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HomeMy WebLinkAbout31 - FY 1999-2000 Community Development Block Grant Application and Review of FY 1997-98 Annual Performance Report4 SEW ART
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D _ r
i«a�r
CITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC
DEVELOPMENT
PLANNING DEPARTMENT
3300 NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
(949) 644 -3200; FAX (949) 644 -3250
Hearing
Agenda Item No.:
Staff Person:
REPORT TO THE MAYOR AND CITY COUNCIL
1998
31
Christy Teague
(949) 644 -3207
SUBJECT: FY 1999 -2000 Community Development Block Grant
Application and Review of FY 1997 -98 Annual Performance
Report.
SUMMARY: As part of the annual Community Development Block Grant
application process, the City must hold a public hearing to
review the 1997 -98 Annual Performance Report. This public
hearing also provides the opportunity for the City Council to
receive public comment on the needs of the community and to
give direction to staff for preparation of the 1999 -2000 One
Year Action Plan.
SUGGESTED
ACTION: 1. Hold public hearing to receive comments on the 1997 -98
Annual Performance Report and 1999 -2000 One Year
Action Plan; and
2. Provide direction on the 1999 -2000 CDBG One Year
Action Plan, and direct staff to prepare the draft FY 1999-
2000 CDBG application for City Council review and
approval at a public hearing tentatively scheduled for
March 22, 1999.
Background
Federal regulations establish the application process for grant funds administered by the
Department of Housing and Urban Development (HUD). This public hearing is to review
the prior year (1997 -98) performance and comment on the needs for next fiscal year's
(1999 -2000) allocation. During Fiscal Year 1998 -99 the City received $492,000 in
funding. HUD has not yet established the City's entitlement amount for FY 1999 -2000,
but it is anticipated that it will be similar to this year's grant.
On April 10, 1995, the City Council approved a 1995 -2000 Consolidated Plan Document
(CPD) and a One Year Action Plan. A One Year Action Plan is required for each new
fiscal year within the Five Year 1995 -2000 CPD. The CPD is a planning document that
contains an assessment of the housing and community development needs of the
community and a five -year strategy with a one year action plan to address identified
needs. The One Year Action Plan contains a list of activities the City will assist with
CDBG funds during the coming fiscal year and is a key component of the City's grant
application.
Public Notice and Review
Through the process described in the City's adopted Citizen Participation (CP) Plan, the
public is given the opportunity to be involved in the development of the CPD and the One
Year Action P1an.Individual notices of this public hearing were mailed to all social
service agencies that have previously requested funds, as well as local governments,
business community representatives and other known interested organizations.
Additionally, the City's required public hearing notice was published once in the
newspaper. Interested parties also will have an opportunity to comment on the draft
1999 -2000 One Year Action Plan at a second public hearing, tentatively scheduled for
March 22, 1999.
Overview of Federal Eligibility Requirements and Criteria
There are a wide variety of eligible activities under the CDBG program. The following
activities were approved in the City's Five Year CPD: land acquisition, clearance, and
disposition; the acquisition, development or improvement of public services and facilities
in low- income areas; removal of architectural barriers; public /social services; relocation
assistance; commercial property rehabilitation; job creation and economic development.
CDBG program statutes establish three basic goals: 1) Provide decent housing; 2)
Provide a suitable living environment; and 3) Expand economic opportunities. Activities
assisted with CDBG funds must also accomplish at least one of the three national
objectives of the program: 1) Benefiting low- and moderate - income persons; 2)
Preventing slums and blight; or 3) Responding to urgent health and safety needs. HUD
regulations also require that cities spend at least 70% of their program funds to
principally benefit low- and moderate- (L/M) income persons. If an activity does not
benefit L/M income persons it must meet specific HUD standards to qualify under one of
the other national objectives.
Further details regarding program criteria and eligible activities are provided in
Attachment 1.
