to extremely low income individuals, families, and seniors who reside in Orange County. My client is in full support of the comments made by the Kennedy Commission regarding the Housing Element, and the comments by the Kennedy Commission are hereby incorporated into these comments. The City of Newport Beach is required to prepare a Housing Element in compliance with Government Code Section 65580 et seq. The Housing Element as proposed is inadequate in a number of respects. Government Code Section 65583 requires the City of Newport Beach to identify and analyze existing and projected housing needs. The Housing Element Update fails to comply with the statutory mandate in a number of respects including the following: The Honorable Edward D. Selich, Mayor August 12, 2008 Page Two 1. Government Code Section 65583(a)(2) requires the City to do an analysis of household characteristics including housing stock condition. The Housing Element Update concedes at page 5 -14 that "there has not been a comprehensive survey of housing conditions in Newport Beach since the 1976 Special Census for Newport Beach." Despite this admission, the City has as one of its programs use of approximately one half of its, allocation of CDBG funds during this planning period for "public facilities improvements projects" to revitalize the allegedly low and moderate income neighborhoods on the Balboa Peninsula instead of applying these funds more directly to construction of affordable housing to meet identified needs. Housing Element Update at page 5 -20. 2. The Housing Element Update at page 5 -18 lists the Domingo Drive Apartments as "permanently affordable." The Planning Department should inquire further into the status of this project which was made available under a settlement made in the early 1980s for a limited term of years. 3. The City of Newport Beach is closing a mobilehome park it owns at which it charges reduced rents thereby providing an affordable housing resource. This could be a significant site for new construction of a multifamily project affordable to families. Instead the City will convert the use to an interim open space. Housing Element Update at page 5 -16. 4. Government Code Section 65583 (a)(6) requires the City to do an analysis of special housing needs including those of large families. The Housing Element Update identifies 190 large family renter households of which 45 % earn less than 80% of the median income. Despite this identified need and the recognition that these families find it difficult to locate affordable, adequately sized units, there are no programs in the Housing Element Update to meet this identified need. Housing Element Update at pages 5 -28 and 5 -30. Instead the City historically and in the Housing Element Update focuses on the need for senior housing. The cheapest three bedroom rental units identified in the Housing Element Update rent for $2425 monthly which is hardly affordable to extremely low and very low income large families. Housing Element Update at page 5 -30 and 5 -31. The large family renter households are likely to be disproportionately members of minorities. 5. The Housing Element Update identifies 8386 residents in Newport Beach has persons with a disability. The City has produced 2 units in response to that identified need. Housing Element Update at page 5 -34. Government Code Section 65583 (a)(3) requires the City to do an inventory of land suitable for residential development, including vacant sites and sites having a potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. Again the Housing Element Update fails to comply with the statutory mandate in a number of The Honorable Edward D. Selich, Mayor August 12, 2008 Page Three respects including the following: 1. The Housing Element Update fails to include sites appropriately zoned to meet the housing needs of extremely low, very low and low income families. The Housing Element Update identifies some underutilized land such as parking lots and proposes mixed use zoning sites as potential sites for housing development. However these sites are not zoned at multifamily densities and do not have development standards that would promote the development of affordable housing. There is no information regarding specific sites at which landowners are proposing to change existing sites to other uses during this planning cycle. 2. Government Code Section 65583 (c)(1)(A) requires that if the inventory of sites is not sufficient to meet the housing needs of all income levels, the program section must provide sufficient sites developable "by right' at multifamily densities to accommodate the shortfall of sites. The Housing Element Update fails to comply with this section. 3. Although the Housing Element Update includes a lengthy list of housing site locations at page 5 -124, it does not contain the detailed analysis that is required by Government Code Section 65583. For example, the realistic potential that these sites could be developed to include units affordable to all economic segments of the community has not been done. It was accurately described by the Kennedy Commission in a letter to the Planning Commission as a "data dump." Government Code Section 65583 © requires that the City adopt programs to make adequate provision for all economic segments of the community. The Housing Element as proposed is legally inadequate to meet the identified need for affordable units. The City relies primarily on its inclusionary program to provide affordable units in new developments. However, the program which has a target 15% of the units affordable to very low, low and moderate income households has not achieved its goals. For example, in the North Newport Center Planted development of 430 units, only seven new affordable units would be constructed under the current proposal even with a density bonus. This location would have been a prime location for affordable units near the low income jobs generated by Newport Center. Thank you for the opportunity to comment on the Housing Element Update. Sincerely, Crystal C. Sims Director of Litigation The Honorable Edward D. Selich, Mayor August 12, 2008 Page Three respects including the following 1. The Housing Element Update fails to include sites appropriately zoned to meet the housing needs of extremely low, very low and low income families. The Housing Element Update identifies some underutilized land such as parking lots and proposes mixed use zoning sites as potential sites for housing development. However these sites are not zoned at multifamily densities and do not have development standards that would promote the development of affordable housing. There is no information regarding specific sites at which landowners are proposing to change existing sites to other uses during this planning cycle. 2. Government Code Section 65583 (c)(1)(A) requires that if the inventory of sites is not sufficient to meet the housing needs of all income levels, the program section must provide sufficient sites developable "by right" at multifamily densities to accommodate the shortfall of sites. The Housing Element Update fails to comply with this section. 3. Although the Housing Element Update includes a lengthy list of housing site locations at page 5 -124, it does not contain the detailed analysis that is required by Government Code Section 65583. For example, the realistic potential that these sites could be developed to include units affordable to all economic segments of the community has not been done. It was accurately described by the Kennedy Commission in a letter to the Planning Commission as a "data dump." Government Code Section 65583 (c) requires that the City adopt programs to make adequate provision for all economic segments of the community. The Housing Element as proposed is legally inadequate to meet the identified need for affordable units. The City relies primarily on its inclusionary program to provide affordable units in new developments. However, the program which has a target 15% of the units affordable to very low, low and moderate income households has not achieved its goals. For example, in the North Newport Center Planned development of 430 units, only seven new affordable units would be constructed under the current proposal even with a density bonus. This location would have been a prime location for affordable units near the low income jobs generated by Newport Center. Thank you for the opportunity to comment on the Housing Element Update. Sin ,ely, i rysWCSims Director of Litigation