FY 1999 -2000 CDBG Application and Review of
FY 1997 -98 Annual Performance Report
December 14, 1998
Page 2
Annual Performance Report, 1997 -1998
HUD regulations also require that citizens have an opportunity to review the Annual
Performance Report (APR - Attachment 2), which measures the City's performance in
relation to anticipated goals as set forth in the previous One Year Action Plan. The City
must make the APR available to the public for review prior to receiving citizen comment
on next years application, which is tentatively scheduled for public hearing on March 22,
1999. The APR shows that FY 97 -98 funds were spent in accordance with the allocations
made in the approved CPD, as summarized below. Work on Balboa Peninsula
Revitalization activities began in FY 1997 -98, and additional funds are being utilized
during the 1998 -99 Fiscal Year.
Category
Budget
Expenditures
to date
Public Service Activities
15%
15%
Balboa Peninsula
Revitalization
65%
5%
Program Administration
20%
20%
Total
100%
35%
Newport Beach Priorities
For the 1997 -98 and 1998 -99 program years, Newport Beach has focused its CDBG
program on economic revitalization of the Balboa Peninsula. Revitalization efforts
funded by 1998 -99 CDBG funds include a Newport/Balboa Boulevard "Mixmaster"
feasibility study, acquisition of the Balboa Theater, new sign regulations and additional
code enforcement. For the 1999 -2000 fiscal year, staff expects a continuation of
economic development projects on the Balboa Peninsula, including a facade
improvement program and additional public improvements. It is anticipated these efforts
will assist in tenant recruitment which will provide jobs as required by HUD.
In addition to economic development activities, 1997 -98 and 1998 -99 funds supported
public service activities with the maximum 15% permitted by HUD. This component of
Newport Beach's CDBG program is expected to continue at the same level.
Conclusion
This public hearing is intended to satisfy HUD regulations by providing interested parties
an opportunity to review the City's 1997 -98 Annual Performance Report and submit
FY 1999 -2000 CDBG Application and Review of
FY 1997 -9f Annual Performance Report
December 14, 1998
Page 3
testimony regarding community needs for consideration in the preparation of the 1999-
2000 CDBG application. This is also an opportunity for the Council to provide staff with
general guidance on program areas it feels should be addressed. The application package
will include community and Council input when it is presented for a second public
hearing. It is suggested that a second public hearing be tentatively scheduled for March
22, 1999 for review and approval of the City's CDBG application package for the 1999-
2000 fiscal year.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
Prepared by:
CHRISTY D. TEAGUE, AICP
Senior Planner
Attachment 1: Sum ry of CDBG Program Criteria and Eligible Activities
Attachment 2: Annual Performance Report (APR)
F: \...\ SHARED\ CDBG \FY99- 20 \CORRESP\COUNCIL \CC -RPT I.DOC
FY 1999 -2000 CDBG Application and Review of
FY 1997 -98 Annual Performance Report
December 14, 1998
Page 4
Attachment 1
Summary of CDBG Program Criteria and Eligible Activities
A. NATIONAL OBJECTIVES:
Summarized below are the CDBG program criteria under the three national objectives of
benefiting low- and moderate - income persons, preventing slums and blight, and
responding to urgent health and safety needs.
1. Benefiting Low- and Moderate - Income Persons
Low- and moderate- (L/M) income persons are defined as persons, households or families
earning less than 80% of the HUD area median income adjusted by the number of
persons. The current income thresholds, which became effective January 7, 1998, are as
follows:
1 Person: $ 31,700 3 Persons: $ 40,750 5 Persons: $ 48,900 7 Persons: $ 56,150
2 Persons: $ 36,250 4 Persons: $ 45,300 6 Persons: $ 52,550 8 Persons: $ 59,800
These figures are expected to be adjusted in January, 1999.
Activities that benefit L/M income-persons are grouped into four categories: 1) Area
benefit activities; 2) Limited clientele activities; 3) Housing activities; and 4) Job creation
or retention activities.
Area Benefit Activities: A qualifying area benefit activity meets the identified needs of
L/M income persons residing in an area where at least 51% of the residents are L/M
income persons. For cities such as Newport Beach with fewer than 25% of its populated
census block groups containing 51% L/M income persons, the regulations allow
"exception criteria" to be used. HUD defines an "exception criteria area" as any
residential area where the proportion of L/M income persons falls within the top 25% of
all residential areas of the City. For Newport Beach, there are 20 block groups containing
29% or more L/M income persons that qualify under the exception criteria. These 20
L/M income block groups are located in 8 of the City's 23 census tracts.
Even though an activity occurs within an exception criteria area the activity may not
necessarily qualify as benefiting L/M income persons. In order to qualify as benefiting
L/M income persons, the activity must be located in a L/M income area that is
predominately residential and the City must demonstrate the benefit to L/M income
persons. Improvements to structures or public facilities that do not principally benefit
L/M income persons will not qualify, even though the improvement occurs in an
FY 1999 -2000 CDBG Application and Review of
FY 1997 -98 Annual Performance Report
December 14, 1998
Page 5
exception criteria area. For cities that are entirely or predominately comprised of L/M
income census tracts and /or block groups, it is assumed that activities occurring within
those areas benefit L/M income persons. For commercial districts located within eligible
residential areas, activities to improve commercial properties must show a benefit to L/M
income persons.
Limited Clientele Activities: A limited clientele activity benefits a specific group of
people, at least 51% of who are L/M income persons. Generally, it is a "presumed" L/M
income benefit if the activity assists groups known to be more than 51% L/M income
persons. HUD defines these groups as the handicapped, elderly persons, battered
spouses, abused women, homeless, illiterate persons, and migrant farm workers. If the
clientele is not from a "presumed" L/M income group, documentation must be provided
on family size and income to establish that at least 51% are L/M income persons. Recent
regulatory changes have added microenterprises (businesses employing 5 or fewer
persons) and job training and placement to the eligible list of limited clientele activities
when it is demonstrated that the activity benefits L/M income persons and meets other
conditions.
Housing Activities: Housing activities that create new housing or improve existing
residential structures that will be occupied by L/M income persons, households and
families are in this category.
Job Creation or Retention Activities: A job creation or retention activity creates or
retains permanent jobs, at least 51% of which are either taken by L/M income persons or
considered available to L/M income persons. Only permanent jobs are eligible for
assistance. The business must use a hiring practice to assure over 51% of the persons
hired meet L/M income criteria.
Funds can be used to assist a business in establishing or expanding its operation. To
conduct a job retention activity, the City must document that the jobs will actually be lost
without the CDBG assistance and that 51% of the jobs are held by L/M income persons.
However, any job creation or retention effort undertaken pursuant to a Neighborhood
Revitalization Strategy is considered to meet the standard CDBG L/M income area
benefit requirements and businesses that receive assistance are not required to track the
specific income of applicants they hire or interview, only account for the overall number
of persons.
2. Preventing Slums and Blight
An activity that prevents slums and blight may be done on an area or spot basis. If it is
done on an area basis the activity must occur in an area that meets an adopted definition
of a slum, blighted, deteriorated or deteriorating area under state or local law. If an
activity is done on a spot basis, rather than in a defined area, the activity is limited to
FY 1999 -2000 CDBG Application and Review of
FY 1997 -98 Annual Performance Report
December 14, 1998
Page 6
elimination of conditions detrimental to public health and safety. A redevelopment area
is considered to meet the definition of slum and blight. Since the City does not have a
redevelopment agency, areas must be designated using a definition of slum, blight,
deteriorated or deteriorating that is adopted in state or local law.
3. Urgent Health and Safety Need
An urgent health and safety activity responds to a condition posing a serious and
immediate threat to the health and welfare of the community. The condition must be of
recent origin or recently become urgent. The City must be unable to finance the activity
on its own and other resources must not be available.
B. ELIGIBLE ACTIVITIES:
The following is a brief discussion of the activities eligible under CDBG regulations and
included in the City's five -year strategy.
Land Acquisition
Funds can be used to assist with the acquisition of land providing the activity ultimately
benefits L/M income persons or meets another national objective. The City has used
CDBG funds in previous years to "write down" the cost of land for development or
redevelopment of properties with new housing units. Since 1985, the City has assisted
developers of five housing developments using CDBG funds, resulting in over 180 new
housing units.
2. Public Facilities and Improvements
Funds can be used to assist with the acquisition, construction, reconstruction or
rehabilitation of public improvements or facilities such as street improvements provided
the activity meets a national objective such as benefiting L/M income persons. The City
has used its CDBG funds in previous years to acquire a community center, remove
architectural barriers and assist public service organizations. In the next few years funds
are budgeted for improvements on Balboa Peninsula such as design of an entry statement,
the Balboa Boulevard beautification feasibility study, and the Newport/Balboa Boulevard
"Mixmaster" feasibility study. All these activities meet the national objective of
benefiting L/M income persons based on "area benefit ".
3. Public /Social Services
Up to 15% of the City's entitlement funds can be used to assist public and social service
agencies. These activities must address the national objective of benefiting L/M income
FY 1999 -2000 CDBG Application and Review of
FY 1997 -98 Annual Performance Report
December 14, 1998
Page 7
Humanity (FISH), Street People In Need (SPIN), Young Women's Christian Association
(YWCA), Orange Coast Interfaith Shelter (OCIS), South County Seniors (SCS) meet the
national objective of benefiting L/M income persons based on "limited clientele ".
4. Microenterprises
Funds may be used to assist L/M income owners to develop, establish, stabilize, expand
or generally support microenterprises. A " microenterprise" is a business employing 5 or
fewer persons. Microenterprise was recently added as an eligible activity. The City has
not funded any microenterprises in prior years.
5. Commercial Rehabilitation
Funds can be offered in the form of grants, loans, and loan guarantees for facade
improvements to commercial buildings provided the activity benefits L/M income
persons; the project is within a neighborhood revitalization area; or the area meets the
criteria for slum and blight. Buildings that contain businesses offering goods and services
that are not priced or accessible to LIM income persons are not eligible. The business
community has expressed interest in Commercial Rehabilitation activities such as a
facade improvement program and sidewalk enhancement as part of the Balboa Peninsula
Revitalization efforts.
6. Special Economic Development
Funds may be used to create or retain jobs for L/M income persons as part of an
economic development project. Only permanent jobs are eligible, and new jobs must be
taken by or considered available to UM income persons. When creating jobs the
business must use a hiring practice that will ensure that over 51% of the new positions are
filled by UM income persons. Funds can be used to assist a business in establishing or
expanding its operation. To conduct a job retention activity, the City must document that
the jobs will actually be lost without the CDBG assistance and that 51% of the jobs are
held by UM income persons. The amount of assistance to a business must be
proportionate to the number of jobs being created or retained, up to a maximum of
$35,000 per job. The City has not specifically funded this activity but activities being
funded under the category of Public Facilities and Improvements will result in the
creation or retention of jobs available to UM income persons.
7. Activities by Community Based Development Organizations
A CBDO can be either a for - profit or non - profit association or corporation that has been
in operation for at least a year and is organized under state or local law to engage in
community development activities within an identified geographic area of operation
within the City. At least 51% of its governing body's membership must be L/M income
residents or other individuals representative of its geographic area of operation; it may not
FY 1999 -2000 CDBG Application and Review of
FY 1997 -98 Annual Performance Report
December 14,1998
Page 8
be an agency or instrumentality of the City, and no more than one -third of the
membership of its governing body may be appointed by, or consist of, elected or other
public officials or employees. Funds may be used to carry out neighborhood
revitalization, community economic development, or energy conservation programs.
Activities must also meet one of the national objectives. The City is not aware of any
organization within the community that qualifies or could qualify under this category.
f:\ user \planning\ shared \cdbg\99- 2000\corresp\cc -rpt l
FY 1999 -2000 CDBG,Application and Review of
FY 1997 -98 Annual Performance Report
December 14, 1998
Page 9
CITY OF NEWPOR T BEA CH
Community and Economic Development Department
Consolidated Annual Performance
and
Evaluation Report (CAPER)
for Fiscal Year 1997 -98
Community Development
Block Grant (CDBG)
3300 Newport Boulevard, Newport Beach, California 92663 (714) 644 -3225
in
CITY OF NEWPORT BEACH
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
(949) 644 -3225
September 27, 1998
Ms. Mary Sue Teemley, Acting Director
Community Planning and
Development Division
U.S. Department of Housing and Urban Development
AT & T Center
611 W. 6b Street, Suite 800
Los Angeles, CA 90017
Dear Ms. Teemley:
Enclosed is the City of Ne%vport Beach's 1997 -98 Consolidated Annual Performance Evaluation
Report (CAPER). The packet includes:- Summary of Accomplishments Report (C04PR23),
Consolidated Annual Performance and Evaluation Report (C04PR06), Summary ojActivities
(C04PR03), Financial Summary Report (HUD - 4949.3), required Grantee Narrative Statements,
and an area map of our City's targeted Balboa Neighborhood Revitalization Area.
If you have any questions, please do not hesitate to contact Joyce De Kreek, at (714) 644 -3225
Very truly yours,
Sharon Wood — Assistant City Manager
Community and Economic Development
cc: Arnold Sison, HUD — CPD Rep.
C user pin 4hared'.cdbrfj98 -99.c ne$p HL'M.2] -98.dw
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tO
CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT (CAPER)
NARRATIVE
Fiscal Year 1997 -1998
Summary
The City of Newport Beach has prepared this Consolidated Annual Performance Evaluation
Report (CAPER) for the period July 1, 1997 through June 30, 1998. This is the first year the
CAPER is being submitted under the new Integrated Disbursement Information System (IDIS).
Much of the reporting for prior years has been submitted to HUD under separate software
systems such as the Consolidated Planning System (CPS) and ENTERS and information for prior
years is not reflected in the new IDIS reporting. However, the City was live on IDIS during the
entire 1997 -98 fiscal year and therefore all reporting for that year is included in the following
reports. The City followed the requirements for citizen review and comments under the
Consolidated Submission for Community Planning and Development Programs; Final Rule.
Citizens were given an opportunity to comment on the performance report submitted to HUD
before its submission.
PART 1
A. Assessment of Three -to Five -Year Goals and Obiectives
The City of Newport Beach in its Five -Year Consolidated Planning Document (CPD)
placed a High Priority Need Level to address the needs of homeless, "at -risk" homeless
and special needs and provide economic development opportunities to eliminate poverty
and provide self - sufficiency through the Continuum of Care process. The City's specific
objectives in the Five Year CPD include: the Removal of Architectural Barriers;
Acquisition of Land for Affordable Housing; Public Facilities and Improvements; Public
Services to address the needs of homeless "at -risk" homeless and special needs;
Commercial or Industrial Rehabilitation to eliminate conditions that are detrimental to
health, safety and public welfare; and Economic Development opportunities for persons of
low and moderate income. The activities identified in the 1997 -98 One -Year Action Plan
were to create and retain jobs for LJM income persons and provide for the needs of
persons and families in need of emergency shelter and transitional housing. The City
funded the operation of three (3) social service agencies that specifically provide housing
and shelter to homeless and "at -risk" homeless: Orange Coast Interfaith Shelter provides
temporary shelter (up to 2 months), the YWCA Hotel for Women provides temporary
shelter (up to 60 days) for battered and homeless women and children, and FISH assists
"at -risk" homeless and persons facing eviction by subsidizing rent payments to prevent
them from becoming homeless. The City funded SPIN to assist homeless persons with
drug -abuse counseling through the Continuum of Care process. SPIN also assists
homeless persons by providing first and last months rentand security deposits for
MI5
homeless households and persons to make the transition to permanent housing and
independent living. These activities specifically meet the objectives and high priority needs
identified in the 5 -Year CPD to 1) 'preserve the availability of housing for persons and
families in need of emergency shelter and transitional housing ", 2) "assist homeless
persons and to prevent those "at risk" of becoming homeless from becoming
homeless" and 3) "assist battered and homeless women and children ".
In addition to these funded activities, several High Priority Needs and Strategic Plan
objectives were met through combined efforts of County agencies. While the City funds
only a limited portion of Social Service Agencies and programs, the City participates in a
Countywide effort to address all the needs of homeless, "at risk" homeless and special
needs populations. Some Orange County agencies such as SOS, Someone Cares Soup
Kitchen, Shelter for the Homeless, ATSC, etc. are not currently funded through the City
of Newport Beach CDBG program, but provide services to UM Newport Beach residents
and meet specific objectives and areas of high priority in the City of Newport Beach Five
Year Consolidated Plan. These benchmarks are not reflected in the City of Newport
Beach's annual reports. Many of the activities being funded as a Countywide effort
address objectives identified in the City's 5 -Year CPD such as the County of Orange
participation in the Super NOFA to assist the above special needs populations.
The City funded two (2) meal delivery programs which provide meals to senior and
homebound persons and also provided accessibility improvements to increase accessibility
and mobility for handicapped persons to public and private buildings in compliance with
the Americans with Disability Act (ADA). The meal delivery programs and ADA
improvements specifically meet the 5 -year objective to 1) "provide assistance to the
elderly "and 2) ' provide handicapped accessibility to public buildings, parks, piers,
restrooms, etc in compliance with the Americans with Disabilities Act (ADA).
The City began public facility improvements in the targeted Balboa Peninsula
Revitalization Area. As stated in the Non - Housing and Community Development Needs
portion of the Housing Market Analysis of the 5 -year CPD, it is the intent of the City to
provide for the needs of "at -risk" and homeless persons and low and moderate income
persons and families in the area of job creation and development. To create jobs for
serving this population requires design modifications and improvements to existing
commercial districts, improvements to arterial streets and improved circulation and access
to commercial districts to promote the revitalization of the area neighborhood economy.
These activities specifically meet the 5 -year objective to 1) "alleviate physical and
economic distress through the stimulation of private investments and Community
revitalization in areas with stagnating or declining tax base ", 2) "eliminate conditions
which are detrimental to health, safety, and public welfare through the rehabilitation
of neighborhood and community facilities'; 3) 'preserve the surrounding
neighborhood and include the economic empowerment of the lower income residents,
for the extremely low, very low and lower and moderate income persons, households
and families'; 4) ' provide incentives and direct assistance for commercial buildings
throughout the City within the limitations of available resources, to facilitate the
0
provision of neighborhood revitalization and economic empowerment for lower income
families" and S) "the elimination of stunts and blight, the prevention of blighting
influences and the deterioration of property':
Together these activities provide for the specific needs of homeless, "at -risk" homeless,
persons with special needs and an opportunity to create jobs for L/M income persons,
homeless and "at -risk" homeless persons to make them self-sufficient and eliminate
poverty within the Community. Funding resources were primarily used to assist Newport
Beach residents citywide and partially to assist social service agencies located near City
boundaries. Resources provided to the homeless services programs were not restricted to
a specific census tract. These resources are distributed throughout various census tracts
within the City and the County. Resources allocated by the Orange County Housing
Authority that provided rental assistance to low income families were distributed
throughout the City. All funds from sources identified in the five -year CPD "Listing of
Priority Needs" were spent in accordance with the One Year CPD High Priority Need
Level.
B. Affirmatively Furthering Fair Housing
The City contracted with the Fair Housing Council of Orange County to provide fair
housing opportunities for all persons. Additionally, a completed Analysis of Impediments
to Fair Housing (AI) was sent to HUD and complied with all related regulatory
requirements made available during its development. The Al was part of a regional effort
and is on file in the Planning Department and available to citizens. Although HUD found
the Al was well presented, several recommendations from HUD were incorporated into
the revised AI. It ryas found that, by far, the vast majority of housing transactions in
the Orange County regional area do not involve a violation of fair housing laws. Yet,
there was sufficient evidence some transactions in the local housing market still involve
unlawful discriminatory housing practices. The City of Newport Beach will continue to
work with the Fair Housing Council of Orange County to analyze and eliminate
impediments to Fair Housing and amend the Al as necessary.
C. Affordable Housing
Households and Persons Assisted with Housing.
The 1997 one year action plan of the approved five year CPD anticipated 114
households to be assisted with Housing. During the Fiscal Year 1997 -98, 99
families received Rental Assistance through the Orange County Housing
Authority.
An additional 348 persons were assisted with CDBG funds during 1997 -98 as
reported by Nonprofit Homeless Support Services, which included homeless
shelters, shelters for abused women & children, shelters for persons with HIV, and
X11
rental assistance for "at risk" households. Funding resources assisted all Number 1
High Priorities contained in the Listing of Priority Needs for the overall five year
strategy objectives and priorities.
A total of $46,835 was allocated and used for Homeless Support Services,
including housing for the homeless and two (2) guaranteed apartment programs for
"at risk" homeless. Two of the homeless assistance programs are located within
the City boundary and provided assistance to Newport Beach residents on a City-
wide basis. The remaining homeless assistance programs and shelters are located
outside but very near the City and provided assistance to Newport Beach
residents.
The City has used the majority of its CDBG funds in previous years to provide
affordable housing units to meet the needs of transitional and permanent housing.
The City has offered Density Bonuses as an incentive to provide for additional
affordable housing units. The City currently monitors four affordable housing
projects (totaling 130 units) which were assisted with CDBG funds. A 100 unit
affordable senior housing project was assisted using Federal (Section 202) funds.
Currently there is approximately 2 Million dollars in non - federal funds available for
the development and/or preservation of affordable housing units which was
required by the City as part of a major residential development. These in -lieu fees
have been set aside pending a suitable site for the development of affordable units.
The remaining undeveloped sites suitable for residential development have been
reviewed and the City is currently seeking possible alternatives for providing
affordable housing within the City. The City is currently reviewing a private
affordable senior housing development (Bayview Landing) which will provide
approximately 200 units.
In addition to the CDBG funds, approximately $1,055,678 was spent for Section 8
rental assistance during fiscal year 1997 -1998 for persons with incomes less than
50% of the Orange County Median Income who would be paying more than 30%
of their income towards housing.
For funding sources identified in the Consolidated Planning Document (CPD) and
submitted for Fiscal Year 1997 -1998, the funds allocated to the City were utilized
based on high priorities listed in the CPD. The High Priorities identified in the 5-
year CPD were Fair Housing Activities, Accessibility Needs, Emergency Shelters,
Senior Services, Handicapped Services, Youth Services, Substance Abuse Services
and Employment Training.
Since the City of Newport Beach does not have any public housing units located
within the City, it does not propose to undertake any activities to increase the
involvement of public housing residents in management of public housing, nor to
develop other homeownership opportunities for these residents. Therefore, it is
not possible to assist residents in purchasing public housing
qy
D. Continuum of Care Narrative
=4
This year the County of Orange formed a countywide committee (Orange County
Steering Committee) which includes Orange County jurisdictions, non -profit
organizations, local groups, charities, etc. to address the needs of homeless, "at-
risk" homeless, special needs, and to identify gaps in the Continuum of Care
process. The City of Newport Beach actively participates in the countywide
Continuum of Care Steering Committee and has developed and adopted, in
conjunction with Orange County jurisdictions and non -profit agencies and interest
groups, the countywide Continuum of Care Strategies for the homeless. The City
has placed a Ifigh Priority to address the needs of homeless, "at -risk" homeless,
persons with special needs, and to create jobs for persons of UM income to
provide economic development opportunities to eliminate poverty and provide
self- sufficiency through the Continuum of Care process. Together the funded
° activities, as identified in Section A above, meet the needs of homeless persons and
the special needs of persons that are not homeless but require supportive housing
s by providing emergency housing, transitional housing and permanent housing;
substance abuse counseling; handicapped accessibility; the creation of jobs; and a
safe and decent living environment.
Four of the non -profit agencies that assist homeless, "at risk"homeless and persons
with special needs have voluntarily formed a consortium to more effectively
address all of the needs of these population groups. Together these agencies
provide shelter, job training, substance abuse counseling, food and transportation,
etc .
E. Other Actions Undertaken.
The City has identified the lack of funding and developable sites as an obstacle to
affordable housing. The City has $2M for affordable housing collected as a
-' condition of a new housing subdivision. The City explored use of these funds to
assist a senior affordable housing project, but City assistance was not needed. The
City is currently considering other options to use these funds as an incentive for
affordable housing, including extending affordability restrictions on existing units.
The City also maintains policies to waive or reduce requirements as an incentive to
produce low cost housing to eliminate barriers to affordable housing.
There are no public housing units located in the City of Newport Beach.
Prior to use of federal funds, all existing units are inspected for lead based paint
hazards. Units identified as having lead based paint hazards are treated so as to
abate the lead based paint hazards in accordance with federal requirements. The
use of lead based paint is prolubited in newly constructed units.
oG
The City has complied with all necessary program and comprehensive planning
requirements.
The City of Newport Beach has developed and is implementing an economic
development strategy to reduce the number of persons living below the poverty
level on the Balboa Peninsula, as discussed in Section A above.
F. Leveraging Resources
While no leveraging of non - Federal resources or matching contributions were
directly involved with these programs during Fiscal Year 1997 -98, the social
service programs received funding from a variety of other sources to meet their
budget needs. Efforts to arrest the decline of the Balboa Peninsula and create jobs
for L/M income persons is being supplemented through City funds and private
donations. The City acquired two pocket park sites at the Peninsula entrance
through public/private funds. The Balboa Pier parking lot redesign and the
Parking Management Plan are underway using local parking revenue.
Approximately $300,000 in private fundraising donations from the local
community was raised to assist with the Balboa Theater and 420 seats were
donated by the Walt Disney Corporation. Also, $2M was obtained from a private
for -profit developer to meet the needs of affordable permanent housing for low
and moderate income persons as required by the City of Newport Beach
G. Citizen Comments
The City of Newport Beach has an unusually high involvement of citizen
participation. Public meetings and outreach have been pursued to the maximum.
The strategies and action plans include the comments and views of citizens
obtained at the Public City Council Hearings and Public Meetings prior to the
design and implementation of the strategies and action plans. All Public Hearings
and Meetings were advertised in accordance with the City's Citizen Participation
Plan. Activities funded during the 1997 -98 Fiscal Year reflect those comments and
views. No comments and/or views of citizens were made after the final Adopted
j Consolidated Planning Document including the One Year Action Plan and the final
J Annual Performance & Evaluation Report was made available to the public during
the public review and comment period.
H. Self- Evaluation
The City of Newport Beach has developed and is implementing activities that meet
the identified needs in the 5 -year CPD. All activities funded during the 1995 -96,
1996 -97 and 1997 -98 action plans meet a high priority need and specific objectives
identified in the 5 -year CPD. The overall goal to provide decent housing is being
met through various social service agencies and the Orange County Housmg
5b
Authority which together provide emergency, transitional and permanent housing.
The Orange County Steering Committee has provided a major impact to more
effectively meet the needs of homeless and Special needs populations and eliminate
gaps. The best indicator is the effect these coordinated efforts have made on the
homeless community. The coordinated efforts allowed for an increase in number
of persons assisted from an estimated 898 to 1,045. The goals to provide a
suitable living environment and expand economic opportunities principally for
low and moderate income persons are being met through the implementation of
public improvements as part of the Balboa Peninsula Improvements. The City's
strategic plan (Project 2000 and the BP Planning Study) for the Balboa Peninsula
provide for short term and long term goals. The involvement of citizen and
business participation, along with the beginning of public improvements, have
already made a major positive impact on the Balboa Peninsula by stimulating
growth of private investment and private donations and improving the living
environment for persons in the surrounding neighborhood. Due to the limitation of
funds and the long -term planning process necessary to implement these goals, the
results of these efforts may not be fully realized during the 5 -Year CPD. Projects
currently underway, such as the opening and improvements to the Balboa Theater,
will have an immediate major impact to expand economic development
opportunities for low and moderate income persons by creating jobs available to
persons of low and moderate income.
The limitation of funding availability has been identified in the 5 -year CPD and
continues to be one of the barriers in meeting the objectives in fulfilling tae
strategies and overall vision.
The majority of programs and activities identified in the City's One Year Action
Plan have been implemented and completed during the 1997 -98 fiscal year.
However, Economic Development activities, due to the amount of funds necessary
and the nature and planning process, are being implemented and completed over
several fiscal years.
i
Grant disbursements are timely and actual expenditures are consistent with the
letter of credit disbursements.
The goals of the program are being completed within anticipated guidelines and
time frames.
No adjustments or improvements to strategies and activities are being proposed
during the next fiscal year.
{
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APPENDIX
As directed in the Consolidated Submission for Community Planning and Development Programs;
Final Rule, the City of Newport Beach published a public notice in the local newspaper notifying
the public that the City had completed its CAPER for the CPD period from July 1, 1997 to June
30, 1998. The public notice stated the funds were spent in accordance with the approved five
year CPD and the one year implementation plan to benefit low and moderate income families.
The public notice also notified the public of the availability of the five year CPD and annual one
year action plan at the City Hall and invited public review and comment. The public notice was
published on September 11, 1998. The City counted the 15 day comment period from September
11, 1998, to September 26, 1998. The CAPER was submitted to HUD after September 26, 1998,
after close of the 15 day public review and comment period.
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